Audit the Project Portfolio

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  • Parent Category Name: Portfolio Management
  • Parent Category Link: /portfolio-management
  • As a CIO you know you should audit your portfolio, but you don’t know where to start.
  • There is a lack of portfolio and project visibility.
  • Projects are out of scope, over budget, and over schedule.

Our Advice

Critical Insight

  • Organizations establish processes and assume people are following them.
  • There is a dilution of practices from external influences and rapid turnover rates.
  • Many organizations build their processes around existing frameworks. These frameworks are great resources but they’re often missing context and clear links to tools, templates, and fiduciary duty.

Impact and Result

  • The best way to get insight into your current state is to get an objective set of observations of your processes.
  • Use Info-Tech’s framework to audit your portfolios and projects:
    • Triage at a high level to assess the need for an audit by using the Audit Standard Triage Tool to assess your current state and the importance of conducting a deeper audit.
    • Complete Info-Tech’s Project Portfolio Audit Tool:
      • Validate the inputs.
      • Analyze the data.
      • Review the findings and create your action plan.

Audit the Project Portfolio Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should audit the project portfolio, 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 readiness

Understand your current state and determine the need for a deeper audit.

  • Audit the Project Portfolio – Phase 1: Assess Readiness
  • Info-Tech Audit Standard for Project Portfolio Management
  • Audit Glossary of Terms
  • Audit Standard Triage Tool

2. Perform project portfolio audit

Audit your selected projects and portfolios. Understand the gaps in portfolio practices.

  • Audit the Project Portfolio – Phase 2: Perform Project Portfolio Audit
  • Project Portfolio Audit Tool

3. Establish a plan

Document the steps you are going to take to address any issues that were uncovered in phase 2.

  • Audit the Project Portfolio – Phase 3: Establish a Plan
  • PPM Audit Timeline Template
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Workshop: Audit the Project Portfolio

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 Portfolio Audit

The Purpose

An audit of your portfolio management practices.

Key Benefits Achieved

Analysis of audit results.

Activities

1.1 Info-Tech’s Audit Standard/Engagement Context

1.2 Portfolio Audit

1.3 Input Validation

1.4 Portfolio Audit Analysis

1.5 Start/Stop/Continue

Outputs

Audit Standard and Audit Glossary of Terms

Portfolio and Project Audit Tool

Start/Stop/Continue

2 Project Audit

The Purpose

An audit of your project management practices.

Key Benefits Achieved

Analysis of audit results.

Activities

2.1 Project Audit

2.2 Input Validation

2.3 Project Audit Analysis

2.4 Start/Stop/Continue

Outputs

Portfolio and Project Audit Tool

Start/Stop/Continue

3 Action Plan

The Purpose

Create a plan to start addressing any vulnerabilities.

Key Benefits Achieved

A plan to move forward.

Activities

3.1 Action Plan

3.2 Key Takeaways

Outputs

Audit Timeline Template

Optimize Your Software Selection Process: Why 5 and 30 Are the Magic Numbers

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  • member rating average dollars saved: N/A
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  • Parent Category Name: Selection & Implementation
  • Parent Category Link: /selection-and-implementation
  • 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.

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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.

  3. Aggregating Feedback
  4. 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.

  5. Insights Backed by Data
  6. 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.

    Enterprise Architecture

    • Buy Link or Shortcode: {j2store}43|cart{/j2store}
    • Related Products: {j2store}43|crosssells{/j2store}
    • member rating overall impact (scale of 10): 9.2/10
    • member rating average dollars saved: $28,368
    • member rating average days saved: 24
    • Parent Category Name: Service Planning and Architecture
    • Parent Category Link: service-planning-and-architecture
    Demystify enterprise architecture value with key metrics.

    Build an ERP Strategy and Roadmap

    • Buy Link or Shortcode: {j2store}585|cart{/j2store}
    • member rating overall impact (scale of 10): 9.4/10 Overall Impact
    • member rating average dollars saved: $76,462 Average $ Saved
    • member rating average days saved: 22 Average Days Saved
    • 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.

    Master the Secrets of Adobe’s Creative Cloud Contracts to Right-Size Your Adobe Spend

    • Buy Link or Shortcode: {j2store}139|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • Adobe operates in its own niche in the creative space, and Adobe users have grown accustomed to their products, making switching very difficult.
    • With Adobe’s transition to a cloud-based subscription model, it’s important for organizations to actively manage licenses, software provisioning, and consumption.
    • Without a detailed understanding of Adobe’s various purchasing models, overspending often occurs.
    • Organizations have experienced issues in identifying commercial licensed packages with their install files, making it difficult to track and assign licenses.

    Our Advice

    Critical Insight

    • Focus on user needs first. Examine which products are truly needed versus nice to have to prevent overspending on the Creative Cloud suite.
    • Examine what has been deployed. Knowing what has been deployed and what is being used will greatly aid in completing your true-up.
    • Compliance is not automatic with products that are in the cloud. Shared logins or computers that have desktop installs that can be access by multiple users can cause noncompliance.

    Impact and Result

    • Visibility into license deployments and needs
    • Compliance with internal audits

    Master the Secrets of Adobe’s Creative Cloud Contracts to Right-Size Your Adobe Spend Research & Tools

    Start here – read the Executive Brief

    Procuring Adobe software is not the same game as it was just a few years ago. Adopt a comprehensive approach to understanding Adobe licensing to avoid overspending and to maximize negotiation leverage.

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

    1. Manage your Adobe agreements

    Use Info-Tech’s licensing best practices to avoid overspending on Adobe licensing and to remain compliant in case of audit.

    • Adobe ETLA vs. VIP Pricing Table
    • Adobe ETLA Forecasted Costs and Benefits
    • Adobe ETLA Deployment Forecast
    [infographic]

    Further reading

    Master the Secrets of Adobe’s Creative Cloud Contracts to Right-Size Your Adobe Spend

    Learn the essential steps to avoid overspending and to maximize negotiation leverage with Adobe.

    ANALYST PERSPECTIVE

    Only 18% of Adobe licenses are genuine copies: are yours?

    "Adobe has designed and executed the most comprehensive evolution to the subscription model of pre-cloud software publishers with Creative Cloud. Adobe's release of Document Cloud (replacement for the Acrobat series of software) is the final nail in the coffin for legacy licensing for Adobe. Technology procurement functions have run out of time in which to act while they still retain leverage, with the exception of some late adopter organizations that were able to run on legacy versions (e.g. CS6) for the past five years. Procuring Adobe software is not the same game as it was just a few years ago. Adopt a comprehensive approach to understanding Adobe licensing, contract, and delivery models in order to accurately forecast your software needs, transact against the optimal purchase plan, and maximize negotiation leverage. "

    Scott Bickley

    Research Lead, Vendor Practice

    Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

    • IT managers scoping their Adobe licensing requirements and compliance position.
    • CIOs, CTOs, CPOs, and IT directors negotiating licensing agreements in search of cost savings.
    • ITAM/Software asset managers responsible for tracking and managing Adobe licensing.
    • IT and business leaders seeking to better understand Adobe licensing options (Creative Cloud).
    • Vendor management offices in the process of a contract renewal.

    This Research Will Help You:

    • Understand and simplify licensing per product to help optimize spend.
    • Ensure agreement type is aligned to needs.
    • Navigate the purchase process to negotiate from a position of strength.
    • Manage licenses more effectively to avoid compliance issues, audits, and unnecessary purchases.

    This Research Will Also Assist:

    • CFOs and the finance department
    • Enterprise architects
    • ITAM/SAM team
    • Network and IT architects
    • Legal
    • Procurement and sourcing

    This Research Will Help Them:

    • Understand licensing methods in order to make educated and informed decisions.
    • Understand the future of the cloud in your Adobe licensing roadmap.

    Executive summary

    Situation

    • Adobe’s dominant market position and ownership of the creative software market is forcing customers to refocus the software acquisition process to ensure a positive ROI on every license.
    • In early 2017, Adobe announced it would stop selling perpetual Creative Suite 6 products, forcing future purchases to be transitioned to the cloud.

    Complication

    • Adobe operates in its own niche in the creative space, and Adobe users have grown accustomed to their products, making switching very difficult.
    • With transition to a cloud-based subscription model, organizations need to actively manage licenses, software provisioning, and consumption.
    • Without a detailed understanding of Adobe’s various purchasing models, overspending often occurs.
    • Organizations have experienced issues in identifying commercial licensed packages with their install files, making it difficult to track and assign licenses.

    Resolution

    • Gain visibility into license deployments and needs with a strong SAM program/tool; this will go a long way toward optimizing spend.
      • Number of users versus number of installs are not the same, and confusing the two can result in overspending. Device-based licensing historically would have required two licenses, but now only one may be required.
    • Ensure compliance with internal audits. Adobe has a very high rate of piracy stemming from issues such as license overuse, misunderstanding of contract language, using cracks/keygens, virtualized environments, indirect access, and sharing of accounts.
    • A handful of products are still sold as perpetual – Acrobat Standard/Pro, Captivate, ColdFusion, Photoshop, and Premiere Elements – but be aware of what is being purchased and used in the organization.
      • Beware of products deployed on server, where the number of users accessing that product cannot easily be counted.

    Info-Tech Insight

    1. Your user-need analysis has shifted in the new subscription-based model. Determine which products are needed versus nice to have to prevent overspending on the Creative Cloud suite.
    2. Examine what you need, not what you have. You can no longer mix and match applications.
    3. Compliance is not automatic with products that are in the cloud. Shared logins or computers with desktop installs that can be accessed by multiple users can cause noncompliance.

    The aim of this blueprint is to provide a foundational understanding of Adobe

    Why Adobe

    In 2011 Adobe took the strategic but radical move toward converting its legacy on-premises licensing to a cloud-based subscription model, in spite of material pushback from its customer base. While revenues initially dipped, Adobe’s resolve paid off; the transition is mostly complete and revenues have doubled. This was the first enterprise software offering to effect the transition to the cloud in a holistic manner. It now serves as a case study for those following suit, such as Microsoft, Autodesk, and Oracle.

    What to know

    Adobe elected to make this market pivot in a dramatic fashion, foregoing a gradual transition process. Enterprise clients were temporarily allowed to survive on legacy on-premises editions of Adobe software; however, as the Adobe Creative Cloud functionality was quickly enhanced and new applications were launched, customer capitulation to the new subscription model was assured.

    The Future

    Adobe is now leveraging the power of connected customers, the availability of massive data streams, and the ongoing digitalization trend globally to supplement the core Creative Cloud products with online services and analytics in the areas of Creative Cloud for content, Marketing Cloud for marketers, and Document Cloud for document management and workflows. This blueprint focuses on Adobe's Creative Cloud and Document Cloud solutions and the enterprise term license agreement (ETLA).

    Info-Tech Insight

    Beware of your contract being auto-renewed and getting locked into the quantities and product subset that you have in your current agreement. Determining the number of licenses you need is critical. If you overestimate, you're locked in for three years. If you underestimate, you have to pay a big premium in the true-up process.

    Learn the “Adobe way,” whether you are reviewing existing spend or considering the purchase of new products

    1. Legacy on-premises Adobe Creative Suite products used to be available in multiple package configurations, enabling right-sized spend with functionality. Adobe’s support for legacy Creative Suites CS6 products ended in May 2017.
    2. While early ETLAs allowed customer application packaging at a lower price than the full Creative Cloud suite, this practice has been discontinued. Now, the only purchasing options are the full suite or single-application subscriptions.
    3. Buyers must now assess alternative Adobe products as an option for non-power users. For example, QuarkXPress, Corel PaintShop Pro, CorelDRAW, Bloom, and Affinity Designer are possible replacements for some Creative Cloud applications.
    4. Document Cloud, Adobe’s latest step in creating an Acrobat-focused subscription model, limits the ability to reduce costs with an extended upgrade cycle. These changes go beyond the licensing model.
    5. Organizations need to perform a cost-benefit analysis of single app purchases vs. the full suite to right-size spend with functionality.

    As Adobe’s dominance continues to grow, organizations must find new ways to maintain a value-added relationship

    Adobe estimates the total addressable market for creative and document cloud to be $21 billion. With no sign of growth slowing down, Adobe customers must learn how to work within the current design monopoly.

    The image contains two pie graphs. The first is labelled FY2014 Revenue Mix, and the second graph is titled FY2017E Revenue Mix.

    Source: Adobe, 2017

    "Adobe is not only witnessing a steady increase in Creative Cloud subscriptions, but it also gained more visibility into customers’ product usage, which enables it to consistently push out software updates relevant to user needs. The company also successfully transformed its sales organization to support the recurring revenue model."

    – Omid Razavi, Global Head of Success, ServiceNow

    Consider your route forward

    Consider your route forward, as ETLA contract commitments, scope, and mechanisms differ in structure to the perpetual models previously utilized. The new model shortchanges technology procurement leaders in their expectations of cost-usage alignment and opex flexibility (White, 2016).

    ☑ Implement a user profile to assign licenses by version and limit expenditures. Alternatives can include existing legacy perpetual and Acrobat classic versions that may already be owned by the organization.

    ☑ Examine the suitability and/or dependency on Document Cloud functions, such as existing business workflows and e-signature integration.

    ☑ Involve stakeholders in the evaluation of alternate products for use cases where dependency on Acrobat-specific functionality is limited.

    ☑ Identify not just the installs and active use of the applications but also the depth and breadth of use across the various features so that the appropriate products can be selected.

    The image contains a screenshot of a diagram listing the adobe toolkit. The toolkit includes: Adobe ETLA Deployment Forecast Tool, Adobe ETLA Forecasted Cost and Benefits, Adobe ETLA vs. VIP Pricing Table.

    Use Info-Tech’s Adobe toolkit to prepare for your new purchases or contract renewal

    Info-Tech Insight

    IT asset management (ITAM) and software asset management (SAM) are critical! An error made in a true-up can cost the organization for the remaining years of the ETLA. Info-Tech worked with one client that incurred a $600k error in the true-up that they were not able to recoup from Adobe.

    Apply licensing best practices and examine the potential for cost savings through an unbiased third-party perspective

    Establish Licensing Requirements

    • Understand Adobe’s product landscape and transition to cloud.
    • Analyze users and match to correct Adobe SKU.
    • Conduct an internal software assessment.
    • Build an effective licensing position.

    Evaluate Licensing Options

    • Value Incentive Plan (VIP)
    • Cumulative Licensing Program (CLP)
    • Transactional Licensing Program (TLP)
    • Enterprise Term License Agreement (ETLA)

    Evaluate Agreement Options

    • Price
    • Discounts
    • Price protection
    • Terms and conditions

    Purchase and Manage Licenses

    • Learn negotiation tactics to enhance your current strategy.
    • Control the flow of communication.
    • Assign the right people to manage the environment.

    Preventive practices can help find measured value ($)

    Time and resource disruption to business if audited

    Lost estimated synergies in M&A

    Cost of new licensing

    Cost of software audit, penalties, and back support

    Lost resource allocation and time

    Third party, legal/SAM partners

    Cost of poor negotiation tactics

    Lost discount percentage

    Terms and conditions improved

    Explore Adobe licensing and optimize spend – project overview

    Establish Licensing Requirements

    Evaluate Licensing Options

    Evaluate Agreement Options

    Purchase and Manage Licenses

    Best-Practice Toolkit

    • Assess current state and align goals; review business feedback.
    • Interview key stakeholders to define business objectives and drivers.
    • Review licensing options.
    • Review licensing rules.
    • Determine the ideal contract type.
    • Review final contract.
    • Discuss negotiation points.
    • License management.
    • Future licensing strategy.

    Guided Implementations

    • Engage in a scoping call.
    • Assess the current state.
    • Determine licensing position.
    • Review product options.
    • Review licensing rules.
    • Review contract option types.
    • Determine negotiation points.
    • Finalize the contract.
    • Discuss license management.
    • Evaluate and develop a roadmap for future licensing.

    PHASE 1

    Manage Your Adobe Agreements

    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: Managing Adobe Contracts

    Proposed Time to Completion: 3-6 weeks

    Step 1.1: Establish Licensing Requirements

    Start with a kick-off call:

    • Assess the current state.
    • Determine licensing position.

    Then complete these activities…

    • Complete a deployment count, needs analysis, and internal audit.

    With these tools & templates:

    Adobe ETLA Deployment Forecast

    Step 1.2: Determine Licensing Options

    Review findings with analyst:

    • Review licensing options.
    • Review licensing rules.
    • Review contract option types.

    Then complete these activities…

    • Select licensing option.
    • Document forecasted costs and benefits.

    With these tools & templates:

    Adobe ETLA vs. VIP Pricing Table

    Adobe ETLA Forecasted Costs and Benefits

    Step 1.3: Purchase and Manage Licenses

    Review findings with analyst:

    • Review final contract.
    • Discuss negotiation points.
    • Plan a roadmap for SAM.

    Then complete these activities…

    • Negotiate final contract.
    • Evaluate and develop a roadmap for SAM.

    With these tools & templates:

    Adobe ETLA Deployment Forecast

    Adobe’s Cloud – Snapshot of what has changed

    1. Since Adobe has limited the procurement and licensing options with the introduction of Creative Cloud, there are three main choices:
      1. Direct online purchase at Adobe.com
      2. Value Incentive Plan (VIP): Creative Cloud for teams–based purchase with a volume discount (minimal, usually ~10%); may have some incentives or promotional pricing
      3. Enterprise Term License Agreement (ETLA): Creative Cloud for Enterprise (CCE)
    2. Adobe has discontinued support for legacy perpetual licenses, with the latest version being CS6, which is steering organizations to prioritize their options for products in the creative and document management space.
    3. Document Cloud (DC) is the cloud product replacing the Acrobat perpetual licensing model. DC extends the subscription-based model further and limits options to extend the lifespan of legacy on-premises licenses through a protracted upgrade process.
    4. The subscription model, coupled with limited discount options on transactional purchases, forces enterprises to consider the ETLA option. The ETLA brings with it unique term commitments, new pricing structures, and true-up mechanisms and inserts the "land and expand" model vs. license reassignment.

    Info-Tech Insight

    Adobe’s move from a perpetual license to a per-user subscription model can be positive in some scenarios for organizations that experienced challenges with deployment, management of named users vs. devices, and license tracking.

    Core concepts of Adobe agreements: Discounting, pricing, and bundling

    ETLA

    Adobe has been systematically reducing discounts on ETLAs as they enter the second renewal cycle of the original three-year terms.

    Adobe Cloud Bundling

    Adobe cloud services are being bundled with ETLAs with a mandate that companies that do not accept the services at the proposed cost have Adobe management’s approval to unbundle the deal, generally with no price relief.

    Custom Bundling

    The option for custom bundling of legacy Creative Suite component applications has been removed, effectively raising the price across the board for licensees that require more than two Adobe applications who must now purchase the full Creative Cloud suite.

    Higher and Public Education

    Higher education/public education agreements have been revamped over the past couple of years, increasing prices for campus-wide agreements by double-digit percentages (~10-30%+). While they still receive an 80% discount over list price, IT departments in this industry are not prepared to absorb the budget increase.

    Info-Tech Insight

    Adobe has moved to an all-or-one bundle model. If you need more than two application products, you will likely need to purchase the full Creative Cloud suite. Therefore, it is important to focus on creating accurate user profiles to identify usage needs.

    Use Info-Tech’s Adobe deployment tool for SAM: Track deployment and needs

    The image contains a screenshot of Info-Tech's Adobe deployment tool for SAM: Track deployment and needs.

    Use Info-Tech’s Adobe deployment tool for SAM: Audit

    The image contains a screenshot of the Adobe Deployment Tool for SAM, specifically the Audit tab.

    Use Info-Tech’s Adobe deployment tool for SAM: Cost

    The image contains a screenshot of the Adobe Deployment Tool for SAM, specifically the Cost tab.

    Use Info-Tech’s tools to compare ETLA vs. VIP and to document forecasted costs and benefits

    Is the ETLA or VIP option better for your organization?

    Use Info-Tech’s Adobe ETLA vs. VIP Pricing Table tool to compare ETLA costs against VIP costs.

    The image contains a screenshot of Info-Tech's Adobe ETLA vs. VIP Pricing Table.

    Your ETLA contains multiple products and is a multi-year agreement.

    Use Info-Tech’s ETLA Forecasted Costs and Benefits tool to forecast your ETLA costs and document benefits.

    The image contains a screenshot of Info-Tech's ETLA Forecasted Costs and Benefits.

    Adobe’s Creative Cloud Complete offering provides access to all Adobe creative products and ongoing upgrades

    Why subscription model?

    The subscription model forces customers to an annuity-based pricing model, so Adobe has recurring revenue from a subscription-based product. This increases customer lifetime value (CLTV) for Adobe while providing ongoing functionality updates that are not version/edition dependent.

    Key Characteristics:

    • Available as a month-to-month or annual subscription license
    • Can be purchased for one user, for a team, or for an enterprise
    • Subject to annual payment and true-up of license fees
    • Can only true-up during lifespan of contract; quantities cannot be reduced until renewal
    • May contain auto-renewal clauses – beware!

    Key things to know:

    1. Applications can be purchased individually if users require only one specific product. A few products continue to have on-premises licensing options, but most are offered by per-user subscriptions.
    2. At the end of the subscription period, the organization no longer has any rights to the software and would have to return to a previously owned version.
    3. True-downs are not possible (in contrast to Microsoft’s Office 365).
    4. Downgrade rights are not included or are limited by default.

    Which products are in the Creative Cloud bundle?

    Adobe Acrobat® XI Pro

    Adobe After Effects® CC

    Adobe Audition® CC

    Adobe Digital Publishing Suite, Single Edition

    Adobe InDesign® CC

    Adobe Dreamweaver® CC

    Adobe Edge Animate

    Adobe Edge Code preview

    Adobe Edge Inspect

    Adobe Photoshop CC

    Adobe Edge Reflow preview

    Adobe Edge Web Fonts

    Adobe Extension Manager

    ExtendScript Toolkit

    Adobe Fireworks® CS6

    Adobe Flash® Builder® 4.7 Premium Edition

    Adobe Flash Professional CC

    Adobe Illustrator® CC

    Adobe Prelude® CC

    Adobe Premiere® Pro CC

    Adobe Scout

    Adobe SpeedGrade® CC

    Adobe Muse CC

    Adobe Photoshop Lightroom 6

    Adobe offers different solutions for teams vs. enterprise licensing

    Evaluate the various options for Creative Cloud, as they can be purchased individually, for teams, or for enterprise.

    Bundle Name

    Target Customer

    Included Applications

    Features

    CC (for Individuals)

    Individual users

    The individual chooses

    • Sync, store, and share assets
    • Adobe Portfolio website
    • Adobe Typekit font collection
    • Microsoft Teams integration
    • Can only be purchased through credit card

    CC for Teams (CCT)

    Small to midsize organizations with a small number of Adobe users who are all within the same team

    Depends on your team’s requirements. You can select all applications or specific applications.

    Everything that CC (for individuals) does, plus

    • One license per user; can reassign CC licenses
    • Web-based admin console
    • Centralized deployment
    • Usage tracking and reporting
    • 100GB of storage per user
    • Volume discounts for 10+ seats

    CC for Enterprise (CCE)

    Large organizations with users who regularly use multiple Adobe products on multiple machines

    All applications including Adobe Stock for images and Adobe Enterprise Dashboard for managing user accounts

    Everything that CCT does, plus

    • Employees can activate a second copy of software on another device (e.g. home computer) as long as they share the same Adobe ID and are not used simultaneously
    • Ability to reassign licenses from old users to new users
    • Custom storage options
    • Greater integration with other Adobe products
    • Larger volume discounts with more seats

    For further information on specific functionality differences, reference Adobe’s comparison table.

    A Cloud-ish solution: Considerations and implications for IT organizations

    ☑ True cloud products are typically service-based, scalable and elastic, shared resources, have usage metering, and rely upon internet technologies. Currently, Adobe’s Creative Cloud and Document Cloud products lack these characteristics. In fact, the core products are still downloaded and physically installed on endpoint devices, then anchored to the cloud provisioning system, where the software can be automatically updated and continuously verified for compliance by ensuring the subscription is active.

    ☑ Adobe Cloud allows Adobe to increase end-user productivity by releasing new features and products to market faster, but the customer will increase lock-in to the Adobe product suite. The fast-release approach poses a different challenge for IT departments, as they must prepare to test and support new functionality and ensure compatibility with endpoint devices.

    ☑ There are options at the enterprise level that enable IT to exert more granular control over new feature releases, but these are tied to the ETLA and the provided enterprise portal and are not available on other subscription plans. This is another mechanism by which Adobe has been able to spur ETLA adoption.

    Not all CIOs consider SaaS/subscription applications their first choice, but the Adobe’s dominant position in the content and document management marketplace is forcing the shift regardless. It is significant that Adobe bypassed the typical hybrid transition model by effectively disrupting the ability to continue with perpetual licensing without falling behind the functionality curve.

    VIP plans do allow for annual terms and payment, but you lose the price elasticity that comes with multi-year terms.

    Download Info-Tech’s Adobe ETLA vs. VIP Pricing Table tool to compare ETLA costs against VIP costs.

    When moving to Adobe cloud, validate that license requirements meet organizational needs, not a sales quota

    Follow these steps in your transition to Creative Cloud.

    Step 1: Make sure you have a software asset management (SAM) tool to determine Adobe installs and usage within your environment.

    Step 2: Look at the current Adobe install base and usage. We recommend reviewing three months’ worth of reliable usage data to decide which users should have which licenses going forward.

    Step 3: Understand the changes in Adobe packages for Creative Cloud (CC). Also, take into account that the license types are based on users, not devices.

    Step 4: Identify those users who only need a single license for a single application (e.g. Photoshop, InDesign, Muse).

    Step 5: Identify the users who require CC suites. Look at their usage of previous Adobe suites to get an idea of which CC suite they require. Did they have Design Suite Standard installed but only use one or two elements? This is a good way to ensure you do not overspend on Adobe licenses.

    Source: The ITAM Review

    Download Info-Tech’s Adobe ETLA Deployment Forecast tool to track Adobe installs within your environment and to determine usage needs.

    Acquiring Adobe Software

    Adobe offers four common licensing methods, which are reviewed in detail in the following slides.

    Most common purchasing models

    Points for consideration

    • Value Incentive Plan (VIP)
    • Cumulative Licensing Program (CLP)
    • Transactional Licensing Program (TLP)
    • Enterprise Term License Agreement (ETLA)
    • Adobe, as with many other large software providers, includes special benefits and rights when its products are purchased through volume licensing channels.
    • Businesses should typically refrain from purchasing individual OEM (shrink wrap) licenses or those meant for personal use.
    • Purchase record history is available online, making it easier for your organization to manage entitlements in the case of an audit.

    "Customers are not even obliged to manage all the licenses themselves. The reseller partners have access to the cloud console and can manage licenses on behalf of their customers. Even better, they can seize cross and upsell opportunities and provide good insight into the environment. Additionally, Adobe itself provides optimization services."

    B-lay

    CLP and TLP

    The CLP and TLP are transactional agreements generally used for the purchase of perpetual licenses. For example, they could be used for making Acrobat purchases if Creative Suite products are purchased on the ETLA.

    The image contains a screenshot of a table comparing CLP and TLP.

    Source: “Adobe Buying Programs Comparison Guide for Commercial and Government Organizations”

    VIP and ETLA

    The Value Incentive Plan is aimed at small- to medium-sized organizations with no minimum quantity required. However, there is limited flexibility to reduce licenses and limited price protection for future purchases. The ETLA is aimed at large organizations who wish to have new functionality as it comes out, license management portal, services, and security/IT control aspects.

    The image contains a screenshot of a table comparing VIP and ETLA.

    Source: “Adobe Buying Programs Comparison Guide for Commercial and Government Organizations”

    ETLA commitments risk creating “shelfware-as-a-service”

    The Adobe ETLA’s rigid contract parameters, true-up process, and unique deployment/provisioning mechanisms give technology/IT procurement leaders fewer options to maximize cost-usage alignment and to streamline opex costs.

    ☑ No ETLA price book is publicly published; pricing is controlled by the Adobe enterprise sales team.

    ☑ Adobe's retail pricing is a good starting point for negotiating discounted pricing.

    ☑ ETLA commitments are usually for three years, and the lack of a true-down option increases the risk involved in overbuying licenses should the organization encounter a business downturn or adverse event.

    ☑ Pricing discounts are the highest at the initial ETLA signing for the upfront volume commitment. The true-up pricing is discounted from retail but still higher than the signing cost per license.

    ☑ Technical support is included in the ETLA.

    ☑ While purchases typically go through value-added resellers (VARs), procurement can negotiate directly with Adobe.

    "For cloud products, it is less complex when it comes to purchasing and pricing. If larger quantities are purchased on a longer term, the discount may reach up to 15%. As soon as you enroll in the VIP program, you can control all your licenses from an ‘admin console’. Any updates or new functionalities are included in the original price. When the licenses expire, you may choose to renew your subscriptions or remove them. Partial renewal is also accepted. Of course, you can also re-negotiate your price if more subscriptions are added to your console."

    B-lay

    ETLA recommendations

    1. Assess the end-user requirements with a high degree of scrutiny. Perform an analysis that matches the licensee with the correct Adobe product SKU to reduce the risk of overspending.
    • Leverage metering data that identifies actual usage and lack thereof, match to user profile functional requirements, and then determine end users’ actual license requirements.
  • Build in time to evaluate alternative products where possible and position the organization to leverage a Plan B vendor to replace or mitigate growth on the Adobe platform. Re-evaluate options well in advance of the ETLA renewal.
  • Secure price protection through negotiating a price cap or an extended ETLA term beyond the standard three-year term. Short of obtaining an escalation cap, which Adobe is strongly resisting, build in price increases for the ETLA renewal years.
    • Demand price transparency and granularity in the proposal process.
    • Validate that volume discounts are appropriate and show through to the true-up line item pricing.
  • Negotiate a true-down mechanism upfront with Adobe if usage decline is inevitable or expected due to a merger or acquisition, divestiture, or material restructuring event.
  • INFO-TECH TIP: For further guidance on ETLAs and pricing, contact your Info-Tech representative to set up a call with an analyst.

    Use Info-Tech’s Adobe ETLA Deployment Forecast tool to match licensees with Adobe product SKUs.

    Prepare for Adobe’s true-up process

    How the true-up process works

    When adding a license, the true-up price will be prorated to 50% of the license cost for previous year’s usage plus 100% of the license cost for the next year. This back-charging adds up to 150% of the overall true-up license cost. In some rare cases, Adobe has provided an “unlimited” quantity for certain SKUs; these Unlimited ETLAs generally align with FTE counts and limit FTE increases to about 5%. Procurement must monitor and work with SAM/ITAM and stakeholder groups to restrain unnecessary growth during the term of an Unlimited ETLA to avoid the risk of cost escalation at renewal time.

    Higher-education specific

    Higher-education clients can license under the ETLA based on a prescribed number of user and classroom/lab devices and/or on a FTE basis. In these cases, the combination of Creative Cloud and Acrobat Pro volume must equal the FTE total, creating an enterprise footprint. FTE calculations establish the full-time faculty plus one-third of part-time faculty plus one-half of part-time staff.

    Info-Tech Insight

    Compliance takes a different form in terms of the ETLA true-up process. The completion of Adobe's transition to cloud-based licensing and verification has improved compliance rates via phone home telemetry such that pirated software is less available and more easily detected. Adobe has actually decommissioned its audit arm in the Americas and EMEA.

    Audits and software asset management with Adobe

    Watch out for:

    • Virtual desktops, freeware, and test and trial licenses
    • Adobe products that may be bundled into a suite; a manual check will be needed to ensure the suite isn’t recognized as a standalone license
    • Pirated licenses with a “crack” built into the software

    Simplify your process – from start to finish – with these steps:

    Determine License Entitlements

    Obtain documentation from internal records and Adobe to track licenses and upgrades to determine what licenses you own and have the right to use.

    Gather Deployment Information

    Leverage a software asset management tool or process to determine what software is deployed and what is/is not being used.

    Determine Effective License Position

    Compare license entitlements with deployment data to uncover surpluses and deficits in licensing. Look for opportunities.

    Plan Changes to License Position

    Meet with IT stakeholders to discuss the enterprise license program (ELP), short- and long-term project plans, and budget allocation. Plan and document licensing requirements.

    Adobe Genuine Software Integrity Service

    • This service was started in 2014 to combat non-genuine software sold by non-authorized resellers.
    • The service works hand in hand with the cloud movement to reduce piracy.
    • Every Adobe product now contains an executable file that will scan your machine for non-genuine software.
    • If non-genuine software is detected, the user will be notified and directed to the official Adobe website for next steps.

    Detailed list of Adobe licensing contract types

    The table below describes Adobe contract types beyond the four typical purchasing models explained in the previous slides:

    Option

    What is it?

    What’s included?

    For

    Term

    CLP (Cumulative Licensing Program)

    10,000 plus points, support and maintenance optional

    Select Adobe perpetual desktop products

    Business

    2 years

    EA (Adobe Enterprise Agreement)

    100 licenses plus maintenance and support for eligible Adobe products

    All applications

    100+ users requirement

    3 years

    EEA (Adobe Enterprise Education Agreement)

    Creative Cloud enterprise agreement for education establishments

    Creative Cloud applications without services

    Education

    1 or 2 years

    ETLA (Enterprise Term License Agreement)

    Licensing program designed for Adobe’s top commercial, government, and education customers

    All Creative Cloud applications

    Large enterprise companies

    3 years

    K-12 – Enterprise Agreement

    Enterprise agreement for primary and secondary schools

    Creative Cloud applications without services

    Education

    1 year

    K-12 – School Site License

    Allows a school to install a Creative Cloud on up to 500 school-owned computers regardless of school size

    Creative Cloud applications without services

    Education

    1 year

    TLP (Transactional Licensing Program)

    Agreement for SMBs that want volume licensing bonuses

    Perpetual desktop products only

    Aimed at SMBs, but Enterprise customers can use the TLP for smaller requirements

    N/A

    Upgrade Plan

    Insurance program for software purchased under a perpetual license program such as CLP or TLP for Creative Cloud upgrade

    Dependent on the existing perpetual estate

    Anyone

    N/A

    VIP (Value Incentive Plan)

    VIP allows customers to purchase, deploy, and manage software through a term-based subscription license model

    Creative Cloud of teams

    Business, government, and education

    Insight breakdown

    Insight 1

    Adobe operates in its own niche in the creative space, and Adobe users have grown accustomed to their products, making switching very difficult.

    Insight 2

    Adobe has transitioned the vast majority of its software offerings to the cloud-based subscription model. Active management of licenses, software provisioning, and consumption of cloud services is now an ongoing job.

    Insight 3

    With the vendor lock-in process nearly complete via the transition to a SaaS subscription model, Adobe is raising prices on an annual basis. Advance planning and strategic use of the ETLA is key to avoid budget-breaking surprises.

    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

    • Understanding of the importance of licensing in relation to business objectives.
    • Understanding of the various licensing considerations that need to be made.
    • Contract negotiation.

    Deliverables Completed

    • Adobe ETLA Deployment Forecast
    • Adobe ETLA Forecasted Cost and Benefits
    • Adobe ETLA vs. VIP Pricing Table

    Related Info-Tech Research

    Take Control of Microsoft Licensing and Optimize Spend

    Create an Effective Plan to Implement IT Asset Management

    Establish an Effective System of Internal IT Controls to Mitigate Risks

    Optimize Software Asset Management

    Take Control of Compliance Improvement to Conquer Every Audit

    Cut PCI Compliance and Audit Costs in Half

    Bibliography

    “Adobe Buying Programs: At-a-glance comparison guide for Commercial and government organizations.” Adobe Systems Incorporated, 2014. Web. 1 Feb. 2018.

    “Adobe Buying Programs Comparison Guide for Commercial and Government Organizations.” Adobe Systems Incorporated, 2018. Web.

    “Adobe Buying Programs Comparison Guide for Education.” Adobe Systems Incorporated, 2018. Web. 1 Feb 2018.

    “Adobe Education Enterprise Agreement: Give your school access to the latest industry-leading creative tools.” Adobe Systems Incorporated, 2014. Web. 1 Feb. 2018.

    “Adobe Enterprise Term License Agreement for commercial and government organizations.” Adobe Systems Incorporated, 2016. Web. 1 Feb. 2018.

    Adobe Investor Presentation – October 2017. Adobe Systems Incorporated, 2017. Web. 1 Feb. 2018.

    Cabral, Amanda. “Students react to end of UConn-Adobe contract.” The Daily Campus (Uconn), 5 April 2017. Web. 1 Feb. 2018.

    de Veer, Patrick and Alecsandra Vintilescu. “Quick Guide to Adobe Licensing.” B-lay, Web. 1 Feb. 2018.

    “Find the best program for your organization.” Adobe, Web. 1 Feb 2018.

    Foxen, David. “Adobe Upgrade Simplified.” Snow Software, 7 Oct. 2016. Web.

    Frazer, Bryant. “Adobe Stops Reporting Subscription Figures for Creative Cloud.” Studio Daily. Access Intelligence, LLC. 17 March 2016. Web.

    “Give your students the power to create bright futures.” Adobe, Web. 1 Feb 2018.

    Jones, Noah. “Adobe changes subscription prices, colleges forced to pay more.” BG Falcon Media. Bowling Green State University, 18 Feb. 2015. Web. 1 Feb. 2018.

    Mansfield, Adam. “Is Your Organization Prepared for Adobe’s Enterprise Term License Agreements (ETLA)?” UpperEdge,30 April 2013. Web. 1 Feb. 2018.

    Murray, Corey. “6 Things Every School Should Know About Adobe’s Move to Creative Cloud.” EdTech: Focus on K-12. CDW LLC, 10 June 2013. Web.

    “Navigating an Adobe Software Audit: Tips for Emerging Unscathed.” Nitro, Web. 1 Feb. 2018.

    Razavi, Omid. “Challenges of Traditional Software Companies Transitioning to SaaS.” Sand Hill, 12 May 2015. Web. 1 Feb. 2018.

    Rivard, Ry. “Confusion in the Cloud.” Inside Higher Ed. 22 May 2013. Web. 1 Feb. 2018.

    Sharwood, Simon. “Adobe stops software licence audits in Americas, Europe.” The Register. Situation Publishing. 12 Aug. 2016. Web. 1 Feb. 2018.

    “Software Licensing Challenges Faced In The Cloud: How Can The Cloud Benefit You?” The ITAM Review. Enterprise Opinions Limited. 20 Nov. 2015. Web.

    White, Stephen. “Understanding the Impacts of Adobe’s Cloud Strategy and Subscriptions Before Negotiating an ETLA.” Gartner, 22 Feb. 2016. Web.

    Optimize the Service Desk With a Shift-Left Strategy

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    • Parent Category Name: Service Desk
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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

    Master M&A Cybersecurity Due Diligence

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    • Parent Category Name: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance

    This research is designed to help organizations who are preparing for a merger or acquisition and need help with:

    • Understanding the information security risks associated with the acquisition or merger.
    • Avoiding the unwanted possibility of acquiring or merging with an organization that is already compromised by cyberattackers.
    • Identifying best practices for information security integration post merger.

    Our Advice

    Critical Insight

    The goal of M&A cybersecurity due diligence is to assess security risks and the potential for compromise. To succeed, you need to look deeper.

    Impact and Result

    • A repeatable methodology to systematically conduct cybersecurity due diligence.
    • A structured framework to rapidly assess risks, conduct risk valuation, and identify red flags.
    • Look deeper by leveraging compromise diagnostics to increase confidence that you are not acquiring a compromised entity.

    Master M&A Cybersecurity Due Diligence Research & Tools

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

    1. Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to master M&A cyber security due diligence, review Info-Tech’s methodology, and understand how we can support you in completing this project.

    [infographic]

    Application Maintenance

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    • Parent Category Name: Applications
    • Parent Category Link: /applications

    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)

     

     

    Select and Implement an IT PPM Solution

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    • Parent Category Name: Portfolio Management
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    • The number of IT project resources and the quantity of IT projects and tasks can no longer be recorded, prioritized, and tracked using non-commercial project portfolio management (PPM) solutions.
    • Your organization has attained a moderate level of PPM maturity.
    • You have sufficient financial and technical resources to purchase a commercial PPM solution.
    • There is a wide variety of commercial PPM solutions; different kinds of PPM solutions are more appropriate for organizations of a certain size and a certain PPM maturity level than others.

    Our Advice

    Critical Insight

    • Implementations of PPM solutions are often unsuccessful resulting in wasted time and resources; failing to achieve sustainable adoption of the tool is a widespread pain point.
    • The costs of PPM solutions do not end after the implementation and subscription invoices are paid. Have realistic expectations about the time required to use and maintain PPM solutions to ensure success.
    • PPM solutions help PMOs serve the organization’s core decision makers. Success depends on improved service to these stakeholders.

    Impact and Result

    • Using Info-Tech’s Vendor Landscape and PPM solution use cases, you will be able to make sense of the diversity of PPM solutions available in today’s market and choose the most appropriate solution for your organization’s size and level of PPM maturity.
    • Info-Tech’s blueprint for a PPM solution selection and implementation project will provide you with a variety of tools and templates.
    • A carefully planned out and executed selection and implementation process will help ensure your organization can maximize the value of your project portfolio and will allow the PMO to improve portfolio stakeholder satisfaction.

    Select and Implement an IT PPM Solution Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement a commercial PPM solution, 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 PPM solution project and collect requirements

    Create a PPM solution selection and implementation project charter and gather your organizations business and technical requirements.

    • Select and Implement a PPM Solution – Phase 1: Launch the PPM Solution Project and Collect Requirements
    • PPM Solution Project Charter Template
    • PPM Implementation Work Breakdown Structure
    • PPM Solution Requirements Gathering Tool
    • PPM Solution Cost-of-Use Estimation Tool
    • PPM Solution RFP Template
    • PPM Solution Success Metrics Workbook
    • PPM Solution Use-Case Fit Assessment Tool

    2. Select a PPM solution

    Select the most appropriate PPM solution for your organization by using Info-Tech’s PPM solution Vendor Landscape and use cases to help you create a vendor shortlist, produce an RFP, and establish evaluation criteria for ranking your shortlisted solutions.

    • Select and Implement a PPM Solution – Phase 2: Select a PPM Solution
    • PPM Vendor Shortlist & Detailed Feature Analysis Tool
    • PPM Solution Vendor Response Template
    • PPM Solution Evaluation & RFP Scoring Tool
    • PPM Solution Vendor Demo Script

    3. Plan the PPM solution implementation

    Plan a PPM solution implementation that will result in long-term sustainable adoption of the tool and that will allow the PMO to meet the needs of core project portfolio stakeholders.

    • Select and Implement a PPM Solution – Phase 3: Plan the PPM Solution Implementation
    [infographic]

    Workshop: Select and Implement an IT PPM Solution

    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 PPM Solution Project and Gather Requirements

    The Purpose

    Create a PPM solution selection and implementation project charter.

    Gather the business and technical requirements for the PPM solution.

    Establish clear and measurable success criteria for your PPM solution project.

    Key Benefits Achieved

    Comprehensive project plan

    Comprehensive and organized record of the various PPM solution requirements

    A record of PPM solution project goals and criteria that can be used in the future to establish the success of the project

    Activities

    1.1 Brainstorm, refine, and prioritize your PPM solution needs

    1.2 Stakeholder identification exercise

    1.3 Project charter work session

    1.4 Requirements gathering work session

    1.5 PPM solution success metrics workbook session

    Outputs

    High-level outline of PPM solution requirements

    Stakeholder consultation plan

    A draft project charter and action plan to fill in project charter gaps

    A draft requirements workbook and action plan to fill in requirement gathering gaps

    A PPM project success metrics workbook that can be used during and after the project

    2 Select a PPM Solution

    The Purpose

    Identify the PPM solutions that are most appropriate for your organization’s size and level of PPM maturity.

    Create a PPM solution and vendor shortlist.

    Create a request for proposal (RFP).

    Create a PPM solution scoring and evaluation tool.

    Key Benefits Achieved

    Knowledge of the PPM solution market and the various features available

    An informed shortlist of PPM vendors

    An organized and focused method for evaluating the often long and complex responses to the RFP that vendors provide

    The groundwork for an informed and defensible selection of a PPM solution for your organization

    Activities

    2.1 Assess the size of your organization and the level of PPM maturity to select the most appropriate use case

    2.2 PPM solution requirements and criteria ranking activity

    2.3 An RFP working session

    2.4 Build an RFP evaluation tool

    Outputs

    Identification of the most appropriate use case in Info-Tech’s Vendor Landscape

    A refined and organized list of the core features that will be included in the RFP

    A draft RFP with an action plan to fill in any RFP gaps

    An Excel tool that can be used to compare and evaluate vendors’ responses to the RFP

    3 Prepare for the PPM Solution Implementation

    The Purpose

    To think ahead to the eventual implementation of the solution that will occur once the selection phase is completed

    Key Benefits Achieved

    An understanding of key insights and steps that will help avoid mistakes resulting in poor adoption or PPM solutions that end up producing little tangible value

    Activities

    3.1 Outline high-level implementation stages

    3.2 Organizational change management strategy session

    3.3 A PPM project success metrics planning session

    Outputs

    High-level implementation tasks and milestones

    A RACI chart for core implementation tasks

    A high-level PPM solution implementation organizational change management strategy

    A RACI chart for core organizational change management tasks related to the PPM solution implementation

    A PPM project success metrics schedule and plan

    IT Organizational Design

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    • Parent Category Name: People and Resources
    • Parent Category Link: /people-and-resources

    The challenge

    • IT can ensure full business alignment through an organizational redesign.
    • Finding the best approach for your company is difficult due to many frameworks and competing priorities.
    • External competitive influences and technological trends exacerbate this.

    Our advice

    Insight

    • Your structure is the critical enabler of your strategic direction. Structure dictates how people work together and how they can fill in their roles to create the desired business value. 
    • Constant change is killing for an organization. You need to adapt, but you need a stable baseline and make sure the change is in line with the overall strategy and company context.
    • A redesign is only successful if it really happens. Shifting people into new positions is not enough to implement a redesign. 

    Impact and results 

    • Define your redesign principles. They will act as a manifesto to your change. It also provides for a checklist, ensuring that the structure does not deviate from the business strategy.
    • Visualize the new design with a customized operating model for your company. It must demonstrate how IT creates value and supports the business value creation chains.
    • Define the future-state roles, functions, and responsibilities to enable your IT department to support the business effectively.

    The roadmap

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

    Get started

    Our concise executive brief explains to you the challenges associated with the organizational redesign. We'll show you our methodology and the ways we can help you in completing this.

    Define your organizational design principles and select your operating model

    The design principles will govern your organizational redesign; Align the principles with your business strategy.

    • Redesign Your IT Organizational Structure – Phase 1: Craft Organizational Design Principles and Select an IT Operating Model (ppt)
    • Organizational Design Communications Deck (ppt)

    Customize the selected IT operating model to your company

    Your operating model must account for the company's nuances and culture.

    • Redesign Your IT Organizational Structure – Phase 2: Customize the IT Operating Model (ppt)
    • Operating Models and Capability Definition List (ppt)

    Design the target-state of your IT organizational structure

    Go from an operating model to the structure fit for your company.

    • Redesign Your IT Organizational Structure – Phase 3: Architect the Target-State IT Organizational Structure (ppt)
    • Organizational Design Capability RACI Chart (xls)
    • Work Unit Reference Structures (Visio)
    • Work Unit Reference Structures (pdf)

    Communicate the benefits of the new structure

    Change does not come easy. People will be anxious. Craft your communications to address critical concerns and obtain buy-in from the organization. If the reorganization will be painful, be up-front on that, and limit the time in which people are uncertain.

    • Redesign Your IT Organizational Structure – Phase 4: Communicate the Benefits of the New Organizational Structure (ppt)

     

    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)
    4. AGILE GOVERNANCE
      Governance that is flexible to support different needs and quick responses in the organization. Driven by principles and delegated throughout the company.
    5. 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.
    5. Brainstorm some examples of decisions that support or constrain the achievement of your goals.
    6. Repeat this exercise for your remaining goals.
    7. 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.

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    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.

    Bibliography

    “2020 State of Data Governance and Automation Report.” Erwin.com, 28 Jan. 2020. Web.

    “Adaptive IT Governance.” Google search, 15 Nov. 2020.

    “Adaptive IT Governance Framework.” CIO Index, 3 Nov. 2011. Accessed 15 Nov. 2020.

    “Agile Governance Made Easy.” Agilist, n.d. Accessed 15 Nov. 2020.

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    Navigate the Digital ID Ecosystem to Enhance Customer Experience

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    • Amid the pandemic-fueled surge in online services, organizations require secure solutions to safeguard digital interactions. These solutions must be uniform, interoperable, and fortified against security threats.
    • Although the digital identity ecosystem has garnered significant attention and investment, many organizations remain uncertain about its potential for authentication and the authorization required for B2B and B2C transactions, and in turn reducing their cost of operations and transferring their data risks.

    Our Advice

    Critical Insight

    • Limited / lack of understanding of the global digital ID ecosystem and its varying approaches across countries handicaps businesses in defining the benefits digital ID can bring to customer interactions and overall business management.
    • In addition, key obstacles exist in balancing customer privacy, data security, and regulatory requirements while pursuing excellent end-user experience and high customer adoption.
    • Info-Tech Insight: Focusing on customer touchpoints and transforming them are key to excellent experience and increasing their life-time value (LTV) to them and to your organization. Digital ID is that tool of transformation.

    Impact and Result

    • Digital ID has many dimensions, and its ecosystem's sustainability lies in the key principles it is built on. Understanding the digital identity ecosystem and its responsibilities is crucial to formulating an approach to adopt it. Also, focusing on key success factors drives digital ID adoption.
    • Before embarking on the digital identity adoption journey, it is essential to assess your readiness. It is also necessary to understand the risks and challenges. Specific steps to digital ID adoption can help realize the potential of digital identity and enhance the customers' experience.

    Navigate the Digital ID Ecosystem to Enhance Customer Experience Research & Tools

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

    1. Navigate the Digital ID Ecosystem to Enhance Customer Experience Storyboard – Learn how to adopt Digital ID to drive benefits, enhance customer experience, improve efficiency, manage data risks, and uncover new opportunities.

    This research focuses on verified digital identity ecosystems and explores risks, opportunities, and challenges of relying on verified digital IDs and also how adopting digital identity initiatives can improve customer experience and operational efficiency. It covers:

  • Definition and dimensions of digital identity
  • Key responsibilities and principles of digital identity ecosystem
  • Success factors for digital identity adoption
  • Global evolution and unique approaches in Estonia, India, Canada, UK, and Australia
  • Industries that benefit most from digital ID development
  • Key use cases of digital ID
  • Benefits to governments, ID providers, ID consumers, and end users
  • Readiness checklist and ten steps to digital ID adoption
  • Risks and challenges of digital identity adoption
  • Key recommendations to realize potential of digital identity
  • Taxonomy and definitions of terms in the digital identity ecosystem
    • Navigate the Digital ID Ecosystem to Enhance Customer Experience Storyboard
    • Familiarize Yourself With the Digital ID Ecosystem Taxonomy
    • Assess Your Digital ID Adoption Readiness

    Infographic

    Further reading

    Navigate the Digital ID Ecosystem to Enhance Customer Experience

    Beyond the hype: How it can help you become more customer-focused?

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    Amid the pandemic-fueled surge of online services, organizations require secure solutions to safeguard digital interactions. These solutions must be uniform, interoperable, and fortified against security threats.

    Although the digital identity ecosystem has garnered significant attention and investment, many organizations remain uncertain about its potential for authentication and authorization required for B2B and B2C transactions.

    They still wonder if digital ID can help reduce cost of operations and transfer data risks.

    Limited or lack of understanding of the global Digital ID ecosystem and its varying approaches across countries handicap businesses in defining the potential benefits Digital ID can bring to customer interactions and overall business management.

    In addition, key obstacles exist in balancing customer privacy (including the right to be forgotten), data security, and regulatory requirements while pursuing desired end-user experience and high customer adoption.

    Digital ID has many dimensions, and its ecosystem's sustainability lies in the key principles it is built on. Understanding the digital identity ecosystem and its responsibilities is crucial to formulate an approach to adopt it. Also, focusing on key success factors drives digital ID adoption.

    Before embarking on the digital identity adoption journey, it is essential to assess your readiness. It is also necessary to understand the risks and challenges. Specific steps to digital ID adoption can help realize the potential of digital identity and enhance the customers' experience.

    Info-Tech Insight

    Focusing on customer touchpoints and transforming them is key to excellent user experience and increasing their lifetime value (LTV) to them and to your organization. Digital ID is that tool of transformation.

    Analyst Perspective

    Manish Jain.

    Manish Jain

    Principal Research Director

    Analyst Profile

    “I just believed. I believed that the technology would change people's lives. I believed putting real identity online - putting technology behind real identity - was the missing link.”

    - Sheryl Sandberg (Brockes, Emma. “Facebook’s Sheryl Sandberg: who are you calling bossy?” The Guardian, 5 April 2014)

    Sometimes dismissed as mere marketing gimmicks, digital identity initiatives are anything but. While some argue that any online credential is a "Digital ID," rendering the hype around it pointless, the truth is that a properly built digital ID ecosystem has the power to transform laggard economies into global digital powerhouses. Moreover, digital IDs can help businesses transfer some of their cybersecurity risks and unlock new revenue channels by enabling a foundation for secure and efficient value delivery.

    In addition, digital identity is crucial for digital and financial inclusion, simplifying onboarding processes and opening up new opportunities for previously underserved populations. For example, in India, the Aadhaar digital ID ecosystem brought over 481 million1 people into the formal economy by enabling access to financial services. Similarly, in Indonesia, the e-KIP digital ID program paved the way for 10 million new bank accounts, 94% of which were for women2.

    However, digital identity initiatives also come with valid concerns, such as the risk of a single point of failure and the potential to widen the digital divide.

    This research focuses on the verified digital identity ecosystem, exploring the risks, opportunities, and challenges organizations face relying on these verified digital IDs to know their customers before delivering value. By understanding and adopting digital identity initiatives, organizations can unlock their full potential and provide a seamless customer experience while ensuring operational efficiency.

    1 India Aadhaar PMJDY (https://pmjdy.gov.in/account)
    2 Women’s World Banking, 2020.

    Digital Identity Ecosystem and vital ingredients of adoption

    Digital Identity Ecosystem.

    What is digital identity?

    Definitions may vary, depending on the focus.

    “Digital identity (ID) is a set of attributes that links a physical person with their online interactions. Digital ID refers to one’s online persona - an online footprint. It touches important aspects of one’s everyday life, from financial services to health care and beyond.” - DIACC Canada

    “Digital identity is a digital representation of a person. It enables them to prove who they are during interactions and transactions. They can use it online or in person.” - UK Digital Identity and Attributes Trust Framework

    “Digital identity is an electronic representation of an entity (person or other entity such as a business) and it allows people and other entities to be recognized online.” - Australia Trusted Digital Identity Framework

    A digital identity is primarily an electronic form of identity representing an entity uniquely , while abstracting all other identity attributes of the entity. In addition to an electronic form, it may also exist in a physical form (identity certificate), linked through an identifier representing the same entity.

    Digital identity has many dimensions*, and in turn categories

    Trust

    • Verified (Govt. issued IDs)
    • Unverified (Email Id)

    Subject

    • Individual
    • Organization
    • Device
    • Service

    Usability

    • Single-purpose (Disposable)
    • Multi-purpose (Reusable)

    Provider

    • Sovereign Government
    • Provincial Government
    • Local Government
    • Public Organization
    • Private Organization
    • Self

    Jurisdiction

    • Global (Passport)
    • National (DL)
    • State/Provincial (Health Card)
    • Local (Voting Card)
    • Private (Social)

    Form

    • Physical Card
    • Virtual Identifier
    • Online/App Account
    • PKI Keys
    • Tokens

    Governance

    • Sovereign
    • Federated
    • Decentralized
    • Trust Framework -based
    • Self-sovereign

    Expiry

    • Permanent (Lifetime, Years)
    • Temporary (Minutes, Hours)
    • Revocable

    Usage Mode

    • online only
    • offline only
    • Online/offline

    Purpose

    • Authorization (driver’s license, passport, employment)
    • Authentication (birth certificate, social security number)
    • Activity Linking (preferences, habits, and priorities)
    • Historical Record (Resume, educational financial, health history)
    • Social Interactions (Social Media)
    • Machine Connectivity

    Info-Tech Insight

    Digital ID has taken different meanings for different people, serving different purposes in different environments. Based on various aspects of Digital Identification, it can be categorized in several types. However, most of the time when people refer to a form of identification as Digital ID, they refer to a verified id with built-in trust either from the government OR the eco-system.

    * Please refer to Taxonomy for the definition of each of the dimensions

    Understanding a digital identity ecosystem is key to formulating your approach to adopt it

    The image contains a screenshot of a digital identity ecosystem diagram.

    Info-Tech Insight

    Digital identity ecosystems comprise many entities playing different roles, and sometimes more than one. In addition, variations in approach by jurisdictions drive how many active players are in the ecosystem for that jurisdiction.

    For example, in countries like Estonia and India, government plays the role of trust and governance authority as well as ID provider, but didn’t start with any Digital ID wallet. In contrast, in Ukraine, Diia App is primarily a Digital ID Wallet. Similarly, in the US, different states are adopting private Digital ID Wallet providers like Apple.

    Digital ID ecosystem’s sustainability lies in the key principles it is built on

    Social, economic, and legal alignment with target stakeholders
    Transparent governance and operation
    Legally auditable and enforceable
    Robust and Resilient – High availability
    Security – At rest, in progress, and in transit
    Privacy and Control with users
    Omni-channel Convenience – User and Operations
    Minimum data transfer between entities
    Technical interoperability enabled through open standards and protocol
    Scalable and interoperable at policy level
    Cost effective – User and operations
    Inclusive and accessible

    Info-Tech Insight

    A transparent, resilient, and auditable digital ID system must be aligned with socio-economic realities of the target stakeholders. It not only respects their privacy and security of their data by minimizing the data transfer between entities, but also drives desired customer experience by providing an omni-channel, interoperable, scalable, and inclusive ecosystem while still being cost-effective for the collaborators.

    Source: Adapted from Canada PCTF, UK Trust framework, European Commission, Australia TDIF, and others

    Focus on key success factors to drive the digital ID adoption

    Digital ID success factors

    Legislative regulatory framework – Removes uncertainty
    Security & Privacy Assurance- builds trust
    Smooth user experience – Drives preferences
    Transparent ecosystem – Drives inclusivity
    Multi-channel – Drive consistent experience online / offline
    Inter-operability thorough open standards
    Digital literacy – Education and awareness
    Multi-purpose & reusable – Reduce consumer burden
    Collaborative ecosystem –Build network effect

    Source: Adapted from Canada PCTF, UK digital identity & attributes trust framework , European eIDAS, and others

    Info-Tech Insight

    Driving adoption of Digital ID requires affirmative actions from all ecosystem players including governing authorities, identity providers, and identity consumers (relying parties).

    These nine success factors can help drive sustainable adoption of the Digital ID.

    Among many responsibilities the ecosystem players have, identity governance is the key to sustainability

    • Digital identity provision
      • Creating identity attributes
      • Create a reusable identity and attribute service
      • Create a digital identity
      • Assess and manage quality of an identity and attributes
      • Making identity provision inclusive and accessible
    • Digital identity resolution
      • Enabling inclusive access to products and services through digital identity
      • Authenticate and authorize identity subjects before permitting access to their identity and attributes
    • Digital identity governance
      • Manage digital identity and attributes
      • Make Identity service interoperable, and sharable
      • Recover digital identity and attribute accounts
      • Notifying users on accessing identity or making changes on more attributes
      • Report and audit – exclusion, accessibility
      • Retiring an identity or attribute service
      • Respond to complaints and disputes
    • Enterprise risk management and governance
    The image contains a screenshot of a diagram to demonstrate how identity governance is the key to sustainability.
    • Privacy and security
      • Use encryption
      • Privacy compliance framework
      • Consumer Privacy Protection laws (CPPA, GDPR etc.)
      • Acquiring and managing user consents & agreements
      • Prohibited processing of personal data
      • Security controls and governance
    • Information management
      • Record management
      • Archival
      • Disposal (on expiry or to comply with regulations)
      • CIA (confidentiality, integrity, availability)
    • Fraud management
      • Fraud monitoring and reporting
      • Fraud intelligence and analysis
      • Sharing threat indicators
      • Legal, policies and procedures for fraud management
    • Incident response
      • Respond to fraud incidents
      • Respond to a service delivery incident
      • Responding to data breaches
      • Performing and participating in investigation

    Global evolution of digital ID is following the socio-economic aspirations of countries

    The image contains a screenshot of a graph that demonstrates global evolution of digital ID.

    Source: Adapted from the book: Identification Revolution: Can Digital ID be harnessed for Development? (Gelb & Metz), 2018

    Info-Tech Insight

    The world became global a long time ago; however, it sustained economic progress without digital IDs for most of the world's population.

    With the pandemic, when political rhetoric pointed to the demand for localized supply chains, economies became irreversibly digital. In this digital economy, the digital ID ecosystem is the fulcrum of sustainable growth.

    At a time in overlapping jurisdictions, multiple digital IDs can exist. For example, one is issued by a local municipality, one by the province, and another by the national government.

    Global footprint of digital ID is evolving rapidly, but varies in approach

    The image contains a screenshot of a Global footprint of digital ID.

    Info-Tech Insight

    Countries’ approach to the digital ID is rooted in their socio-economic environment and global aspirations.

    Emerging economies with large underserved populations prioritize fast implementation of digital ID through centralized systems.

    Developed economies with smaller populations, low trust in government, and established ID systems prioritize developing trust frameworks to drive decentralized full-scale implementation.

    There is no right way except the one which follows Digital ID principles and aligns with a country’s and its people’s aspirations.

    Estonia's e-identity is the key to its digital agenda 2030

    • Regulatory Body and Operational Governance: Estonian Information System Authority (RIA).
    • Identity Providers: Government of Estonia; Private sector doesn’t issue IDs but can leverage Digital ID ecosystem.
    • Decentralized Approach: Permissioned Blockchain Architecture with built-in data traceability implemented on KSI (Keyless Signature Infrastructure).
    • X-Road – Secure, interoperable open-source data exchange platform between collection point where Data is stored.
    • Digital Identity Form: e-ID
    • Key Use cases:
      • Financial, Telecom: e-KYC, e-Banking
      • Digital Authentication: ID Card, Mobile ID, Smart ID, Digital Signatures
      • E-governance: e-Voting, e-Residency, e-Services Registries, e-Business Register
      • Smart City and mobility: Freight Transportation, Passenger Mobility
      • Healthcare: e-Health Record, e-Prescription, e-Ambulance
    • ID-card
    • Smart ID
    • Mobile ID
    • e-Residency

    Uniqueness

    Estonia pioneered the digital ID implementation with a centralized approach and later transitioned to a decentralized ecosystem driving trust to attract non-citizens into Estonia’s digital economy.

    99% Of Estonian residents have an ID card enabling use of electronic ID

    1.4 B Digital signatures given (2021)

    99% Public Services available as e-Services

    17K+ Productive years saved (five working days/citizen/year saved accessing public services)

    25K E-resident companies contributed more than €32 million in tax

    *Source: https://e-estonia.com/wp-content/uploads/e-estonia-211022_eng.pdf ;

    https://www.e-resident.gov.ee/dashboard

    The image contains a timeline of events from 2001-2020 for Estonia..

    India’s Aadhaar is the foundation of its digital journey through “India stack”

    • Regulatory Accountability and Operational Governance: Unique Identification Authority of India (UIDAI).
    • Identity Provider: Govt. of India.
    • Digital Identity Form: Physical and electronic ID Card; Online (Identifier + OTP), and offline (identifier + biometric) usage; mAadhaar App & Web Portal
    • India Stack: a set of open APIs and digital assets to leverage Aadhaar in identity, data, and payments at scale.
    • Key Use cases:
      • Financial, Telecom: eKYC, Unified Payments Interface (UPI)
      • Digital Wallet: Digi Locker
      • Digital Authentication: eSign, and Aadhaar Auth.
      • Public Welfare: Public Distribution of Service, Social Pension, Employment Guarantee
      • Public service access: Enrollment to School, Healthcare

    1.36B People enrolled

    80% Beneficiaries feel Aadhaar has made PDS, employment guarantee and social pensions more reliable

    91.6% Are very satisfied or somewhat satisfied with Aadhaar

    14B eKYC transactions done by 218 eKYC authentication agencies (KUA)

    Source: https://uidai.gov.in/aadhaar_dashboard/india.php; https://www.stateofaadhaar.in/

    World Bank Report on Private Sector Impacts from ID

    Uniqueness

    “The Aadhaar digital identity system could reduce onboarding costs for Indian firms from 1,500 rupees to as low as an estimated 10 rupees.”

    -World Bank Report on Private Sector Impacts from ID

    With lack of public trust in private sector, government brought in private sector executives in public ecosystem to lead the largest identity program globally and build the India stack to leverage the power of Digital Identity.

    The image contains a screenshot of India's Aadhaar timeline from 2009-2022.

    Ukraine’s Diia is a resilient act to preserve their identities during threat to their existence

    Regulatory Accountability and Operational Governance: Ministry of Digital Transformation.

    Identity provider: Federated govt. agencies.

    Digital identity form: Diia App & Portal as a digital wallet for all IDs including digital driving license.

    • Key use cases:
      • eGovernance – Issuing license and permits, business registration, vaccine certificates.
      • Public communication: air-raid alerts, notifications, court decisions and fines.
      • Financial, Telecom: KYC compliance, mobile donations.
      • eBusiness: Diia City legal framework for IT industry, Diia Business Portal for small and medium businesses.
      • Digital sharing and authentication: Diia signature and Diia QR.
      • Public service access: Diia Education Portal for digital education and digital skills development, healthcare.

    18.5M People downloaded the Diia app.

    14 Digital IDs provided by other ID providers are available through Diia.

    70 Government services are available through Diia.

    ~1M Private Entrepreneurs used Diia to register their companies.

    1300 Tons of paper estimated to be saved by reducing paper applications for new IDs and replacements.

    Source:

    • Ukraine Govt. Website for Invest and trade
    • Diia Case study prepared for the office of Canadian senator colin deacon.

    Uniqueness

    “One of the reasons for the Diia App's popularity is its focus on user experience. In September 2022, the Diia App simplified 25 public services and digitized 16 documents. The Ministry of Digital Transformation aims to make 100% of all public services available online by 2024.”

    - Vladyslava Aleksenko

    Project Lead—digital Identity, Ukraine

    The image contains a screenshot of the timeline for Diia.

    Canada’s PCTF (Pan Canadian Trust Framework) driving the federated digital identity ecosystem

    • Regulatory Accountability: Treasury Board of Canada Secretariat (TBS); Canadian Digital Service (CDS); Office of CIO
    • Standard Setting: Digital Identification and Authentication Council of Canada (DIACC)
    • Frameworks:
      • Treasury Board Directive on Identity Management
      • Pan Canadian Trust Framework (PCTF)
      • Voilà Verified Trustmark Program: ISO aligned compliance certification program on PCTF
      • Governing / Certificate Authority: Trustmark Oversight Board (TOB) and DIACC accredited assessor
      • Operational Governance: Federated between identity providers and identity consumers
      • Identity Providers: Public and Private Sector
      • Other entities involved: Digital ID Lab (Voila Verified Auditor); Kuma (Accredited Assessor)
    The image contains a screenshot of PCTF Components.

    82% People supportive of Digital ID.

    2/3 Canadians prefer public-private partnership for Pan-Canadian digital ID framework.

    >40% Canadians prefer completing various tasks and transactions digitally.

    75% Canadians are willing to share personal information for better experience.

    >80% Trust government, healthcare providers, and financial institutions with their personal information.

    Source: DIACC Survey 2021

    Uniqueness

    Although a few provinces in Canada started their Digital ID journey already, federally, Canada lacked an approach.

    Now Canada is developing a federated Digital ID ecosystem driven through the Pan-Canadian Trust Framework (PCTF) led by a non-profit (DIACC) formed with public and private partnership.

    The image contains a screenshot of Canada's PCTF timeline from 2002-2025.

    Australia’s digital id is pivotal to its vision to become one of the Top-3 digital governments globally by 2025*

    * Australia Digital Government Strategy 2021
    • Regulatory responsibility and standard: Digital Transformation Agency (DTA)’s Digital Identity
    • Operational support and oversight: Service Australia, Interim Oversight Authority (IOA).
    • Accredited identity providers (by 2022): Australian Taxation Office (ATO)’s myGovID, Australia Post’s Digital ID, MasterCard’s ID, OCR Labs App
    • Framework: Trusted Digital Identity Framework (TDIF)
      • Digital Identity Exchange
      • Identity Service Providers and Attribute Verification Service
      • Attribute Service Providers
      • Credential Service Providers
      • Relying Parties
    • Others: States such as NSW, Victoria, and Queensland have their own digital identity programs

    8.6M People using myGovID by Jun-2022

    117 Services accessible through Digital Id System

    The image contains a screenshot diagram of Digital Identity.

    Uniqueness

    Australia started its journey of Digital ID with a centralized Digital ID ecosystem.

    However, now it preparing to transition to a centrally governed Trust framework-based ecosystem expanding to private sector.

    The image contains a screenshot of Australia's Digital id timeline from 2014-2022.

    UK switches gear to the Trust Framework approach to build a public-private digital ID ecosystem

    • Government: Ministry of Digital Infrastructure / Department of Digital, Culture, Media, and Sport
    • Governing Body / Certificate Authority / Operational Governance: TBD
    • Approach: Trust Framework-based UK Digital Identity and attributes trust framework (UKDIATF)
    • Identity providers: Transitioning from “GOV.UK Verify” to a federated digital identity system aligned with “Trust Framework” – enabling both government (“One Login for Government”) and private sector identity providers.
    The image contains a screenshot of the Trust Framework.

    Uniqueness

    UK embarked its Digital ID journey through Gov.UK Verify but decided to scrap it recently.

    It is now preparing to build a trust framework-based federated digital ID ecosystem with roles like schema-owners and orchestration service providers for private sector and drive the collaboration between industry players.

    The image contains a screenshot of UK timeline from 2011-2023.

    Digital ID will transform all industries, though financial services and e-governance will gain most

    Cross Industry

    Financial Services

    Insurance

    E-governance

    Healthcare & Lifesciences

    Travel and Tourism

    E-Commerce

    • Onboarding (customer, employee, patient, etc.)
    • Fraud-prevention (identity theft)
    • Availing restricted services (buying liquor)
    • Secure-sharing of credentials and qualifications (education, experience, gig worker)
    • For businesses, customer 360
    • For businesses, reliable data-driven decision making with lower frequency of ‘astroturfing’ (false identities) and ‘ballot-stuffing’ (duplicate identities)
    • Account opening
    • Asset transfer
    • Payments
    • For businesses, risk management - know your customer (KYC), anti-money laundering (AML), customer due diligence (CDD)
    • Insurance history
    • Insurance claim
    • Public distribution schemes (PDS)
    • Subsidy payments (direct to consumer)
    • Obtain government benefits (maternity, pension, employment guarantee / insurance payments)
    • Tax filing
    • Issuing credentials (birth certificate, passport)
    • Voting
    • For businesses, availing governments supports
    • For SMB businesses, easier regulatory compliance
    • Digital health
    • Out of state public healthcare
    • Secure access to health and diagnostic records
    • For businesses, data sharing between providers and with payers
    • Travel booking
    • Cross-border travel
    • Car rental
    • Secure peer-to-peer sales
    • Secure peer-to-peer sales

    USE CASE

    Car rental

    INDUSTRY: Travel & Tourism

    Source: Info-Tech Research Group

    Challenge

    Solution

    Results

    Verifying the driver’s license (DL) is the first step a car rental company takes before handing over the keys.

    While the rental company only need to know the validity of the DL and if it belongs to the presenter, is bears the liability of much more data presented to them through the DL.

    For customers, it is impossible to rent a car if they forget their DL. If the customer has their driver’s license, they compromise their privacy and security as they hand over their license to the representative.

    The process is not only time consuming, it also creates unnecessary risks to both the business and the renter.

    A digital id-based rental process allows the renter to present the digital id online or in person.

    As the customer approaches the car rental they present their digital id on the mobile app, which has already authenticated the presenter though the biometrics or other credentials.

    The customer selects the purpose of the business as “Car Rental”, and only the customer’s name, photo, and validity of the DL appear on the screen for the representative to see (selective disclosures).

    If the car pick-up is online, only this information is shared with the car rental company, which in turn shares the car and key location with the renter.

    A digital identity-based identity verification can ensure a rental company has access to the minimum data it needs to comply with local laws, which in turn reduces its data leak risk.

    It also reduces customer risks linked to forgetting the DL, and data privacy.

    Digital identity also reduces the risk originated from identity fraud leading to stolen cars.

    USE CASE

    e-Governance public distribution service

    INDUSTRY: Government

    Source: Info-Tech Research Group

    Challenge

    Solution

    Results

    In both emerging and developed economies, public distribution of resources – food, subsidies, or cash – is a critical process through which many people (especially from marginalized sections) survive on.

    They often either don’t have required valid proof of identity or fall prey to low-level corruption when someone defrauds them by claiming the benefit.

    As a result, they either completely miss out on claiming government-provided social benefits OR only receive a part of what they are eligible for.

    A Digital ID based public distribution can help created a Direct Benefit Transfer ecosystem.

    Here beneficiaries register (manually OR automatically from other government records) for the benefits they are eligible for.

    On the specific schedule, they receive their benefit – monetary benefit in their bank accounts, and non-cash benefits, in person from authorized points-of-sales (POS), without any middleman with discretionary decision powers on the distribution.

    India launched its Financial Inclusion Program (Prime Minister's Public Finance Scheme) in 2014.

    The program was linked with India’s Digital Id Aadhaar to smoothen the otherwise bureaucratic and discretionary process for opening a bank account.

    In last eight years, ~481M (Source: PMJDY) beneficiaries have opened a bank account and deposited ~ ₹1.9Trillion (USD$24B), a part of which came as social benefits directly deposited to these accounts from the government of India.

    USE CASE

    Real-estate investment and sale

    INDUSTRY: Asset Management

    Source: Info-Tech Research Group

    Challenge

    Solution

    Results

    “Impersonators posing as homeowners linked to 32 property fraud cases in Ontario and B.C.” – Global News Canada1

    “The level of fraud in the UK is such that it is now a national security threat” – UK Finance Lobby Group2

    Real estate is the most expensive investment people make in their lives. However, lately it has become a soft target for title fraud. Fraudsters steal the title to one’s home and sell it or apply for a new mortgage against it.

    At the root cause of these fraud are usually identity theft when a fraudster steals someone’s identity and impersonates them as the title owner.

    Digital identity tagged to the home ownership / title record can reduce the identity fraud in title transfer.

    When a person wants to sell their house OR apply for a new mortgage on house, multiple notifications will be triggered to their contact attributes on digital ID – phone, email, postal address, and digital ID Wallet, if applicable.

    The homeowner will be mandated to authorize the transaction on at least two channels they had set as preferred, to ensure that the transaction has the consent of the registered homeowner.

    This process will stop any fraud transactions until at least two modes are compromised.

    Even if two modes are compromised, the real homeowner will receive the notification on offline communication modes, and they can then alert the institution or lawyer to block the transaction.

    It will especially help elderly people, who are more prone to fall prey to identity frauds when somebody uses their IDs to impersonate them.

    1 Global News (https://globalnews.ca/news/9437913/homeowner-impersonators-lined-32-fraud-cases-ontario-bc/)

    2 UK Finance Lobby Group (https://www.ukfinance.org.uk/system/files/Half-year-fraud-update-2021-FINAL.pdf)

    Adopting digital ID benefits everybody – governments, id providers, id consumers, and end users

    Governments & identity providers

    (public & private)

    Customers and end users

    (subjects)

    Identity consumer

    (relying parties)

    • Growth in GDP
    • Save costs of providing identity
    • Unlock new revenue source by economic expansion
    • Choice and convenience
    • Control of what data is shared
    • Experience driven by simplicity and data minimalization
    • Reduced cost of availing services
    • Operational efficiency
    • Overall cost efficiency of delivering service and products
    • Reduce risk of potential litigation
    • Reduce risk of fraud
    • Enhanced customer experience leading to increased lifetime value
    • Streamlined storage and access
    • Encourage innovation

    Digital ID will transform all industries, though financial services and e-governance will gain most

    Governments and identity providers (public and private)

    • Growth in GDP by reducing bureaucracy and discretion from the governance processes.
      • As per a McKinsey report, digital ID could unlock the economic value equivalent of 3%-13% of GDP across seven focus countries (Brazil, Ethiopia, India, Nigeria, China, UK, USA) in 2030.
      • “Estonia saves two percent of GDP by signing things digitally; imagine if it could go global.” - aavi Rõivas, Prime Minister of the Republic of Estonia (International Peace Institute)
    • Unlock new revenue source by economic expansion.
      • Estonia earned €32 million in tax revenue from e-resident companies (e-Estonia).
    • Save costs of providing identity in collaboration with 3rd parties and reduce fraud.
      • Canada estimates savings of $482 million for provincial and federal governments, and $4.5 billion for private sector organizations through digital id adoption (2022 Budget Statement).

    Digital ID brings end users choice, convenience, control, and cost-saving, driving overall experience

    Customers and end users (subjects)

    • Choice: Citizens have the choice and convenience to interact safely and conveniently online and offline.
    • Convenience: No compulsion to make physical trips to access service, as end users can identify themselves safely and reliably online, as they do offline.
    • Control: A decentralized, privacy enhancing solution – neither government nor private companies control your digital ID. How and when you use digital ID is entirely up to you.
    • Cost Saving: Save costs of availing service by reducing the offline documentation.
    • Experience: Improved experience while availing service without a need to present multiple documents every time.

    Digital id benefits identity consumers by enhancing multiple dimensions of their value streams

    Identity consumer (relying parties)

    • Operational efficiency: Eliminating unnecessary steps and irrelevant data from the value stream increases overall operational efficiency.
    • Cost efficiency: Helps businesses to reduce overall cost of operations like regulatory requirements.
      • World Bank estimated that the Aadhaar could reduce onboarding costs for Indian firms from ₹1,500/- ($23) to as low as an estimated ₹10/- ($0.15) (*World Bank ID4D)
    • Reduce risk of potential litigation issues: Encourage data minimization.
    • Privacy and security: Businesses can reduce the risk of fraud to organizations and users and can significantly boost the privacy and security of their IT assets.
    • Enhanced customer experience: The decrease in the number of touchpoints and faster turnaround.
    • Streamlined storage and access: Store all available data in a single place, and when required.
    • Encourage innovation: Reduce efforts required in authentication and authorization of users.

    Before embarking on the digital identity adoption journey, assess your readiness

    Legislative coverage

    Does your target jurisdiction have adequate legislative framework to enable uses of digital identities in your industry?

    Trust framework

    If the Digital ID ecosystem in your target jurisdiction is trust framework-based, do you have adequate understanding of it?

    Customer touch-points

    Do you have exact understanding of value stream and customer touch-points where you interact with user identity?

    Relevant identity attributes

    Do you have exact understanding of the identity attributes that your business processes need to deliver customer value?

    Regulatory compliance

    Do you have required systems to ensure your compliance with industry regulations around customer PII and identity?

    Interoperability with IMS

    Is your existing identity management system interoperable with Open-source Digital Identity ecosystem?

    Enterprise governance

    Have you established an integrated enterprise governance framework covering business processes, technical systems, and risk management?

    Communication strategy

    Do have a clear strategy (mode, method, means) to communicate with your target customer and persuade them to adopt digital identity?

    Security operations center

    Do you have security operations center coordinating detection, response, resolution, and communication of potential data breaches?

    Ten steps to adopt to enhance the customer experience

    Considering the complexity of digital identity adoption, and its impact on customer experience, it is vital to assess the ecosystem and adopt an MVP approach before a big-bang launch.

    Diagram to help assess the ecosystem.

    1. Define the use case and identify the customer touchpoint in the value stream which can be improved with a verified digital identity.
    2. Ensure your organization is ready to adopt digital identity (Refer to Digital identity adoption readiness),
    3. Identify an Identity Service Provider (Government, private sector), if there are options.
    4. Understand its technical requirements and assess, to the finer detail, your technical landscape for interoperability.
    5. Set-up a business contract for terms of usages and liabilities.
    6. Create and execute a Minimum Viable Program (MVP) of integration which can be tested with real customers.
    7. Extend MVP to the complete solution and define key success metrics.
    8. Canary-launch with a segment of target customers before a full launch.
    9. Educate customers on the usages and benefits, and adapt your communication plan taking feedback
    10. Monitor and continuously improve the solution based on the feedback from ecosystem partners and end-customers, and regulatory changes.

    Understand and manage the risks and challenges of digital identity adoption

    Digital ID adoption is a major change for everyone in the ecosystem.

    Manage associated risks to avoid the derailing of integration with your business processes and a negative impact on customer experience.

    Manage Risks.

    1. Privacy and security risks – Customer’s sensitive data may get centralized with the identity provider.
    2. Single point of failure while relying a specific IDs; it also increases the impact of identity theft and fraud risk.
    3. Centralization and control risks – Identity provider or identity service broker / orchestrator may control who can participate.
    4. Not universal, interoperability risks – if purpose-specific.
    5. Impact omni-channel experience - Not always available (legal / printable) for offline use.
    6. Exclusion and discrimination risks – Specific data requirements may exclude a group of people.
    7. Scope for misuse and misinterpretation if compromised and not reclaimed in timely manner.
    8. Adoption and usability risks – Subjects / relying parties may not see benefit due to lack of awareness or suspicion.
    9. Liability Agreement gaps between identity provider and identity consumer (relying party).

    Recommendations to help you realize the potential of digital identity into your value streams

    1

    Customer-centricity

    Digital identity initiative should prioritize customer experience when evaluating its fit in the value stream. Adopting it should not sacrifice end-user experience to gain a few brownie points.

    See Info-Tech’s Adopt Design Thinking in Your Organization blueprint, to ensure customer remains at the center of your Digital Adoption initiative.

    2

    Privacy and security

    Adopting digital identity reduces data risk by minimizing data transfer between providers and consumers. However, securing identity attributes in value streams still requires strengthening enterprise security systems and processes.

    See Info-Tech’s Assess and Govern Identity Security blueprint for the actions you may take to secure and govern digital identity.

    3

    Inclusion and awareness

    Adopting digital identity may alter customer interaction with an organization. To avoid excluding target customer segments, design digital identity accordingly. Educating and informing customers about the changes can facilitate faster adoption.

    See Info-Tech’s Social Media blueprint and IT Diversity & Inclusion Tactics to make inclusion and awareness part of digital adoption

    4

    Quantitative success metrics

    To measure the success of a digital ID adoption program, it's essential to use quantitative metrics that align with business KPIs. Some measurable KPIs may include:

    • Reduction in number of IDs business used to serve 90% of customers
    • Reduction in overall cost of operation
      • Reduction in cost of user authentication
    • Reduction in process cycle time (less time required to complete a task – e.g. KYC)

    Taxonomy – Digital ID ecosystem

    (Alphabetical order)

    Continues..

    Attributes: An identity attribute is a statement or information about a specific aspect of entity’s identity ,substantiating they are who they claim to be, own, or have.

    Attribute (or Credential) provider: An attribute or credential provider could be an organization which issues the primary attribute or credential to a subject or entity. They are also responsible for identity-attribute binding, credential maintenance, suspension, recovery, and authentication.

    Attribute (or Credential) service provider: An attribute service provider could be an organization which originally vetted user’s credentials and certified a specific attribute of their identity. It could also be a software, such as digital wallet, which can store and share a user’s attribute with a third party once consented by the user. (Source: UK Govt. Trust Framework)

    Attribute binding: This is a process an attribute service providers uses to link the attributes they created to a person or an organization through an identifier. This process makes attributes useful and valuable for other entities using these attributes. For example, when a new employee joins a company, they are given a unique employee number (an identifier), which links the person with their job title and other aspects (attributes) of his job. (Source: UK Govt. Trust Framework)

    Authentication service provider: An organization which is responsible for creating and managing authenticators and their lifecycle (issuance, suspension, recovery, maintenance, revocation, and destruction of authenticators). (Source: DIACC)

    Authenticator: Information or biometric characteristics under the control of an individual that is a specific instance of something the subject has, knows, or does. E.g. private signing keys, user passwords, or biometrics like face, fingerprints. (Source: Canada PCTF)

    Authentication (identity verification): The process of confirming or denying that the identity presented relates to the subject who is making the claim by comparing the credentials presented with the ones presented during identity proofing.

    Authorization: The process of validating if the authenticated entity has permission to access a resource (service or product).

    Biometrics attributes: Human attributes like retina (iris), fingerprint, heartbeat, facial, handprint, thumbprint, voice print.

    Centralized identity: Digital identities which are fully governed by a centralized government entity. It may have enrollment or registration agencies, private or public sector, to issue the identities, and the technical system may still be decentralized to keep data federated.

    Certificate Authority (CA or accredited assessors): An organization or an entity that conducts assessments to validate the framework compliance of identity or attribute providers (such as websites, email addresses, companies, or individual persons) serving other users, and binding them to cryptographic keys through the issuance of electronic documents known as digital certificates.

    Taxonomy – Digital ID ecosystem

    (Alphabetical order)

    Continues..

    Collective (non-resolvable) attributes: Nationality, domicile, citizenship, immigration status, age group, disability, income group, membership, (outstanding) credit limit, credit score range.

    Contextual identity: A type of identity which establishes an entity’s existence in a specific context – real or virtual. These can be issued by public or private identity providers and are governed by the organizational policies. E.g. employee ID, membership ID, social media ID, machine ID.

    Credentials: A physical or a digital representation of something that establishes an entity’s eligibility to do something for which it is seeking permission, or an association/affiliation with another, generally well-known entity. E.g. Passport, DL, password. In the context of Digital Identity, every identity needs to be attached with a credential to ensure that the subject of the identity can control how and by whom that identity can be used.

    Cryptographic hash function: A hash function is a one-directional mathematical operation performed on a message of any length to get a unique, deterministic, and fixed size numerical string (the hash) which can’t be reverse engineered to get the input data without deploying disproportionate resources. It is the foundation of modern security solutions in DLT / blockchain as they help in verifying the integrity and authenticity of the message.

    Decentralized identity (DID) or self-sovereign identity: This is a way to give back the control of identity to the subject whose identity it is, using an identity wallet in which they collect verified information about themselves from certified issuers (such as the government). By controlling what information is shared from the wallet to requesting third parties (e.g. when registering for a new online service), the user can better manage their privacy, such as only presenting proof that they’re over 18 without needing to reveal their date of birth. Source: (https://www.gsma.com/identity/decentralised-identity)

    Digital identity wallet: A type of digital wallet refers to a secure, trusted software applications (native mobile app, mobile web apps, or Rivas-hosted web applications) based on common standards, allowing a user to store and use their identity attributes, identifiers, and other credentials without loosing or sharing control of them. This is different than Digital Payment Wallets used for financial transactions. (Source: https://www.worldbank.org/content/dam/photos/1440x300/2022/feb/eID_WB_presentation_BS.pdf)

    Digital identity: A digital identity is primarily an electronic form of identity representing an entity uniquely , while abstracting all other identity attributes of the entity. In addition to an electronic form, it may also exist in a physical form (identity certificate), linked through an identifier representing the same entity. E.g. Estonia eID , India Aadhar, digital citizenship ID.

    Digital object architecture: DOA is an open architecture for interoperability among various information systems, including ID wallets, identity providers, and consumers. It focuses on digital objects and comprises three core components: the identifier/resolution system, the repository system, and the registry system. There are also two protocols that connect these components. (Source: dona.net)

    Digital signature: A digital signature is an electronic, encrypted stamp of authentication on digital information such as email messages, macros, or electronic documents. A signature confirms that the information originated from the signer and has not been altered. (Source: Microsoft)

    Taxonomy – Digital ID ecosystem

    (Alphabetical order)

    Continues..

    Entity (or Subject): In the context of identity, an entity is a person, group, object, or a machine whose claims need to be ascertained and identity needs to be established before his request for a service or products can be fulfilled. An entity can also be referred to as a subject whose identity needs to be ascertained before delivering a service.

    Expiry: This is another dimension of an identity and determines the validity of an ID. Most of the identities are longer term, but there can be a few like digital tokens and URLs which can be issued for a few hours or even minutes. There are some which can be revoked after a pre-condition is met.

    Federated identity: Federated identity is an agreement between two organizations about the definition and use of identity attributes and identifiers of a consumer entity requesting a service. If successful, it allows a consumer entity to get authenticated by one organization (identity provider) and then authorized by another organization. E.g. accessing a third-party website using Google credentials.

    Foundational identity: A type of identity which establishes an entity’s existence in the real world. These are generally issued by public sector / government agencies, governed by a legal farmwork within a jurisdiction, and are widely accepted at least in that jurisdiction. E.g. birth certificate, citizenship certificate.

    Governance: This is a dimension of identity that covers the governance model for a digital ID ecosystem. While traditionally it has been under the sovereign government or a federated structure, in recent times, it has been decentralized through DLT technologies or trust-framework based. It can also be self-sovereign, where individuals fully control their data and ID attributes.

    Identifier: A digital identifier is a string of characters that uniquely represents an entity’s identity in a specific context and scope even if one or more identity attributes of the subject change over time. E.g. driver’s license, SSN, SIN, email ID, digital token, user ID, device ID, cookie ID.

    Identity: An identity is an instrument used by an entity to provide the required information about itself to another entity in order to avail a service, access a resource, or exercise a privilege. An identity formed by 1-n identity attributes and a unique identifier.

    Identity and access management (IAM): IAM is a set of frameworks, technologies, and processes to enable the creation, maintenance, and use of digital identity, ensuring that the right people gain access to the right materials and records at the right time. (Source: https://iam.harvard.edu/)

    Identity consumer (Relying party): An organization, or an entity relying on identity provider to mitigate IT risks around knowing its customers before delivering the end-user value (product/service) without deteriorating end-user experience. E.g. Canada Revenue Agency using SecureKey service and relying on Banking institutions to authenticate users; Telecom service providers in India relying on Aadhaar identity system to authenticate the customer's identity.

    Identity form: A dimension of identity that defines its forms depending on the scope it wants to serve. It can be a physical card for offline uses, a virtual identifier like a number, or an app/account with multiple identity attributes. Cryptographic keys and tokens can also be forms of identity.

    Taxonomy – Digital ID ecosystem

    (Alphabetical order)

    Continues...

    Identity infrastructure provider: Organizations involved in creating and maintaining technological infrastructure required to manage the lifecycle of digital identities, attributes, and credentials. They implement functions like security, privacy, resiliency, and user experience as specified in the digital identity policy and trust framework.

    Identity proofing: A process of asserting the identification of a subject at a useful identity assurance level when the subject provides evidence to a credential service provider (CSP), reliably identifying themselves. (Source: NIST Special Publication 800-63A)

    Identity provider (Attestation authority): An organization or an entity validating the foundation or contextual claims of a subject and establishing identifier(s) for a subject. E.g. DMV (US) and MTA (Canada) issuing drivers’ licenses; Google / Facebook issuing authentication tokens for their users logging in on other websites.

    Identity validation: The process of confirming or denying the accuracy of identity information of a subject as established by an authorized party. It doesn’t ensure that the presenter is using their own identity.

    Identity verification (Authentication): The process of confirming or denying that the identity presented relates to the subject who is making the claim by comparing the credentials presented with the ones presented during identity proofing.

    Internationalized resource identifier (IRI): IRIs are equivalent to URIs except that IRIs also allow non-ascii characters in the address space, while URIs only allow us-ascii encoding. (Source: w3.org)

    Jurisdiction: A dimension of identity that covers the physical area or virtual space where an identity is legally acceptable for the purpose defined under law. It can be global, like it is for passport, or it can be local within a municipality for specific services. For unverified digital IDs, it can be the social network.

    Multi-factor Authentication (MFA): Multi-factor authentication is a layered approach to securing digital assets (data and applications), where a system requires a user to present a combination of two or more credentials to verify a user’s identity for login. These factors can be a combination of (i) something you know like a password/PIN; (ii) something you have like a token on mobile device; and (iii) something you are like a biometric. (Adapted from https://www.cisa.gov/publication/multi-factor-authentication-mfa)

    Oauth (Open authorization): OAuth is a standard authorization protocol and used for access delegation. It allows internet users to access websites by using credentials managed by a third-party authorization server / Identity Provider. It is designed for HTTP and allows access tokens to be issued by an authorization server to third-party websites. E.g. Google, Facebook, Twitter, LinkedIn use Oauth to delegate access.

    OpenID: OpenID is a Web Authentication Protocol and implements reliance authentication mechanism. It facilitates the functioning of federated identity by allowing a user to use an existing account (e.g. Google, Facebook, Yahoo) to sign into third-party websites without needing to create new credentials. (Source: https://openid.net/).

    Taxonomy – Digital ID ecosystem

    (Alphabetical order)

    Continues...

    Personally identifiable information (PII): PII is a set of attributes which can be used, through direct or indirect means, to infer the real-world identity of the individual whose information is input. E.g. National ID (SSN/SIN/Aadhar) DL, name, date of birth, age, address, age, identifier, university credentials, health condition, email, domain name, website URI (web resolvable) , phone number, credit card number, username/password, public key / private key. (Source: https://www.dol.gov)

    Predicates: The mathematical or logical operations such as equality or greater than on attributes (e.g. prove your salary is greater than x or your age is greater than y) to prove a claim without sharing the actual values.

    Purpose: This dimension of a digital id defines for what purpose digital id can be used. It can be one or many of these – authentication, authorization, activity linking, historical record keeping, social interactions, and machine connectivity for IoT use cases.

    Reliance authentication: Relying on a third-party authentication before providing a service. It is a method followed in a federated entity system.

    Risk-based authentication: A mechanism to protect against account compromise or identity theft. It correlates an authentication request with transitional facts like requester’s location, past frequency of login, etc. to reduce the risk of potential fraud.

    Scheme in trust framework: A specific set of rules (standard and custom) around the use of digital identities and attributes as agreed by one or more organizations. It is useful when those organizations have similar products, services, business processes. (Source: UK Govt. Trust Framework). E.g. Many credit unions agree on how they will use the identity in loan origination and servicing.

    Selective disclosure (Assertion): A way to present one’s identity by sharing only a limited amount information that is critical to make an authentication / authorization decision. E.g. when presenting your credentials, you could share something proving you are 18 years or above, but not share your name, exact age, address, etc.

    Trust: A dimension of an identity, which essentially is a belief in the reliability, truth, ability, or strength of that identity. While in the physical world all acceptable form of identities come with a verified trust, in online domain, it can be unverified. Also, where an identity is only acceptable as per the contract between two entities, but not widely.

    Trust framework: The trust framework is a set of rules that different organizations agree to follow to deliver one or more of their services. This includes legislation, standards, guidance, and the rules in this document. By following these rules, all services and organizations using the trust framework can describe digital identities and attributes they’ve created in a consistent way. This should make it easier for organizations and users to complete interactions and transactions or share information with other trust framework participants. (Source: UK Govt. Trust Framework)

    Taxonomy – Digital ID ecosystem

    (Alphabetical order)

    Continues...

    Uniform resource identifier (URI): A universal name in registered name spaces and addresses referring to registered protocols or name spaces.

    Uniform resource locator (URL): A type of URI which expresses an address which maps onto an access algorithm using network protocols. (Source: https://www.w3.org/)

    Uniform resource name (URN): A type of URI that includes a name within a given namespace but may not be accessible on the internet.

    Usability: A dimension of identity that defines how many times it can be used. While most of the identities are multi-use, a few digital identities are in token form and can be used only once to authenticate oneself.

    Usage mode: A dimension of identity that defines the service mode in which a digital ID can be used. While all digital IDs are made for online usage, many can also be used in offline interactions.

    Verifiable credentials: This W3C standard specification provides a standard way to express credentials on the Web in a way that is cryptographically secure, privacy-respecting, and machine-verifiable. (Source: https://www.w3.org/TR/vc-data-model/)

    X.509 Certificates: X.509 certificates are standard digital documents that represent an entity providing a service to another entity. They're issued by a certification authority (CA), subordinate CA, or registration authority. These certificates play an important role in ascertaining the validity of an identity provider and in turn the identities issued by it. (Source: https://learn.microsoft.com/en-us/azure/iot-hub/reference-x509-certificates)

    Zero-knowledge proofs: A method by which one party (the prover) can prove to another party (the verifier) that something is true, without revealing any information apart from the fact that this specific statement is true. (Source: 1989 SIAM Paper)

    Zero-trust security: A cybersecurity paradigm focused on resource protection and the premise that trust is never granted implicitly but must be continually evaluated. It evaluates each access request as if it is a fraud attempt, and grants access only if it passes the authentication and authorization test. (Source: Adapted from NIST, SP 800-207: Zero Trust Architecture, 2020)

    Related Info-Tech Research

    Build a Zero Trust Roadmap
    Leverage an iterative and repeatable process to apply zero trust to your organization.

    Assess and Govern Identity Security
    Strong identity security and governance are the keys to the zero-trust future.

    Adopt Design Thinking in Your Organization
    Innovation needs design thinking to ensure customer remains at the center of everything the organization does.

    Social Media
    Leveraging Social Media to connect with your customers and educate them to drive the value proposition of your efforts.

    IT Diversity & Inclusion Tactics
    Equip your teams to create an inclusive environment and mobilize inclusion efforts across the organization.


    Research Contributors and Experts

    David Wallace

    David Wallace
    Executive Counselor

    Erik Avakian

    Erik Avakian
    Technical Counselor, Data Architecture and Governance

    Matthew Bourne

    Matthew Bourne
    Managing Partner, Public Sector Global Services

    Mike Tweedie

    Mike Tweedie
    Practice Lead, CIO Research Development

    Aaron Shum

    Aaron Shum
    Vice President, Security & Privacy

    Works Cited

    India Aadhaar PMJDY (https://pmjdy.gov.in/account)
    Theis, S., Rusconi, G., Panggabean, E., Kelly, S. (2020). Delivering on the Potential of Digitized G2P: Driving Women’s Financial Inclusion and Empowerment through Indonesia’s Program Keluarga Harapan. Women’s World Banking.
    DIACC Canada (https://diacc.ca/the-diacc/)
    UK digital identity & attributes trust framework alpha v2 (0.2) - GOV.UK (https://www.gov.uk/government/publications/uk-digital-identity-attributes-trust-framework-updated-version/uk-digital-identity-and-attributes-trust-framework-alpha-version-2)
    Australia Trusted Digital Identity Framework (https://www.digitalidentity.gov.au/tdif#changes)
    eIDAS (https://digital-strategy.ec.europa.eu/en/policies/eidas-regulation)
    Europe Digital Wallet – POTENTIAL (https://www.digital-identity-wallet.eu/)
    Canada PCTF (https://diacc.ca/trust-framework/)
    Identification Revolution: Can Digital ID be harnessed for Development? (Gelb & Metz), 2018
    e-Estonia website (https://e-estonia.com/solutions/e-identity/id-card/)
    Aadhaar Dashboard (https://uidai.gov.in/)
    DIACC Website (https://diacc.ca/the-diacc/)
    Australia Digital ID website (https://www.digitalidentity.gov.au/tdif#changes)
    UK Policy paper - digital identity & attributes trust framework (https://www.gov.uk/government/publications/uk-digital-identity-attributes-trust-framework-updated-version/uk-digital-identity-and-attributes-trust-framework-alpha-version-2)
    Ukraine Govt. website (https://ukraine.ua/invest-trade/digitalization/)
    Singapore SingPass Website (https://www.tech.gov.sg/products-and-services/singpass/)
    Norway BankID Website (https://www.bankid.no/en/private/about-us/)
    Brazil National ID Card website (https://www.gov.br/casacivil/pt-br/assuntos/noticias/2022/julho/nova-carteira-de-identidade-nacional-modelo-unico-a-partir-de-agosto)
    Indonesia Coverage in Professional Security Magazine (https://www.professionalsecurity.co.uk/products/id-cards/indonesian-cards/)
    Philippine ID System (PhilSys) website (https://www.philsys.gov.ph/)
    China coverage on eGovReview (https://www.egovreview.com/article/news/559/china-announces-plans-national-digital-ids)
    Thales Group Website - DHS’s Automated Biometric Identification System IDENT (https://www.thalesgroup.com/en/markets/digital-identity-and-security/government/customer-cases/ident-automated-biometric-identification-system)
    FranceConnect (https://franceconnect.gouv.fr/)
    Germany: Office for authorization cert. (https://www.personalausweisportal.de/Webs/PA/DE/startseite/startseite-node.html)
    Italian Digital Services Authority (https://www.spid.gov.it/en/)
    Monacco Mconnect (https://mconnect.gouv.mc/en)
    Estonia eID (https://e-estonia.com/wp-content/uploads/e-estonia-211022_eng.pdf)
    E-Residency Dashboard (https://www.e-resident.gov.ee/dashboard)
    Unique ID authority of India (https://uidai.gov.in/aadhaar_dashboard/india.php)
    State of Aadhaar (https://www.stateofaadhaar.in/)
    World Bank (https://documents1.worldbank.org/curated/en/219201522848336907/pdf/Private-Sector-Economic-Impacts-from-Identification-Systems.pdf)
    WorldBank - ID4D 2022 Annual Report (https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099437402012317995/idu00fd54093061a70475b0a3b50dd7e6cdfe147)
    Ukraine Govt. Website for Invest and trade (https://ukraine.ua/invest-trade/digitalization/)
    Diia Case study prepared for the office of Canadian senator colin deacon (https://static1.squarespace.com/static/63851cbda1515c69b8a9a2b9/t/6398f63a9d78ae73d2fd5725/1670968891441/2022-case-study-report-diia-mobile-application.pdf)
    Canadian Digital Identity Research (https://diacc.ca/wp-content/uploads/2022/04/DIACC-2021-Research-Report-ENG.pdf)
    Voilà Verified Trustmark (https://diacc.ca/voila-verified/)
    Digital Identity, 06A Federation Onboarding Guidance paper, March 2022 (https://www.digitalidentity.gov.au/sites/default/files/2022-04/TDIF%2006A%20Federation%20Onboarding%20Guidance%20-%20Release%204.6%20%28Doc%20Version%201.2%29.pdf)
    UK digital identity & attributes trust framework alpha v2 (0.2) - GOV.UK (https://www.gov.uk/government/publications/uk-digital-identity-attributes-trust-framework-updated-version/uk-digital-identity-and-attributes-trust-framework-alpha-version-2)
    A United Nations Estimate of KYC/AML (https://www.imf.org/Publications/fandd/issues/2018/12/imf-anti-money-laundering-and-economic-stability-straight)
    India Aadhaar PMJDY (https://pmjdy.gov.in/account)
    Global News (https://globalnews.ca/news/9437913/homeowner-impersonators-lined-32-fraud-cases-ontario-bc/)
    UK Finance Lobby Group (https://www.ukfinance.org.uk/system/files/Half-year-fraud-update-2021-FINAL.pdf) McKinsey Digital ID report ( https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/digital-identification-a-key-to-inclusive-growth) International Peace Institute ( https://www.ipinst.org/2016/05/information-technology-and-governance-estonia#7)
    E-Estonia Report (https://e-estonia.com/wp-content/uploads/e-estonia-211022_eng.pdf)
    2022 Budget Statement (https://diacc.ca/2022/04/07/2022-budget-statement/)
    World Bank ID4D - Private Sector Economic Impacts from Identification Systems 2018 (https://documents1.worldbank.org/curated/en/219201522848336907/Private-Sector-Economic-Impacts-from-Identification-Systems.pdf)
    DIACC Canada (https://diacc.ca/the-diacc/)
    UK digital identity & attributes trust framework alpha v2 (0.2) - GOV.UK (https://www.gov.uk/government/publications/uk-digital-identity-attributes-trust-framework-updated-version/uk-digital-identity-and-attributes-trust-framework-alpha-version-2)
    https://www.gsma.com/identity/decentralised-identity
    https://www.worldbank.org/content/dam/photos/1440x300/2022/feb/eID_WB_presentation_BS.pdf
    Microsoft Digital signatures and certificates (https://support.microsoft.com/en-us/office/digital-signatures-and-certificates-8186cd15-e7ac-4a16-8597-22bd163e8e96)
    https://www.worldbank.org/content/dam/photos/1440x300/2022/feb/eID_WB_presentation_BS.pdf
    https://www.dona.net/digitalobjectarchitecture
    IAM (https://iam.harvard.edu/)
    NIST Special Publication 800-63A (https://pages.nist.gov/800-63-3/sp800-63a.html)
    https://www.cisa.gov/publication/multi-factor-authentication-mfa
    https://openid.net/
    U.S. DEPARTMENT OF LABOR (https://www.dol.gov/)
    UK govt. trust framework (https://www.gov.uk/government/publications/uk-digital-identity-attributes-trust-framework-updated-version/uk-digital-identity-and-attributes-trust-framework-alpha-version-2)
    https://www.w3.org/
    Verifiable Credentials Data Model v1.1 (https://www.w3.org/TR/vc-data-model/)
    https://learn.microsoft.com/en-us/azure/iot-hub/reference-x509-certificates

    Automate Work Faster and More Easily With Robotic Process Automation

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    • Parent Category Name: Optimization
    • Parent Category Link: /optimization
    • Your organization has many business processes that rely on repetitive, routine manual data collection and processing work, and there is high stakeholder interest in automating them.
    • You’re investigating whether robotic process automation (RPA) is a suitable technological enabler for automating such processes.
    • Being a trending technology, especially with its association with artificial intelligence (AI), there is much marketing fluff, hype, and misunderstanding about RPA.
    • Estimating the potential impact of RPA on business is difficult, as the relevant industry statistics often conflict each other and you aren’t sure how applicable it is to your business.

    Our Advice

    Critical Insight

    • There are no physical robots in RPA. RPA is about software “bots” that interact with applications as if they were human users to perform routine, repetitive work in your place. It’s for any business in any industry, not just for manufacturing.
    • RPA is lightweight IT; it reduces the cost of entry, maintenance, and teardown of automation as well as the technological requirement of resources that maintain it, as it complements existing automation solutions in your toolkit.
    • RPA is rules-based. While AI promises to relax the rigidity of rules, it adds business risks that are poorly understood by both businesses and subject-matter experts. Rules-based “RPA 1.0” is mature and may pose a stronger business case than AI-enabled RPA.
    • RPA’s sweet spot is “swivel chair automation”: processes that require human workers to act as a conduit between several systems, moving between applications, manually keying, re-keying, copying, and pasting information. A bot can take their place.

    Impact and Result

    • Discover RPA and how it differentiates from other automation solutions.
    • Understand the benefits and risks of complementing RPA with AI.
    • Identify existing business processes best suited for automation with RPA.
    • Communicate RPA’s potential business benefits to stakeholders.

    Automate Work Faster and More Easily With Robotic Process Automation Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should use RPA to automate routine, repetitive data collection and processing work, review Info-Tech’s methodology, and understand the ways we can support you.

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

    1. Discover robotic process automation

    Learn about RPA, including how it compares to IT-led automation rooted in business process management practices and the role of AI.

    • Automate Work Faster and More Easily With Robotic Process Automation – Phase 1: Discover Robotic Process Automation
    • Robotic Process Automation Communication Template

    2. Identify processes best suited for robotic process automation

    Identify and prioritize candidate processes for RPA.

    • Automate Work Faster and More Easily With Robotic Process Automation – Phase 2: Identify Processes Best Suited for Robotic Process Automation
    • Process Evaluation Tool for Robotic Process Automation
    • Minimum Viable Business Case Document
    [infographic]

    Prototype With an Innovation Design Sprint

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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • The business has a mandate for IT-led innovation.
    • IT doesn’t have the budget it wants for high-risk, high-reward initiatives.
    • Many innovation projects have failed in the past.
    • Many projects that have moved through the approval process failed to meet their expectations.

    Our Advice

    Critical Insight

    • Don’t let perfect be the enemy of good. Think like a start-up and use experimentation and rapid re-iteration to get your innovative ideas off the ground.

    Impact and Result

    • Build and test a prototype in four days using Info-Tech’s Innovation Design Sprint Methodology.
    • Create an environment for co-creation between IT and the business.
    • Learn techniques for socializing and selling your ideas to business stakeholders.
    • Refine your prototype through rapid iteration and user-experience testing.
    • Socialize design thinking culture, tactics, and methods with the business.

    Prototype With an Innovation Design Sprint Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should evaluate your ideas using a design sprint, 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. Understand and ideate

    Define the problem and start ideating potential solutions.

    • Prototype With an Innovation Design Sprint – Day 1: Understand and Ideate
    • Prototyping Workbook

    2. Divide and conquer

    Split off into prototyping teams to build and test the first-iteration prototypes

    • Prototype With an Innovation Design Sprint – Day 2: Divide and Conquer
    • Research Study Log Tool

    3. Unite and integrate

    Integrate the best ideas from the first iterations and come up with a team solution to the problem.

    • Prototype With an Innovation Design Sprint – Day 3: Unite and Integrate
    • Prototype One Pager

    4. Build and sell

    Build and test the team’s integrated prototype, decide on next steps, and come up with a pitch to sell the solution to business executives.

    • Prototype With an Innovation Design Sprint – Day 4: Build and Sell
    [infographic]

    Workshop: Prototype With an Innovation Design Sprint

    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 Understand and Ideate

    The Purpose

    Align the team around a well-defined business problem and start ideating solutions.

    Key Benefits Achieved

    Ideate solutions in the face of organizational cconstraints and characterize the success of the prototype.

    Activities

    1.1 Frame the problem.

    1.2 Develop evaluation criteria.

    1.3 Diverge and converge.

    Outputs

    Problem statement(s)

    Evaluation criteria

    Ideated solutions

    2 Divide and Conquer

    The Purpose

    Break off into teams to try and develop solutions that address the problem in unique ways.

    Key Benefits Achieved

    Develop and test a first-iteration prototype.

    Activities

    2.1 Design first prototypes in teams.

    2.2 Conduct UX testing.

    Outputs

    First-iteration prototypes

    User feedback and data

    3 Unite and Integrate

    The Purpose

    Bring the team back together to develop a team vision of the final prototype.

    Key Benefits Achieved

    Integrated, second-iteration prototype.

    Activities

    3.1 Create and deliver prototype pitches.

    3.2 Integrate prototypes.

    Outputs

    Prototype practice pitches

    Second-iteration prototype

    4 Build and Sell

    The Purpose

    Build and test the second prototype and prepare to sell it to business executives.

    Key Benefits Achieved

    Second-iteration prototype and a budget pitch.

    Activities

    4.1 Conduct second round of UX testing.

    4.2 Create one pager and budget pitch.

    Outputs

    User feedback and data

    Prototype one pager and budget pitch

    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]

    Choose a Right-Sized Contact Center Solution

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    • Parent Category Name: Strategy and Organizational Design
    • Parent Category Link: /strategy-and-organizational-design
    • IT needs a method to pinpoint which contact center solution best aligns with business objectives, adapting to a post-COVID world of remote work, flexibility, and scalability.
    • Scoring RFP and RFQ proposals is a complex process, and it is difficult to map and gap without a clear view of the organization’s needs. SOWs can contain pitfalls that cause expensive headaches for the organization in the long run. Guidance through a SOW is required to best represent the organization’s interests.

    Our Advice

    Critical Insight

    • “On-premises versus cloud” is a false dichotomy. Contact center architectures come in all shapes and sizes, and organizations should discern whether a hybrid option best meets their needs.
    • Contact centers should service customers – not capabilities. Capabilities must work for you, your agents, and your customers – not the other way around.
    • Deliverables and responsibilities should be a contract’s focal point. While organizations are right to focus on avoiding unanticipated license charges, it is more important to clearly define how deliverables and responsibilities will be divided among the organization, the vendor, and potential third parties.

    Impact and Result

    • Assess the array of contact center architectures with Info-Tech’s Contact Center Decision Points Tool to select a right-sized solution.
    • Build business requirements in a formalized process to achieve stakeholder buy-in.
    • Use Info-Tech’s Contact Center RFP Scoring Tool to evaluate and choose from a range of vendors.
    • Successfully navigate and avoid major pitfalls in a SOW construction.
    • Justify each stage of the process with this blueprint’s key deliverable: the Contact Center Playbook.

    Choose a Right-Sized Contact Center Solution Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to examine the current contact center marketspace, review Info-Tech’s methodology for choosing a right-sized contact center solution, 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 Contact Center Architectures

    Establish your project vision and metrics of success before shortlisting potential contact center architectures and deciding which is right-sized for the organization.

    • Choose a Right-Sized Contact Center Solution – Phase 1: Assess Contact Center Architectures
    • Contact Center Playbook
    • Contact Center Decision Points Tool

    2. Gather Requirements and Shortlist Vendors

    Build business requirements to achieve stakeholder buy-in, define key deliverables, and issue an RFP/RFQ to shortlisted vendors.

    • Choose a Right-Sized Contact Center Solution – Phase 2: Gather Requirements and Shortlist Vendors
    • Requirements Gathering Documentation Tool
    • Lean RFP Template
    • Contact Center Business Requirements Document
    • Request for Quotation Template
    • Long-Form RFP Template

    3. Score Vendors and Construct SOW

    Score RFP/RFQ responses and decide upon a vendor before constructing a SOW.

    • Choose a Right-Sized Contact Center Solution – Phase 3: Score Vendors and Construct SOW
    • Contact Center RFP Scoring Tool
    • Contact Center SOW Template and Guide
    [infographic]

    Workshop: Choose a Right-Sized Contact Center Solution

    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 Architecture

    The Purpose

    Shortlist and decide upon a right-sized contact center architecture.

    Key Benefits Achieved

    A high-level decision for a right-sized architecture

    Activities

    1.1 Define vision and mission statements.

    1.2 Identify infrastructure metrics of success.

    1.3 Confirm key performance indicators for contact center operations.

    1.4 Complete architecture assessment.

    1.5 Confirm right-sized architecture.

    Outputs

    Project outline

    Metrics of success

    KPIs confirmed

    Quickly narrow down right-sized architecture

    Decision on right-sized contact center architecture

    2 Gather Requirements

    The Purpose

    Build business requirements and define key deliverables to achieve stakeholder buy-in and shortlist potential vendors.

    Key Benefits Achieved

    Key deliverables defined and a shortlist of no more than five vendors

    Sections 7-8 of the Contact Center Playbook completed

    Activities

    2.1 Hold focus groups with key stakeholders.

    2.2 Gather business, nonfunctional, and functional requirements.

    2.3 Define key deliverables.

    2.4 Shortlist five vendors that appear meet those requirements.

    Outputs

    User requirements identified

    Business Requirements Document completed

    Key deliverables defined

    Shortlist of five vendors

    3 Initial Vendor Scoring

    The Purpose

    Compare and evaluate shortlisted vendors against gathered requirements.

    Key Benefits Achieved

    Have a strong overview of which vendors are preferred for issuing RFP/RFQ

    Section 9 of the Contact Center Playbook

    Activities

    3.1 Input requirements to the Contact Center RFP Scoring Tool. Define which are mandatory and which are desirable.

    3.2 Determine which vendors best meet requirements.

    3.3 Compare requirements met with anticipated TCO.

    3.4 Compare and rank vendors.

    Outputs

    An assessment of requirements

    Vendor scoring

    A holistic overview of requirements scoring and vendor TCO

    An initial ranking of vendors to shape RFP process after workshop end

    4 SOW Walkthrough

    The Purpose

    Walk through the Contact Center SOW Template and Guide to identify how much time to allocate per section and who will be responsible for completing it.

    Key Benefits Achieved

    An understanding of a SOW that is designed to avoid major pitfalls with vendor management

    Section 10 of the Contact Center Playbook

    Activities

    4.1 Get familiar with the SOW structure.

    4.2 Identify which sections will demand greater time allocation.

    4.3 Strategize how to avoid potential pitfalls.

    4.4 Confirm reviewer responsibilities.

    Outputs

    A broad understanding of a SOW’s key sections

    A determination of how much time should be allocated for reviewing major sections

    A list of ways to avoid major pitfalls with vendor management

    A list of reviewers, the sections they are responsible for reviewing, and their time allocation for their review

    5 Communicate and Implement

    The Purpose

    Finalize deliverables and plan post-workshop communications.

    Key Benefits Achieved

    A completed Contact Center Playbook that justifies each decision of this workshop

    Activities

    5.1 Finalize deliverables.

    5.2 Support communication efforts.

    5.3 Identify resources in support of priority initiatives.

    Outputs

    Contact Center Playbook delivered

    Post-workshop engagement to confirm satisfaction

    Follow-up research that complements the workshop or leads workshop group in relevant new directions

    2020 IT Talent Trend Report

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    • Parent Category Name: Lead
    • Parent Category Link: /lead
    • IT is an employee’s market.
    • Automation, outsourcing, and emerging technologies are widening the skill gap and increasing the need for skilled staff.
    • IT departments must find new ways to attract and retain top talent.

    Our Advice

    Critical Insight

    • Improving talent management is the way forward, but many IT leaders are approaching it the wrong way.
    • Among the current climate of automating everything in the workplace, we need to bring the human element back into talent management.

    Impact and Result

    • Using talent management strategies that speak to employees as individuals, rather than cogs in a machine, produces more effective IT departments.
    • IT leaders who make use of these strategies see benefits across the talent lifecycle – from hiring, to training, to retention.

    2020 IT Talent Trend Report Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should focus on talent management and get an overview of what successful IT leaders are doing differently heading into 2020 – the six new talent management trends.

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

    1. IT takes ownership of talent acquisition

    IT leaders who get personally involved in recruitment see better results. Read this section to learn how leader are getting involved, and how to take the first steps.

    • 2020 IT Talent Trend Report – Trend 1: IT Takes Ownership of Talent Acquisition

    2. Flexible work becomes fluid work

    Heading into 2020, flexible work is table stakes. Read this section to learn what organizations offer and how you can take advantage of opportunities your competitors are missing.

    • 2020 IT Talent Trend Report – Trend 2: Flexible Work Becomes Fluid Work

    3. The age of radical transparency

    Ethics and transparency are emerging as key considerations for employees. How can you build a culture that supports this? Read this section to learn how.

    • 2020 IT Talent Trend Report – Trend 3: The Age of Radical Transparency

    4. People analytics is business analytics

    Your staff is the biggest line item in your budget, but are you using data to make decisions about your people they way you do in other areas of the business? Read this section to learn how analytics can be applied to the workforce no matter what level you are starting at.

    • 2020 IT Talent Trend Report – Trend 4: People Analytics Is Business Analytics

    5. IT departments become their own universities

    With the rapid pace of technological change, it is becoming increasingly harder to hire skilled people for critical roles. Read this section to learn how some IT departments are turning to in-house training to fill the skill gap.

    • 2020 IT Talent Trend Report – Trend 5: IT Departments Become Their Own Universities

    6. Offboarding: The missed opportunity

    What do an employee's last few days with your company look like? For most organizations, they are filled with writing rushed documentation, hosting last-minute training sessions and finishing up odd jobs. Read this section to understand the crucial opportunity most IT departments are missing when it comes to departing staff.

    • 2020 IT Talent Trend Report – Trend 6: Offboarding: The Missed Opportunity
    [infographic]

    Considerations for a Hub and Spoke Model When Deploying Infrastructure in the Cloud

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    • Parent Category Name: Cloud Strategy
    • Parent Category Link: /cloud-strategy
    • The organization is planning to move resources to cloud or devise a networking strategy for their existing cloud infrastructure to harness value from cloud.
    • The right topology needs to be selected to deploy network level isolation, design the cloud for management efficiencies and provide access to shared services on cloud.
    • A perennial challenge for infrastructure on cloud is planning for governance vs flexibility which is often overlooked.

    Our Advice

    Critical Insight

    Don’t wait until the necessity arises to evaluate your networking in the cloud. Get ahead of the curve and choose the topology that optimizes benefits and supports organizational needs in the present and the future.

    Impact and Result

    • Define organizational needs and understand the pros and cons of cloud network topologies to strategize for the networking design.
    • Consider the layered complexities of addressing the governance vs. flexibility spectrum for your domains when designing your networks.

    Considerations for a Hub and Spoke Model When Deploying Infrastructure in the Cloud Research & Tools

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

    1. Considerations for a Hub and Spoke Model When Deploying Infrastructure in the Cloud Deck – A document to guide you through designing your network in the cloud.

    What cloud networking topology should you use? How do you provide access to shared resources in the cloud or hybrid infrastructure? What sits in the hub and what sits in the spoke?

    • Considerations for a Hub and Spoke Model When Deploying Infrastructure in the Cloud Storyboard
    [infographic]

    Further reading

    Considerations for a Hub and Spoke Model When Deploying Infrastructure in the Cloud

    Don't revolve around a legacy design; choose a network design that evolves with the organization.

    Analyst Perspective

    Cloud adoption among organizations increases gradually across both the number of services used and the amount those services are used. However, network builders tend to overlook the vulnerabilities of network topologies, which leads to complications down the road, especially since the structures of cloud network topologies are not all of the same quality. A network design that suits current needs may not be the best solution for the future state of the organization.

    Even if on-prem network strategies were retained for ease of migration, it is important to evaluate and identify the cloud network topology that can not only elevate the performance of your infrastructure in the cloud, but also that can make it easier to manage and provision resources.

    An "as the need arises" strategy will not work efficiently since changing network designs will change the way data travels within your network, which will then need to be adopted to existing application architectures. This becomes more complicated as the number of services hosted in the cloud grows.

    Keep a network strategy in place early on and start designing your infrastructure accordingly. This gives you more control over your networks and eliminates the need for huge changes to your infrastructure down the road.

    This is a picture of Nitin Mukesh

    Nitin Mukesh
    Senior Research Analyst, Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    The organization is planning to move resources to the cloud or devise a networking strategy for their existing cloud infrastructure to harness value from the cloud.

    The right topology needs to be selected to deploy network level isolation, design the cloud for management efficiencies, and provide access to shared services in the cloud.

    A perennial challenge for infrastructure in the cloud is planning for governance vs. flexibility, which is often overlooked.

    Common Obstacles

    The choice of migration method may result in retaining existing networking patterns and only making changes when the need arises.

    Networking in the cloud is still new, and organizations new to the cloud may not be aware of the cloud network designs they can consider for their business needs.

    Info-Tech's Approach

    Define organizational needs and understand the pros and cons of cloud network topologies to strategize for the networking design.

    Consider the layered complexities of addressing the governance vs. flexibility spectrum for your domains when designing your networks.

    Insight Summary

    Don't wait until the necessity arises to evaluate your networking in the cloud. Get ahead of the curve and choose the topology that optimizes benefits and supports organizational needs in the present and future.

    Your challenge

    Selecting the right topology: Many organizations migrate to the cloud retaining a mesh networking topology from their on-prem design, or they choose to implement the mesh design leveraging peering technologies in the cloud without a strategy in place for when business needs change. While there may be many network topologies for on-prem infrastructure, the network design team may not be aware of the best approach in cloud platforms for their requirements, or a cloud networking strategy may even go overlooked during the migration.

    Finding the right cloud networking infrastructure for:

    • Management efficiencies
    • Network-level isolation of resources
    • Access to shared services

    Deciding between governance and flexibility in networking design: In the hub and spoke model, if a domain is in the hub, the greater the governance over it, and if it sits in the spoke, the higher the flexibility. Having a strategy for the most important domains is key. For example, some security belongs in the hub and some security belongs in the spoke. The tradeoff here is if it sits completely in the spoke, you give it a lot of freedom, but it becomes harder to standardize across the organization.

    Mesh network topology

    A mesh is a design where virtual private clouds (VPCs) are connected to each other individually creating a mesh network. The network traffic is fast and can be redirected since the nodes in the network are interconnected. There is no hierarchical relationship between the networks, and any two networks can connect with each other directly.

    In the cloud, this design can be implemented by setting up peering connections between any two VPCs. These VPCs can also be set up to communicate with each other internally through the cloud service provider's network without having to route the traffic via the internet.

    While this topology offers high redundancy, the number of connections grows tremendously as more networks are added, making it harder to scale a network using a mesh topology.

    Mesh Network on AWS

    This is an image of a Mesh Network on AWS

    Source: AWS, 2018

    Constraints

    The disadvantages of peering VPCs into a mesh quickly arise with:

    • Transitive connections: Transitive connections are not supported in the cloud, unlike with on-prem networking. This means that if there are two networks that need to communicate, a single peering link can be set up between them. However, if there are more than two networks and they all need to communicate, they should all be connected to each other with separate individual connections.
    • Cost of operation: The lack of transitive routing requires many connections to be set up, which adds up to a more expensive topology to operate as the number of networks grows. Cloud providers also usually limit the number of peering networks that can be set up, and this limit can be hit with as few as 100 networks.
    • Management: Mesh tends to be very complicated to set up, owing to the large number of different peering links that need to be established. While this may be manageable for small organizations with small operations, for larger organizations with robust cybersecurity practices that require multiple VPCs to be deployed and interconnected for communications, mesh opens you up to multiple points of failure.
    • Redundancy: With multiple points of failure already being a major drawback of this design, you also cannot have more than one peered connection between any two networks at the same time. This makes designing your networking systems for redundancy that much more challenging.
    Number of virtual networks 10 20 50 100
    Peering links required
    [(n-1)*n]/2
    45 190 1225 4950

    Proportional relationship of virtual networks to required peering links in a mesh topology

    Case study

    INDUSTRY: Blockchain
    SOURCE: Microsoft

    An organization with four members wants to deploy a blockchain in the cloud, with each member running their own virtual network. With only four members on the team, a mesh network can be created in the cloud with each of their networks being connected to each other, adding up to a total of 12 peering connections (four members with three connections each). While the members may all be using different cloud accounts, setting up connections between them will still be possible.

    The organization wants to expand to 15 members within the next year, with each new member being connected with their separate virtual networks. Once grown, the organization will have a total of 210 peering connections since each of the virtual networks will then need 14 peering connections. While this may still be possible to deploy, the number of connections makes it harder to manage and would be that much more difficult to deploy if the organization grows to even 30 or 40 members. The new scale of virtual connections calls for an alternative networking strategy that cloud providers offer – the hub and spoke topology.

    This is an image of the connections involved in a mesh network with four participants.

    Source: Microsoft, 2017

    Hub and spoke network topology

    In hub and spoke network design, each network is connected to a central network that facilitates intercommunication between the networks. The central network, also called the hub, can be used by multiple workloads/servers/services for hosting services and for managing external connectivity. Other networks connected to the hub through network peering are called spokes and host workloads.

    Communications between the workloads/servers/services on spokes pass in or out of the hub where they are inspected and routed. The spokes can also be centrally managed from the hub with IT rules and processes.

    A hub and spoke design enable a larger number of virtual networks to be interconnected as each network only needs one peered connection (to the hub) to be able to communicate with any other network in the system.

    Hub and Spoke Network on AWS

    This is an image of the Hub and Spoke Network on AWS

    What hub and spoke networks do better

    1. Ease of connectivity: Hub and spoke decreases the liabilities of scale that come from a growing business by providing a consistent connection that can be scaled easily. As more networks are added to an organization, each will only need to be connected once – to the hub. The number of connections is considerably lower than in a mesh topology and makes it easier to maintain and manage.
    2. Business agility and scalability: It is easier to increase the number of networks than in mesh, making it easier to grow your business into new channels with less time, investment, and risk.
    3. Data collection: With a hub and spoke design, all data flows through the hub – depending on the design, this includes all ingress and egress to and from the system. This makes it an excellent central network to collect all business data.
    4. Network-level isolation: Hub and spoke enables separation of workloads and tiers into different networks. This is particularly useful to ensure an issue affecting a network or a workload does not affect the rest.
    5. Network changes: Changes to a separated network are much easier to carry out knowing the changes made will not affect all the other connected networks. This reduces work-hours significantly when systems or applications need to be altered.
    6. Compliance: Compliance requirements such as SOC 1 and SOC 2 require separate environments for production, development, and testing, which can be done in a hub and spoke model without having to re-create security controls for all networks.

    Hub and spoke constraints

    While there are plenty of benefits to using this topology, there are still a few notable disadvantages with the design.

    Point-to-point peering

    The total number of total peered connections required might be lower than mesh, but the cost of running independent projects is cheaper on mesh as point-to-point data transfers are cheaper.

    Global access speeds with a monolithic design

    With global organizations, implementing a single monolithic hub network for network ingress and egress will slow down access to cloud services that users will require. A distributed network will ramp up the speeds for its users to access these services.

    Costs for a resilient design

    Connectivity between the spokes can fail if the hub site dies or faces major disruptions. While there are redundancy plans for cloud networks, it will be an additional cost to plan and build an environment for it.

    Leverage the hub and spoke strategy for:

    Providing access to shared services: Hub and spoke can be used to give workloads that are deployed on different networks access to shared services by placing the shared service in the hub. For example, DNS servers can be placed in the hub network, and production or host networks can be connected to the hub to access it, or if the central network is set up to host Active Directory services, then servers in other networks can act as spokes and have full access to the central VPC to send requests. This is also a great way to separate workloads that do not need to communicate with each other but all need access to the same services.

    Adding new locations: An expanding organization that needs to add additional global or domestic locations can leverage hub and spoke to connect new network locations to the main system without the need for multiple connections.

    Cost savings: Apart from having fewer connections than mesh that can save costs in the cloud, hub and spoke can also be used to centralize services such as DNS and NAT to be managed in one location rather than having to individually deploy in each network. This can bring down management efforts and costs considerably.

    Centralized security: Enterprises can deploy a center of excellence on the hub for security, and the spokes connected to it can leverage a higher level of security and increase resilience. It will also be easier to control and manage network policies and networking resources from the hub.

    Network management: Since each spoke is peered only once to the hub, detecting connectivity problems or other network issues is made simpler in hub and spoke than on mesh. A network manager deployed on the cloud can give access to network problems faster than on other topologies.

    Hub and spoke – mesh hybrid

    The advantages of using a hub and spoke model far exceed those of using a mesh topology in the cloud and go to show why most organizations ultimately end up using the hub and spoke as their networking strategy.

    However, organizations, especially large ones, are complex entities, and choosing only one model may not serve all business needs. In such cases, a hybrid approach may be the best strategy. The following slides will demonstrate the advantages and use cases for mesh, however limited they might be.

    Where it can be useful:

    An organization can have multiple network topologies where system X is a mesh and system Y is a hub and spoke. A shared system Z can be a part of both systems depending on the needs.

    An organization can have multiple networks interconnected in a mesh and some of the networks in the mesh can be a hub for a hub-spoke network. For example, a business unit that works on data analysis can deploy their services in a spoke that is connected to a central hub that can host shared services such as Active Directory or NAT. The central hub can then be connected to a regional on-prem network where data and other shared services can be hosted.

    Hub and spoke – mesh hybrid network on AWS

    This is an image of the Hub and spoke – mesh hybrid network on AWS

    Why mesh can still be useful

    Benefits Of Mesh

    Use Cases For Mesh

    Security: Setting up a peering connection between two VPCs comes with the benefit of improving security since the connection can be private between the networks and can isolate public traffic from the internet. The traffic between the networks never has to leave the cloud provider's network, which helps reduce a class of risks.

    Reduced network costs: Since the peered networks communicate internally through the cloud's internal networks, the data transfer costs are typically cheaper than over the public internet.

    Communication speed: Improved network latency is a key benefit from using mesh because the peered traffic does not have to go over the public internet but rather the internal network. The network traffic between the connections can also be quickly redirected as needed.

    Higher flexibility for backend services: Mesh networks can be desirable for back-end services if egress traffic needs to be blocked to the public internet from the deployed services/servers. This also helps avoid having to set up public IP or network address translation (NAT) configurations.

    Connecting two or more networks for full access to resources: For example, consider an organization that has separate networks for each department, which don't all need to communicate with each other. Here, a peering network can be set up only between the networks that need to communicate with full or partial access to each other such as finance to HR or accounting to IT.

    Specific security or compliance need: Mesh or VPC peering can also come in handy to serve specific security needs or logging needs that require using a network to connect to other networks directly and in private. For example, global organizations that face regulatory requirements of storing or transferring data domestically with private connections.

    Systems with very few networks that do not need internet access: Workloads deployed in networks that need to communicate with each other but do not require internet access or network address translation (NAT) can be connected using mesh especially when there are security reasons to keep them from being connected to the main system, e.g. backend services such as testing environments, labs, or sandboxes can leverage this design.

    Designing for governance vs. flexibility in hub and spoke

    Governance and flexibility in managing resources in the cloud are inversely proportional: The higher the governance, the less freedom you have to innovate.

    The complexities of designing an organization's networks grow with the organization as it becomes global and takes on more services and lines of business. Organizations that choose to deploy the hub and spoke model face a dilemma in choosing between governance and flexibility for their networks. Organizations need to find that sweet spot to find the right balance between how much they want to govern their systems, mainly for security- and cost-monitoring, and how much flexibility they want to provide for innovation and other operations, since the two usually tend to have an inverse relationship.

    This decision in hub and spoke usually means that the domains chosen for higher governance must be placed in the hub network, and the domains that need more flexibility in a spoke. The key variables in the following slide will help determine the placement of the domain and will depend entirely on the organization's context.

    The two networking patterns in the cloud have layered complexities that need to be systematically addressed.

    Designing for governance vs. flexibility in hub and spoke

    If a network has more flexibility in all or most of these domains, it may be a good candidate for a spoke-heavy design; otherwise, it may be better designed in a hub-centric pattern.

    • Function: The function the domain network is assigned to and the autonomy the function needs to be successful. For example, software R&D usually requires high flexibility to be successful.
    • Regulations: The extent of independence from both internal and external regulatory constraints the domain has. For example, a treasury reporting domain typically has high internal and external regulations to adhere to.
    • Human resources: The freedom a domain has to hire and manage its resources to perform its function. For example, production facilities in a huge organization have the freedom to manage their own resources.
    • Operations: The freedom a domain has to control its operations and manage its own spending to perform its functions. For example, governments usually have different departments and agencies, each with its own budget to perform its functions.
    • Technology: The independence and the ability a domain has to manage its selection and implementation of technology resources in the cloud. For example, you may not want a software testing team to have complete autonomy to deploy resources.

    Optimal placement of services between the hub and spoke

    Shared services and vendor management

    Resources that are shared between multiple projects or departments or even by the entire organization should be hosted on the hub network to simplify sharing these services. For example, e-learning applications that may be used by multiple business units to train their teams, Active Directory accessed by most teams, or even SAAS platforms such as O365 and Salesforce can leverage buying power and drive down the costs for the organization. Shared services should also be standardized across the organization and for that, it needs to have high governance.

    Services that are an individual need for a network and have no preexisting relationship with other networks or buying power and scale can be hosted in a spoke network. For example, specialized accounting software used exclusively by the accounting team or design software used by a single team. Although the services are still a part of the wider network, it helps separate duties from the shared services network and provides flexibility to the teams to customize and manage their services to suit their individual needs.

    Network egress and interaction

    Network connections, be they in the cloud or hybrid-cloud, are used by everyone to either connect to the internet, access cloud services, or access the organization's data center. Since this is a shared service, a centralized networking account must be placed in the hub for greater governance. Interactions between the spokes in a hub and spoke model happens through the hub, and providing internet access to the spokes through the hub can help leverage cost benefits in the cloud. The network account will perform routing duties between the spokes, on-prem assets, and egress out to the internet.

    For example, NAT gateways in the cloud that are managed services are usually charged by the hour, and deploying NAT on each spoke can be harder to manage and expensive to maintain. A NAT gateway deployed in a central networking hub can be accessed by all spokes, so centralizing it is a great option.

    Note that, in some cases, when using edge locations for data transfers, it may be cost effective to deploy a NAT in the spoke, but such cases usually do not apply to most organizational units.

    A centralized network hub can also be useful to configure network policies and network resources while organizational departments can configure non-network resources, which helps separate responsibilities for all the spokes in the system. For example, subnets and routes can be controlled from the central network hub to ensure standardized network policies across the network.

    Security

    While there needs to be security in the hub and the spokes individually, finding the balance of operation can make the systems more robust. Hub and spoke design can be an effective tool for security when a principal security hub is hosted in the hub network. The central security hub can collect data from the spokes as well as non-spoke sources such as regulatory bodies and threat intelligence providers, and then share the information with the spokes.

    Threat information sharing is a major benefit of using this design, and the hub can take actions to analyze and enrich the data before sharing it with spokes. Shared services such as threat intelligence platforms (TIP) can also benefit from being centralized when stationed in the hub. A collective defense approach between the hub and spoke can be very successful in addressing sophisticated threats.

    Compliance and regulatory requirements such as HIPAA can also be placed in the hub, and the spokes connected to it can make use of it instead of having to deploy it in each spoke individually.

    Cloud metering

    The governance vs. flexibility paradigm usually decides the placement of cloud metering, i.e. if the organization wants higher control over cloud costs, it should be in the central hub, whereas if it prioritizes innovation, the spokes should be allowed to control it. Regardless of the placement of the domain, the costs can be monitored from the central hub using cloud-native monitoring tools such as Azure Monitor or any third-party software deployed in the hub.

    For ease of governance and since resources are usually shared at a project level, most cloud service providers suggest that an individual metering service be placed in the spokes. The centralized billing system of the organization, however, can make use of scale and reserved instances to drive down the costs that the spokes can take advantage of. For example, billing and access control resources are placed in the lower levels in GCP to enable users to set up projects and perform their tasks. These billing systems in the lower levels are then controlled by a centralized billing system to decide who pays for the resources provisioned.

    Don't get stuck with your on-prem network design. Design for the cloud.

    1. Peering VPCs into a mesh design can be an easy way to get onto the cloud, but it should not be your networking strategy for the long run.
    2. Hub and spoke network design offers more benefits than any other network strategy to be adopted only when the need arises. Plan for the design early on and keep a strategy in place to deploy it as early as possible.
    3. Hybrid of mesh and hub and spoke will be very useful in connecting multiple large networks especially when they need to access the same resources without having to route the traffic over the internet.
    4. Governance vs. flexibility should be a key consideration when designing for hub and spoke to leverage the best out of your infrastructure.
    5. Distribute domains across the hub or spokes to leverage costs, security, data collection, and economies of scale, and to foster secure interactions between networks.

    Cloud network design strategy

    This is an image of the framework for developing a Cloud Network Design Strategy.

    Bibliography

    Borschel, Brett. "Azure Hub Spoke Virtual Network Design Best Practices." Acendri Solutions, 13 Jan. 2022. Web.
    Singh, Garvit. "Amazon Virtual Private Cloud Connectivity Options." AWS, January 2018. Web.
    "What Is the Hub and Spoke Information Sharing Model?" Cyware, 16 Aug. 2021. Web.
    Youseff, Lamia. "Mesh and Hub-and-Spoke Networks on Azure." Microsoft, Dec. 2017. Web.

    Automate Testing to Get More Done

    • Buy Link or Shortcode: {j2store}285|cart{/j2store}
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    • Parent Category Name: Testing, Deployment & QA
    • Parent Category Link: /testing-deployment-and-qa
    • Today’s rapidly changing software products and operational processes create mounting pressure on software delivery teams to release new features and changes quickly while meeting high and demanding quality standards.
    • Most organizations see automated testing as a solution to meet this demand alongside their continuous delivery pipeline. However, they often lack the critical foundations, skills, and practices that are imperative for success.
    • The technology is available to enable automated testing for many scenarios and systems, but industry noise and an expansive tooling marketplace create confusion for those interested in adopting this technology.

    Our Advice

    Critical Insight

    • Good automated testing improves development throughput. No matter how quickly you put changes into production, end users will not accept them if they do not meet quality standards. Escaped defects, refactoring, and technical debt can significantly hinder your team’s ability to deliver software on time and on budget. In fact, 65% of organizations saw a reduction of test cycle time and 62% saw reductions in test costs with automated testing (Sogeti, World Quality Report 2020–21).
    • Start automation with unit and functional tests. Automated testing has a sharp learning curve, due to either the technical skills to implement and operate it or the test cases you are asked to automate. Unit tests and functional tests are ideal starting points in your automation journey because of the available tools and knowledge in the industry, the contained nature of the tests you are asked to execute, and the repeated use of the artifacts in more complicated tests (such as performance and integration tests). After all, you want to make sure the application works before stressing it.
    • Automated testing is a cross-functional practice, not a silo. A core component of successful software delivery throughput is recognizing and addressing defects, bugs, and other system issues early and throughout the software development lifecycle (SDLC). This involves having all software delivery roles collaborate on and participate in automated test case design, configure and orchestrate testing tools with other delivery tools, and proactively prepare the necessary test data and environments for test types.

    Impact and Result

    • Bring the right people to the table. Automated testing involves significant people, process and technology changes across multiple software delivery roles. These roles will help guide how automated testing will compliment and enhance their responsibilities.
    • Build a foundation. Review your current circumstances to understand the challenges blocking automated testing. Establish a strong base of good practices to support the gradually adoption of automated testing across all test types.
    • Start with one application. Verify and validate the automated testing practices used in one application and their fit for other applications and systems. Develop a reference guide to assist new teams.

    Automate Testing to Get More Done Research & Tools

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

    1. Start here – read the Executive Brief

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

    2. Adopt good automated testing practices

    Develop and implement practices that mature your automated testing capabilities.

    • Automated Testing Quick Reference Template

    Infographic

    Workshop: Automate Testing to Get More Done

    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 Adopt Good Automated Testing Practices

    The Purpose

    Understand the goals of and your vision for your automated testing practice.

    Develop your automated testing foundational practices.

    Adopt good practices for each test type.

    Key Benefits Achieved

    Level set automated testing expectations and objectives.

    Learn the key practices needed to mature and streamline your automated testing across all test types.

    Activities

    1.1 Build a foundation.

    1.2 Automate your test types.

    Outputs

    Automated testing vision, expectations, and metrics

    Current state of your automated testing practice

    Ownership of the implementation and execution of automated testing foundations

    List of practices to introduce automation to for each test type

    Achieve IT Spend & Staffing Transparency

    • IT spend has increased in volume and complexity, but how IT spend decisions are made has not kept pace.
    • In most organizations, technology has evolved faster than the business’ understanding of what it is, how it works, and what it can do for them.
    • How traditional financial accounting methods are applied to IT expenditure don’t align well to modern IT realities.
    • IT is often directed to make cuts when cost optimization and targeted investment are what’s really needed to sustain and grow the organization in the long term.

    Our Advice

    Critical Insight

    • Meaningful conversations about IT spend don’t happen nearly as frequently as they should. When they do happen, they are often inhibited by a lack of IT financial management (ITFM) maturity combined with the absence of a shared vocabulary between IT, the CFO, and other business function leaders.
    • Supporting data about actual technology spend taking place that would inform decision making is often scattered and incomplete.
    • Creating transparency in your IT financial data is essential to powering collaborative and informed technology spend decisions.

    Impact and Result

    • Understand the uses and benefits of making your IT spend more transparent.
    • Discover and organize your IT financial data.
    • Map your organization’s total technology spend against four IT stakeholder views: CFO, CIO, CXO, and CEO.
    • Gain vocabulary and facts that will help you tell the true story of IT spend.

    Members may also be interested in Info-Tech's IT Spend & Staffing Benchmarking Service.

    Achieve IT Spend & Staffing Transparency Research & Tools

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

    1. Achieve IT Spend & Staffing Transparency Deck – A detailed, do-it-yourself framework and process for clearly mapping your organization’s total technology spend.

    This deck mirrors Info-Tech’s own internal methods for delivering its IT Spend & Staffing Benchmarking Service in a do-it-yourself format. Based on Info-Tech’s proven ITFM Cost Model, it includes an IT spend mapping readiness assessment, expert advice for sourcing and organizing your financial data, a methodology for mapping IT staff and vendor spend according to four key stakeholder views (CFO, CIO, CXO, and CEO), and guidance on how to analyze and share your results.

    • Achieve IT Spend & Staffing Transparency Storyboard

    2. IT Spend & Staffing Transparency Workbook – A structured Excel tool that allows you to allocate your IT spend across four key stakeholder views and generate high-impact visualizations.

    This workbook offers a step-by-step approach for mapping and visualizing your organization’s true IT spend.

    • IT Spend & Staffing Transparency Workbook

    3. IT Spend & Staffing Transparency Executive Presentation Template – A PowerPoint template that helps you summarize and showcase key results from your IT spend transparency exercise.

    This presentation template offers a recommended structure for introducing key executive stakeholders to your organization’s true IT spending behavior and IT financial management as a whole.

    • IT Spend & Staffing Transparency Executive Presentation Template

    Infographic

    Further reading

    Achieve IT Spend & Staffing Transparency

    Lay a foundation for meaningful conversations with the business.

    Analyst Perspective

    Take the first step in your IT spend journey.

    Talking about money is hard. Talking to the CEO, CFO, and other business leaders about money is even harder, especially if IT is seen as just a cost center, is not understood by stakeholders, or is simply taken for granted. In times of economic hardship, already lean IT operations are tasked with becoming even leaner.

    When there's little fat to trim, making IT spend decisions without understanding the spend's origin, location, extent, and purpose can lead to mistakes that weaken, not strengthen, the organization.

    The first step in optimizing IT spend decisions is setting a baseline. This means having a comprehensive and transparent view of all technology spend, organization-wide. This baseline is the only way to have meaningful, data-driven conversations with stakeholders and approvers around what IT delivers to the business and the implications of making changes to IT funding.

    Before stepping forward in your IT financial management journey, know exactly where you're standing today.

    Jennifer Perrier, Principal Research Director, ITFM Practice

    Jennifer Perrier
    Principal Research Director, ITFM Practice
    Info-Tech Research Group

    Executive Summary

    Your Challenge Common Obstacles Info-Tech's Approach
    IT spend has increased in volume and complexity, but how IT spend decisions are made has not kept pace:
    • Technology has evolved faster than the business' understanding of what it is, how it works, and what it can do for them.
    • How traditional financial accounting methods are applied doesn't align well to modern IT realities.
    • IT is directed to make cuts when cost optimization and targeted investment are what's really needed to sustain and grow the organization in the long-term.
    Meaningful conversations about IT spend don't happen nearly as much as they should. This is often due to:
    • A lack of maturity in how ITFM (IT financial management) is executed within IT and across the organization as a whole.
    • The absence of a shared vocabulary between IT, the CFO, and other business function leaders.
    • Scattered and incomplete data about the actual technology spend taking place in the organization.
    Lay a foundation for meaningful conversations and informed decision-making around IT spend.
    • Understand the uses and benefits of making your IT spend more transparent.
    • Discover and organize your IT financial data.
    • Map your organization's total technology spend against four IT stakeholder views: CFO, CIO, CXO, and CEO.
    • Gain both vocabulary and facts that will help you tell the true story of IT spend.

    Info-Tech Insight
    Create transparency in your IT financial data to power both collaborative and informed technology spend decisions.

    IT spend has grown alongside IT complexity

    IT spend has grown alongside IT complexity

    Growth creates change ... and challenges

    IT has become more integral to business operations and achievement of strategic goals, driving complexity in how IT funds are allocated and managed.

    How IT funds are spent has changed
    Value demonstration is two-pronged. The first is return on performance investment, focused on formal and objective goals, metrics, and KPIs. The second is stakeholder satisfaction, a more subjective measure driven by IT-business alignment and relationship. IT leaders must do both well to prove and promote IT's value.
    Funding decision cadence has sped up
    Many organizations have moved from three- to five-year strategic planning cycles to one-year planning horizons or less, most noticeably since the 2008/2009 recession. Not only has the pace of technological change accelerated, but so too has volatility in the broader business and economic environments, forcing rapid response.
    Justification rigor around IT spend has increased
    The need for formal business cases, proposals, and participation in formal governance processes has increased, as has demand for financial transparency. With many IT departments still reporting into the CFO, there's no getting around it - today's IT leaders need to possess financial management savvy.
    Clearly showing business value has become priority
    IT spend has moved from the purchase of discrete hardware and software tools traditionally associated with IT to the need to address larger-scale issues around interoperability, integration, and virtualized cloud solutions. Today's focus is more on big-picture architecture than on day-to-day operations.

    ITFM capabilities haven't grown with IT spend

    IT still needs to prove itself.

    Increased integration with the core business has made it a priority for the head of IT to be well-versed in business language and practice, specifically in the areas of measurement and financial management.

    However, IT staff across all industries aren't very confident in how well IT is doing in managing its finances via three core processes:

    • Accounting of costs and budgets.
    • Optimizing costs to gain the best return on investment.
    • Demonstrating IT's value to the business.

    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 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 showing how IT contributes to business value.

    Graph of Cost and Budget Management

    Graph of Cost Optimization

    Questions for support transition

    Source: IT Management & Governance Diagnostic, Info-Tech Research Group, 2022.

    Take the perspective of key IT stakeholders as a first step in ITFM capability improvement

    Other business unit leaders need to deliver on their own specific and unique accountabilities. Create true IT spend transparency by accounting for these multiple perspectives.

    Exactly how is IT spending all that money we give them?
    Many IT costs, like back-end infrastructure and apps maintenance, can be invisible to the business.

    Why doesn't my department get more support from IT?
    Some business needs won't align with spend priorities, while others seem to take more than their fair share.

    Does the amount we spend on each IT service make sense?
    IT will get little done or fall short of meeting service level requirements without appropriate funding.

    I know what IT costs us, but what is it really worth?
    Questions about value arise as IT investment and spend increase. How to answer these questions is critical.

    At the end of the day, telling IT's spend story to the business is a significant challenge if you don't understand your audience, have a shared vocabulary, or use a repeatable framework.

    Mapping your IT spend against a reusable framework helps generate transparency

    A framework makes transparency possible by simplifying methods, creating common language, and reducing noise.

    However, the best methodological framework won't work if the materials and information plugged into it are weak. With IT spend, the materials and information are your staff and your vendor financial data. To achieve true transparency, inputs must have the following three characteristics:

    Availability Reliability Usability
    The data and information are up-to-date and accessible when needed. The data and information are accurate, complete, and verifiable. The data and information are clearly defined, consistently and predictably organized, consumable, and meaningful for decision-making.

    A framework is an organizing principle. When it comes to better understanding your IT spend, the things being organized by a framework are your method and your data.

    If your IT spend information is transparent, you have an excellent foundation for having the right conversations with the right people in order to make strategically impactful decisions.

    Info-Tech's approach enables meaningful dialogue with stakeholders about IT spend

    View of meaningful dialogue with stakeholders about IT spend

    Investing time in preparing and mapping your IT spend data enables better IT governance

    While other IT spend transparency methods exist, Info-Tech's is designed to be straightforward and tactical.

    Info-Tech method for IT spend transparency

    Put your data to work instead of being put to work by your data.

    Introducing Info-Tech's methodology for creating transparency on technology spend

    1. Know your objectives 2. Gather required data 3. Map your IT staff spend 4. Map your IT vendor spend 5. Identify implications for IT
    Phase Steps
    1. Review your business context
    2. Set IT staff and vendor spend transparency objectives
    3. Assess effort and readiness
    1. Collect IT staff spend data
    2. Collect IT vendor spend data
    3. Define industry-specific CXO Business View categories
    1. Categorize IT staff spend in each of the four views
    2. Validate
    1. Categorize IT vendor spend in each of the four views
    2. Validate
    1. Analyze your findings
    2. Craft your key messages
    3. Create an executive presentation
    Phase Outcomes Goals and scope for your IT spend and staffing transparency effort. Information and data required to perform the IT staff and vendor spend transparency initiative. A mapping of the allocation of IT staff spend across the four views of the Info-Tech ITFM Cost Model. A mapping of the allocation of IT vendor spend across the four views of the Info-Tech ITFM Cost Model. An analysis of your results and a presentation to aid your communication of findings with stakeholders.

    Insight Summary

    Overarching insight
    Take the perspective of key stakeholders and lay out your organization's complete IT spend footprint in terms they understand to enable meaningful conversations and start evolving your IT financial management capability.

    Phase 1 insight
    Your IT spend transparency efforts are only useful if you actually do something with the outcomes of those efforts. Be clear about where you want your IT transparency journey to take you.

    Phase 2 insight
    Your IT spend transparency efforts are only as good as the quality of your inputs. Take the time to properly source, clean, and organize your data.

    Phase 3 insight
    Map your IT staff spend data first. It involves work but is relatively straightforward. Practice your mapping approach here and carry forward your lessons learned.

    Phase 4 insight
    The importance of good, usable data will become apparent when mapping your IT vendor spend. Apply consistent and meaningful vendor labels to enable true aggregation and insight.

    Phase 5 insight
    Communicating your final IT spend transparency mapping with executive stakeholders is your opportunity to debut IT financial management as not just an IT issue but an organization-wide concern.

    Blueprint deliverables

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

    Use this tool in Phases 1-4

    IT Spend & Staffing Transparency Workbook

    Input your IT staff and vendor spend data to generate visual outputs for analysis and presentation in your communications.

    Key deliverable:

    IT Spend & Staffing Transparency Executive Presentation

    Create a showcase for your newly-transparent IT staff and vendor spend data and present it to key business stakeholders.

    Use this tool in Phase 5

    IT and business blueprint benefits

    IT Benefits Business Benefits
    • Gain insight into exactly where you're spending IT funds on hardware, software, service providers, and the workforce.
    • Understand how much it's costing IT to deliver specific IT services.
    • Illustrate differences in business consumption of IT spend.
    • Learn the ratio of spend allocated to innovation vs. growth vs. keeping the lights on (KTLO).
    • Develop a series of core IT spend metrics including IT spend as a percent of revenue, IT spend per organization employee, and IT spend per IT staff member.
    • Create a complete IT spend baseline to serve as a foundation for future benchmarking, cost optimization, and other forms of IT financial analysis.
    • Understand the relative allocation of IT spend across capital vs. operational expenditure.
    • See the degree to which IT differentially supports and enables organizational goals, strategies, and functions.
    • Have better data for informing the organization's IT spend allocation and prioritization decisions.
    • Gain better visibility into real-life IT spending behaviors, cadences, and patterns.
    • Identify potential areas of spend waste as well as underinvestment.
    • Understand the true value that IT brings to the business.

    Measure the value of this blueprint

    You will know that your IT spend and staffing transparency effort is succeeding when:

    • Your understanding of where technology funds are really being allocated is comprehensive.
    • You're having active and meaningful dialogue with key stakeholders about IT spend issues.
    • IT spend transparency is a permanent part of your IT financial management toolkit.

    In phase 1 of this blueprint, we will help you identify initiatives where you can leverage the outcomes of your IT spend and staffing transparency effort.

    In phases 2, 3, and 4, we will guide you through the process of mapping your IT staff and vendor spend data so you can generate your own IT spend metrics based on reliable sources and verifiable facts.

    Win #1: Knowing how to reliably source the financial data you need to make decisions.

    Win #2: Getting your IT spend data in an organized format that you can actually analyze.

    Win #3: Having a framework that puts IT spend in a language stakeholders understand.

    Win #4: Gaining a practical starting point to mature ITFM practices like cost optimization.

    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 are used throughout all four options.

    Guided Implementation

    Info-Tech recommends the following calls in your Guided Implementation.

    Phase 1: Know your objectives Phase 2: Gather required data Phase 3: Map your IT staff spend Phase 4: Map your IT vendor spend Phase 5: Identify implications for IT
    Call #1: Discuss your IT spend and staffing transparency objectives and readiness. Call #2: Review spend and staffing data sources and identify data organization and cleanup needs. Call #3: Review your mapped IT staff spend and resolve lingering challenges. Call #4: Review your mapped IT vendor spend and resolve lingering challenges. Call #5: Analyze your mapping outputs for opportunities and devise 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 between four to six calls over the course of two to three months.

    Want even more help with your IT spend transparency effort?

    Let us fast-track your IT spend journey.

    The path to IT financial management maturity starts with knowing exactly where your money is going. To streamline this effort, Info-Tech offers an IT Spend & Staffing Benchmarking service that provides full transparency into where your money is going without any heavy lifting on your part.

    This unique service features:

    • A client-proven approach to meet your IT spend transparency goals.
    • Vendor and staff spend mapping that reveals business consumption of IT.
    • Industry benchmarking to compare your spending and staffing to that of your peers.
    • Results in a fraction of the time with much less effort than going it alone.
    • Expert review of results and ongoing discussions with Info-Tech analysts.

    If you'd like Info-Tech to pave the way to IT spend transparency, contact your account manager for more information - we're happy to talk anytime.

    Phase 1

    Know Your Objectives

    This phase will walk you through the following activities:

    • Establish IT spend and staffing transparency uses and objectives
    • Assess your readiness to tackle IT spend and staffing transparency

    This phase involves the following participants:

    • Head of IT
    • IT financial lead
    • Other members of IT management

    Phase 1: Know your objectives

    Envision what transparency can do.

    You're at the very beginning of your IT spend transparency journey. In this phase you will:

    • Set your objectives for making your IT spend and staffing transparent.
    • Assess your readiness to tackle the exercise and gauge how much work you'll need to do in order to do it well.

    "I've heard this a lot lately from clients: 'I've got my hands on this data, but it's not structured in a way that will allow me to make any decisions about it. I have these journal entries and they have some accounting codes, GL descriptors, cost objects, and some vendors, but it's not enough detail to make any decisions about my services, my applications, my asset spend.'"
    - Angie Reynolds, Principal Research Director, ITFM Practice, Info-Tech Research Group

    Transparency positively enables both business outcomes and the practice of business ethics

    However, transparency's real superpower is in how it provides fact-based context.

    • More accurate and relevant data for decision-making.
    • Better managed and more impactful financial outcomes.
    • Increased inclusion of people in the decisions that affect them.
    • Clearer accountabilities for organizational efficiency and effectiveness goals.
    • Concrete proof that business priorities and decisions are being acted on and implemented.
    • Greater trust and respect between IT and the business.
    • Demonstration of integrity in how funds are being used.

    IT spend transparency efforts are only useful if you actually do something with the outputs

    Identify in advance how you plan to leverage IT spend transparency outcomes.

    CFO expense view

    • Demonstrate actual IT costs at the right level of granularity.
    • Update/change the categories finance uses to track IT spend.
    • Adjust the expected CapEx/OpEx ratio.

    CXO business view

    • Calculate consumption of IT resources by department.
    • Implement a showback/chargeback mechanism.
    • Change the funding conversation about proposed IT projects.

    CIO service view

    • Calculate the total cost to deliver a specific IT service.
    • Adjust the IT service spend-to-value ratio as per business priorities.
    • Rightsize IT service levels to reflect true value to the business.

    CEO innovation view

    • Formalize the organization's position on use of cloud/outsourcing.
    • Reduce the portion of spend dedicated to "keeping the lights on."
    • Develop a plan for boosting commitment to innovation investment.

    When determining your end objectives, think about the real questions IT is being asked by the business and how IT spend transparency will help you answer them.

    CFO: Financial accounting perspective

    IT spend used to be looked at from a strictly financial accounting perspective - this is the view of the CFO and the finance department. Their question, "exactly how is IT spending all that money we give them," is really about how money is distributed across different asset classes. This question breaks down into other questions that IT leaders needs to ask themselves in order to provide answers:

    • How should I classify my IT costs? What are the standard categories you need to have that are meaningful to folks crunching the corporate numbers? If you're too detailed, it won't make sense to them. If you pick outmoded categories, you'll have to adjust in the future as IT evolves, which makes tracking year-over-year spend patterns harder.
    • What information should I include in my plans and reports? This is about two things. One is about communicating with the finance department in language that reduces back-and-forth and eliminates misinterpretation. The other is about aligning with the categories the finance department uses to track financial data in the general ledger.
    • How do I justify current spend? This is about clarity and transparency. Specifically itemizing spend into categories that are meaningful for your audience does a lot of justification work for you since you don't have to re-explain what everything means.
    • How do I justify a budget increase? In a declining economy, this question may not be appropriate. However, establishing a baseline puts you in a better position to discuss spend requirements based on past performance and to focus the conversation.

    Exactly how is IT spending all that money we give them?

    Example
    Asset Class % IT Spend
    Workforce 42.72%
    Software - Cloud 9.26%
    Software - On Prem 13.61%
    Hardware - Cloud 0.59%
    Hardware - On Prem 15.68%
    Contract Services 18.14%
    Info-Tech IT Spend & Staffing Studies, 2022.

    CIO: IT operations management perspective

    As the CIO role was adopted, IT spend was viewed from the IT operations management perspective. Optimizing the IT delivery model is a critical step to reducing time to provision services. For the IT leader, the questions they need to ask themselves are:

    • What's the impact of cloud adoption on speed of delivery? Leveraging a SaaS solution can reduce time to deployment as well as increase your ability to scale; however, integration with other functionality will still be a challenge that will incur costs.
    • Where can I improve spend efficiency? This is about optimizing spend in your IT delivery model. What service levels does the business require and what's the most cost-effective way to meet those levels without incurring significant technical debt?
    • Is my support model optimized? By reviewing where support staff are focused and which services are using most of your resources, you can investigate underlying drivers of your staffing requirements. If staff costs in support of a business function are high, perhaps the portfolio of applications needs to be reviewed.
    • How does our spend compare to others? Benchmarking against peers is a useful input, but reflects common practice, not best practice. For example, if you need to invest in IT security, your entire industry is lagging on this front, and you happen to be doing slightly better than most, then bringing forth this benchmark won't help you make the case. Starting with year-over-year internal benchmarking is essential - establish your categories, establish your baseline, and track it consistently.

    Does the amount we spend on each IT service make sense?

    Example
    Service Area % IT Spend
    App Development 9.06%
    App Maintenance 30.36%
    Hosting/Network 25.39%
    End User 18.59%
    Data & BI 3.58%
    Security & Risk 5.21%
    IT Management 7.82%
    Info-Tech IT Spend & Staffing Studies, 2022.

    CXO: Business unit perspective

    As business requests have increased, so too has the importance of the business unit perspective. Each business function has a unique mandate to fulfill in the organization and also competes with other business functions for IT resources. By understanding business consumption of IT, organizations can bring transparency and drive a different dialog with their business partners. Every IT leader should find out the answers to these questions:

    • Which business units consume the most IT resources? By understanding consumption of IT by business function, IT organizations can clearly articulate which business units are getting the highest share of IT resources. This will bring much needed clarity when it comes to IT spend prioritization and investment.
    • Which business units are underserved by IT? By providing full transparency into where all IT spend is consumed, organizations can determine if certain business functions may need increased attention in an upcoming budget cycle. Knowing which levers to pull is critical in aligning IT activities with delivering business value.
    • How do I best communicate spend data internally? Different audiences need information presented to them differently. This is not just about the language - it's also about the frequency, format, and channel you use. Ask your audiences directly what methods of communication stand the best chance of you being seen and heard.
    • Where do I need better business sponsorship for IT projects? If a lot of IT spend is going toward one or two business units, the leaders of those units need to be active sponsors of IT projects and associated spend that will benefit all users.

    Why doesn't my business unit get more support from IT?

    Example
    Business Function % IT Spend
    HR Department 6.16%
    Finance Department 15.15%
    IT Department 10.69%
    Business Function 1 23.80%
    Business Function 2 10.20%
    Business Function 3 6.80%
    Business Function 4 27.20%
    Source: Info-Tech IT Spend & Staffing Studies, 2022.

    CEO: Strategic vs. operations perspective

    With a business view now available, evaluating IT spend from a strategic standpoint is critical. Simply put, how much is being spent keeping the lights on (KTLO) in the organization versus supporting business or organizational growth versus net-new business innovations? This view is not about what IT costs but rather how it is being prioritized to drive revenue, operating margin, or market share. Here are the questions IT leaders should be asking themselves along with the organization's executive leadership and the CEO:

    • Why is KTLO spend so high? This question is a good gauge of where the line is drawn between operations and strategy. Many IT departments want to reduce time spent on maintenance and redeploy resource investment toward strategic projects. This reallocation must include retiring or eliminating technologies to free up funds.
    • What should our operational spend priorities be? Maintenance and basic operations aren't going anywhere. The issue is what is necessary and what could be done more wisely. Are you throwing good money after bad on a high-maintenance legacy system?
    • Which projects and investments should we prioritize? The answer to this question should tightly align with business strategic goals and account for the lion's share of growth and innovation spend.
    • Are we spending enough on innovative initiatives? This is the ultimate dialogue between business partners, the CEO, and IT that needs to take place, yet often doesn't.

    I know what IT costs us, but what is it really worth?

    Example
    Focus Area % IT Spend
    KTLO 89.16%
    Grow 7.18%
    Innovate 3.66%
    Info-Tech IT Spend Studies, 2022.

    Be clear about where you want your IT spend transparency journey to take you in real life

    Transparent IT spend data will allow you to have conversations you couldn't have before. Consider this example of how telling an IT spend story could evolve.

    I want to ...
    Analyze the impact of the cloud on IT operating expenditure to update finance's expectations of a realistic IT CapEx/OpEx ratio now and into the future.

    To address the problem of ...

    • Many of our key software vendors have eliminated on-premises products and only offer software as an OpEx service.
    • Assumptions that modern IT solutions are largely on-premises and can be treated as capitalizable assets are out-of-date and don't reflect IT financial realities.

    And will use transparency to ...

    • Provide the CFO with specific, accurate, and annotated OpEx by product/service and vendor for all cloud-based and on-premises solutions.
    • Facilitate a realistic calculation of CapEx/OpEx distribution based on actuals, as well as let us develop defendable projections of OpEx into the future based on typical annual service fee increases and anticipated growth in the number of users/licenses.

    1.1 Establish ITFM objectives that leverage IT spend transparency

    Duration: One hour

    1. Consider the problems or issues commonly voiced by the business about IT, as well as your own ongoing challenges in communicating with stakeholders. Document these problems/issues as questions or statements as spoken by a person. To help structure your brainstorming, consider these general process domains and examples:
      1. Spend tracking and reporting. E.g. Why is IT's OpEx so high? We need you to increase IT's percentage of CapEx.
      2. Service levels and business continuity. E.g. Why do we need to hire more service desk staff? There are more of them in IT than any other role.
      3. Project and operations resourcing. E.g. Why can't IT just buy this new app we want? It's not very expensive.
      4. Strategy and innovation. E.g. Did output increase or decrease last quarter per input unit? IT should be able to run those reports for us.
    2. For each problem/issue noted, identify:
      1. The source(s) of the question/concern (e.g. CEO, CFO, CXO, CIO).
      2. The financial process involved (e.g. accurate costing, verification of costs, building a business case to invest).
    3. For each problem/issue, identify a broader project-style initiative where having transparent IT spend data is a valuable input. One initiative may apply to multiple problems/issues. For each initiative:
      1. Give it a working title.
      2. State the goal for the initiative with reference to ITFM aspirations.
      3. Identify key stakeholders (these will likely overlap with the problem/issue source).
      4. Set general time frames for resolution.

    Document your outputs on the slide immediately following the instruction slides for this exercise. Examples are included.

    1.1 Establish ITFM objectives that leverage IT spend transparency

    Input Output
    • Organizational knowledge
    • List of the potential uses and objectives of transparent IT spend and staffing data
    Materials Participants
    • Whiteboard/flip charts
    • Head of IT
    • IT financial lead

    ITFM initiatives that leverage transparency

    Problem/Issue Statement Source/ Stakeholder Associated ITFM Process Potential Initiative Initiative Goal Time Frame
    "Why is IT's OpEx so high? We need you to increase IT's percentage of CapEx." CFO IT spend categorization and reporting. Analyze the impact of the cloud on IT operating expenditure. To update finance's expectations of a realistic IT CapEx/OpEx ratio. <12 months
    "Why do we need to hire more service desk staff? There are more of them in IT than any other role." CFO, VP of HR Business case for hiring IT staff. Document ongoing IT support requirements for proposed ERP platform migration project. To ensure sufficient resources for an anticipated increase in service desk tickets due to implementation of a new ERP system. 1-3 months
    "Why can't IT just buy this new app we want? It's not very expensive." CEO, all CXOs/VPs Total cost of technology ownership. Develop a mechanism to review the lifecycle impact on IT of proposed technology purchases. To determine if functionality of new tool already exists in the org. and the total cost of ownership of a new app. <6 months
    "Did output increase or decrease last quarter per input unit? IT should be able to run those reports for us." CEO, CFO, VP of Production IT service costing. Develop an organizational business intelligence strategy. To create a comprehensive plan for evolving BI capability in the organization and transferring report development to users. Select a department for pilot. <12 months

    Your organization's governance culture will affect how you approach transparency

    Know your governance culture Lower Governance
    • Few regulations.
    • Financial reporting is largely internal.
    • Change is frequent and rapid.
    • Informal or nonexistent mechanisms and structures.
    • Data sharing behavior driven by competitive concerns.
    Higher Governance
    • Many regulations.
    • Stringent and regular external reporting requirements.
    • Change is limited and/or slow.
    • Defined and established mechanisms and structures.
    • Data sharing behavior driven by regulatory concerns.
    Determine impact on opportunities How does your governance culture impact IT spend transparency opportunities?
    Resistance to formality and bureaucracy Resistance to change and uncertainty
    Set expectations and approach You have plenty of room to implement transparency rigor within the confines of IT, but getting others to give you the time and attention you want will be a challenge. One-on-one, informal relationship building to create goodwill and dialogue is needed before putting forth recommendations or numbers. Many existing procedures must be accommodated and respected. While you can benefit by working with preexisting mechanisms and touchpoints, expect any changes you want to make to things like IT cost categories or CapEx/OpEx ratios to require a lot of time, meetings, and case-making.

    IT's current maturity around ITFM practice will also affect your approach to transparency

    Know your ITFM maturity level Lower ITFM Maturity
    • No/few formal policies, standards, or procedures exist.
    • There is little/no formal education or experience within IT around budget, costing, charging, or accounting practices.
    • Financial reporting is sporadic and inconsistent in its contents.
    • Business cases are rarely used in decision-making.
    • Financial data is neither reliable nor readily available.
    Higher ITFM Maturity
    • Formal policies, standards, and procedures are enforced organization-wide for all financial management activities.
    • Formally-trained accountants are embedded within IT.
    • Financial reporting is regular, scheduled, and defined.
    • Business cases are leveraged in most decision-making activities.
    • Financial data is governed, centralized, and current.
    Determine stakeholders' financial literacy How does your degree of ITFM maturity impact IT spend transparency opportunities?
    Improve your own financial literacy first Determine stakeholders' financial literacy
    Set expectations and approach Brush up on core financial management and accounting concepts before taking the discussion beyond IT's walls. Do start mapping your costs, but just know how to communicate what the data is saying before sharing it. Not everyone will be at your level, familiar with ITFM language and concepts, or focused on the same things you are. Gauge where your audience is at so you can prepare for meaningful dialogue.

    1.2 Assess your readiness to tackle IT spend transparency

    Duration: One hour

    Note: This assessment is general in nature. It's intended to help you identify and prepare for potential challenges in your IT spend and staffing transparency effort.

    1. Rate your agreement with the "Data & Information" and "Experience, Expertise, & Support" statements listed on the slide immediately following the two instruction slides for this exercise. For each statement, indicate the extent to which you agree or disagree, where:
      1. 1 = Strongly disagree
      2. 2 = Disagree
      3. 3 = Neither agree nor disagree
      4. 4 = Agree
      5. 5 = Strongly agree
    2. Add up your numerical scores for all statements, where the highest possible score is 65.
    3. Assess your general readiness against the following guidelines:
      1. 50-65: Ready. The transparency exercise will involve work, but should be straightforward since you have the data, skills, tools, processes, and support to do it.
      2. 40-49: Ready, with caveats. The transparency exercise is doable but will require some preparatory legwork and investigation on your part around data sourcing, organization, and interpretation.
      3. 30-39: Challenged. The transparency exercise will present some obstacles. Expect to encounter data gaps, inconsistencies, errors, roadblocks, and frustrations that will need to be resolved.
      4. Less than 30: Not ready. You don't have the data, skills, tools, processes, and/or support to do the data transparency exercise. Take time to develop a stronger foundation of financial literacy and governance before tackling it.

    Document your outputs on the slide immediately following the two instruction slides for this exercise.

    1.2 Assess your readiness to tackle IT spend transparency

    InputOutput
    • Organizational knowledge
    • Estimation of IT spend and staffing transparency effort
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT financial lead

    IT spend transparency readiness assessment

    Data & Information
    Statement Rating
    We know how to access all IT department spend records.
    We know how to access all non-IT-department technology spend records.
    We know how to access all IT vendor/contractor agreements.
    We know how to access data about our IT staff costs and allocation, such as organizational charts and salaries/benefits.
    Our financial and staffing data is up-to-date.
    Our financial and staffing data are labeled, described, and organized so that we know what they're referring to.
    Our financial and staffing data are in a format that we can easily manipulate (e.g. export, copy and paste, perform calculations).
    Experience, Expertise, & Support
    Statement Rating
    We have sufficient expertise within the IT department to navigate and accurately interpret financial records.
    We have reasonable access to expertise/resources in our finance department to support us in an IT spend transparency exercise.
    We can allocate sufficient time (about 40 hours) and resources in the near term to do an IT spend transparency exercise.
    We have current accountabilities to track and internally report financial information to others on at least a monthly basis.
    There are existing financial policies, procedures, and standards in the organization with which we must closely adhere and comply.
    We have had the experience of participating in, or responding to the results of, an internal or external audit.

    Rating scale:
    1 = Strongly Disagree; 2 = Disagree; 3 = Neither agree nor disagree; 4 = Agree; 5 = Strongly agree
    Assessment scale:
    Less than 30 = Not ready; 30-39 = Challenged; 40-49 = Ready with caveats; 50-65 = Ready

    Take a closer look at the statements you rated 1, 2, or 3. These will be areas of challenge no matter what your total score on the assessment scale.

    Phase 1: Know your objectives

    Achievement summary

    You've now completed the first two steps on your IT spend transparency journey. You have:

    • Set your objectives for making your IT spend and staffing transparent.
    • Assessed your readiness to tackle the exercise and know how much work you'll need to do in order to do it well.

    "Mapping to a transparency model is labor intensive. You can do it once and never revisit it again, but we would never advise that. What it does is play well into an IT financial management maturity roadmap."
    - Monica Braun, Research Director, ITFM Practice, Info-Tech Research Group

    Phase 2

    Gather Required Data

    This phase will walk you through the following activities:

    • Gather, clean, and organize your data
    • Build your industry-specific business views

    This phase involves the following participants:

    • Head of IT
    • IT financial lead
    • Other members of IT management

    Phase 2: Gather required data

    Finish your preparation.

    You're now ready to do the final preparation for your IT spend and staffing transparency journey. In this phase you will:

    • Gather your IT spend and staffing data and information.
    • Clean and organize your data to streamline mapping.
    • Identify your baseline data points.

    "Some feel like they don't have all the data, so they give up. Don't. Every data point counts."
    - Rex Ding, Research Specialist, ITFM Practice, Info-Tech Research Group

    Your IT spend transparency efforts are only as good as the quality of your inputs

    Aim for a comprehensive, complete, and accurate set of data and information.

    Diagram of comprehensive, complete, and accurate set of data and information

    Start by understanding what's included in technology spend

    Info-Tech's ITFM Technology Inventory

    In scope:

    • All network, telecom, and data center equipment.
    • All end-user productivity software and devices (e.g. laptops, peripheral devices, cell phones).
    • Information security.
    • All acquisition, development, maintenance, and management of business and operations software.
    • All systems used for the storage and management of business assets, data, records, and information.
    • All managed IT services.
    • Third-party consulting services.
    • All identifiable spend from the business for the above.

    Expand your thinking: Total tech spend goes beyond what's under IT's operational umbrella

    "Technology" means all technology in the organization regardless of where it lives, who bought it, who owns it, who runs it, or who uses it.

    IT may have low or no visibility into technologies that exist in the broader business environment beyond IT. Accept that you won't gain 100% visibility right now. However, do get started and be persistent.

    Where to look for non-IT technology ...

    • Highly specialized business functions - niche tools that are probably used by only a few people.
    • Power users and the "underserved" - cloud-based workflow, communication, and productivity tools they got on their own.
    • Operational technology - network-connected industrial, building, or physical security sensors and control systems.
    • Recently acquired/merged entities - inherited software.

    Who might get you what you need ...

    • Business unit and team leaders - identification of what they use and copies of their spend records and/or contracts.
    • Finance - a report of the "software" expenditure category to spot unrecognized technologies and their owners.
    • Vendors - copies of contracts if not forthcoming internally.
    • Your service desk - informal knowledge gained about unknown technologies at play in the course of doing their job.

    The IT spend and staffing transparency exercise is an opportunity to kick-start a technology discovery process that will give you and the business a true picture of your technology profile, use, and spend.

    Seek out data at the right level of granularity with the right supporting information

    Key data and information to seek out:

    • Credits applied to appropriate debits that show net expense, or detailed descriptions of credits with no matching debit.
    • Cash-based accounting (not accrual accounting). If accrual, will need to determine how to simplify the data for your uses.
    • Vendor names, asset classes, descriptors, and departments.
    • A total spend amount (CapEx + OpEx) that:
      • Aligns with the spend period.
      • Passes your gut check for total IT spend.
      • Includes annual amounts for multi-year contracts (e.g. one year of a three-year Microsoft enterprise agreement).
      • Includes technology spend from the business (e.g. OT that IT supports).
    • Insights on large projects.
    • Consolidated recurring payments, salaries and benefits, and other small expenses.

    Look for these data descriptors in your files:

    • Cost center/accounting unit
    • Cost center/department description
    • GL ACCT
    • CL account description
    • Activity description
    • Status
    • Program/business function/project description
    • Accounting period
    • Transaction amount
    • Vendor/vendor name
    • Product/product name

    Avoid data that's hard to use or problematic as it will slow you down and bring limited benefits

    Spend data that's out of scope:

    • Depreciation/amortization.
    • Gain or loss of asset write-off.
    • Physical security (e.g. key cards, cameras, motion sensors, floodlights).
    • Printer consumables costs.
    • Heating and cooling costs (for data centers).

    Challenging data formats:

    • Large raw data files with limited or no descriptors.
    • Major accounts (hardware and software) combined in the same line item.
    • Line items (especially software) with no vendor reference information.
    • PDF files or screenshots that you can't extract data from readily. Use Excel or CSV files whenever possible.

    Getting at the data you need can be easy or hard – it all depends

    This is where your governance culture and ITFM maturity start to come into play.

    Data source Potential data and information What to expect
    IT Current/past budget, vendor agreements, IT project records, discretionary spend, number of IT employees. The rigor of your ITFM practice and centralization of data and documents will affect how straightforward this is.
    Finance General ledger, cash and income statements, contractor payments and other accounts payable, general revenue. Secure their expertise early. Let them know what you're trying to do and what you need. They may be willing to prepare data for you in the format you need and help you decipher records.
    Purchasing List of vendors/suppliers, vendor agreements, purchase invoices. Purchasing often has more descriptive information about vendors than finance. They can also point you to tech spend in other departments that you didn't know about.
    Human Resources Organizational chart, staff salaries and benefits, number of employees overall and by department. Data about benefits costs is something you're not likely to have, and there's only one place you can reliably get it.
    Other Business Units Non-IT technology spend vendor agreements and purchase invoices, number of department employees. Other departments may be tracking spend in an entirely different way than you. Be prepared to dig and reconcile.

    There may be some data or information you can't get without a Herculean effort. Don't worry about it too much - these items are usually relatively minor and won't significantly affect the overall picture.

    Commit to finding out what you don't know

    Many IT leaders don't have visibility into other departments' technology spend. In some cases, the fact that spend is even happening may be a complete surprise.

    Near-term visibility fix ...

    • Ask your finance department for a report on all technology-related spend categories. "Software" is a broad category that finance departments tend to track. Scan the report for items that don't look familiar and confirm the originating department or approver.
    • Check in with the procurement office. See what technology-related contracts they have on record and which departments "own" them. Get copies of those contracts if possible.
    • Contact individual department heads or technology spend approvers. Devise your contact shortlist based on what you already know or learned from finance and procurement. Position your outreach as a discovery process that supports your transparency effort. Avoid coming across as though you're judging their spend or planning to take over their technologies.

    Long-term visibility fix ...

    • Develop your relationships with other business unit leaders. This will help open the lines of communication permanently.
    • Establish a cross-functional central technology office or group. The main task of this unit is to set and manage technology standards organization-wide, including standards for tracking and documenting technology costs and asset lifecycle factors.
    • Ensure IT is formally involved in all technology spend proposals and plans. This gives IT the opportunity to assess them for security compliance, IT network/system interoperability, manageability, and IT support requirements prior to purchase.
    • Ensure IT is notified of all technology financial transactions. This includes contracts, invoices, and payments for all one-time purchases, subscription fees, and maintenance costs.

    Finally, note any potential anomalies in the IT spend period you're looking at

    No two years have the exact same spend patterns. One-time spend for a big capital project, for example, can dramatically alter your overall spend landscape.

    Look for the following anomalies:

    • New or ongoing capital implementations or projects that span more than one fiscal year.
    • Completed projects that have recently transitioned, or are transitioning, from CapEx (decreasing) to OpEx (increasing).
    • A major internal reorganization or merger, acquisition, or divestiture event.
    • Crises, disasters, or other rare emergencies.
    • Changes in IT funding sources (e.g. new or expiring grants).

    These anomalies often explain why IT spend is unusually high in certain areas. There's often a good business reason.

    In many cases, doing a separate spend transparency exercise for these anomalous projects or events can isolate their costs from other spend so their true nature and impact can be better understood.

    2.1 Gather your input data and information

    Duration: Variable

    1. Develop a complete list of the spending and staffing data and information you need to complete the transparency mapping exercise. For each required item, note the following:
      1. Description of data needed (i.e. type, timeframe, and format).
      2. Ideal timeframe or deadline for receipt.
      3. Probable source(s) and contact(s).
      4. Additional facilitation/support required.
      5. Person on your transparency team responsible for obtaining it.
    2. Set up a data and information repository to store all files as soon as they're received. Ideally, you'll want all data/information files to be in an electronic format so that everything can be stored in one place. Avoid paper documents if possible.
    3. Conduct your outreach to obtain the input data and information on your list. This could include delegating it to a subordinate, sending emails, making phone calls, booking meetings, and so on.
    4. Review the data and information received to confirm that it's the right type of data, at the correct level of granularity, for the right timeframe, in a usable format, and is generally accurate.
    5. Enter documentation about your data and information sources in tab "1. Data & Information Sources" in the IT Spend & Staffing Transparency Workbook to reflect what you needed and where you got it in order to make the discovery process easier in the future.
    6. In the same tab in the IT Spend & Staffing Transparency Workbook, document any significant events that occurred that directly or indirectly impacted the selected year's spend values. These could include mergers/acquisitions/divestitures, major reorganizations or changes in leadership, significant shifts in product offerings or strategic direction, large capital projects, legal/regulatory changes, natural disasters, or changes in the economy.

    Download the IT Spend & Staffing Transparency Workbook

    2.1 Gather your input data and information

    InputOutput
    • Knowledge of potential data and information sources
    • List of data and information required to complete the IT spend and staffing transparency exercise
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT financial lead

    Tidy up your data before beginning any spend mapping

    Most organizations aren't immaculate in their tech spend documentation and tracking practices. This creates data rife with gaps that lives in hard-to-use formats.

    The more preparation you do to approach the "good data" intersection point in the diagram below, the easier your mapping effort will be and the more useful and insightful your final findings.

    Venn diagram of good data

    Make your data "un-unique" to reduce the number of line items and make it manageable

    There's a good chance that the IT spend data you've received is in the form of tens of thousands of unique line items. Use the checklist below to help you roll it up.

    Warning: Never overwrite your original data. Insert new columns/rows and put your alternate information in these instead.

    Step 1: Standardize vendor names

    • Start with known large vendors.
    • Select a standard name for the vendor.
    • Brainstorm possible variations on the vendor name, including abbreviations and shortforms.
    • Search for the vendor in your data and document the new standardized vendor name in the appropriate row.
    • Repeat the above for all vendors.
    • Sort the new vendor name column from A-Z. Look for instances where names remain unique or are missing entirely. Reconcile if needed and fill in missing data.

    Step 2: Consolidate vendor spend

    • Sort the new vendor name column from A-Z. Start with vendors that have the most line items.
    • Add together related spend items from a given vendor. Create a new row for the consolidated spend item and flag it as consolidated. Keep the following item types in separate rows:
      • Hardware vs. software spend for the same vendor.
      • Cloud vs. on-premises spend for the same vendor.
    • Repeat the above for all vendors.
    • Consider breaking out separate rows for overly consolidated line items that contain too many different types of IT spend.

    2.2 Clean and organize your data

    Duration: Variable

    1. Check to ensure that you have all data and information required to conduct the IT spend transparency exercise.
    2. Conduct an initial scan to assess the data's current state of hygiene and overall usability. Flag anything of concern and follow up with the data/information provider to fix or reconcile any issues.
    3. Normalize your data to make it easier to work with. This includes selecting data format standards and changing anything that doesn't conform to those standards. This includes items such as date conventions, currencies, and so on.
    4. Standardize product and vendor naming/references throughout to enable searching, sorting, and grouping. For example, Microsoft Office may be variably referred to as "Microsoft", "Office", "Office 365", and "Office365" throughout your data. Pick one descriptor for the product/vendor and replace all related references with that descriptor.
    5. Consolidate and aggregate your data. Ideally, the data you received from your sources has already been simplified; however, you may need to further organize it to reduce the number of individual line items to a more manageable number. The transparency exercise uses relatively high-level categories, so combine data sets and aggregate where feasible without losing appropriate granularity.
    6. Archive any original copies of files that have been modified or replaced with consolidated/aggregated versions for future reference if needed.

    2.2 Clean and organize your data

    InputOutput
    • Data and information files
    • A normalized set of data and information for completing the IT spend and staffing transparency exercise
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT financial lead

    Select IT spend "buckets" for the CXO Business View as your final preparatory step

    Every organization has both industry-agnostic and industry-specific lines of business that are the direct beneficiaries of IT spend.

    Common shared business functions:

    • Human resources.
    • Finance and accounting.
    • Sales/customer service.
    • Marketing and advertising.
    • Legal services and regulatory compliance.
    • Information technology.

    It may seem odd to see IT on the business functions list since the purpose of this exercise is to map IT spend. For business view purposes, IT spend refers to what IT spends on itself to support its own internal operations.

    Examples of industry-specific functions:

    • Manufacturing: Product research and development; production operations; supply chain management.
    • Retail banking: Core banking services; loan, mortgage and credit services; investment and wealth management services.
    • Hospitals: Patient intake and admissions; patient diagnosis; patient treatment; patient recovery and ongoing care.
    • Insurance: Actuarial analysis; policy creation; underwriting; claims processing.

    See the Appendix of this blueprint for definitions of shared business functions plus sample industry-specific business view categories.

    Define your CXO Business View categories to set yourself up well for future ITFM analyses

    The CXO Business View buckets you set up today are tools you can and should reuse in your overall approach to ITFM governance. Spend some time to get them right.

    Stay high-level

    Getting too granular invites administrative headaches and overhead. Keep things high-level and general:

    • Limit the number of direct stakeholders represented: This will reduce communication overhead and ensure you're dealing only with people who have real decision-making authority.
    • Look to your org. chart: Note the departments or business units listed across the top of the chart that have one executive or top-ranking senior manager accountable for them. These business units often translate as-is into a tidy CXO Business View category.

    Limit your number of buckets

    Tracking IT spend across more than 8-10 shared and industry-specific business categories is impractical.

    • Simplify your options: Too many buckets gets confusing and invites time-wasting doubt.
    • Reduce future rework: Business structures will change, which means recategorizing spend data. Using a forklift is a lot easier than using tweezers.
    • Stick to major business units: Create separate "Business Other" and "Industry Other" catch-all categories to track IT spend for smaller functions that fall outside of major business unit structures.

    Stay high-level with the CXO Business View

    Be clear on what's in and what's out of your categories to keep everyone on the same page

    Clear lines of demarcation between CXO Business View categories reduce confusion, doubt, and wheel-reinvention when deciding where to allocate IT spend.

    Ensure clear boundaries

    Mutual exclusivity is key when defining categories in any taxonomical structure.

    • Avoid overlaps: Each high-level business function category should have few or no core function or process overlaps with another business function category. Aim for clear vertical separation.
    • Be encompassing: When defining a category, list all the business capabilities and sub-functions included in that category. For example, if defining the finance and accounting function, remember to specify its less obvious accountabilities, like enterprise asset management if appropriate.

    Identify exclusions

    Listing what's out can be just as informative and clarifying as listing what's in.

    • Beware odd bedfellows: Minor business groups are often tucked under a bigger organizational entity even though the two use different processes and technologies. Separate them if appropriate and state this exclusion in the bigger entity's definition.
    • Draw a line: If a process crosses business function categories, state which sub-steps are out of scope.
    • Document your decisions: This helps ensure you allocate IT spend the same way every time.

    Clear lines of demarcation between CXO Business View categories

    2.3 Build your industry-specific business views

    Duration: Two hours

    1. Confirm your list of high-level shared business services (human resources, finance and accounting, etc.) as provided in Info-Tech's IT Spend & Staffing Transparency Workbook. Rename them if needed to match the nomenclature used in your organization.
    2. Set and define your additional list of high-level, industry-specific business categories that are unique to or define your industry. See the slides immediately following this exercise for tips on developing these categories, as well as the appendix of this blueprint for some examples of industry-specific categories and definitions.
    3. Create "Business Other" and "Industry Other" categories to capture minor groups and activities supported by IT that fall beyond the major shared and industry-specific business functions you've shortlisted. Briefly note the business groups/activities that fall under these categories.
    4. Edit/enter your shared and industry-specific business function categories and their definitions on tab "2. Business View Definitions" in the IT Spend & Staffing Transparency Workbook.

    Download the IT Spend & Staffing Transparency Workbook

    2.3 Build your industry-specific business views

    InputOutput
    • Knowledge about your organization's structure and business functions/units
    • A list of major shared business functions and industry-specific business functions/capabilities that are defining of your industry
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT financial lead

    Lock in key pieces of baseline data

    Calculating core IT spend metrics relies on a few key numbers. Settle these first based on known data before diving into detailed mapping.

    These baseline data will allow you to calculate high-level metrics like IT spend as a percent of revenue and year-over-year percent change in IT spend, as well as more granular metrics like IT staff spend per employee for a specific IT service.

    Baseline data checklist

    • IT spend analysis period (date range).
    • Currency used.
    • Organizational revenue.
    • Organizational OpEx.
    • Total current year IT spend.
    • Total current year IT CapEx and IT OpEx.
    • Total previous-year IT spend.
    • Total projected next-year IT spend.
    • Number of organizational employees.
    • Number of IT employees.

    You may have discovered some things you didn't know about during the mapping process. Revisit your baseline data when your mapping is complete and make adjustments where needed.

    2.4 Enter your baseline data

    Duration: One hour

    1. Navigate to tab "3. Baseline Data" in the IT Spend & Staffing Transparency Workbook. Using the data you've gathered, enter the following information to set your baseline data for future calculations:
      1. Your IT spend analysis date range. This can be concrete dates, a fiscal year abbreviation, etc.
      2. The currency you will be using throughout the workbook. It's important that all monetary values entered are in the same currency.
      3. Your organization's total revenue and total operating expenditure (OpEx) for the spend analysis data range you've specified. Revenue includes all sources of funding/income.
      4. Your total IT OpEx and total IT capital expenditure (CapEx). The workbook will add your OpEx and CapEx values for you to arrive at a total IT spend value.
      5. Total IT spend for the year prior to the current IT spend analysis date range, as well as anticipated total IT spend for the year following.
      6. Total IT staff spend (salaries, benefits, training, travel, and fees for employees and contractors in a staff augmentation role) for the spend analysis date range.
      7. The total number of organizational employees and total number of IT employees. These are typically full-time equivalent (FTE) values and include contractors in a staff augmentation role.
    2. Make note of any issues that have influenced the values you entered.

    Download the IT Spend & Staffing Transparency Workbook

    2.4 Enter your baseline data

    InputOutput
    • Cleaned and organized spend and staffing data and information
    • Finalized baseline data for deriving spend metrics
    MaterialsParticipants
    • IT Spend & Staffing Transparency Workbook
    • Head of IT
    • IT financial lead

    Phase 2: Gather required data

    Achievement summary

    You've now completed all preparation steps for your IT spend transparency journey. You have:

    • Gathered your IT spend and staffing data and information.
    • Cleaned and organized your data to streamline mapping.
    • Identified your baseline data points.

    "As an IT person, you're not speaking the same language at all as the accounting department. There's almost always a session of education that's required first."
    - Angie Reynolds, Principal Research Director, ITFM Practice, Info-Tech Research Group

    Phase 3

    Map Your IT Staff Spend

    This phase will walk you through the following activities:

    • Mapping your IT staff spend across the four views of the ITFM Cost Model
    • Validating your mapping

    This phase involves the following participants:

    • Head of IT
    • IT financial lead
    • Other members of IT management

    Phase 3: Map your IT staff spend

    Allocate your workforce costs across the four views.

    Now it's time to tackle the first part of your hands-on spend mapping effort, namely IT staff spend. In this phase you will:

    • Allocate your IT staff spend across the four views of the ITFM Cost Model.
    • Validate your mapping to ensure that it's accurate and complete.

    "We're working towards the truth. We know the answer, but it's how to get it. Take Data & BI. For some organizations, four FTEs is too many. Are these people really doing Data & BI? Look at the big picture and see if something's missing."
    - Rex Ding, Research Specialist, ITFM Practice, Info-Tech Research Group

    Staffing costs comprise a significant percent of OpEx

    Staffing is the first thing that comes to mind when it comes to spend. Intentionally bring it out of the shadows to promote constructive conversations.

    • Total staffing costs stand out from other IT spend line items. This is because they're comparatively large, often comprising 30-50% of total IT costs.
    • Standing out comes at a price. Staff costs are where business leadership looks first if they want cuts. If IT leadership doesn't bring forward ways to cut staffing costs as part of a broader cost-cutting mandate, it will be seen as ignorant of business priorities at best and outright insubordinate at worst.
    • Staffing costs as a percentage of total costs vary between IT functions. On the business side, there's a lack of understanding about what functions IT staff serve and support and the real-world costs of obtaining (and keeping) needed IT skills. For example, IT security staffing costs as a percentage of that service's total OpEx will likely be higher than service desk staff given the scarcity and higher market value of the former. Trimming 20% of IT staffing costs from the IT security function has much different implications than cutting 20% of service desk staffing costs.

    Staffing spend transparency can do a lot to change the conversation from one where the business thinks that IT management is just being self-protecting to one where they know that IT management is actually protecting the business.

    Demonstrating the legitimate reasons behind IT staff spend is critical in both rationalizing past and current spend decisions as well as informing future decisions.

    Info-Tech recommends that you map your IT staffing costs before all other IT costs

    Mapping your IT staffing spend first is a good idea because:

    • Staffing costs are usually documented more clearly, simply, and accurately than other IT costs.
    • Gathering all your IT staffing data is usually a one-stop shop (i.e. the HR department).
    • The comparative straightforwardness of mapping staff costs compared to other IT costs gives you the opportunity to:
      • Get familiar with the ITFM Cost Model views and categories.
      • Get the hang of the hands-on mapping process.
      • Determine the kinds of speed bumps and questions you'll encounter down the road when you tackle the more complicated mappings.

    "Some companies will say software developer. Others say application development specialist or engineer. What are these things? You have to have conversations ..."
    - Rex Ding, Research Specialist, ITFM Practice, Info-Tech Research Group

    Understand the CFO Expense View: "Workforce" categories defined

    For the staffing spend mapping exercise, we're defining the Workforce category here and will offer Vendor category definitions in the vendor spend mapping exercise later.

    Workforce: The total costs of employing labor in the IT organization. This includes all salary/wages, benefits, travel/training, dues and memberships, and contractor pay. Managed services expenses associated with an external service provider should be excluded from Workforce and included in Contract Services.

    Employee: A person employed by the IT organization on a permanent full-time or part-time basis. Costs include salary, benefits, training, travel and expenses, and professional dues and memberships. These relationships are managed under human resources and the bulk of spend transactions via payroll processes.

    Contractor: A person serving in a non-permanent staff augmentation role. These relationships are typically managed under procurement or finance and spend transactions handled via invoicing and accounts payable processes. Labor costs associated with an external service provider are excluded.

    CFO Expense View

    Mapping your IT staff across the CFO Expense View is relatively cut-and-dried

    The CFO Expense View is the most straightforward in terms of mapping IT staffing costs as it's made up of only two main categories: Workforce and Vendor.

    In the CFO Expense View, all IT spend on staffing is allocated to the Workforce bucket under either Employee or Contractor.

    What constitutes a Contractor can be confusing given increased use of long-term labor augmentation strategies, so being absolutely clear about this is imperative. For spend mapping purposes:

    • Any staff members under independent contract where individuals are paid directly by your organization as opposed to indirectly via a service provider (e.g. staffing firm) are considered Workforce > Contractor.
    • Any circumstances where you pay a third-party organization for labor is slotted under Vendor > Contract Services.

    CFO Expense View

    Understand the CIO Service View: Categories defined

    We've provided definitions for the major categories that require clarification.

    Applications Development: Purchase/development, testing, and deployment of application projects. Includes internally developed or packaged solutions.

    Applications Maintenance: Software maintenance fees or maintaining current application functionality along with minor enhancements.

    Hosting & Networks: Compute, storage, and network functionality for running/hosting applications and providing communications/connectivity for the organization.

    End User: Procurement, provision, management, and maintenance (break/fix) of end-user devices (desktop, laptops, tablets, peripherals, and phones) as well as purchase/support and use of productivity software on these devices. The IT service desk is included here as well.

    PPM & Projects: People, processes, and technologies dedicated to the management of IT projects and the IT project portfolio as a whole.

    Data & BI: Strategy and oversight of the technology used to support data warehousing, business intelligence, and analytics.

    IT Management: Senior IT leadership, IT finance, IT strategy and governance, enterprise architecture, process management, vendor management, talent management, and program and portfolio management oversight.

    Security: Information security strategy and oversight, practices, procedures, compliance, and risk mitigation to protect and prevent unauthorized access to organizational data and technology assets.

    CIO Service View

    Mapping your IT staff across the CIO Service View is a slightly harder exercise

    The complexity of mapping staff across this view depends on how your IT department is organized and the degree of role specialization vs. generalization.

    The CIO Service View mirrors how many IT departments are organized into teams or work groups. However, some partial percentage-based allocations are probably required, especially for smaller IT units with more generalized, cross-functional roles. For example:

    • A systems administrator's costs may need to be allocated 80% to Hosting & Networks and 20% to Security.
    • An app development team lead may spend about 40% of their time doing hands-on Development work and the other 60% on project management (i.e. PPM & Projects).

    Info-Tech has found that allocating staffing costs for Data & BI raises the most doubts as it can be very entangled with Applications and other spend. Do the best you can.

    Understand the CXO Expense View: Categories defined

    Expand shared services and industry function categories as suits your organization.

    Industry Functions: As listed and defined by you for your specific industry.

    Human Resources: IT staff and specific application functionality in support of organizational human resource management.

    Finance & Accounting: IT staff and specific application functionality in support of corporate finance and accounting.

    Shared Services Other: IT staff and specific application functionality in support of all other shared enterprise functions.

    Information Technology: IT staff and specific application functionality in support of IT performing its own internal IT operations functions.

    Industry Other: IT staff and specific application functionality in support of all other industry-specific functions.

    CXO Expense View

    Mapping your IT staff across the CXO Business View warrants the most time

    This view is probably the most difficult as many IT department roles are set up according to lines of IT service, not lines of business. Prepare to do a little math.

    The CXO Expense View also requires percentage-based splitting of role spend, but to a greater extent.

    • Start by mapping staff cost allocations for those roles that are at, or close to, 100% dedicated to a specific business function (if any).
    • For IT roles that support organization-wide or multi-department functions, knowing the percent of employees that work in each relevant business unit and parceling IT staff spend by those same percentages may be easiest. For example, a general systems administrator's costs could be allocated as 4% to HR, 2% to finance, 25% to sales, 20% to production operations, and so on based on the percentage of employees in each of the supported business units.

    Take a minute to figure out how you plan to map IT's indirect CXO Business View costs

    Direct IT costs are those that are dedicated to a specific business unit or user group, such a marketing campaign management app, specialized devices used by a specific subset of workers in the field, or a business analyst embedded full-time in a sales organization.

    VS

    Indirect IT costs are pretty much everything else that's shared broadly across the organization and can't be tied to just one stakeholder or user group, such as network infrastructure, the service desk, and office productivity apps. These costs must be fairly and evenly distributed.

    No indirect mapping method is perfect, but here's a suggestion:

    • Take the respective headcount of all business functions sharing the IT resource/service in question.
    • Calculate each business function's staff as a percentage of all organizational staff.
    • Use this same percent of staff to calculate and allocate a business function's indirect staff and indirect vendor costs.

    "There is always a conversation about indirect allocations. There's never been an organization I've heard of or worked for which has been able to allocate every technology cost directly to a business consumption or business unit."
    Monica Braun, ITFM Research Director, Info-Tech Research Group

    Example:

    • A company of 560 employees has six HR staff (about 1.1% of total staff).
    • Network admin staffing costs $143,000, so $1,573 (1.1%) would be allocated to HR.
    • Internet services cost $40,000, so $440 (1.1%) would be allocated to HR.

    Some indirect costs are shared by multiple business functions, but not all. In these cases, exclude non-participating business functions from the total number of organizational employees and re-calculate a new percent of staff for each participating business function.

    Know where you're most likely to encounter direct vs. indirect IT staffing costs

    Info-Tech has found that direct vs. indirect staffing spend is more commonly found in some areas than others. Use this insight to focus your work.

    Direct IT staffing spend

    Definition: Individuals or teams whose total time is formally dedicated to the support of one business unit/function.

    • Data & BI (direct to one non-IT unit)
    • IT Management (direct to IT)
      • Service planning & Architecture
      • Strategy & Governance
      • Financial Management
      • People & Resources

    Hybrid IT staffing spend

    Definition: Teams with a percent of time or entire FTEs formally dedicated to one business unit/function while the remainder of the time or team is generalized.

    • Applications
      • Applications Development
      • Applications Maintenance
    • IT Management
      • PPM & Projects

    Indirect IT staffing spend

    Definition: Individuals or teams whose total time is generalized to the support of multiple or all business units or functions.

    • Infrastructure
      • Hosting & Networks
      • End Users
    • Security

    Indirect staff spend only comes into play in the CXO Business View. Thoroughly map the CIO Service View first and leverage its outcomes to inform your allocations to individual business and industry functions.

    Understand the CEO Innovation View: Categories defined

    Be particularly clear on your understanding of the difference between business growth and business innovation.

    Business Innovation: IT spend/ activities focused on the development of new business capability, new products and services, and/or introduction of existing products/ services into new markets. It does not include expansion or update of existing capabilities.

    Business Growth: IT spend/activities focused on the expansion, scaling, or modernization of an existing business capability, product/service, or market. This is specifically related to growth within a current market.

    Keep the Lights On: IT spend/activities focused on keeping the organization running on a day-to-day basis. This includes all activities used to ensure the smooth operation of business functions and overall business continuity.

    CEO Innovation View

    Important Note

    Info-Tech analysts often skip mapping staff for the CEO Innovation View when delivering the IT Spend & Staffing Benchmarking Service.

    This is because, for many organizations, either most IT staff spend is allocated to Keep the Lights On or any IT staff allocation to Business Growth and Business Innovation activities is untracked, undocumented, and difficult to parse out.

    Mapping your IT staff across the CEO Innovation View is largely straightforward

    Clear divisions between CapEx and OpEx can be your friend when it comes to mapping this view. Focus your efforts on parsing growth vs. innovation.

    • The majority of IT staff costs are OpEx: And the majority of OpEx will land in the Keep the Lights On category. This is a comparatively simple mapping exercise. Know in advance that this will be the largest of the three buckets in the CEO Innovation View by a very wide margin, so don't be surprised if over 90% of IT staffing costs end up here.
    • Most of the remaining IT staff costs will be tied to capital projects and investments: This means that they will land in either Business Growth or Business Innovation, with the majority typically sitting under Business Growth. Again, don't be surprised if the Business Innovation category holds less than 3% of total IT staffing spend.

    Take your IT staff spend mapping to the next level with detailed time and headcount data

    Overlay a broader assessment of your IT staff

    Info-Tech's IT Staffing Assessment diagnostic can expand your view of what's really happening on the staffing front.

    • Learn your true distribution of IT staff across the same IT services listed in the ITFM Cost Model's CIO Service View.
    • Get other metrics such as degrees of seniority, manager span of control, and IT staff perception of their effectiveness.

    Take action

    1. Set it up: Contact your Info-Tech Account Manager and sign your team up to take the diagnostic.
    2. Assess the findings: Review the output report, specifically how your staff says they spend their time versus what your organization chart's been telling you.
    3. Apply the percentages: Use the FTE allocation percentages in the output report to guide how you distribute your staff spend across the CIO Service View.
    4. Expand your analysis: Use your staff's feedback around perceived aids and obstacles to effectiveness in order to inform and defend your recommendations and decisions on how IT funds should be spent.

    Consider these final tips for mapping your IT staffing costs before diving in

    Mapping your IT staffing costs definitely requires some work. However, knowing the common stumbling blocks and being systematic will yield the best results.

    Approach: Be efficient to be effective

    Start with what you know best: Map the CFO Expense View first to plug in information you already have. Next, map the CIO Service View since it's most aligned to your organization chart.

    Keep a list of questions: You'll need to seek clarifications. Note your questions, but don't reach out until you've done a first pass at the mapping - don't annoy people with a barrage of questions.

    Delegate: Your managers and leads have a more accurate view of exactly what their staff do. Consider delegating the CIO Service View and CXO Business View to them or turn the mapping exercise into a series of collaborative leadership team activities.

    Biggest challenge: Role/title ambiguity

    • The Business Analyst role is often vague. These staffers are often jacks-of-all-trades in IT. You probably can't rely on a generic job description to figure out exactly which services and business functions BAs are spending their time on. Plan to ask a lot of questions.
    • Other role titles may be completely inaccurate. Is the word "system" referring to apps, infrastructure, or both? Is the user experience specialist actually a programmer? Is a manager really managing anything? Know your organization's tendencies around meaningful job titling and set your workload expectations accordingly.

    Key step - validate! If you see services or functions with low or no allocation, or something just doesn't look right, investigate. Someone's doing that work - take the time to figure out who.

    3.1 Map your IT staffing costs

    Duration: Variable

    1. Navigate to tab "4. Staff Spend Mapping" in the IT Spend & Staffing Transparency Workbook. On one row, enter the name of an individual or group to be mapped, their role/title (if an individual), and their total known cost as per your collected data.
    2. Under the CFO Expense View (columns F-G), enter the number of FTEs represented by the individual or group named and their status (i.e. Employee or Contractor).
    3. Under the CIO Service View (columns L-AF), allocate the individual or group's spend as a percentage across all service categories. If the allocation for a service is 0%, leave the cell blank.
    4. Under the CXO Business View (columns AI-BA), allocate the individual or group's spend as a percentage across all business function and industry-specific function categories. If the allocation for a function is 0%, leave the cell blank.
    5. Under the CEO Innovation View (columns BD-BH), allocate the individual or group's spend as a percentage across Business Innovation, Business Growth, and Keep the Lights On. If the allocation for an investment type is 0%, leave the cell blank.
    6. Repeat steps 2 to 5 for all other IT staff (as individuals or groups).
    7. Follow up on and resolve any additional inquiries you need to make based on questions that arose during the mapping process.
    8. Validate your mapping by:
      1. Identifying spend categories that have zero staff spend allocation. Additional percentage allocation splits for certain roles are probably required.
      2. Investigating spend categories that seem to have very high or very low spend allocations based on a gut check. Again, double-check your percentage allocation splits.
      3. Ensuring your amounts add up to your previously calculated total IT staff spend. A balance tracker is provided on tab "6. Tracker & General Outputs" of the IT Spend & Staffing Transparency Workbook.

    Download the IT Spend & Staffing Transparency Workbook

    3.1 Map your staffing costs

    Input Output
    • Cleaned and organized IT staffing data and information
    • Finalized mapping of IT staff spend across the four views of the ITFM Cost Model
    Materials Participants
    • IT Spend & Staffing Transparency Workbook
    • Head of IT
    • IT financial lead
    • Other IT management as required

    Phase 3: Map your IT staff spend

    Achievement summary

    You've now completed your IT staff spend mapping. You have:

    • Allocated your IT staff spend across the four views of the ITFM Cost Model.
    • Validated your mapping to ensure it's accurate and complete.

    "Some want to allocate everybody to IT, but that's not how we do it. [In one CXO Business View mapping], a client allocated all their sand network people to the IT department. At the end of the process, the IT department itself accounted for 20% of total IT spend. We went back and reallocated those indirect staff costs across the business."
    - Kennedy Confurius, Research Analyst, ITFM Practice, Info-Tech Research Group

    Phase 4

    Map Your IT Vendor Spend

    This phase will walk you through the following activities:

    • Mapping your IT vendor spend across the four views of the ITFM Cost Model
    • Validating your mapping

    This phase involves the following participants:

    • Head of IT
    • IT financial lead
    • Other members of IT management

    Phase 4: Map your IT vendor spend

    Allocate your vendor costs across the four views.

    Now you're ready to take on the second part of your spend mapping, namely IT vendor spend. In this phase you will:

    • Allocate your IT vendor spend across the four views of the ITFM Cost Model.
    • Validate your mapping to ensure it's accurate and complete.

    "[One CIO] said that all technology spend runs through their IT group. But they didn't have hardware in their financial data file - no cellphones or laptops, no network or server expenses. They thought they had everything, but they didn't know what they didn't have. Assume it's out there somewhere."
    - Kennedy Confurius, Research Analyst, ITFM Practice, Info-Tech Research Group

    Tackle the non-staff side of IT spend

    Info-Tech analysts find that mapping the IT vendor spend data is harder because the source data is often scattered and not meaningfully labeled.

    • Be patient and systematic. As with mapping your IT staff spend data, the more organized you are from the outset and the more thoroughly you've prepared your data, the more straightforward the exercise will be.
      • Did you "un-unique" your data? If not, do that now before attempting mapping.
    • Get comfortable with making some assumptions. You need to get through the exercise, so sometimes making a best guess and entering a value is better than diving down a rabbit hole. Your gut is probably right anyway. But only make assumptions around smaller line items that don't have a massive impact on your final numbers. Never assume anything when it comes to big-ticket items.
    • Curb your urge to fix. Some of your buckets will start to get big, while others will barely budge. This is normal ... and interesting! Resist the urge to "balance" staffing spend in a bucket by loading it with apps and hardware for fear that the staffing spend looks too high and will be questioned. This exercise is about how things are, not how they look.

    "A common financial data problem is no vendor names. I've noticed that, even if the vendor name is there, there are no descriptors. You cannot actually tell what type of service it is. Data security? Infrastructure? Networking? Ask yourself 'What did we purchase and what does it do?'"
    - Aman Kumari, Research Specialist, ITFM Practice, Info-Tech Research Group

    Understand the CFO Expense View: Vendor categories defined

    These are the final definitions for this view. See the previous section for CFO Expense View > Workforce definitions used in the IT staffing cost mapping exercise.

    Vendor: Provider of a good or service in exchange for payment.

    Hardware: Costs of procuring, maintaining, and managing all IT hardware, including end-user devices, data center and networking equipment, cabling, and hybrid appliances for both on-premises and cloud-based providers.

    Software: Costs for all software (applications, database, middleware, utilities, tools) used across the organization. This includes purchase, maintenance, and licensing costs.

    Contract Services: Costs for all third-party services including managed service providers, consultants, and advisory services.

    Cloud: Offsite hosting and delivery of an on-demand software or hardware computing function by a third-party provider, often on a subscription-type basis.

    On-Prem: On-site hosting and delivery of a software or hardware computing function, often requiring upfront purchase cost and subsequent maintenance costs.

    Managed Services: Costs for outsourcing the provision and maintenance of a technical process or function.

    Consulting & Advisory: Costs for the third-party provision of professional or technical advice and expertise.

    CFO Expense View

    Know if a technology is cloud-based or on-premises before mapping

    A technology may be one, the other, or both if multiple versions are in play. Financial records rarely indicate which, but on-premises vs. cloud matters in your planning.

    On-Premises

    • Check your CapEx. Any net-new purchases of software or hardware for the IT spend analysis year in question should appear on the CapEx side of the equation. After the first year of implementation/rollout, all ongoing maintenance and management costs should be found under OpEx.
    • Focus on real in-year costs.
      • Don't try to map depreciation or amortization associated with CapEX. Instead, map any upfront purchase costs that occurred in the relevant IT spend analysis year.
      • Map any OpEX costs incurred from maintenance and management. For multi-year maintenance contracts, apply the percentage of fees paid for the relevant year.

    Cloud

    • Check your OpEx. Cloud services are typically fee-based, which means the costs often come in the form of regularly timed bills akin to a subscription.
    • Differentiate new services from older ones. If the cloud service was initiated during the IT spend analysis year in question, there may be some one-time service setup and initiation fees that were legitimately slotted under CapEx. If the cloud service isn't new, then all costs should be OpEx.

    Vendors are increasingly "retiring" on-premises software products. This means an older version may be on-prem, a newer one cloud, and you may have both in play.

    Mapping built-in data, analytics, and security functions can raise doubts

    With so many apps focused on capturing, manipulating, and protecting data, built-in analytics, reporting, and security functions blur CIO Service View bucket boundaries.

    Applications vs. Data & BI

    • In recent years, much more powerful analysis and report-generation features have been added to core enterprise applications. If analytics and reporting functionality is an extended feature of a database-driven application, such as ERP or CRM, then map it to one of the Applications buckets.
    • If the sole purpose of the application is to store, manipulate, query, analyze, and/or visualize data, then log its costs under Data & BI. These would include technologies such as data warehouses, marts, cubes, and lakes; desktop data visualization tools; enterprise business intelligence platforms; and specialized reporting tools.

    Applications vs. Security

    • A similar conundrum exists for Security. So many tools today have built-in security functionality that cannot be unintegrated from the app they support. Don't even try to isolate native security functionality for spend mapping purposes - map it to Applications.
    • If the tool is a special-purpose, standalone security tool or security platform, then map it to Security. These tools usually sit within, and are used/managed by, IT. They include firewalls; antivirus/anti-malware; intrusion prevention, detection and response; access control and authentication; encryption; and penetration testing and vulnerability assessment.

    Putting spend in the right bucket does matter. However, if uncertainty persists, err on the side of consistency. For most organizations Applications Maintenance does end up being the biggest bucket.

    When mapping the CXO Business View, do the biggest vendors first

    Below is a suggested order of operations to clear through the majority of vendor spend as early as possible in the process.

    1 Sort high to low Sort your list of vendor spend from highest to lowest. Your top 20 vendors should constitute most of the spend.
    2 Map multi-department enterprise apps Flag your top apps vendors that have presence in most or all of your business units. Map these first. These tend to be enterprise-level business apps "owned" by core business functions but used broadly across the organization such as enterprise resource planning (ERP), customer relationship management (CRM), and people management systems.
    3 Map end-user spend Identify top vendors of general end-user technologies like office productivity apps, desktop hardware, and IT service desk tools. Allocate percentages according to your selected indirect spend mapping method.
    4 Map core infrastructure spend Map the behind-the-scenes network, telecom, and data center technologies that underpin IT, plus any infrastructure managed services. Again, apply your selected indirect spend mapping method.
    5 Map business-unit specific technologies This is the spend that's often incurred by just one department. This may also be technology spend that's out in the business, not in IT proper. Map it to the right business function or put it in Business Other or Industry Other if the business function doesn't have its own bucket.
    6 Map the miscellaneous Only smaller spend items likely remain at this point. When in doubt, map them to either Business Other or Industry Other.

    After mapping the CXO Business View, your Other buckets might be getting a bit big

    It's common for the Business Other and Industry Other categories to be quite large, and even the largest. This is okay, but plan to dig deeper and understand why.

    Remember "when in doubt, map to either the Business Other or Industry Other category"? Know what large Other buckets might really be telling you. After your first pass at mapping the CXO Business View, review Business Other and Industry Other if either is more than about 10% of your total spend.
    Diversification: Your organization has a wide array of business functions and/or associated staff that exist outside the core business and industry-specific categories selected. Are there minor business functions that can reasonably be included with the core categories identified? If not, don't force it. Better to keep your core buckets clean and uncomplicated.
    Non-core monolith: There's a significant technology installation outside the core that's associated with a comparatively minor business function. Is there a business function incurring substantial technology spend that should probably be broken out on its own and added to the core? If so, do it. Spend is unlikely to get smaller as the organization grows, so best to shine a light on it now.
    Shadow IT: There's significant technology spend in several areas of the organization that is unowned, unmanaged, or serving an unknown purpose as far as IT is concerned. Is a lot of the spend non-IT technology in the business? If yes, flag it and plan to learn more. It's likely that technologies living elsewhere in the organization will become IT concerns eventually. Better to be ready than to be surprised.

    As with staffing, CapEx vs. OpEx helps map the CEO Innovation View

    Mapping to this view was optional for IT staffing. For hard technology vendor spend, mapping this view is key. Use the guidance below to determine what goes where.

    Keep the Lights On
    Spend usually triggered by a service deck ticket or work order, not a formal project. Includes:

    • Daily maintenance and management.
    • Repair or upgrade of existing technology to preserve business function/continuity.
    • Purchase of "commodity" technology, such as standard-issue laptops and licenses for office productivity software.

    Business Growth
    Spend usually in the context of a formal project under a CapEx umbrella. Includes:

    • Technology spend that directly supports business expansion of an existing product or service and/or market.
    • Modernizing existing technology.
    • Extension of, or investment in, existing infrastructure to ensure reliability and availability in response to growth-driven scaling of headcount and utilization.

    Business Innovation
    Spend is always in the context of a formal project and should be 100% CapEx in the first year after purchase. Includes:

    • Technology spend that directly supports development and rollout of new products or service and/or entry into new markets.
    • Use of existing technology or investment in net-new technology in direct support of a new business initiative, direction, or requirement.

    In many organizations, most technology spend will be allocated to Keep the Lights On. This is normal but should generate conversations with the business about redirecting funds to growth and innovation.

    Remember these top tips when mapping your technology vendor spend

    The benefits of having tidy and organized data can't be overstated, as your source data will be in a more varied state for this phase of the mapping than with IT staffing data.

    Approach: Move from macro to micro

    • Start with the big enterprise apps: These will probably be in the top five of your vendor spend list and will likely have good info about how and by whom they're used. Get them out of the way.
    • Clear out shared technologies. This will feature infrastructure and operations plus office productivity and communications spend. Portioning spend by department headcount for the CXO Business View is the hardest part. Get this forklift task out of the way too.
    • Don't sweat the small stuff. Wasting hours chasing the details of a $500 line item isn't worth it when you have five-, six-, or even seven-figure line items to map.

    Biggest challenge: Poor vendor labeling

    • Vendor labels are often an inconsistent mess or missing entirely. Standardize and apply consistent vendor labels throughout your data so that you can aggregate your data into a workable form.
    • Spend transactions with the same vendor can be scattered all over the place in your general ledger. Take the time to "un-unique" your data to save yourself tremendous grief later on.
    • Start new go-forward labeling habits. Talk to finance about your new list of vendor naming standards and tagging spend as on-prem or cloud. Getting their cooperation with these are major wins.

    Key step - validate! If you see services or functions with low or no allocation, or something just doesn't look right, investigate. There's probably a technology out there in the business doing that work.

    4.1 Map your IT vendor spend

    Duration: Variable

    1. Navigate to tab "5. Vendor Spend Mapping" in the IT Spend & Staffing Transparency Workbook. On one row, enter a spend line item (vendor, product, etc.), a brief description, and the known amount of spend.
    2. Under the CFO Expense View (columns F-P), allocate the line item's spend as a percentage across all asset-class categories. If the allocation for a line item is 0%, leave the cell blank.
    3. Under the CIO Service View (columns S-AM), allocate the line item's spend as a percentage across all service categories. If the allocation for a service is 0%, leave the cell blank.
    4. Under the CXO Business View (columns AP-BH), allocate the line item's spend as a percentage across all business function and industry-specific function categories. If the allocation for a function is 0%, leave the cell blank.
    5. Under the CEO Innovation View (columns BK-BO), allocate the line item's spend as a percentage across Business Innovation, Business Growth, and Keep the Lights On. If the allocation for an investment type is 0%, leave the cell blank.
    6. Repeat steps 2-5 for all spend line items.
    7. Follow up on and resolve any additional inquiries you need to make based on questions that arose during the mapping process.
    8. Validate your mapping by:
      1. Ensuring your amounts add up to your previously calculated total IT vendor spend. A balance tracker is provided on tab "6. Tracker & General Outputs" of the IT Spend & Staffing Transparency Workbook.
      2. Identifying spend categories that have zero spend allocation. Additional percentage allocation splits for certain line items are probably required.
      3. Investigating spend categories that seem to have very high or very low spend allocations based on a gut check. Again, double-check your percentage allocation splits.

    Download the IT Spend & Staffing Transparency Workbook

    4.1 Map your IT vendor spend

    InputOutput
    • Cleaned and organized IT vendor spend data and information
    • Finalized mapping of IT vendor spend across the four views of the IT Cost Model
    MaterialsParticipants
    • IT Spend & Staffing Transparency Workbook
    • Head of IT
    • IT financial lead
    • Other IT management as required

    Phase 4: Map your IT vendor spend

    Achievement summary

    You've now completed your IT vendor spend mapping. You have:

    • Allocated your IT vendor spend across the four views of the ITFM Cost Model.
    • Validated your mapping to ensure it's accurate and complete.

    "A lot of organizations log their spending by vendor name with no description of the goods or services they actually purchased from the vendor. It could be hardware, software, consulting services ... anything. Having a clear understanding of what's really in there is an essential aspect of the spend conversation."
    - Rex Ding, Research Specialist, ITFM Practice, Info-Tech Research Group

    Phase 5

    Identify Implications for IT

    This phase will walk you through the following activities:

    • Analyzing the results of your IT staff and vendor spend mapping across the four views of the ITFM Cost Model
    • Preparing an executive presentation of your transparent IT spend

    This phase involves the following participants:

    • Head of IT
    • IT financial lead
    • Other members of IT management

    Phase 5: Identify implications for IT

    Analyze and communicate.

    You're now nearing the end of the first leg in your IT spend transparency journey. In this phase you will:

    • Analyze the results of your IT spend mapping process.
    • Revisit your transparency objectives.
    • Prepare an executive presentation so you can share findings with other leaders in your organization.

    "Don't plug in numbers just to make yourself look good or please someone else. The only way to improve is to look at real life."
    - Monica Braun, Research Director, ITFM Practice, Info-Tech Research Group

    You've mapped your IT spend data. Now what?

    With mapped data in hand, now you can start to tell IT's spend story with stakeholders in the business.

    Mapping your IT spend is a lot of work, but what you've achieved is impressive (applause!) as well as essential for growing your ITFM maturity. Now put your hard work to work.

    • Consider benchmarking. While not covered in-depth here, benchmarking against yourself in a year-over-year approach as well as against external industry peers are very useful exercises in your technology spend analysis.
    • Review your numbers and graphs. Your IT Spend & Staffing Transparency Workbook contains a series of data visualizations that will help you see the big picture as well as relationships between spend categories.
    • Note the very big numbers, the very small numbers, and the things that just look odd. You'll want to investigate and understand these further.
    • Prepare to communicate. Facilitating conversations with stakeholders in the business is the immediate objective of the IT spend and staffing transparency exercise. Decide where and with whom you want to start dialogue.

    The slides that follow show sample data summaries and visualizations generated in the IT Spend & Staffing Transparency Workbook. We'll take a look at the metrics, tables, and graphs you now have available to you post-mapping and how you can potentially use them in conversations with different IT stakeholders.

    Evaluate how you might use benchmarks before diving into your analysis

    Benchmarking can be a useful input for contextualizing and interpreting your IT spend data. It's not essential at this point but should be part of your ITFM toolkit.

    There are two basic types of benchmarking ...

    Internal: Capturing a current-state set of data about an in-house operation to serve as a baseline. Over time, snapshots of the same data are taken and compared to the baseline to track and assess changes. Common uses for internal benchmarking include:

    • Assessing the impact of a project or initiative.
    • Measuring year-over-year performance.

    External: Seeking out aggregated, current-state data about a peer-group operation to assess your own relative status or performance on the same operation. Common uses for external benchmarking include:

    • Understanding common practices in the industry.
    • Strategic and operational visioning, planning, and goal-setting.
    • Putting together a business case for change or investment.

    Both types of benchmarking benefit from some formality and rigor. Info-Tech can help you stand up an ITFM benchmarking approach as well as connect you with actual IT spend peer benchmarks via our IT Spend & Staffing Benchmarking service.

    5.1 Analyze the results of your IT spend mapping

    Duration: Variable

    1. Review the guidance slides that follow the two instruction slides for this exercise to provide yourself with a grounding on how to interpret and analyze your mapped IT staff and vendor spend data.
    2. Systematically review the data tables and graphs on the "Outputs" tabs 6 through 10 in the IT Spend & Staffing Transparency Workbook. There are several approaches you can take - use the one that works best for you. For example:
      1. Review each view in its entirety, one at a time.
      2. Review all workforce spend collectively across all four views, followed by all vendor spend across all four views (or vice versa).
    3. Make note of any spend values that are comparatively high or low or strike you as odd or worth further investigation.
    4. Craft a series of spend-related questions you want to answer for yourself and your stakeholders using the data.
      1. For example, you need to cut costs and apps maintenance is high. Your question could be, "Can we cut costs on applications maintenance staffing?"
      2. Alternatively, you can develop a series of statements (research hypotheses) that you seek to prove true or false with the data. This approach is useful for testing assumptions you've been making. For example, "We can cut spending on applications maintenance staff. True or false?"
    5. Use the template provided on tab "11. Data Analysis" in the IT Spend & Staffing Transparency Workbook to document your findings and conclusions, along with the data that supports them.

    Download the IT Spend & Staffing Transparency Workbook

    5.1 Analyze the results of your IT spend mapping

    InputOutput
    • Tabular and graphical data outputs
    • Conclusions and potential actions about IT staff and vendor spend
    MaterialsParticipants
    • IT Spend & Staffing Transparency Workbook
    • Head of IT
    • IT financial lead
    • Other IT management as required

    High-level findings: Use these IT spend metrics to review and set big picture goals

    Think of these metrics as key anchors in your long-term strategic planning efforts.

    Use IT spend metrics to review and set big goals

    It's common for the business to want a sacrifice in IT OpEx in favor of CapEx

    CapEx and OpEx approval mechanisms are often entirely separate. Different tax treatment for CapEx means that it's usually preferred by the business over OpEx.

    OpEx is often seen as a sunk cost (i.e. an IT problem).

    • Barring a major decision or event, OpEx on an individual item will generally trend upward over time, often by a few percent every year, in lockstep with inflation and growth in organizational headcount.
    • A good portion of OpEx, however, is necessary for basic business continuity.

    CapEx is usually seen as investment (i.e. a business growth opportunity).

    • CapEx behaves quite differently than OpEx. On-the-books capitalized spend on an individual asset tends to trend downward over time due to depreciation or amortization.
    • CapEx only tends to go up when a net-new capital project is initiated, and organizations often have more control over if, when, and how this spend happens.

    Break down the OpEx/CapEx wall. Reference OpEx whenever you talk about CapEx. The best way to do this is via Total Cost of Ownership (TCO).

    • Present data on long-term OpEx projections whenever a new capital project is proposed and ensure ongoing maintenance funds are secured.
    • Educate your CFO about the impact of the cloud on OpEx. See if internal OpEx/CapEx ratio expectations can be adjusted to reflect this reality.

    Spend by asset class offers the CFO a visual illustration of where the money's really gone

    The major spend categories should look very familiar to your CFO. It's the minor sub-categories that sit underneath where you ultimately want to drive the conversation.

    Traditional categories don't reflect IT reality anymore.

    • Most finance departments have "software" accounts that contain apples and oranges, plus other dissimilar fruit.
    • Software isn't just software anymore. Now it's on-premises (CapEx) or cloud (OpEx). The same distinction applies to traditional hardware due to the advent of managed services.
    • The basic categories traditionally used to tag IT spend are out of date. This makes it hard for IT to have meaningful conversations with the CFO since they're not working from the same glossary.

    "Software (on-premises)" and "hardware (cloud)" are more meaningful descriptors than "software" and "hardware." Shift the dialogue.

    Start the migration from major categories to minor categories.

    • Still give the CFO the traditional major categories they're looking for but start including minor category breakdowns into your communications. Most importantly, have a meeting to explain what these minor categories are and why they're important to managing IT effectively.
    • Next, see if the CFO can formally split on-premises vs. cloud software on the books as a first step in making IT spend tracking more meaningful.

    Employees vs. contractors warrants a specific conversation, plus a change in mindset

    IT leaders often find it easier to get approval for contracted labor than to hire a permanent employee. However, the true value proposition for contractors does vary.

    The decision to go with permanent employees or contractors depends on your ultimate goals.

    • Contractors tend to be less expensive and provide more flexibility when adjusting to changing business needs. However, contractors may be less dedicated and take their skills and knowledge with them when they leave.
    • Permanent employees bring additional costs like benefits and training. Plus, letting them go is a lot more complicated. However, they can also bring real value in a way a contractor can't when it comes to sustaining long-term strategic growth. They're assets in themselves.

    Far too often, labor-sourcing decisions are driven by controlling near-term costs instead of generating and sustaining long-term value.

    Introduce the cost-to-value ratio to your workforce spend conversations.

    • Your mapped data will allow you to talk about comparative headcount and spend. This is a financial conversation devoid of context.
    • Go beyond. Show how workforce spend has allowed stated goals to be achieved while controlling for costs. This is the true definition of value.

    CFO Expense View: Shift the ITFM conversation

    Now that you've mapped your IT spend data to the CFO Expense View, there are some questions you're better equipped to answer, namely:

    • How should I classify my IT costs?
    • What information should I include in my plans and reports?
    • How do I justify current spend?
    • How do I justify a budget increase?

    You now have:

    • A starting point for educating the CFO about IT spend realities.
    • A foundation for creating a shared glossary of terms that works for both IT and the finance department and facilitates more meaningful conversations.
    • Proof that there are major areas of IT spend, such as cloud software, that are distinctive and probably warrant their own financial category in the general ledger.
    • A transparent record of IT spend that shows that you understand and care about financial issues, fostering the goodwill and trust that facilitates investment in IT.
    • A starting point to change the ITFM conversation with the CFO from one focused on cost to one focused on value.

    Exactly how is IT spending all that money we give them?

    Exactly like this ...

    Chart of the CFO Expense View

    The CIO Service View aligns with how IT organizes and manages itself – this is your view

    The data mapped here is a critical input for IT's service planning and management program and should be integrated into your IT performance measurement activities.

    Major service categories: These values give a high-level snapshot of your general IT service spend priorities. In most organizations, Applications dominates, making it a focus for cost optimization.

    Minor service categories: The level of granularity for these values prove more practical when measuring performance and making service management decisions - not too big, not too small. While not reflected in this example, application maintenance is usually the largest relative consumer of IT spend in most organizations.

    Data & BI and security: Isolating the exact spend for these services is challenging given that they're often entangled in applications and infrastructure spend respectively, and separate spend tracking for both is a comparatively recent practice.

    Table of CIO Service View

    Check the alignment of individual service spend against known business objectives

    Some IT services are taken for granted by the business, while others are virtually invisible. This lack of visibility often translates into funding misalignments.

    Is the amount of spend on a given service in parallel with the service's overall importance?

    • Though often unstated, ensuring continuity of basic business operations is always the top priority. This means business apps, core infrastructure, end users, and security need to be appropriately funded - these should collectively comprise the majority of IT service spend.
    • Strategy-supporting IT services, like data & BI, see high investment variability between organizations. If its strategic role/importance doesn't align with spend, flag it as an issue you'll need to reconcile with the business by increasing funding (important) or reducing service levels (unimportant).
    • The strategic importance of IT as a whole is often reflected in the spend on IT management services. If spend is low, IT's probably seen as a support function, not a strategic one.

    Identify the hot spots and pick your battles.

    • Spend levels are just approximate gauges of where and how the business is willing to spend its money. Start with this simple gut check.
    • Noting the areas of importance vs. spend misalignment will help you identify where negotiations with the business should probably happen.

    A mature IT cost optimization practice is often approached from the service perspective

    When optimizing IT costs, you have two OpEx levers to pull - vendor spend and staff spend. Isolating these two sources of IT service spend will help shortlist your options.

    It's all about how much room you have to move.

    • Any decision made about how a service is provisioned will push vendor and staff spend in clear, predictable, and often opposite directions (e.g. in-house and people-intensive services tend to see higher staff spend, while outsourced and tech-intensive services higher vendor spend).
    • Service levels required by the business should be the driving factor behind service design and spend decisions. High service spend may reflect priority but may also indicate it's over-built and is ripe for a cost-optimization treatment.
    • Service spend is a useful barometer for tracking the financial impact of any changes made to IT. Add simple unit-cost metrics like "service spend per organizational employee" and "service spend per FTE assigned to the service" to see if and how the dial has moved over time.

    Grow your IT service management practice.

    • The real power of the CIO Service View is laying the groundwork for next-level IT service management initiatives like developing a service catalog, negotiating service-level agreements, rolling out chargeback and showback mechanisms, and calculating IT's value to the business.
    • Use service spend as a common denominator for both your IT service management and IT performance management programs. Better yet, integrate the two programs to ensure a single version of the truth.

    CIO Service View: Optimize your cost-to-value ratio

    Now that you've mapped your IT spend data to the CIO Service View, there are some questions you're better equipped to answer, namely:

    • What's the impact of cloud adoption on speed of delivery?
    • Where can I improve spend efficiency?
    • Is my support model optimized?
    • How does our spend compare to others?

    You now have:

    • Data that shows the financial impact of change decisions on service costs.
    • Insight into the relationship between vendor spend and staff spend within a given IT service.
    • The information you need to start developing service unit costing mechanisms.
    • A tool for setting and right-sizing service-level agreements with the business.
    • A more focused starting point for investigating IT cost-optimization opportunities.
    • A baseline for benchmarking common IT services against your peers.

    Does the amount we spend on each IT service make sense?

    We have some good opportunities for optimization ...

    Chart of CIO Service View

    The CXO Business View will spur conversations that may have never happened before

    This view is a potential game changer as previously unknown technology spend is often revealed, triggering change in IT's relationship with business unit leaders.

    Table of CXO Business View

    The big beneficiaries of IT spend will leap out

    The CXO Business View mapping does have a "shock and awe" quality to it given large spend disparities. They may be totally legitimate, but they're still eye-catching.

    Share information, don't push recommendations.

    • Have a series of one-on-one meetings with business unit leaders to present these numbers.
      • Approach initial meetings as information-sharing sessions only. The data is probably new to them, and they'll need time to reflect and ask questions.
      • Bring a list of the big-ticket spend items for that business unit to focus the conversation.
    • Present these numbers at a broader leadership meeting.
      • It's critical for everyone to hear the same truth and learn about each other's technology needs and uses.
      • This is where recommendations for better aligning IT spend with business goals and cost-optimization strategies should surface. A group approach will bring technology haves and have-nots into the open, as well as provide a forum for collaborative solutioning.

    If possible, slice the numbers by business unit headcount.

    • IT spend per business unit employee is an attention-getting metric that can help gain entry to important conversations.
    • Comparing per-employee spend across different business functions is not necessarily an apples-to-apples comparison, as units like HR may have few employees but serve the entire organization. Bring up these kinds of differences to provide context and avoid misinterpretations.

    Questions will arise in how you calculated and allocated indirect IT spend

    IT spend for things like core infrastructure and end-user services must be distributed fairly across multiple or all business units. Be prepared to explain your methods.

    Be transparent in your transparency.

    • Distributing indirect spend is imprecise by nature. You can't account for every unique circumstance. However, you can devise a logic-driven, general approach that's defensible, fair, and works for most people most of the time.
    • Lay out your assumptions from the start. This is an important part of communicating transparently and can prevent unwanted descent into weedy rabbit holes.
      • List what you classified as indirect spend. Use the CFO Expense View and/or CIO Service View categories to aid your presentation of this information.
      • Point out known circumstances that didn't fit your general allocation method and how you handled them. Opting to ignore minor anomalies is reasonable but be sure to tell business unit leaders you did this and why.

    Use questions about indirect IT staff spend distribution to engage stakeholders.

    • As a percentage, the indirect IT staff spend allocation to a specific business unit may be higher than that for IT vendor spend since IT staff tend to operate more generally than the technologies they support.
    • Leverage any pushback about indirect spend as an opportunity to engage the broader business leadership group. Let them arrive at a consensus of how they want it done and confirm buy-in.

    CXO Business View: Bring the truth to light

    Now that you've mapped your IT spend data to the CXO Business View, there are some questions you're better equipped to answer, namely:

    • Which business units consume the most IT resources?
    • Which business units are underserved by IT?
    • How do I best communicate spend data internally?
    • Where do I need better business sponsorship for IT projects?

    You now have:

    • A reason-based accounting of direct and indirect amounts spent on IT vendors and staff in support of each major business unit.
    • Insight into the technology haves and have-nots in your organization and where opportunities to optimize costs may exist.
    • Attention-getting numbers that will help you engage business-unit leaders in meaningful conversations about their use of IT resources and the value they receive.
    • A mechanism to assess if a business unit's consumption of IT is appropriate and aligned with its purpose and mandate in the organization.
    • A list of previously unknown business-side technologies that IT will investigate further.

    Why doesn't my business unit get more support from IT?

    Let's look at how you compare to the other departments ...

    Chart of the CXO Business View

    From the CEO's high-level perspective, IT spend is a collection of distinct financial islands

    From IT's perspective, these islands are intimately connected, with events on one affecting what happens (or doesn't) on another. Focus on the bridges.

    Table of CEO High-level Perspective

    Focus more on unifying the view of technology spend than on the numbers

    When talking to the CEO, seek to build mutual understanding and encourage a holistic approach to the organization's technology spend.

    Use the numbers to get to the real issues.

    • Clarify with the CEO what business innovation, business growth, and KTLO means to them and the role each plays in the organization's strategic and operational plans.
    • Find out the role they think IT, and technology as a whole, has in realizing business plans. Only then can you look at the relative allocation of IT spend with them to see if the aspiration aligns with reality.
    • Eventually, you'll need to discuss expectations around who pays the bills for operationally supporting capital technology investments over the long-term (i.e. IT or the business units that actually want and use it). You'll have concrete examples of business projects that consumed IT operations resources without a corresponding increase in IT's OpEx budget.

    Focus your KTLO spend conversation on risk and trade-off.

    • Every strategic conversation needs to look at the impact on ongoing operations. Every discussion about CapEx needs to investigate the long-term repercussions for OpEx. Look at the whole tech spend picture.
    • Use risk to get KTLO/OpEx into the conversation. Be straightforward (i.e. "If we do/don't do this, then we can/can't do that"). Simply put, mitigating the risks that get in the way of having it all usually requires spending.

    CEO Innovation View: Learn what's really expected of IT

    Now that you've mapped your IT spend data to the CEO Innovation View, there are some questions you're better equipped to answer, namely:

    • Why is KTLO spend so high?
    • What should our operational spend priorities be?
    • Which projects and investments should we prioritize?
    • Are we spending enough on innovative initiatives?

    You now have:

    • A holistic, organization-wide view of total technology spend in support of different investment types, namely business innovation, business growth, and keeping things up and running.
    • Data-driven examples that prove the impact of near-term capital spend on long-term operational expenses and the intimate relationship between the two types of spend.
    • A way to measure the degree of alignment between the innovation and growth goals the organization has and how money is actually being spent to realize those goals.
    • A platform to discuss how technology investment decision-making and governance can work better to realize organizational mandates and goals.

    I know what IT costs us, but what is it really worth?

    Here's how tech spend directly supports business objectives ...

    Chart of CEO Innovation View

    Revisit your IT spend transparency objectives before crafting your executive presentation

    Go back to exercise 1.1 to remind yourself why you undertook this effort in the first place, clear your head of all that data, and refocus on the big picture.

    Review the real problems and issues you need to address and the key stakeholders.
    This will guide what data you focus on or showcase with other business leaders. For example, if IT OpEx is perceived as high, be prepared to examine the CapEx/OpEx ratio as well as cloud-related spend's impact on OpEx.

    Flag ITFM processes you'll develop as part of your ITFM maturity improvement plan.
    You won't become a TCO math expert overnight, but being able to communicate your awareness of and commitment to developing and applying ITFM capabilities helps build confidence in you and the information you're presenting.

    Use your first big presentation to debut ITFM.
    ITFM as a formal practice and the changes you hope to make may be a novel concept for your business peers. Use your newfound IT spend and staffing transparency to gently wade into the topic instead of going for the deep dive.

    Now it's time to present your transparent IT spend and staffing data to your executive

    Pull out of analysis mode. You're starting to tell the IT spend story, and this is just the first chapter. Introduce your cast of characters and pique your audience's interest.

    The goal of this first presentation is to showcase IT spend in general and make sure that everyone's getting the same information as everyone else.

    Go broad, not deep
    Defer any in-depth examinations until after you're sure you have everyone's attention. Only dive deep when you're ready to talk about specific plans via follow-up sessions.

    Focus on the CXO
    Given your audience, the CXO Business View may be the most interesting for them and will trigger the most questions and discussion. Plan to spend the largest chunk of your time here.

    Avoid judgment
    Let the numbers speak for themselves. Do point out what's high and what's low, but don't offer your opinion about whether it's good or bad. Let your audience draw their own conclusions.

    Ask for impressions
    Education and awareness are primary objectives. What comes up will give a good indication of what's known, what's news, who's interested, and where there's work to do.

    Pick a starting point
    Ask what they see as high-priority areas for both optimizing IT costs as well as improving the organization's approach to making IT spend decisions in general.

    What to include in your presentation ...

    • Purpose: Why you did the IT spend and staffing transparency exercise.
    • Method: The models and processes you used to map the data.
    • Data: Charts from the IT Spend & Staffing Transparency Workbook.
    • Feedback: Space for your audience to voice their thoughts.
    • Next steps: Discussion and summary of actions to come.

    5.2 Develop an executive presentation

    Duration: Two hours

    1. Download the IT Staff & Spend Executive Presentation Template.
    2. Copy and paste the IT spend output tables and graphs into the template. (Note: Pasting as an image will preserve formatting.)
    3. Incorporate observations and insights about your analysis of your IT spend metrics.
    4. Conduct an internal review of the final presentation to ensure it includes all the elements you need and is error free.
    5. Book time to make your presentation to the executive team. Plan time after the presentation to field questions, engage in follow-up information sessions, and act on feedback.

    Note: Refer to your organization's standards and norms for executive-level presentations and either adapt the Info-Tech template accordingly or use your own.

    Input Output
    • Tabular and graphical data outputs in the IT Spend & Staffing Transparency Workbook
    • Executive presentation summarizing your organization's actual IT spend
    Materials Participants
    • IT Spend & Staffing Transparency Workbook
    • IT Staff & Spend Executive Presentation Template
    • CIO/IT directors
    • IT financial lead
    • Other IT management

    Download the IT Spend & Staffing Transparency Executive Presentation TemplateTemplate

    Phase 5: Identify implications for IT

    Achievement summary

    You've done the hard part in starting your IT spend transparency journey. You have:

    • Analyzed the results of your IT spend mapping process.
    • Revisited your transparency objectives.
    • Prepared an executive presentation so you can share findings with other leaders in your organization.

    "Having internal conversations, especially if there is doubt, allows for accuracy and confidence in your model. I was showing someone the cost of a service he managed. He didn't believe the service was so expensive. We went through it: here are the people we allocated, the assets we allocated, and the software we allocated. It was right - that was the total cost. He was like, 'No way. Wow.' The costs were high, and the transparency is what allowed for a conversation on cost optimization."
    - Monica Braun, Research Director, ITFM Practice, Info-Tech Research Group

    Next Steps

    Achieve IT Spend & Staffing Transparency

    This final section will provide you with:

    • An overall summary of accomplishment
    • Recommended next steps
    • A list of contributors to this research
    • Some related Info-Tech resources to help you grow your ITFM practice

    Summary of Accomplishment

    Congratulations! You now have a fully transparent view of your IT spend.

    You've now mapped the entirety of technology spend in your organization. You've:

    1. Learned the key sources of spend data and information in your organization.
    2. Set some standards for data organization and labeling.
    3. Have a methodology for continuing to track and document spend in a transparent way.
    4. Crafted an executive presentation that's a first step in having more meaningful and constructive conversations about IT spend with your key stakeholders.

    What's next?

    With a reliable baseline, you can look forward to more informed and defensible IT budgeting and cost optimization. Use your newly-transparent IT spend as a foundation for improving your financial data hygiene in the near term and evolving your overall ITFM governance maturity in the long-term.

    If you would like additional support, have our analysts guide you through an Info-Tech full-service engagement or Guided Implementation.

    Contact your account representative for more information.

    1-888-670-8889

    Research Contributors and Experts

    Monica Braun, Research Director, ITFM Practice

    Monica Braun
    Research Director, ITFM Practice
    Info-Tech Research Group

    Dave Kish, Practice Lead, ITFM Practice

    Dave Kish
    Practice Lead, ITFM Practice
    Info-Tech Research Group

    Kennedy Confurius, Research Analyst, ITFM Practice

    Kennedy Confurius
    Research Analyst, ITFM Practice
    Info-Tech Research Group

    Aman Kumari, Research Specialist, ITFM Practice

    Aman Kumari
    Research Specialist, ITFM Practice
    Info-Tech Research Group

    Rex Ding, Research Specialist, ITFM Practice

    Rex Ding
    Research Specialist, ITFM Practice
    Info-Tech Research Group

    Angie Reynolds, Principal Research Director, ITFM Practice

    Angie Reynolds
    Principal Research Director, ITFM Practice
    Info-Tech Research Group

    Related Info-Tech Research

    Build Your IT Cost Optimization Roadmap

    • Cost optimization often doesn't go beyond the cutting part, but cutting costs isn't strategic - it's reactive and can easily result in mistakes.
    • True cost optimization is much more than this. Re-focus your efforts on optimizing your cost-to-value ratio and implementing a sustainable cost-optimization practice.

    Build an IT Budget

    • Budgetary approval is difficult because finance executives have a limited understanding of IT and use a different vocabulary.
    • Detailed budgets must be constructed in a way that is transparent but at a level of appropriate detail in order to limit complexity and confusion.

    Manage an IT Budget

    • No one likes to be over budget, but being under budget isn't necessarily good either.
    • Implement a budget management process that documents your planned budget and actual expenditures, tracks variances, and responds to those variances to stay on track.
    • Control for under- or overspending using Info Tech's budget management tool and tactics.

    APPENDIX

    Sample shared business services

    Sample industry-specific business services

    Sample shared business functions

    Business function Definition
    Human Resources The management of the recruitment, training, development, appraisal, compensation/reward, retention, and departure of employees in an organization. Does not include management of subcontractor or outsourced relationships.
    Finance and Accounting The management and analysis of an organization's revenue, funds, spend, investments, financial transactions, accounts, and financial statements. Often includes enterprise asset management.
    Procurement and Supplier Management Acquiring materials, goods, and services from an external party, including identifying potential suppliers/providers, managing tendering or bidding processes, negotiating terms and agreements, and managing the relationship with the vendor/provider.
    Information Technology The development, management, and optimization of information technology resources and systems over their lifecycle in support of an organization's work priorities and goals. Includes computer-based information and communication systems, but typically excludes industrial operational technologies.
    Legal Expertise in interpretation, implication, and application of legislation and regulation that affects the enterprise, including guidance and support in the areas of risk, contracting, compliance, ownership, and litigation.
    Regulatory Affairs and Compliance Management Identification, operationalization, monitoring, reporting, and enforcement of the standards, rules, codes, and laws that apply to an organization's operating environment and the products and services it offers.
    Sales Transactional provision of a product or service to a buyer at an agreed-upon price. Includes identifying and developing prospective buyers, presenting and explaining the product/service, overcoming prospect objections and concerns to purchase, negotiating terms, developing contracts, and billing or invoicing.
    Customer Service and Support A range of activities designed to optimize the customer experience with an organization and its products and services throughout the customer lifecycle with the goals of retaining the customer; encouraging additional spend or consumption; the customer positively influencing other potential customers; and minimizing financial and reputational business risks.
    Marketing and Advertising Understanding customer/prospect needs, developing strategies to meet those needs, and promotion of the organization's products/services to a target market via a range of channels to maximize revenue, membership, donations, and/or develop the organization's brand or reputation. Includes market research and analysis and promotion, campaign, and brand management.

    Sample industry-specific functions

    Supply chain and capital-intensive industries.

    Industry function Definition
    Product Innovation Research, design, development, and launch of new products, including the engineering of their underlying production processes.
    Product and Service Portfolio Management The management of an organization's collection of products and services, including management of the product/service roadmap; product/service portfolio and catalog; product/service quality and performance; and product/service pricing, bundling and markdown.
    Logistics and Supply Chain Management Sourcing raw materials or component parts needed and shipping of a finished product. Includes demand planning; procurement/supplier management; inventory management; yard management; allocation management; fulfillment and replenishment; and product distribution and delivery.
    Production Operations Manufacture, storage, and tracking of a product and ensuring product and production process quality. Includes operations management, materials management, quality/safety control, packaging management, and management of the tools, equipment, and technologies that support it.
    Architecture & Engineering The design and planning of structures or critical infrastructure systems according to scientific, functional, and aesthetic principles.
    Construction New construction, assembly, or alteration of buildings and critical infrastructure (e.g. transportation systems; telecommunications systems; utilities generation/transmission/distribution facilities and systems). Includes management of all construction project plans and the people, materials, and equipment required to execute.
    Real Estate Management Management of any residential, commercial, or industrial real estate holdings (land and buildings), including any financial dealings such as its purchase, sale, transfer, and rental as well as ongoing maintenance and repair of associated infrastructure and capital assets.

    Sample industry-specific functions

    Financial services and insurance industries.

    Industry function Definition
    Core Banking Services Includes ATM management; account management (opening, deposit/withdrawal, interest calculation, overdraft management, closing); payments processing; funds transfers; foreign currency exchange; cash management.
    Loan, Mortgage, and Credit Services Includes application, adjudication, and approval; facility; disbursement/card issuance; authorization management; merchant services; interest calculation; billing/payment; debt/collections management.
    Investment and Wealth Management Processes for the investment of premiums/monies received from policy holders/customers to generate wealth. Often two-pronged: internal investment to fund claim payout in the case of insurance, and customer-facing investment as a financial service (e.g. retirement planning/annuities). Includes product development and management, investment management, safety deposit box services, trust management services.
    Actuarial Analysis & Policy Creation Development of new policy products based on analysis of past losses and patterns, forecasts of financial risks, and assessment of potential profitability (i.e. actuarial science). These processes also include development of rate schedules (pricing) and the reserves that the insurer needs to have available for potential claim payouts.
    Underwriting & Policy Administration Processes for assessing risk of a potential policy holder; determining whether to insure them or not; setting the premiums the policy holder must pay; and administering the policy over the course of its lifecycle (including updates and billing).
    Claims Processing & Claims Management Processes for receiving, investigating, evaluating, approving/denying, and disbursing a claim payout. This process is unique to the insurance industry. In health insurance, ongoing case management processes need to be considered here whereby the insurer monitors and approves patient treatments over a long-term basis to ensure that the treatments are both necessary and beneficial.

    Sample industry-specific functions

    Healthcare industry

    Industry function Definition
    Patient Intake & Admissions Processes whereby key pieces of information about a patient are registered, updated, or confirmed with the healthcare provider in order to access healthcare services. Includes patient triage, intake management, and admissions management. These processes are generally administrative in nature.
    Patient Diagnosis A range of methods for determining the medical condition a patient has in order to provide appropriate care or treatment. Includes examination, consultation, testing, and diagnostic imaging.
    Patient Treatment The range of medical procedures, methods, and interventions to mitigate, relieve, or cure a patient's symptom, injury, disease, or other medical condition. Includes consultation and referral; treatment and care planning; medical procedure management; nursing and personal support; medicine management; trauma management; diet and nutrition management; and patient transportation.
    Patient Recovery & Ongoing Care Processes and methods for tracking the progress of a patient post-treatment; improving their health outcomes; restoring, maintaining, or improving their quality of life; and discharging or transferring them to other providers. Includes remote monitoring of vital parameters, physical therapy, post-trauma care, and a range of restorative and lifestyle modification programs.

    Sample industry-specific functions

    Gaming and hospitality industries

    Industry function Definition
    Accommodation Short-term lodging in hotel facilities. Includes management and maintenance of guest rooms and common spaces, amenities (e.g. swimming pool), and other related services (e.g. valet parking).
    Gaming Includes table wagering games and gambling activities such as slot machines or any other activity that includes on premises mobile casino gaming.
    Food & Beverage Services Food and beverages prepared, served, or available for sale by the hotel on the hotel premises via restaurants and bars and room service. Excludes catering (see Events Management) and management or operation of independent leased food and beverage establishments located on the hotel premises.
    Entertainment & Events Planning, coordination, and on-premises hosting of events including conferences, conventions, trade shows, parties, ceremonies and live entertainment, and other forms of recreation on the hotel premises. Includes all aspects of entertainment operations, facility management and catering for the event.

    Assess Your Cybersecurity Insurance Policy

    • Buy Link or Shortcode: {j2store}255|cart{/j2store}
    • member rating overall impact (scale of 10): 9.1/10 Overall Impact
    • member rating average dollars saved: $33,656 Average $ Saved
    • member rating average days saved: 7 Average Days Saved
    • Parent Category Name: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance
    • Organizations must adapt their information security programs to accommodate insurance requirements.
    • Organizations need to reduce insurance costs.
    • Some organizations must find alternatives to cyber insurance.

    Our Advice

    Critical Insight

    • Shopping for insurance policies is not step one.
    • First and foremost, we must determine what the organization is at risk for and how much it would cost to recover.
    • The cyber insurance market is still evolving. As insurance requirements change, effectively managing cyber insurance requires that your organization proactively manages risk.

    Impact and Result

    Perform an insurance policy comparison with scores based on policy coverage and exclusions.

    Assess Your Cybersecurity Insurance Policy Research & Tools

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

    1. Assess Your Cybersecurity Insurance Policy Storyboard - A step-by-step document that walks you through how to acquire cyber insurance, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Use this blueprint to score your potential cyber insurance policies and develop skills to overcome common insurance pitfalls.

    • Assess Your Cybersecurity Insurance Policy Storyboard

    2. Acquire cyber insurance with confidence – Learn the essentials of the requirements gathering, policy procurement, and review processes.

    Use these tools to gather cyber insurance requirements, prepare for the underwriting process, and compare policies.

    • Threat and Risk Assessment Tool
    • DRP Business Impact Analysis Tool
    • Legacy DRP Business Impact Analysis Tool
    • DRP BIA Scoring Context Example
    • Cyber Insurance Policy Comparison Tool
    • Cyber Insurance Controls Checklist

    Infographic

    Build a Platform-Based Organization

    • Buy Link or Shortcode: {j2store}98|cart{/j2store}
    • member rating overall impact (scale of 10): 8.0/10 Overall Impact
    • member rating average dollars saved: $3,420 Average $ Saved
    • member rating average days saved: 2 Average Days Saved
    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • The organization is riddled with bureaucracy. Some even believe that bureaucracy is inevitable and is an outcome of a complex business operating in a complex market and regulatory environment.
    • Time to market for new products and services is excruciatingly long.
    • Digital natives like Facebook, Netflix, and Spotify do not compare well with the organization and cannot be looked to for inspiration.

    Our Advice

    Critical Insight

    • Large corporations often consist of a few operating units, each with its own idiosyncracies about strategies, culture, and capabilities. These tightly integrated operating units make a company prone to bureaucracy.
    • The antidote to this bureaucracy is a platform structure: small, autonomous teams operating as startups within the organization.

    Impact and Result

    • Platforms consist of related activities and associated technologies that deliver on a specific organizational goal. A platform can therefore be run as a business or as a service. This structure of small autonomous teams that are loosely joined will make your employees directly accountable to the customers. In a way, they become entrepreneurs and do not remain just employees.

    Build a Platform-Based Organization Research & Tools

    Build a platform-based organization

    Download our guide to learn how you can get started with a platform structure.

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

    • Build a Platform-Based Organization Storyboard
    [infographic]

    Further reading

    Build a Platform-Based Organization

    Use a platform structure to overcome bureaucracy.

    Analyst Perspective

    Build a platform-based organization.

    Bureaucracy saps innovation out of large corporations. Some even believe that bureaucracy is inevitable and is an outcome of a complex business operating in a complex market and regulatory environment.

    So, what is the antidote to bureaucracy? Some look to startups like Uber, Airbnb, Netflix, and Spotify, but they are digital native and don’t compare well to a large monolithic corporation.

    However, all is not lost for large corporations. Inspiration can be drawn from a company in China – Haier, which is not a typical poster child of the digital age like Spotify. In fact, three decades ago, it was a state-owned company with a shoddy product quality.

    Haier uses an intriguing organization structure based on microenterprises and platforms that has proven to be an antidote to bureaucracy.

    Vivek Mehta
    Research Director, Digital & Innovation
    Info-Tech Research Group

    Executive Summary

    The Challenge

    Large corporations are prone to bureaucracies, which sap their organizations of creativity and make them blind to new opportunities. Though many executives express the desire to get rid of it, bureaucracy is thriving in their organizations.

    Why It Happens

    As organizations grow and become more complex over time, they yearn for efficiency and control. Some believe bureaucracy is the natural outcome of running a complex organization in a complex business and regulatory environment.

    Info-Tech’s Approach

    A new organizational form – the platform structure – is challenging the bureaucratic model. The platform structure makes employees directly accountable to customers and organizes them in an ecosystem of autonomous units.

    As a starting point, sketch out a platform structure that works for your organization. Then, establish a governance model and identify and nurture key capabilities for the platform structure.

    Info-Tech Insight

    The antidote to bureaucracy is a platform structure: small, autonomous teams operating as startups within the organization.

    Executive Brief Case Study

    Small pieces, loosely joined

    Haier

    Industry: Manufacturing
    Source: Harvard Business Review November-December 2018

    Haier, based in China, is currently the world’s largest appliance maker. Zhang Ruimin, Haier’s CEO, has built an intriguing organizing structure where every employee is directly accountable to customers – internal and/or external. A large corporation often consists of a few operating units, each with its own idiosyncrasies, which makes it slow to innovate. To avoid that, Haier has divided itself into 4,000 microenterprises (MEs), most of which have ten to 15 employees. There are three types of microenterprises in Haier:

    1. Approximately 200 “transforming” MEs: market-facing units like Zhisheng, which manufactures refrigerators, a legacy Haier product, for today’s young urbanites.
    2. Approximately 50 “incubating” MEs: entirely new businesses like Xinchu that wrap existing products into entirely new business models.
    3. Approximately 3,800 “node” MEs: units that sell component products and services such as design, manufacturing, and human resources support to Haier’s market-facing MEs.

    Each ME operates as an autonomous unit with its own targets – an organizing structure that enables innovation at Haier.

    (Harvard Business Review, 2018)

    The image is a rectangular graphic with the words Refrigeration Platform in the centre. There are six text boxes around the centre, reading (clockwise from top left): Zhisheng Young urbanites; Langdu Premium; Jinchu Mid-priced; Xinchu Internet-connected; Overseas Export markets; Leader Value-priced. There are a series of white boxes bordering the graphic, with the following labels: at top--Sales nodes; at right--Support nodes (R&D, HR, supply chain, etc.); at bottom left---Design nodes; at bottom right--Production nodes.

    Markets disproportionately reward platform structure

    Tech companies like Facebook, Netflix, and Spotify are organized around a set of modular platforms run by accountable platform teams. This modular org structure enables them to experiment, learn, and scale quickly – a key attribute of innovative organizations.

    Facebook ~2,603 million monthly active users

    India ~1,353 million population

    Netflix ~183 million monthly paid subscribers

    Spotify ~130 million premium subscribers

    Canada ~37 million population

    (“Facebook Users Worldwide 2020,” “Number of Netflix Subscribers 2019,” “Spotify Users - Subscribers in 2020,” Statista.)

    1. Sketch Out the Platform Structure

    What is a platform anyway?

    A modular component of an org structure

    Platforms consist of a logical cluster of activities and associated technology that delivers on a specific business goal and can therefore be run as a business, or ‘as a service’ … Platforms focus on business solutions to serve clients (internal or external) and to supply other platforms.” – McKinsey, 2019

    Platforms operate as independent units with their own business, technology, governance, processes, and people management. As an instance, a bank could have payments platform under a joint business and IT leadership. This payments-as-a-service platform could provide know-how, processes, and technology to the bank’s internal customers such as retail and commercial business units.

    Many leading IT organizations are set up in a platform-based structure that allows them to rapidly innovate. It’s an imperative for organizations in other industries that they must pilot and then scale with a platform play.

    What a platform-based org looks like

    It looks like a multicellular organism, where each cell is akin to a platform

    An organism consists of multiple cells of different types, sizes, and shapes. Each cell is independent in its working. Regardless of the type, a cell would have three features –the nucleus, the cell membrane, and, between the two, the cytoplasm.

    Similarly, an organization could be imagined as one consisting of several platforms of different types and sizes. Each platform must be autonomous, but they all share a few common features – have a platform leader, set up and monitor targets, and enable interoperability amongst platforms. Platforms could be of three types (McKinsey, 2019):

    1. Customer-journey platforms enable customer proposition and experience built on reusable code. They provide “journey as a service”; for example, Account Opening in a bank.
    2. Business-solution platforms are modular and run as a business or as a service. They provide “company as a service”; for example, Payments or Fraud Detection in a bank.
    3. Core IT provisioning platforms provide core IT services for the organization, for example, cloud, data, automation.

    There are two images: in the lower part of the graphic shows a multicellular organism, and has text pointing to a single cell. At the top, there is a zoomed in image of that single cell, with its component parts labelled: Cell Membrane, Nucleus, and Cytoplasm.

    Case study: Payments platform in a bank

    Payments as a service to internal business units

    The payments platform is led by an SVP – the platform leader. Business and IT teams are colocated and have joint leadership. The platform team works with a mindset of a startup, serving internal customers of the bank – retail and commercial lines of business.

    A diagram showing Advisory Council in a large grey box on the left. To the right are smaller dark blue boxes labeled 'Real-time peer-to-peer payments,' Wire transfers,' 'Batch payments,' 'Mobile wallets,' and 'International payments (VISA, WU, etc.),' and one light blue box labeled 'Payments innovation.'


    Advisory Council: An Advisory Council is responsible for strategy, business, and IT architecture and for overseeing the work within the team. The Advisory Council prioritizes the work, earmarks project budgets, sets standards such as for APIs and ISO 20022, and leads vendor evaluation.

    International payments (VISA, WU, etc.): Project execution teams are structured around payment modes. Teams collaborate with each other whenever a common functionality is to be developed, like fraud check on a payment or account posting for debits and credits.

    Payments innovation: A think tank keeping track of trends in payments and conducting proof of concepts (POCs) with prospective fintech partners and with new technologies.

    Use a capability map to sketch out a platform-based structure

    Corral your organization’s activities and associated tech into a set of 20 to 40 platforms that cover customer journeys, business capabilities, and core IT. Business and IT teams must jointly work on this activity and could use a capability map as an aid to facilitate the discussion.

    The image is an example of a capability map, shown in more detail in the following section.

    An example of sketching a platform-based org structure for an insurance provider (partial)

    Design Policy Create Policy Issue Policy Service Customers Process Claims Manage Investments
    Defining Market Research & Analysis Underwriting Criteria Selection Customer Targeting Interaction Management First Notice of Loss (FNOL) Investment Strategy
    Actuarial Analysis Product Reserving Needs Assessment & Quotes Payments Claims Investigation Portfolio Management
    Catastrophe Risk Modeling Reinsurance Strategy Contract Issuance Adjustments Claims Adjudication Deposits & Disbursements
    Product Portfolio Strategy Product Prototyping Application Management Renewals Claims Recovery (Subrogation) Cash & Liquidity Management
    Rate Making Product Testing Sales Execution Offboarding Dispute Resolution Capital Allocation
    Policy Definition Product Marketing Contract Change Management

    Customer Retention

    [Servicing a customer request is a customer-journey platform.]

    Claims Inquiry

    [Filing a claim is a customer-journey platform.]

    Credit Bureau Reporting
    Shared Customer Management

    Account Management

    [Customer and account management is a business-capability platform to enable journeys.]

    Channel Management Risk Management Regulatory & Compliance Knowledge Management
    Partner Management

    Access and Identity Management

    [Access and identity management is a core IT platform.]

    Change Management Enterprise Data Management Fraud Detection [Fraud detection is a business-capability platform to enable journeys.] Product Innovation
    Enabling Corporate Governance Strategic Planning Reporting Accounting Enterprise Architecture Human Resources
    Legal Corporate Finance IT Facilities Management

    2. Establish Governance and Nurture Key Capabilities

    Two ingredients of the platform structure

    Establish a governance

    Advisory Council (AC) operates like a conductor at an orchestra, looking across all the activities to understand and manage the individual components.

    Nurture key capabilities

    Team structure, processes and technologies must be thoughtfully orchestrated and nurtured.

    Establish strong governance

    Empowerment does not mean anarchy

    While platforms are distinct units, they must be in sync with each other, like individual musicians in an orchestra. The Advisory Council (AC) must act like a conductor of the orchestra and lead and manage across platforms in three ways.

    1. Prioritize spend and effort. The AC team makes allocation decisions and prioritizes spend and effort on those platforms that can best support organizational goals and/or are in most urgent technical need. The best AC teams have enterprise architects who can understand business and dive deep enough into IT to manage critical interdependencies.
    2. Set and enforce standards. The AC team establishes both business and technology standards for interoperability. For example, the AC team can set the platform and application interfaces standards and the industry standards like ISO 20022 for payments. The AC team can also provide guidance on common apps and tools to use, for example, a reconciliation system for payments.
    3. Facilitate cross-platform work. The AC team has a unique vantage point where it can view and manage interdependencies among programs. As these complexities emerge, the AC team can step in and facilitate the interaction among the involved platform teams. In cases when a common capability is required by multiple platforms, the AC team can facilitate the dialogue to have it built out.

    Nurture the following capabilities:

    Design thinking

    “Zero distance from the customer” is the focus of platform structure. Each platform must operate with a mindset of a startup serving internal and/or external users.

    Agile delivery model

    Platform teams iteratively develop their offerings. With guidance from Advisory Council, they can avoid bottlenecks of formal alignment and approvals.

    Enterprise architecture

    The raison d'être of enterprise architecture discipline is to enable modularity in the architecture, encourage reusability of assets, and simplify design.

    Microservices

    Microservices allow systems to grow with strong cohesion and weak coupling and enable teams to scale components independently.

    APIs

    With their ability to link systems and data, APIs play a crucial role in making IT systems more responsive and adaptable.

    Machine learning

    With the drop in its cost, predictability is becoming the new electricity for business. Platforms use machine learning capability for better predictions.

    Related Info-Tech Research

    Drive Digital Transformation With Platform Strategies
    Innovate and transform your business models with digital platforms.

    Implement Agile Practices That Work
    Guide your organization through its Agile transformation journey.

    Design a Customer-Centric Digital Operating Model
    Putting the customer at the center of digital transformation.

    Bibliography

    Bossert, Oliver, and Jürgen Laartz. “Perpetual Evolution—the Management Approach Required for Digital Transformation.” McKinsey, 5 June 2017. Accessed 21 May 2020.

    Bossert, Oliver, and Driek Desmet. “The Platform Play: How to Operate like a Tech Company.” McKinsey, 28 Feb. 2019. Accessed 21 May 2020.

    “Facebook Users Worldwide 2020.” Statista. Accessed 21 May 2020.

    Hamel, Gary, and Michele Zanini. “The End of Bureaucracy.” Harvard Business Review. Nov.-Dec. 2018. Accessed 21 May 2020.

    “Number of Netflix Subscribers 2019.” Statista. Accessed 21 May 2020.

    “Spotify Users - Subscribers in 2020.” Statista. Accessed 21 May 2020.

    Effectively Acquire Infrastructure Services

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    • Parent Category Name: Data Center & Facilities Optimization
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    • Most organizations are good at procuring IT products, but few are truly good at acquiring infrastructure services.
    • The lack of expertise in acquiring services is problematic – not only is the acquisition process for services more complex, but it also often has high stakes with large deal sizes, long-term contracts, and high switching costs.

    Our Advice

    Critical Insight

    • Don’t treat infrastructure service acquisitions lightly. Not only are failure rates high, but the stakes are high as well.
    • Make sure your RFP strategy aligns with your deal value. Large deals, characterized by high monthly spend, high criticality to the organization, and high switching costs, warrant a more thorough and lengthy planning period and RFP process.
    • Word your RFP carefully and do your due diligence when reviewing SLAs. Make sure your RFP will help you understand what the vendor’s standard offerings are and don’t treat your service level agreements like an open negotiation. The vendor’s standard offerings will be your most reliable options.

    Impact and Result

    • Follow this blueprint to avoid common pitfalls and navigate the tricky business of acquiring infrastructure services.
    • This blueprint will provide step-by-step guidance from assessing your acquisition goals to transitioning your service. Make sure you do the due diligence required to acquire the best service for your needs.

    Effectively Acquire Infrastructure Services Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should follow the blueprint to effectively acquire infrastructure services, 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 the procurement strategy and process

    Kick off an acquisition by establishing acquisition goals, validating the decision to acquire a service, and structuring an acquisition approach. There are several RFP approaches and strategies – evaluate the options and develop one that aligns with the nature of the acquisition.

    • Effectively Acquire Infrastructure Services – Phase 1: Develop the Procurement Strategy and Process

    2. Assess requirements and build the RFP

    A solid RFP is critical to the success of this project. Assess the current and future requirements, examine the characteristics of an effective RFP, and develop an RFP.

    • Effectively Acquire Infrastructure Services – Phase 2: Assess Requirements and Build the RFP
    • Infrastructure Service RFP Template

    3. Manage vendor questions and select the vendor

    Manage the activities surrounding vendor questions and score the RFP responses to select the best-fit solution.

    • Effectively Acquire Infrastructure Services – Phase 3: Manage Vendor Questions and Select the Vendor
    • Vendor Question Organizer Template
    • Infrastructure Outsourcing RFP Scoring Tool

    4. Manage the contract, transition, and vendor

    Perform due diligence in reviewing the SLAs and contract before signing. Plan to transition the service into the environment and manage the vendor on an ongoing basis for a successful partnership.

    • Effectively Acquire Infrastructure Services – Phase 4: Manage the Contract, Transition, and Vendor
    • Service Acquisition Planning and Tracking Tool
    • Vendor Management Template
    [infographic]

    Workshop: Effectively Acquire Infrastructure Services

    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 the Procurement Strategy and Process

    The Purpose

    Establish procurement goals and success metrics.

    Develop a projected acquisition timeline.

    Establish the RFP approach and strategy.

    Key Benefits Achieved

    Defined acquisition approach and timeline.

    Activities

    1.1 Establish your acquisition goals.

    1.2 Establish your success metrics.

    1.3 Develop a projected acquisition timeline.

    1.4 Establish your RFP process and refine your RFP timeline.

    Outputs

    Acquisition goals

    Success metrics

    Acquisition timeline

    RFP strategy and approach

    2 Gather Service Requirements

    The Purpose

    Gather requirements for services to build into the RFP.

    Key Benefits Achieved

    Gathered requirements.

    Activities

    2.1 Assess the current state.

    2.2 Evaluate service requirements and targets.

    2.3 Assess the gap and validate the service acquisition.

    2.4 Define requirements to input into the RFP.

    Outputs

    Current State Assessment

    Service requirements

    Validation of services being acquired and key processes that may need to change

    Requirements to input into the RFP

    3 Develop the RFP

    The Purpose

    Build the RFP.

    Key Benefits Achieved

    RFP development.

    Activities

    3.1 Build the RFP requirement section.

    3.2 Develop the rest of the RFP.

    Outputs

    Service requirements input into the RFP

    Completed RFP

    4 Review RFP Responses and Select a Vendor (Off-Site)

    The Purpose

    Review RFP responses to select the best solution for the acquisition.

    Key Benefits Achieved

    Vendor selected.

    Activities

    4.1 Manage vendor questions regarding the RFP.

    4.2 Review RFP responses and shortlist the vendors.

    4.3 Conduct additional due diligence on the vendors.

    4.4 Select a vendor.

    Outputs

    Managed RFP activities

    Imperceptive scoring of RFP responses and ranking of vendors

    Additional due diligence and further questions for the vendor

    Selected vendor

    Develop APIs That Work Properly for the Organization

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    • Parent Category Name: Requirements & Design
    • Parent Category Link: /requirements-and-design
    • CIOs have trouble integrating new technologies (e.g. mobile, cloud solutions) with legacy applications, and lack standards for using APIs across the organization.
    • Organizations produce APIs that are error-prone, not consistently configured, and not maintained effectively.
    • Organizations are looking for ways to increase application quality and code reusability to improve development throughput using web APIs.
    • Organizations are looking for opportunities to create an application ecosystem which can expose internal services across the organization and/or to external third parties and business partners.

    Our Advice

    Critical Insight

    • Organizations are looking to go beyond current development practices to provide scalable and reusable web services.
    • Web API development is a tactical competency that is important to enabling speed of development, quality of applications, reusability, innovation, and business alignment.
    • Design your web API as a product that promotes speed of development and service reuse.
    • Optimize the design, development, testing, and monitoring of your APIs incrementally and iteratively to cover all use cases in the long term.

    Impact and Result

    • Create a repeatable process to improve the quality, reusability, and governance of your web APIs.
    • Define the purpose of your API and the common uses cases that it will service.
    • Understand what development techniques are required to develop an effective web API based on Info-Tech’s web API framework.
    • Continuously reiterate your web API to demonstrate to business stakeholders the value your web API provides.

    Develop APIs That Work Properly for the Organization Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop APIs, 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 the opportunities web APIs can enable

    Assess the opportunities of web APIs.

    • Develop APIs That Work Properly for the Organization – Phase 1: Examine the Opportunities Web APIs Can Enable

    2. Design and develop a web API

    Design and develop web APIs that support business processes and enable reusability.

    • Develop APIs That Work Properly for the Organization – Phase 2: Design and Develop a Web API
    • Web APIs High-Level Design Requirements Template
    • Web API Design Document Template

    3. Test the web API

    Accommodate web API testing best practices in application test plans.

    • Develop APIs That Work Properly for the Organization – Phase 3: Test the Web API
    • Web API Test Plan Template

    4. Monitor and continuously optimize the web API

    Monitor the usage and value of web APIs and plan for future optimizations and maintenance.

    • Develop APIs That Work Properly for the Organization – Phase 4: Monitor and Continuously Optimize the Web API
    • Web API Process Governance Template
    [infographic]

    Workshop: Develop APIs That Work Properly for the Organization

    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 the Opportunities Web APIs Can Enable

    The Purpose

    Gauge the importance of web APIs for achieving your organizational needs.

    Understand how web APIs can be used to achieve below-the-line and above-the-line benefits.

    Be aware of web API development pitfalls. 

    Key Benefits Achieved

    Understanding the revenue generation and process optimization opportunities web APIs can bring to your organization.

    Knowledge of the current web API landscape. 

    Activities

    1.1 Examine the opportunities web APIs can enable.

    Outputs

    2 Design & Develop Your Web API

    The Purpose

    Establish a web API design and development process.

    Design scalable web APIs around defined business process flows and rules.

    Define the web service objects that the web APIs will expose. 

    Key Benefits Achieved

    Reusable web API designs.

    Identification of data sets that will be available through web services.

    Implement web API development best practices. 

    Activities

    2.1 Define high-level design details based on web API requirements.

    2.2 Define your process workflows and business rules.

    2.3 Map the relationships among data tables through ERDs.

    2.4 Define your data model by mapping the relationships among data tables through data flow diagrams.

    2.5 Define your web service objects by effectively referencing your data model.

    Outputs

    High-level web API design.

    Business process flow.

    Entity relationship diagrams.

    Data flow diagrams.

    Identification of web service objects.

    3 Test Your Web API

    The Purpose

    Incorporate APIs into your existing testing practices.

    Emphasize security testing with web APIs.

    Learn of the web API testing and monitoring tool landscape.

    Key Benefits Achieved

    Creation of a web API test plan.

    Activities

    3.1 Create a test plan for your web API.

    Outputs

    Web API Test Plan.

    4 Monitor and Continuously Optimize Your Web API

    The Purpose

    Plan for iterative development and maintenance of web APIs.

    Manage web APIs for versioning and reuse.

    Establish a governance structure to manage changes to web APIs. 

    Key Benefits Achieved

    Implement web API monitoring and maintenance best practices.

    Establishment of a process to manage future development and maintenance of web APIs. 

    Activities

    4.1 Identify roles for your API development projects.

    4.2 Develop governance for web API development.

    Outputs

    RACI table that accommodates API development.

    Web API operations governance structure.

    Identify and Manage Operational Risk Impacts on Your Organization

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    • Parent Category Name: Vendor Management
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    More than any other time, our world is changing. As a result, organizations – and their vendors – need to be able to adapt their plans to accommodate risk on an unprecedented level.

    A new threat will impact your organization's operations at some point. Make sure your plans are flexible enough to manage the inevitable consequences and that you understand where those threats may originate.

    Our Advice

    Critical Insight

    • Identifying and managing a vendor’s potential operational 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 may affect operations.
    • Organizational leadership is often taken unaware during crises, and their plans lack the flexibility to adjust to significant market upheavals.

    Impact and Result

    Vendor management practices educate organizations on the different potential risks from 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 with our Operational Risk Impact Tool.

    Identify and Manage Operational 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 Operational Risk Impacts to Your Organization Storyboard – Use this research to better understand the negative impacts of vendor actions to your brand reputation.

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

    • Identify and Manage Operational Risk Impacts to Your Organization Storyboard

    2. Operational Risk Impact Tool – Use this tool to help identify and quantify the operational 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.

    • Operational Risk Impact Tool
    [infographic]

    Further reading

    Identify and Manage Operational Risk Impacts on Your Organization

    Understand internal and external vendor risks to avoid potential disaster.

    Analyst perspective

    Organizations need to be aware of the operational damage vendors may cause to plan around those impacts effectively.

    Frank Sewell

    Organizations must be mindful that operational risks come from internal and external vendor sources. Missing either component in the overall risk assessment can significantly impact day-to-day business processes that cost revenue, delay projects, and lead to customer dissatisfaction.

    Frank Sewell,

    Research Director, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

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

    A new threat will impact your organization's operations at some point. Make sure your plans are flexible enough to manage the inevitable consequences and that you understand where those threats may originate.

    Common Obstacles

    Identifying and managing a vendor’s potential operational 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 may affect operations.

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

    Info-Tech's Approach

    Vendor management practices educate organizations on the different potential risks from 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 with our Operational Risk Impact Tool.

    Info-Tech Insight

    Organizations must evolve their risk assessments to be more adaptive to respond to threats in the market. Ongoing monitoring of the vendors tied to company operations, and understanding where those vendors impact your operations, is imperative to avoiding disasters.

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

    There are many individual components of vendor risk beyond cybersecurity.

    There are many components to vendor risk, including: 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.

    Operational risk impacts

    Potential losses to the organization due to incidents that affect operations.

    • In this blueprint we’ll explore operational risks, particularly from third-party vendors, and their impacts.
    • Identify potentially disruptive events to assess the overall impact on organizations and implement adaptive measures to identify, manage, and monitor vendor performance.
    Operational

    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:

    27%

    Businesses are changing their internal processes around TPRM in response to the Pandemic.

    70%

    Of organizations attribute a third-party breach to too much privileged access.

    85%

    Of breaches involved human factors (phishing, poor passwords, etc.).

    Assess internal and external operational risk impacts

    Due diligence and consistent monitoring are the keys to safeguarding your organization.

    Two sides of the Same Coin

    Internal

    • Poorly vetted supplemental staff
    • Bad system configurations
    • Lack of relevant skills
    • Poor vendor performance
    • Failure to follow established processes
    • Weak contractual accountability
    • Unsupportable or end-of-life system components

    External

    • Cyberattacks
    • Supply Chain Issues
    • Geopolitical Disruptions
    • Vendor Acquisitions
    • N-Party Non-Compliance
    • Vendor Fraud

    Operational risk is the risk of losses caused by flawed or failed processes, policies, systems, or events that disrupt business operations.

    - Wikipedia

    Internal operational risk

    Vendors operating within your secure perimeter can open your organization to substantial risk.

    Frequently monitor your internal process around vendor management to ensure safe operations.

    • Poorly vetted supplemental staff
    • Bad system configurations
    • Lack of relevant skills
    • Poor vendor performance
    • Failure to follow established processes
    • Weak contractual accountability
    • Unsupportable or end-of-life system components

    Info-Tech Insight

    You may have solid policies, but if your employees and vendors are not following them, they will not protect the organization.

    External operational risks

    • Cyberattacks
    • Supplier issues and geopolitical instability
    • Vendor acquisitions
    • N-party vendor non-compliance

    Identify and manage operational risks

    Poorly configured systems

    Failing to ensure that your vendor-supported systems are properly configured and that your vendors are meeting your IT change control and configuration standards is more commonplace than expected. Proper oversight and management of your support vendors are crucial to ensure they are meeting expectations in this regard.

    Failure to follow processes

    Most companies have policies and procedures around IT change and configuration control, security standards, risk management, vendor performance standards, etc. While having these processes is a good start, failure to perform continuous monitoring and management of these leads to increased risks of incidents.

    Supply chain disruptions

    Awareness of the supply chain's complications, and each organization's dependencies, are increasing for everyone. However, most organizations still do not understand the chain of n-party vendors that support their specific vendors or how interruptions in their supply chains could affect them. The 2022 Toyota shutdown due to Kojima is a perfect example of how one essential parts vendor could shut down your operations.

    What to look for

    Identify operational risk impacts

    • Does the vendor have a business continuity plan they will share for your review?
    • Is the vendor operating on old hardware that may be out of warranty or at end of life?
    • Is the vendor operating on older software or shareware that may lack the necessary patches?
    • Does the vendor self-audit, or do they use a vetted third-party audit firm to issue a SOC report annually?
    • Does the vendor have sufficient personnel in acceptable regions to support your operations?
    • Is the vendor willing to make concessions on contractual protections, or are they only offering “one-sided” agreements with “as-is” warranties?

    Operational risks

    Not knowing where your risks come from creates additional risks to operations.

    • Supply chain disruptions and global shortages.
      • Geopolitical disruptions and natural disasters have caused unprecedented interruptions to business. Do you know where your critical vendors are getting their supplies? Are you aware of their business continuity plans to accommodate for those interruptions?
    • Poor vendor performance.
      • Organizations need to understand where vendors are acting in their operations and manage the impact of replacing that vendor and cutting their losses rather than continuing to throw good money away after a bad performance.
    • Vendor acquisitions.
      • A lot of acquisition is going on in the market today. Large companies are buying competitors, imposing new terms on customers, or removing competing products from the market. Understand your options if a vendor is acquired by a company with which you do not wish to be in a relationship.

    It is important to identify where potential risks to your operations may come from to manage and potentially eliminate them from impacting your organization.

    Info-Tech Insight

    Most organizations realize that their vendors could operationally affect them if an incident occurs. Still, they fail to follow the chain of events that might arise from those incidents to understand the impact fully.

    Prepare your vendor 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.

    How to assess third-party operational risk

    1. Review Organizational Operations

      Understand the organization’s operational risks to prepare for the “what if” game exercise.
    2. Identify and Understand Potential Operational 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

    Operational risk impacts often come from unexpected places and have unforeseen impacts. Knowing where your vendors place in critical business processes and those vendors' business continuity plans concerning your organization should be a priority for those who manage the vendors.

    Insight 1

    Organizations fail to plan for vendor acquisitions appropriately.

    Vendors routinely get acquired in the IT space. Does your organization have appropriate safeguards from inadvertently entering a negative relationship? Do you have plans around replacing critical vendors purchased in such a manner?

    Insight 2

    Organizations often fail to understand how they factor into a vendor’s business continuity plan.

    If one of your critical vendors goes down, do you know how they intend to re-establish business? Do you know how you factor into their priorities?

    Insight 3

    Organizations need to have a comprehensive understanding of how their vendor-managed systems integrate with Operations.

    Do you understand where in the business processes vendor-supported systems lie? Do you have contingencies around disruptions that account for those pieces missing from the process?

    Identifying operational vendor 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 your organization's long-term potential for success.
    • Involving those who not only directly manage vendors but also understand your business processes will aid in determining the forward path for relationships with your current vendors and identifying new emerging potential partners.

    See the blueprint Build an IT Risk Management Program

    Review your operational plans for new risks 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 becoming closer to 100% as threat actors become more prevalent

    Managing vendor operational risk impacts

    What can we realistically do about the risks?

    • Review vendors’ business continuity plans and disaster recovery testing.
      • Understand your priority in their plans.
    • Institute proper contract lifecycle management.
      • Make sure to follow corporate due diligence and risk assessment policies and procedures.
      • Failure to do so consistently can be a recipe for disaster.
    • Develop IT governance and change control.
    • Introduce continual risk assessment to monitor the relevant vendor markets.
      • Regularly review your operational plans for new risks and evolving likelihoods.
      • Risk = Likelihood x Impact (R=L*I).
        • Impact (I) tends to remain the same and be well understood, while Likelihood (L) may often be considered 100%.
    • 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 plans accordingly.

    Organizations need to review their organizational risk plans, considering the placement of vendors in their operations.

    Pandemics, extreme weather, and wars that affect global supply chains are current realities, 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.

    • Break into smaller groups (or if too small, continue as a single group).
    • Use the Operational 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.
    • 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 Operational Risk Impact Tool

    Input

    • List of identified potential risk scenarios scored by likelihood and operational impact
    • List of potential management of the scenarios to reduce the risk

    Output

    • Comprehensive operational risk profile on the specific vendor solution

    Materials

    • Whiteboard/flip charts
    • Operational Risk Impact Tool to help drive discussion

    Participants

    • Vendor Management – Coordinator
    • Organizational Leadership
    • Operations Experts (SMEs)
    • Legal/Compliance/Risk Manager

    High risk example from tool

    Sample Questions to Ask to Identify Impacts. Lists questions impact score, weight, question and comments or notes.

    Being overly reliant on a single talented individual can impose risk to your operations. Make sure you include resiliency in your skill sets for critical business practices.

    Impact score and level. Each score for impacts are unique to the organization.

    Low risk example from tool

    Sample Questions to Ask to Identify Impacts. Lists questions impact score, weight, question and comments or notes. Impact score and level. Each score for impacts are unique to the organization.

    Summary

    Seek to understand all aspects of your operations.

    • Organizations need to understand and map out where vendors are critical to their operations.
    • Those organizations that consistently follow their established risk assessment and due diligence processes will be better positioned to avoid disasters.
    • Bring the right people to the table to outline potential risks in the market and your organization.
    • Understand how your vendors prioritize your organization in their business continuity processes.
    • Incorporate “lessons learned” from prior incidents into your risk management process to build better plans for future issues.

    Organizations must evolve their operational risk assessments considering their vendor portfolio.

    Ongoing monitoring of the market and the vendors tied to company operations is imperative to avoiding disaster.

    Related Info-Tech Research

    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.
    • Standardize your processes for identifying and monitoring vendor risks to manage financial impacts with our Financial Risk Impact Tool.

    Identify and Manage Reputational Risk Impacts on Your Organization

    • 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.
    • 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 Strategic Risk Impacts on Your Organization

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

    Bibliography

    “Weak Cybersecurity is taking a toll on Small Businesses.” Tripwire. August 7, 2022.

    SecureLink 2022 White Paper SL_Page_EA+PAM (rocketcdn.me)

    Member Poll March 2021 "Guide: Evolving Work Environments Impact of Covid-19 on Profile and Management of Third Parties.“ Shared Assessments. March 2021.

    “Operational Risk.” Wikipedia.

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

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

    Next-Generation InfraOps

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    • Traditional IT capabilities, activities, organizational structures, and culture need to adjust to leverage the value of cloud, optimize spend, and manage risk.
    • Different stakeholders across previously separate teams rely on one another more than ever, but rules of engagement do not yet exist.

    Our Advice

    Critical Insight

    • By defining your end goals and framing solutions based on the type of visibility and features you need, you can enable speed and reliability without losing control of the work.

    Impact and Result

    • Understand the xOps spectrum and what approaches benefit your organization.
    • Make sense of the architectural approaches and enablement tools available to you.
    • Evolve from just improving your current operations to a continuous virtuous cycle of development and deployment.

    Next-Generation InfraOps Research & Tools

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

    1. Next-Generation InfraOps Storyboard – A deck that will help you use Ops methodologies to build a virtuous cycle.

    This storyboard will help you understand the spectrum of different Agile xOps working modes and how best to leverage them and build an architecture and toolset that support rapid continuous IT operations

    • Next-Generation InfraOps Storyboard
    [infographic]

    Further reading

    Next-Generation InfraOps

    Embrace the spectrum of Ops methodologies to build a virtuous cycle.

    Executive summary

    Your Challenge

    IT Operations continue to be challenged by increasing needs for scale and speed, often in the face of constrained resources and time. For most, Agile methodologies have become a foundational part of tackling this problem. Since then, we've seen Agile evolve into DevOps, which started a trend into different categories of "xOps" that are too many to count. How does one make sense of the xOps spectrum? What is InfraOps and where does it fit in?

    Common Obstacles

    Ultimately, all these methodologies and approaches are there to serve the same purpose: increase effectiveness through automation and improve governance through visibility. The key is to understand what tools and methodologies will deliver actual benefits to your IT operation and to the organization as a whole.

    Info-Tech's Approach

    By defining your end goals and framing solutions based on the type of visibility and features you need, you can enable speed and reliability without losing control of the work.

    1. Understand the xOps spectrum and what approaches will benefit your organization.
    2. Make sense of the architectural approaches and enablement tools available to you.
    3. Evolve from just improving your current operations to a continuous virtuous cycle of development and deployment.

    Info-Tech Insight

    InfraOps, when applied well, should be the embodiment of the governance policies as expressed by standards in architecture and automation.

    Project overview

    Understand the xOps spectrum

    There are as many different types of "xOps" as there are business models and IT teams. To pick the approaches that deliver the best value to your organization and that align to your way of operating, it's important to understand the different major categories in the spectrum and how they do or don't apply to your IT approach.

    How to optimize the Ops in DevOps

    InfraOps is one of the major methodologies to address a key problem in IT at cloud scale: eliminating friction and error from your deliveries and outputs. The good news is there are architectures, tools, and frameworks you can easily leverage to make adopting this approach easier.

    Evolve to integration and build a virtuous cycle

    Ultimately your DevOps and InfraOps approaches should embody your governance needs via architecture and process. As time goes on, however, both your IT footprint and your business environment will shift. Build your tools, telemetry, and governance to anticipate and adapt to change and build a virtuous cycle between development needs and IT Operations tools and governance.

    The xOps spectrum

    This is an image of the xOps spectrum. The three main parts are: Code Acceleration (left), Governance(middle), and Infrastructure Acceleration (right)

    xOps categories

    There is no definitive list of x's in the xOps spectrum. Different organizations and teams will divide and define these in different ways. In many cases, the definitions and domains of various xOps will overlap.

    Some of the commonly adopted and defined xOps models are listed here.

    Shift left? Shift right?

    Cutting through the jargon

    • Shifting left is about focusing on the code and development aspects of a delivery cycle.
    • Shifting right is about remembering that infrastructure and tools still do matter.

    Info-Tech Insight

    Shifting left or right isn't an either/or choice. They're more like opposite sides of the same coin. Like the different xOps approaches, usually more than one shift approach will apply to your IT Operations.

    IT Operations in the left-right spectrum

    Shifting from executing and deploying to defining the guardrails and standards

    This is an image of the left-right spectrum for your XOps position

    Take a middle-out approach

    InfraOps and DevOps aren't enemies; they're opposite sides of the same coin.

    • InfraOps is about the automation and standardization of execution. It's an essential element in any fully automated CI/CD pipeline.
    • Like DevOps, InfraOps is built on similar values (the pillars of DevOps).
    • It builds on the principle of Lean to focus on removing friction, or turn-and-type activities, from the pipeline/process.
    • In InfraOps, one of the key methods for removing friction is through automation of the interstitia between different phases of a DevOps or CI/CD cycle.

    Optimize the Ops in DevOps

    Focus on eliminating friction

    This is an image of an approach to optimizing the ops in DevOps.

    With the shift from execution to governing and validating, the role of deployment falls downstream of IT Operations.

    IT Operations needs to move to a mindset that focuses on creating the guardrails, enforced standards, and compliance rules that need to be used downstream, then apply those standards using automation and tooling to remove friction and error from the interstitia (the white spaces between chevrons) of the various phases.

    InfraOps tools

    Four quadrants in the shape of a human head, in the boxes are the following: Hyperconverged Infrastructure; Composable Infrastructure; Infrastructure as code and; Automation and Orchestration

    Info-Tech Insight

    Your tools can be broken into two categories:

    • Infrastructure Architecture
      • HCI vs. CI
    • Automation Tooling
      • IaC and A&O

    Keep in mind that while your infrastructure architecture is usually an either/or choice, your automation approach should use any and all tooling that helps.

    Infrastructure approach

    • Hyperconverged

    • Composable

    Hyperconverged Infrastructure (HCI)

    Hyperconvergence is the next phase of convergence, virtualizing servers, networks, and storage on a single server/storage appliance. Capacity scales as more appliances are added to a cluster or stack.
    The disruptive departure:

    • Even though servers, networks, and storage were each on their own convergence paths, the three remained separate management domains (or silos). Even single-SKU converged infrastructures like VCE Vblocks are still composed of distinct server, network, and storage devices.
    • In hyperconvergence, the silos collapse into single-software managed devices. This has been disruptive for both the vendors of technology solutions (especially storage) and for infrastructure management.
    • Large storage array vendors are challenged by hyperconvergence alternatives. IT departments need to adapt IT skills and roles away from individual management silos and to more holistic service management.

    A comparison between converged and hyperconverged systems.

    Info-Tech Insight

    HCI follows convergence trends of the past ten years but is also a departure from how IT infrastructure has traditionally been provisioned and managed.

    HCI is at the same time a logical progression of infrastructure convergence and a disruptive departure.

    Hyperconverged (HCI) – SWOT

    HCI can be the foundation block for a fully software defined data center, a prerequisite for private cloud.

    Strengths

    • Potentially lower TCO through further infrastructure consolidation, reducing CapEx and OpEx expenditures through facilities optimization and cost consolidation.
    • Operations in particular can be streamlined, since storage, network connections, and processors/memory are all managed as abstractions via a single control pane.
    • HCI comes with built-in automation and analytics that lead to quicker issue resolution.

    Opportunities

    • Increased business agility by paving the way for a fully software defined infrastructure stack and cloud automation.
    • Shift IT human assets from hardware asset maintainers and controllers to service delivery managers.
    • Better able to compete with external IT service alternatives.
    • Move toward a hybrid cloud service offering where the service catalog contains both internal and external offerings.

    Key attributes of a cloud are automation, resource elasticity, and self-service. This kind of agility is impossible if physical infrastructure needs intervention.

    Info-Tech Insight

    Virtualization alone does not a private cloud make, but complete stack virtualization (software defined) running on a hands-off preconfigured HCI appliance (or group of appliances) provides a solid foundation for building cloud services.

    Hyperconverged (HCI) – SWOT

    Silo-busting and private cloud sound great, but are your people and processes able to manage the change?

    Weaknesses

    • HCI typically scales out linearly (CPU & storage). This does not suit traditional scale-up applications such as high-performance databases and large-capacity data warehouses.
    • Infrastructure stacks are perceived as more flexible for variable growth across segments. For example, if storage is growing but processing is not, storage can scale separately from processing.

    Threats

    • HCI will be disruptive to roles within IT. Internal pushback is a real threat if necessary changes in skills and roles are not addressed.
    • HCI is not a simple component replacement but an adoption of a different kind of infrastructure. Different places in the lifecycles for each of storage, network, and processing devices could make HCI a solution where there is no immediate problem.

    In traditional infrastructure, performance and capacity are managed as distinct though complementary jobs. An all-in-one approach may not work.

    Composable Infrastructure (CI)

    • Composable infrastructure in many ways represents the opposite of an HCI approach. Its focus is on further disaggregating resources and components used to build systems.
      • Unlike traditional cloud virtual systems, composable infrastructure provides virtual bare metal resources, allowing tightly coupled resources like CPU, RAM, and GPU – or any device/card/module – to be released back and forth into the resource pool as required by a given workload.
      • This is enabled by the use of high-speed, low-latency PCI Express (PCI-e) and Compute Express Link (CXL) fabrics that allow these resources to be decoupled.
      • It also supports the ability to present other fabric types critical for building out enterprise systems (e.g. Ethernet, InfiniBand).
    • Accordingly, CI systems are also based on next-generation network architecture that supports moving critical functions to the network layer, which enables more efficient use of the application-layer resources.

    Composable Infrastructure (CI)

    • CI may also leverage network-resident data/infrastructure processing units (DPUs/IPUs), which offload many network, security, and storage functions.
      • As new devices and functions become available, they can be added into the catalog of resources/functions available in a CI pool.

    Use Case Example: Composable AI flow

    Data Ingestion > Data Cleaning/Tagging > Training > Conclusion

    • At each phase of the process, resources, including specialized hardware like memory and GPU cores, can be dynamically allocated and reallocated to the workload on demand

    Composable Infrastructure (CI)

    Use cases and considerations

    Where it's useful

    • Enable even more efficient allocation/utilization of resources for workloads.
    • Very large memory or shared memory requirements can benefit greatly.
    • Decouple purchasing decisions for underlying resources.
    • Leverage the fabric to make it easier to incrementally upgrade underlying resources as required.
    • Build "the Impossible Server."

    Considerations

    • Requires significant footprint/scale to justify in many cases
    • Not necessarily good value for environments that aren't very volatile and heterogeneous in terms of deployment requirements
    • May not be best value for environments where resource-stranding is not a significant issue

    Info-Tech Insight

    Many organizations using a traditional approach report resource stranding as having an impact of 20% or more on efficiency. When focusing specifically on the stranding of memory in workloads, the number can often approach 40%.

    The CI ecosystem

    This is an image of the CI ecosystem.

    • The CI ecosystem has many players, large and small!
    • Note that the CI ecosystem is dependent on a large ecosystem of underlying enablers and component builders to support the required technologies.

    Understanding the differences

    This image shows the similarities and differences between traditional, cloud, hyperconverged, and composable.

    Automation approach

    • Infrastructure as Code
    • Automation & Orchestration
    • Metaorchestration

    Infrastructure as Code (IaC)

    Infrastructure as code (IaC) is the process of managing and provisioning computer data centers through machine-readable definition files rather than physical hardware configuration or interactive configuration tools.

    Before IaC, IT personnel would have to manually change configurations to manage their infrastructure. Maybe they would use throwaway scripts to automate some tasks, but that was the extent of it.

    With IaC, your infrastructure's configuration takes the form of a code file, making it easy to edit, copy, and distribute.

    Info-Tech Insight
    IaC is a critical tool in enabling key benefits!

    • Reduced costs
    • Increased scalability, flexibility, and speed
    • Better consistency and version control
    • Reduced deployment errors

    Infrastructure as Code (IaC)

    1. IaC uses a high-level descriptive coding language to automate the provisioning of IT infrastructure. This eliminates the need to manually provision and manage servers, OS, database connections, storage, and other elements every time we want to develop, test, or deploy an application.
    2. IaC allows us to define the computer systems on which code needs to run. Most commonly, we use a framework like Chef, Ansible, Puppet, etc., to define their infrastructure. These automation and orchestration tools focus on the provisioning and configuring of base compute infrastructure.
    3. IaC is also an essential DevOps practice. It enables teams to rapidly create and version infrastructure in the same way they version source code and to track these versions so as to avoid inconsistency among IT environments that can lead to serious issues during deployment.
    • Idempotence is a principle of IaC. This means a deployment command always sets the target environment into the same configuration, regardless of the environment's starting state.
      • Idempotency is achieved by either automatically configuring an existing target or discarding the existing target and recreating a fresh environment.

    Automation/Orchestration

    Orchestration describes the automated arrangement, coordination, and management of complex computer systems, middleware, and services.

    This usage of orchestration is often discussed in the context of service-oriented architecture, virtualization, provisioning, converged infrastructure, and dynamic data center topics. Orchestration in this sense is about aligning the business request with the applications, data, and infrastructure.

    It defines the policies and service levels through automated workflows,
    provisioning, and change management. This creates an application-aligned infrastructure that can be scaled up or down based on the needs of each application.

    As the requirement for more resources or a new application is triggered, automated tools now can perform tasks that previously could only be done by multiple administrators operating on their individual pieces of the physical stack.

    Orchestration also provides centralized management of the resource pool, including billing, metering, and chargeback for consumption. For example, orchestration reduces the time and effort for deploying multiple instances of a single application.

    Info-Tech Insight

    Automation and orchestration tools can be key components of an effective governance toolkit too! Remember to understand what data can be pulled from your various tools and leveraged for other purposes such as cost management and portfolio roadmapping.

    Automation/Orchestration

    There are a wide variety of orchestration and automation tools and technologies.

    Configuration Management

    Configuration Management

    The logos for companies which fall in each of the categories in the column to the left of the image.

    CI/CD
    Orchestration

    Container
    Orchestration

    Cloud-Specific
    Orchestration

    PaaS
    Orchestration

    Info-Tech Insight

    Automation and orchestration tools and software offerings are plentiful, and many of them have a different focus on where in the application delivery ecosystem they provide automation functionality.

    Often there are different tools for different deployment and service models as well as for different functional phases for each service model.

    Automation/Orchestration

    Every tool focuses on different aspects or functions of the deployment of resources and applications.

    • Resources
      • Compute
      • Storage
      • Network
    • Extended Services
      • Platforms
      • Infrastructure Services
      • Web Services
    • Application Assets
      • Images
      • Templates
      • Containers
      • Code

    Info-Tech Insight

    Let the large ecosystem of tools be your ally. Leverage the right tools where needed and then address the complexity of tools using a master orchestration scheme.

    Metaorchestration

    A Flow chart for the approach to metaorchestration.

    Additionally, most tools do not cover all aspects required for most automation implementations, especially in hybrid cloud scenarios.

    As such, often multiple tools must be deployed, which can lead to fragmentation and loss of unified controls.

    Many enterprises address this fragmentation using a cloud management platform approach.

    One method of achieving this is to establish a higher layer of orchestration – an "orchestrator of orchestrators," or metaorchestration.

    In complex scenarios, this can be a challenge that requires customization and development.

    InfraOps tools ecosystem

    Toolkit Pros Cons Tips
    HCI Easy scale out Shift in skills required Good for enabling automation and hybridization with current-gen public cloud services
    CI Maximal workload resource efficiency Investment in new fabrics and technologies Useful for very dynamic or highly scalable workloads like AI
    IaC Error reduction and standardization Managing drift in standards and requirements Leverage a standards and exception process to keep track of drift
    A&O Key enabler of DevOps automation within phases Usually requires multiple toolsets/frameworks Use the right tools and stitch together at the metaorchestration layer
    Metaorchestration Reduces the complexity of a diverse A&O and IaC toolkit Requires understanding of the entire ecosystems of tools used Key layer of visibility and control for governance

    Build a virtuous cycle

    Remember, the goal is to increase speed AND reliability. That's why we focus on removing friction from our delivery pipelines.

    • The first step is to identify the points of friction in your cycle and understand the intensity and frequency of these friction points.
    • Depending on your delivery and project management methodology, you'll have a different posture of the different tools that make sense for your pipeline.
    • For example, if you are focused on delivering raw resources for sysadmins and/or you're in a Waterfall methodology where the friction points are large but infrequent, hyperconverged is likely to delivery good value, whereas tools like IaC and orchestration may not be as necessary.

    Info-Tech Insight

    Remember that, especially in modern and rapid methodologies, your IT footprint can drift unexpectedly. This means you need a real feedback mechanism on where the friction moves to next.

    This is particularly important in more Agile methodologies.

    Activity: Map your IT operations delivery

    Identify your high-friction interstitial points

    • Using the table below, or a table modified to your delivery phases, map out the activities and tasks that are not standardized and automated.
    • For the incoming and outgoing sections, think about what resources and activities need to be (or could be) created, destroyed, or repurposed to efficiently manage each cycle and the spaces between cycles.
    Plan Code Test Deploy Monitor
    Incoming Friction
    In-Cycle Friction
    Outgoing Friction

    Info-Tech Insight

    Map your ops groups to the delivery cycles in your pipeline. How many delivery cycles do you have or need?

    Good InfraOps is a reflection of governance policies, expressed by standards in architecture and automation.

    Related Info-Tech Research

    Evaluate Hyperconverged Infrastructure for Your Infrastructure Roadmap

    • This Info-Tech note covers evaluation of HCI platforms.

    Design Your Cloud Operations

    • This Info-Tech blueprint covers organization of operations teams for various deployment and Agile modes.

    Bibliography

    Banks, Ethan, host. "Choosing Your Next Infrastructure." Datanauts, episode 094, Packet Pushers, 26 July 2017. Podcast.
    "Composable Infrastructure Solutions." Hewlett Packard Canada, n.d. Web.
    "Composable Infrastructure Technology." Liqid Inc., n.d. Web.
    "DataOps architecture design." Azure Architecture Center, Microsoft Learn, n.d. Web.
    Tan, Pei Send. "Differences: DevOps, ITOps, MLOps, DataOps, ModelOps, AIOps, SecOps, DevSecOps." Medium, 5 July 2021. Web.

    Make the Case for Product Delivery

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    • Parent Category Name: Architecture & Strategy
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    • Organizations are traditionally organized to deliver initiatives in specific periods of time. This is in contention with product-centric delivery practices. This form of delivery acknowledges the reality that solutions of all shapes and sizes deliver continual and evolving business value over their lifetime.
    • Delivering multiple products together creates additional challenges because each product has its own pedigree, history, and goals.
    • Product owners struggle to prioritize changes to deliver product value. This creates a gap and conflict between product and enterprise goals.

    Our Advice

    Critical Insight

    • Delivering products doesn’t mean you will stop delivering projects! Product-centric delivery is intended to address the misalignment between the long-term delivery of value that organizations demand and the nature of traditional project-focused environments.

    Impact and Result

    • We will help you build a proposal deck to make the case to your stakeholders for product-centric delivery.
    • You will build this proposal deck by answering key questions about product-centric delivery so you can identify:
      • A common definition of product.
      • How this form of delivery differs from traditional project-centric approaches.
      • Key challenges and benefits.
      • The capabilities needed to effectively own products and deliver value.
      • What you are asking of stakeholders.
      • A roadmap of how to get started.

    Make the Case for Product Delivery Research & Tools

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

    1. Make the Case for Product Delivery Deck – A guide to help align your organization on the practices to deliver what matters most.

    This project will help you define “product” for your organization, define your drivers and goals for moving to product delivery, understand the role of product ownership, lay out the case to your stakeholders, and communicate what comes next for your transition to product.

    • Make the Case for Product Delivery Storyboard

    2. Make the Case for Product Delivery Presentation Template – A template to help you capture and detail your case for product delivery.

    Build a proposal deck to help make the case to your stakeholders for product-centric delivery.

    • Make the Case for Product Delivery Presentation Template

    3. Make the Case for Product Delivery Workbook – A tool to capture the results of exercises to build your case to change your product delivery method.

    This workbook is designed to capture the results of the exercises in the Make the Case for Product Delivery Storyboard. Each worksheet corresponds to an exercise in the storyboard. The workbook is also a living artifact that should be updated periodically as the needs of your team and organization change.

    • Make the Case for Product Delivery Workbook
    [infographic]

    Further reading

    Make the Case for Product Delivery

    Align your organization on the practices to deliver what matters most.

    Table of Contents

    Define product

    Define your drivers and goals

    Understand the role of product ownership

    Communicate what comes next

    Make the case to your stakeholders

    Appendix: Additional research

    Appendix: Product delivery strategy communication

    Appendix: Manage stakeholder influence

    Appendix: Product owner capability details

    Executive Summary

    Your Challenge
    • Products are the lifeblood of an organization. They deliver the capabilities needed to deliver value to customers, internal users, and stakeholders.
    • Organizations are under pressure to align the value they provide with the organization’s goals and overall company vision.
    • You need to clearly convey the direction and strategy of your product portfolio to gain alignment, support, and funding from your organization.
    Common Obstacles
    • IT organizations are traditionally organized to deliver initiatives in specific periods of time. This is in contention with product-centric delivery.
    • Product delivery acknowledges the reality that solutions of all shapes and sizes deliver continual and evolving business value over their lifetime.
    • Delivering multiple products together creates additional challenges because each product has its own pedigree, history, and goals.
    • Product owners struggle to prioritize changes to deliver product value. This creates a gap and conflict between product and enterprise goals.
    Info-Tech’s Approach
    • Info-Tech will enable you to build a proposal deck to make the case to your stakeholders for product-centric delivery.
    • You will build this proposal deck by answering key questions about product-centric delivery so you can identify:
      • A common definition of product.
      • How this form of delivery differs from traditional project-centric approaches.
      • Key challenges and benefits.
      • The capabilities needed to effectively own products and deliver value.
      • What you are asking of stakeholders.
      • A roadmap of how to get started.

    Info-Tech Insight

    Delivering products doesn’t mean you will stop delivering projects! Product-centric delivery is intended to address the misalignment between the long-term delivery of value that organizations demand and the nature of traditional project-focused environments.

    Many executives perceive IT as being poorly aligned with business objectives

    Info-Tech’s CIO Business Vision Survey data highlights the importance of IT initiatives in supporting the business in achieving its strategic goals.

    However, Info-Tech’s CEO-CIO Alignment Survey (2021; N=58) data indicates that CEOs perceive IT to be poorly aligned to business’ strategic goals.

    Info-Tech CEO-CIO Alignment Diagnostics, 2021 (N=58)

    40% Of CEOs believe that business goals are going unsupported by IT.

    34% Of business stakeholders are supporters of their IT departments (n=334).

    40% Of CIOs/CEOs are misaligned on the target role for IT.

    Info-Tech Insight

    Great technical solutions are not the primary driver of IT success. Focusing on delivery of digital products that align with organizational goals will produce improved outcomes and will foster an improved relationship between business and IT.

    Increase product success by involving IT, business, and customers in your product roadmaps, planning, and delivery

    Product management and delivery seek to promote improved relationships among IT, business, and customers, a critical driver for business satisfaction.

    IT

    Stock image of an IT professional.

    1

    Collaboration

    IT, business, and customers work together through all stages of the product lifecycle, from market research through the roadmapping and delivery processes and into maintenance and retirement. The goal is to ensure the risks and dependencies are realized before work is committed.

    Stakeholders, Customers, and Business

    Stock image of a business professional.

    2

    Communication

    Prioritize high-value modes of communication to break down existing silos and create common understanding and alignment across functions. This approach increases transparency and visibility across the entire product lifecycle.

    3

    Integration

    Explore methods to integrate the workflows, decision making, and toolsets among the business, IT, and customers. The goal is to become more reactive to changes in business and customer expectations and more proactive about market trends.

    Product does not mean the same thing to everyone

    Do not expect a universal definition of products.
    Every organization and industry has a different definition of what a product is. Organizations structure their people, processes, and technologies according to their definition of the products they manage. Conflicting product definitions between teams increase confusion and misalignment of product roadmaps.

    “A product [is] something (physical or not) that is created through a process and that provides benefits to a market.” (Mike Cohn, Founding Member of Agile Alliance and Scrum Alliance) “A product is something ... that is created and then made available to customers, usually with a distinct name or order number.” (TechTarget) “A product is the physical object ... , software or service from which customer gets direct utility plus a number of other factors, services, and perceptions that make the product useful, desirable [and] convenient.” (Mark Curphey)

    Organizations need a common understanding of what a product is and how it pertains to the business.

    This understanding needs to be accepted across the organization.

    “There is not a lot of guidance in the industry on how to define [products]. This is dangerous because what will happen is that product backlogs will be formed in too many areas. All that does is create dependencies and coordination across teams … and backlogs.” (Chad Beier, “How Do You Define a Product?” Scrum.org)

    Products enable the long-term and continuous delivery of value

    Diagram laying out the lifecycles and roadmaps contributing to the 'Continuous delivery of value'. Beginning with 'Project Lifecycle' in which Projects with features and services end in a Product Release that is disconnected from the continuum. Then the 'Hybrid Lifecycle' and 'Product Lifecycle' which are connected by a 'Product Roadmap' and 'Product Backlog' have Product Releases that connect to the continuum.

    Phase 1

    Build the case for product-centric delivery

    Phase 1
    1.1 Define product
    1.2 Define your drivers and goals
    1.3 Understand the role of product ownership
    1.4 Communicate what comes next
    1.5 Make the case to your stakeholders

    This phase will walk you through the following activities:

    • Define product in your context.
    • Define your drivers and goals for moving to product delivery.
    • Understand the role of product ownership.
    • Communicate what comes next for your transition to product.
    • Lay out the case to your stakeholders.

    This phase involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Step 1.1

    Define product

    Activities
    • 1.1.1 Define “product” in your context
    • 1.1.2 Consider examples of what is (and is not) a product in your organization
    • 1.1.3 Identify the differences between project and product delivery

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A clear definition of product in your organization’s context.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Exercise 1.1.1 Define “product” in your context

    30-60 minutes

    Output: Your enterprise/organizational definition of products and services

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Discuss what “product” means in your organization.
    2. Create a common, enterprise-wide definition for “product.”
    “A product [is] something (physical or not) that is created through a process and that provides benefits to a market.” (Mike Cohn, Founding Member of Agile Alliance and Scrum Alliance) “A product is something ... that is created and then made available to customers, usually with a distinct name or order number.” (TechTarget) “A product is the physical object ... , software or service from which customer gets direct utility plus a number of other factors, services, and perceptions that make the product useful, desirable [and] convenient.” (Mark Curphey)

    Record the results in the Make the Case for Product-Centric Delivery Workbook.

    Example: What is a product?

    Not all organizations will define products in the same way. Take this as a general example:

    “A tangible solution, tool, or service (physical or digital) that enables the long-term and evolving delivery of value to customers and stakeholders based on business and user requirements.”

    Info-Tech Insight

    A proper definition of product recognizes three key facts:

    1. Products are long-term endeavors that don’t end after the project finishes.
    2. Products are not just “apps” but can be software or services that drive the delivery of value.
    3. There is more than one stakeholder group that derives value from the product or service.
    Stock image of an open human head with gears and a city for a brain.

    How do we know what is a product?

    What isn’t a product:
    • Features (on their own)
    • Transactions
    • Unstructured data
    • One-time solutions
    • Non-repeatable processes
    • Solutions that have no users or consumers
    • People or teams
    You have a product if the given item...
    • Has end users or consumers
    • Delivers quantifiable value
    • Evolves or changes over time
    • Has predictable delivery
    • Has definable boundaries
    • Has a cost to produce and operate

    Exercise 1.1.2 Consider examples of what is (and is not) a product in your organization

    15 minutes

    Output: Examples of what is and isn’t a product in your specific context.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Leverage the definition you created in exercise 1.1.1 and the explanation on the slide What is a product?
    2. Pick examples that effectively show the difference between products and non-products and facilitate a conversation on the ones that seem to be on the line. Specific server instances, or instances of providing a service, are worthwhile examples to consider.
    3. From the list you come up with, take the top three examples and put them into the Make the Case for Product Delivery Presentation Template.
    Example:
    What isn’t a product?
    • Month-end SQL scripts to close the books
    • Support Engineer doing a password reset
    • Latest research project in R&D
    What is a product?
    • Self-service password reset portal
    • Oracle ERP installation
    • Microsoft Office 365

    Record the results in the Make the Case for Product Delivery Workbook.

    Product delivery practices should consider everything required to support it, not just what users see.

    Cross-section of an iceberg above and below water with visible product delivery practices like 'Funding', 'External Relationships', and 'Stakeholder Management' above water and internal product delivery practices like 'Product Governance', 'Business Functionality', and 'R&D' under water. There are far more processes below the water.

    Products and services share the same foundation and best practices

    For the purpose of this blueprint, product/service and product owner/service owner are used interchangeably. Product is used for consistency but would apply to services as well.

    Product = Service

    “Product” and “service” are terms that each organization needs to define to fit its culture and customers (internal and external). The most important aspect is consistent use and understanding of:
    • External products
    • Internal products
    • External services
    • Internal services
    • Products as a service (PaaS)
    • Productizing services (SaaS)

    Exercise 1.1.3 Identify the differences between project and product delivery

    30-60 minutes

    Output: List of differences between project and product delivery

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Consider project delivery and product delivery.
    2. Discuss what some differences are between the two.
      Note: This exercise is not about identifying the advantages and disadvantages of each style of delivery. This is to identify the variation between the two.
    Theme Project Delivery (Current) Product Delivery (Future)
    Timing Defined start and end Does not end until the product is no longer needed
    Funding Funding projects Funding products and teams
    Prioritization LoB sponsors Product owner
    Capacity Management Project management Managed by product team

    Record the results in the Make the Case for Product Delivery Workbook.

    Identify the differences between a project-centric and a product-centric organization

    Project Product
    Fund projects — Funding –› Fund products or teams
    Line of business sponsor — Prioritization –› Product owner
    Makes specific changes to a product —Product management –› Improves product maturity and support
    Assignment of people to work — Work allocation –› Assignment of work to product teams
    Project manager manages — Capacity management –› Team manages capacity

    Info-Tech Insights

    • Product ownership should be one of your first areas of focus when transitioning from project to product delivery.
    • Product delivery requires significant shifts in the way you complete development work and deliver value to your users. Make the changes that support improving end-user value and enterprise alignment.

    Projects can be a mechanism for funding product changes and improvements

    Diagram laying out the lifecycles and roadmaps contributing to the 'Continuous delivery of value'. Beginning with 'Project Lifecycle' in which Projects with features and services end in a Product Release that is disconnected from the continuum. Then the 'Hybrid Lifecycle' and 'Product Lifecycle' which are connected by a 'Product Roadmap' and 'Product Backlog' have Product Releases that connect to the continuum. Projects within products

    Regardless of whether you recognize yourself as a product-based or project-based shop, the same basic principles should apply.

    The purpose of projects is to deliver the scope of a product release. The shift to product delivery leverages a product roadmap and backlog as the mechanism for defining and managing the scope of the release.

    Eventually, teams progress to continuous integration/continuous delivery (CI/CD) where they can release on demand or as scheduled, requiring org change management.

    Step 1.2

    Define your drivers and goals

    Activities
    • 1.2.1 Understand your drivers for product-centric delivery
    • 1.2.2 Define the goals for your product-centric organization

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A clear understanding of your motivations and desired outcomes for moving to product delivery.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Exercise 1.2.1 Understand your drivers for product-centric delivery

    30-60 minutes

    Output: Organizational drivers to move to product-centric delivery.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify your pain points in the current delivery model.
    2. What is the root cause of these pain points?
    3. How will a product-centric delivery model fix the root cause (drivers)?
    Pain Points
    • Lack of ownership
    Root Causes
    • Siloed departments
    Drivers
    • Accountability

    Record the results in the Make the Case for Product Delivery Workbook.

    Exercise 1.2.2 Define the goals for your product-centric organization

    30 minutes

    Output: Goals for product-centric delivery

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Review the differences between project and product delivery from exercise 1.1.3 and the list of drivers from exercise 1.2.1.
    2. Define your goals for achieving a product-centric organization.
      Note: Your drivers may have already covered the goals. If so, review if you would like to change the drivers based on your renewed understanding of the differences between project and product delivery.
    Pain Points
    • Lack of ownership
    Root Causes
    • Siloed departments
    Drivers
    • Accountability
    Goals
    • End-to-end ownership

    Record the results in the Make the Case for Product Delivery Workbook.

    Step 1.3

    Understand the role of product ownership

    Activities
    • 1.3.1 Identify product ownership capabilities

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • Product owner capabilities that you agree are critical to start your product transformation.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Accountability for the delivery of value through product ownership is not optional

    Tree of 'Enterprise Goals and Priorities' leading to 'Product' through a 'Product Family'.

    Info-Tech Insight

    People treat the assignment of accountability for products (aka product ownership) as optional. Without assigning accountability up front, your transition to product delivery will stall. Accountable individuals will be focused on the core outcome for product delivery, which is the delivery of the right value, at the right time, to the right people.

    Description of the tree levels shown in the diagram on the left. First is 'Enterprise Goals and Priorities', led by 'Executive Leadership' using the 'Enterprise Strategic Roadmap'. Second is 'Product Family', led by 'Product Manager' using the 'Product Family Roadmap'. Last is 'Product', led by the 'Product Owner' using the 'Product Roadmap' and 'Backlog' on the strategic end, and 'Releases' on the Tactical end. In the holistic context, 'Product Family is considered 'Strategic' while 'Product' is 'Tactical'.

    Recognize the different product owner perspectives

    Business
    • Customer facing, revenue generating
    Technical
    • IT systems and tools
    Operations
    • Keep the lights on processes

    Info-Tech Best Practice

    Product owners must translate needs and constraints from their perspective into the language of their audience. Kathy Borneman, Digital Product Owner at SunTrust Bank, noted the challenges of finding a common language between lines of business and IT (e.g. what is a unit?).

    Info-Tech Insight

    Recognize that product owners represent one of three primary perspectives. Although all share the same capabilities, how they approach their responsibilities is influenced by their perspective.

    “A Product Owner in its most beneficial form acts like an Entrepreneur, like a 'mini-CEO'. The Product Owner is someone who really 'owns' the product.” (Robbin Schuurman, “Tips for Starting Product Owners”)

    Implement the Info-Tech product owner capability model

    As discussed in Build a Better Product Owner, most product owners operate with an incomplete knowledge of the skills and capabilities needed to perform the role. Common gaps include focusing only on product backlogs, acting as a proxy for product decisions, and ignoring the need for key performance indicators (KPIs) and analytics in both planning and value realization. 'Product Owner Capabilities': 'Vision', 'Leadership', 'Product Lifecycle Management', 'Value Realization'.
    Vision
    • Market Analysis
    • Business Alignment
    • Product Roadmap
    Leadership
    • Soft Skills
    • Collaboration
    • Decision Making
    Product Lifecycle Management
    • Plan
    • Build
    • Run
    Value Realization
    • KPIs
    • Financial Management
    • Business Model

    Details on product ownership capabilities can be found in the appendix.

    Exercise 1.3.1 Identify product ownership capabilities

    60 minutes

    Output: Product owner capability mapping

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Write down the capabilities product owners need to perform their duties (one per sticky note) in order to describe product ownership in your organization. Consider people, processes, and tools.
    2. Mark each capability with a plus (current capability), circle (some proficiency), or dash (missing capability).
    3. Discuss each capability and place on the appropriate quadrant.

    'Product Owner Capabilities': 'Vision', 'Leadership', 'Product Lifecycle Management', 'Value Realization'.

    Record the results in the Make the Case for Product Delivery Workbook.

    Differentiate between product owners and product managers

    Product Owner (Tactical Focus)
    • Backlog management and prioritization
    • Epic/story definition, refinement in conjunction with business stakeholders
    • Sprint planning with Scrum Master
    • Working with Scrum Master to minimize disruption to team velocity
    • Ensuring alignment between business and Scrum teams during sprints
    • Profit and loss (P&L) product analysis and monitoring
    Product Manager (Strategic Focus)
    • Product strategy, positioning, and messaging
    • Product vision and product roadmap
    • Competitive analysis and positioning
    • New product innovation/definition
    • Release timing and focus (release themes)
    • Ongoing optimization of product-related marketing and sales activities
    • P&L product analysis and monitoring

    Info-Tech Insight

    “Product owner” and “product manager” are terms that should be adapted to fit your culture and product hierarchy. These are not management relationships but rather a way to structure related products and services that touch the same end users.

    Step 1.4

    Communicate what comes next

    Activities
    • 1.4.1 How do we get started?

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A now, next, later roadmap indicating your overall next steps.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Make a plan in order to make a plan!

    Consider some of the techniques you can use to validate your strategy.

    Cyclical diagram of the 'Continuous Delivery of Value' within 'Business Value'. Surrounding attributes are 'User Centric', 'Adaptable', 'Accessible', 'Private & Secured', 'Informative & Insightful', 'Seamless Application Connection', 'Relationship & Network Building', 'Fit for Purpose'.

    Go to your backlog and prioritize the elements that need to be answered sooner rather than later.

    Possible areas of focus:

    • Regulatory requirements or questions to answer around accessibility, security, privacy.
    • Stress testing any new processes against situations that may occur.
    Learning Milestones

    The completion of a set of artifacts dedicated to validating business opportunities and hypotheses.

    Possible areas of focus:

    • Align teams on product strategy prior to build
    • Market research and analysis
    • Dedicated feedback sessions
    • Provide information on feature requirements
    Stock image of people learning.
    Sprint Zero (AKA Project-before-the-project)

    The completion of a set of key planning activities, typically the first sprint.

    Possible areas of focus:

    • Focus on technical verification to enable product development alignment
    • Sign off on architectural questions or concerns
    Stock photo of a person writing on a board of sticky notes.

    The “Now, Next, Later” roadmap

    Use this when deadlines and delivery dates are not strict. This is best suited for brainstorming a product plan when dependency mapping is not required.

    • Now
      What are you going to do now?
    • Next
      What are you going to do very soon?
    • Later
      What are you going to do in the future?
    A priority map laid out as a half rainbow with 'Now' as the inner, 'Next' as the middle, and 'Later' as the outer. Various 'Features', 'Releases', and an 'MVP' are mapped into the sections.
    (Source: “Tips for Agile product roadmaps & product roadmap examples,” Scrum.org, 2017)

    Exercise 1.4.1 How do we get started?

    30-60 minutes

    Output: Product transformation critical steps and basic roadmap

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify what the critical steps are for the organization to embrace product-centric delivery.
    2. Group each critical step by how soon you need to address it:
      • Now: Let’s do this ASAP.
      • Next: Sometime very soon, let’s do these things.
      • Later: Much further off in the distance, let’s consider these things.
    A priority map laid out as a half rainbow with 'Now' as the inner, 'Next' as the middle, and 'Later' as the outer. Various 'Features', 'Releases', and an 'MVP' are mapped into the sections.
    (Source: “Tips for Agile product roadmaps & product roadmap examples,” Scrum.org, 2017)

    Record the results in the Make the Case for Product Delivery Workbook.

    Example

    Example table for listing tasks to complete Now, Next, or Later

    Step 1.5

    Make the case to your stakeholders

    Activities
    • 1.5.1 Identify what support you need from your stakeholders
    • 1.5.2 Build your pitch for product delivery

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Outcomes of this step

    • A deliverable that helps make the case for product delivery.

    Make the Case for Product Delivery

    Step 1.1 Step 1.2 Step 1.3 Step 1.4 Step 1.5

    Develop a stakeholder strategy to define your product owner landscape

    Stakeholder Influence

    Stakeholders are a critical cornerstone to product ownership. They provide the context, alignment, and constraints that influence or control what a product owner is able to accomplish.

    Product teams operate within this network of stakeholders who represent different perspectives within the organization.

    See the appendix for activities and guidance on how to devise a strategy for managing stakeholders.

    Image of four puzzle pieces being put together, labelled 'Product Lifecycle', 'Project Delivery', 'Operational Support', 'and Stakeholder Management'.

    Exercise 1.5.1 Identify what support you need from your stakeholders

    30 minutes

    Output: Clear understanding of stakeholders, what they need from you, and what you need from them.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. If you don’t yet know who your stakeholders are, consider completing one or more of the stakeholder management exercises in the appendix.
    2. Identify your key stakeholders who have an interest in solution delivery.
    3. Consider their perspective on product-centric delivery. (For example: For head of support, what does solution delivery mean to them?)
    4. Identify what role each stakeholder would play in the transformation.
      • This role represents what you need from them for this transformation to product-centric delivery.
    Stakeholder
    What does solution delivery mean to them?
    What do you need from them in order to be successful?

    Record the results in the Make the Case for Product Delivery Workbook.

    Exercise 1.5.2 Build your pitch deck

    30 minutes (and up)

    Output: A completed presentation to help you make the case for product delivery.

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Take the results from the Make the Case for Product Delivery Workbook and transfer them into the presentation template.
    2. Follow the instructions on each page listed in the instruction bubbles to know what results to place where.
    3. This is meant to be a template; you are welcome to add and remove slides as needed to suit your audience!

    Sample of slides from the Make the Case for Product Delivery Workbook with instruction bubbles overlaid.

    Record the results in the Make the Case for Product Delivery Workbook.

    Appendix

    Additional research to start your journey

    Related Info-Tech Research

    Product Delivery

    Deliver on Your Digital Product Vision

    • Build a product vision your organization can take from strategy through execution.

    Build a Better Product Owner

    • Strengthen the product owner role in your organization by focusing on core capabilities and proper alignment.

    Build Your Agile Acceleration Roadmap

    • Quickly assess the state of your Agile readiness and plan your path forward to higher value realization.

    Implement Agile Practices That Work

    • Improve collaboration and transparency with the business to minimize project failure.

    Implement DevOps Practices That Work

    • Streamline business value delivery through the strategic adoption of DevOps practices.

    Deliver Digital Products at Scale

    • Deliver value at the scale of your organization through defining enterprise product families.

    Extend Agile Practices Beyond IT

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

    Build Your BizDevOps Playbook

    • Embrace a team sport culture built around continuous business-IT collaboration to deliver great products.

    Embed Security Into the DevOps Pipeline

    • Shift security left to get into DevSecOps.

    Spread Best Practices With an Agile Center of Excellence

    • Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Application Portfolio Management

    Application Portfolio Management (APM) Research Center

    • See an overview of the APM journey and how we can support the pieces in this journey.

    Application Portfolio Management for Small Enterprises

    • There is no one-size-fits-all rationalization. Tailor your framework to meet your goals.

    Streamline Application Maintenance

    • Effective maintenance ensures the long-term value of your applications.

    Build an Application Rationalization Framework

    • Manage your application portfolio to minimize risk and maximize value.

    Modernize Your Applications

    • Justify modernizing your application portfolio from both business and technical perspectives.

    Review Your Application Strategy

    • Ensure your applications enable your business strategy.

    Application Portfolio Management Foundations

    • Ensure your application portfolio delivers the best possible return on investment.

    Streamline Application Management

    • Move beyond maintenance to ensuring exceptional value from your apps.

    Optimize Applications Release Management

    • Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Embrace Business-Managed Applications

    • Empower the business to implement their own applications with a trusted business-IT relationship.

    Related Info-Tech Research

    Value, Delivery Metrics, Estimation

    Build a Value Measurement Framework

    • Focus product delivery on business value–driven outcomes.

    Select and Use SDLC Metrics Effectively

    • Be careful what you ask for, because you will probably get it.

    Application Portfolio Assessment: End User Feedback

    • Develop data-driven insights to help you decide which applications to retire, upgrade, re-train on, or maintain to meet the demands of the business.

    Create a Holistic IT Dashboard

    • Mature your IT department by measuring what matters.

    Refine Your Estimation Practices With Top-Down Allocations

    • Don’t let bad estimates ruin good work.

    Estimate Software Delivery With Confidence

    • Commit to achievable software releases by grounding realistic expectations

    Reduce Time to Consensus With an Accelerated Business Case

    • Expand on the financial model to give your initiative momentum.

    Optimize IT Project Intake, Approval, and Prioritization

    • Deliver more projects by giving yourself the voice to say “no” or “not yet” to new projects.

    Enhance PPM Dashboards and Reports

    • Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Org Design and Performance

    Redesign Your IT Organizational Structure

    • Focus product delivery on business value–driven outcomes.

    Build a Strategic IT Workforce Plan

    • Have the right people, in the right place, at the right time.

    Implement a New IT Organizational Structure

    • Reorganizations are inherently disruptive. Implement your new structure with minimal pain for staff while maintaining IT performance throughout the change.

    Build an IT Employee Engagement Program

    • Measure employee sentiment to drive IT performance

    Set Meaningful Employee Performance Measures

    • Set holistic measures to inspire employee performance.

    Master Organizational Change Management Practices

    • PMOs, if you don't know who is responsible for org change, it's you.

    Appendix

    Product delivery strategy communication

    Product roadmaps guide delivery and communicate your strategy

    In Deliver on Your Digital Product Vision, we demonstrate how the product roadmap is core to value realization. The product roadmap is your communicated path, and as a product owner, you use it to align teams and changes to your defined goals while aligning your product to enterprise goals and strategy.

    Diagram on how to get from product owner capabilities to 'Business Value Realization' through 'Product Roadmap' with a 'Tiered Backlog', 'Delivery Capacity and Throughput' via a 'Product Delivery Pipeline'.
    (Adapted from: Pichler, “What Is Product Management?”)

    Info-Tech Insight

    The quality of your product backlog – and your ability to realize business value from your delivery pipeline – is directly related to the input, content, and prioritization of items in your product roadmap.

    Define product value by aligning backlog delivery with roadmap goals

    In each product plan, the backlogs show what you will deliver.
    Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    Two-part diagram showing the 'Product Backlog' segmented into '1. Current: Features/ Stories', '2. Near-term: Capabilities', and '3. Future: Epics', and then the 'Product Roadmap' with the same segments placed into a timeline.

    Multiple roadmap views can communicate differently, yet tell the same truth

    Product managers and product owners have many responsibilities, and a roadmap can be a useful tool to complete those objectives through communication or organization of tasks.

    However, not all roadmaps address the correct audience and achieve those objectives. Care must be taken to align the view to the given audience.

    Pie Chart showing the surveyed most important reason for using a product roadmap. From largest to smallest are 'Communicate a strategy', 'Plan and prioritize', 'Communicate milestones and releases', 'Get consensus on product direction', and 'Manage product backlog'.
    Surveyed most important reason for using a product roadmap (Source: ProductPlan, 2018)

    Audience
    Business/ IT leaders Users/Customers Delivery teams
    Roadmap View
    Portfolio Product Technology
    Objectives
    To provide a snapshot of the portfolio and priority apps To visualize and validate product strategy To coordinate and manage teams and show dev. progress
    Artifacts
    Line items or sections of the roadmap are made up of individual apps, and an artifact represents a disposition at its highest level. Artifacts are generally grouped by various product teams and consist of strategic goals and the features that realize those goals. Artifacts are grouped by the teams who deliver that work and consist of features and technical enablers that support those features.

    Appendix

    Managing stakeholder influence

    From Build a Better Product Owner

    Step 1.3 (from Build a Better Product Owner)

    Manage Stakeholder Influence

    Activities
    • 1.3.1 Visualize interrelationships to identify key influencers
    • 1.3.2 Group your product owners into categories
    • 1.3.3 Prioritize your stakeholders
    • 1.3.4 Delegation Poker: Reach better decisions

    This step will walk you through the following activities:

    To be successful, product owners need to identify and manage all stakeholders for their products. This step will build a stakeholder map and strategy.

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Outcomes of this step

    • Relationships among stakeholders and influencers
    • Categorization of stakeholders and influencers
    • Stakeholder and influencer prioritization
    • Better understanding of decision-making approaches and delegation
    Product Owner Foundations
    Step 1.1 Step 1.2 Step 1.3

    Develop a product owner stakeholder strategy

    Stakeholder Influence

    Stakeholders are a critical cornerstone to product ownership. They provide the context, alignment, and constraints that influence or control what a product owner is able to accomplish.

    Product owners operate within this network of stakeholders who represent different perspectives within the organization.

    First, product owners must identify members of their stakeholder network. Next, they should devise a strategy for managing stakeholders.

    Without accomplishing these missing pieces, product owners will encounter obstacles, resistance, or unexpected changes.

    Image of four puzzle pieces being put together, labelled 'Product Lifecycle', 'Project Delivery', 'Operational Support', 'and Stakeholder Management'.

    Create a stakeholder network map to product roadmaps and prioritization

    Follow the trail of breadcrumbs from your direct stakeholders to their influencers to uncover hidden stakeholders.

    Legend
    Black arrow with a solid line and single direction. Black arrows indicate the direction of professional influence
    Green arrow with a dashed line and bi-directional. Dashed green arrows indicate bidirectional, informal influence relationships

    Info-Tech Insight

    Your stakeholder map defines the influence landscape your product operates in. It is every bit as important as the teams who enhance, support, and operate your product directly.

    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 substantive relationships with your stakeholders.

    1.3.1 Visualize interrelationships to identify key influencers

    60 minutes

    Input: List of product stakeholders

    Output: Relationships among stakeholders and influencers

    Materials: Whiteboard/flip charts, Markers, Build a Better Product Owner Workbook

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. List direct stakeholders for your product.
    2. 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.
      1. Use black arrows to indicate the direction of professional influence.
      2. Use dashed green arrows to indicate bidirectional, informal influence relationships.
    5. Record the results in the Build a Better Product Owner Workbook.

    Record the results in the Build a Better Product Owner Workbook.

    Categorize your stakeholders with a prioritization map

    A stakeholder prioritization map helps product owners categorize their stakeholders by their level or influence and ownership in the product and/or teams.

    Stakeholder prioritization map split into four quadrants along two axes, 'Influence', and 'Ownership/Interest': 'Players' (high influence, high interest); 'Mediators' (high influence, low interest); 'Noisemakers' (low influence, high interest); 'Spectators' (low influence, low interest). Source: Info-Tech Research Group

    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.

    1.3.2 Group your product owners into categories

    30 minutes

    Input: Stakeholder map

    Output: Categorization of stakeholders and influencers

    Materials: Whiteboard/flip charts, Markers, Build a Better Product Owner Workbook

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify your stakeholder’s interest in and influence on your Agile implementation as high, medium, or low by rating the attributes below.
    2. Map your results to the model below to determine each stakeholder’s category.
    3. Record the results in the Build a Better Product Owner Workbook.
    Same stakeholder prioritization map as before but with example positions mapped onto it.
    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 Build a Better Product Owner Workbook.

    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.

    Stakeholder prioritization table with 'Stakeholder Category' as row headers ('Player', 'Mediator', 'Noisemaker', 'Spectator') and 'Level of Support' as column headers ('Supporter', 'Evangelist', 'Neutral', 'Blocker'). Importance ratings are 'Critical', 'High', 'Medium', 'Low', and 'Irrelevant'.

    Consider the three dimensions for stakeholder prioritization: influence, interest, and support. Support can be determined by rating the following question: how likely is it that your stakeholder would recommend your product? These parameters are used to prioritize which stakeholders are most important and should receive the focus of your attention. The table to the right indicates how stakeholders are ranked.

    1.3.3 Prioritize your stakeholders

    30 minutes

    Input: Stakeholder matrix, Stakeholder prioritization

    Output: Stakeholder and influencer prioritization

    Materials: Whiteboard/flip charts, Markers, Build a Better Product Owner Workbook

    Participants: Product owners, Product managers, Development team leads, Portfolio managers, Business analysts

    1. Identify the level of support of each stakeholder by answering the following question: how likely is it that your stakeholder would endorse your product?
    2. Prioritize your stakeholders using the prioritization scheme on the previous slide.
    3. Record the results in the Build a Better Product Owner Workbook.
    Stakeholder Category Level of Support Prioritization
    CMO Spectator Neutral Irrelevant
    CIO Player Supporter Critical

    Record the results in the Build a Better Product Owner Workbook.

    Define strategies for engaging stakeholders by type

    Stakeholder strategy map assigning stakeholder strategies to stakeholder categories, as described in the adjacent table.

    Info-Tech Insight

    Each group of stakeholders draws attention and resources away from critical tasks. By properly identifying your stakeholder groups, the product owner 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 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.

    Appendix

    Product owner capability details

    From Build a Better Product Owner

    Develop product owner capabilities

    Capability 'Vision' with sub-capabilities 'Market Analysis, 'Business Alignment', and 'Product Roadmap'.

    Each capability has three components needed for successful product ownership.

    Definitions are on the following slides.

    Central diagram title 'Product Owner Capabilities'.

    Define the skills and activities in each component that are directly related to your product and culture.

    Capability 'Leadership' with sub-capabilities 'Soft Skills', 'Collaboration', and 'Decision Making'.
    Capability 'Product Lifecycle Management' with sub- capabilities 'Plan', 'Build', and 'Run'. Capability 'Value Realization' with sub-capabilities 'KPIs', 'Financial Management', and 'Business Model'.

    Capabilities: Vision

    Market Analysis

    • Unique solution: Identify the target users and unique value your product provides that is not currently being met.
    • Market size: Define the size of your user base, segmentation, and potential growth.
    • Competitive analysis: Determine alternative solutions, products, or threats that affect adoption, usage, and retention.

    Business Alignment

    • SWOT analysis: Complete a SWOT analysis for your end-to-end product lifecycle. Use Info-Tech’s Business SWOT Analysis Template.
    • Enterprise alignment: Align product to enterprise goals, strategies, and constraints.
    • Delivery strategy: Develop a delivery strategy to achieve value quickly and adapt to internal and external changes.

    Product Roadmap

    • Roadmap strategy: Determine the duration, detail, and structure of your roadmap to accurately communicate your vision.
    • Value prioritization: Define criteria used to evaluate and sequence demand.
    • Go to market strategy: Create organizational change management, communications, and a user implementation approach.

    Info-Tech Insight

    Data comes from many places and may still not tell the complete story.

    Capability 'Vision' with sub-capabilities 'Market Analysis, 'Business Alignment', and 'Product Roadmap'.

    “Customers are best heard through many ears.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Capabilities: Leadership

    Soft Skills

    • Communication: Maintain consistent, concise, and appropriate communication using SMART guidelines (specific, measurable, attainable, relevant, and timely).
    • Integrity: Stick to your values, principles, and decision criteria for the product to build and maintain trust with your users and teams.
    • Influence: Manage stakeholders using influence and collaboration over contract negotiation.

    Collaboration

    • Stakeholder management: Build a communications strategy for each stakeholder group, tailored to individual stakeholders.
    • Relationship management: Use every interaction point to strengthen relationships, build trust, and empower teams.
    • Team development: Promote development through stretch goals and controlled risks to build team capabilities and performance.

    Decision Making

    • Prioritized criteria: Remove personal bias by basing decisions off data analysis and criteria.
    • Continuous improvement: Balance new features with the need to ensure quality and create an environment of continuous improvement.
    • Team empowerment/negotiation: Push decisions to teams closest to the problem and solution, using Delegation Poker to guide you.

    Info-Tech Insight

    Product owners cannot be just a proxy for stakeholder decisions. The product owner owns product decisions and management of all stakeholders.

    Capability 'Leadership' with sub-capabilities 'Soft Skills', 'Collaboration', and 'Decision Making'.

    “Everything walks the walk. Everything talks the talk.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Capabilities: Product lifecycle management

    Plan

    • Product backlog: Follow a schedule for backlog intake, refinement, updates, and prioritization.
    • Journey map: Create an end-user journey map to guide adoption and loyalty.
    • Fit for purpose: Define expected value and intended use to ensure the product meets your end user’s needs.

    Build

    • Capacity management: Work with operations and delivery teams to ensure consistent and stable outcomes.
    • Release strategy: Build learning, release, and critical milestones into a repeatable release plan.
    • Compliance: Build policy compliance into delivery practices to ensure alignment and reduce avoidable risk (privacy, security).

    Run

    • Adoption: Focus attention on end-user adoption and proficiency to accelerate value and maximize retention.
    • Support: Build operational support and business continuity into every team.
    • Measure: Measure KPIs and validate expected value to ensure product alignment to goals and consistent product quality.

    Info-Tech Insight

    Product owners must actively manage the full lifecycle of the product.

    Capability 'Product Lifecycle Management' with sub- capabilities 'Plan', 'Build', and 'Run'.

    “Pay fantastic attention to detail. Reward, recognize, celebrate.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Capabilities: Value realization

    Key Performance Indicators (KPIs)

    • Usability and user satisfaction: Assess satisfaction through usage monitoring and end-user feedback.
    • Value validation: Directly measure performance against defined value proposition, goals, and predicted ROI.
    • Fit for purpose: Verify the product addresses the intended purpose better than other options.

    Financial Management

    • P&L: Manage each product as if it were its own business with profit and loss statements.
    • Acquisition cost/market growth: Define the cost of acquiring a new consumer, onboarding internal users, and increasing product usage.
    • User retention/market share: Verify product usage continues after adoption and solution reaches new user groups to increase value.

    Business Model

    • Defines value proposition: Dedicate your primary focus to understanding and defining the value your product will deliver.
    • Market strategy and goals: Define your acquisition, adoption, and retention plan for users.
    • Financial model: Build an end-to-end financial model and plan for the product and all related operational support.

    Info-Tech Insight

    Most organizations stop with on-time and on-budget. True financial alignment needs to define and manage the full lifecycle P&L.

    Capability 'Value Realization' with sub-capabilities 'KPIs', 'Financial Management', and 'Business Model'.

    “The competition is anyone the customer compares you with.” (Thomas K. Connellan, Inside the Magic Kingdom)

    Avoid common capability gaps

    Vision

    • Focusing solely on backlog refining (tactical only)
    • Ignoring or failing to align product roadmap to enterprise goals
    • Operational support and execution
    • Basing decisions on opinion rather than market data
    • Ignoring or missing internal and external threats to your product

    Leadership

    • Failing to include feedback from all teams who interact with your product
    • Using a command-and-control approach
    • Viewing product owner as only a delivery role
    • Acting as a proxy for stakeholder decisions
    • Avoiding tough strategic decisions in favor of easier tactical choices

    Product Lifecycle Management

    • Focusing on delivery and not the full product lifecycle
    • Ignoring support, operations, and technical debt
    • Failing to build knowledge management into the lifecycle
    • Underestimating delivery capacity, capabilities, or commitment
    • Assuming delivery stops at implementation

    Value Realization

    • Focusing exclusively on “on time/on budget” metrics
    • Failing to measure a 360-degree end-user view of the product
    • Skipping business plans and financial models
    • Limiting financial management to project/change budgets
    • Ignoring market analysis for growth, penetration, and threats

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    Research Contributors and Experts

    Photo of Emily Archer, Lead Business Analyst, Enterprise Consulting, authentic digital agency.

    Emily Archer
    Lead Business Analyst,
    Enterprise Consulting, authentic digital agency

    Emily Archer is a consultant currently working with Fortune 500 clients to ensure the delivery of successful projects, products, and processes. She helps increase the business value returned for organizations’ investments in designing and implementing enterprise content hubs and content operations, custom web applications, digital marketing, and e-commerce platforms.

    Photo of David Berg, Founder & CTO, Strainprint Technologies Inc.

    David Berg
    Founder & CTO
    Strainprint Technologies Inc.

    David Berg is a product commercialization expert that has spent the last 20 years of his career delivering product management and business development services across a broad range of industries. Early in his career, David worked with product management and engineering teams to build core network infrastructure products that secure and power the internet we benefit from today. David’s experience also includes working with clean technologies in the area of clean power generation, agritech, and Internet of Things infrastructure. Over the last five years, David has been focused on his latest venture, Strainprint Technologies, a data and analytics company focused on the medical cannabis industry. Strainprint has built the largest longitudinal medical cannabis dataset in the world with the goal to develop an understanding of treatment behavior, interactions, and chemical drivers to guide future product development.

    Research Contributors and Experts

    Blank photo template.

    Kathy Borneman
    Digital Product Owner, SunTrust Bank

    Kathy Borneman is a senior product owner who helps people enjoy their jobs again by engaging others in end-to-end decision making to deliver software and operational solutions that enhance the client experience and allow people to think and act strategically.

    Photo of Charlie Campbell, Product Owner, Merchant e-Solutions.

    Charlie Campbell
    Product Owner, Merchant e-Solutions

    Charlie Campbell is an experienced problem solver with the ability to quickly dissect situations and recommend immediate actions to achieve resolution, liaise between technical and functional personnel to bridge the technology and communication gap, and work with diverse teams and resources to reach a common goal.

    Research Contributors and Experts

    Photo of Yarrow Diamond, Sr. Director, Business Architecture, Financial Services.

    Yarrow Diamond
    Sr. Director, Business Architecture
    Financial Services

    Yarrow Diamond is an experienced professional with expertise in enterprise strategy development, project portfolio management, and business process reengineering across financial services, healthcare and insurance, hospitality, and real estate environments. She has a master’s in Enterprise Architecture from Penn State University, LSSMBB, PMP, CSM, ITILv3.

    Photo of Cari J. Faanes-Blakey, CBAP, PMI-PBA, Enterprise Business Systems Analyst, Vertex, Inc.

    Cari J. Faanes-Blakey, CBAP, PMI-PBA
    Enterprise Business Systems Analyst,
    Vertex, Inc.

    Cari J. Faanes-Blakey has a history in software development and implementation as a Business Analyst and Project Manager for financial and taxation software vendors. Active in the International Institute of Business Analysis (IIBA), Cari participated on the writing team for the BA Body of Knowledge 3.0 and the certification exam.

    Research Contributors and Experts

    Photo of Kieran Gobey, Senior Consultant Professional Services, Blueprint Software Systems.

    Kieran Gobey
    Senior Consultant Professional Services
    Blueprint Software Systems

    Kieran Gobey is an IT professional with 24 years of experience, focused on business, technology, and systems analysis. He has split his career between external and internal customer-facing roles, and this has resulted in a true understanding of what is required to be a Professional Services Consultant. His problem-solving skills and ability to mentor others have resulted in successful software implementations.

    Kieran’s specialties include deep system troubleshooting and analysis skills, facilitating communications to bring together participants effectively, mentoring, leadership, and organizational skills.

    Photo of Rupert Kainzbauer, VP Product, Digital Wallets, Paysafe Group.

    Rupert Kainzbauer
    VP Product, Digital Wallets
    Paysafe Group

    Rupert Kainzbauer is an experienced senior leader with a passion for defining and delivering products that deliver real customer and commercial benefit. Together with a team of highly experienced and motivated product managers, he has successfully led highly complex, multi-stakeholder payments initiatives, from proposition development and solution design through to market delivery. Their domain experience is in building online payment products in high-risk and emerging markets, remittance, prepaid cards, and mobile applications.

    Research Contributors and Experts

    Photo of Saeed Khan, Founder, Transformation Labs.

    Saeed Khan
    Founder,
    Transformation Labs

    Saeed Khan has been working in high tech for 30 years in both Canada and the US and has held a number of leadership roles in Product Management over that time. He speaks regularly at conferences and has been writing publicly about technology product management since 2005.

    Through Transformation Labs, Saeed helps companies accelerate product success by working with product teams to improve their skills, practices, and processes. He is a cofounder of ProductCamp Toronto and currently runs a Meetup group and global Slack community called Product Leaders, the only global community of senior-level product executives.

    Photo of Hoi Kun Lo, Product Owner, Nielsen.

    Hoi Kun Lo
    Product Owner
    Nielsen

    Hoi Kun Lo is an experienced change agent who can be found actively participating within the IIBA and WITI groups in Tampa, FL, and a champion for Agile, architecture, diversity, and inclusion programs at Nielsen. She is currently a Product Owner in the Digital Strategy team within Nielsen Global Watch Technology.

    Research Contributors and Experts

    Photo of Abhishek Mathur, Sr Director, Product Management, Kasisto, Inc.

    Abhishek Mathur
    Sr Director, Product Management
    Kasisto, Inc.

    Abhishek Mathur is a product management leader, an artificial intelligence practitioner, and an educator. He has led product management and engineering teams at Clarifai, IBM, and Kasisto to build a variety of artificial intelligence applications within the space of computer vision, natural language processing, and recommendation systems. Abhishek enjoys having deep conversations about the future of technology and helping aspiring product managers enter and accelerate their careers.

    Photo of Jeff Meister, Technology Advisor and Product Leader.

    Jeff Meister
    Technology Advisor and Product Leader

    Jeff Meister is a technology advisor and product leader. He has more than 20 years of experience building and operating software products and the teams that build them. He has built products across a wide range of industries and has built and led large engineering, design, and product organizations.

    Jeff most recently served as Senior Director of Product Management at Avanade, where he built and led the product management practice. This involved hiring and leading product managers, defining product management processes, solution shaping and engagement execution, and evangelizing the discipline through pitches, presentations, and speaking engagements.

    Jeff holds a Bachelor of Applied Science (Electrical Engineering) and a Bachelor of Arts from the University of Waterloo, an MBA from INSEAD (Strategy), and certifications in product management, project management, and design thinking.

    Research Contributors and Experts

    Photo of Vincent Mirabelli, Principal, Global Project Synergy Group.

    Vincent Mirabelli
    Principal,
    Global Project Synergy Group

    With over 10 years of experience in both the private and public sectors, Vincent Mirabelli possesses an impressive track record of improving, informing, and transforming business strategy and operations through process improvement, design and re-engineering, and the application of quality to business analysis, project management, and process improvement standards.

    Photo of Oz Nazili, VP, Product & Growth, TWG.

    Oz Nazili
    VP, Product & Growth
    TWG

    Oz Nazili is a product leader with a decade of experience in both building products and product teams. Having spent time at funded startups and large enterprises, he thinks often about the most effective way to deliver value to users. His core areas of interest include Lean MVP development and data-driven product growth.

    Research Contributors and Experts

    Photo of Mark Pearson, Principal IT Architect, First Data Corporation.

    Mark Pearson
    Principal IT Architect
    First Data Corporation

    Mark Pearson is an executive business leader grounded in the process, data, technology, and operations of software-driven business. He knows the enterprise software landscape and is skilled in product, technology, and operations design and delivery within information technology organizations, outsourcing firms, and software product companies.

    Photo of Brenda Peshak, Product Owner, Widget Industries, LLC.

    Brenda Peshak
    Product Owner,
    Widget Industries, LLC

    Brenda Peshak is skilled in business process, analytical skills, Microsoft Office Suite, communication, and customer relationship management (CRM). She is a strong product management professional with a Master’s focused in Business Leadership (MBL) from William Penn University.

    Research Contributors and Experts

    Photo of Mike Starkey, Director of Engineering, W.W. Grainger.

    Mike Starkey
    Director of Engineering
    W.W. Grainger

    Mike Starkey is a Director of Engineering at W.W. Grainger, currently focusing on operating model development, digital architecture, and building enterprise software. Prior to joining W.W. Grainger, Mike held a variety of technology consulting roles throughout the system delivery lifecycle spanning multiple industries such as healthcare, retail, manufacturing, and utilities with Fortune 500 companies.

    Photo of Anant Tailor, Cofounder & Head of Product, Dream Payments Corp.

    Anant Tailor
    Cofounder & Head of Product
    Dream Payments Corp.

    Anant Tailor is a cofounder at Dream Payments where he currently serves as the COO and Head of Product, having responsibility for Product Strategy & Development, Client Delivery, Compliance, and Operations. He has 20+ years of experience building and operating organizations that deliver software products and solutions for consumers and businesses of varying sizes.

    Prior to founding Dream Payments, Anant was the COO and Director of Client Services at DonRiver Inc, a technology strategy and software consultancy that he helped to build and scale into a global company with 100+ employees operating in seven countries.

    Anant is a Professional Engineer with a Bachelor’s degree in Electrical Engineering from McMaster University and a certificate in Product Strategy & Management from the Kellogg School of Management at Northwestern University.

    Research Contributors and Experts

    Photo of Angela Weller, Scrum Master, Businessolver.

    Angela Weller
    Scrum Master, Businessolver

    Angela Weller is an experienced Agile business analyst who collaborates with key stakeholders to attain their goals and contributes to the achievement of the company’s strategic objectives to ensure a competitive advantage. She excels when mediating or facilitating teams.

    Avoid Project Management Pitfalls

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    • Parent Category Name: Program & Project Management
    • Parent Category Link: /program-and-project-management
    • IT organizations seem to do everything in projects, yet fewer than 15% successfully complete all deliverables on time and on budget.
    • Project managers seem to succumb to the relentless pressure from stakeholders to deliver more, more quickly, with fewer resources, and with less support than is ideal.
    • To achieve greater likelihood that your project will stay on track, watch out for the four big pitfalls: scope creep, failure to obtain stakeholder commitment, inability to assemble a team, and failure to plan.

    Our Advice

    Critical Insight

    • While many project managers worry about proper planning as the key to project success, skilled management of the political factors around a project has a much greater impact on success.
    • Alone, combating scope creep can improve your likelihood of success by a factor of 2x.
    • A strong project sponsor will be key to fighting the inevitable battles to control scope and obtain resources.

    Impact and Result

    • Take steps to avoid falling into common project pitfalls.
    • Assess which pitfalls threaten your project in its current state and take appropriate steps to avoid falling into them.
    • Avoiding pitfalls will allow you to deliver value on time and on budget, creating the perception of success in users’ and managers’ eyes.

    Avoid Project Management Pitfalls Research & Tools

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

    1. Learn about common PM pitfalls and the strategies to avoid them

    Consistently meet project goals through enhanced PM knowledge and awareness.

    • Storyboard: Avoid Project Management Pitfalls
    • None

    2. Detect project pitfalls

    Take action and mitigate a pitfall before it becomes a problem.

    • Project Pitfall Detection & Mitigation Tool

    3. Document and report PM issues

    Learn from issues encountered to help map PM strategies for future projects.

    • Project Management Pitfalls Issue Log
    [infographic]

    Maximize Business Value From IT Through Benefits Realization

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    • Parent Category Name: IT Governance, Risk & Compliance
    • Parent Category Link: /it-governance-risk-and-compliance
    • IT and the business are often misaligned because business value is not well defined or communicated.
    • Decisions are made without a shared perspective of value. This results in cost misallocation and unexploited opportunities to improve efficiency and drive innovation.

    Our Advice

    Critical Insight

    • IT exists to provide business value and is part of the business value chain. Most IT organizations lack a way to define value, which complicates the process of making value-based strategic business decisions.
    • IT must link its spend to business value to justify its investments. IT doesn’t have an established process to govern benefits realization and struggles to demonstrate how it provides value from its investments.
    • Pursue value, not technology. The inability to articulate value leads to IT being perceived as a cost center.

    Impact and Result

    • Ensure there is a common understanding within the organization of what is valuable to drive growth and consistent strategic decision making.
    • Equip IT to evaluate, direct, and monitor investments to support the achievement of organizational values and business benefits.
    • Align IT spend with business value through an enhanced governance structure to achieve cost optimization. Ensure IT visibly contributes to the creation and maintenance of value.

    Maximize Business Value From IT Through Benefits Realization Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should establish a benefits realization process, 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. Understand business value

    Ensure that all key strategic stakeholders hold a current understanding of what is valuable to the organization and a sense of what will be valuable based on future needs.

    • Maximize Business Value from IT Through Benefits Realization – Phase 1: Understand Business Value
    • Business Value Statement Template
    • Business Value Statement Example
    • Value Statement Email Communication Template
    • Feedback Consolidation Tool

    2. Incorporate benefits realization into governance

    Establish the process to evaluate spend on IT initiatives based on expected benefits, and implement the methods to monitor how well the initiatives achieve these benefits.

    • Maximize Business Value from IT Through Benefits Realization – Phase 2: Incorporate Benefits Realization into Governance
    • Business Value Executive Presentation Template

    3. Ensure an accurate reference of value

    Re-evaluate, on a consistent basis, the accuracy of the value drivers stated in the value statement with respect to the organization’s current internal and external environments.

    • Maximize Business Value from IT Through Benefits Realization – Phase 3: Ensure an Accurate Reference of Value
    [infographic]

    Workshop: Maximize Business Value From IT Through Benefits Realization

    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 Understand Business Value

    The Purpose

    Establish the business value statement.

    Understand the importance of implementing a benefits realization process.

    Key Benefits Achieved

    Unified stakeholder perspectives of business value drivers

    Establish supporters of the initiative

    Activities

    1.1 Understand what governance is and how a benefits realization process in governance will benefit the company.

    1.2 Discuss the mission and vision of the company, and why it is important to establish the target state prior to defining value.

    1.3 Brainstorm and narrow down organization value drivers.

    Outputs

    Stakeholder buy-in on benefits realization process

    Understanding of interrelations of mission, vision, and business value drivers

    Final three prioritized value drivers

    Completed business value statement

    2 Incorporate Benefits Realization Into Governance

    The Purpose

    Establish the intake, assessment and prioritization, and output and monitoring processes that are involved with implementing benefits realization.

    Assign cut-over dates and accountabilities.

    Establish monitoring and tracking processes.

    Key Benefits Achieved

    A thorough implementation plan that can be incorporated into existing governance documents

    Stakeholder understanding of implemented process, process ownership

    Activities

    2.1 Devise the benefits realization process.

    2.2 Establish launch dates, accountabilities, and exception handling on processes.

    2.3 Devise compliance monitoring and exception tracking methods on the benefits realization process.

    Outputs

    Benefits realization process incorporated into governance documentation

    Actionable plan to implement benefits realization process

    Reporting processes to ensure the successful delivery of the improved governance process

    3 Ensure an Accurate Reference of Value

    The Purpose

    Implement a process to ensure that business value drivers remain current to the organization.

    Key Benefits Achieved

    Align IT with the business and business to its environment

    Activities

    3.1 Determine regular review cycle to reassess business value drivers.

    3.2 Determine the trigger events that may cause off-cycle revisits to value.

    3.3 Devise compliance monitoring on value definition.

    Outputs

    Agenda and tools to assess the business context to verify the accuracy of value

    List of possible trigger events specific to your organization

    Reporting processes to ensure the continuous adherence to the business value definition

    Mature and Scale Product Ownership

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    • Parent Category Name: Development
    • Parent Category Link: /development
    • Product owners must bridge the gap between the customers, operations, and delivery to ensure products continuously deliver increasing value.
    • Product owners are often assigned to projects or product delivery without proper support, guidance, or alignment.
    • In many organizations, the product owner role is not well-defined, serves as a proxy for stakeholder ownership, and lacks reinforcement of the key skills needed to be successful.

    Our Advice

    Critical Insight

    A product owner is the CEO for their product. Successful product management starts with empowerment and accountability. Product owners own the vision, roadmap, and value realization for their product or family aligned to enterprise goals and priorities.

    • Product and service ownership share the same foundation - underlying capabilities and best practices to own and improve a product or service are identical for both roles. Use the terms that make the most sense for your culture.
    • Product owners represent three primary perspectives: Business (externally facing), Technical (systems and tools), or Operational (manual processes). Although all share the same capabilities, how they approach their responsibilities is influenced by their primary perspective.
    • Product owners are operating under an incomplete understanding of the capabilities needed to succeed. Most product/service owners lack a complete picture of the needed capabilities, skills, and activities to successfully perform their roles.

    Impact and Result

    • Create a culture of product management trust and empowerment with product owners aligned to your operational structure and product needs.
    • Promote and develop true Agile skills among your product owners and family managers.
    • Implement Info-Tech’s product owner capability model to define the role expectations and provide a development path for product owners.

    Mature and Scale Product Ownership Research & Tools

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

    1. Mature and Scale Product Ownership Storyboard – Establish a culture of success for product management and mature product owner capabilities.

    Strengthen the product owner role in your organization by focusing on core capabilities and proper alignment.

  • Establish a foundation for empowerment and success.
  • Assign and align product owners with products and stakeholders.
  • Mature product owner capabilities and skills.
    • Mature and Scale Product Ownership Storyboard

    2. Mature and Scale Product Ownership Readiness Assessment – Determine your readiness for a product-centric culture based on Info-Tech’s CLAIM+G model.

    Using Info-Tech’s CLAIM model, quickly determine your organization’s strengths and weaknesses preparing for a product culture. Use the heat map to identify key areas.

    • Mature and Scale Product Ownership Readiness Assessment

    3. Mature and Scale Product Ownership Playbook – Playbook for product owners and product managers.

    Use the blueprint exercises to build your personal product owner playbook. You can also use the workbook to capture exercise outcomes.

    • Mature and Scale Product Ownership Playbook

    4. Mature and Scale Product Ownership Workbook – Workbook for product owners and product managers.

    Use this workbook to capture exercise outcomes and transfer them to your Mature and Scale Product Ownership Playbook (optional).

    • Mature and Scale Product Ownership Workbook

    5. Mature and Scale Product Ownership Proficiency Assessment – Determine your current proficiency and improvement areas.

    Product owners need to improve their core capabilities and real Agile skills. The assessment radar will help identify current proficiency and growth opportunities.

    • Mature and Scale Product Ownership Proficiency Assessment
    [infographic]

    Workshop: Mature and Scale Product Ownership

    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 Establish the foundation for product ownership

    The Purpose

    Establish the foundation for product ownership.

    Key Benefits Achieved

    Product owner playbook with role clarity and RACI.

    Activities

    1.1 Define enablers and blockers of product management.

    1.2 Define your product management roles and names.

    1.3 Assess your product management readiness.

    1.4 Identify your primary product owner perspective.

    1.5 Define your product owner RACI.

    Outputs

    Enablers and blockers

    Role definitions.

    Product culture readiness

    Product owner perspective mapping

    Product owner RACI

    2 Align product owners to products

    The Purpose

    Align product owners to products.

    Key Benefits Achieved

    Assignment of resources to open products.

    A stakeholder management strategy.

    Activities

    2.1 Assign resources to your products and families.

    2.2 Visualize relationships to identify key influencers.

    2.3 Group stakeholders into categories.

    2.4 Prioritize your stakeholders.

    Outputs

    Product resource assignment

    Stakeholder management strategy

    Stakeholder management strategy

    Stakeholder management strategy

    3 Mature product owner capabilities

    The Purpose

    Mature product owner capabilities.

    Key Benefits Achieved

    Assess your Agile product owner readiness

    Assess and mature product owner capabilities

    Activities

    3.1 Assess your real Agile skill proficiency.

    3.2 Assess your vison capability proficiency.

    3.3 Assess your leadership capability proficiency.

    3.4 Assess your PLM capability proficiency.

    3.5 Assess your value realization capability proficiency.

    3.6 Identify your business value drivers and sources of value.

    Outputs

    Real Agile skill proficiency assessment

    Info-Tech’s product owner capability model proficiency assessment

    Info-Tech’s product owner capability model proficiency assessment

    Info-Tech’s product owner capability model proficiency assessment

    Info-Tech’s product owner capability model proficiency assessment

    Business value drivers and sources of value

    Further reading

    Mature and Scale Product Ownership

    Strengthen the product owner’s role in your organization by focusing on core capabilities and proper alignment.

    Executive Brief

    Analyst Perspective

    Empower product owners throughout your organization.

    Hans Eckman

    Whether you manage a product or service, the fundamentals of good product ownership are the same. Organizations need to focus on three key elements of product ownership in order to be successful.

    • Create an environment of empowerment and service leadership to reinforce product owners and product family managers as the true owners of the vision, improvement, and realized the value of their products.
    • Align product and product family owner roles based on operational alignment and the groups defined when scaling product management.
    • Develop your product owners to improve the quality of roadmaps, alignment to enterprise goals, and profit and loss (P&L) for each product or service.

    By focusing the attention of the teammates serving in product owner or service owner roles, your organization will deliver value sooner and respond to change more effectively.

    Hans Eckman

    Principal Research Director – Application Delivery and Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Product owners must bridge the gap between the customers, operations, and delivery to ensure products continuously deliver increasing value.

    Product owners are often assigned to projects or product delivery without proper support, guidance, or alignment.

    In many organizations the product owner role is not well-defined, serves as a proxy for stakeholder ownership, and lacks reinforcement of the key skills needed to be successful.

    Common Obstacles

    Organizations have poor alignment or missing product owners between lines of business, IT, and operations.

    Product owners are aligned to projects and demand management rather than long-term strategic product ownership.

    Product families are not properly defined, scaled, and supported within organizations.

    Individuals in product owner roles have an incomplete understanding of needed capabilities and lack a development path.

    Info-Tech's Approach

    Create a culture of product management trust and empowerment with product owners aligned to your operational structure and product needs.

    Promote and develop true Agile skills among your product owners and family managers.

    Implement Info-Tech’s product owner capability model to define the role expectations and provide a development path for product owners.

    Extend product management success using Deliver on Your Digital Product Vision and Deliver Digital Products at Scale.

    Info-Tech Insight

    There is no single correct approach to product ownership. Product ownership must be tuned and structured to meet the delivery needs of your organization and the teams it serves.

    Info-Tech’s Approach

    Product owners make the final decision

    • Establish a foundation for empowerment and success
    • Assign product owners and align with products and stakeholders
    • Mature product owner capabilities and skills
    Product Owner capabilities: Vision, Product Lifecycle Management, Leadership, Value Realization

    The Info-Tech difference

    1. Assign product owners where product decisions are needed, not to match org charts or delivery teams. The product owner has the final word on product decisions.
    2. Organize product owners into related teams to ensure product capabilities delivered are aligned to enterprise strategy and goals.
    3. Shared products and services must support the needs of many product owners with conflicting priorities. Shared service product owners must map and prioritize demand to align to enterprise priorities and goals.
    4. All product owners share the same capability model.

    Insight summary

    There is no single correct approach to product ownership

    Successful product management starts with empowerment and accountability. Product owners own the vision, roadmap, and value realization for their product or family aligned to enterprise goals and priorities.

    Phase 1 insight

    Product owners represent three primary perspectives: business (external-facing), technical (systems and tools), or operational (manual processes). Although all share the same capabilities, how they approach their responsibilities is influenced by their primary perspective.

    Phase 2 insight

    Start with your operational grouping of products and families, identifying where an owner is needed. Then, assign people to the products and families. The owner does not define the product or family.

    Phase 3 insight

    Product owners are operating under an incomplete understanding of the capabilities needed to succeed. Most product/service owners lack a complete picture of the needed capabilities, skills, and activities to successfully perform their roles.

    Product and service ownership share the same foundation

    The underlying capabilities and best practices to own and improve a product or service are identical for both roles. Use the terms that make the most sense for your culture.

    Map product owner roles to your existing job titles

    Identify where product management is needed and align expectations with existing roles. Successful product management does not require a dedicated job family.

    Projects can be a mechanism for funding product changes and improvements

    Projects can be a mechanism for funding product changes and improvements. Shows difference of value for project life-cycles, hybrid life-cycles, and product life-cycles.

    Projects within products

    Regardless of whether you recognize yourself as a product-based or project-based shop, the same basic principles should apply.

    You go through a period or periods of project-like development to build a version of an application or product.

    You also have parallel services along with your project development, which encompass the more product-based view. These may range from basic support and maintenance to full-fledged strategy teams or services like sales and marketing.

    Product and services owners share the same foundation and capabilities

    For the purpose of this blueprint, product/service and product owner/service owner are used interchangeably. The term “product” is used for consistency but would apply to services, as well.

    Product = Service

    Common foundations: Focus on continuous improvement, ROI, and value realization. Clear vision, goals, roadmap, and backlog.

    “Product” and “service” are terms that each organization needs to define to fit its culture and customers (internal and external). The most important aspect is consistent use and understanding of:

    • External products
    • Internal products
    • External services
    • Internal services
    • Products as a service (PaaS)
    • Productizing services (SaaS)

    Recognize the product owner perspectives

    The 3 product owner perspectives. 1. Business: Customer-facing, value-generating. 2. Technical: IT systems and tools. 3. Operations: Keep-the-lights-on processes.

    Product owners represent one of three primary perspectives. Although all share the same capabilities, how they approach their responsibilities is influenced by their primary perspective.

    Info-Tech Insight

    Product owners must translate needs and constraints from their perspective into the language of their audience. Kathy Borneman, Digital Product Owner at SunTrust Bank, noted the challenges of finding a common language between lines of business and IT (e.g. what is a unit?).

    Match your product management role definitions to your product family levels

    Product ownership exists at the different operational tiers or levels in your product hierarchy. This does not imply a management relationship.

    Product portfolio

    Groups of product families within an overall value stream or capability grouping.

    Project portfolio manager

    Product family

    A collection of related products. Products can be grouped along architectural, functional, operational, or experiential patterns.

    Product family manager

    Product

    Single product composed of one or more applications and services.

    Product owner

    Info-Tech Insight

    Define the current roles that will perform the product management function or define consistent role names to product owners and managers.

    Align enterprise value through product families

    Product families are operational groups based on capabilities or business functions. Product family managers translate goals, priorities, and constraints so they are actionable at the next level. Product owners prioritize changes to enhance the capabilities that allow you to realize your product family. Enabling capabilities realize value and help reach your goals.

    Understand special circumstances

    In Deliver Digital Products at Scale, products were grouped into families using Info-Tech’s five scaling patterns. Assigning owners to Enterprise Applications and Shared Services requires special consideration.

    Value stream alignment

    • Business architecture
      • Value stream
      • Capability
      • Function
    • Market/customer segment
    • Line of business (LoB)
    • Example: Customer group > value stream > products

    Enterprise applications

    • Enabling capabilities
    • Enterprise platforms
    • Supporting apps
    • Example: HR > Workday/Peoplesoft > Modules Supporting: Job board, healthcare administrator

    Shared Services

    • Organization of related services into service family
    • Direct hierarchy does not necessarily exist within the family
    • Examples: End-user support and ticketing, workflow and collaboration tools

    Technical

    • Domain grouping of IT infrastructure, platforms, apps, skills, or languages
    • Often used in combination with Shared Services grouping or LoB-specific apps
    • Examples: Java, .NET, low-code, database, network

    Organizational alignment

    • Used at higher levels of the organization where products are aligned under divisions
    • Separation of product managers from organizational structure is no longer needed because the management team owns the product management role

    Map sources of demand and influencers

    Use the stakeholder analysis to define the key stakeholders and sources of demand for enterprise applications and shared services. Extend your mapping to include their stakeholders and influencers to uncover additional sources of demand and prioritization.

    Map of key stakeholders for enterprise applications and shared services.

    Info-Tech Insight

    Your product owner map defines the influence landscape your product operates. It is every bit as important as the teams who enhance, support and operate your product directly.

    Combine your product owner map with your stakeholder map to create a comprehensive view of influencers.

    The primary value of the product owner is to fill the backlog with the highest ROI opportunities aligned with enterprise goals.

    Info-Tech Insight

    The product owner owns the direction of the product.

    • Roadmap - Where are we going?
    • Backlog - What changes are needed to get there?
    • Product review - Did we get close enough?

    Product delivery realizes value for your product family

    While planning and analysis are done at the family level, work and delivery are done at the individual product level.

    Product strategy includes: Vision, Goals, Roadmap, backlog and Release plan.

    Product family owners are more strategic

    When assigning resources, recognize that product family owners will need to be more strategic with their planning and alignment of child families and products.

    Product family owners are more strategic. They require a roadmap that is strategic, goal-based, high-level, and flexible.

    Info-Tech Insight

    Roadmaps for your product family are, by design, less detailed. This does not mean they aren’t actionable! Your product family roadmap should be able to communicate clear intentions around the future delivery of value in both the near and long term.

    Connecting your product family roadmaps to product roadmaps

    Your product and product family roadmaps should be connected at an artifact level that is common between both. Typically, this is done with capabilities, but it can be done at a more granular level if an understanding of capabilities isn’t available.

    Product family roadmap versus Product Roadmaps.

    Develop a product owner stakeholder strategy

    Stakeholder management, Product lifecycle, Project delivery, Operational support.

    Stakeholders are a critical cornerstone to product ownership. They provide the context, alignment, and constraints that influence or control what a product owner can accomplish.

    Product owners operate within a network of stakeholders who represent different perspectives within the organization.

    First, product owners must identify members of their stakeholder network. Next, they should devise a strategy for managing stakeholders.

    Without a stakeholder strategy, product owners will encounter obstacles, resistance, or unexpected changes.

    Create a stakeholder network map to product roadmaps and prioritization

    Follow the trail of breadcrumbs from your direct stakeholders to their influencers, to uncover hidden stakeholders.

    Stakeholder network map defines the influence landscape your product operates. Connectors determine who may be influencing your direct stakeholders.

    Info-Tech Insight

    Your stakeholder map defines the influence landscape your product operates. It is every bit as important as the teams who enhance, support and operate your product directly.

    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 substantive relationships with your stakeholders.

    Being successful at Agile is more than about just doing Agile

    The following represents the hard skills needed to “Do Agile”:

    Being successful at Agile needs 4 hard skills: 1. Engineering skills, 2. Technician Skills, 3. Framework/Process skills, 4. Tools skills.
    • Engineering skills. These are the skills and competencies required for building brand-new valuable software.
    • Technician skills. These are the skills and competencies required for maintaining and operating the software delivered to stakeholders.
    • Framework/Process skills. These are the specific knowledge skills required to support engineering or technician skills.
    • Tools skills. This represents the software that helps you deliver other software.

    While these are important, they are not the whole story. To effectively deliver software, we believe in the importance of being Agile over simply doing Agile.

    Adapted from: “Doing Agile” Is Only Part of the Software Delivery Pie

    Why focus on core skills?

    They are the foundation to achieve business outcomes

    Skills, actions, output and outcomes

    The right skills development is only possible with proper assessment and alignment against outcomes.

    Focus on these real Agile skills

    Agile skills

    • Accountability
    • Collaboration
    • Comfort with ambiguity
    • Communication
    • Empathy
    • Facilitation
    • Functional decomposition
    • Initiative
    • Process discipline
    • Resilience

    Product capabilities deliver value

    As a product owner, you are responsible for managing these facets through your capabilities and activities.

    The core product and value stream consists of: Funding - Product management and governance, Business functionality - Stakeholder and relationship management, and Technology - Product delivery.

    Info-Tech Best Practice

    It is easy to lose sight of what matters when we look at a product from a single point of view. Despite what "The Agile Manifesto" says, working software is not valuable without the knowledge and support that people need in order to adopt, use, and maintain it. If you build it, they will not come. Product owners must consider the needs of all stakeholders when designing and building products.

    Recognize product owner knowledge gaps

    Pulse survey of product owners

    Pulse survey of product owners. Graph shows large percentage of respondents have alignment to common agile definition of product owners. Yet a significant perception gap in P&L, delivery, and analytics.

    Info-Tech Insight

    1. Less than 15% of respondents identified analytics or financial management as a key component of product ownership.
    2. Assess your product owner’s capabilities and understanding to develop a maturity plan.

    Source: Pulse Survey (N=18)

    Implement the Info-Tech product owner capability model

    Unfortunately, most product owners operate with incomplete knowledge of the skills and capabilities needed to perform the role. Common gaps include focusing only on product backlogs, acting as a proxy for product decisions, and ignoring the need for key performance indicators (KPIs) and analytics in both planning and value realization.

    Product Owner capabilities: Vision, Product Lifecycle Management, Leadership, Value Realization

    Vision

    • Market Analysis
    • Business Alignment
    • Product Roadmap

    Leadership

    • Soft Skills
    • Collaboration
    • Decision Making

    Product Lifecycle Management

    • Plan
    • Build
    • Run

    Value Realization

    • KPIs
    • Financial Management
    • Business Model

    Product owner capabilities provide support

    Vision predicts impact of Value realization. Value realization provides input to vision

    Your vision informs and aligns what goals and capabilities are needed to fulfill your product or product family vision and align with enterprise goals and priorities. Each item on your roadmap should have corresponding KPIs or OKRs to know how far you moved the value needle. Value realization measures how well you met your target, as well as the impacts on your business value canvas and cost model.

    Product lifecycle management builds trust with Leadership. Leadership improves quality of Product lifecycle management.

    Your leadership skills improve collaborations and decisions when working with your stakeholders and product delivery teams. This builds trust and improves continued improvements to the entire product lifecycle. A product owner’s focus should always be on finding ways to improve value delivery.

    Product owner capabilities provide support

    Leadership enhances Vision. Vision Guides Product Lifecycle Management. Product Lifecycle Management delivers Value Realization. Leadership enhances Value Realization

    Develop product owner capabilities

    Each capability: Vision, Product lifecycle management, Value realization and Leadership has 3 components needed for successful product ownership.

    Avoid common capability gaps

    Vision

    • Focusing solely on backlog grooming (tactical only)
    • Ignoring or failing to align product roadmap to enterprise goals
    • Operational support and execution
    • Basing decisions on opinion rather than market data
    • Ignoring or missing internal and external threats to your product

    Leadership

    • Failing to include feedback from all teams who interact with your product
    • Using a command-and-control approach
    • Viewing product owner as only a delivery role
    • Acting as a proxy for stakeholder decisions
    • Avoiding tough strategic decisions in favor of easier tactical choices

    Product lifecycle management

    • Focusing on delivery and not the full product lifecycle
    • Ignoring support, operations, and technical debt
    • Failing to build knowledge management into the lifecycle
    • Underestimating delivery capacity, capabilities, or commitment
    • Assuming delivery stops at implementation

    Value realization

    • Focusing exclusively on “on time/on budget” metrics
    • Failing to measure a 360-degree end-user view of the product
    • Skipping business plans and financial models
    • Limiting financial management to project/change budgets
    • Ignoring market analysis for growth, penetration, and threats

    Your product vision is your North Star

    It's ok to dream a little!

    Who is the target customer, what is the key benefit, what do they need, what is the differentiator

    Adapted from: Crossing the Chasm

    Info-Tech Best Practice

    A product vision shouldn’t be so far out that it doesn’t feel real or so short-term that it gets bogged down in minutiae and implementation details. Finding the right balance will take some trial and error and will be different for each organization.

    Leverage the product canvas to state and inform your product vision

    Leverage the product Canvas to state and inform your product vision. Includes: Product name, Tracking info, Vision, List of business objectives or goals, Metrics used to measure value realization, List of groups who consume the product/service, and List of key resources or stakeholders.

    Define product value by aligning backlog delivery with roadmap goals

    In each product plan, the backlogs show what you will deliver. Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    In each product plan, the backlogs show what you will deliver. Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    Use a balanced value to establish a common definition of goals and value

    Value drivers are strategic priorities aligned to our enterprise strategy and translated through our product families. Each product and change has an impact on the value driver helping us reach our enterprise goals.

    Importance of the value driver multiplied by the Impact of value score is equal to the Value score.

    Info-Tech Insight

    Your value drivers and impact helps estimate the expected value of roadmap items, prioritize roadmap and backlog items, and identify KPIs and OKRs to measure value realization and actual impact.

    Use CLAIM to guide your journey

    Culture, Learning, Automation, Integrated teams, Metrics and governance.

    Value is best created by self-managing teams who deliver in frequent, short increments supported by leaders who coach them through challenges.

    Product-centric delivery and Agile are a radical change in how people work and think. Structured, facilitated learning is required throughout the transformation to help leaders and practitioners make the shift.

    Product management, Agile, and DevOps have inspired SDLC tools that have become a key part of delivery practices and work management.

    Self-organizing teams that cross business, delivery, and operations are essential to gain the full benefits of product-centric delivery.

    Successful implementations require the disciplined use of metrics that support developing better teams

    Communicate reasons for changes and how they will be implemented

    Five elements of communicating change: What is the change? Why are we doing it? How are we going to go about it? How long will it take us to do it? What will the role be for each department individual?

    Leaders of successful change spend considerable time developing a powerful change message; that is, a compelling narrative that articulates the desired end state, and that makes the change concrete and meaningful to staff.

    The organizational 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 the change will be implemented.
    • Address how change will affect various roles in the organization.
    • Discuss the staff’s role in making the change successful.

    Info-Tech’s methodology for mature and scale product ownership

    Phase steps

    1. Establish the foundation for product ownership

    Step 1.1 Establish an environment for product owner success

    Step 1.2 Establish your product ownership model

    2. Align product owners to products

    Step 2.1 Assign product owners to products

    Step 2.2 Manage stakeholder influence

    3. Mature product owner capabilities

    Step 3.1 Assess your Agile product owner readiness

    Step 3.2 Mature product owner capabilities

    Phase outcomes

    1.1.1 Define enablers and blockers of product management

    1.1.2 Define your product management roles and names

    1.2.1 Identify your primary product owner perspective

    1.2.2 Define your product owner RACI

    2.1.1 Assign resources to your products and families

    2.2.1 Visualize relationships to identify key influencers

    2.2.2 Group stakeholders into categories

    2.2.3 Prioritize your stakeholders

    3.1.1 Assess your real Agile skill proficiency

    3.2 Mature product owner capabilities

    3.2.1 Assess your vision capability proficiency

    3.2.2 Assess your leadership capability proficiency

    3.2.3 Assess your PLM capability proficiency

    3.2.4 Identify your business value drivers and sources of value

    3.2.5 Assess your value realization capability proficiency

    Blueprint deliverables

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

    Key deliverable

    Mature and Scale Product Ownership Playbook

    Capture and organize the outcomes of the activities in the workbook.

    Mature and Scale Product Ownership Workbook

    The workbook helps organize and communicate the outcomes of each activity.

    Mature and Scale Product Ownership Readiness Assessment

    Determine your level of mastery of real Agile skills and product owner capabilities.


    Blueprint benefits

    IT benefits

    • Competent product owner who can support teams operating in any delivery methodology.
    • Representative viewpoint and input from the technical and operational product owner perspectives.
    • Products aligned to business needs and committed work are achievable.
    • Single point of contact with a business representative.
    • Acceptance of product owner role outside the Scrum teams.

    Business benefits

    • Better alignment to enterprise goals, vision, and outcomes.
    • Improved coordination with stakeholders.
    • Quantifiable value realization tied to vision.
    • Product decisions made at the right time and with the right input.
    • Product owner who has the appropriate business, operations, and technical knowledge.

    Measure the value of this blueprint

    Align product owner metrics to product delivery and value realization.

    Member outcome

    Suggested Metric

    Estimated impact

    Increase business application satisfaction Satisfaction of business applications (CIO BV Diagnostic) 20% increase within one year after implementation
    Increase effectiveness of application portfolio management Effectiveness of application portfolio management (M&G Diagnostic) 20% increase within one year after implementation
    Increase importance and effectiveness of application portfolio Importance and effectiveness to business (APA Diagnostic) 20% increase within one year after implementation
    Increase satisfaction of support of business operations Support to business (CIO BV Diagnostic) 20% increase within one year after implementation
    Successfully deliver committed work (productivity) Number of successful deliveries; burndown Reduction in project implementation overrun by 20%

    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?

    Phase 1 Establish the Foundation for Product Ownership

    Phase 2 Align Product Owners to Products

    Phase 3 Mature Product Owner Capabilities

    • Call #1:
      Scope objectives and your specific challenges
    • Call #2:
      Step 1.1 Establish an environment for product owner success
      Step 1.2 Establish your product ownership model
    • Call #3:
      Step 2.1 Assign product owners to products
    • Call #4:
      Step 2.2 Manage stakeholder influence
    • Call #5:
      Step 3.1 Assess your Agile product owner readiness
    • Call #6:
      Step 3.2 Mature product owner capabilities

    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 and 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

    Phase 1

    Phase 2

    Phase 3

    Activities

    Establish the Foundation for Product Ownership

    Step 1.1 Establish an environment for product owner success

    1.1.1 Define enablers and blockers of product management

    1.1.2 Define your product management roles and names

    1.1.3 Assess your product management readiness

    Step 1.2 Establish your product ownership model

    1.2.1 Identify your primary product owner perspective

    1.2.2 Define your product owner RACI

    Align Product Owners to Products

    Step 2.1 Assign product owners to products

    2.1.1 Assign resources to your products and families

    Step 2.2 Manage stakeholder influence

    2.2.1 Visualize relationships to identify key influencers

    2.2.2 Group stakeholders into categories

    2.2.3 Prioritize your stakeholders

    Mature Product Owner Capabilities

    Step 3.1 Assess your Agile product owner readiness

    3.1.1 Assess your real Agile skill proficiency

    Step 3.2 Mature product owner capabilities=

    3.2.1 Assess your Vision capability proficiency

    3.2.2 Assess your Leadership capability proficiency

    3.2.3 Assess your PLM capability proficiency

    3.2.4 Identify your business value drivers and sources of value

    3.2.5 Assess your Value Realization capability proficiency

    Deliverables

    1. Enablers and blockers
    2. Role definitions
    3. Product culture readiness
    4. Product owner perspective mapping
    5. Product owner RACI
    1. Product resource assignment
    2. Stakeholder management strategy
    1. Real Agile skill proficiency assessment
    2. Info-Tech’s product owner capability model proficiency assessment
    3. Business value drivers and sources of value

    Related Info-Tech Research

    Product delivery

    Deliver on Your Digital Product Vision

    Build a product vision your organization can take from strategy through execution.

    Deliver Digital Products at Scale

    Deliver value at the scale of your organization through defining enterprise product families.

    Build Your Agile Acceleration Roadmap

    Quickly assess the state of your Agile readiness and plan your path forward to higher value realization.

    Develop Your Agile Approach for a Successful Transformation

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

    Implement DevOps Practices That Work

    Streamline business value delivery through the strategic adoption of DevOps practices.

    Extend Agile Practices Beyond IT

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

    Build Your BizDevOps Playbook

    Embrace a team sport culture built around continuous business-IT collaboration to deliver great products.

    Embed Security Into the DevOps Pipeline

    Shift security left to get into DevSecOps.

    Spread Best Practices With an Agile Center of Excellence

    Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Enable Organization-Wide Collaboration by Scaling Agile

    Execute a disciplined approach to rolling out Agile methods in the organization.

    Related Info-Tech Research

    Application portfolio management

    APM Research Center

    See an overview of the APM journey and how we can support the pieces in this journey.

    Application Portfolio Management Foundations

    Ensure your application portfolio delivers the best possible return on investment.

    Streamline Application Maintenance

    Effective maintenance ensures the long-term value of your applications.

    Streamline Application Management

    Move beyond maintenance to ensuring exceptional value from your apps.

    Build an Application Department Strategy

    Delivering value starts with embracing what your department can do.

    Embrace Business-Managed Applications

    Empower the business to implement its own applications with a trusted business-IT relationship.

    Optimize Applications Release Management

    Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Value, delivery metrics, estimation

    Build a Value Measurement Framework

    Focus product delivery on business value-driven outcomes.

    Select and Use SDLC Metrics Effectively

    Be careful what you ask for, because you will probably get it.

    Application Portfolio Assessment: End User Feedback

    Develop data-driven insights to help you decide which applications to retire, upgrade, re-train on, or maintain to meet the demands of the business.

    Create a Holistic IT Dashboard

    Mature your IT department by measuring what matters.

    Refine Your Estimation Practices With Top-Down Allocations

    Don’t let bad estimates ruin good work.

    Estimate Software Delivery With Confidence

    Commit to achievable software releases by grounding realistic expectations.

    Reduce Time to Consensus With an Accelerated Business Case

    Expand on the financial model to give your initiative momentum.

    Optimize Project Intake, Approval, and Prioritization

    Deliver more projects by giving yourself the voice to say “no” or “not yet” to new projects.

    Enhance PPM Dashboards and Reports

    Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Organizational design and performance

    Redesign Your IT Organizational Structure

    Focus product delivery on business value-driven outcomes.

    Build a Strategic Workforce Plan

    Have the right people in the right place, at the right time.

    Implement a New Organizational Structure

    Reorganizations are inherently disruptive. Implement your new structure with minimal pain for staff while maintaining IT performance throughout the change.

    Build an IT Employee Engagement Program

    Don’t just measure engagement, act on it.

    Set Meaningful Employee Performance Measures

    Set holistic measures to inspire employee performance.

    Phase 1

    Establish the Foundation for Product Ownership

    Phase 1: Establish an environment for product owner success, Establish your product ownership model

    Mature and Scale Product Ownership

    This phase will walk you through the following activities:

    1.1.1 Define enablers and blockers of product management

    1.1.2 Define your product management roles and names

    1.1.3 Assess your product management readiness

    1.2.1 Identify your primary product owner perspective

    1.2.2 Define your product owner RACI

    This phase involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Step 1.1

    Establish an environment for product owner success

    Activities

    1.1.1 Define enablers and blockers of product management

    1.1.2 Define your product management roles and names

    1.1.3 Assess your product management readiness

    Establish the foundation for product ownership

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Outcomes of this step

    • Enablers and blockers
    • Role definitions

    Empower product owners as the true owners of their product

    Product ownership requires decision-making authority and accountability for the value realization from those decisions. POs are more than a proxy for stakeholders, aggregators for changes, and the communication of someone else’s priorities.

    “A Product Owner in its most beneficial form acts like an Entrepreneur, like a 'mini-CEO'. The Product Owner is someone who really 'owns' the product.”

    – Robbin Schuurman,
    “Tips for Starting Technical Product Managers”

    Info-Tech Best Practice

    Implement Info-Tech’s Product Owner Capability Model to help empower and hold product owners accountable for the maturity and success of their product. The product owner must understand how their product fits into the organization’s mission and strategy in order to align to enterprise value.

    Product and service owners share the same foundation and capabilities

    For the purpose of this blueprint, product/service and product owner/service owner are used interchangeably. The term “product” is used for consistency but applies to services, as well.

    Product = Service

    Common foundations: Focus on continuous improvement, ROI, and value realization. Clear vision, goals, roadmap, and backlog.

    “Product” and “service” are terms that each organization needs to define to fit its culture and customers (internal and external). The most important aspect is consistent use and understanding of:

    • External products
    • Internal products
    • External services
    • Internal services
    • Products as a service (PaaS)
    • Productizing services (SaaS)

    Define product ownership to match your culture and customers

    Characteristics of a discrete product:

    • Has end users or consumers
    • Delivers quantifiable value
    • Evolves or changes over time
    • Has predictable delivery
    • Has definable boundaries
    • Has a cost to produce and operate
    • Has a discrete backlog and roadmap of improvements

    What does not need a product owner?

    • Individual features
    • Transactions
    • Unstructured data
    • One-time solutions
    • Non-repeatable processes
    • Solutions that have no users or consumers
    • People or teams

    Info-Tech Insight

    • Products are long-term endeavors that don’t end after the project finishes.
    • Products mature and improve their ability to deliver value.
    • Products have a discrete backlog of changes to improve the product itself, separate from operational requests fulfilled by the product or service.

    Need help defining your products or services? Download our blueprint Deliver Digital Products at Scale.

    Connect roadmaps to value realization with KPIs

    Every roadmap item should have an expected realized value once it is implemented. The associate KPIs or OKRs determine if our goal was met. Any gap in value feedback back into the roadmap and backlog refinement.</p data-verified=

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    Info-Tech Insight

    Every roadmap item should have an expected realized value once it is implemented. The associate KPIs or OKRs determine if our goal was met. Any gap in value feedback back into the roadmap and backlog refinement.

    Identify the differences between a project-centric and a product-centric organization

    Differences between Project centric and Product centric organizations in regards to: Funding, Prioritization, Accountability, Product management, Work allocation, and Capacity management.

    Info-Tech Insight

    Product delivery requires significant shifts in the way you complete development work and deliver value to your users. Make the changes that support improving end-user value and enterprise alignment.

    Projects can be a mechanism for funding product changes and improvements

    Projects lifecycle, hybrid lifecycle and product lifecycle. Period or periods of project development have parallel services that encompass a more product-based view.

    Projects withing products

    Regardless of whether you recognize yourself as a product-based or project-based shop, the same basic principles should apply.

    You go through a period or periods of project-like development to build a version of an application or product.

    You also have parallel services along with your project development, which encompasses a more product-based view. These may range from basic support and maintenance to full-fledged strategy teams or services like sales and marketing.

    Recognize common barriers to product management

    The transition to product ownership is a series of behavioral and cultural changes supported by processes and governance. It takes time and consistency to be successful.

    • Command and control structures
    • Lack of ownership and accountability
    • High instability in the market, demand, or organization
    • Lack of dedicated teams align to delivery, service, or product areas
    • Culture of one-off projects
    • Lack of identified and engaged stakeholders
    • Lack of customer exposure and knowledge

    Agile’s four core values

    “…while there is value in the items on the right, we value the items on the left more.”

    Source: “The Agile Manifesto”

    We value...

    We value being agile: Individuals and interactions, Working Software, Customer collaboration, Responding to change. Versus being prescriptive: Processes and tools, Comprehensive documentation, Contract negotiation, following a plan.

    Exercise 1.1.1 Define enablers and blockers of product management

    1 hour
    1. Identify and mitigate blockers of product management in your organization.
    2. What enablers will support strong product owners?
    3. What blockers will make the transition to product management harder?
    4. For each blocker, also define at least one mitigating step.
    Define enablers e.g. team culture. Define blockers and at least one mitigating step

    Output

    • Enablers and blockers

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Align enterprise value through product families

    Product families are operational groups based on capabilities or business functions. Product family managers translate goals, priorities, and constraints so they are actionable at the next level. Product owners prioritize changes to enhance the capabilities that allow you to realize your product family. Enabling capabilities realize value and help reach your goals.

    Effective product delivery requires thinking about more than just a single product

    Good application and product management begins with strengthening good practices for a single or small set of applications, products, and services.

    Product portfolio

    Groups of product families within an overall value stream or capability grouping.

    Project portfolio manager

    Product family

    A collection of related products. Products can be grouped along architectural, functional, operational, or experiential patterns.

    Product family manager

    Product

    Single product composed of one or more applications and services.

    Product owner

    Info-Tech Insight

    Define the current roles that will perform the product management function or define consistent role names to product owners and managers.

    Exercise 1.1.2 Define your product management roles and names

    1-2 hour
    1. Identify the roles in which product management activities will be owned.
    2. Define a common set of role names and describe the role.
    3. Map the level of accountability for each role: Product or Product Family
    4. Product owner perspectives will be defined in the next step.

    Define roles, description and level of product accountability.

    Output

    • Role definitions

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Use CLAIM to guide your journey

    Culture, Learning, Automation, Integrated teams, Metrics and governance.

    Value is best created by self-managing teams who deliver in frequent, short increments supported by leaders who coach them through challenges.

    Product-centric delivery and Agile are a radical change in how people work and think. Structured, facilitated learning is required throughout the transformation to help leaders and practitioners make the shift.

    Product management, Agile, and DevOps have inspired SDLC tools that have become a key part of delivery practices and work management.

    Self-organizing teams that cross business, delivery, and operations are essential to gain the full benefits of product-centric delivery.

    Successful implementations require the disciplined use of metrics that support developing better teams

    Exercise 1.1.3 Assess your product management readiness

    1 hour
    1. Open and complete the Mature and Scale Product Ownership Readiness Assessment in your Playbook or the provided Excel tool.
    2. Discuss high and low scores for each area to reach a consensus.
    3. Record your results in your Playbook.

    Assess your culture, learning, automation, Integrated teams, metrics and governance.

    Output

    • Assessment of product management readiness based on Info-Tech’s CLAIM+G model.

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Readiness Assessment.

    Communicate reasons for changes and how they will be implemented

    Five elements of communicating change: What is the change? Why are we doing it? How are we going to go about it? How long will it take us to do it? What will the role be for each department individual?

    Leaders of successful change spend considerable time developing a powerful change message; that is, a compelling narrative that articulates the desired end state, and that makes the change concrete and meaningful to staff.

    The organizational change message should:

    Step 1.2

    Establish your product ownership model

    Activities

    1.2.1 Identify your primary product owner perspective

    1.2.2 Define your product owner RACI

    Establish the foundation for product ownership

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Outcomes of this step

    • Product owner perspective mapping
    • Product owner RACI

    Recognize the product owner perspectives

    The 3 product owner perspectives. 1. Business: Customer-facing, value-generating. 2. Technical: IT systems and tools. 3. Operations: Keep-the-lights-on processes.

    Product owners represent one of three primary perspectives. Although all share the same capabilities, how they approach their responsibilities is influenced by their primary perspective.

    Info-Tech Best Practice

    Product owners must translate needs and constraints from their perspective into the language of their audience. Kathy Borneman, Digital Product Owner at SunTrust Bank, noted the challenges of finding a common language between lines of business and IT (e.g. what is a unit?).

    Identify and align to product owner perspectives to ensure product success

    Product owner perspectives

    The 3 product owner perspectives. 1. Business: Customer-facing, value-generating. 2. Technical: IT systems and tools. 3. Operations: Keep-the-lights-on processes.
    1. Each product owner perspective provides important feedback, demand, and support for the product.
    2. Where a perspective is represented by a distinct role, the perspective is managed with that product owner.
    3. If separate roles don’t exist, the product owner must evaluate their work using two or three perspectives.
    4. The ultimate success of a product, and therefore product owner, is meeting the end-user value of the business product owner, tool support of the technical product owner, and manual processing support of the operations product owner.

    Line of business (LOB) product owners

    LOB product owners focus on the products and services consumed by the organization’s external consumers and users. The role centers on the market needs, competitive landscape, and operational support to deliver products and services.

    Business perspective

    • Alignment to enterprise strategy and priorities
    • Growth: market penetration and/or revenue
    • Perception of product value
    • Quality, stability, and predictability
    • Improvement and innovation
    • P&L
    • Market threats and opportunities
    • Speed to market
    • Service alignment
    • Meet or exceed individual goals

    Relationship to Operations

    • Customer satisfaction
    • Speed of delivery and manual processing
    • Continuity

    Relationship to Technical

    • Enabler
    • Analysis and insight
    • Lower operating and support costs

    Technical product owners

    Technical product owners are responsible for the IT systems, tools, platforms, and services that support business operations. Often they are identified as application or platform managers.

    Technical perspective

    • Application, application suite, or group of applications
    • Core platforms and tools
    • Infrastructure and networking
    • Third-party technology services
    • Enable business operations
    • Direct-to-customer product or service
    • Highly interconnected
    • Need for continuous improvement
    • End-of-life management
    • Internal value proposition and users

    Relationship to Business

    • Direct consumers
    • End users
    • Source of funding

    Relationship to Operations

    • End users
    • Process enablement or automation
    • Support, continuity, and manual intervention

    Operations (service) product owners

    Operational product owners focus on the people, processes, and tools needed for manual processing and decisions when automation is not cost-effective. Operational product owners are typically called service owners due to the nature of their work.

    Operational perspective

    • Business enablement
    • Continuity
    • Problem, incident, issue resolution
    • Process efficiency
    • Throughput
    • Error/defect avoidance
    • Decision enablement
    • Waste reduction
    • Limit time in process
    • Disaster recovery

    Relationship to Business

    • Revenue enablement
    • Manual intervention and processing
    • End-user satisfaction

    Relationship to Technical

    • Process enabler
    • Performance enhancement
    • Threat of automation

    Exercise 1.2.1 Identify your primary product owner perspective

    1 hour
    1. Identify which product owner perspective represents your primary focus.
    2. Determine where the other perspectives need to be part of your product roadmap or if they are managed by other product owners.

    Identify product/service name, identify product owner perspective, determine if other perspectives need to be part of roadmap.

    Output

    • Identification of primary product owner perspective.

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Realign differences between project managers and product owners

    Differences between Project Manager and Product Owners in regards to: Funding, Prioritization, Accountability, Product management, Work allocation, and Capacity management.

    Manage and communicate key milestones

    Successful product owners understand and define the key milestones in their product delivery lifecycles. These need to be managed along with the product backlog and roadmap.

    Define key milestones and their product delivery life-cycles.

    Info-Tech Best Practice

    Product ownership isn’t just about managing the product backlog and development cycles. Teams need to manage key milestones such as learning milestones, test releases, product releases, phase gates, and other organizational checkpoints.

    Define who manages each key milestone

    Key milestones must be proactively managed. If a project manager is not available, those responsibilities need to be managed by the product owner or Scrum Master. Start with responsibility mapping to decide which role will be responsible.

    Example milestones and Project Manager, Product Owner and Team Facilitator.

    *Scrum Master, Delivery Manager, Team Lead

    Exercise 1.2.2 Define your product owner RACI

    60 minutes
    1. Review your product and project delivery methodologies to identify key milestones (including approvals, gates, reviews, compliance checks, etc.). List each milestone on a flip chart or whiteboard.
    2. For each milestone, define who is accountable for the completion.
    3. For each milestone, define who is responsible for executing the milestone activity. (Who does the work that allows the milestone to be completed?)
    4. Review any responsibility and accountability gaps and identify opportunities to better support and execute your operating model.
    5. If you previously completed Deliver Digital Products at Scale , review and update your RACI in the Mature and Scale Product Ownership Workbook .

    Define: Milestones, Project Manager, Product/service owner, Team Facilitator, and Other roles.

    Output

    • Product owner RACI

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Phase 2

    Align Product Owners to Products

    Phase 2: Assign product owners to products, Manage stakeholder influence

    Mature and Scale Product Ownership

    This phase will walk you through the following activities:

    2.1.1 Assign resources to your products and families

    2.2.1 Visualize relationships to identify key influencers

    2.2.2 Group stakeholders into categories

    2.2.3 Prioritize your stakeholders

    This phase involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Step 2.1

    Assign product owners to products

    Activities

    2.1.1 Assign resources to your products and families

    Align product owners to products

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Outcomes of this step

    • Product resource assignment

    Match your product management role definitions to your product family levels

    Using the role definitions, you created in Exercise 1.1.2, determine which roles correspond to which levels of your product families.

    Product portfolio

    Groups of product families within an overall value stream or capability grouping.

    Project portfolio manager

    Product family

    A collection of related products. Products can be grouped along architectural, functional, operational, or experiential patterns.

    Product family manager

    Product

    Single product composed of one or more applications and services.

    Product owner

    Info-Tech Insight

    Define the current roles that will perform the product management function or define consistent role names to product owners and managers.

    Assign resources throughout your product families

    Project families are owned by a product manager. Product owners own each product that has a distinct backlog.

    Info-Tech Insight

    • Start by assigning resources to each product or product family box.
    • A product owner can be responsible for more than one product.
    • Ownership of more than one product does not mean they share the same backlog.
    • For help organizing your product families, please download Deliver Digital Products at Scale.

    Understand special circumstances

    In Deliver Digital Products at Scale , products were grouped into families using Info-Tech’s five scaling patterns. Assigning owners to Enterprise Applications and Shared Services requires special consideration.

    Value stream alignment

    • Business architecture
      • Value stream
      • Capability
      • Function
    • Market/customer segment
    • Line of business (LoB)
    • Example: Customer group > value stream > products

    Enterprise applications

    • Enabling capabilities
    • Enterprise platforms
    • Supporting apps
    • Example: HR > Workday/Peoplesoft > Modules Supporting: Job board, healthcare administrator

    Shared Services

    • Organization of related services into service family
    • Direct hierarchy does not necessarily exist within the family
    • Examples: End-user support and ticketing, workflow and collaboration tools

    Technical

    • Domain grouping of IT infrastructure, platforms, apps, skills, or languages
    • Often used in combination with Shared Services grouping or LoB-specific apps
    • Examples: Java, .NET, low-code, database, network

    Organizational alignment

    • Used at higher levels of the organization where products are aligned under divisions
    • Separation of product managers from organizational structure is no longer needed because the management team owns the product management role

    Map the source of demand to each product

    With enterprise applications and shared services, your demand comes from other product and service owners rather than end customers in a value stream.

    Enterprise applications

    • Primary demand comes from the operational teams and service groups using the platform.
    • Each group typically has processes and tools aligned to a module or portion of the overall platform.
    • Product owners determine end-user needs to assist with process improvement and automation.
    • Product family managers help align roadmap goals and capabilities across the modules and tools to ensure consistency and the alignment of changes.

    Shared services

    • Primary demand for shared services comes from other product owners and service managers whose solution or application is dependent on the shared service platform.
    • Families are grouped by related themes (e.g. workflow tools) to increase reusability, standard enterprise solutions, reduced redundancy, and consistent processes across multiple teams.
    • Product owners manage the individual applications or services within a family.

    Pattern: Enterprise applications

    A division or group delivers enabling capabilities and the team’s operational alignment maps directly to the modules/components of an enterprise application and other applications that support the specific business function.

    Workforce Management, Strategic HR, Talent Management, Core HR

    Example:

    • Human resources is one corporate function. Within HR, however, there are subfunctions that operate independently.
    • Each operational team is supported by one or more applications or modules within a primary HR system.
    • Even though the teams work independently, the information they manage is shared with, or ties into processes used by other teams. Coordination of efforts helps provide a higher level of service and consistency.

    For additional information about HRMS, please download Get the Most Out of Your HRMS.

    Assigning owners to enterprise applications

    Align your enterprise application owners to your operating teams that use the enterprise applications. Effectively, your service managers will align with your platform module owners to provide integrated awareness and planning.

    Family manager (top-level), Family managers (second-level) and Product owners.

    Pattern: Shared services

    Grouping by service type, knowledge area, or technology allows for specialization while families align service delivery to shared business capabilities.

    Grouping by service type, knowledge area, or technology allows for specialization while families align service delivery to shared business capabilities.

    Example:

    • Recommended for governance, risk, and compliance; infrastructure; security; end-user support; and shared platforms (workflow, collaboration, imaging/record retention). Direct hierarchies do not necessarily exist within the shared service family.
    • Service groupings are common for service owners (also known as support managers, operations managers, etc.).
    • End-user ticketing comes through a common request system, is routed to the team responsible for triage, and then is routed to a team for resolution.
    • Collaboration tools and workflow tools are enablers of other applications, and product families might support multiple apps or platforms delivering that shared capability.

    Assigning owners to shared services

    Assign owners by service type, knowledge area, or technology to provide alignment of shared business capabilities and common solutions.

    Family manager (top-level), Family managers (second-level) and Product owners.

    Map sources of demand and influencers

    Use the stakeholder analysis to define the key stakeholders and sources of demand for enterprise applications and shared services. Extend your mapping to include their stakeholders and influencers to uncover additional sources of demand and prioritization.

    Map of key stakeholders for enterprise applications and shared services.

    Info-Tech Insight

    Your product owner map defines the influence landscape your product operates. It is every bit as important as the teams who enhance, support, and operate your product directly.

    Combine your product owner map with your stakeholder map to create a comprehensive view of influencers.

    Exercise 2.1.1 Assign resources to your products and families

    1-4 hours
    1. Use the product families you completed in Deliver Digital Products at Scale to determine which products and product families need a resource assigned. Where the same resource fills more than one role, they are the product owner or manager for each independently.
    2. Product families that are being managed as products (one backlog for multiple products) should have one owner until the family is split into separate products later.
    3. For each product and family, define the following:
      • Who is the owner (role or person)?
      • Is ownership clearly defined?
      • Are there other stakeholders who make decisions for the product?
    4. Record the results in the Mature and Scale Product Ownership Workbook on the Product Owner Mapping worksheet.

    Output

    • Product owner and manager resource alignment.

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Step 2.2

    Manage stakeholder influence

    Activities

    2.2.1 Visualize relationships to identify key influencers

    2.2.2 Group stakeholders into categories

    2.2.3 Prioritize your stakeholders

    Align product owners to products

    This step involves the following participants:

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Delivery managers
    • Business analysts

    Outcomes of this step

    • Stakeholder management strategy

    Develop a product owner stakeholder strategy

    Stakeholder management, Product lifecycle, Project delivery, Operational support.

    Stakeholders are a critical cornerstone to product ownership. They provide the context, alignment, and constraints that influence or control what a product owner can accomplish.

    Product owners operate within a network of stakeholders who represent different perspectives within the organization.

    First, product owners must identify members of their stakeholder network. Next, they should devise a strategy for managing stakeholders.

    Without a stakeholder strategy, product owners will encounter obstacles, resistance, or unexpected changes.

    Create a stakeholder network map to product roadmaps and prioritization

    Follow the trail of breadcrumbs from your direct stakeholders to their influencers to uncover hidden stakeholders.

    Create a stakeholder network map to product roadmaps and prioritization. Use connectors to determine who may be influencing your direct stakeholders.

    Info-Tech Insight

    Your stakeholder map defines the influence landscape your product operates. It is every bit as important as the teams who enhance, support, and operate your product directly.

    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 substantive relationships with your stakeholders.

    Exercise 2.2.1 Visualize relationships to identify key influencers

    1 hour
    1. List direct stakeholders for your product.
    2. 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 informal bidirectional influence relationships.
    5. Record the results in the Mature and Scale Product Ownership Workbook .

    Output

    • Relationships among stakeholders and influencers

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Categorize your stakeholders with a prioritization map

    A stakeholder prioritization map helps product owners categorize their stakeholders by their level of influence and ownership in the product and/or teams.

    Influence versus Ownership/Interest

    There are four areas on the map, and the stakeholders within each area should be treated differently.

    • 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 impediments to the objectives.
    • 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 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 are generally apathetic and have little influence over or interest in the initiative.

    Exercise 2.2.2 Group stakeholders into categories

    1 hour
    1. Identify your stakeholders’ interest in and influence on your Agile implementation as high, medium, or low by rating the attributes below.
    2. Map your results to the model below to determine each stakeholder’s category.
    3. Record the results in the Mature and Scale Product Ownership Workbook .

    Influence versus Ownership/Interest with CMO, CIO and Product Manager in assigned areas.

    Output

    • Categorization of stakeholders and influencers

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership 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.

    Stakeholder category versus level of support.

    Consider the three dimensions of stakeholder prioritization: influence, interest, and support. Support can be determined by rating the following question: How likely is it that your stakeholder would recommend your product? These parameters are used to prioritize which stakeholders are most important and should receive your focused attention. The table to the right indicates how stakeholders are ranked.

    Exercise 2.2.3 Prioritize your stakeholders

    1 hour
    1. Identify the level of support of each stakeholder by answering the following question: How likely is it that your stakeholder would endorse your product?
    2. Prioritize your stakeholders using the prioritization scheme on the previous slide.
    3. Record the results in the Mature and Scale Product Ownership Workbook .

    Stakeholder, Category, level of support, prioritization.

    Output

    • Stakeholder and influencer prioritization

    Participants

    • Product owners
    • Product managers
    • Development team leads
    • Portfolio managers
    • Business analysts

    Capture in the Mature and Scale Product Ownership Playbook.

    Define strategies for engaging stakeholders by type

    Authority Vs. Ownership/Interest.

    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 your stakeholder groups, the product owner 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.

    Phase 3

    Mature Product Owner Capabilities

    Phase 3: Assess your Agile product owner readiness, Mature product owner capabilities.

    Mature and Scale Product Ownership

    This phase will walk you through the following activities:

    3.1.1 Assess your real Agile skill proficiency

    3.2.1 Assess your vision capability proficiency

    3.2.2 Assess your leadership capability proficiency

    3.2.3 Assess your PLM capability proficiency

    3.2.4 Identify your business value drivers and sources of value

    3.2.5 Assess your value realization capability proficiency

    This phase involves the following participants:

    • Product owners
    • Product managers

    Step 3.1

    Assess your Agile product owner readiness

    Activities

    3.1.1 Assess your real Agile skill proficiency

    Mature product owner capabilities

    This step involves the following participants:

    • Product owners
    • Product managers

    Outcomes of this step

    • Real Agile skill proficiency assessment

    Why focus on core skills?

    They are the foundation to achieve business outcomes

    Skills, actions, output and outcomes

    The right skills development is only possible with proper assessment and alignment against outcomes.

    Being successful at Agile is more than about just doing Agile

    The following represents the hard skills needed to “Do Agile”:

    Being successful at Agile needs 4 hard skills: 1. Engineering skills, 2. Technician Skills, 3. Framework/Process skills, 4. Tools skills.

    • Engineering skills. These are the skills and competencies required for building brand-new valuable software.
    • Technician skills. These are the skills and competencies required for maintaining and operating the software delivered to stakeholders.
    • Framework/Process skills. These are the specific knowledge skills required to support engineering or technician skills.
    • Tools skills. This represents the software that helps you deliver other software.

    While these are important, they are not the whole story. To effectively deliver software, we believe in the importance of being Agile over simply doing Agile.

    Adapted from: “Doing Agile” Is Only Part of the Software Delivery Pie

    Focus on these real Agile skills

    Agile skills

    • Accountability
    • Collaboration
    • Comfort with ambiguity
    • Communication
    • Empathy
    • Facilitation
    • Functional decomposition
    • Initiative
    • Process discipline
    • Resilience

    Info-Tech research shows these are the real Agile skills to get started with

    Skill Name

    Description

    Accountability

    Refers to the state of being accountable. In an Agile context, it implies transparency, dedication, acting responsibly, and doing what is necessary to get the job done.

    Collaboration

    Values diverse perspectives and working with others to achieve the best output possible. Effective at working toward individual, team, department, and organizational goals.

    Comfort with ambiguity

    Allows you to confidently take the next steps when presented with a problem without having all the necessary information present.

    Communication

    Uses different techniques to share information, concerns, or emotions when a situation arises, and it allows you to vary your approach depending on the current phase of development.

    Empathy

    Is the ability to understand and share the feelings of another to better serve your team and your stakeholders.

    Facilitation

    Refers to guiding and directing people through a set of conversations and events to learn and achieve a shared understanding.

    Functional decomposition

    Is being able to break down requirements into constituent epics and stories.

    Initiative

    Is being able to anticipate challenges and then act on opportunities that lead to better business outcomes.

    Process discipline

    Refers to the focus of following the right steps for a given activity at the right time to achieve the right outcomes.

    Resilience

    Refers to the behaviors, thoughts, and actions that allow a person to recover from stress and adversity.

    Accountability

    An accountable person:

    • Takes ownership of their own decisions and actions and is responsible for the quality of results.
    • Recognizes personal accountabilities to others, including customers.
    • Works well autonomously.
    • Ensures that the mutual expectations between themselves and others are clearly defined.
    • Takes the appropriate actions to ensure that obligations are met in a timely manner.
    • As a leader, takes responsibility for those being led.

    Accountability drives high performance in teams and organizations

    • The performance level of teams depends heavily on accountability and who demonstrates it:
      • In weak teams, there is no accountability.
      • In mediocre teams, supervisors demonstrate accountability.
      • In high-performance teams, peers manage most performance problems through joint accountability. (Grenny, 2014)
    • According to Bain & Company, accountability is the third most important attribute of high-performing companies. Some of the other key attributes include honest, performance-focused, collaborative, and innovative. (Mankins, 2013)

    All components of the employee empowerment driver have a strong, positive correlation with engagement.

    Employee empowerment and Correlation with engagement.

    Source: McLean & Company Engagement Database, 2018; N=71,794

    Accountability

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Alerts others to possible problems in a timely manner.
    • Seeks appropriate support to solve problems.
    • Actively contributes to the creation and evaluation of possible solutions.
    • Acts on solutions selected and decisions made as directed.
    • Makes effective decisions about how to complete work tasks.
    • Demonstrates the capability of breaking down concrete issues into parts and synthesizing information succinctly.
    • Collects and analyzes information from a variety of sources.
    • Seeks information and input to fully understand the cause of problems.
    • Takes action to address obstacles and problems before they impact performance and results.
    • Initiates the evaluation of possible solutions to problems.
    • Makes effective decisions about work task prioritization.
    • Appropriately assesses risks before deciding.
    • Effectively navigates through ambiguity, using multiple data points to analyze issues and identify trends.
    • Does not jump to conclusions.
    • Draws logical conclusions and provides opinions and recommendations with confidence.
    • Takes ownership over decisions and their consequences.
    • Demonstrates broad knowledge of information sources that can be used to assess problems and make decisions.
    • Invests time in planning, discovery, and reflection to drive better decisions.
    • Effectively leverages hard data as inputs to making decisions.
    • Garners insight from abstract data and makes appropriate decisions.
    • Coaches others in effective decision-making practices.
    • Has the authority to solve problems and make decisions.
    • Thinks several steps ahead in deciding the best course of action, anticipating likely outcomes, risks, or implications.
    • Establishes metrics to aid in decision-making, for self and teams
    • Prioritizes objective and ambiguous information and analyzes this when making decisions.
    • Solicits a diverse range of opinions and perspectives as inputs to decision making.
    • Applies frameworks to decision making, particularly in situations that have little base in prior experience.
    • Makes effective decisions about organizational priorities.
    • Holds others accountable for their decisions and consequences.
    • Creates a culture of empowerment and trust to facilitate effective problem solving and decision making.
    • Makes sound decisions that have organization-wide consequences and that influence future direction.

    Collaboration as a skill

    The principles and values of Agile revolve around collaboration.

    • Works well with others on specialized and cross-functional teams.
    • Can self-organize while part of a team.
    • Respects the commitments that others make.
    • Identifies and articulates dependencies.
    • Values diverse perspectives and works with others to achieve the best output possible.
    • Effective at working toward individual, team, department, and organizational goals.
    The principles and values of Agile revolve around collaboration. Doing what was done before (being prescriptive), going though the motions (doing Agile), living the principles (being Agile)

    Collaboration

    The Agile Manifesto has three principles that focus on collaboration:

    1. The business and developers must work together daily throughout the project.
    2. Build projects around motivated individuals. Give them the environment and support they need and trust them to get the job done.
    3. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation.

    Effective collaboration supports Agile behaviors, including embracing change and the ability to work iteratively.

    Collaboration

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Understands role on the team and the associated responsibilities and accountabilities.
    • Treats team members with respect.
    • Contributes to team decisions and to the achievement of team goals and objectives.
    • Demonstrates a positive attitude.
    • Works cross-functionally to achieve common goals and to support the achievement of other team/department goals.
    • Values working in a diverse team and understands the importance of differing perspectives to develop unique solutions or ideas.
    • Fosters team camaraderie, collaboration, and cohesion.
    • Understands the impact of one's actions on the ability of team members to do their jobs.
    • Respects the differences other team members bring to the table by openly seeking others' opinions.
    • Helps the team accomplish goals and objectives by breaking down shared goals into smaller tasks.
    • Approaches challenging team situations with optimism and an open mind, focusing on coming to a respectful conclusion.
    • Makes suggestions to improve team engagement and effectiveness.
    • Supports implementation of team decisions.
    • Professionally gives and seeks feedback to achieve common goals.
    • Values working in a diverse team and understands the importance of differing perspectives to develop unique solutions or ideas.
    • Motivates the team toward achieving goals and exceeding expectations.
    • Reaches out to other teams and departments to build collaborative, cross-functional relationships.
    • Creates a culture of collaboration that leverages team members' strengths, even when the team is remote or virtual.
    • Participates and encourages others to participate in initiatives that improve team engagement and effectiveness.
    • Builds consensus to make and implement team decisions, often navigating through challenging task or interpersonal obstacles.
    • Values leading a diverse team and understands the importance of differing perspectives to develop unique solutions or ideas.
    • Creates a culture of collaboration among teams, departments, external business partners, and all employee levels.
    • Breaks down silos to achieve inter-departmental collaboration.
    • Demonstrates ownership and accountability for team/department/ organizational outcomes.
    • Uses an inclusive and consultative approach in setting team goals and objectives and making team decisions.
    • Coaches others on how to identify and proactively mitigate potential points of team conflict.
    • Recognizes and rewards teamwork throughout the organization.
    • Provides the tools and resources necessary for teams to succeed.
    • Values diverse teams and understands the importance of differing perspectives to develop unique solutions or ideas.

    Comfort with ambiguity

    Ability to handle ambiguity is a key factor in Agile success.

    • Implies the ability to maintain a level of effectiveness when all information is not present.
    • Able to confidently act when presented with a problem without all information present.
    • Risk and uncertainty can comfortably be handled.
    • As a result, can easily adapt and embrace change.
    • People comfortable with ambiguity demonstrate effective problem-solving skills.

    Relative importance of traits found in Agile teams

    1. Handles ambiguity
    2. Agreeable
    3. Conscientious

    Comfort with ambiguity

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Requires most information to be present before carrying out required activities.
    • Can operate with some information missing.
    • Comfortable asking people within their known circles for help.
    • Significant time is taken to reveal small pieces of information.
    • More adept at operating with information missing.
    • Willing to reach out to people outside of their regular circles for assistance and clarification.
    • Able to apply primary and secondary research methods to fill in the missing pieces.
    • Can operate essentially with a statement and a blank page.
    • Able to build a plan, drive others and themselves to obtain the right information to solve the problem.
    • Able to optimize only pulling what is necessary to answer the desired question and achieve the desired outcome.

    Communication

    Even though many organizations recognize its importance, communication is one of the root causes of project failure.

    Project success vs Communication effectiveness. Effective communications is associated with a 17% increase in finishing projects within budget.

    56%

    56% of the resources spent on a project are at risk due to ineffective communications.

    PMI, 2013.

    29%

    In 29% of projects started in the past 12 months, poor communication was identified as being one of the primary causes of failure.

    PMI, 2013.

    Why are communication skills important to the Agile team?

    It’s not about the volume, it’s about the method.

    • Effectively and appropriately interacts with others to build relationships and share ideas and information.
    • Uses tact and diplomacy to navigate difficult situations.
    • Relays key messages by creating a compelling story, targeted toward specific audiences.

    Communication effectiveness, Activity and Effort required.

    Adapted From: Agile Modeling

    Communication

    Your Score:____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Actively listens, learns through observation, and uses clear and precise language.
    • Possesses an open and approachable demeanor, with a positive and constructive tone.
    • Demonstrates interest in the thoughts and feelings of others.
    • Considers potential responses of others before speaking or acting.
    • Checks own understanding of others’ communication by repeating or paraphrasing.
    • Demonstrates self-control in stressful situations.
    • Provides clear, concise information to others via verbal or written communication.
    • Seeks to understand others' points of view, looking at verbal and non-verbal cues to encourage open and honest discussions.
    • Invites and encourages others to participate in discussions.
    • Projects a sincere and genuine tone.
    • Remains calm when dealing with others who are upset or angry.
    • Provides and seeks support to improve communication.
    • Does not jump to conclusions or act on assumptions.
    • Tailors messages to meet the different needs of different audiences.
    • Accurately interprets responses of others to their words and actions.
    • Provides feedback effectively and with empathy.
    • Is a role model for others on how to effectively communicate.
    • Ensures effective communication takes place at the departmental level.
    • Engages stakeholders using appropriate communication methods to achieve desired outcomes.
    • Creates opportunities and forums for discussion and idea sharing.
    • Demonstrates understanding of the feelings, motivations, and perspectives of others, while adapting communications to anticipated reactions.
    • Shares insights about their own strengths, weaknesses, successes, ad failures to show empathy and help others relate.
    • Discusses contentious issues without getting defensive and maintains a professional tone.
    • Coaches others on how to communicate effectively and craft targeted messages.
    • Sets and exemplifies standards for respectful and effective communications in the organization.
    • Comfortably delivers strategic messages supporting their function and the organization at the enterprise level.
    • Communicates with senior-level executives on complex organizational issues.
    • Promotes inter-departmental communication and transparency.
    • Achieves buy-in and consensus from people who share widely different views.
    • Shares complex messages in clear, understandable language.
    • Accurately interprets how they are perceived by others.
    • Rallies employees to communicate ideas and build upon differing perspectives to drive innovation.

    Empathy

    Empathy is the ability to understand and share the feelings of another in order to better serve your team and your stakeholders. There are three kinds:

    Cognitive

    Thought, understanding, intellect

    • Knowing how someone else feels and what they might be thinking.
    • Contributes to more effective communication.

    Emotional

    Feelings, physical sensation

    • You physically feel the emotions of the other person.
    • Helps build emotional connections with others.

    Compassionate

    Intellect, emotion with action

    • Along with understanding, you take action to help.

    How is empathy an Agile skill?

    Empathy enables you to serve your team, your customers, and your organization

    Serving the team

    • Primary types: Emotional and compassionate empathy.
    • The team is accountable for delivery.
    • By being able to empathize with the person you are talking to, complex issues can be addressed.
    • A lack of empathy leads to a lack of collaboration and being able to go forward on a common path.

    Serving your customers and stakeholders

    • Primary type: Cognitive empathy.
    • Agile enables the delivery of the right value at the right time to your stakeholders
    • Translating your stakeholders' needs requires an understanding of who they are as people. This is done through observations, interviews and conversations.
    • Leveraging empathy maps and user-story writing is an effective tool.

    Empathy

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Knowing how someone else feels and what they might be thinking.
    • Ability to build emotional connections with others.
    • Able to harness emotional connections to achieve tangible and experiential outcomes.
    • Demonstrates an awareness of different feelings and ways of thinking by both internal and external stakeholders.
    • Limited ability to make social connections with others outside of the immediate team.
    • Able to connect with similarly minded people to improve customer/stakeholder satisfaction. (Insights into action)
    • Able to interact and understand others with vastly different views.
    • Lack of agreement does not stop individual. from asking questions, understanding, and pushing the conversation forward

    Facilitation

    It’s not just your manager’s problem.

    “Facilitation is the skill of moderating discussions within a group in order to enable all participants to effectively articulate their views on a topic under discussion, and to ensure that participants in the discussion are able to recognize and appreciate the differing points of view that are articulated.” (IIBA, 2015)

    • Drives action through influence, often without authority.
    • Leads and impacts others' thinking, decisions, or behavior through inclusive practices and relationship building.
    • Encourages others to self-organize and hold themselves accountable.
    • Identifies blockers and constructively removes barriers to progress.

    Facilitation

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Drives action through influence, often without authority.
    • Leads and impacts others' thinking, decisions, or behavior through inclusive practices and relationship building.
    • Encourages others to self-organize and hold themselves accountable.
    • Identifies blockers and constructively removes barriers to progress.
    • Maps and executes processes effectively.
    • Uses facts and concrete examples to demonstrate a point and gain support from others.
    • Openly listens to the perspectives of others.
    • Builds relationships through honest and consistent behavior.
    • Understands the impact of their own actions and how others will perceive it.
    • Identifies impediments to progress.
    • Anticipates the effect of one's approach on the emotions and sensitivities of others.
    • Practices active listening while demonstrating positivity and openness.
    • Customizes discussion and presentations to include "what’s in it for me" for the audience.
    • Presents compelling information to emphasize the value of an idea.
    • Involves others in refining ideas or making decisions in order to drive buy-in and action.
    • Knows how to appropriately use influence to achieve outcomes without formal authority.
    • Seeks ways and the help of others to address barriers or blockers to progress.
    • Leverages a planned approach to influencing others by identifying stakeholder interests, common goals, and potential barriers.
    • Builds upon successes to gain acceptance for new ideas.
    • Facilitates connections between members of their network for the benefit of the organization or others.
    • Demonstrates the ability to draw on trusting relationships to garner support for ideas and action.
    • Encourages a culture that allows space for influence to drive action.
    • Adept at appropriately leveraging influence to achieve business unit outcomes.
    • Actively manages the removal of barriers and blockers for teams.

    Functional decomposition

    It’s not just a process, it’s a skill.

    “Functional decomposition helps manage complexity and reduce uncertainty by breaking down processes, systems, functional areas, or deliverables into their simpler constituent parts and allowing each part to be analyzed independently."

    (IIBA, 2015)

    Being able to break down requirements into constituent consumable items (example: epics and user stories).

    Start: Strategic Initiatives. 1: Epics. 2: Capabilities. 3: Features. End: Stories.

    Use artifact mapping to improve functional decomposition

    In our research, we refer to these items as epics, capabilities, features, and user stories. How you develop your guiding principles and structure your backlog should be based on the terminology and artifact types commonly used in your organization.

    Agile, Waterfall, Relationship, Decomposition skill most in demand, definition.

    Functional Decomposition

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Able to decompose items with assistance from other team members.
    • Able to decompose items independently, ensuring alignment with business value.
    • Able to decompose items independently and actively seeks out collaboration opportunities with relevant SME's during and after the refinement process to ensure completion.
    • Able to decompose items at a variety of granularity levels.
    • Able to teach and lead others in their decomposition efforts.
    • Able to quickly operate at different levels of the requirements stack.

    Initiative and self-organization

    A team that takes initiative can self-organize to solve critical problems.

    • "The best architectures, requirements, and designs emerge from self-organizing teams." (Agile Manifesto)
    • In a nutshell, the initiative represents the ability to anticipate challenges and act on opportunities that lead to better business outcomes.
    • Anticipates challenges and acts on opportunities that lead to better business outcomes.
    • Thinks critically and is motivated to use both specialist expertise and general knowledge.
    • Driven by the delivery of business value and better business outcomes.
    • Empowers others to act and is empowered and self-motivated.

    Initiative and self-organization

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Demonstrates awareness of an opportunity or issue which is presently occurring or is within the immediate work area.
    • Reports an opportunity or issue to the appropriate person.
    • Acts instead of waiting to be asked.
    • Willingly takes on challenges, even if they fall outside their area of expertise.
    • Is proactive in identifying issues and making recommendations to resolve them.
    • Within the scope of the work environment, takes action to improve processes or results, or to resolve problems.
    • Not deterred by obstacles.
    • Tackles challenges that require risk taking.
    • Procures the necessary resources, team and technical support to enable success.
    • Assists others to get the job done.
    • Demonstrates awareness of an opportunities or issues which are in the future or outside the immediate work area.
    • Typically exceeds the expectations of the job.
    • Learns new technology or skills outside their specialization so that they can be a more effective team member.
    • Recommends solutions to enhance results or prevent potential issues.
    • Drives implementation of new processes within the team to improve results.
    • Able to provide recommendations on plans and decisions that are strategic and future-oriented for the organization.
    • Identifies areas of high risk or of organizational level impact.
    • Able to empower significant recourses from the organization to enable success.
    • Leads long-term engagements that result in improved organizational capabilities and processes.

    Process discipline

    A common misconception is that Agile means no process and no discipline. Effective Agile teams require more adherence to the right processes to create a culture of self-improvement.

    • Refers to the focus of following the right steps for a given activity at the right time to achieve the right outcomes.
    • Focus on following the right steps for a given activity at the right time to achieve desired outcomes.
    Example: Scrum Ceremonies during a sprint (1 - 4 weeks/sprint). 1: Sprint planning, 2: Daily scrum, 3: Sprint review, 4: Sprint retrospective.

    Process discipline

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Demonstrates awareness of the key processes and steps that are needed in a given situation.
    • Limited consistency in following processes and limited understanding of the 'why' behind the processes.
    • Aware and follows through with key agile processes in a consistent manner.
    • Demonstrates not only the knowledge of processes but understands the 'why' behind their existence.
    • Aware and follows through with key agile processes in a consistent manner.
    • Demonstrates understanding of not only why specific processes exist but can suggest changes to improve efficiency, consistency, and outcomes.

    N/A -- Maximum level is '3

    Resilience

    If your team hits the wall, don’t let the wall hit them back.

    • Resilience is critical for an effective Agile transformation. A team that demonstrates resilience always exhibits:
    • Evolution over transformation – There is a recognition that changes happen over time.
    • Intensity and productivity – A race is not won by the ones who are the fastest, but by the ones who are the most consistent. Regardless of what comes up, the team can push through.
    • That organizational resistance is futile – Given that it is working on the right objectives, the team needs to demonstrate a consistency of approach and intensity regardless of what may stand in its way.
    • Refers to the behaviors, thoughts, and actions that allow a person to recover from stress and adversity.

    How resilience aligns with Agile

    A team is not “living the principles” without resilience.

    1. Purpose

      Aligns with: “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” The vision or goals may not be clear in certain circumstances and can be difficult to relate to a single work item. Being able to intrinsically source and harness a sense of purpose becomes more important, especially as a self-organizing team.
    2. Perseverance

      Aligns with: “Agile processes harness change for the customer's competitive advantage.” Perseverance enables teams to continuously deliver at a steady pace, addressing impediments or setbacks and continuing to move forward.
    3. Composure

      Aligns with: “Agile processes promote sustainable development,” and “At regular intervals, the team reflects ... and adjusts its behavior accordingly.”
      When difficult situations arise, composure allows us to understand perspectives, empathize with customers, accept late changes, and sustain a steady pace.
    4. Self-Reliance

      Aligns with: “The best architectures, requirements, and designs emerge from self-organizing teams.” Knowing oneself, recognizing strengths, and drawing on past successes, can be a powerful aid in creating high-performing Agile teams
    5. Authenticity

      Aligns with: “At regular intervals, the team reflects … and adjusts its behavior accordingly,” and “Build projects around motivated individuals.”
      When difficult situations arise, authenticity is crucial. “For example, being able to openly disclose areas outside of your strengths in sprint planning or being able to contribute constructively toward self-organization.”

    Adapted from: Why Innovation, 2019.

    Resilience

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Easily distracted and stopped by moderately stressful and challenging situations.
    • Requires significant help from others to get back on track.
    • Not frequently able (or knows) how to ask for help
    • Handles typical stresses and challenges for the given role.
    • Able to get back on track with limited assistance.
    • Able to ask for help when they need it.
    • Quality of work unaffected by an increase in pressures and challenges.
    • Handles stresses and challenges what is deemed above and beyond their given role.
    • Able to provide advice to others on how to handle difficult and challenging situations.
    • Quality of work and outcomes is maintained and sometimes exceeded as pressure increases.
    • Team looks to this individual as being the gold standard on how to approach any given problem or situation.
    • Directly mentors others on approaches in situations regardless of the level of challenge.

    Exercise 1.2.1 Identify your primary product owner perspective

    1 hour
    1. Review each real Agile skill and determine your current proficiency.
    2. Complete your assessment in the Mature and Scale Product Owner Proficiency Assessment tool.
    3. Record the results in the Mature and Scale Product Ownership Playbook.
    4. Review the skills map to identify strengths and areas of growth.

    Accountability, Collaboration, Comfort in Ambiguity, Communication, Empathy, Facilitation, Functional Decomposition, Initiative, Process Discipline, Resilience.

    Output

    • Agile skills assessment results.

    Participants

    • Product owners
    • Product managers

    Capture in the Mature and Scale Product Owner Proficiency Assessment.

    Determine your Agile skills proficiency: Edit chart data to plot your scores or add your data points and connect the lines.

    Step 3.2

    Mature product owner capabilities

    Activities

    3.2.1 Assess your vision capability proficiency

    3.2.2 Assess your leadership capability proficiency

    3.2.3 Assess your PLM capability proficiency

    3.2.4 Identify your business value drivers and sources of value

    3.2.5 Assess your value realization capability proficiency

    Mature product owner capabilities

    This step involves the following participants:

    • Product owners
    • Product managers

    Outcomes of this step

    • Info-Tech product owner capability model proficiency assessment

    Product capabilities deliver value

    As a product owner, you are responsible for managing these facets through your capabilities and activities.

    The core product and value stream consists of: Funding - Product management and governance, Business functionality - Stakeholder and relationship management, and Technology - Product delivery.

    Info-Tech Best Practice

    It is easy to lose sight of what matters when we look at a product from a single point of view . Despite what "The Agile Manifesto" says, working software is not valuable without the knowledge and support that people need in order to adopt, use, and maintain it. If you build it, they will not come. Product owners must consider the needs of all stakeholders when designing and building products.

    Recognize product owner knowledge gaps

    Pulse survey of product owners

    Pulse survey of product owners. Graph shows large percentage of respondents have alignment to common agile definition of product owners. Yet a significant perception gap in P&L, delivery, and analytics.

    Info-Tech Insight

    1. Less than 15% of respondents identified analytics or financial management as a key component of product ownership.
    2. Assess your product owner’s capabilities and understanding to develop a maturity plan.

    Source: Pulse Survey (N=18)

    Implement the Info-Tech product owner capability model

    Unfortunately, most product owners operate with incomplete knowledge of the skills and capabilities needed to perform the role. Common gaps include focusing only on product backlogs, acting as a proxy for product decisions, and ignoring the need for key performance indicators (KPIs) and analytics in both planning and value realization.

    Product Owner capabilities: Vision, Product Lifecycle Management, Leadership, Value Realization

    Vision

    • Market Analysis
    • Business Alignment
    • Product Roadmap

    Leadership

    • Soft Skills
    • Collaboration
    • Decision Making

    Product Lifecycle Management

    • Plan
    • Build
    • Run

    Value Realization

    • KPIs
    • Financial Management
    • Business Model

    Product owner capabilities provide support

    Vision predicts impact of Value realization. Value realization provides input to vision

    Your vision informs and aligns what goals and capabilities are needed to fulfill your product or product family vision and align with enterprise goals and priorities. Each item on your roadmap should have corresponding KPIs or OKRs to know how far you moved the value needle. Value realization measures how well you met your target, as well as the impacts on your business value canvas and cost model.

    Product lifecycle management builds trust with Leadership. Leadership improves quality of Product lifecycle management.

    Your leadership skills improve collaborations and decisions when working with your stakeholders and product delivery teams. This builds trust and improves continued improvements to the entire product lifecycle. A product owner’s focus should always be on finding ways to improve value delivery.

    Product owner capabilities provide support

    Leadership enhances Vision. Vision Guides Product Lifecycle Management. Product Lifecycle Management delivers Value Realization. Leadership enhances Value Realization

    Develop product owner capabilities

    Each capability: Vision, Product lifecycle management, Value realization and Leadership has 3 components needed for successful product ownership.

    Avoid common capability gaps

    Vision

    • Focusing solely on backlog grooming (tactical only)
    • Ignoring or failing to align product roadmap to enterprise goals
    • Operational support and execution
    • Basing decisions on opinion rather than market data
    • Ignoring or missing internal and external threats to your product

    Leadership

    • Failing to include feedback from all teams who interact with your product
    • Using a command-and-control approach
    • Viewing product owner as only a delivery role
    • Acting as a proxy for stakeholder decisions
    • Avoiding tough strategic decisions in favor of easier tactical choices

    Product lifecycle management

    • Focusing on delivery and not the full product lifecycle
    • Ignoring support, operations, and technical debt
    • Failing to build knowledge management into the lifecycle
    • Underestimating delivery capacity, capabilities, or commitment
    • Assuming delivery stops at implementation

    Value realization

    • Focusing exclusively on “on time/on budget” metrics
    • Failing to measure a 360-degree end-user view of the product
    • Skipping business plans and financial models
    • Limiting financial management to project/change budgets
    • Ignoring market analysis for growth, penetration, and threats

    Capabilities: Vision

    Market Analysis

    • Customer Empathy: Identify the target users and unique value your product provides that is not currently being met. Define the size of your user base, segmentation, and potential growth.
    • Customer Journey: Define the future path and capabilities your users will respond to.
    • Competitive analysis: Complete a SWOT analysis for your end-to-end product lifecycle. Use Info-Tech’s Business SWOT Analysis Template.

    Business Alignment

    • Enterprise alignment: Align to enterprise and product family goals, strategies, and constraints.
    • Delivery and release strategy: Develop a delivery strategy to achieve value quickly and adapt to internal and external changes. Value delivery is constrained by your delivery pipeline.
    • OCM and go-to-market strategy: Create organizational change management, communications, and a user implementation approach to improve adoption and satisfaction from changes.

    Product Roadmap

    • Roadmap strategy: Determine the duration, detail, and structure of your roadmap to accurately communicate your vision.
    • Value prioritization: Define criteria used to evaluate and sequence demand items.
    • Release and capacity planning: Build your roadmap with realistic goals and milestones based on your delivery pipeline and dependencies.

    “Customers are best heard through many ears.”

    – Thomas K. Connellan, Inside the Magic Kingdom

    Vision: Market Analysis, Business Alignment, and Product Roadmap.

    Info-Tech Insight

    Data comes from many places and may still not tell the complete story.

    Build your product strategy playbook

    Complete Deliver on Your Digital Product Vision to define your Vision, Goals, Roadmap approach, and Backlog quality filters.

    Digital Product Strategy Supporting Workbook

    Supporting workbook that captures the interim results from a number of exercises that will contribute to your overall digital product vision.

    Product Backlog Item Prioritization Tool

    An optional tool to help you capture your product backlog and prioritize based on your given criteria

    Product Roadmap Tool

    An optional tool to help you build out and visualize your first roadmap.

    Your Digital Product Vision Details Strategy

    Record the results from the exercises to help you define, detail, and make real your digital product vision.

    Your product vision is your North Star

    It's ok to dream a little!

    Who is the target customer, what is the key benefit, what do they need, what is the differentiator

    Adapted from: Geoffrey Moore, 2014.

    Info-Tech Best Practice

    A product vision shouldn’t be so far out that it doesn’t feel real or so short-term that it gets bogged down in minutiae and implementation details. Finding the right balance will take some trial and error and will be different for each organization.

    Use product roadmaps to guide delivery

    In Deliver on Your Digital Product Vision, we showed how the product roadmap is key to value realization. As a product owner, the product roadmap is your communicated path to align teams and changes to your defined goals, while aligning your product to enterprise goals and strategy.

    As a product owner, the product roadmap is your communicated path to align teams and changes to your defined goals, while aligning your product to enterprise goals and strategy

    Info-Tech Best Practice

    Info-Tech Best Practice Product delivery requires a comprehensive set of business and technical competencies to effectively roadmap, plan, deliver, support, and validate your product portfolio. Product delivery is a “multi-faceted, complex discipline that can be difficult to grasp and hard to master.” It will take time to learn and adopt methods and become a competent product manager or owner (“What Is Product Management?”, Pichler Consulting Limited).

    Match your roadmap and backlog to the needs of the product

    Ultimately, you want products to be able to respond faster to changes and deliver value sooner. The level of detail in the roadmap and backlog is a tool to help the product owner plan for change. The duration of your product roadmap is all directly related to the tier of product owner in the product family.

    The level of detail in the roadmap and backlog is a tool to help the product owner plan for change. The duration of your product roadmap is all directly related to the tier of product owner in the product family.

    Product delivery realizes value for your product family

    While planning and analysis are done at the family level, work and delivery are done at the individual product level.

    Product strategy includes: Vision, Goals, Roadmap, backlog and Release plan.

    Use artifact mapping to improve functional decomposition

    In our research, we refer to these items as epics, capabilities, features, and user stories. How you develop your guiding principles and structure your backlog should be based on the terminology and artifact types commonly used in your organization.

    Agile, Waterfall, Relationship, Decomposition skill most in demand, definition.

    Manage and communicate key milestones

    Successful product owners understand and define the key milestones in their product delivery lifecycles. These need to be managed along with the product backlog and roadmap.

    Define key milestones and their release dates.

    Info-Tech Best Practice

    Product ownership isn’t just about managing the product backlog and development cycles! Teams need to manage key milestones such as learning milestones, test releases, product releases, phase gates, and other organizational checkpoints!

    Milestones

    • Points in the timeline when the established set of artifacts is complete (feature-based), or checking status at a particular point in time (time-based).
    • Typically assigned a date and used to show the progress of development.
    • Plays an important role when sequencing different types of artifacts.

    Release dates

    • Releases mark the actual delivery of a set of artifacts packaged together in a new version of the product.
    • Release dates, firm or not, allow stakeholders to anticipate when this is coming.

    Leverage the product canvas to state and inform your product vision

    Leverage the product Canvas to state and inform your product vision. Includes: Product name, Tracking info, Vision, List of business objectives or goals, Metrics used to measure value realization, List of groups who consume the product/service, and List of key resources or stakeholders.

    Capability: Vision

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Product backlog.
    • Basic roadmap with milestones and releases.
    • Unprioritized stakeholder list.
    • Understanding of product’s purpose and value.
    • Customers and end-users defined with core needs identified.
    • Roadmap with goals and capabilities defined by themes and set to appropriate time horizons.
    • Documented stakeholder management plan with communication and collaboration aligned to the stakeholder strategy.
    • Value drivers traced to product families and enterprise goals.
    • Customer personas defined with pain relievers and value creators defined.
    • Fully-developed roadmap traced to family (and child) roadmaps.
    • Expected ROI for all current and next roadmap items.
    • KPIs/OKRs used to improve roadmap prioritization and sequencing.
    • Proactive stakeholder engagement and reviews.
    • Cross-functional engagement to align opportunities and drive enterprise value.
    • Formal metrics to assess customer needs and value realization.
    • Roadmaps managed in an enterprise system for full traceability, value realization reporting, and views for defined audiences.
    • Proactive stakeholder engagement with regular planning and review ceremonies tied to their roadmaps and goals.
    • Cross-functional innovation to find disruptive opportunities to drive enterprise value.
    • Omni-channel metrics and customer feedback mechanisms to proactively evaluate goals, capabilities, and value realization.

    Exercise 3.2.1 Assess your Vision capability proficiency

    1 hour
    1. Review the expectations for this capability and determine your current proficiency for each skill.
    2. Complete your assessment in the Mature and Scale Product Owner Proficiency Assessment tool.
    3. Record the results in the Mature and Scale Product Ownership Playbook.
    4. Review the skills map to identify strengths and areas of growth.

    Output

    • Product owner capability assessment

    Participants

    • Product owners
    • Product managers

    Capture in the Mature and Scale Product Owner Proficiency Assessment.

    Capabilities: Leadership

    Soft Skills

    • Communication: Maintain consistent, concise, and appropriate communication using SMART guidelines (specific, measurable, attainable, relevant, and timely).
    • Integrity: Stick to your values, principles, and decision criteria for the product to build and maintain trust with your users and teams.
    • Influence: Manage stakeholders using influence and collaboration over contract negotiation.

    Collaboration

    • Stakeholder management: Build a communications strategy for each stakeholder group, tailored to individual stakeholders.
    • Relationship management: Use every interaction point to strengthen relationships, build trust, and empower teams.
    • Team development: Promote development through stretch goals and controlled risks to build team capabilities and performance.

    Decision Making

    • Prioritized criteria: Remove personal bias by basing decisions off data analysis and criteria.
    • Continuous improvement: Balance new features with the need to ensure quality and create an environment of continuous improvement.
    • Team empowerment/negotiation: Push decisions to teams closest to the problem and solution, using Delegation Poker to guide you.

    “Everything walks the walk. Everything talks the talk.”

    – Thomas K. Connellan, Inside the Magic Kingdom

    Leadership: Soft skills, collaboration, decision making.

    Info-Tech Insight

    Product owners cannot be just a proxy for stakeholder decisions. The product owner owns product decisions and management of all stakeholders.

    Capability: Leadership

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Activities are prioritized with minimal direction and/or assistance.
    • Progress self-monitoring against objectives with leadership apprised of deviations against plan.
    • Facilitated decisions from stakeholders or teams.
    • Informal feedback on performance and collaboration with teams.
    • Independently prioritized activities and provide direction or assistance to others as needed.
    • Managed issue resolution and provided guidance on goals, priorities, and constraints.
    • Product decision ownership with input from stakeholders, SMEs, and delivery teams.
    • Formal product management retrospectives with tracked and measured changes to improve performance.
    • Consulted in the most challenging situations to provide subject matter expertise on leading practices and industry standards.
    • Provide mentoring and coaching to your peers and/or teammates.
    • Use team empowerment, pushing decisions to the lowest appropriate level based on risk and complexity.
    • Mature and flexible communication.
    • Provide strategies and programs ensuring all individuals in the delivery organization obtain the level of coaching and supervision required for success in their position.
    • Provide leadership to the organization’s coaches ensuring delivery excellence across the organization.
    • Help develop strategic initiatives driving common approaches and utilizing information assets and processes across the enterprise.

    Exercise 3.2.2 Assess your Leadership capability proficiency

    1 hour
    1. Review the expectations for this capability and determine your current proficiency for each skill.
    2. Complete your assessment in the Mature and Scale Product Owner Proficiency Assessment tool.
    3. Record the results in the Mature and Scale Product Ownership Playbook.
    4. Review the skills map to identify strengths and areas of growth.

    Output

    • Product owner capability assessment

    Participants

    • Product owners
    • Product managers

    Capture in the Mature and Scale Product Owner Proficiency Assessment.

    Capability: Product lifecycle management

    Plan

    • Product backlog: Follow a schedule for backlog intake, grooming, updates, and prioritization.
    • Journey map: Create an end-user journey map to guide adoption and loyalty.
    • Fit for purpose: Define expected value and intended use to ensure product meets your end user’s needs.

    Build

    • Capacity management: Work with operations and delivery teams to ensure consistent and stable outcomes.
    • Release strategy: Build learning, release, and critical milestones into a repeatable release plan.
    • Compliance: Build policy compliance into delivery practices to ensure alignment and reduce avoidable risk (privacy, security).

    Run

    • Adoption: Focus attention on end-user adoption and proficiency to accelerate value and maximize retention.
    • Support: Build operational support and business continuity into every team.
    • Measure: Measure KPIs and validate expected value to ensure product alignment to goals and consistent product quality.

    “Pay fantastic attention to detail. Reward, recognize, celebrate.”

    – Thomas K. Connellan, Inside the Magic Kingdom

    Product Lifecycle Management: Plan, Build, Run

    Info-Tech Insight

    Product owners must actively manage the full lifecycle of the product.

    Define product value by aligning backlog delivery with roadmap goals

    In each product plan, the backlogs show what you will deliver. Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    In each product plan, the backlogs show what you will deliver. Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    A backlog stores and organizes PBIs at various stages of readiness

    A backlog stores and organizes PBIs at different levels of readiness. Stage 3 - Ideas are composed of raw, vague ideas that have yet to go through any formal valuation. Stage 2 - Qualified are researched and qualified PBIs awaiting refinement. Stage 1 - Ready are Discrete, refined RBIs that are read to be placed in your development team's sprint plans.

    A well-formed backlog can be thought of as a DEEP backlog:

    Detailed Appropriately: PBIs are broken down and refined, as necessary.

    Emergent: The backlog grows and evolves over time as PBIs are added and removed.

    Estimated: The effort a PBI requires is estimated at each tier.

    Prioritized: The PBI’s value and priority are determined at each tier.

    (Perforce, 2018)

    Distinguish your specific goals for refining in the product backlog vs. planning for a sprint itself

    Often backlog refinement is used interchangeably or considered a part of sprint planning. The reality is they are very similar, as the required participants and objectives are the same; however, there are some key differences.

    Backlog refinement versus Sprint planning. Differences in Objectives, Cadence and Participants

    Use quality filters to promote high value items into the delivery pipeline

    Product backlog has quality filters such as: Backlogged, Qualified and Ready. Sprint backlog has a backlog of accepted PBI's

    Basic scrum process

    The scrum process coordinates multiple stakeholders to deliver on business priorities.

    Prioritized Backlog, Sprint Backlog, Manage Delivery, Sprint Review, Product Release

    Capability: Product lifecycle management

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Informal or undocumented intake process.
    • Informal or undocumented delivery lifecycle.
    • Unstable or unpredictable throughput or quality.
    • Informal or undocumented testing and release processes.
    • Informal or undocumented organizational change management planning for each release.
    • Informal or undocumented compliance validation with every release.
    • Documented intake process with stakeholder prioritization of requests.
    • Consistent delivery lifecycle with stable and predictable throughput with an expected range of delivery variance.
    • Formal and documented testing and release processes.
    • Organizational change management planning for each major release.
    • Compliance validation with every major release.
    • Intake process using value drivers and prioritization criteria to sequence all items.
    • Consistent delivery lifecycle with stable and predictable throughput with little variance.
    • Risk-based and partially automated testing and release processes.
    • Organizational change management planning for all releases.
    • Automated compliance validation with every major release.
    • Intake process using enterprise value drivers and prioritization criteria to sequence all items.
    • Stable Agile DevOps with low variability and automation.
    • Risk-based automated and manual testing.
    • Multiple release channels based on risk. Automated build, validation, and rollback capabilities.
    • Cross-channel, integrated organizational change management for all releases.
    • Automated compliance validation with every change or release.

    Exercise 3.2.3 Assess your PLM capability proficiency

    1 hour
    1. Review the expectations for this capability and determine your current proficiency for each skill.
    2. Complete your assessment in the Mature and Scale Product Owner Proficiency Assessment tool.
    3. Record the results in the Mature and Scale Product Ownership Playbook.
    4. Review the skills map to identify strengths and areas of growth.

    Output

    • Product owner capability assessment

    Participants

    • Product owners
    • Product managers

    Capture in the Mature and Scale Product Owner Proficiency Assessment.

    Capabilities: Value realization

    Key performance indicators (KPIs)

    • Usability and user satisfaction: Assess satisfaction through usage monitoring and end-user feedback.
    • Value validation: Directly measure performance against defined value proposition, goals, and predicted ROI.
    • Fit for purpose: Verify the product addresses the intended purpose better than other options.

    Financial management

    • P&L: Manage each product as if it were its own business with profit and loss statements.
    • Acquisition cost/market growth: Define the cost of acquiring a new consumer, onboarding internal users, and increasing product usage.
    • User retention/market share: Verify product usage continues after adoption and solution reaches new user groups to increase value.

    Business model

    • Defines value proposition: Dedicate your primary focus to understanding and defining the value your product will deliver.
    • Market strategy and goals: Define your acquisition, adoption, and retention plan for users.
    • Financial model: Build an end-to-end financial model and plan for the product and all related operational support.

    “The competition is anyone the customer compares you with.”

    – Thomas K. Connellan, Inside the Magic Kingdom

    Value Realization: KPIs, Financial management, Business model

    Info-Tech Insight

    Most organizations stop with on-time and on-budget. True financial alignment needs to define and manage the full lifecycle P&L.

    Use a balanced value to establish a common definition of goals and value

    Value drivers are strategic priorities aligned to our enterprise strategy and translated through our product families. Each product and change has an impact on the value driver helping us reach our enterprise goals.

    Importance of the value driver multiplied by the Impact of value score is equal to the Value score.

    Info-Tech Insight

    Your value drivers and impact helps estimate the expected value of roadmap items, prioritize roadmap and backlog items, and identify KPIs and OKRs to measure value realization and actual impact.

    Include balanced value as one criteria to guide better decisions

    Your balanced value is just one of many criteria needed to align your product goals and sequence roadmap items. Feasibility, delivery pipeline capacity, shared services, and other factors may impact the prioritization of backlog items.

    Build your balanced business value score by using four key value drivers.

    Determine your value drivers

    Competent organizations know that value cannot always be represented by revenue or reduced expenses. However, it is not always apparent how to envision the full spectrum of sources of value. Dissecting value by benefit type and the value source’s orientation allows you to see the many ways in which a product or service brings value to the organization.

    Business value matrix

    Graph with 4 quadrants representing Outward versus Inward, and Financial benefit versus Human benefit. The quadrants are Reach customers, Increase revenue/demonstrate value, Enhance services, Reduce costs.

    Financial benefits vs. improved capabilities

    Financial benefits refer to the degree to which the value source can be measured through monetary metrics and is often quite tangible.

    Human benefits refer to how a product or service can deliver value through a user’s experience.

    Inward vs. outward orientation

    Inward refers to value sources that have an internal impact and improve your organization’s effectiveness and efficiency in performing its operations.

    Outward refers to value sources that come from your interaction with external factors, such as the market or your customers.

    Exercise 3.2.4 Identify your business value drivers and sources of value

    1 hour
    1. Brainstorm the different types of business value that you produce on the sticky notes (one item per page). Draw from examples of products in your portfolio.
    2. Identify the most important value items for your organization (two to three per quadrant).
    3. Record the results in the Mature and Scale Product Ownership Workbook.

    Output

    • Product owner capability assessment

    Participants

    • Product owners
    • Product managers

    Capture in the Mature and Scale Product Ownership Workbook.

    My business value sources

    Graph with 4 quadrants representing Outward versus Inward, and Financial benefit versus Human benefit. The quadrants are Reach customers, Increase revenue/demonstrate value, Enhance services, Reduce costs.

    Capability: Value realization

    Your Score: ____

    1 - Foundational: Transitioning and Growing

    2 - Capable/Competent: Core Contributor

    3 - Influential: Gifted Improver

    4 - Transformational: Towering Strength

    • Product canvas or basic product positioning overview.
    • Simple budget or funding mechanism for changes.
    • Product demos and informal user feedback mechanisms.
    • Business value canvas or basic business model tied to roadmap funding.
    • Product funding tied to roadmap milestones and prioritization.
    • Defined KPIs /OKRs for roadmap delivery throughput and value realization measurement.
    • Business model with operating cost structures, revenue/value traceability, and market/user segments.
    • Scenario-based roadmap funding alignment.
    • Roadmap aligned KPIs /OKRs for delivery throughput and value realization measurement as a key factor in roadmap prioritization.
    • Business model tied to enterprise operating costs and value realization KPIs/OKRs.
    • P&L roadmap and cost accounting tied to value metrics.
    • Roadmap aligned enterprise and scenario-based KPIs /OKRs for delivery throughput and value realization measurement as a key factor in roadmap prioritization.

    Exercise 3.2.5 Assess your value realization capability proficiency

    1 hour
    1. Review the expectations for this capability and determine your current proficiency for each skill.
    2. Complete your assessment in the Mature and Scale Product Owner Proficiency Assessment tool.
    3. Record the results in the Mature and Scale Product Ownership Playbook.
    4. Review the skills map to identify strengths and areas of growth.

    Output

    • Product owner capability assessment

    Participants

    • Product owners
    • Product managers

    Capture in the Mature and Scale Product Owner Proficiency Assessment.

    Determine your product owner capability proficiency in regards to: Vision, Leadership, Product Lifecycle, and Value Realization

    Summary of Accomplishment

    Problem solved.

    Product ownership can be one of the most difficult challenges facing delivery and operations teams. By focusing on operational grouping and alignment of goals, organizations can improve their value realization at all levels in the organization.

    The foundation for delivering and enhancing products and services is rooted in the same capability model. Traditionally, product owners have focused on only a subset of skills and capabilities needed to properly manage and grow their products. The product owner capability model is a useful tool to ensure optimal performance from product owners and assess the right level of detail for each product within the product families.

    Congratulations. You’ve completed a significant step toward higher-value products and services.

    If you would like additional support, have our analysts guide you through other phases as apart 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 apart of an Info-Tech 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:

    3.1.1 Assess your real Agile skill proficiency

    Assess your skills and capabilities against the real Agile skills inventory

    2.2.3 Prioritize your stakeholders

    Build a stakeholder management strategy.

    Research Contributors and Experts

    Emily Archer

    Lead Business Analyst,
    Enterprise Consulting, authentic digital agency

    Emily Archer is a consultant currently working with Fortune 500 clients to ensure the delivery of successful projects, products, and processes. She helps increase the business value returned for organizations’ investments in designing and implementing enterprise content hubs and content operations, custom web applications, digital marketing, and e-commerce platforms.

    David Berg

    Founder & CTO
    Strainprint Technologies Inc.

    David Berg is a product commercialization expert who has spent the last 20 years delivering product management and business development services across a broad range of industries. Early in his career, David worked with product management and engineering teams to build core network infrastructure products that secure and power the internet we benefit from today. David’s experience also includes working with clean technologies in the area of clean power generation, agritech, and Internet of Things infrastructure. Over the last five years, David has been focused on his latest venture, Strainprint Technologies, a data and analytics company focused on the medical cannabis industry. Strainprint has built the largest longitudinal medical cannabis dataset in the world, with a goal to develop an understanding of treatment behavior, interactions, and chemical drivers to guide future product development.

    Research Contributors and Experts

    Kathy Borneman

    Digital Product Owner, SunTrust Bank

    Kathy Borneman is a senior product owner who helps people enjoy their jobs again by engaging others in end-to-end decision making to deliver software and operational solutions that enhance the client experience and allow people to think and act strategically.

    Charlie Campbell

    Product Owner, Merchant e-Solutions

    Charlie Campbell is an experienced problem solver with the ability to quickly dissect situations and recommend immediate actions to achieve resolution, liaise between technical and functional personnel to bridge the technology and communication gap, and work with diverse teams and resources to reach a common goal.

    Research Contributors and Experts

    Yarrow Diamond

    Sr. Director, Business Architecture
    Financial Services

    Yarrow Diamond is an experienced professional with expertise in enterprise strategy development, project portfolio management, and business process reengineering across financial services, healthcare and insurance, hospitality, and real estate environments. She has a master’s in Enterprise Architecture from Penn State University, LSSMBB, PMP, CSM, ITILv3.

    Cari J. Faanes-Blakey, CBAP, PMI-PBA

    Enterprise Business Systems Analyst,
    Vertex, Inc.

    Cari J. Faanes-Blakey has a history in software development and implementation as a Business Analyst and Project Manager for financial and taxation software vendors. Active in the International Institute of Business Analysis (IIBA), Cari participated on the writing team for the BA Body of Knowledge 3.0 and the certification exam.

    Research Contributors and Experts

    Kieran Gobey

    Senior Consultant Professional Services
    Blueprint Software Systems

    Kieran Gobey is an IT professional with 24 years of experience, focused on business, technology, and systems analysis. He has split his career between external and internal customer-facing roles, and this has resulted in a true understanding of what is required to be a Professional Services Consultant. His problem-solving skills and ability to mentor others have resulted in successful software implementations.

    Kieran’s specialties include deep system troubleshooting and analysis skills, facilitating communications to bring together participants effectively, mentoring, leadership, and organizational skills.

    Rupert Kainzbauer

    VP Product, Digital Wallets
    Paysafe Group

    Rupert Kainzbauer is an experienced senior leader with a passion for defining and delivering products that deliver real customer and commercial benefit. With a team of highly experienced and motivated product managers, he has successfully led highly complex, multi-stakeholder payments initiatives, from proposition development and solution design through to market delivery. Their domain experience is in building online payment products in high-risk and emerging markets, remittance, prepaid cards, and mobile applications.

    Research Contributors and Experts

    Saeed Khan

    Founder,
    Transformation Labs

    Saeed Khan has been working in high tech for 30 years in Canada and the US and has held several leadership roles in Product Management in that time. He speaks regularly at conferences and has been writing publicly about technology product management since 2005.

    Through Transformation Labs, Saeed helps companies accelerate product success by working with product teams to improve their skills, practices, and processes. He is a cofounder of ProductCamp Toronto and currently runs a Meetup group and global Slack community called Product Leaders; the only global community of senior level product executives.

    Hoi Kun Lo

    Product Owner
    Nielsen

    Hoi Kun Lo is an experienced change agent who can be found actively participating within the IIBA and WITI groups in Tampa, FL and a champion for Agile, architecture, diversity, and inclusion programs at Nielsen. She is currently a Product Owner in the Digital Strategy team within Nielsen Global Watch Technology.

    Research Contributors and Experts

    Abhishek Mathur

    Sr Director, Product Management
    Kasisto, Inc.

    Abhishek Mathur is a product management leader, an artificial intelligence practitioner, and an educator. He has led product management and engineering teams at Clarifai, IBM, and Kasisto to build a variety of artificial intelligence applications within the space of computer vision, natural language processing, and recommendation systems. Abhishek enjoys having deep conversations about the future of technology and helping aspiring product managers enter and accelerate their careers.

    Jeff Meister

    Technology Advisor and Product Leader

    Jeff Meister is a technology advisor and product leader. He has more than 20 years of experience building and operating software products and the teams that build them. He has built products across a wide range of industries and has built and led large engineering, design, and product organizations.

    Jeff most recently served as Senior Director of Product Management at Avanade, where he built and led the product management practice. This involved hiring and leading product managers, defining product management processes, solution shaping and engagement execution, and evangelizing the discipline through pitches, presentations, and speaking engagements.

    Jeff holds a Bachelor of Applied Science (Electrical Engineering) and a Bachelor of Arts from the University of Waterloo, an MBA from INSEAD (Strategy), and certifications in product management, project management, and design thinking.

    Research Contributors and Experts

    Vincent Mirabelli

    Principal,
    Global Project Synergy Group

    With over 10 years of experience in both the private and public sectors, Vincent Mirabelli possesses an impressive track record of improving, informing, and transforming business strategy and operations through process improvement, design and re-engineering, and the application of quality to business analysis, project management, and process improvement standards.

    Oz Nazili

    VP, Product & Growth
    TWG

    Oz Nazili is a product leader with a decade of experience in both building products and product teams. Having spent time at funded startups and large enterprises, he thinks often about the most effective way to deliver value to users. His core areas of interest include Lean MVP development and data-driven product growth.

    Research Contributors and Experts

    Mike Starkey

    Director of Engineering
    W.W. Grainger

    Mike Starkey is a Director of Engineering at W.W. Grainger, currently focusing on operating model development, digital architecture, and building enterprise software. Prior to joining W.W. Grainger, Mike held a variety of technology consulting roles throughout the system delivery lifecycle spanning multiple industries such as healthcare, retail, manufacturing, and utilities with Fortune 500 companies.

    Anant Tailor

    Cofounder and Head of Product
    Dream Payments Corp.

    Anant Tailor is a cofounder at Dream Payments where he currently serves as the COO and Head of Product, having responsibility for Product Strategy & Development, Client Delivery, Compliance, and Operations. He has 20+ years of experience building and operating organizations that deliver software products and solutions for consumers and businesses of varying sizes.

    Prior to founding Dream Payments, Anant was the COO and Director of Client Services at DonRiver Inc, a technology strategy and software consultancy that he helped to build and scale into a global company with 100+ employees operating in seven countries.

    Anant is a Professional Engineer with a Bachelor degree in Electrical Engineering from McMaster University and a certificate in Product Strategy & Management from the Kellogg School of Management at Northwestern University.

    Research Contributors and Experts

    Angela Weller

    Scrum Master, Businessolver

    Angela Weller is an experienced Agile business analyst who collaborates with key stakeholders to attain their goals and contributes to the achievement of the company’s strategic objectives to ensure a competitive advantage. She excels when mediating or facilitating teams.

    Related Info-Tech Research

    Product Delivery

    Deliver on Your Digital Product Vision

    Build a product vision your organization can take from strategy through execution.

    Deliver Digital Products at Scale

    Deliver value at the scale of your organization through defining enterprise product families.

    Build Your Agile Acceleration Roadmap

    Quickly assess the state of your Agile readiness and plan your path forward to higher value realization.

    Implement Agile Practices That Work

    Improve collaboration and transparency with the business to minimize project failure.

    Implement DevOps Practices That Work

    Streamline business value delivery through the strategic adoption of DevOps practices.

    Extend Agile Practices Beyond IT

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

    Build Your BizDevOps Playbook

    Embrace a team sport culture built around continuous business-IT collaboration to deliver great products.

    Embed Security Into the DevOps Pipeline

    Shift security left to get into DevSecOps.

    Spread Best Practices With an Agile Center of Excellence

    Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Enable Organization-Wide Collaboration by Scaling Agile

    Execute a disciplined approach to rolling out Agile methods in the organization.

    Related Info-Tech Research

    Application Portfolio Management

    APM Research Center

    See an overview of the APM journey and how we can support the pieces in this journey.

    Application Portfolio Management Foundations

    Ensure your application portfolio delivers the best possible return on investment.

    Streamline Application Maintenance

    Effective maintenance ensures the long-term value of your applications.

    Streamline Application Management

    Move beyond maintenance to ensuring exceptional value from your apps.

    Build an Application Department Strategy

    Delivering value starts with embracing what your department can do.

    Embrace Business-Managed Applications

    Empower the business to implement their own applications with a trusted business-IT relationship

    Optimize Applications Release Management

    Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Value, Delivery Metrics, Estimation

    Build a Value Measurement Framework

    Focus product delivery on business value–driven outcomes.

    Select and Use SDLC Metrics Effectively

    Be careful what you ask for, because you will probably get it.

    Application Portfolio Assessment: End User Feedback

    Develop data-driven insights to help you decide which applications to retire, upgrade, re-train on, or maintain to meet the demands of the business.

    Create a Holistic IT Dashboard

    Mature your IT department by measuring what matters.

    Refine Your Estimation Practices With Top-Down Allocations

    Don’t let bad estimates ruin good work.

    Estimate Software Delivery With Confidence

    Commit to achievable software releases by grounding realistic expectations.

    Reduce Time to Consensus With an Accelerated Business Case

    Expand on the financial model to give your initiative momentum.

    Optimize Project Intake, Approval, and Prioritization

    Deliver more projects by giving yourself the voice to say “no” or “not yet” to new projects.

    Enhance PPM Dashboards and Reports

    Facilitate ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    Related Info-Tech Research

    Organizational Design and Performance

    Redesign Your IT Organizational Structure

    Focus product delivery on business value-driven outcomes.

    Build a Strategic IT Workforce Plan

    Have the right people, in the right place, at the right time.

    Implement a New Organizational Structure

    Reorganizations are inherently disruptive. Implement your new structure with minimal pain for staff while maintaining IT performance throughout the change.

    Build an IT Employee Engagement Program

    Don’t just measure engagement, act on it

    Set Meaningful Employee Performance Measures

    Set holistic measures to inspire employee performance.

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    Altman, Igor. “Metrics: Gone Bad.” OpenView, 10 Nov. 2009. Web.

    Barry, Richard. “The Product Vision Canvas – a Strategic Tool in Developing a Successful Business.” Polymorph, 2019. Web.

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    Charak, Dinker. “Product Management Canvas - Product in a Snapshot.” Dinker Charak, 29 May 2017. Web.

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    Cowan, Alex. “The 20 Minute Business Plan: Business Model Canvas Made Easy.” COWAN+, 2019. Web.

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    “Experience Canvas: a Lean Approach: Atlassian Team Playbook.” Atlassian, 2019. Web.

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    Fuchs, Danny. “Measure What Matters: 5 Best Practices from Performance Management Leaders.” OpenGov, 8 Aug. 2018. Web.

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    Gottesdiener, Ellen. “Using the Product Canvas to Define Your Product: Getting Started.” EBG Consulting, 15 Jan. 2019. Web.

    Gottesdiener, Ellen. “Using the Product Canvas to Define Your Product's Core Requirements.” EBG Consulting, 4 Feb. 2019. Web.

    Gray, Mark Krishan. “Should I Use the Business Model Canvas or the Lean Canvas?” Blog, Medium.com, 2019. Web.

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    “What Is a Product Vision?” Aha!, 2019. Web.

    Supporting Research

    Transformation topics and supporting Info-Tech research to make the journey easier, with less rework.

    Supporting research and services

    Improving IT alignment

    Build a Business-Aligned IT Strategy

    Success depends on IT initiatives clearly aligned to business goals, IT excellence, and driving technology innovation.

    Includes a "Strategy on a page" template

    Make Your IT Governance Adaptable

    Governance isn't optional, so keep it simple and make it flexible.

    Create an IT View of the Service Catalog

    Unlock the full value of your service catalog with technical components.

    Application Portfolio Management Foundations

    Ensure your application portfolio delivers the best possible return on investment.

    Supporting research and services

    Shifting toward Agile DevOps

    Agile/DevOps Resource Center

    Tools and advice you need to be successful with Agile.

    Develop Your Agile Approach for a Successful Transformation

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

    Implement DevOps Practices That Work

    Streamline business value delivery through the strategic adoption of DevOps practices.

    Perform an Agile Skills Assessment

    Being Agile isn't about processes, it's about people.

    Define the Role of Project Management in Agile and Product-Centric Delivery

    Projects and products are not mutually exclusive.

    Supporting research and services

    Shifting toward product management

    Make the Case for Product Delivery

    Align your organization on the practices to deliver what matters most.

    Deliver on Your Digital Product Vision

    Build a product vision your organization can take from strategy through execution.

    Deliver Digital Products at Scale

    Deliver value at the scale of your organization through defining enterprise product families.

    Build a Better Product Owner

    Strengthen the product owner's role in your organization by focusing on core capabilities and proper alignment.

    Supporting research and services

    Improving value and delivery metrics

    Build a Value Measurement Framework

    Focus product delivery on business value-driven outcomes.

    Create a Holistic IT Dashboard

    Mature your IT department by measuring what matters.

    Select and Use SDLC Metrics Effectively

    Be careful what you ask for because you will probably get it.

    Reduce Time to Consensus With an Accelerated Business Case

    Expand on the financial model to give your initiative momentum.

    Supporting research and services

    Improving governance, prioritization, and value

    Make Your IT Governance Adaptable

    Governance isn't optional, so keep it simple and make it flexible.

    Maximize Business Value from IT Through Benefits Realization

    Embed benefits realization into your governance process to prioritize IT spending and confirm the value of IT.

    Drive Digital Transformation With Platform Strategies

    Innovate and transform your business models with digital platforms.

    Succeed With Digital Strategy Execution

    Building a digital strategy is only half the battle: create a systematic roadmap of technology initiatives to execute the strategy and drive digital transformation.

    Build a Value Measurement Framework

    Focus product delivery on business value-driven outcomes.

    Create a Holistic IT Dashboard

    Mature your IT department by measuring what matters.

    Supporting research and services

    Improving requirements management and quality assurance

    Requirements Gathering for Small Enterprises

    Right-size the guidelines of your requirements gathering process.

    Improve Requirements Gathering

    Back to basics: great products are built on great requirements.

    Build a Software Quality Assurance Program

    Build quality into every step of your SDLC.

    Automate Testing to Get More Done

    Drive software delivery throughput and quality confidence by extending your automation test coverage.

    Manage Your Technical Debt

    Make the case to manage technical debt in terms of business impact.

    Create a Business Process Management Strategy

    Avoid project failure by keeping the "B" in BPM.

    Build a Winning Business Process Automation Playbook

    Optimize and automate your business processes with a user-centric approach.

    Create a Winning BPI Playbook

    Don't waste your time focusing on the "as is." Focus on the improvements and the "to be."

    Supporting research and services

    Improving release management

    Optimize Applications Release Management

    Build trust by right-sizing your process using appropriate governance.

    Streamline Application Maintenance

    Effective maintenance ensures the long-term value of your applications.

    Streamline Application Management

    Move beyond maintenance to ensure exceptional value from your apps.

    Optimize Change Management

    Right-size your change management process.

    Manage Your Technical Debt

    Make the case to manage technical debt in terms of business impact.

    Improve Application Development Throughput

    Drive down your delivery time by eliminating development inefficiencies and bottlenecks while maintaining high quality.

    Supporting research and services

    Business relationship management

    Embed Business Relationship Management

    Leverage knowledge of the business to become a strategic IT partner.

    Improving security

    Build an Information Security Strategy

    Create value by aligning your strategy to business goals and business risks.

    Develop and Deploy Security Policies

    Enhance your overall security posture with a defensible and prescriptive policy suite.

    Simplify Identity and Access Management

    Leverage risk- and role-based access control to quantify and simplify the IAM process.

    Supporting research and services

    Improving and supporting business-managed applications

    Embrace Business-Managed Applications

    Empower the business to implement their own applications with a trusted business-IT relationship.

    Enhance Your Solution Architecture Practices

    Ensure your software systems solution is architected to reflect stakeholders’ short-and long-term needs.

    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.

    Build Your First RPA Bot

    Support RPA delivery with strong collaboration and management foundations.

    Automate Work Faster and More Easily With Robotic Process Automation

    Embrace the symbiotic relationship between the human and digital workforce.

    Supporting research and services

    Improving business intelligence, analytics, and reporting

    Modernize Data Architecture for Measurable Business Results

    Enable the business to achieve operational excellence, client intimacy, and product leadership with an innovative, Agile, and fit-for-purpose data architecture practice.

    Build a Reporting and Analytics Strategy

    Deliver actionable business insights by creating a business-aligned reporting and analytics strategy.

    Build Your Data Quality Program

    Quality data drives quality business decisions.

    Design Data-as-a-Service

    Journey to the data marketplace ecosystems.

    Build a Robust and Comprehensive Data Strategy

    Key to building and fostering a data-driven culture.

    Build an Application Integration Strategy

    Level the table before assembling the application integration puzzle or risk losing pieces.

    Appendix

    Pulse survey results

    Pulse survey (N=18): What are the key components of product/service ownership?

    Pulse survey results: What are the key components of product/service ownership? Table shows answer options and responses in percentage.

    Pulse Survey (N=18): What are the key individual skills for a product/service owner?

    What are the key individual skills for a product/service owner? Table shows answer options and responses in percentage

    Other choices entered by respondents:

    • Anticipating client needs, being able to support delivery in all phases of the product lifecycle, adaptability, and ensuring a healthy backlog (at least two sprints’ worth of work).
    • Requirements elicitation and prioritization.
    • The key skill is being product-focused to ensure it provides value for competitive advantage.

    Pulse Survey (N=18): What are three things an outstanding product/service owner does that an average one doesn’t?

    What are three things an outstanding product/service owner does that an average one doesn't? Table shows results.

    Operations management

    • Buy Link or Shortcode: {j2store}12|cart{/j2store}
    • Related Products: {j2store}12|crosssells{/j2store}
    • Up-Sell: {j2store}12|upsells{/j2store}
    • member rating overall impact (scale of 10): 10.0/10
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Infra and Operations
    • Parent Category Link: /infra-and-operations
    IT Operations is all about effectiveness. We make sure that you deliver reliable services to the clients and users within the company.

    Establish Data Governance

    • Buy Link or Shortcode: {j2store}123|cart{/j2store}
    • member rating overall impact (scale of 10): 9.3/10 Overall Impact
    • member rating average dollars saved: $48,494 Average $ Saved
    • member rating average days saved: 31 Average Days Saved
    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • Organizations are faced with challenges associated with changing data landscapes, evolving business models, industry disruptions, regulatory and compliance obligations, as well as changing and maturing user landscapes and demands for data.
    • Although the need for a data governance program is often evident, organizations often miss the mark.
    • Your data governance efforts should be directly aligned to delivering measurable business value by supporting key strategic initiatives, value streams, and underlying business capabilities.

    Our Advice

    Critical Insight

    • Your organization’s value streams and their associated business capabilities require effectively governed data. Without this, you may experience elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.
    • Ensure your data governance program delivers measurable business value by aligning the associated data governance initiatives with the business architecture.
    • Data governance must continuously align with the organization’s enterprise governance function. It should not be perceived as a pet project of IT, but rather as an enterprise-wide, business-driven initiative.

    Impact and Result

    Info-Tech’s approach to establishing and sustaining effective data governance is anchored in the strong alignment of organizational value streams and their business capabilities with key data governance dimensions and initiatives. Info-Tech's approach will help you:

    • Align your data governance with enterprise governance, business strategy, and the organizational value streams to ensure the program delivers measurable business value.
    • Understand your current data governance capabilities and build out a future state that is right-sized and relevant.
    • Define data governance leadership, accountability, and responsibility.
    • Ensure data governance is supported by an operating model that effectively manages change and communication and fosters a culture of data excellence.

    Establish Data Governance Research & Tools

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

    1. Data Governance Research – A step-by-step document to ensure that the people handling the data are involved in the decisions surrounding data usage, data quality, business processes, and change implementation.

    Data governance is a strategic program that will help your organization control data by managing the people, processes, and information technology needed to ensure that accurate and consistent data policies exist across varying lines of the business, enabling data-driven insight. This research will provide an overview of data governance and its importance to your organization, assist in making the case and securing buy-in for data governance, identify data governance best practices and the challenges associated with them, and provide guidance on how to implement data governance best practices for a successful launch.

    • Establish Data Governance – Phases 1-3

    2. Data Governance Planning and Roadmapping Workbook – A structured tool to assist with establishing effective data governance practices.

    This workbook will help your organization understand the business and user context by leveraging your business capability map and value streams, develop data use cases using Info-Tech's framework for building data use cases, and gauge the current state of your organization's data culture.

    • Data Governance Planning and Roadmapping Workbook

    3. Data Use Case Framework Template – An exemplar template to highlight and create relevant use cases around the organization’s data-related problems and opportunities.

    This business needs gathering activity will highlight and create relevant use cases around data-related problems or opportunities that are clear and contained and, if addressed, will deliver value to the organization. This template provides a framework for data requirements and a mapping methodology for creating use cases.

    • Data Use Case Framework Template

    4. Data Governance Initiative Planning and Roadmap Tool – A visual roadmapping tool to assist with establishing effective data governance practices.

    This tool will help your organization plan the sequence of activities, capture start dates and expected completion dates, and create a roadmap that can be effectively communicated to the organization.

    • Data Governance Initiative Planning and Roadmap Tool

    5. Business Data Catalog – A comprehensive template to help you to document the key data assets that are to be governed based on in-depth business unit interviews, data risk/value assessments, and a data flow diagram for the organization.

    Use this template to document information about key data assets such as data definition, source system, possible values, data sensitivity, data steward, and usage of the data.

    • Business Data Catalog

    6. Data Governance Program Charter Template – A program charter template to sell the importance of data governance to senior executives.

    This template will help get the backing required to get a data governance project rolling. The program charter will help communicate the project purpose, define the scope, and identify the project team, roles, and responsibilities.

    • Data Governance Program Charter Template

    7. Data Governance Policy

    This policy establishes uniform data governance standards and identifies the shared responsibilities for assuring the integrity of the data and that it efficiently and effectively serves the needs of your organization.

    • Data Governance Policy

    8. Data Governance Exemplar – An exemplar showing how you can plan and document your data governance outputs.

    Use this exemplar to understand how to establish data governance in your organization. Follow along with the sections of the blueprint Establish Data Governance and complete the document as you progress.

    • Data Governance Exemplar
    [infographic]

    Workshop: Establish Data Governance

    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 Establish Business Context and Value

    The Purpose

    Identify key business data assets that need to be governed.

    Create a unifying vision for the data governance program.

    Key Benefits Achieved

    Understand the value of data governance and how it can help the organization better leverage its data.

    Gain knowledge of how data governance can benefit both IT and the business.

    Activities

    1.1 Establish business context, value, and scope of data governance at the organization

    1.2 Introduction to Info-Tech’s data governance framework

    1.3 Discuss vision and mission for data governance

    1.4 Understand your business architecture, including your business capability map and value streams

    1.5 Build use cases aligned to core business capabilities

    Outputs

    Sample use cases (tied to the business capability map) and a repeatable use case framework

    Vision and mission for data governance

    2 Understand Current Data Governance Capabilities and Plot Target-State Levels

    The Purpose

    Assess which data contains value and/or risk and determine metrics that will determine how valuable the data is to the organization.

    Assess where the organization currently stands in data governance initiatives.

    Determine gaps between the current and future states of the data governance program.

    Key Benefits Achieved

    Gain a holistic understanding of organizational data and how it flows through business units and systems.

    Identify which data should fall under the governance umbrella.

    Determine a practical starting point for the program.

    Activities

    2.1 Understand your current data governance capabilities and maturity

    2.2 Set target-state data governance capabilities

    Outputs

    Current state of data governance maturity

    Definition of target state

    3 Build Data Domain to Data Governance Role Mapping

    The Purpose

    Determine strategic initiatives and create a roadmap outlining key steps required to get the organization to start enabling data-driven insights.

    Determine timing of the initiatives.

    Key Benefits Achieved

    Establish clear direction for the data governance program.

    Step-by-step outline of how to create effective data governance, with true business-IT collaboration.

    Activities

    3.1 Evaluate and prioritize performance gaps

    3.2 Develop and consolidate data governance target-state initiatives

    3.3 Define the role of data governance: data domain to data governance role mapping

    Outputs

    Target-state data governance initiatives

    Data domain to data governance role mapping

    4 Formulate a Plan to Get to Your Target State

    The Purpose

    Consolidate the roadmap and other strategies to determine the plan of action from Day One.

    Create the required policies, procedures, and positions for data governance to be sustainable and effective.

    Key Benefits Achieved

    Prioritized initiatives with dependencies mapped out.

    A clearly communicated plan for data governance that will have full business backing.

    Activities

    4.1 Identify and prioritize next steps

    4.2 Define roles and responsibilities and complete a high-level RACI

    4.3 Wrap-up and discuss next steps and post-workshop support

    Outputs

    Initialized roadmap

    Initialized RACI

    Further reading

    Establish Data Governance

    Deliver measurable business value.

    Executive Brief

    Analyst Perspective

    Establish a data governance program that brings value to your organization.

    Picture of analyst

    Data governance does not sit as an island on its own in the organization – it must align with and be driven by your enterprise governance. As you build out data governance in your organization, it’s important to keep in mind that this program is meant to be an enabling framework of oversight and accountabilities for managing, handling, and protecting your company’s data assets. It should never be perceived as bureaucratic or inhibiting to your data users. It should deliver agreed-upon models that are conducive to your organization’s operating culture, offering clarity on who can do what with the data and via what means. Data governance is the key enabler for bringing high-quality, trusted, secure, and discoverable data to the right users across your organization. Promote and drive the responsible and ethical use of data while helping to build and foster an organizational culture of data excellence.

    Crystal Singh

    Director, Research & Advisory, Data & Analytics Practice

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    The amount of data within organizations is growing at an exponential rate, creating a need to adopt a formal approach to governing data. However, many organizations remain uninformed on how to effectively govern their data. Comprehensive data governance should define leadership, accountability, and responsibility related to data use and handling and be supported by a well-oiled operating model and relevant policies and procedures. This will help ensure the right data gets to the right people at the right time, using the right mechanisms.

    Common Obstacles

    Organizations are faced with challenges associated with changing data landscapes, evolving business models, industry disruptions, regulatory and compliance obligations, and changing and maturing user landscape and demand for data. Although the need for a data governance program is often evident, organizations miss the mark when their data governance efforts are not directly aligned to delivering measurable business value. Initiatives should support key strategic initiatives, as well as value streams and their underlying business capabilities.

    Info-Tech’s Approach

    Info-Tech’s approach to establishing and sustaining effective data governance is anchored in the strong alignment of organizational value streams and their business capabilities with key data governance dimensions and initiatives. Organizations should:

    • Align their data governance with enterprise governance, business strategy and value streams to ensure the program delivers measurable business value.
    • Understand their current data governance capabilities so as to build out a future state that is right-sized and relevant.
    • Define data leadership, accountability, and responsibility. Support these with an operating model that effectively manages change and communication and fosters a culture of data excellence.

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face elevated operating costs, missed opportunities, eroded stakeholder satisfaction, and increased business risk.

    Your challenge

    This research is designed to help organizations build and sustain an effective data governance program.

    • Your organization has recognized the need to treat data as a corporate asset for generating business value and/or managing and mitigating risk.
    • This has brought data governance to the forefront and highlighted the need to build a performance-driven enterprise program for delivering quality, trusted, and readily consumable data to users.
    • An effective data governance program is one that defines leadership, accountability, and responsibility related to data use and handling. It’s supported by a well-oiled operating model and relevant policies and procedures, all of which help build and foster a culture of data excellence where the right users get access to the right data at the right time via the right mechanisms.

    As you embark on establishing data governance in your organization, it’s vital to ensure from the get-go that you define the drivers and business context for the program. Data governance should never be attempted without direction on how the program will yield measurable business value.

    “Data processing and cleanup can consume more than half of an analytics team’s time, including that of highly paid data scientists, which limits scalability and frustrates employees.” – Petzold, et al., 2020

    Image is a circle graph and 30% of it is coloured with the number 30% in the middle of the graph

    “The productivity of employees across the organization can suffer.” – Petzold, et al., 2020

    Respondents to McKinsey’s 2019 Global Data Transformation Survey reported that an average of 30% of their total enterprise time was spent on non-value-added tasks because of poor data quality and availability. – Petzold, et al., 2020

    Common obstacles

    Some of the barriers that make data governance difficult to address for many organizations include:

    • Gaps in communicating the strategic value of data and data governance to the organization. This is vital for securing senior leadership buy-in and support, which, in turn, is crucial for sustained success of the data governance program.
    • Misinterpretation or a lack of understanding about data governance, including what it means for the organization and the individual data user.
    • A perception that data governance is inhibiting or an added layer of bureaucracy or complication rather than an enabling and empowering framework for stakeholders in their use and handling of data.
    • Embarking on data governance without firmly substantiating and understanding the organizational drivers for doing so. How is data governance going to support the organization’s value streams and their various business capabilities?
    • Neglecting to define and measure success and performance. Just as in any other enterprise initiative, you have to be able to demonstrate an ROI for time, resources and funding. These metrics must demonstrate the measurable business value that data governance brings to the organization.
    • Failure to align data governance with enterprise governance.
    Image is a circle graph and 78% of it is coloured with the number 78% in the middle of the graph

    78% of companies (and 92% of top-tier companies) have a corporate initiative to become more data-driven. – Alation, 2020

    Image is a circle graph and 58% of it is coloured with the number 58% in the middle of the graph

    But despite these ambitions, there appears to be a “data culture disconnect” – 58% of leaders overestimate the current data culture of their enterprises, giving a grade higher than the one produced by the study. – Fregoni, 2020

    The strategic value of data

    Power intelligent and transformative organizational performance through leveraging data.

    Respond to industry disruptors

    Optimize the way you serve your stakeholders and customers

    Develop products and services to meet ever-evolving needs

    Manage operations and mitigate risk

    Harness the value of your data

    The journey to being data-driven

    The journey to declaring that you are a data-driven organization requires a pit stop at data enablement.

    The Data Economy

    Data Disengaged

    You have a low appetite for data and rarely use data for decision making.

    Data Enabled

    Technology, data architecture, and people and processes are optimized and supported by data governance.

    Data Driven

    You are differentiating and competing on data and analytics; described as a “data first” organization. You’re collaborating through data. Data is an asset.

    Data governance is essential for any organization that makes decisions about how it uses its data.

    Data governance is an enabling framework of decision rights, responsibilities, and accountabilities for data assets across the enterprise.

    Data governance is:

    • Executed according to agreed-upon models that describe who can take what actions with what information, when, and using what methods (Olavsrud, 2021).
    • True business-IT collaboration that will lead to increased consistency and confidence in data to support decision making. This, in turn, helps fuel innovation and growth.

    If done correctly, data governance is not:

    • An annoying, finger-waving roadblock in the way of getting things done.
    • Meant to solve all data-related business or IT problems in an organization.
    • An inhibitor or impediment to using and sharing data.

    Info-Tech’s Data Governance Framework

    An image of Info-Tech's Data Governance Framework

    Create impactful data governance by embedding it within enterprise governance

    A model is depicted to show the relationship between enterprise governance and data governance.

    Organizational drivers for data governance

    Data governance personas:

    Conformance: Establishing data governance to meet regulations and compliance requirements.

    Performance: Establishing data governance to fuel data-driven decision making for driving business value and managing and mitigating business risk.

    Two images are depicted that show the difference between conformance and performance.

    Data Governance is not a one-person show

    • Data governance needs a leader and a home. Define who is going to be leading, driving, and steering data governance in your organization.
    • Senior executive leaders play a crucial role in championing and bringing visibility to the value of data and data governance. This is vital for building and fostering a culture of data excellence.
    • Effective data governance comes with business and IT alignment, collaboration, and formally defined roles around data leadership, ownership, and stewardship.
    Four circles are depicted. There is one person in the circle on the left and is labelled: Data Governance Leadership. The circle beside it has two people in it and labelled: Organizational Champions. The circle beside it has three people in it and labelled: Data Owners, Stewards & Custodians. The last circle has four people in it and labelled: The Organization & Data Storytellers.

    Traditional data governance organizational structure

    A traditional structure includes committees and roles that span across strategic, tactical, and operational duties. There is no one-size-fits-all data governance structure. However, most organizations follow a similar pattern when establishing committees, councils, and cross-functional groups. Most organizations strive to identify roles and responsibilities at a strategic and operational level. Several factors will influence the structure of the program, such as the focus of the data governance project and the maturity and size of the organization.

    A triangular model is depicted and is split into three tiers to show the traditional data governance organizational structure.

    A healthy data culture is key to amplifying the power of your data.

    “Albert Einstein is said to have remarked, ‘The world cannot be changed without changing our thinking.’ What is clear is that the greatest barrier to data success today is business culture, not lagging technology. “– Randy Bean, 2020

    What does it look like?

    • Everybody knows the data.
    • Everybody trusts the data.
    • Everybody talks about the data.

    “It is not enough for companies to embrace modern data architectures, agile methodologies, and integrated business-data teams, or to establish centers of excellence to accelerate data initiatives, when only about 1 in 4 executives reported that their organization has successfully forged a data culture.”– Randy Bean, 2020

    Data literacy is an essential part of a data-driven culture

    • In a data-driven culture, decisions are made based on data evidence, not on gut instinct.
    • Data often has untapped potential. A data-driven culture builds tools and skills, builds users’ trust in the condition and sources of data, and raises the data skills and understanding among their people on the front lines.
    • Building a data culture takes an ongoing investment of time, effort, and money. This investment will not achieve the transformation you want without data literacy at the grassroots level.

    Data-driven culture = “data matters to our company”

    Despite investments in data initiative, organizations are carrying high levels of data debt

    Data debt is “the accumulated cost that is associated with the sub-optimal governance of data assets in an enterprise, like technical debt.”

    Data debt is a problem for 78% of organizations.

    40% of organizations say individuals within the business do not trust data insights.

    66% of organizations say a backlog of data debt is impacting new data management initiatives.

    33% of organizations are not able to get value from a new system or technology investment.

    30% of organizations are unable to become data-driven.

    Source: Experian, 2020

    Absent or sub-optimal data governance leads to data debt

    Only 3% of companies’ data meets basic quality standards. (Source: Nagle, et al., 2017)

    Organizations suspect 28% of their customer and prospect data is inaccurate in some way. (Source: Experian, 2020)

    Only 51% of organizations consider the current state of their CRM or ERP data to be clean, allowing them to fully leverage it. (Source: Experian, 2020)

    35% of organizations say they’re not able to see a ROI for data management initiatives. (Source: Experian, 2020)

    Embrace the technology

    Make the available data governance tools and technology work for you:

    • Data catalog
    • Business data glossary
    • Data lineage
    • Metadata management

    While data governance tools and technologies are no panacea, leverage their automated and AI-enabled capabilities to augment your data governance program.

    Logos of data governance tools and technology.

    Measure success to demonstrate tangible business value

    Put data governance into the context of the business:

    • Tie the value of data governance and its initiatives back to the business capabilities that are enabled.
    • Leverage the KPIs of those business capabilities to demonstrate tangible and measurable value. Use terms and language that will resonate with senior leadership.

    Don’t let measurement be an afterthought:

    Start substantiating early on how you are going to measure success as your data governance program evolves.

    Build a right-sized roadmap

    Formulate an actionable roadmap that is right-sized to deliver value in your organization.

    Key considerations:

    • When building your data governance roadmap, ensure you do so through an enterprise lens. Be cognizant of other initiatives that might be coming down the pipeline that may require you to align your data governance milestones accordingly.
    • Apart from doing your planning with consideration for other big projects or launches that might be in-flight and require the time and attention of your data governance partners, also be mindful of the more routine yet still demanding initiatives.
    • When doing your roadmapping, consider factors like the organization’s fiscal cycle, typical or potential year-end demands, and monthly/quarterly reporting periods and audits. Initiatives such as these are likely to monopolize the time and focus of personnel key to delivering on your data governance milestones.

    Sample milestones:

    Data Governance Leadership & Org Structure Definition

    Define the home for data governance and other key roles around ownership and stewardship, as approved by senior leadership.

    Data Governance Charter and Policies

    Create a charter for your program and build/refresh associated policies.

    Data Culture Diagnostic

    Understand the organization’s current data culture, perception of data, value of data, and knowledge gaps.

    Use Case Build and Prioritization

    Build a use case that is tied to business capabilities. Prioritize accordingly.

    Business Data Glossary

    Build and/or refresh the business’ glossary for addressing data definitions and standardization issues.

    Tools & Technology

    Explore the tools and technology offering in the data governance space that would serve as an enabler to the program. (e.g. RFI, RFP).

    Key takeaways for effective business-driven data governance

    Data governance leadership and sponsorship is key.

    Ensure strategic business alignment.

    Build and foster a culture of data excellence.

    Evolve along the data journey.

    Make data governance an enabler, not a hindrance.

    Insight summary

    Overarching insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face the impact of elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.

    Insight 1

    Data governance should not sit as an island in your organization. It must continuously align with the organization’s enterprise governance function. It shouldn’t be perceived as a pet project of IT, but rather as an enterprise-wide, business-driven initiative.

    Insight 2

    Ensure your data governance program delivers measurable business value by aligning the associated data governance initiatives with the business architecture. Leverage the measures of success or KPIs of the underlying business capabilities to demonstrate the value data governance has yielded for the organization.

    Insight 3

    Data governance remains the foundation of all forms of reporting and analytics. Advanced capabilities such as AI and machine learning require effectively governed data to fuel their success.

    Tactical insight

    Tailor your data literacy program to meet your organization’s needs, filling your range of knowledge gaps and catering to your different levels of stakeholders. When it comes to rolling out a data literacy program, there is no one-size-fits-all solution. Your data literacy program is intended to fill the knowledge gaps about data, as they exist in your organization. It should be targeted across the board – from your executive leadership and management through to the subject matter experts across different lines of the business in your organization.

    Info-Tech’s methodology for establishing data governance

    1. Build Business and User Context 2. Understand Your Current Data Governance Capabilities 3. Build a Target State Roadmap and Plan
    Phase Steps
    1. Substantiate Business Drivers
    2. Build High-Value Use Cases for Data Governance
    1. Understand the Key Components of Data Governance
    2. Gauge Your Organization’s Current Data Culture
    1. Formulate an Actionable Roadmap and Right-Sized Plan
    Phase Outcomes
    • Your organization’s business capabilities and value streams
    • A business capability map for your organization
    • Categorization of your organization’s key capabilities
    • A strategy map tied to data governance
    • High-value use cases for data governance
    • An understanding of the core components of an effective data governance program
    • An understanding your organization’s current data culture
    • A data governance roadmap and target-state plan comprising of prioritized initiatives

    Blueprint deliverables

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

    Screenshot of Info-Tech's Data Governance Planning and Roadmapping Workbook data-verified=

    Data Governance Planning and Roadmapping Workbook

    Use the Data Governance Planning and Roadmapping Workbook as you plan, build, roll-out, and scale data governance in your organization.

    Screenshot of Info-Tech's Data Use Case Framework Template

    Data Use Case Framework Template

    This template takes you through a business needs gathering activity to highlight and create relevant use cases around the organization’s data-related problems and opportunities.

    Screenshot of Info-Tech's Business Data Glossary data-verified=

    Business Data Glossary

    Use this template to document the key data assets that are to be governed and create a data flow diagram for your organization.

    Screenshot of Info-Tech's Data Culture Diagnostic and Scorecard data-verified=

    Data Culture Diagnostic and Scorecard

    Leverage Info-Tech’s Data Culture Diagnostic to understand how your organization scores across 10 areas relating to data culture.

    Key deliverable:

    Data Governance Planning and Roadmapping Workbook

    Measure the value of this blueprint

    Leverage this blueprint’s approach to ensure your data governance initiatives align and support your key value streams and their business capabilities.

    • Aligning your data governance program and its initiatives to your organization’s business capabilities is vital for tracing and demonstrating measurable business value for the program.
    • This alignment of data governance with value streams and business capabilities enables you to use business-defined KPIs and demonstrate tangible value.
    Screenshot from this blueprint on the Measurable Business Value

    In phases 1 and 2 of this blueprint, we will help you establish the business context, define your business drivers and KPIs, and understand your current data governance capabilities and strengths.

    In phase 3, we will help you develop a plan and a roadmap for addressing any gaps and improving the relevant data governance capabilities so that data is well positioned to deliver on those defined business metrics.

    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 keeps 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.

    Establish Data Governance project overview

    Contact your account representative for more information. workshops@infotech.com 1-888-670-8889

    1. Build Business and User context2. Understand Your Current Data Governance Capabilities3. Build a Target State Roadmap and Plan
    Best-Practice Toolkit
    1. Substantiate Business Drivers
    2. Build High-Value Use Cases for Data Governance
    1. Understand the Key Components of Data Governance
    2. Gauge Your Organization’s Current Data Culture
    1. Formulate an Actionable Roadmap and Right-Sized Plan
    Guided Implementation
    • Call 1
    • Call 2
    • Call 3
    • Call 4
    • Call 5
    • Call 6
    • Call 7
    • Call 8
    • Call 9
    Phase Outcomes
    • Your organization’s business capabilities and value streams
    • A business capability map for your organization
    • Categorization of your organization’s key capabilities
    • A strategy map tied to data governance
    • High-value use cases for data governance
    • An understanding of the core components of an effective data governance program
    • An understanding your organization’s current data culture
    • A data governance roadmap and target-state plan comprising of prioritized initiatives

    Guided Implementation

    What does a typical GI on this topic look like?

    An outline of what guided implementation looks 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 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
    Establish Business Context and Value Understand Current Data Governance Capabilities and Plot Target-State Levels Build Data Domain to Data Governance Role Mapping Formulate a Plan to Get to Your Target State
    Activities
    • Establish business context, value, and scope of data governance at the organization
    • Introduction to Info-Tech’s data governance framework
    • Discuss vision and mission for data governance
    • Understand your business architecture, including your business capability map and value streams
    • Build use cases aligned to core business capabilities
    • Understand your current data governance capabilities and maturity
    • Set target state data governance capabilities
    • Evaluate and prioritize performance gaps
    • Develop and consolidate data governance target-state initiatives
    • Define the role of data governance: data domain to data governance role mapping
    • Identify and prioritize next steps
    • Define roles and responsibilities and complete a high-level RACI
    • Wrap-up and discuss next steps and post-workshop support
    Deliverables
    1. Sample use cases (tied to the business capability map) and a repeatable use case framework
    2. Vision and mission for data governance
    1. Current state of data governance maturity
    2. Definition of target state
    1. Target-state data governance initiatives
    2. Data domain to data governance role mapping
    1. Initialized roadmap
    2. Initialized RACI

    Phase 1

    Build Business and User Context

    Three circles are in the image that list the three phases and the main steps. Phase 1 is highlighted.

    “When business users are invited to participate in the conversation around data with data users and IT, it adds a fundamental dimension — business context. Without a real understanding of how data ties back to the business, the value of analysis and insights can get lost.” – Jason Lim, Alation

    This phase will guide you through the following activities:

    • Identify Your Business Capabilities
    • Define your Organization’s Key Business Capabilities
    • Develop a Strategy Map that Aligns Business Capabilities to Your Strategic Focus

    This phase involves the following participants:

    • Data Governance Leader/Data Leader (CDO)
    • Senior Business Leaders
    • Business SMEs
    • Data Leadership, Data Owners, Data Stewards and Custodians

    Step 1.1

    Substantiate Business Drivers

    Activities

    1.1.1 Identify Your Business Capabilities

    1.1.2 Categorize Your Organization’s Key Business Capabilities

    1.1.3 Develop a Strategy Map Tied to Data Governance

    This step will guide you through the following activities:

    • Leverage your organization’s existing business capability map or initiate the formulation of a business capability map, guided by info-Tech’s approach
    • Determine which business capabilities are considered high priority by your organization
    • Map your organization’s strategic objectives to value streams and capabilities to communicate how objectives are realized with the support of data

    Outcomes of this step

    • A foundation for data governance initiative planning that’s aligned with the organization’s business architecture: value streams, business capability map, and strategy map

    Info-Tech Insight

    Gaining a sound understanding of your business architecture (value streams and business capabilities) is a critical foundation for establishing and sustaining a data governance program that delivers measurable business value.

    1.1.1 Identify Your Business Capabilities

    Confirm your organization's existing business capability map or initiate the formulation of a business capability map:

    • If you have an existing business capability map, meet with the relevant business owners/stakeholders to confirm that the content is accurate and up to date. Confirm the value streams (how your organization creates and captures value) and their business capabilities are reflective of the organization’s current business environment.
    • If you do not have an existing business capability map, follow this activity to initiate the formulation of a map (value streams and related business capabilities):
      1. Define the organization’s value streams. Meet with senior leadership and other key business stakeholders to define how your organization creates and captures value.
      2. Define the relevant business capabilities. Meet with senior leadership and other key business stakeholders to define the business capabilities.

    Note: A business capability defines what a business does to enable value creation. Business capabilities are business terms defined using descriptive nouns such as “Marketing” or “Research and Development.” They represent stable business functions, are unique and independent of each other, and typically will have a defined business outcome.

    Input

    • List of confirmed value streams and their related business capabilities

    Output

    • Business capability map with value streams for your organization

    Materials

    • Your existing business capability map or the template provided in the Data Governance Planning and Roadmapping Workbook accompanying this blueprint

    Participants

    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data Governance Working Group

    For more information, refer to Info-Tech’s Document Your Business Architecture.

    Define or validate the organization’s value streams

    Value streams connect business goals to the organization’s value realization activities. These value realization activities, in turn, depend on data.

    If the organization does not have a business architecture function to conduct and guide Activity 1.1.1, you can leverage the following approach:

    • Meet with key stakeholders regarding this topic, then discuss and document your findings.
    • When trying to identify the right stakeholders, consider: Who are the decision makers and key influencers? Who will impact this piece of business architecture related work? Who has the relevant skills, competencies, experience, and knowledge about the organization?
    • Engage with these stakeholders to define and validate how the organization creates value.
    • Consider:
      • Who are your main stakeholders? This will depend on the industry in which you operate. For example, customers, residents, citizens, constituents, students, patients.
      • What are your stakeholders looking to accomplish?
      • How does your organization’s products and/or services help them accomplish that?
      • What are the benefits your organization delivers to them and how does your organization deliver those benefits?
      • How do your stakeholders receive those benefits?

    Align data governance to the organization's value realization activities.

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face the possibilities of elevated operational costs, missed opportunities, eroded stakeholder satisfaction, negative impact to reputation and brand, and/or increased exposure to business risk.

    Example of value streams – Retail Banking

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Retail Banking

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for retail banking.

    For this value stream, download Info-Tech’s Info-Tech’s Industry Reference Architecture for Retail Banking.

    Example of value streams – Higher Education

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Higher Education

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for higher education

    For this value stream, download Info-Tech’s Industry Reference Architecture for Higher Education.

    Example of value streams – Local Government

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Local Government

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for local government

    For this value stream, download Info-Tech’s Industry Reference Architecture for Local Government.

    Example of value streams – Manufacturing

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Manufacturing

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for manufacturing

    For this value stream, download Info-Tech’s Industry Reference Architecture for Manufacturing.

    Example of value streams – Retail

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Retail

    Model example of value streams for retail

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    For this value stream, download Info-Tech’s Industry Reference Architecture for Retail.

    Define the organization’s business capabilities in a business capability map

    A business capability defines what a business does to enable value creation. Business capabilities represent stable business functions and typically will have a defined business outcome.

    Business capabilities can be thought of as business terms defined using descriptive nouns such as “Marketing” or “Research and Development.”

    If your organization doesn’t already have a business capability map, you can leverage the following approach to build one. This initiative requires a good understanding of the business. By working with the right stakeholders, you can develop a business capability map that speaks a common language and accurately depicts your business.

    Working with the stakeholders as described above:

    • Analyze the value streams to identify and describe the organization’s capabilities that support them.
    • Consider: What is the objective of your value stream? (This can highlight which capabilities support which value stream.)
    • As you initiate your engagement with your stakeholders, don’t start a blank page. Leverage the examples on the next slides as a starting point for your business capability map.
    • When using these examples, consider: What are the activities that make up your particular business? Keep the ones that apply to your organization, remove the ones that don’t, and add any needed.

    Align data governance to the organization's value realization activities.

    Info-Tech Insight

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    For more information, refer to Info-Tech’s Document Your Business Architecture.

    Example business capability map – Retail Banking

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Retail Banking

    Model example business capability map for retail banking

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Retail Banking.

    Example business capability map – Higher Education

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Higher Education

    Model example business capability map for higher education

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Higher Education.

    Example business capability map – Local Government

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Local Government

    Model example business capability map for local government

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Local Government.

    Example business capability map – Manufacturing

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Manufacturing

    Model example business capability map for manufacturing

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Manufacturing.

    Example business capability map - Retail

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Retail

    Model example business capability map for retail

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Retail.

    1.1.2 Categorize Your Organization’s Key Capabilities

    Determine which capabilities are considered high priority in your organization.

    1. Categorize or heatmap the organization’s key capabilities. Consult with senior and other key business stakeholders to categorize and prioritize the business’ capabilities. This will aid in ensuring your data governance future state planning is aligned with the mandate of the business. One approach to prioritizing capabilities with business stakeholders is to examine them through the lens of cost advantage creators, competitive advantage differentiators, and/or by high value/high risk.
    2. Identify cost advantage creators. Focus on capabilities that drive a cost advantage for your organization. Highlight these capabilities and prioritize programs that support them.
    3. Identify competitive advantage differentiators. Focus on capabilities that give your organization an edge over rivals or other players in your industry.

    This categorization/prioritization exercise helps highlight prime areas of opportunity for building use cases, determining prioritization, and the overall optimization of data and data governance.

    Input

    • Strategic insight from senior business stakeholders on the business capabilities that drive value for the organization

    Output

    • Business capabilities categorized and prioritized (e.g. cost advantage creators, competitive advantage differentiators, high value/high risk)

    Materials

    • Your existing business capability map or the business capability map derived in the previous activity

    Participants

    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data Governance Working Group

    For more information, refer to Info-Tech’s Document Your Business Architecture.

    Example of business capabilities categorization or heatmapping – Retail

    This exercise is useful in ensuring the data governance program is focused and aligned to support the priorities and direction of the business.

    • Depending on the mandate from the business, priority may be on developing cost advantage. Hence the capabilities that deliver efficiency gains are the ones considered to be cost advantage creators.
    • The business’ priority may be on maintaining or gaining a competitive advantage over its industry counterparts. Differentiation might be achieved in delivering unique or enhanced products, services, and/or experiences, and the focus will tend to be on the capabilities that are more end-stakeholder-facing (e.g. customer-, student-, patient,- and/or constituent-facing). These are the organization’s competitive advantage creators.

    Example: Retail

    Example of business capabilities categorization or heatmapping – Retail

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Retail.

    1.1.3 Develop a Strategy Map Tied to Data Governance

    Identify the strategic objectives for the business. Knowing the key strategic objectives will drive business-data governance alignment. It’s important to make sure the right strategic objectives of the organization have been identified and are well understood.

    1. Meet with senior business leaders and other relevant stakeholders to help identify and document the key strategic objectives for the business.
    2. Leverage their knowledge of the organization’s business strategy and strategic priorities to visually represent how these map to value streams, business capabilities, and, ultimately, to data and data governance needs and initiatives. Tip: Your map is one way to visually communicate and link the business strategy to other levels of the organization.
    3. Confirm the strategy mapping with other relevant stakeholders.

    Guide to creating your map: Starting with strategic objectives, map the value streams that will ultimately drive them. Next, link the key capabilities that enable each value stream. Then map the data and data governance to initiatives that support those capabilities. This is one approach to help you prioritize the data initiatives that deliver the most value to the organization.

    Input

    • Strategic objectives as outlined by the organization’s business strategy and confirmed by senior leaders

    Output

    • A strategy map that maps your organizational strategic objectives to value streams, business capabilities, and, ultimately, to data program

    Materials

    Participants

    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data Governance Working Group

    Download Info-Tech’s Data Governance Planning and Roadmapping Workbook

    Example of a strategy map tied to data governance

    • Strategic objectives are the outcomes that the organization is looking to achieve.
    • Value streams enable an organization to create and capture value in the market through interconnected activities that support strategic objectives.
    • Business capabilities define what a business does to enable value creation in value streams.
    • Data capabilities and initiatives are descriptions of action items on the data and data governance roadmap and which will enable one or multiple business capabilities in its desired target state.

    Info-Tech Tip:

    Start with the strategic objectives, then map the value streams that will ultimately drive them. Next, link the key capabilities that enable each value stream. Then map the data and data governance initiatives that support those capabilities. This process will help you prioritize the data initiatives that deliver the most value to the organization.

    Example: Retail

    Example of a strategy map tied to data governance for retail

    For this strategy map, download Info-Tech’s Industry Reference Architecture for Retail.

    Step 1.2

    Build High-Value Use Cases for Data Governance

    Activities

    1.2.1 Build High-Value Use Cases

    This step will guide you through the following activities:

    • Leveraging your categorized business capability map to conduct deep-dive sessions with key business stakeholders for creating high-value uses cases
    • Discussing current challenges, risks, and opportunities associated with the use of data across the lines of business
    • Exploring which other business capabilities, stakeholder groups, and business units will be impacted

    Outcomes of this step

    • Relevant use cases that articulate the data-related challenges, needs, or opportunities that are clear and contained and, if addressed ,will deliver value to the organization

    Info-Tech Tip

    One of the most important aspects when building use cases is to ensure you include KPIs or measures of success. You have to be able to demonstrate how the use case ties back to the organizational priorities or delivers measurable business value. Leverage the KPIs and success factors of the business capabilities tied to each particular use case.

    1.2.1 Build High-Value Use Cases

    This business needs-gathering activity will highlight and create relevant use cases around data-related problems or opportunities that are clear and contained and, if addressed, will deliver value to the organization.

    1. Bring together key business stakeholders (data owner, stewards, SMEs) from a particular line of business as well as the relevant data custodian(s) to build cases for their units. Leverage the business capability map you created for facilitating this act.
    2. Leverage Info-Tech’s framework for data requirements and methodology for creating use cases, as outlined in the Data Use Case Framework Template and seen on the next slide.
    3. Have the stakeholders move through each breakout session outlined in the Use Case Worksheet. Use flip charts or a whiteboard to brainstorm and document their thoughts.
    4. Debrief and document results in the Data Use Case Framework Template
    5. Repeat this exercise with as many lines of the business as possible, leveraging your business capability map to guide your progress and align with business value.

    Tip: Don’t conclude these use case discussions without substantiating what measures of success will be used to demonstrate the business value of the effort to produce the desired future state, as relevant to each particular use case.

    Input

    • Value streams and business capabilities as defined by business leaders
    • Business stakeholders’ subject area expertise
    • Data custodian systems, integration, and data knowledge

    Output

    • Use cases that articulate data-related challenges, needs or opportunities that are tied to defined business capabilities and hence if addressed will deliver measurable value to the organization.

    Materials

    • Your business capability map from activity 1.1.1
    • Info-Tech’s Data Use Case Framework Template
    • Whiteboard or flip charts (or shared screen if working remotely)
    • Markers/pens

    Participants

    • Key business stakeholders
    • Data stewards and business SMEs
    • Data custodians
    • Data Governance Working Group

    Download Info-Tech’s Data Use Case Framework Template

    Info-Tech’s Framework for Building Use Cases

    Objective: This business needs-gathering activity will highlight and create relevant use cases around data-related problems or opportunities that are clear and contained and, if addressed, will deliver value to the organization.

    Leveraging your business capability map, build use cases that align with the organization’s key business capabilities.

    Consider:

    • Is the business capability a cost advantage creator or an industry differentiator?
    • Is the business capability currently underserved by data?
    • Does this need to be addressed? If so, is this risk- or value-driven?

    Info-Tech’s Data Requirements and Mapping Methodology for Creating Use Cases

    1. What business capability (or capabilities) is this use case tied to for your business area(s)?
    2. What are your data-related challenges in performing this today?
    3. What are the steps in this process/activity today?
    4. What are the applications/systems used at each step today?
    5. What data domains are involved, created, used, and/or transformed at each step today?
    6. What does an ideal or improved state look like?
    7. What other business units, business capabilities, activities, and/or processes will be impacted or improved if this issue was solved?
    8. Who are the stakeholders impacted by these changes? Who needs to be consulted?
    9. What are the risks to the organization (business capability, revenue, reputation, customer loyalty, etc.) if this is not addressed?
    10. What compliance, regulatory, and/or policy concerns do we need to consider in any solution?
    11. What measures of success or change should we use to prove the value of the effort (such as KPIs, ROI)? What is the measurable business value of doing this?

    The resulting use cases are to be prioritized and leveraged for informing the business case and the data governance capabilities optimization plan.

    Taken from Info-Tech’s Data Use Case Framework Template

    Phase 2

    Understand Your Current Data Governance Capabilities

    Three circles are in the image that list the three phases and the main steps. Phase 2 is highlighted.

    This phase will guide you through the following activities:

    • Understand the Key Components of Data Governance
    • Gauge Your Organization’s Current Data Culture

    This phase involves the following participants:

    • Data Leadership
    • Data Ownership & Stewardship
    • Policies & Procedures
    • Data Literacy & Culture
    • Operating Model
    • Data Management
    • Data Privacy & Security
    • Enterprise Projects & Services

    Step 2.1

    Understand the Key Components of Data Governance

    This step will guide you through the following activities:

    • Understanding the core components of an effective data governance program and determining your organization’s current capabilities in these areas:
      • Data Leadership
      • Data Ownership & Stewardship
      • Policies & Procedures
      • Data Literacy & Culture
      • Operating Model
      • Data Management
      • Data Privacy & Security
      • Enterprise Projects & Services

    Outcomes of this step

    • An understanding the core components of an effective data governance program
    • An understanding your organization’s current data governance capabilities

    Review: Info-Tech’s Data Governance Framework

    An image of Info-Tech's Data Governance Framework

    Key components of data governance

    A well-defined data governance program will deliver:

    • Defined accountability and responsibility for data.
    • Improved knowledge and common understanding of the organization’s data assets.
    • Elevated trust and confidence in traceable data.
    • Improved data ROI and reduced data debt.
    • An enabling framework for supporting the ethical use and handling of data.
    • A foundation for building and fostering a data-driven and data-literate organizational culture.

    The key components of establishing sustainable enterprise data governance, taken from Info-Tech’s Data Governance Framework:

    • Data Leadership
    • Data Ownership & Stewardship
    • Operating Model
    • Policies & Procedures
    • Data Literacy & Culture
    • Data Management
    • Data Privacy & Security
    • Enterprise Projects & Services

    Data Leadership

    • Data governance needs a dedicated head or leader to steer the organization’s data governance program.
    • For organizations that do have a chief data officer (CDO), their office is the ideal and effective home for data governance.
    • Heads of data governance also have titles such as director of data governance, director of data quality, and director of analytics.
    • The head of your data governance program works with all stakeholders and partners to ensure there is continuous enterprise governance alignment and oversight and to drive the program’s direction.
    • While key stakeholders from the business and IT will play vital data governance roles, the head of data governance steers the various components, stakeholders, and initiatives, and provides oversight of the overall program.
    • Vital data governance roles include: data owners, data stewards, data custodians, data governance steering committee (or your organization’s equivalent), and any data governance working group(s).

    The role of the CDO: the voice of data

    The office of the chief data officer (CDO):

    • Has a cross-organizational vision and strategy for data.
    • Owns and drives the data strategy; ensures it supports the overall organizational strategic direction and business goals.
    • Leads the organizational data initiatives, including data governance
    • Is accountable for the policy, strategy, data standards, and data literacy necessary for the organization to operate effectively.
    • Educates users and leaders about what it means to be “data-driven.”
    • Builds and fosters a culture of data excellence.

    “Compared to most of their C-suite colleagues, the CDO is faced with a unique set of problems. The role is still being defined. The chief data officer is bringing a new dimension and focus to the organization: ‘data.’ ”

    – Carruthers and Jackson, 2020

    Who does the CDO report to?

    Example reporting structure.
    • The CDO should be a true C- level executive.
    • Where the organization places the CDO role in the structure sends an important signal to the business about how much it values data.

    “The title matters. In my opinion, you can’t have a CDO without executive authority. Otherwise no one will listen.”

    – Anonymous European CDO

    “The reporting structure depends on who’s the ‘glue’ that ties together all these uniquely skilled individuals.”

    – John Kemp, Senior Director, Executive Services, Info-Tech Research Group

    Data Ownership & Stewardship

    Who are best suited to be data owners?

    • Wherever they may sit in your organization, data owners will typically have the highest stake in that data.
    • Data owners need to be suitably senior and have the necessary decision-making power.
    • They have the highest interest in the related business data domain, whether they are the head of a business unit or the head of a line of business that produces data or consumes data (or both).
    • If they are neither of these, it’s unlikely they will have the interest in the data (in terms of its quality, protection, ethical use, and handling, for instance) necessary to undertake and adopt the role effectively.

    Data owners are typically senior business leaders with the following characteristics:

    • Positioned to accept accountability for their data domain.
    • Hold authority and influence to affect change, including across business processes and systems, needed to improve data quality, use, handling, integration, etc.
    • Have access to a budget and resources for data initiatives such as resolving data quality issues, data cleansing initiatives, business data catalog build, related tools and technology, policy management, etc.
    • Hold the influence needed to drive change in behavior and culture.
    • Act as ambassadors of data and its value as an organizational strategic asset.

    Right-size your data governance organizational structure

    • Most organizations strive to identify roles and responsibilities at a strategic and operational level. Several factors will influence the structure of the program such as the focus of the data governance project as well as the maturity and size of the organization.
    • Your data governance structure has to work for your organization, and it has to evolve as the organization evolves.
    • Formulate your blend of data governance roles, committees, councils, and cross-functional groups, that make sense for your organization.
    • Your data governance organizational structure should not add complexity or bureaucracy to your organization’s data landscape; it should support and enable your principle of treating data as an asset.

    There is no one-size-fits-all data governance organizational structure.

    Example of a Data Governance Organizational Structure

    Critical roles and responsibilities for data governance

    Data Governance Working Groups

    Data governance working groups:

    • Are cross-functional teams
    • Deliver on data governance projects, initiatives, and ad hoc review committees.

    Data Stewards

    Traditionally, data stewards:

    • Serve on an operational level addressing issues related to adherence to standards/procedures, monitoring data quality, raising issues identified, etc.
    • Are responsible for managing access, quality, escalating issues, etc.

    Data Custodians

    • Traditionally, data custodians:
    • Serve on an operational level addressing issues related to data and database administration.
    • Support the management of access, data quality, escalating issues, etc.
    • Are SMEs from IT and database administration.

    Example: Business capabilities to data owner and data stewards mapping for a selected data domain

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.

    Enabling business capabilities with data governance role definitions

    Example: Business capabilities to data owner and data stewards mapping for a selected data domain

    Operating Model

    Your operating model is the key to designing and operationalizing a form of data governance that delivers measurable business value to your organization.

    “Generate excitement for data: When people are excited and committed to the vision of data enablement, they’re more likely to help ensure that data is high quality and safe.” – Petzold, et al., 2020

    Operating Model

    Defining your data governance operating model will help create a well-oiled program that sustainably delivers value to the organization and manages risks while building and fostering a culture of data excellence along the way. Some organizations are able to establish a formal data governance office, whether independent or attached to the office of the chief data officer. Regardless of how you are organized, data governance requires a home, a leader, and an operating model to ensure its sustainability and evolution.

    Examples of focus areas for your operating model:

    • Delivery: While there are core tenets to every data governance program, there is a level of variability in the implementation of data governance programs across organizations, sectors, and industries. Every organization has its own particular drivers and mandates, so the level and rigor applied will also vary.
    • The key is to determine what style will work best in your organization, taking into consideration your organizational culture, executive leadership support (present and ongoing), catalysts such as other enterprise-wide transformative and modernization initiatives, and/or regulatory and compliances drivers.

    • Communication: Communication is vital across all levels and stakeholder groups. For instance, there needs to be communication from the data governance office up to senior leadership, as well as communication within the data governance organization, which is typically made up of the data governance steering committee, data governance council, executive sponsor/champion, data stewards, and data custodians and working groups.
    • Furthermore, communication with the wider organization of data producers, users, and consumers is one of the core elements of the overall data governance communications plan.

    Communication is vital for ensuring acceptance of new processes, rules, guidelines, and technologies by all data producers and users as well as for sharing success stories of the program.

    Operating Model

    Tie the value of data governance and its initiatives back to the business capabilities that are enabled.

    “Leading organizations invest in change management to build data supporters and convert the skeptics. This can be the most difficult part of the program, as it requires motivating employees to use data and encouraging producers to share it (and ideally improve its quality at the source)[.]” – Petzold, et al., 2020

    Operating Model

    Examples of focus areas for your operating model (continued):

    • Change management and issue resolution: Data governance initiatives will very likely bring about a level of organizational disruption, with governance recommendations and future state requiring potentially significant business change. This may include a redesign of a substantial number of data processes affecting various business units, which will require tweaking the organization’s culture, thought processes, and procedures surrounding its data.
    • Preparing people for change well in advance will allow them to take the steps necessary to adapt and reduce potential confrontation. By planning for and efficiently communicating any changes that a data governance initiative may bring, many initial issues can be resolved from the outset.

      Attempting to implement change without an effective communications plan can result in disagreements over data control and stalemates between stakeholder units. The recommendations of the governance group must reflect the needs of all stakeholders or there will be pushback.

    • Performance measuring, monitoring and reporting: Measuring and reporting on performance, successes, and realization of tangible business value are a must for sustaining, growing, and scaling your data governance program.
    • Aligning your data governance to the organization's value realization activities enables you to leverage the KPIs of those business capabilities to demonstrate tangible and measurable value. Use terms and language that will resonate with your senior business leadership.

    Info-Tech Tip:

    Launching a data governance program will bring with it a level of disruption to the culture of the organization. That disruption doesn’t have to be detrimental if you are prepared to manage the change proactively and effectively.

    Policies, Procedures & Standards

    “Data standards are the rules by which data are described and recorded. In order to share, exchange, and understand data, we must standardize the format as well as the meaning.” – U.S. Geological Survey

    Policies, Procedures & Standards

    • When defining, updating, or refreshing your data policies, procedures, and standards, ensure they are relevant, serve a purpose, and/or support the use of data in the organization.
    • Avoid the common pitfall of building out a host of policies, procedures, and standards that are never used or followed by users and therefore don’t bring value or serve to mitigate risk for the organization.
    • Data policies can be thought of as formal statements and are typically created, approved, and updated by the organization’s data decision-making body (such as a data governance steering committee).
    • Data standards and procedures function as actions, or rules, that support the policies and their statements.
    • Standards and procedures are designed to standardize the processes during the overall data lifecycle. Procedures are instructions to achieve the objectives of the policies. The procedures are iterative and will be updated with approval from your data governance committee as needed.
    • Your organization’s data policies, standards, and procedures should not bog down or inhibit users; rather, they should enable confident data use and handling across the overall data lifecycle. They should support more effective and seamless data capture, integration, aggregation, sharing, and retention of data in the organization.

    Examples of data policies:

    • Data Classification Policy
    • Data Retention Policy
    • Data Entry Policy
    • Data Backup Policy
    • Data Provenance Policy
    • Data Management Policy

    Data Domain Documentation

    Select the correct granularity for your business need

    Diagram of data domain documentation
    Sources: Dataversity; Atlan; Analytics8

    Data Domain Documentation Examples

    Data Domain Documentation Examples

    Data Culture

    “Organizational culture can accelerate the application of analytics, amplify its power, and steer companies away from risky outcomes.” – Petzold, et al., 2020

    A healthy data culture is key to amplifying the power of your data and to building and sustaining an effective data governance program.

    What does a healthy data culture look like?

    • Everybody knows the data.
    • Everybody trusts the data.
    • Everybody talks about the data.

    Building a culture of data excellence.

    Leverage Info-Tech’s Data Culture Diagnostic to understand your organization’s culture around data.

    Screenshot of Data Culture Scorecard

    Contact your Info-Tech Account Representative for more information on the Data Culture Diagnostic

    Cultivating a data-driven culture is not easy

    “People are at the heart of every culture, and one of the biggest challenges to creating a data culture is bringing everyone into the fold.” – Lim, Alation

    It cannot be purchased or manufactured,

    It must be nurtured and developed,

    And it must evolve as the business, user, and data landscapes evolve.

    “Companies that have succeeded in their data-driven efforts understand that forging a data culture is a relentless pursuit, and magic bullets and bromides do not deliver results.” – Randy Bean, 2020

    Hallmarks of a data-driven culture

    There is a trusted, single source of data the whole company can draw from.

    There’s a business glossary and data catalog and users know what the data fields mean.

    Users have access to data and analytics tools. Employees can leverage data immediately to resolve a situation, perform an activity, or make a decision – including frontline workers.

    Data literacy, the ability to collect, manage, evaluate, and apply data in a critical manner, is high.

    Data is used for decision making. The company encourages decisions based on objective data and the intelligent application of it.

    A data-driven culture requires a number of elements:

    • High-quality data
    • Broad access and data literacy
    • Data-driven decision-making processes
    • Effective communication

    Data Literacy

    Data literacy is an essential part of a data-driven culture.

    • Building a data-driven culture takes an ongoing investment of time, effort, and money.
    • This investment will not realize its full return without building up the organization’s data literacy.
    • Data literacy is about filling data knowledge gaps across all levels of the organization.
    • It’s about ensuring all users – senior leadership right through to core users – are equipped with appropriate levels of training, skills, understanding, and awareness around the organization’s data and the use of associated tools and technologies. Data literacy ensures users have the data they need and they know how to interpret and leverage it.
    • Data literacy drives the appetite, demand, and consumption for data.
    • A data-literate culture is one where the users feel confident and skilled in their use of data, leveraging it for making informed or evidence-based decisions and generating insights for the organization.

    Data Management

    • Data governance serves as an enabler to all of the core components that make up data management:
      • Data quality management
      • Data architecture management
      • Data platform
      • Data integration
      • Data operations management
      • Data risk management
      • Reference and master data management (MDM)
      • Document and content management
      • Metadata management
      • Business intelligence (BI), reporting, analytics and advanced analytics, artificial intelligence (AI), machine learning (ML)
    • Key tools such as the business data glossary and data catalog are vital for operationalizing data governance and in supporting data management disciplines such as data quality management, metadata management, and MDM as well as BI, reporting, and analytics.

    Enterprise Projects & Services

    • Data governance serves as an enabler to enterprise projects and services that require, use, share, sell, and/or rely on data for their viability and, ultimately, their success.
    • Folding or embedding data governance into the organization’s project management function or project management office (PMO) serves to ensure that, for any initiative, suitable consideration is given to how data is treated.
    • This may include defining parameters, following standards and procedures around bringing in new sources of data, integrating that data into the organization’s data ecosystem, using and sharing that data, and retaining that data post-project completion.
    • The data governance function helps to identify and manage any ethical issues, whether at the start of the project and/or throughout.
    • It provides a foundation for asking relevant questions as it relates to the use or incorporation of data in delivering the specific project or service. Do we know where the data obtained from? Do we have rights to use that data? Are there legislations, policies, or regulations that guide or dictate how that data can be used? What are the positive effects, negative impacts, and/or risks associated with our intended use of that data? Are we positioned to mitigate those risks?
    • Mature data governance creates organizations where the above considerations around data management and the ethical use and handling of data is routinely implemented across the business and in the rollout and delivery of projects and services.

    Data Privacy & Security

    • Data governance supports the organization’s data privacy and security functions.
    • Key tools include the data classification policy and standards and defined roles around data ownership and data stewardship. These are vital for operationalizing data governance and supporting data privacy, security, and the ethical use and handling of data.
    • While some organizations may have a dedicated data security and privacy group, data governance provides an added level of oversight in this regard.
    • Some of the typical checks and balances include ensuring:
      • There are policies and procedures in place to restrict and monitor staff’s access to data (one common way this is done is according to job descriptions and responsibilities) and that these comply with relevant laws and regulations.
      • There’s a data classification scheme in place where data has been classified on a hierarchy of sensitivity (e.g. top secret, confidential, internal, limited, public).
      • The organization has a comprehensive data security framework, including administrative, physical, and technical procedures for addressing data security issues (e.g. password management and regular training).
      • Risk assessments are conducted, including an evaluation of risks and vulnerabilities related to intentional and unintentional misuse of data.
      • Policies and procedures are in place to mitigate the risks associated with incidents such as data breaches.
      • The organization regularly audits and monitors its data security.

    Ethical Use & Handling of Data

    Data governance will support your organization’s ethical use and handling of data by facilitating definition around important factors, such as:

    • What are the various data assets in the organization and what purpose(s) can they be used for? Are there any limitations?
    • Who is the related data owner? Who holds accountability for that data? Who will be answerable?
    • Where was the data obtained from? What is the intended use of that data? Do you have rights to use that data? Are there legislations, policies, or regulations that guide or dictate how that data can be used?
    • What are the positive effects, negative impacts, and/or risks associated with the use of that data?

    Ethical Use & Handling of Data

    • Data governance serves as an enabler to the ethical use and handling of an organization’s data.
    • The Open Data Institute (ODI) defines data ethics as: “A branch of ethics that evaluates data practices with the potential to adversely impact on people and society – in data collection, sharing and use.”
    • Data ethics relates to good practice around how data is collected, used and shared. It’s especially relevant when data activities have the potential to impact people and society, whether directly or indirectly (Open Data Institute, 2019).
    • A failure to handle and use data ethically can negatively impact an organization’s direct stakeholders and/or the public at large, lead to a loss of trust and confidence in the organization's products and services, lead to financial loss, and impact the organization’s brand, reputation, and legal standing.
    • Data governance plays a vital role in building and managing your data assets, knowing what data you have, and knowing the limitations of that data. Data ownership, data stewardship, and your data governance decision-making body are key tenets and foundational components of your data governance. They enable an organization to define, categorize, and confidently make decisions about its data.

    Step 2.2

    Gauge Your Organization’s Current Data Culture

    Activities

    2.2.1 Gauge Your Organization’s Current Data Culture

    This step will guide you through the following activities:

    • Conduct a data culture survey or leverage Info-Tech’s Data Culture Diagnostic to increase your understanding of your organization’s data culture

    Outcomes of this step

    • An understanding of your organizational data culture

    2.2.1 Gauge Your Organization’s Current Data Culture

    Conduct a Data Culture Survey or Diagnostic

    The objectives of conducting a data culture survey are to increase the understanding of the organization's data culture, your users’ appetite for data, and their appreciation for data in terms of governance, quality, accessibility, ownership, and stewardship. To perform a data culture survey:

    1. Identify members of the data user base, data consumers, and other key stakeholders for surveying.
    2. Conduct an information session to introduce Info-Tech’s Data Culture Diagnostic survey. Explain the objective and importance of the survey and its role in helping to understand the organization’s current data culture and inform the improvement of that culture.
    3. Roll out the Info-Tech Data Culture Diagnostic survey to the identified users and stakeholders.
    4. Debrief and document the results and scorecard in the Data Strategy Stakeholder Interview Guide and Findings document.

    Input

    • Email addresses of participants in your organization who should receive the survey

    Output

    • Your organization’s Data Culture Scorecard for understanding current data culture as it relates to the use and consumption of data
    • An understanding of whether data is currently perceived to be an asset to the organization

    Materials

    Screenshot of Data Culture Scorecard

    Participants

    • Participants include those at the senior leadership level through to middle management, as well as other business stakeholders at varying levels across the organization
    • Data owners, stewards, and custodians
    • Core data users and consumers

    Contact your Info-Tech Account Representative for details on launching a Data Culture Diagnostic.

    Phase 3

    Build a Target State Roadmap and Plan

    Three circles are in the image that list the three phases and the main steps. Phase 3 is highlighted.

    “Achieving data success is a journey, not a sprint.” Companies that set a clear course, with reasonable expectations and phased results over a period of time, get to the destination faster.” – Randy Bean, 2020

    This phase will guide you through the following activities:

    • Build your Data Governance Roadmap
    • Develop a target state plan comprising of prioritized initiatives

    This phase involves the following participants:

    • Data Governance Leadership
    • Data Owners/Data Stewards
    • Data Custodians
    • Data Governance Working Group(s)

    Step 3.1

    Formulate an Actionable Roadmap and Right-Sized Plan

    This step will guide you through the following activities:

    • Build your data governance roadmap
    • Develop a target state plan comprising of prioritized initiatives

    Outcomes of this step

    • A foundation for data governance initiative planning that’s aligned with the organization’s business architecture: value streams, business capability map, and strategy map

    Build a right-sized roadmap

    Formulate an actionable roadmap that is right sized to deliver value in your organization.

    Key considerations:

    • When building your data governance roadmap, ensure you do so through an enterprise lens. Be cognizant of other initiatives that might be coming down the pipeline that may require you to align your data governance milestones accordingly.
    • Apart from doing your planning with consideration for other big projects or launches that might be in-flight and require the time and attention of your data governance partners, also be mindful of the more routine yet still demanding initiatives.
    • When doing your roadmapping, consider factors like the organization’s fiscal cycle, typical or potential year-end demands, and monthly/quarterly reporting periods and audits. Initiatives such as these are likely to monopolize the time and focus of personnel key to delivering on your data governance milestones.

    Sample milestones:

    Data Governance Leadership & Org Structure Definition

    Define the home for data governance and other key roles around ownership and stewardship, as approved by senior leadership.

    Data Governance Charter and Policies

    Create a charter for your program and build/refresh associated policies.

    Data Culture Diagnostic

    Understand the organization’s current data culture, perception of data, value of data, and knowledge gaps.

    Use Case Build and Prioritization

    Build a use case that is tied to business capabilities. Prioritize accordingly.

    Business Data Glossary/Catalog

    Build and/or refresh the business’ glossary for addressing data definitions and standardization issues.

    Tools & Technology

    Explore the tools and technology offering in the data governance space that would serve as an enabler to the program. (e.g. RFI, RFP).

    Recall: Info-Tech’s Data Governance Framework

    An image of Info-Tech's Data Governance Framework

    Build an actionable roadmap

    Data Governance Leadership & Org Structure Division

    Define key roles for getting started.

    Use Case Build & Prioritization

    Start small and then scale – deliver early wins.

    Literacy Program

    Start understanding data knowledge gaps, building the program, and delivering.

    Tools & Technology

    Make the available data governance tools and technology work for you.

    Key components of your data governance roadmap

    By now, you have assessed current data governance environment and capabilities. Use this assessment, coupled with the driving needs of your business, to plot your data Governance roadmap accordingly.

    Sample data governance roadmap milestones:

    • Define data governance leadership.
    • Define and formalize data ownership and stewardship (as well as the role IT/data management will play as data custodians).
    • Build/confirm your business capability map and data domains.
    • Build business data use cases specific to business capabilities.
    • Define business measures/KPIs for the data governance program (i.e. metrics by use case that are relevant to business capabilities).
    • Data management:
      • Build your data glossary or catalog starting with identified and prioritized terms.
      • Define data domains.
    • Design and define the data governance operating model (oversight model definition, communication plan, internal marketing such as townhalls, formulate change management plan, RFP of data governance tool and technology options for supporting data governance and its administration).
    • Data policies and procedures:
      • Formulate, update, refresh, consolidate, rationalize, and/or retire data policies and procedures.
      • Define policy management and administration framework (i.e. roll-out, maintenance, updates, adherence, system to be used).
    • Conduct Info-Tech’s Data Culture Diagnostic or survey (across all levels of the organization).
    • Define and formalize the data literacy program (build modules, incorporate into LMS, plan lunch and learn sessions).
    • Data privacy and security: build data classification policy, define classification standards.
    • Enterprise projects and services: embed data governance in the organization’s PMO, conduct “Data Governance 101” for the PMO.

    Defining data governance roles and organizational structure at Organization

    The approach employed for defining the data governance roles and supporting organizational structure for .

    Key Considerations:

    • The data owner and data steward roles are formally defined and documented within the organization. Their involvement is clear, well-defined, and repeatable.
    • There are data owners and data stewards for each data domain within the organization. The data steward role is given to someone with a high degree of subject matter expertise.
    • Data owners and data stewards are effective in their roles by ensuring that their data domain is clean and free of errors and that they protect the organization against data loss.
    • Data owners and data stewards have the authority to make final decisions on data definitions, formats, and standard processes that apply to their respective data sets. Data owners and data stewards have authority regarding who has access to certain data.
    • Data owners and data stewards are not from the IT side of the organization. They understand the lifecycle of the data (how it is created, curated, retrieved, used, archived, and destroyed) and they are well-versed in any compliance requirements as it relates to their data.
    • The data custodian role is formally defined and is given to the relevant IT expert. This is an individual with technical administrative and/or operational responsibility over data (e.g. a DBA).
    • A data governance steering committee exists and is comprised of well-defined roles, responsibilities, executive sponsors, business representatives, and IT experts.
    • The data governance steering committee works to provide oversight and enforce policies, procedures, and standards for governing data.
    • The data governance working group has cross-functional representation. This comprises business and IT representation, as well as project management and change management where applicable: data stewards, data custodians, business subject matter experts, PM, etc.).
    • Data governance meetings are coordinated and communicated about. The meeting agenda is always clear and concise, and meetings review pressing data-related issues. Meeting minutes are consistently documented and communicated.

    Sample: Business capabilities to data owner and data stewards mapping for a selected data domain

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.

    Enable business capabilities with data governance role definitions.

    Sample: Business capabilities to data owner and data stewards mapping for a selected data domain

    Consider your technology options:

    Make the available data governance tools and technology work for you:

    • Data catalog
    • Business data glossary
    • Data lineage
    • Metadata management

    Logos of data governance tools and technology.

    These are some of the data governance tools and technology players. Check out SoftwareReviews for help making better software decisions.

    Make the data steward the catalyst for organizational change and driving data culture

    The data steward must be empowered and backed politically with decision-making authority, or the role becomes stale and powerless.

    Ensuring compliance can be difficult. Data stewards may experience pushback from stakeholders who must deliver on the policies, procedures, and processes that the data steward enforces.

    Because the data steward must enforce data processes and liaise with so many different people and departments within the organization, the data steward role should be their primary full-time job function – where possible.

    However, in circumstances where budget doesn’t allow a full-time data steward role, develop these skills within the organization by adding data steward responsibilities to individuals who are already managing data sets for their department or line of business.

    Info-Tech Tip

    A stewardship role is generally more about managing the cultural change that data governance brings. This requires the steward to have exceptional interpersonal skills that will assist in building relationships across departmental boundaries and ensuring that all stakeholders within the organization believe in the initiative, understand the anticipated outcomes, and take some level of responsibility for its success.

    Changes to organizational data processes are inevitable; have a communication plan in place to manage change

    Create awareness of your data governance program. Use knowledge transfer to get as many people on board as possible.

    Data governance initiatives must contain a strong organizational disruption component. A clear and concise communication strategy that conveys milestones and success stories will address the various concerns that business unit stakeholders may have.

    By planning for and efficiently communicating any changes that a data governance initiative may bring, many initial issues can be resolved from the outset.

    Governance recommendations will require significant business change. The redesign of a substantial number of data processes affecting various business units will require an overhaul of the organization’s culture, thought processes, and procedures surrounding its data. Preparing people for change well in advance will allow them to take the necessary steps to adapt and reduce potential confrontation.

    Because a data governance initiative will involve data-driven business units across the organization, the governance team must present a compelling case for data governance to ensure acceptance of new processes, rules, guidelines, and technologies by all data producers and users.

    Attempting to implement change without an effective communication plan can result in disagreements over data control and stalemates between stakeholder units. The recommendations of the governance group must reflect the needs of all stakeholders or there will be pushback.

    Info-Tech Insight

    Launching a data governance initiative is guaranteed to disrupt the culture of the organization. That disruption doesn’t have to be detrimental if you are prepared to manage the change proactively and effectively.

    Create a common data governance vision that is consistently communicated to the organization

    A data governance program should be an enterprise-wide initiative.

    To create a strong vision for data governance, there must be participation from the business and IT. A common vision will articulate the state the organization wishes to achieve and how it will reach that state. Visioning helps to develop long-term goals and direction.

    Once the vision is established, it must be effectively communicated to everyone, especially those who are involved in creating, managing, disposing, or archiving data.

    The data governance program should be periodically refined. This will ensure the organization continues to incorporate best methods and practices as the organization grows and data needs evolve.

    Info-Tech Tips

    • Use information from the stakeholder interviews to derive business goals and objectives.
    • Work to integrate different opinions and perspectives into the overall vision for data governance.
    • Brainstorm guiding principles for data and understand the overall value to the organization.

    Develop a compelling data governance communications plan to get all departmental lines of business on board

    A data governance program will impact all data-driven business units within the organization.

    A successful data governance communications plan involves making the initiative visible and promoting staff awareness. Educate the team on how data is collected, distributed, and used, what internal processes use data, and how that data is used across departmental boundaries.

    By demonstrating how data governance will affect staff directly, you create a deeper level of understanding across lines of business, and ultimately, a higher level of acceptance for new processes, rules, and guidelines.

    A clear and concise communications strategy will raise the profile of data governance within the organization, and staff will understand how the program will benefit them and how they can share in the success of the initiative. This will end up providing support for the initiative across the board.

    A proactive communications plan will:

    • Assist in overcoming issues with data control, stalemates between stakeholder units, and staff resistance.
    • Provide a formalized process for implementing new policies, rules, guidelines, and technologies, and managing organizational data.
    • Detail data ownership and accountability for decision making, and identify and resolve data issues throughout the organization.
    • Encourage acceptance and support of the initiative.

    Info-Tech Tip

    Focus on literacy and communication: include training in the communication plan. Providing training for data users on the correct procedures for updating and verifying the accuracy of data, data quality, and standardized data policies will help validate how data governance will benefit them and the organization.

    Leverage the data governance program to communicate and promote the value of data within the organization

    The data governance program is responsible for continuously promoting the value of data to the organization. The data governance program should seek a variety of ways to educate the organization and data stakeholders on the benefit of data management.

    Even if data policies and procedures are created, they will be highly ineffective if they are not properly communicated to the data producers and users alike.

    There needs to be a communication plan that highlights how the data producer and user will be affected, what their new responsibilities are, and the value of that change.

    To learn how to manage organizational change, refer to Info-Tech’s Master Organizational Change Management Practices.

    Understand what makes for an effective policy for data governance

    It can be difficult to understand what a policy is, and what it is not. Start by identifying the differences between a policy and standards, guidelines, and procedures.

    Diagram of an effective policy for data governance

    The following are key elements of a good policy:

    Heading Descriptions
    Purpose Describes the factors or circumstances that mandate the existence of the policy. Also states the policy’s basic objectives and what the policy is meant to achieve.
    Scope Defines to whom and to what systems this policy applies. Lists the employees required to comply or simply indicates “all” if all must comply. Also indicates any exclusions or exceptions, i.e. those people, elements, or situations that are not covered by this policy or where special consideration may be made.
    Definitions Define any key terms, acronyms, or concepts that will be used in the policy. A standard glossary approach is sufficient.
    Policy Statements Describe the rules that comprise the policy. This typically takes the form of a series of short prescriptive and proscriptive statements. Sub-dividing this section into sub-sections may be required depending on the length or complexity of the policy.
    Non-Compliance Clearly describe consequences (legal and/or disciplinary) for employee non-compliance with the policy. It may be pertinent to describe the escalation process for repeated non-compliance.
    Agreement Confirms understanding of the policy and provides a designated space to attest to the document.

    Leverage myPolicies, Info-Tech’s web-based application for managing your policies and procedures

    Most organizations have problems with policy management. These include:

    1. Policies are absent or out of date
    2. Employees largely unaware of policies in effect
    3. Policies are unmonitored and unenforced
    4. Policies are in multiple locations
    5. Multiple versions of the same policy exist
    6. Policies managed inconsistently across different silos
    7. Policies are written poorly by untrained authors
    8. Inadequate policy training program
    9. Draft policies stall and lose momentum
    10. Weak policy support from senior management

    Technology should be used as a means to solve these problems and effectively monitor, enforce, and communicate policies.

    Product Overview

    myPolicies is a web-based solution to create, distribute, and manage corporate policies, procedures, and forms. Our solution provides policy managers with the tools they need to mitigate the risk of sanctions and reduce the administrative burden of policy management. It also enables employees to find the documents relevant to them and build a culture of compliance.

    Some key success factors for policy management include:

    • Store policies in a central location that is well known and easy to find and access. A key way that technology can help communicate policies is by having them published on a centralized website.
    • Link this repository to other policies’ taxonomies of your organization. E.g. HR policies to provide a single interface for employees to access guidance across the organization.
    • Reassess policies annually at a minimum. myPolicies can remind you to update the organization’s policies at the appropriate time.
    • Make the repository searchable and easily navigable.
    • myPolicies helps you do all this and more.
    myPolicies logo myPolicies

    Enforce data policies to promote consistency of business processes

    Data policies are short statements that seek to manage the creation, acquisition, integrity, security, compliance, and quality of data. These policies vary amongst organizations, depending on your specific data needs.

    • Policies describe what to do, while standards and procedures describe how to do something.
    • There should be few data policies, and they should be brief and direct. Policies are living documents and should be continuously updated to respond to the organization’s data needs.
    • The data policies should highlight who is responsible for the data under various scenarios and rules around how to manage it effectively.

    Examples of Data Policies

    Trust

    • Data Cleansing and Quality Policy
    • Data Entry Policy

    Availability

    • Acceptable Use Policy
    • Data Backup Policy

    Security

    • Data Security Policy
    • Password Policy Template
    • User Authorization, Identification, and Authentication Policy Template
    • Data Protection Policy

    Compliance

    • Archiving Policy
    • Data Classification Policy
    • Data Retention Policy

    Leverage data management-related policies to standardize your data management practices

    Info-Tech’s Data Management Policy:

    This policy establishes uniform data management standards and identifies the shared responsibilities for assuring the integrity of the data and that it efficiently and effectively serves the needs of the organization. This policy applies to all critical data and to all staff who may be creators and/or users of such data.

    Info-Tech’s Data Entry Policy:

    The integrity and quality of data and evidence used to inform decision making is central to both the short-term and long-term health of an organization. It is essential that required data be sourced appropriately and entered into databases and applications in an accurate and complete manner to ensure the reliability and validity of the data and decisions made based on the data.

    Info-Tech’s Data Provenance Policy:

    Create policies to keep your data's value, such as:

    • Only allow entry of data from reliable sources.
    • Employees entering and accessing data must observe requirements for capturing/maintaining provenance metadata.
    • Provenance metadata will be used to track the lifecycle of data from creation through to disposal.

    Info-Tech’s Data Integration and Virtualization Policy:

    This policy aims to assure the organization, staff, and other interested parties that data integration, replication, and virtualization risks are taken seriously. Staff must use the policy (and supporting guidelines) when deciding whether to integrate, replicate, or virtualize data sets.

    Select the right mix of metrics to successfully supervise data policies and processes

    Policies are only as good as your level of compliance. Ensure supervision controls exist to oversee adherence to policies and procedures.

    Although they can be highly subjective, metrics are extremely important to data governance success.

    • Establishing metrics that measure the performance of a specific process or data set will:
      • Create a greater degree of ownership from data stewards and data owners.
      • Help identify underperforming individuals.
      • Allow the steering committee to easily communicate tailored objectives to individual data stewards and owners.
    • Be cautious when establishing metrics. The wrong metrics can have negative repercussions.
      • They will likely draw attention to an aspect of the process that doesn’t align with the initial strategy.
      • Employees will work hard and grow frustrated as their successes aren’t accurately captured.

    Policies are great to have from a legal perspective, but unless they are followed, they will not benefit the organization.

    • One of the most useful metrics for policies is currency. This tracks how up to date the policy is and how often employees are informed about the policy. Often, a policy will be introduced and then ignored. Policies must be continuously reviewed by management and employees.
    • Some other metrics include adherence (including performance in tests for adherence) and impacts from non-adherence.

    Review metrics on an ongoing basis with those data owners/stewards who are accountable, the data governance steering committee, and the executive sponsors.

    Establish data standards and procedures for use across all organizational lines of business

    A data governance program will impact all data-driven business units within the organization.

    • Data management procedures are the methods, techniques, and steps to accomplish a specific data objective. Creating standard data definitions should be one of the first tasks for a data governance steering committee.
    • Data moves across all departmental boundaries and lines of business within the organization. These definitions must be developed as a common set of standards that can be accepted and used enterprise wide.
    • Consistent data standards and definitions will improve data flow across departmental boundaries and between lines of business.
    • Ensure these standards and definitions are used uniformly throughout the organization to maintain reliable and useful data.

    Data standards and procedural guidelines will vary from company to company.

    Examples include:

    • Data modeling and architecture standards.
    • Metadata integration and usage procedures.
    • Data security standards and procedures.
    • Business intelligence standards and procedures.

    Info-Tech Tip

    Have a fundamental data definition model for the entire business to adhere to. Those in the positions that generate and produce data must follow the common set of standards developed by the steering committee and be accountable for the creation of valid, clean data.

    Changes to organizational data processes are inevitable; have a communications plan in place to manage change

    Create awareness of your data governance program, using knowledge transfer to get as many people on board as possible.

    By planning for and efficiently communicating any changes that a data governance initiative may bring, many initial issues can be resolved from the outset.

    Governance recommendations will require significant business change. The redesign of a substantial number of data processes affecting various business units will require an overhaul of the organization’s culture, thought processes, and procedures surrounding its data. Preparing people for change well in advance will allow them to take the necessary steps to adapt and reduce potential confrontation.

    Because a data governance initiative will involve data-driven business units across the organization, the governance team must present a compelling case for data governance to ensure acceptance of new processes, rules, guidelines, and technologies by all data producers and users.

    Attempting to implement change without an effective communications plan can result in disagreements over data control and stalemates between stakeholder units. The recommendations of the governance group must reflect the needs of all stakeholders or there will be pushback.

    Data governance initiatives will very likely bring about a level of organizational disruption. A clear and concise communications strategy that conveys milestones and success stories will address the various concerns that business unit stakeholders may have.

    Info-Tech Tip

    Launching a data governance program will bring with it a level of disruption to the culture of the organization. That disruption doesn’t have to be detrimental if you are prepared to manage the change proactively and effectively.

    Additional Support

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop.

    Picture of analyst

    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.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    Screenshot of example data governance strategy map.

    Build Your Business and User Context

    Work with your core team of stakeholders to build out your data governance strategy map, aligning data governance initiatives with business capabilities, value streams, and, ultimately, your strategic priorities.

    Screenshot of Data governance roadmap

    Formulate a Plan to Get to Your Target State

    Develop a data governance future state roadmap and plan based on an understanding of your current data governance capabilities, your operating environment, and the driving needs of your business.

    Related Info-Tech Research

    Build a Robust and Comprehensive Data Strategy

    Key to building and fostering a data-driven culture.

    Create a Data Management Roadmap

    Streamline your data management program with our simplified framework.

    The First 100 Days as CDO

    Be the voice of data in a time of transformation.

    Research Contributors

    Name Position Company
    David N. Weber Executive Director - Planning, Research and Effectiveness Palm Beach State College
    Izabela Edmunds Information Architect Mott MacDonald
    Andy Neill Practice Lead, Data & Analytics Info-Tech Research Group
    Dirk Coetsee Research Director, Data & Analytics Info-Tech Research Group
    Graham Price Executive Advisor, Advisory Executive Services Info-Tech Research Group
    Igor Ikonnikov Research Director, Data & Analytics Info-Tech Research Group
    Jean Bujold Senior Workshop Delivery Director Info-Tech Research Group
    Rajesh Parab Research Director, Data & Analytics Info-Tech Research Group
    Reddy Doddipalli Senior Workshop Director Info-Tech Research Group
    Valence Howden Principal Research Director, CIO Info-Tech Research Group

    Bibliography

    Alation. “The Alation State of Data Culture Report – Q3 2020.” Alation, 2020. Accessed 25 June 2021.

    Allott, Joseph, et al. “Data: The next wave in forestry productivity.” McKinsey & Company, 27 Oct. 2020. Accessed 25 June 2021.

    Bean, Randy. “Why Culture Is the Greatest Barrier to Data Success.” MIT Sloan Management Review, 30 Sept. 2020. Accessed 25 June 2021.

    Brence, Thomas. “Overcoming the Operationalization Challenge with Data Governance at New York Life.” Informatica, 18 March 2020. Accessed 25 June 2021.

    Bullmore, Simon, and Stuart Coleman. “ODI Inside Business – a checklist for leaders.” Open Data Institute, 19 Oct. 2020. Accessed 25 June 2021.

    Canadian Institute for Health Information. “Developing and implementing accurate national standards for Canadian health care information.” Canadian Institute for Health Information. Accessed 25 June 2021.

    Carruthers, Caroline, and Peter Jackson. “The Secret Ingredients of the Successful CDO.” IRM UK Connects, 23 Feb. 2017.

    Dashboards. “Useful KPIs for Healthy Hospital Quality Management.” Dashboards. Accessed 25 June 2021.

    Dashboards. “Why (and How) You Should Improve Data Literacy in Your Organization Today.” Dashboards. Accessed 25 June 2021.

    Datapine. “Healthcare Key Performance Indicators and Metrics.” Datapine. Accessed 25 June 2021.

    Datapine. “KPI Examples & Templates: Measure what matters the most and really impacts your success.” Datapine. Accessed 25 June 2021.

    Diaz, Alejandro, et al. “Why data culture matters.” McKinsey Quarterly, Sept. 2018. Accessed 25 June 2021.

    Everett, Dan. “Chief Data Officer (CDO): One Job, Four Roles.” Informatica, 9 Sept. 2020. Accessed 25 June 2021.

    Experian. “10 signs you are sitting on a pile of data debt.” Experian. Accessed 25 June 2021.

    Fregoni, Silvia. “New Research Reveals Why Some Business Leaders Still Ignore the Data.” Silicon Angle, 1 Oct. 2020.

    Informatica. Holistic Data Governance: A Framework for Competitive Advantage. Informatica, 2017. Accessed 25 June 2021.

    Knight, Michelle. “What Is a Data Catalog?” Dataversity, 28 Dec. 2017. Web.

    Lim, Jason. “Alation 2020.3: Getting Business Users in the Game.” Alation, 2020. Accessed 25 June 2021.

    McDonagh, Mariann. “Automating Data Governance.” Erwin, 29 Oct. 2020. Accessed 25 June 2021.

    NewVantage Partners. Data-Driven Business Transformation: Connecting Data/AI Investment to Business Outcomes. NewVantage Partners, 2020. Accessed 25 June 2021.

    Olavsrud, Thor. “What is data governance? A best practices framework for managing data assets.” CIO.com, 18 March 2021. Accessed 25 June 2021.

    Open Data Institute. “Introduction to data ethics and the data ethics canvas.” Open Data Institute, 2020. Accessed 25 June 2021.

    Open Data Institute. “The UK National Data Strategy 2020: doing data ethically.” Open Data Institute, 17 Nov. 2020. Accessed 25 June 2021.

    Open Data Institute. “What is the Data Ethics Canvas?” Open Data Institute, 3 July 2019. Accessed 25 June 2021.

    Pathak, Rahul. “Becoming a Data-Driven Enterprise: Meeting the Challenges, Changing the Culture.” MIT Sloan Management Review, 28 Sept. 2020. Accessed 25 June 2021.

    Redman, Thomas, et al. “Only 3% of Companies’ Data Meets Basic Quality Standards.” Harvard Business Review. 11 Sept 2017.

    Petzold, Bryan, et al. “Designing data governance that delivers value.” McKinsey & Company, 26 June 2020. Accessed 25 June 2021.

    Smaje, Kate. “How six companies are using technology and data to transform themselves.” McKinsey & Company, 12 Aug. 2020. Accessed 25 June 2021.

    Talend. “The Definitive Guide to Data Governance.” Talend. Accessed 25 June 2021.

    “The Powerfully Simple Modern Data Catalog.” Atlan, 2021. Web.

    U.S. Geological Survey. “Data Management: Data Standards.” U.S. Geological Survey. Accessed 25 June 2021.

    Waller, David. “10 Steps to Creating a Data-Driven Culture.” Harvard Business Review, 6 Feb. 2020. Accessed 25 June 2021.

    “What is the Difference Between A Business Glossary, A Data Dictionary, and A Data Catalog, and How Do They Play A Role In Modern Data Management?” Analytics8, 23 June 2021. Web.

    Wikipedia. “RFM (market research).” Wikipedia. Accessed 25 June 2021.

    Windheuser, Christoph, and Nina Wainwright. “Data in a Modern Digital Business.” Thoughtworks, 12 May 2020. Accessed 25 June 2021.

    Wright, Tom. “Digital Marketing KPIs - The 12 Key Metrics You Should Be Tracking.” Cascade, 3 March 2021. Accessed 25 June 2021.

    Build an ITSM Tool Implementation Plan

    • Buy Link or Shortcode: {j2store}486|cart{/j2store}
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    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk
    • Selecting the Wrong Resources: You need ITSM technology and process experts, because this is not just a technology project, but also a process improvement opportunity.
    • Over-Reliance on the Vendor to Optimize Your Tool: Yes, the vendor will typically install and set up the tool, but they will not fix your processes for you.
    • Not Preparing for Data Migration: Data migration is complex. You need to determine what data to migrate, if any, and how that data will be mapped to the new environment.
    • Insufficient IT and End-User Training: A link to the ITSM tool manual is not enough. Staff and users need training on how your processes will be executed in the new tool.

    Our Advice

    Critical Insight

    • Start with the assumption you don’t need to migrate old data.
    • ITSM tools are designed to support ITIL best practices.
    • Implement your new tool in stages to manage scope.

    Impact and Result

    • Ability to plan and scope the project to avoid or reduce last-minute chaos.
    • Opportunity to review and optimize processes as part of the ITSM tool implementation project.
    • Improved project management, and therefore, better cost and effort estimates, by identifying required tasks upfront.

    Build an ITSM Tool Implementation Plan Research & Tools

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

    1. Build an ITSM Tool Implementation Plan Deck – An implementation guide that walks you through the steps to ensure the tool delivers business value.

    There may be hundreds of parameters to define and decisions to make, so identifying the full list of tasks early is critical for the success of the implementation project.

    • Build an ITSM Tool Implementation Plan – Phases 1-3

    2. ITSM Tool Project Charter Template – A charter to document your project scope, milestones, stakeholders, risks etc. to kick-off and manage your project.

    This project charter document summarizes the Project Overview (Description, background, drivers, and objectives), Governance and Management (Project stakeholders/roles, budget, and dependencies), and Risk, Assumptions, and Constraints (Known and potential risks and mitigation strategy).

    • ITSM Tool Implementation Project Charter Template

    3. ITSM Tool Implementation Checklist – A tool to help identify the most common decisions you will need to make and prepare for your implementation project.

    The checklists in this tool identify the most common decisions and preparation you will need to make to support the implementation for the ITSM modules that we recommend are set up first: incident management and service requests; change management; and asset management. Use these checklists as a model to follow for any additional ITSM modules you plan to implement, and refer to Info-Tech's blueprints for each service management topic for additional guidance.

    • ITSM Tool Implementation Checklist

    4. ITSM Tool Deployment Plan Template – A tool to help prioritize and prepare for tool rollout plan.

    This deployment plan documents the strategy and decisions made for making the transition to the new ITSM tool, and the details to execute the cutover to a live environment, including how, when, where.

    • ITSM Tool Deployment Plan Template

    5. ITSM Tool Training Schedule – Use the tool to create your new tool training roadmap.

    This template is a guide for creating a training and communication plan as part of the implementation project for your ITSM tool. Use the template to document and plan the communications and training needs prior to deployment of the new tool.

    • ITSM Tool Training Schedule

    Infographic

    Further reading

    Build an ITSM Tool Implementation Plan

    Plan ahead with a step-by-step approach to ensure the tool delivers business value.

    EXECUTIVE BRIEF

    Analyst perspective

    Take control of the wheel or you might end up in a ditch.

    The image contains a picture of Frank Trovato.

    An ITSM tool implementation is a complex project with direct impact on IT’s ability to support the business. With that level of risk, you need to take control early on.

    Yes, your vendor will support or execute the technical implementation, but they depend on you to tell them how to configure ITSM parameters and workflows that affect user interface, the ability to manage incidents, and governance over assets and IT changes.

    If you leave the configuration completely to the vendor, at best you might get the same setup as in your old tool (and not realize the benefits that leadership is expecting). At worst you end up with default values that don’t fit your process needs, i.e., confusion and not realizing expected benefits.

    A successful implementation requires early planning from a wide range of resources including ITSM tool experts (supported by the vendor), process experts, and a project manager to methodically step through the hundreds of parameters you will need to define before implementation.

    Frank Trovato
    Research Director, Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    Leadership has invested significantly in a new ITSM tool and expects to see the benefits they were promised by the vendor and the procurement team.

    The ITSM project team needs to balance leadership expectations with the direct impact this project will have on IT staff and end users.

    Implementing an ITSM tool is a large project that is often highly complex in part because it requires input from a wide range of stakeholders: IT staff, end users, senior management, and vendors.

    A new ITSM tool will change how IT staff work and how users are serviced, and change is always difficult.

    Finally, implementing the new tool requires a migration from an existing tool without a pause in IT service availability. Incidents don’t take a week off while you execute the final product rollout.

    There may be hundreds of parameters to define and decisions to make, so identifying the full list of tasks early is critical to:

    • Identify the necessary stakeholders to provide input into implementation decisions.
    • Properly define scope and timelines.
    • Take advantage of the opportunity to review and improve processes as part of defining what will need to be configured in the new ITSM tool.

    Info-Tech Insight

    As with any large project, a key step is tackling it one bite at a time – but also understanding the size of the whole meal. This is where organizations often fail with ITSM implementations: not understanding upfront the volume of work required for a successful implementation.

    Your Challenge

    Organizations implementing a new ITSM tool often face these pitfalls:

    • Selecting the Wrong Resources: You need ITSM technology and process experts, because this is not just a technology project but also a process improvement opportunity. You will need to configure ITSM parameters and workflows in the new tool – which directly affects processes. Take advantage of that opportunity to fix pain points. For example, if your existing ticket categories are not effective, implement a better categorization scheme rather than just configure the same old, ineffective scheme.
    • Over-Reliance on the Vendor to Optimize Your Tool: Yes, the vendor will typically install and set up the tool but they will not fix your processes for you. On installation day, if you are not prepared with the categories, ticket templates, and so on that you wish to configure, your vendor will just go with the default or migrate your old parameters from your old ITSM tool.
    • Not Preparing for Data Migration: Data migration is complex. You need to determine what data to migrate, if any, and how that data will be mapped to the new environment. That takes planning and must be defined well before the vendor is ready to implement your tool.
    • Insufficient IT and End-User Training: A link to the ITSM tool manual is not enough. Staff and users need training on how your processes will be executed in the new tool.

    A survey of implementation challenges for ServiceNow’s customers

    26% Resistance to change

    43% Lacked a clear roadmap

    38% Planning for resources

    Source: Acorio, 2019

    Info-Tech’s approach

    Divide the implementation project into controllable phases for an effective implementation.

    Plan

    Define the scope of your project, identify and get buy-in from your stakeholders, and establish a timeframe for the implementation.

    Design & Build

    Identify existing process challenges and design workflows and ticket management to improve processes. Make decisions on data migrations and integrations for your new tool.

    Deploy & Train

    Create a rollout plan and communicate changes and improvements to users. Plan for the new tool deployment and monitor your solution.

    STOP: Use this blueprint after you have selected an ITSM solution

    Leverage our SoftwareReviews service and related blueprints to assist with ITSM tool selection, and then use this blueprint to plan the implementation.

    1. Evaluate solutions

    2. Select and purchase

    3. Implement (use this blueprint)

    Use our SoftwareReviews resources to evaluate solutions and vendors based on criteria such as features and customer service. Below are links to our ITSM software reviews:

    Use the following resources to help you make the case for funding and execute the purchase process:

    Your ITSM vendor or systems integrator will lead the technical implementation (e.g. software install and integration).

    As a result, your implementation plan needs to focus on preparing the information needed for implementation (e.g. ticket categories, workflow requirements) and organizational change management.

    This blueprint provides a methodology, checklist, and supporting templates to prepare for the implementation.

    Info-Tech’s methodology to build an ITSM Tool Implementation Plan

    1. Identify Scope, Stakeholders, and Preliminary Timeline

    2. Prepare to Implement Incident Management and Service Request Modules

    3. Create a Deployment Plan (Communication, Training, Rollout)

    Phase Steps

    1.1 Document define scope

    1.2 Define roles and responsibilities

    1.3 Identify preliminary timeline

    2.1 Review your existing solution and challenges

    2.2 Plan ticket management and workflow implementation

    2.3 Plan data migration, knowledgebase setup, and integrations

    2.4 Plan the module rollout

    3.1 Create a communication plan (for IT, users, and business leaders)

    3.2 Create a training plan

    3.3 Plan how you will deploy, monitor, and maintain the solution

    Phase Outcomes

    • RACI chart outlining high-level accountability and responsibilities for the project
    • Documenting timeline and team for the implementation project
    • ITSM tool implementation checklist
    • Strategy and identified opportunities to implement incident and service request modules
    • Documented communications and targeted training plan
    • Completed rollout plan and prepared to monitor your success metrics

    Insight summary

    Start with the assumption you don’t need to migrate old data

    ITSM tools are designed to support ITIL best practices

    Implement your new tool in stages to manage scope

    We all love data. We love being able to run reports showing trends, measuring changes over time, and highlighting pain points – but is your data from five years ago relevant to those assessments? Can you get by with just migrating open tickets and perhaps just the last year of critical tickets?

    Be ruthless in deciding what really needs to be in your active system to support incident matching, troubleshooting, or ongoing reporting.

    If you can’t make a strong case, don’t waste your time on old data. Remember, you can still save an exported copy or report of your old data if the need arises to search historical records.

    For organizations lacking process maturity, the tool’s default settings will often provide a good starting point. For example, a good ITSM tool will typically already be configured to follow best practices such as:

    • Separating incidents from service requests
    • Assigning resolution codes to solved tickets
    • Enabling routing based on categories

    Within those defaults, you will still need to decide your specific parameters – e.g. what your categories and resolution codes should be – so don’t blindly follow default settings but use them as a starting point.

    Start with the incident management and service requests modules. Those are typically the core of IT service management operations, so that should help realize benefits from the new tool sooner. In addition, incident management and service requests processes will support other ITSM processes such as asset management and problem management.

    Once those modules are implemented successfully (from a technology and process perspective), then start to implement your next core module (e.g. asset or change management), and continue to build from there.

    Blueprint deliverables

    This blueprint includes tools and templates to help you accomplish your goals:

    ITSM Tool Implementation Checklist

    Identify the most common decisions you will need to make and prepare for your implementation project.

    ITSM Tool Project Charter Template

    Review and edit the template to suit your project requirements

    The image contains a screenshot of the ITSM Tool Project Charter Template.
    The image contains screenshots of the ITSM Tool Implementation Checklist.

    ITSM Tool Deployment Plan Template

    Prioritize and prepare tool rollout plan

    The image contains a screenshot of the ITSM Tool Deployment Plan Template.

    ITSM Tool Training Schedule

    Use the checklist to create your new tool training roadmap

    The image contains a screenshot of the ITSM Tool Training Schedule.

    Blueprint benefits

    Benefits for IT

    Benefits for the business

    • Checklists and templates to support a smoother transition to the new ITSM tool.
    • Opportunity to review and optimize processes as part of the ITSM tool implementation project. A new tool with the same old processes will not achieve expected benefits.
    • Ability to plan and scope the project to avoid or reduce last-minute chaos.
    • Better planning means better results – specifically, ensuring that the implementation takes into account targeted business benefits.
    • Improved project management, and therefore better cost and effort estimates, by identifying required tasks upfront. This also provides the opportunity to re-scope or adjust timelines based on estimated effort.
    • Higher end-user satisfaction by executing a well-organized ITSM tool implementation.

    Measured value from using this blueprint

    Use this guide as an example to calculate your total cost savings from the ITSM tool implementation project.

    Phase 1

    Identify Scope, Stakeholders, and Preliminary Timeline

    Time, value, and resources saved by using Info-Tech’s methodology to define scope and plan your project

    E.g. 2 FTEs * 6 days * $80,000/year = $4,000/-

    Phase 2

    Prepare to Implement Incident Management and Service Request Modules

    Time, value, and resources saved by using Info-Tech’s methodology to build your solution strategy and determine configurations

    E.g. 2 FTEs * 8 days * $80,000/year = $5,400/-

    Phase 3

    Create a Deployment Plan (Communication, Training, Rollout)

    Time, value, and resources saved by using Info-Tech’s methodology to establish an effective communications roadmap and deploy tool

    E.g. 2 FTEs * 6 days * $80,000/year = $4,000/-

    Total Savings

    Total Savings

    Phase 1 + Phase 2 + Phase 3 = $13,400

    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

    Phase 1 Phase 2 Phase 3

    Call #1: Define scope, roles, responsibilities and timeline.

    Call #2: Review your existing solution and challenges.

    Call #3: Plan ticket management and workflow implementation.

    Call #4: Plan data migration, knowledgebase setup, and integrations.

    Call #5: Plan the module rollout.

    Call #6: Create a communication plan.

    Call #7: Create a training plan.

    Call #8: Plan how you will deploy, monitor, and maintain the solution.

    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 8 calls over the course of 3 to 6 months.

    Phase 1

    Identify Stakeholders, Scope, and Preliminary Timeline

    Phase 1 Phase 2 Phase 3

    Identify Stakeholders, Scope, and Preliminary Timeline

    Prepare to Implement Incident Management and Service Request Modules

    Create a Deployment Plan (Communication, Training, Rollout)

    This phase will walk you through the following steps:

    1. Define scope
    2. Define roles and responsibilities
    3. Identify preliminary timeline

    Step 1.1

    Define scope

    Activities

    1.1.1

    Use the Project Charter Template to capture project parameters

    1.1.2

    Leverage the Implementation Checklist to guide your preparation

    1.1.3

    Review goals that drove the ITSM tool purchase

    1.1.4

    Interview ITSM staff to identify current tool challenges and support organizational change management

    1.1.5

    Identify the modules and features you will plan to implement

    1.1.6

    Determine if data migration is required

    This step will walk you through the following activities:

    • Define the scope of the implementation project
    • Establish the future processes and functionalities the tool will support

    This step involves the following participants:

    • CIO
    • IT Director/Manager
    • Service Manager
    • Project Manager and the project team

    Outcomes of this step

    • Specifying the implementation project
    • Identifying the business units that are needed to support the project
    • Defining the ongoing and future service management processes the tool will support

    1.1.1 Use the Project Charter Template to capture scope, stakeholders, and timeline as outlined in Phase 1

    Follow the instructions in Phase 1 (step 1.1, 1.2, and 1.3) to gather information needed to create a project charter to define project parameters.

    Specific subsections are listed below and described in more detail in the remainder of this phase.

    1. Project Overview: Includes deliverables, scope, milestones, and success metrics.
    2. Governance and Management: Includes roles, responsibilities, and resource requirements.
    3. Project Risks, Assumptions, and Constraints: Includes risks and mitigation strategies as well as any assumptions and constraints.
    4. Project Sign-Off: Includes IT and executive sign-off (if required).

    The image contains a screenshot of the Project Charter Template.

    Download the ITSM Tool Implementation Project Charter Template

    1.1.2 Leverage the Implementation Checklist to guide your preparation

    The checklist tabs align to each phase of this blueprint.

    • Phase 1 (Tab 1) – Identify Stakeholders, Scope, and Preliminary Timeline
    • Phase 2 (Tab 2) – Prepare to Implement Incident Management and Service Request Modules
    • Phase 3 (Tabs 3+4) – Prepare to Implement Additional ITSM Modules (e.g. Change Management)
    • Phase 4 (deployment section in each tab) – Create a Deployment Plan (Communication, Training, Rollout)

    The image contains screenshots from the Implementation Checklist.

    Download the ITSM Tool Implementation Checklist

    1.1.3 Review goals that drove the ITSM tool purchase

    Identify the triggers for the selection and implementation of your new ITSM tool.

    Whether this is your first ITSM tool or a replacement for your old tool, the project was likely triggered by pain points that must be addressed by the new tool to improve your service desk. Having a clear understanding of these pain points throughout the implementation of your new tool will help to prevent them from reoccurring.

    Common ITSM pain points include:

    1. Poor communication with end users on ticket status.
    2. Lack of SLA automation to escalate issues to the appropriate channels.
    3. Poor self-service options for end users to perform simple requests on their own.
    4. Undeveloped knowledgebase for users to find answers to common issues.
    5. Lack of reporting or mistrust in reporting data.
    6. Lack of automation, including ticket templates.
    7. Overcomplicated ticket categories resulting in categories being misused.
    8. Overconfiguration prevents future upgrades.
    9. Lack of integration with other tools.

    If you haven't already selected an ITSM tool, leverage the IT Service Management Selection Guide to select the right tool.

    Download the IT Service Management Selection Guide

    1.1.4 Plan to interview staff to support organizational change management

    Identify challenges with the existing tool and processes as well as potential objections to the new tool.

    Incorporate this feedback in the implementation to drive buy-in and a successful rollout.

    Implementing a new ITSM tool will force changes in how IT staff do their work:

    • At a minimum, it means learning a new interface.
    • It could also mean leveraging features that improve IT operations but could change the process or tasks for the staff.
    • Their input on the current tool and process challenges can be critical for the project.
    • Solving at least some of their challenges can help bring them onboard to use this tool properly and follow associated process changes.

    Info-Tech Insight

    Keep management in the loop through every stage of the implementation process. They are the ones who are paying for the software, so they need to be informed throughout implementation and feel that their needs and feedback are being heard to prevent pushback further into the implementation.

    1.1.5 Identify the modules and features you will plan to implement

    Consider these factors when deciding what modules and features you want to implement:

    • Specific ITSM modules based on the recommended order and any unique business requirements
    • Key features that drove the tool purchase and address key issues
    • High-level process changes needed to address challenges and realize expected benefits from the new ITSM tool (e.g. if a key goal was automated ticket routing based on categories, then the project needs to include developing a good categorization scheme)

    Recommended order for implementation:

    1. Incident Management and Service Request
    2. This is the core of service management and typically has the highest impact on the organization. Include knowledgebase development as part of this implementation.

    3. Change Management
    4. A foundational component of service management, it allows organizations to minimize disruptions to IT services when making changes to services and critical systems.

    5. Asset Management
    6. A foundational component of service management, it allows organizations to track their assets’ locations, how they are used, and when changes are made to them.

    1.1.6 Determine if data migration is required

    If you are switching from a previous ITSM tool, carefully weigh the pros and cons as well as the necessity of migrating historical transactional data before deciding to import it into the new tool.

    Importing your old transactional data will allow you to track metrics over time, which can be valuable for data analysis and reporting purposes.

    However, ask yourself what the true value of your data is before you import it.

    You will not get value out of migrating the old data if:

    • You have incomplete or inaccurate data (a high percentage of incidents did not have tickets created in the old system).
    • The categorization of your old tickets was not useful or was used inconsistently.
    • You plan on changing the ticket categorization in the new system.

    “Don’t debate whether you can import your old data until you’ve made sure that you should.”

    – Barry Cousins, Practice Lead at Info-Tech Research Group

    Info-Tech Insight

    If you decide to migrate your data, keep in mind that it can be a complex process and proper time should be budgeted for planning, structuring the data, and importing and testing it.

    Step 1.2

    Define roles and responsibilities

    Activities

    1.2.1

    Key internal roles and responsibilities

    1.2.2

    Key external roles and responsibilities

    This step involves the following participants:

    • CIO
    • IT Director/Manager
    • Service Manager
    • Project Manager and the project team

    Outcomes of this step

    • Decision on whether to hire professional services for the implementation
    • Clearly defined roles and responsibilities for the project

    1.2.1 Identify key internal roles and responsibilities

    Review the tasks outlined in the Implementation Checklist to help you identify appropriate roles and specific staff that will be needed to execute this project.

    Project Role

    Description

    RACI

    Assigned To

    Executive Sponsor

    Liaison with the executive team (the CIO would be a good candidate for this role).

    Accountable for project completion.

    Approves resource allocation and funding.

    A, C

    Name(s)

    Project Manager

    Manages the project schedule, tasks, and budget.

    May act as a liaison between executives and the project-level team.

    R

    Name(s)

    Product Owner

    Liaison with the vendor.

    SME for the new tool.

    Provides input to tool configuration decisions.

    Manages the tool post-implementation.

    R

    Name(s)

    Process Owners

    Define current processes.

    Provide input to identifying current-state process challenges to address and potential changes as part of the new tool implementation.

    R

    Name(s)

    Service Desk Manager

    Provides input to tool configuration decisions.

    Manages and trains service desk agents to use new tool and processes.

    R

    Name(s)

    ITSM Tool Core Users (e.g. Service Desk Technicians)

    Provide input to identifying current-state process challenges to address.

    Provide input to tool configuration decisions.

    C

    Name(s)

    RACI = Responsible, Accountable, Consulted, and Informed

    Assign individuals to roles through each step of the implementation project in the governance and management chart in the Project Charter Template.

    Download the Project Charter Template

    1.2.2 Key external roles and responsibilities

    Determine whether you will engage professional services for the implementation.

    There are three main ways to implement your ITSM tool

    Implemented in-house by own staff

    Implemented using a combination of your own staff and your ITSM tool vendor

    Implemented by professional services and your ITSM tool vendor

    DIY Implementation

    Adopting a DIY implementation approach can save money but could draw out your implementation timeline and increase the likelihood of errors. Carefully consider your integration environment to determine your resourcing capabilities and maturity.

    Vendor Implementation

    In most cases, your vendor will support or execute the technical implementation based on your requirements. Use this blueprint to help you define those requirements.

    Professional Services

    Opting for professional services may result in a shorter implementation period and fewer errors but may also deny your IT staff the opportunity to develop the skills necessary to maintain and configure the solution in the future.

    Clarify the role of the professional services vendor before acquiring their services to make sure your expectations are aligned. For example, are you hiring the vendor for tool installation, tool configuration, or tool customization or for training your end users?

    Step 1.3

    Identify preliminary timeline

    Activities

    1.3.1

    Identify preliminary internal target dates

    1.3.2

    Identify target dates for vendor involvement

    This step involves the following participants:

    • CIO
    • IT Director/Manager
    • Service Manager
    • Project Manager and the project team

    Outcomes of this step

    • Specifying the target dates for the implementation project

    1.3.1 Identify preliminary internal target dates

    Identify high-level start and end dates based on the following:

    • Existing process maturity
    • Process changes required (to address process issues or to realize targeted benefits from the new tool)
    • Data migration requirements (if any)
    • Information to prepare for the implementation (review the Checklist Tool)
    • Vendor availability to support implementation
    • Executive mandates that have established specific milestone dates

    Create an initial project schedule:

    • Review the remaining phases of this blueprint for more details on the implementation planning steps.
    • Review and update the Checklist Tool to suit your implementation goals and requirements.
    • Assign task owners and target dates in the Checklist Tool.

    Note: This is a preliminary schedule. Monitor progress as well as requirement changes, and adjust the scope or schedule as needed.

    Update the columns in the Checklist Tool to plan and keep track of your implementation project.

    1.3.2 Identify target dates for vendor involvement

    Plan when you'll be ready for the vendor and identify the key points for when the vendor will come in.

    Are dates already scheduled for tool installation/configuration/customization?

    If yes:

    • Clarify vendor expectations for those target dates (i.e. what do you have to have prepared in advance?).
    • Determine options to adjust dates if needed.

    If no:

    • Defer scheduling until you have reviewed and updated the Implementation Checklist. The checklist will help you determine your readiness for vendor involvement.

    Consider if the vendor will implement the ITSM tool in one go or if they will help setup the tool in stages. Keep in mind that ITSM implementation projects typically take anywhere from 9 weeks to 16 months and plan accordingly depending on the maturity of your processes and the modules and features you plan to implement.

    Use your internal target dates to estimate when you'll be ready for the vendor to set up the tool and implement the setting that you've defined.

    Phase 2

    Prepare to Implement Incident Management and Service Request Modules

    Phase 1Phase 2Phase 3

    Identify Stakeholders, Scope, and Preliminary Timeline

    Prepare to Implement Incident Management and Service Request Modules

    Create a Deployment Plan (Communication, Training, Rollout)

    This phase will walk you through the following steps:

    • Review your existing solution and challenges
    • Plan ticket management and workflow implementation
    • Plan data migration, knowledgebase setup, and integrations
    • Plan the module rollout

    Additional Info-Tech Research

    The Implementation Checklist Tool summarizes what you need to prepare for the implementation. If you need more assistance with developing the underlying ITSM processes, use the tools, templates, and guidance in these blueprints.

    Standardize the Service Desk

    Build core elements of service desk operations, including incident management and service request workflows, ticket categorization schemes, and ticket prioritization rules.

    Optimize the Service Desk With a Shift-Left Strategy

    Implement tools such as an improved knowledgebase and self-service portal to enable lower tier support staff and end users to resolve incidents or fulfill service requests.

    Incident and Problem Management

    Develop a critical incident management workflow and create standard operating procedures for problem management.

    Step 2.1

    Review your existing solution and challenges

    Activities

    2.1.1

    Configure, don’t customize, your solution to minimize risk

    2.1.2

    Review your existing process and solution challenges for opportunities for improvement

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    2.1.1 Configure your tool, don’t customize it

    Your tool may require at least some basic configurations to align with your processes, but in most cases customization of the tool is not recommended.

    Configuration

    Customization

    • Creating settings and recording reference data in the tool within the normal functionality of the tool.
    • Does not require changes to source code.

    Documentation of configurations is key.

    Failure to document configurations and the reasons for specific configurations will lead to:

    • Difficulty diagnosing incidents and problems.
    • Difficulty reconstructing the tool in the case of disaster recovery.
    • One administrator having all of the knowledge of configurations and taking it with them if they leave the organization.
    • Configurations that become useless in the future are maintained and lead to unnecessary work if documentation is not regularly reviewed.
    • Extending the functionality of the tool beyond what it was originally intended to do.
    • Requires manual changes to source code.

    Carefully consider whether a customization is necessary.

    • Over-customization of your ITSM tool code may lock you into your current version of the software by preventing future patches and upgrades, leaving you with outdated software.
    • Over-customization becomes particularly risky when your ITSM solution is integrated with other tools, as a loss in functionality of your ITSM tool resulting from over-customization may cause disruptions across the business.
    • If your selected ITSM solution doesn’t do something you think you need it to do, carefully evaluate whether you really need that customization and if the trade-off of potentially limiting future innovation is worth it.

    Case Study

    Consider the consequences of over-customizing your solution.

    INDUSTRY: Education

    SOURCE: IT Director

    Situation

    Challenge

    Resolution

    A few years ago, the service management office at the university decided to switch ITSM tools, from Computer Associates to ServiceNow.

    They wanted the new tool to behave similarly to what they had previously, so they made a lot of customized code changes to ServiceNow during implementation.

    As a result of the customizations, much of the functionality of the tool was restricted, and the upgrades were not compatible with the solution.

    The external consultants who performed the customizations and backend work did not document their changes, leaving the service management team without an understanding of why they did what they did.

    The service management team is working with ServiceNow to slowly unravel the custom code to try to get the solution back to having out-of-the-box functionality, with the ability to be upgraded.

    It has been challenging to do this work without disrupting the functionality of the tool.

    Over-customization led to the organization paying for features they couldn’t use and spending more time and resources down the road to try to reverse the changes.

    2.1.2 Review your existing process to identify opportunities for improvement

    Documenting your existing processes is an effective method for also reviewing those processes and identifying inefficiencies. Take advantage of this project to fix your process issues.

    1. Document your existing workflows for incident management and service requests.
    2. Review your workflows to identify opportunities to optimize through process refinement (e.g. clarifying escalation guidelines) or by leveraging features in your new ITSM tool (e.g. improved workflow automation).
    3. Similarly, review the challenges identified through stakeholder interviews: is there an opportunity address those challenges through process changes or leveraging your new ITSM tool?
    4. Address those challenge and issues as you execute the tasks outlined in the Implementation Checklist Tool. For example, if inconsistent ticket routing was identified as a challenge due to a vague categorization scheme, that’s a driver to review and update your scheme rather than just carry forward your existing scheme.

    Regardless of your existing ITSM maturity, this is an opportunity to review and optimize existing processes. Even the most-mature organizations can typically find an area to improve.

    Case Study

    Reviewing and defining processes before the implementation can be a project in itself.

    INDUSTRY: Defense

    SOURCE: Anonymous

    Situation

    Challenge

    Resolution

    The organization was switching to a new ITSM tool. To prepare for the implementation, they gathered stakeholders, held steering committee meetings, and broke down key processes, teams, and owners before even meeting with the larger group.

    They used a software tool called InDesign to visibly map service requests and incidents and determine who owned each process and where the handoffs were.

    The service catalog also needed to be built out as they were performing certain services that didn’t relate to anything in the catalog.

    The goal for the implementation was to have it completed within a year, but it ended up going over, taking 15 to 16 months to complete.

    Most of the time was spent identifying processes upfront before configuring the tool. There were difficulties defining processes as well as agreeing on who owned a process or service.

    There were also difficulties agreeing upon who the valid stakeholders were for processes, as groups were siloed.

    The major obstacles to implementation were therefore people and process, not the product.

    New processes were introduced, and boundaries were placed around processes that were being done in the past that weren’t necessary.

    Once the groups were able to agree upon process owners, the tool configuration and implementation itself did not pose any major difficulties.

    After the implementation, the tool was continually improved and sharpened to adapt to processes.

    Step 2.2

    Plan ticket management and workflow implementation

    Activities

    2.2.1

    Define ticket classification values

    2.2.2

    Define ticket templates for common incident types and service requests

    2.2.3

    Plan your ticket intake channels

    2.2.4

    Design a self-service portal

    2.2.5

    Plan your knowledgebase implementation in the new tool

    2.2.6

    Design your ticket status notification processes and templates

    2.2.7

    Identify required user accounts, access levels, and skills/ service groups

    2.2.8

    Review and update your workflows and escalation rules

    2.2.9

    Identify desired reporting and relevant metrics to track

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    Outcomes of this step

    Tool is designed and configured to support service desk processes and organization needs.

    Checklist overview

    The ITSM Tool Implementation Checklist will help you estimate resources required to support demand, based on your ticket volume.

    TAB 2

    TAB 3

    TAB 4

    Incident and Service Modules Checklist

    Change Management Modules

    Asset Management Modules

    The image contains a screenshot of the ITSM Tool Implementation Checklist, tab 2. The image contains a screenshot of the ITSM Tool Implementation Checklist, tab 3. The image contains a screenshot of the ITSM Tool Implementation Checklist, tab 4.

    How to follow this section:

    The following slides contain a table that explains why each task in the module matters and what needs to be considered. Complete the checklist modules referring to this section.

    2.2.1 Define ticket classification values

    Ticket classification improves reporting, workflow automation, and problem identification.

    Review your existing ticket classification values to identify what to carry forward, drop, or change. For example, if your categorization scheme has become too complex, this is your opportunity to fix it; don’t perpetuate ineffective classification in the new tool.

    Task

    Why this matters

    Ticket Types (e.g. incident, service request, change)

    In particular, separating incidents from service requests supports appropriate ticket prioritization and resourcing; for example, an incident typically should be prioritized, and service requests can be scheduled.

    Categories (e.g. network, servers)

    An effective categorization scheme can help identify ticket assignment and escalation (e.g. network tickets would be escalated to the network team), and potentially automate ticket routing.

    Resolution Codes

    Indicates how the ticket was resolved (e.g. configuration change). Supports another layer of trends reporting and data to support problem identification.

    Status Values

    Shows what status the ticket is currently in (e.g. if the ticket has been opened or assigned to an agent, if it is in progress or has been resolved).

    2.2.2 Define ticket templates for common incident types and service requests

    Ticket templates are the backbone of automation. A common complaint is that tickets take too much time. However, a little planning can reduce the time it takes to create a ticket to less than a minute.

    Task

    Why this matters

    Identify common recurring tickets that would be good candidates for using ticket templates (e.g. common service requests and incidents).

    Some common recurring tickets such as password reset, new laptop, and login requests would be great candidates to create ticket templates for. Building a deck of standard rules to follow for common tickets saves time and reduces the number of tickets generated.

    Design ticket templates and workflows for common tickets (e.g. fields to auto-populate as well as routing and secondary tickets for onboarding requests).

    Differentiating between recurring ticket types and building pre-defined templates not just saves time but can also have major impact on how service is delivered as this will also help separate tickets. Creating these templates beforehand will also let you communicate effectively with the users at a time when all hands need to be on deck.

    2.2.3 Plan your ticket intake channels

    Consider possible ticket intake channels and evaluate their relevance to your organization.

    Task

    Why this matters

    Decide on ticket intake channels (e.g. phone, email, portal, walk-ups).

    Each standard intake channel serves its own purposes and can be extremely valuable under different circumstances. For example, walk-ins may be inefficient but necessary for critical incidents.

    If using email, identify/create the email account and appropriate permissions.

    Email works well if it automatically creates a ticket in your ticketing system, but users often don’t provide enough information in unstructured emails. Use required fields and ticket templates to ensure the ticket is properly categorized.

    If using phone, identify/create the phone number and appropriate integrations.

    Maintain the phone for users from other locations and for critical incidents but encourage users who call in to submit a ticket through the portal.

    If using a portal, determine if you will leverage the tool's portal or an existing portal.

    The web portal is the most efficient intake method, but ensure it is user friendly before promoting it.

    If using chat, determine whether you will use the tool's chat or an existing chat mechanism and whether integrations are needed.

    Another way to improve support experience for your customers is through live chat. This gives your customers an easy way to reach you at the exact moment they have questions or issues they can't fix.

    2.2.4 Design a self-service portal

    Map your processes to the tool by defining your ticket input, categories, escalations, and workflows.

    Don’t forget about the client-facing side of the solution. It is important to build a self-serve portal that has an easy-to-use interface where the user can easily find the category for the help they’re looking for. It is also necessary to educate the users on where to find the portal or how to access it.

    Task

    Why this matters

    Identify components to include (e.g. service request, incident, knowledgebase).

    Identify the categories you want the users to be able to access in the portal. Finding the right balance of components to include is very important to make it easy for your users to find all the relevant information they are looking for. This could mean fewer tickets.

    Plan the input form for service requests and incidents (e.g. mandatory fields, optional fields, drop-down lists).

    Having relevant and specific fields helps to narrow down your user’s issues and provides more information on how to allocate these tasks among the service desk resources and reduce time to further investigate the issues.

    If service catalog will be attached to the ITSM tool, define routing and workflows; if there is no existing service catalog, start a separate project to define it (e.g. services, SLAs).

    A centrally defined guide enables a uniform quality in service and clarifies the responsible tier for the ticket. Identify services that will be included in the catalog, and if the information is attached to the ITSM tool, plan for how will the routing and workflows be structured.

    Plan design requirements (e.g. company branding).

    Ensure that the portal is aligned with the company’s theme and access format. Work with the vendor to customize the branding on the tool, design requirements, images.

    2.2.5 Plan your knowledgebase (KB) implementation in the new tool

    Evaluate how onerous KB migration will be for you. Is this an opportunity to improve how the KB is organized?

    Task

    Why this matters

    Define knowledgebase categories and structure.

    Establishing knowledgebase structures or having them separated into categories makes it easy for your clients to find them (e.g. do they align with ticket categories?).

    Identify existing knowledgebase articles to add to the new tool.

    Review existing knowledgebase articles at a high level (e.g. Do you carry forward all existing articles? Take an opportunity to retire old articles?).

    Define knowledgebase article templates.

    Having standardized templates makes it an easy read and will increase its usage (e.g. all knowledgebase articles for recurring incidents will follow the same template).

    Build knowledgebase article creation, usage, and revision workflows.

    Decide how new knowledgebase articles will be built and added to the tool, how it will be accessed and used, and also any steps necessary to update the articles.

    Plan a knowledgebase feedback system.

    For example, include a comments section, like buttons, and who will get notified about feedback.

    2.2.6 Design your ticket status notification processes and templates

    Task

    Why this matters

    Identify triggers for status notifications. Balance the need for keeping users informed versus notifications being treated as spam.

    Identify when and where the users are informed to make sure you are not under or over communicating with them. Status notifications and alerts are a great way to set or reset expectations to your users on the delivery or resolution on their tickets. For example, auto-response for a new ticket, or status updates to users when the ticket is assigned, solved, and closed.

    If using email notifications, design email templates for each type of notification.

    Creating notification templates is a great way to provide standardized service to your clients and it saves time when a ticket is raised. For example, email templates for new ticket, ticket updated, or ticket closed.

    Plan how you will enable users to validate the ticket or resolve request without causing the ticket to reopen.

    For example, in the ticket solved template, provide a link to close the ticket, and ask the user to reply only if they wish to re-open the ticket (i.e. if it's not resolved). May require consulting with the ITSM tool vendor.

    Decide if customer satisfaction surveys will be sent to end users after their ticket has been closed.

    Discuss if this data would be useful to you if captured to improve/modify your service.

    If customer satisfaction surveys will be used, design the survey.

    Discuss what data would be useful to you if captured and create survey questionnaires to capture that data from your clients. For example, how many questions, types of questions, whether sent for every ticket or randomly.

    2.2.7 Identify required user accounts, access levels, and skills/service groups

    Task

    Why this matters

    Define Tier 1, 2, and 3 roles and their associated access levels.

    Having pre-established roles for different tiers and teams is a great way to boost accountability and also helps identify training requirements for each tier. For example, knowledgebase training for tier 1 & 2, reporting/analytics for IT manager.

    Identify skill groups or support teams.

    Establishing accountability for all the support practices in the service desk is important for the tickets to be effectively distributed among the functional individuals and teams. Identifying the responsibilities of groups help execute shift-left strategy.

    Identify required email permissions for each role.

    For example, define which roles get permissions to include status updates or other ticket information in their emails or to support automated notifications and other integrations with email.

    Determine how you will import users into the new tool.

    Identify the best way to migrate your users to the new tool whether it be by importing from Active Directory or the old ITSM tool, etc.

    2.2.8 Review and update your workflows and escalation rules

    Task

    Why this matters

    Document your future-state incident and service request workflows that will incorporate the above planning as well as improvements supported by the new tool.

    Document your workflows and review it to make sure it’s accurate and also to help you with communicating process expectations to all the stakeholders.

    Review the future-state workflows.

    This helps you validate that the planned changes meet your goals and identify any additional required changes.

    Update ticket classification values, templates, and ticket intake as needed based on the future-state workflows.

    Documenting your process might uncover additional requirements for classification, templates, etc. Ensure that the classification templates and related parameters align with the workflows.

    Identify opportunities to further automate workflows by leveraging the new tool.

    The process of reviewing the workflows often helps identify manual processes, labor intensive processes, very repetitive processes, etc. These can be opportunities to further automate your processes.

    2.2.9 Identify desired reporting and relevant metrics to track

    Documentation of key metrics of service desk performance and end-user satisfaction that you wish to improve through the new solution is key to evaluate the success of your implementation.

    Task

    Why this matters

    Define the metrics you will track in the new ITSM tool.

    It is critical to ensure that your tool will be able to track necessary metrics on KPIs from the start and that this data is accurate and reliable so that reporting will be relevant and meaningful to the business. Whether you use your own tool for tracking metrics or an external tool, ensure that you can get the internal data you need from the ITSM tool. This may include measures of Productivity (e.g. time to respond, time to resolve), Service (e.g. incident backlog, customer satisfaction), and Proactiveness (e.g. number of knowledgebase articles per week).

    Determine what reports you want to generate from data collected through the tool.

    It’s not enough to simply set up metrics, you have to actually use the information. Reports should be analyzed regularly and used to manage costs and productivity, improve services, and identify issues. Ensure that your service desk team contributes to the usefulness of reporting by following processes such as creating tickets for every incident and request, categorizing it properly, and closing it after it’s resolved with the proper resolution code.

    Identify the information and metrics to include in the ITSM tool's dashboards.

    A dashboard helps drive accountability across the team through greater visibility. Decide what will be reported on the dashboard. For example, average time to resolution, number of open tickets with subtotals for each priority, problem ticket aging.

    Step 2.3

    Plan data migration and integrations

    Activities

    2.3.1

    Create a data migration and archiving plan

    2.3.2

    Identify and plan required integrations

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    Outcomes of this step

    • Decisions made around data migration, integrations, automation, and reporting.
    • ITSM Tool Implementation Checklist

    2.3.1 Create a data migration and archiving plan

    Task

    Why this matters

    Document your future-state incident and service request workflows that will incorporate the above planning as well as improvements supported by the new tool.

    Document your workflows and review them to make sure they’re accurate and also to help you with communicating process expectations to all the stakeholders.

    Review the future-state workflows.

    This helps you validate that the planned changes meet your goals and identify any additional required changes.

    Update ticket classification values, templates, and ticket intake as needed based on the future-state workflows.

    Documenting your process might uncover additional requirements for classification, templates, etc. Ensure that the classification templates and related parameters align with the workflows.

    Identify opportunities to further automate workflows leveraging the new tool.

    The process of reviewing the workflows often helps identify manual processes, labor-intensive processes, very repetitive processes, etc. These can be opportunities to further automate your processes.

    2.3.2 Identify and plan required integrations

    Consider and plan for any necessary integrations with other systems.

    A major component of the implementation that should be carefully considered throughout is if and how to integrate your ITSM tool with other applications in the environment.

    Task

    Why this matters

    Identify the systems you need to integrate with your ITSM tool (e.g. asset discovery tools, reporting systems).

    Regardless of whether your solution will be configured and installed on-premises or as a SaaS, you need to consider the underlying technology to determine how you will integrate it with other tools where necessary.

    Businesses may need to integrate their ITSM tool with other systems including asset management, network monitoring, and reporting systems to make the organization more efficient.

    Determine how data will flow between systems.

    Carefully evaluate the purpose of each integration. Clients often want their ITSM tool to be integrated with all of the available data in another application when they only need a subset of that data to be integrated.

    Consider not only which systems you need to integrate with your ITSM tool but also who the owners of those systems are and which way the data needs to flow.

    Plan the development, configuration, and testing of integrations.

    As with other aspects of the implementation, configure and test the integrations before going live with the tool.

    Step 2.4

    Plan the module rollout

    Activities

    2.4.1

    Repeat the methodology for additional ITSM modules, using the Checklists as a guide

    2.4.2

    Leverage these blueprints to help you implement change and asset management modules

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    Outcomes of this step

    Identify and plan for additional modules and features to be implemented

    2.4.1 Repeat the methodology for additional ITSM modules, using the Checklists as a guide

    The preparation completed in Phase 1 and 2 to this point provide a foundation for additional ITSM modules.

    This blueprint starts with the incident management and service request modules as those are typically implemented first since they are the most impactful to day-to-day IT service management.

    In addition, the methodology outlined in Phase 1 and 2 to this point provides a model to follow for additional ITSM modules:

    • If you did not already account for additional modules in Phase 1, then repeat the steps in Phase 1 to define scope, stakeholders, and timeline.
    • The Implementation Checklist Tool provides tabs for Change Management and Asset Management to outline the specific details for those topic areas, but they follow the same high-level steps as Phase 2 (e.g. review existing processes, design relevant workflows).
    • If you are planning to implement other modules (e.g. Problem Management), create additional tabs in the Implementation Checklist Tool as needed, using the existing tabs as a base.
    The image contains screenshots of the ITSM checklists.

    2.4.2 Leverage these blueprints to help you implement change and asset management modules

    The Implementation Checklist Tool summarizes what you need to prepare for the implementation. If you need more assistance with developing the underlying ITSM processes, use the tools, templates, and guidance in the blueprints below.

    Optimize IT Change Management

    Define change management workflows, key roles, and supporting elements such as request-for-change forms based on best practices.

    Implement Hardware Asset Management

    Create an SOP and associated process workflows to streamline and standardize hardware asset management.

    Implement Software Asset Management

    Build on a strong hardware asset management program to also properly track and manage software assets. This includes managing software licensing, finding opportunities to reduce costs, and improving your software audit readiness.

    Phase 3

    Create a Deployment Plan (Communication, Training, Rollout)

    Phase 1Phase 2Phase 3

    Identify Stakeholders, Scope, and Preliminary Timeline

    Prepare to Implement Incident Management and Service Request Modules

    Create a Deployment Plan (Communication, Training, Rollout)

    This phase will walk you through the following steps:

    1. Create a communication plan (for IT, users, and business leaders)
    2. Create a training plan
    3. Plan how you will deploy, monitor, and maintain the solution

    ITSM Tool Training Schedule

    ITSM Tool Deployment Plan Template

    Use the template to document and plan the communications and training needs prior to deployment of the new tool.

    The image contains a screenshot of the ITSM Tool Training Schedule.

    Use the deployment plan template to document the strategy and decisions made for making the transition to the new ITSM tool.

    The image contains a screenshot of the ITSM Tool Deployment Plan Template.

    Download the ITSM Tool Training Schedule

    Download the ITSM Tool Deployment Plan Template

    Step 3.1

    Create a communication plan (for IT, users, and business leaders)

    Activities

    3.1.1

    Ensure there is strong communication from management throughout the implementation and deployment

    3.1.2

    Base your communications timeline on a classic change curve to accommodate natural resistance

    3.1.3

    Communicate new processes with business leaders and end users to improve positive customer feedback

    This step involves the following participants:

    1. CIO/IT Director
    2. IT Manager
    3. Service Manager

    Outcomes of this step

    Plan for communicating the change with business executives, service desk agents, and end users.

    3.1.1 Ensure there is strong communication from management throughout the implementation and deployment

    A common contributing factor for unsuccessful implementation is a lack of communication around training, transitioning, and deploying the new tool.

    Common Pitfall:

    Organizational communication and change management should have been ongoing and tightly monitored throughout the project. However, cut-over is a time in which critical communication regarding deployment and proper user training can be derailed when last-minute preparations take priority. Not only will general user frustration increase, but unintended process workarounds will emerge, eroding system effectiveness.

    Mitigating Actions:

    Deliver training for end users that will be engaged in testing. For all other users, deliver training prior to go-live to avoid the risk of training too early (where materials may not be ready or users are likely to forget what was learned). If possible, host quick refresher training a week or two prior to go-live.

    Aim to communicate the upcoming go-live. The purpose of communication here is to reiterate expectations, complexities, and ramifications on business going forward. Alleviate performance anxiety by clearly stating that temporary drops in productivity are to be expected and that there will be appropriate assistance throughout the transition period.

    Transition: Have the project/program manager remain on the project team for some time after deployment to oversee and assure smooth transition for the organization.

    Complete training: Have a clear plan for training those users that were missed in the first round of training as well as a plan for ongoing training for those that require refresher training, for new joiners to your organization, and for any training requirements that result from subsequent upgrades.

    3.1.2 Base your communications timeline on a classic change curve

    It’s important to communicate the change ahead of the implementation, but also to reinforce that communication after implementation to recover from any resistance that occurs through the implementation itself.

    Stages in a typical change curve:

    1. Change is announced. Some people are skeptical and resistant, but others are enthusiastic. Most people are fence sitters; if they trust senior leadership, they will give the benefit of the doubt and expect change to be good.
    2. Positive sentiment declines as implementation approaches. Training and other disruptions take people’s time and energy away from their work. Project setbacks and delays take credibility away from project leaders and seem to validate the efforts of saboteurs and skeptics.
    3. Overall sentiment begins to improve as people adjust and see real progress made. Ideally, early successes or quick wins neutralize saboteurs and convert skeptics. At the very least, people will begin to accept and adapt to new realities.
    4. If the project is successful and communication is reinforced after implementation, sentiment will peak and level out over time as people move on to other projects.

    The image contains a diagram of a change curve.

    1. Honeymoon of “Uninformed Optimism”: Tentative support and enthusiasm for change before people have really felt or understood what it involves.
    2. Backlash of “Informed Pessimism” (leading to “Valley of Despair”): People realize they’ve overestimated the benefits (or how soon they’ll be achieved) and underestimated the difficulty of change.
    3. Valley of Despair and beginning of “Hopeful Realism”: Sentiment bottoms out and people begin to accept the difficulty (or inevitability) of change.
    4. Bounce of “Informed Optimism”: More optimism and support when people begin to see bright spots and early successes.
    5. Contentment of “Completion”: Change has been successfully adopted and benefits are being realized.

    3.1.3 Communicate new processes

    1. Communicate with business unit leaders and users:
    • Focus on the benefits for end users to encourage buy-in for the change.
    • Include preliminary instructions with a date for training sessions.
  • Train users:
    • Teach users how to contact the service desk and submit a ticket.
    • Set expectations for IT’s response.
    • Record all your training sessions so it can used for recursive training.
  • Enforce:
    • IT must point users toward the new process, but ad hoc requests should still be expected at first. Deal with these politely but encourage all employees to use the new service desk ticketing process, if applicable.
  • Measure success:
    • Continue to adjust communications if processes aren’t being followed to ensure SLAs can be met and improved.

    “Communicate with your end users in phase 1 to let them know what will be changing, get feedback and buy-in, and inform them that training will be happening, then ensure you train them once the tool is installed. A lot of times we’ll get our tool set up but people don’t know how to use it."

    – Director of ITSM Tools

    Info-Tech Insight

    If there is a new process for ticket input, consider using a reward system for users who submit a ticket through the proper channel ;(e.g. email or self-serve portal) instead of their old method (e.g. phone). However, if a significant cultural change is required, don’t expect it to happen right away.

    Step 3.2

    Create a training plan

    Activities

    3.2.1

    Target training session(s) to the specific needs of your service desk, service groups, IT managers

    3.3.1

    Provide training (tool/portal and process changes)

    3.4.1

    Choose an appropriate training delivery method that will focus on both process and tool

    This step involves the following participants:

    • IT Director
    • Project Manager
    • Service Desk Manager

    Outcomes of this step

    • Training modules for different users of the tool.
    • Assignment of training modules to users and schedule for completion.

    3.2.1 Target training session(s) to the specific needs of your service desk and IT staff

    Create targeted role-based training programs for your service desk analysts; they care about the portion of the solution they are responsible for, not the functionality that is irrelevant to their job.

    Create and execute a role-based training program by conducting training sessions for targeted groups of users, training them on the functions they require to perform their jobs.

    Use a table like this one to help identify which roles should be trained on which tasks within the ITSM tool.

    The image contains a table as an example of identifying which roles should be trained within the ITSM tool.

    The need for targeted training:

    • IT personnel may challenge the need for training. They may feel they don’t require training on the use of tools or that they don’t have time to dedicate to training when there is so much work to be done.
    • Providing targeted training focused on only the functions of the solution that each tier is responsible for can help to overcome that resistance.
    • Targeted training may include basic training for level 1 technicians and more advanced in-depth training for administrators, power users, or level 2/3 technicians.

    Info-Tech Insight:

    Properly trained users promote adoption and improve results. Always keep training materials updated and available. New employees, new software integration, and internal promotions create opportunities for training employees to align the ITSM tool with their roles and responsibilities.

    3.2.2 Provide training

    Training must take place before deployment to ensure that both your service desk agents and end users will use the tool in the way it was intended and improve end-user satisfaction.

    • Implementing a new ITSM tool will likely bring with it at least some degree of organizational and cultural change. It’s important to manage that change through proper training. Your training needs will vary depending on the maturity of the organization and the amount of cultural and process change being implemented.
    • If this is your first ITSM solution with many new changes for staff to take on board, it will be important to dedicate training time not only before deployment but also several months after the initial installation, to allow staff to gain more experience with the new tool and processes and formulate questions they may not think to ask during implementation.
    • A training plan should take into account not only training needs for the implementation project but also any ongoing training requirements that may be required. This may include:
      • Training for new personnel.
      • Training on any changes to the tool.
      • Training on any new processes the tool will support.
    • Better agent training will lead to better performance and improved end-user satisfaction.

    The image contains a screenshot of a graph to demonstrate training hours and first contact resolution.

    The blue graph line charts new-agent training hours against first contact resolution and the orange graph line charts the trendline for the dataset.

    Source: MetricNet, 2012

    3.2.3 Choose an appropriate training delivery method

    Training should include use cases that focus on not only how the tool’s interface works but also how the tool should be used to support process activities.

    1. Training through use cases highlights how the tool will support the user in role-based tasks.
    2. If new processes are being introduced along with the tool, training should cover both in an integrated way.
    3. Team leadership and management commitment ensures that all agents take their training seriously and are prepared for all use cases by the deployment date.

    Trainer-led sessions:

    Self-taught sessions:

    • May take the form of onsite or video training.
    • Vendor may train administrators or managers, who will later train remaining staff.
    • Allows for interaction with the trainer and greater opportunity to ask questions.
    • Difficult for large organizations with many users to be trained.
    • Delivered via computer-based training applications, typically through a web browser.
    • May include voice training sessions combined with exercises and quizzes.
    • More feasible for large, distributed organizations with less flexible schedules.

    Info-Tech Insight:

    Ensure that the training demonstrates not only how the tool should be used, but also the benefits it will provide your staff in terms of improved efficiency and productivity. Users who can clearly see the benefits the tool will provide for their daily work will accept the tool more readily and promote it across the organization.

    Step 3.3

    Plan how you will deploy, monitor, and maintain the solution

    Activities

    3.3.1

    Plan the transition from your old tool to ensure continual functionality

    3.3.2

    Choose a cut-over approach that works for you

    3.3.3

    Deploy the solution and any new processes simultaneously to ease the transition

    3.3.4

    Have a post-deployment support plan in place

    3.3.5

    Monitor success metrics defined in Phase 1

    This step involves the following participants:

    • IT Director
    • Project Manager
    • Service Desk Manager

    Outcomes of this step

    Deployment plan, including a plan for cut-over from the old tool (if applicable), release of the new tool, and post-deployment support and maintenance of the tool.

    3.3.1 Plan the transition from your old tool to ensure continual functionality

    If you will have a transitional period during which the current tool will be used alongside the new tool, develop a clear plan for the transition to ensure continued service for your end users.

    • If there will be an interim period during which only some aspects of the new ITSM tool are functional, you will need to determine how the new system and old systems will work together for that period of time. This may require creating interfaces as well as providing user documentation and/or SOPs on how the business processes will operate during the interim period.
    • Cut-over is the period during which the changeover to the new system occurs. Cut-over activities need to be tightly choreographed for a successful deployment. If improperly planned, chaos may erupt when unforeseen issues are encountered during deployment, the deployment may be jeopardized, and the organization may encounter costly interruptions to its daily operations.
    • Many organizations may leave any open tickets in the old tool until they are closed, which requires that tool run alongside the new tool for a transitional period. In this case, it is necessary to create guidelines around how long the open tickets will remain in the old system and ensure there is clear communication around these processes.

    Be prepared for the transition:

    1. Create a robust cut-over plan that includes when the old tool will be decommissioned, what activities are necessary during the cut-over, and what the contingency plan is in case of unforeseen issues.
    2. Plan for and perform mock cut-overs to establish the timeline and dependencies for all steps that need to be performed to successfully complete the changeover. Do this to avoid any surprises or delays during the true cut-over period.
    3. Establish cut-over logistics: Create a schedule for resources to work in shifts to avoid burn-out during cut-over, which can lead to lapses in judgment and easily avoidable mistakes. Allocate dedicated workspaces for cut-over activities, e.g. “war rooms” for the triage of issues.

    3.3.2 Choose a cut-over approach that works for you

    Approaches and insights from three case studies

    Case Study #1

    Case Study #2

    Case Study #3

    On day one we started recording all new incidents in the new tool, and everything that was open in the old tool remained open for about one month. At that point we transferred over some open incidents but closed old incidents with the view that if anyone really wanted something done that hadn’t been yet, they could re-submit a ticket.

    – Brett Andrews,

    Managing Director at BAPTISM Consultancy

    It made sense for us to start fresh with the new system. We left all of the old tickets in the old system and started the new system with ticket #1. We only had about a dozen open tickets in the old system so we left them there and ran the two tools side by side until those were closed.

    – CIO, Publishing

    It depends on the client and the size of their service desk as well as the complexity of their data and whether they need their old data for reporting. If there are only a dozen open tickets, they can manually move those over easily, and decide whether they want to migrate their historical data for reporting purposes.

    – Scott Walling,

    Co-Founder at Monitor 24-7 Inc.

    3.3.3 Deploy the solution and any new processes simultaneously to ease the transition

    Follow a deployment plan for introducing new processes alongside the new tool to ensure changes to both process and technology are adopted simultaneously.

    If you’re introducing new processes alongside the new tool, it’s important to maintain the link between process and tool. Typically, the processes and tool should be deployed simultaneously unless there is a strong reason not to do so.

    Deployment can be done as a big-bang or phased approach. The decision to employ a phased deployment depends on the number and size of business units the tool will support, as well as the organization’s geography and infrastructure (deployment locations).

    Before deployment, conduct readiness assessments to understand whether:

    The people are ready to accept the new system (have received the proper training and communications and understand how their jobs will change when the switch is flipped).

    The technology is ready (test results are favorable, workarounds and a plan for closure have been identified for any open defects, and the system is performing as expected).

    The data is ready (data for final conversion has been cleansed, and all conversions have been rehearsed).

    The post-deployment support model is ready (infrastructure and technical support is in place, sites are ready, knowledge transfer has been conducted with the support organization, and end users understand procedures for escalation of issues).

    3.3.4 Have a post-deployment support plan in place

    Ensure that strong internal support for the project and tool will continue after deployment.

    The stabilization period after a new software deployment can last between three and nine months, during which there may be continued training needs and fine-tuning of processes. Internal support from project leaders within your organization will be critical to recover from any dip in operational efficiency and deliver the benefits of the tool.

    Consider the following to prepare better for your support plan:

    What are the roles and responsibilities for ongoing tool administration support?

    What level of support will exist to assist service desk staff after deployment?

    How much time will project team resources devote to tackling upcoming issues and assisting with ongoing support?

    Who will be responsible for ongoing training needs and documentation?

    If your organization is spread across multiple locations, what level of support/assistance will be available at each site?

    How will new code releases or system upgrades be managed and communicated?

    Info-Tech Insight:

    Deployment is only the first step in the system lifecycle. Full benefit realization from the tool requires ongoing investment and learning to be sustained. Unless processes and training are updated on an ongoing basis, benefits gained will start to decrease over time. If your service desk efficiency stagnates at the level it was at prior to implementation, the tool has failed to serve its objective.

    Establish ongoing tool maintenance, improvement structures, and processes

    People, processes, and organizations change over time, and your ITSM tool will need to change to meet expectations.

    Develop and execute a plan for the maintenance of the solution and its infrastructure components.

    Include periodic reviews against business needs and operational requirements (e.g. patches, upgrades, and risk and security requirements).

    For maintenance updates, use the change management process and assess how an activity will impact solution design, functionality, and business processes.

    For major changes that result in significant change in current designs, functionality, and/or business processes, follow the development process used for new systems.

    Ensure that maintenance activities are periodically analyzed for abnormal trends indicating underlying quality or performance problems, cost/benefit of major upgrade, or replacement in lieu of maintenance.

    Assign responsibility for ongoing maintenance. Hold regular meetings for the following activities:

    1. Inspect data and reports.
    2. Assess whether you’re meeting SLAs.
    3. Predict any upcoming changes that may impact ticket volume (e.g. a new operating system or security patch).
    4. Create new ticket templates for recurring or upcoming issues.
    5. Create new knowledgebase articles.
    6. Determine whether ticket categories are being used correctly.
    7. Ask team if there are any problems with the tool.

    3.3.5 Monitor success metrics defined in Project Charter

    Revisit your goals for the solution and assess if they are being met by evaluating current metrics. If your goals have not yet been met, re-evaluate how to ensure the tool will deliver value.

    Sample High-Level Goals:

    1. Improved service desk efficiency
    2. Improved end-user satisfaction
    3. Improved self-service options for end users
    4. Improved data and reporting capabilities

    Sample Metric Descriptions

    Baseline Metric

    Goal

    Current Metric

    Increased ticket input through email versus phone

    50% of tickets submitted through phone

    10% of tickets submit through phone

    Reduced ticket volume (through improved self-serve capabilities)

    1,500 tickets per month

    1,200 tickets per month

    Improved first call resolution (through increased efficiency and automation)

    50% FCR

    60% FCR

    Improved ability to meet SLAs (through automated escalations and prioritization)

    5 minutes to log a ticket

    1 minute to log a ticket

    Improved time to produce reports

    3 business days

    1 business day

    Improved end-user satisfaction

    60% satisfied with services

    75% satisfied

    Related Info-Tech Research

    Optimize IT Change Management

    Define change management workflows, key roles, and supporting elements such as request-for-change forms based on best practices.

    Standardize the Service Desk

    Build core elements of service desk operations, including incident management and service request workflows, ticket categorization schemes, and ticket prioritization rules.

    Optimize the Service Desk With a Shift-Left Strategy

    Implement tools such as an improved knowledgebase and self-service portal to enable lower tier support staff and end users to resolve incidents or fulfill service requests.

    Incident and Problem Management

    Develop a critical incident management workflow and create standard operating procedures for problem management.

    IT Service Management Selection Guide

    Identify the best-of-breed solution to make the most of your investment and engage the right stakeholders to define success.

    Analyze Your Service Desk Ticket Data

    Develop a framework to track metrics, clean data, and put your data to use for pre-defined timelines.

    Bibliography

    Adiga, Siddanth. “10 Reasons Why ITSM Implementations Fail.” Could Strategy, 6 May 2015. Web.

    Hastie, Shane, and Stéphane Wojewoda. “Standish Group 2015 Chaos Report.” InfoQ, 4 October 2015. Web.

    “How to Manage Change in the Implementation of an ITSM Software.” C2, 20 April 2015. Web.

    Lockwood, Meghan. “First Look: Annual ServiceNow Insight and Vision Executive Summary [eBook].” Acorio, 31 October 2019. Web.

    Mainville, David. “7 Steps to a Successful ITSM Tool Implementation.” Navvia, 2012. Web.

    Rae, Barclay. “Preparing for ITSM Tool Implementation.” Joe the IT Guy, 24 June 2015. Web.

    Rae, Barclay. “Successful ITSM Tool Implementation.” BrightTALK, 9 May 2013. Webcast.

    Rumburg, Jeffrey. “Metric of the Month: Agent Training Hours.” MetricNet, 2012. Web.

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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Time and money are wasted dealing with mistakes or missteps that should have been addressed by procedures or policies.
    • Standard operating procedures are less effective without a policy to provide a clear mandate and direction.
    • Adhering to policies is rarely a priority, as compliance often feels like an impediment to getting work done.
    • Processes aren’t measured or audited to assess policy compliance, which makes enforcing the policies next to impossible.

    Our Advice

    Critical Insight

    • Document what you need to document and forget the rest. Always check to see if you can use a previously approved policy before you create a new one. You may only need to create new guidelines or standards rather than approve a new policy.

    Impact and Result

    • Start with a comprehensive policy framework to help you identify policy gaps. Prioritize and address those policy gaps.
    • Create effective policies that are reasonable, measurable, auditable, and enforceable.
    • Create and document procedures to support policy changes.

    Develop Infrastructure & Operations Policies and Procedures Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should change your approach to developing Infrastructure & Operations policies and procedures, 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. Identify policy and procedure gaps

    Create a prioritized action plan for documentation based on business need.

    • Develop Infrastructure & Operations Policies and Procedures – Phase 1: Identify Policy and Procedure Gaps

    2. Develop policies

    Adapt policy templates to meet your business requirements.

    • Develop Infrastructure & Operations Policies and Procedures – Phase 2: Develop Policies
    • Availability and Capacity Management Policy
    • Business Continuity Management Policy
    • Change Control – Freezes & Risk Evaluation Policy
    • Change Management Policy
    • Configuration Management Policy
    • Firewall Policy
    • Hardware Asset Management Policy
    • IT Triage and Support Policy
    • Release Management Policy
    • Software Asset Management Policy
    • System Maintenance Policy – NIST
    • Internet Acceptable Use Policy

    3. Document effective procedures

    Improve policy adherence and service effectiveness through procedure standardization and documentation.

    • Develop Infrastructure & Operations Policies and Procedures – Phase 3: Document Effective Procedures
    • Capacity Plan Template
    • Change Management Standard Operating Procedure
    • Configuration Management Standard Operation Procedures
    • Incident Management and Service Desk SOP
    • DRP Summary Template
    • Service Desk Standard Operating Procedure
    • HAM Standard Operating Procedures
    • SAM Standard Operating Procedures
    [infographic]

    Further reading

    Develop Infrastructure & Operations Policies and Procedures

    Document what you need to document and forget the rest.

    Table of contents

    Project Rationale

    Project Outlines

    • Phase 1: Identify Policy and Procedure Gaps
    • Phase 2: Develop Policies
    • Phase 3: Document Effective Procedures

    Bibliography

    ANALYST PERSPECTIVE

    Document what you need to document now and forget the rest.

    "Most IT organizations struggle to create and maintain effective policies and procedures, despite known improvements to consistency, compliance, knowledge transfer, and transparency.

    The numbers are staggering. Fully three-quarters of IT professionals believe their policies need improvement, and the same proportion of organizations don’t update procedures as required.

    At the same time, organizations that over-document and under-document perform equally poorly on key measures such as policy quality and policy adherence. Take a practical, step-by-step approach that prioritizes the documentation you need now. Leave the rest for later."

    (Andrew Sharp, Research Manager, Infrastructure & Operations Practice, Info-Tech Research Group)

    Our understanding of the problem

    This Research Is Designed For:

    • Infrastructure Managers
    • Chief Technology Officers
    • IT Security Managers

    This Research Will Help You:

    • Address policy gaps
    • Develop effective procedures and procedure documentation to support policy compliance

    This Research Will Also Assist:

    • Chief Information Officers
    • Enterprise Risk and Compliance Officers
    • Chief Human Resources Officers
    • Systems Administrators and Engineers

    This Research Will Help Them:

    • Understand the importance of a coherent approach to policy development
    • Understand the importance of Infrastructure & Operations policies
    • Support Infrastructure & Operations policy development and enforcement

    Info-Tech Best Practice

    This blueprint supports templates for key policies and procedures that help Infrastructure & Operations teams to govern and manage internal operations. For security policies, see the NIST SP 800-171 aligned Info-Tech blueprint, Develop and Deploy Security Policies.

    Executive Summary

    Situation

    • Time and money are wasted dealing with mistakes or missteps that should have been addressed by procedures or policies.
    • Standard operating procedures are less effective without a policy to provide a clear mandate and direction.

    Complication

    • Existing policies were written, approved, signed – and forgotten for years because no one has time to maintain them.
    • Adhering to policies is rarely a priority, as compliance often feels like an impediment to getting work done.
    • Processes aren’t measured or audited to assess policy compliance, which makes enforcing the policies next to impossible.

    Resolution

    • Start with a comprehensive policy framework to help you identify policy gaps. Prioritize and address those policy gaps.
    • Create effective policies that are reasonable, measurable, auditable, and enforceable.
    • Create and document procedures to support policy changes.

    Info-Tech Insight

    1. Document what you need to document and forget the rest.
      Always check if a previously approved policy exists before you create a new one. You may only need to create new guidelines or standards rather than approve a new policy.
    2. Support policies with documented procedures.
      Build procedures that embed policy adherence in daily operations. Find opportunities to automate policy adherence (e.g. removing local admin rights from user computers).

    What are policies, procedures, and processes?

    A policy is a governing document that states the long-term goals of the organization and in broad strokes outlines how they will be achieved (e.g. a Data Protection Policy).

    In the context of policies, a procedure is composed of the steps required to complete a task (e.g. a Backup and Restore Procedure). Procedures are informed by required standards and recommended guidelines. Processes, guidelines, and standards are three pillars that support the achievement of policy goals.

    A process is higher level than a procedure – a set of tasks that deliver on an organizational goal.

    Better policies and procedures reduce organizational risk and, by strengthening the ability to execute processes, enhance the organization’s ability to execute on its goals.

    Visualization of policies, procedures, and processes using pillars. Two separate structures, 'Policy A' and 'Policy B', are each held up by three pillars labelled 'Standards', 'Procedures', and 'Guidelines'. Two lines pass through the pillars of both structures and are each labelled 'Value-creating process'.

    Document to improve governance and operational processes

    Deliver value

    Build, deliver, and support Infrastructure assets in a consistent way, which ultimately reduces costs associated with downtime, errors, and rework. A good manual process is the foundation for a good automated process.

    Simplify Training

    Use documentation for knowledge transfer. Routine tasks can be delegated to less-experienced staff.

    Maintain compliance

    Comply with laws and regulations. Policies are often required for compliance, and formally documented and enforced policies help the organization maintain compliance by mandating required due diligence, risk reduction, and reporting activities.

    Provide transparency

    Build an open kitchen. Other areas of the organization may not understand how Infra & Ops works. Your documentation can provide the answer to the perennial question: “Why does that take so long?”

    Info-Tech Best Practice

    Governance goals must be supported with effective, well-aligned procedures and processes. Use Info-Tech’s research to support the key Infrastructure & Operations processes that enable your business to create value.

    Document what you need to document – and forget the rest

    Half of all organizations believe their policy suite is insufficient. (Info-Tech myPolicies Survey Data (N=59))

    Pie chart with three sections labelled 'Too Many Policies and Procedures 14%', 'Adequate Policies and Procedures 37%', 'Insufficient Policies and Procedures 49%'

    Too much documentation and a lack of documentation are both ineffective. (Info-Tech myPolicies Survey Data (N=59))

    Two bar charts labelled 'Policy Adherence' and 'Policy Quality' each with three bars representing 'Too Many Policies and Procedures', 'Insufficient Policies and Procedures', and 'Adequate Policies and Procedures'. The values shown are an average score out of 5. For Policy Adherence: Too Many is 2.4, Insufficient is 2.1, and Adequate is 3.2. For Policy Quality: Too Many is 2.9, Insufficient is 2.6, and Adequate is 4.1.

    77% of IT professionals believe their policies require improvement. (Kaspersky Lab)

    Presenting: A COBIT-aligned policy suite

    We’ve developed a suite of effective policy templates for every Infra & Ops manager based on Info-Tech’s IT Management & Governance Framework.

    Policy templates and the related aspects of Info-Tech's IT Management & Governance Framework

    Info-Tech Best Practice

    Look for these symbols as you work through the deck. Prioritize and focus on the policies you work on first based on the value of the policy to the enterprise and the existing gaps in your governance structure.

    Project outline

    Phases

    1. Identify policy and procedure gaps 2. Develop policies 3. Document effective procedures

    Steps

    • Review and right-size the existing policy set
    • Create an action plan to address policy gaps
    • Modify policy templates and gather feedback
    • Implement, enforce, measure, and maintain new policies
    • Scope and outline procedures
    • Document and maintain procedures

    Outcomes

    Action list of policy and procedure gaps New or updated Infrastructure & Operations policies Procedure documentation

    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

    Accelerate policy development with a Guided Implementation

    Your trusted advisor is just a call away.

    • Identify Policy and Procedure Gaps (Calls 1-2)
      Assess current policies, operational challenges, and gaps. Mitigate significant risks first.
    • Create and Review Policies (Calls 2-4)
      Modify and review policy templates with an Info-Tech analyst.
    • Create and Review Procedures (Calls 4-6)
      Workflow procedures, using templates wherever possible. Review documentation best practices.

    Contact Info-Tech to set up a Guided Implementation with a dedicated advisor who will walk you through every stage of your policy development project.

    Develop Infrastructure & Operations Policies and Procedures

    Phase 1

    Identify Policy and Procedure Gaps

    PHASE 1: Identify Policy and Procedure Gaps

    Step 1.1: Review and right-size the existing policy set

    This step will walk you through the following activities:

    • Identify gaps in your existing policy suite
    • Document challenges to core Infrastructure & Operations processes
    • Identify documentation that can close gaps
    • Prioritize your documentation effort

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Infrastructure Supervisors

    Results & Insights

    • Results: A review of the existing policy suite and identification of opportunities for improvement.
    • Insights: Not all gaps necessarily require a fresh policy. Repurpose, refresh, or supplement existing documentation wherever appropriate.

    Conduct a policy review

    Associated Activity icon 1(a) 30 minutes per policy

    You’ve got time to review your policy suite. Make the most of it.

    1. Start with organizational requirements.
      • What initiatives are on the go? What policies or procedures do you have a mandate to create?
    2. Weed out expired and dated policies.
      • Gather your existing policies. Identify when each one was published or last reviewed.
      • Decide whether to retire, merge, or update expired or obviously dated policy.
    3. Review policy statements.
      • Check that the organization is adequately supporting policy statements with SOPs, standards, and guidelines. Ensure role-related information is up to date.
    4. Document and bring any gaps forward to the next activity. If no action is required, indicate that you have completed a review and submit the findings for approval.

    But they just want one policy...

    A review of your policy suite is good practice, especially when it hasn’t been done for a while. Why?
    • Existing policies may address what you’re trying to do with a new policy. Using or modifying an existing policy avoids overlap and contradiction and saves you the effort required to create, communicate, approve, and maintain a new policy.
    • Review the suite to validate that you’re addressing the most important challenges first.

    Brainstorm improvements for core Infrastructure & Operations processes

    Associated Activity icon 1(b) 1 hour

    Supplement the list of gaps from your policy review with process challenges.

    1. Write out key Infra & Ops–related processes – one piece of flipchart paper per process. You can work through all of these processes or cherry-pick the processes you want to improve first.
    2. With participants, write out in point form how you currently execute on these processes (e.g. for Asset Management, you might be tagging hardware, tracking licenses, etc.)
    3. Work through a “Start – Stop – Continue” exercise. Ask participants: What should we start doing? What must we stop doing? What do we do currently that’s valuable and must continue? Write ideas on sticky notes.
    4. Once you’ve worked through the “Start – Stop – Continue” exercise for all processes, group similar suggestions for improvements.

    Asset Management: Manage hardware and software assets across their lifecycle to protect assets and manage costs.

    Availability and Capacity Management: Balance current and future availability, capacity, and performance needs with cost-to-serve.

    Business Continuity Management: Continue operation of critical business processes and IT services.

    Change Management: Deliver technical changes in a controlled manner.

    Configuration Management: Define and maintain relationships between technical components.

    Problem Management: Identify incident root cause.

    Operations Management: Coordinate operations.

    Release and Patch Management: Deliver updates and manage vulnerabilities in a controlled manner.

    Service Desk: Respond to user requests and all incidents.

    PHASE 1: Identify Policy and Procedure Gaps

    Step 1.2: Create an action plan to address policy gaps

    This step will walk you through the following activities:

    • Identify challenges and gaps that can be addressed via documentation
    • Prioritize high-value, high-risk gaps

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Infrastructure Supervisors

    Results & Insights

    • Results: An action plan to tackle policy and procedures gaps, aligned with business requirements and business value.
    • Insights: Not all documentation is equally valuable. Prioritize documentation that delivers value and mitigates risk.

    Support policies with procedures, standards, and guidelines

    Use a working definition for each type of document.

    Policy: Directives, rules, and mandates that support the overarching, long-term goals of the organization.

    • Standards: Prescriptive, uniform requirements.
    • Procedures: Specific, detailed, step-by-step instructions for completing a task.
    • Guidelines: Non-enforceable, recommended best practices.

    Info-Tech Best Practice

    Take advantage of your Info-Tech advisory membership by scheduling review sessions with an analyst. We provide high-level feedback to ensure your documentation is clear, concise, and consistent and aligns with the governance objectives you’ve identified.

    Answer the following questions to decide if governance documentation can help close gaps

    Associated Activity icon 1(c) 30 minutes

    Documentation supports knowledge sharing, process consistency, compliance, and transparency. Ask the following questions:

    1. What is the purpose of the documentation?
      Procedures support task completion. Policies set direction and manage organizational risk.
    2. Should it be enforceable?
      Policies and standards are enforceable; guidelines are not. Procedures are enforceable in that they should support policy enforcement.
    3. What is the scope?
      To document a task, create a procedure. Set overarching rules with policies. Use standards and guidelines to set detailed rules and best practices.
    4. What’s the expected cadence for updates?
      Policies should be revisited and revised less frequently than procedures.

    Info-Tech Best Practice

    Reinvent the wheel? I don’t think so!

    Always check to see if a gap can be addressed with existing tools before drafting a new policy

    • Is there an existing policy that could be supported with new or updated procedures, technical standards, or guidelines?
    • Is there a technical control you can deploy that would enforce the terms of an existing, approved policy?
    • It may be simpler to amend an existing policy instead of creating a new one.

    Some problems can’t be solved by better documentation (or by documentation alone). Consider additional strategies that address people, process, and technology.

    Tackle high-value, high-risk gaps first

    Associated Activity icon 1(d) 30 minutes

    Prioritize your documentation effort.

    1. List each proposed piece of documentation on the board.
    2. Assign a score to the risk posed to the business by the lack of documentation and to the expected benefit of completing the documentation. Use a scoring scale between 1 and 3 such as the one on the right.
    3. Prioritize documentation that mitigates risks and maximizes benefits.
    4. If you need to break ties, consider effort required to develop, implement, and enforce policies or procedures.

    Example Scoring Scale

    Score Business risk of missing documentation Business benefit of value of documentation

    1

    Low: Affects ad hoc activities or non-critical data. Low: Minimal impact.

    2

    Moderate: Impacts productivity or internal goodwill. Moderate: Required periodically; some cross-training opportunities.

    3

    High: Impacts revenue, safety, or external goodwill. High: Save time for common or ongoing processes; extensive improvement to training/knowledge transfer.

    Info-Tech Insight

    Documentation pulls resources away from other important programs and projects, so ultimately it must be a demonstrably higher priority than other work. This exercise is designed to align documentation efforts with business goals.

    Phase 1: Review accomplishments

    Policy pillars: Standards, Procedures, Guidelines

    Summary of Accomplishments

    • Identified gaps in the existing policy suite and identified pain points in existing Infra & Ops processes.
    • Developed a list of policies and procedures that can address existing gaps and prioritized the documentation effort.

    Develop Infrastructure & Operations Policies and Procedures

    Phase 2

    Develop Policies

    PHASE 2: Develop Policies

    Step 2.1: Modify policy templates and gather feedback

    This step will walk you through the following activities:

    • Modify policy templates

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Technical Writer

    Results & Insights

    • Results: Your own COBIT-aligned policies built by modifying Info-Tech templates.
    • Insights: Effective policies are easy to read and navigate.

    Write Good-er: Be Clear, Consistent, and Concise

    Effective policies adhere to the three Cs of documentation.

    1. Be clear. Make it as easy as possible for a user to learn how to comply with your policy.
    2. Be consistent. Write policies that complement each other, not contradict each other.
    3. Be concise. Make it as quick and easy as possible to read and understand your policy.

    Info-Tech Best Practice

    To download the full suite of templates all at once, click the “Download Research” button on the research landing page on the website.

    Use the three Cs: Be Clear

    Understanding makes compliance possible. Create policy with the goal of making compliance as easy as possible. Use positive, simple language to convey your intentions and rationale to your audience. Staff will make an effort adhere to your policy when they understand the need and are able to comply with the terms.

    1. Choose a skilled writer. Select a writer who can write clearly and succinctly.
    2. Default to simple language and define key terms. Define scope and key terms upfront. Avoid using technical terms outside of technical documentation; if they’re necessary be sure to define them as well.
    3. Use active, positive language. Where possible, tell people what they can do, not what they can’t.
    4. Keep the structure simple. Complicated documents are less likely to be understood and read. Use short sentences and paragraphs. Lists are a helpful way to summarize important information. Guide your reader through the document with appropriately named section headers, tables of contents, and numeration.
    5. Add a process for handling exceptions. Refer to procedures, standards, and guidelines documentation. Try to keep these links as static as possible. Also, refer to a process for handling exceptions.
    6. Manage the integrity of electronic documents. When published electronically, the policy should have restricted editing access or should be published in a non-editable format. Access to the procedure and policy storage database for employees should be read-only.

    Info-Tech Insight

    Highly effective policies are easy to navigate. Your policies should be “skimmable.” Very few people will fully read a policy before accepting it. Make it easy to navigate so the reader can easily find the policy statements that apply to them.

    Use the three Cs: Be Consistent

    Ensure that policies are aligned with other organizational policies and procedures. It detracts from compliance if different policies prescribe different behavior in the same situation. Moreover, your policies should reflect the corporate culture and other company standards. Use your policies to communicate rules and get employees aligned with how your company works.

    1. Use standard sentences and paragraphs. Policies are usually expressed in short, standard sentences. Lists should also be used when necessary or appropriate.
    2. Remember the three Ws. When writing a policy, always be sure to clearly state what the rule is, when it should be applied, and who needs to follow it. Policies should clearly define their scope of application and whether directives are mandatory or recommended.
    3. Use an outline format. Using a numbered or outline format will make a document easier to read and will make content easier to look up when referring back to the document at a later time.
    4. Avoid amendments. Avoid the use of information that is quickly outdated and requires regular amendment (e.g. names of people).
    5. Reference a set of supplementary documents. Codify your tactics outside of the policy document, but make reference to them within the text. This makes it easier to ensure consistency in the behavior prescribed by your policies.

    "One of the issues is the perception that policies are rules and regulations. Instead, your policies should be used to say ‘this is the way we do things around here.’" (Mike Hughes CISA CGEIT CRISC, Principal Director, Haines-Watts GRC)

    Use the three Cs: Be Concise

    Reading and understanding policies shouldn’t be challenging, and it shouldn’t significantly detract from productive time. Long policies are more difficult to read and understand, increasing the work required for employees to comply with them. Put it this way: How often do you read the Terms and Conditions of software you’ve installed before accepting them?

    1. Be direct. The quicker you get to the point, the easier it is for the reader to interpret and comply with your policy.
    2. Your policy is a rule, not a recipe. Your policy should outline what needs to be accomplished and why – your standards, guidelines, and SOPs address the how.
    3. Keep policies short. Nobody wants to read a huge policy book, so keep your policies short.
    4. Use additional documentation where needed. In addition to making consistency easier, this shortens the length of your policies, making them easier to read.
    5. Policy still too large? Modularize it. If you have an extremely large policy, it’s likely that it’s too widely scoped or that you’re including statements that should be part of procedure documentation. Consider breaking your policy into smaller, focused, more digestible documents.

    "If the policy’s too large, people aren’t going to read it. Why read something that doesn’t apply to me?" (Carole Fennelly, Owner and Principal, cFennelly Consulting)

    "I always try to strike a good balance between length and prescriptiveness when writing policy. Your policies … should be short and describe the problem and your approach to solving it. Below policies, you write standards, guidelines, and SOPs." (Michael Deskin, Policy and Technical Writer, Canadian Nuclear Safety Commission)

    Customize policy documents

    Associated Activity icon 2(a) 1-2 hours per policy

    Use the policies templates to support key Infrastructure & Operations programs.

    INPUT: List of prioritized policies

    OUTPUT: Written policy drafts ready for review

    Materials: Policy templates

    Participants: Policy writer, Signing authority

    No policy template will be a perfect fit for your organization. Use Info-Tech’s research to develop your organization’s program requirements. Customize the policy templates to support those requirements.

    1. Work through policies from highest to lowest priority as defined in Phase 1.
    2. Follow the instructions written in grey text to customize the policy. Follow the three Cs when you write your policy.
    3. When your draft is finished, prepare to request signoff from your signing authority by reviewing the draft with an Info-Tech analyst.
    4. Complete the highest ranked three or four draft policies. Review all these policies with relevant stakeholders and include all relevant signing authorities in the signoff process.
    5. Rinse and repeat. Iterate until all relevant polices are complete.

    Request, Incident, and Problem Management

    An effective, timely service desk correlates with higher overall end-user satisfaction across all other IT services. (Info-Tech Research Group, 2016 (N=25,998))

    An icon for the 'DSS02 Service Desk' template. An icon for the 'DSS03 Incident and Problem Management' template.

    Use the following template to create a policy that outlines the goals and mandate for your service and support organization:

    • IT Triage and Support Policy

    Support the program and associated policy statements using Info-Tech’s research:

    • Standardize the Service Desk
    • Incident and Problem Management
    • Design & Build a User-Facing Service Catalog

    Embrace Standardization

    • Outline the support and service mandate with the policy. Support the policy with the methodology in Info-Tech’s research.
    • Over time, organizations without standardized processes face confusion, redundancies, and cost overruns. Standardization avoids wasting energy and effort building new solutions to solved issues.
    • Standard processes for IT services define repeatable approaches to work and sandbox creative activities.
    • Create tickets for every task and categorize them using a standard classification system. Use the resulting data to support root-cause analysis and long-term trend management.
    • Create a single point of contact for users for all incidents and requests. Escalate and resolve tickets faster.
    • Empower end users and technicians with knowledge bases that help them solve problems without intervention.

    Change, Release, and Patch Management

    Slow turnaround, unauthorized changes, and change-related incidents are all too familiar to many managers.

    An icon for the 'BAI06 Change Management' template. An icon for the 'BAI07 Release Management' template.

    Use the following templates to create policies that define effective patch, release, and change management:

    • Change Management Policy
    • Release and Patch Management Policy
    • Change Control – Freezes & Risk Evaluation Policy

    Ensure the policy is supported by using the following Info-Tech research:

    • Optimize Change Management

    Embrace Change

    • IT system owners resist change management when 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, so preventable conflicts get missed.
    • No process exists to support the identification and deployment of critical security patches. Tracking down users to find a maintenance window takes significant, dedicated effort and intervention from the management team.
    • Create a unified change management process that reduces risk and is balanced in its approach toward deploying changes, while also maintaining throughput of patches, fixes, enhancements, and innovation.

    IT Asset Management (ITAM)

    A proactive, dynamic ITAM program will pay dividends in support, contract management, appropriate provisioning, and more.

    An icon for the 'BAI09 Asset Management' template.

    Start by outlining the requirements for effective asset management:

    • Hardware Asset Management Policy
    • Software Asset Management Policy

    Support ITAM policies with the following Info-Tech research:

    • Implement IT Asset Management

    Leverage Asset Data

    • Create effective, directional policies for your asset management program that provide a mandate for action. Support the policies with robust procedures, capable staff, and right-fit technology solutions.
    • Poor management of assets generally leads to higher costs due to duplicated purchases, early replacement, loss, and so on.
    • Visibility into asset location and ownership improves security and accountability.
    • A centralized repository of asset data supports request fulfilment and incident management.
    • Asset management is an ongoing program, not a one-off project, and must be resourced accordingly. Organizations often implement an asset management program and let it stagnate.

    "Many of the large data breaches you hear about… nobody told the sysadmin the client data was on that server. So they weren’t protecting and monitoring it." (Carole Fennelly, Owner and Principal, cFennelly Consulting)

    Business Continuity Management (BCM)

    Streamline the traditional approach to make BCM practical and repeatable.

    An icon for the 'DSS04 DR and Business Continuity' template.

    Set the direction and requirements for effective BCM:

    • Business Continuity Management Policy

    Support the BCM policy with the following Info-Tech research:

    • Create a Right-Sized Disaster Recovery Plan
    • Develop a Business Continuity Plan

    Build Organizational Resilience

    • Evidence of disaster recovery and business continuity planning is increasingly required to comply with regulations, mitigate business risk, and meet customer demands.
    • IT leaders are often asked to take the lead on business continuity, but overall accountability for business continuity rests with the board of directors, and each business unit must create and maintain its business continuity plan.
    • Set an organizational mandate for BCM with the policy.
    • Divide the business continuity mandate into manageable parcels of work. Follow Info-Tech’s practical methodology to tackle key disaster recovery and business continuity planning activities one at a time.

    Info-Tech Best Practice

    Governance goals must be supported with effective, well-aligned procedures and processes. Use Info-Tech’s research to support the key Infrastructure & Operations processes that enable your business to create value.

    Availability, Capacity, and Operations Management

    What was old is new again. Use time-tested techniques to manage and plan cloud capacity and costs.

    An icon for the 'BAI04 Availability and Capacity Management' template. An icon for the 'DSS01 Operations Management' template. An icon for the 'BAI10 Configuration Management' template.

    Set the direction and requirements for effective availability and capacity management:

    • Availability and Capacity Management Policy
    • System Maintenance Policy – NIST

    Support the policy with the following Info-Tech research:

    • Develop an Availability and Capacity Management Plan
    • Improve IT Operations Management
    • Develop an IT Infrastructure Services Playbook

    Mature Service Delivery

    • Hybrid IT deployments – managing multiple locations, delivery models, and service providers – are the future of IT. Hybrid deployments significantly complicate capacity planning and operations management.
    • Effective operations management practices develop structured processes to automate activities and increase process consistency across the IT organization, ultimately improving IT efficiency.
    • Trying to add mature service delivery can feel like playing whack-a-mole. Systematically improve your service capabilities using the tactical, iterative approach outlined in Improve IT Operations Management.

    Enhance your overall security posture with a defensible, prescriptive policy suite

    Align your security policy suite with NIST Special Publication 800-171.

    Security policies support the organization’s larger security program. We’ve created a dedicated research blueprint and a set of templates that will help you build security policies around a robust framework.

    • Start with a security charter that aligns the security program with organizational objectives.
    • Prioritize security policies that address significant risks.
    • Work with technical and business stakeholders to adapt Info-Tech’s NIST SP 800-171–aligned policy templates (at right) to reflect your organizational objectives.

    A diagram listing all the different elements in a 'Security Charter': 'Access Control', 'Audit & Acc.', 'Awareness and Training', 'Config. Mgmt.', 'Identification and Auth.', 'Incident Response', 'Maintenance', 'Media Protection', 'Personnel Security', 'Physical Protection', 'Risk Assessment', 'Security Assessment', 'System and Comm. Protection', and 'System and Information Integrity'.

    Review and download Info-Tech's blueprint Develop and Deploy Security Policies.

    Info-Tech Best Practice

    Customize Info-Tech’s policy framework to align your policy suite to NIST SP 800-171. Given NIST’s requirements for the control of confidential information, organizations that align their policies to NIST standards will be in a strong governance position.

    PHASE 2: Develop Policies

    Step 2.2: Implement, enforce, measure, and maintain new policies

    This step will walk you through the following activities:

    • Gather stakeholder feedback
    • Identify preventive and detective controls
    • Identify required supports
    • Seek policy approval
    • Establish roles and responsibilities for policy maintenance

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Infrastructure Supervisors
    • Technical Writer
    • Policy Stakeholders

    Results & Insights

    • Results: Well-supported policies that have received signoff.
    • Insights: If you’re not prepared to enforce the policy, you might not actually need a policy. Use the policy statements as guidelines or standards, create and implement procedures, and build a culture of compliance. Once you can confidently execute on required controls, seek signoff.

    Gather feedback from users to assess the feasibility of the new policies

    Associated Activity icon 2(b) Review period: 1-2 weeks

    Once the policies are drafted, roundtable the drafts with stakeholders.

    INPUT: Draft policies

    OUTPUT: Reviewed policy drafts ready for approval

    Materials: Policy drafts

    Participants: Policy stakeholders

    1. Form a test group of users who will be affected by the policy in different ways. Keep the group to around five staff.
    2. Present new policies to the testers. Allow them to read the documents and attempt to comply with the new policies in their daily routines.
    3. Collect feedback from the group.
      • Consider using interviews, email surveys, chat channels, or group discussions.
      • Solicit ideas on how policy statements could be improved or streamlined.
    4. Make reasonable changes to the first draft of the policies before submitting them for approval. Policies will only be followed if they’re realistic and user friendly.

    Info-Tech Best Practice

    Allow staff the opportunity to provide input on policy development. Giving employees a say in policy development helps avoid obstacles down the road. This is especially true if you’re trying to change behavior rather than lock it in.

    Develop mechanisms for monitoring and enforcement

    Associated Activity icon 2(c) 20 minutes per policy

    Brainstorm preventive and detective controls.

    INPUT: Draft policies

    OUTPUT: Reviewed policy drafts ready for approval

    Materials: Policy drafts

    Participants: Policy stakeholders

    Preventive controls are designed to discourage or pre-empt policy breaches before they occur. Training, approvals processes, and segregation of duties are examples of preventive controls. (Ohio University)

    Detective controls help enforce the policy by identifying breaches after they occur. Forensic analysis and event log auditing are examples of detective controls. (Ohio University)

    Not all policies require the same level of enforcement. Policies that are required by law or regulation generally require stricter enforcement than policies that outline best practices or organizational values.

    Identify controls and enforcement mechanisms that are in line with policy requirements. Build control and enforcement into procedure documentation as needed.

    Suggestions:

    1. Have staff sign off on policies. Disclose any monitoring/surveillance.
    2. Ensure consequences match the severity of the infraction. Document infractions and ensure that enforcement is applied consistently across all infractions.
    3. Automatic controls shouldn’t get in the way of people’s ability to do their jobs. Test controls with users before you roll them out widely.

    Support the policy before seeking approval

    A policy is only as strong as its supporting pillars.

    Create Standards

    Standards are requirements that support policy adherence. Server builds and images, purchase approval criteria, and vulnerability severity definitions can all be examples of standards that improve policy adherence.

    Where reasonable, use automated controls to enforce standards. If you automate the control, consider how you’ll handle exceptions.

    Create Guidelines

    If no standards exist – or best practices can’t be monitored and enforced, as standards require – write guidelines to help users remain in compliance with the policy.

    Create Procedures: We’ll cover procedure development and documentation in Phase 3.

    Info-Tech Insight

    In general, failing to follow or strictly enforce a policy creates a risk for the business. If you’re not confident a policy will be followed or enforced, consider using policy statements as guidelines or standards as an interim measure as you update procedures and communicate and roll out changes that support adherence and enforcement.

    Seek approval and communicate the policy

    Policies ultimately need to be accepted by the business.

    • Once the drafts are completed, identify who is in charge of approving the policies.
    • Ensure all stakeholders understand the importance, context, and repercussions of the policies.
    • The approvals process is about appropriate oversight of the drafted policies. For example:
      • Do the policies satisfy compliance and regulatory requirements?
      • Do the policies work with the corporate culture?
      • Do the policies address the underlying need?

    If the draft is rejected:

    • Acquire feedback and make revisions.
    • Resubmit for approval.

    If the draft is approved:

    • Set the effective date and a review date.
    • Begin communication, training, and implementation.
    • Employees must know that there are new policies and understand the steps they must take to comply with the policies in their work.
    • Employees must be able to interpret, understand, and know how to act upon the information they find in the policies.
    • Employees must be informed on where to get help or ask questions and from whom to request policy exceptions.

    "A lot of board members and executive management teams… don’t understand the technology and the risks posed by it." (Carole Fennelly, Owner and Principal, cFennelly Consulting)

    Identify policy management roles and responsibilities

    Associated Activity icon 2(d) 30 minutes

    Discuss and assign roles and responsibilities for ongoing policy management.

    Role

    Responsibilities

    Executive sponsor

  • Supports the program at the highest levels of the business, as needed
  • Program lead

  • Leads the Infrastructure & Operations policy management program
  • Identifies and communicates status updates to the executive sponsor and the project team
  • Coordinates business demands and interviews and organizes stakeholders to identify requirements
  • Manages the work team and coordinates policy rollout
  • Policy writer

  • Authors and updates policies based on requirements
  • Coordinates with outsourced editor for completion of written documents
  • IT infrastructure SMEs

  • Provide technical insight into capabilities and limitations of infrastructure systems
  • Provide advice on possible controls that can aid policy rollout, monitoring, and enforcement
  • Legal expert

  • Provides legal advice on the policy’s legal terms and enforceability
  • "Whether at the level of a government, a department, or a sub-organization: technology and policy expertise complement one another and must be part of the conversation." (Peter Sheingold, Portfolio Manager, Cybersecurity, MITRE Corporation)

    Phase 2: Review accomplishments

    Effective Policies: Clear, Consistent, and Concise

    An icon for the 'DSS02 Service Desk' template.

    An icon for the 'DSS03 Incident and Problem Management' template.

    An icon for the 'BAI06 Change Management' template.

    An icon for the 'BAI07 Release Management' template.

    An icon for the 'BAI09 Asset Management' template.

    An icon for the 'DSS04 DR and Business Continuity' template.

    An icon for the 'BAI04 Availability and Capacity Management' template.

    An icon for the 'DSS01 Operations Management' template.

    An icon for the 'BAI10 Configuration Management' template.

    Summary of Accomplishments

    • Built priority policies based on templates aligned with the IT Management & Governance Framework and COBIT 5.
    • Reviewed controls and policy supports.
    • Assigned roles and responsibilities for ongoing policy maintenance.

    Develop Infrastructure & Operations Policies and Procedures

    Phase 3

    Document Effective Procedures

    PHASE 3: Document Effective Procedures

    Step 3.1: Scope and outline procedures

    This step will walk you through the following activities:

    • Prioritize SOP documentation
    • Draft workflows using a tabletop exercise
    • Modify templates, as applicable

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Technical Writer
    • Infrastructure Supervisors

    Results & Insights

    • Results: An action plan for SOP documentation and an outline of procedure workflows.
    • Insights: Don’t let tools get in the way of documentation – low-tech solutions are often the most effective way to build and analyze workflows.

    Prioritize your SOP documentation effort

    Associated Activity icon 3(a) 1-2 hours

    Build SOP documentation that gets used and doesn’t just check a box.

    1. Review the list of procedure gaps from Phase 1. Are any other procedures needed? Are some of the procedures now redundant?
    2. Establish the scope of the proposed procedures. Who are the stakeholders? What policies do they support?
    3. Run a basic prioritization exercise using a three-point scale. Higher scores mean greater risks or greater benefits. Score the risk of the undocumented procedure to the business (e.g. potential effect on data, productivity, goodwill, health and safety, or compliance). Score the benefit to the business of documenting the procedure (e.g. throughput improvements or knowledge transfer).
    4. Different procedures require different formats. Decide on one or more formats that can help you effectively document the procedure:
      • Flowcharts: Depict workflows and decision points. Provide an at-a-glance view that is easy to follow. Can be supported by checklists and diagrams where more detail is required.
      • Checklists: A reminder of what to do, rather than how to do it. Keep instructions brief.
      • Diagrams: Visualize objects, topologies, and connections for reference purposes.
      • Tables: Establish relationships between related categories.
      • Prose: Use full-text instructions where other documentation strategies are insufficient.

    Modify the following Info-Tech templates for larger SOPs

    Support these processes...

    ...with these blueprints...

    ...to create SOPs using these templates.

    An icon for the 'DSS04 DR and Business Continuity' template. Create a Right-Sized Disaster Recovery Plan DRP Summary
    An icon for the 'BAI09 Asset Management' template. Implement IT Asset Management HAM SOP and SAM SOP
    An icon for the 'BAI06 Change Management' template. An icon for the 'BAI07 Release Management' template. Optimize Change Management Change Management SOP
    An icon for the 'DSS02 Service Desk' template. An icon for the 'DSS03 Incident and Problem Management' template. Standardize the Service Desk Service Desk SOP

    Use tabletop planning or whiteboards to draft workflows

    Associated Activity icon 3(b) 30 minutes

    Tabletop planning is a paper-based exercise in which your team walks through a particular process and maps out what happens at each stage.

    OUTPUT: Steps in the current process for one SOP

    Materials: Tabletop, pen, and cue cards

    Participants: Process owners, SMEs

    1. For this exercise, choose one particular process to document.
    2. Document each step of the process on cue cards, which can be arranged on the table in sequence.
    3. Be sure to include task ownership in your steps.
    4. Map out the process as it currently happens – we’ll think about how to improve it later.
    5. Keep focused. Stay on task and on time.

    Example:

    • Step 3: PM reviews new defects daily
    • Step 4: PM assigns defects to tech leads
    • Step 5: Assigned resource updates status – frequency is based on ticket priority

    Info-Tech Insight

    Don’t get weighed down by tools. Relying on software or other technological tools can detract from the exercise. Use simple tools such as cue cards to record steps so that you can easily rearrange steps or insert steps based on input from the group.

    Collaborate to optimize the SOP

    Associated Activity icon 3(c) 30 minutes

    Review the tabletop exercise. What gaps exist in current processes?
    How can the processes be made better? What are the outputs and checkpoints?

    OUTPUT: Identify steps to optimize the SOP

    Materials: Tabletop, pen, and cue cards

    Participants: Process owners, SMEs

    Example:

    • Step 3: PM reviews new defects daily
    • NEW STEP: Schedule 10-minute daily defect reviews with PM and tech leads to evaluate ticket priority
    • Step 4: PM assigns defects to tech leads
    • Step 5: Assigned resource updates status – frequency is based on ticket priority
      • Step 5 Subprocess: Ticket status update
      • Step 5 Output: Ticket status moved to OPEN by assigned resource – acknowledges receipt by assigned resource

    A note on colors: Use white cards to record steps. Record gaps on yellow cards (e.g. a process step not documented) and risks on red cards (e.g. only one person knows how to execute a step) to highlight your gaps/to-dos and risks to be mitigated or accepted.

    If it’s necessary to clarify complex process flows during the exercise, you can also use green cards for decision diamonds, purple for document/report outputs, and blue for subprocesses.

    PHASE 3: Document Effective Procedures

    Step 3.2: Document effective procedures

    This step will walk you through the following activities:

    • Document workflows, checklists, and diagrams
    • Establish a cadence for document review and updates

    This step involves the following participants:

    • Infrastructure Manager
    • Technical Writer

    Results & Insights

    • Results: Improved SOP documentation and document management practices.
    • Insights: It’s possible to keep up with changes if you put the right cues and accountabilities in place. Include document review in project and change management procedures and hold staff accountable for completion.

    Document workflows with flowcharting software

    Suggestions for workflow documentation

    • Whether you draft the workflow on a whiteboard or using cue cards, the first iteration is usually messy. Clean up the flow as you document the results of the exercise.
    • Make the workflow as simple as possible and no simpler. Eliminate any decision points that aren’t strictly necessary to complete the procedure.
    • Use standard flowchart shapes (see next slide).
    • Use links to connect to related documentation.
    • Review the documented workflow with participants.

    Download the following workflow examples:

    Establish flowcharting standards

    If you don’t have existing flowchart standards, then keep it simple and stick to basic flowcharting conventions as described below.

    Basic flowcharting convention: a circle can be used for 'Start, End, and Connector'. Start, End, and Connector: Traditional flowcharting standards reserve this shape for connectors to other flowcharts or other points in the existing flowchart. Unified Modeling Language (UML) also uses the circle for start and end points.
    Basic flowcharting convention: a rounded rectangle can be used for 'Start and End'. Start and End: Traditional flowcharting standards use this for start and end. However, Info-Tech recommends using the circle shape to reduce the number of shapes and avoid confusion with other similar shapes.
    Basic flowcharting convention: a rectangle can be used for 'Process Step'. Process Step: Individual process steps or activities (e.g. create ticket or escalate ticket). If it’s a series of steps, then use the subprocess symbol and flowchart the subprocess separately.
    Basic flowcharting convention: a rectangle with double-line on the ends can be used for 'Subprocess'. Subprocess: A series of steps. For example, a critical incident SOP might reference a recovery process as one of the possible actions. Marking it as a subprocess, rather than listing each step within the critical incident SOP, streamlines the flowchart and avoids overlap with other flowcharts (e.g. the recovery process).
    Basic flowcharting convention: a diamond can be used for 'Decision'. Decision: Represents decision points, typically with Yes/No branches, but you could have other branches depending on the question (e.g. a “Priority?” question could branch into separate streams for Priority 1, 2, 3, 4, and 5 issues).
    Basic flowcharting convention: a rectangle with a wavy bottom can be used for 'Document/Report Output'. Document/Report Output: For example, the output from a backup process might include an error log.

    Support workflows with checklists and diagrams

    Diagrams

    • Diagrams are a visual representation of real-world phenomena and the connections between them.
    • Be sure to use standard shapes. Clearly label elements of the diagram. Use standard practices, including titles, dates, authorship, and versioning.
    • IT systems and interconnections are layered. Include physical, logical, protocol, and data flow connections.

    Examples:

    • XMPL Recovery Workflows
    • Workflow Library

    Checklists

    • Checklists are best used as short-form reminders on how to complete a particular task.
    • Remember the audience. If the process will be carried out by technical staff, there’s technical background material you won’t need to spell out in detail.

    Examples:

    • Employee Termination Process Checklist
    • XMPL Systems Recovery Playbook

    Establish a cadence for documentation review and maintenance

    Lock-in the work with strong document management practices.

    • Identify documentation requirements as part of project planning.
    • Require a manager or supervisor to review and approve SOPs.
    • Check documentation status as part of change management.
    • Hold staff accountable for documentation.

    "It isn’t unusual for us to see infrastructure or operations documentation that is wildly out of date. We’re talking months, even years. Often it was produced as one big effort and then not reliably maintained." (Gary Patterson, Consultant, Quorum Resources)

    Only a quarter of organizations update SOPs as needed

    A bar chart representing how often organizations update SOPs. Each option has two bars, one representing 'North America', the other representing 'Europe and Asia'. 'Never or rarely' is 11% in North America and 3% in Europe and Asia. 'Ad-hoc approach' is 38% in North America and 28% in Europe and Asia. 'For audits/annual reviews' is 33% in North America and 45% in Europe and Asia. 'As needed/via change management' is 18% in North America and 25% in Europe and Asia. Source: Info-Tech Research Group (N=104)

    Info-Tech Best Practice

    Use Info-Tech’s research Create Visual SOP Documents to further evaluate document management practices and toolsets.

    Phase 3: Review accomplishments

    Workflow documentation: Cue cards into flowcharts

    Summary of Accomplishments

    • Identified priority procedures for documentation activities.
    • Created procedure documentation in the appropriate format and level of granularity to support Infra & Ops policies.
    • Published and maintained procedure documentation.

    Research contributors and experts

    Carole Fennelly, Owner
    cFennelly Consulting

    Picture of Carole Fennelly, Owner, cFennelly Consulting.

    Carole Fennelly provides pragmatic cyber security expertise to help organizations bridge the gap between technical and business requirements. She authored the Center for Internet Security (CIS) Solaris and Red Hat benchmarks, which are used globally as configuration standards to secure IT systems. As a consultant, Carole has defined security strategies, and developed policies and procedures to implement them, at numerous Fortune 500 clients. Carole is a Certified Information Security Manager (CISM), Certified Security Compliance Specialist (CSCS), and Certified HIPAA Professional (CHP).

    Marko Diepold, IT Audit Manager
    audit2advise

    Picture of Marko Diepold, IT Audit Manager, audit2advise.

    Marko is an IT Audit Manager at audit2advise, where he delivers audit, risk advisory, and project management services. He has worked as a Security Officer, Quality Manager, and Consultant at some of Germany’s largest companies. He is a CISA and is ITIL v3 Intermediate and ITGCP certified.

    Research contributors and experts

    Martin Andenmatten, Founder & Managing Director
    Glenfis AG

    Picture of Martin Andenmatten, Founder and Managing Director, Glenfis AG.

    Martin is a digital transformation enabler who has been involved in various fields of IT for more than 30 years. At Glenfis, he leads large Governance and Service Management projects for various customers. Since 2002, he has been the course manager for ITIL® Foundation, ITIL® Service Management, and COBIT training. He has published two books on ISO 20000 and ITIL.

    Myles F. Suer, CIO Chat Facilitator
    CIO.com/Dell Boomi

    Picture of Myles F. Suer, CIO Chat Facilitator, CIO.com/Dell Boomi.

    Myles Suer, according to LeadTails, is the number 9 influencer of CIOs. He is also the facilitator for the CIOChat, which has executive-level participants from around the world in such industries as banking, insurance, education, and government. Myles is also the Industry Solutions Marketing Manager at Dell Boomi.

    Research contributors and experts

    Peter Sheingold, Portfolio Manager
    Cybersecurity, Homeland Security Center, The MITRE Corporation

    Picture of Peter Sheingold, Portfolio Manager, Cybersecurity, Homeland Security Center, The MITRE Corporation.

    Peter leads tasks that involve collaboration with the Department of Homeland Security (DHS) sponsors and MITRE colleagues and connect strategy, policy, organization, and technology. He brings a deep background in homeland security and strategic analysis to his work with DHS in the immigration, border security, and cyber mission spaces. Peter came to MITRE in 2005 but has worked with DHS from its inception.

    Robert D. Austin, Professor
    Ivey Business School

    Picture of Robert D. Austin, Professor, Ivey Business School.

    Dr. Austin is a professor of Information Systems at Ivey Business School and an affiliated faculty member at Harvard Medical School. Before his appointment at Ivey, he was a professor of Innovation and Digital Transformation at Copenhagen Business School, and, before that, a professor of Technology and Operations Management at the Harvard Business School.

    Research contributors and experts

    Ron Jones, Director of IT Infrastructure and Service Management
    DATA Communications

    Picture of Ron Jones, Director of IT Infrastructure and Service Management, DATA Communications.

    Ron is a senior IT leader with over 20 years of management experiences from engineering to IT Service Management and operations support. He is known for joining organizations and leading enhanced process efficiency and has improved software, hardware, infrastructure, and operations solution delivery and support. Ron has worked for global and Canadian firms including BlackBerry, DoubleClick, Cogeco, Infusion, Info-Tech Research Group, and Data Communications Management.

    Scott Genung, Executive Director of Networking, Infrastructure, and Service Operations
    University of Chicago

    Picture of Scott Genung, Executive Director of Networking, Infrastructure, and Service Operations, University of Chicago.

    Scott is an accomplished IT executive with 26 years of experience in technical and leadership roles. In his current role, Scott provides strategic leadership, vision, and oversight for an IT portfolio supporting 31,000 users consisting of services utilized by campuses located in North America, Asia, and Europe; oversees the University’s Command Center; and chairs the UC Cyberinfrastructure Alliance (UCCA), a group of research IT providers that collectively deliver services to the campus and partners.

    Research contributors and experts

    Steve Weil, CISSP, CISM, CRISC, Information Security Director, Cybersecurity Principal Consultant
    Point B

    Picture of Steve Weil, CISSP, CISM, CRISC, Information Security Director, Cybersecurity Principal Consultant, Point B.

    Steve has 20 years of experience in information security design, implementation, and assessment. He has provided information security services to a wide variety of organizations, including government agencies, hospitals, universities, small businesses, and large enterprises. With his background as a systems administrator, security consultant, security architect, and information security director, Steve has a strong understanding of both the strategic and tactical aspects of information security. Steve has significant hands-on experience with security controls, operating systems, and applications. Steve has a master's degree in Information Science from the University of Washington.

    Tony J. Read, Senior Program/Project Lead & Interim IT Executive
    Read & Associates

    Picture of Tony J. Read, Senior Program/Project Lead and Interim IT Executive, Read and Associates.

    Tony has over 25 years of international IT leadership experience, within high tech, computing, telecommunications, finance, banking, government, and retail industries. Throughout his career, Tony has led and successfully implemented key corporate initiatives, contributing millions of dollars to the top and bottom line. He established Read & Associates in 2002, an international IT management and program/project delivery consultancy practice whose aim is to provide IT value-based solutions, realizing stakeholder economic value and network advantage. These key concepts are presented in his new book: The IT Value Network: From IT Investment to Stakeholder Value, published by J. Wiley, NJ.

    Related Info-Tech research

    • Develop and Deploy Security Policies
    • Develop an Availability and Capacity Management Plan
    • Improve IT Operations Management
    • Develop an IT Infrastructure Services Playbook
    • Create a Right-Sized Disaster Recovery Plan
    • Develop a Business Continuity Plan
    • Implement IT Asset Management
    • Optimize Change Management
    • Standardize the Service Desk
    • Incident and Problem Management
    • Design & Build a User-Facing Service Catalog

    Bibliography

    “About Controls.” Ohio University, ND. Web. 2 Feb 2018.

    England, Rob. “How to implement ITIL for a client?” The IT Skeptic. Two Hills Ltd, 4 Feb. 2010. Web. 2018.

    “Global Corporate IT Security Risks: 2013.” Kaspersky Lab, May 2013. Web. 2018.

    “Information Security and Technology Policies.” City of Chicago, Department of Innovation and Technology, Oct. 2014. Web. 2018.

    ISACA. COBIT 5: Enabling Processes. International Systems Audit and Control Association. Rolling Meadows, IL.: 2012.

    “IT Policy & Governance.” NYC Information Technology & Telecommunications, ND. Web. 2018.

    King, Paula and Kent Wada. “IT Policy: An Essential Element of IT Infrastructure”. EDUCAUSE Review. May-June 2001. Web. 2018.

    Luebbe, Max. “Simplicity.” Site Reliability Engineering. O’Reilly Media. 2017. Web. 2018.

    Swartout, Shawn. “Risk assessment, acceptance, and exception with a process view.” ISACA Charlotte Chapter September Event, 2013. Web. 2018.

    “User Guide to Writing Policies.” Office of Policy and Efficiency, University of Colorado, ND. Web. 2018.

    “The Value of Policies and Procedures.” New Mexico Municipal League, ND. Web. 2018.

    Build a Roadmap for Service Management Agility

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    • Business is moving faster than ever and IT is getting more demands at a faster pace.
    • Many IT organizations have traditional structures and approaches that have served them well in the past. However, these frameworks and approaches alone are no longer sufficient for today’s challenges and rapidly changing environment.
    • The inability to adaptively design and deliver services as requirements change has led to diminishing service quality and an increase in shadow IT.

    Our Advice

    Critical Insight

    • Being Agile is a mindset. It is not meant to be prescriptive, but to encourage you to leverage the best approaches, frameworks, and tools to meet your needs and get the job done now.
    • The goal of service management is to enable and drive value for the business. Service management practices have to be flexible and adaptable enough to manage and deliver the right service value at the right time at the right level of quality.

    Impact and Result

    • Understand Agile principles, how they align with service management principles, and what the optimal states for agility look like.
    • Use Info-Tech’s advice and tools to perform an assessment of your organization’s state of agility, identify the gaps, and create a custom roadmap to incorporate agility into your service management practice.
    • Increase business satisfaction. The ultimate outcome of having agility in your service delivery is satisfied customers.

    Build a Roadmap for Service Management Agility Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create a roadmap for service management agility, 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. Understand the optimal state for agility

    Understand the components of agility and what the optimal states are for service management agility.

    • Build a Roadmap for Service Management Agility – Phase 1: Understand the Optimal States for Agility

    2. Assess your current state of agility

    Determine the current state of agility in the service management practice.

    • Build a Roadmap for Service Management Agility – Phase 2: Assess Your Current State of Agility
    • Service Management Agility Assessment Tool

    3. Build the roadmap

    Create a roadmap for service management agility and present it to key stakeholders to obtain their support.

    • Build a Roadmap for Service Management Agility – Phase 3: Build the Roadmap for Service Management Agility
    • Service Management Agility Roadmap Template
    • Building Agility Into Our Service Management Practice Stakeholders Presentation Template
    [infographic]

    Workshop: Build a Roadmap for Service Management Agility

    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 the Optimal States for Agility in Service Management

    The Purpose

    Understand agility and how it can complement service management.

    Understand how the components of culture, structure, processes, and resources enable agility in service management.

    Key Benefits Achieved

    Clear understanding of Agile principles.

    Identifying opportunities for agility.

    Understanding of how Agile principles align with service management.

    Activities

    1.1 Understand agility.

    1.2 Understand how Agile methodologies can complement service management through culture, structure, processes, and resources.

    Outputs

    Summary of Agile principles.

    Summary of optimal components in culture, structure, processes, and resources that enable agility.

    2 Assess Your Current State of Agility in Service Management

    The Purpose

    Assess your current organizational agility with respect to culture, structure, processes, and resources.

    Identify your agility strengths and weaknesses with the agility score.

    Key Benefits Achieved

    Understand your organization’s current enablers and constraints for agility.

    Have metrics to identify strengths or weaknesses in culture, structure, processes, and resources.

    Activities

    2.1 Complete an agility assessment.

    Outputs

    Assessment score of current state of agility.

    3 Build the Roadmap for Service Management Agility

    The Purpose

    Determine the gaps between the current and optimal states for agility.

    Create a roadmap for service management agility.

    Create a stakeholders presentation.

    Key Benefits Achieved

    Have a completed custom roadmap that will help build sustainable agility into your service management practice.

    Present the roadmap to key stakeholders to communicate your plans and get organizational buy-in.

    Activities

    3.1 Create a custom roadmap for service management agility.

    3.2 Create a stakeholders presentation on service management agility.

    Outputs

    Completed roadmap for service management agility.

    Completed stakeholders presentation on service management agility.

    Modernize Your SDLC

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    • Parent Category Name: Development
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    • Today’s rapidly scaling and increasingly complex products create mounting pressure on delivery teams to release new features and changes quickly and with sufficient quality.
    • Many organizations lack the critical capabilities and resources needed to satisfy their growing backlog, jeopardizing product success.

    Our Advice

    Critical Insight

    • Delivery quality and throughput go hand in hand. Focus on meeting minimum process and product quality standards first. Improved throughput will eventually follow.
    • Business integration is not optional. The business must be involved in guiding delivery efforts, and ongoing validation and verification product changes.
    • The software development lifecycle (SDLC) must deliver more than software. Business value is generated through the products and services delivered by your SDLC. Teams must provide the required product support and stakeholders must be willing to participate in the product’s delivery.

    Impact and Result

    • Standardize your definition of a successful product. Come to an organizational agreement of what defines a high-quality and successful product. Accommodate both business and IT perspectives in your definition.
    • Clarify the roles, processes, and tools to support business value delivery and satisfy stakeholder expectations. Indicate where and how key roles are involved throughout product delivery to validate and verify work items and artifacts. Describe how specific techniques and tools are employed to meet stakeholder requirements.
    • Focus optimization efforts on most affected stages. Reveal the health of your SDLC from the value delivery, business and technical practice quality standards, discipline, throughput, and governance perspectives with a diagnostic. Identify and roadmap the solutions to overcome the root causes of your diagnostic results.

    Modernize Your SDLC Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should modernize your SDLC, 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. Set your SDLC context

    State the success criteria of your SDLC practice through the definition of product quality and organizational priorities. Define your SDLC current state.

    • Modernize Your SDLC – Phase 1: Set Your SDLC Context
    • SDLC Strategy Template

    2. Diagnose your SDLC

    Build your SDLC diagnostic framework based on your practice’s product and process objectives. Root cause your improvement opportunities.

    • Modernize Your SDLC – Phase 2: Diagnose Your SDLC
    • SDLC Diagnostic Tool

    3. Modernize your SDLC

    Learn of today’s good SDLC practices and use them to address the root causes revealed in your SDLC diagnostic results.

    • Modernize Your SDLC – Phase 3: Modernize Your SDLC
    [infographic]

    Workshop: Modernize Your SDLC

    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 Set Your SDLC Context

    The Purpose

    Discuss your quality and product definitions and how quality is interpreted from both business and IT perspectives.

    Review your case for strengthening your SDLC practice.

    Review the current state of your roles, processes, and tools in your organization.

    Key Benefits Achieved

    Grounded understanding of products and quality that is accepted across the organization.

    Clear business and IT objectives and metrics that dictate your SDLC practice’s success.

    Defined SDLC current state people, process, and technologies.

    Activities

    1.1 Define your products and quality.

    1.2 Define your SDLC objectives.

    1.3 Measure your SDLC effectiveness.

    1.4 Define your current SDLC state.

    Outputs

    Product and quality definitions.

    SDLC business and technical objectives and vision.

    SDLC metrics.

    SDLC capabilities, processes, roles and responsibilities, resourcing model, and tools and technologies.

    2 Diagnose Your SDLC

    The Purpose

    Discuss the components of your diagnostic framework.

    Review the results of your SDLC diagnostic.

    Key Benefits Achieved

    SDLC diagnostic framework tied to your SDLC objectives and definitions.

    Root causes to your SDLC issues and optimization opportunities.

    Activities

    2.1 Build your diagnostic framework.

    2.2 Diagnose your SDLC.

    Outputs

    SDLC diagnostic framework.

    Root causes to SDLC issues and optimization opportunities.

    3 Modernize Your SDLC

    The Purpose

    Discuss the SDLC practices used in the industry.

    Review the scope and achievability of your SDLC optimization initiatives.

    Key Benefits Achieved

    Knowledge of good practices that can improve the effectiveness and efficiency of your SDLC.

    Realistic and achievable SDLC optimization roadmap.

    Activities

    3.1 Learn and adopt SDLC good practices.

    3.2 Build your optimization roadmap.

    Outputs

    Optimization initiatives and target state SDLC practice.

    SDLC optimization roadmap, risks and mitigations, and stakeholder communication flow.

    Modernize Your Applications

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    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • Application modernization is essential to stay competitive and productive in today’s digital environment. Your stakeholders have outlined their digital business goals that IT is expected to meet.
    • Your application portfolio cannot sufficiently support the flexibility and efficiency the business needs because of legacy challenges.
    • Your teams do not have a framework to illustrate, communicate, and justify the modernization effort and organizational changes in the language your stakeholders understand.

    Our Advice

    Critical Insight

    • Build your digital applications around continuous modernization. End-user needs, technology, business direction, and regulations rapidly change in today’s competitive and fast-paced industry. This reality will quickly turn your modern applications into shelfware. Build continuous modernization at the center of your digital application vision to keep up with evolving business, end-user, and IT needs.
    • Application modernization is organizational change management. If you build and modernize it, they may not come. The crux of successful application modernization is centered on the strategic, well-informed, and onboarded adoption of changes in key business areas, capabilities, and processes. Organizational change management must be front and center so that applications are fit for purpose and are something that end users want and need to use.
    • Business-IT collaboration is not optional. Application modernization will not be successful if your lines of business (LOBs) and IT are not working together. IT must empathize how LOBs operate and proactively support the underlying operational systems. LOBs must be accountable for all products leveraging modern technologies and be able to rationalize the technical feasibility of their digital application vision.

    Impact and Result

    • Establish the digital application vision. Gain a grounded understanding of the digital application construct and prioritize these attributes against your digital business goals.
    • Define your modernization approach. Obtain a thorough view of your business and technical complexities, risks, and impacts. Employ the right modernization techniques based on your organization’s change tolerance.
    • Build your roadmap. Clarify the organizational changes needed to support modernization and adoption of your digital applications.

    Modernize Your Applications Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should strategically modernize your applications, 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. Set your vision

    Describe your application vision and set the right modernization expectations with your stakeholders.

    • Modernize Your Applications – Phase 1: Set Your Vision

    2. Identify your modernization opportunities

    Focus your modernization efforts on the business opportunities that your stakeholders care about.

    • Modernize Your Applications – Phase 2: Identify Your Modernization Opportunities

    3. Plan your modernization

    Describe your modernization initiatives and build your modernization tactical roadmap.

    • Modernize Your Applications – Phase 3: Plan Your Modernization
    [infographic]

    Workshop: Modernize Your Applications

    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 Set Your Vision

    The Purpose

    Discuss the goals of your application modernization initiatives

    Define your digital application vision and priorities

    List your modernization principles

    Key Benefits Achieved

    Clear application modernization objectives and high priority value items

    Your digital application vision and attributes

    Key principles that will guide your application modernization initiatives

    Activities

    1.1 State Your Objectives

    1.2 Characterize Your Digital Application

    1.3 Define Your Modernization Principles

    Outputs

    Application modernization objectives

    Digital application vision and attributes definitions

    List of application modernization principles and guidelines

    2 Identify Your Modernization Opportunities

    The Purpose

    Identify the value streams and business capabilities that will benefit the most from application modernization

    Conduct a change tolerance assessment

    Build your modernization strategic roadmap

    Key Benefits Achieved

    Understanding of the value delivery improvements modernization can bring

    Recognizing the flexibility and tolerance of your organization to adopt changes

    Select an approach that best fits your organization’s goals and capacity

    Activities

    2.1 Identify the Opportunities

    2.2 Define Your Modernization Approach

    Outputs

    Value streams and business capabilities that are ideal modernization opportunities

    Your modernization strategic roadmap based on your change tolerance and modernization approach

    3 Plan Your Modernization

    The Purpose

    Identify the most appropriate modernization technique and the scope of changes to implement your techniques

    Develop an actionable tactical roadmap to complete your modernization initiatives

    Key Benefits Achieved

    Clear understanding of what must be changed to the organization and application considering your change tolerance

    An achievable modernization plan

    Activities

    3.1 Shortlist Your Modernization Techniques

    3.2 Roadmap Your Modernization Initiatives

    Outputs

    Scope of your application modernization initiatives

    Your modernization tactical roadmap

    Info-Tech Quarterly Research Agenda Outcomes Q2-Q3 2023

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    • Parent Category Name: IT Strategy
    • Parent Category Link: /it-strategy

    At Info-Tech, we take pride in our research and have established the most rigorous publication standards in the industry. However, we understand that engaging with all our analysts to gauge the future may not always be possible. Hence, we have curated some compelling recently published research along with forthcoming research insights to assist you in navigating the next quarter.

    Our Advice

    Critical Insight

    We offer a quarterly Research Agenda Outcomes deck that thoroughly summarizes our recently published research, supplying decision makers with valuable insights and best practices to make informed and effective decisions. Our research is supported by our team of seasoned analysts with decades of experience in the IT industry.

    By leveraging our research, you can stay updated with the latest trends and technologies, giving you an edge over the competition and ensuring the optimal performance of your IT department. This way, you can make confident decisions that lead to remarkable success and improved outcomes.

    Impact and Result

    • Enhance preparedness for future market trends and developments: Keep up to date with the newest trends and advancements in the IT sector to be better prepared for the future.
    • Enhance your decision making: Acquire valuable information and insights to make better-informed, confident decisions.
    • Promote innovation: Foster creativity, explore novel perspectives, drive innovation, and create new products or services.

    Info-Tech Quarterly Research Agenda Outcomes Q2/Q3 2023 Research & Tools

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

    1. Info-Tech Quarterly Research Agenda Q3 2023 Deck – An overview of our Research Agenda Outcome for Q2 and Q3 of 2023.

    A guide to our top research published to date for 2023 (Q2/Q3).

    • Info-Tech Quarterly Research Agenda Outcomes for Q2/Q3 2023
    [infographic]

    Further reading

    Featured Research Projects 2023 (Q2/Q3)

    “Here are my selections for the top research projects of the last quarter.”

    Photo of Gord Harrison, Head of Research & Advisory, Info-Tech Research Group.

    Gord Harrison
    Head of Research & Advisory
    Info-Tech Research Group

    CIO

    01
    Build Your Generative AI Roadmap

    Generative AI is here, and it's time to find its best uses – systematically and responsibly.

    02
    CIO Priorities 2023

    Engage cross-functional leadership to seize opportunity while protecting the organization from volatility.

    03
    Build an IT Risk Taxonomy

    If integrated risk is your destination, your IT risk taxonomy is the road to get you there.

    04
    Navigate the Digital ID Ecosystem to Enhance Customer Experience

    Beyond the hype: How it can help you become more customer-focused?

    05
    Effective IT Communications

    Generative AI is here, and it's time to find its best uses – systematically and responsibly.

    06
    Develop a Targeted Flexible Work Program for IT

    Select flexible work options that balance organizational and employee needs to drive engagement and improve attraction and retention.

    07
    Effectively Manage CxO Relations

    Make relationship management a daily habit with a personalized action plan.

    08
    Establish High-Value IT Performance Dashboards and Metrics

    Spend less time struggling with visuals and more time communicating about what matters to your executives.

    Applications

    09
    Build Your Enterprise Application Implementation Playbook

    Your implementation doesn't start with technology but with an effective plan that the team can align on.

    10
    Develop Your Value-First Business Process Automation Strategy

    As you scale your business automations, focus on what matters most.

    11
    Manage Requirements in an Agile Environment

    Agile and requirements management are complementary, not competitors.

    Security

    12
    Assess Your Cybersecurity Insurance Policy

    Adapt to changes in the cyber insurance market.

    13
    Design and Implement a Business-Aligned Security Program

    Focus first on business value.

    Infrastructure & Operations

    14
    Automate IT Asset Data Collection

    Acquire and use discovery tools wisely to populate, update, and validate the data in your ITAM database.

    Industry | Retail

    15
    Leveraging AI to Create Meaningful Insights and Visibility in Retail

    AI prominence across the enterprise value chain.

    Industry | Education

    16
    Understand the Implications of Generative AI in Education

    Bans aren't the answer, but what is?

    Industry | Wholesale

    17
    Wholesale Industry Business Reference Architecture

    Business capability maps, value streams, and strategy maps for the wholesale industry.

    Industry | Retail Banking

    18
    Mainframe Modernization for Retail Banking

    A strategy for modernizing mainframe systems to meet the needs of modern retail banking.

    Industry | Utilities

    19
    Data Analytics Use Cases for Utilities

    Building upon the collective wisdom for the art of the possible.

    Build Your Generative AI Roadmap

    Generative AI is here, and it's time to find its best uses – systematically and responsibly.

    CIO
    Strategy & Governance

    Photo of Bill Wong, Principal Research Director, Info-Tech Research Group.

    Bill Wong
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Build Your Generative AI Roadmap' research.

    Sample of the 'Build Your Generative AI Roadmap' research.

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    CIO Priorities 2023

    Engage cross-functional leadership to seize opportunity while protecting the organization from volatility.

    CIO
    Strategy & Governance

    Photo of Brian Jackson, Principal Research Director, Info-Tech Research Group.

    Brian Jackson
    Principal Research Director

    Download this report or book an analyst call on this topic

    Sample of the 'CIO Priorities 2023' report.

    Sample of the 'CIO Priorities 2023' report.

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    Build an IT Risk Taxonomy

    If integrated risk is your destination, your IT risk taxonomy is the road to get you there.

    CIO
    Strategy & Governance

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

    Donna Bales
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Build an IT Risk Taxonomy' research.

    Sample of the 'Build an IT Risk Taxonomy' research.

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    Navigate the Digital ID Ecosystem to Enhance Customer Experience

    Beyond the hype: How it can help you become more customer-focused?

    CIO
    Strategy & Governance

    Photo of Manish Jain, Principal Research Director, Info-Tech Research Group.

    Manish Jain
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Navigate the Digital ID Ecosystem to Enhance Customer Experience' research.

    Sample of the 'Navigate the Digital ID Ecosystem to Enhance Customer Experience' research.

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    Effective IT Communications

    Empower IT employees to communicate well with any stakeholder across the organization.

    CIO
    People & Leadership

    Photo of Brittany Lutes, Research Director, Info-Tech Research Group.

    Brittany Lutes
    Research Director

    Photo of Diana MacPherson, Senior Research Analyst, Info-Tech Research Group.

    Diana MacPherson
    Senior Research Analyst

    Download this research or book an analyst call on this topic

    Effective IT Communications' research.

    Sample of the 'Effective IT Communications' research.

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    Develop a Targeted Flexible Work Program for IT

    Select flexible work options that balance organizational and employee needs to drive engagement and improve attraction and retention.

    CIO
    People & Leadership

    Photo of Jane Kouptsova, Research Director, Info-Tech Research Group.

    Jane Kouptsova
    Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Develop a Targeted Flexible Work Program for IT' research.

    Sample of the 'Develop a Targeted Flexible Work Program for IT' research.

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    Effectively Manage CxO Relations

    Make relationship management a daily habit with a personalized action plan.

    CIO
    Value & Performance

    Photo of Mike Tweedle, Practice Lead, Info-Tech Research Group.

    Mike Tweedle
    Practice Lead

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    Sample of the 'Effectively Manage CxO Relations' research.

    Sample of the 'Effectively Manage CxO Relations' research.

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    Establish High-Value IT Performance Dashboards and Metrics

    Spend less time struggling with visuals and more time communicating about what matters to your executives.

    CIO
    Value & Performance

    Photo of Diana MacPherson, Senior Research Analyst, Info-Tech Research Group.

    Diana MacPherson
    Senior Research Analyst

    Download this research or book an analyst call on this topic

    Sample of the 'Establish High-Value IT Performance Dashboards and Metrics' research.

    Sample of the 'Establish High-Value IT Performance Dashboards and Metrics' research.

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    Build Your Enterprise Application Implementation Playbook

    Your implementation doesn't start with technology but with an effective plan that the team can align on.

    Applications
    Business Processes

    Photo of Ricardo de Oliveira, Research Director, Info-Tech Research Group.

    Ricardo de Oliveira
    Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Build Your Enterprise Application Implementation Playbook' research.

    Sample of the 'Build Your Enterprise Application Implementation Playbook' research.

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    Develop Your Value-First Business Process Automation Strategy

    As you scale your business automations, focus on what matters most.

    Applications
    Business Processes

    Photo of Andrew Kum-Seun, Research Director, Info-Tech Research Group.

    Andrew Kum-Seun
    Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Develop Your Value-First Business Process Automation Strategy' research.

    Sample of the 'Develop Your Value-First Business Process Automation Strategy' research.

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    Manage Requirements in an Agile Environment

    Agile and requirements management are complementary, not competitors.

    Applications
    Application Development

    Photo of Vincent Mirabelli, Principal Research Director, Info-Tech Research Group.

    Vincent Mirabelli
    Principal Research Director

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    Sample of the 'Manage Requirements in an Agile Environment' research.

    Sample of the 'Manage Requirements in an Agile Environment' research.

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    Assess Your Cybersecurity Insurance Policy

    Adapt to changes in the cyber insurance market.

    Security
    Security Risk, Strategy & Governance

    Photo of Logan Rohde, Senior Research Analyst, Info-Tech Research Group.

    Logan Rohde
    Senior Research Analyst

    Download this research or book an analyst call on this topic

    Sample of the 'Assess Your Cybersecurity Insurance Policy' research.

    Sample of the 'Assess Your Cybersecurity Insurance Policy' research.

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    Design and Implement a Business-Aligned Security Program

    Focus first on business value.

    Security
    Security Risk, Strategy & Governance

    Photo of Michel Hébert, Research Director, Info-Tech Research Group.

    Michel Hébert
    Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Design and Implement a Business-Aligned Security Program' research.

    Sample of the 'Design and Implement a Business-Aligned Security Program' research.

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    Automate IT Asset Data Collection

    Acquire and use discovery tools wisely to populate, update, and validate the data in your ITAM database.

    Infrastructure & Operations
    I&O Process Management

    Photo of Andrew Sharp, Research Director, Info-Tech Research Group.

    Andrew Sharp
    Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Automate IT Asset Data Collection' research.

    Sample of the 'Automate IT Asset Data Collection' research.

    Logo for Info-Tech.

    Leveraging AI to Create Meaningful Insights and Visibility in Retail

    AI prominence across the enterprise value chain.

    Industry Coverage
    Retail

    Photo of Rahul Jaiswal, Principal Research Director, Info-Tech Research Group.

    Rahul Jaiswal
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Leveraging AI to Create Meaningful Insights and Visibility in Retail' research.

    Sample of the 'Leveraging AI to Create Meaningful Insights and Visibility in Retail' research.

    Logo for Info-Tech.

    Understand the Implications of Generative AI in Education

    Bans aren't the answer, but what is?

    Industry Coverage
    Education

    Photo of Mark Maby, Research Director, Info-Tech Research Group.

    Mark Maby
    Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Understand the Implications of Generative AI in Education' research.

    Sample of the 'Understand the Implications of Generative AI in Education' research.

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    Wholesale Industry Business Reference Architecture

    Business capability maps, value streams, and strategy maps for the wholesale industry.

    Industry Coverage
    Wholesale

    Photo of Rahul Jaiswal, Principal Research Director, Info-Tech Research Group.

    Rahul Jaiswal
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Wholesale Industry Business Reference Architecture' research.

    Sample of the 'Wholesale Industry Business Reference Architecture' research.

    Logo for Info-Tech.

    Mainframe Modernization for Retail Banking

    A strategy for modernizing mainframe systems to meet the needs of modern retail banking.

    Industry Coverage
    Retail Banking

    Photo of David Tomljenovic, Principal Research Director, Info-Tech Research Group.

    David Tomljenovic
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Mainframe Modernization for Retail Banking' research.

    Sample of the 'Mainframe Modernization for Retail Banking' research.

    Logo for Info-Tech.

    Data Analytics Use Cases for Utilities

    Building upon the collective wisdom for the art of the possible.

    Industry Coverage
    Utilities

    Photo of Jing Wu, Principal Research Director, Info-Tech Research Group.

    Jing Wu
    Principal Research Director

    Download this research or book an analyst call on this topic

    Sample of the 'Data Analytics Use Cases for Utilities' research.

    Sample of the 'Data Analytics Use Cases for Utilities' research.

    Sneak Peaks: Research coming in next quarter!

    “Next quarter we have a big lineup of reports and some great new research!”

    Photo of Gord Harrison, Head of Research & Advisory, Info-Tech Research Group.

    Gord Harrison
    Head of Research & Advisory
    Info-Tech Research Group

    1. Build MLOps and Engineering for AI and ML

      Enabling you to develop your Engineering and ML Operations to support your current & planned use cases for AI and ML.
    2. Leverage Gen AI to Improve Your Test Automation Strategy

      Enabling you to embed Gen AI to assist your team during testing broader than Gen AI compiling code.
    3. Make Your IT Financial Data Accessible, Reliable, and Usable

      This project will provide a recipe for bringing IT's financial data to a usable state through a series of discovery, standardization, and policy-setting actions.
    4. Implement Integrated AI Governance

      Enabling you to implement best-practice governance principles when implementing Gen AI.
    5. Develop Exponential IT Capabilities

      Enabling you to understand and develop your strategic Exponential IT capabilities.
    6. Build Your AI Strategy and Roadmap

      This project will provide step-by-step guidance in development of your AI strategy with an AI strategy exemplar.
    7. Priorities for Data Leaders in 2024 and Beyond

      This report will detail the top five challenges expected in the upcoming year and how you as the CDAO can tackle them.
    8. Deploy AIOps More Effectively

      This research is designed to assess the process maturity of your IT operations and help identify pain pains and opportunities for AI deployment within your IT operations.
    9. Design Your Edge Computing Architecture

      This research will provide deployment guidelines and roadmap to address your edge computing needs.
    10. Manage Change in the AI-Enabled Enterprise

      Managing change is complex with the disruptive nature of emerging tech like AI. This research will assist you from an organizational change perspective.
    11. Assess the Security and Privacy Impacts of Your AI Vendors

      This research will allow you to enhance transparency, improve risk management, and ensure the security and privacy of data when working with AI vendors.
    12. Prepare Your Board for AI Disruption

      This research will arm you with tools to educate your board on the impact of Gen AI, addressing the potential risks and the potential benefits.

    Info-Tech Research Leadership Team

    “We have a world-class team of experts focused on providing practical, cutting-edge IT research and advice.”

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    Gord Harrison
    Head of Research & Advisory
    Info-Tech Research Group

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

    Jack Hakimian
    Senior Vice President
    Research Development

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    Aaron Shum
    Vice President
    Security & Privacy Research

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    Larry Fretz
    Vice President
    Industry Research

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    Mark Tauschek
    Vice President
    Research Fellowships

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    Tom Zehren
    Chief Product Officer

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    Rick Pittman
    Vice President
    Advisory Quality & Delivery

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    Nora Fisher
    Vice President
    Shared Services

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    Becca Mackey
    Vice President
    Workshops

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    Geoff Nielson
    Senior Vice President
    Global Services & Delivery

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    Brett Rugroden
    Senior Vice President
    Global Market Programs

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    Hannes Scheidegger
    Senior Vice President
    Global Public Sector

    About Info-Tech Research Group

    Info-Tech Research Group produces unbiased and highly relevant research to help leaders make strategic, timely, and well-informed decisions. We partner closely with your teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for the organization.

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    Build a Winning Business Process Automation Playbook

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    • member rating average dollars saved: $8,065 Average $ Saved
    • member rating average days saved: 7 Average Days Saved
    • 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

    Availability and Capacity Management

    • Buy Link or Shortcode: {j2store}10|cart{/j2store}
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    • member rating overall impact (scale of 10): 8.0/10.0
    • member rating average dollars saved: $2,950
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    • Parent Category Name: Infra and Operations
    • Parent Category Link: /infra-and-operations
    Develop your availability and capacity management plant and align it with exactly what the business expects.

    Harness Configuration Management Superpowers

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    • member rating overall impact (scale of 10): 8.5/10 Overall Impact
    • member rating average dollars saved: $12,999 Average $ Saved
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    • Parent Category Name: Asset Management
    • Parent Category Link: /asset-management
    • Configuration management databases (CMDB) are a lot of work to build and maintain. Starting down this process without the right tools, processes, and buy-in is a lot of work with very little reward.
    • If you decide to just build it and expect they will come, you may find it difficult to articulate the value, and you will be disappointed by the lack of visitors.
    • Relying on manual entry or automated data collection without governance may result in data you can’t trust, and if no one trusts the data, they won’t use it.

    Our Advice

    Critical Insight

    • The right mindset is just as important as the right tools. By involving everyone early, you can ensure the right data is captured and validated and you can make maintenance part of the culture. This is critical to reaching early and continual value with a CMDB.

    Impact and Result

    • Define your use cases: Identify the use cases and prioritize those objectives into phases. Define what information will be needed to meet the use cases and how that information will be populated.
    • Understand and design the CMDB data model: Define services and undiscoverable configuration items (CI) and map them to the discoverable CIs.
    • Operationalize configuration record updates: Define data stewards and governance processes and integrate your configuration management practice with existing practices and lifecycles.

    Harness Configuration Management Superpowers Research & Tools

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

    1. Harness Configuration Management Superpowers Deck – A step-by-step document that walks you through creating a configuration management program.

    Use this blueprint to create a configuration management program that provides immediate value.

    • Harness Configuration Management Superpowers – Phases 1-4

    2. Configuration Management Project Charter Template – A project charter template to help you build a concise document for communicating appropriate project details to stakeholders.

    Use this template to create a project charter to launch the configuration management project.

    • Configuration Management Project Charter

    3. Configuration Control Board Charter Template – A board charter template to help you define the roles and responsibilities of the configuration control board.

    Use this template to create your board charter for your configuration control board (CCB). Define roles and responsibilities and mandates for the CCB.

    • Configuration Control Board Charter

    4. Configuration Management Standard Operating Procedures (SOP) Template – An SOP template to describe processes and procedures for ongoing maintenance of the CMDB under the configuration management program.

    Use this template to create and communicate your SOP to ensure ongoing maintenance of the CMDB under the configuration management program.

    • Configuration Management Standard Operation Procedures

    5. Configuration Management Audit and Validation Checklist Template – A template to be used as a starting point to meet audit requirements under NIST and ITIL programs.

    Use this template to assess capability to pass audits, adding to the template as needed to meet internal auditors’ requirements.

    • Configuration Management Audit and Validation Checklist

    6. Configuration Management Policy Template – A template to be used for building out a policy for governance over the configuration management program.

    Use this template to build a policy for your configuration management program.

    • Configuration Management Policy

    7. Use Cases and Data Worksheet – A template to be used for validating data requirements as you work through use cases.

    Use this template to determine data requirements to meet use cases.

    • Use Cases and Data Worksheet

    8. Configuration Management Diagram Template Library – Examples of process workflows and data modeling.

    Use this library to view sample workflows and a data model for the configuration management program.

    • Configuration Management Diagram Template Library (Visio)
    • Configuration Management Diagram Template Library (PDF)

    9. Configuration Manager Job Description – Roles and responsibilities for the job of Configuration Manager.

    Use this template as a starting point to create a job posting, identifying daily activities, responsibilities, and required skills as you create or expand your configuration management program.

    • Configuration Manager

    Infographic

    Workshop: Harness Configuration Management Superpowers

    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 Configuration Management Strategy

    The Purpose

    Define the scope of your service configuration management project.

    Design the program to meet specific stakeholders needs

    Identify project and operational roles and responsibilities.

    Key Benefits Achieved

    Designed a sustainable approach to building a CMDB.

    Activities

    1.1 Introduction

    1.2 Define challenges and goals.

    1.3 Define and prioritize use cases.

    1.4 Identify data needs to meet these goals.

    1.5 Define roles and responsibilities.

    Outputs

    Data and reporting use cases based on stakeholder requirements

    Roles and responsibility matrix

    2 CMDB Data Structure

    The Purpose

    Build a data model around the desired use cases.

    Identify the data sources for populating the CMDB.

    Key Benefits Achieved

    Identified which CIs and relationships will be captured in the CMDB.

    Activities

    2.1 Define and prioritize your services.

    2.2 Evaluate CMDB default classifications.

    2.3 Test configuration items against existing categories.

    2.4 Build a data model diagram.

    Outputs

    List of CI types and relationships to be added to default settings

    CMDB data model diagram

    3 Processes

    The Purpose

    Key Benefits Achieved

    Built a right-sized approach to configuration record updates and data validation.

    Activities

    3.1 Define processes for onboarding, offboarding, and maintaining data in the CMDB.

    3.2 Define practices for configuration baselines.

    3.3 Build a data validation and auditing plan.

    Outputs

    Documented processes and workflows

    Data validation and auditing plan

    4 Communications & Roadmap

    The Purpose

    Key Benefits Achieved

    Metrics program defined

    Communications designed

    Activities

    4.1 Define key metrics for configuration management.

    4.2 Define metrics for supporting services.

    4.3 Build configuration management policies.

    4.4 Create a communications plan.

    4.5 Build a roadmap

    Outputs

    Policy for configuration management

    Communications documents

    Roadmap for next steps

    Further reading

    Harness Configuration Management Superpowers

    Create a configuration management practice that will provide ongoing value to the organization.

    EXECUTIVE BRIEF

    Analyst Perspective

    A robust configuration management database (CMDB) can provide value to the business and superpowers to IT. It's time to invest smartly to reap the rewards.

    IT environments are becoming more and more complex, and balancing demands for stability and demands for faster change requires visibility to make the right decisions. IT needs to know their environment intimately. They need to understand dependencies and integrations and feel confident they are making decisions with the most current and accurate view.

    Solutions for managing operations rely on the CMDB to bring visibility to issues, calculate impact, and use predictive analytics to fix performance issues before they become major incidents. AIOps solutions need accurate data, but they can also help identify configuration drift and flag changes or anomalies that need investigation.

    The days of relying entirely on manual entry and updates are all but gone, as the functionality of a robust configuration management system requires daily updates to provide value. We used to rely on that one hero to make sure information was up to date, but with the volume of changes we see in most environments today, it's time to improve the process and provide superpowers to the entire IT department.

    This is a picture of Sandi Conrad

    Sandi Conrad, ITIL Managing Professional
    Principal Research Director, IT Infrastructure & Operations, Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Build a configuration management database (CMDB): You need to implement a CMDB, populate it with records and relationships, and integrate it with discovery and management tools.
    • Identify the benefits of a CMDB: Too many CMDB projects fail because IT tries to collect everything. Base your data model on the desired use cases.
    • Define roles and responsibilities: Keeping data accurate and updated is difficult. Identify who will be responsible for helping

    Common Obstacles

    • Significant process maturity is required: Service configuration management (SCM) requires high maturity in change management, IT asset management, and service catalog practices.
    • Large investment: Building a CMDB takes a large amount of effort, process, and expertise.
    • Tough business case: Configuration management doesn't directly provide value to the business, but it requires a lot of investment from IT.

    Info-Tech's Approach

    • Define your scope and objectives: Identify the use cases for SCM and prioritize those objectives into phases.
    • Design the CMDB data model: Align with your existing configuration management system's data model.
    • Operationalize configuration record updates: Integrate your SCM practice with existing practices and lifecycles.

    Start small

    Scope creep is a serial killer of configuration management databases and service configuration management practices.

    Insight summary

    Many vendors are taking a CMDB-first approach to enable IT operations or sometimes asset management. It's important to ensure processes are in place immediately to ensure the data doesn't go stale as additional modules and features are activated.

    Define processes early to ensure success

    The right mindset is just as important as the right tools. By involving everyone early, you can ensure the right data is captured and validated and you can make maintenance part of the culture. This is critical to reaching early and continual value with a CMDB.

    Identify use cases

    The initial use case will be the driving force behind the first assessment of return on investment (ROI). If ROI can be realized early, momentum will increase, and the team can build on the initial successes.

    If you don't see value in the first year, momentum diminishes and it's possible the project will never see value.

    Keep the initial scope small and focused

    Discovery can collect a lot of data quickly, and it's possible to be completely overwhelmed early in the process.

    Build expertise and troubleshoot issues with a smaller scope, then build out the process.

    Minimize customizations

    Most CMDBs have classes and attributes defined as defaults. Use of the defaults will enable easier implementation and faster time to value, especially where automations and integrations depend on standard terms for field mapping.

    Automate as much as possible

    In large, complex environments, the data can quickly become unmanageable. Use automation as much as possible for discovery, dependency mapping, validation, and alerts. Minimize the amount of manual work but ensure everyone is aware of where and how these manual updates need to happen to see continual value.

    Info-Tech's Harness Configuration Management Superpowers.

    Configuration management will improve functionality of all surrounding processes

    A well-functioning CMDB empowers almost all other IT management and governance practices.

    Service configuration management is about:

    • Building a system of record about IT services and the components that support those services.
    • Continuously reconciling and validating information to ensure data accuracy.
    • Ensuring the data lifecycle is defined and well understood and can pass data and process audits.
    • Accessing information in a variety of ways to effectively serve IT and the business.
    An image of Info-Tech's CMDB Configuration Management tree, breaking down aspects into the following six categories: Strategic Partner; Service Provider; Proactive; Stabilize; Core; and Foundational.

    Configuration management most closely impacts these practices

    Info-Tech Research Group sees a clear relationship.

    When an IT department reports they are highly effective at configuration management, they are much more likely to report they are highly effective at these management and governance processes:

    The following management and governance processes are listed: Quality Management; Asset Management; Performance Measurement; Knowledge Management; Release Management; Incident and Problem Management; Service Management; Change Management.

    The data is clear

    Service configuration management is about more than just doing change management more effectively.

    Source: Info-Tech Research Group, IT Management and Governance Diagnostic; N=684 organizations, 2019 to July 2022.

    Make the case to use configuration management to improve IT operations

    Consider the impact of access to data for informing innovations, optimization efforts, and risk assessments.

    75% of Uptime's 2021 survey respondents who had an outage in the past three years said the outage would have been prevented if they'd had better management or processes.(1)

    75%

    75% of Uptime's 2021 survey respondents who had an outage in the past three years said the outage would have been prevented if they'd had better management or processes.(1)

    42%

    of publicly reported outages were due to software or configuration issues. (1)

    58%

    of networking-related IT outages were due to configuration and change management failure.(1)

    It doesn't have to be that way!

    Enterprise-grade IT service management (ITSM) tools require a CMDB for the different modules to work together and to enable IT operations management (ITOM), providing greater visibility.

    Decisions about changes can be made with accurate data, not guesses.

    The CMDB can give the service desk fast access to helpful information about the impacted components, including a history of similar incidents and resolutions and the relationship between the impacted components and other systems and components.

    Turn your team into IT superheroes.

    CMDB data makes it easier for IT Ops groups to:

    • Avoid change collisions.
    • Eliminate poor changes due to lack of visibility into complex systems.
    • Identify problematic equipment.
    • Troubleshoot incidents.
    • Expand the services provided by tier 1 and through automation.

    Benefits of configuration management

    For IT

    • Configuration management will supercharge processes that have relied on inherent knowledge of the IT environment to make decisions.
    • IT will more quickly analyze and understand issues and will be positioned to improve and automate issue identification and resolution.
    • Increase confidence and reduce risks for decisions involving release and change management with access to accurate data, regardless of the complexity of the environment.
    • Reduce or eliminate unplanned work related to poor outcomes due to decisions made with incorrect or incomplete data.

    For the Business

    • Improve strategic planning for business initiatives involving IT solutions, which may include integrations, development, or security concerns.
    • More quickly deploy new solutions or updates due to visibility into complex environments.
    • Enable business outcomes with reliable and stable IT systems.
    • Reduce disruptions caused by planning without accurate data and improve resolution times for service interruptions.
    • Improve access to reporting for budgeting, showbacks, and chargebacks as well as performance metrics.

    Measure the value of this blueprint

    Fast-track your planning and increase the success of a configuration management program with this blueprint

    Workshop feedback
    8.1/10

    $174,000 savings

    30 average days saved

    Guided Implementation feedback

    8.7/10

    $31,496 average savings

    41 average days saved

    "The workshop was well run, with good facilitation, and gained participation from even the most difficult parts of the audience. The best part of the experience was that if I were to find myself in the same position in the future, I would repeat the workshop."

    – University of Exeter

    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 Phase 3 Phase 4

    Call #1: Scope requirements, objectives, and your specific challenges.

    Call #2: Prioritize services and use cases.

    Call #3: Identify data needed to meet goals.

    Call #4: Define roles and responsibilities.

    Call #5: Define and prioritize your services.

    Call #6: Evaluate and test CMDB default classifications.

    Call #7: Build a data model diagram.

    Call #8: Define processes for onboarding, offboarding, and maintaining data.

    Call #9: Discuss configuration baselines.

    Call #10: Build a data validation and audit plan.

    Call #11: Define key metrics.

    Call #12: Build a configuration management policy and communications plan.

    Call #13: Build a roadmap.

    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 9 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

    Configuration Management Strategy

    CMDB Data Structure

    Process Design

    Communications & Roadmap

    Activities
    • Introduction
    • Define challenges and goals.
    • Define and prioritize use cases.
    • Identify data needed to meet goals.
    • Define roles and responsibilities.
    • Define and prioritize your services.
    • Evaluate CMDB default classifications.
    • Test configuration items against existing categories.
    • Build a data model diagram.
    • Define processes for onboarding, offboarding, and maintaining data in the CMDB.
    • Define practices for configuration baselines.
    • Build a data validation and auditing plan.
    • Define key metrics for configuration management.
    • Define metrics for supporting services.
    • Build configuration management policies.
    • Create a communications plan.
    • Build a roadmap.

    Deliverables

    • Roles and responsibility matrix
    • Data and reporting use cases based on stakeholder requirements
    • List of CI types and relationships to be added to default settings
    • CMDB data model diagram
    • Documented processes and workflows
    • Data validation and auditing plan
    • Policy for configuration management
    • Roadmap for next steps
    • Communications documents

    Blueprint deliverables

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

    Configuration Management Project Charter

    Detail your approach to building an SCM practice and a CMDB.

    Screenshot from the Configuration Management Project Charter

    Use Cases and Data Worksheet

    Capture the action items related to your SCM implementation project.

    Screenshot from the Use Cases and Data Worksheet

    Configuration Manager Job Description

    Use our template for a job posting or internal job description.

    Screenshot from the Configuration Manager Job Description

    Configuration Management Diagram Template Library

    Use these diagrams to simplify building your SOP.

    Screenshot from the Configuration Management Diagram Template Library

    Configuration Management Policy

    Set expectations for configuration control.

    screenshot from the Configuration Management Policy

    Configuration Management Audit and Validation Checklist

    Use this framework to validate controls.

    Screenshot from the Configuration Management Audit and Validation Checklist

    Configuration Control Board Charter

    Define the board's responsibilities and meeting protocols.

    Screenshot from the Configuration Management Audit and Validation Checklist

    Key deliverable:

    Configuration Management Standard Operating Procedures Template

    Outlines SCM roles and responsibilities, the CMDB data model, when records are expected to change, and configuration baselines.

    Four Screenshots from the Configuration Management Standard Operating Procedures Template

    Phase 1

    Configuration Management Strategy

    Strategy Data Structure Processes Roadmap
    • Challenges and Goals
    • Use Cases and Data
    • Roles and Responsibilities
    • Services
    • Classifications
    • Data Modeling
    • Lifecycle Processes
    • Baselines
    • Audit and Data Validation
    • Metrics
    • Communications Plan
    • Roadmap

    This phase will walk you through the following aspects of a configuration management system:

    • Scope
    • Use Cases
    • Reports and Analytics

    This phase involves the following participants:

    • IT and business service owners
    • Business/customer relationship managers
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • SCM project manager
    • SCM project sponsor

    Harness Service Configuration Management Superpowers

    Establish clear definitions

    Ensure everyone is using the same terms.

    Term Definition
    Configuration Management

    The purpose of configuration management is to:

    • "Ensure that accurate and reliable information about the configuration of services, and the CIs that support them, is available when and where it is needed. This includes information on how CIs are configured and the relationships between them" (AXELOS).
    • "Provide sufficient information about service assets to enable the service to be effectively managed. Assess the impact of changes and deal with service incidents" (ISACA, 2018).
    Configuration Management System (CMS) A set of tools and databases used to manage, update, and present data about all configuration items and their relationships. A CMS may maintain multiple federated CMDBs and can include one or many discovery and dependency mapping tools.
    Configuration Management Database (CMDB) A repository of configuration records. It can be as simple as a spreadsheet or as complex as an integrated database populated through multiple autodiscovery tools.
    Configuration Record Detailed information about a configuration item.
    Configuration Item (CI)

    "Any component that needs to be managed in order to deliver an IT service" (AXELOS).

    These components can include everything from IT services and software to user devices, IT infrastructure components, and documents (e.g. maintenance agreements).
    Attributes Characteristics of a CI included in the configuration record. Common attributes include name, version, license expiry date, location, supplier, SLA, and owner.
    Relationships Information about the way CIs are linked. A CI can be part of another CI, connect to another CI, or use another CI. A CMDB is significantly more valuable when relationships are recorded. This information allows CMDB users to identify dependencies between components when investigating incidents, performing root-cause analysis, assessing the impact of changes before deployment, and much more.

    What is a configuration management database (CMDB)?

    The CMDB is a system of record of your services and includes a record for everything you need to track to effectively manage your IT services.

    Anything that is tracked in your CMDB is called a configuration item (CI). Examples of CIs include:

    • User-Facing Services
    • IT-Facing Services
    • Business Capabilities
    • Relationships
    • IT Infrastructure Components
    • Enterprise Software
    • End-User Devices
    • Documents

    Other systems of record can refer to CIs, such as:

    • Ticket database: Tickets can refer to which CI is impacted by an incident or provided as part of a service request.
    • Asset management database (AMDB): An IT asset is often also a CI. By associating asset records with CI records, you can leverage your IT asset data in your reporting.
    • Financial systems: If done well, the CMDB can supercharge your IT financial cost model.

    CMDBs can allow you to:

    • Query multiple databases simultaneously (so long as you have the CI name field in each database).
    • Build automated workflows and chatbots that interact with data across multiple databases.
    • More effectively identify the potential impact of changes and releases.

    Do not confuse asset with configuration

    Asset and configuration management look at the same world through different lenses

    • IT asset management (ITAM) tends to focus on each IT asset in its own right: assignment or ownership, lifecycle, and related financial obligations and entitlements.
    • Configuration management is focused on configuration items (CIs) that must be managed to deliver a service and the relationships and integrations with other CIs.
    • ITAM and configuration management teams and practices should work closely together. Though asset and configuration management focus on different outcomes, they may use overlapping tools and data sets. Each practice, when working effectively, can strengthen the other.
    • Many objects will exist in both the CMDB and AMDB, and the data on those shared objects will need to be kept in sync.

    A comparison between Asset and Configuration Management Databases

    *Discovery, dependency mapping, and data normalization are often features or modules of configuration management, asset management, or IT service management tools.

    Start with ITIL 4 guiding principles to make your configuration management project valuable and realistic

    Focus on where CMDB data will provide value and ensure the cost of bringing that data in will be reasonable for its purpose. Your end goal should be not just to build a CMDB but to use a CMDB to manage workload and workflows and manage services appropriately.

    Focus on value

    Include only the relevant information required by stakeholders.

    Start where you are

    Use available sources of information. Avoid adding new sources and tools unless they are justified.

    Progress iteratively with feedback

    Regularly review information use and confirm its relevance, adjusting the CMDB scope if needed.

    Collaborate and promote visibility

    Explain and promote available sources of configuration information and the best ways to use them, then provide hints and tips for more efficient use.

    Think and work holistically

    Consider other sources of data for decision making. Do not try to put everything in the CMDB.

    Keep it simple and practical

    Provide relevant information in the most convenient way; avoid complex interfaces and reports.

    Optimize and automate

    Continually optimize resource-consuming practice activities. Automate CDMB verification, data collection, relationship discovery, and other activities.

    ITIL 4 guiding principles as described by AXELOS

    Step 1.1

    Identify use cases and desired benefits for service configuration management

    Activities

    1.1.1 Brainstorm data collection challenges

    1.1.2 Define goals and how you plan to meet them

    1.1.3 Brainstorm and prioritize use cases

    1.1.4 Identify the data needed to reach your goals

    1.1.5 Record required data sources

    This step will walk you through the following aspects of a configuration management system:

    • Scope
    • Use cases

    This phase involves the following participants:

    • IT and business service owners
    • Business/customer relationship managers
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • Project sponsor
    • Project manager

    Identify potential obstacles in your organization to building and maintaining a CMDB

    Often, we see multiple unsuccessful attempts to build out a CMDB, with teams eventually losing faith and going back to spreadsheets. These are common obstacles:

    • Significant manual data collection, which is rarely current and fully accurate.
    • Multiple discovery solutions creating duplicate records, with no clear path to deduplicate records.
    • Manual dependency mapping that isn't accurate because it's not regularly assessed and updated.
    • Hybrid cloud and on-premises environment with discovery solutions only partially collecting as the right discovery and dependency mapping solutions aren't in place.
    • Dynamic environments (virtual, cloud, or containers) that may exist for a very short time, but no one knows how they should be managed.
    • Lack of expertise to maintain and update the CMDB or lack of an assigned owner for the CMDB. If no one owns the process and is assigned as a steward of data, it will not be maintained.
    • Database that was designed with other purposes in mind and is heavily customized, making it difficult to use and maintain.

    Understanding the challenges to accessing and maintaining quality data will help define the risks created through lack of quality data.

    This knowledge can drive buy-in to create a configuration management practice that benefits the organization.

    1.1.1 Brainstorm data collection challenges

    Involve stakeholders.
    Allot 45 minutes for this discussion.

    1. As a group, brainstorm the challenges you have with data:
    2. Accuracy and trustworthiness: What challenges do you have with getting accurate data on IT services and systems?
      1. Access: Where do you have challenges with getting data to people when they need it?
      2. Manually created data: Where are you relying on data that could be automatically collected?
      3. Data integration: Where do you have issues with integrating data from multiple sources?
      4. Impact: What is the result of these challenges?
    3. Group together these challenges into similar issues and identify what goals would help overcome them.
    4. Record these challenges in the Configuration Management Project Charter, section 1.2: Project Purpose.

    Download the Configuration Management Project Charter

    Input

    Output

    • None
    • List of high-level desired benefits for SCM
    Materials Participants
    • Whiteboard/flip charts
    • Sticky notes
    • Markers/pens
    • Configuration Management Project Charter
    • IT and business service owners
    • Business/customer relationship managers
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Info-Tech Maturity Ladder

    Identify your current and target state

    INNOVATOR

    • Characteristics of business partner
    • Integration with orchestration tools

    BUSINESS PARTNER

    Data collection and validation is fully automated

    Integrated with several IT processes

    Meets the needs of IT and business use cases

    TRUSTED OPERATOR

    • Data collection and validation is partially or fully automated
    • Trust in data accuracy is high, meets the needs of several IT use cases

    FIREFIGHTER

    • Data collection is partially or fully automated, validation is ad hoc
    • Trust in data accuracy is variable, used for decision making

    UNSTABLE

    INNOVATOR

    • Characteristics of business partner
    • Integration with orchestration tools

    BUSINESS PARTNER

    • Data collection and validation is fully automated
    • Integrated with several IT processes
    • Meets the needs of IT and business use cases

    TRUSTED OPERATOR

    • Data collection and validation is partially or fully automated
    • Trust in data accuracy is high, meets the needs of several IT use cases

    FIREFIGHTER

    • Data collection is partially or fully automated, validation is ad hoc
    • Trust in data accuracy is variable, used for decision making

    UNSTABLE

    A tower is depicted, with arrows pointing to Current (orange) and Target(blue)

    Define goals for your CMDB to ensure alignment with all stakeholders

    • How are business or IT goals being hindered by not having the right data available?
    • If the business isn't currently asking for service-based reporting and accountability, start with IT goals. This will help to develop goals that will be most closely aligned to the IT teams' needs and may help incentivize the right behavior in data maintenance.
    • Configuration management succeeds by enabling its stakeholders to achieve their outcomes. Set goals for configuration management based on the most important outcomes expected from this project. Ask your stakeholders:
      1. What are the business' or IT's planned transformational initiatives?
      2. What are your highest priority goals?
      3. What should the priorities of the configuration management practice be?
    • The answers to these questions will shape your approach to configuration management. Direct input from your leadership and executives, or their delegates, will help ensure you're setting a solid foundation for your practice.
    • Identify which obstacles will need to be overcome to meet these goals.

    "[T]he CMDB System should be viewed as a 'system of relevance,' rather than a 'single source of truth.' The burdens of relevance are at once less onerous and far more meaningful in terms of action, analysis, and automation. While 'truth' implies something everlasting or at least stable, relevance suggests a far more dynamic universe."

    – CMDB Systems, Making Change Work in the Age of Cloud and Agile, Drogseth et al

    Identify stakeholders to discuss what they need from a CMDB; business and IT needs will likely differ

    Define your audience to determine who the CMDB will serve and invite them to these conversations. The CMDB can aid the business and IT and can be structured to provide dashboards and reports for both.

    Nondiscoverable configuration items will need to be created for both audiences to organize CIs in a way that makes sense for all uses.

    Integrations with other systems may be required to meet the needs of your audience. Note integrations for future planning.

    Business Services

    Within the data sets, service configuration models can be used for:

    • Impact analysis
    • Cause and effect analysis
    • Risk analysis
    • Cost allocation
    • Availability analysis and planning

    Technical Services

    Connect to IT Finance for:

    • Service-based consumption and costing
    • Financial awareness through showback
    • Financial recovery through chargeback
    • Support IT strategy through financial transparency
    • Cost optimization
    • Reporting for depreciation, location-related taxation, and capitalization (may also use asset management for these)

    Intersect with IT Processes to:

    • Reduce time to restore services through incident management
    • Improve stability through change management
    • Reduce outages through problem management
    • Optimize assets through IT asset management
    • Provide detailed reporting for audit/governance, risk, and compliance

    1.1.2 Define goals and how you plan to meet them

    Involve stakeholders.

    Allot 45 minutes for this discussion.

    As a group, identify current goals for building and using a CMDB.

    Why are we doing this?

    • How do you hope to use the data within the CMDB?
    • What processes will be improved through use of this data and what are the expected outcomes?

    How will we improve the process?

    • What processes will be put in place to ensure data integrity?
    • What tools will be put in place to improve the methods used to collect and maintain data?

    Record these goals in the Configuration Management Project Charter, section 1.3: Project Objectives.

    Input

    Output

    • None
    • List of high-level desired benefits for SCM
    Materials Participants
    • Whiteboard/flip charts
    • Sticky notes
    • Markers/pens
    • Configuration Management Project Charter
    • IT and business service owners
    • Business/customer relationship managers
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    It's easy to think that if you build it, they will come, but CMDBs rarely succeed without solid use cases

    Set expectations for your organization that defined and fulfilled use cases will factor into prioritization exercises, functional plans, and project milestones to achieve ROI for your efforts.

    A good use case:

    • Justifies resource allocation
    • Gains funding for the right tools
    • Builds stakeholder support
    • Drives interest and excitement
    • Gains support from anyone in a position to help build out and validate the data
    • Helps to define success

    In the book CMDB Systems, Making Change Work in the Age of Cloud and Agile, authors Drogseth, Sturm, and Twing describe the secrets of success:

    A documented evaluation of CMDB System vendors showed that while most "best case" ROI fell between 6 and 9 months for CMDB deployments, one instance delivered ROI for a significant CMDB investment in as little as 2 weeks!

    If there's a simple formula for quick time to value for a CMDB System, it's the following:

    Mature levels of process awareness
    + Strong executive level support
    + A ready and willing team with strongly supportive stakeholders
    + Clearly defined and ready phase one use case
    + Carefully selected, appropriate technologies

    All this = Powerful early-phase CMDB System results

    Define and prioritize use cases for how the CMDB will be used to drive value

    The CMDB can support several use cases and may require integration with various modules within the ITSM solution and integration with other systems.

    Document the use cases that will drive your CMDB to relevance, including the expected benefits for each use case.

    Identify the dependencies that will need to be implemented to be successful.

    Define "done" so that once data is entered, verified, and mapped, these use cases can be realized.

    "Our consulting experience suggests that more than 75% of all strategic initiatives (CMDB or not) fail to meet at least initial expectations across IT organizations. This is often due more to inflated expectations than categorical failure."

    – CMDB Systems, Making Change Work in the Age of Cloud and Agile, Drogseth et al.

    This image demonstrates how CMBD will be used to drive value.

    After identifying use cases, determine the scope of configuration items required to feed the use cases

    On-premises software and equipment will be critical to many use cases as the IT team and partners work on network and data-center equipment, enterprise software, and integrations through various means, including APIs and middleware. Real-time and near real-time data collection and validation will ensure IT can act with confidence.

    Cloud use can include software as a service (SaaS) solutions as well as infrastructure and platform as a service (IaaS and PaaS), and this may be more challenging for data collection. Tools must be capable of connecting to cloud environments and feeding the information back into the CMDB. Where on-premises and cloud applications show dependencies, you might need to validate data if multiple discovery and dependency mapping solutions are used to get a complete picture. Tagging will be crucial to making sense of the data as it comes into the CMDB.

    In-house developed software would be beneficial to have in the CMDB but may require more manual work to identify and classify once discovered. A combination of discovery and tagging may be beneficial to input and classification.

    Highly dynamic environments may require data collection through integration with a variety of solutions to manage and record continuous deployment models and verifications, or they may rely on tags and activity logs to record historical activity. Work with a partner who specializes in CI/CD to help architect this use case.

    Containers will require an assessment of the level of detail required. Determine if the container is a CI and if the content will be described as attributes. If there is value to your use case to map the contents of each container as separate CIs within the container CI, then you can map to that level of detail, but don't map to that depth unless the use case calls for it.

    Internet of Things (IoT) devices and applications will need to match a use case as well. IoT device asset data will be useful to track within an asset database but may have limited value to add to a CMDB. If there are connections between IoT applications and data warehouses, the dependencies should likely be mapped to ensure continued dataflow.

    Out of scope

    A single source of data is highly beneficial, but don't make it a catchall for items that are not easily stored in a CMDB.

    Source code should be stored in a definitive media library (DML). Code can be linked to the CMDB but is generally too big to store in a CMDB and will reduce performance for data retrieval.

    Knowledge articles and maintenance checklists are better suited to a knowledge base. They can also be linked to the CDMB if needed but this can get messy where many-to-many relationships between articles and CIs exist.

    Fleet (transportation) assets and fixed assets should be in fleet management systems and accounting systems, respectively. Storing these types of data in the CMDB doesn't provide value to the support process.

    1.1.3 Brainstorm and prioritize use cases

    Which IT practices will you supercharge?

    Focus on improving both operations and strategy.

    1. Brainstorm the list of relevant use cases. What do you want to do with the data from the CMDB? Consider:
      1. ITSM management and governance practices
      2. IT operations, vendor orchestration, and service integration and management (SIAM) to improve vendor interactions
      3. IT finance and business service reporting needs
    2. Identify which use cases are part of your two- to three-year plan, including the purpose for adding configuration data into that process. Prioritize one or two of these use cases to accomplish in your first year.
    3. Identify dependencies to manage as part of the solution and define a realistic timeline for implementing integrations, modules, or data sources.
    4. Document this table in the Configuration Management Project Charter, section 2.2: Use Cases.
    Audience Use Case Goal/Purpose Project/Solution Dependencies Proposed Timeline Priority
    • IT
    • Change Management

    Stabilize the process by seeing:

    Change conflict reporting

    Reports of CI changes without change records

    System availability

    RFC mapping requires discovered CIs

    RFC review requires criticality, technical and business owners

    Conflict reporting requires dependency mapping

    • Discovery and manual information entered by October
    • Dependency mapping implemented by December

    High

    Determine what additional data will be needed to achieve your use cases

    Regardless of which use cases you are planning to fulfill with the CMDB, it is critical to not add data and complexity with the plan of resolving every possible inquiry. Ensure the cost and effort of bringing in the data and maintaining it is justified. The complexity of the environment will impact the complexity of data sources and integrations for discovery and dependency mapping.

    Before bringing in new data, consider:

    • Is this information available in other maintained databases now?
    • Will this data be critical for decision making? If it is nice to have or optional, can it be automatically moved into the database and maintained using existing integrations?
    • Is there a cost to bringing the data into the CMDB and maintaining it? Is that cost reasonable for its purpose?
    • How frequently will this information be accessed, and can it be updated in an adequate cadence to meet these needs?
    • When does this information need to be available?

    Info-Tech Insight

    If data will be used only occasionally upon request, determine if it will be more efficient to maintain it or to retrieve it from the CMDB or another data source as needed.

    Remember, within the data sets, service configuration models can be used for:

    • Impact analysis
    • Cause and effect analysis
    • Risk analysis
    • Cost allocation
    • Availability analysis and planning

    1.1.4 Expand your use cases by identifying the data needed to reach your goals

    Involve stakeholders.

    Allot 60 minutes for this discussion.

    Review use cases and their goals.

    Identify what data will be required to meet those goals and determine whether it will be mandatory or optional/nice-to-have information.

    Identify sources of data for each type of data. Color code or sort.

    Italicize data points that can be automatically discovered.

    Gain consensus on what information will be manually entered.

    Record the data in the Use Cases and Data Worksheet.

    Download the Use Cases and Data Worksheet

    Input

    Output

    • None
    • List of data requirements
    MaterialsParticipants
    • Whiteboard/flip charts
    • Sticky notes
    • Markers/pens
    • Use Cases and Data Worksheet
    • IT and business service owners
    • Business/customer relationship managers
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Use discovery and dependency mapping tools to automatically update the CMDB

    Avoid manual data entry whenever possible.

    Consider these features when looking at tools:

    • Application dependency mapping: Establishing and tracking the relationships and dependencies between system components, applications, and IT services. The ideal tool will be able to generate maps automatically.
    • Agentless and agent discovery: Scanning systems with both agent and agentless approaches. Agent-based scanning provides comprehensive information on applications used in individual endpoints, which is helpful in minimizing its IT footprint. However, agents require endpoint access. Agentless-based scanning provides a broader and holistic view of deployed applications without the need to install an agent on end devices, which can be good enough for inventory awareness.
    • Data export capability: Easy exporting of application inventory information to be used in reports and other tools.
    • Dashboards and chart visualization: Detailed list of the application inventory, including version number, number of users, licenses, deployment location, and other application details. These details will inform decision makers of each application's health and its candidacy for further rationalization activities.
    • Customizable scanning scripts: Tailor your application discovery approach by modifying the scripts used to scan your systems.
    • Integration with third-party tools: Easy integration with other systems with out-of-the-box plugins or customizable APIs.

    Determine which data collection methods will be used to populate the CMDB

    The effort-to-value ratio is an important factor in populating a CMDB. Manual efforts require a higher process focus, more intensive data validation, and a constant need to remind team members to act on every change.

    Real-Time Data AIOps continual scans Used for event and incident management
    Near Real-Time Data Discovery and dependency mapping run on a regular cycle Used for change and asset management
    Historical Data Activity log imports, manual data entry Used for IT finance, audit trail
    • Determine what amount of effort is appropriate for each data grouping and use case. As decisions are made to expand data within the CMDB, the effort-to-value ratio should always factor in. To be usable, data must be accurate, and every piece of data that needs to be manually entered runs the risk of becoming obsolete.
    • Identify which data sources will bring in each type of data. Where there is a possibility of duplicate records being created, one of the data sources will need to be identified as the primary.
    • If the decision is to manually enter configuration items early in the process, be aware that automation may create duplicates of the CIs that will need to be deduplicated at some point in the process to make the information more usable.
    • Typically, items are discovered, validated, then mapped, but there will be variations depending on the source.
    • Active Directory or LDAP may be used to bring users and technicians into the CMDB. Data may be imported from spreadsheets. Identify efforts where data cleanup may have to happen before transferring into the CMDB.
    • Identify how often manual imports will need to be conducted to make sure data is usable.

    Identify other nondiscoverable data that will need to be added to or accessed by the CMDB

    Foundational data, such as technicians, end users and approvers, roles, location, company, agency, department, building, or cost center, may be added to tables that are within or accessed by the CMDB. Work with your vendor to understand structure and where this information resides.

    • These records can be imported from CSV files manually, but this will require manual removal or edits as information changes.
    • Integration with the HRIS, Active Directory, or LDAP will enable automatic updates through synchronization or scheduled imports.
    • If synchronization is fully enabled, new data can be added and removed from the CMDB automatically.
    • Identify which nondiscoverable attributes will be needed, such as system criticality, support groups, groups it is managed by, location.
    • If partially automating the process, identify where manual updates will need to occur.
    • If fully automating the process, notifications will need to be set up when business owner or product or technical owner fields become empty to prompt defining a replacement within the CMDB.
    • Determine who will manage these updates.
    • Work with your CMDB implementation vendor to determine the best option for bringing this information in.

    1.1.5 Record required data sources

    Allot 15 minutes for this discussion.

    1. Where do you track the work involved in providing services? Typically, your ticket database tracks service requests and incidents. Additional data sources can include:
      • Enterprise resource planning tools for tracking purchase orders
      • Project management information system for tracking tasks
    2. What trusted data sources exist for the technology that supports these services? Examples include:
      • Management tools (e.g. Microsoft Endpoint Configuration Manager)
      • Architectural diagrams and network topology diagrams
      • IT asset management database
      • Spreadsheets
      • Other systems of record
    3. What other data sources can help you gather the data you identified in activity 1.1.4?
    4. Record the relevant data sources for each use case in the Configuration Management Standard Operating Procedures, section 6: Data Collection and Updates.

    Info-Tech Insight

    Improve the trustworthiness of your CMDB as a system of record by relying on data that is already trusted.

    Input

    Output

    • Use cases
    • List of data requirements
    MaterialsParticipants
    • Use Cases and Data Worksheet
    • Configuration Management Standard Operating Procedures
    • IT and business service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Step 1.2

    Define roles and responsibilities

    Activities

    1.2.1 Record the project team and stakeholders

    1.2.2 Complete a RACI chart to define who will be accountable and responsible for configuration tasks

    This step will walk you through the following aspects of a configuration management system:

    • Roles and responsibilities

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • Project manager

    Identify the roles you need in your SCM project

    Determine which roles will need to be involved in the initial project and how to source these roles.

    Leadership Roles
    Oversee the SCM implementation

    1. Configuration Manager – The practice owner for SCM. This is a long-term role.
    2. Configuration Control Board (CCB) Chair – An optional role that oversees proposed alterations to configuration plans. If a CCB is implemented, this is a long-term role.
    3. Project Sponsor or Program Sponsor – Provides the necessary resources for building the CMDB and SCM practices.
    4. Architecture Roles
      Plan the program to build strong foundation
      1. Configuration Management Architect – Technical leader who defines the overall CM solution, plans the scope, selects a tool, and leads the technical team that will implement the solution.
      2. Requirements Analyst – Gathers and manages the requirements for CM.
      3. Process Engineer – Defines, documents, and implements the entire process.

    Architecture Roles
    Plan the program to build strong foundation

    1. Configuration Management Architect – Technical leader who defines the overall CM solution, plans the scope, selects a tool, and leads the technical team that will implement the solution.
    2. Requirements Analyst – Gathers and manages the requirements for CM.
    3. Process Engineer – Defines, documents, and implements the entire process.

    Engineer Roles
    Implement the system

    1. Logical Database Analyst (DBA) Designs the structure to hold the configuration management data and oversees implementation.
    2. Communications and Trainer – Communicates the goals and functions of CM and teaches impacted users the how and why of the process and tools.

    Administrative Roles
    Permanent roles involving long-term ownership

    1. Technical Owner – The system administrator responsible for their system's uptime. These roles usually own the data quality for their system.
    2. Configuration Management Integrator – Oversees regular transfer of data into the CMDB.
    3. Configuration Management Tool Support – Selects, installs, and maintains the CM tool.
    4. Impact Manager – Analyzes configuration data to ensure relationships between CIs are accurate; conducts impact analysis.

    1.2.1 Record the project team and stakeholders

    Allocate 25 minutes to this discussion.

    1. Record the project team.
      1. Identify the project manager who will lead this project.
      2. Identify key personnel that will need to be involved in design of the configuration management system and processes.
      3. Identify where vendors/outsourcers may be required to assist with technical aspects.
      4. Document the project team in the Configuration Management Project Charter, section 1.1: Project Team.
    1. Record a list of stakeholders.
      1. Identify stakeholders internal and external to IT.
      2. Build the stakeholder profile. For each stakeholder, identify their role, interest in the project, and influence on project success. You can score these criteria high/medium/low or score them out of ten.
      3. If managed service providers will need to be part of the equation, determine who will be the liaison and how they will provide or access data.
    Input

    Output

    • Project team members
    • Project plan resources
    MaterialsParticipants
    • Configuration Management Project Charter
    • List of project stakeholders and participants
    • IT service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Even with full automation, this cannot be a "set it and forget it" project if it is to be successful long-term

    Create a team to manage the process and data updates and to ensure data is always usable.

    • Services may be added and removed.
    • Technology will change as technical debt is reduced.
    • Vendors may change as contract needs develop.
    • Additional use cases may be introduced by IT and the business as approaches to management evolve.
    • AIOps can reduce the level of effort and improve visibility as configuration items change from the baseline and notifications are automated.
    • Changes can be checked against requests for changes through automated reconciliations, but changes will still need to be investigated where they do not meet expectations.
    • Manual data changes will need to be made regularly and verified.

    "We found that everyone wanted information from the CMDB, but no one wanted to pay to maintain it. People pointed to the configuration management team and said, 'It's their responsibility.'

    Configuration managers, however, cannot own the data because they have no way of knowing if the data is accurate. They can own the processes related to checking accuracy, but not the data itself."
    – Tim Mason, founding director at TRM Associates
    (Excerpt from Viewpoint: Focus on CMDB Leadership)

    Include these roles in your CMDB practice to ensure continued success and continual improvement

    These roles can make up the configuration control board (CCB) to make decisions on major changes to services, data models, processes, or policies. A CCB will be necessary in complex environments.

    Configuration Manager

    This role is focused on ensuring everyone works together to build the CMDB and keep it up to date. The configuration manager is responsible to:

    • Plan and manage the standards, processes, and procedures and communicate all updates to appropriate staff. Focused on continual improvement.
    • Plan and manage population of the CMDB and ensure data included meets criteria for cost effectiveness and reasonable effort for the value it brings.
    • Validate scope of services and CIs to be included and controlled within the CMDB and manage exceptions.
    • Audit data quality to ensure it is valid, is current, and meets defined standards.
    • Evaluate and recommend tools to support processes, data collection, and integrations.
    • Ensure configuration management processes interface with all other service and business management functions to meet use cases.
    • Report on configuration management performance and take appropriate action on process adherence and quality issues.

    Configuration Librarian

    This role is most important where manual data entry is prevalent and where many nonstandard configurations are in place. The librarian role is often held by the tool administrator. The librarian focuses specifically on data within the CMDB, including:

    • Manual updates to configuration data.
    • CMDB data verification on a regular schedule.
    • Processing ad hoc requests for data.

    Product/Service/Technical Owners

    The product or technical owner will validate information is correctly updating and reflects the existing data requirements as new systems are provisioned or as existing systems change.

    Interfacing Practice Owners

    All practice owners, such as change manager, incident manager, or problem manager, must work with the configuration team to ensure data is usable for each of the use cases they are responsible for.

    Download the Configuration Manager job description

    Assign configuration management responsibilities and accountabilities

    Align authority and accountability.

    • A RACI exercise will help you discuss and document accountability and responsibility for critical configuration management activities.
    • When responsibility and accountability are not well documented, it's often useful to invite a representative of the roles identified to participate in this alignment exercise. The discussion can uncover contrasting views on responsibility and governance, which can help you build a stronger management and governance model.
    • The RACI chart can help you identify who should be involved when making changes to a given activity. Clarify the variety of responsibilities assigned to each key role.
    • In the future, you may need to define roles in more detail as you change your configuration management procedures.

    Responsible: The person who actually gets the job done.
    Different roles may be responsible for different aspects of the activity relevant to their role.

    Accountable: The one role accountable for the activity (in terms of completion, quality, cost, etc.)
    Must have sufficient authority to be held accountable; responsible roles are often accountable to this role.

    Consulted: Those who need the opportunity to provide meaningful input at certain points in the activity; typically, subject matter experts or stakeholders. The more people you must consult, the more overhead and time you'll add to a process.

    Informed: Those who receive information regarding the task but do not need to provide feedback.
    Information might relate to process execution, changes, or quality.

    Complete a RACI chart to define who will be accountable and responsible for configuration tasks

    Determine what roles will be in place in your organization and who will fulfill them, and create your RACI chart to reflect what makes sense for your organization. Additional roles may be involved where there is complexity.

    R = responsible, A = accountable, C = consulted, I = informed CCB Configuration Manager Configuration Librarian Technical Owner(s) Interfacing Practice Owners Tool Administrator
    Plan and manage the standards, processes, and procedures and communicate all updates to appropriate staff. Focused on continual improvement. A R
    Plan and manage population of the CMDB and ensure data included meets criteria for cost effectiveness and reasonable effort for the value it brings. A R
    Validate scope of services and CIs to be included and controlled within the CMDB and manage exceptions. A R
    Audit data quality to ensure it is valid, is current, and meets defined standards. A,R
    Evaluate and recommend tools to support processes, data collection, and integrations. A,R
    Ensure configuration management processes interface with all other service and business management functions to meet use cases. A
    Report on configuration management performance and take appropriate action on process adherence and quality issues. A
    Make manual updates to configuration data. A
    Conduct CMDB data verification on a regular schedule. A
    Process ad hoc requests for data. A
    Enter new systems into the CMDB. A R
    Update CMDB as systems change. A R
    Identify new use cases for CMDB data. R A
    Validate data meets the needs for use cases and quality. R A
    Design reports to meet use cases. R
    Ensure integrations are configured as designed and are functional. R

    1.2.2 Complete a RACI chart to define who will be accountable and responsible for configuration tasks

    Allot 60 minutes for this discussion.

    1. Open the Configuration Management Standard Operating Procedures, section 4.1: Responsibility Matrix. In the RACI chart, review the top row of roles. Smaller organizations may not need a configuration control board, in which case the configuration manager may have more authority.
    2. Modify or expand the process tasks in the left column as needed.
    3. For each role, identify what that person is responsible for, accountable for, consulted on, or informed of. Fill out each column.
    4. Document in the SOP. Schedule a time to share the results with organization leads.
    5. Distribute the chart among all teams in your organization.
    6. Describe additional roles as needed in the documentation.
    7. Add accountabilities and responsibilities for the CCB into the Configuration Control Board Charter.
    8. If appropriate, add auxiliary roles to the Configuration Management Standard Operating Procedures, section 4.2: Configuration Management Auxiliary Role Definitions.

    Notes:

    1. Assign one Accountable for each task.
    2. Have one or more Responsible for each task.
    3. Avoid generic responsibilities such as "team meetings."
    4. Keep your RACI definitions in your documents for quick reference.

    Refer back to the RACI chart when building out the communications plan to ensure accountable and responsible team members are on board and consulted and informed people are aware of all changes.

    Input

    Output

    • Task assignments
    • RACI chart with roles and responsibilities
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures, RACI chart
    • Configuration Control Board Charter, Responsibilities section
    • IT service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Phase 2

    Configuration Management Data Model

    StrategyData StructureProcessesRoadmap
    • Challenges and Goals
    • Use Cases and Data
    • Roles and Responsibilities
    • Services
    • Classifications
    • Data Modeling
    • Lifecycle Processes
    • Baselines
    • Audit and Data Validation
    • Metrics
    • Communications Plan
    • Roadmap

    This phase will walk you through the following aspects of a configuration management system:

    • Data Model
    • Customer-Facing and Supporting Services
    • Business Capabilities
    • Relationships
    • IT Infrastructure Components
    • Enterprise Software
    • End-User Devices
    • Documents

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • CM practice manager
    • CM project manager

    Step 2.1

    Build a framework for CIs and relationships

    Activities

    Document services:

    2.1.1 Define and prioritize your services

    2.1.2 Test configuration items against existing categories

    2.1.3 Create a configuration control board charter to define the board's responsibilities and protocols

    This step will walk you through the following aspects of a configuration management system:

    • Data model
    • Configuration items
    • Relationships

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • CM practice manager
    • Project manager

    Making sense of data daily will be key to maintaining it, starting with services

    As CIs are discovered and mapped, they will automatically map to each other based on integrations, APIs, queries, and transactions. However, CIs also need to be mapped to a conceptional model or service to present the service and its many layers in an easily consumable way.

    These services will need to be manually created or imported into the CMDB and manually connected to the application services. Services can be mapped to technical or business services or both.

    If business services reporting has been requested, talk to the business to develop a list of services that will be required. Use terms the business will be expecting and identify which applications and instances will be mapped to those services.

    If IT is using the CMDB to support service usage and reporting, develop the list of IT services and identify which applications and instances will be mapped to those services.

    This image show the relationship between Discoverable and Nondiscoverable CIs. The discoverable CIs are coloured in purple, and the nondiscoverables are blue.

    Work with your stakeholders to ensure catalog items make sense to them

    There isn't a definitive right or wrong way to define catalog items. For example, the business and IT could both reference application servers, but only IT may need to see technical services broken down by specific locations or device types.

    Refer back to your goals and use cases to think through how best to meet those objectives and determine how to categorize your services.

    Define the services that will be the top-level, nondiscoverable services, which will group together the CIs that make up the complete service. Identify which application(s) will connect into the technical service.

    When you are ready to start discovery, this list of services will be connected to the discovered data to organize it in a way that makes sense for how your stakeholders need to see the data.

    While working toward meeting the goals of the first few use cases, you will want to keep the structure simple. Once processes are in place and data is regularly validated, complexities of different service types and names can be integrated into the data.

    This image show the relationship between Discoverable and Nondiscoverable CIs. Both Discoverable and nondiscoverable CIs are blue.

    Application Service(blue); Technical Service(Purple); IT Shared Services(Orange); Billable Services(green); Service Portfolio(red)

    Define the service types to manage within the CMDB to logically group CIs

    Determine which method of service groupings will best serve your audience for your prioritized use cases. This will help to name your service categories. Service types can be added as the CMDB evolves and as the audience changes.

    Application Service

    Technical Service

    IT Shared Services

    Billable Services

    Service Portfolio

    A set of interconnected applications and hosts configured to offer a service to the organization.

    Example: Financial application service, which may include email, web server, application server, databases, and middleware.

    A logical grouping of CIs based on common criteria.

    Example: Toronto web services, which may include several servers, web applications, and databases.

    A logical grouping of IT and business services shared and used across the organization.

    Example: VoIP/phone services or networking or security services.

    A group of services that will be billed out to departments or customers and would require logical groupings to enable invoicing.

    A group of business and technical service offerings with specific performance reporting levels. This may include multiple service levels for different customer audiences for the same service.

    2.1.1 Define and prioritize your services

    Prioritize your starting point. If multiple audiences need to be accommodated, work with one group at a time.

    Timing: will vary depending on number of services, and starting point

    1. Create your list of services, referencing an existing service catalog, business continuity or disaster recovery plan, list of applications, or brainstorming sessions. Use the terminology that makes the most sense for the audience and their reporting requirements.
    2. If this list is already in place, assess for relevance and reduce the list to only those services that will be managed through the CMDB.
    3. Determine what data will be relevant for each service based on the exercises done in 1.1.4 and 1.1.5. For example, if priority was a required attribute for use case data, ensure each service lists the priority of that service.
    4. For each of these, identify the supporting services. These items can come from your technical service catalog or list of systems and software.
    5. Document this table in the Use Cases and Data Worksheet, tab 3: Service Catalog.

    Service Record Example

    Service: Email
    Supporting Services: M365, Authentication Services

    Service Attributes

    Availability: 24/7 (99.999%)
    Priority: Critical
    Users: All
    Used for: Collaboration
    Billable: Departmental
    Support: Unified Support Model, Account # 123456789

    The CMDB will be organized by services and will enable data analysis through multiple categorization schemes

    To extract maximum service management benefit from a CMDB, the highest level of CI type should be a service, as demonstrated below. While it is easier to start at the system or single-asset level, taking the service mapping approach will provide you with a useful and dynamic view of your IT environment as it relates to the services you offer, instead of a static inventory of components.

    Level 1: Services

    • Business Service Offering: A business service is an IT service that supports a business process, or a service that is delivered to business customers. Business service offerings typically are bound by service-level agreements.
    • IT Service Offering: An IT service supports the customer's business processes and is made up of people, processes, and technology. IT service offerings typically are bound by service-level agreements.

    Level 2: Infrastructure CIs

    • IT Component Set: An IT service offering consists of one of more sets of IT components. An IT component set allows you to group or bundle IT components with other components or groupings.
    • IT Component: An IT system is composed of one or more supporting components. Many components are shared between multiple IT systems.

    Level 3: Supporting CIs

    • IT Subcomponent: Any IT asset that is uniquely identifiable and a component of an IT system.
    • IT components can have subcomponents, and those components can have subcomponents, etc.

    Two charts, showing Enterprise Architect Model and Configuration Service Model. Each box represents a different CI.

    Assess your CMDB's standard category offerings against your environment, with a plan to minimize customization

    Standard categorization schemes will allow for easier integration with multiple tools and reporting and improve results if using machine learning to automate categorization. If the CMDB chosen includes structured categories, use that as your starting point and focus only on gaps that are not addressed for CIs unique to your environment.

    There is an important distinction between a class and a type. This concept is foundational for your configuration data model, so it is important that you understand it.

    • Types are general groupings, and the things within a type will have similarities. For attributes that you want to collect on a type, all children classes and CIs will have those attribute fields.
    • Classes are a more specific grouping within a type. All objects within a class will have specific similarities. You can also use subclasses to further differentiate between CIs.
    • Individual CIs are individual instances of a class or subclass. All objects in a class will have the same attribute fields and behave the same, although the values of their attributes will likely differ.
    • Attributes may be discovered or nondiscoverable and manually added to CIs. The attributes are properties of the CI such as serial number, version, memory, processor speed, or asset tag.

    Use inheritance structures to simplify your configuration data model.

    An example CM Data Model is depicted.

    Assess the list of classes of configuration items against your requirements

    Types are general groupings, and the things within a type will have similarities. Each type will have its own table within the CMDB. Classes within a type are a more specific grouping of configuration items and may include subclasses.

    Review your vendor's CMDB documentation. Find the list of CI types or classes. Most CMDBs will have a default set of classes, like this standard list. If you need to build your own, use the table below as a starting point. Define anything required for unique classes. Create a list and consult with your installation partner.

    Sample list of classes organized by type

    Types Services Network Hardware Storage Compute App Environment Documents
    Classes
    • Application Service
    • Technical Service
    • IT Shared Service
    • Billable Service
    • Service Portfolio
    • Switch
    • Router
    • Firewall
    • Modem
    • SD-WAN
    • Load Balancer
    • UPS
    • Computer
    • Laptop
    • Server
    • Tablet
    • Database
    • Network-Attached Storage
    • Storage Array Network
    • Blob
    • Operating System
    • Hypervisor
    • Virtual Server
    • Virtual Desktop
    • Appliance
    • Virtual Application
    • Enterprise Application
    • Line of Business Application Software
    • Development
    • Test
    • Production
    • Contract
    • Business Impact Analysis
    • Requirements

    Review relationships to determine which ones will be most appropriate to map your dependencies

    Your CMDB should include multiple relationship types. Determine which ones will be most effective for your environment and ensure everyone is trained on how to use them. As CIs are mapped, verify they are correct and only manually map what is incorrect or not mapping through automation.

    Manually mapping CMDB relationships may be time consuming and prone to error, but where manual mapping needs to take place, ensure the team has a common view of the dependency types available and what is important to map.

    Use automated mapping whenever possible to improve accuracy, provide functional visualizations, and enable dynamic updates as the environment changes.

    Where a dependency maps to external providers, determine where it makes sense to discover and map externally provided CIs.

    • Only connect where there is value in mapping to vendor-owned systems.
    • Only connect where data and connections can be trusted and verified.

    Most common dependency mapping types

    A list of the most common dependency mapping types.

    2.1.2 Test configuration items against existing categories

    Time to complete: 1-2 hours

    1. Select a service to test.
    2. Identify the various components that make up the service, focusing on configuration items, not attributes
    3. Categorize configuration items against types and classes in the default settings of the CMDB.
    4. Using the default relationships within the CMDB, identify the relationships between the configuration items.
    5. Identify types, classes, and relationships that do not fit within the default settings. Determine if there are common terms for these items or determine most appropriate name.
    6. Validate these exceptions with the publisher.
    7. Document exceptions in the Configuration Management Standard Operating Procedures, Appendix 2: Types and Classes of Configuration Items
    Input

    Output

    • List of default settings for classes, types, and relationships
    • Small list of services for testing
    • List of CIs to map to at least one service
    • List of categories to add to the CMDB solution.
    MaterialsParticipants
    • Use Cases and Data Worksheet
    • Configuration Management Standard Operating Procedures
    • IT service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    2.1.3 Create a configuration control board charter to define the board's responsibilities and protocols

    A charter will set the tone for meetings, ensure purpose is defined and meeting cadence is set for regular reviews.

    1. Open the Configuration Control Board Charter. Review the document and modify as appropriate for your CCB. This will include:
      • Purpose and mandate of the committee – Reference objectives from the project charter.
      • Team composition – Determine the right mix of team members. A team of six to ten people can provide a good balance between having a variety of opinions and getting work done.
      • Voting option – Determine the right quorum to approve changes.
      • Responsibilities – List responsibilities, starting with RACI chart items.
      • Authority – Define the control board's span of control.
      • Governing laws and regulations – List any regulatory requirements that will need to be met to satisfy your auditors.
      • Meeting preparation – Set expectations to ensure meetings are productive.
    2. Distribute the charter to CCB members.
    Input

    Output

    • Project team members
    • Project plan resources
    MaterialsParticipants
    • Configuration Control Board Charter
    • IT service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Assess the default list of statuses for each state

    Align this list with your CMDB

    Minimize the number of customizations that will make it difficult to update the platform.

    1. Review the default status list within the tool.
    2. Identify which statuses will be most used. Write a definition for each status.
    3. Update this list as you update process documentation in Step 3.1. After initial implementation, this list should only be modified through change enablement.
    4. Record this list of statuses in the Configuration Management Standard Operating Procedures, Appendix 4: Statuses
    State Status Description
    Preparation Ordered Waiting delivery from the vendor
    In Planning Being created
    Received Vendor has delivered the item, but it is not ready for deployment
    Production In Stock Available to be deployed
    In Use Deployed
    On Loan Deployed to a user on a temporary basis
    For Removal Planning to be phased out but still deployed to an end user
    Offline In Transit Moving to a new location
    Under Maintenance Temporarily offline while a patch or change is applied
    Removed Decommissioned Item has been retired and is no longer in production
    Disposed Item has been destroyed and we are no longer in possession of it
    Lost Item has been lost
    Stolen Item has been stolen

    Step 2.2

    Document statuses, attributes, and data sources

    Activities

    2.2.1 Follow the packet and map out the in-scope services and data centers

    2.2.2 Build data model diagrams

    2.2.3 Determine access rights for your data

    This step will walk you through the following aspects of a configuration management system:

    • Statuses
    • Attributes for each class of CI

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • Project manager

    Outcomes of this step

    • Framework for approaching CI statuses
    • Attributes for each class of CI
    • Data sources for those attributes

    Service mapping approaches

    As you start thinking about dependency mapping, it's important to understand the different methods and how they work, as well as your CMDB's capabilities. These approaches may be all in the same tool, or the tool may only have the top-down options.

    Top down, most common

    Pattern-based

    Most common option, which includes indicators of connections such as code, access rights, scripting, host discovery, and APIs.

    Start with pattern-based, then turn on traffic-based for more detail. This combination will provide the most accuracy.

    Traffic-based

    Map against traffic patterns involving connection rules to get more granular than pattern-based.

    Traffic-based can add a lot of overhead with extraneous data, so you may not want to run it continuously.

    Tag-based

    Primarily used for cloud, containers, and virtual machines and will attach the cloud licenses to their dependent services and any related CIs.

    Tags work well with cloud but will not have the same hierarchical view as on-premises dependency mapping.

    Machine learning

    Machine learning will look for patterns in the traffic-based connections, match CIs to categories and help organize the data.

    Machine learning (ML) may not be in every solution, but if you have it, use it. ML will provide many suggestions to make the life of the data manager easier.

    Model hierarchy

    Automated data mapping will be helpful, but it won't be foolproof. It's critical to understand the data model to validate and map nondiscoverable CIs correctly.

    The framework consists of the business, enterprise, application, and implementation layers.

    The business layer encodes real-world business concepts via the conceptual model.

    The enterprise layer defines all enterprise data assets' details and their relationships.

    The application layer defines the data structures as used by a specific application.

    The implementation layer defines the data models and artifacts for use by software tools.

    An example of Model Hierarchy is depicted.

    Learn how to create data models with Info-Tech's blueprint Create and Manage Enterprise Data Models

    2.2.1 Follow the packet and map out the in-scope services and data centers

    Reference your network topology and architecture diagrams.

    Allot 1 hour for this activity.

    1. Start with a single service that is well understood and documented.
    2. Identify the technical components (hardware and applications) that make up the service.
    3. Determine if there is a need to further break down services into logical service groupings. For example, the email service to the right is broken down into authentication and mail flow.
    4. If you don't have a network diagram to follow, create a simple one to identify workflows within the service and components the service uses.
    5. Record the apps and underlying components in the Configuration Management Standard Operating Procedures, Appendix 1: Configuration Data Model Structure.

    This information will be used for CM project planning and validating the contents of the CMDB.

    an example of a Customer-facing service is shown, for Email sample topology.

    Download the Configuration Management Diagram Template Library to see an example.

    Build your configuration data model

    Rely on out-of-the-box functionality where possible and keep a narrow focus in the early implementation stages.

    1. If you have an enterprise architecture, then your configuration management data model should align with it.
    2. Keep a narrow focus in the early implementation stages. Don't fill up your CMDB until you are ready to validate and fix the data.
    3. Rely on out-of-the-box (OOTB) functionality where possible. If your configuration management database (CMDB) and platform do not have a data model OOTB, then rely on a publicly available data model.
    4. Map your business or IT service offering to the first few layers.

    Once this is built out in the system, you can let the automated dependency mapping take over, but you will still need to validate the accuracy of the automated mapping and investigate anything that is incorrect.

    Sample Configuration Data Model

    Every box represents a CI, and every line represents a relationship

    A sample configuration Data model is shown.

    Example: Data model and CMDB visualization

    Once the data model is entered into the CMDB, it will provide a more dynamic and complex view, including CIs shared with other services.

    An example of a Data Model Exercise

    CMDB View

    An example of a CMDB View of the Data Model Exercise

    2.2.2 Build data model diagrams

    Visualize the expected CI classes and relationships.

    Allot 45 minutes.

    1. Identify the different data model views you need. Use multiple diagrams to keep the information simple to read and understand. Common diagrams include:
      1. Network level: Outline expected CI classes and relationships at the network level.
      2. Application level: Outline the expected components and relationships that make up an application.
      3. Services level: Outline how business capability CIs and service CIs relate to each other and to other types of CIs.
    1. Use boxes to represent CI classes.
    2. Use lines to represent relationships. Include details such as:
      1. Relationship name: Write this name on the arrow.
      2. Direction: Have an arrow point to each child.

    Review samples in Configuration Management Diagram Template Library.
    Record these diagrams in the Configuration Management Standard Operating Procedures, Appendix 1: Configuration Data Model Structure.

    Input

    Output

    • List of default settings for classes, types, and relationships
    • Small list of services for testing
    • List of CIs to map to at least one service
    • List of additions of categories to add to the CMDB solution.
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • Configuration Management Diagram Template Library
    • IT service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Download the Configuration Management Diagram Template Library to see examples.

    Determine governance for data security, access, and validation

    Align CMDB access to the organization's access control policy to maintain authorized and secure access for legitimate staff performing their role.

    Data User Type Access Role
    Data consumers
    • View-only access
    • Will need to view and use the data but will not need to make modifications to it
    • Service desk
    • Change manager
    • Major incident manager
    • Finance
    CMDB owner
    • Read/write access with the ability to update and validate data as needed
    • Configuration manager
    Domain owner
    • Read/write access for specific domains
    • Data owner within their domain, which includes validating that data is in the database and that it is correctly categorized.
    • Enterprise architect
    • Application owner
    Data provider
    • Read/write access for specific domains
    • Ensures automated data has been added and adds nondiscoverable assets and attributes as needed
    • Server operations
    • Database management
    • Network teams
    CMDB administrator
    • View-only access for data
    • Will need to have access for modifying the structure of the product, including adding fields, as determined by the CCB
    • ITSM tool administrator

    2.2.3 Determine access rights for your data

    Allot 30 minutes for this discussion.

    1. Open the Configuration Management Standard Operating Procedures, section 5: Access Rights.
    2. Review the various roles from an access perspective.
      1. Who needs read-only access?
      2. Who needs read/write access?
      3. Should there be restrictions on who can delete data?
    1. Fill in the chart and communicate this to your CMDB installation vendor or your CMDB administrator.
    Input

    Output

    • Task assignments
    • Access rights and roles
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • IT service owners
    • Practice owners and managers
    • SCM practice manager
    • SCM project sponsor

    Phase 3

    Configuration Record Updates

    StrategyData StructureProcessesRoadmap
    • Challenges and Goals
    • Use Cases and Data
    • Roles and Responsibilities
    • Services
    • Classifications
    • Data Modeling
    • Lifecycle Processes
    • Baselines
    • Audit and Data Validation
    • Metrics
    • Communications Plan
    • Roadmap

    This phase will walk you through the following aspects of a configuration management system:

    • ITSM Practices and Workflows
    • Discovery and Dependency Mapping Tools
    • Auditing and Data Validation Practices

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • SCM project manager
    • IT audit

    Harness Service Configuration Management Superpowers

    Step 3.1

    Keep CIs and relationships up to date through lifecycle process integrations

    Activities

    3.1.1 Define processes to bring new services into the CMDB

    3.1.2 Determine when each type of CI will be created in the CMDB

    3.1.3 Identify when each type of CI will be retired in the CMDB

    3.1.4 Record when and how attributes will change

    3.1.5 Institute configuration control and configuration baselines

    This step will walk you through the following aspects of a configuration management system:

    1. ITSM Practices and Workflows
    2. Discovery and Dependency Mapping Tools

    This phase involves the following participants:

    1. IT service owners
    2. Enterprise architects
    3. Practice owners and managers
    4. SCM practice manager
    5. Project manager

    Outcomes of this step

    • List of action items for updating interfacing practices and processes
    • Identification of where configuration records will be manually updated

    Incorporate CMDB updates into IT operations

    Determine which processes will prompt changes to the CMDB data

    Onboard new services - Offboard Redundant Services. Onboard new CIs - Offboard Redundant CIs; Maintain CIs - Update Attributes.

    Change enablement

    Identify which process are involved in each stage of data input, maintenance, and removal to build out a process for each scenario.

    Project management

    Change enablement

    Asset management

    Security controls

    Project management

    Incident management

    Deployment management

    Change enablement

    Asset management

    Security controls

    Project management

    Incident management

    Service management

    Formalize the process for adding new services to the CMDB

    As new services and products are introduced into the environment, you can improve your ability to correctly cost the service, design integrations, and ensure all operational capabilities are in place, such as data backup and business continuity plans.
    In addition, attributes such as service-level agreements (SLAs), availability requirements, and product, technical, and business owners should be documented as soon as those new systems are made live.

    • Introduce the technical team and CCB to the product early to ensure the service record is created before deployment and to quickly map the services once they are moved into the production environment.
    • Engage with project managers or business analysts to define the process to include security and technical reviews early.
    • Engage with the security and technical reviewers to start documenting the service as soon as it is approved.
    • Determine which practices will be involved in the creation and approval of new services and formalize the process to streamline entry of the new service, onboarding corresponding CIs and mapping dependencies.

    an example of the review and approval process for new service or products is shown.

    3.1.1 Define processes to bring new services into the CMDB

    Start with the most frequent intake methods, and if needed, use this opportunity to streamline the process.

    1. Discuss the methods for new services to be introduced to the IT environment.
    2. Critique existing methods to assess consistency and identify issues that could prevent the creation of services in the CMDB in a timely manner.
    3. Create a workflow for the existing processes, with an eye to improvement. Identify any changes that will need to be introduced and managed appropriately.
    4. Identify where additional groups may need to be engaged to ensure success. For example, if project managers are not interfacing early with IT, discuss process changes with them.
    5. Discuss the validation process and determine where control points are. Document these on the workflows.
    6. Complete the Configuration Management Standard Operating Procedures, section 8.1: Introduce New Service and Data Model.

    Possible intake opportunities:

    • Business-driven project intake process
    • IT-driven project intake process
    • Change enablement reviews
    • Vendor-driven product changes
    Input

    Output

    • Discussion
    • Intake processes
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • Configuration Management Diagram Template Library
    • Configuration control board
    • Configuration manager
    • Project sponsor
    • IT stakeholders

    Identify scenarios where CIs are added and removed in the configuration management database

    New CIs may be introduced with new services or may be introduced and removed as part of asset refreshes or through service restoration in incident management. Updates may be done by your own services team or a managed services provider.
    Determine the various ways the CIs may be changed and test with various CI types.
    Review attributes such as SLAs, availability requirements, and product, technical, and business owners to determine if changes are required.

    • Identify what will be updated automatically or manually. Automation could include discovery and dependency mapping or synchronization with AMDB or AIOps tools.
    • Engage with relevant program managers to define and validate processes.
    • Identify control points and review audit requirements.

    An example of New or refresh CI from Procurement.

    Info-Tech Insight

    Data deemed no longer current may be archived or deleted. Retained data may be used for tracing lifecycle changes when troubleshooting or meeting audit obligations. Determine what types of CIs and use cases require archived data to meet data retention policies. If none do, deletion of old data may be appropriate.

    3.1.2 Identify when each type of CI will be created in the CMDB

    Allot 45 minutes for discussion.

    1. Discuss the various methods for new CIs to be introduced to the IT environment.
    2. Critique existing methods to assess consistency and identify issues that could prevent the creation of CIs in the CMDB in a timely manner.
    3. Create a workflow for the existing processes, with an eye to improvement. Identify any changes that will need to be introduced and managed appropriately.
    4. Identify where additional groups may need to be engaged to ensure success. For example, if project managers are not interfacing early with IT, discuss process changes with them.
    5. Discuss the validation process and determine where control points are. Document these on the workflows.
    6. Complete Configuration Management Standard Operating Procedures, section 8.2: Introduce New Configuration Items to the CMDB

    Possible intake opportunities:

    • Business-driven project intake process
    • IT-driven project intake process
    • Change enablement reviews
    • Vendor-driven product changes
    • Incident management
    • Asset management, lifecycle refresh
    Input

    Output

    • Discussion
    • Retirement processes
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • Configuration Management Diagram Template Library
    • Configuration control board
    • Configuration manager
    • Project sponsor
    • IT stakeholders

    3.1.3 Identify when each type of CI will be retired in the CMDB

    Allot 45 minutes for discussion.

    1. Discuss the various methods for CIs to be removed from the IT environment.
    2. Critique existing methods to assess consistency and identify issues that could prevent the retirement of CIs in the CMDB in a timely manner.
    3. Create a workflow for the existing processes, with an eye to improvement. Identify any changes that will need to be introduced and managed appropriately.
    4. Identify where additional groups may need to be engaged to ensure success. For example, if project managers are not interfacing early with IT, discuss process changes with them.
    5. Discuss the validation process and determine where control points are. Document these on the workflows.
    6. Discuss data retention. How long will retired information need to be archived? What are the potential scenarios where legacy information may be needed for analysis?
    7. Complete the Configuration Management Standard Operating Procedures, section 8.4: Retire and Archive Configuration Records.

    Possible retirement scenarios:

    • Change enablement reviews
    • Vendor-driven product changes
    • Incident management
    • Asset management, lifecycle refresh
    Input

    Output

    • Discussion
    • Intake processes
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • Configuration Management Diagram Template Library
    • Configuration control board
    • Configuration manager
    • Project sponsor
    • IT stakeholders

    Determine appropriate actions for detecting new or changed CIs through discovery

    Automated detection will provide the most efficient way of recording planned changes to CIs as well as detected unplanned changes. Check with the tool to determine what reports or notifications are available for the configuration management process and define what actions will be appropriate.

    As new CIs are detected, identify the process by which they should have been introduced into configuration management and compare against those records. If your CMDB can automatically check for documentation, this may be easier. Weekly reporting will allow you to catch changes quickly, and alerts on critical CIs could enable faster remediation, if the tool allows for alerting. AIOps could identify, notify of, and process many changes in a highly dynamic environment.

    Type of Change

    Impacted Process

    Validation

    Findings

    Actions

    Configuration change to networking equipment or software

    Change management

    Check for request for change

    No RFC

    Add to CAB agenda, notify technical owner

    Configuration change to end-user device or software

    Asset management

    Check for service ticket

    No ticket

    Escalate to asset agenda, notify service manager

    New assets coming into service

    Security incident and event management

    Check for SIEM integration

    No SIEM integration

    Notify security operations team to investigate

    The configuration manager may not have authority to act but can inform the process owners of unauthorized changes for further action. Once the notifications are forwarded to the appropriate process owner, the configuration manager will note the escalation and follow up on data corrections as deemed appropriate by the associated process owner.

    3.1.4 Record when and how attributes will change

    These lists will help with configuration control plans and your implementation roadmap.

    1. List each attribute that will change in that CI type's life.
    2. Write all the times that each attribute will change. Identify:
      1. The name of the workflow, service request, process, or practice that modifies the attribute.
      2. Whether the update is made automatically or manually.
      3. The role or tool that updates the CMDB.
    1. Update the relevant process or procedure documentation. Explicitly identify when the configuration records are updated.

    Document these tables in Configuration Management Standard Operation Procedures, Section 8.7: Practices That Modify CIs.

    Network Equipment
    Attributes

    Practices That Modify This Attribute

    Status
    • Infra Deployment (updated manually by Network Engineering)
    • Change Enablement (updated manually by CAB or Network Engineering)
    Assigned User
    • IT Employee Offboarding or Role Change (updated manually by Network Engineering)
    Version
    • Patch Deployment (updated automatically by SolarWinds)
    End-User Computers
    Attributes
    Practices That Modify This Attribute
    Status
    • Device Deployment (updated manually by Desktop Support)
    • Device Recovery (updated manually by Desktop Support)
    • Employee Offboarding and Role Change (updated manually by Service Desk)
    Assigned User
    • Device Deployment (updated manually by Desktop Support)
    • Device Recovery (updated manually by Desktop Support)
    • Employee Offboarding and Role Change (updated manually by Service Desk)
    Version
    • Patch Deployment (updated automatically by ConfigMgr)

    Institute configuration control and configuration baselines where appropriate

    A baseline enables an assessment of one or more systems against the desired state and is useful for troubleshooting incidents or problems and validating changes and security settings.

    Baselines may be used by enterprise architects and system engineers for planning purposes, by developers to test their solution against production copies, by technicians to assess configuration drift that may be causing performance issues, and by change managers to assess and verify the configuration meets the target design.

    Configuration baselines are a snapshot of configuration records, displaying attributes and first-level relationships of the CIs. Standard configurations may be integral to the success of automated workflows, deployments, upgrades, and integrations, as well as prevention of security events. Comparing current CIs against their baselines will identify configuration drift, which could cause a variety of incidents. Configuration baselines are updated through change management processes.
    Configuration baselines can be used for a variety of use cases:

    • Version control – Management of software and hardware versions, https://dj5l3kginpy6f.cloudfront.net/blueprints/harness-configuration-management-superpowers-phases-1-4/builds, and releases.
    • Access control – Management of access to facilities, storage areas, and the CMS.
    • Deployment control – Take a baseline of CIs before performing a release so you can use this to check against actual deployment.
    • Identify accidental changes Everyone makes mistakes. If someone installs software on the wrong server or accidentally drops a table in a database, the CMS can alert IT of the unauthorized change (if the CI is included in configuration control).

    Info-Tech Insight

    Determine the appropriate method for evaluating and approving changes to baselines. Delegating this to the CCB every time may reduce agility, depending on volume. Discuss in CCB meetings.

    A decision tree for deploying requested changes.

    3.1.5 Institute configuration control and configuration baselines where appropriate

    Only baseline CIs and relationships that you want to control through change enablement.

    1. Determine criteria for capturing configuration baselines, including CI type, event, or processes.
    2. Identify who will use baselines and how they will use the data. Identify their needs.
    3. Identify CIs that will be out of scope and not have baselines created.
    4. Document requirements in the SOP.
    5. Ensure appropriate team members have training on how to create and capture baselines in the CMDB.
    6. Document in the Configuration Management Standard Operating Procedures, section 8.5: Establish and Maintain Configuration Baselines.
    Process Criteria Systems
    Change Enablement & Deployment All high-risk changes must have the baseline captured with version number to revert to stable version in the event of an unsuccessful change
    • Servers (physical and virtual)
    • Enterprise software
    • IaaS
    • Data centers
    Security Identify when configuration drift may impact risk mitigation strategies
    • Servers (physical and virtual)
    • Enterprise software
    • IaaS
    • Data centers
    Input

    Output

    • Discussion
    • Baseline configuration guidelines
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • Configuration control board
    • Configuration manager
    • Project sponsor
    • IT stakeholders

    Step 3.2

    Validate data within the CMDB

    Activities

    3.2.1 Build an audit plan and checklist

    This step will walk you through the following aspects of a configuration management system:

    • Data validation and audit

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • Project manager
    • IT audit

    Outcomes of this step

    • Updates to processes for data validation
    • Plan for auditing and validating the data in the CMDB

    Audit and validate the CMDB

    Review the performance of the supporting technologies and processes to validate the accuracy of the CMDB.

    A screenshot of the CM Audit Plan.

    CM Audit Plan

    • CM policies
    • CM processes and procedures
    • Interfacing processes
    • Content within the CMDB

    "If the data in your CMDB isn't accurate, then it's worthless. If it's wrong or inaccurate, it's going to drive the wrong decisions. It's going to make IT worse, not better."
    – Valence Howden, Research Director, Info-Tech Research Group

    Ensure the supporting technology is working properly

    Does the information in the database accurately reflect reality?

    Perform functional tests during audits and as part of release management practices.

    Audit results need to have a clear status of "compliant," "noncompliant," or "compliant with conditions," and conditions need to be noted. The conditions will generally offer a quick win to improve a process, but don't use these audit results to quickly check off something as "done." Ensure the fix is useful and meaningful to the process.
    The audit should cover three areas:

    • Process: Are process requirements for the program well documented? Are the processes being followed? If there were updates to the process, were those updates to the process documented and communicated? Has behavior changed to suit those modified processes?
    • Physical: Physical configuration audits (PCAs) are audits conducted to verify that a configuration item, as built, conforms to the technical documentation that defines and describes it.
    • Functional: Functional configuration audits (FCAs) are audits conducted to verify that the development of a configuration item has been completed satisfactorily, the item has achieved the functional attributes specified in the functional or allocated baseline, and its technical documentation is complete and satisfactory.

    Build auditing and validation of processes whenever possible

    When technicians and analysts are working on a system, they should check to make sure the data about that system is correct. When they're working in the CMDB, they should check that the data they're working with is correct.

    More frequent audits, especially in the early days, may help move toward process adoption and resolving data quality issues. If audits are happening more frequently, the audits can include a smaller scope, though it's important to vary each one to ensure many different areas have been audited through the year.

    • Watch for data duplication from multiple discovery tools.
    • Review mapping to ensure all relevant CIs are attached to a product or service.
    • Ensure report data is logical.

    Ensure the supporting technology is working properly

    Does the information in the database accurately reflect reality?

    Perform functional tests during audits and as part of release management practices.

    Audit results need to have a clear status of "compliant," "noncompliant," or "compliant with conditions," and conditions need to be noted. The conditions will generally offer a quick win to improve a process, but don't use these audit results to quickly check off something as "done." Ensure the fix is useful and meaningful to the process.
    The audit should cover three areas:

    • Process: Are process requirements for the program well documented? Are the processes being followed? If there were updates to the process, were those updates to the process documented and communicated? Has behavior changed to suit those modified processes?
    • Physical: Physical configuration audits (PCAs) are audits conducted to verify that a configuration item, as built, conforms to the technical documentation that defines and describes it.
    • Functional: Functional configuration audits (FCAs) are audits conducted to verify that the development of a configuration item has been completed satisfactorily, the item has achieved the functional attributes specified in the functional or allocated baseline, and its technical documentation is complete and satisfactory.

    More frequent audits, especially in the early days, may help move toward process adoption and resolving data quality issues. If audits are happening more frequently, the audits can include a smaller scope, though it's important to vary each one to ensure many different areas have been audited through the year.

    • Watch for data duplication from multiple discovery tools.
    • Review mapping to ensure all relevant CIs are attached to a product or service.
    • Ensure report data is logical.

    Identify where processes break down and data is incorrect

    Once process stops working, data becomes less accurate and people find workarounds to solve their own data needs.

    Data within the CMDB often becomes incorrect or incomplete where human work breaks down

    • Investigate processes that are performed manually, including data entry.
    • Investigate if the process executors are performing these processes uniformly.
    • Determine if there are opportunities to automate or provide additional training.
    • Select a sample of the corresponding data in the CMS. Verify if the data is correct.

    Non-CCB personnel may not be completing processes fully or consistently

    • Identify where data in the CMS needs to be updated.
    • Identify whether the process practitioners are uniformly updating the CMS.
    • Discuss options for improving the process and driving consistency for data that will benefit the whole organization.

    Ensure that the data entered in the CMDB is correct

    • Confirm that there is no data duplication. Data duplication is very common when there are multiple discovery tools in your environment. Confirm that you have set up your tools properly to avoid duplication.
    • Build a process to respond to baseline divergence when people make changes without following change processes and when updates alter settings.
    • Audit the system for accuracy and completeness.

    3.2.1 Build an audit plan and checklist

    Use the audit to identify areas where processes are breaking down.

    Audits present you with the ability to address these pain points before they have greater negative impact.

    1. Identify which regulatory requirements and/or auditing bodies will be relevant to audit processes or findings.
    2. Determine frequency of practice audits and how they relate to internal audits or external audits.
    3. Determine audit scope, including requirements for data spot checks.
    4. Determine who will be responsible for conducting audits and validate this is consistent with the RACI chart.
    5. Record audit procedures in the Configuration Management Standard Operating Procedures section 8.6: Verify and Review the Quality of Information Through Auditing.
    6. Review the Configuration Management Audit and Validation Checklist and modify to suit your needs.

    Download the Configuration Management Audit and Validation Checklist

    Input

    Output

    • Discussion
    • Baseline configuration guidelines
    MaterialsParticipants
    • Configuration Management Standard Operating Procedures
    • Configuration control board
    • Configuration manager
    • Project sponsor
    • IT stakeholders

    Phase 4

    Service Configuration Roadmap

    StrategyData StructureProcessesRoadmap
    • Challenges and Goals
    • Use Cases and Data
    • Roles and Responsibilities
    • Services
    • Classifications
    • Data Modeling
    • Lifecycle Processes
    • Baselines
    • Audit and Data Validation
    • Metrics
    • Communications Plan
    • Roadmap

    This phase will walk you through the following aspect of a configuration management system:
    Roadmap
    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • SCM project manager

    Harness Service Configuration Management Superpowers

    Step 4.1

    Define measures of success

    Activities

    4.1.1 Identify key metrics to define configuration management success
    4.1.2 Brainstorm and record desired reports, dashboards, and analytics
    4.1.3 Build a configuration management policy

    This phase will walk you through the following aspects of a configuration management system:

    • Metrics
    • Policy

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • SCM project manager

    The value of metrics can be found in IT efficiency increases

    When determining metrics for configuration management, be sure to separate metrics needed to gauge configuration management success and those that will use data from the CMDB to provide metrics on the success of other practices.

    • Metrics provide accurate indicators for IT and business decisions.
    • Metrics help you identify IT efficiencies and problems and solve issues before they become more serious.
    • Active metrics tracking makes root cause analysis of issues much easier.
    • Proper application of metrics helps IT services identification and prioritization.
    • Operational risks can be prevented by identifying and implementing metrics.
    • Metrics analysis increases the confidence of the executive team and ensures that IT is working well.

    A funnel is shown. The output is IT Performance. The inputs are: Service Desk Metrics; Incident Metrics; Asset Mgmt. Metrics; Release Mgmt. Metrics; Change Mgmt. Metrics; Infra. Metrics

    4.1.1 Identify key metrics to define configuration management success

    Determine what metrics are specifically related to the practice and how and when metrics will be accessed.

    Success factors

    Key metrics

    Source

    Product and service configuration data is relevant

    • Stakeholder satisfaction with data access, accuracy, and usability
    • Stakeholder satisfaction with service configuration management interface, procedures, and reports

    Stakeholder discussions

    • Number of bad decisions made due to incorrect or insufficient data
    • Impact of bad decisions made due to incorrect or insufficient data

    Process owner discussions

    • Number and impact of data identified as incorrect
    • % of CMDB data verified over the period

    CMDB

    Cost and effort are continually optimized

    • Effort devoted to service configuration management
    • Cost of tools directly related to the process

    Resource management or scheduling

    ERP

    Progress reporting

    • Communication execution
    • Process
    • Communications and feedback

    Communications team and stakeholder discussions

    Data – How many products are in the CMDB and are fully and accurately discovered and mapped?

    CMDB

    Ability to meet milestones on time and with appropriate quality

    Project team

    Document metrics in the Configuration Management Standard Operating Procedures, section 7: Success Metrics

    Use performance metrics to identify areas to improve service management processes using CMDB data

    Metrics can indicate a problem with service management processes but cannot provide a clear path to a solution on their own.

    • The biggest challenge is defining and measuring the process and people side of the equation.
    • Expected performance may also need to be compared to actual performance in planning, budgeting, and improvements.
    • The analysis will need to include critical success factors (CSFs), data collection procedures, office routines, engineering practices, and flow diagrams including workflows and key relationships.
    • External benchmarking may also prove useful in identifying how similar organizations are managing aspects of their infrastructure, processing transactions/requests, or staffing. If using external benchmarking for actual process comparisons, clearly defining your internal processes first will make the data collection process smoother and more informative.

    Info-Tech Insight

    Using a service framework such as ITIL, COBIT, or ISO 20000 may make this job easier, and subscribing to benchmarking partners will provide some of the external data needed for comparison.

    4.1.2 Brainstorm and record desired reports, dashboards, and analytics with related practices

    The project team will use this list as a starting point

    Allot 45 minutes for this discussion.

    1. Create a table for each service or business capability.
      1. Have one column for each way of consuming data: reports, dashboards, and ad hoc analytics.
      2. Have one row for each stakeholder group that will consume the information.
    2. Use the challenges and use cases to brainstorm reports, dashboards, and ad hoc analytic capabilities that each stakeholder group will find useful.
    3. Record these results in your Configuration Management Standard Operating Procedures, section 7: Aligned Processes' Desired Analytical Capabilities.
    Stakeholder Groups Reports Dashboards
    Change Management
    • CI changes executed without an RFC
    • RFCs grouped by service
    • Potential collisions in upcoming changes
    Security
    • Configuration changes that no longer match the baseline
    • New configuration items discovered
    Finance
    • Service-based costs
    • Service consumption by department

    Download the blueprint Take Control of Infrastructure and Operations Metrics to create a complete metrics program.

    Create a configuration management policy and communicate it

    Policies are important documents to provide definitive guidelines and clarity around data collection and use, process adherence, and controls.

    • A configuration management policy will apply to IT as the audience, and participants in the program will largely be technical.
    • Business users will benefit from a great configuration management program but will not participate directly.
    • The policy will include objectives and scope, use of data, security and integrity of data, data models and criteria, and baseline configurations.
    • Several governing regulations and practices may intersect with configuration management, such as ITIL, COBIT, and NIST frameworks, as well as change enablement, quality management, asset management, and more.
    • As the policy is written, review processes to ensure policies and processes are aligned. The policy should enable processes, and it may require modifications if it hinders the collection, security, or use of data required to meet proposed use cases.
    • Once the policy is written and approved, ensure all stakeholders understand the importance, context, and repercussions of the policy.

    The approvals process is about appropriate oversight of the drafted policies. For example:

    • Do the policies satisfy compliance and regulatory requirements?
    • Do the policies work with the corporate culture?
    • Do the policies address the underlying need?

    If the draft is approved:

    • Set the effective date and a review date.
    • Begin communication, training, and implementation.

    Employees must know that there are new policies and understand the steps they must take to comply with the policies in their work.

    Employees must be able to interpret, understand, and know how to act upon the information they find in the policies.

    Employees must be informed on where to get help or ask questions and who to request policy exceptions from.

    If the draft is rejected:

    • Acquire feedback and make revisions.
    • Resubmit for approval.

    4.1.3 Build a configuration management policy

    This policy provides the foundation for configuration control.

    Use this template as a starting point.

    The Configuration Management Policy provides the foundation for a configuration control board and the use of configuration baselines.
    Instructions:

    1. Review and modify the policy statements. Ensure that the policy statements reflect your organization and the expectations you wish to set.
    2. If you don't have a CCB: The specified responsibilities can usually be assigned to either the configuration manager or the governing body for change enablement.
    3. Determine if you should apply this policy beyond SCM. As written, this policy may provide a good starting point for practices such as:
      • Secure baseline configuration management
      • Software configuration management

    Two screenshots from the Configuration Management Policy template

    Download the Configuration Management Policy template

    Step 4.2

    Build communications and a roadmap

    Activities

    4.2.1 Build a communications plan
    4.2.2 Identify milestones

    This phase will walk you through the following aspects of a configuration management system:

    • Communications plan
    • Roadmap

    This phase involves the following participants:

    • IT service owners
    • Enterprise architects
    • Practice owners and managers
    • SCM practice manager
    • SCM project manager

    Outcomes of this step

    • Documented expectations around configuration control
    • Roadmap and action items for the SCM project

    Do not discount the benefits of a great communications plan as part of change management

    Many configuration management projects have failed due to lack of organizational commitment and inadequate communications.

    • Start at the top to ensure stakeholder buy-in by verifying alignment and use cases. Without a committed project sponsor who believes in the value of configuration management, it will be difficult to draw the IT team into the vision.
    • Clearly articulate the vision, strategy, and goals to all stakeholders. Ensure the team understands why these changes are happening, why they are happening now, and what outcomes you hope to achieve.
    • Gain support from technical teams by clearly expressing organizational and departmental benefits – they need to know "what's in it for me."
    • Clearly communicate new responsibilities and obligations and put a feedback process in place to hear concerns, mitigate risk, and act on opportunities for improvement. Be prepared to answer questions as this practice is rolled out.
    • Be consistent in your messaging. Mixed messages can easily derail progress.
    • Communicate to the business how these efforts will benefit the organization.
    • Share documents built in this blueprint or workshop with your technical teams to ensure they have a clear picture of the entire configuration management practice.
    • Share your measures and view of success and communicate wins throughout building the practice.

    30%

    When people are truly invested in change, it is 30% more likely to stick.
    McKinsey

    82%

    of CEOs identify organizational change management as a priority.
    D&B Consulting

    6X

    Initiatives with excellent change management are six times more likely to meet objectives than those with poor change management.
    Prosci

    For a more detailed program, see Drive Technology Adoption

    Formulate a communications plan to ensure all stakeholders and impacted staff will be aware of the plan

    Communication is key to success in process adoption and in identifying potential risks and issues with integration with other processes. Engage as often as needed to get the information you need for the project and for adoption.

    Identify Messages

    Distinct information that needs to be sent at various times. Think about:

    • Who will be impacted and how.
    • What the goals are for the project/new process.
    • What the audience needs to know about the new process and how they will interface with each business unit.
    • How people can request configuration data.

    Identify Audiences

    Any person or group who will be the target of the communication. This may include:

    • Project sponsors and stakeholders.
    • IT staff who will be involved in the project.
    • IT staff who will be impacted by the project (i.e. who will benefit from it or have obligations to fulfill because of it).
    • Business sponsors and product owners.

    Document and Track

    Document messaging, medium, and responsibility, working with the communications team to refine messages before executing.

    • Identify where people can send questions and feedback to ensure they have the information they need to make or accept the changes.
    • Document Q&A and share in a central location.

    Determine Timing

    Successful communications plans consider timing of various messages:

    • Advanced high-level notice of improvements for those who need to see action.
    • Advanced detailed notice for those who will be impacted by workload.
    • Advanced notice for who will be impacted (i.e. who will benefit from it or have obligations to fulfill because of it) once the project is ready to be transitioned to daily life.

    Determine Delivery

    Work with your communications team, if you have one, to determine the best medium, such as:

    • Meeting announcement for stakeholders and IT.
    • Newsletter for those less impacted.
    • Intranet announcements: "coming soon!"
    • Demonstrations with vendors or project team.

    4.2.1 Build a communications plan

    The communications team will use this list as a starting point.

    Allot 45 minutes for this discussion.

    Identify stakeholders.

    1. Identify everyone who will be affected by the project and by configuration management.

    Craft key messages tailored to each stakeholder group.

    1. Identify the key messages that must be communicated to each group.

    Finalize the communication plan.

    1. Determine the most appropriate timing for communications with each group to maximize receptivity.
    2. Identify any communication challenges you anticipate and incorporate steps to address them into your communication plan.
    3. Identify multiple methods for getting the messages out (e.g. newsletters, emails, meetings).
    1. Identify how feedback will be collected (i.e. through interviews or surveys) to measure whether the changes were communicated well.
    Audience Message Medium Timing Feedback Mechanism
    Configuration Management Team Communicate all key processes, procedures, policies, roles, and responsibilities In-person meetings and email communications Weekly meetings Informal feedback during weekly meetings
    Input

    Output

    • Discussion
    • Rough draft of messaging for communications team
    MaterialsParticipants
    • Project plan
    • Configuration manager
    • Project sponsor
    • IT director
    • Communications team

    Build a realistic, high-level roadmap including milestones

    Break the work into manageable pieces

    1. Plan to have multiple phases with short-, medium-, and long-term goals/timeframes. Building a CMDB is not easy and should be broken into manageable sections.
    2. Set reasonable milestones. For each phase, document goals to define "done" and ensure they're reasonable for the resources you have available. If working with a vendor, include them in your discussions of what's realistic.
    3. Treat the first phase as a pilot. Focus on items you understand well:
      1. Well-understood user-facing and IT services
      2. High-maturity management and governance practices
      3. Trusted data sources
    4. Capture high-value, high-criticality services early. Depending on the complexity of your systems, you may need to split this phase into multiple phases.

    Document this table in the Configuration Management Project Charter, section 3.0: Milestones

    Timeline/Owner Milestone/Deliverable Details
    First four weeks Milestone: Plan defined and validated with ITSM installation vendor Define processes for intake, maintenance, and retirement.
    Rebecca Roberts Process documentation written, approved, and ready to communicate Review CI categories

    4.2.2 Identify milestones

    Build out a high-level view to inform the project plan

    Open the Configuration Management Project Charter, section 3: Milestones.
    Instructions:

    1. Identify high-level milestones for the implementation of the configuration management program. This may include tool evaluation and implementation, assignment of roles, etc.
    2. Add details to fill out the milestone, keeping to a reasonable level of detail. This may inform vendor discussion or further development of the project plan.
    3. Add target dates to the milestones. Validate they are realistic with the team.
    4. Add notes to the assumptions and constraints section.
    5. Identify risks to the plan.

    Two Screenshots from the Configuration Management Project Charter

    Download the Configuration Management Project Charter

    Workshop Participants

    R = Recommended
    O = Optional

    Participants Day 1 Day 2 Day 3 Day 4
    Configuration Management Strategy CMDB Data Structure Processes Communications & Roadmap
    Morning Afternoon Morning Afternoon Morning Afternoon Morning Afternoon
    Head of IT R O
    Project Sponsor R R O O O O O O
    Infrastructure, Enterprise Apps Leaders R R O O O O O O
    Service Manager R R O O O O O O
    Configuration Manager R R R R R R R R
    Project Manager R R R R R R R R
    Representatives From Network, Compute, Storage, Desktop R R R R R R R R
    Enterprise Architecture R R R R O O O O
    Owner of Change Management/Change Control/Change Enablement R R R R R R R R
    Owner of In-Scope Apps, Use Cases R R R R R R R R
    Asset Manager R R R R R R R R

    Related Info-Tech Research

    Research Contributors and Experts

    Thank you to everyone who contributed to this publication

    Brett Johnson, Senior Consultant, VMware

    Yev Khovrenkov, Senior Consultant, Solvera Solutions

    Larry Marks, Reviewer, ISACA New Jersey

    Darin Ohde, Director of Service Delivery, GreatAmerica Financial Services

    Jim Slick, President/CEO, Slick Cyber Systems

    Emily Walker, Sr. Digital Solution Consultant, ServiceNow

    Valence Howden, Principal Research Director, Info-Tech Research Group

    Allison Kinnaird, Practice Lead, IT Operations, Info-Tech Research Group

    Robert Dang, Principal Research Advisor, Security, Info-Tech Research Group

    Monica Braun, Research Director, IT Finance, Info-Tech Research Group

    Jennifer Perrier, Principal Research Director, IT Finance, Info-Tech Research Group

    Plus 13 anonymous contributors

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    Our Advice

    Critical Insight

    • Your cloud security architecture needs to be strategic, realistic, and based on risk. The NIST approach to cloud security is to include everything security into your cloud architecture to be deemed secure. However, you can still have a robust and secure cloud architecture by using a risk-based approach to identify the necessary controls and mitigating services for your environment.
    • The cloud is not the right choice for everyone. You’re not as unique as you think. Start with a reference model that is based on your risks and business attributes and optimize it from there.
    • Your responsibility doesn’t end at the vendor. Even if you outsource your security services to your vendors, you will still have security responsibilities to address.
    • Don’t boil the ocean; do what is realistic for your enterprise. Your cloud security architecture should be based on securing your most critical assets. Use our reference model to determine a launch point.
    • A successful strategy is holistic. Controlling for cloud risks comes from knowing what the risks are. Consider the full spectrum of security, including both processes and technologies.

    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 the privacy of data and other information.
      • Securing the network connection points.
      • Knowing the risks associated with the cloud and mitigating those risks with the appropriate services.
    • This blueprint and associated tools are scalable for all types of organizations within various industry sectors. It allows them to know what types of risk they are facing and what security services are strongly recommended to mitigate those risks.

    Identify the Components of Your Cloud Security Architecture Research & Tools

    Start Here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create a cloud security architecture with security at the forefront, 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. Cloud security alignment analysis

    Explore how the cloud changes and whether your enterprise is ready for the shift to the cloud.

    • Identify the Components of Your Cloud Security Architecture – Phase 1: Cloud Security Alignment Analysis
    • Cloud Security Architecture Workbook

    2. Business-critical workload analysis

    Analyze the workloads that will migrated to the cloud. Consider the various domains of security in the cloud, considering the cloud’s unique risks and challenges as they pertain to your workloads.

    • Identify the Components of Your Cloud Security Architecture – Phase 2: Business-Critical Workload Analysis

    3. Cloud security architecture mapping

    Map your risks to services in a reference model from which to build a robust launch point for your architecture.

    • Identify the Components of Your Cloud Security Architecture – Phase 3: Cloud Security Architecture Mapping
    • Cloud Security Architecture Archive Document
    • Cloud Security Architecture Reference Model (Visio)
    • Cloud Security Architecture Reference Model (PDF)

    4. Cloud security strategy planning

    Map your risks to services in a reference architecture to build a robust roadmap from.

    • Identify the Components of Your Cloud Security Architecture – Phase 4: Cloud Security Strategy Planning
    • Cloud Security Architecture Communication Deck

    Infographic

    Workshop: Identify the Components of Your Cloud Security 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 Cloud Security Alignment Analysis

    The Purpose

    Understand your suitability and associated risks with your workloads as they are deployed into the cloud.

    Key Benefits Achieved

    An understanding of the organization’s readiness and optimal service level for cloud security.

    Activities

    1.1 Workload Deployment Plan

    1.2 Cloud Suitability Questionnaire

    1.3 Cloud Risk Assessment

    1.4 Cloud Suitability Analysis

    Outputs

    Workload deployment plan

    Determined the suitability of the cloud for your workloads

    Risk assessment of the associated workloads

    Overview of cloud suitability

    2 Business-Critical Workload Analysis

    The Purpose

    Explore your business-critical workloads and the associated controls and mitigating services to secure them.

    Key Benefits Achieved

    Address NIST 800-53 security controls and the appropriate security services that can mitigate the risks appropriately.

    Activities

    2.1 “A” Environment Analysis

    2.2 “B” Environment Analysis

    2.3 “C” Environment Analysis

    2.4 Prioritized Security Controls

    2.5 Effort and Risk Dashboard Overview

    Outputs

    NIST 800-53 control mappings and relevancy

    NIST 800-53 control mappings and relevancy

    NIST 800-53 control mappings and relevancy

    Prioritized security controls based on risk and environmental makeup

    Mitigating security services for controls

    Effort and Risk Dashboard

    3 Cloud Security Architecture Mapping

    The Purpose

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

    Key Benefits Achieved

    Comprehensive list of security services, and their applicability to your network environment. Documentation of your “current” state of cloud security.

    Activities

    3.1 Cloud Security Control Mapping

    3.2 Cloud Security Architecture Reference Model Mapping

    Outputs

    1. Cloud Security Architecture Archive Document to codify and document each of the associated controls and their risk levels to security services

    2. Mapping of the codified controls onto Info-Tech’s Cloud Security Architecture Reference Model for clear security prioritization

    4 Cloud Security Strategy Planning

    The Purpose

    Prepare a communication deck for executive stakeholders to socialize them to the state of your cloud security initiatives and where you still have to go.

    Key Benefits Achieved

    A roadmap for improving security in the cloud.

    Activities

    4.1 Cloud Security Strategy Considerations

    4.2 Cloud Security Architecture Communication Deck

    Outputs

    Consider the additional security considerations of the cloud for preparation in the communication deck.

    Codify all your results into an easily communicable communication deck with a clear pathway for progression and implementation of security services to mitigate cloud risks.

    Optimize IT Change Management

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    • 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.

    Rationalize Your Collaboration Tools

    • Buy Link or Shortcode: {j2store}51|cart{/j2store}
    • member rating overall impact (scale of 10): 7.3/10 Overall Impact
    • member rating average dollars saved: 10 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
    • Organizations collaboration toolsets are increasingly disordered and overburdened. Not only do organizations waste money by purchasing tools that overlap with their current toolset, but also employees’ productivity is destroyed by having to spend time switching between multiple tools.
    • Shadow IT is easier than ever. Without suitable onboarding and agreed-upon practices, employees will seek out their own solutions for collaboration. No transparency of what tools are being used means that information shared through shadow IT cannot be coordinated, monitored, or regulated effectively.

    Our Advice

    Critical Insight

    • Best-of-breed approaches create more confusion than productivity. Collaboration toolsets should be as streamlined as possible.
    • Employee-led initiatives to implement new toolsets are more successful. Focus on what is a suitable fit for employees’ needs.
    • Strategizing toolsets enhances security. File transfers and communication through unmonitored, unapproved tools increases phishing and hacking risks.

    Impact and Result

    • Categorize your current collaboration toolset, identifying genuine overlaps and gaps in your collaboration capabilities.
    • Work through our best-practice recommendations to decide which redundant overlapping tools should be phased out.
    • Build business requirements to fill toolset gaps and create an adoption plan for onboarding new tools.
    • Create a collaboration strategy that documents collaboration capabilities, rationalizes them, and states which capability to use when.

    Rationalize Your Collaboration Tools Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to create a collaboration strategy that will improve employee efficiency and save the organization time and money.

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

    1. Evaluate current toolset

    Identify and categorize current collaboration toolset usage to recognize unnecessary overlaps and legitimate gaps.

    • Rationalize Your Collaboration Tools – Phase 1: Evaluate Current Toolset
    • Identifying and Categorizing Shadow Collaboration Tools Survey
    • Overlaps and Gaps in Current Collaboration Toolset Template

    2. Strategize toolset overlaps

    Evaluate overlaps to determine which redundant tools should be phased out and explore best practices for how to do so.

    • Rationalize Your Collaboration Tools – Phase 2: Strategize Toolset Overlaps
    • Phase-Out Plan Gantt Chart Template
    • Phase-Out Plan Marketing Materials

    3. Fill toolset gaps

    Fill your collaboration toolset gaps with best-fit tools, build business requirements for those tools, and create an adoption plan for onboarding.

    • Rationalize Your Collaboration Tools – Phase 3: Fill Toolset Gaps
    • Adoption Plan Gantt Chart Template
    • Adoption Plan Marketing Materials
    • Collaboration Tools Business Requirements Document Template
    • Collaboration Platform Evaluation Tool
    [infographic]

    Workshop: Rationalize Your Collaboration Tools

    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 Categorize the Toolset

    The Purpose

    Create a collaboration vision.

    Acknowledge the current state of the collaboration toolset.

    Key Benefits Achieved

    A clear framework to structure the collaboration strategy

    Activities

    1.1 Set the vision for the Collaboration Strategy.

    1.2 Identify your collaboration tools with use cases.

    1.3 Learn what collaboration tools are used and why, including shadow IT.

    1.4 Begin categorizing the toolset.

    Outputs

    Beginnings of the Collaboration Strategy

    At least five archetypical use cases, detailing the collaboration capabilities required for these cases

    Use cases updated with shadow IT currently used within the organization

    Overlaps and Gaps in Current Capabilities Toolset Template

    2 Strategize Overlaps

    The Purpose

    Identify redundant overlapping tools and develop a phase-out plan.

    Key Benefits Achieved

    Communication and phase-out plans for redundant tools, streamlining the collaboration toolset.

    Activities

    2.1 Identify legitimate overlaps and gaps.

    2.2 Explore business and user strategies for identifying redundant tools.

    2.3 Create a Gantt chart and communication plan and outline post-phase-out strategies.

    Outputs

    Overlaps and Gaps in Current Capabilities Toolset Template

    A shortlist of redundant overlapping tools to be phased out

    Phase-out plan

    3 Build Business Requirements

    The Purpose

    Gather business requirements for finding best-fit tools to fill toolset gaps.

    Key Benefits Achieved

    A business requirements document

    Activities

    3.1 Use SoftwareReviews and the Collaboration Platform Evaluation Tool to shortlist best-fit collaboration tool.

    3.2 Build SMART objectives and goals cascade.

    3.3 Walk through the Collaboration Tools Business Requirements Document Template.

    Outputs

    A shortlist of collaboration tools

    A list of SMART goals and a goals cascade

    Completed Business Requirements Document

    4 Create an Adoption Plan

    The Purpose

    Create an adoption plan for successfully onboarding new collaboration tools.

    Key Benefits Achieved

    An adoption plan

    Activities

    4.1 Fill out the Adoption Plan Gantt Chart Template.

    4.2 Create the communication plan.

    4.3 Explore best practices to socialize the new tools.

    Outputs

    Completed Gantt chart

    Adoption plan marketing materials

    Long-term strategy for engaging employees with onboarded tools

    Optimize IT Project Intake, Approval, and Prioritization

    • Buy Link or Shortcode: {j2store}433|cart{/j2store}
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    • Parent Category Name: Portfolio Management
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    • Companies are approving more projects than they can deliver. Most organizations say they have too many projects on the go and an unmanageable and ever-growing backlog of things to get to.
    • While organizations want to achieve a high throughput of approved projects, many are unable or unwilling to allocate an appropriate level of IT resourcing to adequately match the number of approved initiatives.
    • Portfolio management practices must find a way to accommodate stakeholder needs without sacrificing the portfolio to low-value initiatives that do not align with business goals.

    Our Advice

    Critical Insight

    • Approve only the right projects that you have capacity to deliver. Failure to align projects with strategic goals and resource capacity are the most common causes of portfolio waste across organizations.
    • More time spent with stakeholders during the ideation phase to help set realistic expectations for stakeholders and enhance visibility into IT’s capacity and processes is key to both project and organizational success.
    • Too much intake red tape will lead to an underground economy of projects that escape portfolio oversight, while too little intake formality will lead to a wild west of approvals that could overwhelm the PMO. Finding the right balance of intake formality for your organization is the key to establishing a PMO that has the ability to focus on the right things.

    Impact and Result

    • Establish an effective scorecard to create transparency into IT’s capacity and processes. This will help set realistic expectations for stakeholders, eliminate “squeaky wheel” prioritization, and give primacy to the highest value requests.
    • Build a centralized process that funnels requests into a single intake channel to eliminate confusion and doubt for stakeholders and staff while also reducing off-the-grid initiatives.
    • Clearly define a series of project approval steps, and communicate requirements for passing them.
    • Develop practices that incorporate the constraint of resource capacity to cap the amount of project approvals to that which is realistic to help improve the throughput of projects through the portfolio.

    Optimize IT Project Intake, Approval, and Prioritization Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should optimize project intake, approval, and prioritization process, 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. Set realistic goals for optimizing project intake, approval, and prioritization process

    Get value early by piloting a scorecard for objectively determining project value, and then examine your current state of project intake to set realistic goals for optimizing the process.

    • Optimize Project Intake, Approval, and Prioritization – Phase 1: Set Realistic Goals for Optimizing Process
    • Project Value Scorecard Development Tool
    • Project Intake Workflow Template - Visio
    • Project Intake Workflow Template - PDF
    • Project Intake, Approval, and Prioritization SOP

    2. Build an optimized project intake, approval, and prioritization process

    Take a deeper dive into each of the three processes – intake, approval, and prioritization – to ensure that the portfolio of projects is best aligned to stakeholder needs, strategic objectives, and resource capacity.

    • Optimize Project Intake, Approval, and Prioritization – Phase 2: Build New Optimized Processes
    • Light Project Request Form
    • Detailed Project Request Form
    • Project Intake Classification Matrix
    • Benefits Commitment Form Template
    • Proposed Project Technology Assessment Tool
    • Fast Track Business Case Template
    • Comprehensive Business Case Template
    • Project Intake and Prioritization Tool

    3. Integrate the new optimized processes into practice

    Plan a course of action to pilot, refine, and communicate the new optimized process using Info-Tech’s expertise in organizational change management.

    • Optimize Project Intake, Approval, and Prioritization – Phase 3: Integrate the New Processes into Practice
    • Intake Process Pilot Plan Template
    • Project Backlog Manager
    • Intake and Prioritization Impact Analysis Tool
    [infographic]

    Workshop: Optimize IT Project Intake, Approval, and Prioritization

    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 Refocus on Project Value to Set Realistic Goals

    The Purpose

    Set the course of action for optimizing project intake, approval, and prioritization by examining the current state of the process, the team, the stakeholders, and the organization as a whole.

    Key Benefits Achieved

    The overarching goal of optimizing project intake, approval, and prioritization process is to maximize the throughput of the best projects. To achieve this goal, one must have a clear way to determine what are “the best” projects.

    Activities

    1.1 Define the criteria with which to determine project value.

    1.2 Envision your target state for your optimized project intake, approval, and prioritization process.

    Outputs

    Draft project valuation criteria

    Examination of current process, definition of process success criteria

    2 Examine, Optimize, and Document the New Process

    The Purpose

    Drill down into, and optimize, each of the project intake, approval, and prioritization process.

    Key Benefits Achieved

    Info-Tech’s methodology systemically fits the project portfolio into its triple constraint of stakeholder needs, strategic objectives, and resource capacity, to effectively address the challenges of establishing organizational discipline for project intake.

    Activities

    2.1 Conduct retrospectives of each process against Info-Tech’s best practice methodology for project intake, approval, and prioritization process.

    2.2 Pilot and customize a toolbox of deliverables that effectively captures the right amount of data developed for informing the appropriate decision makers for approval.

    Outputs

    Documentation of new project intake, approval, and prioritization process

    Tools and templates to aid the process

    3 Pilot, Plan, and Communicate the New Process

    The Purpose

    Reduce the risks of prematurely implementing an untested process.

    Methodically manage the risks associated with organizational change and maximize the likelihood of adoption for the new process.

    Key Benefits Achieved

    Engagement paves the way for smoother adoption. An “engagement” approach (rather than simply “communication”) turns stakeholders into advocates who can help boost your message, sustain the change, and realize benefits without constant intervention or process command-and-control.

    Activities

    3.1 Create a plan to pilot your intake, approval, and prioritization process to refine it before rollout.

    3.2 Analyze the impact of organizational change through the eyes of PPM stakeholders to gain their buy-in.

    Outputs

    Process pilot plan

    Organizational change communication plan

    Further reading

    Optimize IT Project Intake, Approval, and Prioritization

    Decide which IT projects to approve and when to start them.

    ANALYST PERSPECTIVE

    Capacity-constrained intake is the only sustainable path forward.

    "For years, the goal of project intake was to select the best projects. It makes sense and most people take it on faith without argument. But if you end up with too many projects, it’s a bad strategy. Don’t be afraid to say NO or NOT YET if you don’t have the capacity to deliver. People might give you a hard time in the near term, but you’re not helping by saying YES to things you can’t deliver."

    Barry Cousins,

    Senior Director, PMO Practice

    Info-Tech Research Group

    Our understanding of the problem

    This Research Is Designed For:

    • PMO Directors who have trouble with project throughput
    • CIOs who want to improve IT’s responsive-ness to changing needs of the business
    • CIOs who want to maximize the overall business value of IT’s project portfolio

    This Research Will Help You:

    • Align project intake and prioritization with resource capacity and strategic objectives
    • Balance proactive and reactive demand
    • Reduce portfolio waste on low-value projects
    • Manage project delivery expectations and satisfaction of business stakeholders
    • Get optimized project intake processes off the ground with low-cost, high-impact tools and templates

    This Research Will Also Assist:

    • C-suite executives and steering committee members who want to ensure IT’s successful delivery of projects with high business impact
    • Project sponsors and product owners who seek visibility and transparency toward proposed projects

    This Research Will Help Them:

    • Ensure that high-impact projects are approved and delivered in a timely manner
    • Gain clarity and visibility in IT’s project approval process
    • Improve your understanding of IT’s capacity to set more realistic expectations on what gets done

    Executive summary

    Situation

    • As a portfolio manager, you do not have the authority to decline or defer new projects – but you also lack the capacity to realistically say yes to more project work.
    • Stakeholders have unrealistic expectations of what IT can deliver. Too many projects are approved, and it may be unclear why their project is delayed or in a state of suspended animation.

    Complication

    • The cycle of competition is making it increasingly difficult to follow a longer-term strategy during project intake, making it unproductive to approve projects for any horizon longer than one to two years.
    • As project portfolios become more aligned to “transformative” projects, resourcing for smaller, department-level projects becomes increasingly opaque.

    Resolution

    • Establish an effective scorecard to create transparency into IT’s capacity and processes. This will help set realistic expectations for stakeholders, eliminate “squeaky wheel” prioritization, and give primacy to the highest value requests.
    • Build a centralized process that funnels requests into a single intake channel to eliminate confusion and doubt for stakeholders and staff while also reducing off-the-grid initiatives.
    • Clearly define a series of project approval steps, and communicate requirements for passing them.
    • Developing practices that incorporate the constraint of resource capacity to cap the amount of project approvals to that which is realistic will help improve the throughput of projects through the portfolio.

    Info-Tech Insight

    1. Approve only the right projects… Counterbalance stakeholder needs with strategic objectives of the business and that of IT, in order to maintain the value of your project portfolio at a high level.
    2. …that you have capacity to deliver. Resource capacity-informed project approval process enables you to avoid biting off more than you can chew and, over time, build a track record of fulfilling promises to deliver on projects.

    Most organizations are good at approving projects, but bad at starting them – and even worse at finishing them

    Establishing project intake discipline should be a top priority from a long-term strategy and near-term tactical perspective.

    Most organizations approve more projects than they can finish. In fact, many approve more than they can even start, leading to an ever-growing backlog where project ideas – often good ones – are never heard from again.

    The appetite to approve more runs directly counter to the shortage of resources that plagues most IT departments. This tension of wanting more from less suggests that IT departments need to be more disciplined in choosing what to take on.

    Info-Tech’s data shows that most IT organizations struggle with their project backlog (Source: N=397 organizations, Info-Tech Research Group PPM Current State Scorecard, 2017).

    “There is a minimal list of pending projects”

    A bar graph is depicted. It has 5 bars to show that when it comes to minimal lists of pending projects, 34% strongly disagree, 35% disagree, and 21% are ambivalent. Only 7% agree and 3% strongly agree.

    “Last year we delivered the number of projects we anticipated at the start of the year”

    A bar graph is depicted. It has 5 bars to show that when it comes to the number of projects anticipated at the start of the year, they were delivered. Surveyors strongly disagreed at 24%, disagreed at 31%, and were ambivalent at 30%. Only 13% agreed and 2% strongly agreed.

    The concept of fiduciary duty demonstrates the need for better discipline in choosing what projects to take on

    Unless someone is accountable for making the right investment of resource capacity for the right projects, project intake discipline cannot be established effectively.

    What is fiduciary duty?

    Officers and directors owe their corporation the duty of acting in the corporation’s best interests over their own. They may delegate the responsibility of implementing the actions, but accountability can't be delegated; that is, they have the authority to make choices and are ultimately answerable for them.

    No question is more important to the organization’s bottom line. Projects directly impact the bottom line because they require investment of resource time and money for the purposes of realizing benefits. The scarcity of resources requires that choices be made by those who have the right authority.

    Who approves your projects?

    Historically, the answer would have been the executive layer of the organization. However, in the 1990s management largely abdicated its obligation to control resources and expenditures via “employee empowerment.”

    Controls on approvals became less rigid, and accountability for choosing what to do (and not do) shifted onto the shoulders of the individual worker. This creates a current paradigm where no one is accountable for the malinvestment…

    …of resources that comes from approving too many projects. Instead, it’s up to individual workers to sink or swim as they attempt to reconcile, day after day, seemingly infinite organizational demand with their finite supply of working hours.

    Ad hoc project selection schemes do not work

    Without active management, reconciling the imbalance between demand with available work hours is a struggle that results largely in one of these two scenarios:

    “Squeaky wheel”: Projects with the most vocal stakeholders behind them are worked on first.

    • IT is seen to favor certain lines of business, leading to disenfranchisement of other stakeholders.
    • Everything becomes the highest priority, which reinforces IT’s image as a firefighter, rather than a business value contributor
    • High-value projects without vocal support never get resourced; opportunities are missed.

    “First in, first out”: Projects are approved and executed in the order they are requested.

    • Urgent or important projects for the business languish in the project backlog; opportunities are missed.
    • Low-value projects dominate the project portfolio.
    • Stakeholders leave IT out of the loop and resort to “underground economy” for getting their needs addressed.

    80% of organizations feel that their portfolios are dominated by low-value initiatives that do not deliver value to the business (Source: Cooper).

    Approve the right projects that you have capacity to deliver by actively managing the intake of projects

    Project intake, approval, and prioritization (collectively “project intake”) reconciles the appetite for new projects with available resource capacity and strategic goals.

    Project intake is a key process of project portfolio management (PPM). The Project Management Institute (PMI) describes PPM as:

    "Interrelated organizational processes by which an organization evaluates, selects, prioritizes, and allocates its limited internal resources to best accomplish organizational strategies consistent with its vision, mission, and values."

    (PMI, Standard for Portfolio Management, 3rd ed.)

    Triple Constraint Model of the Project Portfolio

    Project Intake:

    • Stakeholder Need
    • Strategic Objectives
    • Resource Capacity

    All three components are required for the Project Portfolio

    Organizations practicing PPM recognize available resource capacity as a constraint and aim to select projects – and commit the said capacity – to projects that:

    1. Best satisfy the stakeholder needs that constantly change with the market
    2. Best align to the strategic objectives and contribute the most to business
    3. Have sufficient resource capacity available to best ensure consistent project throughput

    92% vs. 74%: 92% of high-performing organizations in PPM report that projects are well aligned to strategic initiatives vs. 74% of low performers (PMI, 2015).

    82% vs. 55%: 82% of high-performing organizations in PPM report that resources are effectively reallocated across projects vs. 55% of low performers (PMI, 2015)

    Info-Tech’s data demonstrates that optimizing project intake can also improve business leaders’ satisfaction of IT

    CEOs today perceive IT to be poorly aligned to business’ strategic goals:

    43% of CEOs believe that business goals are going unsupported by IT (Source: Info-Tech’s CEO-CIO Alignment Survey (N=124)).

    60% of CEOs believe that improvement is required around IT’s understanding of business goals (Source: Info-Tech’s CEO-CIO Alignment Survey (N=124)).

    Business leaders today are generally dissatisfied with IT:

    30% of business stakeholders are supporters of their IT departments (Source: Info-Tech’s CIO Business Vision Survey (N=21,367)).

    The key to improving business satisfaction with IT is to deliver on projects that help the business achieve its strategic goals:

    A chart is depicted to show a list of reported important projects, and then reordering the projects based on actual importance.
    Source: Info-Tech’s CIO Business Vision Survey (N=21,367)

    Optimized project intake not only improves the project portfolio’s alignment to business goals, but provides the most effective way to improve relationships with IT’s key stakeholders.

    Benchmark your own current state with overall & industry-specific data using Info-Tech’s Diagnostic Program.

    However, establishing organizational discipline for project intake, approval, and prioritization is difficult

    Capacity awareness

    Many IT departments struggle to realistically estimate available project capacity in a credible way. Stakeholders question the validity of your endeavor to install capacity-constrained intake process, and mistake it for unwillingness to cooperate instead.

    Many moving parts

    Project intake, approval, and prioritization involve the coordination of various departments. Therefore, they require a great deal of buy-in and compliance from multiple stakeholders and senior executives.

    Lack of authority

    Many PMOs and IT departments simply lack the ability to decline or defer new projects.

    Unclear definition of value

    Defining the project value is difficult because there are so many different and conflicting ways that are all valid in their own right. However, without it, it's impossible to fairly compare among projects to select what's "best."

    Establishing intake discipline requires a great degree of cooperation and conformity among stakeholders that can be cultivated through strong processes.

    Info-Tech’s intake, approval, and prioritization methodology systemically fits the project portfolio to its triple constraint

    Info-Tech’s Methodology

    Info-Tech’s Methodology
    Project Intake Project Approval Project Prioritization
    Project requests are submitted, received, triaged, and scoped in preparation for approval and prioritization. Business cases are developed, evaluated, and selected (or declined) for investment, based on estimated value and feasibility. Work is scheduled to begin, based on relative value, urgency, and availability of resources.
    Stakeholder Needs Strategic Objectives Resource Capacity
    Project Portfolio Triple Constraint

    Info-Tech’s methodology for optimizing project intake delivers extraordinary value, fast

    In the first step of the blueprint, you will prototype a set of scorecard criteria for determining project value.

    Our methodology is designed to tackle your hardest challenge first to deliver the highest-value part of the deliverable. Since the overarching goal of optimizing project intake, approval, and prioritization process is to maximize the throughput of the best projects, one must define how “the best projects” are determined.

    In nearly all instances…a key challenge for the PPM team is reaching agreement over how projects should rank.

    – Merkhofer

    A Project Value Scorecard will help you:

    • Evolve the discussions on project and portfolio value beyond a theoretical concept
    • Enable apples-to-apples comparisons amongst many different kinds of projects

    The Project Value Scorecard Development Tool is designed to help you develop the project valuation scheme iteratively. Download the pre-filled tool with content that represents a common case, and then, customize it with your data.

    A screenshot of Info-Tech's Project Value Scorecard Development Tool

    This blueprint provides a clear path to maximizing your chance of success in optimizing project intake

    Info-Tech’s practical, tactical research is accompanied by a suite of tools and templates to accelerate your process optimization efforts.

    Organizational change and stakeholder management are critical elements of optimizing project intake, approval, and prioritization processes because they require a great degree of cooperation and conformity among stakeholders, and the list of key stakeholders are long and far-reaching.

    This blueprint will provide a clear path to not only optimize the processes themselves, but also for the optimization effort itself. This research is organized into three phases, each requiring a few weeks of work at your team’s own pace – or all in one week, through a workshop facilitated by Info-Tech analysts.

    Set Realistic Goals for Optimizing Project Intake, Approval, and Prioritization

    Tools and Templates:

    • Project Value Scorecard Development Tool (.xlsx)
    • PPM Assessment Report (Info-Tech Diagnostics)
    • Standard Operating Procedure Template (.docx)

    Build Optimized Project Intake, Approval, and Prioritization Processes

    Tools and Templates:

    • Project Request Forms (.docx)
    • Project Classification Matrix (.xlsx)
    • Benefits Commitment Form (.xlsx)
    • Proposed Project Technology Assessment Tool (.xlsx)
    • Business Case Templates (.docx)
    • Intake and Prioritization Tool (.xlsx)

    Integrate the Newly Optimized Processes into Practice

    Tools and Templates:

    • Process Pilot Plan Template (.docx)
    • Impact Assessment and Communication Planning Tool (.xlsx)

    Info-Tech’s approach to PPM is informed by industry best practices and rooted in practical insider research

    Info-Tech uses PMI and ISACA frameworks for areas of this research.

    The logo for PMI is in the picture.

    PMI’s Standard for Portfolio Management, 3rd ed. is the leading industry framework, proving project portfolio management best practices and process guidelines.

    The logo for COBIT 5 is in the picture.

    COBIT 5 is the leading framework for the governance and management of enterprise IT.

    In addition to industry-leading frameworks, our best-practice approach is enhanced by the insights and guidance from our analysts, industry experts, and our clients.

    Info-Tech's logo is shown.

    33,000+

    Our peer network of over 33,000 happy clients proves the effectiveness of our research.

    1,000+

    Our team conducts 1,000+ hours of primary and secondary research to ensure that our approach is enhanced by best practices.

    Deliver measurable project intake success for your organization with this blueprint

    Measure the value of your effort to track your success quantitatively and demonstrate the proposed benefits, as you aim to do so with other projects through improved PPM.

    Optimized project intake, approval, and prioritization processes lead to a high PPM maturity, which will improve the successful delivery and throughput of your projects, resource utilization, business alignment, and stakeholder satisfaction ((Source: BCG/PMI).

    A double bar graph is depicted to show high PPM maturity yields measurable benefits. It covers 4 categories: Management for individual projects, financial performance, strategy implementation, and organizational agility.

    Measure your success through the following metrics:

    • Reduced turnaround time between project requests and initial scoping
    • Number of project proposals with articulated benefits
    • Reduction in “off-the-grid” projects
    • Team satisfaction and workplace engagement
    • PPM stakeholder satisfaction score from business stakeholders: see Info-Tech’s PPM Customer Satisfaction Diagnostics

    $44,700: In the past 12 months, Info-Tech clients have reported an average measured value of $44,700 from undertaking a guided implementation of this research.

    Add your own organization-specific goals, success criteria, and metrics by following the steps in the blueprint.

    Case Study: Financial Services PMO prepares annual planning process with Project Value Scorecard Development Tool

    CASE STUDY

    Industry: Financial Services

    Source: Info-Tech Client

    Challenge

    PMO plays a diverse set of roles, including project management for enterprise projects (i.e. PMI’s “Directive” PMO), standards management for department-level projects (i.e. PMI’s “Supportive” PMO), process governance of strategic projects (i.e. PMI’s “Controlling” PMO), and facilitation / planning / reporting for the corporate business strategy efforts (i.e. Enterprise PMO).

    To facilitate the annual planning process, the PMO needed to develop a more data-driven and objective project intake process that implicitly aligned with the corporate strategy.

    Solution

    Info-Tech’s Project Value Scorecard tool was incorporated into the strategic planning process.

    Results

    The scorecard provided a simple way to list the competing strategic initiatives, objectively score them, and re-sort the results on demand as the leadership chooses to switch between ranking by overall score, project value, ability to execute, strategic alignment, operational alignment, and feasibility.

    The Project Value Scorecard provided early value with multiple options for prioritized rankings.

    A screenshot of the Project Value Scorecard is shown in the image.

    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

    Optimize Project Intake, Approval, and Prioritization – project overview

    1. Set Realistic Goals for Optimizing Process 2. Build New Optimized Processes 3. Integrate the New Processes into Practice
    Best-Practice Toolkit

    1.1 Define the criteria with which to determine project value.


    2.1 Streamline intake to manage stakeholder expectations.

    2.2 Set up steps of project approval to maximize strategic alignment while right-sizing the required effort.

    2.3 Prioritize projects to maximize the value of the project portfolio within the constraint of resource capacity.

    3.1 Pilot your intake, approval, and prioritization process to refine it before rollout.

    3.2 Analyze the impact of organizational change through the eyes of PPM stakeholders to gain their buy-in.

    Guided Implementations
    • Introduce Project Value Scorecard Development Tool and pilot Info-Tech’s example scorecard on your own backlog.
    • Map current project intake, approval, and prioritization process and key stakeholders.
    • Set realistic goals for process optimization.
    • Improve the management of stakeholder expectations with an optimized intake process.
    • Improve the alignment of the project portfolio to strategic objectives with an optimized approval process.
    • Enable resource capacity-constrained greenlighting of projects with an optimized prioritization process.
    • Create a process pilot strategy with supportive stakeholders.
    • Conduct a change impact analysis for your PPM stakeholders to create an effective communication strategy.
    • Roll out the new process and measure success.
    Onsite Workshop

    Module 1:

    Refocus on Project Value to Set Realistic Goals for Optimizing Project Intake, Approval, and Prioritization Process

    Module 2:

    Examine, Optimize, and Document the New Project Intake, Approval, and Prioritization Process

    Module 3:

    Pilot, Plan, and Communicate the New Process and Its Required Organizational Changes

    Phase 1 Outcome:
    • Draft project valuation criteria
    • Examination of current process
    • Definition of process success criteria
    Phase 2 Outcome:
    • Documentation of new project intake, approval, and prioritization process
    • Tools and templates to aid the process
    Phase 3 Outcome:
    • Process pilot plan
    • Organizational change communication 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 Workshop Day 5
    Activities

    Benefits of optimizing project intake and project value definition

    1.1 Complete and review PPM Current State Scorecard Assessment

    1.2 Define project value for the organization

    1.3 Engage key PPM stakeholders to iterate on the scorecard prototype

    Set realistic goals for process optimization

    2.1 Map current intake, approval, and prioritization workflow

    2.2 Enumerate and prioritize process stakeholders

    2.3 Determine the current and target capability levels

    2.4 Define the process success criteria and KPIs

    Optimize project intake and approval processes

    3.1 Conduct focused retrospectives for project intake and approval

    3.2 Define project levels

    3.3 Optimize project intake processes

    3.4 Optimize project approval processes

    3.5 Compose SOP for intake and approval

    3.6 Document the new intake and approval workflow

    Optimize project prioritization process plan for a process pilot

    4.1 Conduct focused retrospective for project prioritization

    4.2 Estimate available resource capacity

    4.3 Pilot Project Intake and Prioritization Tool with your project backlog

    4.4 Compose SOP for prioritization

    4.5 Document the new prioritization workflow

    4.6 Discuss process pilot

    Analyze stakeholder impact and create communication strategy

    5.1 Analyze stakeholder impact and responses to impending organization change

    5.2 Create message canvas for at-risk change impacts and stakeholders

    5.3 Set course of action for communicating change

    Deliverables
    1. PPM Current State Scorecard
    2. Project Value Scorecard prototype
    1. Current intake, approval, and prioritization workflow
    2. Stakeholder register
    3. Intake process success criteria
    1. Project request form
    2. Project level classification matrix
    3. Proposed project deliverables toolkit
    4. Customized intake and approval SOP
    5. Flowchart for the new intake and approval workflow
    1. Estimated resource capacity for projects
    2. Customized Project Intake and Prioritization Tool
    3. Customized prioritization SOP
    4. Flowchart for the new prioritization workflow
    5. Process pilot plan
    1. Completed Intake and Prioritization Impact Analysis Tool
    2. Communication strategy and plan

    Phase 1

    Set Realistic Goals for Optimizing Project Intake, Approval, and Prioritization 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: Set Realistic Goals for Project Intake, Approval, and Prioritization Process Proposed Time to Completion: 1-2 weeks

    Step 1.1: Define the project valuation criteria

    Start with an analyst kick-off call:

    • Discuss how a project value is currently determined
    • Introduce Info-Tech’s scorecard-driven project valuation approach

    Then complete these activities…

    • Create a first-draft version of a project value-driven prioritized list of projects
    • Review and iterate on the scorecard criteria

    With these tools & templates:

    Project Value Scorecard Development Tool

    Step 1.2: Envision your process target state

    Start with an analyst kick-off call:

    • Introduce Info-Tech’s project intake process maturity model
    • Discuss the use of Info-Tech’s Diagnostic Program for an initial assessment of your current PPM processes

    Then complete these activities…

    • Map your current process workflow
    • Enumerate and prioritize your key stakeholders
    • Define process success criteria

    With these tools & templates:

    Project Intake Workflow Template

    Project Intake, Approval, and Prioritization SOP Template

    Phase 1 Results & Insights:
    • The overarching goal of optimizing project intake, approval, and prioritization process is to maximize the throughput of the best projects. To achieve this goal, one must have a clear way to determine what are “the best” projects.

    Get to value early with Step 1.1 of this blueprint

    Define how to determine a project’s value and set the stage for maximizing the value of your project portfolio using Info-Tech’s Project Value Scorecard Development Tool.

    Where traditional models of consulting can take considerable amounts of time before delivering value to clients, Info-Tech’s methodology for optimizing project intake, approval, and prioritization process gets you to value fast.

    The overarching goal of optimizing project intake, approval, and prioritization process is to maximize the throughput of the best projects. To achieve this goal, one must have a clear way to determine what are “the best” projects.

    In the first step of this blueprint, you will pilot a multiple-criteria scorecard for determining project value that will help answer that question. Info-Tech’s Project Value Scorecard Development Tool is pre-populated with a ready-to-use, real-life example that you can leverage as a starting point for tailoring it to your organization – or adopt as is.

    Introduce objectivity and clarity to your discussion of maximizing the value of your project portfolio with Info-Tech’s practical IT research that drives measurable results.

    Download Info-Tech’s Project Value Scorecard Development Tool.

    A screenshot of Info-Tech's Project Value Scorecard Development Tool

    Step 1.1: Define the criteria with which to determine project value

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Learn how to use the Project Value Scorecard Development Tool
    • Create a first-draft version of a project value-driven prioritized list of projects

    This step involves the following participants:

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • CIO (optional)

    Outcomes of this step

    • Understand the importance of devising a consensus criteria for project valuation.
    • Try a project value scorecard-driven prioritization process with your currently proposed.
    • Set the stage for optimizing project intake, approval, and prioritization processes.

    Intake, Approval, and Prioritization is a core process in Info-Tech’s project portfolio management (PPM) framework

    PPM is an infrastructure around projects that aims to ensure that the best projects are worked on at the right time with the right people.

    PPM’s goal is to maximize the throughput of projects that provide strategic and operational value to the organization. To do this, a PPM strategy must help to:

    Info-Tech's Project Portfolio Management Process Model
    3. Status & Progress Reporting
    1. Intake, Approval & Prioritization 2. Resource Management 3. Project Management 4. Project Closure 5. Benefits Tracking
    Intake Execution Closure
    1. Select the best projects
    2. Pick the right time and people to execute the projects
    3. Make sure the projects are okay
    4. Make sure the projects get done
    5. Make sure they were worth doing

    If you don’t yet have a PPM strategy in place, or would like to revisit your existing PPM strategy before optimizing your project intake, approval, and prioritization practices, see Info-Tech’s blueprint, Develop a Project Portfolio Management Strategy.

    A screenshot of Info-Tech's blueprint Develop a Project Portfolio Management Strategy is shown.

    “Too many projects, not enough resources” is the reality of most IT environments

    A profound imbalance between demand (i.e. approved project work and service delivery commitments) and supply (i.e. people’s time) is the top challenge IT departments face today.

    In today’s organizations, the desires of business units for new products and enhancements, and the appetites of senior leadership to approve more and more projects for those products and services, far outstrip IT’s ability to realistically deliver on everything.

    The vast majority of IT departments lack the resourcing to meet project demand – especially given the fact that day-to-day operational demands frequently trump project work.

    As a result, project throughput suffers – and with it, IT’s reputation within the organization.

    An image is depicted that has several projects laid out near a scale filling one side of it and off of it. On the other part of the scale which is higher, has an image of people in it to help show the relationship between resource supply and project demand.

    Info-Tech Insight

    Where does the time go? The portfolio manager (or equivalent) should function as the accounting department for time, showing what’s available in IT’s human resources budget for projects and providing ongoing visibility into how that budget of time is being spent.

    Don’t weigh your portfolio down by starting more than you can finish

    Focus on what will deliver value to the organization and what you can realistically deliver.

    Most of the problems that arise during the lifecycle of a project can be traced back to issues that could have been mitigated during the initiation phase.

    More than simply a means of early problem detection at the project level, optimizing your initiation processes is also the best way to ensure the success of your portfolio. With optimized intake processes you can better guarantee:

    • The projects you are working on are of high value
    • Your project list aligns with available resource capacity
    • Stakeholder needs are addressed, but stakeholders do not determine the direction of the portfolio

    80% of organizations feel their portfolios are dominated by low-value initiatives that do not deliver value to the business (Source: Cooper).

    "(S)uccessful organizations select projects on the basis of desirability and their capability to deliver them, not just desirability" (Source: John Ward, Delivering Value from Information Systems and Technology Investments).

    Establishing project value is the first – and difficult – step for optimizing project intake, approval, and prioritization

    What is the best way to “deliver value to the organization”?

    Every organization needs to explicitly define how to determine project value that will fairly represent all projects and provide a basis of comparison among them during approval and prioritization. Without it, any discussions on reducing “low-value initiatives” from the previous slide cannot yield any actionable plan.

    However, defining the project value is difficult, because there are so many different and conflicting ways that are all valid in their own right and worth considering. For example:

    • Strategic growth vs. operational stability
    • Important work vs. urgent work
    • Return on investment vs. cost containment
    • Needs of a specific line of business vs. business-wide needs
    • Financial vs. intangible benefits

    This challenge is further complicated by the difficulty of identifying the right criteria for determining project value:

    Managers fail to identify around 50% of the important criteria when making decisions (Source: Transparent Choice).

    Info-Tech Insight

    Sometimes it can be challenging to show the value of IT-centric, operational-type projects that maintain critical infrastructure since they don’t yield net-new benefits. Remember that benefits are only half the equation; you must also consider the costs of not undertaking the said project.

    Find the right mix of criteria for project valuation with Info-Tech’s Project Value Scorecard Development Tool

    Scorecard-driven approach is an easy-to-understand, time-tested solution to a multiple-criteria decision-making problem, such as project valuation.

    This approach is effective for capturing benefits and costs that are not directly quantifiable in financial terms. Projects are evaluated on multiple specific questions, or criteria, that each yield a score on a point scale. The overall score is calculated as a weighted sum of the scores.

    Info-Tech’s Project Value Scorecard is pre-populated with a best-practice example of eight criteria, two for each category (see box at bottom right). This example helps your effort to develop your own project scorecard by providing a solid starting point:

    60%: On their own, decision makers could only identify around 6 of their 10 most important criteria for making decisions (Source: Transparent Choice).

    Finally, in addition, the overall scores of approved projects can be used as a metric on which success of the process can be measured over time.

    Download Info-Tech’s Project Value Scorecard Development Tool.

    A screenshot of Info-Tech's Project Value Scorecard Development Tool

    Categories of project valuation criteria

    • Strategic alignment: projects must be aligned with the strategic goals of the business and IT.
    • Operational alignment: projects must be aligned with the operational goals of the business and IT.
    • Feasibility: practical considerations for projects must be taken into account in selecting projects.
    • Financial: projects must realize monetary benefits, in increased revenue or decreased costs, while posing as little risk of cost overrun as possible.

    Review the example criteria and score description in the Project Value Scorecard Development Tool

    1.1.1 Project Value Scorecard Development Tool, Tab 2: Evaluation Criteria

    This tab lists eight criteria that cover strategic alignment, operational alignment, feasibility, and financial benefits/risks. Each criteria is accompanied by a qualitative score description to standardize the analysis across all projects and analysts. While this tool supports up to 15 different criteria, it’s better to minimize the number of criteria and introduce additional ones as the organization grows in PPM maturity.

    A screenshot of Info-Tech's Project Value Scorecard Development Tool, Tab 2: Evaluation Criteria

    Type: It is useful to break down projects with similar overall scores by their proposed values versus ease of execution.

    Scale: Five-point scale is not required for this tool. Use more or less granularity of description as appropriate for each criteria.

    Blank Criteria: Rows with blank criteria are greyed out. Enter a new criteria to turn on the row.

    Score projects and search for the right mix of criteria weighting using the scorecard tab

    1.1.1 Project Value Scorecard Development Tool, Tab 3: Project Scorecard

    In this tab, you can see how projects are prioritized when they are scored according to the criteria from the previous tab. You can enter the scores of up to 30 projects in the scorecard table (see screenshot to the right).

    A screenshot of Info-Tech's Project Value Scorecard Development Tool, Tab 3: Project Scorecard is shown.

    Value (V) or Execution (E) & Relative Weight: Change the relative weights of each criteria and review any changes to the prioritized list of projects change, whose rankings are updated automatically. This helps you iterate on the weights to find the right mix.

    Feasibility: Custom criteria category labels will be automatically updated.

    A screenshot of Info-Tech's Project Value Scorecard Development Tool, Tab 3: Project Scorecard is shown.

    Overall: Choose the groupings of criteria by which you want to see the prioritized list. Available groupings are:

    • Overall score
    • By value or by execution
    • By category

    Ranks and weighted scores for each project is shown.

    For example, click on the drop-down and choose “Execution.”

    A screenshot of Info-Tech's Project Value Scorecard Development Tool, Tab 3: Project Scorecard is shown.

    Project ranks are based only on execution criteria.

    Create a first-draft version of a project value-driven prioritized list of projects

    1.1.1 Estimated Time: 60 minutes

    Follow the steps below to test Info-Tech’s example Project Value Scorecard and examine the prioritized list of projects.

    1. Using your list of proposed, ongoing, and completed projects, identify a representative sample of projects in your project portfolio, varying in size, scope, and perceived value – about 10-20 of them.
    2. Arrange these projects in the order of priority using any processes or prioritization paradigm currently in place in your organization.
    • In the absence of formal process, use your intuition, as well as knowledge of organizational priorities, and your stakeholders.
  • Use the example criteria and score description in Tab 2 of Info-Tech’s Project Value Scorecard Development Tool to score the same list of projects:
    • Avoid spending too much time at this step. Prioritization criteria will be refined in the subsequent parts of the blueprint.
    • If multiple scorers are involved, allow some overlap to benchmark for consistency.
  • Enter the scores in Tab 3 of the tool to obtain the first-draft version of a project value-driven prioritized project list. Compare it with your list from Step 2.
  • INPUT

    • Knowledge of proposed, ongoing, and completed projects in your project portfolio

    OUTPUT

    • Prioritized project lists

    Materials

    • Project Value Scorecard Development Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • CIO (optional)

    Iterate on the scorecard to set the stage for optimizing project intake, approval, and prioritization

    1.1.2 Estimated Time: 60 minutes

    Conduct a retrospective of the previous activity by asking these questions:

    • How smooth was the overall scoring experience (Step 3 of Activity 1.1.1)?
    • Did you experience challenges in interpreting and applying the example project valuation criteria? Why? (e.g. lack of information, absence of formalized business strategic goals, too much room for interpretation in scoring description)
    • Did the prioritized project list agree with your intuition?

    Iterate on the project valuation criteria:

    • Manipulate the relatives weights of valuation criteria to fine-tune them.
    • Revise the scoring descriptions to provide clarity or customize them to better fit your organization’s needs, then update the project scores accordingly.
    • For projects that did not score well, will this cause concern from any stakeholders? Are the concerns legitimate? If so, this may indicate the need for inclusion of new criteria.
    • For projects that score too well, this may indicate a bias toward a specific type of project or group of stakeholders. Try adjusting the relative weights of existing criteria.

    INPUT

    • Activity 1.1.1

    OUTPUT

    • Retrospective on project valuation
    • Review of project valuation criteria

    Materials

    • Project Value Scorecard Development Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • CIO (optional)

    Next steps: engage key PPM stakeholders to reach a consensus when establishing how to determine project value

    Engage these key players to create the evaluation criteria that all stakeholders will support:

    • Business units: Projects are undertaken to provide value to the business. Senior management from business units must help define how project will be valued.
    • IT: IT must ensure that technical/practical considerations are taken into account when determining project value.
    • Finance: The CFO or designated representative will ensure that estimated project costs and benefits can be used to manage the budget.
    • PMO: PMO is the administrator of the project portfolio. PMO must provide coordination and support to ensure the process operates smoothly and its goals are realized.
    • Business analysts: BAs carry out the evaluation of project value. Therefore, their understanding of the evaluation criteria and the process as a whole are critical to the success of the process.
    • Project sponsors: Project sponsors are accountable for the realization of benefits for which projects are undertaken.

    Optimize the process with the new project value definition to focus your discussion with stakeholders

    This blueprint will help you not only optimize the process, but also help you work with your stakeholders to realize the benefits of the optimized process.

    In this step, you’ve begun improving the definition of project value. Getting it right will require several more iterations and will require a series of discussions with your key stakeholders.

    The optimized intake process built around the new definition of project value will help evolve a conceptual discussion about project value into a more practical one. The new process will paint a picture of what the future state will look like for your stakeholders’ requested projects getting approved and prioritized for execution, so that they can provide feedback that’s concrete and actionable. To help you with that process, you will be taken through a series of activities to analyze the impact of change on your stakeholders and create a communication plan in the last phase of the blueprint.

    For now, in the next step of this blueprint, you will undergo a series of activities to assess your current state to identify the specific areas for process optimization.

    "To find the right intersection of someone’s personal interest with the company’s interest on projects isn’t always easy. I always try to look for the basic premise that you can get everybody to agree on it and build from there… But it’s sometimes hard to make sure that things stick. You may have to go back three or four times to the core agreement."

    -Eric Newcomer

    Step 1.2: Envision your target state for your optimized project intake, approval, and prioritization process

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Map your current project intake, approval, and prioritization workflow, and document it in a flowchart
    • Enumerate and prioritize your key process stakeholders
    • Determine your process capability level within Info-Tech’s Framework
    • Establish your current and target states for project intake, approval, and prioritization process

    This step involves the following participants:

    • CIO
    • PMO Director/Portfolio Manager
    • Project Managers
    • Business Analysts
    • Other PPM stakeholders

    Outcomes of this step

    • Current project intake, approval, and prioritization process is mapped out and documented in a flowchart
    • Key process stakeholders are enumerated and prioritized to inform future discussion on optimizing processes
    • Current and target organizational process capability levels are determined
    • Success criteria and key performance indicators for process optimization are defined

    Use Info-Tech’s Diagnostic Program for an initial assessment of your current PPM processes

    This step is highly recommended but not required. Call 1-888-670-8889 to inquire about or request the PPM Diagnostics.

    Info-Tech's Project Portfolio Management Assessmentprovides you with a data-driven view of the current state of your portfolio, including your intake processes. Our PPM Assessment measures and communicates success in terms of Info-Tech’s best practices for PPM.

    A screenshot of Info-Tech's Project Portfolio Management Assessment blueprint is shown.

    Use the diagnostic program to:

    • Assess resource utilization across the portfolio.
    • Determine project portfolio reporting completeness.
    • Solicit feedback from your customers on the clarity of your portfolio’s business goals.
    • Rate the overall quality of your project management practices and benchmark your rating over time.
    A screenshot of Info-Tech's Project Portfolio Management Assessment blueprint is shown.

    Scope your process optimization efforts with Info-Tech’s high-level intake, approval, and prioritization workflow

    Info-Tech recommends the following workflow at a high level for a capacity-constrained intake process that aligns to strategic goals and stakeholder need.

    • Intake (Step 2.1)*
      • Receive project requests
      • Triage project requests and assign a liaison
      • High-level scoping & set stakeholder expectations
    • Approval (Step 2.2)*
      • Concept approval by project sponsor
      • High-level technical solution approval by IT
      • Business case approval by business
      • Resource allocation & greenlight projects
    • Prioritization (Step 2.3)*
      • Update project priority scores & available project capacity
      • Identify high-scoring and “on-the-bubble” projects
      • Recommend projects to greenlight or deliberate

    * Steps denote the place in the blueprint where the steps are discussed in more detail.

    Use this workflow as a baseline to examine your current state of the process in the next slide.

    Map your current project intake, approval, and prioritization workflow

    1.2.1 Estimated Time: 60-90 minutes

    Conduct a table-top planning exercise to map out the processes currently in place for project intake, approval, and prioritization.

    1. Use white 4”x6” recipe cards / large sticky notes to write out unique steps of a process. Use the high-level process workflow from the previous slides as a guide.
    2. Arrange the steps into chronological order. Benchmark the arrangement through a group discussion.
    3. Use green cards to identify artifacts or deliverables that result from a step.
    4. Use yellow cards to identify who does the work (i.e. responsible parties), and who makes the decisions (i.e. accountable party). Keep in mind that while multiple parties may be responsible, accountability cannot be shared and only a single party can be accountable for a process.
    5. Use red cards to identify issues, problems, or risks. These are opportunities for optimization.

    INPUT

    • Documentation describing the current process (e.g. standard operating procedures)
    • Info-Tech’s high-level intake workflow

    OUTPUT

    • Current process, mapped out

    Materials

    • 4x6” recipe cards
    • Whiteboard

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • Other PPM stakeholders

    Document the current project intake, approval, and prioritization workflow in a flowchart

    1.2.2 Estimated Time: 60 minutes

    Document the results of the previous table-top exercise (Activity 1.1.1) into a flow chart. Flowcharts provide a bird’s-eye view of process steps that highlight the decision points and deliverables. In addition, swim lanes can be used to indicate process stages, task ownership, or responsibilities (example below).

    An example is shown for activity 1.2.2

    Review and customize section 1.2, “Overall Process Workflow” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    "Flowcharts are more effective when you have to explain status and next steps to upper management."

    – Assistant Director-IT Operations, Healthcare Industry

    Browser-based flowchart tool examples

    INPUT

    • Mapped-out project intake process (Activity 1.2.1)

    OUTPUT

    • Flowchart representation of current project intake workflow

    Materials

    • Microsoft Visio, flowchart software, or Microsoft PowerPoint

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Example of a project intake, approval, and prioritization flow chart – without swim lanes

    An example project intake, approval, and prioritization flow chart without swim lanes is shown.

    Example of a project intake, approval, and prioritization flow chart – with swim lanes

    An example project intake, approval, and prioritization flow chart with swim lanes is shown.

    Download Info-Tech’s Project Intake Workflow Template (Visio and PDF)

    Enumerate your key stakeholders for optimizing intake, approval, and prioritization process

    1.2.3 30-45 minutes

    In the previous activity, accountable and responsible stakeholders for each of the steps in the current intake, approval, and prioritization process were identified.

    1. Based on your knowledge and insight of your organization, ensure that all key stakeholders with accountable and responsible stakeholders are accounted for in the mapped-out process. Note any omissions: it may indicate a missing step, or that the stakeholder ought to be, but are not currently, involved.
    2. For each step, identify any stakeholders that are currently consulted or informed. Then, examine the whole map and identify any other stakeholders that ought to be consulted or informed.
    3. Compile a list of stakeholders from steps 1-2, and write each of their names in two sticky notes.
    4. Put both sets of sticky notes on a wall. Use the wisdom-of-the-crowd approach to arrange one set in a descending order of influence. Record their ranked influence from 1 (least) to 10 (most).
    5. Rearrange the other set in a descending order of interest in seeing the project intake process optimized. Record their ranked interest from 1 (least) to 10 (most).

    INPUT

    • Mapped-out project intake process (Activity 1.2.1)
    • Insight on organizational culture

    OUTPUT

    • List of stakeholders in project intake
    • Ranked list in their influence and interest

    Materials

    • Sticky notes
    • Walls

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • Other PPM stakeholders

    Prioritize your stakeholders for project intake, approval, and prioritization process

    There are three dimensions for stakeholder prioritization: influence, interest, and support.

    1. Map your stakeholders in a 2D stakeholder power map (top right) according to their relative influence and interest.
    2. Rate their level of support by asking the following question: how likely is it that your stakeholder would welcome an improved process for project intake?

    These parameters will inform how to prioritize your stakeholders according to the stakeholder priority heatmap (bottom right). This priority should inform how to focus your attention during the subsequent optimization efforts.

    A flowchart is shown to show the relationship between influence and interest.

    Level of Support
    Stakeholder Category Supporter Evangelist Neutral Blocker
    Engage Critical High High Critical
    High Medium Low Low Medium
    Low High Medium Medium High
    Passive Low Irrelevant Irrelevant Low

    Info-Tech Insight

    There may be too many stakeholders to be able to achieve complete satisfaction. Focus your attention on the stakeholders that matter the most.

    Most organizations have low to medium capabilities around intake, approval, and prioritization

    1.2.4 Estimated Time: 15 minutes

    Use Info-Tech’s Intake Capability Framework to help define your current and target states for intake, approval, and prioritization.

    Capability Level Capability Level Description
    Capability Level 5: Optimized Our department has effective intake processes with right-sized administrative overhead. Work is continuously prioritized to keep up with emerging challenges and opportunities.
    Capability Level 4: Aligned Our department has very strong intake processes. Project approvals are based on business cases and aligned with future resource capacity.
    Capability Level 3: Engaged Our department has processes in place to track project requests and follow up on them. Priorities are periodically re-evaluated, based largely on the best judgment of one or several executives.
    Capability Level 2: Defined Our department has some processes in place but no capacity to say no to new projects. There is a formal backlog, but little or no method for grooming it.
    Capability Level 1: Unmanaged Our department has no formal intake processes in place. Most work is done reactively, with little ability to prioritize proactive project work.

    Refer to the subsequent slides for more detail on these capability levels.

    Level 1: Unmanaged

    Use these descriptions to place your organization at the appropriate level of intake capability.

    Intake Projects are requested through personal conversations and emails, with minimal documentation and oversight.
    Approval Projects are approved by default and rarely (if ever) declined. There is no definitive list of projects in the pipeline or backlog.
    Prioritization Most work is done reactively, with little ability to prioritize proactive project work.

    Symptoms

    • Poorly defined – or a complete absence of – PPM processes.
    • No formal approval committee.
    • No processes in place to balance proactive and reactive demands.

    Long Term

    PMOs at this level should work to have all requests funneled through a proper request form within six months. Decision rights for approval should be defined, and a scorecard should be in place within the year.

    Quick Win

    To get a handle on your backlog, start tracking all project requests using the “Project Data” tab in Info-Tech’s Project Intake and Prioritization Tool.

    Level 2: Defined

    Use these descriptions to place your organization at the appropriate level of intake capability.

    Intake Requests are formally documented in a request form before they’re assigned, elaborated, and executed as projects.
    Approval Projects are approved by default and rarely (if ever) declined. There is a formal backlog, but little or no method for grooming it.
    Prioritization There is a list of priorities but no process for updating it more than annually or quarterly.

    Symptoms

    • Organization does not have clear concept of project capacity.
    • There is a lack of discipline enforced on stakeholders.
    • Immature PPM processes in general.

    Long Term

    PMOs at this level should strive for greater visibility into the portfolio to help make the case for declining (or at least deferring) requests. Within the year, have a formal PPM strategy up and running.

    Quick Win

    Something PMOs at this level can accomplish quickly without any formal approval is to spend more time with stakeholders during the ideation phase to better define scope and requirements.

    Level 3: Engaged

    Use these descriptions to place your organization at the appropriate level of intake capability.

    Intake Processes and skills are in place to follow up on requests to clarify project scope before going forward with approval and prioritization.
    Approval Projects are occasionally declined based on exceptionally low feasibility or value.
    Prioritization Priorities are periodically re-evaluated based largely on the best judgment of one or several executives.

    Challenges

    • Senior executives’ “best judgement” is frequently fallible or influenced. Pet projects still enter the portfolio and deplete resources.
    • While approval processes “occasionally” filter out some low-value projects, many still get approved.

    Long Term

    PMOs at this level should advocate for a more formal cadence for prioritization and, within the year, establish a formal steering committee that will be responsible for prioritizing and re-prioritizing quarterly or monthly.

    Quick Win

    At the PMO level, employ Info-Tech’s Project Intake and Prioritization Tool to start re-evaluating projects in the backlog. Make this data available to senior executives when prioritization occurs.

    Level 4: Aligned

    Use these descriptions to place your organization at the appropriate level of intake capability.

    Intake Occurs through a centralized process. Processes and skills are in place for follow-up.
    Approval Project approvals are based on business cases and aligned with future resource capacity.
    Prioritization Project prioritization is visibly aligned with business goals.

    Challenges

    • The process of developing business cases can be too cumbersome, distracting resources from actual project work.
    • “Future” resource capacity predictions are unreliable. Reactive support work and other factors frequently change actual resource availability.

    Long Term

    PMOs at this level can strive for more accurate and frequent resource forecasting, establishing a more accurate picture of project vs. non-project work within the year.

    Quick Win

    PMOs at this level can start using Info-Tech’s Business Case Template (Comprehensive or Fast Track) to help simplify the business case process.

    Level 5: Optimizing

    Use these descriptions to place your organization at the appropriate level of intake capability.

    Intake Occurs through a centralized portal. Processes and skills are in place for thorough follow-up.
    Approval Project approvals are based on business cases and aligned with future resource capacity.
    Prioritization Work is continuously prioritized to keep up with emerging challenges and opportunities.

    Challenges

    • Establishing a reliable forecast for resource capacity remains a concern at this level as well.
    • Organizations at this level may experience an increasing clash between Agile practices and traditional Waterfall methodologies.

    A screenshot of Info-Tech's Manage an Agile Portfolio Blueprint

    PMOs at this level should look at Info-Tech’s Manage an Agile Portfolio for comprehensive tools and guidance on maintaining greater visibility at the portfolio level into work in progress and committed work.

    Establish your current and target states for process intake, approval, and prioritization

    1.2.5 Estimated Time: 20 minutes

    • Having reviewed the intake capability framework, you should be able to quickly identify where you currently reside in the model. Document this in the “Current State” box below.
    • Next, spend some time as a group discussing your target state. Make sure to set a realistic target as well as a realistic timeframe for meeting this target. Level 1s will not be able to become Level 5s overnight and certainly not without passing through the other levels on the way.
      • A realistic goal for a Level 1 to become a Level 2 is within six to eight months.
    Current State:
    Target State:
    Timeline for meeting target

    INPUT

    • Intake, approval, and prioritization capability framework (Activity 1.2.4)

    OUTPUT

    • Current and target state, with stated time goals

    Materials

    • Whiteboard

    Participants

    • CIO
    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Align your intake success with the strategic expectations of overall project portfolio management

    A successful project intake, approval, and prioritization process puts your leadership in a position to best steer the portfolio, like a conductor of an orchestra.

    To frame the discussion on deciding what intake success will look like, review Info-Tech’s PPM strategic expectations:

    • Project Throughput: Maximize throughput of the best projects.
    • Portfolio Visibility: Ensure visibility of current and pending projects.
    • Portfolio Responsiveness: Make the portfolio responsive to executive steering when new projects and changing priorities need rapid action.
    • Resource Utilization: Minimize resource waste and optimize the alignment of skills to assignments.
    • Benefits Realization: Clarify accountability for post-project benefits attainment for each project, and facilitate the process of tracking/reporting those benefits.
    A screenshot of Info-Tech's Develop a Project Portfolio Management Strategy blueprint.

    For a more detailed discussion and insight on PPM strategic expectations see Info-Tech’s blueprint, Develop a Project Portfolio Management Strategy.

    Decide what successful project intake, approval, prioritization process will look like

    1.2.6 Estimated Time: 60 minutes

    While assessing your current state, it is important to discuss and determine as a team how success will be defined.

    • During this process, it is important to consider tentative timelines for success milestones and to ask the question: what will success look like and when should it occur by?
    • Use the below table to help document success factors and timeliness. Follow the lead of our example in row 1.
    Optimization Benefit Objective Timeline Success Factor
    Facilitate project intake, prioritization, and communication with stakeholders to maximize time spent on the most valuable or critical projects. Look at pipeline as part of project intake approach and adjust priorities as required. July 1st Consistently updated portfolio data. Dashboards to show back capacity to customers. SharePoint development resources.

    Review and customize section 1.5, “Process Success Criteria” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    Info-Tech Insight

    Establish realistic short-term goals. Even with optimized intake procedures, you may not be able to eliminate underground project economies immediately. Make your initial goals realistic, leaving room for those walk-up requests that may still appear via informal channels.

    Prepare to optimize project intake and capture the results in the Intake, Approval, and Prioritization SOP

    Standard Operating Procedure (SOP) is the reference document to get all PPM stakeholders on the same page with the new optimized process.

    The current state explored and documented in this step will serve as a starting point for each step of the next phase of the blueprint. The next phase will take a deeper dive into each of the three components of Info-Tech’s project intake methodology, so that they can achieve the success criteria you’ve defined in the previous activity.

    Info-Tech’s Project Intake, Approval, and Prioritization SOP Template is intended to capture the outcome of your process optimization efforts. This blueprint guides you through numerous activities designed for your core project portfolio management team to customize each section.

    To maximize the chances of success, it is important that the team makes a concerted effort to participate. Schedule a series of working sessions over the course of several weeks for your team to work through it – or get through it in one week, with onsite Info-Tech analyst-facilitated workshops.

    Download Info-Tech’s Project Intake, Approval, and Prioritization SOP.

    A screenshot of Info-Tech's Project Intake, Approval, and Prioritization SOP.

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Case study: PMO develops mature intake and prioritization processes by slowly evolving its capability level

    CASE STUDY

    Industry: Not-for-Profit

    Source: Info-Tech Interview

    Challenge

    • A PMO for a large not-for-profit benefits provider had relatively high project management maturity, but the enterprise had low PPM maturity.
    • There were strong intake processes in place for following up on requests. For small projects, project managers would assist as liaisons to help control scope. For corporate initiates, PMs were assigned to work with a sponsor to define scope and write a charter.

    Solution

    Prioritization was a challenge. Initially, the organization had ad hoc prioritization practices, but they had developed a scoring criteria to give more formality and direction to the portfolio. However, the activity of formally prioritizing proved to be too time consuming.

    Off-the-grid projects were a common problem, with initiatives consuming resources with no portfolio oversight.

    Results

    After trying “heavy” prioritization, the PMO loosened up the process. PMO staff now go through and quickly rank projects, with two senior managers making the final decisions. They re-prioritize quarterly to have discussions around resource availability and to make sure stakeholders are in tune to what IT is doing on a daily basis. IT has a monthly meeting to go over projects consuming resources and to catch anything that has fallen between the cracks.

    "Everything isn't a number one, which is what we were dealing with initially. We went through a formal prioritization period, where we painstakingly scored everything. Now we have evolved: a couple of senior managers have stepped up to make decisions, which was a natural evolution from us being able to assign a formal ranking. Now we are able to prioritize more easily and effectively without having to painstakingly score everything."

    – PMO Director, Benefits Provider

    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:

    A photo of an Info-Tech analyst is shown.
    • 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:

    1.1.1-2

    A screenshot of activities 1.1.1 and 1.1.2 are shown.

    Pilot Info-Tech’s Project Value Scorecard-driven prioritization method

    Use Info-Tech’s example to prioritize your current project backlog to pilot a project value-driven prioritization, which will be used to guide the entire optimization process.

    1.2.1-3

    A screenshot of activities 1.2.1 and 1.2.3 are shown.

    Map out and document current project intake, approval, and prioritization process, and the involved key stakeholders

    A table-top planning exercise helps you visualize the current process in place and identify opportunities for optimization.

    Phase 2

    Build an Optimized Project Intake, Approval, and Prioritization Process

    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: Build an Optimized Project Intake, Approval, and Prioritization Process Proposed Time to Completion: 3-6 weeks

    Step 2.1: Streamline Intake

    Start with an analyst kick-off call:

    • Challenges of project intake
    • Opportunities for improving the management of stakeholder expectations by optimizing intake

    Then complete these activities…

    • Perform a process retrospective
    • Optimize your process to receive, triage, and follow up on project requests

    With these tools & templates:

    • Project Request Form.
    • Project Intake Classification Matrix

    Step 2.2: Right-Size Approval

    Start with an analyst call:

    • Challenges of project approval
    • Opportunities for improving strategic alignment of the project portfolio by optimizing project approval

    Then complete these activities…

    • Perform a process retrospective
    • Clarify accountability at each step
    • Decide on deliverables to support decision makers at each step

    With these tools & templates:

    • Benefits Commitment Form
    • Technology Assessment Tool
    • Business Case Templates

    Step 3.3: Prioritize Realistically

    Start with an analyst call:

    • Challenges in project prioritization
  • Opportunities for installing a resource capacity-constrained intake by optimizing prioritization
  • Then complete these activities…

    • Perform a process retrospective
    • Pilot the Intake and Prioritization Tool for prioritization within estimated resource capacity

    With these tools & templates:

    • Project Intake and Prioritization Tool

    Phase 2 Results & Insights:

    • Info-Tech’s methodology systemically fits the project portfolio into its triple constraint of stakeholder needs, strategic objectives, and resource capacity, to effectively address the challenges of establishing organizational discipline for project intake.

    Step 2.1: Streamline intake to manage stakeholder expectations

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Perform a deeper retrospective on current project intake process
    • Optimize your process to receive project requests
    • Revisit the definition of a project for triaging requests
    • Optimize your process to triage project requests
    • Optimize your process to follow up on project requests

    This step involves the following participants:

    • PMO Director / Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Administrative Staff

    Outcomes of this Step

    • Retrospective of the current project intake process: to continue doing, to start doing, and to stop doing
    • A streamlined, single-funnel intake channel with the right procedural friction to receive project requests
    • A refined definition of what constitutes a project, and project levels that will determine the necessary standard of rigor with which project requests should be scoped and developed into a proposal throughout the process
    • An optimized process for triaging and following up on project requests to prepare them for the steps of project approval
    • Documentation of the optimized process in the SOP document

    Understand the risks of poor intake practices

    Too much red tape could result in your portfolio falling victim to underground economies. Too little intake formality could lead to the Wild West.

    Off-the-grid projects, i.e. projects that circumvent formal intake processes, lead to underground economies that can deplete resource capacity and hijack your portfolio.

    These underground economies are typically the result of too much intake red tape. When the request process is made too complex or cumbersome, project sponsors may unsurprisingly seek alternative means to get their projects done.

    While the most obvious line of defence against the appearance of underground economies is an easy-to-use and access request form, one must be cautious. Too little intake formality could lead to a Wild West of project intake where everyone gets their initiatives approved regardless of their business merit and feasibility.

    Benefits of optimized intake Risks of poor intake
    Alignment of portfolio with business goals Portfolio overrun by off-the-grid projects
    Resources assigned to high-value projects Resources assigned to low-value projects
    Better throughput of projects in the portfolio Ever-growing project backlog
    Strong stakeholder relations Stakeholders lose faith in value of PMO

    Info-Tech Insight

    Intake is intimately bound to stakeholder management. Finding the right balance of friction for your team is the key to successfully walking the line between asking for too much and not asking for enough. If your intake process is strong, stakeholders will no longer have any reason to circumvent formal process.

    An excess number of intake channels is the telltale sign of a low capability level for intake

    Excess intake channels are also a symptom of a portfolio in turmoil.

    If you relate to the graphic below in any way, your first priority needs to be limiting the means by which projects get requested. A single, centralized channel with review and approval done in batches is the goal. Otherwise, with IT’s limited capacity, most requests will simply get added to the backlog.

    A graphic is shown to demonstrate how one may receive project requests. The following icons are in a circle: Phone, Intranet Request Form, In person, anywhere, anytime, SharePoint Request Form, Weekly Scrum, Document, and Email.

    Info-Tech Insight

    The PMO needs to have the authority – and needs to exercise the authority – to enforce discipline on stakeholders. Organizations that solicit in verbal requests (by phone, in person, or during scrum) lack the orderliness required for PPM success. In these cases, it needs to be the mission of the PMO to demand proper documentation and accountability from stakeholders before proceeding with requests.

    "The golden rule for the project documentation is that if anything during the project life cycle is not documented, it is the same as if it does not exist or never happened…since management or clients will never remember their undocumented requests or their consent to do something."

    – Dan Epstein, “Project Initiation Process: Part Two”

    Develop an intake workflow

    Info-Tech recommends following a four-step process for managing intake.

    1. Requestor fills out form and submits the request.

    Project Request Form Templates

    2. Requests are triaged into the proper queue.

    1. Divert non-project request
    2. Quickly assess value and urgency
    3. Assign specialist to follow up on request
    4. Inform the requestor

    Project Intake Classification Matrix

    3. BA or PM prepares to develop requests into a project proposal.

    1. Follow up with requestor and SMEs to refine project scope, benefits, and risks
    2. Estimate size of project and determine the required level of detail for proposal
    3. Prepare for concept approval

    Benefits Commitment Form Template

    4. Requestor is given realistic expectations for approval process.

    Perform a start-stop-continue exercise to help determine what is working and what is not working

    2.1.1 Estimated Time: 45 minutes

    Optimizing project intake may not require a complete overhaul of your existing processes. You may only need to tweak certain templates or policies. Perhaps you started out with a strong process and simply lost resolve over time – in which case you will need to focus on establishing motivation and discipline, rather than rework your entire process.

    Perform a start-stop-continue exercise with your team to help determine what should be salvaged, what should be abandoned, and what should be introduced:

    1. On a whiteboard or equivalent, write “Start,” “Stop,” and “Continue” in three separate columns. 3. As a group, discuss the responses and come to an agreement as to which are most valid.
    2. Equip your team with sticky notes or markers and have them populate the columns with ideas and suggestions surrounding your current processes. 4. Document the responses to help structure your game plan for intake optimization.
    Start Stop Continue
    • Explicitly manage follow-up expectations with project requestor
    • Receiving informal project requests
    • Take too long in proposal development
    • Quarterly approval meetings
    • Approve resources for proposal development

    INPUT

    • Current project intake workflow (Activity 1.2.2)
    • Project intake success criteria (Activity 1.2.6)

    OUTPUT

    • Retrospective review of current intake process

    Materials

    • Whiteboard
    • Sticky notes/markers

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Streamline project requests into a single funnel

    It is important to identify all of the ways through which projects currently get requested and initiated, especially if you have various streams of intake competing with each other for resources and a place in the portfolio. Directing multiple channels into a single, centralized funnel is step number one in optimizing intake.

    To help you identify project sources within your organization, we’ve broken project requests into three archetypes: the good, the bad, and the ugly.

    1. The Good – Proper Requests: written formal requests that come in through one appropriate channel.

    The Bad – Walk-Ups: requests that do not follow the appropriate intake channel(s), but nevertheless make an effort to get into the proper queue. The most common instance of this is a portfolio manager or CIO filling out the proper project request form on behalf of, and under direction from, a senior executive.

    The Ugly – Guerilla Tactics: initiatives that make their way into the portfolio through informal methods or that consume portfolio resources without formal approval, authority, or oversight. This typically involves a key resource getting ambushed to work on a stakeholder’s “side project” without any formal approval from, or knowledge of, the PMO.

    Funnel requests through a single portal to streamline intake

    Decide how you would funnel project requests on a single portal for submitting project requests. Determining the right portal for your organization will depend on your current infrastructure options, as well as your current and target state capability levels.

    Below are examples of a platform for your project request portal.

    Platform Template document, saved in a repository or shared drive Email-based form (Outlook forms) Intranet form (SharePoint, internal CMS) Dedicated intake solution (PPM tool, idea/innovation tool)
    Pros Can be deployed very easily Consolidates requests into a single receiver Users have one place to go from any device All-in-one solution that includes scoring and prioritization
    Cons Manual submission and intake process consumes extra effort Can pose problems in managing requests across multiple people and platforms Requires existing intranet infrastructure and some development effort Solution is costly; requires adoption across all lines of business

    Increasing intake capability and infrastructure availability

    Introduce the right amount of friction into your intake process

    The key to an effective intake process is determining the right amount of friction to include for your organization. In this context, friction comes from the level of granularity within your project request form and the demands or level of accountability your intake processes place on requestors. You will want to have more or less friction on your intake form, depending on your current intake pain points.

    If you are inundated with a high volume of requests:

    • Make your intake form more detailed to deter “half-baked” requests.
    • Have more managerial oversight into the process. Require approval for each request.

    If you want to encourage the use of a formal channel:

    • Make your intake form more concise and lightweight.
    • Have less managerial oversight into the process. Inform managers of each request rather than requiring approval.

    Download Info-Tech’s Detailed Project Request Form.

    Download Info-Tech’s Light Project Request Form.

    A screenshot of Info-Tech's Project Request Form is shown.

    Info-Tech Insight

    Optimizing a process should not automatically mean reducing friction. Blindly reducing friction could generate a tidal wave of poorly thought-out requests, which only drives up unrealistic expectations. Mitigate the risk of unrealistic stakeholder expectations by carefully managing the message: optimize friction.

    Document your process to receive project requests

    2.1.2 Estimated Time: 30-60 minutes

    Review and customize section 2.2, “Receive project requests” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of optimizing this process is to consolidate multiple intake channels into a single funnel with the right amount of friction to improve visibility and manageability of incoming project requests.

    The important decisions to document for this step include:

    1. What data will be collected, and from whom? For example, Info-Tech’s Light Project Request Form Template will be used to collect project requests from everyone.
    2. How will requests be collected, and from where? For example, the template will be available as a fillable form on a SharePoint site.
    3. Who will be informed of the requests? For example, the PMO Director and the BA team will be notified with a hyperlink to the completed request form.
    4. Who will handle exceptions? For example, PMO will maintain this process and will handle any questions or issues that pertain to this part of the process.

    INPUT

    • Retrospective of current process (Activity 2.1.1)

    OUTPUT

    • Customized Project Request Form
    • Method of implementation

    Materials

    • Project Request Form Templates

    Participants

    • PMO Director/ Portfolio Manager
    • Business Analysts

    Info-Tech Best Practice

    Whatever method of request collection you choose, ensure there is no doubt about how requesters can access the intake form.

    Establish a triage process to improve portfolio success

    Once a request has been submitted, it will need to be triaged. Triage begins as soon as the request is received. The end goal of the triage process is to set appropriate expectations for stakeholders and to ensure that all requests going forward for approval are valid requests.

    PPM Triage Process

    1. Divert non-project requests by validating that what is described on the request form qualifies as a “project.” Make sure requests are in the appropriate queue – for example, service desk request queue, change and release management queue, etc.
    2. Quickly assess value and urgency to determine whether the request requires fast-tracking or any other special consideration.
    3. Assign a specialist to follow up on the request. Match the request to the most suitable BA, PM, or equivalent. This person will become the Request Liaison (“RL”) for the request and will work with the requestor to define preliminary requirements.
    4. Inform the requestor that the request has been received and provide clear direction on what will happen with the request next, such as who will follow up on it and when. See the next slide for some examples of this follow-up.

    The PMO Triage Team

    • Portfolio Manager, or equivalent
    • Request Liaisons (business analysts, project managers, or equivalent)

    “Request Liaison” Role

    The BAs and PMs who follow up on requests play an especially important role in the triage process. They serve as the main point of contact to the requestor as the request evolves into a business case. In this capacity they perform a valuable stakeholder management function, helping to increase confidence and enhance trust in IT.

    To properly triage project requests, define exactly what a project is

    Bring color to the grey area that can exist in IT between those initiatives that fall somewhere in between “clearly a service ticket” and “clearly a project.”

    What constitutes a project?

    Another way of asking this question that gets more to the point for this blueprint – for what types of initiatives is project intake, approval, and prioritization rigor required?

    This is especially true in IT where, for some smaller initiatives, there can be uncertainty in many organizations during the intake and initiation phase about what should be included on the formal project list and what should go to help desk’s queue.

    As the definitions in the table below show, formal project management frameworks each have similar definitions of “a project.”

    Source Definition
    PMI A temporary endeavor undertaken to create a unique product, service, or result.” (553)
    COBIT A structured set of activities concerned with delivering a defined capability (that is necessary but not sufficient to achieve a required business outcome) to the enterprise based on an agreed‐on schedule and budget.” (74)
    PRINCE2 A temporary organization that is created for the purpose of delivering one or more business products according to an agreed business case.

    For each, a project is a temporary endeavor planned around producing a specific organizational/business outcome. The challenge of those small initiatives in IT is knowing when those endeavors require a business case, formal resource tracking, and project management rigor, and when they don’t.

    Separating small projects from non-projects requires a consideration of approval rights

    While conventional wisdom says to base your project definition on an estimation of cost, risk, etc., you also need to ask, “does this initiative require formal approval?”

    In the next step, we will define a suggested minimum threshold for a small “level 1” project. While these level thresholds are good and necessary for a number of reasons – including triaging your project requests – you may still often need to exercise some critical judgment in separating the tickets from the projects. In addition to the level criteria that we will develop in this step, use the checklist below to help with your differentiating.

    Service Desk Ticket Small Project
    • Approval seems implicit given the scope of the task.
    • No expectations of needing to report on status.
    • No indications that management will require visibility during execution.
    • The scope of the task suggests formal approval may be required.
    • You may have to report on status.
    • Possibility that management may require visibility during execution.

    Info-Tech Insight

    Guard the value of the portfolio. Because tickets carry with them an implicit approval, you need to be wary at the portfolio level of those that might possess a larger scope than their status of ticket implies. Sponsors that, for whatever reason, resist the formal intake process may use the ticketing process to sneak projects in through the backdoor. When assessing tickets and small projects at the portfolio level, you need to ask: is it possible that someone at an executive level might want to get updates on this because of its duration, scope, risk, cost, etc.? Could someone at the management level get upset that the initiative came in as a ticket and is burning up time and driving costs without any visibility?

    Sample Project/Non-Project Separation Criteria

    Non-Project Small Project
    e.g. Time required e.g. < 40 hours e.g. 40 > hours
    e.g. Complexity e.g. Very low e.g. Moderate – Low Difficulty: Does not require highly developed or specialized skill sets
    e.g. Collaboration e.g. None required e.g. Limited coordination and collaboration between resources and departments
    e.g. Repeatability of work e.g. Fully repeatable e.g. Less predictable
    e.g. Frequency of request type e.g. Hourly to daily e.g. Weekly to monthly

    "If you worked for the help desk, over time you would begin to master your job since there is a certain rhythm and pattern to the work…On the other hand, projects are unique. This characteristic makes them hard to estimate and hard to manage. Even if the project is similar to one you have done before, new events and circumstances will occur. Each project typically holds its own challenges and opportunities"

    – Jeffrey and Thomas Mochal

    Define the minimum-threshold criteria for small projects

    2.1.3 Estimated Time: 30 minutes

    Follow the steps below to define the specifics of a “level 1” project for your organization.

    1. Using your project list and/or ticketing system, identify a handful of small projects, large service desk tickets, and especially those items that fall somewhere in the grey area in between (anywhere between 10 to 20 of each). Then, determine the organizationally appropriate considerations for defining your project levels. Options include:
    • Duration
    • Budget/Cost
    • Technology requirements
    • Customer involvement
    • Integration
    • Organizational impact
    • Complexity
    • Number of cross-functional workgroups and teams involved
  • Using the list of projects established in the previous step, determine the organizationally appropriate considerations for defining your project levels –anywhere from four to six considerations is a good number.
  • Using these criteria and your list of small projects, define the minimum threshold for your level one projects across each of these categories. Record these thresholds in the table on the next slide.
  • INPUT

    • Data concerning small projects and service desk tickets, including size, duration, etc.

    OUTPUT

    • Clarity around how to define your level 1 projects

    Materials

    • Whiteboard

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Remove room for stakeholder doubt and confusion by informing requests forward in a timely manner

    During triaging, requestors should be notified as quickly as possible (a) that their request has been received and (b) what to expect next for the request. Make this forum as productive and informative as possible, providing clear direction and structure for the future of the request. Be sure to include the following:

    • A request ID or ticket number.
    • Some direction on who will be following up on the request –provide an individual’s name when possible.
    • An estimated timeframe of when they can expect to hear from the individual following up.

    The logistic of this follow-up will depend on a number of different factors.

    • The number of requests you receive.
    • Your ability to automate the responses.
    • The amount of detail you would like to, or need to, provide stakeholders with.

    Info-Tech Best Practice

    Assign an official request number or project ID to all requests during this initial response. An official request number anchors the request to a specific and traceable dataset that will accompany the project throughout its lifecycle.

    Sample “request received” emails

    If you receive a high volume of requests or need a quick win for improving stakeholder relations:

    Sample #1: Less detailed, automatic response

    Hello Emma,

    Thank you. Your project request has been received. Requests are reviewed and assigned every Monday. A business analyst will follow up with you in the next 5-10 business days. Should you have any questions in the meantime, please reply to this email.

    Best regards,

    Information Technology Services

    If stakeholder management is a priority, and you want to emphasize the customer-facing focus:

    Sample #2: More detailed, tailored response

    Hi Darren,

    Your project request has been received and reviewed. Your project ID number is #556. Business analyst Alpertti Attar has been assigned to follow up on your request. You can expect to hear from him in the next 5-10 business days to set up a meeting for preliminary requirements gathering.

    If you have any questions in the meantime, please contact Alpertti at aattar@projectco.com. Please include the Project ID provided in this email in all future correspondences regarding this request.

    Thank you for your request. We look forward to helping you bring this initiative to fruition.

    Sincerely,

    Jim Fraser

    PMO Director, Information Technology Services

    Info-Tech Insight

    A simple request response will go a long way in terms of stakeholder management. It will not only help assure stakeholders that their requests are in progress but the request confirmation will also help to set expectations and take some of the mystery out of IT’s processes.

    Document your process to triage project requests

    2.1.4 Estimated Time: 30-60 minutes

    Review and customize section 2.3, “Triage project requests” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of optimizing this process is to divert non-project requests and set an appropriate initial set of stakeholder expectations for next steps. The important decisions to document for this step include:

    1. What defines a project? Record the outcomes of Activities 2.1.3 into the SOP.
    2. Who triages the requests and assign request liaisons? Who are they? For example, a lead BA can assign a set roster of BAs to project requests.
    3. What are the steps to follow for sending the initial response? See the previous slides on automated responses vs. detailed, tailored responses.
    4. How will you account for the consumption of resource capacity? For example, impose a maximum of four hours per week per analyst, and track the hours worked for each request to establish a pattern for capacity consumption.
    5. Who will handle exceptions? For example, PMO will maintain this process and will handle any questions or issues that pertain to this part of the process.

    INPUT

    • Results of activity 2.1.3

    OUTPUT

    • SOP for triaging project requests

    Materials

    • SOP Template

    Participants

    • PMO Director/ Portfolio Manager
    • Business Analysts

    Info-Tech Best Practice

    Whatever method of request collection you choose, ensure there is no doubt about how requesters can access the intake form.

    Follow up on requests to define project scope and set realistic expectations

    The purpose of this follow-up is to foster communication among the requestor, IT, and the sponsor to scope the project at a high level. The follow-up should:

    • Clarify the goals and value of the request.
    • Begin to manage expectations based on initial assessment of feasibility.
    • Ensure the right information is available for evaluating project proposals downstream. Every project should have the below key pieces of scope defined before any further commitments are made.

    Focus on Defining Key Pieces of Scope

    • Budget (funding, source)
    • Business outcome
    • Completion criteria
    • Timeframes (start date and duration)
    • Milestones/deliverables

    Structure the Follow-Up Process to Enhance Alignment Between IT and the Business

    Once a Request Liaison (RL) has been assigned to a request, it is their responsibility to schedule time (if necessary) with the requestor to perform a scoping exercise that will help define preliminary requirements. Ideally, this follow-up should occur no later than a week of the initial request.

    Structure the follow-up for each request based on your preliminary estimates of project size (next slide). Use the “Key Pieces of Scope” to the left as a guide.

    It may also be helpful for RLs and stakeholders to work together to produce a rough diagram or mock-up of the final deliverable. This will ensure that the stakeholder’s idea has been properly communicated, and it could also help refine or broaden this idea based on IT’s capabilities.

    After the scoping exercise, it is the RL’s responsibility to inform the requestor of next steps.

    Info-Tech Insight

    More time spent with stakeholders defining high-level requirements during the ideation phase is key to project success. It will not only improve the throughput of projects, but it will enhance the transparency of IT’s capacity and enable IT to more effectively support business processes.

    Perform a preliminary estimation of project size

    Project estimation is a common pain point felt by many organizations. At this stage, a range-of-magnitude (ROM) estimate is sufficient for the purposes of sizing the effort required for developing project proposals with appropriate detail.

    A way to structure ROM estimates is to define a set of standard project levels. It will help you estimate 80% of projects with sufficient accuracy over time with little effort. The remaining 20% of projects that don’t meet their standard target dates can be managed as exceptions.

    The increased consistency of most projects will enable you to focus more on managing the exceptions.

    Example of standard project sizes:

    Level Primary unit of estimation Target completion date*
    1 Weeks 3 weeks – 3 months
    2 Months 3 months – 6 months
    3 Quarters 2 – 4 quarters
    3+ Years 1 year or more

    * Target completion date is simply that – a target, not a service level agreement (SLA). Some exceptions will far exceed the target date, e.g. projects that depend heavily on external or uncontrollable factors.

    Info-Tech Best Practice

    Project levelling is useful for right-sizing many downstream processes; it sets appropriate levels of detail and scrutiny expected for project approval and prioritization steps, as well as the appropriate extent of requirements gathering, project management, and reporting requirements afterwards.

    Set your thresholds for level 2 and level 3 projects

    2.1.5 Estimated Time: 30 minutes

    Now that the minimum threshold for your smallest projects has been identified, it’s time to identify the maximum threshold in order to better apply project intake, approval, and prioritization rigor where it’s needed.

    1. Looking at your project list (e.g. Activity 1.1.1, or your current project backlog), isolate the medium and large projects. Examine the two categories in turn.
    2. Start with the medium projects. Using the criteria identified in Activity 2.1.3, identify where your level one category ends.
    • What are the commonly recurring thresholds that distinguish medium-sized projects from smaller initiatives?
    • Are there any criteria that would need to take on a greater importance when making the distinction? For instance, will cost or duration take on a greater weighting when determining level thresholds?
    • Once you have reached consensus, record these in the table on the next slide.
  • Now examine your largest projects. Once again relying on the criteria from Activity 2.1.3, determine where your medium-sized projects end and your large projects begin.
    • What are the commonly recurring thresholds that distinguish large and extra-large projects from medium-sized initiatives?
    • Once you have reached consensus, records these in the table on the next slide.

    INPUT

    • Leveling criteria from Activity 2.1.3
    • Project backlog, or list of projects from Activity 1.1.1

    OUTPUT

    • Clarity around how to define your level two and three projects

    Materials

    • Whiteboard
    • The project level table on the next slide

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Sample Project Levels Table

    Project Level Level 1 Level 2 Level 3
    Work Effort 40-100 hours 100-500 hours 500+ hours
    Budget $100,000 and under $100,000 to $500,000 $500,000 and over
    Technology In-house expertise Familiar New or requires system-wide change/training
    Complexity Well-defined solution; no problems expected Solution is known; some problems expected Solution is unknown or not clearly defined
    Cross-Functional Workgroups/Teams 1-2 3-5 > 6

    Apply a computation decision-making method for project levelling

    2.1.5 Project Intake Classification Matrix

    Capture the project levels in Info-Tech’s Project Intake Classification Matrix Tool to benchmark your levelling criteria and to determine project levels for proposed projects.

    Download Info-Tech’s Project Intake Classification Matrix tool.

    A screenshot of Info-Tech's Project Intake Classification Matrix Tool, tab 2 is shown.
    1. Pick a category to define project levels.
    2. Enter the descriptions for each project level.
    3. Assign a relative weight for each category.
    4. A screenshot of Info-Tech's Project Intake Classification Matrix Tool, tab 3 is shown.
    5. Enter a project name.
    6. Choose the description that best fits the project. If unknown, leave it blank.
    7. Suggested project levels are displayed.

    Get tentative buy-in and support from an executive sponsor for project requests

    In most organizations a project requires sponsorship from the executive layer, especially for strategic initiatives. The executive sponsor provides several vital factors for projects:

    • Funding and resources
    • Direct support and oversight of the project leadership
    • Accountability, acting as the ultimate decision maker for the project
    • Ownership of, and commitment to, project benefits

    Sometimes a project request may be made directly by a sponsor; in other times, the Request Liaison may need to connect the project request to a project sponsor.

    In either case, project request has a tentative buy-in and support of an executive sponsor before a project request is developed into a proposal and examined for approval – the subject of this blueprint’s next step.

    PMs and Sponsors: The Disconnect

    A study in project sponsorship revealed a large gap between the perception of the project managers and the perception of sponsors relative to the sponsor capability. The widest gaps appear in the areas of:

    • Motivation: 34% of PMs say sponsors frequently motivate the team, compared to 82% of executive sponsors who say they do so.
    • Active listening: 42% of PMs say that sponsors frequently listen actively, compared to 88% of executive sponsors who say they do so.
    • Effective communication: 47% of PMs say sponsors communicate effectively and frequently, compared to 92% of executive sponsors who say they do so.
    • Managing change: 37% of PMs say sponsors manage change, compared to 82% of executive sponsors who say they do so.

    Source: Boston Consulting Group/PMI, 2014

    Actively engaged executive sponsors continue to be the top driver of whether projects meet their original goals and business intent.

    – PMI Pulse of the Profession, 2017

    76% of respondents [organizations] agree that the role of the executive sponsor has grown in importance over the past five years.

    – Boston Consulting Group/PMI, 2014

    Document your process to follow up on project requests

    2.1.6 45 minutes

    Review and customize section 2.4, “Follow up on project requests” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of optimizing this process is to initiate communication among the requestor, IT, and the sponsor to scope the project requests at a high level. The important decisions to document for this step include:

    1. How will you perform a scoping exercise with the requestor? Leverage existing organizational processes (e.g. high-level requirements gathering). Look to the previous slides for suggested outcomes of the exercise.
    2. How will you determine project levels? Record the outcomes of activities 2.1.5 into the SOP.
    3. How will the RL follow up on the scoped project request with a project sponsor? For example, project requests scoped at a high level will be presented to senior leadership whose lines of business are affected by the proposed project to gauge their initial interest.
    4. How will you account for the consumption of resource capacity? For example, impose a maximum of 8 hours per week per analyst, and track the hours worked for each request to establish a pattern for capacity consumption.
    5. Who will handle exceptions? For example, PMO will maintain this process and will handle any questions or issues that pertain to this part of the process.

    INPUT

    • Activity 2.1.5
    • Existing processes for scoping exercises

    OUTPUT

    • SOP for following up on project requests

    Materials

    • SOP Template

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Examine the new project intake workflow as a whole and document it in a flow chart

    2.1.7 Estimated Time: 30-60 minutes

    Review and customize section 2.1, “Project Intake Workflow” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    In Step 1.2 of the blueprint, you mapped out the current project intake, approval, and prioritization workflow and documented it in a flow chart. In this step, take the time to examine the new project intake process as a whole, and document the new workflow in the form of a flow chart.

    1. Requestor fills out form and submits the request.
    2. Requests are triaged into the proper queue.
    3. BA or PM prepares to develop requests into a project proposal.
    4. Requestor is given realistic expectations for approval process.

    Consider the following points:

    1. Are the inputs and outputs of each step clear? Who’s doing the work? How long will each step take, on average?
    2. Is the ownership of each step clear? How will we ensure a smooth handoff between each step and prevent requests from falling through the cracks?

    INPUT

    • New process steps for project intake (Activities 2.1.2-6)

    OUTPUT

    • Flowchart representation of new project intake workflow

    Materials

    • Microsoft Visio, flowchart software, or Microsoft PowerPoint

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Case study: Portfolio manager achieves intake and project success through detailed request follow-up

    Case Study

    Industry: Municipal Government

    Source: Info-Tech Client

    Challenge

    • There is an IT department with a relatively high level of project management maturity.
    • They have approximately 30 projects on the go, ranging from small to large.
    • To help with intake, IT assembled a project initiation team. It was made up of managers from throughout the county. This group “owned the talent” and met once a month to assess requests. As a group, they were able to assemble project teams quickly.

    Solution

    • Project initiation processes kept failing. A lot of time was spent within IT getting estimations precise, only to have sponsors reject business cases because they did not align with what those sponsors had in mind.
    • Off-the-grid projects were a challenge. Directors did not follow intake process and IT talent was torn in multiple directions. There was nothing in place for protecting the talent and enforcing processes on stakeholders.

    Results

    • IT dedicated a group of PMs and BAs to follow up on requests.
    • Working with stakeholders, this group collects specific pieces of information that allows IT to get to work on requests faster. Through this process, requests reach the charter stage more quickly and with greater success.
    • An intake ticketing system was established to protect IT talent. Workers are now better equipped to redirect stakeholders through to the proper channels.

    Step 2.2: Set up steps of project approval to maximize strategic alignment while right-sizing the required effort

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Perform a deeper retrospective on current project approval process
    • Define the approval steps, their accountabilities, and the corresponding terminologies for approval
    • Right-size effort and documentation required for each project level through the approval steps

    This step involves the following participants:

    • PMO Director / Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Administrative Staff

    Outcomes of this step

    • Retrospective of the current project intake process: to continue doing, to start doing, and to stop doing
    • A series of approval steps are defined, in which their accountabilities, responsibilities, and the nomenclature for what is approved at each steps are clarified and documented
    • A toolbox of deliverables for proposed projects that captures key information developed to inform project approval decisions at each step of the approval process, and the organizational standard for what to use for which project level
    • Documentation of the optimized process in the SOP document

    Set up an incremental series of approval stage-gates to tackle common challenges in project approval

    This section will help you address key challenges IT leaders face around project approval.

    Challenges Info-Tech’s Advice
    Project sponsors receive funding from their business unit or other source (possibly external, such as a grant), and assume this means their project is “approved” without any regard to IT costs or resource constraints. Clearly define a series of approval steps, and communicate requirements for passing them.
    Business case documentation is rarely updated to reflect unforeseen costs, emerging opportunities, and changing priorities. As a result, time and money is spent finishing diminished priority projects while the value of more recent projects erodes in the backlog. Approve projects in smaller pieces, with early test/pilot phases focused on demonstrating the value of later phases.
    Project business cases often focus on implementation and overlook ongoing operating costs imposed on IT after the project is finished. These costs further diminish IT’s capacity for new projects, unless investment in more capacity (such as hiring) is included in business cases. Make ongoing support and maintenance costs a key element in business case templates and evaluations.
    Organizations approve new projects without regard to the availability of resource capacity (or lack thereof). Project lead times grow and stakeholders become more dissatisfied because IT is unable to show how the business is competing with itself for IT’s time. Increase visibility into what IT is already working on and committed to, and for whom.

    Develop a project approval workflow

    Clearly define a series of approval steps, and communicate requirements for passing them. “Approval” can be a dangerous word in project and portfolio management, so it is important to clarify what is required to pass each step, and how long the process will take.

    1 2 3 4
    Approval step Concept Approval Feasibility Approval Business Case Approval Resource Allocation (Prioritization)
    Alignment Focus Business need / Project sponsorship Technology Organization-wide business need Resource capacity
    Possible dispositions at each gate
    • Approve developing project proposal
    • Reject concept
    • Proceed to business case approval
    • Approve a test/pilot project for feasibility
    • Reject proposal
    • Approve project and funding in full
    • Approve a test/pilot project for viability
    • Reject proposal
    • Begin or continue project work
    • Hold project
    • Outsource project
    • Reject project
    Accountability e.g. Project Sponsor e.g. CIO e.g. Steering Committee e.g. CIO
    Deliverable Benefits Commitment Form Template Proposed Project Technology Assessment Tool Business Case (Fast Track, Comprehensive) Intake and Prioritization Tool

    Identify the decision-making paradigm at each step

    In general, there are three different, mutually exclusive decision-making paradigms for approving projects:

    Paradigm Description Benefits Challenges Recommendation
    Unilateral authority One individual makes decisions. Decisions tend to be made efficiently and unambiguously. Consistency of agenda is easier to preserve. Decisions are subject to one person’s biases and unseen areas. Decision maker should solicit and consider input from others and seek objective rigor.
    Ad hoc deliberation Stakeholders informally negotiate and communicate decisions between themselves. Deliberation helps ensure different perspectives are considered to counterbalance individual biases and unseen areas. Ad hoc decisions tend to lack documentation and objective rationale, which can perpetuate disagreement. Use where unilateral decisions are unfeasible (due to complexity, speed of change, culture, etc.), and stakeholders are very well aligned or highly skilled negotiators and communicators.
    Formal steering committee A select group that represent various parts of the organization is formally empowered to make decisions for the organization. Formal committees can ensure oversight into decisions, with levers available to help resolve uncertainty or disagreement. Formal committees introduce administrative overhead and effort that might not be warranted by the risks involved. Formal steering committees are best where formality is warranted by the risks and costs involved, and the organizational culture has an appetite for administrative oversight.

    Info-Tech Insight

    The individual or party who has the authority to make choices, and who is ultimately answerable for those decisions, is said to be accountable. Understanding the needs of the accountable party is critical to the success of the project approval process optimization efforts.

    Perform a start-stop-continue exercise to help determine what is working and what is not working

    2.2.1 Estimated Time: 45 minutes

    Optimizing project approval may not require a complete overhaul of your existing processes. You may only need to tweak certain templates or policies. Perhaps you started out with a strong process and simply lost resolve over time – in which case you will need to focus on establishing motivation and discipline, rather than rework your entire process.

    Perform a start-stop-continue exercise with your team to help determine what should be salvaged, what should be abandoned, and what should be introduced:

    1.On a whiteboard or equivalent, write “Start,” “Stop,” and “Continue” in three separate columns. 3.As a group, discuss the responses and come to an agreement as to which are most valid.
    2.Equip your team with sticky notes or markers and have them populate the columns with ideas and suggestions surrounding your current processes. 4.;Document the responses to help structure your game plan for intake optimization.
    StartStopContinue
    • Inject technical feasibility approval step as an input to final approval
    • Simplify business cases
    • Approve low-value projects
    • Take too long in proposal development
    • Quarterly approval meetings
    • Approve resources for proposal development

    INPUT

    • Current project approval workflow (Activity 1.2.2)
    • Project approval success criteria (Activity 1.2.6)

    OUTPUT

    • Retrospective review of current approval process

    Materials

    • Whiteboard
    • Sticky notes/markers

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Customize the approval steps and describe them at a high level

    2.2.2 Estimated Time: 30-60 minutes

    Review and customize section 3.2, “Project Approval Steps” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of this activity is to customize the definition of the approval steps for your organization, so that it makes sense for the existing organizational governance structure, culture, and need. Use the results of the start-stop-continue to inform what to customize. Consider the following factors:

    1. Order of steps: given the current decision-making paradigm, does it make sense to reorder the steps?
    2. Dispositions at each step: what are the possible dispositions, and who is accountable for making the dispositions?
    3. Project levels: do all projects require three-step approval before they’re up for prioritization? For example, IT steering committee may wish to be involved only for Level 3 projects and Level 2 projects with significant business impact, and not for Level 1 projects and IT-centric Level 2 projects.
    4. Accountability at each step: who makes the decisions?
    5. Who will handle exceptions? Aim to prevent the new process from being circumvented by vocal stakeholders, but also allow for very urgent requests. A quick win to strike this balance is to clarify who will exercise this discretion.

    INPUT

    • Retrospective of current process (Activity 2.2.1)
    • Project level definition
    • Approval steps in the previous slide

    OUTPUT

    • Customized project approval steps for each project level

    Materials

    • Whiteboard

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Specify what “approval” really means to manage expectations for what project work can be done and when

    2.2.3 Estimated Time: 15 minutes

    Review and customize section 3.2, “Project Approval Steps” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    In the old reality, projects were approved and never heard back from again, which effectively gave your stakeholders a blanket default expectation of “declined.” With the new approval process, manage your stakeholder expectations more explicitly by refining your vocabulary around approval.

    Within this, decision makers should view their role in approval as approving that which can and should be done. When a project is approved and slated to backlog, the intention should be to allocate resources to it within the current intake cycle.

    Customize the table to the right with organizationally appropriate definitions, and update your SOP.

    “No” Declined.
    “Not Now” “It’s a good idea, but the time isn’t right. Try resubmitting next intake cycle.”
    “Concept Approval” Approval to add the item to the backlog with the intention of starting it this intake cycle.
    “Preliminary Approval” Approval for consumption of PMO resources to develop a business case.
    “Full Approval” Project is greenlighted and project resources are being allocated to it.

    Info-Tech Insight

    Refine the nomenclature. Add context to “approved” and “declined.” Speak in terms of “not now” or “you can have it when these conditions are met.” With clear expectations of the resources required to support each request, you can place accountability for keeping the request alive back on the sponsors.

    Continuously work out a balance between disciplined decision making and “analysis paralysis"

    A graph is depicted to show the relationship between disciplined decision making and analysis paralysis. The sweet spot for disciplined decisions changes between situations and types of decisions.

    A double bar graph is depicted to show the relative effort spent on management practice. The first bar shows that 20% has a high success of portfolio management. 35% has a low success of portfolio management. A caption on the graph: Spending additional time assessing business cases doesn’t necessarily improve success.

    Info-Tech Insight

    Estimates that form the basis of business cases are often based on flawed assumptions. Use early project phases or sprints to build working prototypes to test the assumptions on which business cases are built, rather than investing time improving precision of estimates without improving accuracy.

    Right-size project approval process with Info-Tech’s toolbox of deliverables

    Don’t paint every project with the same brush. Choose the right set of information needed for each project level to maximize the throughput of project approval process.

    The next several slides will take you through a series of tools and templates that help guide the production of deliverables. Each deliverable wireframes the required analysis of the proposed project for one step of the approval process, and captures that information in a document. This breaks down the overall work for proposal development into digestible chunks.

    As previously discussed, aim to right-size the approval process rigor for project levels. Not all project levels may call for all steps of approval, or the extent of required analysis within an approval step may differ. This section will conclude by customizing the requirement for deliverables for each project level.

    Tools and Templates for the Project Approval Toolbox

    • Benefits Commitment Form Template (.xlsx) Document the project sponsor’s buy-in and commitment to proposed benefits in a lightweight fashion.
    • Proposed Technology Assessment Tool (.xlsx) Determine the proposed project’s readiness for adoption from a technological perspective.
    • Business Case Templates (.docx) Guide the analysis process for the overall project proposal development in varying levels of detail.

    Use Info-Tech’s lightweight Benefits Commitment Form Template to document the sponsor buy-in and support

    2.2.4 Benefits Commitment Form Template

    Project sponsors are accountable for the realization of project benefits. Therefore, for a project to be approved by a project sponsor, they must buy-in and commit to the proposed benefits.

    Defining project benefits and obtaining project sponsor commitment has been demonstrated to improve the project outcome by providing the focal point of the project up-front. This will help reduce wasted efforts to develop parts of the proposals that are not ultimately needed.

    A double bar graph titled: Benefits realization improves project outcome is shown.

    Download Info-Tech’s Benefits Commitment Form Template.

    Contents of a Benefits Commitment Form

    • One-sentence highlight of benefits and risks
    • Primary benefit, hard (quantitative) and soft (qualitative)
    • Proposed measurements for metrics
    • Responsible and accountable parties for benefits
    A screenshot of Info-Tech's Establish the Benefits Realization Process blueprint is shown.

    For further discussion on benefits realization, use Info-Tech’s blueprint, Establish the Benefits Realization Process.

    Use Info-Tech’s Proposed Project Technology Assessment Tool to analyze a technology’s readiness for adoption

    2.2.4 Proposed Project Technology Assessment Tool

    In some projects, there needs to be an initial idea of what the project might look like. Develop a high-level solution for projects that:

    • Are very different from previous projects.
    • Are fairly complex, or not business as usual.
    • Require adoption of new technology or skill set.

    IT should advise and provide subject matter expertise on the technology requirements to those that ultimately approve the proposed projects, so that they can take into account additional costs or risks that may be borne from it.

    Info-Tech’s Proposed Project Technology Assessment Tool has a series of questions to address eight categories of considerations to determine the project’s technological readiness for adoption. Use this tool to ensure that you cover all the bases, and help you devise alternate solutions if necessary – which will factor into the overall business case development.

    Download Info-Tech’s Proposed Project Technology Assessment Tool.

    A screenshot of Info-Tech's Proposed Project Technology Assessment Tool is shown.

    Enable project valuation beyond financial metrics with Info-Tech’s Business Case Templates

    2.2.4 Business Case Template (Comprehensive and Fast Track)

    Traditionally, a business case is centered around financial metrics. While monetary benefits and costs are matters of bottom line and important, financial metrics are only part of a project’s value. As the project approval decisions must be based on the holistic comparison of project value, the business case document must capture all the necessary – and only those that are necessary – information to enable it.

    However, completeness of information does not always require comprehensiveness. Allow for flexibility to speed up the process of developing business plan by making a “fast-track” business case template available. This enables the application of the project valuation criteria with all other projects, with right-sized effort.

    Alarming business case statistics

    • Only one-third of companies always prepare a business case for new projects.
    • Nearly 45% of project managers admit they are unclear on the business objectives of their IT projects.

    (Source: Wrike)

    Download Info-Tech’s Comprehensive Business Case Template.

    A screenshot of Info-Tech's Comprehensive Business Case Template is shown.

    Download Info-Tech’s Fast Track Business Case Template.

    A screenshot of Info-Tech's Fast Track Business Case Template is shown.

    Info-Tech Insight

    Pass on that which is known. Valuable information about projects is lost due to a disconnect between project intake and project initiation, as project managers are typically not brought on board until project is actually approved. This will be discussed more in Phase 3 of this blueprint.

    Document the right-sized effort and documentation required for each project level

    2.2.4 Estimated Time:60-90 minutes

    Review and customize section 3.3, “Project Proposal Deliverables” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of this activity is to customize the requirements for project proposal deliverables, so that it properly informs each of the approval steps discussed in the previous activity. The deliverables will also shape the work effort required for projects of various levels. Consider the following factors:

    1. Project levels: what deliverables should be required, recommended, or suggested for each of the project levels? How will exceptions be handled, and who will be accountable?
    2. Existing project proposal documents: what existing proposal documents, tools and templates can we leverage for the newly optimized approval steps?
    3. Skills availability: do these tools and templates represent a significant departure from the current state? If so, is there capacity (time and skill) to achieve the desired target state?
    4. How will you account for the consumption of resource capacity? Do a rough order of estimate for the resource capacity consumed the new deliverable standard.
    5. Who will handle exceptions? For example, PMO will maintain this process and will handle any questions or issues that pertain to this part of the process.

    INPUT

    • Process steps (Activity 2.2.2)
    • Current approval workflow(Activity 1.2.1)
    • Artifacts introduced in the previous slides

    OUTPUT

    • Requirement for artifacts and effort for each approval step

    Materials

    • Whiteboard

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Examine the new project approval workflow as a whole and document it in a flow chart

    2.2.5 Estimated Time: 30-60 minutes

    Review and customize section 3.1, “Project Approval Workflow” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    In Step 1.2 of the blueprint, you mapped out the current project intake, approval, and prioritization workflow and documented it in a flow chart. In this step, take the time to examine the new project intake process as a whole, and document the new workflow in the form of a flow chart.

    1 2 3 4
    Approval Step Concept Approval Feasibility Approval Business Case Approval Resource Allocation (Prioritization)
    Alignment Focus Business need/ Project Sponsorship Technology

    Organization-wide

    Business need

    Resource capacity

    Consider the following points:

    1. Are the inputs and outputs of each step clear? Who’s doing the work? How long will each step take, on average?
    2. Is the ownership of each step clear? How will we ensure a smooth hand-off between each step and prevent requests from falling through the cracks?

    INPUT

    • New process steps for project approval (Activities 2.2.2-4)

    OUTPUT

    • Flowchart representation of new project approval workflow

    Materials

    • Microsoft Visio, flowchart software, or Microsoft PowerPoint

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Step 2.3: Prioritize projects to maximize the value of the project portfolio within the constraint of resource capacity

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Perform a deeper retrospective on current project prioritization process
    • Optimize your process to maintain resource capacity supply and project demand data
    • Optimize your process to formally make disposition recommendations to appropriate decision makers

    This step involves the following participants:

    • PMO Director / Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Administrative Staff

    Outcomes of this step

    • Retrospective of the current project prioritization process: to continue doing, to start doing, and to stop doing
    • Realistic estimate of available resource capacity, in the absence of a resource management practice
    • Optimized process for presenting the decision makers with recommendations and facilitating capacity-constrained steering of the project portfolio
    • Project Intake and Prioritization Tool for facilitating the prioritization process
    • Documentation of the optimized process in the SOP document

    The availability of staff time is rarely factored into IT project and service delivery commitments

    A lot gets promised and worked on, and staff are always busy, but very little actually gets done – at least not within given timelines or to expected levels of quality.

    Organizations tend to bite off more than they can chew when it comes to project and service delivery commitments involving IT resources.

    While the need for businesses to make an excess of IT commitments is understandable, the impacts of systemically over-allocating IT are clearly negative:

    • Stakeholder relations suffer. Promises are made to the business that can’t be met by IT.
    • IT delivery suffers. Project timelines and quality frequently suffer, and service support regularly lags.
    • Employee engagement suffers. Anxiety and stress levels are consistently high among IT staff, while morale and engagement levels are low.

    76%: 76% of organizations say they have too many projects on the go and an unmanageable and ever-growing backlog of things to get to.

    – Cooper, 2014

    70%: Almost 70% of workers feel as though they have too much work on their plates and not enough time to do it.

    – Reynolds, 2016

    Unconstrained, unmanaged demand leads to prioritization of work based on consequences rather than value

    Problems caused by the organizational tendency to make unrealistic delivery commitments is further complicated by the reality of the matrix environment.

    Today, many IT departments use matrix organization. In this system, demands on a resource’s time come from many directions. While resources are expected to prioritize their work, they lack the authority to formally reject any demand. As a result, unconstrained, unmanaged demand frequently outstrips the supply of work-hours the resource can deliver.

    When this happens, the resource has three options:

    1. Work more hours, typically without compensation.
    2. Choose tasks not to do in a way that minimizes personal consequences.
    3. Diminish work quality to meet quantity demands.

    The result is an unsustainable system for all those involved:

    1. Individual workers cannot meet expectations, leading to frustration and disengagement.
    2. Managers cannot deliver on the projects or services they manage and struggle to retain skilled resources who are looking elsewhere for “greener pastures.”
    3. Executives cannot execute strategic plans as they lose decision-making power over their resources.

    Prioritize project demand by project value to get the most out of constrained project capacity – but practicing it is difficult

    The theory may be simple and intuitive, but the practice is extremely challenging. There are three practical challenges to making project prioritization effective.

    Project Prioritization

    Capacity awareness

    Many IT departments struggle to realistically estimate available project capacity in a credible way. Stakeholders question the validity of your endeavor to install capacity-constrained intake process, and mistake it for unwillingness to cooperate instead.

    Lack of authority

    Many PMOs and IT departments simply lack the ability to decline or defer new projects.

    Many moving parts

    Project intake, approval, and prioritization involve the coordination of various departments. Therefore, they require a great deal of buy-in and compliance from multiple stakeholders and senior executives.

    Project Approval

    Unclear definition of value

    Defining the project value is difficult, because there are so many different and conflicting ways that are all valid in their own right. However, without it, it's impossible to fairly compare among projects to select what's "best."

    Unclear definition of value

    In Step 1.1 of the blueprint, we took the first step toward resolving this challenge by prototyping a project valuation scorecard.

    A screenshot of Step 1.1 of this blueprint is shown.

    "Prioritization is a huge issue for us. We face the simultaneous challenges of not having enough resources but also not having a good way to say no. "

    – CIO, governmental health agency

    Address the challenges of capacity awareness and authority with a project prioritization workflow

    Info-Tech recommends following a four-step process for managing project prioritization.

    1. Collect and update supply and demand data
      1. Re-evaluate project value for all proposed, on-hold and ongoing projects
      2. Estimate available resource capacity for projects
    2. Prioritize project demand by value
      1. Identify highest-value, “slam-dunk” projects
      2. Identify medium-value, “on-the-bubble” projects
      3. Identify lower-value projects that lie beyond the available capacity
    3. Approve projects for initiation or continuation
      1. Submit recommendations for review
      2. Adjust prioritized list with business judgment
      3. Steering committee approves projects to work on
    4. Manage a realistically defined project portfolio
    • Stakeholder Need
    • Strategic Objectives
    • Resource Capacity

    Intake and Prioritization Tool

    Perform a start-stop-continue exercise to help determine what is working and what is not working

    2.3.1 Estimated Time: 60 minutes

    Optimizing project prioritization may not require a complete overhaul of your existing processes. You may only need to tweak certain templates or policies. Perhaps you started out with a strong process and simply lost resolve over time – in which case you will need to focus on establishing motivation and discipline, rather than rework your entire process.

    Perform a start-stop-continue exercise with your team to help determine what should be salvaged, what should be abandoned, and what should be introduced:

    1. On a whiteboard or equivalent, write “Start,” “Stop,” and “Continue” in three separate columns. 3. As a group, discuss the responses and come to an agreement as to which are most valid.
    2. Equip your team with sticky notes or markers and have them populate the columns with ideas and suggestions surrounding your current processes. 4. Document the responses to help structure your game plan for intake optimization.
    Start Stop Continue
    • Periodically review the project value scorecard with business stakeholders
    • “Loud Voices First” prioritization
    • Post-prioritization score changes
    • Updating project value scores for current projects

    INPUT

    • Current project prioritization workflow (Activity 1.2.2)
    • Project prioritization success criteria (Activity 1.2.6)

    OUTPUT

    • Retrospective review of current prioritization process

    Materials

    • Whiteboard
    • Sticky notes/markers

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Use Info-Tech’s lightweight Intake and Prioritization Tool to get started on capacity-constrained project prioritization

    Use Info-Tech’s Project Intake and Prioritization Tool to facilitate the scorecard-driven prioritization and ensure effective flow of data.

    This tool builds on the Project Valuation Scorecard Tool to address the challenges in project prioritization:

    1. Lack of capacity awareness: quickly estimate a realistic supply of available work hours for projects for a given prioritization period, in the absence of a reliable and well-maintained resource utilization and capacity data.
    2. Using standard project sizing, quickly estimate the size of the demand for proposed and ongoing projects and produce a report that recommends the list of projects to greenlight – and highlight the projects within that list that are at risk of being short-charged of resources – that will aim to help you tackle:

    3. Lack of authority to say “no” or “not yet” to projects: save time and effort in presenting the results of project prioritization analysis that will enable the decision makers to make well-informed, high-quality portfolio decisions.
    4. The next several slides will walk you through the tool and present activities to facilitate its use for your organization.

    Download Info-Tech’s Project Intake and Prioritization Tool.

    A screenshot of Info-Tech's Project Intake Prioritization Tool is shown.

    Create a high-level estimate of available project capacity to inform how many projects can be greenlighted

    2.3.2 Project Intake and Prioritization Tool, Tab 2: Project Capacity

    Estimate how many work-hours are at your disposal for projects using Info-Tech’s resource calculator.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool, Tab 2: Project Capacity

    1. Compile a list of each role within your department, the number of staff, and the hours in a typical work week.

    2. Enter the foreseeable out-of-office time (vacation, sick time, etc.). Typically, this value is 12-16% depending on the region.

    3. Enter how much working time is spent on non-projects for each role: administrative duties and “keep the lights on” work.

    4. Select a period of time for breaking down available resource capacity in hours.

    Project Work (%): Percentage of your working time that goes toward project work is calculated as what’s left after your non-project working time allocations have been subtracted.

    Project (h) Total Percentage: Take a note of this percentage as your project capacity. This number will put the estimated project demand in context for the rest of the tool.

    Example for a five-day work week:

    • 2 weeks (10 days) of statutory holidays
    • 3 weeks of vacation
    • 1.4 weeks (7 days) of sick days on average
    • 1 week (5 days) for company holidays

    Result: 7.4/52 weeks’ absence = 14%

    Estimate your available project capacity for the next quarter, half-year, or year

    2.3.2 Estimated Time: 30 minutes

    Discover how many work-hours are at your disposal for project work.

    1. Use the wisdom-of-the-crowd approach or resource utilization data to fill out Tab 2 of the tool. This is intended to be somewhat of a rough estimate; avoid the pitfall of being too granular in role or in time split.
    2. Choose a time period that corresponds to your project prioritization period: monthly, quarterly, 4 months, semi-annually (6 months), or annually.
    3. Examine the pie graph representation of your overall capacity breakdown, like the one shown below.

    Screenshot from Tab 2 of Project Intake and Prioritization Tool

    INPUT

    • Knowledge of organization’s personnel and their distribution of time

    OUTPUT

    • Estimate of available project capacity

    Materials

    • Project Intake and Prioritization Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    On average, only about half of the available project capacity results in productive project work

    Place realistic expectations on your resources’ productivity.

    Info-Tech’s PPM Current State Scorecard diagnostic provides a comprehensive view of your portfolio management strengths and weaknesses, including project portfolio management, project management, customer management, and resource utilization.

    A screenshot of Info-Tech's PPM Current State Scorecard diagnostic

    Use the wisdom of the crowd to estimate resource waste in:

    • Cancelled projects
    • Inefficiency
    • Suboptimal assignment of resources
    • Unassigned resources
    • Analyzing, fixing, and redeploying

    50% of PPM resource is wasted on average, effectively halving your available project capacity.

    Source: Info-Tech PPM Current State Scorecard

    Define project capacity and project t-shirt sizes

    2.3.3 Project Intake and Prioritization Tool, Tab 3: Settings

    The resource capacity calculator in the previous tab yields a likely optimistic estimate for how much project capacity is available. Based on this estimate as a guide, enter your optimistic (maximum) and pessimistic (minimum) estimates of project capacity as a percentage of total capacity:

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 3

    Info-Tech’s data shows that only about 50% of time spent on project work is wasted: cancelled projects, inefficiency, rework, etc. As a general rule, enter half of your maximum estimate of your project capacity.

    Capacity in work hours is shown here from the previous tab, to put the percentages in context. This example shows a quarterly breakdown (Step 4 from the previous slide; cell N5 in Tab 2.).

    Next, estimate the percentage of your maximum estimated project capacity that a single project would typically consume in the given period for prioritization.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 3

    These project sizes might not line up with the standard project levels from Step 2.1 of the blueprint: for example, an urgent mid-sized project that requires all hands on deck may need to consume almost 100% of maximum available project capacity.

    Estimate available project capacity and standard project demand sizes for prioritizing project demand

    2.3.3 Estimated Time: 30 minutes

    Refine your estimates of project capacity supply and demand as it applies to a prioritization period.

    1. The estimated project capacity from Activity 2.3.2 represents a theoretical limit. It is most likely an overestimation (see box below). As a group, discuss and decide on a more realistic available project capacity:
      1. Optimistic estimate, assuming sustained peak productivity from everyone in your organization;
      2. Pessimistic estimate, taking into account the necessary human downtime and the PPM resource waste (see previous slide).
    2. Refine the choices of standard project effort sizes, expressed as percentages of maximum project capacity. As a reminder, this sizing is for the chosen prioritization period, and is independent from the project levels set previously in Activity 2.1.4 and 2.1.5.

    Dedicated work needs dedicated break time

    In a study conducted by the Draugiem Group, the ideal work-to-break ratio for maximizing focus and productivity was 52 minutes of work, followed by 17 minutes of rest (Evans). This translates to 75% of resource capacity yielding productive work, which could inform your optimistic estimate of project capacity.

    INPUT

    • Project capacity (Activity 2.3.2)
    • PPM Current State Scorecard (optional)

    OUTPUT

    • Capacity and demand estimate data for tool use

    Materials

    • Project Intake and Prioritization Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Finish setting up the Project Intake and Prioritization Tool

    2.3.4 Project Intake and Prioritization Tool, Tab 3: Settings

    Enter the scoring criteria, which was worked out from Step 1.1 of the blueprint. This workbook supports up to ten scoring criteria; use of more than ten may make the prioritization step unwieldy.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 3

    Leave unused criteria rows blank.

    Choose “value” or “execution” from a drop-down.

    Score does not need to add up to 100.

    Finally, set up the rest of the drop-downs used in the next tab, Project Data. These can be customized to fit your unique project portfolio needs.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 3

    Enter project data into the Project Intake and Prioritization Tool

    2.3.4 Project Intake and Prioritization Tool, Tab 4: Project Data

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 4

    Ensure that each project has a unique name.

    Completed (or cancelled) projects will not be included in prioritization.

    Choose the standard project size defined in the previous tab.

    Change the heading when you customize the workbook.

    Days in Backlog is calculated from the Date Added column.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 4

    Overall weighted project prioritization score is calculated as a sum of value and execution scores.

    Weighted value and execution scores are calculated according to the scoring criteria table in the 2. Settings tab.

    Enter the raw scores. Weights will be taken into calculation behind the scenes.

    Spaces for unused intake scores will be greyed out. You can enter data, but they will not affect the calculated scores.

    Document your process to maintain resource capacity supply and project demand data

    2.3.4 Estimated Time: 30 minutes

    Review and customize section 4.2, “Maintain Supply and Demand Data” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of this activity is to document the process with which the supply and demand information will be updated for projects. Consider the following factors:

    1. Estimates of resource supply: how often will the resource supply be updated? How are you estimating the range (maximum vs. minimum, optimistic vs. pessimistic)? Leverage your existing organizational process assets for resource management.
    2. Updating project data for proposed projects: when and how often will the project valuation scores be updated? Do you have sufficient inputs? Examine the overall project approval process from Step 2.2 of the blueprint, and ensure that sufficient information is available for project valuation (Activity 2.2.3).
    3. Updating project data for ongoing projects: will you prioritize ongoing projects along with proposed projects? When and how often will the project valuation scores be updated? Do you have sufficient inputs?
    4. How will you account for the consumption of resource capacity? Do a rough order of estimate for the resource capacity consumed in this process.
    5. Who will handle exceptions? For example, PMO will maintain this process and will handle any questions or issues that pertain to this part of the process.

    INPUT

    • Organizational process assets for resource management, strategic planning, etc.
    • Activity 2.3.3
    • Activity 2.2.3

    OUTPUT

    • Process steps for refreshing supply and demand data

    Materials

    • SOP Template
    • Project Intake and Prioritization Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts
    • PMO Admin Staff

    Prioritized list of projects shows what fits under available project capacity for realizing maximum value

    2.3.5 Project Intake and Prioritization Tool, Tab 5: Results

    The output of the Project Intake and Prioritization Tool is a prioritized list of projects with indicators to show that their demand on project capacity will fit within the estimated available project capacity for the prioritization period.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 5

    Status indicates whether the project is proposed or ongoing; completed projects are excluded.

    Disposition indicates the course of recommended action based on prioritization.

    Proposed projects display how long they have been sitting in the backlog.

    Projects highlighted yellow are marked as “deliberate” for their dispositions. These projects pose risks of not getting properly resourced. One must proceed with caution if they are to be initiated or continued.

    Provide better support to decision makers with the prioritized list, and be prepared for their steering

    It is the portfolio manager’s responsibility to provide the project portfolio owners with reliable data and enable them to make well-informed decisions for the portfolio.

    The prioritized list of proposed and ongoing projects, and an approximate indication for how they fill out the estimated available resource capacity, provide a meaningful starting ground for discussion on which projects to continue or initiate, to hold, or to proceed with caution.

    However, it is important to recognize the limitation of the prioritization methodology. There may be legitimate reasons why some projects should be prioritized over another that the project valuation method does not successfully capture. At the end of the day, it’s the prerogative of the portfolio owners who carry on the accountabilities to steer the portfolio.

    The portfolio manager has a responsibility to be prepared for reconciling the said steering with the unchanged available resource capacity for project work. What comes off the list of projects to continue or initiate? Or, will we outsource capacity if we must meet irreconcilable demand? The next slide will show how Info-Tech’s tool helps you with this process.

    Info-Tech Best Practice

    Strive to become the best co-pilot. Constantly iterate on the scoring criteria to better adapt to the portfolio owners’ preference in steering the project portfolio.

    Manipulate the prioritized list with the Force Disposition list

    2.3.5 Project Intake and Prioritization Tool, Tab 5: Results

    The Force Disposition list enables you to inject subjective judgment in project prioritization. Force include and outsource override project prioritization scores and include the projects for approval:

    • Force include counts the project demand against capacity.
    • Outsource, on the other hand, does not count the project demand.
    • Force exclude removes a project from prioritized list altogether, without deleting the row and losing its data.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 5

    Choose a project name and a disposition using a drop-down.

    Use this list to test out various scenarios, useful for what-if analysis.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 5

    Document your process to formally make disposition recommendations to appropriate decision-making party

    2.3.5 Estimated Time: 60 minutes

    Review and customize section 4.3, “Approve projects for initiation or continuation” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    The goal of this activity is to formalize the process of presenting the prioritized list of projects for review, modify the list based on steering decisions, and obtain the portfolio owners’ approval for projects to initiate or continue, hold, or terminate. Consider the following factors:

    1. Existing final approval process: what are the new injections to the current decision-making process for final approval?
    2. Meeting prep, agenda, and follow-up: what are the activities that must be carried out by PMO / portfolio manager to support the portfolio decision makers and obtain final approval?
    3. “Deliberate” projects: what additional information should portfolio owners be presented with, in order to deliberate on the projects at risk of being not properly resourced? For example, consider a value-execution plot (right).

    A screenshot of Info-Tech's Project Intake and Prioritization Tool Tab 5

    INPUT

    • Approval process steps (Activity 2.2.2)
    • Steering Committee process documentation

    OUTPUT

    • Activities for supporting the decision-making body

    Materials

    • SOP Template
    • Project Intake and Prioritization Tool

    Participants

    • CIO
    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Once a project is approved, pass that which is known on to those responsible for downstream processes

    Aim to be responsible stewards of important and costly information developed throughout project intake, approval, and prioritization processes.

    Once the proposed project is given a green light, the project enters an initiation phase.

    No matter what project management methodology is employed, it is absolutely vital to pass on the knowledge gained and insights developed through the intake, approval, and prioritization processes. This ensures that the project managers and team are informed of the project’s purpose, business benefits, rationale for the project approval, etc. and be able to focus their efforts in realizing the project’s business goals.

    Recognize that this does not aim to create any new artifacts. It is simply a procedural safeguard against the loss of important and costly information assets for your organization.

    A flowchart is shown as an example of business documents leading to the development of a project charter.

    Information from the intake process directly feeds into, for example, developing a project charter.

    Source: PMBOK, 6th edition

    "If the project manager can connect strategy to the project they are leading (and therefore the value that the organization desires by sanctioning the project), they can ensure that the project is appropriately planned and managed to realize those benefits."

    – Randall T. Black, P.Eng., PMP; source: PMI Today

    Examine the new project intake workflow as a whole and document it in a flow chart

    2.3.6 Estimated Time: 30-60 minutes

    Review and customize section 4.1, “Project Prioritization Workflow” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template.

    In Step 1.2 of the blueprint, you mapped out the current project intake, approval, and prioritization workflow and documented it in a flow chart. In this step, take the time to examine the new project intake process as a whole, and document the new workflow in the form of a flow chart.

    1. Collect and update supply and demand data
    2. Prioritize project demand by value
    3. Approve projects for initiation or continuation
    4. Manage a realistically defined project portfolio

    Consider the following points:

    1. Are the inputs and outputs of each step clear? Who’s doing the work? How long will each step take, on average?
    2. Is the ownership of each step clear? How will we ensure a smooth handoff between each step and prevent requests from falling through the cracks?

    INPUT

    • New process steps for project prioritization (Activities 2.3.x-y)

    OUTPUT

    • Flowchart representation of new project prioritization workflow

    Materials

    • Microsoft Visio, flowchart software, or Microsoft PowerPoint

    Participants

    • CIO
    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Leverage Info-Tech’s other blueprints to complement your project prioritization processes

    The project capacity estimates overlook a critical piece of the resourcing puzzle for the sake of simplicity: skills. You need the right skills at the right time for the right project.

    Use Info-Tech’s Balance Supply and Demand with Realistic Resource Management Practices blueprint to enhance the quality of information on your project supply.

    A screenshot of Info-Tech's Balance Supply and Demand with Realistic Resource Management Practices blueprint.

    There is more to organizing your project portfolio than a strict prioritization by project value. For example, as with a financial investment portfolio, project portfolio must achieve the right investment mix to balance your risks and leverage opportunities.

    Use Info-Tech’s Maintain an Organized Portfolio blueprint to refine the makeup of your project portfolio.

    A screenshot of Info-Tech's Maintain an Organized Portfolio blueprint.

    Continuous prioritization of projects allow organizations to achieve portfolio responsiveness.

    Use Info-Tech’s Manage an Agile Portfolio blueprint to take prioritization of your project portfolio to the next level.

    A screenshot of Info-Tech's Manage an Agile Portfolio blueprint

    46% of organizations use a homegrown PPM solution. Info-Tech’s Grow Your Own PPM Solution blueprint debuts a spreadsheet-based Portfolio Manager tool that provides key functionalities that integrates those of the Intake and Prioritization Tool with resource management, allocation and portfolio reporting capabilities.

    A screenshot of Info-Tech's Grow Your Own PPM Solution blueprint

    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:

    A picture of an Info-Tech analyst is shown.

    • 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:

    2.1.2-6

    A screenshot of activities 2.1.2-6 is shown.

    Optimize your process to receive, triage, and follow up on project requests

    Discussion on decision points and topics of consideration will be facilitated to leverage the diverse viewpoints amongst the workshop participants.

    2.3.2-5

    A screenshot of activities 2.3.2-5 is shown.

    Set up a capacity-informed project prioritization process using Info-Tech’s Project Intake and Prioritization Tool

    A table-top planning exercise helps you visualize the current process in place and identify opportunities for optimization.

    Phase 3

    Integrate the New Optimized Processes into Practice

    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: Integrate the New Optimized Processes into Practice

    Proposed Time to Completion: 6-12 weeks

    Step 3.1: Pilot your process to refine it prior to rollout

    Start with an analyst kick-off call:

    • Review the proposed intake, approval, and prioritization process

    Then complete these activities…

    • Select receptive stakeholders to work with
    • Define the scope of your pilot and determine logistics
    • Document lessons learned and create an action plan for any changes

    With these tools & templates:

    • Process Pilot Plan
    • Project Backlog Manager Job Description

    Step 3.2: Analyze the impact of organizational change

    Review findings with analyst:

    • Results of the process pilot and the finalized intake SOP
    • Key PPM stakeholders
    • Current organizational climate

    Then complete these activities…

    • Analyze the stakeholder impact and responses to impending organizational change
    • Create message canvases for at-risk change impacts and stakeholders to create an effective communication plan

    With these tools & templates:

    • Intake Process Implementation Impact Analysis Tool

    Phase 3 Results & Insights:

    • Engagement paves the way for smoother adoption. An “engagement” approach (rather than simply “communication”) turns stakeholders into advocates who can help boost your message, sustain the change, and realize benefits without constant intervention or process command-and-control.

    Step 3.1: Pilot your intake, approval, and prioritization process to refine it before rollout

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Select receptive managers to work with during your pilot
    • Define the scope of your pilot and determine logistics
    • Plan to obtain feedback, document lessons learned, and create an action plan for any changes
    • Finalize Project Intake, Approval, and Prioritization SOP

    This step involves the following participants:

    • PMO Director / Portfolio Manager
    • Project Managers
    • Business Analysts

    Outcomes of this step

    • A pilot team
    • A process pilot plan that defines the scope, logistics, and process for retrospection
    • Project Backlog Manager job description
    • Finalized Project Intake, Approval, and Prioritization SOP for rollout

    Pilot your new processes to test feasibility and address issues before a full deployment

    Adopting the right set of practices requires a significant degree of change that necessitates buy-in from varied stakeholders throughout IT and the business.

    Rome wasn’t built in a day. Similarly, benefits of optimized project intake, approval, and prioritization process will not be realized overnight.

    Resist the urge to deploy a big-bang roll out of your new intake practices. The approach is ill advised for two main reasons:

    • It will put more of a strain on the implementation team in the near term, with a larger pool of end users to train and collect data from.
    • Putting untested practices in a department-wide spotlight could lead to mass confusion in the near-term and color the new processes in a negative light, leading to a loss of stakeholder trust and engagement right out-of-the-gate.

    Start with a pilot phase. Identify receptive lines of business and IT resources to work with, and leverage their insights to help iron out the kinks in your process before unveiling your practices to IT and all business users at large.

    This step will help you to:

    • Plan and execute a pilot of the processes we developed in Phase 2.
    • Incorporate the lessons learned from that pilot to strengthen your SOP and ease the communication process.

    Info-Tech Insight

    Engagement paves the way for smoother adoption. An “engagement” approach (rather than simply “communication”) turns stakeholders into advocates who can help boost your message, sustain the change, and realize benefits without constant intervention or process command-and-control.

    Plan your pilot like you would any project to ensure it’s well defined and its goals are clearly articulated

    Use Info-Tech’s Intake Process Pilot Plan Template to help define the scope of your pilot and set appropriate goals for the test-run of your new processes.

    A process pilot is a limited scope of an implementation (constrained by time and resources involved) in order to test the viability and effectiveness of the process as it has been designed.

    • Investing time and energy into a pilot phase can help to lower implementation risk, enhance the details and steps within a process, and improve stakeholder relations prior to a full scale rollout.
    • More than a dry run, however, a pilot should be approached strategically, and planned out to limit the scope of it and achieve specific outcomes.
    • Leverage a planning document to ensure your process pilot is grounded in a common set of definitions, that the pilot is delivering value and insight, and that ultimately the pilot can serve as a starting point for a full-scale process implementation.

    Download Info-Tech’s Process Pilot Plan Template

    A screenshot of Info-Tech's Process Pilot Plan Template is shown.

    "The advantages to a pilot are several. First, risk is constrained. Pilots are closely monitored so if a problem does occur, it can be fixed immediately. Second, the people working in the pilot can become trainers as you roll the process out to the rest of the organization. Third, the pilot is another opportunity for skeptics to visit the pilot process and learn from those working in it. There’s nothing like seeing a new process working for people to change their minds."

    Daniel Madison

    Select receptive stakeholders to work with during your pilot

    3.1.1 Estimated Time: 20-60 minutes

    Info-Tech recommends selecting PPM stakeholders who are aware of your role and some of the challenges in project intake, approval, and prioritization to assist in the implementation process.

    1. If receptive PPM stakeholders are known, schedule a 15-minute meeting with them to inquire if they would be willing to be part of the pilot process.
    2. If receptive project managers are not known, use Info-Tech’s Stakeholder Engagement Workbook to conduct a formal selection process.
      1. Enter a list of potential participants for pilot in tab 3.
      2. Rate project managers in terms of influence, pilot interest, and potential deployment contribution within tab 4.
      3. Review tab 5 in the workbook. Receptive PPM stakeholders will appear in the top quadrants. Ideal PPM stakeholders for the pilot are located in the top right quadrant of the graph.

    A screenshot of Info-Tech's Stakeholder Engagement Workbook Tab 5 is shown.

    INPUT

    • Project portfolio management stakeholders (Activity 1.2.3)

    OUTPUT

    • Pilot project team

    Materials

    • Stakeholder Engagement Workbook
    • Process Pilot Plan Template

    Participants

    • PMO Director/ Portfolio Manager
    • CIO (optional)

    Document the PPM stakeholders involved in your pilot in Section 3 of Info-Tech’s Process Pilot Plan Template.

    Define the scope of your pilot and determine logistics

    3.1.2 Estimated Time: 60-90 minutes

    Use Info-Tech’s Process Pilot Plan Template to design the details of your pilot.

    Investing time into planning your pilot phase strategically will ensure a clear scope, better communications for those piloting the processes, and – overall – better, more actionable results for the pilot phase. The Pilot Plan Template is broken into five sections to assist in these goals:

    • Pilot Overview and Scope
    • Success and Risk Factors
    • Stakeholders Involved and Communications Plan
    • Pilot Retrospective and Feedback Protocol

    The duration of your pilot should go at least one prioritization period, e.g. one to two quarters.

    Estimates of time commitments should be captured for each stakeholder. During the retrospective at the end of the pilot you should capture actuals to help determine the time-cost of the process itself and measure its sustainability.

    Once the Plan Template is completed, schedule time to share and communicate it with the pilot team and executive sponsors of the process.

    While you should invest time in this planning document, continue to lean on the Intake, Approval, and Prioritization SOP throughout the pilot phase.

    INPUT

    • Sections 1 through 4 of the Process Pilot Plan Template

    OUTPUT

    • A process pilot plan

    Materials

    • Process Pilot Plan Template

    Participants

    • PMO Director / Portfolio Manager
    • Project Managers
    • Business Analysts
    • CIO (optional)

    Execute your pilot and prepare to make process revisions before the full rollout

    Hit play! Begin the process pilot and get familiar with the work routine and resource management solution.

    Some things to keep in mind during the pilot include:

    • Depending on the solution you are using, you will likely need to spend one day or less to populate the tool. During the pilot, measure the time and effort required to manage the data within the tool. Determine whether time and effort required is viable on an ongoing basis (i.e. can you do it every month or quarter) and has value.
    • Meet with the pilot team and other stakeholders regularly during the pilot, at least biweekly. Allow the team (and yourself) to speak honestly and openly about what isn’t working. The pilot is your chance to make things better.
    • Keep notes about what will need to change in the SOP. For major changes, you may have to tweak the process during the pilot itself. Update the process documents as needed and communicate the changes and why they’re being made. If required, update the scope of the pilot in the Pilot Plan Template.
    An example is shown on how to begin the process pilot and getting familiar with the work routine and resource management solution.

    Obtain feedback from the pilot group to improve your processes before a wider rollout

    3.1.3 Estimated Time: 30 minutes

    Pilot projects allow you to validate your assumptions and leverage lessons learned. During the planning of the pilot, you should have scheduled a retrospective meeting with the pilot team to formally assess strengths and weaknesses in the process you have drafted.

    • Schedule the retrospective shortly after the pilot is completed. Info-Tech recommends performing a Stop/Start/Continue meeting with pilot participants to obtain and capture feedback.
    • Have members of the meeting record any processes/activities on sticky notes that should:
      • Stop: because they are ineffective or not useful
      • Start: because they would be useful for the tool and have not been incorporated into current processes
      • Continue: because they are useful and positively contribute to intended process outcomes.

    An example of how to structure a Stop/Start/Continue activity on a whiteboard using sticky notes.

    An example of stop, start, and continue is activity is shown.

    INPUT

    • What’s working and what isn’t in the process

    OUTPUT

    • Ideas to improve process

    Materials

    • Whiteboard
    • Sticky notes
    • Process Pilot Plan Template

    Participants

    • Process owner (PMO director or portfolio owner)
    • Pilot team

    See the following slide for additional instructions.

    Document lessons learned and create an action plan for any changes to the processes

    3.1.4 Estimated Time: 30 minutes

    An example of stop, start, and continue is activity is shown.

    As a group, discuss everyone’s responses and organize according to top priority (mark with a 1) and lower priority/next steps (mark with a 2). At this point, you can also remove any sticky notes that are repetitive or no longer relevant.

    Once you have organized based on priority, be sure to come to a consensus with the group regarding which actions to take. For example, if the group agrees that they should “stop holding meetings weekly,” come to a consensus regarding how often meetings will be held, i.e. monthly.

    Priority Action Required Who is Responsible Implementation Date
    Stop: Holding meetings weekly Hold meetings monthly Jane Doe, PMO Next Meeting: August 1, 2017
    Start: Discussing backlog during meetings Ensure that backlog data is up to date for discussion on date of next meeting. John Doe, Portfolio Manager August 1, 2017

    Create an action plan for the top priority items that require changes (the Stops and Starts). Record in this slide, or your preferred medium. Be sure to include who is responsible for the action and the date that it will be implemented.

    Document the outcomes of the start/stop/continue and your action plan in Section 6 of Info-Tech’s Process Pilot Plan Template.

    Use Info-Tech’s Backlog Manager Job Description Template to help fill any staffing needs around data maintenance

    3.1 Project Backlog Manager Job Description

    You will need to determine responsibilities and accountabilities for portfolio management functions within your team.

    If you do not have a clearly identifiable portfolio manager at this time, you will need to clarify who will wear which hats in terms of facilitating intake and prioritization, high-level capacity awareness, and portfolio reporting.

    • Use Info-Tech’s Project Backlog Manager job description template to help clarify some of the required responsibilities to support your intake, approval, and prioritization strategy.
      • If you need to bring in an additional staff member to help support the strategy, you can customize the job description template to help advertise the position. Simply edit the text in grey within the template.
    • If you have other PPM tasks that you need to define responsibilities for, you can use the RASCI chart on the final tab of the PPM Strategy Development Tool.

    Download Info-Tech’s Project Backlog Manager job description template.

    A screenshot of Info-Tech's Project Backlog Manager template is shown.

    Finalize the Intake, Approval, and Prioritization SOP and prepare to communicate your processes

    Once you’ve completed the pilot process and made the necessary tweaks, you should finalize your Intake, Approval, and Prioritization SOP and prepare to communicate it.

    Update section 1.2, “Overall Process Workflow” in Info-Tech’s Project Intake, Approval, and Prioritization SOP Template with the new process flow.

    Revisit your SOP from Phase 2 and ensure it has been updated to reflect the process changes that were identified in activity 3.1.4.

    • If during the pilot process the data was too difficult or time consuming to maintain, revisit the dimensions you have chosen and choose dimensions that are easier to accurately maintain. Tweak your process steps in the SOP accordingly.
    • In the long term, if you are not observing any progress toward achieving your success criteria, revisit the impact analysis that we’ll prepare in step 3.2 and address some of these inhibitors to organizational change.

    Download Info-Tech’s Project Intake, Approval, and Prioritization SOP template.

    A screenshot of Info-Tech's Project Intake, Approval, and Prioritization SOP template.

    Info-Tech Best Practice

    Make your SOP high impact. SOPs are often at risk of being left unmaintained and languishing in disuse. Improve the SOP’s succinctness and usability by making it visual; consult Info-Tech’s blueprint, Create Visual SOP Documents that Drive Process Optimization, Not Just Peace of Mind.

    Step 3.2: Analyze the impact of organizational change through the eyes of PPM stakeholders to gain their buy-in

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Define project valuation criteria

    1.2

    Envision process target state

    2.1

    Streamline intake

    2.2

    Right-size approval steps

    2.3

    Prioritize projects to fit resource capacity

    3.1

    Pilot your optimized process

    3.2

    Communicate organizational change

    This step will walk you through the following activities:

    • Analyze the stakeholder impact and responses to impending organizational change
    • Create message canvases for at-risk change impacts and stakeholders
    • Set the course of action for communicating changes to your stakeholders

    This step involves the following participants:

    • PMO Director / Portfolio Manager
    • Project Managers
    • Business Analysts

    Outcomes of this step

    • A thorough organizational change impact analysis, based on Info-Tech’s expertise in organizational change management
    • Message canvases and communication plan for your stakeholders
    • Go-live for the new intake, approval, and prioritization process

    Manage key PPM stakeholders and communicate changes

    • Business units: Projects are undertaken to provide value to the business. Senior management from business units must help define how project will be valued.
    • IT: IT must ensure that technical/practical considerations are taken into account when determining project value.
    • Finance: The CFO or designated representative will ensure that estimated project costs and benefits can be used to manage the budget.
    • PMO: PMO is the administrator of the project portfolio. PMO must provide coordination and support to ensure the process operates smoothly and its goals are realized.
    • Business analysts: BAs carry out the evaluation of project value. Therefore, their understanding of the evaluation criteria and the process as a whole are critical to the success of the process.
    • Project sponsors: Project sponsors are accountable for the realization of benefits for which projects are undertaken.

    Impacts will be felt differently by different stakeholders and stakeholder groups

    As you assess change impacts, keep in mind that no impact will be felt the same across the organization. Depth of impact can vary depending on the frequency (will the impact be felt daily, weekly, monthly?), the actions necessitated by it (e.g. will it change the way the job is done or is it simply a minor process tweak?), and the anticipated response of the stakeholder (support, resistance, indifference?).

    Use the Organizational Change Depth Scale below to help visualize various depths of impact. The deeper the impact, the tougher the job of managing change will be.

    Procedural Behavioral Interpersonal Vocational Cultural
    Procedural change involves changes to explicit procedures, rules, policies, processes, etc. Behavioral change is similar to procedural change, but goes deeper to involve the changing tacit or unconscious habits. Interpersonal change goes beyond behavioral change to involve changing relationships, teams, locations, reporting structures, and other social interactions. Vocational change requires acquiring new knowledge and skills, and accepting the loss or decline in the value or relevance of previously acquired knowledge and skills. Cultural change goes beyond interpersonal and vocational change to involve changing personal values, social norms, and assumptions about the meaning of good vs. bad or right vs. wrong.
    Example: providing sales reps with mobile access to the CRM application to let them update records from the field. Example: requiring sales reps to use tablets equipped with a custom mobile application for placing orders from the field. Example: migrating sales reps to work 100% remotely. Example: migrating technical support staff to field service and sales support roles. Example: changing the operating model to a more service-based value proposition or focus.

    Perform a change impact analysis to maximize the chances of adoption for the new intake process

    Invest time and effort to analyze the impact of change to create an actionable stakeholder communication plan that yields the desirable result: adoption.

    Info-Tech’s Drive Organizational Change from the PMO blueprint offers the OCM Impact Analysis Tool to helps document the change impact across multiple dimensions, enabling the project team to review the analysis with others to ensure that the most important impacts are captured.

    This tool has been customized for optimizing project intake, approval, and prioritization process to deliver the same result in a more streamlined way. The next several slides will take you through the activities to ultimately create an OCM message canvas and a communication plan for your key stakeholders.

    Download Info-Tech’s Intake and Prioritization Impact Analysis Tool.

    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool is shown.

    "As a general principle, project teams should always treat every stakeholder initially as a recipient of change. Every stakeholder management plan should have, as an end goal, to change recipients’ habits or behaviors."

    -PMI, 2015

    Set up the Intake Process and Prioritization Impact Analysis Tool

    3.2.1 Intake and Prioritization Impact Analysis Tool, Tab 2-3

    In Tab 2, enter your stakeholders’ names. Represent stakeholders as a group if you expect the impact of change on them to be reasonably uniform, as well as their anticipated responses. Otherwise, consider adding them as individuals or subgroups.

    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 2 is shown.

    In Tab 3, enter whether you agree or disagree with each statement that represents an element of organizational change that be introduced as the newly optimized intake process is implemented.

    As a result of the change initiative in question:

    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 3 is shown.

    Analyze the impact and the anticipated stakeholder responses of each change

    3.2.1 Intake and Prioritization Impact Analysis Tool, Tab 4: Impact Analysis Inputs

    Each change statement that you agreed with in Tab 3 are listed here in Tab 4 of the Intake and Prioritization Impact Analysis Tool. For each stakeholder, estimate and enter the following data:

    1. Frequency of the Impact: how often will the impact of the change be felt?
    2. Effort Associated with Impact: what is the demand on a stakeholder’s effort to implement the change?
    3. Anticipated Response: rate from enthusiastic response to active subversion. Honest and realistic estimates of anticipated responses are critical to the rest of the impact analysis.
    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 4 is shown.

    Analyze the stakeholder impact and responses to impending organizational change as a group

    3.2.1 Estimated Time: 60-90 minutes

    Divide and conquer. Leverage the group to get through the seemingly daunting amount of work involved with impact analysis.

    1. Divide the activity participants into subgroups and assign a section of the impact analysis. It may be helpful to do one section together as a group to make sure everyone is roughly on the same page for assessing impact.
    2. Suggested ways to divide up the impact analysis include:

    • By change impact. This would be suitable when the process owners (or would-be process owners) are available and participating.
    • By stakeholders. This would be suitable for large organizations where the activity participants know some stakeholders better than others.

    Tip: use a spreadsheet tool that supports multi-user editing (e.g. Google Sheets, Excel Online).

  • Aggregate the completed work and benchmark one another’s analysis by reviewing them with the entire group.
  • INPUT

    • Organizational and stakeholder knowledge
    • Optimized intake process

    OUTPUT

    • Estimates of stakeholder-specific impact and response

    Materials

    • Intake and Prioritization Impact Analysis Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Info-Tech Insight

    Beware of bias. Groups are just as susceptible to producing overly optimistic or pessimistic analysis as individuals, just in different ways. Unrealistic change impact analysis will compromise your chances of arriving at a reasonable, tactful stakeholder communication plan.

    Examine your impact analysis report

    3.2.2 Intake and Prioritization Impact Analysis Tool, Tab 5: Impact Analysis Outputs

    These outputs are based on the impacts you analyzed in Tab 4 of the tool (Activity 3.2.1). They are organized in seven sections:

    1. Top Five Highest Risk Impacts, based on the frequency and effort inputs across all impacts.
    2. Overall Process Adoption Rating (top right), showing the overall difficulty of this change given likelihood/risk that the stakeholders involved will absorb the anticipated change impacts.
    3. Top Five Most Impacted Stakeholders, based on the frequency and effort inputs across all impacts.
    4. Top Five Process Supporters and;
    5. Top Five Process Resistors, based on the anticipated response inputs across all impacts.
    6. Impact Register (bottom right): this list breaks down each change’s likelihood of adoption.
    7. Potential Impacts to Watch Out For: this list compiles all of the "Don't Know" responses from Tab 3.
    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 5 is shown. It shows Section 2. Overall process adoption rating. A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 5 is shown. It shows Section 6. Impact Register.

    Tailor messages for at-risk change impacts and stakeholders with Info-Tech’s Message Canvas

    3.2.2 Intake and Prioritization Impact Analysis Tool, Tab 6: Message Canvas

    Use Info-Tech’s Message Canvas on this tab to help rationalize and elaborate the change vision for each group.

    Elements of a Message Canvas

    • Why is there a need for this process change?
    • What will be new for this audience?
    • What will go away for this audience?
    • What will be meaningfully unchanged for this audience?
    • How will this change benefit this audience?
    • When and how will the benefits be realized for this audience?
    • What does this audience have to do for this change to succeed?
    • What does this audience have to stop doing for this change to succeed?
    • What should this audience continue doing?
    • What support will this audience receive to help manage the transition?
    • What should this audience expect to do/happen next?

    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 6 is shown.

    Info-Tech Insight

    Change thy language, change thyself.

    Jargon, acronyms, and technical terms represent deeply entrenched cultural habits and assumptions.

    Continuing to use jargon or acronyms after a transition tends to drag people back to old ways of thinking and working.

    You don’t need to invent a new batch of buzzwords for every change (nor should you), but every change is an opportunity to listen for words and phrases that have lost their meaning through overuse and abuse.

    Create message canvases for at-risk change impacts and stakeholders as a group

    3.2.2 Estimated Time: 90-120 minutes

    1. Decide on the number of message canvases to complete. This will be based on the number of at-risk change impacts and stakeholders.
    2. Divide the activity participants into subgroups and assign a section of the message canvas. It may be helpful to do one section together as a group to make sure everyone is roughly on the same page for assessing impact.
    3. Aggregate the completed work and benchmark the message canvases amongst subgroups.

    Remember these guidelines to help your messages resonate:

    • People are busy and easily distracted. Tell people what they really need to know first, before you lose their attention.
    • Repetition is good. Remember the Aristotelian triptych: “Tell them what you’re going to tell them, then tell them, then tell them what you told them.”
    • Don’t use technical terms, jargon, or acronyms. Different groups in organizations tend to develop specialized vocabularies. Everybody grows so accustomed to using acronyms and jargon every day that it becomes difficult to notice how strange it sounds to outsiders. This is especially important when IT communicates with non-technical audiences. Don’t alienate your audience by talking at them in a strange language.
    • Test your message. Run focus groups or deliver communications to a test audience (which could be as simple as asking 2–3 people to read a draft) before delivering messages more broadly.

    – Info-Tech Blueprint, Drive Organizational Change from the PMO

    INPUT

    • Impact Analysis Outputs
    • Organizational and stakeholder knowledge

    OUTPUT

    • Estimates of stakeholder-specific impact and response

    Materials

    • Intake and Prioritization Impact Analysis Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Distill the message canvases into a comprehensive communication plan

    3.2.3 Intake and Prioritization Impact Analysis Tool, Tab 7: Communication Plan

    The communication plan creates an action plan around the message canvases to coordinate the responsibilities of delivering them, so the risks of “dropping the ball” on your stakeholders are minimized.

    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 7: Communication is shown.

    1. Choose a change impact from a drop-down menu.

    2. Choose an intended audience...

    … and the message canvas to reference.

    3. Choose the method of delivery. It will influence how to craft the message for the stakeholder.

    4. Indicate who is responsible for creating and communicating the message.

    A screenshot of Info-Tech's Intake and Prioritization Impact Analysis Tool, Tab 7: Communication is shown.

    5. Briefly indicate goal of the communication and the likelihood of success.

    6. Record the dates to plan and track the communications that take place.

    Set the course of action for communicating changes to your stakeholders

    3.2.2 Estimated Time: 90-120 minutes

    1. Divide the activity participants into subgroups and assign communication topics to each group. There should be one communication topic for each change impact. Based on the message canvas, create a communication plan draft.
    2. Aggregate the completed work and benchmark the communication topic amongst subgroups.
    3. Share the finished communication plan with the rest of the working group. Do not share this file widely, but keep it private within the group.

    Identify critical points in the change curve:

    1. Honeymoon of “Uninformed Optimism”: There is usually tentative support and even enthusiasm for change before people have really felt or understood what it involves.
    2. Backlash of “Informed Pessimism” (leading to “Valley of Despair”): As change approaches or begins, people realize they’ve overestimated the benefits (or the speed at which benefits will be achieved) and underestimated the difficulty of change.
    3. Valley of Despair and beginning of “Hopeful Realism”: Eventually, sentiment bottoms out and people begin to accept the difficulty (or inevitability) of change.
    4. Bounce of “Informed Optimism”: People become more optimistic and supportive when they begin to see bright spots and early successes.
    5. Contentment of “Completion”: Change has been successfully adopted and benefits are being realized.

    Based on Don Kelley and Daryl Conner’s Emotional Cycle of Change.

    INPUT

    • Change impact analysis results
    • Message canvases
    • List of stakeholders

    OUTPUT

    • Communication Plan

    Materials

    • Intake and Prioritization Impact Analysis Tool

    Participants

    • PMO Director/ Portfolio Manager
    • Project Managers
    • Business Analysts

    Roll out the optimized intake, approval, and prioritization process, and continually monitor adoption and success

    As you implement your new project intake process, familiarize yourself with common barriers and challenges.

    There will be challenges to watch for in evaluating the effectiveness of your intake processes. These may include circumvention of process by key stakeholders, re-emergence of off-the-grid projects and low-value initiatives.

    As a quick and easy way to periodically assess your processes, consider the following questions:

    • Are you confident that all work in progress is being tracked via the project list?
    • Are your resources all currently working on high-value initiatives?
    • Since optimizing, have you been able to deliver (or are you on target to deliver) all that has been approved, with no initiatives in states of suspended animation for long periods of time?
    • Thanks to sufficient portfolio visibility and transparency into your capacity, have you been able to successfully decline requests that did not add value or that did not align with resourcing?

    If you answer “no” to any of these questions after a sufficient post-implementation period (approximately six to nine months, depending on the scope of your optimizing), you may need to tweak certain aspects of your processes or seek to align your optimization with a lower capability level in the short term.

    Small IT department struggles to optimize intake and to communicate new processes to stakeholders

    CASE STUDY

    Industry: Government

    Source: Info-Tech Client

    Challenge

    There is an IT department for a large municipal government. Possessing a relatively low level of PPM maturity, IT is in the process of establishing more formal intake practices in order to better track, and respond to, project requests. New processes include a minimalist request form (sent via email) coupled with more thorough follow-up from BAs and PMs to determine business value, ROI, and timeframes.

    Solution

    Even with new user-friendly processes in place, IT struggles to get stakeholders to adopt, especially with smaller initiatives. These smaller requests frequently continue to come in outside of the formal process and, because of this, are often executed outside of portfolio oversight. Without good, reliable data around where staff time is spent, IT lacks the authority to decline new requests.

    Results

    IT is seeking further optimization through better communication. They are enforcing discipline on stakeholders and reiterating that all initiatives, regardless of size, need to be directed through the process. IT is also training its staff to be more critical. “Don’t just start working on an initiative because a stakeholder asks.” With staff being more critical and directing requests through the proper queues, IT is getting better at tracking and prioritizing requests.

    "The biggest challenge when implementing the intake process was change management. We needed to shift our focus from responding to requests to strategically thinking about how requests should be managed. The intake process allows the IT Department to be transparent to customers and enables decision makers."

    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:

    A picture of an Info-Tech analyst is shown.

    • 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

    A screenshot of activity 3.1.1 is shown

    Select receptive stakeholders to work with during your pilot

    Identify the right team of supportive PPM stakeholders to carry out the process pilot. Strategies to recruit the right people outside the workshop will be discussed if appropriate.

    3.2.1

    A screenshot of activity 3.2.1 is shown.

    Analyze the stakeholder impact and responses to impending organizational change

    Carry out a thorough analysis of change impact in order to maximize the effectiveness of the communication strategy in support of the implementation of the optimized process.

    Insight breakdown

    Insight 1

    • The overarching goal of optimizing project intake, approval, and prioritization process is to maximize the throughput of the best projects. To achieve this goal, one must have a clear way to determine what are “the best” projects.

    Insight 2

    • Info-Tech’s methodology systemically fits the project portfolio into its triple constraint of stakeholder needs, strategic objectives, and resource capacity to effectively address the challenges of establishing organizational discipline for project intake.

    Insight 3

    • Engagement paves the way for smoother adoption. An “engagement” approach (rather than simply “communication”) turns stakeholders into advocates who can help boost your message, sustain the change, and realize benefits without constant intervention or process command-and-control.

    Summary of accomplishment

    Knowledge Gained

    • Triple constraint model of project portfolio: stakeholder needs, strategic objectives, and resource capacity
    • Benefits of optimizing project intake, approval, and prioritization for managing a well-behaved project portfolio
    • Challenges of installing well-run project intake
    • Importance of piloting the process and communicating impacts to stakeholders

    Processes Optimized

    • Project valuation process: scorecard, weights
    • Project intake process: reception, triaging, follow-up
    • Project approval process: steps, accountabilities, deliverables
    • Project prioritization process: estimation of resource capacity for projects, project demand
    • Communication for organizational change

    Deliverables Completed

    • Optimized Project Intake, Approval, and Prioritization Process
    • Documentation of the optimized process in the form of a Standard Operating Procedure
    • Project valuation criteria, developed with Project Value Scorecard Development Tool and implemented through the Project Intake and Prioritization Tool
    • Standardized project request form with right-sized procedural friction
    • Standard for project level classification, implemented through the Project Intake Classification Matrix
    • Toolbox of deliverables for capturing information developed to inform decision makers for approval: Benefits Commitment Form, Technology Assessment Tool, Business Case Templates
    • Process pilot plan
    • Communication plan for organizational change, driven by a thorough analysis of change impacts on key stakeholders using the Intake and Prioritization Impact Analysis Tool

    Research contributors and experts

    Picture of Kiron D. Bondale

    Kiron D. Bondale, PMP, PMI - RMP

    Senior Project Portfolio & Change Management Professional

    A placeholder photo is shown here.

    Scot Ganshert, Portfolio Group Manager

    Larimer County, CO

    Picture of Garrett McDaniel

    Garrett McDaniel, Business Analyst II – Information Technology

    City of Boulder, CO

    A placeholder photo is shown here.

    Joanne Pandya, IT Project Manager

    New York Property Insurance Underwriters

    Picture of Jim Tom.

    Jim Tom, CIO

    Public Health Ontario

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    Boston Consulting Group. “Winning Through Project Portfolio Management: the Practitioners’ Perspective.” PMI, 2015. Web.

    Bradberry, Travis. “Why The 8-Hour workday Doesn’t Work.” Forbes, 7 Jun 2016. Web.

    Cook, Scott. Playbook: Best Practices. Business Week

    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.

    Epstein, Dan. “Project Initiation Process: Part Two.” PM World Journal. Vol. IV, Issue III. March 2015. Web.

    Evans, Lisa. “The Exact Amount of Time You Should Work Every Day.” Fast Company, 15 Sep. 2014. Web.

    Madison, Daniel. “The Five Implementation Options to Manage the Risk in a New Process.” BPMInstitute.org. n.d. Web.

    Merkhofer, Lee. “Improve the Prioritization Process.” Priority Systems, n.d. Web.

    Miller, David, and Mike Oliver. “Engaging Stakeholder for Project Success.” PMI, 2015. Web.

    Mind Tools. “Kelley and Conner’s Emotional Cycle of Change.” Mind Tools, n.d. Web.

    Mochal, Jeffrey and Thomas Mochal. Lessons in Project Management. Appress: September 2011. Page 6.

    Newcomer, Eric. “Getting Decisions to Stick.” Standish Group PM2go, 20 Oct 2017. Web.

    “PMI Today.” Newtown Square, PA: PMI, Oct 2017. Web.

    Project Management Institute. “Standard for Portfolio Management, 3rd ed.” Newtown Square, PA: PMI, 2013.

    Project Management Institute. “Pulse of the Profession 2017: Success Rates Rise.” PMI, 2017. Web.

    Transparent Choice. “Criteria for Project Prioritization.” n.p., n.d. Web.

    University of New Hampshire (UNH) Project Management Office. “University of New Hampshire IT Intake and Selection Process Map.” UNH, n.d. Web.

    Ward, John. “Delivering Value from Information Systems and Technology Investments: Learning from Success.” Information Systems Research Centre. August 2006. Web.

    The State of Black Professionals in Tech

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    • The experience of Black professionals in IT differs from their colleagues.
    • Job satisfaction is also lower for Black IT professionals.
    • For organizations to gain from the benefits of diversity, equity, and inclusion, they need to ensure they understand the landscape for many Black professionals.

    Our Advice

    Critical Insight

    • As an IT leader, you can make a positive difference in the working lives of your team; this is not just the domain of HR.
    • Employee goals can vary depending on the barriers that they encounter. IT leaders must ensure they have an understanding of unique employee needs to better support them, increasing their ability to recruit and retain.
    • Improve the experience of Black IT professionals by ensuring your organization has diversity in leadership and supports mentorship and sponsorship.

    Impact and Result

    • Use the data from Info-Tech’s analysis to inform your DEI strategy.
    • Learn about actions that IT leaders can take to improve the satisfaction and career advancement of their Black employees.

    The State of Black Professionals in Tech Research & Tools

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

    1. The State of Black Professionals in Tech Report – A report providing you with advice on barriers and solutions for leaders of Black employees.

    IT leaders often realize that there are barriers impacting their employees but don’t know how to address them. This report provides insights on the barriers and actions that can help improve the lives of Black professionals in technology.

    • The State of Black Professionals in Tech Report

    Infographic

    Further reading

    The State of Black Professionals in Tech

    Keep inclusion at the forefront to gain the benefits from diversity.

    Analysts' Perspective

    The experience of Black professionals in technology is unique.

    Diversity in tech is not a new topic, and it's not a secret that technology organizations struggle to attract and retain Black employees. Ever since the early '90s, large tech organizations have been dealing with public critique of their lack of diversity. This topic is close to our hearts, but unfortunately while improvements have been made, progress is quite slow.

    In recent years, current events have once again brought diversity to the forefront for many organizations. In addition, the pandemic along with talent trends such as "the great resignation" and "quiet quitting" and preparations for a recession have not only impacted diversity at large but also Black professionals in technology. Our previous research has focused on the wider topic of Recruiting and Retaining People of Color in Tech, but we've found that the experiences of persons of color are not all the same.

    This study focuses on the unique experience of Black professionals in technology. Over 600 people were surveyed using an online tool; interviews provided additional insights. We're excited to share our findings with you.

    This is a picture of Allison Straker This is an image of Ugbad Farah

    Allison Straker
    Research Director
    Info-Tech Research Group

    Ugbad Farah
    Research Director
    Info-Tech Research Group

    Demographics

    In October 2021, we launched a survey to understand what the Black experience is like for people in technology. We wanted and received a variety of responses which would help us to understand how Black technology professionals experienced their working world. We received responses from 633 professionals, providing us with the data for this report.

    For more information on our survey demographics please see the appendix at this end of this report.

    A pie chart showing 26% black and 74% All Other

    26% of our respondents either identified as Black or felt the world sees them as Black.

    Professionals from various countries responded to the survey:

    • Most respondents were born in the US (52%), Canada (14%), India (14%), or Nigeria (4%).
    • Most respondents live in the US (56%), Canada (25%), Nigeria (2%), or the United Kingdom (2%).

    Companies with more diversity achieve more revenue from innovation

    Organizations do better and are more innovative when they have more diversity, a key ingredient in an organization's secret sauce.
    Organizations also benefit from engaged employees, yet we've seen that organizations struggle with both. Just having a certain number of diverse individuals is not enough. When it comes to reaping the benefits of diversity, organizations can flourish when employees feel safe bringing their whole selves to work.

    45% Innovation Revenue by Companies With Above-Average Diversity Scores
    26%

    Innovation Revenue by Companies With Below-Average Diversity Scores

    (Chart source: McKinsey, 2020)


    Companies with higher employee engagement experience 19.2% higher earnings.

    However, those with lower employee engagement experience 32.7% lower earnings.
    (DecisionWise, 2020)

    If your workforce doesn't reflect the community it serves, your business may be missing out on the chance to find great employees and break into new and growing markets, both locally and globally.
    Diversity makes good business sense.
    (Business Development Canada, 2023)

    A study about Black professionals

    Why is this about Black professionals and not other diverse groups?

    While there are a variety of diversity dimensions, it's important to understand what makes up a "multicultural workforce." There is more to diversity than gender, race, and ethnicity. Organizations need to understand that there is diversity within these groups and Black professionals have their own unique experience when it comes to entering and navigating tech that needs to be addressed.

    This image contains two bar graphs from the Brookfield Institute for Innovation and Entrepreneurship. They show the answers to two questions, sorted by the following categories: Black; Non-White; Asian; White. The questions are as follows: I feel comfortable to voice my opinion, even when it differs from the group opinion; I am part of the decision-making process at work.

    (Brookfield Institute for Innovation and Entrepreneurship, 2019)

    The solutions that apply to Black professionals are not only beneficial for Black employees but for all. While all demographics are unique, the solutions in this report can support many.

    Unsatisfied and underrepresented

    Less Black professionals responded as "satisfied" in their IT careers. The question is: How do we mend the Gap?

    Percentage of IT Professionals Who Reported Being Very Satisfied in Their Current Role

    • All Other Professionals: 34%
    • Black Professionals: 23%

    Black workers are underrepresented in most professional roles, especially computer and math Occupations

    A bar graph showing representation of black workers in the total workforce compared to computer and mathematical science occupations.

    The gap in satisfaction

    What's Important?

    Our research suggests that the differences in satisfaction among ethnic groups are related to differences in value systems. We asked respondents to rank what's important, and we explored why.

    Non-Black professionals rated autonomy and their manager working relationships as most important.

    For Black professionals, while those were important, #1 was promotion and growth opportunities, ranked #7 by all other professionals. This is a significant discrepancy.

    Recognition of my work/accomplishments also was viewed significantly differently, with Black professionals ranking it low on the list at #7 and all other professionals considering it very important at #3.

    All Other Professionals

    Black Professionals

    Two columns, containing metrics of satisfaction rated by Black Professionals, and All Other Professionals.

    Maslow's Hierarchy of Needs applies to job satisfaction

    In Maslow's hierarchy, it is necessary for people to achieve items lower on the hierarchy before they can successfully pursue the higher tiers.

    An image of Maslow's Hierarchy of Needs modified to apply to Job Satisfaction

    Too many Black professionals in tech are busy trying to achieve some of the lower parts of the hierarchy; it is stopping them from achieving elements higher up that can lead to job satisfaction.

    This can stop them from gaining esteem, importance, and ultimately, self-actualization. The barriers that impact safety and social belonging happen on a day-to-day basis, and so the day-to-day lives of Black professionals in tech can look very different from their counterparts.

    There are barriers that hinder and solutions that support employees

    An image showing barriers to success An image showing Actions for Success.
    There are various barriers that increase the likelihood for Black professionals to focus on the lower end of the needs hierarchy:

    These are among some of the solutions that, when layered, can support Black professionals in tech in moving up the needs hierarchy.

    Focusing on these actions can support Black professionals in achieving much needed job satisfaction.

    What does this mean?

    The minority experience is not a monolith

    The barriers that Black professionals encounter aren't limited to the same barriers as their colleagues, and too often this means that they aren't in a position to grow their careers in a way that leads to job satisfaction.

    There is a 11% gap between the satisfaction of Black professionals and their peers.

    Early Steps:
    Take time to understand the Black experience.

    As leaders, it's important to be aware that employee goals vary depending on the barriers they're battling with.

    Intermediate:
    If Black employees don't have strong relationships, networks, and mentorships it becomes increasingly difficult to navigate the path to upward mobility.

    As a leader, you can look for opportunities to bridge the gap on these types of conversations.

    Advanced:
    Black professionals in tech are not advancing like their counterparts.

    Creating clear career paths will not only benefit Black employees but also support your entire organization.

    Key metrics:

    • Engagement
    • Committed Executive Leadership
    • Development Opportunities
    • Organizational Programs

    Black respondents are significantly more likely to report barriers to their career advancement

    Common barriers

    Black professionals, like their colleagues, encounter barriers as they try to advance their careers. The barriers both groups encounter include microaggressions, racism, ageism, accessibility issues, sexual orientation, bias due to religion, lack of a career-supported network, gender bias, family status bias, and discrimination due to language/accents.

    What tops the list

    Microaggressions and racism are at the top of these barriers, but Black professionals also deal with other barriers that their colleagues may experience, such as gender-based bias, accessibility issues, religion, and more.

    One of these barriers alone can be difficult to deal with but when they are compounded it can be very difficult to navigate through the working environment in tech.

    A graph charting the impact of the common barriers

    What are microaggressions?

    Microaggression

    A statement, action, or incident regarded as an instance of indirect, subtle, or unintentional discrimination against members of a marginalized group such as a racial or ethnic minority.

    (Oxford Languages, 2023)

    Why are they significant?

    These things may seem innocent enough but the messaging that is received and the lasting impression is often far from it.

    Our research shows that racism and discrimination contribute to poor mental health among Black professionals.

    Examples

    • You're so articulate!
    • How do you always have different hair, can I touch it?
    • Where are you really from?
    • I don't see color.
    • I believe the most qualified person should get the job; everyone can succeed in this society if they work hard enough.

    "The experience of having to question whether something happened to you because of your race or constantly being on edge because your environment is hostile can often leave people feeling invisible, silenced, angry, and resentful."
    Dr. Joy Bradford,
    clinical Psychologist, qtd. In Pfizer

    It takes some time to get in the door

    For too many Black respondents, It took Longer than their peers to Find Technology Jobs.

    Both groups had some success finding jobs in "no time" – however, there was a difference. Thirty-four percent of "all others" found their jobs quickly, while the numbers were less for Black professionals, at 26%. There was also a difference at the opposite end of the spectrum. For 29% of Black professionals, it took seven months or longer to find their IT job, while that number is only 19% for their peers.

    .a graph showing time taken for respondents sorted by black; and all other.

    This points to the need for improvements in recruitment and career advancement.

    29% of Black respondents said that it took them 7 months or longer to find their technology job.

    Compared to 19% of all other professionals that selected the same response.

    And once they're in, it's difficult to advance

    Black Professionals are not Advancing as Quickly as their Colleagues. Especially when you look at their Experience.

    Our research shows that compared to all other ethnicities; Black participants were 55% more likely to report that they had no career advancement/promotion in their career. There is a bigger percentage of Black professionals who have never received a promotion; there's also a large number of Black professionals who have been working a significant amount time in the same role without a promotion.

    .Career Advancement

    A graph showing career advancement for the categories: Black and All Other.

    Black participants were 55% more likely to report that they had had no career advancement/promotion in their career.

    No advancement

    A graph showing the number of respondents who reported no career advancement over time, for the categories: Black; and All Other.

    There's a high cost to lack of engagement

    When employees feel disillusioned with things like career advancement and microaggressions, they often become disengaged. When you continuously have to steel yourself against microaggressions, racism, and other barriers, it prevents you from bringing your whole self to the office. The barriers can lead to what's been coined as "emotional tax." An emotional tax is the experience of feeling different from colleagues because of your inherent diversity and the associated negative effects on health, wellbeing, and the ability to thrive at work.

    Earnings of companies with higher employee engagement

    19.2%

    Earnings of companies with lower employee engagement

    -32.7%

    (DecisionWise, 2020)

    "I've conditioned myself for the corporate world, I don't bring my authentic self to work."
    Anonymous Interview Subject

    Lack of engagement also costs the organization in terms of turnover, something many organizations today are struggling with how to address. Organizations want to increase the ability of the workforce to remain in the organization. For Black employees, this gets harder when they're not engaged and they're the only one. When the emotional tax gets to be too much, this can lead to turnover. Turnover not only costs companies billions in profits, it also negatively impacts leadership diversity. It's difficult to imagine career growth when you don't see anyone that looks like you at the top. It is a challenge to see your future when there aren't others that you can relate to at top levels in the organization, leading to one of our interview subjects to muse, "How long can I last?"

    "Being Black in tech can be hard on your mental health. Your mind is constantly wondering, 'how long can I last?' "
    Anonymous Interview Subject

    Fewer Black professionals feel like they can be their authentic selves at work

    Authentic vs. Successes

    For many Black professionals, "code-switching," or altering the way one speaks and acts depending on context, becomes the norm to make others more comfortable. Many feel that being authentic and succeeding in the workplace are mutually exclusive.

    Programs and Resources

    We asked respondents "What's in place to build an inclusive culture at your company?" Most respondents (51% and 45%) reported that there were employee resource groups at their organizations.

    Do you feel you can be your authentic self at work?

    A bar graph showing 86% for All Other Professions, and 75% for Black Professionals

    A bar graph showing responses to the question What’s in place to build an inclusive culture at your company.

    What can be done?

    An image showing actions for success.

    There are various actions that organizations can take to help address barriers.

    It's important to ensure these are not put in as band-aid solutions but that they are carefully thought out and layered.

    Our findings demonstrate that remote work, career development, and DEI programs along with mentorship and diverse leadership are strong enablers of professional satisfaction. An unfortunate consequence, if professionals are not nurtured, is that we risk losing much needed talent to self-employment or to other organizations.

    There are several solutions

    Respondents were asked to distribute points across potential solutions that could lead to job satisfaction. The ratings showed that there were common solutions that could be leveraged across all groups.

    Respondents were asked what solutions were valuable for their career development.

    All groups were mostly aligned on the order of the solutions that would lead to career satisfaction; however, Black professionals rated the importance of employee resource groups as higher than their colleagues did.

    An image showing how respondents rate a number of categories, sorted into Ratings by Black Professionals, and Ratings by Other Professionals

    Mentorship and sponsorship are seen as key for all employees, as is of course training.

    However, employee resource groups (ERGs) were rated significantly higher for Black professionals and discussions around diversity were higher for their colleagues. This may be because other groups feel a need to learn more about diversity, whereas Black professionals live this experience on a day-to day basis, so it's not as critical for them.

    Double the number of satisfied Black professionals through mentorship and sponsorship

    a bar graph showing the number of very satisfied people with and without mentors/sponsors.

    Mentorship and sponsorship help to close the job satisfaction gap for Black IT professionals. The percentage of satisfied Black employees almost doubles when they have a mentor or sponsorship, moving the satisfaction rate to closer to all other colleagues.

    As leaders, you likely benefit from a few different advisors, and your staff should be able to benefit in the same way.

    They can have their own personal board of advisors, both inside and outside of your organization, helping them to navigate the working world in IT.

    To support your staff, provide guidance and coaching to internal mentors so that they can best support employees, and ensure that your organizational culture supports relationship building and trust.

    While all are critical, coaching, mentoring, and sponsorship are not the same

    Coaching

    Performance-driven guidance geared to support the employee with on-the-job performance. This could be a short-term relationship.

    Mentorship

    A relationship where the mentor provides guidance, information, and expertise to support the long-term career development of the mentee.

    Sponsorship

    The act of advocating on the behalf of another for a position, promotion, development opportunity, etc. over a longer period.

    For more information on setting up a mentorship program, see Optimize the Mentoring Program to Build a High Performing Learning Organization.

    On why mentorship and sponsorship are important:

    "With some degree of mentorship or sponsorship, it means that your ability to thrive or to have a positive experience in organizations increases substantially.

    Mentorship and sponsorship are very often the lynchpin of someone being successful and sticking with an organization.

    Sponsorship is an endorsement to other high-level stakeholders who very often are the gatekeepers of opportunity. Sponsors help to shepherd you through the gate."

    An Image of Carlos Thomas

    Carlos Thomas
    Executive Councilor, Info-Tech Research Group

    What is an employee resource group?

    IT Professionals rated ERGs as the third top driver of success at work

    Employee resource groups enable employees to connect in their workplace based on shared characteristics or life experiences.

    ERGs generally focus on providing support, enhancing career development, and contributing to personal development in the work environment. Some ERGs provide advice to the organization on how they can support their diverse employees.

    As leaders, you should support and encourage the formation of ERGs in your organization.

    What each ERG does will vary according to the needs of employees in your organization. Your role is to enable the ERGs as they are created and maintained.

    On setting up and leveraging employee resource groups:

    "Employee resource groups, when leveraged in an authentically intentional way, can be the some of the most impactful stakeholders in the development and implementation of the organizational diversity, equity, and inclusion strategy.

    ERGs are essential to the development of policies, programs, and initiatives that address the needs of equity-seeking groups and are key to driving organizational culture and employee wellbeing, in addition to hiring and recruitment.

    ERGs must be set up for success by having adequate resources to do the work, which includes adequate budgets, executive sponsorship, training, support, and capacity to do the work. According to a Great Place To Work survey (2021), 50% of ERGs identified the need for adequate resources as a challenge for carrying out the work.:"

    An image of Cinnamon Clark

    CINNAMON CLARK
    PRACTICE LEAD, DIVERSITY, EQUITY AND INCLUSION services, MCLEAN & CO

    There is a gap when it comes to diversity in leadership

    Representation at leadership levels is especially stagnant.

    Black Americans comprise 13.6% of the US population
    (2022 data from the US Census Bureau)

    And yet only 5.9% of the country's CEOs are Black, with only 6 (1%) at the top of Fortune 500 companies.
    (2021 data from the Bureau of Labor Statistics and Fortune.com)

    I've never worked for a company that has Black executives. It's difficult to envision long-term growth with an organization when you don't see yourself represented in leadership.
    – Anonymous Interview Subject

    Having diversity in your leadership team doubles satisfaction

    An image of a bar graph showing satisfaction for those who do, and do not see diversity in their company's leadership.

    Our research shows that Black professionals are more satisfied in their role when they see leaders that look like them.

    Satisfaction of other professionals is not as impacted by diversity in leadership as for Black professionals. Satisfaction doubles in organizations that have a diverse leadership team.

    To reap the benefits from diversity, we need to ensure diversity is not just in entry or mid-level positions and provide employees an opportunity to see diversity in their company's leadership.

    On the need for diversity in leadership:

    "As a Black professional leader, it's not lost on me that I have a responsibility. I have to demonstrate authenticity, professionalism, and exemplary behavior that others can mimic. And I must also showcase that there are possibilities for those coming up in their career. I feel very grateful that I can bestow onto others my knowledge, my experience, my journey, and the tips that I've used to help bring me to be where I am.
    (Having Black leaders in an organization) demonstrates that there is talent across the board, that there are all types of women and people with proficiencies. What it brings to the table is a difference in thoughts and experience.
    A person like myself, sitting at the table, can bring a unique perspective on employee behavior and employee impact. CCL is an organization focused on equity, diversity, and inclusion; for sure having me at the table and others that look like me at the table demonstrates to the public an organization that's practicing what it preaches."

    An image of C. Fara Francis

    C. Fara Francis
    CIO, Center for creative leadership

    Work from home

    While all groups have embraced the work-from-home movement, many Black professionals find it reduces the impact of racial incidents in the workplace.

    Percentage of employees who experienced positive changes in motivation after working remotely.

    Black: 43%; All Other: 43%

    I have to guard and protect myself from experiencing and witnessing racism every day. I am currently working remotely, and I can say for certain my mood and demeanor have improved. Not having to decide if I should address a racist comment or action has made my day easier.
    Source: Slate, 2022

    Remote work significantly led to feelings of better chances for career advancement

    Survey respondents were asked about the positive and negative changes they saw in their interactions and experiences with remote work. Black employees and their colleagues replied similarly, with mostly positive experiences.

    While both groups enjoyed better chances for career advancement, the difference was significantly higher for Black professionals.

    An image of a series of bar graphs showing the effects of remote work on a number of factors.

    Reasons for Self-Employment:

    More Black professionals have chosen self-employment than their colleagues.

    All Other: 26%; Black: 30%.

    A bar graph showing rankings for reasons for self employment, sorted by Black and All Other.

    The biggest reasons for both groups in choosing self-employment were for better pay, career growth, and work/life balance.

    While the desire for better pay was the highest reason for both groups, for engaged employees salary is a lower priority than other concerns (Adecco Group's Global Workforce of the Future report). Consider salary in conjunction with career growth, work/life balance, and the variety in the work that your employees have.

    A bar graph showing rankings for reasons for self employment, sorted by Black and All Other.

    If we don't consider our Black employees, not only do we risk them leaving the organization, but they may decide to just work for themselves.

    Most professionals believe their organizations are committed to diversity, equity, and inclusion

    38% of all respondents believe their organizations are very committed to DEI
    49% believe they are somewhat committed
    9% feel they are not committed
    4% are unsure

    Make sure supports are in place to help your employees grow in their careers:

    Leadership
    IT Leadership Career Planning Research Center

    Diversity and Inclusion Tactics
    IT Diversity & Inclusion Tactics

    Employee Development Planning
    Implement an IT Employee Development Plan

    Belief in your organization's diversity, equity, and inclusion efforts isn't consistent across groups: Make sure actions are seen as genuine

    While organization's efforts are acknowledged, Black professionals aren't as optimistic about the commitment as their peers. Make sure that your programs are reaching the various groups you want to impact, to increase the likelihood of satisfaction in their roles.

    SATISFACTION INCREASES IN BOTH BLACK AND NON-BLACK PROFESSIONALS

    When they believe in their company's commitment to diversity, equity. and inclusion.

    Of those who believe in their organization's commitment, 61% of Black professionals and 67% of non-Black professionals are very satisfied in their roles.

    BELIEVE THEIR ORGANIZATION IS NOT COMMITTED TO DEI

    BELIEVE THEIR ORGANIZATION IS VERY COMMITTED TO DEI

    NON-BLACK PROFESSIONALS

    8%

    41%

    BLACK PROFESSIONALS

    13%

    30%

    Recommendations

    It's important to understand the current landscape:

    • The barriers that Black employees often face.
    • The potential solutions that can help close the gap in employee satisfaction.

    We recognize that resolving this is not easy. Although senior executives are recognizing that a diverse set of experiences, perspectives, and backgrounds is crucial to fostering innovation and competing on the global stage, organizations often don't take the extra step to actively look for racialized talent, and many people still believe that race doesn't play an important part in an individual's ability to access opportunities.

    Look at a variety of solutions that you can implement within your organization; layering solutions is the key to driving business diversity. Always keep in mind that diversity is not a monolith, that the experiences of each demographic varies.

    Info-Tech resources

    Appendix

    About the research

    Diversity in tech survey

    As part of the research process for the State of Black Tech Report, Info-Tech Research Group conducted an open online survey among its membership and wider community of professionals. The survey was fielded from October 2021 to April 2022, collecting 633 responses.

    An image of Page 1 of the Appendix.

    Current Position

    An image of Page 2 of the Appendix.

    Education and Experience

    Education was fairly consistent across both groups, with a few exceptions: more Black professionals had secondary school (9% vs. 4%) and more Black professionals had Doctorate degrees (4% vs. 2%).

    We had more non-Black respondents with 20+ years of experience (31% vs. 19%) and more Black respondents with less than 1 year of experience (8% vs. 5%) – the rest of the years of experience were consistent across the two groups.

    An image of Page 3 of the Appendix.

    It is important to recognize that people are often seen by "the world" as belonging to a different race or set of races than what they personally identify as. Both aspects impact a professional's experience in the workplace.

    An image of Page 4 of the Appendix.

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    CIO Priorities 2023

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    • Parent Category Name: IT Strategy
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    CIOs are facing these challenges in 2023:

    • Trying to understand the implications of external trends.
    • Determining what capabilities are most important to support the organization.
    • Understanding how to help the organization pursue new opportunities.
    • Preparing to mitigate new sources of organizational risk.

    Our Advice

    Critical Insight

    • While functional leaders may only see their next move, as head of the organization with a complete view of all the pieces, the CIO has full context awareness. It's up to them to assess their gaps, consider the present scenario, and then make their next move.
    • Each priority carries new opportunities for organizations that pursue them.
    • There are also different risks to mitigate as each priority is explored.

    Impact and Result

    • Inform your IT strategy for the year ahead.
    • Identify which capabilities you need to improve.
    • Add initiatives that support your priorities to your roadmap.

    CIO Priorities 2023 Research & Tools

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

    1. CIO Priorities 2023 Report – Read about the priorities on IT leaders' agenda.

    Understand the five priorities that will help navigate the opportunities and risks of the year ahead.

    • CIO Priorities 2023 Report

    Infographic

     

    Further reading

    CIO Priorities 2023

    Engage cross-functional leadership to seize opportunity while protecting the organization from volatility.

    Analyst Perspective

    Take a full view of the board and use all your pieces to win.

    In our Tech Trends 2023 report, we called on CIOs to think of themselves as chess grandmasters. To view strategy as playing both sides of the board, simultaneously attacking the opponent's king while defending your own. In our CIO Priorities 2023 report, we'll continue with that metaphor as we reflect on IT's capability to respond to trends.

    If the trends report is a study of the board state that CIOs are playing with, the priorities report is about what move they should make next. We must consider all the pieces we have at our disposal and determine which ones we can afford to use to seize on opportunity. Other pieces are best used by staying put to defend their position.

    In examining the different capabilities that CIOs will require to succeed in the year ahead, it's apparent that a siloed view of IT isn't going to work. Just like a chess player in a competitive match would never limit themselves to only using their knights or their rooks, a CIO's responsibility is to deploy each of their pieces to win the day. While functional leaders may only see their next move, as head of the organization with a complete view of all the pieces, the CIO has full awareness of the board state.

    It's up to them to assess their gaps, consider the present scenario, and then make their next move.

    This is a picture of Brian Jackson

    Brian Jackson
    Principal Research Director, Research – CIO
    Info-Tech Research Group

    CIO Priorities 2023 is informed by Info-Tech's primary research data of surveys and benchmarks

    Info-Tech's Tech Trends 2023 report and State of Hybrid Work in IT: A Trend Report inform the externalities faced by organizations in the year ahead. They imply opportunities and risks that organizations face. Leadership must determine if they will respond and how to do so. CIOs then determine how to support those responses by creating or improving their IT capabilities. The priorities are the initiatives that will deliver the most value across the capabilities that are most in demand. The CIO Priorities 2023 report draws on data from several different Info-Tech surveys and diagnostic benchmarks.

    2023 Tech Trends and Priorities Survey; N=813 (partial), n=521 (completed)
    Info-Tech's Trends and Priorities 2023 Survey was conducted between August 9 and September 9, 2022. We received 813 total responses with 521 completed surveys. More than 90% of respondents work in IT departments. More than 84% of respondents are at a manager level of seniority or higher.

    2023 The State of Hybrid Work in IT Survey; N=518
    The State of Hybrid Work in IT Survey was conducted between July 11 and July 29 and received 518 responses. Nine in ten respondents were at a manager level of seniority or higher.

    Every organization will have its own custom list of priorities based on its internal context. Organizational goals, IT maturity level, and effectiveness of capabilities are some of the important factors to consider. To provide CIOs with a starting point for their list of priorities for 2023, we used aggregate data collected in our diagnostic benchmark tools between August 1, 2021, and October 31, 2022.

    Info-Tech's CEO-CIO Alignment Program is intended to be completed by CIOs and their supervisors (CEO or other executive position [CxO]) and will provide the average maturity level and budget expectations (N=107). The IT Management and Governance Diagnostic will provide the average capability effectiveness and importance ranking to CIOs (N=271). The CIO Business Vision Diagnostic will provide stakeholder satisfaction feedback (N=259).

    The 2023 CIO priorities are based on that data, internal collaboration sessions at Info-Tech, and external interviews with CIOs and subject matter experts.

    Build IT alignment

    Assess your IT processes

    Determine stakeholder satisfaction

    Most IT departments should aim to drive outcomes that deliver better efficiency and cost savings

    Slightly more than half of CIOs using Info-Tech's CEO-CIO Alignment Program rated themselves at a Support level of maturity in 2022. That aligns with IT professionals' view of their organizations from our Tech Trends and Priorities Survey, where organizations are rated at the Support level on average. At this level, IT departments can provide reliable infrastructure and support a responsive IT service desk that reasonably satisfies stakeholders.

    In the future, CIOs aspire to attain the Transform level of maturity. Nearly half of CIOs select this future state in our diagnostic, indicating a desire to deliver reliable innovation and lead the organization to become a technology-driven firm. However, we see that fewer CxOs aspire for that level of maturity from IT. CxOs are more likely than CIOs to say that IT should aim for the Optimize level of maturity. At this level, IT will help other departments become more efficient and lower costs across the organization.

    Whether a CIO is aiming for the top of the maturity scale in the future or not, IT maturity is achieved one step at a time. Aiming for outcomes at the Optimize level will be a realistic goal for most CIOs in 2023 and will satisfy many stakeholders.

    Current and future state of IT maturity

    This image depicts a table showing the Current and future states of IT maturity.

    Trends indicate a need to focus on leadership and change management

    Trends imply new opportunities and risks that an organization must decide on. Organizational leadership determines if action will be taken to respond to the new external context based on its importance compared to current internal context. To support their organizations, IT must use its capabilities to deliver on initiatives. But if a capability's effectiveness is poor, it could hamper the effort.

    To determine what capabilities IT departments may need to improve or create to support their organizations in 2023, we conducted an analysis of our trends data. Using the opportunities and risks implied by the Tech Trends 2023 report and the State of Hybrid Work in IT: A Trend Report, we've determined the top capabilities IT will need to respond. Capabilities are defined by Info-Tech's IT Management and Governance Framework.

    Tier 1: The Most Important Capabilities In 2023

    Enterprise Application Selection & Implementation

    Manage the selection and implementation of enterprise applications, off-the-shelf software, and software as a service to ensure that IT provides the business with the most appropriate applications at an acceptable cost.

    Effectiveness: 6.5; Importance: 8.8

    Leadership, Culture, and Values

    Ensure that the IT department reflects the values of your organization. Improve the leadership skills of your team to generate top performance.

    Effectiveness: 6.9; Importance: 9

    Data Architecture

    Manage the business' databases, including the technology, the governance processes, and the people that manage them. Establish the principles, policies, and guidelines relevant to the effective use of data within the organization.

    Effectiveness: 6.3; Importance: 8.8

    Organizational Change Management

    Implement or optimize the organization's capabilities for managing the impact of new business processes, new IT systems, and changes in organizational structure or culture.

    Effectiveness: 6.1; Importance: 8.8

    External Compliance

    Ensure that IT processes and IT-supported business processes are compliant with laws, regulations, and contractual requirements.

    Effectiveness: 7.4; Importance: 8.8

    Info-Tech's Management and Diagnostic Benchmark

    Tier 2: Other Important Capabilities In 2023

    Ten more capabilities surfaced as important compared to others but not as important as the capabilities in tier 1.

    Asset Management

    Track IT assets through their lifecycle to make sure that they deliver value at optimal cost, remain operational, and are accounted for and physically protected. Ensure that the assets are reliable and available as needed.

    Effectiveness: 6.4; Importance: 8.5

    Business Intelligence and Reporting

    Develop a set of capabilities, including people, processes, and technology, to enable the transformation of raw data into meaningful and useful information for the purpose of business analysis.

    Effectiveness: 6.3; Importance: 8.8

    Business Value

    Secure optimal value from IT-enabled initiatives, services, and assets by delivering cost-efficient solutions and services and by providing a reliable and accurate picture of costs and benefits.

    Effectiveness: 6.5; Importance: 8.7

    Cost and Budget Management

    Manage the IT-related financial activities and prioritize spending through the use of formal budgeting practices. Provide transparency and accountability for the cost and business value of IT solutions and services.

    Effectiveness: 6.5; Importance: 8.8

    Data Quality

    Put policies, processes, and capabilities in place to ensure that appropriate targets for data quality are set and achieved to match the needs of the business.

    Effectiveness: 6.4; Importance: 8.9

    Enterprise Architecture

    Establish a management practice to create and maintain a coherent set of principles, methods, and models that are used in the design and implementation of the enterprise's business processes, information systems, and infrastructure.

    Effectiveness: 6.8; Importance: 8.8

    IT Organizational Design

    Set up the structure of IT's people, processes, and technology as well as roles and responsibilities to ensure that it's best meeting the needs of the business.

    Effectiveness: 6.8; Importance: 8.8

    Performance Measurement

    Manage IT and process goals and metrics. Monitor and communicate that processes are performing against expectations and provide transparency for performance and conformance.

    Effectiveness: 6; Importance: 8.4

    Stakeholder Relations

    Manage the relationship between the business and IT to ensure that the stakeholders are satisfied with the services they need from IT and have visibility into IT processes.

    Effectiveness: 6.7; Importance: 9.2

    Vendor Management

    Manage IT-related services provided by all suppliers, including selecting suppliers, managing relationships and contracts, and reviewing and monitoring supplier performance.

    Effectiveness: 6.6; Importance: 8.4

    Defining the CIO Priorities for 2023

    Understand the CIO priorities by analyzing both how CIOs respond to trends in general and how a specific CIO responded in the context of their organization.

    This is an image of the four analyses: 1: Implications; 2: Opportunities and risks; 3: Case examples; 4: Priorities to action.

    The Five CIO Priorities for 2023

    Engage cross-functional leadership to seize opportunity while protecting the organization from volatility.

    1. Adjust IT operations to manage for inflation
      • Business Value
      • Vendor Management
      • Cost and Budget Management
    2. Prepare your data pipeline to train AI
      • Business Intelligence and Reporting
      • Data Quality
      • Data Architecture
    3. Go all in on zero-trust security
      • Asset Management
      • Stakeholder Relations
      • External Compliance
    4. Engage employees in the digital age
      • Leadership, Culture, and Values
      • Organizational Change Management
      • Enterprise Architecture
    5. Shape the IT organization to improve customer experience
      • Enterprise Application Selection & Implementation
      • Performance Measurement
      • IT Organizational Design

    Adjust IT operations to manage for inflation

    Priority 01

    • APO06 Cost and Budget Management
    • APo10 Vendor Management
    • EDM02 Business Value

    Recognize the relative impact of higher inflation on IT's spending power and adjust accordingly.

    Inflation takes a bite out of the budget

    Two-thirds of IT professionals are expecting their budgets to increase in 2023, according to our survey. But not every increase is keeping up with the pace of inflation. The International Monetary Fund forecasts that global inflation rose to 8.8% in 2022. It projects it will decline to 6.5% in 2023 and 4.1% by 2024 (IMF, 2022).

    CIOs must account for the impact of inflation on their IT budgets and realize that what looks like an increase on paper is effectively a flat budget or worse. Applied to our survey takers, an IT budget increase of more than 6.5% would be required to keep pace with inflation in 2023. Only 40% of survey takers are expecting that level of increase. For the 27% expecting an increase between 1-5%, they are facing an effective decrease in budget after the impact of inflation. Those expecting no change in budget or a decrease will be even worse off.

    Looking ahead to 2023, how do you anticipate your IT spending will change compared to spending in 2022?

    Global inflation estimates by year

    2022 8.8%
    2023 6.5%
    2024 4.1%

    International Monetary Fund, 2022

    CIOs are more optimistic about budgets than their supervisors

    Data from Info-Tech's CEO-CIO Alignment Diagnostic benchmark also shows that CIOs and their supervisors are planning for increases to the budget. This diagnostic is designed for a CIO to use with their direct supervisor, whether it's the CEO or otherwise (CxO). Results show that on average, CIOs are more optimistic than their supervisors that they will receive budget increases and headcount increases in the years ahead.

    While 14% of CxOs estimated the IT budget would see no change or a decrease in the next three to five years, only 3% of CIOs said the same. A larger discrepancy is seen in headcount, where nearly one-quarter of CXOs estimated no change or decrease in the years ahead, versus only 10% of CIOs estimating the same.

    When we account for the impact of inflation in 2023, this misalignment between CIOs and their supervisors increases. When adjusting for inflation, we need to view the responses projecting an increase of between 1-5% as an effective decrease. With the inflation adjustment, 26% of CXOs are predicting IT budgets to stay flat or see a decrease compared to only 10% of CIOs.

    CIOs should consider how inflation has affected their projected spending power over the past year and take into account projected inflation rates over the next couple of years. Given that the past decade has seen inflation rates between 2-3%, the higher rates projected will have more of an impact on organizational budgets than usual.

    Expect headcount to stay flat or decline over 3-5 years

    CIO: 10%; CXO: 24%

    IT budget expectations to stay flat or decrease before inflation

    CIO: 13.6 %; CXO: 3.2%

    IT budget expectations to stay flat or decrease adjusted for inflation

    CIO: 25.8%; CXO: 9.7%

    Info-Tech's CEO-CIO Alignment Program

    Opportunities

    Appoint a "cloud economist"

    Organizations that migrated from on-premises data centers to infrastructure as a service shifted their capital expenditures on server racks to operational expenditures on paying the monthly service bill. Managing that monthly bill so that it is in line with desired performance levels now becomes crucial. The expected benefit of the cloud is that an organization can turn the dial up to meet higher demand and turn it down when demand slows. In practice this is sometimes more difficult to execute than anticipated. Some IT departments realize their cloud-based data flows aren't always connected to the revenue-generating activity seen in the business. As a result, a "cloud economist" is needed to closely monitor cloud usage and adjust it to financial expectations. Especially during any recessionary period, IT departments will want to avoid a "bill shock" incident.

    Partner with technology providers

    Keep your friends close and your vendors closer. Look for opportunities to create leverage with your strategic vendors to unlock new opportunities. Identify if a vendor you work with is not entrenched in your industry and offer them the credibility of working with you in exchange for a favorable contract. Offering up your logo for a website listing clients or giving your own time to speak in a customer session at a conference can go a long way to building up some goodwill with your vendors. That's goodwill you'll need when you ask for a new multi-year contract on your software license without annual increases built into the structure.

    Demonstrate IT projects improve efficiency

    An IT department that operates at the Optimize level of Info-Tech's maturity scale can deliver outcomes that lower costs for other departments. IT can defend its own budget if it's able to demonstrate that its initiatives will automate or augment business activities in a way that improves margins. The argument becomes even more compelling if IT can demonstrate it is supporting a revenue-generating initiative or customer-facing experience. CIOs will need to find business champions to vouch for the important contributions IT is making to their area.

    Risks

    Imposition of non-financial reporting requirements

    In some jurisdictions, the largest companies will be required to start collecting information on carbon emissions emitted as a result of business activities by the end of next year. Smaller sized organizations will be next on the list to determine how to meet new requirements issued by various regulators. Risks of failure include facing fines or being shunned by investors. CIOs will need to support their financial reporting teams in collecting the new required data accurately. This will incur new costs as well.

    Rising asset costs

    Acquiring IT equipment is becoming more expensive due to overall inflation and specific pressures around semiconductor supply chains. As a result, more CIOs are extending their device refresh policies to last another year or two. Still, demands for new devices to support new hybrid work models could put pressure on budgets as IT teams are asked to modernize conferencing rooms. For organizations adopting mixed reality headsets, cutting-edge capabilities will come at a premium. Operating costs of devices may also increase as inflation increases costs of the electricity and bandwidth they depend on.

    CASE STUDY
    Leverage your influence in vendor negotiations

    Denise Cornish, Associate VP of IT and Deputy COO,
    Western University of Health Sciences

    Since taking on the lead IT role at Western University in 2020, Denise Cornish has approached vendor management like an auditable activity. She evaluates the value she gets from each vendor relationship and creates a list of critical vendors that she relies upon to deliver core business services. "The trick is to send a message to the vendor that they also need us as a customer that's willing to act as a reference," she says. Cornish has managed to renegotiate a contract with her ERP vendor, locking in a multi-year contract with a very small escalator in exchange for presenting as a customer at conferences. She's also working with them on developing a new integration to another piece of software popular in the education space.

    Western University even negotiated a partnership approach with Apple for a program run with its College of Osteopathic Medicine of the Pacific (COMP) called the Digital Doctor Bag. The partnership saw Apple agree to pre-package a customer application developed by Western that delivered the curriculum to students and facilitated communications across students and faculty. Apple recognized Western as an Apple Distinguished School, a program that recognizes innovative schools that use Apple products.

    "I like when negotiations are difficult.
    I don't necessarily expect a zero-sum game. We each need to get something out of this and having the conversation and really digging into what's in it for you and what's in it for me, I enjoy that. So usually when I negotiate a vendor contract, it's rare that it doesn't work out."

    CASE STUDY
    Control cloud costs with a simplified approach

    Jim Love, CIO, IT World Canada

    As an online publisher and a digital marketing platform for technology products and services companies, IT World Canada (ITWC) has observed that there are differences in how small and large companies adopt the cloud as their computing infrastructure. For smaller companies, even though adoption is accelerating, there may still be some reluctance to fully embrace cloud platforms and services. While larger companies often have a multi-cloud approach, this might not be practical for smaller IT shops that may struggle to master the skills necessary to effectively manage one cloud platform. While Love acknowledges that the cloud is the future of corporate computing, he also notes that not all applications or workloads may be well suited to run in the cloud. As well, moving data into the cloud is cheap but moving it back out can be more expensive. That is why it is critical to understand your applications and the data you're working with to control costs and have a successful cloud implementation.

    "Standardization is the friend of IT. So, if you can standardize on one platform, you're going to do better in terms of costs."

    From priorities to action

    Go deeper on pursuing your priorities by improving the associated capabilities.

    Improve Cost and Budget Management

    Take control of your cloud costs by providing central financial oversight on the infrastructure-as-a-service provider your organization uses. Create visibility into your operational costs and define policies to control them. Right-size the use of cloud services to stay within organizational budget expectations.

    Take Control of Cloud Costs on AWS

    Take Control of Cloud Costs on Microsoft Azure

    Improve Business Value

    Reduce the funds allocated to ongoing support and impose tougher discipline around change requests to lighten your maintenance burden and make room for investment in net-new initiatives to support the business.

    Free up funds for new initiatives

    Improve Vendor Management

    Lay the foundation for a vendor management process with long-term benefits. Position yourself as a valuable client with your strategic vendors and leverage your position to improve your contract terms.

    Elevate Your Vendor Management Initiative

    Prepare your data pipeline to train AI

    Priority 02

    • ITRG06 BUSINESS INTELLIGENCE AND REPORTING
    • ITRG07 DATA ARCHITECTURE
    • ITRG08 DATA QUALITY

    Keep pace as the market adopts AI capabilities, and be ready to create competitive advantage.

    Today's innovation is tomorrow's expectation

    During 2022, some compelling examples of generative-AI-based products took the world by storm. Images from AI-generating bots Midjourney and Stable Diffusion went viral, flooding social media and artistic communities with images generated from text prompts. Exchanges with OpenAI's ChatGPT bot also caught attention, as the bot was able to do everything from write poetry, to provide directions on a cooking recipe and then create a shopping list for it, to generate working code in a variety of languages. The foundation models are trained with AI techniques that include generative adversarial networks, transformers, and variational autoencoders. The end result is an algorithm that can produce content that's meaningful to people based on some simple direction. The industry is only beginning to come to grips with how this sort of capability will disrupt the enterprise.

    Slightly more than one-third of IT professionals say their organization has already invested in AI or machine learning. It's the sixth-most popular technology to have already invested in after cloud computing (82%), application programming interfaces (64%), workforce management solutions (44%), data lakes (36%), and next-gen cybersecurity (36%). It's ahead of 12 other technologies that IT is already invested in.

    When we asked what technologies organizations planned to invest in for next year, AI rocketed up the list to second place, as it's selected by 44% of IT professionals. It falls behind only cloud computing. This jump up the list makes AI the fastest growing technology for new investment from organizations.

    Many AI capabilities seem cutting edge now, but organizations are prioritizing it as a technology investment. In a couple of years, access to foundational models that produce images, text, or code will become easy to access with a commercial license and an API integration. AI will become embedded in off-the-shelf software and drive many new features that will quickly become commonplace.

    To stay even with the competition and meet customer expectations, organizations will have to work to at least adopt these AI-enhanced products and services. For those that want to create a competitive advantage, they will have to build a data pipeline that is capable of training their own custom AI models based on their unique data sets.

    Which of the following technology categories has your organization already invested in?

    A bar graph is depicted the percentage of organizations which already had invested in the following Categories: Cloud Computing; Application Programming; Next-Gen Cybersecurity; Workforce Management Solutions; Data Lake/Lakehouse; Artificial Intelligence or Machine Learning.

    Which of those same technologies does your organization plan to invest in by the end of 2023?

    A bar graph is depicted the percentage of organizations which plan to invest in the following categories by the end of 2023: No-Code / Low-Code Platforms; Next-Gen Cybersecurity; Application Programming Interfaces (APIs); Data Lake / Lakehouse; Artificial Intelligence (AI) or Machine Learning; Cloud Computing

    Tech Trends 2023 Survey

    Data quality and governance will be critical to customize generative AI

    Data collection and analysis are on the minds of both CIOs and their supervisors. When asked what technologies the business should adopt in the next three to five years, big data (analytics) ranked as most critical to adopt among CIOs and their supervisors. Big data (collection) ranked fourth out of 11 options.

    Organizations that want to drive a competitive advantage from generative AI will need to train these large, versatile models on their own data sets. But at the same time, IT organizations are struggling to provide clean data. The second-most critical gap for IT organizations on average is data quality, behind only organizational change management. Organizations know that data quality is important to support analytics goals, as algorithms can suffer in their integrity if they don't have reliable data to work with. As they say, garbage in, garbage out.

    Another challenge to overcome is the gap seen in IT governance, the sixth largest gap on average. Using data toward training custom generative models will hold new compliance and ethical implications for IT departments to contend with. How user data can be leveraged is already the subject of privacy legislation in many different jurisdictions, and new AI legislation is being developed in various places around the world that could create further demands. In some cases, users are reacting negatively to AI-generated content.

    Biggest capability gaps between rated importance and effectiveness

    This is a Bar graph showing the capability gaps between rated importance and effectiveness.

    IT Management and Governance Diagnostic

    Most critical technologies to adopt rated by CIOs and their supervisors

    This is a Bar graph showing the most critical technologies to adopt as rated by CIO's and their supervisors

    CEO-CIO Alignment Program

    Opportunities

    Enterprise content discovery

    Many organizations still cobble together knowledgebases in SharePoint or some other shared corporate drive, full of resources that no one quite knows how to find. A generative AI chatbot holds potential to be trained on an organization's content and produce content based on an employee's queries. Trained properly, it could point employees to the right resource they need to answer their question or just provide the answer directly.

    Supply chain forecasts

    After Hurricane Ian shut down a Walmart distribution hub, the retailer used AI to simulate the effects on its supply chain. It rerouted deliveries from other hubs based on the predictions and planned for how to respond to demand for goods and services after the storm. Such forecasts would typically take a team of analysts days to compose, but thanks to AI, Walmart had it done in a matter of hours (The Economist, 2022).

    Reduce the costs of AI projects

    New generative AI models of sufficient scale offer advantages over previous AI models in their versatility. Just as ChatGPT can write poetry or dialogue for a play or perhaps a section of a research report (not this one, this human author promises), large models can be deployed for multiple use cases in the enterprise. One AI researcher says this could reduce the costs of an AI project by 20-30% (The Economist, 2022).

    Risks

    Impending AI regulation

    Multiple jurisdictions around the world are pursuing new legislation that imposes requirements on organizations that use AI, including the US, Europe, and Canada. Some uses of AI will be banned outright, such as the real-time use of facial recognition in public spaces, while in other situations people can opt out of using AI and work with a human instead. Regulations will take the risk of the possible outcomes created by AI into consideration, and organizations will often be required to disclose when and how AI is used to reach decisions (Science | Business, 2022). Questions around whether creators can prevent their content from being used for training AI are being raised, with some efforts already underway to collect a list of those who want to opt out. Organizations that adopt a generative AI model today may find it needs to be amended for copyright reasons in the future.

    Bias in the algorithms

    Organizations using a large AI model trained by a third party to complete their tasks or as a foundation to further customize it with their own data will have to contend with the inherent bias of the algorithm. This can lead to unintended negative experiences for users, as it did for MIT Technology Review journalist Melissa Heikkilä when she uploaded her images to AI avatar app Lensa, only to have it render a collection of sexualized portraits. Heikkilä contends that her Asian heritage overly influenced the algorithm to associate her with video-game characters, anime, and adult content (MIT Technology Review, 2022).

    Convincing nonsense

    Many of the generative AI bots released so far often create very good responses to user queries but sometimes create nonsense that at first glance might seem to be accurate. One example is Meta's Galactica bot – intended to streamline scientific research discovery and aid in text generation – which was taken down only three days after being made available. Scientists found that it generated fake research that sounded convincing or failed to do math correctly (Spiceworks, 2022).

    CASE STUDY
    How MLSE enhances the Toronto Raptors' competitiveness with data-driven practices

    Christian Magsisi, Vice President of Venue and Digital Technology, MLSE

    At the Toronto Raptors practice facility, the OVO Athletic Centre, a new 120-foot custom LG video screen towers over the court. The video board is used to playback game clips so coaches can use them to teach players, but it also displays analytics from algorithmic models that are custom-made for each player. Data on shot-making or defensive deflections are just a couple examples of what might inform the players.

    Vice President of Digital Technology Christian Magsisi leads a functional Digital Labs technical group at MLSE. The in-house team builds the specific data models that support the Raptors in their ongoing efforts to improve. The analytics are fed by Noah Analytics, which uses cognitive vision to provide real-time feedback on shot accuracy. SportsVU is a motion capture system that represents how players are positioned on the court, with detail down to which way they are facing and whether their arms are up or down. The third-party vendors provide the solutions to generate the analytics, but it's up to MLSE's internal team to shape them to be actionable for players during a practice.

    "All the way from making sure that a specific player is achieving the results that they're looking for and showing that through data, or finding opportunities for the coaching staff. This is the manifestation of it in real life. Our ultimate goal with the coaches was to be able to take what was on emails or in a report and sometimes even in text message and actually implement it into practice."

    Read the full story on Spiceworks Insights.

    How MLSE enhances the Toronto Raptors' competitiveness with data-driven practices (cont.)

    Humza Teherany, Chief Technology Officer, MLSE

    MLSE's Digital Labs team architects its data insights pipeline on top of cloud services. Amazon Web Services Rekognition provides cognitive vision analysis from video and Amazon Kinesis provides the video processing capabilities. Beyond the court, MLSE uses data to enhance the fan experience, explains CTO Humza Teherany. It begins with having meaningful business goals about where technology can provide the most value. He starts by engaging the leadership of the organization and considering the "art of the possible" when it comes to using technology to unlock their goals.

    Humza Teherany (left) and Christian Magsisi lead MLSE's digital efforts for the pro sports teams owned by the group, including the Toronto Raptors, Toronto Maple Leafs, and Toronto Argonauts. (Photo by Brian Jackson).

    Read the full story on Spiceworks Insights.

    "Our first goal in the entire buildup of the Digital Labs organization has been to support MLSE and all of our teams. We like to do things first. We leverage our own technology to make things better for our fans and for our teams to complete and find incremental advantages where possible."
    Humza Teherany,
    Chief Technology Officer, MLSE

    From priorities to action

    Go deeper on pursuing your priorities by improving the associated capabilities.

    Improve Data Quality

    The performance of AI-assisted tools depends on mature IT operations processes and reliable data sets. Standardize service management processes and build a knowledgebase of structured content to prepare for AI-assisted IT operations.

    Prepare for Cognitive Service Management

    Improve Business Intelligence and Reporting

    Explore the enterprise chatbots that are available to not only assist with customer interactions but also help your employees find the resources they need to do their jobs and retrieve data in real time.

    Explore the best chatbots software

    Improve Data Architecture

    Understand if you are ready to embark on the AI journey and what business use cases are appropriate for AI. Plan around the organization's maturity in people, tools, and operations for delivering the correct data, model development, and model deployment and managing the models in the operational areas.

    Create an Architecture for AI

    Go all in on zero-trust security

    Priority 03

    • BAI09 ASSET MANAGEMENT
    • APO08 STAKEHOLDER RELATIONS
    • MEA03 EXTERNAL COMPLIANCE

    Adopt zero-trust architecture as the new security paradigm across your IT stack and from an organizational risk management perspective.

    Putting faith in zero trust

    The push toward a zero-trust security framework is becoming necessary for organizations for several different reasons over the past couple of years. As the pandemic forced workers away from offices and into their homes, perimeter-based approaches to security were challenged by much wider network footprints and the need to identify users external to the firewall. Supply-chain security became more of a concern with notable attacks affecting many thousands of firms, some with severe consequences. Finally, the regulatory pressure to implement zero trust is rising following President Joe Biden's 2021 Executive Order on Improving the Nation's Cybersecurity. It directs federal agencies to implement zero trust. That will impact any company doing business with the federal government, and it's likely that zero trust will propagate through other government agencies in the years ahead. Zero-trust architecture can also help maintain compliance around privacy-focused regulations concerned about personal data (CSO Online, 2022).

    IT professionals are modestly confident that they can meet new government legislation regarding cybersecurity requirements. When asked to rank their confidence on a scale of one to five, the most common answer was 3 out of 5 (38.5%). The next most common answer was 4 out of 5 (33.3%).

    Zero-trust barriers:
    Talent shortage and lack of leadership involvement

    Out of a list of challenges, IT professionals are most concerned with talent shortages leading to capacity constraints in cybersecurity. Fifty-four per cent say they are concerned or very concerned with this issue. Implementing a new zero-trust framework for security will be difficult if capacity only allows for security teams to respond to incidents.

    The next most pressing concern is that cyber risks are not on the radar of executive leaders or the board of directors, with 46% of IT pros saying they are concerned or very concerned. Since zero-trust requires that organizations take an enterprise risk management approach to cybersecurity and involve top decision makers, this reveals another area where organizations may fall short of achieving a zero-trust environment.

    How confident are you that your organization is prepared to meet current and future government legislation regarding cybersecurity requirements? A circle graph is shown with 68.6% colored dark green, and the words: AVG 3.43 written inside the graph.
    a bar graph showing the confidence % for numbers 1-5
    54%

    of IT professionals are concerned with talent shortages leading to capacity constraints in cybersecurity.

    46%

    of IT professionals are concerned that cyber risks are not on the radar of executive leaders or the board of directors.

    Zero trust mitigates risk while removing friction

    A zero-trust approach to security requires organizations to view cybersecurity risk as part of its overall risk framework. Both CIOs and their supervisors agree that IT-related risks are a pain point. When asked to rate the severity of pain points, 58% of CIOs rated IT-related business risk incidents as a minor pain or major pain. Their supervisors were more concerned, with 61% rating it similarly. Enterprises can mitigate this pain point by involving top levels of leadership in cybersecurity planning.

    Organizations can be wary about implementing new security measures out of concern it will put barriers between employees and what they need to work. Through a zero-trust approach that focuses on identity verification, friction can be avoided. Overall, IT organizations did well to provide security without friction for stakeholders over the past 18 months. Results from Info-Tech's CIO Business Vision Diagnostic shows that stakeholders almost all agree friction due to security practices are acceptable. The one area that stands to be improved is remote/mobile device access, where 78.3% of stakeholders view the friction as acceptable.

    A zero-trust approach treats user identity the same regardless of device and whether it is inside or outside of the corporate network. This can remove friction when workers are looking to connect remotely from a mobile device.

    IT-related business risk incidents viewed as a pain point

    CXO 61%
    CIO 58%

    Business stakeholders rate security friction levels as acceptable

    A bar graph is depicted with the following dataset: Regulatory Compliance: 93.80%; Office/Desktop Computing:	86.50%;Data Access/Integrity: 86.10%; Remote/Mobile Device Access:	78.30%;

    CIO Business Vision Diagnostic, N=259

    Opportunities

    Move to identity-driven access control

    Today's approach to access control on the network is to allow every device to exchange data with every other device. User endpoints and servers talk to each other directly without any central governance. In a zero-trust environment, a centralized zero-trust network access broker provides one-to-one connectivity. This allows servers to rest offline until needed by a user with the right access permissions. Users verify their identity more often as they move throughout the network. The user can access the resources and data they need with minimal friction while protecting servers from unauthorized access. Log files are generated for analysis to raise alerts about when an authorized identity has been compromised.

    Protect data with just-in-time authentication

    Many organizations put process in place to make sure data at rest is encrypted, but often when users copy that data to their own devices, it becomes unencrypted, allowing attackers opportunities to exfiltrate sensitive data from user endpoints. Moving to a zero-trust environment where each data access is brokered by a central broker allows for encryption to be preserved. Parties accessing a document must exchange keys to gain access, locking out unauthorized users that don't have both sets of keys to decrypt the data (MIT Lincoln Laboratory, 2022).

    Harness free and open-source tools to deploy zero trust

    IT teams may not be seeing a budget infusion to invest in a new approach to security. By making use of the many free and open-source tools available, they can bootstrap their strategy into reality. Here's a list to get started:

    PingCastle Wrangle your Active Directory and find all the domains that you've long since forgotten about and manage the situation appropriately. Also builds a spoke-and-hub map of your Active Directory.

    OpenZiti Create an overlay network to enable programmable networking that supports zero trust.

    Snyk Developers can automatically find and fix vulnerabilities before they commit their code. This vendor offers a free tier but users that scale up will need to pay.

    sigstore Open-source users and maintainers can use this solution to verify the code they are running is the code the developer intended. Works by stitching together free services to facilitate software signing, verify against a transparent ledger, and provide auditable logs.

    Microsoft's SBOM generation tool A software bill of materials is a requirement in President Biden's Executive Order, intended to provide organizations with more transparency into their software components by providing a comprehensive list. Microsoft's tool will work with Windows, Linux, and Mac and auto-detect a longlist of software components, and it generates a list organized into four sections that will help organizations comprehend their software footprint.

    Risks

    Organizational culture change to accommodate zero trust

    Zero trust requires that top decision makers get involved in cybersecurity by treating it as an equal consideration of overall enterprise risk. Not all boards will have the cybersecurity expertise required, and some executives may not prioritize cybersecurity despite the warnings. Organizations that don't appoint a chief information security officer (CISO) role to drive the cybersecurity agenda from the top will be at risk of cybersecurity remaining an afterthought.

    Talent shortage

    No matter what industry you're in or what type of organization you run, you need cybersecurity. The demand for talent is very high and organizations are finding it difficult to hire in this area. Without the talent needed to mature cybersecurity approaches to a zero-trust model, the focus will remain on foundational principles of patch management to eliminate vulnerabilities and intrusion prevention. Smaller organizations may want to consider a "virtual CISO" that helps shape the organizational strategy on a part-time basis.

    Social engineering

    Many enterprise security postures remain vulnerable to an attack that commandeers an employee's identity to infiltrate the network. Hosted single sign-on models provide low friction and continuity of identity across applications but also offer a single point of failure that hackers can exploit. Phishing scams that are designed to trick an employee into providing their credentials to a fake website or to just click on a link that delivers a malware payload are the most common inroads that criminals take into the corporate network. Being aware of how user behavior influences security is crucial.

    CASE STUDY
    Engage the entire organization with cybersecurity awareness

    Serge Suponitskiy, CIO, Brosnan Risk Consultants

    Brosnan provides private security services to high-profile clients and is staffed by security experts with professional backgrounds in intelligence services and major law enforcement agencies. Safe to say that security is taken seriously in this culture and CIO Serge Suponitskiy makes sure that extends to all back-office staff that support the firm's activities. He's aware that people are often the weakest link in a cybersecurity posture and are prone to being fooled by a phishing email or even a fraudulent phone call. So cybersecurity training is an ongoing activity that takes many forms. He sends out a weekly cybersecurity bulletin that features a threat report and a story about the "scam of the week." He also uses KnowBe4, a tool that simulates phishing attacks and trains employees in security awareness. Suponitskiy advises reaching out to Marketing or HR for help with engaging employees and finding the right learning opportunities.

    "What is financially the best solution to protect yourself? It's to train your employees. … You can buy all of the tools and it's expensive. Some of the prices are going up for no reason. Some by 20%, some by 50%, it's ridiculous. So, the best way is to keep training, to keep educating, and to reimagine the training. It's not just sending this video that no one clicks on or posting a poster no one looks at. … Given the fact we're moving into this recession world, and everyone is questioning why we need to spend more, it's time to reimagine the training approach."

    CASE STUDY
    Focus on micro-segmentation as the foundation of zero trust

    David Senf, National Cybersecurity Strategist, Bell

    As a cybersecurity analyst and advisor that works with Bell's clients, David Senf sees zero-trust security as an opportunity for organizations to put a strong set of mitigating controls in place to defend against the thorny challenge of reducing vulnerabilities in their software supply chain. With major breaches being linked to widely used software in the past couple of years, security teams might find it effective to focus on a different layer of security to prevent certain breaches. With security policy being enforced at a narrow point/perimeter, attacks are in essence blocked from exploiting application vulnerabilities (e.g. you can't exploit what you can see). Organizations must still ensure there is a solid vulnerability management program in place, but surrounding applications with other controls is critical. One aspect of zero trust, micro-segmentation, which is an approach to network management, can limit the damage caused by a breach. The solutions help to map out and protect the different connections between applications that could otherwise be abused for discovery or lateral movement. Senf advises that knowing your inventory of software and the interdependencies between applications is the first step on a zero-trust journey, before putting protection and detection in place.

    "Next year will be a year of a lot more ZTNA, zero-trust network access, being deployed. So, I think that will give organizations more of an understanding of what zero trust is as well, from a really basic perspective. If I can just limit what applications you can see and no one can even see that application, it's undiscoverable because I've got that ZTNA solution in place. … I would see that as a leading area of deployment and coming to understand what zero trust is in 2023."

    From priorities to action

    Go deeper on pursuing your priorities by improving the associated capabilities.

    Improve Asset Management

    Enable reduced friction in the remote user experience by underpinning it with a hardware asset management program. Creating an inventory of devices and effectively tracking them will aid in maintaining compliance, result in stronger policy enforcement, and reduce the harm of a lost or stolen device.

    Implement Hardware Asset Management

    Improve Stakeholder Relations

    Communicate the transition from a perimeter-based security approach to an "Always Verify" approach with a clear roadmap toward implementation. Map key protect surfaces to business goals to demonstrate the importance of zero-trust security in helping the organization succeed. Help the organization's top leadership build awareness of cybersecurity risk.

    Build a Zero Trust Roadmap

    Improve External Compliance

    Manage the challenge of meeting new government requirements to implement zero-trust security and other data protection and cybersecurity regulations with a compliance program. Create a control environment that aligns multiple compliance regimes, and be prepared for IT audits.

    Build a Security Compliance Program

    Engage employees in the digital age

    Priority 04

    • ITRG02 LEADERSHIP, CULTURE, AND VALUES
    • BAI05 ORGANIZATIONAL CHANGE MANAGEMENT
    • APO03 ENTERPRISE ARCHITECTURE

    Lead a strong culture through digital means to succeed in engaging the hybrid workforce.

    The new deal for employers in a hybrid work world

    Necessity is the mother of innovation.

    The pandemic's disruption for non-essential workers looks to have a long-lasting, if not permanent, effect on the relationship between employer and employee. The new bargain for almost all organizations is a hybrid work reality, with employees splitting time between the office and working remotely, if not working remotely full-time. IT is in a unique position in the organization as it must not only contend with the shift to this new deal with its own employees but facilitate it for the entire organization.

    With 90% of organizations embracing some form of hybrid work, IT leaders have an opportunity to shift from coping with the new work reality to finding opportunities to improve productivity. Organizations that embrace a hybrid model for their IT departments see a more effective IT department. Organizations that offered no remote work for IT rated their IT effectiveness on average 6.2 out of 10, while organizations with at least 10% of IT roles in a hybrid model saw significantly higher effectiveness. At minimum, organizations with between 50%-70% of IT roles in a hybrid model rated their effectiveness at 6.9 out of 10.

    IT achieved this increase in effectiveness during a disruptive time that often saw IT take on a heavier burden. Remote work required IT to support more users and be involved in facilitating more work processes. Thriving through this challenging time is a win that's worth sharing with the rest of the organization.

    90% of organizations are embracing some form of hybrid work.

    IT's effectiveness compared to % working hybrid or remotely

    A bar graph is shown which compares the effectiveness of IT work with hybrid and full remote work, compared to No Remote Work for IT.

    High effectiveness doesn't mean high engagement

    Despite IT's success with hybrid work, CIOs are more concerned about their staff sufficiency, skill, and engagement than their supervisors. Among clients using our CEO-CIO Alignment Diagnostic, 49% of CIOs considered this issue a major pain point compared to only 32% of CXOs. While IT staff are more effective than ever, even while carrying more of a burden in the digital age, CIOs are still looking to improve staff engagement.

    Info-Tech's State of Hybrid Work Survey illuminates further details about where IT leaders are concerned for their employee engagement. About four in ten IT leaders say they are concerned for employee wellbeing, and almost the same amount say they are concerned they are not able to see signs that employees are demotivated (N=518).

    Boosting IT employees' engagement levels to match their effectiveness will require IT leaders to harness all the tools at their disposal. Communicating culture and effectively managing organizational change in the digital age is a real test of leadership.

    Staff sufficiency, skill, and engagement issues as a major pain point

    CXO 32%
    CIO 49%

    CEO-CIO Alignment Diagnostic

    Opportunities

    Drive effectiveness with a hybrid environment

    IT leaders concerned about the erosion of culture and connectedness due to hybrid work can mitigate those effects with increased and improved communication. Among highly effective IT departments, 55% of IT leaders made themselves highly available through instant messaging chat. Another 54% of highly effective leaders increased team meetings (State of Hybrid Work Survey, n=213). The ability to adapt to the team's needs and use a number of tactics to respond is the most important factor. The greater the number of tactics used to overcome communication barriers, the more effective the IT department (State of Hybrid Work Survey, N=518).

    Modernize the office conference room

    A hybrid work approach emphasizes the importance of not only the technology in the office conference room but the process around how meetings are conducted. Creating an equal footing for all participants regardless of how they join is the goal. In pursuit of that, 63% of organizations say they have made changes or upgrades to their conference room technology (n=496). The conferencing experience can influence employee engagement and work culture and enhance collaboration. IT should determine if the business case exists for upgrades and work to decrease the pain of using legacy solutions where possible (State of Hybrid Work in IT: A Trend Report).

    Understand the organizational value chain

    Map out the value chain from the customer perspective and then determine the organizational capabilities involved in delivering on that experience. It is a useful tool for helping IT staff understand how they're connected to the customer experience and organizational mission. It's crucial to identify opportunities to resolve pain points and create more efficiency throughout the organization.

    Risks

    Talent rejects the working model

    Many employees that experienced hybrid work over the past couple of years are finding it's a positive development for work/life balance and aren't interested in a full-time return to the office. Organizations that insist on returning all employees to the office all the time may find that employees choose to leave the organization. Similarly, it could be hard to hire IT talent in a competitive market if the position is required to be onsite every day. Most organizations are providing flexible options to employees and finding ways to manage work in the new digital age.

    Wasted expense on facilities

    Organizations may choose to keep their physical office only to later realize that no one is going to work there. While providing an office space can help foster positive culture through valuable face time, it has to be used intentionally. Managers should plan for specific days that their teams will meet in the office and make sure that work activities take advantage of everyone being in the same place at the same time. Asking everyone to come in so that they can be on a videoconference meeting in their cubicle isn't the point.

    Isolated employees and teams

    Studies on a remote work environment show it has an impact on how many connections each employee maintains within the company. Employees still interact well within their own teams but have fewer interactions across departments. Overall, workers are likely to collaborate just as often as they did when working in the office but with fewer other individuals at the company. Keep the isolating effect of remote work in mind and foster collaboration and networking opportunities across different departments (BBC News, 2022).

    CASE STUDY
    Equal support of in-office and remote work

    Roberto Eberhardt, CIO, Ontario Legislative Assembly

    Working in the legislature of the Ontario provincial government, CIO Roberto Eberhardt's staff went from a fully onsite model to a fully remote model at the outset of the pandemic. Today he's navigating his path to a hybrid model that's somewhere in the middle. His approach is to allow his business colleagues to determine the work model that's needed but to support a technology environment that allows employees to work from home or in the office equally. Every new process that's introduced must meet that paradigm, ensuring it will work in a hybrid environment. For his IT staff, he sees a culture of accountability and commitment to metrics to drive performance measurement as key to the success of this new reality.

    "While it's good in a way, the challenge for us is it became a little more complex because you have to account for all those things in the office environment and in the remote work approach. Everything you do now, you have to say OK well how is this going to work in this world and how will it work in the other world?"

    Creating purpose for IT through strategy

    Mike Russell, Virginia Community College System

    At the Virginia Community College System (VCCS), CIO Mike Russell's IT team supports an organization that governs and delivers services to all community colleges in the state. Russell sees his IT team's purpose as being driven by the organization's mission to ensure success throughout the entire student journey, from enrolment to becoming employed after graduation. That customer-focused mindset starts from the top-level leadership, the chancellor, and the state governor. The VCCS maintains a six-year business plan that informs IT's strategic plan and aligns IT with the mission, and both plans are living documents that get refreshed every two years. Updating the plans provides opportunities for the chancellor to engage the organization and remind everyone of the purpose of their work.

    "The outcome isn't the degree. The outcome we're trying to measure is the job. Did you get the job that you wanted? Whether it's being re-employed or first-time employment, did you get what you were after?"

    From priorities to action

    Go deeper on pursuing your priorities by improving the associated capabilities.

    Improve Leadership, Culture, and Values

    Help leaders manage their teams effectively in a hybrid environment by providing them with the right tools and tactics to manage the challenges of hybrid work. Focus on promoting teamwork and fostering connection.

    Prepare People Leaders for the Hybrid Work Environment

    Improve Organizational Change Management

    Assign accountability for managing the changes that the organization is experiencing in the digital age. Make a people-centric approach that takes human behavior into account and plans to address different needs in different ways. Be proactive about change.

    Master Organizational Change Management Practices

    Improve Enterprise Architecture

    Develop a foundation for aligning IT's activities with business value by creating a right-sized enterprise architecture approach that isn't heavy on bureaucracy. Drive IT's purpose by illustrating how their work contributes to the overall mission and the customer experience.

    Create a Right-Sized Enterprise Architecture Governance Framework

    Shape the IT organization to improve customer experience

    PRIORITY 05

    • BAI03 ENTERPRISE APPLICATION SELECTION & IMPLEMENTATION
    • MEA01 PERFORMANCE MEASUREMENT
    • ITRG01 IT ORGANIZATIONAL DESIGN

    Tightly align the IT organization with the organization's value chain from a customer perspective.

    IT's value is defined by faster, better, bigger

    The pandemic motivated organizations to accelerate their digital transformation efforts, digitalizing more of their tasks and organizing the company's value chain around satisfying the customer experience. Now we see organizations taking their foot off the gas pedal of digitalization and shifting their focus to extracting the value from their investments. They want to execute on the digital transformation in their operations and realize the vision they set out to achieve.

    In our Trends Report we compared the emphasis organizations are putting on digitalization to last year. Overall, we see that most organizations shifted fewer of their processes to digital in the past year.

    We also asked organizations what motivated their push toward automation. The most common drivers are to improve efficiency, with almost seven out of ten organizations looking to increase staff on high-level tasks by automating repetitive tasks, 67% also wanting to increase productivity without increasing headcount, and 59% wanting to reduce errors being made by people. In addition, more than half of organizations pursued automation to improve customer satisfaction.

    What best describes your main motivation to pursue automation, above other considerations?

    A bar graph is depicted showing the following dataset: Increase staff focus on high-level tasks by automating repetitive tasks:	69%; Increase productivity of existing staff to avoid increasing headcount:	67%; Reduce errors made by people:	59%; Improve customer satisfaction:	52%; Achieve cost savings through reduction in headcount:	35%; Increase revenue by enabling higher volume of work:	30%

    Tech Trends 2023 Survey

    To what extent did your organization shift its processes from being manually completed to digitally completed during past year?

    A bar graph is depicted showing the extent to which organizations shifted processes from manual to digital during the past year for 2022 and 2023, from Tech Trends 2023 Survey

    With the shift in focus from implementing new applications to support digital transformation to operating in the new environment, IT must shift its own focus to help realize the value from these systems. At the same time, IT must reorganize itself around the new value chain that's defined by a customer perspective.

    IT struggles to deliver business value or support innovation

    Many current IT departments are structured around legacy processes that hinder their ability to deliver business value. CIOs are trying to grapple with the misalignment between the modern business structure and keep up with the demands for innovation and agility.

    Almost nine in ten CIOs say that business frustration with IT's failure to deliver value is a pain point. Their supervisors have a slightly more favorable opinion, with 76% agreeing that it is a pain point.

    Similarly, nine in ten CIOs say that IT limits affecting business innovation and agility is a pain point, while 81% of their supervisors say the same.

    Supervisors say that IT should "ensure benefits delivery" as the most important process (CEO-CIO Alignment Program). This underlines the need to achieve alignment, optimize service delivery, and facilitate innovation. The pain points identified here will need to be resolved to make this possible.

    IT departments will need to contend with a tight labor market and economic volatility in the year ahead. If this drives down resource capacity, it will be even more critical to tightly align with the organization.

    Views business frustration with IT failure to deliver value as a pain point

    CXO 76%
    CIO 88%

    Views IT limits affecting business innovation and agility as a pain point

    CXO 81%
    CIO

    90%

    CEO-CIO Alignment Program

    Opportunities

    Define IT's value by its contributions to enterprise value

    Communicate the performance of IT to stakeholders by attributing positive changes in enterprise value to IT initiatives. For example, if a digital channel helped increase sales in one area, then IT can claim some portion of that revenue. If optimization of another process resulted in cost savings, then IT can claim that as a contribution toward the bottom line. CIOs should develop their handle on how KPIs influence revenues and costs. Keeping tabs on normalized year-over-year revenue comparisons can help demonstrate that IT contributions are making an impact on driving profitability.

    Go with buy versus build if it's a commodity service

    Most back-office functions common to operating a company can be provided by cloud-based applications accessed through a web browser. There's no value in having IT spend time maintaining on-premises applications that require hosting and ongoing maintenance. Organizations that are still accruing technical debt and are unable to modernize will increasingly find it is negatively impacting employee experience, as users expect their working experience to be similar to their experience with consumer applications. In addition, IT will continue to have capacity challenges as resources will be consumed by maintenance. As they seek to outsource some applications, IT will need to consider the geopolitical risk of certain jurisdictions in selecting a provider.

    Redefine how employee performance is tracked

    The concept of "clocking in" for a shift and spending eight hours a day on the job doesn't help guide IT toward its objectives or create any higher sense of purpose. Leaders must work to create a true sense of accountability by reaching consensus on what key performance indicators are important and tasking staff to improve them. Metrics should clearly link back to business outcomes and IT should understand the role they play in delivering a good customer experience.

    Risks

    Lack of talent available to drive transformation

    CIOs are finding it difficult to hire the talent needed to create the capacity they need as digital demands of their organizations increase. This could slow the pace of change as new positions created in IT go unfilled. CIOs may need to consider reskilling and rebalancing workloads of existing staff in the short term and tap outsourcing providers to help make up shortfalls.

    Resistance to change

    New processes may have been given the official rubber stamp, but that doesn't mean staff are adhering to them. Organizations that reorganize themselves must take steps to audit their processes to ensure they're executed the way they intend. Some employees may feel they are being made obsolete or pushed out of their jobs and become disengaged.

    Short-term increased costs

    Restructuring the organization can come with the need for new tools and more training. It may be necessary to operate with redundant staff for the transitional period. Some additional expenses might be incurred for a brief period as the new structure is being put in place.

    Emphasize the value of IT in driving revenue

    Salman Ali, CIO, McDonald's Germany

    As the new CIO to McDonald's Germany, Salman Ali came on board with an early mandate to reorganize the IT department. The challenge is to merge two organizations together: one that delivers core technology services of infrastructure, security, service desk, and compliance and one that delivers customer-facing technology such as in-store touchscreen kiosks and the mobile app for food delivery. He is looking to organize this new-look department around the technology in the hands of both McDonald's staff and its customers. In conversations with his stakeholders, Ali emphasizes the value that IT is driving rather than discussing the costs that go into it. For example, there was a huge cost in integrating third-party meal delivery apps into the point-of-sales system, but the seamless experience it delivers to customers looking to place an order helps to drive a large volume of sales. He plans to reorganize his department around this value-driven approach. The organization model will be executed with clear accountability in place and key performance indicators to measure success.

    "Technology is no longer just an enabler. It's now a strategic business function. When they talk about digital, they are really talking about what's in the customers' hands and what do they use to interact with the business directly? Digital transformation has given technology a new front seat that's really driving the business."

    CASE STUDY
    Overhauling the "heartbeat" of the organization

    Ernest Solomon, Former CIO, LAWPRO

    LAWPRO is a provider of professional liability insurance and title insurance in Canada. The firm is moving its back-office applications from a build approach to a buy approach and focusing its build efforts on customer-facing systems tied to revenue generation. CIO Ernest Solomon says his team has been developing on a legacy platform for two decades, but it's time to modernize. The firm is replacing its legacy platform and moving to a cloud-based system to address technical debt and improve the experience for staff and customers. The claims and policy management platform, the "heartbeat" of the organization, is moving to a software-as-a-service model. At the same time, the firm's customer-facing Title Plus application is being moved to a cloud-native, serverless architecture. Solomon doesn't see the need for IT to spend time building services for the back office, as that doesn't align with the mission of the organization. Instead, he focuses his build efforts on creating a competitive advantage.

    "We're redefining the customer experience, which is how do we move the needle in a positive direction for all the lawyers that interact with us? How do we generate that value-based proposition and improve their interactions with our organization?"

    From priorities to action

    Go deeper on pursuing your priorities by improving the associated capabilities.

    Improve Enterprise Application Selection & Implementation

    Help leaders manage their teams effectively in a hybrid environment by providing them with the right tools and tactics to manage the challenges of hybrid work. Focus on promoting teamwork and fostering connection.

    Embrace Business-Managed Applications

    Improve Performance Measurement

    Drive the most important IT process in the eyes of supervisors by defining business value and linking IT spend to it. Make benefits realization part of your IT governance.

    Maximize Business Value From IT Through Benefits Realization

    Improve IT Organizational Design

    Showcase IT's value to the business by aligning IT spending and staffing to business functions. Provide transparency into business consumption of IT and compare your spending to your peers'.

    IT Spend & Staffing Benchmarking

    The Five Priorities

    Engage cross-functional leadership to seize opportunity while protecting the organization from volatility.

    1. Adjust IT operations to manage for inflation
    2. Prepare your data pipeline to train AI
    3. Go all in on zero-trust security
    4. Engage employees in the digital age
    5. Shape the IT organization to improve customer experience

    Expert Contributors

    In order of appearance

    Denise Cornish, Associate VP of IT and Deputy COO, Western University of Health Sciences

    Jim Love, CIO, IT World Canada

    Christian Magsisi, Vice President of Venue and Digital Technology, MLSE

    Humza Teherany, Chief Technology Officer, MLSE

    Serge Suponitskiy, CIO, Brosnan Risk Consultants

    David Senf, National Cybersecurity Strategist, Bell

    Roberto Eberhardt, CIO, Ontario Legislative Assembly

    Mike Russell, Virginia Community College System

    Salman Ali, CIO, McDonald's Germany

    Ernest Solomon, Former CIO, LAWPRO

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    MIT Lincoln Laboratory. "Overview of Zero Trust Architectures." YouTube,
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    MIT Technology Review Insights. "CIO Vision 2025: Bridging the Gap between BI and AI." MIT Technology Review, 20 Sept. 2022. Accessed 1 Nov. 2022.
    Paramita, Ghosh. "Data Architecture Trends in 2022." DATAVERSITY, 22 Feb. 2022. Accessed 7 Dec. 2022.
    Rosenbush, Steven. "Cybersecurity Tops the CIO Agenda as Threats Continue to Escalate - WSJ." The Wall Street Journal, 17 Oct. 2022. Accessed 2 Nov. 2022.
    Sacolick, Isaac. "What's in the Budget? 7 Investments for CIOs to Prioritize." StarCIO,
    22 Aug. 2022. Accessed 2 Nov. 2022.
    Singh, Yuvika. "Digital Culture-A Hurdle or A Catalyst in Employee Engagement." International Journal of Management Studies, vol. 6, Jan. 2019, pp. 54–60. ResearchGate, https://doi.org/10.18843/ijms/v6i1(8)/08.
    "Talent War Set to Become Top Priority for CIOs in 2023, Study Reveals." CEO.digital,
    8 Sept. 2022. Accessed 7 Dec. 2022.
    Tanaka, Rodney. "WesternU COMP and COMP-Northwest Named Apple Distinguished School." WesternU News. 10 Feb. 2022. Accessed 12 Dec. 2022.
    Wadhwani, Sumeet. "Meta's New Large Language Model Galactica Pulled Down Three Days After Launch." Spiceworks, 22 Nov. 2022. Accessed 12 Dec. 2022.
    "World Economic Outlook." International Monetary Fund (IMF), 11 Oct. 2022. Accessed
    14 Dec. 2022.

    Build IT Capabilities to Enable Digital Marketing Success

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    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions
    • Misalignment: Even if IT builds the capabilities to pursue digital channels, the channels will underperform in realizing organizational goals if the channels and the goals are misaligned.
    • Ineffective analytics: Failure to integrate and analyze new data will undermine organizational success in influencer and sentiment identification.
    • Missed opportunity: If IT does not develop the capabilities to support these channels, then lead generation, brand promotion, and engagement opportunities will be lost.
    • Lack of control: Marketing is developing and depending on internal power users and agencies. This practice can isolate IT from digital marketing technology decision making.

    Our Advice

    Critical Insight

    • Identify and understand the digital marketing channels that can benefit your organization.
    • Get stakeholder buy-in to facilitate collaboration between IT and product marketing groups to identify necessary IT capabilities.
    • Build IT capability by purchasing software, outsourcing, and training or hiring individuals with necessary skillsets.
    • Become transformational: use IT capabilities to support analytics that identify new customer segments, key influencers, and other invaluable insights.
    • Time is of the essence! It is easier to begin strengthening the relationship between marketing and IT today then it will be at any point in the future.
    • Being transformational means more than just enabling the channels marketing wants to pursue; IT must assist in identifying new segments and digital marketing opportunities, such as enabling influencer management.

    Impact and Result

    • IT is involved in decision making and has a complete understanding of the digital channels the organization is going to migrate to or phase out if unused.
    • IT has the necessary capabilities to support and enable success in all relevant digital channel management technologies.
    • IT is a key player in ensuring that all relevant data from new digital channels is managed and analyzed in order to maintain a 360 degree view of customers and feed real-time campaigns.
    • This enables the organization to not only target existing segments effectively, but also to identify and pursue new opportunities not presented before.
    • These opportunities include: identifying new segments among social networks, identifying key influencers as a new target, identifying proactive service and marketing opportunities from the public social cloud, and conducting new competitive analyses on the public social cloud.

    Build IT Capabilities to Enable Digital Marketing Success Research & Tools

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

    1. Make the case for building IT capabilities

    Identify the symptoms of inadequate IT support of digital marketing to diagnose the problems in your organization.

    • Storyboard: Build IT Capabilities to Enable Digital Marketing Success

    2. Identify digital marketing opportunities to understand the need for action in your organization

    Identify the untapped digital marketing value in your organization to understand where your organization needs to improve.

    • Digital Marketing Capability Builder Tool

    3. Mobilize for action: get stakeholder buy-in

    Develop a plan for communicating with stakeholders to ensure buy-in to the digital marketing capability building project.

    • Digital Marketing Communication Deck

    4. Identify the product/segment-specific digital marketing landscape to identify required IT capabilities

    Assess how well each digital channel reaches target segments. Identify the capabilities that must be built to enable digital channels.

    5. Create a roadmap for building capabilities to enable digital marketing

    Assess the people, processes, and technologies required to build required capabilities and determine the best fit with your organization.

    [infographic]

    Workshop: Build IT Capabilities to Enable Digital Marketing Success

    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 Digital Marketing Opportunities

    The Purpose

    Determine the fit of each digital channel with your organizational goals.

    Determine the fit of digital channels with your organizational structure and business model.

    Compare the fit of digital channels with your organization’s current levels of use to:Identify missed opportunities your organization should capitalize on.Identify digital channels that your organization is wasting resources on.

    Identify missed opportunities your organization should capitalize on.

    Identify digital channels that your organization is wasting resources on.

    Key Benefits Achieved

    IT department achieves consensus around which opportunities need to be pursued.

    Understanding that continuing to pursue excellent-fit digital channels that your organization is currently active on is a priority.

    Identification of the channels that stopping activity on could free up resources for.

    Activities

    1.1 Define and prioritize organizational goals.

    1.2 Assess digital channel fit with goals and organizational characteristics.

    1.3 Identify missed opportunities and wasted resources in your digital channel mix.

    1.4 Brainstorm creative ways to pursue untapped digital channels.

    Outputs

    Prioritized list of organizational goals.

    Assigned level of fit to digital channels.

    List of digital channels that represent missed opportunities or wasted resources.

    List of brainstormed ideas for pursuing digital channels.

    2 Identify Your Product-Specific Digital Marketing Landscape

    The Purpose

    Identify the digital channels that will be used for specific products and segments.

    Identify the IT capabilities that must be built to enable digital channels.

    Prioritize the list of IT capabilities.

    Key Benefits Achieved

    IT and marketing achieve consensus around which digital channels will be pursued for specific product-segment pairings.

    Identification of the capabilities that IT must build.

    Activities

    2.1 Assess digital channel fit with specific products.

    2.2 Identify the digital usage patterns of target segments.

    2.3 Decide precisely which digital channels you will use to sell specific products to specific segments.

    2.4 Identify and prioritize the IT capabilities that need to be built to succeed on each digital channel.

    Outputs

    Documented channel fit with products.

    Documented channel usage by target segments.

    Listed digital channels that will be used for each product-segment pairing.

    Listed and prioritized capabilities that must be built to enable success on necessary digital channels.

    3 Enable Digital Marketing Capabilities and Leverage Analytics

    The Purpose

    Identification of the best possible way to build IT capabilities for all channels.

    Creation of a plan for leveraging transformational analytics to supercharge your digital marketing strategy.

    Key Benefits Achieved

    IT understanding of the costs and benefits of capability building options (people, process, and technology).

    Information about how specific technology vendors could fit with your organization.

    IT identification of opportunities to leverage transformational analytics in your organization.

    Activities

    3.1 Identify the gaps in your IT capabilities.

    3.2 Evaluate options for building capabilities.

    3.3 Identify opportunities for transformational analytics.

    Outputs

    A list of IT capability gaps.

    An action plan for capability building.

    A plan for leveraging transformational analytics.

    Passwordless Authentication

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    • Parent Category Name: End-User Computing
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    • Stakeholders believe that passwords are still good enough.
    • You don’t know how the vendor products match to the capabilities you need to offer.
    • What do you need to test when you prototype these new technologies?
    • What associated processes/IT domains will be impacted or need to be considered?

    Our Advice

    Critical Insight

    Passwordless is the right direction even if it’s not your final destination.

    Impact and Result

    • Be able to handle objections from those who believe passwords are still “fine.”
    • Prioritize the capabilities you need to offer the enterprise, and match them to products/features you can buy from vendors.
    • Integrate passwordless initiatives with other key functions (cloud, IDaM, app rationalization, etc.).

    Passwordless Authentication Research & Tools

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

    1. Passwordless Authentication – Know when you’ve been beaten!

    Back in 2004 we were promised "the end of passwords" – why, then, are we still struggling with them today?

    • Passwordless Authentication Storyboard
    [infographic]

    Further reading

    Passwordless Authentication

    Know when you've been beaten!

    Executive Summary

    Your Challenge

    • The IT world is an increasingly dangerous place.
    • Every year literally billions of credentials are compromised and exposed on the internet.
    • The average employee has between 27 and 191 passwords to manage.
    • The line between business persona and personal persona has been blurred into irrelevancy.
    • You need a method of authenticating users that is up to these challenges

    Common Obstacles

    • Legacy systems aside (wouldn't that be nice) this still won't be easy.
    • Social inertia – passwords worked before, so surely, they can still work today! Besides, users don't want to change.
    • Analysis paralysis – I don't want to get this wrong! How do I choose something that is going to be at the core of my infrastructure for the next 10 years?
    • Identity management – how can you fix authentication when people have multiple usernames?

    Info-Tech's Approach

    • Inaction is not an option.
    • Most commercial, off-the-shelf apps are moving to a SaaS model, so start your efforts with them.
    • Your existing vendors already have technologies you are underusing or ignoring – stop that!
    • Your users want this change – they just might not know it yet…
    • Much like zero trust network access, the journey is more important than the destination. Incremental steps on the path toward passwordless authentication will still yield significant benefits.

    Info-Tech Insight

    Users have been burdened with unrealistic expectations when it comes to their part in maintaining enterprise security. Given the massive rise in the threat landscape, it is time for Infrastructure to adopt a user-experience-based approach if we want to move the needle on improving security posture.

    Password Security Fallacy

    "If you buy the premise…you buy the bit."
    Johnny Carson

    We've had plenty of time to see this coming.

    Why haven't we done something?

    • Passwords are a 1970s construct.
    • End-users are complexity averse.
    • Credentials are leaked all the time.
    • New technologies will defeat even the most complex passwords.

    Build the case, both to business stakeholders and end users, that "password" is not a synonym for "security."

    Be ready for some objection handling!

    This is an image of Bill Gates and Gavin Jancke at the 2004 RSA Conference in San Francisco, CA

    Image courtesy of Microsoft

    RSA Conference, 2004
    San Francisco, CA

    "There is no doubt that over time, people are going to rely less and less on passwords. People use the same password on different systems, they write them down and they just don't meet the challenge for anything you really want to secure."
    Bill Gates

    What about "strong" passwords?

    There has been a password arms race going on since 1988

    A massive worm attack against ARPANET prompted the initial research into password strength

    Password strength can be expressed as a function of randomness or entropy. The greater the entropy the harder for an attacker to guess the password.

    This is an image of Table 1 from Google Cloud Solutions Architects.  it shows the number of bits of entropy for a number of Charsets.

    Table: Modern password security for users
    Ian Maddox and Kyle Moschetto, Google Cloud Solutions Architects

    From this research, increasing password complexity (length, special characters, etc.) became the "best practice" to secure critical systems.

    How many passwords??

    XKCD Comic #936 (published in 2011)

    This is an image of XKCD Comic # 936.

    Image courtesy of Randall Munroe XKCD Comics (CC BY-NC 2.5)

    It turns out that humans however are really bad at remembering complex passwords.

    An Intel study (2016) suggested that the average enterprise employee needed to remember 27 passwords. A more recent study from LastPass puts that number closer to 191.

    PEBKAC
    Problem Exists Between Keyboard and Chair

    Increasing entropy is the wrong way to fight this battle – which is good because we'd lose anyway.

    Over the course of a single year, researchers at the University of California, Berkeley identified and tracked nearly 2 billion compromised credentials.

    3.8 million were obtained via social engineering, another 788K from keyloggers. That's approx. 250,000 clear text credentials harvested every week!

    The entirety of the password ecosystem has significant vulnerabilities in multiple areas:

    • Unencrypted server- and client-side storage
    • Sharing
    • Reuse
    • Phishing
    • Keylogging
    • Question-based resets

    Even the 36M encrypted credentials compromised every week are just going to be stored and cracked later.

    Source: Google, University of California, Berkeley, International Computer Science Institute

     data-verified=22B hash/s">

    Image courtesy of NVIDIA, NVIDIA Grace

    • Current GPUs (2021) have 200+ times more cracking power than CPU systems.

    <8h 2040-bit RSA Key

    Image: IBM Quantum System One (CES 2020) by IBM Research is licensed under CC BY-ND 2.0

    • Quantum computing can smash current encryption methods.
    • Google engineers have demonstrated techniques that reduce the number of qubits required from 1B to a mere 20 million

    Enabling Technologies

    "Give me a place to stand, and a lever long enough, and I will move the world."
    Archimedes

    Technology gives us (too many) options

    The time to prototype is NOW!

    Chances are you are already paying for one or more of these technologies from a current vendor:

    • SSO, password managers
    • Conditional access
    • Multifactor
    • Hardware tokens
    • Biometrics
    • PINs

    Address all three factors of authentication

    • Something the user knows
    • Something the user has
    • Something the user is

    Global Market of $12.8B
    ~16.7% CAGR
    Source: Report Linker, 2022.

    Focus your prototype efforts in four key testing areas

    • Deployment
    • User adoption/training
    • Architecture (points of failure)
    • Disaster recovery

    Three factors for positive identification

    Passwordless technologies focus on alternate authentication factors to supplement or replace shared secrets.

    Knows: A secret shared between the user and the system; Has: A token possessed by the user and identifiable as unique by the system; Is: A distinctive and repeatable attribute of the user sampled by the system

    Something you know

    Shared secrets have well-known significant modern-day problems, but only when used in isolation. For end users, consider time-limited single use options, password managers, rate-limited login attempts, and reset rather than retrieval requests. On the system side, never forget strong cryptographic hashing along with a side of salt and pepper when storing passwords.

    Something you have

    A token (now known as a cryptographic identification device) such as a pass card, fob, smartphone, or USB key that is expected to be physically under the control of the user and is uniquely identifiable by the system. Easily decoupled in the event the token is lost, but potentially expensive and time-consuming to reprovision.

    Something you are or do

    Commonly referred to as biometrics, there are two primary classes. The first is measurable physical characteristics of the user such as a fingerprint, facial image, or retinal scan. The second class is a series of behavioral traits such as expected location, time of day, or device. These traits can be linked together in a conditional access policy.

    Unlike other authentication factors, biometrics DO NOT provide for exact matches and instead rely on a confidence interval. A balance must be struck against the user experience of false negatives and the security risk of a false positive.

    Prototype testing criteria

    Deployment

    Does the solution support the full variety of end-user devices you have in use?

    Can the solution be configured with your existing single sign-on or central identity broker?

    User Experience

    Users already want a better experience than passwords.

    What new behavior are you expecting (compelling) from the user?

    How often and under what conditions will that behavior occur?

    Architecture

    Where are the points of failure in the solution?

    Consider technical elements like session thresholds for reauthorization, but also elements like automation and self-service.

    Disaster Recovery

    Understand the exact responsibilities Infra&Ops have in the event of a system or user failure.

    As many solutions are based in the public cloud, manage stakeholder expectations accordingly.

    Next Steps

    "Move the goalposts…and declare victory."
    Informal Fallacy (yet very effective…)

    It is more a direction than a destination…

    Get the easy wins in the bank and then lay the groundwork for the long campaign ahead.

    You're not going to get to a passwordless world overnight. You might not even get there for many years. But an agile approach to the journey ensures you will realize value every step of the way:

    • Start in the cloud:
    • Choose a single sign-on platform such as Azure Active Directory, Okta, Auth0, AWS IAM, TruSONA, HYPR, or others. Document Your Cloud Strategy.
    • Integrate the SaaS applications from your portfolio with your chosen platform.
    • Establish visibility and rationalize identity management:
      • Accounts with elevated privileges present the most risk – evaluate your authentication factors for these accounts first.
      • There is elegance (and deployment success) in Simplifying Identity & Access Management.
    • Pay your tech debt:

    Fast IDentity Online (2) is now part of the web's DNA and is critical for digital transformation

    • IoT
    • Anywhere remote work
    • Government identity services
    • Digital wallets

    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.
    Steel, Amber. "LastPass Reveals 8 Truths about Passwords in the New Password Exposé." LastPass Blog, 1 Nov. 2017. Web.
    "The Global Passwordless Authentication Market Size Is Estimated to Be USD 12.79 Billion in 2021 and Is Predicted to Reach USD 53.64 Billion by 2030 With a CAGR of 16.7% From 2022-2030." Report Linker, 9 June 2022. Web.
    "What Is Data-Archiving?" Proofpoint. Accessed 07 Mar 2022.

    Diagnose Brand Health to Improve Business Growth

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    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions
    • Low number and quality of leads generated, poor conversion rates, and declining customer retention and loyalty
    • Higher customer acquisition vs. marketing costs
    • Difficulties attracting and keeping talent, partners, and investors
    • Slow or low growth and devaluation of the brand due to low brand equity

    Our Advice

    Critical Insight

    • The Brand: Intangible, yet a company’s most valuable asset.
    • Data-driven decisions for a strong brand.
    • Investing in brand-building efforts means investing in your success.

    Impact and Result

    • Increase brand awareness and equity.
    • Build trust and improve customer retention and loyalty.
    • Achieve higher and faster growth.

    Diagnose Brand Health to Improve Business Growth Research & Tools

    Diagnose Brand Health to Improve Business Growth Executive Brief – A deck to help diagnose brand health to improve business growth.

    In this executive brief, you will discover the importance of a strong brand on the valuation, growth, and sustainability of your company. You will also learn about SoftwareReviews' approach to assessing current performance and gaining visibility into areas of improvement.

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

    1. Brand Diagnostic and Analysis Tool Kit

    A comprehensive set of tools to gather and interpret qualitative and quantitative brand performance metrics.

    • Brand Diagnostic Tool - Digital Metrics Analysis Template
    • Brand Diagnostic Tool - Financial Metrics Analysis Template
    • Brand Diagnostic Tool Survey and Interview Questionnaires and Lists Template
    • Survey Emails Best Practices Guidelines
    • Brand Diagnostic Tool - External and Internal Factors Metrics Analysis Template

    2. Brand Diagnostic Executive Presentation

    Fully customizable, pre-built PowerPoint presentation template to communicate the results of the brand performance diagnostic, areas of improvement and trends, as well as your recommendations. It will also allow you to identify and align executive members and key stakeholders on next steps, and set priorities.

    • Brand Diagnostic - Executive Presentation Template

    Infographic

    Further reading

    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 it.

    EXECUTIVE BRIEF

    SoftwareReviews is a division of Info-Tech Research Group Inc., a world-class IT research and consulting firm established in 1997.
    Backed by two decades of IT research and advisory experience, SoftwareReviews offers the most comprehensive insight into the enterprise software landscape and client-vendor relationships.

    Analyst Perspective

    Brand Diagnostic and Monitoring

    In the ever-changing market landscape in which businesses operate, it is imperative to ensure that the brand stays top of mind and quickly adapts. Having a good understanding of where the brand stands and how it performs has become crucial for any company to stand out from its competitors and succeed in a crowded and very dynamic market.

    Unfortunately, the brand does not always receive the attention and importance it deserves, leaving it vulnerable to becoming outdated and unclear to the target audience and to losing its equity.

    Knowing how the brand is perceived, as opposed to how individuals within an organization perceive it, addressing any brand-related issues in a timely manner, and implementing processes to continuously monitor its performance have become key tactics for any company that wants to thrive in today's highly competitive market.

    Photo of Nathalie Vezina, Marketing Research Director, SoftwareReviews Advisory.

    Nathalie Vezina
    Marketing Research Director
    SoftwareReviews Advisory

    Executive Summary

    Your Challenge

    Because it is vulnerable to becoming outdated and unclear to the target audience and to losing its equity, it is essential to ensure that the brand is performing well and to be attentive to these signs of a weakened brand:

    • Low number and quality of leads generated, poor conversion rates, and declining customer retention and loyalty
    • Lack of understanding of the value proposition; lack of interest and interaction with the brand
    • Higher customer acquisition/marketing costs
    • Difficulties attracting and keeping talent, partners, or future investors
    • Low/slow growth; devaluation of the brand due to low brand equity
    Common Obstacles

    Building a strong brand is an everyday challenge, and brand leaders often face what may seem like overwhelming obstacles in achieving their goal. Here are some of the roadblocks they regularly face:

    • Limited visibility on brand perception and overall performance
    • Insufficient supporting information to make clear, undisputable data-driven decisions and convince key stakeholders how to improve brand performance
    • Limited resources (time, budget, headcount, tools) to diagnose, measure, and execute
    • Stakeholders may not be fully aware of the benefits of a strong brand and the impacts that a weak brand can have on the overall performance of the business
    SoftwareReviews’ Approach

    This SoftwareReviews blueprint provides the guidance and tools required to perform a thorough brand diagnostic and enable brand leaders to:

    • Know how the brand performs; pinpoint gaps and areas for improvement
    • Make clear, data-driven recommendations and decisions on how to fix and optimize the brand
    • Communicate, convince key stakeholders, and align on proposed solutions to optimize the brand’s performance
    • Continuously monitor and optimize the brand

    SoftwareReviews Advisory Insight

    The brand is a company’s most valuable asset that should never fall into disrepair. In fact, business leaders should ensure that at least half of their marketing budget is allocated to brand-building efforts.

    What is a brand?

    The brand – both intangible and the most valuable asset for businesses.

    Despite its intangible nature, the brand is at the heart of every business, small and large, around which rotates what drives business success and growth.

    While measuring its real value on the marketplace can be difficult, a brand with high salience will attract and retain customers for as long as it keeps evolving and adapting to its dynamic environment.

    Up to 90% of the total market value of companies is based on intangible assets, such as brand recognition. (Source: Ocean Tomo, 2020)

    Multiple bubbles with the biggest bubble highlighted and labelled 'BRAND'. The other bubbles say 'IDENTITY', 'LOYALTY', 'TRUST', 'STRATEGY', 'GROWTH', 'AWARENESS', and 'VALUE'.

    What makes a brand strong?

    Perception Matters

    The brand reflects the image of a company or a product. The values it conveys and how it’s being perceived have a direct impact on a brand's ability to stand out and grow.

    A brand is strong when it:

    • Projects a positive image
    • Has a clear positioning and value proposition
    • Is authentic and inspiring
    • Conveys values that resonates
    • Is socially engaged
    • Builds awareness
    • Is consistent
    • Delivers on its promise
    • Inspires trust
    “In the past, a brand is what a company told you it was. Today, a brand is what people tell each other it is.” (Source: Mark Schaefer, 2019)

    Investing in building a brand, a top priority for businesses

    Company Valuation

    Branding has become a top priority for companies to increase the value of their business in the marketplace. A good market value is essential to attract and retain investors, obtain future rounds of financing, grow by acquisition, and find buyers.

    The more equity a brand gains, the higher its market value, despite the company’s annual revenue. While annual revenue is factored in the equation, the equity of the brand has a greater impact on the market value. A brand whose market value is lower than its revenue is an important indicator that the brand is weakened and needs to be addressed.

    Revenue and Growth

    Most successful companies are investing heavily in building their brand, and for good reason. A strong brand will deliver the right messaging, and a unique and clear value proposition will resonate with its audience and directly impact customer acquisition costs, outperform competition, enable higher pricing, and increase sales volume and customer lifetime value.

    A strong brand also helps develop partner channels, attract and engage high-value partners, and allow for actionable and incremental KPIs.

    Talent Acquisition and Retention

    Brands with strong values are more attractive to highly skilled talent without having to offer above-market salaries. In addition, when a brand inspires pride and shares common values with employees, it increases their motivation and the company’s retention rate.

    Retaining employees within the company allows for the development of talent and retention of knowledge within the organization, thus contributing to the sustainability of the organization.

    It's no wonder that employer branding has become an essential element of human resources strategies.

    “Sustainable Living Brands are growing 69% faster than the rest of the business and delivering 75% of the company’s growth.” (Source: Unilever, 2019, qtd. in Deloitte, 2021)

    Symptoms of a weakened brand

    Know if your brand is suffering and needs to be fixed.

    Brand leaders experiencing one or more of these brand-related symptoms should consider rebranding or optimizing their brand:
    • Low number and quality of leads generated, poor conversion rates, and declining customer retention and loyalty
    • Higher customer acquisition vs. marketing costs
    • Difficulties attracting and keeping talent, partners, and investors
    • Slow or low growth and devaluation of the brand due to low brand equity

    With visibility into your brand and the supporting data that provides a thorough diagnostic of the brand, combined with ongoing brand performance monitoring, you will have all the information you need to help you drive the brand forward, have a significant impact on business growth, and stand out as a brand leader.

    The largest software companies have an average market cap of 18X their revenue (Source: Companies Market Cap, May 2022)

    Building a strong brand, an everyday challenge

    Brand leaders are often faced with overwhelming obstacles in building a strong brand.

    Limited visibility on brand perception and overall performance Insufficient information to make clear, undisputable data-driven decisions and convince key stakeholders how to improve brand performance Stock image of a person pulling a boulder.
    Misunderstanding of the benefits of a strong brand and negative impacts of a weak brand on business valuation and growth Limited resources (time, budget, headcount, tools) to diagnose, measure, and execute
    Only
    54%
    of businesses have a B2B brand program in place for measuring brand perceptions. (Source: B2B International, 2016) Only
    4%
    of B2B marketing teams measure the impact of their marketing/brand building efforts beyond six months. (Source: LinkedIn’s B2B Institute, 2019) 50%
    of marketing budget is what successful brands spend on average on brand-building efforts. (Source: Les Binet and Peter Field, 2018)
    82% of investors say name recognition is an important factor guiding them in their investment decisions. (Source: Global Banking & Finance Review, 2018) 77% of B2B marketers say branding is crucial for growth. (Source: Circle Research)

    Making brand performance visible

    Implement data-driven strategies and make fact-based decisions to continuously optimize brand performance.

    Diagnose your brand’s health
    Know how your brand is being perceived and have visibility on its performance.
    Cycle titled 'BRAND' with steps 'Diagnose', 'Identify', 'Fix', 'Keep Monitoring' and back to 'Diagnose'. Identify trends and areas of improvement
    Rely on undisputable and reliable data to make clear decisions and educate and communicate with key stakeholders.
    Keep monitoring your brand’s performance
    Stay on top of the game and keep away competitors by continuously monitoring your brand’s health.
    Fix issues with your brand in a timely manner
    Don’t lose the momentum. Achieve better results and have a greater impact on your success and chances to grow.

    Qualitative and quantitative brand performance measures

    Segmented by SoftwareReviews Advisory into three categories for a comprehensive diagnostic.

    Icon of a megaphone. Icon of a head with puzzle pieces. Icon of coins.
    Brand Equity
    • Awareness
    • Perception
    • Positioning
    • Recognition/recall
    • Trust
    Buyer’s Behavior
    • Interaction with the brand
    • Preference
    • Purchase intent
    • Product reviews
    • Social engagement
    • Website traffic
    • Lead generation
    Financial
    • Revenue
    • Profit margin
    • Customer lifetime value (CLV)
    • Customer acquisition cost (CAC)
    • Intangible asset market value (IAMV)

    Benefits of a strong and healthy brand

    A healthy brand is the foundation of your success.

    Ensure a better understanding of the value proposition and positioning Drive more interest, interaction, and traction Increase brand awareness and equity Generate higher number and quality of leads
    Achieve higher and faster conversion rate Build trust and improve customer retention and loyalty Attract and keep talent, partners, and investors Achieve higher and faster growth

    Visual explaining the brand diagnostic methodology: 1. data collection and analysis; and 2. presentation and alignment. Outcomes: gain visibility into the brand's performance, highlight areas for improvement, and make data-driven decisions.

    Who benefits from diagnosing the brand?

    This Research Is Designed for:

    Brand leaders who are looking to:

    • Detect and monitor brand performance, issues, trends, and areas of improvement
    • Optimize and fix their brand
    • Develop strategies, and make recommendations and decisions based on facts
    • Get the support they need from key stakeholders
    This Research Will Help You:
    • Get the visibility you need on your brand’s performance
    • Pinpoint brand issues, trends, and areas of improvement
    • Develop data-driven strategies, and make recommendations and decisions based on facts
    • Communicate with and convince key stakeholders
    • Get the support you need from key stakeholders
    • Put in place new diagnostic and monitoring processes to continually improve your brand
    This Research Will Also Assist:
    • Sales with qualified lead generation and customer retention and loyalty
    • Human Resources in their efforts to attract and retain talent
    • The overall business with growth and increased market value
    This Research Will Help Them:
    • Have a better understanding of the importance of a strong brand on business growth and valuation
    • Align on next steps

    SoftwareReviews’ Brand Diagnostic Methodology

    0. Communication & Alignment 1. Data Collection 2. Data Analysis & Interpretation 3. Report & Presentation
    Phase Steps
    1. Engage and unify the team
    2. Communicate and present
    3. Align on next steps
    1. Identify and document internal and external changes affecting the brand
    2. Conduct internal and external brand perception surveys
    3. Gather customer loyalty feedback
    4. Collect digital performance metrics
    1. Analyze data collected
    2. Identify issues, trends, gaps, and inconsistencies
    3. Compare data with current brand statement
    1. Build report with recommendations
    2. Prioritize brand fixes from high to low positive impact
    3. Build presentation
    Phase Outcomes
    • Importance of the brand is recognized
    • Endorsement and prioritization
    • Support and resources
    • All relevant data/information is collected in one place
    • Visibility on the performance of the brand
    • All the data in hand to support recommendations and make informed decisions
    • Visibility and clear understanding of the brand’s health and how to fix or improve its performance

    Insight summary

    The Brand: Intangible, yet a company’s most valuable asset

    Intangible assets, such as brand recognition, account for almost all of a company’s value.1 Despite its intangible nature, the brand is at the heart of every business and has a direct impact on business growth, profitability, and revenue. While measuring its real value on the marketplace can be difficult, a brand with high traction will attract customers and keep them for as long as it keeps evolving and adapting to its dynamic environment.

    Making brand issues visible

    Having a clear understanding of how the brand performs has become crucial for any company that wants to stand out from its competitors and succeed in a crowded and highly dynamic marketplace.

    Data-driven decisions for a strong brand

    Intuition-based or uninformed decisions are obsolete. Brand leaders must base their decisions on facts to be able to convince key stakeholders.

    Building a strong brand, an everyday challenge

    Brand leaders often face overwhelming obstacles building strong brands. They need guidance and tools to support them to drive the business forward.

    Get team buy-in and alignment

    Brand leaders must ensure that the key stakeholders are aware of the importance of a strong brand to business growth and value increase and that they are aligned and committed to the efforts required to build a successful brand.

    Investing in brand-building efforts means investing in your success

    Successful business leaders allocate at least half of their marketing budget2 to brand-building efforts, enabling them to set themselves apart, significantly increase their market share, grow their business, and thrive in a highly competitive marketplace.

    Guided Implementation

    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.

    What does a typical GI on this topic look like?

    Brand Diagnostic

    Data Analysis & Interpretation

    Report & Presentation Building

    Communication & Alignment

    Call #1: Discuss concept and benefits of performing a brand diagnostic. Identify key stakeholders. Anticipate concerns and objections.

    Call #2: Discuss how to use the tool. Identify resources and internal support needed.

    Call #3: Review results. Discuss how to identify brand issues, areas of improvement, and trends based on data collected and to interpret key metrics.

    Call #4 (optional): Continue discussion from call #3.

    Call #5: Discuss recommendations and best practices to fix the issues identified and resources required.

    Call #6: Discuss purpose and how to build the report and presentation, Prioritize the brand fixes from high to low positive impact.

    Call #7 (optional): Follow up with call on report and presentation preparation.

    Call #8: Discuss key points to focus on when presenting to key stakeholders and the desired outcome.

    Call #9: Discuss how to leverage brand diagnostic tools now in place and the benefits of continuously monitoring the brand.

    Call #10: Debrief and determine how we can help with next steps.

    Key deliverable:

    Blueprint deliverables

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

    Brand Diagnostic Presentation Template

    Sample of the key deliverable, the Brand Diagnostic Presentation Template.

    Pre-built and fully customizable PowerPoint template to communicate key findings, areas of improvements, and recommendations to key stakeholders, align on next steps, and prioritize.

    Brand Diagnostic Report Dashboard

    Sample of the Brand Diagnostic Report Dashboard deliverable.

    Auto-filling dashboard built into the Brand Diagnostic Tool Kit. Ready to be saved and shared as a PDF.

    Brand Diagnostic Tool Kit

    Sample of the Brand Diagnostic Tool Kit deliverable.

    Comprehensive Excel Workbook to gather and interpret brand performance metrics. Includes survey questionnaires.

    Bibliography

    “71% of Consumers More Likely to Buy a Product or Service From a Name They Recognise.” Global Banking & Finance Review, 5 December 2018. Web.

    B2B Marketing Leaders Report. Circle Research, n.d. Web.

    Binet, Les, and Peter Field. Effectiveness In Context: A manual for Brand Building. Institute of Practitioners in Advertising, 12 October 2018. Ebook.

    “Current Trends in the World of B2B Marketing, 2016 Survey.” B2B International, 2016. Web.

    Intangible Asset Market Value Study. Ocean Tomo, July 2020. Web.

    Largest Software Companies By Market Cap. Companies Market Cap, May 2022. Web.

    “Unilever, purpose-led brands outperform.” Unilever, 6 October 2019. Web. qtd. in Kounkel, Suzanne, Amy Silverstein, and Kathleen Peeters. “2021 Global Marketing Trends.” Deloitte Insights, 2020. Web.

    Schaefer, Mark. “The Future Of Branding Is Human Impressions.” Mark Schaefer Blog, 3 June 2019. Web.

    The 5 Principles Of Growth In B2B Marketing - Empirical Observations on B2B Effectiveness. LinkedIn B2B Institute, 2019. Web.

    Visual explaining the brand diagnostic methodology: 1. data collection and analysis; and 2. presentation and alignment. Outcomes: gain visibility into the brand's performance, highlight areas for improvement, and make data-driven decisions.

    Who benefits from diagnosing the brand?

    This Research Is Designed for:

    Brand leaders who are looking to:

    • Detect and monitor brand performance, issues, trends, and areas of improvement
    • Optimize and fix their brand
    • Develop strategies, and make recommendations and decisions based on facts
    • Get the support they need from key stakeholders
    This Research Will Help You:
    • Get the visibility you need on your brand’s performance
    • Pinpoint brand issues, trends, and areas of improvement
    • Develop data-driven strategies, and make recommendations and decisions based on facts
    • Communicate with and convince key stakeholders
    • Get the support you need from key stakeholders
    • Put in place new diagnostic and monitoring processes to continually improve your brand
    This Research Will Also Assist:
    • Sales with qualified lead generation and customer retention and loyalty
    • Human Resources in their efforts to attract and retain talent
    • The overall business with growth and increased market value
    This Research Will Help Them:
    • Have a better understanding of the importance of a strong brand on business growth and valuation
    • Align on next steps

    SoftwareReviews’ Brand Diagnostic Methodology

    0. Communication & Alignment 1. Data Collection 2. Data Analysis & Interpretation 3. Report & Presentation
    Phase Steps
    1. Engage and unify the team
    2. Communicate and present
    3. Align on next steps
    1. Identify and document internal and external changes affecting the brand
    2. Conduct internal and external brand perception surveys
    3. Gather customer loyalty feedback
    4. Collect digital performance metrics
    1. Analyze data collected
    2. Identify issues, trends, gaps, and inconsistencies
    3. Compare data with current brand statement
    1. Build report with recommendations
    2. Prioritize brand fixes from high to low positive impact
    3. Build presentation
    Phase Outcomes
    • Importance of the brand is recognized
    • Endorsement and prioritization
    • Support and resources
    • All relevant data/information is collected in one place
    • Visibility on the performance of the brand
    • All the data in hand to support recommendations and make informed decisions
    • Visibility and clear understanding of the brand’s health and how to fix or improve its performance

    Insight summary

    The Brand: Intangible, yet a company’s most valuable asset

    Intangible assets, such as brand recognition, account for almost all of a company’s value.1 Despite its intangible nature, the brand is at the heart of every business and has a direct impact on business growth, profitability, and revenue. While measuring its real value on the marketplace can be difficult, a brand with high traction will attract customers and keep them for as long as it keeps evolving and adapting to its dynamic environment.

    Making brand issues visible

    Having a clear understanding of how the brand performs has become crucial for any company that wants to stand out from its competitors and succeed in a crowded and highly dynamic marketplace.

    Data-driven decisions for a strong brand

    Intuition-based or uninformed decisions are obsolete. Brand leaders must base their decisions on facts to be able to convince key stakeholders.

    Building a strong brand, an everyday challenge

    Brand leaders often face overwhelming obstacles building strong brands. They need guidance and tools to support them to drive the business forward.

    Get team buy-in and alignment

    Brand leaders must ensure that the key stakeholders are aware of the importance of a strong brand to business growth and value increase and that they are aligned and committed to the efforts required to build a successful brand.

    Investing in brand-building efforts means investing in your success

    Successful business leaders allocate at least half of their marketing budget2 to brand-building efforts, enabling them to set themselves apart, significantly increase their market share, grow their business, and thrive in a highly competitive marketplace.

    Guided Implementation

    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.

    What does a typical GI on this topic look like?

    Brand Diagnostic

    Data Analysis & Interpretation

    Report & Presentation Building

    Communication & Alignment

    Call #1: Discuss concept and benefits of performing a brand diagnostic. Identify key stakeholders. Anticipate concerns and objections.

    Call #2: Discuss how to use the tool. Identify resources and internal support needed.

    Call #3: Review results. Discuss how to identify brand issues, areas of improvement, and trends based on data collected and to interpret key metrics.

    Call #4 (optional): Continue discussion from call #3.

    Call #5: Discuss recommendations and best practices to fix the issues identified and resources required.

    Call #6: Discuss purpose and how to build the report and presentation, Prioritize the brand fixes from high to low positive impact.

    Call #7 (optional): Follow up with call on report and presentation preparation.

    Call #8: Discuss key points to focus on when presenting to key stakeholders and the desired outcome.

    Call #9: Discuss how to leverage brand diagnostic tools now in place and the benefits of continuously monitoring the brand.

    Call #10: Debrief and determine how we can help with next steps.

    Key deliverable:

    Blueprint deliverables

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

    Brand Diagnostic Presentation Template

    Sample of the key deliverable, the Brand Diagnostic Presentation Template.

    Pre-built and fully customizable PowerPoint template to communicate key findings, areas of improvements, and recommendations to key stakeholders, align on next steps, and prioritize.

    Brand Diagnostic Report Dashboard

    Sample of the Brand Diagnostic Report Dashboard deliverable.

    Auto-filling dashboard built into the Brand Diagnostic Tool Kit. Ready to be saved and shared as a PDF.

    Brand Diagnostic Tool Kit

    Sample of the Brand Diagnostic Tool Kit deliverable.

    Comprehensive Excel Workbook to gather and interpret brand performance metrics. Includes survey questionnaires.

    Bibliography

    “71% of Consumers More Likely to Buy a Product or Service From a Name They Recognise.” Global Banking & Finance Review, 5 December 2018. Web.

    B2B Marketing Leaders Report. Circle Research, n.d. Web.

    Binet, Les, and Peter Field. Effectiveness In Context: A manual for Brand Building. Institute of Practitioners in Advertising, 12 October 2018. Ebook.

    “Current Trends in the World of B2B Marketing, 2016 Survey.” B2B International, 2016. Web.

    Intangible Asset Market Value Study. Ocean Tomo, July 2020. Web.

    Largest Software Companies By Market Cap. Companies Market Cap, May 2022. Web.

    “Unilever, purpose-led brands outperform.” Unilever, 6 October 2019. Web. qtd. in Kounkel, Suzanne, Amy Silverstein, and Kathleen Peeters. “2021 Global Marketing Trends.” Deloitte Insights, 2020. Web.

    Schaefer, Mark. “The Future Of Branding Is Human Impressions.” Mark Schaefer Blog, 3 June 2019. Web.

    The 5 Principles Of Growth In B2B Marketing - Empirical Observations on B2B Effectiveness. LinkedIn B2B Institute, 2019. Web.

    Get the Best Discount Possible With a Data-Driven Negotiation Approach

    • Buy Link or Shortcode: {j2store}610|cart{/j2store}
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    • Parent Category Name: Selection & Implementation
    • Parent Category Link: /selection-and-implementation
    • Vendors have well-honed negotiation strategies that don’t prioritize the customer’s best interest, and they will take advantage of your weaknesses to extract as much money as they can from the deal.
    • IT teams are often working with time pressure and limited resources or experience in negotiation. Even those with an experienced procurement team aren’t evenly matched with the vendor when it comes to the ins and outs of the product.
    • As a result, many have a poor negotiation experience and fail to get the discount they wanted, ultimately leading to dissatisfaction with the vendor.

    Our Advice

    Critical Insight

    • Requirements should always come first, but IT leaders are under pressure to get discounts and cost ends up playing a big role in decision making.
    • Cost is one of the top factors influencing satisfaction with software and the decision to leave a vendor.
    • The majority of software customers are receiving a discount. If you’re in the minority who are not, there are strategies you can and should be using to improve your negotiating skills. Discounts of up to 40% off list price are available to those who enter negotiations prepared.

    Impact and Result

    • SoftwareReviews data shows that there are multiple benefits to taking a concerted approach to negotiating a discount on your software.
    • The most common ways of getting a discount (e.g. volume purchasing) aren’t necessarily the best methods. Choose a strategy that is appropriate for your organization and vendor relationship and that focuses on maximizing the value of your investment for the long term. Optimizing usage or licenses as a discount strategy leads to the highest software satisfaction.
    • Using a vendor negotiation service or advisory group was one of the most successful strategies for receiving a discount. If your team doesn’t have the right negotiation expertise, Info-Tech can help.

    Get the Best Discount Possible With a Data-Driven Negotiation Approach Research & Tools

    Prepare to negotiate

    Leverage insights from SoftwareReviews data to best position yourself to receive a discount through your software negotiations.

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

    • Get the Best Discount Possible with a Data-Driven Negotiation Approach Storyboard
    [infographic]

    Slash Spending by Optimizing Your Software Maintenance and Support

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    • member rating overall impact (scale of 10): N/A
    • member rating average dollars saved: N/A
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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Perpetual software maintenance (SW M&S) is an annual budget cost that increases almost yearly. You don’t really know if there is value in it, if its required by the vendor, or if there are opportunities for cost savings.
    • Most organizations never reap the full benefits of software M&S. They blindly send renewal fees to the vendor every year without validating their needs or the value of the maintenance. In addition, your vendor maintenance may be under contract and you aren’t sure what the obligations are for both parties.

    Our Advice

    Critical Insight

    • Analyzing the benefits contained within a vendor’s software M&S will provide the actual cost value of the M&S and whether there are critical support requirements vs. “nice to have” benefits.
    • Understanding the value and your requirement for M&S will allow you to make an informed decision on how best to optimize and reduce your annual software M&S spend.
    • Use a holistic approach when looking to reduce your software M&S spend. Review the entire portfolio for targeted reduction that will result in short- and long-term savings.
    • When targeting vendors to negotiate M&S price or coverage reduction, engaging them three to six months in advance of renewal will provide you with more time to effectively negotiate and not fall to the pressure of time.

    Impact and Result

    • Reduce annual costs for software maintenance and support.
    • Complete a value of investment (VOI) analysis of your software M&S for strategic vendors.
    • Maximize value of the software M&S by using all the benefits being paid for.
    • Right-size support coverage for your requirements.
    • Prioritize software vendors to target for cost reduction and optimization.

    Slash Spending by Optimizing Your Software Maintenance and Support Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to prioritize your software vendors and effectively target M&S for reduction, optimization, or elimination.

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

    1. Evaluate

    Evaluate what software maintenance you are spending money.

    • Slash Spending by Optimizing Your Software Maintenance and Support – Phase 1: Evaluate
    • Software M&S Inventory and Prioritization Tool

    2. Establish

    Establish your software M&S requirements and coverage.

    • Slash Spending by Optimizing Your Software Maintenance and Support – Phase 2: Establish
    • Software Vendor Classification Tool

    3. Optimize

    Optimize your M&S spend, reduce or eliminate, where applicable.

    • Slash Spending by Optimizing Your Software Maintenance and Support – Phase 3: Optimize
    • Software M&S Value of Investment Tool
    • Software M&S Cancellation Decision Guide
    • Software M&S Executive Summary Template
    • Software M&S Cancellation Support Template
    [infographic]

    Recruit and Retain People of Color in IT

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    • member rating overall impact (scale of 10): 9.7/10 Overall Impact
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    • Parent Category Name: Engage
    • Parent Category Link: /engage
    • Organizations have been trying to promote equality for many years. Diversity and inclusion strategies and a myriad of programs have been implemented in companies across the world. Despite the attempts, many organizations still struggle to ensure that their workforce is representative of the populations they support or want to support.
    • IT brings another twist. Many IT companies and departments are based on the culture of white males, and underrepresented ethnic communities find it more of a challenge to fit in.
    • This sometimes means that talented minorities are less incentivized to join or stay in technology.

    Our Advice

    Critical Insight

    • Diversity and inclusion cannot be a one-time campaign or a one-off initiative.
    • For real change to happen, every leader needs to internalize the value of creating and retaining diverse teams.

    Impact and Result

    • To stay competitive, IT leaders need to be more involved and commit to a plan to recruit and retain people of color in their departments and organizations. A diverse team is an answer to innovation that can differentiate your company.
    • Treat recruiting and retaining a diverse team as a business challenge that requires full engagement. Info-Tech offers a targeted solution that will help IT leaders build a plan to attract, recruit, engage, and retain people of color.

    Recruit and Retain People of Color in IT Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should recruit and retain people of color in your IT department or organization, review Info-Tech’s methodology, and understand the ways we can support you in this endeavor.

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

    1. Recruit people of color in IT

    Diverse teams are necessary to foster creativity and guide business strategies. Overcome limitations by recruiting people of color and creating a diverse workforce.

    • Recruit and Retain People of Color in IT – Phase 1: Recruit People of Color in IT
    • Support Plan
    • IT Behavioral Interview Question Library

    2. Retain people of color in IT

    Underrepresented employees benefit from an expansive culture. Create an inclusive environment and retain people of color and promote value within your organization.

    • Recruit and Retain People of Color in IT – Phase 2: Retain People of Color in IT

    Infographic

    Workshop: Recruit and Retain People of Color 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 Setting the Stage

    The Purpose

    Introduce challenges and concerns around recruiting and retaining people of color.

    Key Benefits Achieved

    Gain a sense of direction.

    Activities

    1.1 Introduction to diversity conversations.

    1.2 Assess areas to focus on and determine what is right, wrong, missing, and confusing.

    1.3 Obtain feedback from your team about the benefits of working at your organization.

    1.4 Establish your employee value proposition (EVP).

    1.5 Discuss and establish your recruitment goals.

    Outputs

    Current State Analysis

    Right, Wrong, Missing, Confusing Quadrant

    Draft EVP

    Recruitment Goals

    2 Refine Your Recruitment Process

    The Purpose

    Identify areas in your current recruitment process that are preventing you from hiring people of color.

    Establish a plan to make improvements.

    Key Benefits Achieved

    Optimized recruitment process

    Activities

    2.1 Brainstorm and research community partners.

    2.2 Review current job descriptions and equity statement.

    2.3 Update job description template and equity statement.

    2.4 Set team structure for interview and assessment.

    2.5 Identify decision-making structure.

    Outputs

    List of community partners

    Updated job description template

    Updated equity statement

    Interview and assessment structure

    Behavioral Question Library

    3 Culture and Management

    The Purpose

    Create a plan for an inclusive culture where your managers are supported.

    Key Benefits Achieved

    Awareness of how to better support employees of color.

    Activities

    3.1 Discuss engagement and belonging.

    3.2 Augment your onboarding materials.

    3.3 Create an inclusive culture plan.

    3.4 Determine how to support your management team.

    Outputs

    List of onboarding content

    Inclusive culture plan

    Management support plan

    4 Close the Loop

    The Purpose

    Establish mechanisms to gain feedback from your employees and act on them.

    Key Benefits Achieved

    Finalize the plan to create your diverse and inclusive workforce.

    Activities

    4.1 Ask and listen: determine what to ask your employees.

    4.2 Create your roadmap.

    4.3 Wrap-up and next steps.

    Outputs

    List of survey questions

    Roadmap

    Completed support plan

    Accelerate Digital Transformation With a Digital Factory

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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • 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

    Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan

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    • Parent Category Name: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance
    • The demand for qualified cybersecurity professionals far exceeds supply. As a result, organizations are struggling to protect their data against the evolving threat landscape.
    • It is a constant challenge to know what skills will be needed in the future, and when and how to acquire them.

    Our Advice

    Critical Insight

    • Plan for the inevitable. All industries are expected to be affected by the talent gap in the coming years. Plan ahead to address your organization’s future needs.
    • Base skills acquisition decisions on the five key factors to define skill needs. Create an impact scale for the five key factors (data criticality, durability, availability, urgency, and frequency) that reflects your organizational strategy, initiatives, and pressures.
    • A skills gap will always exist to some degree. The threat landscape is constantly changing, and your workforce’s skill sets must evolve as well.

    Impact and Result

    • Organizations must align their security initiatives to talent requirements such that business objectives are achieved and the business is cyber ready.
    • Identify if there are skill gaps in your current workforce.
    • Decide how you’ll acquire needed skills based on characteristics of need for each skill.

    Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop a technical skills acquisition 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. Identify skill needs for target state

    Identify what skills will be needed in your future state.

    • Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan – Phase 1: Identity Skill Needs for Target State
    • Security Initiative Skills Guide
    • Skills Gap Prioritization Tool

    2. Identify technical skill gaps

    Align role requirements with future initiative skill needs.

    • Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan – Phase 2: Identify Technical Skill Gaps
    • Current Workforce Skills Assessment
    • Technical Skills Workbook
    • Information Security Compliance Manager
    • IT Security Analyst
    • Chief Information Security Officer
    • Security Administrator
    • Security Architect

    3. Develop a sourcing plan for future work roles

    Acquire skills based on the impact of the five key factors.

    • Close the InfoSec Skills Gap: Develop a Skills Sourcing Plan for Future Work Roles – Phase 3: Develop a Sourcing Plan for Future Work Roles
    [infographic]

    Workshop: Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing 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 Identify Skill Needs for Target State

    The Purpose

    Determine the skills needed in your workforce and align them to your organization’s security roadmap.

    Key Benefits Achieved

    Insight on what skills your organization will need in the future.

    Activities

    1.1 Understand the importance of aligning security initiatives skill needs with workforce requirements.

    1.2 Identify needed skills for future initiatives.

    1.3 Prioritize the initiative skill gaps.

    Outputs

    Security Initiative Skills Guide

    Skills Gap Prioritization Tool

    2 Define Technical Skill Requirements

    The Purpose

    Identify and create technical skill requirements for key work roles that are needed to successfully execute future initiatives.

    Key Benefits Achieved

    Increased understanding of the NICE Cybersecurity Workforce Framework.

    Standardization of technical skill requirements of current and future work roles.

    Activities

    2.1 Assign work roles to the needs of your future environment.

    2.2 Discuss the NICE Cybersecurity Workforce Framework.

    2.3 Develop technical skill requirements for current and future work roles.

    Outputs

    Skills Gap Prioritization Tool

    Technical Skills Workbook

    Current Workforce Skills Assessment

    3 Acquire Technical Skills

    The Purpose

    Assess your current workforce against their role’s skill requirements.

    Discuss five key factors that aid acquiring skills.

    Key Benefits Achieved

    A method to acquire skills in future roles.

    Activities

    3.1 Continue developing technical skill requirements for current and future work roles.

    3.2 Conduct Current Workforce Skills Assessment.

    3.3 Discuss methods of acquiring skills.

    3.4 Develop a plan to acquire skills.

    Outputs

    Technical Skills Workbook

    Current Workforce Skills Assessment

    Current Workforce Skills Assessment

    Technical Skills Workbook

    Current Workforce Skills Assessment

    Technical Skills Workbook

    Current Workforce Skills Assessment

    4 Plan to Execute Action Plan

    The Purpose

    Assist with communicating the state of the skill gap in your organization.

    Key Benefits Achieved

    Strategy on how to acquire skills needs of the organization.

    Activities

    4.1 Review skills acquisition plan.

    4.2 Discuss training and certification opportunities for staff.

    4.3 Discuss next steps for closing the skills gap.

    4.4 Debrief.

    Outputs

    Technical Skills Workbook

    Determine the Future of Microsoft Project in Your Organization

    • Buy Link or Shortcode: {j2store}357|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
    • member rating average dollars saved: $125,999 Average $ Saved
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    • Parent Category Name: Project Management Office
    • Parent Category Link: /project-management-office
    • You use Microsoft tools to manage your work, projects, and/or project portfolio.
    • Its latest offering, Project for the web, is new and you’re not sure what to make of it. Microsoft says it will soon replace Microsoft Project and Project Online, but the new software doesn’t seem to do what the old software did.
    • The organization has adopted M365 for collaboration and work management. Meetings happen on Teams, projects are scoped a bit with Planner, and the operations group uses Azure Boards to keep track of what they need to get done.
    • Despite your reservations about the new project management software, Microsoft software has become even more ubiquitous.

    Our Advice

    Critical Insight

    • The various MS Project offerings (but most notably the latest, Project for the web) hold the promise of integrating with the rest of M365 into a unified work management solution. However, out of the box, Project for the web and the various platforms within M365 are all disparate utilities that need to be pieced together in a purpose-built manner to make use of them for holistic work management purposes. If you’re looking for a cohesive product out of the box, look elsewhere. If you’re looking to assemble a wide array of work, project, and portfolio management functions across different functions and departments, you may have found what you seek.
    • Rather than choosing tools based on your gaps, assess your current maturity level so that you optimize your investment in the Microsoft landscape.

    Impact and Result

    Follow Info-Tech’s path in this blueprint to:

    • Perform a tool audit to trim your work management tool landscape.
    • Navigate the MS Project and M365 licensing landscape.
    • Make sense of what to do with Project for the web and take the right approach to rolling it out (i.e. DIY or MS Gold Partner driven) based upon your needs.
    • Create an action plan to inform next steps.

    After following the program in this blueprint, you will be prepared to advise the organization on how to best leverage the rapidly shifting work management options within M365 and the place of MS Project within it.

    Determine the Future of Microsoft Project in Your Organization Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should make sense of the MS Project and M365 landscapes, 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. Determine your tool needs

    Assess your work management tool landscape, current state maturity, and licensing needs to inform a purpose-built work management action plan.

    • M365 Task Management Tool Guide
    • M365 Project Management Tool Guide
    • M365 Project Portfolio Management Tool Guide
    • Tool Audit Workbook
    • Force Field Analysis Tool
    • Microsoft Project & M365 Licensing Tool
    • Project Portfolio Management Maturity Assessment Workbook (With Tool Analysis)
    • Project Management Maturity Assessment Workbook (With Tool Analysis)

    2. Weigh your MS Project implementation options

    Get familiar with Project for the web’s extensibility as well as the MS Gold Partner ecosystem as you contemplate the best implementation approach(s) for your organization.

    • None
    • None

    3. Finalize your implementation approach

    Prepare a boardroom-ready presentation that will help you communicate your MS Project and M365 action plan to PMO and organizational stakeholders.

    • Microsoft Project & M365 Action Plan Template

    Infographic

    Workshop: Determine the Future of Microsoft Project in Your Organization

    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 Driving Forces and Risks

    The Purpose

    Assess the goals and needs as well as the risks and constraints of a work management optimization.

    Take stock of your organization’s current work management tool landscape.

    Key Benefits Achieved

    Clear goals and alignment across workshop participants as well as an understanding of the risks and constraints that will need to be mitigated to succeed.

    Current-state insight into the organization’s work management tool landscape.

    Activities

    1.1 Review the business context.

    1.2 Explore the M365 work management landscape.

    1.3 Identify driving forces for change.

    1.4 Analyze potential risks.

    1.5 Perform current-state analysis on work management tools.

    Outputs

    Business context

    Current-state understanding of the task, project, and portfolio management options in M365 and how they align with the organization’s ways of working

    Goals and needs analysis

    Risks and constraints analysis

    Work management tool overview

    2 Determine Tool Needs and Process Maturity

    The Purpose

    Determine your organization’s work management tool needs as well as its current level of project management and project portfolio management process maturity.

    Key Benefits Achieved

    An understanding of your tooling needs and your current levels of process maturity.

    Activities

    2.1 Review tool audit dashboard and conduct the final audit.

    2.2 Identify current Microsoft licensing.

    2.3 Assess current-state maturity for project management.

    2.4 Define target state for project management.

    2.5 Assess current-state maturity for project portfolio management.

    2.6 Define target state for project portfolio management.

    Outputs

    Tool audit

    An understanding of licensing options and what’s needed to optimize MS Project options

    Project management current-state analysis

    Project management gap analysis

    Project portfolio management current-state analysis

    Project portfolio management gap analysis

    3 Weigh Your Implementation Options

    The Purpose

    Take stock of your implementation options for Microsoft old project tech and new project tech.

    Key Benefits Achieved

    An optimized implementation approach based upon your organization’s current state and needs.

    Activities

    3.1 Prepare a needs assessment for Microsoft 365 and Project Plan licenses.

    3.2 Review the business case for Microsoft licensing.

    3.3 Get familiar with Project for the web.

    3.4 Assess the MS Gold Partner Community.

    3.5 Conduct a feasibility test for PFTW.

    Outputs

    M365 and Project Plan needs assessment

    Business case for additional M365 and MS Project licensing

    An understand of Project for the web and how to extend it

    MS Gold Partner outreach plan

    A go/no-go decision for extending Project for the web on your own

    4 Finalize Implementation Approach

    The Purpose

    Determine the best implementation approach for your organization and prepare an action plan.

    Key Benefits Achieved

    A purpose-built implementation approach to help communicate recommendations and needs to key stakeholders.

    Activities

    4.1 Decide on the implementation approach.

    4.2 Identify the audience for your proposal.

    4.3 Determine timeline and assign accountabilities.

    4.4 Develop executive summary presentation.

    Outputs

    An implementation plan

    Stakeholder analysis

    A communication plan

    Initial executive presentation

    5 Next Steps and Wrap-Up (offsite)

    The Purpose

    Finalize your M365 and MS Project work management recommendations and get ready to communicate them to key stakeholders.

    Key Benefits Achieved

    Time saved in developing and communicating an action plan.

    Stakeholder buy-in.

    Activities

    5.1 Complete in-progress deliverables from previous four days.

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

    Outputs

    Finalized executive presentation

    A gameplan to communicate your recommendations to key stakeholders as well as a roadmap for future optimization

    Further reading

    Determine the Future of Microsoft Project in Your Organization

    View your task management, project management, and project portfolio management options through the lens of M365.

    EXECUTIVE BRIEF

    Analyst Perspective

    Microsoft Project is an enigma

    Microsoft Project has dominated its market since being introduced in the 1980s, yet the level of adoption and usage per license is incredibly low.

    The software is ubiquitous, mostly considered to represent its category for “Project Management.” Yet, the software is conflated with its “Portfolio Management” offerings as organizations make platform decisions with Microsoft Project as the incorrectly identified incumbent.

    And incredibly, Microsoft has dominated the next era of productivity software with the “365” offerings. Yet, it froze the “Project” family of offerings and introduced the not-yet-functional “Project for the web.”

    Having a difficult time understanding what to do with, and about, Microsoft Project? You’re hardly alone. It’s not simply a question of tolerating, embracing, or rejecting the product: many who choose a competitor find they’re still paying for Microsoft Project-related licensing for years to come.

    If you’re in the Microsoft 365 ecosystem, use this research to understand your rapidly shifting landscape of options.

    (Barry Cousins, Project Portfolio Management Practice Lead, Info-Tech Research Group)

    Executive Summary

    Your Challenge

    You use Microsoft (MS) tools to manage your work, projects, and/or project portfolio.

    Their latest offering, Project for the web, is new and you’re not sure what to make of it. Microsoft says it will soon replace Microsoft Project and Project Online, but the new software doesn’t seem to do what the old software did.

    The organization has adopted M365 for collaboration and work management. Meetings happen on Teams, projects are scoped a bit with Planner, and the operations group uses Azure Boards to keep track of what they need to get done.

    Despite your reservations about the new project management software, Microsoft software has become even more ubiquitous.

    Common Obstacles

    M365 provides the basic components for managing tasks, projects, and project portfolios, but there is no instruction manual for making those parts work together.

    M365 isn’t the only set of tools at play. Business units and teams across the organization have procured other non-Microsoft tools for work management without involving IT.

    Microsoft’s latest project offering, Project for the web, is still evolving and you’re never sure if it is stable or ready for prime time. The missing function seems to involve the more sophisticated project planning disciplines, which are still important to larger, longer, and costlier projects.

    Common Obstacles

    Follow Info-Tech’s path in this blueprint to:

    • Perform a tool audit to trim your work management tool landscape.
    • Navigate the MS Project and M365 licensing landscape.
    • Make sense of what to do with Project for the web and take the right approach to rolling it out (i.e. DIY or MS Gold Partner driven) for your needs.
    • Create an action plan to inform next steps.

    After following the program in this blueprint, you will be prepared to advise the organization on how to best leverage the rapidly shifting work management options within M365 and the place of MS Project within it.

    M365 and, within it, O365 are taking over

    Accelerated partly by the pandemic and the move to remote work, Microsoft’s market share in the work productivity space has grown exponentially in the last two years.

    70% of Fortune 500 companies purchased 365 from Sept. 2019 to Sept. 2020. (Thexyz blog, 2020)

    In its FY21 Q2 report, Microsoft reported 47.5 million M365 consumer subscribers – an 11.2% increase from its FY20 Q4 reporting. (Office 365 for IT Pros, 2021)

    As of September 2020, there were 258,000,000 licensed O365 users. (Thexyz blog, 2020)

    In this blueprint, we’ll look at what the what the phenomenal growth of M365 means for PMOs and project portfolio practitioners who identify as Microsoft shops

    The market share of M365 warrants a fresh look at Microsoft’s suite of project offerings

    For many PMO and project portfolio practitioners, the footprint of M365 in their organizations’ work management cultures is forcing a renewed look at Microsoft’s suite of project offerings.

    The complicating factor is this renewed look comes at a transitional time in Microsoft’s suite of project and portfolio offerings.

    • The market dominance of MS Project Server and Project Online are wanning, with Microsoft promising the end-of-life for Online sometime in the coming years.
    • Project Online’s replacement, Project for the web, is a viable task management and lightweight project management tool, but its viability as a replacement for the rigor of Project Online is at present largely a question mark.
    • Related to the uncertainty and promise around Project for the web, the Dataverse and the Power Platform offer a glimpse into a democratized future of work management tools but anything specific about that future has yet to solidify.

    Microsoft Project has 66% market share in the project management tool space. (Celoxis, 2018)

    A copy of MS project is sold or licensed every 20 seconds. (Integent, 2013)

    MS Project is evolving to meet new work management realities

    It also evolved to not meet the old project management realities.

    • The lines between traditional project management and operational task management solutions are blurring as organizations struggle to keep up with demands.
    • To make the software easier to use, modern work management doesn’t involve the complexities from days past. You won’t find anywhere to introduce complex predecessor-successor relationships, unbalanced assignments with front-loading or back-loading, early-start/late-finish, critical path, etc.
    • “Work management” is among the latest buzzwords in IT consulting. With Project for the web (PFTW), Azure Boards, and Planner, Microsoft is attempting to compete with lighter and better-adopted tools like Trello, Basecamp, Asana, Wrike, and Monday.com.
    • Buyers of project and work management software have struggled to understand how PFTW will still be usable if it gets the missing project management function from MS Project.

    Info-Tech Insight

    Beware of the Software Granularity Paradox.

    Common opinion 1: “Plans and estimates that are granular enough to be believable are too detailed to manage and maintain.”

    Common opinion 2: “Plans simple enough to publish aren’t detailed enough to produce believable estimates.”

    In other words, software simple enough to get widely adopted doesn’t produce believable plans. Software that can produce believable plans is too complex to use at scale.

    A viable task and project management option must walk the line between these dichotomies.

    M365 gives you the pieces, but it’s on PMO users to piece them together in a viable way

    With the new MS Project and M365, it’s on PMOs to avoid the granularity paradox and produce a functioning solution that fits with the organization’s ways of working.

    Common perception still sees Microsoft Project as a rich software tool. Thus, when we consider the next generation of Microsoft Project, it’s easy to expect a newer and friendlier version of what we knew before.

    In truth, the new solution is a collection of partially integrated but largely disparate tools that each satisfy a portion of the market’s needs. While it looks like a rich collection of function when viewed through high-level requirements, users will find:

    • Overlaps, where multiple tools satisfy the same functional requirement (e.g. “assign a task”)
    • Gaps, where a tool doesn’t quite do enough and you’re forced to incorporate another tool (e.g. reverting back to Microsoft Project for advanced resource planning)
    • Islands, where tools don’t fluently talk to each other (e.g. Planner data integrated in real-time with portfolio data, which requires clunky, unstable, decentralized end-user integrations with Microsoft Power Automate)
    A colourful arrangement of Microsoft programs arranged around a pile of puzzle pieces.

    Info-Tech's approach

    Use our framework to best leverage the right MS Project offerings and M365 components for your organization’s work management needs.

    The Info-Tech difference:

    1. A simple to follow framework to help you make sense of a chaotic landscape.
    2. Practical and tactical tools that will help you save time.
    3. Leverage industry best practices and practitioner-based insights.
    An Info-Tech framework titled 'Determine the Future of Microsoft Project in Your Organization, subtitle 'View your task, project, and portfolio management options through the lens of Microsoft 365'. There are four main sections titled 'Background', 'Approaches', 'Deployments', and 'Portfolio Outcomes'. In '1) Background' are 'Analyze Content', 'Assess Constraints', and 'Determine Goals and Needs'. In '2) Approaches' are 'DIY: Are you ready to do it yourself?' 'Info-Tech: Can our analysts help?', and 'MS Gold Partner: Are you better off with a third party?'. In '3) Deployments' are five sections: 'Personal Task Management', Barriers to Portfolio Outcomes: Isolated to One Person. 'Team Task Management', Barriers to Portfolio Outcomes: Isolated to One Team. 'Project Portfolio Management', Barriers to Portfolio Outcomes: Isolated to One Project. 'Project Management', Barriers to Portfolio Outcomes: Functionally Incomplete. 'Enterprise Project and Portfolio Management', Barriers to Portfolio Outcomes: Underadopted. In '4) Portfolio Outcomes' are 'Informed Steering Committee', 'Increased Project Throughput', 'Improved Portfolio Responsiveness', 'Optimized Resource Utilization', and 'Reduced Monetary Waste'.

    Determine the Future of Microsoft Project in Your Organization

    View your task, project, and portfolio management options through the lens of Microsoft 365.

    1. Background

    • Analyze Content
    • Assess Constraints
    • Determine Goals and Needs

    2. Approaches

    • DIY – Are you ready to do it yourself?
    • Info-Tech – Can our analysts help?
    • MS Gold Partner – Are you better off with a third party?

    3. Deployments

      Task Management

    • Personal Task Management
      • Who does it? Knowledge workers
      • What is it? To-do lists
      • Common Approaches
        • Paper list and sticky notes
        • Light task tools
      • Applications
        • Planner
        • To Do
      • Level of Rigor 1/5
      • Barriers to Portfolio Outcomes: Isolated to One Person
    • Team Task Management
      • Who does it? Groups of knowledge workers
      • What is it? Collaborative to-do lists
      • Common Approaches
        • Kanban boards
        • Spreadsheets
        • Light task tools
      • Applications
        • Planner
        • Azure Boards
        • Teams
      • Level of Rigor 2/5
      • Barriers to Portfolio Outcomes: Isolated to One Team
    • Project Management

    • Project Portfolio Management
      • Who does it? PMO Directors, Portfolio Managers
      • What is it?
        • Centralized list of projects
        • Request and intake handling
        • Aggregating reporting
      • Common Approaches
        • Spreadsheets
        • PPM software
        • Roadmaps
      • Applications
        • Project for the Web
        • Power Platform
      • Level of Rigor 3/5
      • Barriers to Portfolio Outcomes: Isolated to One Project
    • Project Management
      • Who does it? Project Managers
      • What is it? Deterministic scheduling of related tasks
      • Common Approaches
        • Spreadsheets
        • Lists
        • PM software
        • PPM software
      • Applications
        • Project Desktop Client
      • Level of Rigor 4/5
      • Barriers to Portfolio Outcomes: Functionally Incomplete
    • Enterprise Project and Portfolio Management

    • Enterprise Project and Portfolio Management
      • Who does it? PMO and ePMO Directors, Portfolio Managers, Project Managers
      • What is it?
        • Centralized request and intake handling
        • Resource capacity management
        • Deterministic scheduling of related tasks
      • Common Approaches
        • PPM software
      • Applications
        • Project Online
        • Project Desktop Client
        • Project Server
      • Level of Rigor 5/5
      • Barriers to Portfolio Outcomes: Underadopted

    4. Portfolio Outcomes

    • Informed Steering Committee
    • Increased Project Throughput
    • Improved Portfolio Responsiveness
    • Optimized Resource Utilization
    • Reduced Monetary Waste

    Info-Tech's methodology for Determine the Future of MS Project for Your Organization

    1. Determine Your Tool Needs

    2. Weigh Your MS Project Implementation Options

    3. Finalize Your Implementation Approach

    Phase Steps

    1. Survey the M365 Work Management Tools
    2. Perform a Process Maturity Assessment to Help Inform Your M365 Starting Point
    3. Consider the Right MS Project Licenses for Your Stakeholders
    1. Get Familiar With Extending Project for the Web Using Power Apps
    2. Assess the MS Gold Partner Community
    1. Prepare an Action Plan

    Phase Outcomes

    1. Work Management Tool Audit
    2. MS Project and Power Platform Licensing Needs
    3. Project Management and Project Portfolio Management Maturity Assessment
    1. Project for the Web Readiness Assessment
    2. MS Gold Partner Outreach Plan
    1. MS Project and M365 Action Plan Presentation

    Insight Summary

    Overarching blueprint insight: Microsoft Parts Sold Separately. Assembly required.

    The various MS Project offerings (but most notably the latest, Project for the web) hold the promise of integrating with the rest of M365 into a unified work management solution. However, out of the box, Project for the web and the various platforms within M365 are all disparate utilities that need to be pieced together in a purpose-built manner to make use of them for holistic work management purposes.

    If you’re looking for a cohesive product out of the box, look elsewhere. If you’re looking to assemble a wide array of work, project, and portfolio management functions across different functions and departments, you may have found what you seek

    Phase 1 insight: Align your tool choice to your process maturity level.

    Rather than choosing tools based on your gaps, make sure to assess your current maturity level so that you optimize your investment in the Microsoft landscape.

    Phase 2 insight: Weigh your options before jumping into Microsoft’s new tech.

    Microsoft’s new Project plans (P1, P3, and P5) suggest there is a meaningful connection out of the box between its old tech (Project desktop, Project Server, and Project Online) and its new tech (Project for the web).

    However, the offerings are not always interoperable.

    Phase 3 insight: Keep the iterations small as you move ahead with trials and implementations.

    Organizations are changing as fast as the software we use to run them.

    If you’re implementing parts of this platform, keep the changes small as you monitor the vendors for new software versions and integrations.

    Blueprint deliverables

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

    Key deliverable: Microsoft Project & M365 Action Plan Template

    The Action Plan will help culminate and present:

    • Context and Constraints
    • DIY Implementation Approach
    Or
    • MS Partner Implementation Approach
    • Future-State Vision and Goals
    Samples of Info-Tech's key deliverable 'Microsoft Project and M365 Action Plan Template'.

    Tool Audit Workbook

    Sample of Info-Tech deliverable 'Tool Audit Workbook'.

    Assess your organization's current work management tool landscape and determine what tools drive value for individual users and teams and which ones can be rationalized.

    Force Field Analysis

    Sample of Info-Tech deliverable 'Force Field Analysis'.

    Document the driving and resisting forces for making a change to your work management tools.

    Maturity Assessments

    Sample of Info-Tech deliverable 'Maturity Assessments'.

    Use these assessments to identify gaps in project management and project portfolio management processes. The results will help guide process improvement efforts and measure success and progress.

    Microsoft Project & M365 Licensing Tool

    Sample of Info-Tech deliverable 'Microsoft Project and M365 Licensing Tool'.

    Determine the best licensing options and approaches for your implementation of Microsoft Project.

    Curate your work management tools to harness valuable portfolio outcomes

    • Increase Project Throughput

      Do more projects by ensuring the right projects and the right amount of projects are approved and executed.
    • Support an Informed Steering Committee

      Easily compare progress of projects across the portfolio and enable the leadership team to make decisions.
    • Improve portfolio responsiveness

      Make the portfolio responsive to executive steering when new projects and changing priorities need rapid action.
    • Optimize Resource Utilization

      Assign the right resources to approved projects and minimize the chronic over-allocation of resources that leads to burnout.
    • Reduce Monetary Waste

      Terminate low-value projects early and avoid sinking additional funds into unsuccessful ventures.

    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 8 calls over the course of 3 to 4 months.

      Introduction

    • Call #1: Scope requirements, objectives, and your specific challenges.
    • Phase 1

    • Call #2: Explore the M365 work management landscape.
    • Call #3: Discuss Microsoft Project Plans and their capabilities.
    • Call #4: Assess current-state maturity.
    • Phase 2

    • Call #5: Get familiar with extending Project for the web using Power Apps.
    • Call #6: Assess the MS Gold Partner Community.
    • Phase 3

    • Call #7: Determine approach and deployment.
    • Call #8: Discuss action plan.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1
    Assess Driving Forces and Risks

    Day 2
    Determine Tool Needs and Process Maturity

    Day 3
    Weigh Your Implementation Options

    Day 4
    Finalize Implementation Approach

    Day 5
    Next Steps and Wrap-Up (offsite)

    Activities

    • 1.1 Review the business context.
    • 1.2 Explore the M365 work management landscape.
    • 1.3 Identify driving forces for change.
    • 1.4 Analyze potential risks.
    • 1.5 Perform current-state analysis on work management tools.
    • 2.1 Review tool audit dashboard and conduct the final audit.
    • 2.2 Identify current Microsoft licensing.
    • 2.3 Assess current-state maturity for project management.
    • 2.4 Define target state for project management.
    • 2.5 Assess current-state maturity for project portfolio management.
    • 2.6 Define target state for project portfolio management.
    • 3.1 Prepare a needs assessment for Microsoft 365 and Project Plan licenses.
    • 3.2 Review the business case for Microsoft licensing.
    • 3.3 Get familiar with Project for the web.
    • 3.4 Assess the MS Gold Partner Community.
    • 3.5 Conduct a feasibility test for PFTW.
    • 4.1 Decide on the implementation approach.
    • 4.2 Identify the audience for your proposal.
    • 4.3 Determine timeline and assign accountabilities.
    • 4.4 Develop executive summary presentation.
    • 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. Force Field Analysis
    2. Tool Audit Workbook
    1. Tool Audit Workbook
    2. Project Management Maturity Assessment
    3. Portfolio Management Maturity Assessment
    1. Microsoft Project and M365 Licensing Tool
    1. Microsoft Project & M365 Action Plan
    1. Microsoft Project & M365 Action Plan

    Determine the Future of Microsoft Project for Your Organization

    Phase 1: Determine Your Tool Needs

    Phase 1: Determine Your Tool Needs

    Phase 2: Weigh Your Implementation Options Phase 3: Finalize Your Implementation Approach
    • Step 1.1: Survey the M365 work management landscape
    • Step 1.2: Explore the Microsoft Project Plans and their capabilities
    • Step 1.3: Assess the maturity of your current PM & PPM capabilities
    • Step 2.1: Get familiar with extending Project for the web using Power Apps
    • Step 2.2: Assess the MS Gold Partner Community
    • Step 3.1: Prepare an action plan

    Phase Outcomes

    • Tool Audit
    • Microsoft Project Licensing Analysis
    • Project Management Maturity Assessment
    • Project Portfolio Management Maturity Assessments

    Step 1.1

    Survey the M365 Work Management Landscape

    Activities

    • 1.1.1 Distinguish between task, project, and portfolio capabilities
    • 1.1.2 Review Microsoft’s offering for task, project, and portfolio management needs
    • 1.1.4 Assess your organizational context and constraints
    • 1.1.3 Explore typical deployment options

    This step will walk you through the following activities:

    • Assessing your organization’s context for project and project portfolio management
    • Documenting the organization’s constraints
    • Establishing the organization’s goals and needs

    This step involves the following participants:

    • PMO Director
    • Resource Managers
    • Project Managers
    • Knowledge Workers

    Outcomes of Step

    • Knowledge of the Microsoft ecosystem as it relates to task, project, and portfolio management
    • Current organizational context and constraints

    Don’t underestimate the value of interoperability

    The whole Microsoft suite is worth more than the sum of its parts … if you know how to put it together.

    38% of the worldwide office suite market belongs to Microsoft. (Source: Statistica, 2021)

    1 in 3 small to mid-sized organizations moving to Microsoft Project say they are doing so because it integrates well with Office 365. (Source: CBT Nuggets, 2018)

    There’s a gravity to the Microsoft ecosystem.

    And while there is no argument that there are standalone task management tools, project management tools, or portfolio management tools that are likely more robust, feature-rich, and easier to adopt, it’s rare that you find an ecosystem that can do it all, to an acceptable level.

    That is the value proposition of Microsoft: the ubiquity, familiarity, and versatility. It’s the Swiss army knife of software products.

    The work management landscape is evolving

    With M365, Microsoft is angling to become the industry leader, and your organization’s hub, for work management.

    Workers lose up to 40% of their time multi-tasking and switching between applications. (Bluescape, 2018)

    25 Context switches – On average, workers switch between 10 apps, 25 times a day. (Asana, 2021)

    “Work management” is among the latest buzzwords in IT consulting.

    What is work management? It was born of a blurring of the traditional lines between operational or day-to-day tasks and project management tasks, as organizations struggle to keep up with both operational and project demands.

    To make the software easier to use, modern work management doesn’t involve the complexities from days past. You won’t find anywhere to introduce complex predecessor-successor relationships, unbalanced assignments with front-loading or back-loading, early-start/late-finish, critical path, etc.

    Indeed, with Project for the web, Azure Boards, Planner, and other M365 utilities, Microsoft is attempting to compete with lighter and better-adopted tools (e.g. Trello, Wike, Monday.com).

    The Microsoft world of work management can be understood across three broad categories

    1. Task Management

      Task management is essentially the same as keeping track of a to-do list. While you can have a project-related task, you can also have a non-project-related task. The sum of project and non-project tasks make up the work that you need to complete.
    2. Project Management

      Project management (PM) is a methodical approach to planning and guiding project processes from start to finish. Implementing PM processes helps establish repeatable steps and controls that enable project success. Documentation of PM processes leads to consistent results and dependable delivery on expectations.
    3. Portfolio Management

      Project portfolio management (PPM) is a strategic approach to approving, prioritizing, resourcing, and reporting on project. In addition, effective PPM should nurture the completion of projects in the portfolio in the most efficient way and track the extent to which the organization is realizing the intended benefits from completed projects.

    The slides ahead explain each of these modes of working in the Microsoft ecosystem in turn. Further, Info-Tech’s Task, Project, and Project Portfolio Management Tool Guides explain these areas in more detail.

    Use Info-Tech’s Tool Guides assess your MS Project and M365 work management options

    Lean on Info-Tech’s Tool Guides as you navigate Microsoft’s tasks management, project management, and project portfolio management options.

    • The slides ahead take you through a bird’s-eye view of what your MS Project and M365 work management options look like across Info-Tech’s three broad categories
    • In addition to these slides, Info-Tech has three in-depth tool guides that take you through your operational task management, project management, and project portfolio management options in MS Project and M365.
    • These tool guides can be leveraged as you determine whether Microsoft has the required toolset for your organization’s task, project, and project portfolio management needs.

    Download Info-Tech’s Task Management, Project Management, and Project Portfolio Management Tool Guides

    Task Management Overview

    What is task management?

    • It is essentially the same as keeping track of a to-do list. While you can have a project-related task, you can also have a non-project-related task. The sum of project and non-project tasks make up the work that you need to complete.

    What are the benefits of task management using applications within the MS suite?

    • Many organizations already own the tools and don't have to go out and buy something separately.
    • There is easy integration with other MS applications.

    What is personal task management?

    • Tools that allow you to structure work that is visible only to you. This can include work from tasks you are going to be completing for yourself and tasks you are completing as part of a larger work effort.

    What is team task management?

    • Tools that allow users to structure work that is visible to a group. When something is moved or changed, it affects what the group is seeing because it is a shared platform.

    Get familiar with the Microsoft product offerings for task management

    A diagram of Microsoft products and what they can help accomplish. It starts on the right with 'Teams' and 'Outlook'. Both can flow through to 'Personal Task Management' with products 'Teams Tasks' and 'To-Do', but Teams also flows into 'Team Task Management' with products 'Planner' and 'Project for the web'. See the next two slides for more details on these modes of working.

    Download the M365 Task Management Tool Guide

    Personal Task Management

    The To-Do list

    • Who does it?
      • Knowledge workers
    • What is it?
      • How each knowledge worker organizes their individual work tasks in M365
    • When is it done?
      • As needed throughout the day
    • Where is it done?
      • Paper
      • Digital location
    • How is it done?
      • DIY and self-developed
      • Usually not repeatable and evolves depending on work location and tools available
      • Not governed

    Microsoft differentiator:

    Utilities like Planner and To-Do make it easier to turn what are often ad hoc approaches into a more repeatable process.

    Team Task Management

    The SharedTo-Do list

    • Who does it?
      • Groups of knowledge workers
    • What is it?
      • Temporary and permanent collections of knowledge workers
    • When is it done?
      • As needed or on a pre-determined cadence
    • Where is it done?
      • Paper
      • Digital location
    • How is it done?
      • User norms are established organically and adapted based upon the needs of the team.
      • To whatever extent processes are repeatable in the first place, they remain repeatable only if the team is a collective.
      • Usually governed within the team and not subject to wider visibility.

    Microsoft differentiator:

    Teams has opened personal task management tactics up to more collaborative approaches.

    Project Management Overview

    2003

    Project Server: This product serves many large enterprise clients, but Microsoft has stated that it is at end of life. It is appealing to industries and organizations where privacy is paramount. This is an on-premises system that combines servers like SharePoint, SQL, and BI to report on information from Project Desktop Client. To realize the value of this product, there must be adoption across the organization and engagement at the project-task level for all projects within the portfolio.

    2013

    Project Online: This product serves many medium enterprise clients. It is appealing for IT departments who want to get a rich set of features that can be used to intake projects, assign resources, and report on project portfolio health. It is a cloud solution built on the SharePoint platform, which provides many users a sense of familiarity. However, due to the bottom-up reporting nature of this product, again, adoption across the organization and engagement at the project task level for all projects within the portfolio is critical.

    2020

    Project for the web: This product is the newest on the market and is quickly being evolved. Many O365 enthusiasts have been early adopters of Project for the web despite its limited features when compared to Project Online. It is also a cloud solution that encourages citizen developers by being built on the MS Power Platform. This positions the product well to integrate with Power BI, Power Automate, and Power Apps. It is, so far, the only MS product that lends itself to abstracted portfolio management, which means it doesn’t rely on project task level engagement to produce portfolio reports. The portfolio can also run with a mixed methodology by funneling Project, Azure Boards, and Planner boards into its roadmap function.

    Get familiar with the Microsoft product offerings for project management

    A diagram of Microsoft products and what they can help accomplish in Personal and Team Project Management. Products listed include 'Project Desktop Client', 'Project Online', 'SharePoint', 'Power Platform', 'Azure DevOps', 'Project for the web', Project Roadmap', 'Project Home', and 'Project Server'. See the next slide for more details on personal and team project management as modes of working.

    Download the M365 Project Management Tool Guide

    Project Management

    Orchestrating the delivery of project work

    • Who does it?
      • Project managers
    • What is it?
      • Individual project managers developing project plans and schedules in the MS Project Desktop Client
    • When is it done?
      • Throughout the lifecycle of the project
    • Where is it done?
      • Digital location
    • How is it done?
      • Used by individual project managers to develop and manage project plans.
      • Common approaches may or may not involve reconciliation of resource capacity through integration with Active Directory.
      • Sometimes usage norms are established by organizational project management governance standards, though individual use of the desktop client is largely ungoverned.

    Microsoft differentiator:

    For better or worse, Microsoft’s core solution is veritably synonymous with project management itself and has formally contributed to the definition of the project management space.

    Project Portfolio Management Overview

    Optimize what you’re already using and get familiar with the Power Platform.

    What does PPM look like within M365?

    • The Office suite in the Microsoft 365 suite boasts the world’s most widely used application for the purposes of abstracted and strategic PPM: Excel. For the purposes of PPM, Excel is largely implemented in a suboptimal fashion, and as a result, organizations fail to gain PPM adoption and maturation through its use.
    • Until very recently, Microsoft toolset did not explicitly address abstracted PPM needs.
    • However, with the latest version of M365 and Project for the web, Microsoft is boasting of renewed PPM capabilities from its toolset. These capabilities are largely facilitated through what Microsoft is calling its Power Platform (i.e. a suite of products that includes Power, Power Apps, and Power Automate).

    Explore the Microsoft product offering for abstracted project portfolio management

    A diagram of Microsoft products for 'Adaptive or Abstracted Portfolio Management'. Products listed include 'Excel', 'MS Lists', 'Forms', 'Teams', and the 'Power Platform' products 'Power BI', 'Power Apps', and 'Power Automate'. See the next slide for more details on adaptive or abstracted portfolio management as a mode of working.

    Download the M365 Project Portfolio Management Tool Guide

    Project Portfolio Management

    Doing the right projects, at the right time, with the right resources

    • Who does it?
      • PMO directors; portfolio managers
    • What is it?
      A strategic approach to approving, prioritizing, resourcing, and reporting on projects using applications in M365 and Project for the web. In distinction to enterprise PPM, a top-down or abstracted approach is applied, meaning PPM data is not tied to project task details.
    • Where is it done?
      • Digital tool, either homegrown or commercial
    • How is it done?
      • Currently in M365, PPM approaches are largely self-developed, though Microsoft Gold Partners are commonly involved.
      • User norms are still evolving, along with the software’s (Project for the web) function.

    Microsoft differentiator:

    Integration between Project for the web and Power Apps allows for custom approaches.

    Project Portfolio Management Overview

    Microsoft’s legacy project management toolset has contributed to the definition of traditional or enterprise PPM space.

    A robust and intensive bottom-up approach that requires task level roll-ups from projects to inform portfolio level data. For this model to work, reconciliation of individual resource capacity must be universal and perpetually current.

    If your organization has low or no maturity with PPM, this approach will be tough to make successful.

    In fact, most organizations under adopt the tools required to effectively operate with the traditional project portfolio management. Once adopted and operationalized, this combination of tools gives the executives the most precise view of the current state of projects within the portfolio.

    Explore the Microsoft product offering for enterprise project portfolio management

    A diagram of Microsoft products for 'Enterprise or Traditional Portfolio Management'. Products listed include 'Project Desktop Client', 'SharePoint', 'Project Online', 'Azure DevOps', 'Project Roadmaps', and 'Project Home'. See the next slide for more details on this as a mode of working.

    Download the M365 Project Portfolio Management Tool Guide

    Enterprise Project and Portfolio Management

    Bottom-up approach to managing the project portfolio

    • Who does it?
      • PMO and ePMO directors; portfolio managers
      • Project managers
    • What is it?
      • A strategic approach to approving, prioritizing, resourcing, and reporting on projects using applications in M365 and Project for the web. In distinction to enterprise PPM, a top-down or abstracted approach is applied, meaning PPM data is not tied to project task details.
    • Where is it done?
      • Digital tool that is usually commercial.
    • How is it done?
      • Microsoft Gold Partner involvement is highly likely in successful implementations.
      • Usage norms are long established and customized solutions are prevalent.
      • To be successful, use must be highly governed.
      • Reconciliation of individual resource capacity must be universal and perpetually current.

    Microsoft differentiator:

    Microsoft’s established network of Gold Partners helps to make this deployment a viable option.

    Assess your current tool ecosystem across work management categories

    Use Info-Tech’s Tool Audit Workbook to assess the value and satisfaction for the work management tools currently in use.

    • With the modes of working in mind that have been addressed in the previous slides and in Info-Tech’s Tool Guides, the activity slides ahead encourage you to engage your wider organization to determine all of the ways of working across individuals and teams.
    • Depending on the scope of your work management optimization, these engagements may be limited to IT or may extend to the business.
    • Use Info-Tech’s Tool Audit Workbook to help you gather and make sense of the tool data you collect. The result of this activity is to gain insight into the tools that drive value and fail to drive value across your work management categories with a view to streamline the organization’s tool ecosystem.

    Download Info-Tech’s Tool Audit Workbook

    Sample of Info-Tech's Tool Audit Workbook.

    1.2.1 Compile list of tools

    1-3 hours

    Input: Information on tools used to complete task, project, and portfolio tasks

    Output: Analyzed list of tools

    Materials: Whiteboard/Flip Charts, Tool Audit Workbook

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, Project Managers, Business Stakeholders

    1. Identify the stakeholder groups that are in scope. For each group that you’ve identified, brainstorm the different tools and artifacts that are necessary to get the task, project, and project portfolio management functions done.
    2. Make sure to record the tool name and specify its category (standard document, artifact, homegrown solution, or commercial solution).
    3. Think about and discuss how often the tool is being used for each use case across the organization. Document whether its use is required. Then assess reporting functionality, data accuracy, and cost.
    4. Lastly, give a satisfaction rating for each use case.

    Excerpt from the Tool Audit Workbook

    Excerpt from Info-Tech's Tool Audit Workbook on compiling tools.

    1.2.1 Review dashboard

    1-3 hours

    Input: List of key PPM decision points, List of who is accountable for PPM decisions, List of who has PPM decision-making authority

    Output: Prioritized list of PPM decision-making support needs

    Materials: Whiteboard/Flip Charts, Tool Audit Workbook

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, CIO

    Discuss the outputs of the Dashboards tab to inform your decision maker on whether to pass or fail the tool for each use case.

    Sample of a BI dashboard used to evaluate the usefulness of tools. Written notes include: 'Slice the data based on stakeholder group, tool, use case, and category', and 'Review the results of the questionnaire by comparing cost and satisfaction'.

    1.2.1 Execute final audit

    1 hour

    Input: List of key PPM decision points, List of who is accountable for PPM decisions, List of who has PPM decision-making authority

    Output: Prioritized list of PPM decision-making support needs

    Materials: Whiteboard/Flip Charts, Tool Audit Workbook

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, CIO

    1. Using the information available, schedule time with the leadership team to present the results.
    2. Identify the accountable party to make the final decision on what current tools pass or fail the final audit.
    3. Mind the gap presented by the failed tools and look to possibilities within the M365 and Microsoft Project suite. For each tool that is deemed unsatisfactory for the future state, mark it as “Fail” in column O on tab 2 of the Tool Audit Workbook. This will ensure the item shows in the “Fail” column on tab 4 of the tool when you refresh the data.
    4. For each of the tools that “fail” your audit and that you’re going to make recommendations to rationalize in a future state, try to capture the annual total current-state spending on licenses, and the work modes the tool currently supports (i.e. task, project, and/or portfolio management).
    5. Additionally, start to think about future-state replacements for each tool within or outside of the M365/MS Project platforms. As we move forward to finalize your action plan in the last phase of this blueprint, we will capture and present this information to key stakeholders.

    Document your goals, needs, and constraints before proceeding

    Use Info-Tech’s Force Field Analysis Tool to help weigh goals and needs against risks and constraints associated with a work management change.

    • Now that you have discussed the organization’s ways of working and assessed its tool landscape – and made some initial decisions on some tool options that might need to change across that landscape – gather key stakeholders to define (a) why a change is needed at this time and (b) to document some of the risks and constraints associated with changing.
    • Info-Tech’s Force Field Analysis Tool can be used to capture these data points. It takes an organizational change management approach and asks you to consider the positive and negative forces associated with a work management tool change at this time.
    • The slides ahead walk you through a force field analysis activity and help you to navigate the relevant tabs in the Tool.

    Download Info-Tech's Force Field Analysis Tool

    Sample of Info-Tech's Force Field Analysis Tool.

    1.2.1 Identify goals and needs (1 of 2)

    Use tab 1 of the Force Field Analysis Workbook to assess goals and needs.

    30 minutes

    Input: Opportunities associated with determining the use case for Microsoft Project and M365 in your organization

    Output: Plotted opportunities based on probability and impact

    Materials: Whiteboard/Flip Charts, Force Field Analysis Tool

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, Project Managers

    1. Brainstorm opportunities associated with exploring and/or implementing Microsoft Project and the Microsoft 365 suite of products for task, project, and project portfolio management.
    2. Document relevant opportunities in tab 1 of the Force Field Analysis Tool. For each driving force for the change (note: a driving force can include goals and needs) that is identified, provide a category that explains why the driving force is a concern (i.e. with this force is the organization looking to mature, integrate, scape, or accelerate?).
    3. In addition, assess the ease of achieving or realizing each goal or need and the impact of realizing them on the PMO and/or the organization.
    4. See the next slide for a screenshot that helps you navigate tab 1 of the Tool.

    Download the Force Field Analysis Tool

    1.2.1 Identify goals and needs (2 of 2)

    Screenshot of tab 1 of the Force Field Analysis Workbook.

    Screenshot of tab 1 of the Force Field Analysis Workbook. There are five columns referred to as columns B through F with the headings 'Opportunities', 'Category', 'Source', 'Ease of Achieving', and 'Impact on PMO/Organization'.

    In column B on tab 1, note the specific opportunities the group would like to call out.

    In column C, categorize the goal or need being articulated by the list of drop-down options: will it accelerate the time to benefit? Will it help to integrate systems and data sources? Will it mature processes and the organization overall? Will it help to scale across the organization? Choose the option that best aligns with the opportunity.

    In column D, categorize the source of the goal or need as internal or external.

    In column E, use the drop-down menus to indicate the ease of realizing each goal or need for the organization. Will it be relatively easy to manifest or will there be complexities to implementing it?

    In column F, use the drop-down menus to indicate the positive impact of realizing or achieving each need on the PMO and/or the organization.

    On tab 3 of the Force Field Analysis Workbook, your inputs on tab 1 are summarized in graphical form from columns B to G. On tab 3, these goals and needs results are contrasted with your inputs on tab 2 (see next slide).

    1.2.2 Identify risk and constraints (1 of 2)

    Use tab 2 of the Force Field Analysis Workbook to assess opposing forces to change.

    30 minutes

    Input: Risks associated with determining the use case for Microsoft Project and M365 in your organization

    Output: Plotted risks based on probability and impact

    Materials: Whiteboard/Flip Charts, Force Field Analysis Tool

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, Project Managers

    1. With the same working group from 1.2.1, brainstorm risks, constraints, and other opposing forces pertaining to your potential future state.
    2. Document relevant opposing forces in tab 2 of the Force Field Analysis Tool. For each opposing force for the change (note: a driving force can include goals and needs) that is identified, provide a category that explains why the opposing force is a concern (i.e. will it impact or is it impacted by time, resources, maturity, budget, or culture?).
    3. In addition, assess the likelihood of the risk or constraint coming to light and the negative impact of it coming to light for your proposed change.
    4. See the next slide for a screenshot that helps you navigate tab 2 of the Force Field Analysis Tool.

    Download the Force Field Analysis Tool

    1.2.2 Identify risk and constraints (2 of 2)

    Screenshot of tab 2 of the Force Field Analysis Workbook.

    Screenshot of tab 2 of the Force Field Analysis Workbook. There are five columns referred to as columns B through F with the headings 'Risks and Constraints', 'Category', 'Source', 'Likelihood of Constraint/Risk/Resisting Force Being Felt', and 'Impact to Derailing Goals and Needs'.

    In column B on tab 2, note the specific risks and constraints the group would like to call out.

    In column C, categorize the risk or constraint being articulated by the list of drop-down options: will it impact or is it impacted by time, resources, budget, culture or maturity?

    In column D, categorize the source of the goal or need as internal or external.

    In column E, use the drop-down menus to indicate the likelihood of each risk or constraint materializing during your implementation. Will it definitely occur or is there just a small chance it could come to light?

    In column F, use the drop-down menus to indicate the negative impact of the risk or constraint to achieving your goals and needs.

    On tab 3 of the Force Field Analysis Workbook, your inputs on tab 2 are summarized in graphical form from columns I to N. On tab 3, your risk and constraint results are contrasted with your inputs on tab 1 to help you gauge the relative weight of driving vs. opposing forces.

    Step 1.2

    Explore the Microsoft Project Plans and their capabilities

    Activities

    • 1.1.1 Review the Microsoft 365 licensing features
    • 1.1.2 Explore the Microsoft Project Plan licenses
    • 1.1.3 Prepare a needs assessment for Microsoft 365 and Project Plan licenses

    This step will walk you through the following activities:

    • Review the suite of task management, project management, and project portfolio management options available in Microsoft 365.
    • Prepare a preliminary checklist of required M365 apps for your stakeholders.

    This step usually involves the following participants:

    • PMO/Portfolio Manager
    • Project Managers
    • CIO and other executive stakeholders
    • Other project portfolio stakeholders (project and IT workers)

    Outcomes of Step

    • Preliminary requirements for an M365 project management and project portfolio management tool implementation

    Microsoft recently revamped its project plans to balance its old and new tech

    Access to the new tech, Project for the web, comes with all license types, while Project Online Professional and Premium licenses have been revamped as P3 and P5.

    Navigating Microsoft licensing is never easy, and Project for the web has further complicated licensing needs for project professionals.

    As we’ll cover in step 2.1 of this blueprint, Project for the web can be extended beyond its base lightweight work management functionality using the Power Platform (Power Apps, Power Automate, and Power BI). Depending on the scope of your implementation, this can require additional Power Platform licensing.

    • In this step, we will help you understand the basics of what’s already included in your enterprise M365 licensing as well as what’s new in Microsoft’s recent Project licensing plans (P1, P3, and P5).
    • As we cover toward the end of this step, you can use Info-Tech’s MS Project and M365 Licensing Tool to help you understand your plan and licensing needs. Further assistance on licensing can be found in the Task, Project, and Portfolio Management Tool Guides that accompany this blueprint and Info-Tech’s Modernize Your Microsoft Licensing for the Cloud Era.

    Download Info-Tech’s Modernize Your Microsoft Licensing for the Cloud Era

    Licensing features for knowledge workers

    Please note that licensing packages are frequently subject to change. This is up to date as of August 2021. For the most up-to-date information on licensing, visit the Microsoft website.

    Bundles are extremely common and can be more cost effective than à la carte options for the Microsoft products.

    The biggest differentiator between M365 and O365 is that the M365 product also includes Windows 10 and Enterprise Mobility and Security.

    The color coding in the diagram indicates that the same platform/application suite is available.

    Platform or Application M365 E3 M365 E5 O365 E1 O365 E3 O365 E5
    Microsoft Forms X X X X X
    Microsoft Lists X X X X X
    OneDrive X X X X X
    Planner X X X X X
    Power Apps for Office 365 X X X X X
    Power Automate for Office X X X X X
    Power BI Pro X X
    Power Virtual Agents for Teams X X X X X
    SharePoint X X X X X
    Stream X X X X X
    Sway X X X X X
    Teams X X X X X
    To Do X X X X X

    Get familiar with Microsoft Project Plan 1

    Please note that licensing packages are frequently subject to change. This is up to date as of August 2021. For the most up to date information on licensing, visit the Microsoft website.

    Who is a good fit?

    • New project managers
    • Zero-allocation project managers
    • Individuals and organizations who want to move out of Excel into something less fragile (easily breaking formulas)

    What does it include?

    • Access to Project Home, a landing page to access all project plans you’ve created or have been assigned to.
    • Access to Grid View, Board View, and Timeline (Gantt) View to plan and manage your projects with Project for the web
    • Sharing Project for the web plans across Microsoft Teams channels
    • Co-authoring on project plans

    When does it make sense?

    • Lightweight project management
    • No process to use bottom-up approach for resourcing data
    • Critical-path analysis is not required
    • Organization does not have an appetite for project management rigor

    Get familiar with Microsoft Project Plan 3

    Please note that licensing packages are frequently subject to change. This is up to date as of August 2021. For the most up to date information on licensing, visit the Microsoft website.

    Who is a good fit?

    • Experienced and dedicated project managers
    • Organizations with complex projects
    • Large project teams are required to complete project work
    • Organizations have experience using project management software

    What does it include?

    Everything in Project Plan 1 plus the following:

    • Reporting through Power BI Report template apps (note that there are no pre-built reports for Project for the web)
    • Access to build a Roadmap of projects from Project for the web and Azure DevOps with key milestones, statuses, and deadlines
    • Project Online to submit and track timesheets for project teams
    • MS Project Desktop Client to support resource management

    When does it make sense?

    • Project management is an established discipline at the organization
    • Critical-path analysis is commonly used
    • Organization has some appetite for project management rigor
    • Resources are expected to submit timesheets to allow for more precise resource management data

    Get familiar with Microsoft Project Plan 5

    Please note that licensing packages are frequently subject to change. This is up to date as of August 2021. For the most up to date information on licensing, visit the Microsoft website.

    Who is a good fit?

    • Experienced and dedicated project managers
    • Experienced and dedicated PMO directors
    • Dedicated portfolio managers
    • Organizations proficient at sustaining data in a standard tool

    What does it include?

    Everything in Project Plan 3 plus the following:

    • Portfolio selection and optimization
    • Demand management
    • Enterprise resource planning and management through deterministic task and resource scheduling
    • MS Project Desktop Client to support resource management

    When does it make sense?

    • Project management is a key success factor at the organization
    • Organization employs a bottom-up approach for resourcing data
    • Critical-path analysis is required
    • Formal project portfolio management processes are well established
    • The organization is willing to either put in the time, energy, and resources to learn to configure the system through DIY or is willing to leverage a Microsoft Partner to help them do so

    What’s included in each plan (1 of 2)

    Plan details are up to date as of September 2021. Plans and pricing can change often. Visit the Microsoft website to validate plan options and get pricing details.
    MS Project Capabilities Info-Tech's Editorial Description P1 P3 P5
    Project Home Essentially a landing page that allows you to access all the project plans you've created or that you're assigned to. It amalgamates plans created in Project for the web, the Project for the web app in Power Apps, and Project Online. X X X
    Grid view One of three options in which to create your project plans in Project for the web (board view and timeline view are the other options). You can switch back and forth between the options. X X X
    Board view One of three options in which to create your project plans in Project for the web (grid view and timeline view are the other options). You can switch back and forth between the options. X X X
    Timeline (Gantt) view One of three options in which to create your project plans in Project for the web (board view and grid view are the other options). You can switch back and forth between the options. X X X
    Collaboration and communication This references the ability to add Project for the web project plans to Teams channels. X X X
    Coauthoring Many people can have access to the same project plan and can update tasks. X X X
    Project planning and scheduling For this the marketing lingo says "includes familiar scheduling tools to assign project tasks to team members and use different views like Grid, Board, and Timeline (Gantt chart) to oversee the schedule." Unclear how this is different than the project plans in the three view options above. X X X

    X - Functionality Included in Plan

    O - Functionality Not Included in Plan

    What’s included in each plan (2 of 2)

    Plan details are up to date as of September 2021. Plans and pricing can change often. Visit the Microsoft website to validate plan options and get pricing details.
    MS Project Capabilities Info-Tech's Editorial Description P1 P3 P5
    Reporting This seems to reference Excel reports and the Power BI Report Template App, which can be used if you're using Project Online. There are no pre-built reports for Project for the web, but third-party Power Apps are available. O X X
    Roadmap Roadmap is a platform that allows you to take one or more projects from Project for the web and Azure DevOps and create an organizational roadmap. Once your projects are loaded into Roadmap you can perform additional customizations like color status reporting and adding key days and milestones. O X X
    Timesheet submission Project Online and Server 2013 and 2016 allow team members to submit timesheets if the functionality is required. O X X
    Resource management The rich MS Project client supports old school, deterministic project scheduling at the project level. O X X
    Desktop client The full desktop client comes with P3 and P5, where it acts as the rich editor for project plans. The software enjoys a multi-decade market dominance as a project management tool but was never paired with an enterprise collaboration server engine that enjoyed the same level of success. O X X
    Portfolio selection and optimization Portfolio selection and optimization has been offered as part of the enterprise project and portfolio suite for many years. Most people taking advantage of this capability have used a Microsoft Partner to formalize and operationalize the feature. O O X
    Demand Management Enterprise demand management is targeted at the most rigorous of project portfolio management practices. Most people taking advantage of this capability have used a Microsoft Partner to formalize and operationalize the feature. O O X
    Enterprise resource planning and management The legacy MS Project Online/Server platform supports enterprise-wide resource capacity management through an old-school, deterministic task and resource scheduling engine, assuming scaled-out deployment of Active Directory. Most people succeeding with this capability have used a Microsoft Partner to formalize and operationalize the feature. O O X

    X - Functionality Included in Plan

    O - Functionality Not Included in Plan

    Use Info-Tech’s MS Project and M365 Licensing Tool

    Leverage the analysis in Info-Tech’s MS Project & M365 Licensing Tool to help inform your initial assumptions about what you need and how much to budget for it.

    • The Licensing Tool can help you determine what Project Plan licensing different user groups might need as well as additional Power Platform licensing that may be required.
    • It consists of four main tabs: two set-up tabs where you can validate the plan and pricing information for M365 and MS Project; an analysis tab where you set up your user groups and follow a survey to assess their Project Plan needs; and another analysis tab where you can document your Power Platform licensing needs across your user groups.
    • There is also a business case tab that breaks down your total licensing needs. The outputs of this tab can be used in your MS Project & M365 Action Plan Template, which we will help you develop in phase three of this blueprint.

    Download Info-Tech's Microsoft Project & M365 Licensing Tool

    Sample of Info-Tech's Microsoft Project and M365 Licensing Tool.

    1.2.1 Conduct a needs assessment

    1-2 hours

    Input: List of key user groups/profiles, Number of users and current licenses

    Output: List of Microsoft applications/capabilities included with each license, Analysis of user group needs for Microsoft Project Plan licenses

    Materials: Microsoft Project & 365 Licensing Tool

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, Project Managers

    1. As a group, analyze the applications included in your current or desired 365 license and calculate any additional Power Platform licensing needs.
    2. Screenshot of the 'Application/Capabilities' screen from the 'Microsoft Project and M365 Licensing Tool'.
    3. Within the same group, use the drop-down menus to analyze your high-level MS Project requirements by selecting whether each capability is necessary or not.
    4. Your inputs to the needs assessment will determine the figures in the Business Case tab. Consider exporting this information to PDF or other format to distribute to stakeholders.
    5. Screenshot of the 'Business Case' tab from the 'Microsoft Project and M365 Licensing Tool'.

    Download Info-Tech's Microsoft Project & M365 Licensing Tool

    Step 1.3

    Assess the maturity of your current PM & PPM capabilities

    Activities

    • Assess current state project and project portfolio management processes and tools
    • Determine target state project and project portfolio management processes and tools

    This step will walk you through the following activities:

    • Assess current state project and project portfolio management processes and tools
    • Determine target state project and project portfolio management processes and tools

    This step usually involves the following participants:

    • PMO/Portfolio Manager
    • Project Managers
    • CIO and other executive stakeholders
    • Other project portfolio stakeholders (project and IT workers)

    Outcomes of Step

    • Current and target state maturity for project management and project portfolio management processes

    Project portfolio management and project management are more than tools

    Implementing commercial tools without a matching level of process discipline is a futile exercise, leaving organizations frustrated at the wasted time and money.

    • The tool is only as good as the data that is input. There is often a misunderstanding that a tool will be “automatic.” While it is true that a tool can help make certain processes easier and more convenient by aggregating information, enhancing reporting, and coauthoring, it will not make up the data. If data becomes stale, the tool is no longer valid for accurate decision making.
    • Getting people onboard and establishing a clear process is often the hardest part. As IT folk, it can be easy to get wrapped up in the technology. All too often excitement around tools can drown out the important requisites around people and process. The reality is people and process are a necessary condition for a tool to be successful. Having a tool will not be sufficient to overcome obstacles like poor stakeholder buy-in, inadequate governance, and the absence of a standard operating procedure.

    • Slow is the way to go. When deciding what tools to purchase, start small and scale up rather than going all in and all too often ending up with many unused features and fees.

    "There's been a chicken-egg debate raging in the PPM world for decades: What comes first, the tool or the process? It seems reasonable to say, ‘We don't have a process now, so we'll just adopt the one in the tool.’ But you'll soon find out that the tool doesn't have a process, and you needed to do more planning and analysis before buying the tool." (Barry Cousins, Practice Lead, Project Portfolio Management)

    Assess your process maturity to determine the right tool approach

    Take the time to consider and reflect on the current and target state of the processes for project portfolio management and project management.

    Project Portfolio Management

    • Status and Progress Reporting
      1. Intake, Approval, and Prioritization

        PPM is the practice of selecting the right projects and ensuring the organization has the necessary resources to complete them. PPM should enable executive decision makers to make sense of the excess of demand and give IT the ability to prioritize those projects that are most valuable to the business.
      2. Resource Management

      3. Project Management

        1. Initiation
        2. Planning
        3. Execution
        4. Monitoring and Controlling
        5. Closing
        Tailor a project management framework to fit your organization. Formal methodologies aren’t always the best fit. Take what you can use from formal frameworks and define a right-sized approach to your project management processes.
      4. Project Closure

      5. Benefits Tracking

    Info-Tech’s maturity assessment tools can help you match your tools to your maturity level

    Use Info-Tech’s Project Portfolio Management Maturity Assessment Tool and Project Management Maturity Assessment Tool.

    • The next few slides in this step take you through using our maturity assessment tools to help gauge your current-state and target-state maturity levels for project management (PM) and project portfolio management (PPM).
    • In addition to the process maturity assessments, these workbooks also help you document current-state support tools and desired target-state tools.
    • The outputs of these workbooks can be used in your MS Project & M365 Action Plan Template, which we will help you develop in phase three of this blueprint.

    Download Info-Tech’s Project Portfolio Management Maturity Assessment Tool and Project Management Maturity Assessment Tool

    Samples of Info-Tech's Project Portfolio Management Maturity Assessment Tool and Project Management Maturity Assessment Tool.

    Conduct a gap analysis survey for both project and project portfolio management.

    • Review the category and activity statements: For each gap analysis tab in the maturity assessments, use the comprehensive activity statements to identify gaps for the organization.
    • Assess the current state: To assess the current state, evaluate whether the statement should be labeled as:
      • Absent: There is no evidence of any activities supporting this process.
      • Initial: Activity is ad hoc and not well defined.
      • Defined: Activity is established and there is moderate adherence to its execution.
      • Repeatable: Activity is established, documented, repeatable, and integrated with other phases of the process.
      • Managed: Activity execution is tracked by gathering qualitative and quantitative feedback

    Once this is documented, take some time to describe the type of tool being used to do this (commercial, home-grown, standardized document) and provide additional details, where applicable.

    Define the target state: Repeat the assessment of activity statements for the target state. Then gauge the organizational impact and complexity of improving each capability on a scale of very low to very high.

    Excerpt from Info-Tech's Project Portfolio Management Maturity Assessment Tool, the 'PPM Current State Target State Maturity Assessment Survey'. It has five columns whose purpose is denoted in notes. Column 1 'Category within the respective discipline'; Column 2 'Statement to consider'; Column 3 'Select the appropriate answer for current and target state'; Column 4 'Define the tool type'; Column 5 'Provide addition detail about the tool'.

    Analyze survey results for project and project portfolio management maturity

    Take stock of the gap between current state and target state.

    • What process areas have the biggest gap between current and target state?
    • What areas are aligned across current and target state?

    Identify what areas are currently the least and most mature.

    • What process area causes the most pain in the organization?
    • What process area is the organization’s lowest priority?

    Note the overall current process maturity.

    • After having done this exercise, does the overall maturity come as a surprise?
    • If so, what are some of the areas that were previously overlooked?
    A table and bar graph documenting and analysis of maturity survey results. The table has four columns labelled 'Process Area', 'Current Process Completeness', 'Current Maturity Level', and 'Target State Maturity'. Rows headers in the 'Process Area' column are 'Intake, Approval, and Prioritization', 'Resource Management', 'Portfolio Reporting', 'Project Closure and Benefits Realization', 'Portfolio Administration', and finally 'Overall Maturity'. The 'Current Process Completeness' column's values are in percentages. The 'Current Maturity Level' and 'Target State Maturity' columns' values can be one of the following: 'Absent', 'Initial', 'Defined', 'Repeatable', or 'Managed'. The bar chart visualizes the levels of the 'Target State' and 'Current State' with 'Absent' from 0-20%, 'Initial' from 20-40%, 'Defined' from 40-60%, 'Repeatable' from 60-80%, and 'Managed' from 80-100%.
    • Identify process areas with low levels of maturity
    • Spot areas of inconsistency between current and target state.
    • Assess the overall gap to get a sense of the magnitude of the effort required to get to the target state.
    • 100% doesn’t need to be the goal. Set a goal that is sustainable and always consider the value to effort ratio.

    Screenshot your results and put them into the MS Project and M365 Action Plan Template.

    Review the tool overview and plan to address gaps (tabs 3 & 4)

    Tool Overview:

    Analyze the applications used to support your project management and project portfolio management processes.

    Look for:

    • Tools that help with processes across the entire PM or PPM lifecycle.
    • Tools that are only used for one specific process.

    Reflect on the overlap between process areas with pain points and the current tools being used to complete this process.

    Consider the sustainability of the target-state tool choice

    Screenshot of a 'Tool Overview' table. Chart titled 'Current-to-Target State Supporting Tools by PPM Activity' documenting the current and target states of different supporting tools by PPM Activity. Tools listed are 'N/A', 'Standardized Document', 'Homegrown Tool', and 'Commercial Tool'.

    You have the option to create an action plan for each of the areas of improvement coming out of your maturity assessment.

    This can include:

    • Tactical Optimization Action: What is the main action needed to improve capability?
    • Related Actions: Is there a cross-over with any actions for other capabilities?
    • Timeframe: Is this near-term, mid-term, or long-term?
    • Proposed Start Date
    • Proposed Go-Live Date
    • RACI: Who will be responsible, accountable, consulted, and informed?
    • Status: What is the status of this action item over time?

    Determine the Future of Microsoft Project for Your Organization

    Phase 2: Weigh Your Implementation Options

    Phase 1: Determine Your Tool Needs

    Phase 2: Weigh Your Implementation Options

    Phase 3: Finalize Your Implementation Approach
    • Step 1.1: Survey the M365 work management landscape
    • Step 1.2: Perform a process maturity assessment to help inform your M365 starting point
    • Step 1.3: Consider the right MS Project licenses for your stakeholders
    • Step 2.1: Get familiar with extending Project for the web using Power Apps
    • Step 2.2: Assess the MS Gold Partner Community
    • Step 3.1: Prepare an action plan

    Phase Outcomes

    • A decision on how best to proceed (or not proceed) with Project for the web
    • A Partner outreach plan

    Step 2.1

    Get familiar with extending Project for the web using Power Apps

    Activities

    • Get familiar with Project for the web: how it differs from Microsoft’s traditional project offerings and where it is going
    • Understand the basics of how to extend Project for the web in Power Apps
    • Perform a feasibility test

    This step will walk you through the following activities:

    • Get familiar with Project for the web
    • Understand the basics of how to extend Project for the web in Power Apps
    • Perform a feasibility test to determine if taking a DIY approach to extending Project for the web is right for your organization currently

    This step usually involves the following participants:

    • Portfolio Manager (PMO Director)
    • Project Managers
    • Other relevant PMO stakeholders

    Outcomes of Step

    • A decision on how best to proceed (or not proceed) with Project for the web

    Project for the web is the latest of Microsoft’s project management offerings

    What is Project for the web?

    • First introduced in 2019 as Project Service, Project for the web (PFTW) is Microsoft’s entry into the world of cloud-based work management and lightweight project management options.
    • Built on the Power Platform and leveraging the Dataverse for data storage, PFTW integrates with the many applications that M365 users are already employing in their day-to-day work management and collaboration activities.
    • It is available as a part of your M365 subscription with the minimum activation of P1 license – it comes with P3 and P5 licenses as well.
    • From a functionality and user experience perspective, PFTW is closer to applications like Planner or Azure Boards than it is to traditional MS Project options.

    What does it do?

    • PFTW allows for task and dependency tracking and basic timeline creation and scheduling and offers board and grid view options. It also allows real-time coauthoring of tasks among team members scheduled to the same project.
    • PFTW also comes with a product/functionality Microsoft calls Roadmap, which allows users to aggregate multiple project timelines into a single view for reporting purposes.

    What doesn't it do?

    • With PFTW, Microsoft is offering noticeably less traditional project management functionality than its existing solutions. Absent are table stakes project management capabilities like critical path, baselining, resource load balancing, etc.

    Who is it for?

    • Currently, in its base lightweight project management option, PFTW is targeted toward occasional or part-time project managers (not the PMP-certified set) tasked with overseeing and/or collaborating on small to mid-sized initiatives and projects.

    Put Project for the web in perspective

    Out of the box, PFTW occupies a liminal space when it comes to work management options

    • More than a task management tool, but not quite a full project management tool
    • Not exactly a portfolio management tool, yet some PPM reporting functionality is inherent in the PFTW through Roadmap

    The table to the right shows some of the functionality in PFTW in relation to the task management functionality of Planner and the enterprise project and portfolio management functionality of Project Online.

    Table 2.1a Planner Project for the web Project Online
    Coauthoring on Tasks X X
    Task Planning X X X
    Resource Assignments X X X
    Board Views X X X
    MS Teams Integration X X X
    Roadmap X X
    Table and Gantt Views X X
    Task Dependency Tracking X X
    Timesheets X
    Financial Planning X
    Risks and Issues Tracking X
    Program Management X
    Advanced Portfolio Management X

    Project for the web will eventually replace Project Online

    • As early as 2018 Microsoft has been foreshadowing a transition away from the SharePoint-backed Project environments of Server and Online toward something based in Common Data Service (CDS) – now rebranded as the Dataverse.
    • Indeed, as recently as the spring of 2021, at its Reimagine Project Management online event, Microsoft reiterated its plans to sunset Project Online and transition existing Online users to the new environment of Project for the web – though it provided no firm dates when this might occur.
      • The reason for this move away from Online appears to be an acknowledgment that the rigidity of the tool is awkward in our current dynamic, collaborative, and overhead-adverse work management paradigm.
      • To paraphrase a point made by George Bullock, Sr. Product Marketing Manager, for Microsoft at the Reimagine Project Management event, teams want to manage work as they see fit, but the rigidity of legacy solutions doesn’t allow for this, leading to a proliferation of tools and data sprawl. (This comment was made during the “Overview of Microsoft Project” session during the Reimagine event.)

    PFTW is Microsoft’s proposed future-state antidote to this challenge. Its success will depend on how well users are able to integrate the solution into a wider M365 work management setting.

    "We are committed to supporting our customers on Project Online and helping them transition to Project for the Web. No end-of-support has been set for Project Online, but when the time comes, we will communicate our plans on the transition path and give you plenty of advance notice." (Heather Heide, Program Manager, Microsoft Planner and Project. This comment was made during the “Overview of Microsoft Project” session during the Reimagine event.)

    Project for the web can be extended beyond its base lightweight functionality

    Project for the web can be extended to add more traditional and robust project and project portfolio management functionality using the Power Platform.

    Microsoft plans to sunset Project Online in favor of PFTW will at first be a head-scratcher for those familiar with the extensive PPM functionality in Project Online and underwhelmed by the project and portfolio management in PFTW.

    However, having built the solution upon the Power Platform, Microsoft has made it possible to take the base functionality in PFTW and extend it to create a more custom, organizationally specific user experience.

    • With a little taste of what can be done with PFTW by leveraging the Power Platform – and, in particular, Power Apps – it becomes more obvious how we, as users, can begin to evolve the base tool toward a more traditional PPM solution and how, in time, Microsoft’s developers may develop the next iteration of PFTW into something more closely resembling Project Online.

    Before users get too excited about using these tools to build a custom PPM approach, we should consider the time, effort, and skills required. The slides ahead will take you through a series of considerations to help you gauge whether your PMO is ready to go it alone in extending the solution.

    Extending the tool enhances functionality

    Table 2.1a in this step displayed the functionality in PFTW in relation to the task management tool Planner and the robust PPM functionality in Online.

    The table to the right shows how the functionality in PFTW can differ from the base solution and Project Online when it is extended using the model-driven app option in Power Apps.

    Caveat: The list of functionality and processes in this table is sample data.

    This functionality is not inherent in the solution as soon as you integrate with Power Apps. Rather it must be built – and your success in developing these functions will depend upon the time and skills you have available.

    Table 2.1b Project for the web PFTW extended with PowerApps Project Online
    Critical Path X
    Timesheets X
    Financial Planning X X
    Risks and Issues Tracking X X
    Program Management X
    Status Updates X
    Project Requests X
    Business Cases X
    Project Charters X
    Resource Planning and Capacity Management X X
    Project Change Requests X

    Get familiar with the basics of Power Apps before you decide to go it alone

    While the concept of being able to customize and grow a commercial PPM tool is enticing, the reality of low-code development and application maintenance may be too much for resource-constrained PMOs.

    Long story short: Extending PFTW in Power Apps is time consuming and can be frustrating for the novice to intermediate user.

    It can take days, even weeks, just to find your feet in Power Apps, let alone to determine requirements to start building out a custom model-driven app. The latter activity can entail creating custom columns and tables, determining relationships between tables to get required outputs, in addition to basic design activities.

    Time-strapped and resource-constrained practitioners should pause before committing to this deployment approach. To help better understand the commitment, the slides ahead cover the basics of extending PFTW in Power Apps:

    1. Dataverse environments.
    2. Navigating Power App Designer and Sitemap Designer
    3. Customizing tables and forms in the Dataverse

    See Info-Tech’s M365 Project Portfolio Management Tool Guide for more information on Power Apps in general.

    Get familiar with Power Apps licensing

    Power Apps for 365 comes with E1 through E5 M365 licenses (and F3 and F5 licenses), though additional functionality can be purchased if required.

    While extending Project for the web with Power Apps does not at this time, in normal deployments, require additional licensing from what is included in a E3 or E5 license, it is not out of the realm of possibility that a more complex deployment could incur costs not included in the Power Apps for 365 that comes with your enterprise agreement.

    The table to the right shows current additional licensing options.

    Power Apps, Per User, Per App Plan

    Per User Plan

    Cost: US$10 per user per app per month, with a daily Dataverse database capacity of 40 MB and a daily Power Platform request capacity of 1,000. Cost: US$40 per user per month, with a daily Dataverse database capacity of 250 MB and a daily Power Platform request capacity of 5,000.
    What's included? This option is marketed as the option that allows organizations to “get started with the platform at a lower entry point … [or those] that run only a few apps.” Users can run an application for a specific business case scenario with “the full capabilities of Power Apps” (meaning, we believe, that unlicensed users can still submit data via an app created by a licensed user). What's included? A per-user plan allows licensed users to run unlimited canvas apps and model-driven apps – portal apps, the licensing guide says, can be “provisioned by customers on demand.” Dataverse database limits (the 250 MB and 5,000 request capacity mentioned above) are pooled at the per tenant, not the per user plan license, capacity.

    For more on Power Apps licensing, refer to Info-Tech’s Modernize Your Microsoft Licensing for the Cloud Era for more information.

    What needs to be configured?

    Extending Project for the web requires working with your IT peers to get the right environments configured based upon your needs.

    • PFTW data is stored in the Microsoft Dataverse (formerly Common Data Service or CDS).
    • The organization’s Dataverse can be made up of one to many environments based upon its needs. Environments are individual databases with unique proprieties in terms of who can access them and what applications can store data in them.
    • Project for the web supports three different types of environments: default, production, and sandbox.
    • You can have multiple instances of a custom PFTW app deployed across these environments and across different users – and the environment you choose depends upon the use case of each instance.

    Types of Environments

    • Default Environment

      • It is the easiest to deploy and get started with the PFTW Power App in the default environment. However, it is also the most restricted environment with the least room for configuration.
      • Microsoft recommends this environment for simple deployments or for projects that span the organization. This is because everyone in the organization is by default a member of this environment – and, with the least room for configuration, the app is relatively straightforward.
      • At minimum, you need one project license to deploy PFTW in the default environment.
    • Production Environment

      • This environment affords more flexibility for how a custom app can be configured and deployed. Unlike the default environment, deploying a production environment is a manual process (through the Power Platform Admin Center) and security roles need to be set to limit users who can access the environment.
      • Because users can be limited, production environments can be used to support more advanced deployments and can support diverse processes for different teams.
      • At present, you need at least five Project licenses to deploy to production environments.
    • Sandbox Environment

      • This environment is for users who are responsible for the creation of custom apps. It offers the same functionality as a production environment but allows users to make changes without jeopardizing a production environment.

    Resources to provide your IT colleagues with to help in your PFTW deployment:

    1. Project for the web admin help (Product Documentation, Microsoft)
    2. Advanced deployment for Project for the web (Video, Microsoft)
    3. Get Started with Project Power App (Product Support Documentation, Microsoft)
    4. Project for the Web Security Roles (Product Support Documentation, Microsoft)

    Get started creating or customizing a model-driven app

    With the proper environments procured, you can now start extending Project for the web.

    • Navigate to the environment you would like to extend PFTW within. For the purposes of the slides ahead, we’ll be using a sandbox environment for an example. Ensure you have the right access set up for production and sandbox environments of your own (see links on previous slide for more assistance).
    • To begin extending PFTW, the two core features you need to be familiar with before you start in Power Apps are (1) Tables/Entities and (2) the Power Apps Designer – and in particular the Site Map.

    From the Power Apps main page in 365, you can change your environment by selecting from the options in the top right-hand corner of the screen.

    Screenshot of the Power Apps “Apps” page in a sandbox environment. The Project App will appear as “Project” when the application is installed, though it is also easy to create an app from scratch.

    Model-driven apps are built around tables

    In Power Apps, tables (formerly called entities and still referred to as entities in the Power Apps Designer) function much like tables in Excel: they are containers of columns of data for tracking purposes. Tables define the data for your app, and you build your app around them.

    In general, there are three types of tables:

    • Standard: These are out-of-the box tables included with a Dataverse environment. Most standard tables can be customized.
    • Managed: These are tables that get imported into an environment as part of a managed solution. Managed tables cannot be customized.
    • Custom: These types of tables can either be imported from another solution or created directly in the Dataverse environment. To create custom tables, users need to have System Administrator or System Customizer security roles within the Dataverse.

    Tables can be accessed under Data banner on the left-hand panel of your Power Apps screen.

    The below is a list of standard tables that can be used to customize your Project App.

    A screenshot of the 'Data' banner in 'Power Apps' and a list of table names.

    Table Name

    Display Name

    msdyn_project Project
    msdyn_projectchange Change
    msdyn_projectprogram Program
    msdyn_projectrequest Request
    msdyn_projectrisk Risk
    msdyn_projectissue Issue
    msdyn_projectstatusreport Status

    App layouts are designed in the Power App Designer

    You configure tables with a view to using them in the design of your app in the Power Apps Designer.

    • If you’re customizing a Project for the web app manually installed into your production or sandbox environment, you can access Designer by highlighting the app from your list of apps on the Apps page and clicking “Edit” in the ribbon above.
      • If you’re creating a model-driven app from scratch, Designer will open past the “Create a New App” intro screen.
      • If you need to create separate apps in your environment for different PMOs or business units, it is as easy to create an app from scratch as it is to customize the manual install.
    • The App Designer is where you can design the layout of your model-driven app and employ the right data tables.
    Screenshot of the 'App Designer' screen in 'Power Apps'.

    The Site Map determines the navigation for your app, i.e. it is where you establish the links and pages users will navigate. We will review the basics of the sitemap on the next few slides.

    The tables that come loaded into your Project Power App environment (at this time, 37) via the manual install will appear in the Power Apps Designer in the Entity View pane at the bottom of the page. You do not have to use all of them in your design.

    Navigate the Sitemap Designer

    With the components of the previous two slides in mind, let’s walk through how to use them together in the development of a Project app.

    As addressed in the previous slide, the sitemap determines the navigation for your app, i.e. it is where you establish the links and the pages that users will navigate.

    To get to the Sitemap Designer, highlight the Project App from your list of apps on the Apps page and click “Edit” in the ribbon above. If you’re creating a model-driven app from scratch, Designer will open past the “Create a New App” intro screen.

    • To start designing your app layout, click the pencil icon beside the Site Map logo on the App Designer screen.
    • This will take you into the Sitemap Designer (see screenshot to the right). This is where you determine the layout of your app and the relevant data points (and related tables from within the Dataverse) that will factor into your Project App.
    • In the Sitemap Designer, you simply drag and drop the areas, groups, and subareas you want to see in your app’s user interface (see next slide for more details).
    Screenshot of the 'Sitemap Designer' in 'Power Apps'.

    Use Areas, Groups, and Subareas as building blocks for your App

    Screenshots of the main window and the right-hand panel in the 'Sitemap Designer', and of the subarea pop-up panel where you connect components to data tables. The first two separate elements into 'Area', 'Group', and 'Subarea'.

    Drag and drop the relevant components from the panel on the right-hand side of the screen into the main window to design the core pieces that will be present within your user interface.

    For each subarea in your design, use the pop-up panel on the right-hand side of the screen to connect your component the relevant table from within your Dataverse environment.

    How do Areas, Groups, and Subareas translate into an app?

    Screenshots of the main window in the 'Sitemap Designer' and of a left-hand panel from a published 'Project App'. There are notes defining the terms 'Area', 'Group', and 'Subarea' in the context of the screenshot.

    The names or titles for your Areas and Groups can be customized within the Sitemap Designer.

    The names or titles for your Subareas is dependent upon your table name within the Dataverse.

    Area: App users can toggle the arrows to switch between Areas.

    Group: These will change to reflect the chosen Area.

    Subarea: The tables and forms associated with each subarea.

    How to properly save and publish your changes made in the Sitemap Designer and Power Apps Designer:

    1. When you are done making changes to your components within the Sitemap Designer, and want your changes to go live, hit the “Publish” button in the top right corner; when it has successfully published, select “Save and Close.”
    2. You will be taken back to the Power App Designer homepage. Hit “Save,” then “Publish,” and then finally “Play,” to go to your app or “Save and Close.”

    How to find the right tables in the Dataverse

    While you determine which tables will play into your app in the Sitemap Designer, you use the Tables link to customize tables and forms.

    Screenshots of the tables search screen and the 'Tables' page under the 'Data' banner in 'Power Apps'.

    The Tables page under the Data banner in Power Apps houses all of the tables available in your Dataverse environment. Do not be overwhelmed or get too excited. Only a small portion of the tables in the Tables folder in Power Apps will be relevant when it comes to extending PFTW.

    Find the table you would like to customize and/or employ in your app and select it. The next slides will look at customizing the table (if you need to) and designing an app based upon the table.

    To access all the tables in your environment, you’ll need to ensure your filter is set correctly on the top right-hand corner of the screen, otherwise you will only see a small portion of the tables in your Dataverse environment.

    If you’re a novice, it will take you some time to get familiar with the table structure in the Dataverse.

    We recommend you start with the list of tables listed on slide. You can likely find something there that you can use or build from for most PPM purposes.

    How to customize a table (1 of 3)

    You won’t necessarily need to customize a table, but if you do here are some steps to help you get familiar with the basics.

    Screenshot of the 'Columns' tab, open in the 'msdyn_project table' in 'Power Apps'.

    In this screenshot, we are clicked into the msdyn_project (display name: Project) table. As you can see, there are a series of tabs below the name of the table, and we are clicked into the Columns tab. This is where you can see all of the data points included in the table.

    You are not able to customize all columns. If a column that you are not able to customize does not meet your needs, you will need to create a custom column from the “+Add column” option.

    “Required” or “Optional” status pertains to when the column or field is used within your app. For customizable or custom columns this status can be set when you click into each column.

    How to customize a table (2 of 3)

    Create a custom “Status” column.

    By way of illustrating how you might need to customize a table, we’ll highlight the “msdyn_project_statecode” (display name: Project Status) column that comes preloaded in the Project (msdyn_project) table.

    • The Project Status column only gives you a binary choice. While you are able to customize what that binary choice is (it comes preloaded with “Active” and “Inactive” as the options) you cannot add additional choices – so you cannot set it to red/yellow/green, the most universally adopted options for status in the project portfolio management world.
    • Because of this, let’s look at the effort involved in creating a choice and adding a custom column to your table based upon that choice.
    Screenshots of the '+New choice' button in the 'Choices' tab and the 'New choice' pane that opens when you click it.

    From within the Choices tab, click “+New choice” option to create a custom choice.

    A pane will appear to the right of your screen. From there you can give your choice a name, and under the “Items” header, add your list of options.

    Click save. Your custom choice is now saved to the Choices tab in the Dataverse environment and can be used in your table. Further customizations can be made to your choice if need be.

    How to customize a table (3 of 3)

    Back in the Tables tab, you can put your new choice to work by adding a column to a table and selecting your custom choice.

    Screenshots of the pop-up window that appear when you click '+Add Column', and details of what happens when you select the data type 'Choice'.

    Start by selecting “+ Add Column” at the top left-hand side of your table. A window will appear on the right-hand side of the page, and you will have options to name your column and choose the data type.

    As you can see in this screenshot to the left, data type options include text, number and date types, and many more. Because we are looking to use our custom choice for this example, we are going to choose “Choice.”

    When you select “Choice” as your data type, all of the choice options available or created in your Dataverse environment will appear. Find your custom choice – in this example the one name “RYG Status” – and click done. When the window closes, be sure to select “Save Table.”

    How to develop a Form based upon your table (1 of 3 – open the form editor)

    A form is the interface users will engage with when using your Project app.

    When the Project app is first installed in your environment, the main user form will be lacking, with only a few basic data options.

    This form can be customized and additional tabs can be added to your user interface.

    1. To do this, go to the table you want to customize.
    2. In the horizontal series of tabs at the top of the screen, below the table title select the “Forms” option.
    3. Click on the main information option or select Edit Form for the form with “Main” under its form type. A new window will open where you can customize your form.
    Screenshot of the 'Forms' tab, open in the 'msdyn_project' table in 'Power Apps'.

    Select the Forms tab.

    Start with the form that has “Main” as its Format Type.

    How to develop a Form based upon your table (2 of 3 – add a component)

    Screenshot of the 'Components' window in 'Power Apps' with a list of layouts as a window to the right of the main screen where you can name and format the chosen layout.

    You can add element like columns or sections to your form by selecting the Components window.

    In this example, we are adding a 1-Column section. When you select that option from the menu options on the left of the screen, a window will open to the right of the screen where you can name and format the section.

    Choose the component you would like to add from the layout options. Depending on the table element you are looking to use, you can also add input options like number inputs and star ratings and pull in related data elements like a project timeline.

    How to develop a Form based upon your table (3 of 3 – add table columns)

    Screenshot of the 'Table Columns' window in 'Power Apps' and instructions for adding table columns.

    If you click on the “Table Columns” option on the left-hand pane, all of the column options from within your table will appear in alphabetical order.

    When clicked within the form section you would like to add the new column to, select the column from the list of option in the left-hand pane. The new data point will appear within the section. You can order and format section elements as you would like.

    When you are done editing the form, click the “Save” icon in the top right-hand corner. If you are ready for your changes to go live within your Project App, select the “Publish” icon in the top right-hand corner. Your updated form will go live within all of the apps that use it.

    The good and the bad of extending Project for the web

    The content in this step has not instructed users how to extend PFTW; rather, it has covered three basic core pieces of Power Apps that those interesting in PFTW need to be aware of: Dataverse environments, the Power Apps and Sitemaps Designers, and Tables and associated Forms.

    Because we have only covered the very tip of the iceberg, those interested in going further and taking a DIY approach to extending PFTW will need to build upon these basics to unlock further functionality. Indeed, it takes work to develop the product into something that begins to resemble a viable enterprise project and portfolio management solution. Here are some of the good and the bad elements associated with that work:

    The Good:

    • You can right-size and purpose build: add as much or as little project management rigor as your process requires. Related, you can customize the solution in multiple ways to suit the needs of specific business units or portfolios.
    • Speed to market: it is possible to get up and running quickly with a minimum-viable product.

    The Bad:

    • Work required: to build anything beyond MVP requires independent research and trial and error.
    • Time required: to build anything beyond MVP requires time and skills that many PMOs don’t have.
    • Shadow support costs: ungoverned app creation could have negative support and maintenance impacts across IT.

    "The move to Power Platform and low code development will […increase] maintenance overhead. Will low code solution hit problems at scale? [H]ow easy will it be to support hundreds or thousands of small applications?

    I can hear the IT support desks already complaining at the thought of this. This part of the puzzle is yet to hit real world realities of support because non developers are busy creating lots of low code applications." (Ben Hosking, Software Developer and Blogger, "Why low code software development is eating the world")

    Quick start your extension with the Accelerator

    For those starting out, there is a pre-built app you can import into your environment to extend the Project for the web app without any custom development.

    • If the DIY approach in the previous slides was overwhelming, and you don’t have the budget for a MS Partner route in the near-term, this doesn’t mean that evolving your Project for the web app is unattainable.
    • Thanks to a partnership between OnePlan (one of the MS Gold Partners we detail in the next step) and Microsoft, Project for the web users have access to a free resource to help them evolve the base Project app. It’s called the “Project for the web Accelerator” (commonly referred to as “the Accelerator” for short).
    • Users interested in learning more about, and accessing, this free resource should refer to the links below:
      1. The Future of Microsoft Project Online (source: OnePlan).
      2. Introducing the Project Accelerator (source: Microsoft).
      3. Project for the web Accelerator (source: GitHub)
    Screen shot from one of the dashboards that comes with the Accelerator (image source: GitHub).

    2.1.1 Perform a feasibility test (1 of 2)

    15 mins

    As we’ve suggested, and as the material in this step indicates, extending PFTW in a DIY fashion is not small task. You need a knowledge of the Dataverse and Power Apps, and access to the requisite skills, time, and resources to develop the solution.

    To determine whether your PMO and organization are ready to go it alone in extending PFTW, perform the following activity:

    1. Convene a collection of portfolio, project, and PMO staff.
    2. Using the six-question survey on tab 5 of the Microsoft Project & M365 Licensing Tool (see screenshot to the right) as a jumping off point for a discussion, consider the readiness of your PMO or project organization to undertake a DIY approach to extending and implementing PFTW at this time.
    3. You can use the recommendations on tab 5 of the Microsoft Project & 365 Licensing Tool to inform your next steps, and input the gauge graphic in section 4 of the Microsoft Project & M365 Action Plan Template.
    Screenshots from the 'Project for the Web Extensibility Feasibility Test'.

    Go to tab 5 of the Microsoft Project & M365 Licensing Tool

    See next slide for additional activity details

    2.1.1 Perform a feasibility test (2 of 2)

    Input: The contents of this step, The Project for the Web Extensibility Feasibility Test (tab 5 in the Microsoft Project & 365 Licensing Tool)

    Output: Initial recommendations on whether to proceed and how to proceed with a DIY approach to extending Project for the web

    Materials: The Project for the Web Extensibility Feasibility Test (tab 5 in the Microsoft Project & 365 Licensing Tool)

    Participants: Portfolio Manager (PMO Director), Project Managers, Other relevant PMO stakeholders

    Step 2.2

    Assess the Microsoft Gold Partner Community

    Activities

    • Review what to look for in a Microsoft Partner
    • Determine whether your needs would benefit from reaching out to a Microsoft Partner
    • Review three key Partners from the North American market
    • Create a Partner outreach plan

    This step will walk you through the following activities:

    • Review what to look for in a Microsoft Partner.
    • Determine whether your needs would benefit from reaching out to a Microsoft Partner.
    • Review three key Partners from the North American market.

    This step usually involves the following participants:

    • Portfolio Manager (PMO Director)
    • Project Managers
    • Other relevant PMO stakeholders

    Outcomes of Step

    • A better understanding of MS Partners
    • A Partner outreach plan

    You don’t have to go it alone

    Microsoft has an established community of Partners who can help in your customizations and implementations of Project for the web and other MS Project offerings.

    If the content in the previous step seemed too technical or overly complex in a way that scared you away from a DIY approach to extending Microsoft’s latest project offering (and at some point in the near future, soon to be its only project offering), Project for the web, fear not.

    You do not have to wade into the waters of extending Project for the web alone, or for that matter, in implementing any other MS Project solution.

    Instead, Microsoft nurtures a community of Silver and Gold partners who offer hands-on technical assistance and tool implementation services. While the specific services provided vary from partner to partner, all can assist in the customization and implementation of any of Microsoft’s Project offerings.

    In this step we will cover what to look for in a Partner and how to assess whether you are a good candidate for the services of a Partner. We will also highlight three Partners from within the North American market.

    The basics of the Partner community

    What is a Microsoft Partner?

    Simply put, an MS Gold Partner is a software or professional services organization that provides sales and services related to Microsoft products.

    They’re resellers, implementors, integrators, software manufacturers, trainers, and virtually any other technology-related business service.

    • Microsoft has for decades opted out of being a professional services organization, outside of its very “leading edge” offerings from MCS (Microsoft Consulting Services) for only those technologies that are so new that they aren’t yet supported by MS Partners.
    • As you can see in the chart on the next slide, to become a silver or gold certified partner, firms must demonstrate expertise in specific areas of business and technology in 18 competency areas that are divided into four categories: applications and infrastructure, business applications, data and AI, and modern workplace and security.

    More information on what it takes to become a Microsoft Partner:

    1. Partner Center (Document Center, Microsoft)
    2. Differentiate your business by attaining Microsoft competencies (Document Center, Microsoft)
    3. Partner Network Homepage (Webpage, Microsoft)
    4. See which partner offer is right for you (Webpage, Microsoft)

    Types of partnerships and qualifications

    Microsoft Partner Network

    Microsoft Action Pack

    Silver Competency

    Gold Competency

    What is it?

    The Microsoft Partner Network (MPN) is a community that offers members tools, information, and training. Joining the MPN is an entry-level step for all partners. The Action Pack is an annual subscription offered to entry-level partners. It provides training and marketing materials and access to expensive products and licenses at a vastly reduced price. Approximately 5% of firms in the Microsoft Partner Network (MPN) are silver partners. These partners are subject to audits and annual competency exams to maintain silver status. Approximately 1% of firms in the Microsoft Partner Network (MPN) are gold partners. These partners are subject to audits and annual competency exams to maintain Gold status.

    Requirements

    Sign up for a membership Annual subscription fee While requirements can vary across competency area, broadly speaking, to become a silver partner firms must:
    • Pass regular exams and skills assessments, with at least two individuals on staff with Microsoft Certified Professional Status.
    • Hit annual customer, revenue, and licensing metrics.
    • Pay the annual subscription fee.
    While requirements can vary across competency area, broadly speaking, to become a gold partner firms must:
    • Pass regular exams and skills assessments, with at least two individuals on staff with Microsoft Certified Professional Status.
    • Hit annual customer, revenue, and licensing metrics.
    • Pay the annual subscription fee.

    Annual Fee

    No Cost $530 $1800 $5300

    When would a MS Partner be helpful?

    • Project management and portfolio management practitioners might look into procuring the services of a Microsoft Partner for a variety of reasons.
    • Because services vary from partner to partner (help to extend Project for the web, implement Project Server or Project Online, augment PMO staffing, etc.) we won’t comment on specific needs here.
    • Instead, the three most common conditions that trigger the need are listed to the right.

    Speed

    When you need to get results faster than your staff can grow the needed capabilities.

    Cost

    When the complexity of the purchase decision, implementation, communication, training, configuration, and/or customization cannot be cost-justified for internal staff, often because you’ll only do it once.

    Expertise & Skills

    When your needs cannot be met by the core Microsoft technology without significant extension or customization.

    Canadian Microsoft Partners Spotlight

    As part of our research process for this blueprint, Info-Tech asked Microsoft Canada for referrals and introductions to leading Microsoft Partners. We spent six months collaborating with them on fresh research into the underlying platform.

    These vendors are listed below and are highlighted in subsequent slides.

    Spotlighted Partners:

    Logo for One Plan. Logo for PMO Outsource Ltd. Logo for Western Principles.

    Please Note: While these vendors were referred to us by Microsoft Canada and have a footprint in the Canadian market, their footprints extend beyond this to the North American and global markets.

    A word about our approach

    Photo of Barry Cousins, Project Portfolio Management Practice Lead, Info-Tech Research Group.
    Barry Cousins
    Project Portfolio Management Practice Lead
    Info-Tech Research Group

    Our researchers have been working with Microsoft Project Online and Microsoft Project Server clients for years, and it’s fair to say that most of these clients (at some point) used a Microsoft Partner in their deployment. They’re not really software products, per se; they’re platforms. As a Microsoft Partner in 2003 when Project Server got its first big push, I heard it loud and clear: “Some assembly required. You might only make 7% on the licensing, but the world’s your oyster for services.”

    In the past few years, Microsoft froze the market for major Microsoft Project decisions by making it clear that the existing offering is not getting updates while the new offering (Project for the web) doesn’t do what the old one did. And in a fascinating timing coincidence, the market substantially adopted Microsoft 365 during that period, which enables access to Project for the web.

    Many of Info-Tech’s clients are justifiably curious, confused, and concerned, while the Microsoft Partners have persisted in their knowledge and capability. So, we asked Microsoft Canada for referrals and introductions to leading Microsoft Partners and spent six months collaborating with them on fresh research into the underlying platform.

    Disclosure: Info-Tech conducted collaborative research with the partners listed on the previous slide to produce this publication. Market trends and reactions were studied, but the only clients identified were in case studies provided by the Microsoft Partners. Info-Tech’s customers have been, and remain, anonymous. (Barry Cousins, Project Portfolio Management Practice Lead, Info-Tech Research Group)

    MS Gold Partner Spotlight:

    OnePlan

    Logo for One Plan.
    Headquarters: San Marcos, California, and Toronto, Ontario
    Number of Employees: ~80
    Active Since: 2007 (as EPMLive)
    Website: www.oneplan.ai

    Who are they?

    • While the OnePlan brand has only been the marketplace for a few years, the company has been a major player in MS Gold Partner space for well over a decade.
    • Born out of EPMLive in the mid-aughts, OnePlan Solutions has evolved through a series of acquisitions, including Upland, Tivitie, and most recently Wicresoft.

    What do they do?

    • Software: Its recent rebranding is largely because OnePlan Solutions is as much a software company as it is a professional services firm. The OnePlan software product is an impressive solution that can be used on its own to facilitate the portfolio approaches outlined on the next slide and that can also integrate with the tools your organization is already using to manage tasks (see here for a full rundown of the solutions within the Microsoft stack and beyond OnePlan can integrate with).
    • Beyond its ability to integrate with existing solutions, as a software product, OnePlan has modules for resource planning, strategic portfolio planning, financial planning, time tracking, and more.

    • PPM Consulting Services: The OnePlan team also offers portfolio management consulting services. See the next slide for a list of its approaches to project portfolio management.

    Markets served

    • US, Canada, Europe, and Australia

    Channel Differentiation

    • OnePlan scales to all the PPM needs of all industry types.
    • Additionally, OnePlan offers insights and functionality specific to the needs of BioTech-Pharma.

    What differentiates OnePlan?

    • OnePlan co-developed the Project Accelerator for Project for the web with Microsoft. The OnePlan team’s involvement in developing the Accelerator and making it free for users to access suggests it is aligned to and has expertise in the purpose-built and collaborative vision behind Microsoft’s move away from Project Online and toward the Power Platform and Teams collaboration.
    • 2021 MS Gold Partner of the Year. At Microsoft’s recent Microsoft Inspire event, OnePlan was recognized as the Gold Partner of the Year for Project and Portfolio Management as well as a finalist for Power Apps and Power Automate.
    • OnePlan Approaches: Below is a list of the services or approaches to project portfolio management that OnePlan provides. See its website for more details.
      • Strategic Portfolio Management: Align work to objectives and business outcomes. Track performance against the proposed objectives outcomes.
      • Agile Portfolio Management: Implement Agile practices across the organization, both at the team and executive level.
      • Adaptive Portfolio Management: Allow teams to use the project methodology and tools that best suit the work/team. Maintain visibility and decision making across the entire portfolio.
      • Professional Services Automation: Use automation to operate with greater efficiency.

    "OnePlan offers a strategic portfolio, financial and resource management solution that fits the needs of every PMO. Optimize your portfolio, financials and resources enterprise wide." (Paul Estabrooks, Vice President at OnePlan)

    OnePlan Case Study

    This case study was provided to Info-Tech by OnePlan.

    Brambles

    INDUSTRY: Supply Chain & Logistics
    SOURCE: OnePlan

    Overview: Brambles plays a key role in the delivery or return of products amongst global trading partners such as manufacturers, distributors and retailers.

    Challenge

    Brambles had a variety of Project Management tools with no easy way of consolidating project management data. The proliferation of project management solutions was hindering the execution of a long-term business transformation strategy. Brambles needed certain common and strategic project management processes and enterprise project reporting while still allowing individual project management solutions to be used as part of the PPM platform.

    Solution

    As part of the PMO-driven business transformation strategy, Brambles implemented a project management “operating system” acting as a foundation for core processes such as project intake, portfolio management, resource, and financial planning and reporting while providing integration capability for a variety of tools used for project execution.

    OnePlan’s new Adaptive PPM platform, combining the use of PowerApps and OnePlan, gives Brambles the desired PPM operating system while allowing for tool flexibility at the execution level.

    Results

    • Comprehensive picture of progress across the portfolio.
    • Greater adoption by allowing flexibility of work management tools.
    • Modern portfolio management solution that enables leadership to make confident decision.

    Solution Details

    • OnePlan
    • Project
    • Power Apps
    • Power Automate
    • Power BI
    • Teams

    Contacting OnePlan Solutions

    www.oneplan.ai

    Joe Larscheid: jlarscheid@oneplan.ai
    Paul Estabrooks: pestabrooks@oneplan.ai
    Contact Us: contact@oneplan.ai
    Partners: partner@oneplan.ai

    Partner Resources. OnePlan facilitates regular ongoing live webinars on PPM topics that anyone can sign up for on the OnePlan website.

    For more information on upcoming webinars, or to access recordings of past webinars, see here.

    Additional OnePlan Resources

    1. How to Extend Microsoft Teams into a Collaborative Project, Portfolio and Work Management Solution (on-demand webinar, OnePlan’s YouTube channel)
    2. What Does Agile PPM Mean To The Modern PMO (on-demand webinar, OnePlan’s YouTube channel)
    3. OnePlan is fused with the Microsoft User Experience (blog article, OnePlan)
    4. Adaptive Portfolio Management Demo – Bringing Order to the Tool Chaos with OnePlan (product demo, OnePlan’s YouTube channel)
    5. How OnePlan is aligning with Microsoft’s Project and Portfolio Management Vision (blog article, OnePlan)
    6. Accelerating Office 365 Value with a Hybrid Project Portfolio Management Solution (product demo, OnePlan’s YouTube channel)

    MS Gold Partner Spotlight:

    PMO Outsource Ltd.

    Logo for PMO Outsource Ltd.

    Headquarters: Calgary, Alberta, and Mississauga, Ontario
    Website: www.pmooutsource.com

    Who are they?

    • PMO Outsource Ltd. is a Microsoft Gold Partner and PMI certified professional services firm based in Alberta and Ontario, Canada.
    • It offers comprehensive project and portfolio management offerings with a specific focus on project lifecycle management, including demand management, resource management, and governance and communication practices.

    What do they do?

    • Project Online and Power Platform Expertise. The PMO Outsource Ltd. team has extensive knowledge in both Microsoft’s old tech (Project Server and Desktop) and in its newer, cloud-based technologies (Project Online, Project for the web, the Power Platform, and Dynamics 365). As the case study in two slides demonstrates, PMO Outsource Ltd. Uses its in-depth knowledge of the Microsoft suite to help organizations automate project and portfolio data collection process, create efficiencies, and encourage cloud adoption.
    • PPM Consulting Services: In addition to its Microsoft platform expertise, the PMO Outsource Ltd. team also offers project and portfolio management consulting services, helping organizations evolve their process and governance structures as well as their approaches to PPM tooling.

    Markets served

    • Global

    Channel Differentiation

    • PMO Outsource Ltd. scales to all the PPM needs of all industry types.

    What differentiates PMO Outsource Ltd.?

    • PMO Staff Augmentation. In addition to its technology and consulting services, PMO Outsource Ltd. offers PMO staff augmentation services. As advertised on its website, it offers “scalable PMO staffing solutions. Whether you require Project Managers, Business Analysts, Admins or Coordinators, [PMO Outsource Ltd.] can fulfill your talent search requirements from a skilled pool of resources.”
    • Multiple and easy-to-understand service contract packages. PMO Outsource Ltd. offers many prepackaged service offerings to suit PMOs’ needs. Those packages include “PMO Management, Admin, and Support,” “PPM Solution, Site and Workflow Configuration,” and “Add-Ons.” For full details of what’s included in these services packages, see the PMO Outsource Ltd. website.
    • PMO Outsource Ltd. Services: Below is a list of the services or approaches to project portfolio management that PMO Outsource Ltd. Provides. See its website for more details.
      • Process Automation, Workflows, and Tools. Facilitate line of sight by tailoring Microsoft’s technology to your organization’s needs and creating custom workflows.
      • PMO Management Framework. Receive a professionally managed PPM methodology as well as governance standardization of processes, tools, and templates.
      • Custom BI Reports. Leverage its expertise in reporting and dashboarding to create the visibility your organization needs.

    "While selecting an appropriate PPM tool, the PMO should not only evaluate the standard industry tools but also analyze which tool will best fit the organization’s strategy, budget, and culture in the long run." (Neeta Manghnani, PMO Strategist, PMO Outsource Ltd.)

    PMO Outsource Ltd. Case Study

    This case study was provided to Info-Tech by PMO Outsource Ltd.

    SAMUEL

    INDUSTRY: Manufacturing
    SOURCE: PMO Outsource Ltd.

    Challenge

    • MS Project 2013 Server (Legacy/OnPrem)
    • Out-of-support application and compliance with Office 365
    • Out-of-support third-party application for workflows
    • No capability for resource management
    • Too many manual processes for data maintenance and server administration

    Solution

    • Migrate project data to MS Project Online
    • Recreate workflows using Power Automate solution
    • Configure Power BI content packs for Portfolio reporting and resource management dashboards
    • Recreate OLAP reports from legacy environment using Power BI
    • Cut down nearly 50% of administrative time by automating PMO/PPM processes
    • Save costs on Server hardware/application maintenance by nearly 75%

    Full Case Study Link

    • For full details about how PMO Outsource Ltd. assisted Samuel in modernizing its solution and creating efficiencies, visit the Microsoft website where this case study is highlighted.

    Contacting PMO Outsource Ltd.

    www.pmooutsource.com

    700 8th Ave SW, #108
    Calgary, AB T2P 1H2
    Telephone : +1 (587) 355-3745
    6045 Creditview Road, #169
    Mississauga, ON L5V 0B1
    Telephone : +1 (289) 334-1228
    Information: info@pmooutsource.com
    LinkedIn: https://www.linkedin.com/company/pmo-outsource/

    Partner Resources. PMO Outsource Ltd.’s approach is rooted within a robust and comprehensive PPM framework that is focused on driving strategic outcomes and business success.

    For a full overview of its PPM framework, see here.

    Additional PMO Outsource Ltd. Resources

    1. 5 Benefits of PPM tools and PMO process automation (blog article, PMO Outsource Ltd.)
    2. Importance of PMO (blog article, PMO Outsource Ltd.)
    3. Meet the Powerful and Reimagined PPM tool for Everyone! (video, PMO Outsource Ltd. LinkedIn page)
    4. MS Project Tips: How to add #Sprints to an existing Project? (video, PMO Outsource Ltd. LinkedIn page)
    5. MS Project Tips: How to add a milestone to your project? (video, PMO Outsource Ltd. LinkedIn page)
    6. 5 Benefits of implementing Project Online Tools (video, PMO Outsource Ltd. LinkedIn page)

    MS Gold Partner Spotlight:

    Western Principles

    Logo for Western Principles.

    Headquarters: Vancouver, British Columbia
    Years Active: 16 Years
    Website: www.westernprinciples.com

    Who are they?

    • Western Principles is a Microsoft Gold Partner and UMT 360 PPM software provider based in British Columbia with a network of consultants across Canada.
    • In the last sixteen years, it has successfully conducted over 150 PPM implementations, helping in the implementation, training, and support of Microsoft Project offerings as well as UMT360 – a software solution provider that, much like OnePlan, enhances the PPM capabilities of the Microsoft platform.

    What do they do?

    • Technology expertise. The Western Principles team helps organizations maximize the value they are getting form the Microsoft Platform. Not only does it offer expertise in all the solutions in the MS Project ecosystem, it also helps organizations optimize their use and understanding of Teams, SharePoint, the Power Platform, and more. In addition to the Microsoft platform, Western Principles is partnered with many other technology providers, including UMT360 for strategic portfolio management, the Simplex Group for project document controls, HMS for time sheets, and FluentPro for integration, back-ups, and migrations.
    • PPM Consulting Services: In addition to its technical services and solutions, Western Principles offers PPM consulting and staff augmentation services.

    Markets served

    • Canada

    Channel Differentiation

    • Western Principles scales to all the PPM needs of all industry types, public and private sector.
    • In addition, its website offers persona-specific information based on the PPM needs of engineering and construction, new product development, marketing, and more.

    What differentiates Western Principles?

    • Gold-certified UMT 360 partner. In addition to being a Microsoft Gold Partner, Western Principles is a gold-certified UMT 360 partner. UMT 360 is a strategic portfolio management tool that integrates with many other work management solutions to offer holistic line of sight into the organization’s supply-demand pain points and strategic portfolio management needs. Some of the solutions UMT 360 integrates with include Project Online and Project for the web, Azure DevOps, Jira, and many more. See here for more information on the impressive functionality in UMT360.
    • Sustainment Services. Adoption can be the bane of most PPM tool implementations. Among the many services Western Principles offers, its “sustainment services” stand out. According to Western Principles’ website, these services are addressed to those who require “continual maintenance, change, and repair activities” to keep PPM systems in “good working order” to help maximize ROI.
    • Western Principles Services: In addition to the above, below is a list of some of the services that Western Principles offers. See its website for a full list of services.
      • Process Optimization: Determine your requirements and process needs.
      • Integration: Create a single source of truth.
      • Training: Ensure your team knows how to use the systems you implement.
      • Staff Augmentation: Provide experienced project team members based upon your needs.

    "One of our principles is to begin with the end in mind. This means that we will work with you to define a roadmap to help you advance your strategic portfolio … and project management capabilities. The roadmap for each customer is different and based on where you are today, and where you need to get to." (Western Principles, “Your Strategic Portfolio Management roadmap,” Whitepaper)

    Contacting Western Principles

    www.westernprinciples.com

    610 – 700 West Pender St.
    Vancouver, BC V6C 1G8
    +1 (800) 578-4155
    Information: info@westernprinciples.com
    LinkedIn: https://www.linkedin.com/company/western-principle...

    Partner Resources. Western Principles provides a multitude of current case studies on its home page. These case studies let you know what the firm is working on this year and the type of support it provides to its clientele.

    To access these case studies, see here.

    Additional Western Principles Resources

    1. Program and Portfolio Roll ups with Microsoft Project and Power BI (video, Western Principles YouTube Channel)
    2. Dump the Spreadsheets for Microsoft Project Online (video, Western Principles YouTube Channel)
    3. Power BI for Project for the web (video, Western Principles YouTube Channel)
    4. How to do Capacity Planning and Resource Management in Microsoft Project Online [Part 1 & Part 2] (video, Western Principles YouTube Channel)
    5. Extend & Integrate Microsoft Project (whitepaper, Western Principles)
    6. Your COVID-19 Return-to-Work Plan (whitepaper, Western Principles)

    Watch Info-Tech’s Analyst-Partner Briefing Videos to lean more

    Info-Tech was able to sit down with the partners spotlighted in this step to discuss the current state of the PPM market and Microsoft’s place within it.

    • All three partners spotlighted in this step contributed to Info-Tech’s research process for this publication.
    • For two of the partners, OnePlan and PMO Outsource Ltd., Info-Tech was able to record a conversation where our analysts and the partners discuss Microsoft’s current MS Project offerings, the current state of the PPM tool market, and the services and the approaches of each respective partner.
    • A third video briefing with Western Principles has not happened yet due to logistical reasons. We are hoping we can include a video chat with our peers at Western Principles in the near future.
    Screenshot form the Analyst-Partner Briefing Videos. In addition to the content covered in this step, you can use these videos for further information about the partners to inform your next steps.

    Download Info-Tech’s Analyst-Partner Briefing Videos (OnePlan & PMO Outsource Ltd.)

    2.2.1 Create a partner outreach plan

    1-3 hours

    Input: Contents of this step, List of additional MS Gold Partners

    Output: A completed partner outreach program

    Materials: MS Project & M365 Action Plan Template

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, Project Managers, CIO

    1. With an understanding of the partner ecosystem, compile a working group of PMO peers and stakeholders to produce a gameplan for engaging the MS Gold Partner ecosystem.
      • For additional partner options see Microsoft’s Partner Page.
    2. Using slide 20 in Info-Tech’s MS Project and M365 Action Plan Template, document the Partners you would want or have scheduled briefings with.
      • As you go through the briefings and research process, document the pros and cons and areas of specialized associated with each vendor for your particular work management implementation.

    Download the Microsoft Project & M365 Action Plan Template

    2.2.2 Document your PM and PPM requirements

    1-3 hours

    Input: Project Portfolio Management Maturity Assessment, Project Management Maturity Assessment

    Output: MS Project & M365 Action Plan Template

    Materials: Project Portfolio Management Maturity Assessment, Project Management Maturity Assessment, MS Project & M365 Action Plan Template

    Participants: Portfolio Manager (PMO Director), PMO Admin Team, Project Managers, CIO

    1. As you prepare to engage the Partner Community, you should have a sense of where your project management and project portfolio management gaps are to better communicate your tooling needs.
    2. Leverage tab 4 from both your Project Portfolio Management Assessment and Project Management Assessment from step 1.3 of this blueprint to help document and communicate your requirements. Those tabs prioritize your project and portfolio management needs by highest impact for the organization.
    3. You can use the outputs of the tab to inform your inputs on slide 23 of the MS Project & M365 Action Plan Template to present to organizational stakeholders and share with the Partners you are briefing with.

    Download the Microsoft Project & M365 Action Plan Template

    Determine the Future of Microsoft Project for Your Organization

    Phase 3: Finalize Your Implementation Approach

    Phase 1: Determine Your Tool NeedsPhase 2: Weigh Your Implementation Options

    Phase 3: Finalize Your Implementation Approach

    • Step 1.1: Survey the M365 work management landscape
    • Step 1.2: Perform a process maturity assessment to help inform your M365 starting point
    • Step 1.3: Consider the right MS Project licenses for your stakeholders
    • Step 2.1: Get familiar with extending Project for the web using Power Apps
    • Step 2.2: Assess the MS Gold Partner Community
    • Step 3.1: Prepare an action plan

    Phase Outcomes

    An action plan concerning what to do with MS Project and M365 for your PMO or project organization.

    Step 3.1

    Prepare an action plan

    Activities

    • Compile the current state results
    • Prepare an Implementation Roadmap
    • Complete your presentation deck

    This step will walk you through the following activities:

    • Assess the impact of organizational change for the project
    • Develop your vision for stakeholders
    • Compile the current state results and document the implementation approach
    • Create clarity through a RACI and proposed implementation timeline

    This step usually involves the following participants:

    • Portfolio Manager (PMO Director)
    • PMO Admin Team
    • Business Analysts
    • Project Managers

    Outcomes of Step

    • Microsoft Project and M365 Action Plan

    Assess the impact of organizational change

    Be prepared to answer: “What’s in it for me?”

    Before jumping into licensing and third-party negotiations, ensure you’ve clearly assessed the impact of change.

    Tailor the work effort involved in each step, as necessary:

    1. Assess the impact
      • Use the impact assessment questions to identify change impacts.
    2. Plan for change
      • Document the impact on each stakeholder group.
      • Anticipate their response.
      • Curate a compelling message for each stakeholder group.
      • Develop a communication plan.
    3. Act according to plan
      • Identify your executive sponsor.
      • Enable the sponsor to drive change communication.
      • Coach managers on how they can drive change at the individual level.

    Impact Assessment Questions

    • Will the change impact how our clients/customers receive, consume, or engage with our products/services?
    • Will there be a price increase?
    • Will there be a change to compensation and/or rewards?
    • Will the vision or mission of the job change?
    • Will the change span multiple locations/time zones?
    • Are multiple products/services impacted by this change?
    • Will staffing levels change?
    • Will this change increase the workload?
    • Will the tools of the job be substantially different?
    • Will a new or different set of skills be needed?
    • Will there be a change in reporting relationships?
    • Will the workflow and approvals be changed?
    • Will there be a substantial change to scheduling and logistics?

    Master Organizational Change Management Practices blueprint

    Develop your vision for stakeholders

    After careful analysis and planning, it’s time to synthesize your findings to those most impacted by the change.

    Executive Brief

    • Prepare a compelling message about the current situation.
    • Outline the considerations the working group took into account when developing the action plan.
    • Succinctly describe the recommendations proposed by the working group.

    Goals

    • Identify the goals for the project.
    • Explain the details for each goal to develop the organizational rationale for the project.
    • These goals are the building blocks for the change communication that the executive sponsor will use to build a coalition of sponsors.

    Future State Vision

    • Quantify the high-level costs and benefits of moving forward with this project.
    • Articulate the future- state maturity level for both the project and project portfolio management process.
    • Reiterate the organizational rationale and drivers for change.

    "In failed transformations, you often find plenty of plans, directives, and programs, but no vision…A useful rule of thumb: If you can’t communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest, you are not yet done…" (John P. Kotter, Leading Change)

    Get ready to compile the analysis completed throughout this blueprint in the subsequent activities. The outputs will come together in your Microsoft Project and M365 Action Plan.

    Use the Microsoft Project & M365 Action Plan Template to help communicate your vision

    Our boardroom-ready presentation and communication template can be customized using the outputs of this blueprint.

    • Getting stakeholders to understand why you are recommending specific work management changes and then communicating exactly what those changes are and what they will cost is key to the success of your work management implementation.
    • To that end, the slides ahead walk you through how to customize the Microsoft Project & M365 Action Plan Template.
    • Many of the current-state analysis activities you completed during phase 1 of this blueprint can be directly made use of within the template as can the decisions you made and requirements you documented during phase 2.
    • By the end of this step, you will have a boardroom-ready presentation that will help you communicate your future-state vision.
    Screenshot of Info-Tech's Microsoft Project and M365 Action Plan Template with a note to 'Update the presentation or distribution date and insert your name, role, and organization'.

    Download Info-Tech’s Microsoft Project & M365 Action Plan Template

    3.1.1 Compile current state results

    1-3 hours

    Input: Force Field Analysis Tool, Tool Audit Workbook, Project Management Maturity Assessment Tool, Project Portfolio Management Maturity Assessment Tool

    Output: Section 1: Executive Brief, Section 2: Context and Constraints

    Materials: Microsoft Project and M365 Action Plan Template

    Participants: PMO Director, PMO Admin Team, Business Analysts, Project Managers

    1. As a group, review the results of the tools introduced throughout this blueprint. Use this information along with organizational knowledge to document the business context and current state.
    2. Update the driving forces for change and risks and constraints slides using your outputs from the Force Field Analysis Tool.
    3. Update the current tool landscape, tool satisfaction, and tool audit results slides using your outputs from the Tool Audit Workbook.
    4. Update the gap analysis results slides using your outputs from the Project Management and Project Portfolio Management Maturity Assessment Tools.

    Screenshots of 'Business Context and Current State' screen from the 'Force Field Analysis Tool', the 'Tool Audit Results' screen from the 'Tool Audit Workbook', and the 'Project Portfolio Management Gap Analysis Results' screen from the 'PM and PPM Maturity Assessments Tool'.

    Download the Microsoft Project & M365 Action Plan Template

    3.2.1 Option A: Prepare a DIY roadmap

    1-3 hours; Note: This is only applicable if you have chosen the DIY route

    Input: List of key PPM decision points, List of who is accountable for PPM decisions, List of who has PPM decision-making authority

    Output: Section 3: DIY Implementation Approach

    Materials: Microsoft Project and M365 Action Plan Template

    Participants: PMO Director, PMO Admin Team, Business Analysts, Project Managers

    1. As a group, review the results of the Microsoft Project and M365 Licensing Tool. Use this information along with organizational knowledge and discussion with the working group to complete Section 3: DIY Implementation Approach.
    2. Copy and paste your results from tab 5 of the Microsoft Project and M365 Licensing Tool. Update the Implementation Approach slide to detail the rationale for selecting this option.
    3. Update the Action Plan to articulate the details for total and annual costs of the proposed licensing solution.
    4. Facilitate a discussion to determine roles and responsibilities for the implementation. Based on the size, risk, and complexity of the implementation, create a reasonable timeline.
    Screenshots from the 'Microsoft Project and M365 Action Plan Template' outlining the 'DIY Implementation Approach'.

    Download the Microsoft Project and M365 Action Plan Template

    3.2.1 Option b: Prepare a Partner roadmap

    1-3 hours; Note: This is only applicable if you have chosen the Partner route

    Input: Microsoft Project and M365 Licensing Tool, Information on Microsoft Partners

    Output: Section 4: Microsoft Partner Implementation Route

    Materials: Microsoft Project and M365 Action Plan Template

    Participants: PMO Director, PMO Admin Team, Business Analysts, Project Managers

    1. As a group, review the results of the Microsoft Project and M365 Licensing Tool. Use this information along with organizational knowledge and discussion with the working group to complete Section 4: Microsoft Partner Implementation Route.
    2. Copy and paste your results from tab 5 of the Microsoft Project and M365 Licensing Tool. Update the Implementation Approach slide to detail the rationale for selecting this option.
    3. Develop an outreach plan for the Microsoft Partners you are planning to survey. Set targets for briefing dates and assign an individual to own any back-and-forth communication. Document the pros and cons of each Partner and gauge interest in continuing to analyze the vendor as a possible solution.
    4. Facilitate a discussion to determine roles and responsibilities for the implementation. Based on the size, risk, and complexity of the implementation, create a reasonable timeline.

    Screenshots from the 'Microsoft Project and M365 Action Plan Template' outlining the 'Microsoft Partner Implementation Route'.

    Microsoft Project and M365 Action Plan Template

    3.1.2 Complete your presentation deck

    1-2 hours

    Input: Outputs from the exercises in this blueprint

    Output: Section 5: Future-State Vision and Goals

    Materials: Microsoft Project and M365 Action Plan Template

    Participants: PMO Director, PMO Admin Team, Business Analysts, Project Managers

    1. Put the finishing touches on your presentation deck by documenting your future- state vision and goals.
    2. Prepare to present to your stakeholders.
      • Understand your audience, their needs and priorities, and their degree of knowledge and experiences with technology. This informs what to include in your presentation and how to position the message and goal.
    3. Review the deck beginning to end and check for spelling, grammar, and vertical logic.
    4. Practice delivering the vision for the project through several practice sessions.

    Screenshots from the 'Microsoft Project and M365 Action Plan Template' regarding finishing touches.

    Microsoft Project and M365 Action Plan Template

    Pitch your vision to key stakeholders

    There are multiple audiences for your pitch, and each audience requires a different level of detail when addressed. Depending on the outcomes expected from each audience, a suitable approach must be chosen. The format and information presented will vary significantly from group to group.

    Audience

    Key Contents

    Outcome

    Business Executives

    • Section 1: Executive Brief
    • Section 2: Context and Constraints
    • Section 5: Future-State Vision and Goals
    • Identify executive sponsor

    IT Leadership

    • Sections 1-5 with a focus on Section 3 or 4 depending on implementation approach
    • Get buy-in on proposed project
    • Identify skills or resourcing constraints

    Business Managers

    • Section 1: Executive Brief
    • Section 2: Context and Constraints
    • Section 5: Future-State Vision and Goals
    • Get feedback on proposed plan
    • Identify any unassessed risks and organizational impacts

    Business Users

    • Section 1: Executive Brief
    • Support the organizational change management process

    Summary of Accomplishment

    Problem Solved

    Knowledge Gained
    • How you work: Work management and the various ways of working (personal and team task management, strategic project portfolio management, formal project management, and enterprise project and portfolio management).
    • Where you need to go: Project portfolio management and project management current- and target-state maturity levels.
    • What you need: Microsoft Project Plans and requisite M365 licensing.
    • The skills you need: Extending Project for the web.
    • Who you need to work with: Get to know the Microsoft Gold Partner community.
    Deliverables Completed
    • M365 Tool Guides
    • Tool Audit Workbook
    • Force Field Analysis Tool
    • Project Portfolio Management Maturity Assessment Tool
    • Project Management Maturity Assessment Tool
    • Microsoft Project & M365 Action Plan Template

    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 Barry Cousins.
    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.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    Perform a work management tool audit

    Gain insight into the tools that drive value or fail to drive value across your work management landscape with a view to streamline the organization’s tool ecosystem.

    Prepare an action plan for your tool needs

    Prepare the right work management tool recommendations for your IT teams and/or business units and develop a boardroom-ready presentation to communicate needs and next steps.

    Research Contributors and Experts

    Neeta Manghnani
    PMO Strategist
    PMO Outsource Ltd.

    Photo of Neeta Manghnani, PMO Strategist, PMO Outsource Ltd.
    • Innovative, performance-driven executive with significant experience managing Portfolios, Programs & Projects, and technical systems for international corporations with complex requirements. A hands-on, dynamic leader with over 20 years of experience guiding and motivating cross-functional teams. Highly creative and brings a blend of business acumen and expertise in multiple IT disciplines, to maximize the corporate benefit from capital investments.
    • Successfully deploys inventive solutions to automate processes and improve the functionality, scalability and security of critical business systems and applications. Leverages PMO/PPM management and leadership skills to meet the strategic goals and business initiatives.

    Robert Strickland
    Principal Consultant & Owner
    PMO Outsource Ltd.

    Photo of Robert Strickland, Principal Consultant and Owner, PMO Outsource Ltd.
    • Successful entrepreneur, leader, and technologist for over 15 years, is passionate about helping organizations leverage the value of SharePoint, O365, Project Online, Teams and the Power Platform. Expertise in implementing portals, workflows and collaboration experiences that create business value. Strategic manager with years of successful experience building businesses, developing custom solutions, delivering projects, and managing budgets. Strong transformational leader on large implementations with a technical pedigree.
    • A digital transformation leader helping clients move to the cloud, collaborate, automate their business processes and eliminate paper forms, spreadsheets and other manual practices.

    Related Info-Tech Research

    • Develop a Project Portfolio Management Strategy
      Time is money; spend it wisely.
    • Establish Realistic IT Resource Management Practices
      Holistically balance IT supply and demand to avoid overallocation.
    • Tailor Project Management Processes to Fit Your Projects
      Spend less time managing processes and more time delivering results

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    Advisicon. “Project Online vs Project for the Web.” YouTube, 13 Nov. 2013. Accessed 17 Sept. 2021.

    Branscombe, Mary. “Is Project Online ready to replace Microsoft Project?” TechRepublic, 23 Jan. 2020. Accessed 17 Sept. 2021.

    Chemistruck, Dan. “The Complete Office 365 and Microsoft 365 Licensing Comparison.” Infused Innovations, 4 April 2019. Accessed 17 Sept. 2021.

    “Compare Project management solutions and costs.” Microsoft. Accessed 17 Sept. 2021.

    Day to Day Dynamics 365. “Microsoft Project for the web - Model-driven app.” YouTube, 29 Oct. 2019. Accessed 17 Sept. 2021.

    “Deploying Project for the web.” Microsoft, 24 Aug. 2021. Accessed 17 Sept. 2021.

    “Differentiate your business by attaining Microsoft competencies.” Microsoft, 26 Jan. 2021. Accessed 17 Sept. 2021.

    “Extend & Integrate Microsoft Project.” Western Principles. Accessed 17 Sept. 2021.

    “Get Started with Project Power App.” Microsoft. Accessed 17 Sept. 2021.

    Hosking, Ben. “Why low code software development is eating the world.” DevGenius, May 2021. Accessed 17 Sept. 2021.

    “How in the World is MS Project Still a Leading PM Software?” CBT Nuggets, 12 Nov. 2018. Accessed 17 Sept. 2021.

    Integent. “Project for the Web - Create a Program Entity and a model-driven app then expose in Microsoft Teams.” YouTube, 25 Mar. 2020. Accessed 17 Sept. 2021.

    “Introducing the Project Accelerator.” Microsoft, 10 Mar. 2021. Accessed 17 Sept. 2021.

    “Join the Microsoft Partner Network.” Microsoft. Accessed 17 Sept. 2021.

    Kaneko, Judy. “How Productivity Tools Can Lead to a Loss of Productivity.” Bluescape, 2 Mar. 2018 Accessed 17 Sept. 2021.

    Kotter, John. Leading Change. Harvard Business School Press, 1996.

    Leis, Merily. “What is Work Management.” Scoro. Accessed 17 Sept. 2021.

    Liu, Shanhong. “Number of Office 365 company users worldwide as of June 2021, by leading country.” Statistica, 2021. Web.

    Manghnani, Neeta. “5 Benefits of PPM tools and PMO process automation.” PMO Outsource Ltd., 11 Apr. 2021. Accessed 17 Sept. 2021.

    “Microsoft 365 and Office 365 plan options.” Microsoft, 31 Aug. 2021. Accessed 17 Sept. 2021.

    “Microsoft 365 for enterprise.” Microsoft. Accessed 17 Sept. 2021

    “Microsoft Office 365 Usage Statistics.” Thexyz blog, 18 Sept. 2020. Accessed 17 Sept. 2021.

    “Microsoft Power Apps, Microsoft Power Automate and Microsoft Power Virtual Agents Licensing Guide.” Microsoft, June 2021. Web.

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    “Overcoming disruption in a digital world.” Asana. Accessed 17 Sept. 2021.

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    “Project for the Web Security Roles.” Microsoft, 1 July 2021. Accessed 17 Sept. 2021.

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    Prepare for the Upgrade to Windows 11

    • Buy Link or Shortcode: {j2store}166|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: End-User Computing Devices
    • Parent Category Link: /end-user-computing-devices
    • Windows 10 is going EOL in 2025.That is closer than you think.
    • Many of your endpoints are not eligible for the Windows 11 upgrade. You can’t afford to replace all your endpoints this year. How do you manage this Microsoft initiated catastrophe?
    • You want to stay close to the leading edge of technology and services, but how do you do that while keeping your spending in check and within budget?

    Our Advice

    Critical Insight

    Windows 11 is a step forward in security, which is one of the primary reasons for the release of the new operating system. Windows 11 comes with a list of hardware requirements that enable the use of tools and features that, when combined, will reduce malware infections.

    Impact and Result

    Windows 11 hardware requirements will result in devices that are not eligible for the upgrade. Companies will be left to spend money on replacement devices. Following the Info-Tech guidance will help clients properly budget for hardware replacements before Windows 10 is no longer supported by Microsoft. Eligible devices can be upgraded, but Info-Tech guidance can help clients properly plan the upgrade using the upgrade ring approach.

    Prepare for the Upgrade to Windows 11 Research & Tools

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

    1. Prepare for the Upgrade to Windows 11 Deck – A look into some of the pros and cons of Microsoft’s latest desktop operating system, along with guidance on moving forward with this inevitable upgrade.

    Discover the reason for the release of Windows 11, what you require to be eligible for the upgrade, what features were added or updated, and what features were removed. Our guidance will assist you with a planned and controlled rollout of the Windows 11 upgrade. We also provide guidance on how to approach a device refresh plan if some devices are not eligible for Windows 11. The upgrade is inevitable, but you have time, and you have options.

    • Prepare for the Upgrade to Windows 11 Storyboard

    2. What Are My Options If My Devices Cannot Upgrade to Windows 11? – Build a Windows 11 Device Replacement budget with our Hardware Asset Management Budgeting Tool.

    This tool will help you budget for a hardware asset refresh and to adjust the budget as necessary to accommodate any unexpected changes. The tool can easily be modified to assist in developing and justifying the budget for hardware assets for a Windows 11 project. Follow the instructions on each tab and feel free to play with the HAM budgeting tool to fit your needs.

    • HAM Budgeting Tool
    [infographic]

    Further reading

    Prepare for the Upgrade to Windows 11

    The upgrade is inevitable, but you have time, and you have options.

    Analyst Perspective

    Upgrading to Windows 11 is easy, and while it should be properly investigated and planned, it should absolutely be an activity you undertake.

    “You hear that Mr. Anderson? That is the sound of inevitability.” ("The Matrix Quotes" )

    The fictitious Agent Smith uttered those words to Keanu Reeves’ character, Neo, in The Matrix in 1999, and while Agent Smith was using them in a very sinister and figurative context, the words could just as easily be applied to the concept of upgrading to the Windows 11 operating system from Microsoft in 2022.

    There have been two common, recurring themes in the media since late 2019. One is the global pandemic and the other is cyber-related crime. Microsoft is not in a position to make an impact on a novel coronavirus, but it does have the global market reach to influence end-user technology and it appears that it has done just that. Windows 11 is a step forward in endpoint security and functionality. It also solidifies the foundation for future innovations in end-user operating systems and how they are delivered. Windows-as-a-Service (WAAS) is the way forward for Microsoft. Windows 10 is living on borrowed time, with a defined end of support date of October 14, 2025. Upgrading to Windows 11 is easy, and while it should be properly investigated and planned, it should absolutely be an activity you undertake.

    It is inevitable!

    P.J. Ryan

    Research Director, Infrastructure & Operations

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Windows 10 is going EOL in 2025. That is closer than you think.
    • Many of your endpoints are not eligible for the Windows 11 upgrade. You can’t afford to replace all your endpoints this year. How do you manage this Microsoft-initiated catastrophe?
    • You want to stay close to the leading edge of technology and services, but how do you do that while keeping your spending in check and within budget?

    Common Obstacles

    • The difference between Windows 10 and Windows 11 is not clear. Windows 11 looks like Windows 10 with some minor changes, mostly cosmetic. Many online users don’t see the need. Why upgrade? What are the benefits?
    • The cost of upgrading devices just to be eligible for Windows 11 is high.
    • Your end users don’t like change. This is not going to go over well!

    Info-Tech's Approach

    • Spend wisely. Space out your endpoint replacements and upgrades over several years. You do not have to upgrade everything right away.
    • Be patient. Windows 11 contained some bugs when it was initially released. Microsoft fixed most of the issues through monthly quality updates, but you should ensure that you are comfortable with the current level of functionality before you upgrade.
    • Use the upgrade ring approach. Test your applications with a small group first, and then stage the rollout to increasingly larger groups over time.

    Info-Tech Insight

    There is a lot of talk about Windows 11, but this is only an operating system upgrade, and it is not a major one. Understand what is new, what is added, and what is missing. Check your devices to determine how many are eligible and ineligible. Many organizations will have to spend capital on endpoint upgrades. Solid asset management practices will help.

    Insight summary

    Windows 11 is a step forward in security, which is one of the primary reasons for the release of the new operating system.

    Windows 11 comes with a list of hardware requirements that enable the use of tools and features that, when combined, will reduce malware infections.

    The hardware requirements for Windows 11 enable security features such as password-less logon, disk encryption, increased startup protection with secure boot, and virtualization-based security.

    Many organizations will have to spend capital on endpoint upgrades.

    Microsoft now insists that modern hardware is required for Windows 11 for not only security but also for improved stability. That same hardware requirement will mean that many devices that are only three or four years old (as well as older ones) may not be eligible for Windows 11.

    Windows 11 is a virtualization challenge for some providers.

    The hardware requirements for physical devices are also required for virtual devices. The TPM module appears to be the biggest challenge. Oracle VirtualBox and Citrix Hypervisor as well as AWS and Google are unable to support Windows 11 virtual devices as of the time of writing.

    Windows 10 will be supported by Microsoft until October 2025.

    That will remove some of the pressure felt due to the ineligibility of many devices and the need to refresh them. Take your time and plan it out, keeping within budget constraints. Use the upgrade ring approach for systems that are eligible for the Windows 11 upgrade.

    New look and feel, and a center screen taskbar.

    Corners are rounded, some controls look a little different, but overall Windows 11 is not a dramatic shift from Windows 10. It is easier to navigate and find features. Oh, and yes, the taskbar (and start button) is shifted to the center of the screen, but you can move them back to the left if desired.

    The education industry gets extra attention with the release of Windows 11.

    Windows 11 comes with multiple subscription-based education offerings, but it also now includes a new lightweight SE edition that is intended for the K-8 age group. Microsoft also released a Windows 11 Education SE specific laptop, at a very attractive price point. Other manufacturers also offer Windows 11 SE focused devices.

    Why Windows 11?

    Windows 10 was supposed to be the final desktop OS from Microsoft, wasn’t it?

    Maybe. It depends who you ask.

    Jerry Nixon, a Microsoft developer evangelist, gained notoriety when he uttered these words while at a Microsoft presentation as part of Microsoft Ignite in 2015: “Right now we’re releasing Windows 10, and because Windows 10 is the last version of Windows, we’re all still working on Windows 10,” (Hachman). Microsoft never officially made that statement. Interestingly enough, it never denied the comments made by Jerry Nixon either.

    Perhaps Microsoft released a new operating system as a financial grab, a way to make significant revenue?

    Nope.

    Windows 11 is a free upgrade or is included with any new computer purchase.

    Market share challenges?

    Doubtful.

    It’s true that Microsoft's market share of desktop operating systems is dropping while Apple OS X and Google Chrome OS are rising.

    In fact, Microsoft has relinquished over 13% of the market share since 2012 and Apple has almost doubled its market share. BUT:

    Microsoft is still holding 75.12% of the market while Apple is in the number 2 spot with 14.93% (gs.statcounter.com).

    The market share is worth noting for Microsoft but it hardly warrants a new operating system.

    New look and feel?

    Unlikely

    New start button and taskbar orientation, new search window, rounded corners, new visual look on some controls like the volume bar, new startup sound, new Windows logo, – all minor changes. Updates could achieve the same result.

    Security?

    Likely the main reason.

    Windows 11 comes with a list of hardware requirements that enable the use of tools and features that, when combined, will reduce malware infections.

    The hardware requirements for Windows 11 enable security features such as password-less logon, disk encryption, increased startup protection with secure boot, and virtualization-based security.

    The features are available on all Windows 11 physical devices, due to the common hardware requirements.

    Windows 11 hardware-based security

    These hardware options and features were available in Windows 10 but not enforced. With Windows 11, they are no longer optional. Below is a description and explanation of the main features.

    Feature What it is How it works
    TPM 2.0 (Trusted Platform Module) Chip TPM is a chip on the motherboard of the computer. It is used to store encryption keys, certificates, and passwords. TPM does this securely with tamper-proof prevention. It can also generate encryption keys and it includes its own unique encryption key that cannot be altered (helpdeskgeek.com). You do not need to enter your password once you setup Windows Hello, so the password is no longer easy to capture and steal. It is set up on a device per device basis, meaning if you go to a different device to sign in, your Windows Hello authentication will not follow you and you must set up your Hello pin or facial recognition again on that particular device. TPM (Trusted Platform Module) can store the credentials used by Windows Hello and encrypt them on the module.
    Windows Hello Windows Hello is an alternative to using a password for authentication. Users can use a pin, a fingerprint, or facial recognition to authenticate.
    Device Encryption Device encryption is only on when your device is off. It scrambles the data on your disk to make it unreadable unless you have the key to unscramble it. If your endpoint is stolen, the contents of the hard drive will remain encrypted and cannot be accessed by anyone unless they can properly authenticate on the device and allow the system to unscramble the encrypted data.
    UEFI Secure Boot Capable UEFI is an acronym for Unified Extensible Firmware Interface. It is an interface between the operating system and the computer firmware. Secure Boot, as part of the firmware interface, ensures that only unchangeable and approved software and drivers are loaded at startup and not any malware that may have infiltrated the system (Lumunge). UEFI, with Secure Boot, references a database containing keys and signatures of drivers and runtime code that is approved as well as forbidden. It will not let the system boot up unless the signature of the driver or run-time code that is trying to execute is approved. This UEFI Secure boot recognition process continues until control is handed over to the operating system.
    Virtualization Based Security (VBS) and Hypervisor-Protected Code Integrity (HVCI) VBS is security based on virtualization capabilities. It uses the virtualization features of the Windows operating system, specifically the Hyper-V hypervisor, to create and isolate a small chunk of memory that is isolated from the operating system. HVCI checks the integrity of code for violations. The Code Integrity check happens in the isolated virtual area of memory protected by the hypervisor, hence the acronym HVCI (Hypervisor Protected Code Integrity) (Murtaza). In the secure, isolated region of memory created by VBS with the hypervisor, Windows will run checks on the integrity of the code that runs various processes. The isolation protects the stored item from tampering by malware and similar threats. If they run incident free, they are released to the operating system and can run in the standard memory space. If issues are detected, the code will not be released, nor will it run in the standard memory space of the operating system, and damage or compromise will be prevented.

    How do all the hardware-based security features work?

    This scenario explains how a standard boot up and login should happen.

    You turn on your computer. Secure Boot authorizes the processes and UEFI hands over control to the operating system. Windows Hello works with TPM and uses a pin to authenticate the user and the operating systems gives you access to the Windows environment.

    Now imagine the same process with various compromised scenarios.

    You turn on your computer. Secure Boot does not recognize the signature presented to it by the second process in the boot sequence. You will be presented with a “Secure Boot Violation” message and an option to reboot. Your computer remains protected.

    You boot up and get past the secure boot process and UEFI passes control over to the Windows 11 operating system. Windows Hello asks for your pin, but you cannot remember the pin and incorrectly enter it three times before admitting temporary defeat. Windows Hello did not find a matching pin on the TPM and will not let you proceed. You cannot log in but in the eyes of the operating system, it has prevented an unauthorized login attempt.

    You power up your computer, log in without issue, and go about your morning routine of checking email, etc. You are not aware that malware has infiltrated your system and modified a page in system memory to run code and access the operating system kernel. VBS and HVCI check the integrity of that code and detect that it is malicious. The code remains isolated and prevented from running, protecting your system.

    TPM, Hello, UEFI with Secure Boot, VBS and HVCI all work together like a well-oiled machine.

    “Microsoft's rationale for Windows 11's strict official support requirements – including Secure Boot, a TPM 2.0 module, and virtualization support – has always been centered on security rather than raw performance.” – Andrew Cunningham, arstechnica.com

    “Windows 11 raises the bar for security by requiring hardware that can enable protections like Windows Hello, Device Encryption, virtualization-based security (VBS), hypervisor-protected code integrity (HVCI), and Secure Boot. These features in combination have been shown to reduce malware by 60% on tested devices.” – Steven J. Vaughan-Nichols, Computerworld

    Can any device upgrade to Windows 11?

    In addition to the security-related hardware requirements listed previously, which may exclude some devices from Windows 11 eligibility, Windows 11 also has a minimum requirement for other hardware components.

    Windows 7 and Windows 10 were publicized as being backward compatible and almost any hardware would be able to run those operating systems. That changed with Windows 11. Microsoft now insists that modern hardware is required for Windows 11 for not only security but also improved stability.

    Software Requirement

    You must be running Windows 10 version 2004 or greater to be eligible for a Windows 11 upgrade (“Windows 11 Requirements”).

    Complete hardware requirements for Windows 11

    • 1 GHz (or faster) compatible 64-bit processor with two or more cores
    • 4 GB RAM
    • 64 GB or more of storage space
    • Compatible with DirectX 12 or later with WDDM 2.0 driver
      • DirectX connects the hardware in your computer with Windows. It allows software to display graphics using the video card or play audio, as long as that software is DirectX compatible. Windows 11 requires version 12 (“What are DirectX 12 compatible graphics”).
      • WDDM is an acronym for Windows Display Driver Model. WDDM is the architecture for the graphics driver for Windows (“Windows Display Driver Model”).
      • Version 2.0 of WDDM is required for Windows 11.
    • 720p display greater than 9" diagonally with 8 bits per color channel
    • UEFI Secure Boot capable
    • TPM 2.0 chip
    • (“Windows 11 Requirements”)

    Windows 11 may challenge your virtual environment

    When Windows 11 was initially released, some IT administrators experienced issues when trying to install or upgrade to Windows 11 in the virtual world.

    The Challenge

    The issues appeared to be centered around the Windows 11 hardware requirements, which must be detected by the Windows 11 pre-install check before the operating system will install.

    The TPM 2.0 chip requirement was indeed a challenge and not offered as a configuration option with Citrix Hypervisor, the free VMware Workstation Player or Oracle VM VirtualBox when Windows 11 was released in October 2021, although it is on the roadmap for Oracle and Citrix Hypervisor. VMware provides alternative products to the free Workstation Player that do support a virtual TPM. Oracle and Citrix reported that the feature would be available in the future and Windows 11 would work on their platforms.

    Short-Term Solutions

    VMware and Microsoft users can add a vTPM hardware type when configuring a virtual Windows 11 machine. Microsoft Azure does offer Windows 11 as an option as a virtual desktop. Citrix Desktop-As-A-Service (DAAS) will connect to Azure, AWS, or Google Cloud and is only limited by the features of the hosting cloud service provider.

    Additional Insight

    According to Microsoft, any VM running Windows 11 must meet the following requirements (“Virtual Machine Support”):

    • It must be a generation 2 VM, and upgrading a generation 1 VM to Windows 11 (in-place) is not possible
    • 64 GB of storage or greater
    • Secure Boot capable with the virtual TPM enabled
    • 4 GB of memory or greater
    • 2 or more virtual processors
    • The CPU of the physical computer that is hosting the VM must meet the Windows 11 (“Windows Processor Requirements”)

    What’s new or updated in Windows 11?

    The following two slides highlight some of the new and updated features in Windows 11.

    Security

    The most important change with Windows 11 is what you cannot see – the security. Windows 11 adds requirements and controls to make the user and device more secure, as described in previous slides.

    Taskbar

    The most prominent change in relation to the look and feel of Windows 11 is the shifting of the taskbar (and Start button) to the center of the screen. Some users may find this more convenient but if you do not and prefer the taskbar and start button back on the left of your screen, you can change it in taskbar settings.

    Updated Apps

    Paint, Photos, Notepad, Media Player, Mail, and other standard Windows apps have been updated with a new look and in some cases minor enhancements.

    User Interface

    The first change users will notice after logging in to Windows 11 is the new user interface – the look and feel. You may not notice the additional colors added to the Windows palette, but you may have thought that the startup sound was different, and the logo also looks different. You would be correct. Other look-and-feel items that changed include the rounded corners on windows, slightly different icons, new wallpapers, and controls for volume and brightness are now a slide bar. File explorer and the settings app also have a new look.

    Microsoft Teams

    Microsoft Teams is now installed on the taskbar by default. Note that this is for a personal Microsoft account only. Teams for Work or School will have to be installed separately if you are using a work or school account.

    What’s new or updated in Windows 11?

    Snap Layouts

    Snap layouts have been enhanced and snap group functionality has been added. This will allow you to quickly snap one window to the side of the screen and open other Windows in the other side. This feature can be accessed by dragging the window you wish to snap to the left or right edge of the screen. The window should then automatically resize to occupy that half of the screen and allow you to select other Windows that are already open to occupy the remaining space on the screen. You can also hover your mouse over the maximize button in the upper right-hand corner of the window. A small screen with multiple snap layouts will appear for your selection. Multiple snapped Windows can be saved as a “Snap Group” that will open together if one of the group windows are snapped in the future.

    Widgets

    Widgets are expanding. Microsoft started the re-introduction of widgets in Windows 10, specifically focusing on the weather. Widgets now include other services such as news, sports, stock prices, and others.

    Android Apps

    Android apps can now run in Windows 11. You will have to use the Amazon store to access and install Android apps, but if it is available in the Amazon store, you can install it on Windows 11.

    Docking

    Docking has improved with Windows 11. Windows knows when you are docked and will minimize apps when you undock so they are not lost. They will appear automatically when you dock again.

    This is not intended to be an inclusive list but does cover some of the more prominent features.

    What’s missing from Windows 11?

    The following features are no longer found in Windows 11:

    • Backward compatibility
      • The introduction of the hardware requirements for Windows 11 removed the backward compatibility (from a hardware perspective) that made the transition from previous versions of Windows to their successor less of a hardware concern. If a computer could run Windows 7, then it could also run Windows 10. That does not automatically mean it can also run Windows 11.
    • Internet Explorer
      • Internet Explorer is no longer installed by default in Windows 11. Microsoft Edge is now the default browser for Windows. Other browsers can also be installed if preferred.
    • Tablet mode
      • Windows 11 does not have a "tablet" mode, but the operating system will maximize the active window and add more space between icons to make selecting them easier if the 2-in-1 hardware detects that you wish to use the device as a tablet (keyboard detached or device opened up beyond 180 degrees, etc.).
    • Semi-annual updates
      • It may take six months or more to realize that semi-annual feature updates are missing. Microsoft moved to an annual feature update schema but continued with monthly quality updates with Windows 11.
    • Specific apps
      • Several applications have been removed (but can be manually added from the Microsoft Store by the user). They include:
        • OneNote for Windows 10
        • 3D Viewer
        • Paint 3D
        • Skype
    • Cortana (by default)
      • Cortana is missing from Windows 11. It is installed but not enabled by default. Users can turn it on if desired.

    Microsoft included a complete list of features that have been removed or deprecated with Windows 11, which can be found here Windows 11 Specs and System Requirements.

    Windows 11 editions

    • Windows 11 is offered in several editions:
      • Windows 11 Home
      • Windows 11 Pro
      • Windows 11 Pro for Workstations
      • Windows 11 Enterprise Windows 11 for Education
      • Windows 11 SE for Education
    • Windows 11 hardware requirements and security features are common throughout all editions.
    • The new look and feel along with all the features mentioned previously are common to all editions as well.
    • Windows Home
      • Standard offering for home users
    • Pro versus Pro for Workstations
      • Windows 11 Pro and Pro for Workstations are both well suited for the business environment with available features such as support for Active Directory or Azure Active Directory, Windows Autopilot, OneDrive for Business, etc.
      • Windows Pro for Workstations is designed for increased demands on the hardware with the higher memory limits (2 TB vs. 6 TB) and processor count (2 CPU vs. 4 CPU).
      • Windows Pro for Workstations also features Resilient File System, Persistent Memory, and SMB Direct. Neither of these features are available in the Windows 11 Pro edition.
      • Windows 11 Pro and Pro for Workstations are both very business focused, although Pro may also be a common choice for non-business users (Home and Education).
    • Enterprise Offerings
      • Enterprise licenses are subscription based and are part of the Microsoft 365 suite of offerings.
      • Windows 11 Enterprise is Windows 11 Pro with some additional addons and functionality in areas such as device management, collaboration, and security services.
      • The level of the Microsoft 365 Enterprise subscription (E3 or E5) would dictate the additional features and functionality, such as the complete Microsoft Defender for Endpoint suite or the Microsoft phone system and Audio Conferencing, which are only available with the E5 subscription.

    Windows 11 Education Editions

    With the release of a laptop targeted specifically at the education market, Microsoft must be taking notice of the Google Chrome educational market penetration, especially with headlines like these.

    “40 Million Chromebooks in Use in Education” (Thurrott)

    “The Unprecedented Growth of the Chromebook Education Market Share” (Carklin)

    “Chromebooks Gain Market Share as Education Goes Online” (Hruska)

    “Chromebooks Gain Share of Education Market Despite Shortages” (Mandaro)

    “Chromebook sales skyrocketed in Q3 2020 with online education fueling demand” (Duke)

    • Education licenses are subscription based and are part of the Microsoft 365 suite of offerings. Educational pricing is one benefit of the Microsoft 365 Education model.
    • Windows 11 Education is Windows 11 Pro with some additional addons and functionality similar to the Enterprise offerings for Windows 11 in areas such as device management, collaboration, and security services. Windows 11 Education also adds some education specific settings such as Classroom Tools, which allow institutions to add new students and their devices to their own environment with fewer issues, and includes OneNote Class Notebook, Set Up School PCs app, and Take a Test app.
    • The level of the Microsoft 365 Education subscription (A3 or A5) would dictate the additional features and functionality, such as the complete Microsoft Defender for Endpoint suite or the Microsoft phone system and Audio Conferencing, which are only available with the A5 subscription.
    • Windows 11 SE for Education:
      • A cloud-first edition of Windows 11 specifically designed for the K-8 education market.
      • Windows 11 SE is a light version of Windows 11 that is designed to run on entry-level devices with better performance and security on that hardware.
      • Windows 11 SE requires Intune for Education and only IT admins can install applications.
    • Microsoft and others have come out with Windows SE specific devices at a low price point.
      • The Microsoft Surface Laptop SE comes pre-loaded with Windows 11 SE and can be purchased for US$249.00.
      • Dell, Asus, Acer, Lenovo, and others also offer Windows 11 SE specific devices (“Devices for Education”).

    Initial Reactions

    Below you can find some actual initial reactions to Windows 11.

    Initial reactions are mixed, as is to be expected with any new release of an operating system. The look and feel is new, but it is not a huge departure from the Windows 10 look and feel. Some new features are well received such as the snap feature.

    The shift of the taskbar (and start button) is the most popular topic of discussion online when it comes to Windows 11 reactions. Some love it and some do not. The best part about the shift of the taskbar is that you can adjust it in settings and move it back to its original location.

    The best thing about reactions is that they garner attention, and thanks in part to all the online reactions and comments, Microsoft is continually improving Windows 11 through quality updates and annual feature releases.

    “My 91-year-old Mum has found it easy!” Binns, Paul ITRG

    “It mostly looks quite nice and runs well.” Jmbpiano, Reddit user

    “It makes me feel more like a Mac user.” Chang, Ben Info-Tech

    “At its core, Windows 11 appears to be just Windows 10 with a fresh coat of paint splashed all over it.” Rouse, Rick RicksDailyTips.com

    “Love that I can snap between different page orientations.” Roberts, Jeremy Info-Tech

    “I finally feel like Microsoft is back on track again.” Jawed, Usama Neowin

    “A few of the things that seemed like issues at first have either turned out not to be or have been fixed with patches.” Jmbpiano, Reddit user

    “The new interface is genuinely intuitive, well-designed, and colorful.” House, Brett AnandTech

    “No issues. Have it out on about 50 stations.” Sandrews1313, Reddit User

    “The most striking change is to the Start menu.” Grabham, Dan pocket-lint.com

    How do I upgrade to Windows 11?

    The process is very similar to applying updates in Windows 10.

    • Windows 11 is offered as an upgrade through the standard Windows 10 update procedure. Windows Update will notify you when the Windows 11 upgrade is ready (assuming your device is eligible for Windows 11).
      • Allow the update (upgrade in this case) to proceed, reboot, and your endpoint will come back to life with Windows 11 installed and ready for you.
    • A fresh install can be delivered by downloading the required Windows 11 installation media from the Microsoft Software Download site for Windows 11.
    • Business users can control the timing and schedule of the Windows 11 rollout to corporate endpoints using Microsoft solutions such as WSUS, Configuration Manager, Intune and Endpoint Manager, or by using other endpoint management solutions.
    • WSUS and Configuration Manager will have to sync the product category for Windows 11 to manage the deployment.
    • Windows Update for Business policies will have to use the target version capability rather than using the feature update referrals alone.
    • Organizations using Intune and a Microsoft 365 E3 license will be able to use the Feature Update Deployments page to select Windows 11.
    • Other modern endpoint management solutions may also allow for a controlled deployment.

    Info-Tech Insight

    The upgrade itself may be a simple process but be prepared for the end-user reactions that will follow. Some will love it but others will despise it. It is not an optional upgrade in the long run, so everyone will have to learn to accept it.

    When can I upgrade to Windows 11?

    You can upgrade right now BUT there is no need to rush. Windows 11 was released in October 2021 but that doesn’t mean you have to upgrade everyone right away. Plan this out.

    • Build deployment rings into your Windows 11 upgrade approach: This approach, also referred to as Canary Releases or deployment rings, allows you to ensure that IT can support users if there's a major problem with the upgrade. Instead of disrupting all end users, you are only disrupting a portion of end users.
      • Deploy the initial update to your test environment.
      • After testing is successful or changes have been made, deploy Windows 11 to your pilot group of users.
      • After the pilot group gives you the thumbs up, deploy to the rest of production in phases. Phases are sometimes by office/location, sometimes by department, sometimes by persona (i.e. defer people that don't handle updates well), and usually by a combination of these factors.
      • Increase the size of each ring as you progress.
    • Always back up your data before any upgrade.

    Deployment Ring Example

    Pilot Ring - Individuals from all departments - 10 users

    Ring #1 - Dev, Finance - 20 Users

    Ring #2 - Research - 100 Users

    Ring #3 - Sales, IT, Marketing - 500 Users

    Upgrade your eligible devices and users to Windows 11

    Build Windows 11 Deployment Rings

    Instructions:

    1. Identify who will be in the pilot group. Use individuals instead of user groups.
    2. Identify how many standard rings you need. This number will be based on the total number of employees per office.
    3. Map groups to rings. Define which user groups will be in each ring.
    4. Allow some time to elapse between upgrades. Allow the first group to work with Windows 11 and identify any potential issues that may arise before upgrading the next group.
    5. Track and communicate. Record all information into a spreadsheet like the one on the right. This will aid in communication and tracking.
    Ring Department or Group Total Users Delay Time Before Next Group
    Pilot Ring Individuals from all departments 10 Three weeks
    Ring 1 Dev Finance 20 Two weeks
    Ring 2 Research 100 One week
    Ring 3 Sales, IT Marketing 500 N/A

    What are my options if my devices cannot upgrade to Windows 11?

    Don’t rush out to replace all the ineligible endpoint devices. You have some time to plan this out. Windows 10 will be available and supported by Microsoft until October 2025.

    Use asset management strategies and budget techniques in your Windows 11 upgrade approach:

    • Start with current inventory and determine which devices will not be eligible for upgrade to Windows 11.
    • Prioritize the devices for replacement, taking device age, the role of the user the device supports, and delivery times for remote users into consideration.
    • Take this opportunity to review overall device offerings and end-user compute strategy. This will help decide which devices to offer going forward while improving end-user satisfaction.
    • Determine the cost for replacement devices:
      • Compare vendor offerings using an RFP process.
    • Use the hardware asset management planning spreadsheet on the next slide to budget for the replacements over the coming months leading up to October 2025.

    Leverage Info-Tech research to improve your end-user computing strategy and hardware asset management processes:

    New to End User Computing Strategies? Start with Modernize and Transform Your End-User Computing Strategy.

    New to IT asset management? Use Info-Tech’s Implement Hardware Asset Management blueprint.

    Use Info-Tech’s HAM Budgeting Tool to plan your hardware asset budget

    Build a Windows 11 Device Replacement Budget

    The link below will open up a hardware asset management (HAM) budgeting tool. This tool can easily be modified to assist in developing and justifying the budget for hardware assets for the Windows 11 project. The tool will allow you to budget for hardware asset refresh and to adjust the budget as needed to accommodate any changes. Follow the instructions on each tab to complete the tool.

    A sample of a possible Windows 11 budgeting spreadsheet is shown on the right, but feel free to play with the HAM budgeting tool to fit your needs.

    HAM Budgeting Tool

    Windows 11 Replacement Schedule
    2022 2023 2024 2025
    Department Total to replace Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Left to allocate
    Finance 120 20 20 20 10 10 20 20 0
    HR 28 15 13 0
    IT 30 15 15 0
    Research 58 8 15 5 20 5 5 0
    Planning 80 10 15 15 10 15 15 0
    Other 160 5 30 5 15 15 30 30 30 0
    Totals 476 35 38 35 35 35 35 38 35 50 35 35 35 35 0

    Related Info-Tech Research

    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?

    Implement Hardware Asset Management

    This project will help you analyze the current state of your HAM program, define assets that will need to be managed, and build and involve the ITAM team from the beginning to help embed the change. It will also help you define standard policies, processes, and procedures for each stage of the hardware asset lifecycle, from procurement through to disposal.

    Bibliography

    aczechowski, et al. “Windows 11 Requirements.” Microsoft, 3 June 2022. Accessed 13 June 2022.

    Binns, Paul. Personal interview. 07 June 2022.

    Butler, Sydney. “What Is Trusted Platform Module (TPM) and How Does It Work?” Help Desk Geek, 5 August 2021. Accessed 18 May 2022.

    Carklin, Nicolette. “The Unprecedented Growth of the Chromebook Education Market Share.” Parallels International GmbH, 26 October 2021. Accessed 19 May 2022.

    Chang, Ben. Personal interview. 26 May 2022.

    Cunningham, Andrew. “Why Windows 11 has such strict hardware requirements, according to Microsoft.” Ars Technica, 27 August 2021. Accessed 19 May 2022.

    Dealnd-Han, et al. “Windows Processor Requirements.” Microsoft, 9 May 2022. Accessed 18 May 2022.

    “Desktop Operating Systems Market Share Worldwide.” Statcounter Globalstats, June 2021–June 2022. Accessed 17 May 2022.

    “Devices for education.” Microsoft, 2022. Accessed 13 June 2022.

    Duke, Kent. “Chromebook sales skyrocketed in Q3 2020 with online education fueling demand.” Android Police, 16 November 2020. Accessed 18 May 2022.

    Grabham, Dan. “Windows 11 first impressions: Our initial thoughts on using Microsoft's new OS.” Pocket-Lint, 24 June 2021. Accessed 3 June 2022.

    Hachman, Mark. “Why is there a Windows 11 if Windows 10 is the last Windows?” PCWorld, 18 June 2021. Accessed 17 May 2022.

    Howse, Brett. “What to Expect with Windows 11: A Day One Hands-On.” Anandtech, 16 November 2020. Accessed 3 June 2022.

    Hruska, Joel. “Chromebooks Gain Market Share as Education Goes Online.” Extremetech, 26 October 2020. Accessed 19 May 2022.

    Jawed, Usama. “I am finally excited about Windows 11 again.” Neowin, 26 February 2022. Accessed 3 June 2022.

    Jmbpiano. “Windows 11 - What are our initial thoughts and feelings?” Reddit, 22 November 2021. Accessed 3 June 2022.

    Lumunge, Erick. “UEFI and Legacy boot.” OpenGenus, n.d. Accessed 18 May 2022.

    Bibliography

    Mandaro, Laura. “Chromebooks Gain Share of Education Market Despite Shortages.” The Information, 9 September 2020. Accessed 19 May 2022.

    Murtaza, Fawad. “What Is Virtualization Based Security in Windows?” Valnet Inc, 24 October 2021. Accessed 17 May 2022.

    Roberts, Jeremy. Personal interview. 27 May 2022.

    Rouse, Rick. “My initial thoughts about Windows 11 (likes and dislikes).” RicksDailyTips.com, 5 September 2021. Accessed 3 June 2022.

    Sandrews1313. “Windows 11 - What are our initial thoughts and feelings?” Reddit, 22 November 2021. Accessed 3 June 2022.

    “The Matrix Quotes." Quotes.net, n.d. Accessed 18 May 2022.

    Thurrott, Paul.” Google: 40 Million Chromebooks in Use in Education.” Thurrott, 21 January 2020. Accessed 18 May 2022.

    Vaughan-Nichols, Steven J. “The real reason for Windows 11.” Computerworld, 6 July 2021, Accessed 19 May 2022.

    “Virtual Machine Support.” Microsoft,3 June 2022. Accessed 13 June 2022.

    “What are DirectX 12 compatible graphics and WDDM 2.x.” Wisecleaner, 20 August 2021. Accessed 19 May 2022.

    “Windows 11 Specs and System Requirements.” Microsoft, 2022. Accessed 13 June 2022.

    “Windows Display Driver Model.” MiniTool, n.d. Accessed 13 June 2022.

    2021 Q3 Research Highlights

    • member rating overall impact (scale of 10): N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: The Briefs
    • Parent Category Link: /the-briefs
    Our research team is a prolific bunch! Every quarter we produce lots of research to help you get the most value out of your organization. This PDF contains a selection of our most compelling research from the third quarter of 2021.

    Enter Into Mobile Development Without Confusion and Frustration

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    • Parent Category Name: Mobile Development
    • Parent Category Link: /mobile-development
    • IT managers don’t know where to start when initiating a mobile program.
    • IT has tried mobile development in the past but didn't achieve success.
    • IT must initiate a mobile program quickly based on business priorities and needs a roadmap based on best practices.

    Our Advice

    Critical Insight

    • Form factors and mobile devices won't drive success – business alignment and user experience will. Don't get caught up with the latest features in mobile devices.
    • Software emulation testing is not true testing. Get on the device and run your tests.
    • Cross form-factor testing cannot be optimized to run in parallel. Therefore, anticipate longer testing cycles for cross form-factor testing.

    Impact and Result

    • Prepare your development, testing, and deployment teams for mobile development.
    • Get a realistic assessment of ROI for the launch of a mobile program.

    Enter Into Mobile Development Without Confusion and Frustration Research & Tools

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

    1. Make the Case for a Mobile Program

    Understand the current mobile ecosystem. Use this toolkit to help you initiate a mobile development program.

    • Storyboard: Enter Into Mobile Development Without Confusion and Frustration

    2. Assess Your Dev Process for Readiness

    Review and evaluate your current application development process.

    3. Prepare to Execute Your Mobile Program

    Prioritize your mobile program based on your organization’s prioritization profile.

    • Mobile Program Tool

    4. Communicate with Stakeholders

    Summarize the execution of the mobile program.

    • Project Status Communication Worksheet
    [infographic]

    Workshop: Enter Into Mobile Development Without Confusion and Frustration

    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 your Future Mobile Development State

    The Purpose

    Understand the alignment of stakeholder objectives and priorities to mobile dev IT drivers.

    Assess readiness of your organization for mobile dev.

    Understand how to build your ideal mobile dev process.

    Key Benefits Achieved

    Identify and address the gaps in your existing app dev process.

    Build your future mobile dev state.

    Activities

    1.1 Getting started

    1.2 Assess your current state

    1.3 Establish your future state

    Outputs

    List of key stakeholders

    Stakeholder and IT driver mapping and assessment of current app dev process

    List of practices to accommodate mobile dev

    2 Prepare and Execute your Mobile Program

    The Purpose

    Assess the impact of mobile dev on your existing app dev process.

    Prioritize your mobile program.

    Understand the dev practice metrics to gauge success.

    Key Benefits Achieved

    Properly prepare for the execution of your mobile program.

    Calculate the ROI of your mobile program.

    Prioritize your mobile program with dependencies in mind.

    Build a communication plan with stakeholders.

    Activities

    2.1 Conduct an impact analysis

    2.2 Prepare to execute

    2.3 Communicate with stakeholders

    Outputs

    Impact analysis of your mobile program and expected ROI

    Mobile program order of execution and project dependencies mapping

    List of dev practice metrics

    Develop a Plan to Pilot Enterprise Service Management

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    • Parent Category Name: Service Management
    • Parent Category Link: /service-management
    • Many business groups in the organization are siloed and have disjointed services that lead to a less than ideal customer experience.
    • Service management is too often process-driven and is implemented without a holistic view of customer value.
    • Businesses get caught up in the legacy of their old systems and find it difficult to move with the evolving market.

    Our Advice

    Critical Insight

    • Customer experience is the new battleground. Parity between products is creating the need to differentiate via customer experience.
    • Don’t forget your employees! Enterprise service management (ESM) is also about delivering exceptional experiences to your employees so they can deliver exceptional services to your customers.
    • ESM is not driven by tools and processes. Rather, ESM is about pushing exceptional services to customers by pulling from organizational capabilities.

    Impact and Result

    • Understand ESM concepts and how they can improve customer service.
    • Use Info-Tech’s advice and tools to perform an assessment of your organization’s state for ESM, identify the gaps, and create an action plan to move towards an ESM pilot.
    • Increase business and customer satisfaction by delivering services more efficiently.

    Develop a Plan to Pilot Enterprise Service Management Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should move towards ESM, 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. Understand ESM and get buy-in

    Understand the concepts of ESM, determine the scope of the ESM program, and get buy-in.

    • Develop a Plan to Pilot Enterprise Service Management – Phase 1: Understand ESM and Get Buy-in
    • Enterprise Service Management Executive Buy-in Presentation Template
    • Enterprise Service Management General Communications Presentation Template

    2. Assess the current state for ESM

    Determine the current state for ESM and identify the gaps.

    • Develop a Plan to Pilot Enterprise Service Management – Phase 2: Assess the Current State for ESM
    • Enterprise Service Management Assessment Tool
    • Enterprise Service Management Assessment Tool Action Plan Guide
    • Enterprise Service Management Action Plan Tool

    3. Identify ESM pilot and finalize action plan

    Create customer journey maps, identify an ESM pilot, and finalize the action plan for the pilot.

    • Develop a Plan to Pilot Enterprise Service Management – Phase 3: Identify ESM Pilot and Finalize Action Plan
    • Enterprise Service Management Customer Journey Map Template
    [infographic]

    Workshop: Develop a Plan to Pilot Enterprise Service 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 Understand ESM and Get Buy-In

    The Purpose

    Understand what ESM is and how it can improve customer service.

    Determine the scope of your ESM initiative and identify who the stakeholders are for this program.

    Key Benefits Achieved

    Understanding of ESM concepts.

    Understanding of the scope and stakeholders for your ESM initiative.

    Plan for getting buy-in for the ESM program.

    Activities

    1.1 Understand the concepts and benefits of ESM.

    1.2 Determine the scope of your ESM program.

    1.3 Identify your stakeholders.

    1.4 Develop an executive buy-in presentation.

    1.5 Develop a general communications presentation.

    Outputs

    Executive buy-in presentation

    General communications presentation

    2 Assess the Current State for ESM

    The Purpose

    Assess your current state with respect to culture, governance, skills, and tools.

    Identify your strengths and weaknesses from the ESM assessment scores.

    Key Benefits Achieved

    Understanding of your organization’s current enablers and constraints for ESM.

    Determination and analysis of data needed to identify strengths or weaknesses in culture, governance, skills, and tools.

    Activities

    2.1 Understand your organization’s mission and vision.

    2.2 Assess your organization’s culture, governance, skills, and tools.

    2.3 Identify the gaps and determine the necessary foundational action items.

    Outputs

    ESM assessment score

    Foundational action items

    3 Define Services and Create Custom Journey Maps

    The Purpose

    Define and choose the top services at the organization.

    Create customer journey maps for the chosen services.

    Key Benefits Achieved

    List of prioritized services.

    Customer journey maps for the prioritized services.

    Activities

    3.1 Make a list of your services.

    3.2 Prioritize your services.

    3.3 Build customer journey maps.

    Outputs

    List of services

    Customer journey maps

    2020 Applications Priorities Report

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    • Parent Category Name: Optimization
    • Parent Category Link: /optimization
    • Although IT may have time to look at trends, it does not have the capacity to analyze the trends and turn them into initiatives.
    • IT does not have time to parse trends for initiatives that are relevant to them.
    • The business complains that if IT does not pursue trends the organization will get left behind by cutting-edge competitors. At the same time, when IT pursues trends, the business feels that IT is unable to deal with the basic issues.

    Our Advice

    Critical Insight

    • Take advantage of a trend by first understanding why it is happening and how it is actionable. Build momentum now. Breaking a trend into bite-sized initiatives and building them into your IT foundations enables the organization to maintain pace with competitors and make the technological leap.
    • The concepts of shadow IT and governance are critical. As it becomes easier for the business to purchase its own applications, it will be essential for IT to embrace this form of user empowerment. With a diminished focus on vendor selection, IT will drive the most value by directing its energy toward data and integration governance.

    Impact and Result

    • Determine how to explore, adopt, and optimize the technology and practice initiatives in this report by understanding which core objective(s) each initiative serves:
      • Optimize the effectiveness of the IT organization.
      • Boost the productivity of the enterprise.
      • Enable business growth through technology.

    2020 Applications Priorities Report Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief for a summary of the priorities and themes that an IT organization should focus on this year.

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

    1. Read the 2020 Applications Priorities Report

    Use Info-Tech's 2020 Applications Priorities Report to learn about the five initiatives that IT should prioritize for the coming year.

    • 2020 Applications Priorities Report Storyboard
    [infographic]

    2022 Tech Trends

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    • Parent Category Name: Innovation
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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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    Hatem, Louise, Daniel Ker, and John Mitchell. “Roadmap toward a common framework for measuring the Digital Economy.” Report for the G20 Digital Economy Task Force, OECD, 2020. Accessed 19 Oct. 2021.

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    Pomeroy, James. The booming digital economy. HSBC, Sept. 2020. Web.

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    Bibliography – Hybrid Collaboration

    De Smet, Aaron, et al. “Getting Real about Hybrid Work.” McKinsey Quarterly, 9 July 2021. Web.

    Herskowitz, Nicole. “Brace Yourselves: Hybrid Work Is Hard. Here’s How Microsoft Teams and Office 365 Can Help.” Microsoft 365 Blog, 9 Sept. 2021. Web.

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    Subin, Samantha. “The new negotiation over job benefits and perks in post-Covid hybrid work.” CNBC, 23 Apr. 2021. Web.

    Torres, Roberto. “How to Sidestep Overspend as Hybrid Work Tests IT.” CIO Dive, 26 July 2021. Accessed 16 Sept. 2021.

    Wong, Christine. “How the hybrid workplace will affect IT spending.” ExpertIP, 15 July 2021. Web.

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    Bibliography – Battle Against Ransomware

    Berg, Leandro. “RTF Report: Combatting Ransomware.” Institute for Security and Technology (IST), 2021. Accessed 21 Sept. 2021.

    Dudley, Renee. “The Extortion Economy: How Insurance Companies Are Fueling a Rise in Ransomware Attacks.” ProPublica, 27 Aug. 2019. Accessed 22 Sept. 2021.

    Durbin, Steve. “Council Post: Artificial Intelligence: The Future Of Cybersecurity?” Forbes, 23 Sept. 2021. Accessed 21 Oct. 2021.

    “FACT SHEET: Ongoing Public U.S. Efforts to Counter Ransomware.” The White House, 13 Oct. 2021. Web.

    Jeffery, Lynsey, and Vignesh Ramachandran. “Why ransomware attacks are on the rise — and what can be done to stop them.” PBS NewsHour, 8 July 2021. Web.

    McBride, Timothy, et al. Data Integrity: Recovering from Ransomware and Other Destructive Events. NIST Special Publication (SP) 1800-11, National Institute of Standards and Technology, 22 Sept. 2020. NIST Computer Security Resource Center (CSRC), https://doi.org/10.6028/NIST.SP.1800-11.

    Mehrotra, Karitkay, and Jennifer Jacobs. “Crypto Channels Targeted in Biden’s Fight Against Ransomware.” BNN Bloomberg, 21 Sept. 2021. Web.

    Sharma, Mayank. “Hackers demand $70m ransom after executing massive Solar Winds-like attack.” TechRadar, 5 July 2021. Web.

    “Unhacked: 121 Tools against Ransomware on a Single Website.” Europol, 26 July 2021. Web.

    Bibliography – Carbon Metrics in Energy 4.0

    “The A List 2020.” CDP, 2021. Web.

    Baazil, Diedrik, Hugo Miller, and Laura Hurst. “Shell loses climate case that may set precedent for big oil.” Australian Financial Review, 27 May 2021. Web.

    “BlackRock’s 2020 Carbon Footprint.” BlackRock, 2020. Accessed 25 May 2021.

    “CDP Media Factsheet.” CDP, n.d. Accessed 25 May 2021.

    Glaser, April, and Leticia Miranda. “Amazon workers demand end to pollution hitting people of color hardest.” NBC News, 24 May 2021. Accessed 25 May 2021.

    Little, Mark. “Why Canada should be the home of the new global sustainability standards board.” Business Council of Canada, 1 Oct. 2021. Accessed 22 Oct. 2021.

    McIntyre, Catherine. “Canada vying for global headquarters to oversee sustainable-finance standards.” The Logic, 22 July 2021. Web.

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    Sayer, Peter. “Greenhouse gas emissions: The next big issue for CIOs.” CIO, 13 Oct. 2021. Web.

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    Sorkin, Andrew Ross. “BlackRock C.E.O. Larry Fink: Climate Crisis Will Reshape Finance.” The New York Times, 14 Jan. 2020. Web.

    “Sustainable IT Pledge.” CIO Strategy Council, 2021. Accessed 22 Oct. 2021.

    Bibliography – Intangible Value Creation

    Areddy, James T. “China Creates Its Own Digital Currency, a First for Major Economy.” Wall Street Journal, 5 Apr. 2021. Web.

    Boar, Codruta, et al. Impending arrival - a sequel to the survey on central bank digital currency. BIS Papers No 107, Jan. 2020. Web.

    Brainard, Lael. “Speech by Governor Brainard on Private Money and Central Bank Money as Payments Go Digital: An Update on CBDCs.” Board of Governors of the Federal Reserve System, 24 May 2021. Accessed 28 May 2021.

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    Bibliography – Intangible Value Creation

    Herrera, Pedro. “Dapp Industry Report: Q3 2021 Overview.” DappRadar, 1 Oct. 2021. Web.

    Holland, Frank. “Visa Says Crypto-Linked Card Usage Tops $1 Billion in First Half of 2021.” CNBC, 7 July 2021. Web.

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    Reyburn, Scott. “JPG File Sells for $69 Million, as ‘NFT Mania’ Gathers Pace.” The New York Times, 11 Mar. 2021. Web.

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    Bibliography – Automation as a Service

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    Warren, Zach. “Clio Taking 2021 Cloud Conference Virtual, Announces New Mission Among Other News.” Legaltech News, 11 Mar. 2021. Web.

    Wheatley, Mike. “Google Announces API-First Approach to Application Data Integration with Apigee.” SiliconANGLE, 28 Sept. 2021. Web.

    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.

    Build a Continual Improvement Program

    • Buy Link or Shortcode: {j2store}463|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • IT managers must work hard to maintain and improve service quality or risk performance deterioration over time.
    • Leadership may feel lost about what to do next and which initiatives have higher priority for improvement.
    • The backlog of improvement initiatives makes the work even harder. Managers should involve the right people in the process and build a team that is responsible to monitor, measure, prioritize, implement, and test improvements.

    Our Advice

    Critical Insight

    • Without continual improvement, sustained service quality will be temporary. Organizations need to put in place an ongoing process to detect potential services, enhance their procedures, and sustain their performance, whatever the process maturity is.

    Impact and Result

    • Set strategic vision for the continual improvement program.
    • Build a team to set regulations, processes, and audits for the program.
    • Set measurable targets for the program.
    • Identify and prioritize improvement initiatives.
    • Measure and monitor progress to ensure initiatives achieve the desired outcome.
    • Apply lessons learned to the next initiatives.

    Build a Continual Improvement Program Research & Tools

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

    1. Build a Continual Improvement Program – A step-by-step document to walk you through building a plan for efficient IT continual improvement.

    This storyboard will help you craft a continual improvement register and a workflow to ensure sustained service improvements that fulfill ongoing increases in stakeholder expectations.

    • Build a Continual Improvement Program Storyboard

    2. Continual Improvement Register and Workflow – Structured documents to help you outline improvement initiatives, prioritize them, and build a dashboard to streamline tracking.

    Use the Continual Improvement Register and Continual Improvement Workflow to help you brainstorm improvement items, get a better visibility into the items, and plan to execute improvements.

    • Continual Improvement Register
    • Continual Improvement Workflow (Visio)
    • Continual Improvement Workflow (PDF)
    [infographic]

    Further reading

    Build a Continual Improvement Program

    Don’t stop with process standardization; plan to continually improve and help those improvements stick.

    Analyst Perspective

    Go beyond standardizing basics

    IT managers often learn how to standardize IT services. Where they usually fail is in keeping these improvements sustainable. It’s one thing to build a quality process, but it’s another challenge entirely to keep momentum and know what to do next.

    To fill the gap, build a continual improvement plan to continuously increase value for stakeholders. This plan will help connect services, products, and practices with changing business needs.

    Without a continual improvement plan, managers may find themselves lost and wonder what’s next. This will lead to misalignment between ongoing and increasingly high stakeholder expectations and your ability to fulfill these requirements.

    Build a continual improvement program to engage executives, leaders, and subject matter experts (SMEs) to go beyond break fixes, enable proactive enhancements, and sustain process changes.

    Photo of Mahmoud Ramin, Ph.D., Senior Research Analyst, Infrastructure and Operations, Info-Tech Research Group. Mahmoud Ramin, Ph.D.
    Senior Research Analyst
    Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Even high-quality services and products need to be aligned with rising stakeholder expectations to sustain operational excellence.
    • Without the right leadership, commitment, and processes, improvements in service quality can be difficult to sustain.
    • Continual improvement is not only a development plan but also an organizational culture shift, which makes stakeholder buy-in even challenging.

    Common Obstacles

    • IT managers must work hard to maintain and improve service quality or risk performance deterioration over time.
    • Leadership feels lost about what to do next and which initiatives have higher priority for improvement.
    • A backlog of improvement initiatives makes the work even harder. Managers should involve the right people in the process and build a team that is responsible for monitoring, measuring, prioritizing, implementing, and testing improvements.

    Info-Tech’s Approach

    • Set a strategic vision for the continual improvement program.
    • Build a team to set regulations, processes, and audits for the program.
    • Set measurable targets for the program.
    • Identify and prioritize improvement initiatives.
    • Measure and monitor progress to ensure initiatives achieve the desired outcome.
    • Apply lessons learned to the next initiatives.

    Info-Tech Insight

    Without continual improvement, any process maturity achieved around service quality will not be sustained. Organizations need to put in place an ongoing program to maintain their current maturity and continue to grow and improve by identifying new services and enhancing existing processes.

    Purpose of continual improvement

    There should be alignment between ongoing improvements of business products and services and management of these products and services. Continual improvement helps service providers adapt to changing environments. No matter how critical the service is to the business, failure to continually improve reduces the service value.

    Image of a notebook with an illustration titled 'Continuous Improvement'.

    Continual improvement is one of the five elements of ITIL’s Service Value System (SVS).

    Continual improvement should be documented in an improvement register to record and manage improvement initiatives.

    Continual improvement is a proactive approach to service management. It involves measuring the effectiveness and efficiency of people, processes, and technology to:

    • Identify areas for improvement.
    • Adapt to changes in the business environment.
    • Align the IT strategy to organizational goals.

    A continual improvement process helps service management move away from a reactive approach that focuses only on fixing problems as they occur.

    Info-Tech Insight

    Make sure the basics are in place before you embark on a continual improvement initiative.

    Benefits of embedding a cross-organizational continual improvement approach

    Icon of a computer screen. Encourage end users to provide feedback on service quality. Icon of a crossed pencil and wrench.

    Provide an opportunity to stakeholders to define requirements and raise their concerns.

    Icon of a storefront.

    Embed continual improvement in all service delivery procedures.

    Icon of chevrons moving backward.

    Turn failures into improvement opportunities rather than contributing to a blame culture.

    Icon of a telescope.

    Improve practice effectiveness that enhances IT efficiency.

    Icon of a thumbs up in a speech bubble.

    Improve end-user satisfaction that positively impacts brand reputation.

    Icon of shopping bags.

    Improve operational costs while maintaining a high level of satisfaction.

    Icon of a magnifying glass over a map marker.

    Help the business become more proactive by identifying and improving services.

    Info-Tech Insight

    It’s the responsibility of the organization’s leaders to develop and promote a continual improvement culture. Work with the business unit leads and communicate the benefits of continual improvement to get their buy-in for the practice and achieve the long-term impact.

    Build a feedback program to get input into where improvement initiatives are needed

    A well-maintained continual improvement process creates a proper feedback mechanism for the following stakeholder groups:
    • Users
    • Suppliers
    • Service delivery team members
    • Service owners
    • Sponsors
    An efficient feedback mechanism should be constructed around the following initiatives:
    Target with an arrow in the bullseye. The arrow has four flags: 'Perceived value by users', 'Service effectiveness', 'Service governance', and 'Service demand'.
    Stakeholders who participate in feedback activities should feel comfortable providing suggestions for improvement.

    Work closely with the service desk team to build communication channels to conduct surveys. Avoid formal bureaucratic communications and enforce openness in communicating the value of feedback the stakeholders can provide.

    Info-Tech Insight

    When conducting feedback activities with users, keep surveys anonymous and ensure users’ information is kept confidential. Make sure everyone else is comfortable providing feedback in a constructive way so that you can seek clarification and create a feedback loop.

    Implement an iterative continual improvement model and ensure that your services align with your organizational vision

    Build a six-step process for your continual improvement plan. Make it a loop, in which each step becomes an input for the next step. A cycle around a dartboard with numbered steps: '01 Determine your goals', '02 Define the process team', '03 Determine initiatives', '04 Prioritize initiatives', '05 Execute improvement', '06 Establish a learning culture'.

    1. Determine your goals

    A vision statement communicates your desired future state of the IT organization.

    Your IT goals should always support your organizational goals. IT goals are high-level objectives that the IT organization needs to achieve to reach a target state.
    A cycle of the bolded statements on the right surrounding a dartboard with two bullseyes.

    Understand the high-level business objectives to set the vision for continual improvement in a way that will align IT strategies with business strategies.

    Obtaining a clear picture of your organization’s goals and overall corporate strategy is one of the crucial first steps to continual improvement and will set the stage for the metrics you select. Document your continual improvement program goals and objectives.

    Knowing what your business is doing and understanding the impact of IT on the business will help you ensure that any metrics you collect will be business focused.

    Understanding the long-term vision of the business and its appetite for commitment and sponsorship will also inform your IT strategy and continual improvement goals.

    Assess the future state

    At this stage, you need to visualize improvement, considering your critical success factors.

    Critical success factors (CSFs) are higher-level goals or requirements for success, such as improving end-user satisfaction. They’re factors that must be met in order to reach your IT and business strategic vision.

    Select key performance indicators (KPIs) that will identify useful information for the initiative: Define KPIs for each CSF. These will usually involve a trend, as an increase or decrease in something. If KPIs already exist for your IT processes, re-evaluate them to assess their relevance to current strategy and redefine if necessary. Selected KPIs should provide a full picture of the health of targeted practice.

    KPIs should cover these four vectors of practice performance:

    1. Quantity
      How many continual improvement initiatives are in progress
    2. Quality
      How well you implemented improvements
    3. Timeliness
      How long it took to get continual improvement initiatives done
    4. Compliance
      How well processes and controls are being executed, such as system availability
    Cross-section of a head split into sections with icons in the middle sections.

    Examples of key CSFs and KPIs for continual improvement

    CSF

    KPI

    Adopt and maintain an effective approach for continual improvement Improve stakeholder satisfaction due to implementation of improvement initiatives.
    Enhance stakeholder awareness about continual improvement plan and initiatives.
    Increase continual improvement adoption across the organization.
    Commit to effective continual improvement across the business Improve the return on investment.
    Increase the impact of the improvement initiatives on process maturity.
    Increase the rate of successful improvement initiatives.

    Prepare a vision statement to communicate the improvement strategy

    IT Implications + Business Context –› IT Goals
    • IT implications are derived from the business context and inform goals by aligning the IT goals with the business context.
    • Business context encompasses an understanding of the factors impacting the business from various perspectives, how the business makes decisions, and what it is trying to achieve.
    • IT goals are high-level, specific objectives that the IT organization needs to achieve to reach the target state. IT goals begin a process of framing what IT as an organization needs to be able to do in the target state.

    IT goals will help identify the target state, IT capabilities, and the initiatives that will need to be implemented to enable those capabilities.

    The vision statement is expressed in the present tense. It seeks to articulate the desired role of IT and how IT will be perceived.

    Strong IT vision statements have the following characteristics:
    Arrow pointing right. Describe a desired future
    Arrow pointing right. Focus on ends, not means
    Arrow pointing right. Communicate promise
    Arrow pointing right. Work as an elevator pitch:
    • Concise; no unnecessary words
    • Compelling
    • Achievable
    • Inspirational
    • Memorable

    2. Define the process team

    The structure of each continual improvement team depends on resource availability and competency levels.

    Make sure to allocate continual improvement activities to the available resources and assess the requirement to bring in others to fulfill all tasks.

    Brainstorm what steps should be included in a continual improvement program:

    • Who is responsible for identifying, logging, and prioritizing improvement opportunities?
    • Who makes the business case for improvement initiatives?
    • Who is the owner of the register, responsible for documenting initiatives and updating their status?
    • Who executes implementation?
    • Who evaluates implementation success?
    Match stakeholder skill sets with available resources to ensure continual improvement processes are handled properly. Brainstorm skills specific to the program:
    • Knowledge of provided products and services.
    • Good understanding of organization’s goals and objectives.
    • Efficiency in collecting and measuring metrics, understanding company standards and policies, and presenting them to impacted stakeholders.
    • Competency in strategic thinking and aligning the organization’s goals with improvement initiatives.

    Enable the continual improvement program by clarifying responsibilities

    Determine roles and responsibilities to ensure accountability

    The continual improvement activities will only be successful if specific roles and responsibilities are clearly identified.

    Depending on available staff and resources, you may be able to have full-time continual improvement roles, or you may include continual improvement activities in individuals’ job descriptions.

    Each improvement action that you identify should have clear ownership and accountability to ensure that it is completed within the specified timeframe.

    Roles and responsibilities can be reassigned throughout the continual improvement process.

    Info-Tech Insight

    Create cross-functional teams to improve perspective and not focus on only one small group when trying to problem solve. Having other teams hear and reframe the issue or talk about how they can help to solve issues as a team can create bigger solutions that will help the entire IT team, not just one group.

    Consider assigning dedicated continual improvement roles

    Silhouette of a business person.
    CI Coordinator

    Continual improvement coordinators are responsible for moving projects to the implementation phase and monitoring all continual improvement roles.

    Silhouette of a business person.
    Business Owner

    Business owners are accountable for business governance, compliance, and ROI analysis. They are responsible for operational and monetary aspects of the business.

    Silhouette of a business person.
    IT Owner

    IT owners are responsible for developing the action plan and ensuring success of the initiatives. They are usually the subject matter experts, focusing on technical aspects.

    3. Determine improvement initiatives

    Businesses usually make the mistake of focusing too much on making existing processes better while missing gaps in their practices.

    Gather stakeholder feedback to help you evaluate the maturity levels of IT practices Sample of the End User Satisfaction Survey.

    You need to understand the current state of service operations to understand how you can provide value through continual improvement. Give everyone an opportunity to provide feedback on IT services.

    Use Info-Tech’s End User Satisfaction Survey to define the state of your core IT services.

    Info-Tech Insight

    Become proactive to improve satisfaction. Continual improvement is not only about identifying pain points and improving them. It enables you to proactively identify initiatives for further service improvement using both practice functionality and technology enablement.

    Understand the current state of your IT practices

    Determine the maturity level of your IT areas to help you understand which processes need improvement. Involve the practice team in maturity assessment activities to get ideas and input from them. This will also help you get their buy-in and engagement for improvement.

    Leverage performance metrics to analyze performance level. Metrics play a key role in understanding what needs improvement. After you implement metrics, have an impact report regularly generated to monitor them.

    Use problem management to identify root causes for the identified gaps. Potential sources of problems can be:

    • Recurring issues that may be an indicator of an underlying problem.
    • Business processes or service issues that are not IT related, such as inefficient business process or service design issues.

    Establish an improvement roadmap and execute initiatives

    Build a continual improvement register (CIR) for your target initiatives

    A CIR is a document used for recording your action plan from the beginning to the end of the improvement project.

    If you just sit and plan for improvements without acting on them, nothing will improve. CIR helps you create an action plan and allows you to manage, track, and prioritize improvement suggestions.

    Consider tracking the following information in your CIR, adjusted to meet the needs of your organization:

    Information

    Description

    Business value impact Identify approved themes or goals that each initiative should apply to. These can and should change over time based on changing business needs.
    Effort/cost Identify the expected effort or cost the improvement initiative will require.
    Priority How urgent is the improvement? Categorize based on effort, cost, and risk levels.
    Status Ensure each initiative has a status assigned that reflects its current state.
    Timeline List the timeframe to start the improvement initiative based on the priority level.
    CI functional groups Customize the functional groups in your CI program

    Populate your register with ideas that come from your first round of assessments and use this document to continually add and track new ideas as they emerge.

    You can also consider using the register to track the outcomes and benefits of improvement initiatives after they have been completed.

    Activity: Use the Continual Improvement Register template to brainstorm responsibilities, generate improvement initiatives, and action plan

    1-3 hours
    1. Open the Continual Improvement Register template and navigate to tab 2, Setup.
    2. Brainstorm your definitions for the following items to get a clear understanding of these items when completing the CIR. The more quantification you apply to the criteria, the more tangible evaluation you will do:
      • Business value impact categories
      • Effort/cost
      • Priority
      • Status
      • Timeline
    3. Discuss the teams that the upcoming initiatives will belong to and update them under CI Functional Groups.
    1. Analyze the assessment data collected throughout stakeholder feedback and your current-state evaluation.
    2. Use this data to generate a list of initiatives that should be undertaken to improve the performance of the targeted processes.
    3. Use sticky notes to record identified CI initiatives.
    4. Record each initiative in tab 3, CI Register, along with associated information:
      • A unique ID number for the initiative
      • The individual who submitted the idea
      • The team the initiative belongs to
      • A description of the initiative

    Download the Continual Improvement Register template

    Activity: Use the Continual Improvement Register template to brainstorm responsibilities, generate improvement initiatives, and action plan

    Input

    • List of key stakeholders for continual improvement
    • Current state of services and processes

    Output

    • Continual improvement register setup
    • List of initiatives for continual improvement

    Materials

    • Continual improvement register
    • Whiteboard/flip charts
    • Markers
    • Laptops

    Participant

    • CIO
    • IT managers
    • Project managers
    • Continual improvement manager/coordinator

    4. Prioritize initiatives

    Prioritization should be transparent and available to stakeholders.

    Some initiatives are more critical than others to achieve and should be prioritized accordingly. Some improvements require large investments and need an equally large effort, while some are relatively low-cost, low-effort improvements. Focus on low-hanging fruit and prioritize low-cost, low-effort improvements to help the organization with rapid growth. This will also help you get stakeholder buy-in for the rest of your continual improvement program.

    Prioritize improvement initiatives in your CIR to increase visibility and ensure larger improvement initiatives are done the next cycle. As one improvement cycle ends, the next cycle begins, which allows the continual improvement team to keep pace with changing business requirements.

    Stock image of a person on a ladder leaning against a bookshelf.

    Identify “quick wins” that can provide immediate improvement

    Prioritize these quick wins to immediately demonstrate the success of the continual service improvement effort to the business.

    01

    Keep the scope of the continual improvement process manageable at the beginning by focusing on a few key areas that you want to improve.
    • If you have identified pain points, addressing these will demonstrate the value of the project to the business to gain their support.
    • Choose the services or processes that continue to disrupt or threaten service – focus on where pain points are evident and where there is a need for improvement.
    • Critical services to improve should emerge from the current-state assessments.

    02

    From your list of proposed improvements, focus on a few of the top pain points and plan to address those.

    03

    Choose the right services to improve at the first stage of continual improvement to ensure that the continual improvement process delivers value to the business.

    Activity: Prioritize improvement initiatives

    2-3 hours

    Input: List of initiatives for continual improvement

    Output: Prioritized list of initiatives

    Materials: Continual improvement register, Whiteboard/flip charts, Markers, Laptops

    Participants: CIO, IT managers, Project managers, Continual improvement manager

    1. In the CI Register tab of the Continual Improvement Register template, define the status, priority, effort/cost, and timeline according to the definition of each in the data entry tab.
    2. Review improvement initiatives from the previous activity.
    3. Record the CI coordinator, business owner, and IT owner for each initiative.
    4. Fill out submission date to track when the initiative was added to the register.
    5. According to the updated items, you will get a dashboard of items based on their categories, effort, priority, status, and timeline. You will also get a visibility into the total number of improvement initiatives.
    6. Focus on the short-term initiatives that are higher priority and require less effort.
    7. Refer to the Continual Improvement Workflow template and update the steps.

    Download the Continual Improvement Register template

    Download the Continual Improvement Workflow template

    5. Execute improvement

    Develop a plan for improvement

    Determine how you want to reach your improvement objectives. Define how to make processes work better.
    Icons representing steps. Descriptions below.
    Make a business case for your action plan Determine budget for implementing the improvement and move to execution. Find out how long it takes to build the improvement in the practice. Confirm the resources and skill sets you require for the improvement. Communicate the improvement plan across the business for better visibility and for seamless organizational change management, if needed. Lean into incremental improvements to ensure practice quality is sustained, not temporary. Put in place an ongoing process to audit, enhance, and sustain the performance of the target practice.

    Create a specific action plan to guide your improvement activities

    As part of the continual improvement plan, identify specific actions to be completed, along with ownership for each action.

    The continual improvement process must:

    • Define activities to be completed.
    • Create roles and assign ownership to complete activities.
    • Provide training and awareness about the initiative.
    • Define inputs and outputs.
    • Include reporting.

    For each action, identify:

    • The problem.
    • Who will be responsible and accountable.
    • Metric(s) for assessment.
    • Baseline and target metrics.
    • Action to be taken to achieve improvement (training, new templates, etc.).

    Choose timelines:

    • Firm timelines are important to keep the project on track.
    • One to two months for an initiative is an ideal length of time to maintain interest and enthusiasm for the specific project and achieve a result.

    Info-Tech Insight

    Every organization is unique in terms of its services, processes, strengths, weaknesses, and needs, as well as the expectations of its end users. There is no single action plan that will work for everyone. The improvement plan will vary from organization to organization, but the key elements of the plan (i.e. specific priorities, timelines, targets, and responsibilities) should always be in place.

    Build a communication plan to ensure the implementation of continual improvement stakeholder buy-in

    1. Throughout the improvement process, share information about both the status of the project and the impact of the improvement initiatives.
    Icon of a group of people. Encourage a collaborative environment across all members of the practice team.
    Icon of an ascending graph. Motivate every individual to continue moving upward and taking ownership over their roles.
    Icon of overlapping speech bubbles. Communication among team members ensures that everyone is on the same page working together toward a common goal.
    Icon of a handshake. The most important thing is to get the support of your team. Unless you have their support, you won’t be able to deliver any of the solutions you draw up.
    2. The end users should be kept in the loop so they can feel that their contribution is valued.
    Icon of an arrow pointing right. When improvements happen and only a small group of people are involved in the results and action plan, misconceptions will arise.
    Icon of a thumbs up in a speech bubble. If communication is lacking, end users will provide less feedback on the practice improvements.
    Icon of a cone made of stacked layers. For end users to feel their concerns are being considered, you must communicate the findings in a way that conveys the impact of their contribution.

    Info-Tech Insight

    To be effective, continual improvement requires open and honest feedback from IT staff. Debriefings work well for capturing information about lessons learned. Break down the debriefings into smaller, individual activities completed within each phase of the project to better capture the large amount of data and lessons learned within that phase.

    Measure the success of your improvement program

    Continual improvement is everybody’s job within the organization.

    Determine how improvements impacted stakeholders. Build a relationship pyramid to analyze how improvements impacted external users and narrow down to the internal users, implementing team, and leaders.
    1. How did we make improvements with our partners and suppliers? –› Look into your contracts and measure the SLAs and commitments.
    2. How could improvement initiatives impact the organization? –› Involve everybody to provide feedback. Rerun the end-user satisfaction survey and compare with the baseline that you obtained before improvement implementation.
    3. How does the improvement team feel about the whole process? –› What were the lessons learned, and can the team apply the lessons in the next improvement initiatives?
    4. How did the leaders manage and lead improvements? –› Were they able to provide proper vision to guide the improvement team through the process?
    A relationship pyramid with the initial questions on the left starting from '1' at the bottom to '4' at the 2nd highest level.

    Measure changes in selected metrics to evaluate success

    Measuring and reporting are key components in the improvement process.

    Adjust improvement priority based on updated objectives. Justify the reason. Refer to your CIR to document it.

    Did you get there?

    Part of the measurement should include a review of CSFs and KPIs determined in step 1 (assess the future state). Some may need to be replaced.

    • After an improvement has been implemented, it is important to regularly monitor and evaluate the CSFs and KPIs you chose and run reports to evaluate whether the implemented improvement has actually resolved the service/process issues or helped you achieve your objectives.
    • Establish a schedule for regularly reviewing key metrics that were identified in Step 1 and assessing change in those metrics and progress toward reaching objectives.
    • In addition to reviewing CSFs, KPIs, and metrics, check in with the IT organization and end users to measure their perceptions of the change 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 the continual improvement process should include:
    • Improved efficiency, effectiveness, and quality of processes and services.
    • Processes and services more aligned with the business needs and strategy.
    • Maturity of processes and services.

    For a guideline to determine a list of metrics, refer to Info-Tech’s blueprints:

    Info-Tech Insight

    Make sure you’re measuring the right things and considering all sources of information. Don’t rely on a single or very few metrics. Instead, consider a group of metrics to help you get a better holistic view of improvement initiatives and their impact on IT operations.

    6. Establish a learning culture and apply it to other practices

    Reflect on lessons learned to drive change forward

    What did you learn?
    Icon of a checklist and pencil. Ultimately, continual improvement is an ongoing educational program.
    Icon of a brain with a lighting bolt.
    Icon of a wrench in a speech bubble. By teaching your team how to learn better and identify sources of new knowledge that can be applied going forward, you maximize the efficacy of your team and improvement plan effort.
    What obstacles prevented you from reaching your target condition?
    Icon of a map marker. If you did not reach your target goals, reflect as a team on what obstacles prevented you from reaching that target.
    Icon of a wrench in a gear. Focus on the obstacles that are preventing your team from reaching the target state.
    Icon of a sun behind clouds. As obstacles are removed, new ones will appear, and old ones will disappear.

    Compare expectations versus reality

    Compare the EC (expected change) to the AC (actual change)
    Arrow pointing down.
    Arrow pointing left and down labelled 'Small'. Evaluate the differences: how large is the difference from what you expected? Arrow pointing right and down labelled 'Large'.
    Things are on track and the issue could have simply been an issue with timing of the improvement. More reflection is needed. Perhaps it is a gap in understanding the goal or a poor execution of the action plan.

    Info-Tech Insight

    Regardless of the cause, large differences between the EC and the AC provide great learning opportunities about how to approach change in the future.

    A cycle around a dartboard with numbered steps: '01 Determine your goals', '02 Define the process team', '03 Determine initiatives', '04 Prioritize initiatives', '05 Execute improvement', '06 Establish a learning culture'.

    Think long-term to sustain changes

    The continual improvement process is ongoing. When one improvement cycle ends, the next should begin in order to continually measure and evaluate processes.

    The goal of any framework is steady and continual improvement over time that resets the baseline to the current (and hopefully improved) level at the end of each cycle.

    Have processes in place to ensure that the improvements made will remain in place after the change is implemented. Each completed cycle is just another step toward your target state.
    Icon of a group of people. Ensure that there is a continual commitment from management.
    Icon of a bar chart. Regularly monitor metrics as well as stakeholder feedback after the initial improvement period has ended. Use this information to plan the next improvement.
    Icon of gears. Continual improvement is a combination of attitudes, behavior, and culture.

    Related Info-Tech Research

    Sample of 'Build a Business-Aligned IT Strategy'. Build a Business-Aligned IT Strategy

    Success depends on IT initiatives clearly aligned to business goals, IT excellence, and driving technology innovation.

    Sample of 'Develop Meaningful Service Metrics'. Develop Meaningful Service Metrics

    Reinforce service orientation in your IT organization by ensuring your IT metrics generate value-driven resource behavior.

    Sample of 'Common Challenges to incident management success'. Improve Incident and Problem Management

    Rise above firefighter mode with structured incident management to enable effective problem management.

    Works Cited

    “Continual Improvement ITIL4 Practice Guide.” AXELOS, 2020. Accessed August 2022.

    “5 Tips for Adopting ITIL 4’s Continual Improvement Management Practice.” SysAid, 2021. Accessed August 2022.

    Jacob Gillingham. “ITIL Continual Service Improvement And 7-Step Improvement Process” Invensis Global Learning Services, 2022. Accessed August 2022.

    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]

    Manage Requirements in an Agile Environment

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    The process of navigating from waterfall to Agile can be incredibly challenging. Even more problematic; how do you operate your requirements management practices once there? There traditionally isn’t a role for a business analyst, the traditional keeper of requirements. It isn’t like switching on a light.

    You likely find yourself struggling to deliver high quality solutions and requirements in Agile. This is a challenge for many organizations, regardless of how long they’ve leveraged Agile.

    But you aren’t here for assurances. You’re here for answers and help.

    Our Advice

    Critical Insight

    Agile and requirements management are complementary, not competitors.

    Impact and Result

    Info-Tech’s advice? Why choose? Why have to pick between traditional waterfall and Agile delivery? If Agile without analysis is a recipe for disaster, Agile with analysis is the solution. How can you leverage the Info-Tech approach to align your Agile and requirements management efforts into a powerful combination?

    Manage Requirements in an Agile Environment is your guide.

    Use the contents and exercises of this blueprint to gain a shared understanding of the two disciplines, to find your balance in your approach, to define your thresholds, and ultimately, to prepare for new ways of working.

    Manage Requirements in an Agile Environment Research & Tools

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

    1. Manage Requirements in an Agile Environment Blueprint – Agile and Requirements Management are complementary, not competitors

    Provides support and guidance for organizations struggling with their requirements management practices in Agile environments.

    • Manage Requirements in an Agile Environment Storyboard

    2. Agile Requirements Playbook – A practical playbook for aligning your teams, and articulating the guidelines for managing your requirements in Agile.

    The Agile Requirements Playbook becomes THE artifact for your Agile requirements practices. Great for onboarding, reviewing progress, and ensuring a shared understanding of your ways of working.

    • Agile Requirements Playbook

    3. Documentation Calculator – A tool for determining the right level of documentation for your organization, and whether you’re spending too much, or even not enough, on Agile Requirements documentation.

    The Documentation Calculator can inform your documentation decison making, ensuring you're investing just the right amount of time, money, and effort.

    • Documentation Calculator

    4. Agile Requirements Workbook – Supporting tools and templates in advancing your Agile Requirements practice, to be used in conjunction with the Agile Requirements Blueprint, and the Playbook.

    This workbook is designed to capture the results of your exercises in the Manage Requirements in an Agile Environment Storyboard. Each worksheet corresponds to an exercise in the storyboard. This is a tool for you, so customize the content and layout to best suit your product. The workbook is also a living artifact that should be updated periodically as the needs of your team and organization change.

    • Agile Requirements Workbook

    5. Agile Requirements Assessment – Establishes your current Agile requirements maturity, defines your target maturity, and supports planning to get there.

    The Agile Requirements Assessment is a great tool for determining your current capabilities and maturity in Agile and Business Analysis. You can also articulate your target state, which enables the identification of capability gaps, the creation of improvement goals, and a roadmap for maturing your Agile Requirements practice.

    • Agile Requirements Assessment

    Infographic

    Workshop: Manage Requirements in an Agile Environment

    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 Framing Agile and Business Analysis

    The Purpose

    Sets the context for the organization, to ensure a shared understanding of the benefits of both Agile and business analysis/requirements management.

    Key Benefits Achieved

    Have a shared definition of Agile and business analysis / requirements.

    Understand the current state of Agile and business analysis in your organization.

    Activities

    1.1 Define what Agile and business analysis mean in your organization.

    1.2 Agile requirements assessment.

    Outputs

    Alignment on Agile and business analysis / requirements in your organization.

    A current and target state assessment of Agile and business analysis in your organization.

    2 Tailoring Your Approach

    The Purpose

    Confirm you’re going the right way for effective solution delivery.

    Key Benefits Achieved

    Confirm the appropriate delivery methodology.

    Activities

    2.1 Confirm your selected methodology.

    Outputs

    Confidence in your selected project delivery methodology.

    3 Defining Your Requirements Thresholds

    The Purpose

    Provides the guardrails for your Agile requirements practice, to define a high-level process, roles and responsibilities, governance and decision-making, and how to deal with change.

    Key Benefits Achieved

    Clearly defined interactions between the BA and their partners

    Define a plan for management and governance at the project team level

    Activities

    3.1 Define your agile requirements process.

    3.2 Define your agile requirements RACI.

    3.3 Define your governance.

    3.4 Define your change and backlog refinement plan.

    Outputs

    Agile requirements process.

    Agile requirements RACI.

    A governance and documentation plan.

    A change and backlog refinement approach.

    4 Planning Your Next Steps

    The Purpose

    Provides the action plan to achieve your target state maturity

    Key Benefits Achieved

    Recognize and prepare for the new ways of working for communication, stakeholder engagement, within the team, and across the organization.

    Establish a roadmap for next steps to mature your Agile requirements practice.

    Activities

    4.1 Define your stakeholder communication plan.

    4.2 Identify your capability gaps.

    4.3 Plan your agile requirements roadmap.

    Outputs

    A stakeholder communication plan.

    A list of capability gaps to achieve your desired target state.

    A prioritized roadmap to achieve the target state.

    5 Agile Requirements Techniques (Optional)

    The Purpose

    To provide practical guidance on technique usage, which can enable an improved experience with technical elements of the blueprint.

    Key Benefits Achieved

    An opportunity to learn new tools to support your Agile requirements practice.

    Activities

    5.1 Managing requirements' traceability.

    5.2 Creating and managing user stories.

    5.3 Managing your requirements backlog.

    5.4 Maintaining a requirements library.

    Outputs

    Support and advice for leveraging a given tool or technique.

    Support and advice for leveraging a given tool or technique.

    Support and advice for leveraging a given tool or technique.

    Support and advice for leveraging a given tool or technique.

    Further reading

    Manage Requirements in an Agile Environment

    Agile and requirements management are complementary, not competitors

    Analyst's Perspective

    The temptation when moving to Agile is to deemphasize good requirements practices in favor of perceived speed. If you're not delivering on the needs of the business then you have failed, regardless of how fast you've gone.

    Delivery in Agile doesn't mean you stop needing solid business analysis. In fact, it's even more critical, to ensure your products and projects are adding value. With the rise of Agile, the role of the business analyst has been misunderstood.

    As a result, we often throw out the analysis with the bathwater, thinking we'll be just fine without analysis, documentation, and deliberate action, as the speed and dexterity of Agile is enough.

    Consequently, what we get is wasted time, money, and effort, with solutions that fail to deliver value, or need to be re-worked to get it right.

    The best organizations find balance between these two forces, to align, and gain the benefits of both Agile and business analysis, working in tandem to manage requirements that bring solutions that are "just right".

    This is a picture of Vincent Mirabelli

    Vincent Mirabelli
    Principal Research Director, Applications Delivery and Management
    Info-Tech Research Group

    EXECUTIVE BRIEF

    Executive Summary

    Your Challenge

    The process of navigating from waterfall to Agile can be incredibly challenging. And even more problematic; how do you operate your requirements management practices once there? Since there traditionally isn't a role for a business analyst; the traditional keeper of requirements. it isn't like switching on a light.

    You likely find yourself struggling to deliver high quality solutions and requirements in Agile. This is a challenge for many organizations, regardless of how long they've leveraged Agile.

    But you aren't here for assurances. You're here for answers and help.

    Common Obstacles

    many organizations and teams face is that there are so busy doing Agile that they fail to be Agile.

    Agile was supposed to be the saving grace of project delivery but is misguided in taking the short-term view of "going quickly" at the expense of important elements, such as team formation and interaction, stakeholder engagement and communication, the timing and sequencing of analysis work, decision-making, documentation, and dealing with change.

    The idea that good requirements just happen because you have user stories is wrong. So, requirements remain superficial, as you "can iterate later"…but sometimes later never comes, or doesn't come fast enough.

    Organizations need to be very deliberate when aligning their Agile and requirements management practices. The work is the same. How the work is done is what changes.

    Info-Tech's Approach

    Infotech's advice? Why choose? Why have to pick between traditional waterfall and Agile delivery? If Agile without analysis is a recipe for disaster, Agile with analysis is the solution. And how can you leverage the Info-Tech approach to align your Agile and requirements management efforts into a powerful combination?

    Manage Requirements in an Agile Environment is your guide.

    Use the contents and exercises of this blueprint to gain a shared understanding of the two disciplines, to find your balance in your approach, to define your thresholds, and ultimately, to prepare for new ways of working.

    Info-Tech Insight

    Agile and requirements management are complementary, not competitors.

    The temptation when moving to Agile is to deemphasize good requirements practices in favor of perceived speed. If you're not delivering on the needs of the business, then you have failed, regardless of how fast you've gone.

    Insight summary

    Overarching insight

    Agile and requirements management are complementary, not competitors.

    The temptation when moving to Agile is to deemphasize good requirements practices in favor of perceived speed. If you're not delivering on the needs of the business, then you have failed, regardless of how fast you've gone

    Phase 1 insight

    • The purpose of requirements in waterfall is for approval. The purpose in Agile is for knowledge management, as Agile has no memory.
    • When it comes to the Agile manifesto, "over" does not mean "instead of".
    • In Agile, the what of business analysis does doesn't change. What does change is the how and when that work happens.

    Phase 2 insight

    • Understand your uncertainties; it's a great way to decide what level of Agile (if any) is needed.
    • Finding your "Goldilocks" zone will take time. Be patient.

    Phase 3 insight

    • Right-size your governance, based on team dynamics and project complexity. A good referee knows when to step in, and when to let the game flow.
    • Agile creates a social contract amongst the team, and with their leaders and organization.
    • Documentation needs to be valuable. Do what is acceptable and necessary to move work to future steps. Not documenting also comes with a cost, but one you pay in the future. And that bill will come due, with interest (aka, technical debt, operational inefficiencies, etc.).
    • A lack of acceptable documentation makes it more difficult to have agility. You're constantly revalidating your current state (processes, practices and structure) and re-arguing decisions already made. This slows you down more than maintaining documentation ever would.

    Phase 4 insight

    • Making Agile predictable is hard, because people are not predictable; people are prone to chaos.

    There have been many challenges with waterfall delivery

    It turns out waterfall is not that great at reducing risk and ensuring value delivery after all

    • Lack of flexibility
    • Difficulty in measuring progress
    • Difficulties with scope creep
    • Limited stakeholder involvement
    • Long feedback loops

    48%
    Had project deadlines more than double

    85%
    Exceeded their original budget by at least 20%

    25%
    At least doubled their original budget

    This is an image of the waterfall project results

    Source: PPM Express.

    Agile was meant to address the shortcomings of waterfall

    The wait for solutions was too long for our business partners. The idea of investing significant time, money, and resources upfront, building an exhaustive and complete vision of the desired state, and then waiting months or even years to get that solution, became unpalatable for them. And rightfully so. Once we cast a light on the pains, it became difficult to stay with the status quo. Given that organizations evolve at a rapid pace, what was a pain at the beginning of an initiative may not be so even 6 months later.

    Agile became the answer.

    Since its' first appearance nearly 20 years ago, Agile has become the methodology of choice for a many of organizations. According to the 15th Annual State of Agile report, Agile adoption within software development teams increased from 37% in 2020 to 86% in 2021.

    Adopting Agile led to challenges with requirements

    Requirements analysis, design maturity, and management are critical for a successful Agile transformation.

    "One of the largest sources of failure we have seen on large projects is an immature Agile implementation in the context of poorly defined requirements."
    – "Large Scale IT Projects – From Nightmare to Value Creation"

    "Requirements maturity is more important to project outcomes than methodology."
    – "Business Analysis Benchmark: Full Report"

    "Mature Agile practices spend 28% of their time on analysis and design."
    – "Quantitative Analysis of Agile Methods Study (2017): Twelve Major Findings"

    "There exists a Requirements Premium… organizations using poor practices spent 62% more on similarly sized projects than organizations using the best requirements practices."
    – "The Business Case for Agile Business Analysis" - Requirements Engineering Magazine

    Strong stakeholder satisfaction with requirements results in higher satisfaction in other areas

    This is an image of a bar graph comparing the percentage of respondents with high stakeholder satisfaction, to the percentage of respondents with low stakeholder satisfaction for four different categories.  these include: Availability of IT Capacity to Complete Projects; Overall IT Projects; IT Projects Meet Business Needs; Overall IT Satisfaction

    N= 324 small organizations from Info-Tech Research Group's CIO Business Vision diagnostic.

    Note: High satisfaction was classified as organizations with a score greater or equal to eight and low satisfaction was every organization that scored below eight on the same questions.

    Info-Tech's Agile requirements framework

    This is an image of Info-Tech's Agile requirements framework.  The three main categories are: Sprint N(-1); Sprint N; Sprint N(+1)

    Agile requirements are a balancing act

    Collaboration

    Many subject matter experts are necessary to create accurate requirements, but their time is limited too.

    Communication

    Stakeholders should be kept informed throughout the requirements gathering process, but you need to get the right information to the right people.

    Documentation

    Recording, organizing, and presenting requirements are essential, but excessive documentation will slow time to delivery.

    Control

    Establishing control points in your requirements gathering process can help confirm, verify, and approve requirements accurately, but stage gates limit delivery.

    What changes for the business analyst?

    In Agile, the what of business analysis does not change.

    What does change is the how and when that work happens.

    Business analysts need to focus on six key elements when managing requirements in Agile.

    • Team formation and interaction
    • Stakeholder engagement and communication
    • The timing and sequencing of their work
    • Decision-making
    • Documentation
    • Dealing with change

    Where does the business analysis function fit on an Agile team?

    Team formation is key, as Agile is a team sport

    A business analyst in an Agile team typically interacts with several different roles, including:

    • The product owner,
    • The Sponsor or Executive
    • The development team,
    • Other stakeholders such as customers, end-users, and subject matter experts
    • The Design team,
    • Security,
    • Testing,
    • Deployment.

    This is an image the roles who typically interact with a Business Analyst.

    How we do our requirements work will change

    • Team formation and interaction
    • Stakeholder engagement and communication
    • The timing and sequencing of their work
    • Decision-making
    • Documentation
    • Dealing with change

    As a result, you'll need to focus on;

    • Emphasizing flexibility
    • Enabling continuous delivery
    • Enhancing collaboration and communication
    • Developing a user-centered approach

    Get stakeholders on board with Agile requirements

    1. Stakeholder feedback and management support are key components of a successful Agile Requirements.
    2. Stakeholders can see a project's progression and provide critical feedback about its success at critical milestones.
    3. Management helps teams succeed by trusting them to complete projects with business value at top of mind and by removing impediments that are inhibiting their productivity.
    4. Agile will bring a new mindset and significant numbers of people, process, and technology changes that stakeholders and management may not be accustomed to. Working through these issues in requirements management enables a smoother rollout.
    5. Management will play a key role in ensuring long-term Agile requirements success and ultimately rolling it out to the rest of the organization.
    6. The value of leadership involvement has not changed even though responsibilities will. The day-to-day involvement in projects will change but continual feedback will ultimately dictate the success or failure of a project.

    Measuring your success

    Tracking metrics and measuring your progress

    As you implement the actions from this Blueprint, you should see measurable improvements in;

    • Team and stakeholder satisfaction
    • Requirements quality
    • Documentation cost

    Without sacrificing time to delivery

    Metric Description and motivation
    Team satisfaction (%) Expect team satisfaction to increase as a result of clearer role delineation and value contribution.
    Stakeholder satisfaction (%) Expect Stakeholder satisfaction to similarly increase, as requirements quality increases, bringing increased value
    Requirements rework Measures the quality of requirements from your Agile Projects. Expect that the Requirements Rework will decrease, in terms of volume/frequency.
    Cost of documentation Quantifies the cost of documentation, including Elicitation, Analysis, Validation, Presentation, and Management
    Time to delivery Balancing Metric. We don't want improvements in other at the expense of time to delivery

    Info-Tech's methodology for Agile requirements

    1. Framing Agile and Business Analysis

    2. Tailoring Your Approach

    3. Defining Your Requirements Thresholds

    4. Planning Your Next Steps

    Phase Activities

    1.1 Understand the benefits and limitations of Agile and business analysis

    1.2 Align Agile and business analysis within your organization

    2.1 Decide the best-fit approach for delivery

    2.2 Manage your requirements backlog

    3.1 Define project roles and responsibilities

    3.2 Define your level of acceptable documentation

    3.3 Manage requirements as an asset

    3.4 Define your requirements change management plan

    4.1 Preparing new ways of working

    4.2 Develop a roadmap for next steps

    Phase Outcomes

    Recognize the benefits and detriments of both Agile and BA.

    Understand the current state of Agile and business analysis in your organization.

    Confirm the appropriate delivery methodology.

    Manage your requirements backlog.

    Connect the business need to user story.

    Clearly defined interactions between the BA and their partners.

    Define a plan for management and governance at the project team level.

    Documentation and tactics that are right-sized for the need.

    Recognize and prepare for the new ways of working for communication, stakeholder engagement, within the team, and across the organization.

    Establish a roadmap for next steps to mature your Agile requirements practice.

    Blueprint tools and templates

    Key deliverable:

    This is a screenshot from the Agile Requirements Playbook

    Agile Requirements Playbook

    A practical playbook for aligning your teams and articulating the guidelines for managing your requirements in Agile

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

    This is a screenshot from the Documentation Calculator

    Documentation Calculator

    A tool to help you answer the question: What is the right level of Agile requirements documentation for my organization?

    This is a screenshot from the Agile Requirements Assessment

    Agile Requirements Assessment

    Establishes your current maturity level, defines your target state, and supports planning to get there.

    This is a screenshot from the Agile Requirements Workbook

    Agile Requirements Workbook

    Supporting tools and templates in advancing your Agile requirements practice, to be used with the Agile Requirements Blueprint and Playbook.

    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

    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
    1. Framing Agile and Business Analysis / 2. Tailoring Your Approach 3. Defining Your Requirements
    Thresholds
    3. Defining Your Requirements Thresholds / 4. Planning Your Next Steps (OPTIONAL) Agile Requirements Techniques (a la carte) Next Steps and Wrap-Up (Offsite)

    Activities

    What does Agile mean in your organization? What do requirements mean in your organization?

    Agile Requirements Assessment

    Confirm your selected methodology

    Define your Agile requirements process

    Define your Agile requirements RACI (Optional)

    Define your Agile requirements governance

    Defining your change management plan

    Define your

    communication plan

    Capability gap list

    Planning your Agile requirements roadmap

    Managing requirements traceability

    Creating and managing user stories

    Managing your requirements backlog

    Maintaining a requirements library

    Develop Agile Requirements Playbook

    Complete in-progress deliverables from previous four days.

    Set up review time for workshop deliverables and next steps

    Outcomes

    Shared definition of Agile and business analysis / requirements

    Understand the current state of Agile and business analysis in your organization

    Agile requirements process

    Agile requirements RACI (Optional)

    Defined Agile requirements governance and documentation plan

    Change and backlog refinement plan

    Stakeholder communication plan

    Action plan and roadmap for maturing your Agile requirements practice

    Practical knowledge and practice about various tactics and techniques in support of your Agile requirements efforts

    Completed Agile Requirements Playbook

    Guided Implementation

    Phase 1 Phase 2 Phase 3 Phase 4

    Call #1: Scope objectives, and your specific challenges.

    Call #4: Define your approach to project delivery.

    Call #6: Define your Agile requirements process.

    Call #9: Identify gaps from current to target state maturity.

    Call #2: Assess current maturity.

    Call #5: Managing your requirements backlog.

    Call #7: Define roles and responsibilities.

    Call #10: Pprioritize next steps to mature your Agile requirements practice.

    Call #3: Identify target-state capabilities.

    Call #8: Define your change and backlog refinement approach.

    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 10 calls over the course of 4 to 6 months.

    Framing Agile and Business Analysis

    Phase 1

    Framing Agile and Business Analysis

    Phase 1Phase 2Phase 3Phase 4

    1.1 Understand the benefits and limitations of Agile and business analysis

    1.2 Align Agile and business analysis within your organization

    2.1 Confirm the best-fit approach for delivery

    2.2 manage your requirements backlog

    3.1 Define project roles and responsibilities

    3.2 define your level of acceptable documentation

    3.3 Manage requirements as an asset

    3.4 Define your requirements change management plan

    4.1 Preparing new ways of working

    4.2 Develop a roadmap for next steps

    This phase will walk you through the following activities:

    • EXERCISE: What do Agile and requirements mean in your organization?
    • ASSESSMENT: Agile requirements assessment
    • KEY DELIVERABLE: Agile Requirements Playbook

    This phase involves the following participants:

    • Business analyst and project team
    • Stakeholders
    • Sponsor/Executive

    Managing Requirements in an Agile Environment

    Step 1.1

    Understand the benefits and limitations of Agile and business analysis

    Activities

    1.1.1 Define what Agile and business analysis mean in your organization

    This step involves the following participants:

    • Business analyst and project team
    • Sponsor/Executive

    Outcomes of this step

    • Recognize the benefits and detriments of both Agile and business analysis

    Framing Agile and Business Analysis

    There have been many challenges with waterfall delivery

    It turns out waterfall is not that great at reducing risk and ensuring value delivery after all

    • Lack of flexibility
    • Difficulty in measuring progress
    • Difficulties with scope creep
    • Limited stakeholder involvement
    • Long feedback loops

    48%
    Had project deadlines more than double

    85%
    Exceeded their original budget by at least 20%

    25%
    At least doubled their original budget

    This is an image of the Waterfall Project Results

    Source: PPM Express.

    Business analysis had a clear home in waterfall

    Business analysts had historically been aligned to specific lines of business, in support of their partners in their respective domains. Somewhere along the way, the function was moved to IT. Conceptually this made sense, in that it allowed BAs to provide technical solutions to complex business problems. This had the unintended result of lost domain knowledge, and connection to the business.

    It all starts with the business. IT enables business goals. The closer you can get to the business, the better.

    Business analysts were the main drivers of helping to define the business requirements, or needs, and then decompose those into solution requirements, to develop the best option to solve those problems, or address those needs. And the case for good analysis was clear. The later a poor requirement was caught, the more expensive it was to fix. And if requirements were poor, there was no way to know until much later in the project lifecycle, when the cost to correct them was exponentially higher, to the tune of 10-100x the initial cost.

    This is an image of a graph showing the cost multiplier for Formulating Requirements, Architecture Design, Development, Testing and, Operations

    Adapted from PPM Express. "Why Projects Fail: Business Analysis is the Key".

    Agile was meant to address the shortcomings of waterfall

    The wait for solutions was too long for our business partners. The idea of investing significant time, money, and resources upfront, building an exhaustive and complete vision of the desired state, and then waiting months or even years to get that solution became unpalatable for them. And rightfully so. Once we cast a light on the pains, it became difficult to stand pat in the current state. And besides, organizations evolve at a rapid pace. What was a pain at the beginning of an initiative may not be so even six months later.

    Agile became the answer.

    Since its first appearance nearly 20 years ago, Agile has become the methodology of choice for a huge swathe of organizations. According to the 15th Annual State of Agile report, Agile adoption within software development teams increased from 37% in 2020 to 86% in 2021.

    To say that's significant is an understatement.

    The four core values of Agile helped shift focus

    According to the Agile manifesto, "We value. . ."

    This is an image of what is valued according to the Agile Manifesto.

    "…while there is value in the items on the right, we value the items on the left more."

    Source: Agilemanifesto, 2001

    Agile has made significant inroads in IT and beyond

    94% of respondents report using Agile practices in their organization

    according to Digital.AI's "The 15th State of Agile Report"

    That same report notes a steady expansion of Agile outside of IT, as other areas of the organization seek to benefit from increased agility and responsiveness, including Human Resources, Finance and Marketing.

    While it addressed some problems…

    This is an image of the Waterfall Project Results, compared to Agile Product Results.

    "Agile projects are 37% faster to market than [the] industry average"

    (Requirements Engineering Magazine, 2017)

    • Business requirements documents are massive and unreadable
    • Waterfall erects barriers and bottlenecks between the business and the development team
    • It's hard to define the solution at the outset of a project
    • There's a long turnaround between requirements work and solution delivery
    • Locking in requirements dictates an often-inflexible solution. And the costs to make changes tend to add up.

    …Implementing Agile led to other challenges

    This is an image of a series of thought bubbles, each containing a unique challenge resulting from implementing Agile.

    Adopting Agile led to challenges with requirements

    Requirements analysis, design maturity, and management are critical for a successful Agile transformation.

    "One of the largest sources of failure we have seen on large projects is an immature Agile implementation in the context of poorly defined requirements."
    – BCG, 2015

    "Requirements maturity is more important to project outcomes than methodology."
    – IAG Consulting, 2009.

    "Mature Agile practices spend 28% of their time on analysis and design."
    – InfoQ, 2017."

    "There exists a Requirements Premium… organizations using poor practices spent 62% more on similarly sized projects than organizations using the best requirements practices."
    – Requirements Engineering Magazine, 2017

    Strong stakeholder satisfaction with requirements results in higher satisfaction in other areas

    This is an image of a bar graph comparing the percentage of respondents with high stakeholder satisfaction, to the percentage of respondents with low stakeholder satisfaction for four different categories.  these include: Availability of IT Capacity to Complete Projects; Overall IT Projects; IT Projects Meet Business Needs; Overall IT Satisfaction

    N= 324 small organizations from Info-Tech Research Group's CIO Business Vision diagnostic.

    Note: High satisfaction was classified as organizations with a score greater or equal to eight and low satisfaction was every organization that scored below eight on the same questions.

    Agile is being misinterpreted as an opportunity to bypass planning and analysis activities

    Agile is a highly effective tool.

    This isn't about discarding Agile. It is being used for things completely outside of what was originally intended. When developing products or code, it is in its element. However, outside of that realm, its being used to bypass business analysis activities, which help define the true customer and business need.

    Business analysts were forced to adapt and shift focus. Overnight they morphed into product owners, or no longer had a place on the team. Requirements and analysis took a backseat.

    The result?

    Increased rework, decreased stakeholder satisfaction, and a lot of wasted money and effort.

    "Too often, the process of two-week sprints becomes the thing, and the team never gets the time and space to step back and obsess over what is truly needed to delight customers."
    Harvard Business Review, 9 April 2021.

    Info-Tech Insight

    Requirements in Agile are the same, but the purpose of requirements changes.

    • The purpose of requirements in waterfall is for stakeholder approval.
    • The purpose of requirements in Agile is knowledge management; to maintain a record of the current state.

    Many have misinterpreted the spirit of Agile and waterfall

    The stated principles of waterfall say nothing of how work is to be linear.

    This is an image of a comparison between using Agile and Being Prescriptive.This is an image of Royce's 5 principles for success.

    Source: Royce, Dr. Winston W., 1970.

    For more on Agile methodology, check out Info-Tech's Agile Research Centre

    How did the pendulum swing so far?

    Shorter cycles of work made requirements management more difficult. But the answer isn't to stop doing it.

    Organizations went from engaging business stakeholders up front, and then not until solution delivery, to forcing those partners to give up their resources to the project. From taking years to deliver a massive solution (which may or may not even still fit the need) to delivering in rapid cycles called sprints.

    This tug-of-war is costing organizations significant time, money, and effort.

    Your approach to requirements management needs to be centered. We can start to make that shift by better aligning our Agile and business analysis practices. Outside of the product space, Agile needs to be combined with other disciplines (Harvard Business Review, 2021) to be effective.

    Agility is important. Though it is not a replacement for approach or strategy (RCG Global Services, 2022). In Agile, team constraints are leveraged because of time. There is a failure to develop new capabilities to address the business needs Harvard Business Review, 2021).

    Agility needs analysis.

    Agile requirements are a balancing act

    Collaboration

    Many subject matter experts are necessary to create accurate requirements, but their time is limited too.

    Communication

    Stakeholders should be kept informed throughout the requirements gathering process, but you need to get the right information to the right people.

    Documentation

    Recording, organizing, and presenting requirements are essential, but excessive documentation will slow time to delivery.

    Control

    Establishing control points in your requirements gathering process can help confirm, verify, and approve requirements accurately, but stage gates limit delivery.

    Start by defining what the terms mean in your organization

    We do this because there isn't even agreement by the experts on what the terms "Agile" and "business analysis" mean, so let's establish a definition within the context of your organization.

    1.1.1 What do Agile and business analysis mean in your organization?

    Estimated time: 30 Minutes

    1. Explore the motivations behind the need for aligning Agile with business analysis. Are there any current challenges related to outputs, outcomes, quality? How can the team and organization align the two more effectively for the purposes of requirements management?
    2. Gather the appropriate stakeholders to discuss their definition of the terms "Agile" and "business analysis" It can be related to their experience, practice, or things they've read or heard.
    3. Brainstorm and document all shared thoughts and perspectives.
    4. Synthesize those thoughts and perspectives into a shared definition of each term, of a sentence or two.
    5. Revisit this definition as needed, and as your Agile requirements efforts evolve.

    Input

    • Challenges and experiences/perspectives related to Agile and business requirements

    Output

    • A shared definition of Agile and business analysis, to help guide alignment on Agile requirements management

    Materials

    • Agile Requirements Workbook

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Build your Agile Requirements Playbook

    Keep the outcomes of this blueprint in a single document

    Share at the beginning of a new project, as part of team member onboarding, and revisit as your practice matures.

    This is a series of three screenshots from the Agile Requirements Playbook.

    Your Agile Requirements Playbook will include

    • Your shared definition of Agile and business analysis for your organization
    • The Agile Requirements Maturity Assessment
    • A Methodology Selection Matrix
    • Agile requirements RACI
    • A defined Agile requirements process
    • Documentation Calculator
    • Your Requirements Repository Information
    • Capability Gap List (from current to target state)
    • Target State Improvement Roadmap and Action Plan

    Step 1.2

    Align Agile and Business Analysis Within Your Organization

    Activities

    1.2.1 Assess your Agile requirements maturity

    This step involves the following participants:

    • Business Analyst and Project Team
    • Stakeholders
    • Sponsor/Executive

    Outcomes of this step

    • Complete the Agile Requirements Maturity Assessment to establish your current and target states

    Framing Agile and Business Analysis

    Consider the question: "Why Agile?"

    What is the driving force behind that decision?

    There are many reasons to leverage the power of Agile within your organization, and specifically as part of your requirements management efforts. And it shouldn't just be to improve productivity. That's only one aspect.
    Begin by asking, "Why Agile?" Are you looking to improve:

    • Time to market
    • Team engagement
    • Product quality
    • Customer satisfaction
    • Stakeholder engagement
    • Employee satisfaction
    • Consistency in delivery of value
    • Predictably of your releases

    Or a combination of the above?

    Info-Tech Insight

    Project delivery methodologies aren't either/or. You don't have to be 100% waterfall or 100% Agile. Select the right approach for your project, product, or service.

    In the end, your business partners don't want projects delivered faster, they want value faster!

    For more on understanding Agile, check out the Implement Agile Practices That Work Blueprint

    Responses to a 2019 KPMG survey:

    13% said that their top management fully supports Agile transformation.

    76% of organizations did not agree that their organization supports Agile culture.

    62% of top management believe Agile has no implications for them.

    What changes for the business analyst?

    Business analysts need to focus on six key elements when managing requirements in Agile.

    • Team formation and interaction
    • Stakeholder engagement and communication
    • The timing and sequencing of their work
    • Decision-making
    • Documentation
    • Dealing with change

    In Agile, the what of business analysis does not change.

    What does change is the how and when that work happens.

    1.2.1 Assess your Agile requirements maturity

    This is a series of screenshots from the Agile Requirements Maturity Assessment.

    1.2.1 Assess your Agile requirements maturity

    Estimated time: 30 Minutes

      1. Using the Agile Requirements Maturity Assessment, gather all appropriate stakeholders, and discuss and score the current state of your practice. Scoring can be done by:
        1. Consensus: Generally better with a smaller group, where the group agrees the score and documents the result
        2. Average: Have everyone score individually, and aggregate the results into an average, which is then entered.
        3. Weighted Average: As above, but weight the individual scores by individual or line of business to get a weighted average.
      2. When current state is complete, revisit to establish target state (or hold as a separate session) using the same scoring approach as in current state.
        1. Recognize that there is a cost to maturity, so don't default to the highest score by default.
        2. Resist the urge at this early stage to generate ideas to navigate from current to target state. We will re-visit this exercise in Phase 4, once we've defined other pieces of our process and practice.

    Input

    • Participant knowledge and experience

    Output

    • A current and target state assessment of your Agile requirements practice

    Materials

    • Agile Requirements Maturity Assessment

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Tailoring Your Approach

    Phase 2

    Phase 1Phase 2Phase 3Phase 4

    1.1 Understand the benefits and limitations of Agile and business analysis

    1.2 Align Agile and business analysis within your organization

    2.1 Confirm the best-fit approach for delivery

    2.2 manage your requirements backlog

    3.1 Define project roles and responsibilities

    3.2 define your level of acceptable documentation

    3.3 Manage requirements as an asset

    3.4 Define your requirements change management plan

    4.1 Preparing new ways of working

    4.2 Develop a roadmap for next steps

    This phase will walk you through the following activities:

    • Selecting the appropriate delivery methodology
    • Managing your requirements backlog
    • Tracing from business need to user story

    This phase involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Managing Requirements in an Agile Environment

    Step 2.1

    Confirm the Best-fit Approach for Delivery

    Activities

    2.1.1 Confirm your methodology

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Outcomes of this step

    • A review of potential delivery methodologies to select the appropriate, best-fit approach to your projects

    Confirming you're using the best approach doesn't have be tricky

    Selecting the right approach (or confirming you're on the right track) is easier when you assess two key inputs to your project; your level of certainty about the solution, and the level of complexity among the different variables and inputs to your project, such as team experience and training, the number of impacted stakeholders or context. lines of business, and the organizational

    Solution certainty refers to the level of understanding of the problem and the solution at the start of the project. In projects with high solution certainty, the requirements and solutions are well defined, and the project scope is clear. In contrast, projects with low solution certainty have vague or changing requirements, and the solutions are not well understood.

    Project complexity refers to the level of complexity of the project, including the number of stakeholders, the number of deliverables, and the level of technical complexity. In projects with high complexity, there are many stakeholders with different priorities, many deliverables, and high technical complexity. In contrast, projects with low complexity have fewer stakeholders, fewer deliverables, and lower technical complexity.

    "Agile is a fantastic approach when you have no clue how you're going to solve a problem"

    • Ryan Folster, Consulting Services Manager, Business Analysis, Dimension Data

    Use Info-Tech's methodology selection matrix

    Waterfall methodology is best suited for projects with high solution certainty and high complexity. This is because the waterfall model follows a linear and sequential approach, where each phase of the project is completed before moving on to the next. This makes it ideal for projects where the requirements and solutions are well-defined, and the project scope is clear.

    On the other hand, Agile methodology is best suited for projects with low solution certainty. Agile follows an iterative and incremental approach, where the requirements and solutions are detailed and refined throughout the project. This makes it ideal for projects where the requirements and solutions are vague or changing.

    Note that there are other models that exist for determining which path to take, should this approach not fit within your organization.

    Use info-tech's-methodology-selection-matrix

    This is an image of Info-Tech’s methodology selection matrix

    Adapted from The Chaos Report, 2015 (The Standish Group)

    Download the Agile Requirements Workbook

    2.1.1 Confirm your methodology

    Estimated time: 30 Minutes

    1. Using the Agile Requirements Workbook, find the tab labelled "Methodology Assessment" and answer the questions to establish your complexity and certainty scores, where;

    1 = Strongly disagree
    2 = Disagree
    3 = Neutral
    4 = Agree
    5 = Strongly agree.

    1. In the same workbook, plot the results in the grid on the tab labelled "Methodology Matrix".
    2. Projects falling into Green are good fits for Agile. Yellow are viable. And Red may not be a great fit for Agile.
    3. Note: Ultimately, the choice of methodology is yours. Recognize there may be additional challenges when a project is too complex, or uncertainty is high.

    Input

    • Current project complexity and solution certainty

    Output

    • A clear choice of delivery methodology

    Materials

    • Agile Requirements Workbook

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Step 2.2

    Manage Your Requirements Backlog

    Activities

    2.2.1 Create your user stories

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Outcomes of this step

    • Understand how to convert requirements into user stories, which populate the Requirements Backlog.

    Tailoring Your Approach

    There is a hierarchy to requirements

    This is a pyramid, with the base being: Solution Requirements; The middle being: Stakeholder Requirements; and the Apex being: Business Requirements.
    • Higher-level statements of the goals, objectives, or needs of the enterprise.
    • Business requirements focus on the needs of the organization, and not the stakeholders within it.

    Defines

    Intended benefits and outcomes

    • Statements of the needs of a particular stakeholder or class of stakeholders, and how that stakeholder will interact with a solution.

    Why it is needed, and by who

    • Describes the characteristics of a solution that meets business requirements and stakeholder requirements. Functional describes the behavior and information that the solution will manage. They describe capabilities the system will be able to perform in terms of behaviors or operations. Non-functional represents constraints on the ultimate solution and tends to be less negotiable.

    What is needed, and how its going to be achieved

    Connect the dots with a traceability matrix

    Business requirements describe what a company needs in order to achieve its goals and objectives. Solution requirements describe how those needs will be met. User stories are a way to express the functionality that a solution will provide from the perspective of an end user.

    A traceability matrix helps clearly connect and maintain your requirements.

    To connect business requirements to solution requirements, you can start by identifying the specific needs that the business has and then determining how those needs can be met through technology or other solutions; or what the solution needs to do to meet the business need. So, if the business requirement is to increase online sales, a solution requirement might include implementing a shopping cart feature on your company website.

    Once you have identified the solution requirements, you can then use those to create user stories. A user story describes a specific piece of functionality that the solution will provide from the perspective of a user.

    For example, "As a customer, I want to be able to add items to my shopping cart so that I can purchase them." This user story is directly tied to the solution requirement of implementing a shopping cart feature.

    Tracing from User Story back up to Business Requirement is essential in ensuring your solutions support your organization's strategic vison and objectives.

    This is an image of a traceability matrix for Business Requirements.

    Download the Info-Tech Requirements Traceability Matrix

    Improve the quality of your solution requirements

    A solution requirement is a statement that clearly outlines the functional capability that the business needs from a system or application.

    There are several attributes to look for in requirements:

    Verifiable

    Unambiguous

    Complete

    Consistent

    Achievable

    Traceable

    Unitary

    Agnostic

    Stated in a way that can be easily tested

    Free of subjective terms and can only be interpreted in one way

    Contains all relevant information

    Does not conflict with other requirements

    Possible to accomplish with budgetary and technological constraints

    Trackable from inception through to testing

    Addresses only one thing and cannot be decomposed into multiple requirements

    Doesn't pre-suppose a specific vendor or product

    For more on developing high quality requirements, check out the Improve Requirements Gathering Blueprint

    Prioritize your requirements

    When everything is a priority, nothing is a priority.

    Prioritization is the process of ranking each requirement based on its importance to project success. Each requirement should be assigned a priority level. The delivery team will use these priority levels to ensure efforts are targeted toward the proper requirements as well as to plan features available on each release. Use the MoSCoW Model of Prioritization to effectively order your requirements.

    The MoSCoW Model of Prioritization

    This is an image of The MoSCoW Model of Prioritization

    The MoSCoW model was introduced by Dai Clegg of Oracle UK in 1994

    (Source: ProductPlan).

    Base your prioritization on the right set of criteria

    Criteria Description
    Regulatory and legal compliance These requirements will be considered mandatory.
    Policy compliance Unless an internal policy can be altered or an exception can be made, these requirements will be considered mandatory.
    Business value significance Give a higher priority to high-value requirements.
    Business risk Any requirement with the potential to jeopardize the entire project should be given a high priority and implemented early.
    Likelihood of success Especially in proof-of-concept projects, it is recommended that requirements have good odds.
    Implementation complexity Give a higher priority to low implementation difficulty requirements.
    Alignment with strategy Give a higher priority to requirements that enable the corporate strategy.
    Urgency Prioritize requirements based on time sensitivity.
    Dependencies A requirement on its own may be low priority, but if it supports a high-priority requirement, then its priority must match it.

    Info-Tech Insight

    It is easier to prioritize requirements if they have already been collapsed, resolved, and rewritten. There is no point in prioritizing every requirement that is elicited up front when some of them will eventually be eliminated.

    Manage solution requirements in a Product backlog

    What is a backlog?

    Agile teams are familiar with the use of a Sprint Backlog, but in Requirements Management, a Product Backlog is a more appropriate choice.

    A product backlog and a Sprint backlog are similar in that they are both lists of items that need to be completed in order to deliver a product or project, but there are some key differences between the two.

    A product backlog is a list of all the features, user stories, and requirements that are needed for a product or project. It is typically created and maintained by the business analyst or product owner and is used to prioritize and guide the development of the product.

    A Sprint backlog, on the other hand, is a list of items specifically for an upcoming sprint, which is an iteration of work in Scrum. The Sprint backlog is created by the development team and is used to plan and guide the work that will be done during the sprint. The items in the Sprint backlog are typically taken from the product backlog and are prioritized based on their importance and readiness.

    For more on building effective product backlogs, visit Deliver on Your Digital Product Vision

    A backlog stores and organizes requirements at various stages

    Your backlog must give you a holistic understanding of demand for change in the product.

    A well-formed backlog can be thought of as a DEEP backlog

    Detailed appropriately: Requirements are broken down and refined as necessary

    Emergent: The backlog grows and evolves over time as requirements are added and removed.

    Estimated: The effort to deliver a requirement is estimated at each tier.

    Prioritized: A requirement's value and priority are determined at each tier.

    This is an image of an inverted funnel, with the top being labeled: Ideas; The middle being labeled: Qualified; and the bottom being labeled: Ready.

    Adapted from Essential Scrum

    Ensure requests and requirements are ready for development

    Clearly define what it means for a requirement, change, or maintenance request to be ready for development.

    This will help ensure the value and scope of each functionality and change are clear and well understood by both developers and stakeholders before the start of the sprint. The definition of ready should be two-fold: ready for the backlog, and ready for coding.

    1. Create a checklist that indicates when a requirement or request is ready for the development backlog. Consider the following questions:
      1. Is the requirement or request in the correct format?
      2. Does the desired functionality or change have significant business value?
      3. Can the requirement or request be reasonably completed within defined release timelines under the current context?
      4. Does the development team agree with the budget and points estimates?
      5. Is there an understanding of what the requirement or request means from the stakeholder or user perspective?
    2. Create a checklist that indicates when a requirement or request is ready for development. Consider the following questions:
      1. Have the requirements and requests been prioritized in the backlog?
      2. Has the team sufficiently collaborated on how the desired functionality or change can be completed?
      3. Do the tasks in each requirement or request contain sufficient detail and direction to begin development?
      4. Can the requirement or request be broken down into smaller pieces?

    Converting solution requirements into user stories

    Define the user

    Who will be interacting with the product or feature being developed? This will help to focus the user story on the user's needs and goals.

    Create the story

    Create the user story using the following template: "As a [user], I want [feature] so that [benefit]."
    This helps articulate the user's need and the value that the requirement will provide.

    Decompose

    User stories are typically too large to be implemented in a single sprint, so they should be broken down into smaller, more manageable tasks.

    Prioritize

    User stories are typically too large to be implemented in a single sprint, so they should be broken down into smaller, more manageable tasks.

    2.2.1 Create your user stories

    Estimated time: 60 Minutes

    1. Gather the project team and relevant stakeholders. Have access to your current list of solution requirements.
    2. Leverage the approach on previous slide "Converting Solution Requirements into User Stories" to generate a collection of user stories.

    NOTE: There is not a 1:1 relationship between requirements and user stories.
    It is possible that a single requirement will have multiple user stories, and similarly, that a single user story will apply to multiple solution requirements.

    Input

    • Requirements
    • Use Case Template

    Output

    • A collection of user stories

    Materials

    • Current Requirements

    Participants

    • Business Analyst(s)
    • Project Team
    • Relevant Stakeholders

    Use the INVEST model to create good user stories

    At this point your requirements should be high-level stories. The goal is to refine your backlog items, so they are . . .

    A vertical image of the Acronym: INVEST, taken from the first letter of each bolded word in the column to the right of the image.

    Independent: Ideally your user stories can be built in any order (i.e. independent from each other). This allows you to prioritize based on value and not get caught up in sequencing and prerequisites.
    Negotiable: As per the Agile principle, collaboration over contracts. Your user stories are meant to facilitate collaboration between the developer and the business. Therefore, they should be built to allow negotiation between all parties.
    Valuable: A user story needs to state the value so it can be effectively prioritized, but also so developers know what they are building.
    Estimable: As opposed to higher-level approximation given to epics, user stories need more accuracy in their estimates in order to, again, be effectively prioritized, but also so teams can know what can fit into a sprint or release plans.
    Small: User stories should be small enough for a number of them to fit into a sprint. However, team size and velocity will impact how many can be completed. A general guideline is that your teams should be able to deliver multiple stories in a sprint.
    Testable: Your stories need to be testable, which means they must have defined acceptance criteria and any related test cases as defined in your product quality standards.
    Source: Agile For All

    Defining Your Requirements Thresholds

    Phase 3

    Defining Your Requirements Thresholds

    Phase 1Phase 2Phase 3Phase 4

    1.1 Understand the benefits and limitations of Agile and business analysis

    1.2 Align Agile and business analysis within your organization

    2.1 Confirm the best-fit approach for delivery

    2.2 manage your requirements backlog

    3.1 Define project roles and responsibilities

    3.2 define your level of acceptable documentation

    3.3 Manage requirements as an asset

    3.4 Define your requirements change management plan

    4.1 Preparing new ways of working

    4.2 Develop a roadmap for next steps

    This phase will walk you through the following activities:

    • Assigning roles and responsibilities optional (Tool: RACI)
    • Define your Agile requirements process
    • Calculate the cost of your documentation (Tool: Documentation Calculator)
    • Define your backlog refinement plan

    This phase involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Managing Requirements in an Agile Environment

    Step 3.1

    Define Project Roles and Responsibilities

    Activities

    3.1.1 Define your Agile requirements RACI (optional)

    3.1.2 Define your Agile requirements process

    Defining Your Requirements Thresholds

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Outcomes of this step

    • A defined register of roles and responsibilities, along with a defined process for how Agile requirements work is to be done.

    Defining Your Requirements Thresholds

    Where does the BA function fit on an Agile team?

    Team formation is key, as Agile is a team sport

    A business analyst in an Agile team typically interacts with several different roles, including the product owner, development team, and many other stakeholders throughout the organization.

    This is an image the roles who typically interact with a Business Analyst.

    • The product owner, to set the priorities and direction of the project, and to gather requirements and ensure they are being met. Often, but not always, the BA and product owner are the same individual.
    • The development team, to provide clear and concise requirements that they can use to build and test the product.
    • Other stakeholders, such as customers, end-users, and subject matter experts to gather their requirements, feedback and validate the solution.
      • Design, to ensure that the product meets user needs. They may provide feedback and ensure that the design is aligned with requirements.
      • Security, to ensure that the solution meets all necessary security requirements and to identify potential risks and appropriate use of controls.
      • Testing, to ensure that the solution is thoroughly tested before it is deployed. They may create test cases or user scenarios that validate that everything is working as intended.
      • Deployment, to ensure that the necessary preparations have been made, including testing, security, and user acceptance.

    Additionally, during the sprint retrospectives, the team will review their performance and find ways to improve for the next sprint. As a team member, the business analyst helps to identify areas where the team could improve how they are working with requirements and understand how the team can improve communication with stakeholders.

    3.1.1 (Optional) Define Your Agile Requirements RACI

    Estimated Time: 60 Minutes

    1. Identify the project deliverables: The first step is to understand the project deliverables and the tasks that are required to complete them. This will help you to identify the different roles and responsibilities that need to be assigned.
    2. Define the roles and responsibilities: Identify the different roles that will be involved in the project and their associated responsibilities. These roles may include project manager, product owner, development team, stakeholders, and any other relevant parties.
    3. Assign RACI roles: Assign a RACI role to each of the identified tasks. The RACI roles are:
      1. Responsible: the person or team who is responsible for completing the task
      2. Accountable: the person who is accountable for the task being completed on time and to the required standard
      3. Consulted: the people or teams who need to be consulted to ensure the task is completed successfully
      4. Informed: the people or teams who need to be informed of the task's progress and outcome
    4. Create the RACI chart: Use the information gathered in the previous steps to create a matrix or chart that shows the tasks, the roles, and the RACI roles assigned to each task.
    5. Review and refine: Review the RACI chart with the project team and stakeholders to ensure that it accurately reflects the roles and responsibilities of everyone involved. Make any necessary revisions and ensure that all parties understand their roles and responsibilities.
    6. Communicate and implement: Communicate the RACI chart to all relevant parties and ensure that it is used as a reference throughout the project. This will help to ensure that everyone understands their role and that tasks are completed on time and to the required standard.

    Input

    • A list of required tasks and activities
    • A list of stakeholders

    Output

    • A list of defined roles and responsibilities for your project

    Materials

    • Agile Requirements Workbook

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    A Case Study in Team Formation

    Industry: Anonymous Organization in the Energy sector
    Source: Interview

    Challenge

    Agile teams were struggling to deliver within a defined sprint, as there were consistent delays in requirements meeting the definition of ready for development. As such, sprints were often delayed, or key requirements were descoped and deferred to a future sprint.

    During a given two-week sprint cycle, the business analyst assigned to the team would be working along multiple horizons, completing elicitation, analysis, and validation, while concurrently supporting the sprint and dealing with stakeholder changes.

    Solution

    As a part of addressing this ongoing pain, a pilot program was run to add a second business analyst to the team.

    The intent was, as one is engaged preparing requirements through elicitation, analysis, and validation for a future sprint, the second is supporting the current sprint cycle, and gaining insights from stakeholders to refine the requirements backlog.

    Essentially, these two were leap-frogging each other in time. At all times, one BA was focused on the present, and one on the future.

    Result

    A happier team, more satisfied stakeholders, and consistent delivery of features and functions by the Agile teams. The pilot team outperformed all other Agile teams in the organization, and the "2 BA" approach was made the new standard.

    Understanding the Agile requirements process

    Shorter cycles make effective requirements management more necessary, not less

    Short development cycles can make requirements management more difficult because they often result in a higher rate of change to the requirements. In a shorter timeframe, there is less time to gather and verify requirements, leading to a higher likelihood of poor or incomplete requirements. Additionally, there may be more pressure to make decisions quickly, which can lead to less thorough analysis and validation of requirements. This can make it more challenging to ensure that the final solution meets the needs of the stakeholders.
    When planning your requirements cycles, it's important to consider;

    • Your sprint logistics (how long?)
    • Your release plan (at the end of every sprint, monthly, quarterly?)
    • How the backlog will be managed (as tickets, on a visual medium, such as a Kanban board?)
    • How will you manage communication?
    • How will you monitor progress?
    • How will future sprint planning happen?

    Info-Tech's Agile requirements framework

    Sprint N(-1)

    Sprint N

    Sprint N(+1)

    An image of Sprint N(-1) An image of Sprint N An image of Sprint N(+1)

    Changes from waterfall to Agile

    Gathering and documenting requirements: Requirements are discovered and refined throughout the project, rather than being gathered and documented up front. This can be difficult for business analysts who are used to working in a waterfall environment where all requirements are gathered and documented before development begins.
    Prioritization of requirements: Requirements are prioritized based on their value to the customer and the team's ability to deliver them. This can be difficult for business analysts who are used to prioritizing requirements based on the client's needs or their own understanding of what is important.

    Defining acceptance criteria: Acceptance criteria are defined for each user story to ensure that the team understands what needs to be delivered. Business analysts need to understand how to write effective acceptance criteria and how to use them to ensure that the team delivers what the customer needs.
    Supporting Testing and QA: The business analyst plays a role in ensuring that testing (and test cases) are completed and of proper quality, as defined in the requirements.

    Managing changing requirements: It is expected that requirements will change throughout the project. Business analysts need to be able to adapt quickly to changing requirements and ensure that the team is aware of the changes and how they will impact the project.
    Collaboration with stakeholders: Requirements are gathered from a variety of stakeholders, including customers, users, and team members. Business analysts need to be able to work effectively with all stakeholders to gather and refine requirements and ensure that the team is building the right product.

    3.1.2 Define your Agile requirements process

    Estimated time: 60 Minutes

    1. Gather all relevant stakeholders to discuss and define your process for requirements management.
    2. Have a team member facilitate the session to define the process. The sample in the Agile Requirements Workbook can be used optionally as a starting point. You can also use any existing processes and procedures as a baseline.
    3. Gain agreement on the process from all involved stakeholders.
    4. Revisit the process periodically to review its performance and make adjustments as needed.

    NOTE: The process is intended to be at a high enough level to leave space and flexibility for team members to adapt and adjust, but at a sufficient depth that everyone understands the process and workflows. In other words, the process will be both flexible and rigid, and the two are not mutually exclusive.

    Input

    • Project team and RACI
    • Existing Process (if available)

    Output

    • A process for Agile requirements that is flexible yet rigid

    Materials

    • Agile Requirements Workbook

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Establish the right level of governance and decision-making

    Establishing the right level of governance and decision making is important in Agile requirements because there is a cost to decision making, as time plays an important factor. Even the failure to decide can have significant impacts.

    Good governance and decision-making practices can help to minimize risks, ensure that requirements are well understood and managed, and that project progress is tracked and reported effectively.

    In Agile environments, this often involves establishing clear roles and responsibilities, implementing effective communication and collaboration practices, and ensuring that decision-making processes are efficient and effective.

    Good requirements management practices can help to ensure that projects are aligned with organizational goals and strategy, that stakeholders' needs are understood and addressed, and that deliverables are of high quality and meet the needs of the business.

    By ensuring that governance and decision-making is effective, organizations can improve the chances of project success, and deliver value to the business. Risks and costs can be mitigated by staying small and nimble.

    Check out Make Your IT Governance Adaptable

    Develop an adaptive governance process

    A pyramid, with the number 4 at the apex, and the number 1 at the base.  In order from base-apex, the following titles are found to the right of the pyramid: Ad-Hoc governance; Controlled Governance; Agile Governance; Embedded/Automated governance.

    Maturing governance is a journey

    Organizations should look to progress in their governance stages. Ad-hoc and controlled governance tends to be slow, expensive, and a poor fit for modern practices.

    The goal as you progress through your stages is to delegate governance and empower teams to make optimal decisions in real-time, knowing that they are aligned with the understood 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 and able to react effectively to volatility and uncertainty.

    A graph charting Trust and empowerment on the x-axis, and Progress Integration on the Y axis.

    Five key principles for building an adaptive governance framework

    Delegate and empower

    Decision making must be delegated down within the organization, and all resources must be empowered and supported to make effective decisions.

    Define outcomes

    Outcomes and goals must be clearly articulated and understood across the organization to ensure decisions are in line and stay within reasonable boundaries.

    Make risk- informed decisions

    Integrated risk information must be available with sufficient data to support decision making and design approaches at all levels of the organization.

    Embed / automate

    Governance standards and activities need to be embedded in processes and practices. Optimal governance reduces its manual footprint while remaining viable. This also allows for more dynamic adaptation.

    Establish standards and behavior

    Standards and policies need to be defined as the foundation for embedding governance practices organizationally. These guardrails will create boundaries to reinforce delegated decision making.

    Sufficient decision-making power should be given to your Agile teams

    Push the decision-making process down to your pilot teams.

    • Bring your business stakeholders and subject matter experts together to identify the potential high-level risks.
    • Bring your business stakeholders and subject matter experts together to identify the potential high-level risks.
    • Discuss with the business the level of risk they are willing to accept.
    • Define the level of authority project teams have in making critical decisions.

    "Push the decision making down as far as possible, down to the point where sprint teams completely coordinate all the integration, development, and design. What I push up the management chain is risk taking. [Management] decides what level of risk they are willing to take and [they] demonstrate that by the amount of decision making you push down."
    – Senior Manager, Canadian P&C Insurance Company, Info-Tech Interview

    Step 3.2

    Define Your Level of Acceptable Documentation

    Activities

    3.2.1 Calculate the cost of documentation

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Relevant Stakeholders

    Outcomes of this step

    • Quantified cost of documentation produced for your Agile project.

    Defining Your Requirements Thresholds

    Right-size Your Documentation

    Why do we need it, and what purpose does it serve?

    Before creating any documentation, consider why; why are you creating documentation, and what purpose is it expected to serve?
    Is it:

    • … to gain approval?
    • … to facilitate decision-making?
    • .. to allow the team to think through a challenge or compare solution options?

    Next, consider what level of documentation would be acceptable and 'enough' for your stakeholders. Recognize that 'enough' will depend on your stakeholder's personal definition and perspective.
    There may also be considerations for maintaining documentation for the purposes of compliance, and auditability in some contexts and industries.
    The point is not to eliminate all documentation, but rather, to question why we're producing it, so that we can create just enough to deliver value.

    "What does the next person need to do their work well, to gain or create a shared understanding?"
    - Filip Hendrickx, Innovating BA and Founder, altershape

    Documentation comes at a cost

    We need to quantify the cost of documentation, against the expected benefit

    All things take time, and that would imply that all things have an inherent cost. We often don't think in these terms, as it's just the work we do, and costs are only associated with activities requiring additional capital expenditure. Documentation of requirements can come at a cost in terms of time and resources. Creating and maintaining detailed documentation requires effort from project team members, which could be spent on other aspects of the project such as development or testing. Additionally, there may be costs associated with storing and distributing the documentation.

    When creating documentation, we are making a decision. There is an opportunity cost of investing time to create, and concurrently, not working on other activities. Documentation of requirements can come at a cost in terms of time and resources. Creating and maintaining detailed documentation requires effort from project team members, which could be spent on other aspects of the project such as development or testing. Additionally, there may be costs associated with storing and distributing the documentation.

    In order to make better informed decisions about the types, quantity and even quality of the documentation we are producing, we need to capture that data. To ensure we are receiving good value for our documentation, we should compare the expected costs to the expected benefits of a sprint or project.

    3.2.1 Calculate the cost of documentation

    Estimated time: as needed

    1. Use this tool to quantify the cost of creating and maintaining current state documentation for your Agile requirements team. It provides an indication, via the Documentation Cost Index, of when your project is documenting excessively, relative to the expected benefits of the sprint or project.
    2. In Step 1, enter the hourly rate for the person (or persons) completing the business analysis function for your Agile team. NB: This does not have to be a person with the title of business analyst. If there are multiple people fulfilling this role, enter the average rate (if their rates are same or similar) or a weighted average (if there is a significant range in the hourly rate)
    3. In Step 2, enter the expected benefit (in $) for the sprint or project.
    4. In Step 3, enter the total number of hours spent on each task/activity during the sprint or project. Use blank spaces as needed to add tasks and activities not listed.
    5. In Step 4, you'll find the Documentation Cost Index, which compares your total documentation cost to the expected benefits. The cell will show green when the value is < 0.8, yellow between 0.8 and 1, and red when >1.
    6. Use the information to plan future sprints and documentation needs, identify opportunities for improvement in your requirements practice, and find balance in "just enough" documentation.

    Input

    • Project team and RACI
    • Existing Process (if available)

    Output

    • A process for Agile requirements that is flexible yet rigid

    Materials

    • Agile Requirements Workbook

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Lack of documentation also comes at a cost

    Lack of documentation can bring costs to Agile projects in a few different ways.

    • Onboarding new team members
    • Improving efficiency
    • Knowledge management
    • Auditing and compliance
    • Project visibility
    • Maintaining code

    Info-Tech Insight

    Re-using deliverables (documentation, process, product, etc.) is important in maintaining the velocity of work. If you find yourself constantly recreating your current state documentation at the start of a project, it's hard to deliver with agility.

    Step 3.3

    Manage Requirements as an Asset

    Activities

    3.3.1 Discuss your current perspectives on requirements as assets

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Relevant Stakeholders

    Outcomes of this step

    • Awareness of the value in, and tactics for enabling effective management of requirements as assets

    Defining Your Requirements Thresholds

    What do we mean by "assets"?

    And when do requirements become assets?

    In order to delivery with agility, you need to maximize the re-usability of artifacts. These artifacts could take the form of current state documentation, user stories, test cases, and yes, even requirements for re-use.
    Think of it like a library for understanding where your organization is today. Understanding the people, processes, and technology, in one convenient location. These artifacts become assets when we choose to retain them, rather than discard them at the end of a project, when we think they'll no longer be needed.
    And just like finding a single book in a vast library, we need to ensure our assets can be found when we need them. And this means making them searchable.
    We can do this by establishing criteria for requirements and artifact reuse;

    • What business need and benefit is it aligned to?
    • What metadata needs to be attached, related to source, status, subject, author, permissions, type, etc.?
    • Where will it be stored for ease of retrieval?

    Info-Tech Insight

    When writing requirements for products or services, write them for the need first, and not simply for what is changing.

    The benefits of managing requirements as assets

    Retention of knowledge in a knowledge base that allows the team to retain current business requirements, process documentation, business rules, and any other relevant information.
    A clearly defined scope to reduce stakeholder, business, and compliance conflicts.
    Impact analysis of changes to the current organizational assets.

    Source: Requirement Engineering Magazine, 2017.

    A case study in creating an asset repository

    Industry: Anonymous Organization in the Government sector
    Source: Interview

    Challenge

    A large government organization faced a challenge with managing requirements, processes, and project artifacts with any consistency.

    Historically, their documentation was lacking, with multiple versions existing in email sent folders and manila folders no one could find. Confirming the current state at any given time meant the heavy lift of re-documenting and validating, so that effort was avoided for an excessive period.

    Then there was a request for audit and compliance, to review their existing documentation practices. With nothing concrete to show, drastic recommendations were made to ensure this practice would end.

    Solution

    A small but effective team was created to compile and (if not available) document all existing project and product documentation, including processes, requirements, artifacts, business cases, etc.

    A single repository was built and demonstrated to key stakeholders to ensure it would satisfy the needs of the audit and compliance group.

    Result

    A single source of truth for the organization, which was;

    • Accessible (view access to the entire organization).
    • Transparent (anyone could see and understand the process and requirements as intended).
    • A baseline for continuous improvement, as it was clear what the one defined "best way" was.
    • Current, where no one retained current documentation outside of this library.

    3.3.1 Discuss your current perspectives on requirements as assets

    Estimated time: 30 Minutes

    1. Gather all relevant stakeholder to share perspectives on the use of requirements as assets, historically in the organization.
    2. Have a team member facilitate the session. It is optional to document the findings.
    3. After looking at the historical use of requirements as assets, discuss the potential uses, benefits, and drawbacks of managing as assets in the target state.

    Input

    • Participant knowledge and experience

    Output

    • A shared perspective and history on requirements as assets

    Materials

    • A method for data capture (optional)

    Participants

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Apply changes to baseline documentation

    Baseline + Release Changes = New Baseline

    • Start from baseline documentation dramatically to reduce cost and risk
    • Treat all scope as changes to baseline requirements
    • Sum of changes in the release scope
    • Sum of changes and original baseline becomes the new baseline
    • May take additional time and effort to maintain accurate baseline

    What is the right tool?

    While an Excel spreadsheet is great to start off, its limitations will become apparent as your product delivery process becomes more complex. Look at these solutions to continue your journey in managing your Agile requirements:

    Step 3.4

    Define Your Requirements Change Management Plan

    Activities

    3.4.1 Triage your requirements

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Relevant Stakeholders

    Outcomes of this step

    • An approach for determining the appropriate level of governance over changes to requirements.

    Expect and embrace change

    In Agile development, change is expected and embraced. Instead of trying to rigidly follow a plan that may become outdated, Agile teams focus on regularly reassessing their priorities and adapting their plans accordingly. This means that the requirements can change often, and it's important for the team to have a process in place for managing these changes.

    A common approach to managing change in Agile is to use a technique called "backlog refinement." Where previously we populated our backlog with requirements to get them ready for development and deployment, this involves regularly reviewing and updating the list of work to be done. The team will prioritize the items on the evolving backlog, and the prioritized items will be worked on during the next sprint. This allows the team to quickly respond to changes in requirements and stay focused on the most important work.

    Another key aspect of managing change in Agile is effective communication. The team should have regular meetings, such as daily stand-up meetings or weekly sprint planning meetings, to discuss any changes in requirements and ensure that everyone is on the same page.

    Best practices in change and backlog refinement

    Communicate

    Clearly communicate your change process, criteria, and any techniques, tools, and templates that are part of your approach.

    Understand impacts/risks

    Maintain consistent control and communication and ensure that an impact assessment is completed. This is key to managing risks.

    Leverage tools

    Leverage tools when you have them available. This could be a Requirements Management system, a defect/change log, or even by turning on "track changes" in your documents.

    Cross-reference

    For every change, define the source of the change, the reason for the change, key dates for decisions, and any supporting documentation.

    Communicate the reason, and stay on message throughout the change

    Leaders of successful change spend considerable time developing a powerful change message: a compelling narrative that articulates the desired end state and makes the change concrete and meaningful to staff. They create the change vision with staff to build ownership and commitment.

    • The change message should:
    • Explain why the change is needed.
    • Summarize the things that will stay the same.
    • Highlight the things that will be left behind.
    • Emphasize the things that are being changed.
    • Explain how the change will be implemented.
    • Address how the change will affect the various roles in the organization.
    • Discuss staff's role in making the change successful.

    The five elements of communicating the reason for the change:

    An image of a cycle, including the five elements for communicating the reason for change.  these include: What will the role be for each department and individual?; What is the change?; Why are we doing it?; How are we going to go about it?; How long will it take us?

    How to make the management of changes more effective

    Key decisions and considerations

    How will changes to requirements be codified?
    How will intake happen?

    • What is the submission process?
    • Who has approval to submit?
    • What information is needed to submit a request?

    How will potential changes be triaged and evaluated?

    • What criteria will be used to assess the impact and urgency of the potential change?
    • How will you treat material and non-material changes?

    What is the review and approval process?

    • How will acceptance or rejection status be communicated to the submitter?

    3.4.1 Triage Your requirements

    An image of an inverted triangle, with the top being labeled: No Material Impact, the middle being labeled: Material impact; and the bottom being labeled: Governance Impact.  To the right of the image, are text boxes elaborating on each heading.

    If there's no material impact, update and move on

    An image of an inverted triangle, with the top being labeled: No Material Impact, the middle being labeled: Material impact; and the bottom being labeled: Governance Impact. To the right of the image, is a cycle including the following terms: Validate change; Update requirements; Track change (log); Package and communicate

    Material changes require oversight and approval

    An image of an inverted triangle, with the top being labeled: No Material Impact, the middle being labeled: Material impact; and the bottom being labeled: Governance Impact. To the right of the image, is a cycle including the following terms: Define impact; Revise; Change control needed?; Implement change.

    Planning Your Next Steps

    Phase 4

    Planning Your Next Steps

    Phase 1Phase 2Phase 3Phase 4

    1.1 Understand the benefits and limitations of Agile and business analysis

    1.2 Align Agile and business analysis within your organization

    2.1 Confirm the best-fit approach for delivery

    2.2 manage your requirements backlog

    3.1 Define project roles and responsibilities

    3.2 define your level of acceptable documentation

    3.3 Manage requirements as an asset

    3.4 Define your requirements change management plan

    4.1 Preparing new ways of working

    4.2 Develop a roadmap for next steps

    This phase will walk you through the following activities:

    • Completing Your Agile Requirements Playbook
    • EXERCISE: Capability Gap List

    This phase involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Managing Requirements in an Agile Environment

    Step 4.1

    Preparing New Ways of Working

    Activities

    4.1.1 Define your communication plan

    Planning Your Next Steps

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Outcomes of this step

    • Recognize the changes required on the team and within the broader organization, to bring stakeholders on board.

    How we do requirements work will change

    • Team formation and interaction
    • Stakeholder engagement and communication
    • The timing and sequencing of their work
    • Decision-making
    • Documentation
    • Dealing with change

    As a result, you'll need to focus on;

    Emphasizing flexibility: In Agile organizations, there is a greater emphasis on flexibility and the ability to adapt to change. This means that requirements may evolve over time and may not be fully defined at the beginning of the project.
    Enabling continuous delivery: Agile organizations often use continuous delivery methods, which means that new features and functionality are delivered to users on a regular basis. This requires a more iterative approach to requirements management, as new requirements may be identified and prioritized during the delivery process.
    Enhancing collaboration and communication: Agile organizations place a greater emphasis on collaboration and communication between team members, stakeholders, and customers.
    Developing a user-centered approach: Agile organizations often take a user-centered approach to requirements gathering, which means that the needs and goals of the end-user are prioritized.

    Change within the team, and in the broader organization

    How to build an effective blend Agile and requirements management

    Within the team

    • Meetings should happen as needed
    • Handoffs should be clear and concise
    • Interactions should add value
    • Stand-ups should similarly add value, and shouldn't be for status updates

    Within the organization

    • PMO inclusion, to ensure alignment across the organization
    • Business/Operating areas, to recognize what they are committing to for time, resources, etc.
    • Finance, for how your project or product is funded
    • Governance and oversight, to ensure velocity is maintained

    "Whether in an Agile environment or not, collaboration and relationships are still required and important…how you collaborate, communicate, and how you build relationships are key."
    - Paula Bell, CEO, Paula A. Bell Consulting

    Get stakeholders on board with Agile requirements

    1. Stakeholder feedback and management support are key components of successful Agile requirements.
    2. Stakeholders can see a project's progression and provide critical feedback about its success at critical milestones.
    3. Management helps teams succeed by trusting them to complete projects with business value at top of mind and by removing impediments that are inhibiting their productivity.
    4. Agile will bring a new mindset and significant amounts of people, process, and technology changes that stakeholders and management may not be accustomed to. Working through these issues in requirements management enables a smoother rollout.
    5. Management will play a key role in ensuring long-term Agile requirements success and ultimately rolling it out to the rest of the organization.
    6. The value of leadership involvement has not changed even though responsibilities will. The day-to-day involvement in projects will change but continual feedback will ultimately dictate the success or failure of a project.

    4.1.1 Define your communication plan

    Estimated time: 60 Minutes

      1. Gather all relevant stakeholder to create a communication plan for project or product stakeholders.
      2. Have a team member facilitate the session.
      3. Identify
      4. ;
        1. Each stakeholder
        2. The nature of information they are interested in
        3. The channel or medium best to communicate with them
        4. The frequency of communication
      5. (Optional) Consider validating the results with the stakeholders, if not present.
      6. Document the results in the Agile Requirements Workbook and include in Agile Requirements Playbook.
      7. Revisit as needed, whether at the beginning of a new initiative, or over time, to ensure the content is still valid.

    Input

    • Participant knowledge and experience

    Output

    • A plan for communicating with stakeholders

    Materials

    • Agile Requirements Workbook

    Participants

    • Business Analyst(s)
    • Project Team

    Step 4.2

    Develop a Roadmap for Next Steps

    Activities

    4.2.1 Develop your Agile requirements action plan

    4.2.2 Prioritize with now, next, later

    This step involves the following participants:

    • Business Analyst(s)
    • Project Team
    • Sponsor/Executive
    • Relevant Stakeholders

    Outcomes of this step

    • A comprehensive and prioritized list of opportunities and improvements to be made to mature the Agile requirements practice.

    Planning Your Next Steps

    Identify opportunities to improve and close gaps

    Maturing at multiple levels

    With a mindset of continuous improvement, there is always some way we can get better.

    As you mature your Agile requirements practice, recognize that those gaps for improvement can come from multiple levels, from the organizational down to the individual.

    Each level will bring challenges and opportunities.

    The organization

    • Organizational culture
    • Organizational behavior
    • Political will
    • Unsupportive stakeholders

    The team

    • Current ways of working
    • Team standards, norms and values

    The individual

    • Practitioner skills
    • Practitioner experience
    • Level of training received

    Make sure your organization is ready to transition to Agile requirements management

    A cycle is depicted, with the following Terms: Learning; Automation; Integrated teams; Metrics and governance; Culture.

    Learning:

    Agile is a radical change in how people work
    and think. Structured, facilitated learning is required throughout the transformation to
    help leaders and practitioners go from

    doing Agile to being Agile.

    Automation:

    While Agile is tool-agnostic at its roots, Agile work management tools and DevOps inspired SDLC tools that have become a key part of Agile practices.

    Integrated Teams:


    While temporary project teams can get some benefits from Agile, standing, self-organizing teams that cross business, delivery, and operations are essential to gain the full benefits of Agile.

    Metrics and Governance:

    Successful Agile implementations
    require the disciplined use

    of delivery and operations
    metrics that support governance focused on developing better teams.

    Culture:

    Agile teams believe that value is best created by standing, self-organizing cross-functional teams who deliver sustainably in frequent,
    short increments supported by leaders
    who coach them through challenges.

    Info-Tech Insight

    Agile gaps may only have a short-term, perceived benefit. For example, coding without a team mindset can allow for maximum speed to market for a seasoned developer. Post-deployment maintenance initiatives, however, often lock the single developer as no one else understands the rationale for the decisions that were made.

    4.2.1 Develop your Agile requirements action plan

    Estimated time: 60 Minutes

    1. Gather all relevant stakeholder to create a road map and action plan for requirements management.
    2. Have a team member facilitate the session using the results of the Agile Requirements Maturity Assessment.
    3. Identify gaps from current to future state and brainstorm possible actions that can be taken to address those gaps. Resist the urge to analyze or discuss the feasibility of each idea at this stage. The intent is idea generation.
    4. When the group has exhausted all ideas, the facilitator should group like ideas together, with support from participants. Discuss any ideas that are unclear or ambiguous.
    5. Document the results in the Agile Requirements Workbook.

    Note: the feasibility and timing of the ideas will happen in the following "Now, Next, Later" exercise.

    Prioritize your roadmap

    Taking steps to mature your Agile requirements practice.

    An image of the Now; Next; Later technique.

    The "Now, Next, Later" technique is a method for prioritizing and planning improvements or tasks. This involves breaking down a list of tasks or improvements into three categories:

    • "Now" tasks are those that must be completed immediately. These tasks are usually urgent or critical, and they must be completed to keep the project or organization running smoothly.
    • "Next" tasks are those that should be completed soon. These tasks are not as critical as "now" tasks, but they are still important and should be tackled relatively soon.
    • "Later" tasks are those that can be completed later. These tasks are less critical and can be deferred without causing major problems.

    By using this technique, you can prioritize and plan the most important tasks first, while also allowing for flexibility and the ability to adjust plans as necessary.
    This process also helps you get a clear picture on what needs to be done first and what can be done later. This way you can work on the most important things first, and keep track of what you need to do next, for keeping the development/improvement process smooth and efficient.

    Monitor your progress

    Monitoring progress is important in achieving your target state. Be deliberate with your actions, to continue to mature your Agile requirements practice.

    As you navigate toward your target state, continue to monitor your progress, your successes, and your challenges. As your Agile requirements practice matures, you should see improvements in the stated metrics below.

    Establish a cadence to review these metrics, as well as how you are progressing on your roadmap, against the plan.

    This is not about adding work, but rather, about ensuring you're heading in the right direction; finding the balance in your Agile requirements practice.

    Metric
    Team satisfaction (%) Expect team satisfaction to increase as a result of clearer role delineation and value contribution.
    Stakeholder satisfaction (%) Expect stakeholder satisfaction to similarly increase, as requirements quality increases, bringing increased value.
    Requirements rework Measures the quality of requirements from your Agile projects. Expect that the requirements rework will decrease, in terms of volume/frequency.
    Cost of documentation Quantifies the cost of documentation, including elicitation, analysis, validation, presentation, and management.
    Time to delivery Balancing metric. We don't want improvements in other at the expense of time to delivery.

    Appendix

    Research Contributors and Experts

    This is a picture of Emal Bariali

    Emal Bariali
    Business Architect & Business Analyst
    Bariali Consulting

    Emal Bariali is a Senior Business Analyst and Business Architect with 17 years of experience, executing nearly 20 projects. He has experience in both waterfall and Agile methodologies and has delivered solutions in a variety of forms, including custom builds and turnkey projects. He holds a Master's degree in Information Systems from the University of Toronto, a Bachelor's degree in Information Technology from York University, and a post-diploma in Software & Database Development from Seneca College.

    This is a picture of Paula Bell

    Paula Bell
    Paula A. Bell Consulting, LLC

    Paula Bell is the CEO of Paula A Bell Consulting, LLC. She is a Business Analyst, Leadership and Career Development coach, consultant, speaker, and author with 21+ years of experience in corporate America in project roles including business analyst, requirements manager, business initiatives manager, business process quality manager, technical writer, project manager, developer, test lead, and implementation lead. Paula has experience in a variety of industries including media, courts, manufacturing, and financial. Paula has led multiple highly-visible multi-million-dollar technology and business projects to create solutions to transform businesses as either a consultant, senior business analyst, or manager.

    Currently she is Director of Operations for Bridging the Gap, where she oversees the entire operation and their main flagship certification program.

    This is a picture of Ryan Folster

    Ryan Folster
    Consulting Services Manager, Business Analysis
    Dimension Data

    Ryan Folster is a Business Analyst Lead and Product Professional from Johannesburg, South Africa. His strong focus on innovation and his involvement in the business analysis community have seen Ryan develop professionally from a small company, serving a small number of users, to large multi-national organizations. Having merged into business analysis through the business domain, Ryan has developed a firm grounding and provides context to the methodologies applied to clients and projects he is working on. Ryan has gained exposure to the Human Resources, Asset Management, and Financial Services sectors, working on projects that span from Enterprise Line of Business Software to BI and Compliance.

    Ryan is also heavily involved in the local chapter of IIBA®; having previously served as the chapter president, he currently serves as a non-executive board member. Ryan is passionate about the role a Business Analyst plays within an organization and is a firm believer that the role will develop further in the future and become a crucial aspect of any successful business.

    This is a picture of Filip Hendrickx

    Filip Hendrickx
    Innovating BA, Visiting Professor @ VUB
    altershape

    Filip loves bridging business analysis and innovation and mixes both in his work as speaker, trainer, coach, and consultant.

    As co-founder of the BA & Beyond Conference and IIBA Brussels Chapter president, Filip helps support the BA profession and grow the BA community in and around Belgium. For these activities, Filip received the 2022 IIBA® EMEA Region Volunteer of the Year Award.

    Together with Ian Richards, Filip is the author ofBrainy Glue, a business novel on business analysis, innovation and change. Filip is also co-author of the BCS book Digital Product Management and Cycles, a book, method and toolkit enabling faster innovation.

    This is a picture of Fabricio Laguna

    Fabricio Laguna
    Professional Speaker, Consultant, and Trainer
    TheBrazilianBA.com

    Fabrício Laguna, aka The Brazilian BA, is the main reference on business analysis in Brazil. Author and producer of videos, articles, classes, lectures, and playful content, he can explain complex things in a simple and easy-to-understand way. IIBA Brazil Chapter president between 2012-2022. CBAP, AAC, CPOA, PMP, MBA. Consultant and instructor for more than 25 years working with business analysis, methodology, solution development, systems analysis, project management, business architecture, and systems architecture. His online courses are approved by students from 65 countries.

    This is a picture of Ryland Leyton

    Ryland Leyton
    Business Analyst and Agile Coach
    Independent Consultant

    Ryland Leyton, CBAP, PMP, CSM, is an avid Agile advocate and coach, business analyst, author, speaker, and educator. He has worked in the technology sector since 1998, starting off with database and web programming, gradually moving through project management and finding his passion in the BA and Agile fields. He has been a core team member of the IIBA Extension to the BABOK and the IIBA Agile Analysis Certification. Ryland has written popular books on agility, business analysis, and career. He can be reached at www.RylandLeyton.com.

    This is a picture of Steve Jones

    Steve Jones
    Supervisor, Market Support Business Analysis
    ISO New England

    Steve is a passionate analyst and BA manager with more than 20 years of experience in improving processes, services and software, working across all areas of software development lifecycle, business change and business analysis. He rejoices in solving complex business problems and increasing process reproducibility and compliance through the application of business analysis tools and techniques.

    Steve is currently serving as VP of Education for IIBA Hartford. He is a CBAP, certified SAFe Product Owner/Product Manager, Six Sigma Green Belt, and holds an MS in Information Management and Communications.

    This is a picture of Angela Wick

    Angela Wick
    Founder
    BA-Squared and BA-Cube

    Founder of BA-Squared and BA-Cube.com, Angela is passionate about teaching practical, modern product ownership and BA skills. With over 20 years' experience she takes BA skills to the next level and into the future!
    Angela is also a LinkedIn Learning instructor on Agile product ownership and business analysis, an IC-Agile Authorized Trainer, Product Owner and BA highly-rated trainer, highly-rated speaker, sought-after workshop facilitator, and contributor to many industry publications, including:

    • IIBA BABOK v3 Core Team, leading author on the BABOK v3
    • Expert Reviewer, IIBA Agile Extension to the BABOK
    • PMI BA Practice Guide – Expert Reviewer
    • PMI Requirements Management Practice Guide – Expert Reviewer
    • IIBA Competency Model – Lead Author and Team Lead, V1, V2, and V3.

    This is a picture of Rachael Wilterdink

    Rachael Wilterdink
    Principal Consultant
    Infotech Enterprises

    Rachael Wilterdink is a Principal Consultant with Infotech Enterprises. With over 25 years of IT experience, she holds multiple business analysis and Agile certifications. As a consultant, Rachael has served clients in the financial, retail, manufacturing, healthcare, government, non-profit, and insurance industries. Giving back to the professional community, Ms. Wilterdink served on the boards of her local IIBA® and PMI® chapters. As a passionate public speaker, Rachael presents various topics at conferences and user groups across the country and the world. Rachael is also the author of the popular eBook "40 Agile Transformation Pain Points (and how to avoid or manage them)."

    Bibliography

    "2021 Business Agility Report: Rising to the Challenge." Business Agility, 2021. Accessed 13 June 2022.
    Axure. "The Pitfalls of Agile and How We Got Here". Axure. Accessed 14 November 2022.
    Beck, Kent, et al. "Manifesto for Agile Software Development." Agilemanifesto. 2001.
    Brock, Jon, et al. "Large-Scale IT Projects: From Nightmare to Value Creation." BCG, 25 May 2015.
    Bryar, Colin and Bill Carr. "Have We Taken Agile Too Far?" Harvard Business Review, 9 April 2021. Accessed 11 November, 2022.
    Clarke, Thomas. "When Agile Isn't Responsive to Business Goals" RCG Global Services, Accessed 14 November 2022.
    Digital.ai "The 15th State of Agile Report". Digital.ai. Accessed 21 November 2022.
    Hackshall, Robin. "Product Backlog Refinement." Scrum Alliance. 9 Oct. 2014.
    Hartman, Bob. "New to Agile? INVEST in good user stories." Agile For All.
    IAG Consulting. "Business Analysis Benchmark: Full Report." IAG Consulting, 2009.
    Karlsson, Johan. "Backlog Grooming: Must-Know Tips for High-Value Products." Perforce. 18 May 2018
    KPMG. Agile Transformation (2019 Survey on Agility). KPMG. Accessed November 29.
    Laguna, Fabricio "REQM guidance matrix: A framework to drive requirements management", Requirements Engineering Magazine. 12 September 2017. Accessed 10 November 2022.
    Miller, G. J. (2013). Agile problems, challenges, & failures. Paper presented at PMI® Global Congress 2013—North America, New Orleans, LA. Newtown Square, PA: Project Management Institute.
    Product Management: MoSCoW Prioritization." ProductPlan, n.d. Web.
    Podeswa, Howard "The Business Case for Agile Business Analysis" Requirements Engineering Magazine. 21 February 2017. Accessed 7 November 2022.
    PPM Express. "Why Projects Fail: Business Analysis is the Key". PPM Express. Accessed 16 November 2022.
    Reifer, Donald J. "Quantitative Analysis of Agile Methods Study: Twelve Major Findings." InfoQ, 6 February, 2017.
    Royce, Dr. Winston W. "Managing the Development of Large Software Systems." Scf.usc.edu. 1970. (royce1970.pdf (usc.edu))
    Rubin, Kenneth S. Essential Scrum: A Practical Guide to the Most Popular Agile Process. Pearson Education. 2012.
    Singer, Michael. "15+ Surprising Agile Statistics: Everything You Need To Know About Agile Management". Enterprise Apps Today. 22 August 2022.
    The Standish Group. The Chaos Report, 2015. The Standish Group.

    Where do I go next?

    Improve Requirements Gathering

    Back to basics: great products are built on great requirements.

    Make the Case for Product Delivery

    Align your organization on the practices to deliver what matters most.

    Requirements for Small and Medium Enterprises

    Right-size the guidelines of your requirements gathering process.

    Implement Agile Practices that Work

    Improve collaboration and transparency with the business to minimize project failure.

    Create an Agile-Friendly Gating and Governance Model

    Use Info-Tech's Agile Gating Framework as a guide to gating your Agile projects following a "trust but verify" approach.

    Make Your IT Governance Adaptable

    Governance isn't optional, so keep it simple and make it flexible.

    Deliver on Your Digital Product Vision

    Build a product vision your organization can take from strategy through execution.

    Implement a Social Media Program

    • Buy Link or Shortcode: {j2store}560|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions
    • IT is being caught in the middle of various business units, all separately attempting to create, staff, implement, and instrument a social media program.
    • Requests for procuring social media tools and integrating with CRM systems are coming from all directions, with no central authority governing a social media program or coordinating business goals.
    • Public Relations and Corporate Communications groups have been acting as the first level of response to social media channels since the company’s first Twitter account went live, but the volume of inquiries received through social channels has become too great for these groups to continue in a first responder role.

    Our Advice

    Critical Insight

    • Social media immaturity is an opportunity for IT leadership. As with so many of the “next new things,” IT has an opportunity to help the business understand social media technologies, trends, and risks, and coordinate efforts to approach social media as a united company.
    • Social media maturity must reach the Social Media Steering Committee stage before major investments in technology can proceed. As with all business initiatives, technology automation decisions cannot be made without respect to organizational and process maturity. Social media strategy stakeholders must join together and form a steering committee to create policies and procedures, govern strategy, develop workflows, and facilitate technology selection processes. IT not only belongs on such a steering committee, but it can also be instrumental in the formation of it.
    • Info-Tech’s research repeatedly indicates that the greatest return from social media investments is in the customer service domain, by reacting to incoming social inquiries and proactively listening to social conversations for product and service inquiry opportunities. This means CRM integration is essential to long-term social media program success.

    Impact and Result

    • Assess your organization’s social maturity to know where to begin and where to go in implementation of a social media program.
    • Form a social media steering committee to bring order to chaos among different business units.
    • Develop comprehensive workflows to categorize and prioritize inquiries, and then route them to the appropriate part of the business for resolution.
    • Consider creating one or more physical social media command centers to process large volumes of social inquiries more efficiently and monitor real-time social media metrics to improve critical response times.

    Implement a Social Media Program Research & Tools

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

    1. Assess your organization's social maturity

    Know where to begin and where to go in implementation of a social media program.

    • Storyboard: Implement a Social Media Program
    • Social Media Maturity Assessment Tool

    2. Form a social media steering committee

    Bring order to chaos among different business units.

    • Social Media Steering Committee Charter Template
    • Social Media Acceptable Use Policy
    • Blogging and Microblogging Guidelines Template

    3. Consider creating one or more physical social media command centers

    Process large volumes of social inquiries more efficiently, and monitor real-time social media metrics to improve critical response times.

    • Social Media Representative
    • Social Media Manager
    [infographic]

    Mergers & Acquisitions: The Sell Blueprint

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    • Parent Category Name: IT Strategy
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    There are four key scenarios or entry points for IT as the selling/divesting organization in M&As:

    • IT can suggest a divestiture to meet the business objectives of the organization.
    • IT is brought in to strategy plan the sale/divestiture from both the business’ and IT’s perspectives.
    • IT participates in due diligence activities and complies with the purchasing organization’s asks.
    • IT needs to reactively prepare its environment to enable the separation.

    Consider the ideal scenario for your IT organization.

    Our Advice

    Critical Insight

    Divestitures 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 sale/divestiture 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 Sell Blueprint Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how your organization can excel its reduction 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
    • Service Catalog Internal Service Level Agreement Template

    2. Discovery & Strategy

    Create a standardized approach for how your IT organization should address divestitures or sales.

    • One-Pager: M&A Discovery & Strategy – Sell
    • Case Study: M&A Discovery & Strategy – Sell

    3. Due Diligence & Preparation

    Comply with due diligence, prepare the IT environment for carve-out possibilities, and establish the separation project plan.

    • One-Pager: M&A Due Diligence & Preparation – Sell
    • Case Study: M&A Due Diligence & Preparation – Sell
    • IT Due Diligence Charter
    • IT Culture Diagnostic
    • M&A Separation Project Management Tool (SharePoint)
    • SharePoint Template: Step-by-Step Deployment Guide
    • M&A Separation Project Management Tool (Excel)

    4. Execution & Value Realization

    Deliver on the separation project plan successfully and communicate IT’s transaction value to the business.

    • One-Pager: M&A Execution & Value Realization – Sell
    • Case Study: M&A Execution & Value Realization – Sell

    Infographic

    Workshop: Mergers & Acquisitions: The Sell 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 divesting or selling.

    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 Understand the rationale for the company's decision to pursue a divestiture or sale.

    1.4 Assess the IT/digital strategy.

    1.5 Identify pain points and opportunities tied to the divestiture/sale.

    1.6 Create the IT vision statement and mission statement 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 separation strategy.

    1.11 Conduct a RACI.

    1.12 Create the communication plan.

    1.13 Prepare to assess target organizations.

    Outputs

    Business perspectives of IT

    Stakeholder network map for M&A transactions

    Business context implications for IT

    IT’s divestiture/sale strategic direction

    Governance structure

    M&A program metrics

    IT valuation framework

    Separation strategy

    RACI

    Communication plan

    Prepared to assess target organization(s)

    2 Mid-Transaction Due Diligence & Preparation

    The Purpose

    Establish the foundation.

    Discover the motivation for separation.

    Identify expectations and create the carve-out roadmap.

    Prepare and manage employees.

    Plan the separation roadmap.

    Key Benefits Achieved

    All major stakeholders are on the same page.

    Methodology identified to enable compliance during due diligence.

    Employees are set up for a smooth and successful transition.

    Separation 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 divestiture/sale.

    2.3 Establish the separation 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 Create a carve-out roadmap.

    2.7 Create a service/technical transaction agreement.

    2.8 Measure staff engagement.

    2.9 Assess the current culture and identify the goal culture.

    2.10 Create employee transition and functional workplans.

    2.11 Establish the separation roadmap.

    2.12 Establish and align project metrics with identified tasks.

    2.13 Estimate integration costs.

    Outputs

    Stakeholder map

    IT strategy assessed

    IT operating model and IT governance structure defined

    Business context implications for IT

    Separation strategy

    Due diligence charter

    Data room artifacts

    Carve-out roadmap

    Service/technical transaction agreement

    Engagement assessment

    Culture assessment

    Employee transition and functional workplans

    Integration roadmap and associated resourcing

    3 Post-Transaction Execution & Value Realization

    The Purpose

    Establish the transaction foundation.

    Discover the motivation for separation.

    Plan the separation roadmap.

    Prepare employees for the transition.

    Engage in separation.

    Assess the transaction outcomes.

    Key Benefits Achieved

    All major stakeholders are on the same page.

    Separation activities are planned and assigned.

    Employees are set up for a smooth and successful transition.

    Separation strategy and roadmap are 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 outline their relationship to the M&A process.

    3.2 Gather and evaluate the M&A strategy, future-state operating model, and governance.

    3.3 Review the business rationale for the divestiture/sale.

    3.4 Establish the separation strategy.

    3.5 Prioritize separation tasks.

    3.6 Establish the separation roadmap.

    3.7 Establish and align project metrics with identified tasks.

    3.8 Estimate separation costs.

    3.9 Measure staff engagement.

    3.10 Assess the current culture and identify the goal culture.

    3.11 Create employee transition and functional workplans.

    3.12 Complete the separation by regularly updating the project plan.

    3.13 Assess the service/technical transaction agreement.

    3.14 Confirm separation costs.

    3.15 Review IT’s transaction value.

    3.16 Conduct a transaction and separation SWOT.

    3.17 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

    Separation strategy

    Separation roadmap and associated resourcing

    Engagement assessment

    Culture assessment

    Employee transition and functional workplans

    Updated separation project plan

    Evaluated service/technical transaction agreement

    SWOT of transaction

    M&A Sell Playbook refined for future transactions

    Further reading

    Mergers & Acquisitions: The Sell Blueprint

    For IT leaders who want to have a role in the transaction process when their business is engaging in an M&A sale or divestiture.

    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 selling/divesting organization in M&As:

    • IT can suggest a divestiture to meet the business objectives of the organization.
    • IT is brought in to strategy plan the sale/divestiture from both the business’ and IT’s perspectives.
    • IT participates in due diligence activities and complies with the purchasing organization’s asks.
    • IT needs to reactively prepare its environment to enable the separation.

    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 is 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 sale/divestiture 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)

    71% of technology companies anticipate that divestitures will take place as a result of the COVID-19 pandemic. (EY, 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), let alone separation.
      • Two-thirds of the time, the divesting organization and acquiring organization will either fail together or succeed together (McKinsey, 2015).
      • 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 separation 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)

    “Solutions exist that can save well above 50 percent on divestiture costs, while ensuring on-time delivery.” (Source: SNP)

    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 a sale or divestiture to meet the business objectives of the organization.
    2. Business Partner: IT is brought in to strategy plan the sale/divestiture from both the business’ and IT’s perspective.
    3. Trusted Operator: IT participates in due diligence activities and complies with the purchasing organization’s asks.
    4. Firefighter: IT needs to reactively prepare its environment in order to enable the separation.

    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.

    Selling vs. buying

    The M&A process approach differs depending on whether you are the selling or buying organization

    This blueprint is only focused on the sell side:

    • 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.

    The buy side is focused on:

    • 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.

    For more information on acquisitions or purchases, check out Info-Tech’s Mergers & Acquisitions: The Buy 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 Selling 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 Separation or Sale
    1. Engage in Due Diligence and Prepare Staff
    2. Prepare to Separate
    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 divestitures or sales.

    Comply with due diligence, prepare the IT environment for carve-out possibilities, and establish the separation project plan.

    Deliver on the separation project plan successfully and communicate IT’s transaction value to the business.

    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 separation
    • $ Accurate IT budget estimates
    • % Revenue growth directly tied to IT delivery
    • % Profit margin growth

    IT's role in the selling transaction

    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

      Sellers often only provide 15 to 30 days for the acquiring organization to decide (Forbes, 2018), increasing the necessity of accurate pricing.
    • Faster Integration

      36% of CIOs have visibility into only business unit data, making the divestment a challenge (EY, 2021).
    • 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 prepare the IT environment for potential carve-out and separations, ensuring risk management concerns are brought to the business’ attention immediately.
    • Create a comprehensive list of items that IT needs to do during the separation that can be prioritized and actioned.

    Business Benefits

    • The business will get accurate and relevant information about its IT environment in order to sell or divest the company to the highest bidder for a true price.
    • Fewer business interruptions will happen, because IT can accurately plan for and execute the high-priority separation tasks.
    • The business can obtain a high-value offer for the components of IT being sold and can measure the ongoing value the sale will bring.

    Insight summary

    Overarching Insight

    IT controls if and when it gets invited to support the business through a purchasing growth transaction. Take control of the process, demonstrate the value of IT, and ensure that separation 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 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

    IT often faces unnecessary separation challenges because of a lack of preparation. Secure the IT environment and establish how IT will retain employees early in the transaction process.

    Execution & Value Realization Insight

    IT needs to demonstrate value and cost savings within 100 days of the transaction. The most successful transactions are when IT continuously realizes synergies a year after the transaction and beyond.

    Blueprint deliverables

    Key Deliverable: M&A Sell Playbook

    The M&A Sell Playbook should be a reusable document that enables your IT organization to successfully deliver on any divestiture transaction.

    Screenshots of the 'M and A Sell Playbook' deliverable.

    M&A Sell One-Pager

    See a one-page overview of each phase of the transaction.

    Screenshots of the 'M and A Sell One-Pagers' deliverable.

    M&A Sell Case Studies

    Read a one-page case study for each phase of the transaction.

    Screenshots of the 'M and A Sell Case Studies' deliverable.

    M&A Separation Project Management Tool (SharePoint)

    Manage the separation process of the divestiture/sale using this SharePoint template.

    Screenshots of the 'M and A Separation Project Management Tool (SharePoint)' deliverable.

    M&A Separation Project Management Tool (Excel)

    Manage the separation process of the divestiture/sale using this Excel tool if you can’t or don’t want to use SharePoint.

    Screenshots of the 'M and A Separation 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 business perspectives on 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 divestiture/sale strategic direction.
    • Call #5: Create program metrics and identify a standard separation strategy.
    • Call #6: Prepare to carve out the IT environment.
    • Call #7: Identify the separation 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 divestiture/sale transaction.

    The Sell 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 Reduction Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Separation or Sale
    • 3.1 Engage in Due Diligence and Prepare Staff
    • 3.2 Prepare to Separate
    • 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 reduction 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 selling 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 relationship indicators 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: M&A Sell Playbook, CEO-CIO Alignment diagnostic

    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 transactions or support your rationale in recommending transactions.

    Download the sample report.

    Record the results in the M&A Sell 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: M&A Buy Playbook, CIO Business Vision diagnostic

    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 Sell 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: Flip charts, Markers, Sticky notes, M&A Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 Sell 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 multiplication of: (# 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)

    5. 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.
    6. Calculate the net value of applications by subtracting the total IT and business costs from the total application value calculated in step 3.
    7. 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

    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 Sell 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 Sell 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 Sell 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 reduction 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 reduction 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 Sell 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 Sell 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 reduction strategy

    Materials: Computer, Whiteboard and markers, M&A Sell 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 Sell Playbook.

    1.3.3 Recommend reduction 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 Sell 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 your organizations’ IT environment as an asset and reason why the divestiture or sale should happen, suggesting the opportunity yourself.

    Record the results in the M&A Sell Playbook.

    By the end of this Proactive phase, you should:

    Be prepared to suggest M&A opportunities to support your company’s goals through sale or divestiture 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 sale or divestiture strategies.

    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
    • Sale or divestiture recommendations

    The Sell 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 Reduction Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Separation or Sale
    • 3.1 Engage in Due Diligence and Prepare Staff
    • 3.2 Prepare to Separate
    • 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 separation 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 Divesting or SellingFormalize 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 decision to pursue a divestiture or sale
    • 1.1 Review the business rationale for the divestiture/sale
    • 1.2 Assess the IT/digital strategy
    • 1.3 Identify pain points and opportunities tied to the divestiture/sale
    • 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 separation 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 divestiture/sale strategic direction
    1. Operating model for future state
    2. Transition team
    3. Governance structure
    4. M&A program metrics
    1. IT valuation framework
    1. Separation 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 a sale or divestiture is a unique opportunity for many IT organizations. IT organizations that can participate in the transaction at this stage are likely considered a strategic partner of the business.

    For one-off sales/divestitures, IT being invited during this stage of the process is rare. However, for organizations that are preparing to engage in many divestitures 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 may be asked to participate in ensuring that the IT environment is able to quickly and easily carve out components/business lines and deliver on service-level agreements (SLAs).

    Goal: To identify a repeatable program plan that IT can leverage when selling or divesting all or parts of the current 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 relationship 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 decision to pursue a sale or divestiture and the opportunities or pain points the sale 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 sales/divestitures.

    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 reduction strategies tied to mergers, acquisitions, and divestitures

    Materials: Flip charts/whiteboard, Markers, M&A Sell 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 reduction 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 reduction process.

    Record the results in the M&A Sell 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. Separation for Success We will create a carve-out strategy that enables the organization and clearly communicates the resources required to succeed.
    4. Managed Data We will handle data creation, modification, separation, and use across the enterprise in compliance with our data governance policy.
    5.Deliver Better Customer Service We will reduce the number of products offered by IT, enabling a stronger focus on specific products or elements to increase customer service delivery.
    6. Compliance With Laws and Regulations We will operate in compliance with all applicable laws and regulations for both our organization and the potentially purchasing 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. Value Generator We will leverage the current IT people, processes, and technology to turn the IT organization into a value generator by developing and selling our services to purchasing organizations.

    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 reduction strategies tied to mergers, acquisitions, and divestitures

    Materials: Flip charts/whiteboard, Markers, M&A Sell 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 reduction 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 reduction process.
    4. Review the guiding principles every six months to ensure they continue to support the delivery of the business’ reduction strategy goals.

    Record the results in the M&A Sell 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 separation 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 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 IT Transaction Team.

    Employees who have a significant role in ensuring that these capabilities are being delivered will be a top priority.

    Infrastructure & Operations

    • System Separation
    • Data Management
    • Helpdesk/Desktop Support
    • Cloud/Server 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 for divesting organizations

    Materials: Operating model, Capability overlay, Flip charts/whiteboard, Markers, M&A Sell 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 divestiture transaction. If your organization plans to sell in its entirety, you may choose to skip this activity.

    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 divesting transaction process and separation. Highlight and make copies of those capabilities in the M&A Sell Playbook. As a result of divesting, there may also be capabilities that will become irrelevant in your future state.
    3. 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, products, or locations to better understand needs and deliver on the capability.

    An example operating model is included in the M&A Sell Playbook. This process benefits from strong reference architecture and capability mapping ahead of time.

    Record the results in the M&A Sell 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 Sell 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 separation 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 Sell 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 Sell 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 separation on a budget that is the same or lower than the budget estimated during due diligence.
    • Meeting or improving on IT time-to-separation estimates: Delivering successful IT carve-out 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 separation on a budget that is the same or lower than the budget estimated during due diligence.
    • Meeting or improving on IT time-to-separation estimates: Delivering successful IT carve-out 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., as a result of divesting lines of the business and selling service-level agreements to the purchasing organization.
    • 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 separation
    • $ 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 Sell 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 Sell Playbook.

    Discovery & Strategy

    Step 2.2

    Prepare IT to Engage in the Separation or Sale

    Activities

    • 2.2.1 Establish the separation 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 separation/sale and align IT’s separation/sale strategy with the business’ M&A strategy.

    Separation strategies

    There are several IT separation strategies that will let you achieve your target technology environment.

    IT Separation Strategies
    • Divest. Carve out elements of the IT organization and sell them to a purchasing organization with or without a service-level agreement.
    • Sell. Sell the entire IT environment to a purchasing organization. The purchasing organization takes full responsibility in delivering and running the IT environment.
    • Spin-Off Joint Venture. Carve out elements of the IT organization and combine them with elements of a new or purchasing organization to create a new entity.

    The approach IT takes will depend on the business objectives for the M&A.

    • Generally speaking, the separation strategy is well understood and influenced by the frequency of and rationale for selling.
    • Based on the initiatives generated by each business process owner, you need to determine the IT separation strategy that will best support the desired target technology environment, especially if you are still operating or servicing elements of that IT environment.

    Key considerations when choosing an IT separation strategy include:

    • What are the main business objectives of the M&A?
    • What are the key synergies expected from the transaction?
    • What IT separation strategy best helps obtain these benefits?
    • What opportunities exist to position the business for sustainable and long-term growth?

    Separation strategies in detail

    Review highlights and drawbacks of different separation strategies

    Divest
      Highlights
    • Recommended for businesses striving to reduce costs and potentially even generate revenue for the business through the delivery of SLAs.
    • Opportunity to reduce or scale back on lines of business or products that are not driving profits.
      Drawbacks
    • May be forced to give up critical staff that have been known to deliver high value.
    • The IT department is left to deliver services to the purchasing organization with little support or consideration from the business.
    • There can be increased risk and security concerns that need to be addressed.
    Sell
      Highlights
    • Recommended for businesses looking to gain capital to exit the market profitably or to enter a new market with a large sum of capital.
    • The business will no longer exist, and as a result all operational costs, including IT, will become redundant.
      Drawbacks
    • IT is no longer needed as an operating or capital service for the organization.
    • Lost resources, including highly trained and critical staff.
    • May require packaging employees off and using the profit or capital generated to cover any closing costs.
    Spin-Off or Joint Venture
      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.
      Drawbacks
    • As much as the organization is going through a separation from the original company, it will be going through an integration with the new company.
    • There could be differences in culture.
    • This could require a large amount of investment without a guarantee of profit or success.

    2.2.1 Establish the separation strategy

    1-2 hours

    Input: Business separation strategy, Guiding principles, M&A governance

    Output: IT’s separation strategy

    Materials: Flip charts/whiteboard, Markers, M&A Sell Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to determine IT’s approach to separating or selling. This approach might differ slightly from transaction to transaction. However, the businesses approach to transactions should give insight into the general separation 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 separation.
    2. Review and discuss the highlights and drawbacks of each type of separation.
    3. Use Info-Tech’s Separation Posture Selection Framework on the next slide to select the separation 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 separation best helps obtain these benefits?

    Record the results in the M&A Sell Playbook.

    Separation Posture Selection Framework

    Business M&A Strategy

    Resultant Technology Strategy

    M&A Magnitude (% of Seller Assets, Income, or Market Value)

    IT Separation Posture

    A. Horizontal Adopt One Model ‹100% Divest
    ›99% Sell
    B. Vertical Create Links Between Critical Systems Any Divest
    C. Conglomerate Independent Model Any Joint Venture
    Divest
    D. Hybrid: Horizontal & Conglomerate Create Links Between Critical Systems Any Divest
    Joint Venture

    M&A separation strategy

    Business M&A Strategy Resultant Technology Strategy M&A Magnitude (% of Seller Assets, Income, or Market Value) IT Separation Posture

    You may need a hybrid separation posture to achieve the technology end state.

    M&A objectives may not affect all IT domains and business functions in the same way. Therefore, the separation requirements for each business function may differ. Organizations will often choose to select and implement a hybrid separation posture to realize the technology end state.

    Each business division may have specific IT domain and capability needs that require an alternative separation strategy.

    • Example: Even when conducting a joint venture by forming a new organization, some partners might view themselves as the dominant partner and want to influence the IT environment to a greater degree.
    • Example: Some purchasing organizations will expect service-level agreements to be available for a significant period of time following the divestiture, while others will be immediately independent.

    2.2.2 Conduct a RACI

    1-2 hours

    Input: IT capabilities, Transition team, Separation strategy

    Output: Completed RACI for Transition team

    Materials: Reference architecture, Organizational structure, Flip charts/whiteboard, Markers, M&A Sell 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 sale or separation. For example:
      • Communicate with the company M&A team.
      • Identify the key IT solutions that can and cannot be carved out.
      • Gather data room artifacts and provide them to acquiring organization.
    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 Sell 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 separation strategy, RACI

    Output: IT’s M&A communication plan

    Materials: Flip charts/whiteboard, Markers, RACI, M&A Sell 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 Sell 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 Sell 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 the business is pursuing a sale and IT has to assess the IT organization. As a result, having a standardized template to quickly assess the potential acquiring organization is important.

    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 employees. It will also give insight into positive or negative employee experiences that could impact retention.
    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. Will your organization or employee skills be required to support these long term?

    Info-Tech Insight

    Assessing potential organizations is not just for the purchaser. The seller should also know what the purchasing organization’s history with M&As is and what potential risks could occur if remaining connected through ongoing SLAs.

    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 selling or divesting

    Materials: M&A Sell Playbook

    Participants: IT executive/CIO

    The purpose of this activity is to assess the organization(s) that your organization is considering selling or divesting to.

    1. Complete the Historical Valuation Worksheet in the M&A Sell Playbook to understand the type of IT organization that your company may support.
      • 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 could be the right organizations to sell or divest to.

    Record the results in the M&A Sell 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 reduction transactions

    Key outcomes from the Discovery & Strategy phase
    • Prepare the IT environment to support the potential sale or divestiture by identifying critical program plan elements and establishing a separation or carve-out strategy that will enable the business to reach its goals.
    • 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 separation strategy framework
    • Conduct a RACI for key transaction tasks for the transaction team
    • Document the communication plan

    M&A Sell 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 Reduction Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Separation or Sale
    • 3.1 Engage in Due Diligence and Prepare Staff
    • 3.2 Prepare to Separate
    • 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
    • Gather data room artifacts
    • Measure staff engagement
    • Assess culture
    • Create a carve-out roadmap
    • Prioritize separation tasks
    • Establish the separation roadmap
    • Identify the buyer’s IT expectations
    • Create a service/transaction agreement
    • Estimate separation 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
    • Purchasing 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 SeparationIdentify Expectations and Create the Carve-Out RoadmapPrepare and Manage EmployeesPlan the Separation RoadmapNext Steps and Wrap-Up (offsite)

    Activities

    • 0.1 Identify the rationale for the company's decision to pursue a divestiture/sale.
    • 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 divestiture/sale.
    • 1.2 Identify pain points and opportunities tied to the divestiture/sale.
    • 1.3 Establish the separation strategy.
    • 1.4 Create the due diligence charter.
    • 2.1 Identify the buyer’s IT expectations.
    • 2.2 Create a list of IT artifacts to be reviewed in the data room.
    • 2.3 Create a carve-out roadmap.
    • 2.4 Create a service/technical transaction agreement.
    • 3.1 Measure staff engagement.
    • 3.2 Assess the current culture and identify the goal culture.
    • 3.3 Create an employee transition plan.
    • 3.4 Create functional workplans for employees.
    • 4.1 Prioritize separation tasks.
    • 4.2 Establish the separation roadmap.
    • 4.3 Establish and align project metrics with identified tasks.
    • 4.4 Estimate separation 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. Separation strategy
    3. Due diligence charter
    1. Data room artifacts identified
    2. Carve-out roadmap
    3. Service/technical transaction agreement
    1. Engagement assessment
    2. Culture assessment
    3. Employee transition plans and workplans
    1. Separation roadmap and associated resourcing
    1. Divestiture separation strategy for IT

    What is the Due Diligence & Preparation phase?

    Mid-transaction state

    The Due Diligence & Preparation phase during a sale or divestiture is a critical time for IT. If IT fails to proactively participate in this phase, IT will have to merely react to separation expectations set by the business.

    If your organization is being sold in its entirety, staff will have major concerns about their future in the new organization. Making this transition as smooth as possible and being transparent could go a long way in ensuring their success in the new organization.

    In a divestiture, this is the time to determine where it’s possible for the organization to divide or separate from itself. A lack of IT involvement in these conversations could lead to an overcommitment by the business and under-delivery by IT.

    Goal: To ensure that, as the selling or divesting organization, you comply with regulations, prepare staff for potential changes, and identify a separation strategy if necessary

    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 decision to pursue a sale or divestiture and what opportunities or pain points the sale should alleviate.
    • Identify the key roles for the transaction team.
    • Identify the M&A governance.
    • Determine target metrics.
    • Select a separation 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

    Engage in Due Diligence and Prepare Staff

    Activities

    • 3.1.1 Drive value with a due diligence charter
    • 3.1.2 Gather data room artifacts
    • 3.1.3 Measure staff engagement
    • 3.1.4 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 prepare and support the business in due diligence and gather the necessary information about staff changes.

    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 separation strategy framework, RACI of key transaction tasks for the transaction team

    Output: IT Due Diligence Charter

    Materials: M&A Sell 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 Sell 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
      • Separation strategy
      • Sale/divestiture 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 Sell Playbook.

    3.1.2 Gather data room artifacts

    4 hours

    Input: Future-state operating model, M&A governance, Target metrics, Selected separation strategy framework, RACI of key transaction tasks for the transaction team

    Output: List of items to acquire and verify can be provided to the purchasing organization while in the data room

    Materials: Critical domain lists on following slides, M&A Sell Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team, Transition team, Legal team, Compliance/privacy officers

    The purpose of this activity is to create a list of the key artifacts that you could be asked for 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.
    2. IT leadership may or may not be asked to enter the data room directly. The short notice for having to find these artifacts for the purchasing organization can leave your IT organization scrambling. Identify the critical items worth obtaining ahead of time.
    3. Once you have identified the artifacts, provide the list to the legal team or compliance/privacy officers and ensure they also agree those items can be provided. If changes to the documents need to be made, take the time to do so.
    4. Store all items in a safe and secure file or provide to the M&A team ahead of due diligence.

    **Note that if your organization is not leading/initiating the data room, then you can ignore this activity.

    Record the results in the M&A Sell Playbook.

    Critical domains

    Understand the key stakeholders and outputs for each domain

    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 separation 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)

    Retain top talent throughout the transition

    Focus on retention and engagement

    • People are such a critical component of this process, especially in the selling organization.
    • Retaining employees, especially the critical employees who hold specific skills or knowledge, will ensure the success and longevity of the divesting organization, purchasing organization, or the new company.
    • Giving employees a role in the organization and ensuring they do not see their capabilities as redundant will be critical to the process.
    • It is okay if employees need to change what they were doing temporarily or even long-term. However, being transparent about these changes and highlighting their value to the process and organization(s) will help.
    • The first step to moving forward with retention is to look at the baseline engagement and culture of employees and the organization. This will help determine where to focus and allow you to identify changes in engagement that resulted from the transaction.
    • Job engagement drivers are levers that influence the engagement of employees in their day-to-day roles.
    • Organizational engagement drivers are levers that influence an employee’s engagement with the broader organization.
    • Retention drivers are employment needs. They don’t necessarily drive engagement, but they must be met for engagement to be possible.

    3.1.3 Measure staff engagement

    3-4 hours

    Input: Engagement survey

    Output: Baseline engagement scores

    Materials: Build an IT Employee Engagement Program

    Participants: IT executive/CIO, IT senior leadership, IT employees of current organization

    The purpose of this activity is to measure current staff engagement to have a baseline to measure against in the future state. This is a good activity to complete if you will be divesting or selling in entirety.

    The results from the survey should act as a baseline to determine what the organization is doing well in terms of employee engagement and what drivers could be improved upon.

    1. Review Info-Tech’s Build an IT Employee Engagement Program research and select a survey that will best meet your needs.
    2. Conduct the survey and note which drivers employees are currently satisfied with. Likewise, note where there are opportunities.
    3. Document actions that should be taken to mitigate the negative engagement drivers throughout the transaction and enhance or maintain the positive engagement drivers.

    Record the results in the M&A Sell Playbook.

    Assess culture as a part of engagement

    Culture should not be overlooked, especially as it relates to the separation 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 separation 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-separation?

    3.1.4 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

    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 the organizations involved. By understanding the culture that exists in the purchasing organization, you can identify the fit and prepare impacted staff for potential changes.

    1. Complete this activity by leveraging the blueprint Fix Your IT Culture, specifically the IT Culture Diagnostic.
    2. 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.
    3. Document the results from tab 3, Results, in the M&A Sell Playbook if you are trying to record all artifacts related to the transaction in one place.
    4. Repeat the activity for the purchasing organization.
    5. Leverage the information to determine what the goal for the culture of IT will be post-separation if it will differ from the current culture.

    Record the results in the M&A Sell Playbook.

    Due Diligence & Preparation

    Step 3.2

    Prepare to Separate

    Activities

    • 3.2.1 Create a carve-out roadmap
    • 3.2.2 Prioritize separation tasks
    • 3.2.3 Establish the separation roadmap
    • 3.2.4 Identify the buyer’s IT expectations
    • 3.2.5 Create a service/transaction agreement
    • 3.2.6 Estimate separation costs
    • 3.2.7 Create an employee transition plan
    • 3.2.8 Create functional workplans for employees
    • 3.2.9 Align project metrics with identified tasks

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Transition team
    • Company M&A team
    • Purchasing organization

    Outcomes of Step

    Have an established plan of action toward separation across all domains and a strategy toward resources.

    Don’t underestimate the importance of separation preparation

    Separation involves taking the IT organization and dividing it into two or more separate entities.

    Testing the carve capabilities of the IT organization often takes 3 months. (Source: Cognizant, 2014)

    Daimler-Benz lost nearly $19 billion following its purchase of Chrysler by failing to recognize the cultural differences that existed between the two car companies. (Source: Deal Room)

    Info-Tech Insight

    Separating the IT organization requires more time and effort than business leaders will know. Frequently communicate challenges and lost opportunities when carving the IT environment out.

    Separation needs

    Identify the business objectives of the sale to determine the IT strategy

    Set up a meeting with your IT due diligence team to:

    • Ensure there will be no gaps in the delivery of products and services in the future state.
    • 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 the involved organizations.
    • Identify the IT people and process gaps, initiatives, and levels of support expected.
    • Determine your infrastructure needs to ensure effectiveness and delivery of services:
      • Does IT have the infrastructure to support the applications and business capabilities?
      • Identify any gaps between the current infrastructure in both organizations and the infrastructure required.
      • Identify any redundancies/gaps.
      • Determine the appropriate IT separation 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 separation.

    Separation strategies

    There are several IT separation strategies that will let you achieve your target technology environment.

    IT Separation Strategies
    • Divest. Carve out elements of the IT organization and sell them to a purchasing organization with or without a service-level agreement.
    • Sell. Sell the entire IT environment to a purchasing organization. The purchasing organization takes full responsibility in delivering and running the IT environment.
    • Spin-Off Joint Venture. Carve out elements of the IT organization and combine them with elements of a new or purchasing organization to create a new entity.

    The approach IT takes will depend on the business objectives for the M&A.

    • Generally speaking, the separation strategy is well understood and influenced by the frequency of and rationale for selling.
    • Based on the initiatives generated by each business process owner, you need to determine the IT separation strategy that will best support the desired target technology environment, especially if you are still operating or servicing elements of that IT environment.

    Key considerations when choosing an IT separation strategy include:

    • What are the main business objectives of the M&A?
    • What are the key synergies expected from the transaction?
    • What IT separation strategy best helps obtain these benefits?
    • What opportunities exist to position the business for sustainable and long-term growth?

    Separation strategies in detail

    Review highlights and drawbacks of different separation strategies

    Divest
      Highlights
    • Recommended for businesses striving to reduce costs and potentially even generate revenue for the business through the delivery of SLAs.
    • Opportunity to reduce or scale back on lines of business or products that are not driving profits.
      Drawbacks
    • May be forced to give up critical staff that have been known to deliver high value.
    • The IT department is left to deliver services to the purchasing organization with little support or consideration from the business.
    • There can be increased risk and security concerns that need to be addressed.
    Sell
      Highlights
    • Recommended for businesses looking to gain capital to exit the market profitably or to enter a new market with a large sum of capital.
    • The business will no longer exist, and as a result all operational costs, including IT, will become redundant.
      Drawbacks
    • IT is no longer needed as an operating or capital service for the organization.
    • Lost resources, including highly trained and critical staff.
    • May require packaging employees off and using the profit or capital generated to cover any closing costs.
    Spin-Off or Joint Venture
      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.
      Drawbacks
    • As much as the organization is going through a separation from the original company, it will be going through an integration with the new company.
    • There could be differences in culture.
    • This could require a large amount of investment without a guarantee of profit or success.

    Preparing the carve-out roadmap

    And why it matters so much

    • When carving out the IT environment in preparation for a divestiture, it’s important to understand the infrastructure, application, and data connections that might exist.
    • Much to the business’ surprise, carving out the IT environment is not easy, especially when considering the services and products that might depend on access to certain applications or data sets.
    • Once the business has indicated which elements they anticipate divesting, be prepared for testing the functionality and ability of this carve-out, either through automation or manually. There are benefits and drawbacks to both methods:
      • Automated requires a solution and a developer to code the tests.
      • Manual requires time to find the errors, possibly more time than automated testing.
    • Identify if there are dependencies that will make the carve-out difficult.
      • For example, the business is trying to divest Product X, but that product is integrated with Product Y, which is not being sold.
      • Consider all the processes and products that specific data might support as well.
      • Moreover, the data migration tool will need to enter the ERP system and identify not just the data but all supporting and historical elements that underlie the data.

    Critical components to consider:

    • Selecting manual or automated testing
    • Determining data dependencies
    • Data migration capabilities
    • Auditing approval
    • People and skills that support specific elements being carved out

    3.2.1 Create a carve-out roadmap

    6 hours

    Input: Items included in the carve-out, Dependencies, Whether testing is completed, If the carve-out will pass audit, If the carve-out item is prepared to be separated

    Output: Carve-out roadmap

    Materials: Business’ divestiture plan, M&A Sell Playbook

    Participants: IT executive/CIO, IT senior leadership, Business leaders, Transition team

    The purpose of this activity is to prepare the IT environment by identifying a carve-out roadmap, specifically looking at data, infrastructure, and applications. Feel free to expand the roadmap to include other categories as your organization sees fit.

    1. In the Carve-Out Roadmap in the M&A Sell Playbook, identify the key elements of the carve-out in the first column.
    2. Note any dependencies the items might have. For example:
      • The business is selling Product X, which is linked to Data X and Data Y. The organization does not want to sell Data Y. Data X would be considered dependent on Data Y.
    3. Once the dependencies have been confirmed, begin automated or manual testing to examine the possibility of separating the data sets (or other dependencies) from one another.
    4. After identifying an acceptable method of separation, inform the auditing individual or body and confirm that there would be no repercussions for the planned process.

    Record the results in the M&A Sell Playbook.

    3.2.2 Prioritize separation tasks

    2 hours

    Input: Separation tasks, Transition team, M&A RACI

    Output: Prioritized separation list

    Materials: Separation task checklist, Separation roadmap

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to prioritize the different separation 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. Begin by downloading the SharePoint or Excel version of the M&A Separation Project Management Tool.
    2. Identify which separation tasks you want to have as part of your project plan. Alter or remove any tasks that are irrelevant to your organization. Add in tasks you think are missing.
    3. 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).
    4. 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 Separation Project Management Tool (SharePoint).

    Record the updates in the M&A Separation Project Management Tool (Excel).

    Separation checklists

    Prerequisite Checklist
    • Build the project plan for separation 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 sale or divestiture
    • Develop IT's sale/divestiture 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
    • Establish a service/technical transaction agreement
    • Plan and communicate culture changes
    • Create an employee transition plan
    • Assess baseline engagement
    Business
    • Design an enterprise architecture
    • Document your business architecture
    • Meet compliance and regulatory standards
    • Identify and assess all of IT's risks
    Applications
    • Prioritize and address critical applications
      • CRM
      • HRIS
      • Financial
      • Sales
      • Risk
      • Security
      • ERP
      • Email
    • Develop method of separating applications
    • Model critical applications that have dependencies on one another
    • Identify the infrastructure capacity required to support critical applications
    • Prioritize and address critical applications
    Leadership/IT Executive
    • Build an IT budget
    • Structure operating budget
    • Structure capital budget
    • Identify the workforce demand vs. capacity
    • Establish and monitor key metrics
    • Communicate value realized/cost savings
    Data
    • Confirm data strategy
    • Confirm data governance
    • Build a data architecture roadmap
    • Analyze data sources and domains
    • Evaluate data storage (on-premises vs. cloud)
    • Develop an enterprise content management strategy and roadmap
    • Ensure cleanliness/usability of data sets
    • Identify data sets that can remain operational if reduced/separated
    • Develop reporting and analytics capabilities
    • Confirm data strategy
    Operations
    • Manage sales access to customer data
    • Determine locations and hours of operation
    • Separate/terminate phone lists and extensions
    • Split email address books
    • Communicate helpdesk/service desk information

    Separation checklists (continued)

    Infrastructure
    • 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
    • Determine network access concerns
    Vendors
    • Establish a sustainable vendor management office
    • Review vendor landscape
    • Identify warranty options
    • Identify the licensing grant
    • Rationalize vendor services and solutions
    People
    • Design an IT operating model
    • Design your future IT organizational structure
    • Conduct a RACI for prioritized activities
    • Conduct a culture assessment and identify goal IT culture
    • Build an IT employee engagement program
    • Determine critical roles and systems/process/products they support
    • Define new job descriptions with meaningful roles and responsibilities
    • Create employee transition plans
    • Create functional workplans
    Projects
    • Identify projects to be on hold
    • Communicate project intake process
    • Reprioritize projects
    Products & Services
    • Redefine service catalog
    • Ensure customer interaction requirements are met
    • Select a solution for product lifecycle management
    • Plan service-level agreements
    Security
    • Conduct a security assessment
    • 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 changed/terminated
    • Establish a communication plan
    • Develop a change management process
    • Establish/review IT policies
    • Evaluate current process models

    3.2.2 Establish the separation roadmap

    2 hours

    Input: Prioritized separation tasks, Carve-out roadmap, Employee transition plan, Separation RACI, Costs for activities, Activity owners

    Output: Separation roadmap

    Materials: M&A Separation Project Plan Tool (SharePoint), M&A Separation Project Plan Tool (Excel), SharePoint Template: Step-by-Step Deployment Guide

    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 separation process. Using the information gathered in previous activities, you can create a roadmap that will ensure a smooth separation.

    1. Use our Separation Project Management Tool to help track critical elements in relation to the separation 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. Additional instructions are available in the SharePoint Template Step-by-Step Deployment Guide.
      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 separation 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 Separation Project Management Tool (SharePoint).

    Record the updates in the M&A Separation Project Management Tool (Excel).

    Separation 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 Separation Project Management Tool (SharePoint) .wsp file from the Mergers & Acquisitions: The Sell 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.
    5. Enable the SharePoint Server feature.
    6. Upload the .wsp file in Solutions Gallery.
    7. 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
    8. 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.

    Supporting the transition and establishing service-level agreements

    The purpose of this part of the transition is to ensure both buyer and seller have a full understanding of expectations for after the transaction.

    • Once the organizations have decided to move forward with a deal, all parties need a clear level of agreement.
    • IT, since it is often seen as an operational division of an organization, is often expected to deliver certain services or products once the transaction has officially closed.
    • The purchasing organization or the new company might depend on IT to deliver these services until they are able to provide those services on their own.
    • Having a clear understanding of what the buyer’s expectations are and what your company, as the selling organization, can provide is important.
    • Have a conversation with the buyer and document those expectations in a signed service agreement.

    3.2.4 Identify the buyer's IT expectations

    3-4 hours

    Input: Carve-out roadmap, Separation roadmap, Up-to-date version of the agreement

    Output: Buyer’s IT expectations

    Materials: Questions for meeting

    Participants: IT executive/CIO, IT senior leadership, Company M&A team, Purchasing company M&A team, Purchasing company IT leadership

    The purpose of this activity is to determine if the buyer has specific service expectations for your IT organization. By identifying, documenting, and agreeing on what services your IT organization will be responsible for, you can obtain a final agreement to protect you as the selling organization.

    1. Buyers should not assume certain services will be provided. Organize a meeting with IT leaders and the company M&A teams to determine what services will be provided.
    2. The next slide has a series of questions that you can start from. Ensure you get detailed information about each of the services.
    3. Once you fully understand the buyer’s IT expectations, create an SLA in the next activity and obtain sign-off from both organizations.

    Questions to ask the buyer

    1. What services would you like my IT organization to provide?
    2. How long do you anticipate those services will be provided to you?
    3. How do you expect your staff/employees to communicate requests or questions to my staff/employees?
    4. Are there certain days or times that you expect these services to be delivered?
    5. How many staff do you expect should be available to support you?
    6. What should be the acceptable response time on given service requests?
    7. When it comes to the services you require, what level of support should we provide?
    8. If a service requires escalation to Level 2 or Level 3 support, are we still expected to support this service? Or are we only Level 1 support?
    9. What preventative security methods does your organization have to protect our environment during this agreement period?

    3.2.5 Create a service/ transaction agreement

    6 hours

    Input: Buyer's expectations, Separation roadmap

    Output: SLA for the purchasing organization

    Materials: Service Catalog Internal Service Level Agreement Template, M&A Separation Project Plan Tool (SharePoint), M&A Separation Project Plan Tool (Excel)

    Participants: IT executive/CIO, IT senior leadership, Company M&A team, Purchasing company M&A team, Purchasing company IT leadership

    The purpose of this activity is to determine if the buyer has specific service expectations for your IT organization post-transaction that your IT organization is agreeing to provide.

    1. Document the expected services and the related details in a service-level agreement.
    2. Provide the SLA to the purchasing organization.
    3. Obtain sign-off from both organizations on the level of service that is expected of IT.
    4. Update the M&A Separation Project Management Tool Excel or SharePoint document to reflect any additional items that the purchasing organization identified.

    *For organizations being purchased in their entirety, this activity may not be relevant.

    Modify the Service Catalog Internal Service Level Agreement with the agreed-upon terms of the SLA.

    Importance of estimating separation costs

    Change is the key driver of separation costs

    Separation 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 separation is a success.
    Separation costs vary by industry type.
    • Certain industries may have separation costs made up of mostly one type, differing from other industries, due to the complexity and demands of the transaction. For example:
      • Healthcare separation 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 separation costs due to most transactions occurring within the same sector rather than as cross-sector investments. For example, oil and gas transactions tend to be for oil fields and rigs (strategic fixed assets), which can easily be added to the buyer’s portfolio.

    Separation costs are more related to the degree of change required than the size of the transaction.

    3.2.6 Estimate separation costs

    3-4 hours

    Input: Separation 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 separation

    Materials: Separation task checklist, Separation roadmap, M&A Sell 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 separation. Identify and communicate a realistic figure 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 Sell 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 Sell Playbook.

    Employee transition planning

    Considering employee impact will be a huge component to ensure successful separation

    • 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 separation 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.

    3.2.7 Create an employee transition plan

    3-4 hours

    Input: IT strategy, IT organizational design

    Output: Employee transition plans

    Materials: M&A Sell 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 Sell Playbook.

    3.2.8 Create functional workplans for employees

    3-4 hours

    Input: Prioritized separation tasks, Employee transition plan, Separation RACI, Costs for activities, Activity owners

    Output: Employee functional workplans

    Materials: M&A Sell 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 (3.2.7) 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 Sell 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 Sell Playbook.

    Metrics for separation

    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 separation
    • $ Accurate IT budget estimates
    • % Revenue growth directly tied to IT delivery
    • % Profit margin growth

    3.2.9 Align project metrics with identified tasks

    3-4 hours

    Input: Prioritized separation tasks, Employee transition plan, Separation RACI, Costs for activities, Activity owners, M&A goals

    Output: Separation-specific metrics to measure success

    Materials: Separation roadmap, M&A Sell 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 separation 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 Sell Playbook.

    By the end of this mid-transaction phase you should:

    Have successfully evaluated your IT people, processes, and technology to determine a roadmap forward for separating or selling.

    Key outcomes from the Due Diligence & Preparation phase
    • Participate in due diligence activities to comply with regulatory and auditing standards and prepare employees for the transition.
    • Create a separation roadmap that considers the tasks that will need to be completed and the resources required to support separation.
    Key deliverables from the Due Diligence & Preparation phase
    • Drive value with a due diligence charter
    • Gather data room artifacts
    • Measure staff engagement
    • Assess culture
    • Create a carve-out roadmap
    • Prioritize separation tasks
    • Establish the separation roadmap
    • Identify the buyer’s IT expectations
    • Create a service/transaction agreement
    • Estimate separation costs
    • Create an employee transition plan
    • Create functional workplans for employees
    • Align project metrics with identified tasks

    M&A Sell 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 Reduction Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Separation or Sale
    • 3.1 Engage in Due Diligence and Prepare Staff
    • 3.2 Prepare to Separate
    • 4.1 Execute the Transaction
    • 4.2 Reflection and Value Realization

    This phase will walk you through the following activities:

    • Monitor service agreements
    • Continually update the project plan
    • Confirm separation costs
    • Review IT’s transaction value
    • Conduct a transaction and separation 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 Separation

    Day 4

    Establish the Transaction FoundationDiscover the Motivation for IntegrationPlan the Separation RoadmapPrepare Employees for the TransitionEngage in SeparationAssess the Transaction Outcomes (Must be within 30 days of transaction date)

    Activities

    • 0.1 Identify the rationale for the company's decision to pursue a divestiture/sale.
    • 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 divestiture/sale.
    • 1.2 Identify pain points and opportunities tied to the divestiture/sale.
    • 1.3 Establish the separation strategy.
    • 1.4 Create the due diligence charter.
    • 2.1 Prioritize separation tasks.
    • 2.2 Establish the separation roadmap.
    • 2.3 Establish and align project metrics with identified tasks.
    • 2.4 Estimate separation costs.
    • 3.1 Measure staff engagement
    • 3.2 Assess the current culture and identify the goal culture.
    • 3.3 Create an employee transition plan.
    • 3.4 Create functional workplans for employees.
    • S.1 Complete the separation by regularly updating the project plan.
    • S.2 Assess the service/technical transaction agreement.
    • 4.1 Confirm separation costs.
    • 4.2 Review IT’s transaction value.
    • 4.3 Conduct a transaction and separation 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. Separation strategy
    3. Due diligence charter
    1. Separation roadmap and associated resourcing
    1. Engagement assessment
    2. Culture assessment
    3. Employee transition plans and workplans
    1. Evaluate service/technical transaction agreement
    2. Updated separation project plan
    1. SWOT of transaction
    2. M&A Sell 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 separation tasks. As the selling organization in this transaction, you need to ensure you have a roadmap that properly enables the ongoing delivery of your IT environment while simultaneously delivering the necessary services to the purchasing organization.

    Throughout the separation transaction, some of the most common obstacles IT should prepare for include difficulty separating the IT environment, loss of key personnel, disengaged employees, and security/compliance issues.

    Post-transaction, the business needs to understands the value they received by engaging in the transaction and the ongoing revenue they might obtain as a result of the sale. You also need to ensure that the IT environment is functioning and mitigating any high-risk outcomes.

    Goal: To carry out the planned separation 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 a sale or divestiture and what opportunities or pain points the sale should alleviate.
    • Identify the key roles for the transaction team.
    • Identify the M&A governance.
    • Determine target metrics.
    • Select a separation strategy framework.
    • Conduct a RACI for key transaction tasks for the transaction team.
    • Create a carve-out roadmap.
    • Prioritize separation tasks.
    • Establish the separation roadmap.
    • 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.
    • Establish a due diligence charter.
    • Be able to valuate the IT environment and communicate IT’s value to the business.
    • Gather and present due diligence data room artifacts.
    • Measure staff engagement.
    • Assess and plan for culture.
    • Estimate separation costs.
    • Create functional workplans for employees.
    • Identify the buyer’s IT expectations.
    • Create a service/ transaction agreement.

    Separation checklists

    Prerequisite Checklist
    • Build the project plan for separation 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 sale or divestiture
    • Develop IT's sale/divestiture 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
    • Establish a service/technical transaction agreement
    • Plan and communicate culture changes
    • Create an employee transition plan
    • Assess baseline engagement
    Business
    • Design an enterprise architecture
    • Document your business architecture
    • Meet compliance and regulatory standards
    • Identify and assess all of IT's risks
    Applications
    • Prioritize and address critical applications
      • CRM
      • HRIS
      • Financial
      • Sales
      • Risk
      • Security
      • ERP
      • Email
    • Develop method of separating applications
    • Model critical applications that have dependencies on one another
    • Identify the infrastructure capacity required to support critical applications
    • Prioritize and address critical applications
    Leadership/IT Executive
    • Build an IT budget
    • Structure operating budget
    • Structure capital budget
    • Identify the workforce demand vs. capacity
    • Establish and monitor key metrics
    • Communicate value realized/cost savings
    Data
    • Confirm data strategy
    • Confirm data governance
    • Build a data architecture roadmap
    • Analyze data sources and domains
    • Evaluate data storage (on-premises vs. cloud)
    • Develop an enterprise content management strategy and roadmap
    • Ensure cleanliness/usability of data sets
    • Identify data sets that can remain operational if reduced/separated
    • Develop reporting and analytics capabilities
    • Confirm data strategy
    Operations
    • Manage sales access to customer data
    • Determine locations and hours of operation
    • Separate/terminate phone lists and extensions
    • Split email address books
    • Communicate helpdesk/service desk information

    Separation checklists (continued)

    Infrastructure
    • 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
    • Determine network access concerns
    Vendors
    • Establish a sustainable vendor management office
    • Review vendor landscape
    • Identify warranty options
    • Identify the licensing grant
    • Rationalize vendor services and solutions
    People
    • Design an IT operating model
    • Design your future IT organizational structure
    • Conduct a RACI for prioritized activities
    • Conduct a culture assessment and identify goal IT culture
    • Build an IT employee engagement program
    • Determine critical roles and systems/process/products they support
    • Define new job descriptions with meaningful roles and responsibilities
    • Create employee transition plans
    • Create functional workplans
    Projects
    • Identify projects to be on hold
    • Communicate project intake process
    • Reprioritize projects
    Products & Services
    • Redefine service catalog
    • Ensure customer interaction requirements are met
    • Select a solution for product lifecycle management
    • Plan service-level agreements
    Security
    • Conduct a security assessment
    • 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 changed/terminated
    • Establish a communication plan
    • Develop a change management process
    • Establish/review IT policies
    • Evaluate current process models

    Execution & Value Realization

    Step 4.1

    Execute the Transaction

    Activities

    • 4.1.1 Monitor service agreements
    • 4.1.2 Continually update the project plan

    This step will walk you through the following activities:

    • Monitor service agreements
    • 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 the separation of the IT environments and update the project plan, strategizing against any roadblocks as they come.

    Key concerns to monitor during separation

    If you are entering the transaction at this point, consider and monitor the following three items above all else.

    Your IT environment, reputation as an IT leader, and impact on key staff will depend on monitoring these aspects.

    • Risk & Security. Make sure that the channels of communication between the purchasing organization and your IT environment are properly determined and protected. This might include updating or removing employees’ access to certain programs.
    • Retaining Employees. Employees who do not see a path forward in the organization or who feel that their skills are being underused will be quick to move on. Make sure they are engaged before, during, and after the transaction to avoid losing employees.
    • IT Environment Dependencies. Testing the IT environment several times and obtaining sign-off from auditors that this has been completed correctly should be completed well before the transaction occurs. Have a strong architecture outlining technical dependencies.

    For more information, review:

    • Reduce and Manage Your Organization’s Insider Threat Risk
    • Map Technical Skills for a Changing Infrastructure Operations Organization
    • Build a Data Architecture Roadmap

    4.1.1 Monitor service agreements

    3-6 months

    Input: Original service agreement, Risk register

    Output: Service agreement confirmed

    Materials: Original service agreement

    Participants: IT executive/CIO, IT senior leadership, External organization IT senior leadership

    The purpose of this activity is to monitor the established service agreements on an ongoing basis. Your organization is most at risk during the initial months following the transaction.

    1. Ensure the right controls exist to prevent the organization from unnecessarily opening itself up to risks.
    2. Meet with the purchasing organization/subsidiary three months after the transaction to ensure that everyone is satisfied with the level of services provided.
    3. This is not a quick and completed activity, but one that requires ongoing monitoring. Repeatedly identify potential risks worth mitigating.

    For additional information and support for this activity, see the blueprint Build an IT Risk Management Program.

    4.1.2 Continually update the project plan

    Reoccurring basis following transition

    Input: Prioritized separation tasks, Separation RACI, Activity owners

    Output: Updated separation project plan

    Materials: M&A Separation Project Plan Tool (SharePoint), M&A Separation Project Plan Tool (Excel)

    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 the project plan, review the status of the various separation 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 Separation Project Management Tool (SharePoint).

    Record the updates in the M&A Separation Project Management Tool (Excel).

    Execution & Value Realization

    Step 4.2

    Reflection and Value Realization

    Activities

    • 4.2.1 Confirm separation costs
    • 4.2.2 Review IT’s transaction value
    • 4.2.3 Conduct a transaction and separation 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 about how to improve future selling or separating transactions.

    4.2.1 Confirm separation costs

    3-4 hours

    Input: Separation tasks, Carve-out roadmap, Transition team, Previous RACI, Estimated separation costs

    Output: Actual separation costs

    Materials: M&A Sell Playbook

    Participants: IT executive/CIO, IT senior leadership, Transaction team, Company M&A team

    The purpose of this activity is to confirm the associated costs around separation. While the separation costs would have been estimated previously, it’s important to confirm the costs that were associated with the separation 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 3.2.6, 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 Sell Playbook.

    Track cost savings and revenue generation

    Throughout the transaction, the business would have communicated its goals, rationales, and expectations for the transaction. Sometimes this is done explicitly, and other times the information is implicit. Either way, IT needs to ensure that metrics have been defined and are measuring the intended value that the business expects. Ensure that the benefits realized to the organization are being communicated regularly and frequently.

    1. Define Metrics: Select metrics to track synergies through the separation.
      1. You can track value by looking at percentages of improvement in process-level metrics depending on the savings or revenue being pursued.
      2. For example, if the value being pursued is decreasing costs, metrics could range from capacity to output, highlighting that the output remains high despite smaller IT environments.
    2. Prioritize Value-Driving 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 Cost Savings and Revenue Generation: Develop a detailed workplan to resource the roadmap and track where costs are saved and revenue is generated as the initiatives are undertaken.

    4.2.2 Review IT’s transaction value

    3-4 hours

    Input: Prioritized separation tasks, Separation RACI, Activity owners, M&A company goals

    Output: Transaction value

    Materials: M&A Sell 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, determine from the company M&A what those metrics might be. Review activity 3.2.9 for more information on metrics.
    2. Identify whether the metric (which should 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 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 set out by the business.

    Record the results in the M&A Sell Playbook.

    4.2.3 Conduct a transaction and separation SWOT

    2 hours

    Input: Separation costs, Retention rates, Value that 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 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 Sell Playbook.

    M&A Sell 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.
    • Critically examine the M&A Sell 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 sale or divestiture 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 separation SWOT

    Output: Refined M&A playbook

    Materials: M&A Sell 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 Sell Playbook, and it should reflect the most successful outcome for you in your organization.

    Record the results in the M&A Sell Playbook.

    By the end of this post-transaction phase you should:

    Have completed the separation 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 separation 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
    • Monitor service agreements
    • Continually update the project plan
    • Confirm separation costs
    • Review IT’s transaction value
    • Conduct a transaction and separation SWOT
    • Review the playbook and prepare for future transactions

    Summary of Accomplishment

    Problem Solved

    Congratulations, you have completed the M&A Sell 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 a separation or sale transaction. You have:

    • Created a standardized approach for how your IT organization should address divestitures or sales.
    • Retained critical staff and complied with any regulations throughout the transaction.
    • Delivered on the separation 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 if you were to engage in a similar divestiture or sale again.

    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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    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.

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    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.

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    “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.

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    Patel, Kiison. “The 8 Biggest M&A Failures of All Time” Deal Room, 9 Sept. 2021. Web.

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    Ravid, Barak. “Tech execs focus on growth amid increasingly competitive M&A market.” EY, 28 April 2021. Web.

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    “Valuation Methods.” Corporate Finance Institute, n.d. Web.

    Weller, Joe. “The Ultimate Guide to the M&A Process for Buyers and Sellers.” Smartsheet, 16 May 2019. Web.

    Digital Data Ethics

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    In the past two years, we've seen that we need quick technology solutions for acute issues. We quickly moved to homeworking and then to a hybrid form. We promptly moved many of our offline habits online.

    That necessitated a boost in data collection from us towards our customers and employees, and business partners.
    Are you sure how to approach this structurally? What is the right thing to do?

    Impact and Results

    • When you partner with another company, set clear expectations
    • When you are building your custom solution, invite constructive criticism
    • When you present yourself as the authority, consider the most vulnerable in the relationship

    innovation

    M&A Runbook for Infrastructure and Operations

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    • I&O is often the last to be informed of an impending M&A deal.
    • The business doesn’t understand the necessary requirements or timeline for integration.
    • It’s hard to prioritize when you’re buried under a mountain of work.
    • Documentation may be lacking or nonexistent, and members of the target organization may be uncooperative.

    Our Advice

    Critical Insight

    • Manage expectations. The business often expects integration in days or weeks, not months or years. You need to set them straight.
    • Open your checkbook and prepare to hire. Integration will require a temporary increase in resources.
    • Tackle organizational and cultural change. People are harder to integrate than technology. Culture change is the hardest part, and the integration plan should address it.

    Impact and Result

    • Tailor your approach based on the business objectives of the merger or acquisition.
    • Separate the must-haves from the nice-to-haves.
    • Ensure adequate personnel and budget.
    • Plan for the integration into normal operations.

    M&A Runbook for Infrastructure and Operations Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to partner with the business to conquer the challenges in your next merger or acquisition.

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

    1. Establish goals

    Partner with the business to determine goals and establish high-level scope.

    • M&A Runbook for Infrastructure and Operations – Phase 1: Establish Goals
    • I&O M&A Project Napkin

    2. Conduct discovery

    Find out what the target organization’s I&O looks like.

    • M&A Runbook for Infrastructure and Operations – Phase 2: Conduct Discovery
    • I&O M&A Discovery Letter Template
    • I&O M&A Discovery Template
    • I&O M&A Workbook
    • I&O M&A Risk Assessment Tool

    3. Plan short-term integration

    Build a plan to achieve a day 1 MVP.

    • M&A Runbook for Infrastructure and Operations – Phase 3: Plan Short-Term Integration
    • I&O M&A Short-Term Integration Capacity Assessment Tool

    4. Map long-term integration

    Chart a roadmap for long-term integration.

    • M&A Runbook for Infrastructure and Operations – Phase 4: Map Long-Term Integration
    • I&O M&A Long-Term Integration Portfolio Planning Tool
    [infographic]

    Workshop: M&A Runbook for Infrastructure and Operations

    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 High-Level Scope

    The Purpose

    Establish goals and conduct discovery.

    Key Benefits Achieved

    Alignment with business goals

    Documentation of target organization’s current state

    Activities

    0.1 Consult with stakeholders.

    0.2 Establish M&A business goals.

    0.3 Conduct target discovery.

    0.4 Document own environment.

    0.5 Clarify goals.

    Outputs

    Stakeholder communication plan

    M&A business goals

    I&O M&A Discovery Template

    Current state of organization

    2 Target Assessment

    The Purpose

    Assess risk and value of target organization.

    Key Benefits Achieved

    Accurate scope of I&O integration

    Risk mitigation plans

    Value realization strategies

    Activities

    1.1 Scope I&O M&A project.

    1.2 Assess risks.

    1.3 Assess value.

    Outputs

    I&O M&A Project Napkin

    Risk assessment

    Value assessment

    3 Day 1 Integration Project Plan

    The Purpose

    Establish day 1 integration project plan.

    Key Benefits Achieved

    Smoother day 1 integration

    Activities

    2.1 Determine Day 1 minimum viable operating model post M&A.

    2.2 Identify gaps.

    2.3 Build day 1 project plan.

    2.4 Estimate required resources.

    Outputs

    Day 1 project plan

    4 Long-Term Project Plan

    The Purpose

    Draw long-term integration roadmap.

    Key Benefits Achieved

    Improved alignment with M&A goals

    Greater realization of the deal’s value

    Activities

    3.1 Set long-term future state goals.

    3.2 Create a long-term project plan.

    3.3 Consult with business stakeholders on the long-term plan.

    Outputs

    Long-term integration project plan

    5 Change Management and Continual Improvement

    The Purpose

    Prepare for organization and culture change.

    Refine M&A I&O integration process.

    Key Benefits Achieved

    Smoother change management

    Improved M&A integration process

    Activities

    4.1 Complete a change management plan.

    4.2 Conduct a process post-mortem.

    Outputs

    Change management plan

    Process improvements action items

    Vendor Management

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    That does not mean strong-arming. It means maximizing the vendor relationship value.

    Recruit IT Talent

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    • Changing workforce dynamics and increased transparency have shifted the power from employers to job seekers, stiffening the competition for talent.
    • Candidate expectations match high consumer expectations and affect the employer brand, the consumer brand, and overall organizational reputation. Delivering a positive candidate experience (CX2) is no longer optional.

    Our Advice

    Critical Insight

    • Think about your candidates as consumers. Truly understanding their needs will attract great talent and build positive brand perceptions.
    • The CX2 starts sooner than you think. It encompasses all candidate interactions with an organization and begins before the formal application process.
    • Don’t try to emulate competitors. By differentiating your CX2, you build a competitive advantage.

    Impact and Result

    • Design a candidate-centric talent acquisition process that addresses candidate feedback from both unsuccessful and successful candidates.
    • Use design-thinking principles to focus your redesign on moments that matter to candidates to reduce unnecessary work or ad-hoc initiatives that don’t matter to candidates.

    Recruit IT Talent Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should redesign your CX2, 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. Establish your current process and set redesign goals

    Map the organization’s current state for CX2 and set high-level objectives and metrics.

    • Win the War for Talent With a Killer Candidate Experience – Phase 1: Establish Your Current Process and Set Redesign Goals
    • Candidate Experience Project Charter
    • Talent Metrics Library
    • Candidate Experience Process Mapping Template
    • Candidate Experience Assessment Tool

    2. Use design thinking to assess the candidate experience

    Strengthen the candidate lifecycle by improving upon pain points through design thinking methods and assessing the competitive landscape.

    • Win the War for Talent With a Killer Candidate Experience – Phase 2: Use Design Thinking to Assess the Candidate Experience
    • Design Thinking Primer
    • Empathy Map Template
    • Journey Map Guide

    3. Redesign the candidate experience

    Create action, communications, and training plans to establish the redesigned CX2 with hiring process stakeholders.

    • Win the War for Talent With a Killer Candidate Experience – Phase 3: Redesign the Candidate Experience
    • Candidate Experience Best Practices Action Guide
    • Candidate Experience Action and Communication Plan
    • Candidate Experience Service Level Agreement Template

    4. Appendix

    Leverage data collection and workshop activities.

    • Win the War for Talent With a Killer Candidate Experience – Appendix: Data Collection and Workshop Activities
    • Candidate Experience Phase One Data Collection Guide
    [infographic]

    Workshop: Recruit IT Talent

    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 Establish Your Current Process and Set Redesign Goals

    The Purpose

    Assess the organization’s current state for CX2.

    Set baseline metrics for comparison with new initiatives.

    Establish goals to strengthen the CX2.

    Key Benefits Achieved

    Gained understanding of where the organization is currently.

    Established where the organization would like to be and goals to achieve the new state.

    Activities

    1.1 Review process map of current candidate lifecycle.

    1.2 Analyze qualitative and quantitative data gathered.

    1.3 Set organizational objectives and project goals.

    1.4 Set metrics to measure progress on high-level goals.

    Outputs

    Process map

    CX2 data analyzed

    Candidate Experience Project Charter

    2 Use Design Thinking to Assess the Candidate Experience

    The Purpose

    Apply design thinking methods to identify pain points in your candidate lifecycle.

    Assess the competition and analyze results.

    Empathize with candidates and their journey.

    Key Benefits Achieved

    Segments with pain points have been identified.

    Competitor offering and differentiation has been analyzed.

    Candidate thoughts and feelings have been synthesized.

    Activities

    2.1 Identify extreme users.

    2.2 Conduct an immersive empathy session or go through the process as if you were a target candidate.

    2.3 Identify talent competitors.

    2.4 Analyze competitive landscape.

    2.5 Synthesize research findings and create empathy map.

    2.6 Journey map the CX2.

    Outputs

    Extreme users identified

    Known and unknown talent competitor’s CX2 analyzed

    Empathy map created

    Journey map created

    3 Redesign the Candidate Experience

    The Purpose

    Create a communications and action plan and set metrics to measure success.

    Set expectations with hiring managers and talent acquisition specialists through a service level agreement.

    Key Benefits Achieved

    Action plan created.

    Metrics set to track progress and assess improvement.

    Service level agreement completed and expectations collaboratively set.

    Activities

    3.1 Assess each stage of the lifecycle.

    3.2 Set success metrics for priority lifecycle stages.

    3.3 Select actions from the Candidate Experience Best Practices Action Guide.

    3.4 Brainstorm other potential (organization-specific) solutions.

    3.5 Set action timeline and assign accountabilities.

    3.6 Customize service level agreement guidelines.

    Outputs

    CX2 lifecycle stages prioritized

    Metrics to measure progress set

    CX2 best practices selected

    Candidate Experience Assessment Tool

    Candidate Experience Action and Communication Plan

    Service level agreement guidelines.

    Build a Data Classification MVP for M365

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    • Parent Category Name: End-User Computing Applications
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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.

    Incident Management for Small Enterprise

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    • Parent Category Name: Incident & Problem Management
    • Parent Category Link: /incident-and-problem-management
    • Technical debt and disparate systems are big constraints for most small enterprise (SE) organizations. What may have worked years ago is no longer fit for purpose or the business is growing faster than the current tools in place can handle.
    • Super specialization of knowledge is also a common factor in smaller teams caused by complex architectures. While helpful, if that knowledge isn’t documented it can walk out the door with the resource and the rest of the team is left scrambling.
    • Lessons learned may be gathered for critical incidents but often are not propagated, which impacts the ability to solve recurring incidents.
    • Over time, repeated incidents can have a negative impact on the customer’s perception that the service desk is a credible and essential service to the business.

    Our Advice

    Critical Insight

    • Go beyond the blind adoption of best-practice frameworks. No simple formula exists for improving incident management maturity. Identify the challenges in your incident lifecycle and draw on best-practice frameworks pragmatically to build a structured response to those challenges.
    • Track, analyze, and review results of incident response regularly. Without a comprehensive understanding of incident trends and patterns you can be susceptible to recurring incidents that increase in damage over time. Make the case for problem management, and successfully reduce the volume of unplanned work by scheduling it into regular IT activity.
    • Recurring incidents will happen; use runbooks for a consistent response each time. Save your organization response time and confusion by developing your own specific incident use cases. Incident response should follow a standard process, but each incident will have its own escalation process or call tree that identifies key participants.

    Impact and Result

    • Effective and efficient management of incidents involves a formal process of identifying, classifying, categorizing, responding, resolving, and closing of each incident. The key for smaller organizations, where technology or resources is a constraint, is to make the best practices usable for your unique environment.
    • Develop a plan that aligns with your organizational needs, and adapt best practices into light, sustainable processes, with the goal to improve time to resolve, cost to serve, and ultimately, end-user satisfaction.
    • Successful implementation of incident management will elevate the maturity of the service desk to a controlled state, preparing you for becoming proactive with problem management.

    Incident Management for Small Enterprise Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement incident 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:

    1. Identify and log incidents

    This phase will provide an overview of the incident lifecycle and an activity on how to classify the various types of incidents in your environment.

    • Service Desk Standard Operating Procedure
    • Incident Management Workflow Library (Visio)
    • Incident Management Workflow Library (PDF)

    2. Prioritize and define SLAs

    This phase will help you develop a categorization scheme for incident handling that ensures success and keeps it simple. It will also help you identify the most important runbooks necessary to create first.

    • Service Desk Ticket Categorization Schemes
    • IT Incident Runbook Prioritization Tool
    • IT Incident Management Runbook Blank Template

    3. Respond, recover, and close incidents

    This phase will help you identify how to use a knowledgebase to resolve incidents quicker. Identify what needs to be answered during a post-incident review and identify the criteria needed to invoke problem management.

    • Knowledgebase Article Template
    • Root-Cause Analysis Template
    • Post-Incident Review Questions Tracking Tool
    [infographic]

    Workshop: Incident Management for Small Enterprise

    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 State

    The Purpose

    Assess the current state of the incident management lifecycle within the organization.

    Key Benefits Achieved

    Understand the incident lifecycle and how to classify them in your environment.

    Identify the roles and responsibilities of the incident response team.

    Document the incident workflows to identify areas of opportunities.

    Activities

    1.1 Outline your incident lifecycle challenges.

    1.2 Identify and classify incidents.

    1.3 Identify roles and responsibilities for incident handling.

    1.4 Design normal and critical incident workflows for target state.

    Outputs

    List of incident challenges for each phase of the incident lifecycle

    Incident classification scheme mapped to resolution team

    RACI chart

    Incident Workflow Library

    2 Define the Target State

    The Purpose

    Design or improve upon current incident and ticket categorization schemes, priority, and impact.

    Key Benefits Achieved

    List of the most important runbooks necessary to create first and a usable template to go forward with

    Activities

    2.1 Improve incident categorization scheme.

    2.2 Prioritize and define SLAs.

    2.3 Understand the purpose of runbooks and prioritize development.

    2.4 Develop a runbook template.

    Outputs

    Revised ticket categorization scheme

    Prioritization matrix based on impact and urgency

    IT Incident Runbook Prioritization Tool

    Top priority incident runbook

    3 Bridge the Gap

    The Purpose

    Respond, recover, and close incidents with root-cause analysis, knowledgebase, and incident runbooks.

    Key Benefits Achieved

    This module will help you to identify how to use a knowledgebase to resolve quicker.

    Identify what needs to be answered during a post-incident review.

    Identify criteria to invoke problem management.

    Activities

    3.1 Build a targeted knowledgebase.

    3.2 Build a post-incident review process.

    3.3 Identify metrics to track success.

    3.4 Build an incident matching process.

    Outputs

    Working knowledgebase template

    Root-cause analysis template and post-incident review checklist

    List of metrics

    Develop criteria for problem management

    Enterprise Network Design Considerations

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    • Parent Category Name: Network Management
    • Parent Category Link: /network-management

    Security, risk, and trust models play into how networks are designed and deployed. If these models are not considered during network design, band-aids and workarounds will be deployed to achieve the needed goals, potentially bypassing network controls.

    Our Advice

    Critical Insight

    The cloud “gold rush” has made it attractive for many enterprises to migrate services off the traditional network and into the cloud. These services are now outside of the traditional network and associated controls. This shifts the split of east-west vs. north-south traffic patterns, as well as extending the network to encompass services outside of enterprise IT’s locus of control.

    Impact and Result

    Where users access enterprise data or services and from which devices dictate the connectivity needed. With the increasing shift of work that the business is completing remotely, not all devices and data paths will be under the control of IT. This shift does not allow IT to abdicate from the responsibility to provide a secure network.

    Enterprise Network Design Considerations Research & Tools

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

    1. Enterprise Network Design Considerations Deck – A brief deck that outlines key trusts and archetypes when considering enterprise network designs.

    This blueprint will help you:

    • Enterprise Network Design Considerations Storyboard

    2. Enterprise Network Roadmap Technology Assessment Tool – Build an infrastructure assessment in an hour.

    Dispense with detailed analysis and customizations to present a quick snapshot of the road ahead.

    • Enterprise Network Roadmap Technology Assessment Tool
    [infographic]

    Further reading

    Enterprise Network Design Considerations

    It is not just about connectivity.

    Executive Summary

    Info-Tech Insight

    Connectivity and security are tightly coupled

    Security, risk, and trust models play into how networks are designed and deployed. If these models are not considered during network design, band-aids and workarounds will be deployed to achieve the needed goals, potentially bypassing network controls.

    Many services are no longer within the network

    The cloud “gold rush” has made it attractive for many enterprises to migrate services off the traditional network and into the cloud. These services are now outside of the traditional network and associated controls. This shifts the split of east-west vs. north-south traffic patterns, as well as extending the network to encompass services outside of enterprise IT’s locus of control.

    Users are demanding an anywhere, any device access model

    Where users access enterprise data or services and from which devices dictate the connectivity needed. With the increasing shift of work that the business is completing remotely, not all devices and data paths will be under the control of IT. This shift does not allow IT to abdicate from the responsibility to provide a secure network.

    Enterprise networks are changing

    The new network reality

    The enterprise network of 2020 and beyond is changing:

    • Services are becoming more distributed.
    • The number of services provided “off network” is growing.
    • Users are more often remote.
    • Security threats are rapidly escalating.

    The above statements are all accurate for enterprise networks, though each potentially to differing levels depending on the business being supported by the network. Depending on how affected the network in question currently is and will be in the near future, there are different common network archetypes that are best able to address these concerns while delivering business value at an appropriate price point.

    High-Level Design Considerations

    1. Understand Business Needs
    2. Understand what the business needs are and where users and resources are located.

    3. Define Your Trust Model
    4. Trust is a spectrum and tied tightly to security.

    5. Align With an Archetype
    6. How will the network be deployed?

    7. Understand Available Tooling
    8. What tools are in the market to help achieve design principles?

    Understand business needs

    Mission

    Never ignore the basics. Start with revisiting the mission and vision of the business to address relevant needs.

    Users

    Identify where users will be accessing services from. Remote vs. “on net” is a design consideration now more than ever.

    Resources

    Identify required resources and their locations, on net vs. cloud.

    Controls

    Identify required controls in order to define control points and solutions.

    Define a trust model

    Trust is a spectrum

    • There is a spectrum of trust, from fully trusted to not trusted at all. Each organization must decide for their network (or each area thereof) the appropriate level of trust to assign.
    • The ease of network design and deployment is directly proportional to the trust spectrum.
    • When resources and users are outside of direct IT control, the level of appropriate trust should be examined closely.

    Implicit

    Trust everything within the network. Security is perimeter based and designed to stop external actors from entering the large trusted zone.

    Controlled

    Multiple zones of trust within the network. Segmentation is a standard practice to separate areas of higher and lower trust.

    Zero

    Verify trust. The network is set up to recognize and support the principle of least privilege where only required access is supported.

    Align with an archetype

    Archetypes are a good guide

    • Using a defined archetype as a guiding principle in network design can help clarify appropriate tools or network structures.
    • Different aspects of a network can have different archetypes where appropriate (e.g. IT vs. OT [operational technology] networks).

    Traditional

    Services are provided from within the traditional network boundaries and security is provided at the network edge.

    Hybrid

    Services are provided both externally and from within the traditional network boundaries, and security is primarily at the network edge.

    Inverted

    Services are provided primarily externally, and security is cloud centric.

    Traditional networks

    Resources within network boundaries

    Moat and castle security perimeter

    Abstract

    A traditional network is one in which there are clear boundaries defined by a security perimeter. Trust can be applied within the network boundaries as appropriate, and traffic is generally routed through internally deployed control points that may be centralized. Traditional networks commonly include large firewalls and other “big iron” security and control devices.

    Network Design Tenets

    • The full network path from resource to user is designed, deployed, and controlled by IT.
    • Users external to the network must first connect to the network to gain access to resources.
    • Security, risk, and trust controls will be implemented by internal enterprise hardware/software devices.

    Control

    In the traditional network, it is assumed that all required control points can be adequately deployed across hardware/software that is “on prem” and under the control of central IT.

    Info-Tech Insight

    With increased cloud services provided to end users, this network is now more commonly used in data centers or OT networks.

    Traditional networks

    The image contains an example of what traditional networks look like, as described in the text below.

    Defining Characteristics

    • Traffic flows in a defined path under the control of IT to and from central IT resources.
    • Due to visibility into, and the control of, the traffic between the end user and resources, IT can relatively simply implement the required security controls on owned hardware.

    Common Components

    • Traditional offices
    • Remote users/road warriors
    • Private data center/colocation space

    Hybrid networks

    Resources internal and external to network

    Network security perimeter combined with cloud protection

    Abstract

    A hybrid network is one that combines elements of a traditional network with cloud resources. As some of these resources are not fully under the control of IT and may be completely “offnet” or loosely coupled to the on-premises network, the security boundaries and control points are less likely to be centralized. Hybrid networks allow the flexibility and speed of cloud deployment without leaving behind traditional network constructs. This generally makes them expensive to secure and maintain.

    Network Design Tenets

    • The network path from resource to user may not be in IT’s locus of control.
    • Users external to the network must first connect to the network to gain access to internal resources but may directly access publicly hosted ones.
    • Security, risk, and trust controls may potentially be implemented by a mixture of internal enterprise hardware/software devices and external control points.

    Control

    The hallmark of a hybrid network is the blending of public and private resources. This blending tends to necessitate both public and private points of control that may not be homogenous.

    Info-Tech Insight

    With multiple control points to address, take care in simplifying designs while addressing all concerns to ease operational load.

    Hybrid networks

    The image contains an example of what hybrid networks look like, as described in the text below.

    Defining Characteristics

    • Traffic flows to central resources across a defined path under the control of IT.
    • Traffic to cloud assets may be partially under the control of IT.
    • For central resources, the traffic to and from the end user can have the required security controls relatively simply implemented on owned hardware.
    • For public cloud assets, IT may or may not have some control over part of the path.

    Common Components

    • Traditional offices
    • Remote users/road warriors
    • Private data center/colocation space
    • Public cloud assets (IaaS/PaaS/SaaS)

    Inverted perimeter

    Resources primarily external to the network

    Security control points are cloud centric

    Abstract

    An inverted perimeter network is one in which security and control points cover the entire workflow, on or off net, from the consumer of services through to the services themselves with zero trust. Since the control plane is designed to encompass the workflow in a secure manner, much of the underlying connectivity can be abstracted. In an extreme version of this deployment, IT would abstract end-user access, and any cloud-based or on-premises resources would be securely published through the control plane with context-aware precision access.

    Network Design Tenets

    • The network path from resource to user is abstracted and controlled by IT through services like secure access service edge (SASE).
    • Users only need internet access and appropriate credentials to gain access to resources.
    • Security, risk, and trust controls will be implemented through external cloud based services.

    Control

    An inverted network abstracts the lower-layer connectivity away and focuses on implementing a cloud-based zero trust control plane.

    Info-Tech Insight

    This model is extremely attractive for organizations that consume primarily cloud services and have a large remote work force.

    Inverted networks

    The image contains an example of what inverted networks look like, as described in the text below.

    Defining Characteristics

    • The end user does not have to be in a defined location.
    • All central resources that are to be accessed are hosted on cloud resources.
    • IT has little to no control of the path between the end user and central resources.

    Common Components

    • Traditional offices
    • Regent offices/shared workspaces
    • Remote users/road warriors
    • Public cloud assets (IaaS/PaaS/SaaS)

    Understand available tooling

    Don’t buy a hammer and go looking for nails

    • A network archetype must be defined in order to understand what tools (hardware or software) are appropriate for consideration in a network build or refresh.
    • Tools are purpose built and generally designed to solve specific problems if implemented and operated correctly. Choose the tools to align with the challenges that you are solving as opposed to choosing tools and then trying to use those purchases to overcome challenges.
    • The purchase of a tool does not allow for abdication of proper design. Tools must be chosen appropriately and integrated properly to orchestrate the best solutions. Purchasing a tool and expecting the tool to solve all your issues rarely succeeds.

    “It is essential to have good tools, but it is also essential that the tools should be used in the right way.” — Wallace D. Wattles

    Software-defined WAN (SD-WAN)

    Simplified branch office connectivity

    Archetype Value: Traditional Networks

    What It Is Not

    SD-WAN is generally not a way to slash spending by lowering WAN circuit costs. Though it is traditionally deployed across lower cost access, to minimize risk and realize the most benefits from the platform many organizations install multiple circuits with greater bandwidths at each endpoint when replacing the more costly traditional circuits. Though this maximizes the value of the technology investment, it will result in the end cost being similar to the traditional cost plus or minus a small percentage.

    What It Is

    SD-WAN is a subset of software-defined networking (SDN) designed specifically to deploy a secure, centrally managed, connectivity agnostic, overlay network connecting multiple office locations. This technology can be used to replace, work in concert with, or augment more traditional costly connectivity such as MPLS or private point to point (PtP) circuits. In addition to the secure overlay, SD-WAN usually also enables policy-based, intelligent controls, based on traffic and circuit intelligence.

    Why Use It

    You have multiple endpoint locations connected by expensive lower bandwidth traditional circuits. Your target is to increase visibility and control while controlling costs if and where possible. Ease of centralized management and the ability to more rapidly turn up new locations are attractive.

    Cloud access security broker (CASB)

    Inline policy enforcement placed between users and cloud services

    Archetype Value: Hybrid Networks

    What It Is Not

    CASBs do not provide network protection; they are designed to provide compliance and enforcement of rules. Though CASBs are designed to give visibility and control into cloud traffic, they have limits to the data that they generally ingest and utilize. A CASB does not gather or report on cloud usage details, licencing information, financial costing, or whether the cloud resource usage is aligned with the deployment purpose.

    What It Is

    A CASB is designed to establish security controls beyond a company’s environment. It is commonly deployed to augment traditional solutions to extend visibility and control into the cloud. To protect assets in the cloud, CASBs are designed to provide central policy control and apply services primarily in the areas of visibility, data security, threat protection, and compliance.

    Why Use It

    You a mixture of on-premises and cloud assets. In moving assets out to the cloud, you have lost the traditional controls that were implemented in the data center. You now need to have visibility and apply controls to the usage of these cloud assets.

    Secure access service edge (SASE)

    Convergence of security and service access in the cloud

    Archetype Value: Inverted Networks

    What It Is Not

    Though the service will consist of many service offerings, SASE is not multiple services strung together. To present the value proposed by this platform, all functionality proposed must be provided by a single platform under a “single pane of glass.” SASE is not a mature and well-established service. The market is still solidifying, and the full-service definition remains somewhat fluid.

    What It Is

    SASE exists at the intersection of network-as-a-service and network-security-as-a-service. It is a superset of many network and security cloud offerings such as CASB, secure web gateway, SD-WAN, and WAN optimization. Any services offered by a SASE provider will be cloud hosted, presented in a single stack, and controlled through a single pane of glass.

    Why Use It

    Your network is inverting, and services are provided primarily as cloud assets. In a full realization of this deployment’s value, you would abstract how and where users gain initial network access yet remain in control of the communications and data flow.

    Activity

    Understand your enterprise network options

    Activity: Network assessment in an hour

    • Learn about the Enterprise Network Roadmap Technology Assessment Tool
    • Complete the Enterprise Network Roadmap Technology Assessment Tool

    This activity involves the following participants:

    • IT strategic direction decision makers.
    • IT managers responsible for network.
    • Organizations evaluating platforms for mission critical applications.

    Outcomes of this step:

    • Completed Enterprise Network Roadmap Technology Assessment Tool

    Info-Tech Insight

    Review your design options with security and compliance in mind. Infrastructure is no longer a standalone entity and now tightly integrates with software-defined networks and security solutions.

    Build an assessment in an hour

    Learn about the Enterprise Network Roadmap Technology Assessment Tool.

    This workbook provides a high-level analysis of a technology’s readiness for adoption based on your organization’s needs.

    • The workbook then places the technology on a graph that measures both the readiness and fit for your organization. In addition, it provides warnings for specific issues and lets you know if you have considerable uncertainty in your answers.
    • At a glance you can now communicate what you are doing to help the company:
      • Grow
      • Save money
      • Reduce risk
    • Regardless of your specific audience, these are important stories to be able to tell.
    The image contains three screenshots from the Enterprise Network Roadmap Technology Assessment Tool.

    Build an assessment in an hour

    Complete the Enterprise Network Roadmap Technology Assessment Tool.

    Dispense with detailed analysis and customizations to present a quick snapshot of the road ahead.

    1. Weightings: Adjust the Weighting tab to meet organizational needs. The provided weightings for the overall solution areas are based on a generic firm; individual firms will have different needs.
    2. Data Entry: For each category, answer the questions for the technology you are considering. When you have completed the questionnaire, go to the next tab for the results.
    3. Results: The Enterprise Network Roadmap Technology Assessment Tool provides a value versus readiness assessment of your chosen technology customized to your organization.

    The image contains three screenshots from the Enterprise Network Roadmap Technology Assessment Tool. It has a screenshot for each step as described in the text above.

    Related Info-Tech Research

    Effectively Acquire Infrastructure Services

    Acquiring a service is like buying an experience. Don’t confuse the simplicity of buying hardware with buying an experience.

    Outsource IT Infrastructure to Improve System Availability, Reliability, and Recovery

    There are very few IT infrastructure components you should be housing internally – outsource everything else.

    Build Your Infrastructure Roadmap

    Move beyond alignment: Put yourself in the driver’s seat for true business value.

    Drive Successful Sourcing Outcomes With a Robust RFP Process

    Leverage your vendor sourcing process to get better results.

    Research Authors

    The image contains a photo of Scott Young.

    Scott Young, Principal Research Advisor, Info-Tech Research Group

    Scott Young is a Director of Infrastructure Research at Info-Tech Research Group. Scott has worked in the technology field for over 17 years, with a strong focus on telecommunications and enterprise infrastructure architecture. He brings extensive practical experience in these areas of specialization, including IP networks, server hardware and OS, storage, and virtualization.

    The image contains a photo of Troy Cheeseman.

    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.

    Bibliography

    Ahlgren, Bengt. “Design considerations for a network of information.” ACM Digital Library, 21 Dec. 2008.

    Cox Business. “Digital transformation is here. Is your business ready to upgrade your mobile work equation?” BizJournals, 1 April 2022. Accessed April 2022.

    Elmore, Ed. “Benefits of integrating security and networking with SASE.” Tech Radar, 1 April 2022. Web.

    Greenfield, Dave. “From SD-WAN to SASE: How the WAN Evolution is Progressing.” Cato Networks, 19 May 2020. Web

    Korolov, Maria. “What is SASE? A cloud service that marries SD-WAN with security.” Network World, 7 Sept. 2020. Web.

    Korzeniowski, Paul, “CASB tools evolve to meet broader set of cloud security needs.” TechTarget, 26 July 2019. Accessed March 2022.

    Review and Improve Your IT Policy Library

    • Buy Link or Shortcode: {j2store}193|cart{/j2store}
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    • Parent Category Name: IT Governance, Risk & Compliance
    • Parent Category Link: /it-governance-risk-and-compliance
    • Your policies are out of date, disorganized, and complicated. They don’t reflect current regulations and don’t actually mitigate your organization’s current IT risks.
    • Your policies are difficult to understand, aren’t easy to find, or aren’t well monitored and enforced for compliance. As a result, your employees don’t care about your policies.
    • Policy issues are taking up too much of your time and distracting you from the real issues you need to address.

    Our Advice

    Critical Insight

    A dynamic and streamlined policy approach will:

    1. Right-size policies to address the most critical IT risks.
    2. Clearly lay out a step-by-step process to complete daily tasks in compliance.
    3. Obtain policy adherence without having to be “the police.”

    To accomplish this, the policy writer must engage their audience early to gather input on IT policies, increase policy awareness, and gain buy-in early in the process.

    Impact and Result

    • Develop more effective IT policies. Clearly express your policy goals and objectives, standardize the approach to employee problem solving, and write policies your employees will actually read.
    • Improve risk coverage. Ensure full coverage on the risk landscape, including legal regulations, and establish a method for reporting, documenting, and communicating risks.
    • Improve employee compliance. Empathize with your employees and use policy to educate, train, and enable them instead of restricting them.

    Review and Improve Your IT Policy Library Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to write better policies that mitigate the risks you care about and get the business to follow them, 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

    Assess your risk landscape and design a plan to update your policy network based on your most critical risks.

    • Review and Improve Your IT Policy Library – Phase 1: Assess
    • Policy Management RACI Chart Template
    • Policy Management Tool
    • Policy Action Plan

    2. Draft and implement

    Use input from key stakeholders to write clear, consistent, and concise policies that people will actually read and understand. Then publish them and start generating policy awareness.

    • Review and Improve Your IT Policy Library – Phase 2: Draft and Implement
    • Policy Template
    • Policy Communication Plan Template

    3. Monitor, enforce, revise

    Use your policies to create a compliance culture in your organization, set KPIs, and track policy effectiveness.

    • Review and Improve Your IT Policy Library – Phase 3: Monitor, Enforce, Revise
    [infographic]

    Workshop: Review and Improve Your IT Policy Library

    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 Establish & Assess

    The Purpose

    Identify the pain points associated with IT policies.

    Establish the policy development process.

    Begin formulating a plan to re-design the policy network.

    Key Benefits Achieved

    Establish the policy process.

    Highlight key issues and pain points regarding policy.

    Assign roles and responsibilities.

    Activities

    1.1 Introduce workshop.

    1.2 Identify the current pain points with policy management.

    1.3 Establish high-level goals around policy management.

    1.4 Select metrics to measure achievement of goals.

    1.5 Create an IT policy working group (ITPWG).

    1.6 Define the scope and purpose of the ITPWG.

    Outputs

    List of issues and pain points for policy management

    Set of six to ten goals for policy management

    Baseline and target measured value

    Amended steering committee or ITPWG charter

    Completed RACI chart

    Documented policy development process

    2 Assess Your Risk Landscape & Map Policies to Risks; Create a Policy Action Plan

    The Purpose

    Identify key risks.

    Develop an understanding of which risks are most critical.

    Design a policy network that best mitigates those risks.

    Key Benefits Achieved

    Use a risk-driven approach to decide which policies need to be written or updated first.

    Activities

    2.1 Identify risks at a high level.

    2.2 Assess each identified risk scenario on impact and likelihood.

    2.3 Map current and required policies to risks.

    2.4 Assess policy effectiveness.

    2.5 Create a policy action plan.

    2.6 Select policies to be developed during workshop.

    Outputs

    Ranked list of IT’s risk scenarios

    Prioritized list of IT risks (simplified risk register)

    Policy action plan

    3 Develop Policies

    The Purpose

    Outline what key features make a policy effective and write policies that mitigate the most critical IT risks.

    Key Benefits Achieved

    Write policies that work and get them approved.

    Activities

    3.1 Define the policy audience, constraints, and in-scope and out-of-scope requirements for a policy.

    3.2 Draft two to four policies

    Outputs

    Drafted policies

    4 Create a Policy Communication and Implementation Plan and Monitor & Reassess the Portfolio

    The Purpose

    Build an understanding of how well the organization’s value creation activities are being supported.

    Key Benefits Achieved

    Identify an area or capability that requires improvement.

    Activities

    4.1 Review draft policies and update if necessary.

    4.2 Create a policy communication plan.

    4.3 Select KPIs.

    4.4 Review root-cause analysis techniques.

    Outputs

    Final draft policies

    Policy communications plan

    KPI tracking log

    Manage Your Chromebooks and MacBooks

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    • Parent Category Name: End-User Computing Devices
    • Parent Category Link: /end-user-computing-devices

    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.

    Equip Managers to Effectively Manage Virtual Teams

    • Buy Link or Shortcode: {j2store}600|cart{/j2store}
    • member rating overall impact (scale of 10): 9.7/10 Overall Impact
    • member rating average dollars saved: $20,240 Average $ Saved
    • member rating average days saved: 4 Average Days Saved
    • Parent Category Name: Manage & Coach
    • Parent Category Link: /manage-coach
    • Virtual team members must rely upon collaboration technology to communicate and collaborate.
    • Management practices and approaches that work face to face do not always translate effectively in virtual contexts.
    • Managers cannot rely upon spontaneous social interactions that happen organically when people are colocated to build meaningful and trusting relationships. Space and time need to be created in a virtual environment for this to happen.
    • Observing an employee’s performance or development can be more difficult, and relying on others’ feedback becomes more critical for managing performance and development.

    Our Advice

    Critical Insight

    • Managing virtual teams does not require developing new manager competencies. Instead, managers need to “dial up” competencies they already have and adjust their approaches.
    • Setting clear expectations with virtual teams creates the foundation needed to manage them effectively.
    • Virtual employees crave more meaningful interactions about performance and development with their managers.

    Impact and Result

    • Create a solid foundation for managing virtual teams by setting clear expectations and taking a more planful approach to managing performance and employee development.
    • Dial up key management competencies that you already have. Managers do not need to develop new competencies; they just need to adjust and refocus their approaches.

    Equip Managers to Effectively Manage Virtual Teams Research & Tools

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

    1. Equip managers to effectively manage virtual teams

    Equip managers to become more effective with managing remote teams.

    The workbook serves as a reference guide participants will use to support formal training.

    • Training Deck: Equip Managers to Effectively Manage Virtual Teams
    • Workbook: Equip Managers to Effectively Manage Virtual Teams
    • Standard Participant Training Session Evaluation Template

    2. Additional Resources

    Many organizations are developing plans to allow employees more flexible work options, including remote work. Use these resources to help managers and employees make the most of remote work arrangements.

    • Work-From-Home Tips for Managers
    • Work-From-Home Tips for Employees
    • Health & Safety at Home Infographic
    • Wellness and Working From Home
    • Ergonomic Workspaces Infographic
    [infographic]

    Further reading

    Equip Managers to Effectively Manage Virtual Teams

    Learning objectives

    Describe the benefits of virtual teams.

    Create a plan for adopting effective management practices and setting clear expectations with virtual teams.

    Identify potential solutions to the challenges of managing performance and developing members of virtual teams.

    Create an action plan to increase effectiveness in managing virtual teams.

    Target audience

    People managers who manage or plan to manage virtual teams.

    Training length

    Two three-hour sessions

    Training material

    • Use the speaker’s notes in the notes pane section of each slide to plan and practice the training session.
    • Activity slides are scattered throughout this training deck and are clearly numbered in the slide title.
    • Notes in italics are written to the facilitator and are not meant to be read aloud.
    • Download the Workbook for participants to use.

    Suggested materials for activities:

    • Index cards or sticky notes
    • Markers
    • Whiteboard/large table space/flip chart

    Agenda & activities

    Section 1

    Section 2

    10 min

    Welcome: Overview & Introductions

    • Introductions
    10 min

    Welcome: Overview & Introductions

    • Session 1 Review
    • Session 2 Overview
    50 min

    1.1 Introduction to virtual teams

    • What kind of virtual team do you lead?
    • Virtual team benefits and challenges
    55 min

    2.1 Managing wellbeing in a virtual team context

    • Share current practices and challenges regarding wellbeing in virtual teams
    • Identify and discuss proposed solutions
    • Develop draft action plan for managing wellbeing in a virtual team context
    5 min

    Break

    5 min Break
    45 min

    1.2 Laying the foundation for a virtual team

    • Identify behaviors to better inform, interact with, and involve team members
    60 min

    2.2 Managing performance in a virtual team context

    • Share current performance management practices for virtual teams
    • Identify challenges of current practices and propose solutions
    • Develop draft action plan for managing performance in a virtual team context
    10 min

    Break

    10 min Break
    55 min

    1.2 Laying the foundation for a virtual team

    • Identify and share ways you prefer to communicate for different activities
    • Develop draft action plan for laying the foundation for a virtual team
    40 min

    Action planning & conclusion

    • Refine consolidated action plan (three parts) and commit to implementing it
    • Key takeaways
    5 min

    Session 1 Wrap-Up

    Recommended Customization

    Review all slides and adjust the language or content as needed to suit your organizational context and culture.

    The pencil icon to the left denotes slides requiring customization of the slide and/or the speaker’s notes, e.g. adding in an organization-specific process.

    Customization instructions are found in the notes pane.

    Tips

    • Adjust the speaker’s notes on the slides before (or after) any slides you modify or delete to ensure logical transitions between slides.
    • Update the agenda to reflect new timings if major modifications are made.
    • Even seasoned leaders need to be reminded of the basics now and again. Rather than delete more basic slides, cut back on the amount of time spent covering them and frame the content as a refresher.
    • Participant Workbooks
    • Relevant organization-specific documents (see side panel)
    • Training Session Feedback Form

    Required Information

    • Communication guidelines for managers (e.g. cadence of manager interactions)
    • Performance management process and guidelines
    • Employee development guidelines
    • List of available resources (e.g. social collaboration tools)

    Effectively Manage Virtual Teams

    Section 1.1

    Practical foundations for managing teams in a remote environment

    Feasibility of virtual IT teams

    Most organizations are planning some combination of remote and onsite work in 2022.

    This is an image of a bar graph demonstrating the percentage of companies who have the following plans for return to work: Full work-from-home (All employees WFH permanently) - 4% ; No work-from-home permitted	9% ; Partial work-from-home team (Eligible employees can WFH for a certain portion of their work week)	23% ; Balanced work-from-home team (All employees can WFH for a certain portion of their work week)	28% ; Hybrid work-from-home team (Eligible employees WFH on a full-time basis)	37%

    Source: IT Talent Trends, 2022; n=199

    Speaker’s Notes:

    Most organizations are planning some combination of remote and onsite work in 2022 – the highest reported plans for WFH were hybrid, balanced, and partial work-from-home. This builds on our findings in the IT Talent Trends 2022 report.

    Feasibility of virtual IT teams

    What percentage of roles in IT are capable of being performed remotely permanently?

    Approximately what percentage of roles in IT are capable of being performed remotely permanently?

    0% to less than 10%: 3%; 10% to less than 25%: 5%; 25% to less than 50%: 12%; 50% to less than 75%: 30%; 75% to 100%L 50%.

    IT Talent Trends, 2022; n=207

    Speaker’s Notes:

    80% of respondents estimated that 50 to 100% of IT roles can be performed remotely.

    Virtual teams take all kinds of forms

    A virtual team is any team that has members that are not colocated and relies on technology for communications.

    This image depicts the three levels of virtual teams, Municipal; National; Global.

    Speaker’s Notes:

    Before we start, it will be useful to review what we mean by the term “virtual team.” For our purposes we will be defining a virtual team as any team that has members that are not colocated and relies on technology for communications.

    There are a wide variety of virtual work arrangements and a variety of terms used to describe them. For example, some common terms include:

    • “Flexible work arrangements”: Employees have the option to work where they see fit (within certain constraints). They may choose to work from the office, home, a shared office space, the road, etc.
    • “Remote work,” “work from home,” and “telecommuting”: These are just various ways of describing how or where people are working virtually. They all share the idea that these kinds of employees are not colocated.
    • “Multi-office team”: the team members all work in office environments, but they may not always be in the same office as their team members or manager.

    Our definition of virtual work covers all of these terms. It is also distance neutral, meaning that it applies equally to teams that are dispersed globally or regionally or even those working in the same cities but dispersed throughout different buildings. Our definition also applies whether virtual employees work full time or part time.

    The challenges facing managers arise as soon as some team members are not colocated and have to rely on technology to communicate and coordinate work. Greater distances between employees can complicate challenges (e.g. time zone coordination), but the core challenges of managing virtual teams are the same whether those workers are merely located in different buildings in the same city or in different buildings on different continents.

    1.1 What kind of virtual team do you lead?

    15 Minutes

    Working on your own, take five minutes to figure out what kind of virtual team you lead.

    1. How many people on your team work virtually (all, most, or a small percentage)?
    2. How often and how regularly do they tend to work virtually (full time, part time regularly, or part time as needed)?
    3. What kinds of virtual work arrangements are there on your team (multi-site, work from home, mobile employees)?
    4. Where do your workers tend to be physically located (different offices but in the same city/region or globally dispersed)?
    5. Record this information in your workbook.
    6. Discuss as a group.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Size of virtual team
    • Current remote work practices

    Output

    • Documented list of current state of remote work

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Advantages

    Benefits to the organization

    Benefits to employees

    Operational continuity in disaster situations that prevent employees from coming into the office.

    Cost savings: Employees who WFH half the time can save $2,500 to $4,000 per year (Global Workplace Analytics, 2021).

    Cost savings: Organizations save ~$11,000 annually per employee working from home half the time (Global Workplace Analytics, 2021).

    Time savings: Employees who WFH half the time save on average 11 workdays per year (Global Workplace Analytics, 2021).

    Increased attraction: 71% of employees would likely choose one employer over another based on WFH offerings (Owl Labs, 2021).

    Improved wellbeing:

    83% employees agree that WFH would make them happier.

    80% agree that WFH would decrease their stress.

    81% agree that WFH would improve their ability to manage their work-life balance.

    (Owl Labs, 2021)

    Increased retention: 74% of employees would be less likely to leave their employer if they could WFH (Owl Labs, 2021).

    Increased flexibility: 32% of employees rated the “ability to have a flexible schedule” as the biggest benefit of WFH (OWL Labs, 2021).

    Increased productivity: 50% of employees report they would maintain or increase their productivity while working from home (Glassdoor Team, 2020).

    Increased engagement: Offsite employees tend to have higher overall engagement than onsite employees (McLean & Company Engagement Survey, 2020).

    Speaker’s Notes:

    Remote work arrangements are becoming more and more common, and for good reason: there are a lot of benefits to the organization – and to employees.

    #1: Save Money

    Perhaps one of the most common reasons for opting for remote-work arrangements is the potential cost savings. One study found that organizations could save about $11,000 per employee working from home half the time (Global Workplace Analytics, 2021).

    #2 Increased Attraction

    In addition, supporting remote-work arrangements can attract employees. One study found that 71% of employees would likely choose one employer over another based on WFH offerings (Owl Labs, 2019).

    #3 Improve productivity.

    There are also improvements to productivity. Fifty percent of employees report they would maintain or increase their productivity while working from home (Glassdoor Team, 2020).

    Remote work also has benefits to employees.

    #1: Save Money

    As with organizations, employees also benefit financially from remote work arrangements, saving between $2,500 and $4,000 and on average 11 working days while working from home half of the time.

    #2: Improved Wellbeing

    Most employees agree that working from home makes them happier, reduces stress, and provides an improved work-life balance through increased flexibility.

    Challenges

    Organizations

    • Concerns that WFH may stifle innovation (Scientific American, 2021), likely due to the potential lack of collaboration and knowledge sharing.
    • Fewer organic opportunities for informal interaction between employees working from home means active efforts are required to foster organizational culture.

    Leaders

    • 42% of managers believe that monitoring the productivity of their direct reports is a top challenge of WFH (Ultimate Software, 2019).
    • The lack of in-person supervision compounded with a lack of trust in employees leads many leaders to believe that WFH will result in a drop in productivity.

    Employees

    • 20% of employees report collaboration/communication as their top struggle with WFH (Owl Labs, 2021).
    • Employees often experience burnout from working longer hours due to the lack of commute, blurring of work and home life, and the perceived need to prove their productivity.

    Many of these barriers can be addressed by changing traditional mindsets and finding alternative ways of working, but the traditional approach to work is so entrenched that it has been hard to make the shift.

    Speaker’s Notes:

    Many organizations are still grappling with the challenges of remote work. Some are just perceived challenges, while others are quite real.

    Limited innovation and a lack of informal interaction are a potential consequence of failing to properly adapt to the remote-work environment.

    Leaders also face challenges with remote work. Losing in-person supervision has led to the lack of trust and a perceived drop in productivity.

    A study conducted 2021 asked remote workers to identify their biggest struggle with working remotely. The top three struggles remote workers report facing are unplugging after work, loneliness, and collaborating and/or communicating.

    Seeing the struggles remote workers identify is a good reminder that these employees have a unique set of challenges. They need their managers to help them set boundaries around their work; create feelings of connectedness to the organization, culture, and team; and be expert communicators.

    1.2 Virtual teams: benefits and challenges

    20 Minutes

    1. Discuss and list:
      1. Any positives you’ve experienced since managing virtual employees.
      2. Any challenges you’ve had to manage connected to managing virtual employees.
    2. Record information in the workbook.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Personal experiences managing remote teams

    Output

    • List of benefits and challenges of remote work

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Effectively Manage Virtual Teams

    Section 1.2

    Laying the foundations for a virtual team

    The 3i’s: Inform, interact, and involve your way to effective management:

    Inform

    Interact Involve

    ↓ Down

    Connect

    ↑ Up

    Tell employees the whys

    Get to know employees

    Solicit input from employees

    Speaker’s Notes:

    Effectively managing a virtual team really comes down to adopting management approaches that will engage virtual employees.

    Managing a virtual team does not actually require a new management style. The basics of effective management are the same in both colocated and virtual teams; however, the emphasis on certain behaviors and actions we take often differs. Managing a virtual team requires much more thoughtfulness and planning in our everyday interactions with our teams as we cannot rely on the relative ease of face-to-face interactions available to colocated teams.

    The 3i’s Engaging Management Model is useful when interacting with all employees and provides a handy framework for more planful interactions with virtual employees.

    Think of your management responsibilities in these three buckets – they are the most important components of being an effective manager. We’re first going to look at inform and involve before moving on to interact.

    Inform: Relay information down from senior management and leaders to employees. Communicate the rationale behind decisions and priorities, and always explain how they will directly affect employees.

    Why is this important? According to McLean & Company’s Engagement Survey data, employees who say their managers keep them well informed about decisions that affect them are 3.4 times more likely to be engaged (Source: McLean & Company, 2020; N=77,363). Your first reaction to this might be “I already do this,” which may very well be the case. Keep in mind, though, we sometimes tend to communicate on a “need-to-know basis,” especially when we are stressed or short on time. Engaging employees takes more. Always focus on explaining the “why?” or the rationale behind business decisions.

    It might seem like this domain should be the least affected, since important company announcements probably continue in a remote environment. But remember that information like that also flows informally. And even in formal settings, there are question-and-answer opportunities. Or maybe your employee might come to your office to ask for more details. Virtual team members can’t gather around the watercooler. They don’t have the same opportunities to hear information in passing as people who are colocated do, so managers need to make a concerted effort to share information with virtual team members in a clear and timely way.

    Swinging over to the other end, we have involve: Involve your employees. Solicit information and feedback from employees and collaborate with them.

    However, it’s not enough to just solicit their feedback and input; you also need to act on it.

    Make sure you involve your employees in a meaningful way. Such collaboration makes employees feel like a valued part of the team. Not to mention that they often have information and perspectives that can help make your decisions stronger!

    Employees who say their department leaders act on feedback from them are 3.9 times more likely to be engaged than those whose leaders don’t. (Source: McLean & Company, 2020; N=59,779). That is a huge difference!

    Keeping virtual employees engaged and feeling connected and committed to the organization requires planful and regular application of the 3i’s model.

    Finally, Interact: Connect with employees on a personal level; get to know them and understand who they are on a personal and professional level.

    Why? Well, over and above the fact that it can be rewarding for you to build stronger relationships with your team, our data shows that human connection makes a significant difference with employees. Employees who believe their managers care about them as a person are 3.8 times more likely to be engaged than those who do not (Source: McLean & Company, 2017; N=70,927).

    And you might find that in a remote environment, this is the area that suffers the most, since a lot of these interactions tend to be unscripted, unscheduled, and face to face.

    Typically, if we weren’t in the midst of a pandemic, we’d emphasize the importance of allocating some budget to travel and get some face-to-face time with your staff. Meeting and interacting with team members face to face is crucial to building trusting relationships, and ultimately, an effective team, so given the context of our current circumstances, we recommend the use of video when interacting with your employees who are remote.

    Relay information down from senior management to employees.

    Ensure they’ve seen and understand any organization-wide communication.

    Share any updates in a timely manner.

    Connect with employees on a personal level.
    Ask how they’re doing with the new work arrangement.
    Express empathy for challenges (sick family member, COVID-19 diagnosis, etc.).
    Ask how you can support them.
    Schedule informal virtual coffee breaks a couple of times a week and talk about non-work topics.

    Get information from employees and collaborate with them.
    Invite their input (e.g. have a “winning remotely” brainstorming session).
    Escalate any challenges you can’t address to your VP.
    Give them as much autonomy over their work as possible – don’t micromanage.

    1.3 Identify behaviors to inform, interact with, and involve team members

    20 Minutes

    Individually:

    1. Identify one behavior for each of Inform, Interact, and Involve to improve.
    2. Record information in the workbook.

    As a group:

    1. Discuss behaviors to improve for each of Inform, Interact, and Involve and record new ideas to incorporate into your leadership practice.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • 3i's Model
    • Current leadership behaviors to improve

    Output

    • List of behaviors to better inform, interact, and involve team members

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Laying the foundation: Set clear expectations

    Tasks

    • What are the daily and weekly team activities? How do they affect one another?

    Goals

    • Clarify any adjustments to strategy based on the situation; clarify metrics.

    Communication

    • How often and when will you check in? What should they come to you for? What modalities will you use and when?

    Roadblocks

    • Involve your team in deciding how to handle roadblocks and challenges.

    Speaker’s Notes:

    Clear expectations are important in any environment, remote or not. But it is much harder to do in a remote environment. The barrier to seeking clarification is so much higher (For example, email vs. catching someone in hallway, or you can’t notice that a colleague is struggling without them asking).

    Communication – This is one area where the importance actually changes in a remote context. We’ve been talking about a lot of practices that are the same in importance whether you’re in an office or remote, and maybe you just enact them differently. But clarity around communication processes is actually tremendously more important in a remote environment.

    Adopt a five-step process to set specific and documented expectations

    1. Check in with how your team member is doing on a daily basis. Don’t forget to ask how they are doing personally.
    2. Follow up on previously set expectations. Ask how things are going. Discuss if priorities or expectations have changed and update expectations accordingly.
    3. Ask if they are experiencing any roadblocks and collaborate to find solutions.
    4. Provide feedback and recognition as appropriate.
    5. Document newly set expectations – either through a collaboration tool or through email.

    Speaker’s Notes:

    Suggested best practices: Hold daily team check-ins and hold separate individual check-ins. Increase frequency of these.

    During Check-in
    1. Set up a running Teams chat for your team.
    • This is your community. You must be the biggest cheerleader and keep the team feeling like they are contributing. Make sure everyone is involved.
  • Start each workday with a video scrum to discuss what’s coming today for your team.
    • Ask: What are you planning to work on today? Are there any roadblocks I can help with? Technology working OK?
  • Right after your team meeting, set up an “every morning video call” one-on-one meeting with each team member (5-10 minutes max).
    • Ask: What are you working on today? What will your momentum metrics be? What do you need from me?
  • Set up a separate video call at the end of the afternoon to review what everyone did (5 minutes max).
    • Ask: What went well? What went poorly? How can we improve?
  • After a Check-in
    1. Be accessible:
      • Ensure your team knows the best way to get in touch with you.
      • Email is not ideal for informal, frequent contact – use messaging instead.
    2. Be available:
      • Keep a running conversation going in Teams.
      • Respond in a timely manner; address issues quickly so that your team has what they need to succeed.
      • Let your team know if you’ll be away/offline for longer than an hour during the workday and ask them to do the same (e.g. for an appointment).
      • Help address roadblocks, answer questions, clarify priorities, etc.

    Define communication requirements

    • Set up an ongoing communication with your team.
      • E.g. a running conversation on Slack or Teams
    • Schedule daily virtual meetings and check-ins.
      • This can help to maintain a sense of normalcy and conduct a pulse check on your team.
    • Use video for important conversations.
      • Video chat creates better rapport, shows body language, and lessens feelings of isolation, but it can be taxing.
    • Set expectations about communication.
      • Differentiate between day-to-day communication and updates on the state of events.
    • Clearly communicate the collaboration toolkit.
      • What do we have available? What is the purpose of each?

    Speaker’s Notes:

    With organizational expectations set, we need to establish team expectations around how we collaborate and communicate.

    Today there is no lack of technology available to support our virtual communication. We can use the phone, conference calls, videoconferencing, Skype, instant messaging, [insert organization-specific technological tools.], etc.

    However, it is important to have a common understanding of which tools are most appropriate when and for what.

    What are some of the communication channel techniques you’ve found useful in your informal interactions with employees or that you’ve seen work well between employees?

    [Have participants share any technological tools they find useful and why.]

    Check in with your team on communication requirements

    • Should we share our calendars, hours of availability, and/or IM status?
    • How often should we meet as a team and one on one? Should we institute a time when we should not communicate virtually?
    • Which communication channel should we use in what context? How should we decide which communication method to use?
    • Should I share guidelines for email and meeting etiquette (or any other communication methods)?
    • Should we establish a new team charter?
    • What feedback does the team have regarding how we’ve been communicating?

    Speaker’s Notes:

    Whenever we interact, we make the following kinds of social exchanges. We exchange:

    • Information: Data or opinions
    • Emotions: Feelings and evaluations about the data or opinions
    • Motivations: What we feel like doing in response to data or opinions

    We need to make sure that these exchanges are happening as each team member intends. To do this, we have to be sensitive to what information is being conveyed, what emotions are involved in the interaction, and how we are motivating each other to act through the interaction. Every interaction will have intended and unintended effects on others. No one can pay attention to all of these aspects of communication all the time, but if we develop habits that are conducive to successful exchanges in all three areas, we can become more effective.

    In addition to being mindful of the exchange in our communication, as managers it is critical to build trusting relationships and rapport with employees as we saw in the 3i's model. However, in virtual teams we cannot rely on running into someone in the kitchen or hallway to have an informal conversation. We need to be thoughtful and deliberate in our interactions with employees. We need to find alternative ways to build these relationships with and between employees that are both easy and accepted by ourselves and employees. Because of that, it is important to set communication norms and really understand each other’s preferences. For example:

    • Timing of responses. Set the expectation that emails should be responded to within X hours/days unless otherwise noted in the actual email.
    • When it’s appropriate to send an email vs. using instant messaging.
    • A team charter – the team’s objectives, individual roles and responsibilities, and communication and collaboration guidelines.

    1.4 Identify and share ways you prefer to communicate for different activities

    20 Minutes

    1. Brainstorm and list the different types of exchanges you have with your virtual employees and they have with each other.
    2. List the various communication tools in use on your team.
    3. Assign a preferred communication method for each type of exchange

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Current types of exchanges on team
    • Communication methods used

    Output

    • Defined ways to communicate for each communication method

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Effectively Manage Virtual Teams

    Section 2.1
    Balancing wellbeing and performance in a virtual team context

    The pandemic has taken a significant toll on employees’ mental wellbeing

    44% of employees reported declined mental wellbeing since the start of the pandemic.

    • 44% of those who work from home.
    • 34% of those who have other work arrangements (i.e. onsite).
      (Qualtrics, 2020)

    "If one of our colleagues were to fall, break their leg, and get a cast, colleagues would probably rally around that person signing their cast. But, really, we don’t view the health of our brain the same as we do the health of our body."
    – Centre for Addiction and Mental Health (CAMH) Employee

    Speaker’s Notes:

    Despite being over two years into the pandemic, we are still seeing its effect on the physical and mental health of employees.

    The mental health aspect has been often overlooked by organizations, but in order to have a safe, happy, and productive team, you need to give mental health the same level of focus as physical heath. This requires a change in mindset in order for you as a leader to support your team's mental wellbeing during the pandemic and beyond.

    Employees are reporting several key mental wellbeing challenges

    Stress: 67%

    Employees report increasingly high levels of stress from the onset of COVID-19, stating that it has been the most stressful time in their careers.
    (Qualtrics, 2020)

    Anxiety: 57%

    Similarly, employees’ anxiety levels have peaked because of the pandemic and the uncertainty it brings.
    (Qualtrics, 2020)

    Four main themes surrounding stress & anxiety

    • Fear of contracting COVID-19
    • Financial pressures
    • Job security and uncertainty
    • Loneliness caused by social isolation

    Speaker’s Notes:

    The stress and uncertainty about the future caused by the pandemic and its fallout are posing the biggest challenges to employees.

    Organizations shutting down operations, moving to fully remote, or requiring some of their employees to be on site based on the current situation causes a lot of anxiety as employees are not able to plan for what is coming next.

    Adding in the loss of social networks and in-person interactions exacerbates the problem employees are facing. As leaders, it is your job to understand and mitigate these challenges wherever possible.

    Re-examine your workplace barriers to mental wellbeing

    New Barriers

    Old Barriers

    • Childcare/eldercare responsibilities
    • Fear of workplace health risks
    • Work location
    • Lost support networks
    • Changed work schedules
    • Social distancing
    • Workload
    • Fear of stigma
    • Benefits limits
    • Limits to paid time off
    • Lack of manager knowledge

    Key considerations:

    • Work Environment
      • Accessibility of mental wellbeing programs and initiatives
    • Organizational Culture
      • Modeling of wellbeing
      • Paid time off
      • Discussions around mental wellbeing
    • Total Rewards
      • Benefits coverage
      • Employee assistance programs (EAPs)
      • Manager knowledge

    Speaker’s Notes:

    Organizational barriers to mental wellbeing are sadly not new. Workloads, stigma around mental health, lack of sick days, and limits to benefits for mental health supports were challenges before the pandemic. Adding in the new barriers can very easily result in a tipping point for many employees who are simply not equipped to deal with or supported in dealing with the added burden of remote work in a post-pandemic world.

    To provide the needed support to your employees, it’s important to be mindful of the key considerations.

    Holistic employee wellbeing has never been more critical than it is right now

    Employee Wellbeing

    Physical

    The physical body; ensuring a person has the freedom, opportunities, and resources needed to sustainably maintain bodily health.

    Mental

    The psychological ability to cope with information, emotions, desires, and stressors (e.g. change, threats, etc.) in a healthy and balanced way. Essential for day-to-day living and functioning.

    Social

    The state of personal and professional relationships, including personal and community engagement. The capability for genuine, authentic, and mutually affirming interactions with others.

    Financial

    The state of a person’s finances; ensuring that a person feels capable to handle their financial situation and behaviors. The ability to live productively without the weight of financial stress.

    Speaker’s Notes:

    As a manager, you need to be mindful of all of these. Create an atmosphere where people are able to come to you for help if they are struggling in one of these areas. For example, some people might be more comfortable raising physical safety or comfort concerns (personal protective equipment, ergonomics) than concerns about mental health. Or they might feel like their feelings of loneliness are not appropriate to bring into their professional life.

    Wellbeing is a delicate subject, and most of the time, people are reluctant to talk about it. It requires vulnerability. And here’s the thing about it: Your staff will not drive a change in your team around making these topics more acceptable. It has to be the manager. You have to be the one to not just tell but show them that it’s OK to talk about this

    Encourage human-centered workplace behaviors

    Promote empathy as a focus value

    • Listen and show compassion.
    • Allow room for emotions.

    Encourage social connection

    • Leverage networks.
    • Infuse fun where possible.
    • Encourage community and sense of joint purpose.

    Cultivate a growth mindset

    • Encourage mindfulness and resilience.
    • Express gratitude.

    Empower others

    • Ask employees what they need and co-create solutions.
    • Integrate needs of personal and family life with work life.
    • Be clear on accountability.

    Speaker’s Notes:

    As a leader, your focus should be on encouraging the right behaviors on your team and in yourself.
    Show empathy; allowing room for emotion and showing you are willing and able to listen goes a long way to establishing trust.

    A growth mindset applies to resilience too. A person with a growth mindset is more likely to believe that even though they’re struggling now, they will get through it.

    Infuse fun – schedule social check-ins. This is not wasted time, or time off work – it is an integral part of the workday. We have less of it now organically, so you must bring it back deliberately. Remember that theme? We are deliberately reinfusing important organic elements into the workday.

    The last item, empowerment, is interesting – being clear on accountability. Have clear performance expectations. It might sound like telling people what to do would be disempowering, but it’s the opposite. By clarifying the goals of what they need to achieve, you empower them to invent their own “how,” because you and they are both sure they will arrive at the place that you agreed on. We will talk more about this in performance management.

    Emphasize the importance of wellbeing by setting the tone for the team

    Managers must…

    • LEAD BY EXAMPLE
      • Employees look to their managers for cues about how to react in a crisis. If the manager reacts with stress and fear, the team will follow.
    • ENCOURAGE OPEN COMMUNICATION
      • Frequent check-ins and transparent communication are essential during a time of crisis, especially when working remotely.
    • ACKNOWLEDGE THE SITUATION
      • Recognizing the stress that teams may be facing and expressing confidence in them goes a long way.
    • PROMOTE WELLBEING
      • Managers who take care of themselves can better support their teams and encourage them to practice good self-care too.
    • REDUCE STIGMA
      • Reducing stigma around mental health encourages people to come forward with their struggles and get the support they need.

    Speaker’s Notes:

    Emphasize the importance of wellbeing with what you do. If you do not model self-care behavior, people will follow what you do, not what you say.

    Lead by example – Live the behaviors you want to see in your employees. If you show confidence, positivity, and resiliency, it will filter down to your team.

    Encourage open communication – Have regular meetings where your team is able to set the agenda, or allow one-on-ones to be guided by the employee. Make sure these are scheduled and keep them a priority.

    Acknowledge the situation – Pretending things are normal doesn’t help the situation. Talk about the stress that the team is facing and express confidence that you will get through it together.

    Promote wellbeing – Take time off, don’t work when you’re sick, and you will be better able to support your team!

    Reduce stigma – Call it out when you see it and be sure to remind people of and provide access to any supports that the organization has.

    Conduct dedicated conversations around wellbeing

    1. Check in with how each team member is doing frequently and ask how they are doing personally.
    2. Discuss how things are going. Ask: “How is your work situation working out for you so far? Do you feel supported? How are you taking care of yourself in these circumstances?”
    3. Ask if there are any stressors or roadblocks that they have experienced and collaborate to find solutions.
    4. Provide reassurance of your support and confidence in them.
    5. Document the plan for managing stressors and roadblocks – either through a collaboration tool or through email.

    Speaker’s Notes:

    Going back to the idea of a growth mindset – this may be uncomfortable for you as a manager. So here’s a step-by-step guide that over time you can morph into your own style.

    With your team – be prepared to share first and to show it is OK to be vulnerable and address wellbeing seriously.

    1. Make sure you make time for the personal. Ask about their lives and show compassion.
    2. Give opportunities for them to bring up things that might stay hidden otherwise. Ask questions that show you care.
    3. Help identify areas they are struggling with and work with them to move past those areas.
    4. Make sure they feel supported in what they are going through and reassured of their place on the team.
    5. Roll wellbeing into your planning process. This signals to team that you see wellbeing as important, not just a checklist to cover during a team meeting, and are ready to follow through on it.

    Recognize when professional help is needed

    SIGNS OF BURNOUT: Overwhelmed; Frequent personal disclosure; Trouble sleeping and focusing; Frequent time off; Strained relationships; Substance abuse; Poor work performance

    Speaker’s Notes:

    As a leader, it is important to be on the lookout for warning signs of burnout and know when to step in and direct individuals to professional help.

    Poor work performance – They struggle to maintain work performance, even after you’ve worked with them to create coping strategies.

    Overwhelmed – They repeatedly tell you that they feel overwhelmed, very stressed, or physically unwell.

    Frequent personal disclosure – They want to discuss their personal struggles at length on a regular basis.

    Trouble sleeping and focusing – They tell you that they are not sleeping properly and are unable to focus on work.

    Frequent time off – They feel the need to take time off more frequently.

    Strained relationships – They have difficulty communicating effectively with coworkers; relationships are strained.

    Substance abuse – They show signs of substance abuse (e.g. drunk/high while working, social media posts about drinking during the day).

    Keeping an eye out for these signs and being able to step in before they become unmanageable can mean the difference between keeping and losing an employee experiencing burnout.

    Remember: Managers also need support

    • Added burden
    • Lead by example
    • Self-care

    Speaker’s Notes:

    If you’ve got managers under you, be mindful of their unique stressors. Don’t forget to check in with them, too.

    If you are a manager, remember to take care of yourself and check in with your own manager about your own wellbeing.

    2.1 Balance wellbeing and performance in a virtual team context

    30 Minutes

    1. Brainstorm and list current practices and challenges connected to wellbeing on your teams.
    2. Choose one or two wellbeing challenges that are most relevant for your team.
    3. Discuss as a group and identify one solution for each challenge that you can put into action with your own virtual team. Document this under “Action plan to move forward” on the workbook slide “2.1 Balancing wellbeing and performance in a virtual team context.”

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Current practices and challenges connected to wellbeing

    Output

    • Action plan for each challenge listed

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Effectively Manage Virtual Teams

    Section 2.2

    Managing performance in a virtual team context

    Virtual employees are craving more meaningful interactions with their managers

    A survey indicated that, overall, remote employees showed less satisfaction with manager interactions compared to other non-remote employees.

    1. 16% less likely to strongly agree their manager involves them in setting goals at work.
    2. 28% less likely to strongly agree they continually work with their manager to clarify work priorities.
    3. 29% less likely to strongly agree they have reviewed their greatest successes with their manager in the last six months.
    4. 30% less likely to strongly agree they have talked with their manager about progress toward goals in the last six months.

    Speaker’s Notes:

    In many cases, we have put people into virtual roles because they are self-directed and self-motivated workers who can thrive with the kind of autonomy and flexibility that comes with virtual work. As managers, we should expect many of these workers to be proactively interested in how they are performing and in developing their careers.

    It would be a mistake to take a hands-off approach when managing virtual workers. A recent survey indicated that, overall, remote employees showed less satisfaction with manager interactions compared to other non-remote employees. It was also one of the aspects of their work experience they were least satisfied with overall (Gallup, State of the American Workplace, 2017). Simply put, virtual employees are craving more meaningful conversations with their managers.

    While conversations about performance and development are important for all employees (virtual or non-virtual), managers of remote teams can have a significant positive impact on their virtual employees’ experience and engagement at work by making efforts to improve their involvement and support in these areas.

    During this module we will work together to identify ways that each of us can improve how we manage the performance of our virtual employees. At the end of the module everyone will create an action plan that they can put in place with their own teams. In the next module, we go through a similar set of activities to create an action plan for our interactions with employees about their development.

    Building blocks of performance management

    • Goal Setting

    • Setting Expectations

    • Measuring Progress

    • Feedback & Coaching

    Speaker’s Notes:

    [Include a visualization of your existing performance management process in the slide. Walk the participants through the process to remind them of what is expected. While the managers participating in the training should know this, there may be different understandings of it, or it might just be the case that it’s been a while since people looked at the official process. The intention here is merely to ensure everyone is on the same page for the purposes of the activities that follow.]

    Now that we’ve reviewed performance management at a high level, let’s dive into what is currently happening with the performance management of virtual teams.

    I know that you have some fairly extensive material at your organization around how to manage performance. This is fantastic. And we’re going to focus mainly on how things change in a virtual context.

    When measuring progress, how do you as a manager make sure that you are comfortable not seeing your team physically at their desks? This is the biggest challenge for remote managers.

    2.2 Share current performance management practices for virtual teams

    30 Minutes

    1. Brainstorm and list current high-level performance management practices connected to each building block. Record in your workbook.
    2. Discuss current challenges connected to implementing the building blocks with virtual employees.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Current performance management practices
    • Challenges surrounding performance management

    Output

    • Current state of virtual performance management defined

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Communicate the “why”: Cascade organizational goals

    This image depicts the Cascade of Why- organizational goals. Organizational Mission; Organizational Values; Organizational Goals; Department Goals; Team Goals; Individual Goals

    Speaker’s Notes:

    When assisting your employees with their goals, think about the organization’s overall mission and goals to help you determine team and individual goals.

    • Organizational goals: Employee goals should align with organizational goals. Goals may cascade down through the organization.
    • Department or team goals: Create a clear strategy based on high-level goals for the year so employees can link short-term goals to the larger picture.
    • Individual goals: Employees should draw on their individual development plan to help set performance goals.

    Sometimes it’s difficult to get employees thinking about goals and they need assistance from managers. It’s also important to be clear on team goals to help guide employees in setting individual ones.

    The basic idea is to show people how their individual day-to-day work contributes to the overall success of the organization. It gives them a sense of purpose and a rationale, which translates to motivation. And also helps them problem solve with more autonomy.

    You’re giving people a sense of the importance of their own contribution.

    How to set clear expectations for job performance

    Ensure employees have a clear understanding of what’s expected for their role:

    1. Review their metrics so they understand how they’re being evaluated.
    2. Outline daily, weekly, monthly, and quarterly goals.
    3. If needed, help them plan when and how each part of their job should be done and what to prioritize.
    4. Ask them to come to you early if they experience a roadblock so that you can help rather than having them flounder on their own.
    5. Document instances where employees aren’t meeting role or performance expectations.

    Speaker’s Notes:

    Tailor performance goals to address any root causes of poor performance.

    For example:

    • If personal factors are getting in the way, work with the employee (and HR if necessary) to create a strategy to address any impediments to performing in the role.

    Tips for managing performance remotely

    • Reflect on one key question: What needs to happen for my direct reports to continue their work while working remotely?
    • Manage for results – not employee visibility at the office.
    • Use metrics to measure performance. If you don’t have any, define tasks and deliverables as clearly as possible and conduct regular check-ins.
    • Work with the employee to set goals and metrics to measure progress.

    Focus on results: Be flexible about how and when work gets done, as long as team members are hitting their targets.

    • For example, if they have childcare duties from 3 to 5pm during school closures and want to work later in the evening to make up the time, that’s fine – as long as the work gets done.
    • Set clear expectations about which work must be done during normal work hours (e.g. attend team meetings, client calls) and which can be done at other hours.
    • Team members must arrange with you any nonstandard working hours before they start using an altered schedule. It is your responsibility to keep track of hours and any alternate arrangements.
    • Don’t make team members feel constantly monitored (i.e. “Where were you from 10 to 11am?”); trust them until you have reason not to.

    Encourage your team members to unplug: If they’re sending you emails late at night and they haven’t made an alternate work hours agreement with you, encourage them to take time away from work.

    • It’s harder to unplug when working at home, and everyone needs a break to stay productive.

    Avoid micromanagement with holistic performance measures

    Quality

    How well tasks are accomplished

    Behavior

    Related to specific employee actions, skills, or attitudes

    Quantity

    How much work gets done

    Holistic measures demonstrate all the components required for optimal performance. This is the biggest driver in having comfort as a manager of a remote team and avoiding micromanagement. Typically these are set at the organizational level. You may need to adjust for individual roles, etc.

    Speaker's Notes:

    Metrics come in different types. One way to ensure your metrics capture the full picture is to use a mix of different kinds of metrics.

    Some metrics are quantitative: they describe quantifiable or numerical aspects of the goal. This includes timeliness. On the other hand, qualitative metrics have to do with the final outcome or product. And behavioral metrics have to do with employees' actions, skills, or attitudes. Using different kinds of metrics together helps you set holistic measures, which capture all the components of optimal performance toward your goal and prevent gaming the system.

    Let's take an example:

    A courier might have an objective to do a good job delivering packages. An example of a quantitative measure might be that the courier is required to deliver X number of packages per day on time. The accompanying metrics would be the number of packages delivered per day and the ratio of packages delivered on time vs. late.

    Can you see a problem if we use only these quantitative measures to evaluate the courier's performance?

    Wait to see if anyone volunteers an answer. Discuss suggestions.

    That's right, if the courier's only goal is to deliver more packages, they might start to rush, may ruin the packages, and may offer poor customer service. We can help to guard against this by implementing qualitative and behavioral measures as well. For example, a qualitative measure might be that the courier is required to deliver the packages in mint condition. And the metric would be the number of customer complaints about damaged packages or ratings on a satisfaction survey related to package condition.

    For the behavioral aspect, the courier might be required to provide customer-centric service with a positive attitude. The metrics could be ratings on customer satisfaction surveys related to the courier's demeanor or observations by the manager.

    Managing poor performance virtually: Look for key signs

    It’s crucial to acknowledge that an employee might have an “off week” or need time to balance work and life – things that can be addressed with performance management (PM) techniques. Managers should move into the process for performance improvement when:

    1. Performance fluctuates frequently or significantly.
    2. Performance has dropped for an extended period of time.
    3. Expectations are consistently not being met.

    Key signs to look for:

    • PM data/performance-related assessments
    • Continual absences
    • Decreased quality or quantity of output
    • Frequent excuses (e.g. repeated internet outages)
    • Lack of effort or follow-through
    • Missed deadlines
    • Poor communication or lack of responsiveness
    • Failure to improve

    Speaker’s notes:

    • Let’s talk more about identifying low performance.
    • Everybody has off days or weeks. And what if they are new to the role or new to working remotely? Their performance may be low because they need time to adjust. These sort of situations should be managed, but they don’t require moving into the process for performance improvement.
    • When managing employees who are remote or working in a hybrid situation, it is important to be alert to these signs and check in with your employees on a regular basis. Aim to identify and work with employees on addressing performance issues as they arise rather than waiting until it’s too late. Depending on your availability, the needs of the employee, and the complexity of their role, check-ins could occur daily, weekly, and/or monthly. As I mentioned, for remote employees, it’s often better to check-in more frequently but for a shorter period of time.
    • You want to be present in their work life and available to help them manage through roadblocks and stay on track, but try to avoid over-monitoring employees. Micromanaging can impact the manager-employee relationship and lead to the employee feeling that there is a lack of trust. Remember, the employee needs to be responsible for their own performance and improvement.
    • Check-ins should not just be about the work either. Take some time to check in personally. This is particularly important when managing remotely. It enables you to build a personal relationship with the employee and also keeps you aware if there are other personal issues at play that are impacting their work.
    • So, how do you know what does require performance improvement? There are three key things that you should look for that are clear signals that performance improvement is necessary:
      1. Their performance is fluctuating frequently or significantly.
      2. Their performance has dropped for an extended period of time.
      3. Expectations are consistently not being met.
    • What do you think are some key signs to look for that indicate a performance issue is occurring?

    Managing poor performance virtually: Conducting remote performance conversations

    Video calling

    Always use video calls instead of phone calls when possible so that you don’t lose physical cues and body language.

    Meeting invitations

    Adding HR/your leader to a meeting invite about performance may cause undue stress. Think through who needs to participate and whether they need to be included in the invite itself.

    Communication

    Ensure there are no misunderstandings by setting context for each discussion and having the employee reiterate the takeaways back to you.

    Focus on behavior

    Don’t assume the intent behind the behavior(s) being discussed. Instead, just focus on the behavior itself.

    Policies

    Be sure to adhere to any relevant HR policies and support systems. Working with HR throughout the process will ensure none are overlooked.

    Speaker’s notes:

    There are a few best practices you should follow when having performance conversations:

    • First, if you are in a different work environment than your employee, always use video calls instead of phone calls whenever possible so that you don’t miss out on physical cues and body language. If videoconferencing isn’t the norm, encourage them to turn on their video. Be empathic that it can feel awkward but explain the benefits, and you will both have an easier time communicating and understanding each other.
    • As I’ve mentioned, be considerate of the environment they are in. If they are in the office and you are working remotely, be sure to book a private meeting room for them to go to for the conversation. If they are working from home, be sure to check that they are prepared and able to focus on the conversation.
    • Next, carefully consider who you are adding to the meeting invite and whether it’s necessary for them to be there. Adding HR or your leader to a meeting invite may cause undue stress for the employee.
    • Consider the timing of the invite. Don’t send it out weeks in advance. When a performance problem exists, you’ll want to address it as soon as possible. A day or two of notice would be an ideal approach because it gives them a heads up but will not cause them extended stress or worrying.
    • Be considerate about the timing of the meeting and what else they may have scheduled. For example, a Friday afternoon before they are heading off on vacation or right before they are leading an important client call would not be appropriate timing.
    • As we just mentioned clear communication is critical. Ensure there are no misunderstandings by setting context for each discussion and having the employee reiterate takeaways back to you.
    • Focus on the behavior and don’t assume their intent. It can be tempting to say, “I know you didn’t mean to miss the deadline,” but you don’t know what they intended. Often people are not aware of the impact their behavior can have on others.
    • Lastly, be sure to adhere to any relevant HR policies and support systems. Working with HR throughout the process will ensure nothing is overlooked.

    2.3 Identify challenges of current practices and propose solutions

    30 Minutes

    1. Select one or two challenges from the previous activity.
    2. Identify one solution for each challenge that you can put into action with your own virtual team. Document in the workbook.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Current performance management practices
    • Challenges surrounding performance management

    Output

    • Action plan to move forward

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Effectively Manage Virtual Teams

    Optional Section

    Employee development in a virtual team setting

    There are three main development approaches for both colocated and virtual employees

    Formal Training; Relational Learning; Experimental Learning

    Speaker’s Notes:

    As we have seen, our virtual employees crave more meaningful interactions with their managers. In addition to performance conversations, managers should also be having regular discussions with their employees about their employee development plans. One key component of these discussions is career planning. Whether you are thinking shorter term – how to become better at their current role – or longer term – how to advance beyond their current role – discussions about employee development are a great way to engage employees. Employees are ultimately responsible for creating and executing their own development plans, but managers are responsible for making sure that employees have thought through these plans and helping employees identify opportunities for executing those plans.

    To help us think about our own employee development practices, identify challenges they pose when working with virtual employees, and create solutions to these challenges, it is useful to think about employee development opportunities according to three types:

    1. The first kind of development opportunity is formal training. Formal training is organized and has a clearly defined curriculum and desired outcome. It usually takes the form of a group training session (like this one) or training videos or materials that employees can watch individually and on their own time. These opportunities usually end with a test or assignment that can be used to evaluate the degree to which the participant achieved the desired learning outcomes.
    2. The second kind of development opportunity is relational learning. Perhaps the most common form of this type of learning is coaching or mentoring. By establishing a long-term work relationship, checking in with employees about their daily work and development goals, and sharing their own experiences and knowledge, mentors help employees reflect and draw out learning from everyday, on-the-job development activities. Other examples include a peer support group or communities of practice. In these group settings peers share best practices and work together to overcome challenges.
    3. The third kind of development opportunity is experiential learning. This kind of opportunity provides employees the chance to work on real work problems, and the output of the development work can directly benefit the organization. Most people learn best by doing. On-the-job experiences that are challenging or new can force people to use and develop new skills and knowledge based on what worked effectively and what failed. Examples of experiential learning are on-the-job learning for new hires, stretch assignments, or special projects that take the employee beyond their daily routine and allow them to try new activities and develop competencies that they would not have the chance to develop as part of their regular job.

    According to McLean & Company, organizations should use the “70-20-10” rule as a rough guideline when working with employees to create their development plans: 10% of the plan should be dedicated to formal training opportunities, 20% to relational learning, and 70% to experiential learning. Managers should work with employees to identify their performance and career goals, ensure that their development plans are aligned with these goals, and include an appropriate mixture of all three kinds of development opportunities.

    To help identify challenges and solutions, think about how virtual work arrangements will impact the employee’s ability to leverage each type of opportunity at our organization.

    Here are some examples that can help us start thinking about the kinds of challenges virtual employees on our team face:

    Career Planning

    • One challenge can be identifying a career path that is consistent with working virtually. If switching from a virtual arrangement to an onsite arrangement is not a viable option for an employee, some career paths may not feasibly be open to them (at least as the company is currently organized). For example, if an employee would eventually like to be promoted to a senior leadership role in their business function but all senior leaders are required to work onsite at corporate headquarters, the employee will need to consider whether such a move is possible for them. In some cases employees may be willing to do this, but in others they may not. The important thing is to have these conversations with virtual employees and avoid the assumption that all career paths can be done virtually, since that might not be the case

    Formal Training

    • This is probably the least problematic form of employee development for virtual employees. In many cases this kind of training is scheduled well in advance, so virtual employees may be able to join non-virtual employees in person for some group training. When this is not possible (due to distance, budget, or time zone), many forms of group training can be recorded and watched by virtual employees later. Training videos and training materials can also easily be shared with virtual employees using existing collaboration software.

    Relational Learning

    • One major challenge here is developing a mentoring relationship virtually. As we discussed in the module on performance management, developing relationships virtually can be challenging because people cannot rely upon the kind of informal and spontaneous interactions that occur when people are located in the same office. Mentors and mentees will have to put in more effort and planning to get to know each other and they will have to schedule frequent check-ins so that employees can reflect upon their progress and experience (with the help of their mentors) more often.
    • Time zones and technology may pose potential barriers for certain candidates to be mentors. In some cases, employees that are best qualified to be mentors may not be as comfortable with collaborative software as other mentors or their mentees. If there are large time zone differences, some people who would otherwise be interested in acting as a mentor may be dissuaded. Managers need to take this into consideration if they are connecting employees with mentors or if they are thinking of taking on the mentor role themselves.

    Experiential Learning

    • Virtual employees risk being overlooked for special projects due to the “out of sight, out of mind” bias: When special projects come up, the temptation is to look around the room and see who is the best fit. The problem is, however, that in some cases the highest performers or best fit may not physically be in the room. In these cases it is important for managers to take on an advocate role for their employees and remind other managers that they have good virtual employees on their team that should be included or contacted. It is also important for managers to keep their team informed about these opportunities as often as possible.
    • Sometimes certain projects or certain kinds of work just cannot be done virtually in a company for a variety of reasons. The experiential learning opportunities will not be open to virtual employees. If such opportunities are open to the majority of other workers in this role (potentially putting virtual employees’ career development at a disadvantage relative to their peers), managers should work with their virtual employees to identify alternative experiences. Managers may also want to consider advocating for more or for higher quality experiential learning opportunities at the organization.

    Now that we have considered some general examples of challenges and solutions, let’s look at our own employee development practices and think about the practical steps we can take as managers to improve employee development for our virtual employees.

    Employee development basics

    • Career planning & performance improvement
    • Formal training
    • Relational learning
    • Experiential learning

    Speaker’s Notes:

    [Customize this slide according to your organization’s own policies and processes for employee development. Provide useful images that outline this on the slide, and in these notes describe the processes/policies that are in place. Note: In some cases policies or processes may not be designed with virtual employees or virtual teams in mind. That is okay for the purposes of this training module. In the following activities participants will discuss how they apply these policies and processes with their virtual teams. If your organization is interested in adapting its policies/processes to better support virtual workers, it may be useful to record those conversations to supplement existing policies later.]

    Now that we have considered some general examples of challenges and solutions, let’s look at our own employee development practices and think about the practical steps we can take as managers to improve employee development for our virtual employees.

    2.4 Share current practices for developing employees on a virtual team

    30 Minutes

    1. Brainstorm and list current high-level employee development practices. Record in your workbook.
    2. Discuss current challenges connected to developing virtual employees. Record in your workbook.
    3. Identify one solution for each challenge that you can put into action with your own virtual team.
    4. Discuss as a group.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Current employee development practices
    • Challenges surrounding employee development

    Output

    • Action plan to move forward

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Refine Action Plans

    2.5 Refine your action plan and commit to implementing it

    30 Minutes

    1. Review your action plans for consistency and overlap. Highlight any parts you may struggle to complete.
    2. Meeting with your group, summarize your plans to each other. Provide feedback and discuss each other’s action plans.
    3. Discuss how you can hold each other accountable.

    Download the Workbook: Equip Managers to Effectively Manage Virtual Teams

    Input

    • Action items from previous activities.

    Output

    • Action plan to move forward

    Materials

    • Workbook: Equip Managers to Effectively Manage Virtual Teams

    Participants

    • All managers with direct reports working virtually

    Summary of Accomplishment

    • We do not need to go out and learn a new set of manager responsibilities to better manage our virtual teams; rather, we have to “dial up” certain responsibilities we already have or adjust certain approaches that we already take.
    • It is important to set clear expectations. While managers are ultimately responsible for making sure expectations are set and are clearly communicated, they are not the only ones with responsibilities. Employees and managers need to work together to overcome the challenges that virtual work involves.
    • Virtual employees crave meaningful interactions with their managers and team. Managers must take charge in fostering an atmosphere of openness around wellbeing and establish effective performance management strategies. By being proactive with our virtual teams’ wellness and mindful of our performance management habits, we can take significant steps toward keeping these employees engaged and productive.
    • Effective management in virtual contexts requires being more deliberate than is typical in non-virtual contexts. By working as a group to identify challenges and propose solutions, we have helped each other create action plans that we can use going forward to continually improve our management practices.

    If you would like additional support, have our analysts guide you through an info-tech workshop or guided implementation.

    Contact your account representative for more information

    workshops@infotech.com

    1-888-670-8889

    Speaker’s Notes:

    First, let’s take a moment to summarize the key things we have learned today:

    1. We do not need to go out and learn a new set of manager competencies to better manage our virtual teams; rather, we have to “dial up” certain competencies we already have or adjust certain approaches that we already take. In many cases we just need to be more aware of the challenges that virtual communication poses and be more planful in our approaches.
    2. It is important to set clear expectations. While managers are ultimately responsible for making sure expectations are set and clearly communicated, they are not the only ones with responsibilities. Employees and managers need to work together to overcome the challenges that virtual work involves. Making sure that teams have meaningful conversations about expectations, come to a shared understanding of them, and record them will create a firm foundation for all other interactions on the virtual team.
    3. Virtual employees crave meaningful interactions with their managers related to performance and employee development. By creating action plans for improving these kinds of interactions with our teams, we can take significant steps toward keeping these employees engaged and productive.
    4. Effective performance management and employee development in virtual contexts require more planfulness than is required in non-virtual contexts. By working as a group to identify challenges and propose solutions, we have helped each other create action plans that we can use going forward to continually improve our management practices.

    Is there anything that anyone has learned that is not on this list and that they would like to share with the group?

    Finally, were there any challenges identified today that were not addressed?

    [Note to facilitator: Take note of any challenges not addressed and commit to getting back to the participants with some suggested solutions.]

    Additional resources

    Manager Training: Lead Through Change

    Train managers to navigate the interpersonal challenges associated with change management and develop their communication and leadership skills. Upload this LMS module into your learning management system to enable online training.

    Manager Training: Build a Better Manager: Manage Your People

    Management skills training is needed, but organizations are struggling to provide training that makes a long-term difference in the skills managers use in their day to day.

    Many training programs are ineffective because they offer the wrong content, deliver it in a way that is not memorable, and are not aligned with the IT department’s business objectives.

    Blueprint: Manage Poor Performance While Working From Home

    Assess and improve remote work performance with our ready-to-use tools.

    Works Cited

    April, Richard. “10 KPIs Every Sales Manager Should Measure in 2019.” HubSpot, 24 June 2019. Web.

    Banerjea, Peter. “5 Powerful Strategies for Managing a Remote Sales Team.” Badger - Maps for field sales, n.d. Web.

    Bibby, Adrianne. “5 Employers’ Awesome Quotes about Work Flexibility.” FlexJobs, 9 January 2017. Web.

    Brogie, Frank. “The 14 KPIs every field sales rep should strive to improve.” Repsly, 2018. Web.

    Dunn, Julie. “5 smart tips for leading field sales teams.” LevelEleven, March 2015. Web.

    Edinger, Scott. “How great sales leaders coach.” Forbes, 2013. Web.

    “Employee Outlook: Employee Views on Working Life.” CIPD, April 2016. Web.

    Hall, Becki. “The 5 biggest challenges facing remote workers (and how to solve them).” interact, 7 July 2017. Web.

    Hofstede, Geert. “National Cultural Dimensions.” Hofstede Insights, 2012. Web.

    “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2014 (EPA 430-R-16-002).” Environmental Protection Agency (EPA), 15 April 2016.

    “Latest Telecommuting Statistics.” Global Workplace Analytics, June 2021. Web.

    Knight, Rebecca. “How to manage remote direct reports.” Harvard Business Review, 2015. Web.

    “Rewards and Recognition: 5 ways to show remote worker appreciation.” FurstPerson, 2019. Web.

    Palay, Jonathan. "How to build your sales management cadence." CommercialTribe, 22 March 2018. Web.

    “Sales Activity Management Matrix.” Asian Sales Guru, 2019. Web.

    Smith, Simone. “9 Things to Consider When Recognizing Remote Employees.” hppy, 2018. Web.

    “State of Remote Work 2017.” OWL Labs, 2021. Web.

    “State of the American Workplace.” Gallup, 2017. Web.

    “Telework Savings Potential.” Global Workplace Analytics, June 2021. Web.

    “The Future of Jobs Employment Trends.” World Economic Forum, 2016. Web.

    “The other COVID-19 crisis: Mental health.” Qualtrics, 14 April 2020. Web.

    Thompson, Dan. “The straightforward truth about effective sales leadership.” Sales Hacker, 2017. Web.

    Tsipursky, Gleb. “Remote Work Can Be Better for Innovation Than In-Person Meetings.” Scientific American, 14 Oct. 2021. Web.

    Walsh, Kim. “New sales manager? Follow this guide to crush your first quarter.” HubSpot, May 2019. Web.

    “What Leaders Need to Know about Remote Workers: Surprising Differences in Workplace Happiness and Relationships.” TINYpulse, 2016.

    Zenger, Jack, and Joe Folkman. “Feedback: The Leadership Conundrum.” Talent Quarterly: The Feedback Issue, 2015.

    Contributors

    Anonymous CAMH Employee

    Proactively Identify and Mitigate Vendor Risk

    • Buy Link or Shortcode: {j2store}227|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • IT priorities are focused on daily tasks, pushing risk management to secondary importance and diverging from a proactive environment.
    • IT leaders are relying on an increasing number of third-party technology vendors and outsourcing key functions to meet the rapid pace of change within IT.
    • Risk levels can fluctuate over the course of the partnership, requiring manual process checks and/or automated solutions.

    Our Advice

    Critical Insight

    • Every IT vendor carries risks that have business implications. These legal, financial, security, and operational risks could inhibit business continuity and IT can’t wait until an issue arises to act.
    • Making intelligent decisions about risks without knowing what their financial impact will be is difficult. Risk impact must be quantified.
    • You don’t know what you don’t know, and what you don’t know, can hurt you. To find hidden risks, you must use a structured risk identification method.

    Impact and Result

    • A thorough risk assessment in the selection phase is your first line of defense. If you follow the principles of vendor risk management, you can mitigate collateral losses following an adverse event.
    • Make a conscious decision whether to accept the risk based on time, priority, and impact. Spend the required time to correctly identify and enact defined vendor management processes that determine spend categories and appropriately evaluate potential and preferred suppliers. Ensure you accurately assess the partnership potential.
    • Take a proactive stance against IT threats and vulnerabilities by identifying and assessing IT’s most significant risks before they happen.

    Proactively Identify and Mitigate Vendor Risk Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to create a vendor risk management program that minimizes your organization’s vulnerability and mitigates adverse scenarios.

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

    1. Review vendor risk fundamentals and establish governance

    Review IT vendor risk fundamentals and establish a risk governance framework.

    • Proactively Identify and Mitigate Vendor Risk – Phase 1: Review Vendor Risk Fundamentals and Establish Governance
    • Vendor Risk Management Maturity Assessment Tool
    • Vendor Risk Management Program Manual
    • Risk Event Action Plan

    2. Assess vendor risk and define your response strategy

    Categorize, prioritize, and assess your vendor risks. Follow up with creating effective response strategies.

    • Proactively Identify and Mitigate Vendor Risk – Phase 2: Assess Vendor Risk and Define Your Response Strategy
    • Vendor Classification Model Tool
    • Vendor Risk Profile and Assessment Tool
    • Risk Costing Tool
    • Risk Register Tool

    3. Monitor, communicate, and improve IT vendor risk process

    Assign accountability and responsibilities to formalize ongoing risk monitoring. Communicate your findings to management and share the plan moving forward.

    • Proactively Identify and Mitigate Vendor Risk – Phase 3: Monitor, Communicate, and Improve IT Vendor Risk Process
    • Risk Report
    [infographic]

    Workshop: Proactively Identify and Mitigate Vendor 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 Prepare for the Workshop

    The Purpose

    To prepare the team for the workshop.

    Key Benefits Achieved

    Avoids delays and interruptions once the workshop is in progress.

    Activities

    1.1 Send workshop agenda to all participants.

    1.2 Prepare list of vendors and review any contracts provided by them.

    1.3 Review current risk management process.

    Outputs

    All necessary participants assembled

    List of vendors and vendor contracts

    Understanding of current risk management process

    2 Review Vendor Risk Fundamentals and Establish Governance

    The Purpose

    Review IT vendor risk fundamentals.

    Assess current maturity and set risk management program goals.

    Engage stakeholders and establish a risk governance framework.

    Key Benefits Achieved

    Understanding of organizational risk culture and the corresponding risk threshold.

    Obstacles to effective IT risk management identified.

    Attainable goals to increase maturity established.

    Understanding of the gap to achieve vendor risk readiness.

    Activities

    2.1 Brainstorm vendor-related risks.

    2.2 Assess current program maturity.

    2.3 Identify obstacles and pain points.

    2.4 Develop risk management goals.

    2.5 Develop key risk indicators (KRIs) and escalation protocols.

    2.6 Gain stakeholders’ perspective.

    Outputs

    Vendor risk management maturity assessment

    Goals for vendor risk management

    Stakeholders’ opinions

    3 Assess Vendor Risk and Define Your Response Strategy

    The Purpose

    Categorize vendors.

    Prioritize assessed risks.

    Key Benefits Achieved

    Risk events prioritized according to risk severity – as defined by the business.

    Activities

    3.1 Categorize vendors.

    3.2 Map vendor infrastructure.

    3.3 Prioritize vendors.

    3.4 Identify risk contributing factors.

    3.5 Assess risk exposure.

    3.6 Calculate expected cost.

    3.7 Identify risk events.

    3.8 Input risks into the Risk Register Tool.

    Outputs

    Vendors classified and prioritized

    Vendor risk exposure

    Expected cost calculation

    4 Assess Vendor Risk and Define Your Response Strategy (continued)

    The Purpose

    Determine risk threshold and contract clause relating to risk prevention.

    Identify and assess risk response actions.

    Key Benefits Achieved

    Thorough analysis has been conducted on the value and effectiveness of risk responses for high-severity risk events.

    Risk response strategies have been identified for all key risks.

    Authoritative risk response recommendations can be made to senior leadership.

    Activities

    4.1 Determine the threshold for (un)acceptable risk.

    4.2 Match elements of the contract to related vendor risks.

    4.3 Identify and assess risk responses.

    Outputs

    Thresholds for (un)acceptable risk

    Risk responses

    5 Monitor, Communicate, and Improve IT Vendor Risk Process

    The Purpose

    Communicate top risks to management.

    Assign accountabilities and responsibilities for risk management process.

    Establish monitoring schedule.

    Key Benefits Achieved

    Risk monitoring responsibilities are established.

    Transparent accountabilities and established ongoing improvement of the vendor risk management program.

    Activities

    5.1 Create a stakeholder map.

    5.2 Complete RACI chart.

    5.3 Establish the reporting schedule.

    5.4 Finalize the vendor risk management program.

    Outputs

    Stakeholder map

    Assigned accountability for risk management

    Established monitoring schedule

    Risk report

    Vendor Risk Management Program Manual

    CIO Priorities 2022

    • Buy Link or Shortcode: {j2store}328|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • Understand how to respond to trends affecting your organization.
    • Determine your priorities based on current state and relevant internal factors.
    • Assign the right amount of resources to accomplish your vision.
    • Consider what new challenges outside of your control will demand a response.

    Our Advice

    Critical Insight

    A priority is created when external factors hold strong synergy with internal goals and an organization responds by committing resources to either avert risk or seize opportunity. These are the priorities identified in the report:

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Impact and Result

    Update your strategic roadmap to include priorities that are critical and relevant for your organization based on a balance of external and internal factors.

    CIO Priorities 2022 Research & Tools

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

    1. CIO Priorities 2022 – A report on the key priorities for competing in the digital economy.

    Discover Info-Tech’s five priorities for CIOs in 2022.

    • CIO Priorities Report for 2022

    2. Listen to the podcast series

    Hear directly from our contributing experts as they discuss their case studies with Brian Jackson.

    • Frictionless hybrid working: How the Harvard Business School did it
    • Close call with ransomware: A CIO recounts a near security nightmare
    • How a financial services company dodged "The Great Resignation"
    • How Allianz took a blockchain platform from pilot to 1 million transactions
    • CVS Health chairman David Dorman on healthcare's hybrid future

    Infographic

    Further reading

    CIO Priorities 2022

    A jumble of business-related words. Info-Tech’s 2022 Tech Trends survey asked CIOs for their top three priorities. Cluster analysis of their open-ended responses shows four key themes:
    1. Business process improvements
    2. Digital transformation or modernization
    3. Security
    4. Supporting revenue growth or recovery

    Info-Tech’s annual CIO priorities are formed from proprietary primary data and consultation with our internal experts with CIO stature

    2022 Tech Trends Survey CIO Demographic N=123

    Info-Tech’s Tech Trends 2022 survey was conducted between August and September 2021 and collected a total of 475 responses from IT decision makers, 123 of which were at the C-level. Fourteen countries and 16 industries are represented in the survey.

    2022 IT Talent Trends Survey CIO Demographic N=44

    Info-Tech’s IT Talent Trends 2022 survey was conducted between September and October 2021 and collected a total of 245 responses from IT decision makers, 44 of which were at the C-level. A broad range of countries from around the world are represented in the survey.

    Internal CIO Panels’ 125 Years Of Combined C-Level IT Experience

    Panels of former CIOs at Info-Tech focused on interpreting tech trends data and relating it to client experiences. Panels were conducted between November 2021 and January 2022.

    CEO-CIO Alignment Survey Benchmark Completed By 107 Different Organizations

    Info-Tech’s CEO-CIO Alignment program helps CIOs align with their supervisors by asking the right questions to ensure that IT stays on the right path. It determines how IT can best support the business’ top priorities and address the gaps in your strategy. In 2021, the benchmark was formed by 107 different organizations.

    Build IT alignment

    IT Management & Governance Diagnostic Benchmark Completed By 320 Different Organizations

    Info-Tech’s Management and Governance Diagnostic helps IT departments assess their strengths and weaknesses, prioritize their processes and build an improvement roadmap, and establish clear ownership of IT processes. In 2021, the benchmark was formed by data from 320 different organizations.

    Assess your IT processes

    The CIO priorities are informed by Info-Tech’s trends research reports and surveys

    Priority: “The fact or condition of being regarded or treated as more important than others.” (Lexico/Oxford)

    Trend: “A general direction in which something is developing or changing.” (Lexico/Oxford)

    A sequence of processes beginning with 'Sensing', 'Hypothesis', 'Validation', and ending with 'Trends, 'Priorities'. Under Sensing is Technology Research, Interviews & Insights, Gathering, and PESTLE. Under Hypothesis is Near-Future Probabilities, Identify Patterns, Identify Uncertainties, and Identify Human Benefits. Under Validation is Test Hypothesis, Case Studies, and Data-Driven Insights. Under Trends is Technology, Talent, and Industry. Under Priorities is CIO, Applications, Infrastructure, and Security.

    Visit Info-Tech’s Trends & Priorities Research Center

    Image called 'Defining the CIO Priorities for 2022'. Image shows 4 columns, Implications, Resource Investment, Amplifiers, and Actions and Outcomes, with 2 dotted lines, labeled External Context and Internal Context, running through all 4 columns and leading to bottom-right label called CIO Priorities Formed

    The Five Priorities

    Priorities to compete in the digital economy

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Reduce friction in the hybrid operating model

    Priority 01 | APO07 Human Resources Management

    Deliver solutions that create equity between remote workers and office workers and make collaboration a joy.

    Hybrid work is here to stay

    CIOs must deal with new pain points related to friction of collaboration

    In 2020, CIOs adapted to the pandemic’s disruption to offices by investing in capabilities to enable remote work. With restrictions on gathering in offices, even digital laggards had to shift to an all-remote work model for non-essential workers.

    Most popular technologies already invested in to facilitate better collaboration

    • 24% Web Conferencing
    • 23% Instant Messaging
    • 20% Document Collaboration

    In 2022, the focus shifts to solving problems created by the new hybrid operating model where some employees are in the office and some are working remotely. Without the ease of collaborating in a central hub, technology can play a role in reducing friction in several areas:

    • Foster more connections between employees. Remote workers are less likely to collaborate with people outside of their department and less likely to spontaneously collaborate with their peers. CIOs should provide a digital employee experience that fosters collaboration habits and keeps workers engaged.
    • Prevent employee attrition. With more workers reevaluating their careers and leaving their jobs, CIOs can help employees feel connected to the overall purpose of the organization. Finding a way to maintain culture in the new context will require new solutions. While conference room technology can be a bane to IT departments, making hybrid meetings effortless to facilitate will be more important.
    • Provide new standards for mediated collaboration. Meeting isn’t as easy as simply gathering around the same table anymore. CIOs need to provide structure around how hybrid meetings are conducted to create equity between all participants. Business continuity processes must also consider potential outages for collaboration services so employees can continue the work despite a major outage.

    Three in four organizations have a “hybrid” approach to work. (Tech Trends 2022 Survey)

    In most organizations, a hybrid model is being implemented. Only 14.9% of organizations are planning for almost everyone to return to the office, and only 9.9% for almost everyone to work remotely.

    Elizabeth Clark

    CIO, Harvard Business School

    "I want to create experiences that are sticky. That keep people coming back and engaging with their colleagues."

    Photo of Elizabeth Clark, CIO, Harvard Business School.

    Listen to the Tech Insights podcast:
    Frictionless hybrid working: How the Harvard Business School did it

    Internal interpretation: Harvard Business School

    • March 2020
      The pandemic disrupts in-class education at Harvard Business School. Their case study method of instruction that depends on in-person, high-quality student engagement is at risk. While students and faculty completed the winter semester remotely, the Dean and administration make the goal to restore the integrity of the classroom experience with equity for both remote and in-person students.
    • May 2020
      A cross-functional task force of about 100 people work intensively, conducting seven formal experiments, 80 smaller tests, and hundreds of polling data points, and a technology and facilities solution is designed: two 4K video cameras capturing both the faculty and the in-class students, new ceiling mics, three 85-inch TV screens, and students joining the videoconference from their laptops. A custom Zoom room, combining three separate rooms, integrated all the elements in one place and integrated with the lecture capture system and learning management system.
    • October 2020
      Sixteen classrooms are renovated to install the new solution. Students return to the classroom but in lower numbers due to limits on in-room capacity, but students rotate between the in-person and remote experience.
    • September 2021
      Renovations for the hybrid solution are complete in 26 classrooms and HBS has determined this will be its standard model for the classroom. The case method of teaching is kept alive and faculty and students are thrilled with the results.
    • November 2021
      HBS is adapting its solution for the classroom to its conference rooms and has built out eight different rooms for a hybrid experience. The 4K cameras and TV screens capture all participants in high fidelity as well as the blackboard.

    Photo of a renovated classroom with Zoom participants integrated with the in-person students.
    The renovated classrooms integrate all students, whether they are participating remotely or in person. (Image courtesy of Harvard Business School.)

    Implications: Organization, Process, Technology

    External

    • Organization – About half of IT practitioners in the Tech Trends 2022 survey feel that IT leaders, infrastructure and operations teams, and security teams were “very busy” in 2021. Capacity to adapt to hybrid work could be constrained by these factors.
    • Process – Organizations that want employees to benefit from being back in the office will have to rethink how workers can get more value out of in-person meetings that also require videoconference participation with remote workers.
    • Technology – Fifty-four percent of surveyed IT practitioners say the pandemic raised IT spending compared to the projections they made in 2020. Much of that investment went into adapting to a remote work environment.

    Internal

    • Organization – HBS added 30 people to its IT staff on term appointments to develop and implement its hybrid classroom solutions. Hires included instructional designers, support technicians, coordinators, and project managers.
    • Process – Only 25 students out of the full capacity of 95 could be in the classroom due to COVID-19 regulations. On-campus students rotated through the classroom seats. An app was created to post last-minute seat availability to keep the class full.
    • Technology – A Zoom room was created that combines three rooms to provide the full classroom experience: a view of the instructor, a clear view of each student that enlarges when they are speaking, and a view of the blackboard.

    Resources Applied

    Appetite for Technology

    CIOs and their direct supervisors both ranked internal collaboration tools as being a “critical need to adopt” in 2021, according to Info-Tech’s CEO-CIO Alignment Benchmark Report.

    Intent to Invest

    Ninety-seven percent of IT practitioners plan to invest in technology to facilitate better collaboration between employees in the office and outside the office by the end of 2022, according to Info-Tech’s 2022 Tech Trends survey.

    “We got so many nice compliments, which you don’t get in IT all the time. You get all the complaints, but it’s a rare case when people are enthusiastic about something that was delivered.” (Elizabeth Clark, CIO, Harvard Business School)

    Harvard Business School

    • IT staff were reassigned from other projects to prioritize building a hybrid classroom solution. A cloud migration and other portfolio projects were put on pause.
    • The annual capital A/V investment was doubled. The amount of spend on conference rooms was tripled.
    • Employees were hired to the media services team at a time when other areas of the organization were frozen.

    Outcomes at Harvard Business School

    The new normal at Harvard Business School

    New normal: HBS has found its new default operating model for the classroom and is extending its solution to its operating environment.

    Improved CX: The high-quality experience for students has helped avoid attrition despite the challenges of the pandemic.

    Engaged employees: The IT team is also engaged and feels connected to the mission of the school.

    Photo of a custom Zoom room bringing together multiple view of the classroom as well as all remote students.
    A custom Zoom room brings together multiple different views of the classroom into one single experience for remote students. (Image courtesy of Harvard Business School.)

    From Priorities to Action

    Make hybrid collaboration a joy

    Align with your organization’s goals for collaboration and customer interaction, with the target of high satisfaction for both customers and employees. Invest in capital projects to improve the fidelity of conference rooms, develop and test a new way of working, and increase IT capacity to alleviate pressure points.

    Foster both asynchronous and synchronous collaboration approaches to avoid calendars filling up with videoconference meetings to get things done and to accommodate workers contributing from across different time zones.

    “We’ll always have hybrid now. It’s opened people’s eyes and now we’re thinking about the future state. What new markets could we explore?” (Elizabeth Clark, CIO, Harvard Business School)

    Take the next step

    Run Better Meetings
    Hybrid, virtual, or in person – set meeting best practices that support your desired meeting norms.

    Prepare People Leaders for the Hybrid Work Environment
    Set hybrid work up for success by providing people leaders with the tools they need to lead within the new model.

    Hoteling and Hot-Desking: A Primer
    What you need to know regarding facilities, IT infrastructure, maintenance, security, and vendor solutions for desk hoteling and hot-desking.

    “Human Resources Management” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the Human Resources Management gap between importance and effectiveness. The difference is marked as Delta 2.3.

    Improve your ransomware readiness

    Priority 02 | APO13 Security Strategy

    Mitigate the damage of successful ransomware intrusions and make recovery as painless as possible.

    The ransomware crisis threatens every organization

    Prevention alone won’t be enough against the forces behind ransomware.

    Cybersecurity is always top of mind for CIOs but tends to be deprioritized due to other demands related to digital transformation or due to cost pressures. That’s the case when we examine our data for this report.

    Cybersecurity ranked as the fourth-most important priority by CIOs in Info-Tech’s 2022 Tech Trends survey, behind business process improvement, digital transformation, and modernization. Popular ways to prepare for a successful attack include creating offline backups, purchasing insurance, and deploying new solutions to eradicate ransomware.

    CIOs and their direct supervisors ranked “Manage IT-Related Security” as the third-most important top IT priority on Info-Tech’s CEO-CIO Alignment Benchmark for 2021, in support of business goals to manage risk, comply with external regulation, and ensure service continuity.

    Most popular ways for organizations to prepare for the event of a successful ransomware attack:

    • 25% Created offline backups
    • 18% Purchased cyberinsurance
    • 19% New tech to eradicate ransomware

    Whatever priority an organization places on cybersecurity, when ransomware strikes, it quickly becomes a red alert scenario that disrupts normal operations and requires all hands on deck to respond. Sophisticated attacks executed at wide scale demonstrate that security can be bypassed without creating an alert. After that’s accomplished, the perpetrators build their leverage by exfiltrating data and encrypting critical systems.

    CIOs can plan to mitigate ransomware attacks in several constructive ways:

    • Business impact analysis. Determine the costs of an outage for specific periods and the system and data recovery points in time.
    • Engage a partner for 24/7 monitoring. Gain real-time awareness of your critical systems.
    • Review your identity access management (IAM) policies. Use of multi-factor authentication and limiting access to only the roles that need it reduces ransomware risk.

    50% of all organizations spent time and money specifically to prevent ransomware in the past year. (Info-Tech Tech Trends 2022 Survey)

    John Doe

    CIO, mid-sized manufacturing firm in the US

    "I want to create experiences that are sticky. That keep people coming back and engaging with their colleagues."

    Blank photo.

    Listen to the Tech Insights podcast:
    Close call with ransomware: a CIO recounts a near security nightmare

    Internal interpretation: US-based, mid-sized manufacturing firm

    • May 1, 2021
      A mid-sized manufacturing firm (“The Firm”) CIO gets a call from his head of security about odd things happening on the network. A call is made to Microsoft for support. Later that night, the report is that an unwanted crypto-mining application is the culprit. But a couple of hours later, that assessment is proven wrong when it’s realized that hundreds of systems are staged for a ransomware attack. All the attacker has to do is push the button.
    • May 2, 2021
      The Firm disconnects all its global sites to cut off new pathways for the malware to infect. All normal operations cease for 24 hours. It launches its cybersecurity insurance process. The CIO engages a new security vendor, CrowdStrike, to help respond. Employees begin working from home if they can so they can make use of their own internet service. The Firm has cut off its public internet connectivity and is severed from cloud services such as Azure storage and collaboration software.
    • May 4, 2021
      The hackers behind the attack are revealed by security forensics experts. A state-sponsored agency in Russia set up the ransomware and left it ready to execute. It sold the staged attack to a cybercriminal group, Doppel Spider. According to CrowdStrike, the group uses malware to run “big game hunting operations” and targets 18 different countries including the US and multiple industries, including manufacturing.
    • May 10, 2021
      The Firm has totally recovered from the ransomware incident and avoided any serious breach or paying a ransom. The CIO worked more hours than at any other point in his career, logging an estimated 130 hours over the two weeks.
    • November 2021
      The Firm never previously considered itself a ransomware target but has now reevaluated that stance. It has hired a service provider to run a security operations center on a 24/7 basis. It's implemented a more sophisticated detection and response model and implemented multi-factor authentication. It’s doubled its security spend in 2021 and will invest more in 2022.

    “Now we take the approach that if someone does get in, we're going to find them out.” (John Doe, CIO, “The Firm”)

    Implications: Organization, Process, Technology

    External

    • Organization – Organizations must consider how their employees play a role in preventing ransomware and plan for training to recognize phishing and other common traps. They must make plans for employees to continue their work if systems are disrupted by ransomware.
    • Process – Backup processes across multiple systems should be harmonized to have both recent and common points to recover from. Work with the understanding IT will have to take systems offline if ransomware is discovered and there is no time to ask for permission.
    • Technology – Organizations can benefit from security services provided by a forensics-focused vendor. Putting cybersecurity insurance in place not only provides financial protection but also guidance in what to do and which vendors to work with to prevent and recover from ransomware.

    Internal

    • Organization – The Firm was prepared with a business continuity plan to allow many of its employees to work remotely, which was necessary because the office network was incapacitated for ten days during recovery.
    • Process – Executives didn’t seek to assign blame for the security incident but took it as a signal there were some new costs involved to stay in business. It initiated new outsource relationships and hired one more full-time employee to shore up security resources.
    • Technology – New ransomware eradication software was deployed to 2,000 computers. Scripted processes automated much of the work, but in some cases full system rebuilds were required. Backup systems were disconnected from the network as soon as the malware was discovered.

    Resources Applied

    Consider the Alternative

    Organizations should consider how much a ransomware attack on critical systems would cost them if they were down for a minimum of 24-48 hours. Plan to invest an amount at least equal to the costs of that downtime.

    Ask for ID

    Implementing across-the-board multi-factor authentication reduces chances of infection and is cheap, with enterprise solutions ranging from $2 to $5 per user on average. Be strict and deny access when connections don’t authenticate.

    “You'll never stop everything from getting into the network. You can still focus on stopping the bad actors, but then if they do make it in, make sure they don't get far.” (John Doe, CIO, “The Firm”)

    “The Firm” (Mid-Sized Manufacturer)

    • During the crisis, The Firm paused all activities and focused solely on isolating and eliminating the ransomware threat.
    • New outsourcing relationship with a vendor provides a 24/7 Security Operations Center.
    • One more full-time employee on the security team.
    • Doubled investment in security in 2021 and will spend more in 2022.

    Outcomes at “The Firm” (Mid-Sized Manufacturer)

    The new cost of doing business

    Real-time security: While The Firm is still investing in prevention-based security, it is also developing its real-time detection and response capabilities. When ransomware makes it through the cracks, it wants to know as soon as possible and stop it.

    Leadership commitment: The C-suite is taking the experience as a wake-up call that more investment is required in today’s threat landscape. The Firm rates security more highly as an overall organizational goal, not just something for IT to worry about.

    Stock photo of someone using their phone while sitting at a computer, implying multi-factor authentication.
    The Firm now uses multi-factor authentication as part of its employee sign-on process. For employees, authenticating is commonly achieved by using a mobile app that receives a secret code from the issuer.

    From Priorities to Action

    Cybersecurity is everyone’s responsibility

    In Info-Tech’s CEO-CIO Alignment Benchmark for 2021, the business goal of “Manage Risk” was the single biggest point of disagreement between CIOs and their direct supervisors. CIOs rank it as the second-most important business goal, while CEOs rank it as sixth-most important.

    Organizations should align on managing risk as a top priority given the severity of the ransomware threat. The threat actors and nature of the attacks are such that top leadership must prepare for when ransomware hits. This includes halting operations quickly to contain damage, engaging third-party security forensics experts, and coordinating with government regulators.

    Cybersecurity strategies may be challenged to be effective without creating some friction for users. Organizations should look beyond multi-layer prevention strategies and lean toward quick detection and response, spending evenly across prevention, detection, and response solutions.

    Take the next step

    Create a Ransomware Incident Response Plan
    Don’t be the next headline. Determine your current readiness, response plan, and projects to close gaps.

    Simplify Identity and Access Management
    Select and implement IAM and produce vendor RFPs that will contain the capabilities you need, including multi-factor authentication.

    Cybersecurity Series Featuring Sandy Silk
    More from Info-Tech’s Senior Workshop Director Sandy Silk in this video series created while she was still at Harvard University.

    Gap between CIOs and CEOs in points allocated to “Manage risk” as a top business goal

    A bar chart illustrating the gap between CIOs and CEOs in points allocated to 'Manage risk' as a top business goal. The difference is marked as Delta 1.5.

    Support an employee-centric retention strategy

    Priority 03 | ITRG02 Leadership, Culture & Values

    Avoid being a victim of “The Great Resignation” by putting employees at the center of an experience that will engage them with clear career path development, purposeful work, and transparent feedback.

    Defining an employee-first culture that improves retention

    The Great resignation isn’t good for firms

    In 2021, many workers decided to leave their jobs. Working contexts were disrupted by the pandemic and that saw non-essential workers sent home to work, while essential workers were asked to continue to come into work despite the risks of COVID-19. These disruptions may have contributed to many workers reevaluating their professional goals and weighing their values differently. At the same time, 2021 saw a surging economy and many new job opportunities to create a talent-hungry market. Many workers could have been motivated to take a new opportunity to increase their salary or receive other benefits such as more flexibility.

    Annual turnover rate for all us employees on the rise

    • 20% – Jan.-Aug. 2020, Dipped from 22% in 2019
    • 25% Jan.-Aug. 2021, New record high
    • Data from Visier Inc.

    When you can’t pay them, develop them

    IT may be less affected than other departments by this trend. Info-Tech’s 2022 IT Talent Trends Report shows that on average, estimated turnover rate in IT is lower than the rest of the organization. Almost half of respondents estimated their organization’s voluntary turnover rate was 10% or higher. Only 30% of respondents estimate that IT’s voluntary turnover rate is in the same range. However, CIOs working in industries with the highest turnover rates will have to work to keep their workers engaged and satisfied, as IT skills are easily transferred to other industries.

    49% ranked “enabling learning & development within IT” as high priority, more than any other single challenge. (IT Talent Trends 2022 Survey, N=227)

    A bar chart of 'Industries with highest turnover rates (%)' with 'Leisure and Hospitality' at 6.4%, 'Trade, Transportation & Utilities' at 3.6%, 'Professional and Business' at 3.3%, and 'Other Services' at 3.1%. U.S. Bureau of Labor Statistics, 2022.

    Jeff Previte

    Executive Vice-President of IT, CrossCountry Mortgage

    “We have to get to know the individual at a personal level … Not just talking about the business, but getting to know the person."

    Photo of Jeff Previte, Executive Vice-President of IT, CrossCountry Mortgage.

    Listen to the Tech Insights podcast:
    How a financial services company dodged ‘The Great Resignation’

    Internal interpretation: CrossCountry Mortgage

    • May 2019
      Jeff Previte joins Cleveland, Ohio-based CrossCountry Mortgage in the CIO role. The company faces a challenge with employee turnover, particularly in IT. The firm is a sales-focused organization and saw its turnover rate reach as high as 60%. Yet Previte recognized that IT had some meaningful goals to achieve and would need to attract – and retain – some higher caliber talent. His first objective in his new role was to meet with IT employees and business leadership to set priorities.
    • July 2019
      Previte takes a “people-first” approach to leadership and meets his staff face-to-face to understand their personal situations. He sets to work on defining roles and responsibilities in the organization, spending about a fifth of his time on defining the strategy.
    • June 2020
      Previte assigned his leadership team to McLean & Company’s Design an Impactful Employee Development Program. From there, the team developed a Salesforce tool called the Career Development Workbook. “We had some very passionate developers and admins that wanted to build a home-grown tool,” he says. It turns McLean & Company’s process into a digital tool employees can use to reflect on their careers and explore their next steps. It helps facilitate development conversations with managers.
    • January 2021
      CrossCountry Mortgage changes its approach to career development activities. Going to external conferences and training courses is reduced to just 30% of that effort. The rest is by doing hands-on work at the company. Previte aligned with his executives and road-mapped IT projects annually. Based on employee’s interests, opportunities are found to carve out time from usual day-to-day activities to spend time on a project in a new area. When there’s a business need, someone internally can be ready to transition roles.
    • June 2021
      In the two years since joining the company, Previte has reduced the turnover rate to just 12%. The IT department has grown to more adequately meet the needs of the business and employees are engaged with more opportunities to develop their careers. Instead of focusing on compensation, Previte focused more on engaging employees with a developmentally dedicated environment and continuous hands-on learning.

    “It’s come down to a culture shift. Folks have an idea of where we’re headed as an organization, where we’re headed as an IT team, and how their role contributes to that.” (Jeff Previte, EVP of IT, CrossCountry Mortgage)

    Implications: Organization, Process, Technology

    External

    • Organization – A high priority is being placed on improving IT’s maturity through its talent. Enabling learning and development in IT, enabling departmental innovation, and recruiting are the top three highest priorities according to IT Talent Trends 2022 survey responses.
    • Process – Recruiting is more challenging for industries that operate primarily onsite, according to McLean & Company's 2022 HR Trends Report. They face more challenges attracting applications, more rejected offers, and more candidate ghosting compared to remote-capable industries.
    • Technology – Providing a great employee experience through digital tools is more important as many organizations see a mix of workers in the office and at home. These tools can help connect colleagues, foster professional development, and improve the candidate experience.

    Internal

    • Organization – CrossCountry Mortgage faced a situation where IT employees did not have clarity on their roles and responsibilities. In terms of salary, it wasn’t offering at the high end compared to other employers in Cleveland.
    • Process – To foster a culture of growth and development, CrossCountry Mortgage put in place a performance assessment system that encouraged reflection and goal setting, aided by collaboration with a manager.
    • Technology – The high turnover rate was limiting CrossCountry Mortgage from achieving the level of maturity it needed to support the company’s goals. It ingrained its new PA process with a custom build of a Salesforce tool.

    Resources Applied

    Show me the money

    Almost six in ten Talent Trends survey respondents identified salary and compensation as the reason that employees resigned in the past year. Organizations looking to engage employees must first pay a fair salary according to market and industry conditions.

    Build me up

    Professional development and opportunity for innovative work are the next two most common reasons for resignations. Organizations must ensure they create enough capacity to allow workers time to spend on development.

    “Building our own solution created an element of engagement. There was a sense of ownership that the team had in thinking through this.” (Jeff Previte, CrossCountry Mortgage)

    CrossCountry Mortgage

    • Executive time: CIO spends 10-20% of his time on activities related to designing the approach.
    • Leveraged memberships with Info-Tech Research Group and McLean & Company to define professional development process.
    • Internal IT develops automated workflow in Salesforce.
    • Hired additional IT staff to build out overall capacity and create time for development activities.

    Outcomes at CrossCountry Mortgage

    Engaged IT workforce

    The Great Maturation: IT staff turnover rate dropped to 10-12% and IT talent is developing on the job to improve the department’s overall skill level. More IT staff on hand and more engaged workers mean IT can deliver higher maturity level results.

    Alignment achieved: Connecting IT’s initiatives to the vision of the C-suite creates a clear purpose for IT in its initiatives. Staff understand what they need to achieve to progress their careers and can grow while they work.

    Photo of employees from CrossCountry Mortgage assisting with a distribution event.
    Employees from CrossCountry Mortgage headquarters assist with a drive-thru distribution event for the Cleveland Food Bank on Dec. 17, 2021. (Image courtesy of CrossCountry Mortgage.)

    From Priorities to Action

    Staff retention is a leadership priority

    The Great Resignation trend is bringing attention to employee engagement and staff retention. IT departments are busier than ever during the pandemic as they work overtime to keep up with a remote workforce and new security threats. At the same time, IT talent is among the most coveted on the market.

    CIOs need to develop a people-first approach to improve the employee experience. Beyond compensation, IT workers need clarity in terms of their career paths, a direct connection between their work and the goals of the organization, and time set aside for professional development.

    Info-Tech’s 2021 benchmark for “Leadership, Culture & Values” shows that most organizations rate this capability very highly (9) but see room to improve on their effectiveness (6.9).

    Take the next step

    IT Talent Trends 2022
    See how IT talent trends are shifting through the pandemic and understand how themes like The Great Resignation has impacted IT.

    McLean & Company’s Modernize Performance Management
    Customize the building blocks of performance management to best fit organizational needs to impact individual and organizational performance, productivity, and engagement.

    Redesign Your IT Organizational Structure
    Define future-state work units, roles, and responsibilities that will enable the IT organization to complete the work that needs to be done.

    “Leadership, Culture & Values” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'Leadership, Culture & Values' gap between importance and effectiveness. The difference is marked as Delta 2.1.

    Design an automation platform

    Priority 04 | APO04 Innovation

    Position yourself to buy or build a platform that will enable new automation opportunities through seamless integration.

    Build it or buy it, but platform integration can yield great benefits

    Necessity is the mother of innovation

    When it’s said that digital transformation accelerated during the pandemic, what’s really meant is that processes that were formerly done manually became automated through software. In responses to the Tech Trends survey, CIOs say digital transformation was more of a focus during the pandemic, and eight in ten CIOs also say they shifted more than 20% of their organization’s processes to digital during the pandemic. Automating tasks through software can be called digitalization.

    Most organizations became more digitalized during the pandemic. But how they pursued it depends on their IT maturity. For digital laggards, partnering with a technology services platform is the path of least resistance. For sophisticated innovators, they can consider building a platform to address the specific needs of their business process. Doing so requires the foundation of an existing “digital factory” or innovation arm where new technologies can be tested, proofs of concept developed, and external partnerships formed. Patience is key with these efforts, as not every investment will yield immediate returns and some will fail outright.

    Build it or buy it, platform participants integrate with their existing systems through application programming interfaces (APIs). Organizations should determine their platform strategies based on maturity, then look to integrate the business processes that will yield the most gains.

    What role should you play in the platform ecosystem?

    A table with levels on the maturity ladder laid out as a sprint. Column headers are maturity levels 'Struggle', 'Support', 'Optimize', 'Expand', and 'Transform', row headers are 'Maturity' and 'Role'. Roles are assigned to one or many levels. 'Improve' is solely under Struggle. 'Integrate' spans from Support to Transform. 'Buy' spans Support to Expand. 'Build' begins midway through Expand and all of Transform. 'Partner' spans from Optimize to halfway through Transform.

    68% of CIOs say digital transformation became much more of a focus for their organization during the pandemic (Info-Tech Tech Trends 2022 Survey)

    Bob Crozier

    Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE

    "Smart contracts are really just workflows between counterparties."

    Photo of Bob Crozier, Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE.

    Listen to the Tech Insights podcast:
    How Allianz took a blockchain platform from pilot to 1 million transactions

    Internal interpretation: Allianz Technology

    • 2015
      After smart contracts are demonstrated on the Ethereum blockchain, Allianz and other insurers recognize the business value. There is potential to use the capability to administer a complex, multi-party contract where the presence of the reinsurer in the risk transfer ecosystem is required. Manual contracts could be turned into code and automated. Allianz organized an early proof of concept around a theoretical pandemic excessive loss contract.
    • 2018
      Allianz Chief Architect Bob Crozier is leading the Global Blockchain Center of Competence for Allianz. They educate Allianz on the value of blockchain for business. They also partner with a joint venture between the Technology University of Munich and the state of Bavaria. A cohort of Masters students is looking for real business problems to solve with open-source distributed ledger technology. Allianz puts its problem statement in front of the group. A student team presents a proof of concept for an international motor insurance claims settlement and it comes in second place at a pitch day competition.
    • 2019
      Allianz brings the concept back in-house, and its business leaders return to the concept. Startup Luther Systems is engaged to build a minimum-viable product for the solution, with the goal being a pilot involving three or four subsidiaries in different countries. The Blockchain Center begins communicating with 25 Allianz subsidiaries that will eventually deploy the platform.
    • 2020
      Allianz is in build mode on its international motor insurance claims platform. It leverages its internal Dev/SecOps teams based in Munich and in India.
    • May 2021
      Allianz goes live with its new platform on May 17, decommissioning its old system and migrating all live claims data onto the new blockchain platform. It sees 400 concurrent users go live across Europe.
    • January 2022
      Allianz mines its one-millionth block to its ledger on Jan. 19, with each block representing a peer-to-peer transaction across its 25 subsidiaries in different countries. The platform has settled hundreds of millions of dollars.

    Stock photo of two people arguing over a car crash.

    Implications: Organization, Process, Technology

    External

    • Organization – To explore emerging technologies like blockchain, organizations need staff that are accountable for innovation and have leeway to develop proofs of concept. External partners are often required to bring in fresh ideas and move quickly towards an MVP.
    • Process – According to the Tech Trends 2022 survey, 84% of CIOs consider automation a high-value digital capability, and 77% say identity verification is a high-value capability. A blockchain platform using smart contracts can deliver those.
    • Technology – The Linux Foundation’s Hyperledger Fabric is an open-source blockchain technology that’s become popular in the financial industry for its method of forming consensus and its modular architecture. It’s been adopted by USAA, MasterCard, and PayPal. It also underpins the IBM Blockchain Platform and is supported by Azure Blockchain.

    Internal

    • Organization – Allianz is a holding company that owns Allianz Technology and 25 operating entities across Europe. It uses the technology arm to innovate on the business process and creates shared platforms that its entities can integrate with to automate across the value chain.
    • Process – Initial interest in smart contracts on blockchain were funneled into a student competition, where a proof of concept was developed. Allianz partnered with a startup to develop an MVP, then developed the platform while aligning with its business units ahead of launch.
    • Technology – Allianz built its blockchain platform on Hyperledger Fabric because it was a permissioned system, unlike other public permissionless blockchains such as Ethereum, and because its mining mechanism was much more energy efficient compared to other blockchains using Proof of Work consensus models.

    Resources Applied

    Time to innovate

    Exploring emerging technology for potential use cases is difficult for staff tasked with running day-to-day operations. Organizations serious about innovation create a separate team that can focus on “moonshot” projects and connect with external partners.

    Long-term ROI

    Automation of new business processes often requires a high upfront initial investment for a long-term efficiency gain. A proof of concept should demonstrate clear business value that can be repeated often and for a long period.

    “My next project has to deliver in the tens of millions of value in return. The bar is high and that’s what it should be for a business of our size.” (Bob Crozier, Allianz)

    Allianz

    • Several operating entities from different countries supplied subject matter expertise and helped with the testing process.
    • Allianz Technology team has eight staff members. It is augmented by Luther Systems and the team at industry group B3i.
    • Funding of less than $5 million to develop. Dev team continues to add improvements.
    • Operating requires just one full-time employee plus infrastructure costs, mostly for public cloud hosting.

    Outcomes at Allianz

    From insurer to platform provider

    Deliver your own SaaS: Allianz Technology built its blockchain-based claims settlement platform and its subsidiaries consume it as software as a service. The platform runs on a distributed architecture across Europe, with each node running the same version of the software. Operating entities can also integrate their own systems to the platform via APIs and further automate business processes such as billing.

    Ready to scale: After processing one million transactions, the international claims settlement platform is proven and ready to add more participants. Crozier sees auto repair shops and auto manufacturers as the next logical users.

    Stock photo of Blockchain.
    Allianz is a shareholder of the Blockchain Insurance Industry Initiative (B3i). It is providing a platform used by a group of insurance companies in the commercial and reinsurance space.

    When should we use blockchain? THREE key criteria:

    • Redundant processes
      Different entities follow the same process to achieve the desired outcome.
    • Audit trail
      Accountability in the decision making must be documented.
    • Reconciliation
      Parties need to be able to resolve disputes by tracing back to the truth.

    From Priorities to Action

    It’s a build vs. buy question for platforms

    Allianz was able to build a platform for its group of European subsidiaries because of its established digital factory and commitment to innovation. Allianz Technology is at the “innovate” level of IT maturity, allowing it to create a platform that subsidiaries can integrate with via APIs. For firms that are lower on the IT maturity scale, buying a platform solution is the better path to automation. These firms will be concerned with integrating their legacy systems to platforms that can reduce the friction of their operating environments and introduce modern new capabilities.

    From Info-Tech’s Build a Winning Business Process Automation Playbook

    An infographic comparing pros and cons of Build versus Buy. On the 'Build: High Delivery Capacity & Capability' side is 'Custom Development', 'Data Integration', 'AI/ML', 'Configuration', 'Native Workflow', and 'Low & No Code'. On the 'Buy: Low Delivery Capacity & Capability' side is 'Outsource Development', 'iPaaS', 'Chatbots', 'iBPMS & Rules Engines', 'RPA', and 'Point Solutions'.

    Take the next step

    Accelerate Your Automation Processes
    Integrate automation solutions and take the first steps to building an automation suite.

    Build Effective Enterprise Integration on the Back of Business Process
    From the backend to the frontlines – let enterprise integration help your business processes fly.

    Evolve Your Business Through Innovation
    Innovation teams are tasked with the responsibility of ensuring that their organizations are in the best position to succeed while the world is in a period of turmoil, chaos, and uncertainty.

    “Innovation” gap between importance and effectiveness Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'Innovation' gap between importance and effectiveness. The difference is marked as Delta 2.1.

    Prepare to report on new environmental, social, and governance (ESG) metrics

    Priority 05 | ITRG06 Business Intelligence and Reporting

    Be ready to either lead or support initiatives to meet the criteria of new ESG reporting mandates and work toward disclosure reporting solutions.

    Time to get serious about ESG

    What does CSR or ESG mean to a CIO?

    Humans are putting increasing pressure on the planet’s natural environment and creating catastrophic risks as a result. Efforts to mitigate these risks have been underway for the past 30 years, but in the decade ahead regulators are likely to impose more strict requirements that will be linked to the financial value of an organization. Various voluntary frameworks exist for reporting on environmental, social, and governance (ESG) or corporate social responsibility (CSR) metrics. But now there are efforts underway to unify and clarify those standards.

    The most advanced effort toward a global set of standards is in the environmental area. At the United Nations’ COP26 summit in Scotland last November, the International Sustainability Standards Board (ISSB) announced its headquarters (Frankfurt) and three other international office locations (Montreal, San Francisco, and London) and its roadmap for public consultations. It is working with an array of voluntary standards groups toward a consensus.

    In Info-Tech’s 2022 Tech Trends survey, two-thirds of CIOs say their organization is committed to reducing greenhouse gas emissions, yet only 40% say their organizational leadership is very concerned with reducing those emissions. CIOs will need to consider how to align organizational concern with internal commitments and new regulatory pressures. They may investigate new real-time reporting solutions that could serve as a competitive differentiator on ESG.

    Standards informing the ISSB’s global set of climate standards

    A row of logos of organizations that inform ISSB's global set of climate standards.

    67% of CIOs say their organization is committed to reducing greenhouse gases, with one-third saying that commitment is public. (Info-Tech Tech Trends 2022 Survey)

    40% of CIOs say their organizational leadership is very concerned with reducing greenhouse gas emissions.

    David W. Dorman

    Chairman of the board, CVS Health

    “ESG is a question of what you do in the microcosm of your company to make sure there is a clear, level playing field – that there is a color-blind, gender-blind meritocracy available – that you are aware that not in every case can you achieve that without really focusing on it. It’s not going to happen on its own. That’s why our commitments have real dollars behind them and real focus behind them because we want to be the very best at doing them.”

    Photo of David W. Dorman, Chairman of the Board, CVS Health.

    Listen to the Tech Insights podcast:
    CVS Health chairman David Dorman on healthcare's hybrid future

    Internal interpretation: CVS Health

    CVS Health established a new steering committee of senior leaders in 2020 to oversee ESG commitments. It designs its corporate social responsibility strategy, Transform Health 2030, by aligning company activities in four key areas: healthy people, healthy business, healthy planet, and healthy community. The strategy aligns with the United Nations’ Sustainable Development Goals. In alignment with these goals, CVS identifies material topics where the company has the most ability to make an impact. In 2020, its top three topics were:

    1. Access to quality health care
    2. Patient and customer safety
    3. Data protection and privacy
    Material Topic
    Access to quality health care
    Material Topic
    Patient and customer safety
    Material Topic
    Data protection and privacy
    Technology Initiative
    MinuteClinic’s Virtual Collaboration for Nurses

    CVS provided Apple iPads compliant with the Health Insurance Portability and Accountability Act (HIPAA) to clinics in a phased approach, providing training to more than 700 providers in 26 states by February 2021. Nurses could use the iPads to attend virtual morning huddles and access clinical education. Nurses could connect virtually with other healthcare experts to collaborate on delivering patient care in real-time. The project was able to scale across the country through a $50,000 American Nurses Credentialing Center Pathway Award. (Wolters Kluwer Health, Inc.)

    Technology Initiative
    MinuteClinic’s E-Clinic

    MinuteClinics launched this telehealth solution in response to the pandemic, rolling it out in three weeks. The solution complemented video visits delivered in partnership with the Teladoc platform. Visits cost $59 and are covered by Aetna insurance plans, a subsidiary of CVS Health. It hosted more than 20,000 E-Clinic visits through the end of 2020. CVS connected its HealthHUBs to the solution to increase capacity in place of walk-in appointments and managed patients via phone for medication adherence and care plans. CVS also helped behavioral health providers transition patients to virtual visits. (CVS Health)

    Technology Initiative
    Next Generation Authentication Platform

    CVS patented this solution to authenticate customers accessing digital channels. It makes use of the available biometrics data and contextual information to validate identity without the need for a password. CVS planned to extend the platform to voice channels as well, using voiceprint technology. The solution prevents unauthorized access to sensitive health data while providing seamless access for customers. (LinkedIn)

    Implications: Organization, Process, Technology

    External

    • Organization – Since the mid-2010s, younger investors have demonstrated reliance on ESG data when making investment decisions, resulting in the creation of voluntary standards that offered varied approaches. Organizations in ESG exchange-traded funds are outperforming the overall S&P 500 (S&P Global Market Intelligence).
    • Process – Organizations are issuing ESG reports today despite the absence of clear rules to follow for reporting results. With regulators expected to step in to establish more rigid guidelines, many organizations will need to revisit their approach to ESG reports.
    • Technology – Real-time reporting of ESG metrics will become a competitive advantage before 2030. Engineering a solution that can alert organizations to poor performance on ESG measures and allow them to respond could avert losing market value.

    Internal

    • Organization – CVS Health established an ESG Steering Committee in 2020 composed of senior leaders including its chief governance officers, chief sustainability officer, chief risk officer, and controller and SVP of investor relations. It is supported by the ESG Operating Committee.
    • Process – CVS conducts a materiality assessment in accordance with Global Reporting Initiative standards to determine the most significant ESG impacts it can make and what topics most influence the decisions of stakeholders. It engages with various stakeholder groups on CSR topics.
    • Technology – CVS technology initiatives during the pandemic focused on supporting patients and employees in collaborating on health care delivery using virtual solutions, providing rich digital experiences that are easily accessible while upholding high security and privacy standards.

    Resources Applied

    Lack of commitment

    While 83% of businesses state support for the Sustainable Development Goals outlined by the Global Reporting Initiative (GRI), only 40% make measurable commitments to their goals.

    Show your work

    The GRI recommends organizations not only align their activities with sustainable development goals but also demonstrate contributions to specific targets in reporting on the positive actions they carry out. (GRI, “State of Progress: Business Contributions to the SDGS.”)

    “We end up with a longstanding commitment to diversity because that’s what our customer base looks like.” (David Dorman, CVS Health)

    CVS Health

    • The MinuteClinic Virtual Collaboration solution was piloted in Houston, demonstrated success, and won additional $50,000 funding from the Pathway to Excellence Award to scale the program across the country (Wolters Kluwer Health, Inc.).
    • The Next-Gen Authentication solution is provided by the vendor HYPR. It is deployed to ten million users and looking to scale to 30 million more. Pricing for enterprises is quoted at $1 per user, but volume pricing would apply to CVS (HYPR).

    Outcomes at CVS Health

    Delivering on hybrid healthcare solutions

    iPads for collaboration: Healthcare practitioners in the MinuteClinic Virtual Collaboration initiative agreed that it improved the use of interprofessional teams, working well virtually with others, and improved access to professional resources (Wolters Kluwer Health, Inc.)

    Remote healthcare: Saw a 400% increase in MinuteClinic virtual visits in 2020 (CVS Health).

    Verified ID: The Next Generation Authentication platform allowed customers to register for a COVID-19 vaccination appointment. CVS has delivered more than 50 million vaccines (LinkedIn).

    Stock photo of a doctor with an iPad.
    CVS Health is making use of digital channels to connect its customers and health practitioners to a services platform that can supplement visits to a retail or clinic location to receive diagnostics and first-hand care.

    From Priorities to Action

    Become your organization’s ESG Expert

    The risks posed to organizations and wider society are becoming more severe, driving a transition from voluntary frameworks for ESG goals to a mandatory one that’s enforced by investors and governments. Organizations will be expected to tie their core activities to a defined set of ESG goals and maintain a balance sheet of their positive and negative impacts. CIOs should become experts in ESG disclosure requirements and recommend the steps needed to meet or exceed competitors’ efforts. If a leadership vacuum for ESG accountability exists, CIOs can either seek to support their peers that are likely to become accountable or take a leadership role in overseeing the area. CIOs should start working toward solutions that deliver real-time reporting on ESG goals to make reporting frictionless.

    “If you don’t have ESG oversight at the highest levels of the company, it won’t wind up getting the focus. That’s why we review it at the Board multiple times per year. We have an annual report, we compare how we did, what we intended to do, where did we fall short, where did we exceed, and where we can run for daylight to do more.” (David Dorman, CVS Health)

    Take the next step

    ESG Disclosures: How Will We Record Status Updates on the World We Are Creating?
    Prepare for the era of mandated environmental, social, and governance disclosures.

    Private Equity and Venture Capital Growing Impact of ESG Report
    Learn about how the growing impact of ESG affects both your organization and IT specifically, including challenges and opportunities, with expert assistance.

    “Business Intelligence and Reporting” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'BI and Reporting' gap between importance and effectiveness. The difference is marked as Delta 2.4.

    The Five Priorities

    Priorities to compete in the digital economy

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Contributing Experts

    Elizabeth Clark

    CIO, Harvard Business School
    Photo of Elizabeth Clark, CIO, Harvard Business School.

    Jeff Previte

    Executive Vice-President of IT, CrossCountry Mortgage
    Photo of Jeff Previte, Executive Vice-President of IT, CrossCountry Mortgage.

    Bob Crozier

    Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE
    Photo of Bob Crozier, Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE.

    David W. Dorman

    Chairman of the Board, CVS Health
    Photo of David W. Dorman, Chairman of the Board, CVS Health.

    Info-Tech’s internal CIO panel contributors

    • Bryan Tutor
    • John Kemp
    • Mike Schembri
    • Janice Clatterbuck
    • Sandy Silk
    • Sallie Wright
    • David Wallace
    • Ken McGee
    • Mike Tweedie
    • Cole Cioran
    • Kevin Tucker
    • Angelina Atkins
    • Yakov Kofner
    Photo of an internal CIO panel contributor. Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.
    Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.
    Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.

    Thank you for your support

    Logo for the Blockchain Research Institute.
    Blockchain Research Institute

    Bibliography – CIO Priorities 2022

    “2020 Corporate Social Responsibility Report.” CVS Health, 2020, p. 127. Web.

    “Adversary: Doppel Spider - Threat Actor.” Crowdstrike Adversary Universe, 2021. Accessed 29 Dec. 2021.

    “Aetna CVS Health Success Story.” HYPR, n.d. Accessed 6 Feb. 2022.

    Baig, Aamer. “The CIO agenda for the next 12 months: Six make-or-break priorities.” McKinsey Digital, 1 Nov. 2021. Web.

    Ball, Sarah, Kristene Diggins, Nairobi Martindale, Angela Patterson, Anne M. Pohnert, Jacinta Thomas, Tammy Todd, and Melissa Bates. “2020 ANCC Pathway Award® winner.” Wolters Kluwer Health, Inc., 2021. Accessed 6 Feb. 2022.

    “Canadian Universities Propose Designs for a Central Bank Digital Currency.” Bank of Canada, 11 Feb. 2021. Accessed 14 Dec. 2021.

    “Carbon Sequestration in Wetlands.” MN Board of Water and Soil Resources, n.d. Accessed 15 Nov. 2021.

    “CCM Honored as a NorthCoast 99 Award Winner.” CrossCountry Mortgage, 1 Dec. 2021. Web.

    Cheek, Catherine. “Four Things We Learned About the Resignation Wave–and What to Do Next.” Visier Inc. (blog), 5 Oct. 2021. Web.

    “Companies Using Hyperledger Fabric, Market Share, Customers and Competitors.” HG Insights, 2022. Accessed 25 Jan. 2022.

    “IFRS Foundation Announces International Sustainability Standards Board, Consolidation with CDSB and VRF, and Publication of Prototype Disclosure Requirements.” IFRS, 3 Nov. 2021. Web.

    “IT Priorities for 2022: A CIO Report.” Mindsight, 28 Oct. 2021. Web.

    “Job Openings and Labor Turnover Survey.” Databases, Tables & Calculators by Subject, U.S. Bureau of Labor Statistics, 2022. Accessed 9 Feb. 2022.

    Kumar, Rashmi, and Michael Krigsman. “CIO Planning and Investment Strategy 2022.” CXOTalk, 13 Sept. 2021. Web.

    Leonhardt, Megan. “The Great Resignation Is Hitting These Industries Hardest.” Fortune, 16 Nov. 2021. Accessed 7 Jan. 2022.

    “Most companies align with SDGs – but more to do on assessing progress.” Global Reporting Initiative (GRI), 17 Jan. 2022. Web.

    Navagamuwa, Roshan. “Beyond Passwords: Enhancing Data Protection and Consumer Experience.” LinkedIn, 15 Dec. 2020.

    Ojo, Oluwaseyi. “Achieving Digital Business Transformation Using COBIT 2019.” ISACA, 19 Aug. 2019. Web.

    “Priority.” Lexico.com, Oxford University Press, 2021. Web.

    Riebold, Jan, and Yannick Bartens. “Reinventing the Digital IT Operating Model for the ‘New Normal.’” Capgemini Worldwide, 3 Nov. 2020. Web.

    Samuels, Mark. “The CIO’s next priority: Using the tech budget for growth.” ZDNet, 1 Sept. 2021. Accessed 1 Nov. 2021.

    Sayer, Peter. “Exclusive Survey: CIOs Outline Tech Priorities for 2021-22.” CIO, 5 Oct. 2021. Web.

    Shacklett, Mary E. “Where IT Leaders Are Likely to Spend Budget in 2022.” InformationWeek, 10 Aug. 2021. Web.

    “Table 4. Quits Levels and Rates by Industry and Region, Seasonally Adjusted - 2021 M11 Results.” U.S. Bureau of Labor Statistics, Economic News Release, 1 Jan. 2022. Accessed 7 Jan. 2022.

    “Technology Priorities CIOs Must Address in 2022.” Gartner, 19 Oct. 2021. Accessed 1 Nov. 2021.

    Thomson, Joel. Technology, Talent, and the Future Workplace: Canadian CIO Outlook 2021. The Conference Board of Canada, 7 Dec. 2021. Web.

    “Trend.” Lexico.com, Oxford University Press, 2021. Web.

    Vellante, Dave. “CIOs signal hybrid work will power tech spending through 2022.” SiliconANGLE, 25 Sept. 2021. Web.

    Whieldon, Esther, and Robert Clark. “ESG funds beat out S&P 500 in 1st year of COVID-19; how 1 fund shot to the top.” S&P Global Market Intelligence, April 2021. Accessed Dec. 2021.

    The challenge of corporate security management

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    • Parent Category Name: Security and Risk
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    Corporate security management is a vital aspect in every modern business, regardless of business area or size. At Tymans Group we offer expert security management consulting to help your business set up proper protocols and security programs. More elaborate information about our security management consulting services and solutions can be found below.

    Corporate security management components

    You may be experiencing one or more of the following:

    • The risk goals should support business goals. Your business cannot operate without security, and security is there to conduct business safely. 
    • Security governance supports security strategy and security management. These three components form a protective arch around your business. 
    • Governance and management are like the legislative branch and the executive branch. Governance tells people what to do, and management's job is to verify that they do it.

    Our advice with regards to corporate security management

    Insight

    To have a successful information security strategy, take these three factors into account:

    • Holistic: your view must include people, processes, and technology.
    • Risk awareness: Base your strategy on the actual risk profile of your company and then add the appropriate best practices.
    • Business-aligned: When your strategic security plan demonstrates alignment with the business goals and supports it, embedding will be much more straightforward.

    Impact and results of our corporate security management approach

    • The approach of our security management consulting company helps to provide a starting point for realistic governance and realistic corporate security management.
    • We help you by implementing security governance and managing it, taking into account your company's priorities, and keeping costs to a minimum.

    The roadmap

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

    Get up to speed

    Read up on why you should build your customized corporate information security governance and management system. Review our methodology and understand the four ways we can support you.

    Align your security objectives with your business goals

    Determine the company's risk tolerance.

    • Implement a Security Governance and Management Program – Phase 1: Align Business Goals With Security Objectives (ppt)
    • Information Security Governance and Management Business Case (ppt)
    • Information Security Steering Committee Charter (doc)
    • Information Security Steering Committee RACI Chart (doc)
    • Security Risk Register Tool (xls)

    Build a practical governance framework for your company

    Our best-of-breed security framework makes you perform a gap analysis between where you are and where you want to be (your target state). Once you know that, you can define your goals and duties.

    • Implement a Security Governance and Management Program – Phase 2: Develop an Effective Governance Framework (ppt)
    • Information Security Charter (doc)
    • Security Governance Organizational Structure Template (doc)
    • Security Policy Hierarchy Diagram (ppt)
    • Security Governance Model Facilitation Questions (ppt)
    • Information Security Policy Charter Template (doc)
    • Information Security Governance Model Tool (Visio)
    • Pdf icon 20x20
    • Information Security Governance Model Tool (PDF)

    Now that you have built it, manage your governance framework.

    There are several essential management activities that we as a security management consulting company suggest you employ.

    • Implement a Security Governance and Management Program – Phase 3: Manage Your Governance Framework (ppt)
    • Security Metrics Assessment Tool (xls)
    • Information Security Service Catalog (xls)
    • Policy Exception Tracker (xls)
    • Information Security Policy Exception Request Form (doc)
    • Security Policy Exception Approval Workflow (Visio)
    • Security Policy Exception Approval Workflow (PDF)
    • Business Goal Metrics Tracking Tool (xls)

    Book an online appointment for more advice

    We are happy to tell you more about our corporate security management solutions and help you set up fitting security objectives. As a security management consulting firm we offer solutions and advice, based on our own extensive experience, which are practical and people-orientated. Discover our services, which include data security management and incident management and book an online appointment with CEO Gert Taeymans to discuss any issues you may be facing regarding risk management or IT governance.

    cybersecurity

    Applications Priorities 2022

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    There is always more work than hours in the day. IT often feels understaffed and doesn’t know how to get it all done. Trying to satisfy all the requests results in everyone getting a small piece of the pie and in users being dissatisfied.

    Our Advice

    Critical Insight

    Focusing on one initiative will allow leaders to move the needle on what is important.

    Impact and Result

    Focus on the big picture, leveraging Info-Tech’s blueprints. By increasing maturity and efficiency, IT staff can spend more time on value-added activities.

    Applications Priorities 2022 Research & Tools

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

    1. Applications Priorities 2022 – A deck that discusses the five priorities we are seeing among Applications leaders.

    There is always more work than hours in the day. IT often feels understaffed and doesn’t know how to get it all done. Trying to satisfy all the requests results in everyone getting a small piece of the pie and in users being dissatisfied. Use Info-Tech's Applications Priorities 2022 to learn about the five initiatives that IT should prioritize for the coming year.

    • Applications Priorities Report for 2022
    [infographic]

    Design Your Cloud Operations

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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Traditional IT capabilities, activities, organizational structures, and culture need to adjust to leverage the value of cloud, optimize spend, and manage risk.
    • Different stakeholders across previously separate teams rely on one another more than ever, but rules of engagement do not yet exist.

    Our Advice

    Critical Insight

    Define your target cloud operations state first, then plan how to get there. If you begin by trying to reconstruct on-prem operations in the cloud, you will build an operations model that is the worst of both worlds.

    Impact and Result

    • Assess your key workflows’ maturity for life in the cloud and evaluate your readiness and need for new ways of working
    • Identify the work that must be done to deliver value in cloud services
    • Design your cloud operations framework and communicate it clearly and succinctly to secure buy-in

    Design Your Cloud Operations Research & Tools

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

    1. Design Your Cloud Operations Deck – A step-by-step storyboard to help guide you through the activities and tools in this project.

    This storyboard will help you assess your cloud maturity, understand relevant ways of working, and create a meaningful design of your cloud operations that helps align team members and stakeholders.

    • Design Your Cloud Operations – Storyboard
    • Cloud Operations Design Sketchbook
    • Roadmap Tool

    2. Planning and design tools.

    Use these templates and tools to assess your current state, design the cloud operations organizing framework, and create a roadmap.

    • Cloud Maturity Assessment

    3. Communication tools.

    Use these templates and tools to plan how you will communicate changes to key stakeholders and communicate the new cloud operations organizing framework in an executive presentation.

    • Cloud Operations Communication Plan
    • Cloud Operations Organizing Framework: Executive Brief

    Infographic

    Workshop: Design Your Cloud Operations

    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 Day 1

    The Purpose

    Establish Context

    Key Benefits Achieved

    Alignment on target state

    Activities

    1.1 Assess current cloud maturity and areas in need of improvement

    1.2 Identify the drivers for organizational redesign

    1.3 Review cloud objectives and obstacles

    1.4 Develop organization design principles

    Outputs

    Cloud maturity assessment

    Project drivers

    Cloud challenges and objectives

    Organization design principles

    2 Day 2

    The Purpose

    Establish Context

    Key Benefits Achieved

    Understanding of cloud workstreams

    Activities

    2.1 Evaluate new ways of working

    2.2 Develop a workstream target statement

    2.3 Identify cloud work

    Outputs

    Workstream target statement

    Cloud operations workflow diagrams

    3 Day 3

    The Purpose

    Design the Organization

    Key Benefits Achieved

    Visualization of the cloud operations future state

    Activities

    3.1 Design a future-state cloud operations diagram

    3.2 Create a current-state cloud operations diagram

    3.3 Define success indicators

    Outputs

    Future-state cloud operations diagram

    Current-state cloud operations diagram

    Success indicators

    4 Day 4

    The Purpose

    Communicate the Changes

    Key Benefits Achieved

    Alignment and buy-in from stakeholders

    Activities

    4.1 Create a roadmap

    4.2 Create a communication plan

    Outputs

    Roadmap

    Communication plan

    Further reading

    It’s “day two” in the cloud. Now what?

    EXECUTIVE BRIEF

    Analysts’ Perspective

    The image contains a picture of Andrew Sharp.

    Andrew Sharp

    Research Director

    Infrastructure & Operations Practice

    It’s “day two” in the cloud. Now what?

    Just because you’re in the cloud doesn’t mean everyone is on the same page about how cloud operations work – or should work.

    You have an opportunity to implement new ways of working. But if people can’t see the bigger picture – the organizing framework of your cloud operations – it will be harder to get buy-in to realize value from your cloud services.

    Use Info-Tech’s methodology to build out and visualize a cloud operations organizing framework that defines cloud work and aligns it to the right areas.

    The image contains a picture of Nabeel Sherif.

    Nabeel Sherif

    Principal Research Director

    Infrastructure & Operations Practice

    The image contains a picture of Emily Sugerman.

    Emily Sugerman

    Research Analyst

    Infrastructure & Operations Practice

    Scott Young

    Principal Research Director

    Infrastructure & Operations Practice

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    Widespread cloud adoption has created new opportunities and challenges:

    • Traditional IT capabilities, activities, organizational structures, and culture need to adjust to leverage the value of cloud, optimize spend, and manage risk.
    • Different stakeholders across previously separate teams rely on one another more than ever, but rules of engagement do not yet exist, leading to a lack of direction, employee frustration, missed work, inefficiency, and unacceptable risk.
    • Many organizations have bought their way into a SaaS portfolio. Now, as key applications leave their network, I&O leaders still have accountability for these apps, but little visibility and control over them.
    • Few organizations are, or will ever be, cloud only. Your operations will be both on-prem and in-cloud for the foreseeable future and you must be able to accommodate both.
    • Traditional infrastructure siloes no longer work for cloud operations, but key stakeholders are wary of significant change.

    Clearly communicate the need for operations changes:

    • Identify current challenges with cloud operations. Assess your readiness and fit for new ways of working involved in cloud operations: DevOps, SRE, Platform Engineering, and more.
    • Use Info-Tech’s templates to design a cloud operations organizing framework. Define cloud work, and align work to the right work areas.
    • Communicate the design. Gain buy-in from your key stakeholders for the considerable organizational change management required to achieve durable change.

    Info-Tech Insight

    Define your target cloud operations state first, then plan how to get there. If you begin by trying to reconstruct on-prem operations in the cloud, you will build an operations model that is the worst of both worlds.

    Your Challenge

    Traditional IT capabilities, activities, organizational structures, and culture need to adjust to leverage the value of cloud, optimize spend, and manage risk.

    • As key applications leave for the cloud, I&O teams are still expected to manage access, spend, and security but may have little or no visibility or control over the applications themselves.
    • The automation and self-service capabilities of cloud aren’t delivering the speed the business expected because teams don’t work together effectively.
    • Business leaders purchase their own cloud solutions because, from their point of view, IT’s processes are cumbersome and ineffective.
    • Accounting practices and governance mechanisms haven’t adjusted to enable new development practices and technologies.
    • Security and cost management requirements may not be accounted for by teams acquiring or developing solutions.
    • All of this contributes to frustration, missed work, wasteful spending, and unacceptable risk.

    Obstacles, by the numbers:

    85% of respondents reported security in the cloud was a serious concern.

    73% reported balancing responsibilities between a central cloud team and business units was a top concern.

    The average organization spent 13% more than they’d budgeted on cloud – even when budgets were expected to increase by 29% in the next year.

    32% of all cloud spend was estimated to be wasted spend.

    56% of operations professionals said their primary focus is cloud services.

    81% of security professionals thought it was difficult to get developers to prioritize bug fixes.

    42% of security professionals felt bugs were being caught too late in the development process.

    1. Flexera 2022 State of the Cloud Report. 2. GitLab DevSecOps 2021 Survey

    Cloud operations are different, but IT departments struggle to change

    • There’s no sense of urgency in the organization that change is needed, particularly from teams that aren’t directly involved in operations. It can be challenging to make the case that change is needed.
    • Beware “analysis paralysis”! With so many options, philosophies, approaches, and methodologies, it’s easy to be overwhelmed by choice and fail to make needed changes.
    • The solution to the problem requires organizational changes beyond the operations team, but you don’t have the authority to make those changes directly. Operations can influence the solution, but they likely can’t direct it.
    • Behavior, culture, and organizations take time and work to change. Progress is usually evolutionary – but this can also mean it feels like it’s happening too slowly.
    • It’s not just cloud, and it probably never will be. You’ll need to account for operating both on-premises and cloud technologies for the foreseeable future.

    Follow Info-Tech’s Methodology

    1. Ensure alignment with the risks and drivers of the business and understand your organization’s strengths and gaps for a cloud operations world.

    2. Understand the balance of different types of deliveries you’re responsible for in the cloud.

    3. Reduce risk by reinforcing the key operational pillars of cloud operations to your workstreams.

    4. Identify “work areas,” decide which area is responsible for what tasks and how work areas should interact in order to best facilitate desired business outcomes.

    The image contains a screenshot of a diagram demonstrating Info-Tech's Methodology, as described in the text above.

    Info-Tech Insight

    Start by designing operations around the main workflow you have for cloud services; i.e. If you mostly build or host in cloud, build the diagram to maximize value for that workflow.

    Operating Framework Elements

    Proper design of roles and responsibilities for each cloud workflow category will help reduce risk by reinforcing the key operational pillars of cloud operations.

    We base this on a composite of the well-architected frameworks established by the top global cloud providers today.

    Workflow Categories

    • Build
    • Host
    • Consume

    Key Pillars

    • Performance
    • Reliability
    • Cost Effectiveness
    • Security
    • Operational Excellence

    Risks to Mitigate

    • Changes to Support Model
    • Changes to Security & Governance
    • Changes to Skills & Roles
    • Replicating Old Habits
    • Misaligned Stakeholders

    Cloud Operations Design

    Info-Tech’s Methodology

    Assess Maturity and Ways of Working

    Define Cloud Work

    Design Cloud Operations

    Communicate and Secure Buy-in

    Assess your key workflows’ maturity for “life in the cloud,” related to Key Operational Pillars. Evaluate your readiness and need for new ways of working.

    Identify the work that must be done to deliver value in cloud services.

    Define key cloud work areas, the work they do, and how they should share information and interact.

    Outline the change you recommend to a range of stakeholders. Gain buy-in for the plan.

    Blueprint deliverables

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

    Cloud Maturity Assessment

    Assess the intensity and cloud maturity of your IT operations for each of the key cloud workstreams: Consume, Host, and Build

    The image contains screenshots of the Cloud Maturity Assessment.

    Communication Plan

    Identify stakeholders, what’s in it for them, what the impact will be, and how you will communicate over the course of the change.

    The image contains a screenshot of the Communcation Plan.

    Cloud Operations Design Sketchbook

    Capture the diagram as you build it.

    The image contains a screenshot of the Cloud Operations Design Sketchbook.

    Roadmap Tool

    Build a roadmap to put the design into action.

    The image contains a screenshot of the Roadmap Tool.

    Key deliverable:

    Cloud Operations Organizing Framework

    The Cloud Operations Organizing Framework is a communication tool that introduces the cloud operations diagram and establishes its context and justification.

    The image contains a screenshot of the Cloud Operations Organizing Framework.

    Project Outline

    Phase 1: Establish Context

    1.1: Identify challenges, opportunities, and cloud maturity

    1.2: Evaluate new ways of working

    1.3: Define cloud work

    Phase 2: Design the organization and communicate changes

    2.1: Design a draft cloud operations diagram

    2.2: Communicate changes

    Outputs

    Cloud Services Objectives and Obstacles

    Cloud Operations Workflow Diagrams

    Cloud Maturity Assessment

    Draft Cloud Operations Diagram

    Communication Plan

    Roadmap Tool

    Cloud Operations Organizing Framework

    Project benefits

    Benefits for IT

    Benefits for the business

    • Define the work required to effectively deliver cloud services to deliver business value.
    • Define key roles for operating cloud services.
    • Outline an operations diagram that visually communicates what key work areas do and how they interact.
    • Communicate needed changes to key stakeholders.
    • Receive more value from cloud services when the organization is structured to deliver value including:
      • Avoiding cost overruns
      • Securing services
      • Providing faster, more effective delivery
      • Increasing predictability
      • Reducing error rates

    Calculate the value of Info-Tech’s Methodology

    The value of the project is the delivery of organizational change that improves the way you manage cloud services

    Example Goal

    How this blueprint can help

    How you might measure success/value

    Streamline Responsibilities

    The operations team is spending too much time fighting applications fires, which is distracting it from needed platform improvements.

    • Identify shared and separate responsibilities for development and platform operations teams.
    • Focus the operations team on securing and automating cloud platform(s).
    • Reduce time wasted on back and forth between development and operations teams (20 hrs. per employee per year x 50 staff = 1000 hrs.).
    • Deliver automation features that reduces development lead time by one hour per sprint (40 devs x 20 sprints per yr. x 1 hr. = 800 hrs.).

    Improve Cost Visibility

    The teams responsible for cost management today don’t have the authority, visibility, or time to effectively find wasted spend.

    The teams responsible for cost management today don’t have the authority, visibility, or time to effectively find wasted spend.

    • Ensure operations contributes to visibility and execution of cost governance.
    • $1,000,000 annual spend on cloud services.
    • Of this, assume 32% is wasted spend ($320k).1
    • New cost management function has a target to cut waste by half next year saving ~$160k.
    • Cost visibility and capture metrics (e.g. accurate tagging metrics, right-sizing execution).
    1. Average wasted cloud spend across all organizations, from the 2022 Flexera State of the Cloud Report

    Understand your cloud vision and strategy before you redesign operations

    Guide your operations redesign with an overarching cloud vision and strategy that aligns to and enables the business’s goals.

    Cloud Vision

    The image contains a screenshot of the Define Your Cloud Vision.

    Cloud Strategy

    It is difficult to get or maintain buy-in for changes to operations without everyone on the same page about the basic value proposition cloud offers your organization.

    Do the workload and risk analysis to create a defensible cloud vision statement that boils down into a single statement: “This is how we want to use the cloud.”

    Once you have your basic cloud vision, take the next step by documenting a cloud strategy.

    Establish your steering committee with stakeholders from IT, business, and leadership to work through the essential decisions around vision and alignment, people, governance, and technology.

    Your cloud operations design should align to a cloud strategy document that provides guidelines on establishing a cloud council, preparing staff for changing skills, mitigating risks through proper governance, and setting a direction for migration, provisioning, and monitoring decisions.

    Key Insights

    Focus on the future, not the present

    Define your target cloud operations state first, then plan how to get there. If you begin by trying to reconstruct on-prem operations in the cloud, you will build an operations model that is the worst of both worlds.

    Responsibilities change in the cloud

    Understand what you mean by cloud work

    Focus where it matters

    Cloud is a different way of consuming IT resources and applications and it requires a different operational approach than traditional IT.

    In most cases, cloud operations involves less direct execution and more service validation and monitoring

    Work that is invisible to the customer can still be essential to delivering customer value. A lot of operations work is invisible to your organization’s customers but is required to deliver stability, security, efficiency, and more.

    Cloud work is not just applications that have been approved by IT. Consider how unsanctioned software purchased by the business will be integrated and managed.

    Start by designing operations around the main workflow you have for cloud services. If you mostly build or host in the cloud, build the diagram to maximize value for that workflow.

    Design principles will often change over time as the organization’s strategy evolves.

    Identify skills requirements and gaps as early as possible to avoid skills gaps later. Whether you plan to acquire skills via training or cross-training, hiring, contracting, or outsourcing, effectively building skills takes time.

    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

    Call #1: Scope requirements, objectives, and your specific challenges

    Calls #2&3: Assess cloud maturity and drivers for org. redesign

    Call #4: Review cloud objectives and obstacles

    Call #5: Evaluate new ways of working and identify cloud work

    Calls #6&7: Create your Cloud Operations diagram

    Call #8: Create your communication plan and build roadmap

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

    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

    Establish Context

    Design the Organization and Communicate Changes

    Next Steps and
    Wrap-Up (offsite)

    Activities

    1.1 Assess current cloud maturity and areas in need of improvement

    1.2 Identify the drivers for organizational redesign

    1.3 Review cloud objectives and obstacles

    1.4 Develop organization design principles

    2.1 Evaluate new ways of working

    2.2 Develop a workstream target statement

    2.3 Identify cloud work

    3.1 Design a future-state cloud operations diagram

    3.2 Create a current state cloud operations diagram

    3.3 Define success indicators

    4.1 Create a roadmap

    4.2 Create a 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. Cloud Maturity Assessment
    2. Cloud Challenges and Objectives
    1. Workstream target statement
    2. Cloud Operations Workflow Diagrams
    1. Future and current state cloud operations diagrams
    1. Roadmap
    2. Communication Plan

    Cloud Operations Organizing Framework.

    Phase 1:

    Establish context

    Phase 1

    Phase 2

    1.1 Establish operating model design principals by identifying goals & challenges, workstreams, and cloud maturity

    1.2 Evaluate new ways of working

    1.3 Identify cloud work

    2.1 Draft an operating model

    2.2 Communicate proposed changes

    Phase Outcomes:

    Define current maturity and which workstreams are important to your organization.

    Understand new operating approaches and which apply to your workstream balance.

    Identify a new target state for IT operations.

    Before you get started

    Set yourself up for success with these three steps:

    • This methodology and the related slides are intended to be executed via intensive, collaborative working sessions using the rest of this slide deck.
    • Ensure the working sessions are successful by working through these steps before you start work on defining your cloud operations.

    1. Identify an operations design working group

    2. Review cloud vision and strategy

    3. Create a working folder

    This should be a group with insight into current cloud challenges, and with the authority to drive change. This group is the main audience for the activities in this blueprint.

    Review your established planning work and documentation.

    Create a repository to house your notes and any work in progress.

    Create a working folder

    15 minutes

    Create a central repository to support transparency and collaboration. It’s an obvious step, but one that’s often forgotten.

    1. Download all the documents associated with this blueprint to a shared repository accessible to all participants. Keep separate folders for templates and work-in-progress.
    2. Share the link to the repository with all attendees. Include links to the repository in any meeting invites you set up as working sessions for the project.
    3. Use the repository for all the work you do in the activities listed in this blueprint.

    Step 1.1: Identify goals and challenges, workstreams, and cloud maturity

    Participants

    • Operations Design Working Group, which may include:
      • Cloud owners
      • Platform/Applications Team leads
      • Infra & Ops managers

    Outcomes

    • Identify your current cloud maturity and areas in need of improvement.
    • Define the advantages you expect to realize from cloud services and any obstacles you have to overcome to meet those objectives.
    • Identify the reasons why redesigning cloud operations is necessary.
    • Develop organization design principles.

    “Start small: Begin with a couple services. Then, based on the feedback you receive from Operations and the business, modify your approach and keep increasing your footprint.” – Nenad Begovic

    Cloud changes operational activities, tactics, and goals

    As you adopt cloud services, the operations core mission remains . . .

    • IT operations are expected to deliver stable, efficient, and secure IT services.

    . . . but operational activities are evolving.

    • Core IT operational processes remain relevant, such as incident or capacity management, but opportunities to automate or outsource operations tasks will change how that work is done.
    • As you rely more on automation and outsourcing, the team may see less direct execution in its day-to-day work and more solution design and validation.
    • Outsourcing frees the team from operational toil but reduces the direct control over your end-to-end solution and increases your reliance on your vendor.
    • Pay-as-you-go pricing models present opportunities for streamlined delivery and cost rationalization but require you to rethink how you do cost and asset management.
    • It’s very easy for the business to buy a SaaS solution without consulting IT, which can lead to duplicated functionality, integration challenges, security threats, and more.

    Design a model for cloud operations that helps you achieve value from your cloud environment.

    “As operating models shift to the cloud, you still need the same people and processes. However, the shift is focused on a higher level of operations. If your people no longer focus on server uptime, then their success metrics will change. When security is no longer protected by the four walls of a datacenter, your threat profile changes.

    (Microsoft, “Understand Cloud Operating Models,” 2022)

    Operational responsibilities are shared with a range of stakeholders

    When using a vendor-operated public cloud, IT exists in a shared responsibility model with the cloud service provider, one that is further differentiated by the type of cloud service model in use: broadly, software-as a service (SaaS), platform-as-a-service (PaaS), or infrastructure-as-a-service (IaaS).

    Your IT operations organization may still reflect a structure where IT retains control over the entire infrastructure stack from facilities to application and defines their operational roles and processes accordingly.

    If the organization chooses a co-location facility, they outsource facility responsibility to a third-party provider, but much of the rest of the traditional IT operating model remains the same. The operations model that worked for an entirely premises-based environment is very different from one that is made up of, for instance, a portfolio of SaaS applications, where your control is limited to the top of the infrastructure stack at the application layer.

    Once an organization migrates workloads to the cloud, IT gives up an increasing amount of control to the vendor, and its traditional operational roles & responsibilities necessarily change.

    The image contains a screenshot that demonstrates what the cloud service models are.

    Align operations with customer value

    • Decisions about operational design should be made with customer value in mind. Remember that cloud adoption should be an enabler of adaptability in the face of changing business needs!
    • Think about how the operations team is indispensable to the value received by your customer. Think about the types of changes that can add to the value your customers receive.
    • A focus on value will help you establish and explain the rationale and urgency required to deliver on needed changes. If you can’t explain how the changes you propose will help deliver value, your proposal will come across as change for the sake of change.
    The image contains a screenshot of a diagram to demonstrate how operational design decisions need to be made with customer value in mind.

    Info-Tech Insight

    Work that is invisible to the customer can still be essential to delivering customer value. A lot of operations work is invisible to your organization’s customers but required to deliver stability, security, efficiency, and more.

    A new consumption model means a different mix of activities

    Evolving to cloud-optimal operations also means re-assessing and adapting your team’s approach to achieving cloud maturity, especially with respect to how automation and standardization can be leveraged to best achieve optimization in cloud.

    Traditional ITDesignExecuteValidateSupportMonitor
    CloudDesignExecuteValidateSupportMonitor

    Info-Tech Insight

    Cloud is a different way of consuming IT resources and applications and requires a different operational approach than traditional IT.

    In most cases, cloud operations involves less direct execution and more service validation and monitoring.

    The Service Models in cloud correspond to the way your organization delivers IT

    Service Model

    Example

    Function

    Software-as-a-Service (SaaS)

    Salesforce.com

    Office 365

    Workday

    Consume

    Platform-as-a-Service (PaaS)

    Azure Stack

    AWS SageMaker

    WordPress

    Build

    Infrastructure-as-a-Service (IaaS)

    Microsoft Azure

    Amazon EC2

    Google Cloud Platform

    Host

    Define how you plan to use cloud services

    Your cloud operations will include different tasks, teams, and workflows, depending on whether you consume cloud services, build them, or host on them.

    Function

    Business Need

    Service Model

    Example Tasks

    Consume

    “I need a commodity, off-the-shelf service that we can configure to our organization’s needs.

    Software-as-a-Service (SaaS)

    Onboard and add users to a new SaaS offering. Vendor management of SaaS providers. Configure/integrate the SaaS offering to meet business needs.

    Build

    “I need to create significantly customized or net-new products and services.”

    Platform-as-a-Service (PaaS) & Infrastructure as-a-Service (IaaS)

    Create custom applications. Build and maintain a container platform. Manage CI/CD pipelines and tools. Share infrastructure and applications patterns.

    Host

    “I need compute, storage, and networking components that reflect key cloud characteristics (on-demand self-service, metered usage, etc.).”

    Infrastructure-as-a-Service (IaaS)

    Stand up compute, networking, and storage resources to host a COTS application. Plan to increase storage capacity to support future demand.

    Align to the well-architected framework

    • Each cloud provider has defined a well-architected framework (WAF) that defines effective deployment and operations for their services.
    • WAFs embody a set of best practices and design principles to leverage the cloud in a more efficient, secure, and cost-effective manner.
    • While each vendor’s WAF has its own definitions and nuances, they collectively share a set of key principles, or “pillars,” that define the desired outcome of any cloud deployment.
    • These pillars address the key areas of risk when migrating to a public cloud platform.

    “In order to accelerate public cloud adoption, you need to focus on infrastructure-as-code and script everything you can. Unlike traditional operations, CloudOps focuses on creating scripts: a script for task A, a script for task B, etc.”

    – Nenad Begovic

    Pillars

    • Reliability
    • Security
    • Cost Optimization
    • Operational Excellence
    • Performance Efficiency

    General Best Practice Capability Areas

    • Host
    • Network
    • Data
    • Identity Management
    • Cost/Subscription Management

    Assess cloud maturity

    2 hours

    1. Download a copy of the Cloud Maturity Assessment Tool.
    2. As a group, work through:
      • The balance of your operations activities from a Host/Build/Consume perspective. What are you responsible for delivering now? How do you expect things will change in the future?
      • Which workstreams to focus on. Are there activity categories that are critical or non-critical or that don’t represent a significant portion of overall work? Conversely, are there workstreams that you feel are subject to particular risk when moving to cloud?
    3. Fill out the Maturity Quiz tab in the Cloud Maturity Assessment Tool for the workstreams you have chosen to focus on.
    InputOutput
    • Insight into and experience with your current cloud environment.
    • Maturity scoring for key workload streams as they align to the pillars of a general well-architected cloud framework
    MaterialsParticipants
    • Whiteboard/Flip chart
    • Operating model template
    • Cloud platform SMEs

    Download theCloud Maturity Assessment Tool

    Identify the drivers for organizational redesign

    Whiteboard Activity

    An absolute must-have in any successful redesign is a shared understanding and commitment to changing the status quo.

    Without a clear and urgent call to action, the design changes will be seen as change for the sake of change and therefore entirely safe to ignore.

    Take up the following questions as a group:

    1. What kind of organizational change is needed?
    2. Why do we think the need for this change is urgent?
    3. What do we think will happen if no change occurs? What’s the worst-case scenario?

    Record your answers so you can reference and use them in the communication materials you’ll create in Phase 2.

    InputOutput
    • Cloud maturity assessment
    • Objectives and obstacles
    • Insight into existing challenges stemming from organizational design challenges
    • A list of reasons that form a compelling argument for organizational change
    MaterialsParticipants
    • Whiteboard/Flip chart
    • Cloud Operations Design Working Group

    “We know, for example, that 70 percent of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. We also know that when people are truly invested in change it is 30 percent more likely to stick.”

    – Ewenstein, Smith, Sologar

    McKinsey (2015)

    Consider the value of change from advantage and obstacle perspectives

    Consider what you intend to achieve and the obstacles to overcome to help identify the changes required to achieve your desired future state.

    Advantage Perspective

    Ideas for Change

    Obstacle Perspective

    What advantages do cloud services offer us as an organization?

    For example:

    • Enhance service features.
    • Enhance user experience.
    • Provide ubiquitous access.
    • Scalability to align with demand.
    • Automate or outsource routine tasks.

    What obstacles prevent us from realizing value in cloud services?

    For example:

    • Inadequate stability and reliability
    • Difficult to observe or monitor workloads
    • Challenges ensuring cloud security
    • Insufficient access to relevant skills

    Review risks and challenges

    Changes to Support Model

    • Have we identified who is on the cloud ops team?
    • Do we know where we are procuring skills (internal IT vs. third party) and for how long?
    • Do we know where we are in the migration process?

    Changes to security & governance

    • Have we identified how our attack surface changes in the cloud?
    • Do we have guardrails in place to govern self-provisioning users?
    • Are we managing cost overage risks?

    Replicating old habits

    • Have we made concrete plans to leverage cloud capabilities to standardize and automate outputs?
    • Are we simply reproducing existing systems in the cloud?

    Changes to Skills & Roles

    • Is our staff excited to learn new skills and technologies? Are our specialists prepared to acquire generalist skills to support cloud services?
    • Do we have training plans created and aligned to our technology roadmap?
    • Do we know what head count we need?

    Misaligned stakeholders

    • Have we identified our key stakeholders and teams? Have we considered what changes will impact them and how?
    • Are we meeting regularly and collaborating effectively with our peers, or are we siloed?

    Review cloud objectives and obstacles

    Whiteboard Activity

    1 hour

    1. With your working group, review why you’re using cloud in the first place. What advantages do you expect to realize by adopting cloud services? If we achieve what we’ve set out to do, what should that look and feel like to us, our organization, and our organization’s customers?
      • You should have identified cloud drivers and objectives in your cloud vision and strategy – leverage and validate what you already have!
    2. Next, identify obstacles that are preventing you from fully realizing the value of cloud services.
    3. Finally, brainstorm initial ideas for change. What could we start doing that could help us better use cloud in the future? Are there changes to how we need to organize ourselves to collaborate more effectively?
    InputOutput
    • Insight into and experience with your current cloud environment
    • Identified key business outcomes you expect to realize by adopting cloud services
    • Identified challenges and obstacles that are preventing you from realizing key outcomes
    MaterialsParticipants
    • Whiteboard/Flip chart
    • Cloud operations design working group.

    Commonly cited advantages and obstacles

    Cloud Advantages/Objectives

    • Deliver faster on commitments to the business by removing infrastructure provisioning as a bottleneck.
    • Simplify capacity management on flexible cloud-based infrastructure.
    • Reduce capital spending on IT infrastructure.
    • Create sandboxes/innovation practices to experiment with and develop new functionality on cloud platforms.
    • Easily enable ubiquitous access to key corporate services.
    • Minimize the expense and effort required to maintain a data center – power & cooling, cabling, or physical hardware.
    • Leverage existing automation tools from cloud vendors to speed up integration and deployment.
    • Direct costs for specific services can improve transparency and cost allocation, allowing IT to directly “show-back” or charge-back cloud costs to specific cost centers.

    Obstacles

    Need to speed up provisioning of PaaS/IaaS/data resources to development and project teams.

    No time to develop and improve platform services and standards due to other responsibilities.

    We constantly run up unexpected cloud costs.

    Not enough time for continuous learning and development.

    The business will buy SaaS apps and only let us know after they’ve been purchased, leading to overlapping functionality; gaps in compliance, security, or data protection requirements; integration challenges; cost inefficiencies; and more.

    Role descriptions haven’t kept up with tech changes.

    Obvious opportunities to rationalize costs aren’t surfaced (e.g. failing to make use of existing volume licensing agreements).

    Skills needed to properly operate cloud solutions aren’t identified until breakdowns happen.

    Establish organization design principles

    You’ve established a need for organizational change. What will that change look like?

    Design principles are concise, direct statements that describe how you will design your organization to achieve key objectives and address key challenges.

    This is a critically important step for several reasons:

    • A set of clear, concise statements that describe what the design should achieve provides parameters that will help you create and evaluate different design options.
    • A focused, facilitated discussion to create those statements will help uncover conflicting assumptions between key stakeholders.
    • A comprehensive description of the various ways the organization should change makes it easier to identify misaligned or incompatible objectives.
    • A description of what your organization should look like in the future will help you identify where changes will be required .

    Examples of design principles:

    1. We will create a path to review and publish effective application/platform patterns.
    2. A single governing body should have oversight into all cloud costs.
    3. Development must happen only on approved cloud platforms.
    4. Application teams must address operational issues that derive from the applications they’ve created.
    5. Security practices should be embedded into approved cloud platforms and be automatically applied wherever possible.
    6. Focus is on improving developer experience on cloud platforms.

    Info-Tech Insight

    Design principles will often change as the organization’s strategy evolves.

    Align design principles to your objectives

    Developing design principles starts with your key objectives. What do we absolutely have to get right to deliver value through cloud services?

    Once you have your direction set, work through the points in the star model to establish how you will meet your objectives and deliver value. Each point in the star is an important element in your design – taken together, it paints a holistic picture of your future-state organization.

    The changes you choose to implement that affect capabilities, structure, processes, rewards, and people should be self-reinforcing. Each point in the star is connected to, and should support, the other points.

    “There is no one-size-fits-all organization design that all companies – regardless of their particular strategy needs – should subscribe to.”

    – Jay Galbraith, “The Star Model”

    The image contains a screenshot of a modified versio of Jay Galbraith's Star Model of Organizational Design.

    Establish design principles

    Track your findings in the table on the next slide.

    1. Review the cloud objectives and challenges from the previous activity. As a group, decide from that list: what are the key objectives you are trying to achieve? What are the things you absolutely must get right to get value from cloud services?
    2. Work through the following questions as a group:
      • What capabilities or technologies do we need to adopt or leverage differently?
      • How must our structure change? How will power shift in the new structure?
      • Will our new structure require changes to processes or information sharing?
      • How must we change how we motivate or reward employees?
      • What new skills or knowledge is required? How will we acquire those skills or knowledge?
    InputOutput
    • Cloud objectives and challenges
    • Different viewpoints into how your organization must change to realize objectives and overcome challenges
    • Organizational design principles for cloud operations
    MaterialsParticipants
    • Whiteboard/Flip charts
    • Cloud operations design working group

    Design principles (example)

    What is our key objective?

    • Rapidly develop innovative cloud services aligned to business value.

    What capabilities or technologies do we need to adopt or leverage differently?

    • We will adopt more agile development techniques to make smaller changes, faster.
    • We will standardize and automate tasks that are routine and repeatable.

    How must our structure change? How will power shift in the new structure?

    • Embed development teams within business units to better align to business unit needs.
    • Create a focused cloud platform team to develop infrastructure services.

    Will our new structure require changes to processes or information sharing?

    • Development teams will take on responsibility for application support.
    • Platform teams will be deeply embedded with development teams on new projects to build new infrastructure functionality.

    How must we change how we motivate or reward employees?

    • We will highlight innovative work across the company.
    • We will encourage experimentation and risk-taking.

    What new skills or knowledge is required, and how will we acquire it?

    • We will focus on acquiring skills most closely aligned to our technology roadmap.
    • We will ensure budget is available for training employees who ask for it.
    • We will contract to find skills we cannot develop in-house and use engagements as an opportunity to learn internally.

    Step 1.2: Evaluate new ways of working

    Participants

    Cloud Operations Design Working Group

    Outcomes

    Shared understanding of the horizon of work possibilities:

    • Ways to work
    • Ways to govern and learn

    Consider the different approaches on the following slides, how they change operational work, and decide which approaches are the right fit for you.

    Evaluate new ways of working

    Cut through the hype

    • There are new approaches/ways of working that deal head on with the persistent breakdowns and headaches that come with operations management – work thrown over the wall from development, manual and repetitive work, siloed teams, and more.
    • Many of these approaches emphasize an operations-aware approach to solutions development and apply techniques traditionally associated with AppDev to Operations.
    • Cloud services present opportunities to outsource/automate away routine tasks.

    “DevOps is a set of practices, tools, and a cultural philosophy that automates and integrates the processes between software development and IT teams. It emphasizes team empowerment, cross-team communication and collaboration, and technology automation.”

    – Atlassian, “DevOps”

    “ITIL 4 brings ITIL up to date by…embracing new ways of working, such as Lean, Agile, and DevOps.”

    – ITIL Foundation: ITIL 4 Edition

    “Over time, left to their own devices, the SRE team should end up with very little operational load and almost entirely engage in development tasks, because the service basically runs and repairs itself.”

    – Ben Treynor Sloss, “Site Reliability Engineering”

    The more things change, the more they stay the same:

    • Core processes remain, but they may be done differently, and new technologies and services create new challenges.
    • Not all approaches are right for all organizations, and what’s right for you depends on how you use cloud services.
    • The best solution draws from these management ideas to build an approach to operations that is right for you.

    Leverage patterns to think about new ways of approaching operations work

    Patterns are strategies, approaches, and philosophies that can help you imagine new ways of working in your own organization.

    • The following slides provide an overview of organizing patterns that are applicable to cloud operations.
    • These are strategies that have been applied successfully elsewhere. Review what they can and cannot do and decide whether they are something you can use in your own organizational design.
    • Not every pattern will apply to every organization. For example, an organization which typically consumes SaaS applications will likely have very little need for SRE approaches and techniques.

    Ways to work

    • What work do we do? What skills do we need?
    • How do we create and support systems?

    Ways to govern and learn

    • How do we set and enforce rules?
    • How do we create and share knowledge?

    Explore Applicable Patterns

    Ways to work

    Ways to govern and learn

    1. DevOps

    2. Site Reliability Engineering

    3. Platform Engineering

    4. Cloud Centre of Excellence

    5. Cloud Community of Practice

    What is DevOps?

    “Look for obstacles constantly and treat them as opportunities to experiment and learn.” – Jez Humble, et al. Lean Enterprise: How High Performance Organizations Innovate at Scale

    What it is NOT

    What it IS

    Why Use It

    • Another word for automation or CI/CD tools.
    • A specific role.
    • A fix-all to address friction between existing siloed application and development teams.
    • An approach that will be successful without getting the basics right first.
    • The right fit for every IT organization or every team.

    An operational philosophy that seeks to:

    • Converge accountability for development and operations to align all teams to the goal of delivering customer value.
    • Improve the relationship between Development and Operations teams.
    • Increase the rate of deployment of valuable functionality into production.
    • “A cultural shift giving development teams more control over shipping code to production.” 1
    • You’re doing a lot of custom development.
    • There are opportunities for operations and development teams to work more closely.
    • You want to improve coding quality and throughput.
    • You want to shift the culture of the team to focus on customer value rather than exclusively uptime or new features.
    1 DevOps, SRE, and Platform Engineering

    What is Site Reliability Engineering (SRE)?

    “Hope is not a strategy” – Benjamin Treynor Sloss, Site Reliability Engineering: How Google Runs Production Systems

    What it is NOT

    What it IS

    Why Use It

    • Deeply focussed on a specific technical domain; SRE work “does not discriminate between infrastructure, software, networking, or platforms.” 2
    • A different name for a team of sysadmins.
    • A programming framework or a specific set of technologies.
    • A way to manage COTS software. SRE is less useful when you’re using applications out-of-the-box with minimal customization, integration, or development.
    • An application of skills and approaches from software engineering to improve system reliability.
    • A team responsible for “availability, latency, performance, efficiency, change management, monitoring, emergency response, and capacity planning.”3
    • A team responsible for building systems that become “a platform and workflow that encompasses monitoring, incident management, eliminating single points of failure, [and] failure mitigation.”1
    • You are building services and providing them at scale.
    • You want to improve reliability and reduce “the frequency and impact of failures that can impact the overall reliability of a cloud application.”1
    • You need to define related service metrics and SLOs.
    • To increase the use of automation in operations to avoid mistakes and minimize toil. 3
    1 SRE vs Platform Engineering
    2. Lakhani, Usman. “ISite Reliability Engineering: What Is It? Why Is It Important for Online Businesses?,” 2020.
    3. Sloss, “Introduction,” 2017

    What4 is Platform Engineering?

    “Platform engineers can act as a shield between developers and the infrastructure”

    – Carlos Schults, “What is Platform Engineering? The Concept Behind the Term”

    What it is NOT

    What it IS

    Why Use It

    • A team that manages every aspect of each application on a particular platform.
    • Focussed solely on platform reliability and availability.
    • A different name for a team of sysadmins.
    • Needed for all cloud service deployments. Platform engineers are most useful when you’re building extensively on a particular platform (e.g. AWS, Azure, or your internal cloud).
    • Platform engineers design, build, and manage the infrastructure that supports and hosts work done by developers.
    • The work done by platform engineering allows developers to avoid the repetitive work of setting everything up anew each time.
    • Requires engineers with a deep understanding of cloud services and other platform technologies (e.g. Kubernetes).
    • The big public cloud platforms are built for everyone. You need platform engineering when you need to extensively adapt or manage standard cloud services to support your own requirements.
    • Platform engineers are responsible for creating a secure, stable, maintainable environment that enables developers to do their work faster and without having to manage the underlying technology infrastructure.
    1 DevOps, SRE, and Platform Engineering

    What is a Cloud Center of Excellence?

    You need a strong core to grow a cloud culture.

    What it is NOT

    What it IS

    Why Use It

    • A project management office (PMO) for cloud services.
    • An easy, quick, or temporary fix to cloud governance problems. The CCoE requires champions who provide ongoing support to realize value over time.
    • An approach that’s only for enterprise-sized IT organizations.
    • A standing meeting – members of the CCoE may meet regularly to review progress on their mandate, but work and collaboration need to happen outside of meetings.
    • A cross-functional team responsible for oversight of all cloud initiatives, including architectural, technical, security, financial, contractual, and operational aspects of planned and deployed solutions.
    • The CCoE’s responsibilities typically include governance and continuous improvement; alignment between technical and accounting practices; documentation, training, best practices and standards development; and vendor management.
    • CCoE duties are often part of an existing role rather than a full-time responsibility.
    • You want to enable a core group of cloud experts to promote collaboration and accelerate adoption of cloud services, including members from infrastructure, applications, and security.
    • You need to manage cloud risks, set guidelines and policies, and govern costs across cloud environments.
    • There is an unmet need for training, knowledge sharing, and best practice development across the organization.

    What is a Cloud Community of Practice?

    “We have to stop optimizing for programmers and start optimizing for users”

    – Jeff Atwood

    What it is NOT

    What it IS

    Why Use It

    • A replacement for effective oversight and governance practices, though they may help users navigate and understand governance requirements.
    • A way to advertise cloud to potential new practitioners – engaged members of a CoP are typically already using a particular service.
    • Always exclusively composed of internal staff; in certain cases, a CoP could have external members as well.
    • A network of engaged users and experts who share knowledge and best practices for related technologies, crowdsource solutions to problems, and suggest improvements.
    • Often supported by communication and collaboration tools (e.g. chat channels, knowledge base, forums). May use a range of techniques (e.g. drop-ins, vendor-led training, lunch and learns).
    • Communities of practice may be deliberately created by the organization or develop organically.
    • Communities of practice are an effective way for practitioners to support one another and share ideas and solutions.
    • A CoP can help “shift left” work and help practitioners help themselves.
    • An engaged CoP can help IT to identify improvement opportunities and can also be a channel to communicate updates or changes to practitioners.

    Reinforce what we mean by patterns

    Patterns are . . .

    Ways of Working

    • Sets of habits, processes, and methodologies you want to adopt as part of your operational guidelines and commonly agreed upon definitions.

    Patterns are also . . .

    Ways to Govern and Learn

    • The formal and informal practices and groups that focus on enabling governance, risk management, and adoption.

    Review the implications of each pattern for organizational design

    Ways of Working

    DevOps

    Development teams take on operational work to support the services they create after they are launched to production.

    Some DevOps teams may be aligned around a particular function or product rather than a technology – there are individuals with skills on a number of technologies that are part of the same team.

    Site Reliability Engineering (SRE)

    In the beginning, you can start to adopt SRE practices within existing teams. As demand grows for SRE skills and services, you may decide to create focused SRE roles or teams.

    SRE teams may work across applications or be aligned to just infrastructure services or a particular application, or they may focus on tools that help developers manage reliability. SREs may also be embedded long-term with other teams or take on an internal consulting roles with multiple teams.1

    Platform Engineering

    Platform engineering will often, though not always, be the responsibility of a dedicated team. This team must work very closely with, and tuned into the needs of, its internal customers. There is a constant need to find ways to add value that aren’t already part and parcel of the platform – or its external roadmap.

    This team will take on responsibility for the platform, in terms of feature development, automation, availability and reliability, security, and more. They may also be internal consultants or advisors on the platform to developers.

    1. Gustavo Franco and Matt Brown, “How SRE teams are organized and how to get started.”

    Review the implications of each pattern for organizational design

    Ways to Govern and Learn

    Cloud Center of Excellence

    • A CCoE is a cross-functional group with technical experts from security, infrastructure, applications, and more.
    • There should, ideally, be someone focused on leading the CCoE full-time – often someone with an architecture background. Team members may work on the CCoE part-time alongside their main role, and dedicate more of their time to the CCoE as needed.
    • As the CCoE is a governance function, it will typically bridge and sit above teams working on cloud services, reporting to the CIO, CTO, or to an architecture function.

    Cloud Community of Practice

    • Participation in a community of practice is often above and beyond a core role – it’s a leadership activity taken on by technologically adept experts with a drive to help others.
    • Some organizations will create a role to foster community collaboration, run events, raise opportunities and issues identified by the community with product or technology teams, manage collaboration tools, and more.

    Evolve your organization to meet the needs of increased adoption

    Your operating model should evolve as you increase adoption of cloud services.

    Least Adoption Greatest Adoption

    Initial Adoption

    Early Centralization

    Scaling Up

    Full Steam Ahead

    • One or more small agile teams design, build, manage, and operate individual solutions on cloud resources. Solutions provide early value, and identify new opportunities using small, safe-to-fail experiments.
    • Governance is likely done locally to each team. Knowledge sharing, guidelines, and standards are likely informal.
    • Early experience with cloud services help the organization identify where to invest in cloud services to best meet business demands.
    • Accountability and governance over the platform are more clearly defined, possibly still separate from core IT governance processes. Best practices may be shared across teams through a Community of Practice.
    • Operations may be centralized, where valuable, to support monitoring and incident response.
    • Additional product/service-aligned development teams are created to keep up with demand.
    • There is a focused effort to consolidate best practices and platform knowledge, which can be supported through a culture of learning, effective automation, and appropriate tools.
    • The CCoE takes on additional roles in cloud governance, security, operations, and administration.
    • The organization has reached a relatively steady-state for cloud adoption. Innovation and new service development takes place on a stable platform.
    • A Cloud Center of Excellence is accountable for cloud governance across the organization.
    Adapted from Microsoft, “Get Started: Align your organization,” 2021

    Choose new ways of working that make sense for your team

    1 hour

    Consider if, and how, the approaches to management and governance you’ve just reviewed can offer value to your organization.

    1. List the organizing/managing ideas listed in the previous slides in the table below.
    2. Define why it’s for you. What benefits do you expect to realize? What challenges do you expect this will help you overcome? How does this align with your key benefits and drivers for moving to cloud?
    3. List risks or challenges to adoption. Why will it be hard to do? What could get in the way of adoption? Why might it not be a good fit?
    4. Identify next steps to adopt proposed practices.

    Why it’s for us (drivers)

    Risks or challenges to adoption

    Next steps to build/adopt it

    CCoE

    DevOps

    InputOutput
    • Related Info-Tech slides on new ways of working.
    • Opportunities and challenges in your own cloud deployment that may be addressed through new ways of working.
    • Identify new ways of working aligned to your goals.
    MaterialsParticipants
    • Whiteboard/Flip chart
    • Cloud Operations Design Working Group

    Step 1.3: Identify cloud work

    Participants

    • Operations Design Working Group

    Outcomes

    • Identify core work required to deliver value in key cloud workstreams.

    “At first, for many people, the cloud seems vast. But what you actually do is carve out space.”

    –DevOps Manager

    Identify work

    Before you can identify roles and responsibilities, you have to confirm what work you do as an organization and how that work enables you to meet your goals.

    • A comprehensive approach that connects the work you do to your organizational goals will help you identify work that’s falling through the cracks.
    • Identifying work is an opportunity to look at the tasks you regularly execute and ensure they actually drive value.
    • Working through the exercise as a group will help you develop a common language around the work you do.
    • To make the evident obvious: you can’t decide who should be responsible for something if you don’t know about it in the first place.

    Defining work can be a lot of … work! We recommend you start by identifying work for the workstream you do most – Build, Consume, or Host – to focus your efforts. You can repeat the exercise as needed.

    Map work in workstream diagrams

    The image contains a screenshot of the map work in workstream diagrams.

    The five Well-Architected Framework pillars. These are principles/directions/guideposts that should inform all cloud work.

    The work being done to achieve the workstream target. These are roughly aligned with the three streams on the right.

    Workstream Target: A concise statement of the value you aim to achieve through this workstream. All work should help deliver value (directly or indirectly).

    Define the scope of the exercise

    Whiteboard Activity

    20 minutes

    Over the next few exercises, you’ll do a deep dive into the work you do in one specific workstream. In this exercise, we’ll decide on a workstream to focus on first.

    1. Are you primarily building, hosting on, or consuming cloud services? Start with the workstream where you’re doing the most work.
    2. If this isn’t sufficient to narrow your focus, look at the workstream that is most closely tied to mission critical applications, or that is most in need of review in terms of what work is done and who does it.
    3. You can narrow the scope further if there’s a very specific sub-area that differs from the rest (e.g. managing your O365 environment vs. managing all SaaS applications).
    InputOutput
    • Insight into and experience with your current cloud environment.
    • Your completed cloud maturity assessment.
    • Identify one workstream where you’ll define work first.
    MaterialsParticipants
    • None
    • Cloud Operations Design Working Group

    Create a workstream target statement

    Whiteboard Activity

    30 minutes

    In this activity, come up with a short sentence to describe what all this work you do is building toward. The target statement helps align participants on why work is being done and helps focus the activity on work that is most important to achieving the target statement.

    Start with this common workstream target statement:

    “Deliver valuable, secure, available, reliable, and efficient cloud services.”

    Now, review and adjust the target statement by working through the questions below:

    1. Return to the earlier exercises in Phase 1.1 where you reviewed your key objectives for cloud services. Does the target statement align with what you’d identified previously?
    2. Who is the customer for the work you do? Would they see the target differently than you’ve described it?
    3. Can you be more specific? Are there value drivers that are more specific to your industry, organization, business functions, or products that are key to the value your customers receive from this workstream?
    InputOutput
    • Previous exercises.
    • Workstream target statement.
    MaterialsParticipants
    • Whiteboard/Flip chart
    • Cloud Operations Design Sketchbook
    • Cloud Operations Design Working Group

    Identify cloud work

    1-2 hours

    1. Use the workstream diagram template in the Cloud Operations Design Sketchbook, or draw the template out on a whiteboard and use sticky notes to identify work.
    2. Identify the workstream at the top of the slide. Update the template value statement on the right with the value statement you created in the previous exercise.
    3. Review one or more of the examples in the Cloud Operations Design Sketchbook to get a sense of the level of detail required for this exercise.

    Activity instructions continue on the next slide.

    Some notes to the facilitator:

    • Working directly from the Cloud Operations Design Sketchbook will save you time with transcription. Sharing the document with participants (e.g. via OneDrive) will allow you to collaborate and edit the document together in real-time.
    • Don’t worry about being too tidy for the moment, just get the information written down and you can clean up the diagram later.
    InputOutput
    • Previously identified design principles.
    • An understanding of the work done, and that needs to be done, in your cloud environment.
    • Identify the work that needs to be done to support your key cloud services workstream in the future.
    MaterialsParticipants
    • Cloud Operations Design Sketchbook
    • Whiteboard and sticky notes (optional)
    • Cloud Operations Design Working Group

    Identify cloud work (cont’d)

    4. Work together to identify work, documenting one work item per box. This should focus on future state, so record work whether it’s actually done today or not. Your space is limited on the sheet, so focus on work that is indispensable to delivering the value statement. Use the lists on the right as a reminder of key IT practice areas.

    5. As much as possible, align the work items to the appropriate row (Govern & Align, Design & Execute, or Validate, Support & Monitor). You can overlap boxes between rows if needed.

    Have you captured work related to:

    ITIL practices, such as:

    • Request management
    • Incident & problem management
    • Service catalog
    • Service level management
    • Configuration management

    Security-aligned practices, such as:

    • Identity & access management
    • Vulnerability management
    • Security incident management

    Financial practices, such as:

    • IT asset management
    • Cost management & budgeting
    • Vendor management
    • Portfolio management

    Data-aligned practices, such as:

    • Data integrations
    • Data governance

    Technology-specific tasks, such as:

    • Network, Server & Storage
    • Structured/unstructured DBs
    • Composite services
    • IDEs and compilers

    Other key practices:

    • Monitoring & observability
    • Continuous improvement
    • Testing & quality assurance
    • Training and knowledge management
    • Manage shadow IT

    Info-Tech Insight

    Cloud work is not just applications that have been approved by IT. Consider how unsanctioned software purchased by the business will be integrated and managed.

    Identify cloud work (cont’d)

    6. If you have decided to adopt any of the new ways of working outlined in Step 1.2 (e.g. DevOps, SRE, etc.) review the next slide for examples of the type of work that frequently needs to be done in each of those work models. Add any additional work items as needed.

    7. Consolidate boxes and clean up the diagram (e.g. remove duplicate work items, align boxes, clarify language).

    8. Do a final review. Is all the work in the diagram truly aligned with the value statement? Is the work identified aligned with the design principles from Step 1.1?

    If you used a whiteboard for this exercise, transcribe the output to a copy of the Cloud Operations Design Sketchbook, and repeat the exercise for other key workstreams. You will use this diagram in Phase 2.

    Examples of work

    Examples of work in the "Host" workstream:

    • Bulk patch servers
    • Add a server
    • Add capacity
    • Develop a new server template
    • Incident management

    Examples of work in the "Build" workstream:

    • Provision a production server
    • Provision a test environment
    • Test recovery procedures
    • Add capacity for a service
    • Publish a new pattern
    • Manage capacity/performance for a service
    • Identify wasted spend across services
    • Identify performance bottlenecks
    • Review and shut down idle/unneeded services

    Examples of work in the "Consume" workstream:

    • Conduct vendor risk assessments
    • Develop a standard evaluation matrix to compare solutions to existing or potential in-house offerings
    • Onboard a solution
    • Offboard a solution
    • Conduct a renewal
    • Review and negotiate a contract
    • Rationalize software titles

    Phase 2:

    Design the organization and communicate changes

    Phase 1

    Phase 2

    1.1 Establish operating model design principals by identifying goals & challenges, workstreams, and cloud maturity

    1.2 Evaluate new ways of working

    1.3 Identify cloud work

    2.1 Draft an operating model

    2.2 Communicate proposed changes

    Phase Outcomes:

    Draft your cloud operations diagram, identify key messages and impacts to communicate to your stakeholders, and build out the Cloud Operations Organizing Framework communication deck.

    Step 2.1: Identify groups and responsibilities

    Participants

    • Operations Design Working Group

    Outcomes

    • Cloud Operations Diagram
    • Success Indicators
    • Roadmap

    “No-one ever solved a problem by restructuring.”

    – Anonymous

    Visualize your cloud operations

    Create a visual to help you abstract, analyze, and clarify your vision for the future state of your organization in order to align and instruct stakeholders.

    Create a visual, high-level view of your organization to help you answer questions such as:

    • “What work do we do? What are the roles and responsibilities of different teams?”
    • “How do we interact between work areas?”
    • “How has our organization changed already, and what additional changes may be needed?”
    • “How do we make technology decisions?”
    • “How do we provide services?”
    • “How might this change be received by people on the ground?”
    The image contains a screenshot of the Cloud Operations Diagram Example.

    Decide whether to centralize or decentralize

    Specialization & Focus: A group or work unit developing a focused concentration of skills, expertise, and activities aligned with an area of focus (such as the ones at right).

    Decentralization: Operational teams that report to a decentralized IT or business function, either directly or via a “dotted line” relationship.

    Decentralization and Specialization can:

    • Duplicate work.
    • Localize decision-making authority, which can increase agility and responsiveness.
    • Transfer authority and accountability to local and typically smaller teams, clarifying responsibilities and encouraging staff to take ownership for service delivery.
    • Enable the team to focus on complex and rapidly changing technologies or processes.
    • Create islands of expertise, which can get in the way of collaboration, innovation, and decision making across groups and work units and make oversight difficult.
    • Complicate the transfer of resources and knowledge between groups.

    Examples: Areas of Focus

    Business unit

    • Manufacturing
    • R&D
    • Sales & Marketing

    Region

    • Americas
    • EMEA
    • APAC

    Service

    • ERP
    • Commercial website

    Technology

    • On-premises servers/storage
    • Network
    • Cloud services

    Operational process focus

    • Capacity management & planning
    • Incident management
    • Problem management

    “The concept of organization design is simple in theory but highly complex in practice. Like any strategic decision, it involves making multiple trade-offs before choosing what is best suited to a business context.”

    – Nitin Razdan & Arvind Pandit

    Identify key work areas

    Balance specialization with effective collaboration

    • Much is said about breaking down organizational silos. But at some level, silos are inevitable – any company with more than one employee will have to divide work up somehow.
    • Dividing up work is a delicate balancing act – ensuring individuals and groups are able to do work that is related, meaningful, and that allows autonomy while allowing for effective collaboration between groups that need to work together to achieve business goals.

    Why “work areas”?

    Why don’t we just use teams, groups, squads, or departments, or some other more common term for groups of people working together?

    • We are not yet at the point of deciding who in the organization should be aligned to which areas in the design.
    • Describing work areas as teams can shift the conversation to the organizational chart – to who does the work, rather than what needs to be done.

    That’s not the goal of this exercise. If the conversation gets stuck on what you do today, it can get in the way of thinking about what you need to do in the future.

    Create a future-state cloud operations diagram

    1-3 hours

    1. Review the example cloud operations diagram example in your copy of the Cloud Operations Design Sketchbook.
    2. Identify key work areas (e.g. applications, infrastructure, platform engineering, DevOps, security). Add the name of each work area in one of the larger boxes.
      • Go back to your design principles. Did you define any work areas in your design principles that should be represented here?
      • If you have several groups or teams with similar responsibilities, consider lumping them together in one box (e.g. applications teams, 3x DevOps teams).
    3. Copy the tasks from any workstream diagrams you’ve created to the same slide as the organization design diagram. Keep the workstream diagram intact, as you’ll want to be able to refer back to it later.

    Activity instructions continue on the next slide.

    InputOutput
    • Insight into and experience with your current cloud environment.
    • Cloud Operations Diagram
    MaterialsParticipants
    • Whiteboard/Flip charts
    • Cloud Operations
    • Cloud Operations Design Working Group

    Cloud operations diagram (cont’d)

    1-3 hours

    4. As a group, move the work boxes from the workstream diagram into the appropriate work area.

    • Don’t worry about being too tidy for the moment – clean up the diagram when the exercise is done.
    • Make adjustments to the wording of the work boxes if needed.

    5. Use the space between work areas to describe how work areas must interact to achieve organizational goals. For example:

    • What information should be shared between groups?
    • What information sharing channels may be used?
    • What processes will be handed-off between groups and how?
    • How often will teams interact?
    • Will interactions be formal or informal?

    Create a current-state operations diagram

    1 -2 hours

    This exercise can be done by one person, then reviewed with the working group at a later time.

    This current state diagram helps clarify the changes that may need to happen to get to your future state.

    1. Color code the work boxes for each work area. For example, if you have a “DevOps” work area, make all the work boxes assigned to “DevOps” the same color.
    2. On a separate slide, sketch your existing organization indicating your current teams.
    3. Copy the tasks from the future-state diagram to this current-state chart. Align the tasks to the appropriate groups.
    4. Review the chart with the working group. Discuss: are there teams that are doing work today that will also be done by different teams? Are there groups that may merge into one team? What types of changes may be required?
    InputOutput
    • Future-state cloud operations diagram
    • Current-state cloud operations diagram
    MaterialsParticipants
    • Cloud Operations Design Sketchbook
    • Projector/screen/virtual meeting
    • Project lead
    • Cloud Operations Design Working Group

    Check for biases to make better choices

    Use the strategies below to spot and address flaws in your team’s thinking about your future-state design.

    Biases

    What’s the risk?

    Mitigation strategies

    Is the team making mistakes due to self-interest, love of a single idea, or groupthink?

    Important information may be ignored or left unspoken.

    Rigorously check for the other biases, below. Tactfully seek dissenting opinions.

    Do recommendations use unreasonable analogies to other successes or failures?

    Opportunities or challenges in the current situation may not be sufficiently understood.

    Ask for other examples, and check whether the analogies are still valid.

    Is the team blinkered by the weight of past decisions?

    Doubling-down on bad decisions (sunk costs) or ignoring new opportunities.

    Ask yourself what you'd do if you were new to the position or organization.

    Does the data support the recommendations?

    Data used to make the case isn't a good fit for the challenge, is based on faulty assumptions, or is incomplete.

    If you had a year to make the decision, what data would you want? How much can you get?

    Are there realistic alternative recommendations?

    Alternatives don't exist or are "strawman" options.

    Ask for additional options.

    Is the recommendation too risk averse or cautious?

    Recommendations that may be too risky are ignored, leading to missed opportunities.

    Review options to accept, transfer, distribute, or mitigate the risk of the decision.

    Framework above adapted from Kahneman, Lovallo, and Sibony (2011)

    Be specific with metrics

    Thinking of ways you could measure success can help uncover what success actually means to you.

    Work collectively to generate success indicators for each key cloud initiative. Success indicators are metrics, with targets, aligned to goals, and if you are able to measure them accurately, they should help you report your progress toward your objectives.

    For example, if your driver is “faster access to resources” you might consider indicators like developer satisfaction, project completion time, average time to provision, etc.

    There are several reasons you may not publicize these metrics. They may be difficult to calculate or misconstrued as targets, warping behavior in unexpected ways. But managed properly, they have value in measuring operational success!

    Examples: Operations redesign project metrics

    Key stakeholder satisfaction scores

    IT staff engagement scores

    Support Delivery of New Functionality

    Double number of accepted releases per cycle

    80% of key cloud initiatives completed on time, on budget, and in scope

    Improve Operational Effectiveness

    <1% of servers have more than two major versions out of date

    No more than one capacity-related incident per Q

    Define success indicators

    Whiteboard Activity

    45 minutes

    1. On a whiteboard, draw a table with key objectives for the design across the top.
      • What cloud objectives should the redesign help you achieve? Refer back to the design principles from Phase 1.
      • Think about the redesign itself. How will you measure whether the project itself is proceeding according to plan? Consider metrics such as employee engagement scores and satisfaction scores from key stakeholders.
    2. Consider whether the metrics are feasible to track. Record your decisions in your copy of the Cloud Operations Organizing Framework deck.
    InputOutput
    • Key design goals
    • Success indicators for your design
    MaterialsParticipants
    • Whiteboard
    • Markers
    • Cloud Operations Design Working Group

    Populate a roadmap

    Tool Activity

    45 minutes

    1. In the Roadmap Tool, populate the data entry tab with the initiatives you will take to support changes toward the new cloud operations organizing framework.
    2. Input each of the tasks in the data entry tab and provide a description and rationale behind the task (as needed).
    3. Assign an effort, priority, and cost level to each task (high, medium, low).
    4. Assign an owner to each task – someone who can take points and shepherd the task to completion.
    5. Identify the timeline for each task based on the priority, effort, and cost (short, medium, and long term).
    6. Highlight risk for each task if it will be deferred.
    7. Track the progress of each task with the status column.
    InputOutput
    • Cloud Operations Organizing Framework
    • Roadmap/ implementation plan
    MaterialsParticipants
    • Roadmap Tool
    • Cloud Operations Design Working Group

    Download the Roadmap Tool

    Step 2.2: Communicate changes

    Participants

    • Operations Design Working Group

    Outcomes

    • Build a communication plan for key stakeholders
    • Complete the communication deck Cloud Operations Organizing Framework
    • Build a roadmap

    “Words, words, words.”

    – Shakespeare

    Communicate changes

    Which stakeholders will be affected by the changes?

    Decision makers: Who do you ultimately need to convince to proceed with any changes you’ve outlined?

    Peers: How will managers of other areas be affected by the changes you’re proposing? If you are you suggesting changes to the way that they, or their teams, do their work, you will have to present a compelling case that there’s value in it for them.

    Staff: Are you dictating changes or looking for feedback on the path forward?

    The image contains a screenshot of the Five Elements of Change that is displayed in a cycle. The five elements are: What is the change? Why are we doing it? How are we going to go about it? How long will it take us? What is the role of each team and individual.

    Source: The Qualities of Leadership: Leading Change

    Follow these guidelines for good communication

    Be relevant

    • Talk about what matters to each stakeholder group.
    • Talk about what matters to the initiative.
    • IT thinks in processes but stakeholders only care about results: talk in terms of results.
    • IT wants to be “understood” but this does not matter to stakeholders; think “what’s in it for them?”
    • Communicate truthfully; do not make false promises or hide bad news.
    • If you expect objections, create a plan to handle them.

    Be clear

    • Lead with the point you’re trying to make.
    • Don’t use jargon.
    • Avoid idiomatic language and clichés.
    • Have a third party review draft communications and ask them to tell you the key messages in their own words. If they’re missing the main points, there’s a good chance the draft isn’t clear.

    Be consistent

    • Ensure the core message is consistent regardless of audience, channel, or medium.
    • Changing the core message from one group to another can be interpreted as incompetence or an attempt at deception. This will damage your credibility and can lead to a loss of trust.

    Be concise

    • Get to the point.
    • Minimize word count wherever possible.

    “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

    Create a communication plan

    1 hour

    Fill out the table below.

    Stakeholder group: Identify key stakeholders who may be impacted by changes to the operations team. This might include IT leadership, management, and staff.

    Benefits: What’s in it for them?

    Impact: What are we asking in return?

    How: What mechanisms or channels will you use to communicate?

    When: When (and how often) will you get the message out?

    Benefits

    Impact

    How

    When

    IT Mgrs.

    • Improve agility, stability
    • Deliver faster against business goals
    • Respond to identified needs
    • Improve confidence in IT
    • Must support the process
    • Change and engagement issues during restructuring may affect staff engagement and productivity
    • Training budget required
    • Present at leadership meeting
    • Kick-off email
    • Sept. leadership meeting
    • Weekly touchpoints
    • Informally throughout project

    Ops Staff

    • Clearer direction and clear priorities (Operations mission statement and RACI)
    • Higher-value work – address problems, contribute to plans
    • New skills and training
    • More personal accountability
    • Push toward process consistency
    • Must make time and plan for training during work hours
    • Present at operations team’s offsite meeting
    • AMA channel on Slack
    • 1:1 meetings
    • Add RACI, org. sketch to shared folder
    • Operations offsite
    • Sept. all-hands meeting
    • Ongoing coaching and informal conversations
    InputOutput
    • Discussion
    • Communication Plan
    MaterialsParticipants
    • Whiteboard/Flip Chart
    • Cloud Operations Design Working Group

    Download the Communication Plan Template

    Support the transition with a plan to acquire skills

    Identify the preferred way to acquire needed skill sets: contracting, outsourcing, training, or hiring.

    • Some cloud projects will change the demand for some skills in the organization, and not all skills should be cultivated internally. Uncertainty about future skills and jobs will cause anxiety for your team and can lead to employee exit.
    • Use Info-Tech’s research to conduct a demand analysis to identify which new and critical skills should be acquired via training or hiring (rather than outsourcing or contracting).
    • Create a roadmap to clarify when training needs to be completed, a budget plan that accounts for training costs, and role descriptions that paint a picture of future work.
    • Within the confines of a collective agreement, managers may be required to retrain staff into new roles before those staff are required to do work in their new jobs. Failing to plan can be more consequential.
    • Remember that in cloud, a wealth of automation opportunities present a great option for offloading tasks as well!

    Info-Tech Insight

    Identify skills requirements and gaps as early as possible to avoid skills gaps later. Whether you plan to acquire skills via training or cross-training, hiring, contracting, or outsourcing, effectively building skills takes time. Use Info-Tech’s methodology to address skills gaps in a prioritized and rational way.

    Involve HR for implementation

    Your HR team should help you work through:

    • Which staff and managers will move to which roles, and any headcount changes.
    • Job descriptions, performance metrics, career paths, compensation, and succession planning.
    • Organizational change management and implementation plans.

    When do you need to involve HR?

    Role changes will result in job description changes.

    • New or changed job descriptions need to be evaluated for impact on pay, title, exempt status, career pathing, and more.
    • This is especially true in more traditional or unionized organizations that require specific and granular job descriptions of responsibilities.
    • Changed jobs will likely require union review and approval.

    You anticipate changes to the reporting structure.

    • Work with HR to develop a transition plan including communications, training to new managers, and support to new teams.

    You anticipate redundancies.

    • Your HR department can prepare you for difficult discussions, help you navigate labor laws, and support the offboarding process.

    You anticipate new positions.

    • Recruitment and hiring takes time. Give HR advance notice to support recruitment, hiring, and onboarding to ensure you hire the right people, with the right skills, at the right time.

    Training and development budget is required.

    • If training is a critical part of the onboarding process, don’t just assume funding is available. Work with HR to build your case.

    Related Info-Tech Research

    Define Your Cloud Vision

    Define your cloud vision before it defines you.

    Document Your Cloud Strategy

    Drive consensus by outlining how your organization will use the cloud.

    Map Technical Skills for a Changing Infrastructure & Operations Organization

    Be practical and proactive – identify needed technical skills for your future-state environment and the most efficient way to acquire them.

    Bibliography

    “2021 GitLab DevSecOps Survey.” Gitlab, 2021.
    “2022 State of the Cloud Report.” Flexera, 2022.
    “DevOps.” Atlassian, ND. Web. 21 July 2022.
    Atwood, Jeff. “The 2030 Self-Driving Car Bet.” Coding Horror, 4 Mar 2022. Web. 5 Aug 2022.
    Campbell, Andrew. “What is an operating model?” Operational Excellence Society, 12 May 2016. Web. 13 July 2022.
    “DevOps.” Atlassian, ND. Web. 21 July 2022.
    Ewenstein, Boris, Wesley Smith, Ashvin Sologar. “Changing change management” McKinsey, 1 July 2015. Web. 8 April 2022.
    Franco, Gustavo and Matt Brown. “How SRE teams are organized, and how to get started.” Google Cloud Blog, 26 June 2019. Web. July 13 2022.
    “Get started: Build a cloud operations team.” Microsoft, 10 May 2021.
    ITIL Foundation: ITIL 4 Edition. Axelos, 2019.
    Humble, Jez, Joanne Molesky, and Barry O’Reilly. Lean Enterprise: How High Performance Organizations Innovate at Scale. O’Reilly Media, 2015.
    Franco, Gustavo and Matt Brown. “How SRE teams are organized and how to get started.” 26 June 2019. Web. 21 July 2022.
    Galbraith, Jay. “The Star Model”. ND. Web. 21 July 2022.
    Kahnemanm Daniel, Dan Lovallo, and Olivier Sibony. “Before you make that big decision.” Harv Bus Rev. 2011 Jun; 89(6): 50-60, 137. PMID: 21714386.
    Kesler, Greg. “Star Model of Organizational Design.” YouTube, 1 Oct 2018. Web Video. 21 Jul 2022.
    Lakhani, Usman. “Site Reliability Engineering: What Is It? Why Is It Important for Online Businesses?” Info-Tech. Web. 25 May 2020.
    Mansour, Sherif. “Product Management: The role and best practices for beginners.” Atlassian Agile Coach, n.d.
    Murphy, Annie, Jamie Kirwin, Khalid Abdul Razak. “Operating Models: Delivering on strategy and optimizing processes.” EY, 2016.
    Shults, Carlos. “What is Platform Engineering? The Concept Behind the Term.” liatrio, 3 Aug 2021. Web. 5 Aug 2022.
    Sloss, Benjamin Treynor. Site Reliability Engineering Part I: Introduction. O’Reilly Media, 2017.
    “SRE vs. Platform Engineering.” Ambassador Labs, 8 Feb 2021.
    “The Qualities of Leadership: Leading Change.” Cornelius & Associates, n.d. Web.
    “Understand cloud operating models.” Microsoft, 02 Sept. 2022.
    Velichko, Ivan. “DevOps, SRE, and Platform Engineering.” 15 Mar 2022.

    Research Contributors and Experts

    Nenad Begovic

    Executive Director, Head of IT Operations

    MUFG Investor Services

    Desmond Durham

    Manager, ICT Planning & Infrastructure

    Trinidad & Tobago Unit Trust Corporation

    Virginia Roberts

    Director, Enterprise IT

    Denver Water

    Denis Sharp

    IT/LEAN Consultant

    Three anonymous contributors

    The Complete Manual for Layoffs

    • Buy Link or Shortcode: {j2store}514|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
    • member rating average dollars saved: $30,999 Average $ Saved
    • member rating average days saved: 20 Average Days Saved
    • Parent Category Name: Lead
    • Parent Category Link: /lead

    When the economy is negatively influenced by factors beyond any organization’s control, the impact can be felt almost immediately on the bottom line. This decline in revenue as a result of a weakening economy will force organizations to reconsider every dollar they spend.

    Our Advice

    Critical Insight

    • The remote work environment many organizations find themselves in adds a layer of complexity to the already sensitive process of laying off employees.
    • Carrying out layoffs must be done while keeping personal contact as your first priority. That personal contact should be the basis for all subsequent communication with laid-off and remaining staff, even after layoffs have occurred.

    Impact and Result

    By following our process, we can provide your organization with the direction, tools, and best practices to lay off employees. This will need to be done with careful consideration into your organization’s short- and longer-term strategic goals.

    The Complete Manual for Layoffs Research & Tools

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

    1. Prepare for layoffs

    Understand the most effective cost-cutting solutions and set layoff policies and guidelines.

    • The Complete Manual for Layoffs Storyboard
    • Layoffs SWOT Analysis Template
    • Redeployment and Layoff Strategy Workbook
    • Sample Layoffs Policy
    • Cost-Cutting Planning Tool
    • Termination Costing Tool

    2. Objectively identify employees

    Develop an objective layoff selection method and plan for the transfer of essential responsibilities.

    • Workforce Planning Tool
    • Employee Layoff Selection Tool

    3. Prepare to meet with employees

    Plan logistics, training, and a post-layoff plan communication.

    • Termination Logistics Tool
    • IT Knowledge Transfer Risk Assessment Tool
    • IT Knowledge Transfer Plan Template
    • IT Knowledge Identification Interview Guide Template
    • Knowledge Transfer Job Aid
    • Layoffs Communication Package

    4. Meet with employees

    Collaborate with necessary departments and deliver layoffs notices.

    • Employee Departure Checklist Tool

    5. Monitor and manage departmental effectiveness

    Plan communications for affected employee groups and monitor organizational performance.

    • Ten Ways to Connect With Your Employees
    • Creating Connections
    [infographic]

    Agile Readiness Assessment Survey

    • Buy Link or Shortcode: {j2store}160|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: Development
    • Parent Category Link: /development
    • Today’s realities are driving organizations to digitize faster and become more Agile.
    • Agile transformations are difficult and frequently fail for a variety of reasons.
    • To achieve the benefits of Agile, organizations need to be ready for the significant changes that Agile demands.
    • Challenges to your Agile transformation can come from a variety of sources.

    Our Advice

    Critical Insight

    • Use Info-Tech’s CLAIM+G model to examine potential roadblocks to Agile on six different organizational dimensions.
    • Use survey results to identify and address the issues that are most likely to derail your Agile transformation.

    Impact and Result

    • Better understand where and how your organization needs to change to support your Agile transformation.
    • Focus your attention on your organization’s biggest roadblocks to Agile.
    • Improve your organization’s chances of a successful Agile transformation.

    Agile Readiness Assessment Survey Research & Tools

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

    1. Agile Readiness Assessment Deck – A guide to help your organization survey its Agile readiness.

    Read this deck to see how an Agile Readiness Assessment can help your organization understand its readiness for Agile transformation. The storyboard guides you through how to collect, consolidate, and examine survey responses and create an actionable list of improvements to make your organization more Agile ready.

    • Agile Readiness Assessment Storyboard

    2. Survey Templates (Excel or MS Forms, available in English and French) – Use these templates to create and distribute the survey broadly within your organization.

    The Agile Readiness Assessment template is available in either Excel or Microsoft Forms (both English and French versions are available). Download the Excel templates here or use the links in the above deck to access the online versions of the survey.

    • Agile Readiness Survey – English
    • Agile Readiness Survey – French

    3. Agile Readiness Assessment Consolidated Results Tool – Use this tool to consolidate and analyze survey responses.

    The Agile Readiness Assessment Consolidated Results Tool allows you to consolidate survey responses by team/role and produces your heatmap for analysis.

    • Agile Readiness Assessment Consolidated Results Tool
    [infographic]

    Further reading

    Agile Readiness Assessment

    Understand how ready your organization is for an Agile transformation.

    Info-Tech Research Group Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.

    Analyst Perspective

    Use the wisdom of crowds to understand how ready you are for Agile transformation.

    Photo of Alex Ciraco, Principal Research Director, Application Delivery and Management, Info-Tech Research Group

    Agile transformations can be difficult and complex to implement. That’s because they require fundamental changes in the way an organization thinks and behaves (and many organizations are not ready for these changes).

    Use Info-Tech’s Agile Readiness Assessment to broadly survey the organization’s readiness for Agile along six dimensions:

    • Culture
    • Learning
    • Automation
    • Integrated teams
    • Metrics
    • Governance

    The survey results will help you to examine and address those areas that are most likely to hinder your move to Agile.

    Alex Ciraco
    Principal Research Director, Application Delivery and Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Your organization wants to shorten delivery time and improve quality by adopting Agile practices.
    • Your organization has not yet used Agile successfully.
    • You know that Agile transformations are complex and difficult to implement.
    • You want to maximize your Agile transformation’s chances of success.

    Common Obstacles

    • Risks to your Agile transformation can come from a variety of sources, including:
      • Organizational culture
      • Learning practices
      • Use of automation
      • Ability to create integrated teams
      • Use of metrics
      • Governance practices

    Info-Tech’s Approach

    • Use Info-Tech’s Agile Readiness Assessment to broadly survey your organization’s readiness for Agile.
    • Examine the consolidated results of this survey to identify challenges that are most likely to hinder Agile success.
    • Discuss and address these challenges to increase your chances of success.

    Info-Tech Insight

    By first understanding the numerous challenges to Agile transformations and then broadly surveying your organization to identify and address the challenges that are at play, you are more likely to have a successful Agile transformation.

    Info-Tech’s methodology

    1. Distribute Survey 2. Consolidate Survey Results 3. Examine Results and Problem Solve
    Phase Steps

    1.1 Identify the teams/roles you will survey.

    1.2 Configure the survey to reflect your teams/roles.

    1.3 Distribute the Agile Readiness Assessment Survey broadly in the organization.

    2.1 Collect survey responses from all participants.

    2.2 Consolidate the results using the template provided.

    3.1 Examine the consolidated results (both OVERALL and DETAILED Heatmaps)

    3.2 Identify key challenge areas (those which are most “red”) and discuss these challenges with participants

    3.3 Brainstorm, select and refine potential solutions to these challenges

    Phase Outcomes An appreciation for the numerous challenges associated with Agile transformations Identified challenges to Agile within your organization (both team-specific and organization-wide challenges) An actionable list of solutions/actions to address your organization’s Agile challenges.

    Blueprint deliverables

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

    Agile Readiness Assessment Survey

    Survey the organization to understand your readiness for an Agile transformation on six dimensions.

    Sample of the Agile Readiness Assessment Survey blueprint deliverable.

    Agile Readiness Assessment Consolidated Results

    Examine your readiness for Agile and identify team-specific and organization-wide challenges.

    Sample of the Agile Readiness Assessment Consolidated Results blueprint 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

    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 8 calls over the course of 1 to 2 months.

    What does a typical GI on this topic look like?

      Phase 1: Distribute Survey

    • Call #1: Scope requirements, objectives, and your specific challenges (identify potential participants).
    • Call #2: First call with participants (introduce Phase 1 and assign survey for completion).
    • Call #3: Gather survey responses (prep for Phase 2 calls).
    • Phase 2: Consolidate Survey Results

    • Call #4: Consolidate all survey responses using the template.
    • Call #5: Conduct initial review of consolidated results (prep for Phase 3 calls).
    • Phase 3: Examine Results and Problem Solve

    • Call #6: Present consolidated results to participants and agree on most pressing challenges.
    • Call #7: Brainstorm, identify, and refine potential solutions to most pressing challenges.
    • Call #8: Conduct closing and communication call.

    Phase 1 — Phase 1 of 3, 'Distribute Survey'.

    Customize and distribute the survey

    Decide which teams/roles will participate in the survey.

    Decide which format and language(s) you will use for your Agile Readiness Assessment Survey.

    Configure the survey templates to reflect your selected teams/roles.

    Distribute the survey for participants to complete.

    • 1.1 The Agile Readiness Assessment Survey will help you to identify both team-specific and organization-wide challenges to your Agile transformation. It is best to distribute the survey broadly across the organization and include several teams and roles. Identify and make note of the teams/roles that will be participating in the survey.
    • 1.2 Select which format of survey you will be using (Excel or online), along with the language(s) you will use (links to the survey templates can be found in the table below). Then configure the survey templates to reflect your list of teams/roles from Step 1.1.
    • Format Language Download Survey Template
      Excel English Agile Readiness Assessment Excel Survey Template – EN and FR
      Excel French
      Online English Agile Readiness Assessment Online Survey Template – EN
      Online French Agile Readiness Assessment Online Survey Template – FR

    • 1.3 Distribute your Agile Readiness Assessment Survey broadly in the organization. Give all participants a deadline date for completion of the survey.

    Phase 2 — Phase 2 of 3, 'Consolidate Results'.

    Consolidate Survey Results

    Collect and consolidate all survey responses using the template provided.

    Review the OVERALL and DETAILED Heatmaps generated by the template.

    • 2.1 Collect the survey responses from all participants. All responses completed using the online form will be anonymous (for responses returned using the Excel form, assign each a unique identifier so that anonymity of responses is maintained).
    • 2.2 Consolidate the survey responses using the template below. Follow the instructions in the template to incorporate all survey responses.
    • Download the Agile Readiness Assessment Consolidated Results Tool

      Sample of the Agile Readiness Assessment Consolidated Results Tool, ranking maturity scores in 'Culture', 'Learning', 'Automation', 'Integrated Teams', 'Metrics', and 'Governance'.

    Phase 3 — Phase 3 of 3, 'Examine Results'.

    Examine Survey Results and Problem Solve

    Review the consolidated survey results as a team.

    Identify the challenges that need the most attention.

    Brainstorm potential solutions. Decide which are most promising and create a plan to implement them.

    • 3.1 Examine the consolidated results (both OVERALL and DETAILED Heatmaps) and look at both team-specific and organization-wide challenge areas.
    • 3.2 Identify which challenge areas need the most attention (typically those that are most red in the heatmap) and discuss these challenges with survey participants.
    • 3.3 As a team, brainstorm potential solutions to these challenges. Select from and refine the solutions that are most promising, then create a plan to implement them.

    3.1 Exercise: Collaborative Problem Solving — Phase 3 of 3, 'Examine Results'.

    60 Mins

    Input: Consolidated survey results

    Output: List of actions to address your most pressing challenges along with a timeline to implement them

    Materials: Agile Readiness Assessment Consolidated Results Tool, Whiteboard and markers

    Participants: Survey participants, Other interested parties

    This exercise will create a plan for addressing your most pressing Agile-related challenges.

    • As a team, agree on which survey challenges are most important to address (typically the most red in the heatmap).
    • Brainstorm potential solutions/actions to address these challenges.
    • Assign solutions/actions to individuals and set a timeline for completion.
    Challenge Proposed Solution Owner Timeline
    Enrichment
    lack of a CoE
    Establish a service-oriented Agile Center of Excellence (CoE) staffed with experienced Agile practitioners who can directly help new-to-Agile teams be successful. Bill W. 6 Months
    Tool Chain
    (lack of Agile tools)
    Select a standard Agile work management tool (e.g. Jira, Rally, ADO) that will be used by all Agile teams. Cindy K. 2 Months

    Related Info-Tech Research

    Sample of an Info-Tech blueprint. Modernize Your SDLC
    • Strategically adopt today’s SDLC good practices to streamline value delivery.
    Sample of an Info-Tech blueprint. Implement Agile Practices That Work
    • Guide your organization through its Agile transformation journey.
    Sample of an Info-Tech blueprint. Implement DevOps Practices That Work
    • Streamline business value delivery through the strategic adoption of DevOps practices.
    Sample of an Info-Tech blueprint. Mentoring for Agile Teams
    • Leverage an experience Agile Mentor to give your in-flight Agile project a helping hand.

    Research Contributors and Experts

    • Columbus Brown, Senior Principal – Practice Lead – Business Alignment, Daugherty Business Solutions
    • Saeed Khan, Founder, Transformation Labs
    • Brenda Peshak, Product Owner/Scrum Master/Program Manager, John Deere/Source Allies/Widget Industries LLC
    • Vincent Mirabelli, Principal, Global Project Synergy Group
    • Len O'Neill, Sr. Vice President and Chief Information Officer, The Suddath Companies
    • Shameka A. Jones, MPM, CSM, Lead Business Management Consultant, Mainspring Business Group, LLC
    • Ryland Leyton, Lead Business Analyst, Aptos Retail
    • Ashish Nangia, Lead Business System Analyst, Ashley Furniture Industries
    • Barbara Carkenord, CBAP, IIBA-AAC, PMI-PBA, PMP, SAFe POPM, President, Carkenord Consulting
    • Danelkis Serra, CBAP, Chapter Operations Manager, Regions & Chapters, IIBA (International Institute of Business Analysis)
    • Lorrie Staples-Ellis, CyberSecurity Integration Strategist, Wealth Management, Truist Bank
    • Ginger Sundberg, Independent Consultant
    • Kham Raven, Project Manager, Fraud Strategy & Execution, Truist Bank
    • Sarah Vollett, PMP, Business Analyst, Operations, College of Physicians and Surgeons of British Columbia
    • Nicole J Coyle, ICP-ACC, CEAC, SPC4, SASM, POPM, CSM, ECM, CCMP, CAPM, Team Agile Coach and Team Facilitator, HCQIS Foundational Components
    • Joe Glower, IT Director, Jet Support Services, Inc. (JSSI)
    • Harsh Daharwal, Senior Director, Application Delivery, J.R. Simplot
    • Hans Eckman, Principal Research Director, Info-Tech Research Group
    • Valence Howden, Principal Research Director, Info-Tech Research Group

    Design and Build a User-Facing Service Catalog

    • Buy Link or Shortcode: {j2store}395|cart{/j2store}
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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

    4. Attend or lead the project kick-off meeting
    5. Create checkpoints to regularly touch base with the project team
    6. Service catalog launch

    7. 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…)

    3. Address feedback
    4. 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.)

    5. Conduct training sessions
    6. 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.

    3. Number of inquiry calls to the service desk
    4. 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.

    5. Customer satisfaction – specific questions
    6. 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?

    7. Number of non-standard requests
    8. 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

    5. 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.
    6. 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.

    The First 100 Days as CISO

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    • member rating average dollars saved: 50 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: Security Strategy & Budgeting
    • Parent Category Link: /security-strategy-and-budgeting
    • Make a good first impression at your new job.
    • Obtain guidance on how you should approach the first 100 days.
    • Assess the current state of the security program and recommend areas of improvement and possible solutions.
    • Develop a high-level security strategy in three months.

    Our Advice

    Critical Insight

    • Every CISO needs to follow Info-Tech’s five-step approach to truly succeed in their new position. The meaning and expectations of a CISO role will differ from organization to organization and person to person, however, the approach to the new position will be relatively the same.
    • Eighty percent of your time will be spent listening. The first 100 days of the CISO role is an information gathering exercise that will involve several conversations with different stakeholders and business divisions. Leverage this collaborative time to understand the business, its internal and external operations, and its people. Unequivocally, active listening will build company trust and help you to build an information security vision that reflects that of the business strategy.
    • Start “working” before you actually start the job. This involves finding out as much information about the company before officially being an employee. Investigate the company website and leverage available organizational documents and initial discussions to better understand your employer’s leadership, company culture ,and business model.

    Impact and Result

    • Hit the ground running with Info-Tech’s ready-made agenda vetted by CISO professionals to impress your colleagues and superiors.
    • Gather details needed to understand the organization (i.e. people, process, technology) and determine the current state of the security program.
    • Track and assess high-level security gaps using Info-Tech’s diagnostic tools and compare yourself to your industry’s vertical using benchmarking data.
    • Deliver an executive presentation that shows key findings obtained from your security evaluation.

    The First 100 Days as CISO Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why the first 100 days of being a CISO is a crucial time to be strategic. Review Info-Tech’s methodology and discover our five-step approach to CISO success.

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

    1. Prepare

    Review previous communications to prepare for your first day.

    • CISO Diary
    • Introduction Sheet

    2. Build relationships

    Understand how the business operates and develop meaningful relationships with your sphere of influence.

    3. Inventory components of the business

    Inventory company assets to know what to protect.

    4. Assess security posture

    Evaluate the security posture of the organization by leveraging Info-Tech’s IT Security diagnostic program.

    • Diagnostic Benchmarks: Security Governance & Management Scorecard
    • Diagnostic Benchmarks: Security Business Satisfaction Report

    5. Deliver plan

    Communicate your security vision to business stakeholders.

    • The First 100 Days as CISO Executive Presentation Template
    • The First 100 Days as CISO Executive Presentation Example
    [infographic]

    Implement the Next-Generation IT Operating Model

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    • Parent Category Name: IT Strategy
    • Parent Category Link: /it-strategy

    IT is being challenged to change how it operates to better support evolving organizations by:

    • Considering the needs of customers, end users, and organizational stakeholders simultaneously.
    • Leveraging resources strategically to support the various IT and digital services being offered.
    • Creating a digital services enablement office that can design, monitor, and continuously enhance services.

    Our Advice

    Critical Insight

    • The role of IT is changing, and with that, how IT needs to operate to deliver value is also changing. Don’t get left behind with an irrelevant IT operating model.
    • Elevate your reputation as a leader beyond the CIO role. Mature your organization’s digital services by considering the customer experience first.
    • As recessions, disasters, and pandemics hit, don’t adopt old ways of operating with 2008 centralized models. Embrace a hybrid IT where value sets your organization apart.

    Impact and Result

    • Embrace the Exponential IT Operating Model so you can:
      • Say “yes” to stakeholders trying to provide a better experience for customers and consumers.
      • Leverage data more effectively across your organization.
      • Consider how to integrate and deliver services using resources effectively and strategically.

    Implement the Next-Generation IT Operating Model Research & Tools

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

    1. Implement the Next-Generation IT Operating Model Deck – The next generation operating model for organizations embracing exponential IT.

    This research piece is for any IT leaders looking to support the organization in its post-transformation state by focusing on the customer experience when operating. CIOs struggling with outdated IT operating models can demonstrate true partnership with this digital services next-generation IT operating model.

    • Implement the Next-Generation IT Operating Model Storyboard

    2. Exponential IT Operating Model Readiness Assessment – A tool to assess your organization’s readiness to adopt this next generation of IT operating models.

    Use this tool to determine whether your organization has the fundamental components necessary to support the adoption of an Exponential IT operating model.

    • Exponential IT Operating Model Readiness Assessment

    3. Career Vision Roadmap Tool – A template to create a simple visual roadmap of your desired career progression from CIO to chief digital services officer (CDSO).

    Use this template to create a roadmap on how to transform your career from CIO to CDSO leveraging key strengths and relationships. Focus on opportunities to demonstrate IT’s maturity and the customer experience at the forefront of your decisions.

    • Career Vision Roadmap
    [infographic]

    Further reading

    Implement the Next-Generation IT Operating Model

    The operating model for organizations embracing Exponential IT and transforming into technology-first enterprises.

    Analyst Perspective

    Be the organization that can thrive in an exponential IT world.

    A picture of Carlene McCubbin A picture of Brittany Lutes

    Carlene McCubbin
    Research Practice Lead
    CIO Organizational
    Transformation Practice
    Info-Tech Research Group

    Brittany Lutes
    Research Director,
    CIO Organization Transformation Practice
    Info-Tech Research Group

    IT leaders are increasingly expected to be responsible for understanding and delivering high-value customer experiences. This evolution depends on the distribution and oversight of IT capabilities that are embedded throughout the organizational structure.

    Defining digital strategic objectives, establishing governance frameworks for an autonomous culture, and enabling the organization to act on insightful data are all impossible without a new way of operating that involves the oversight and accountability of advancing IT roles. Through exponential change, functional groups can lose clarity regarding their responsibilities, creating a sense of ambiguity and disorder.

    But adopting a new way of working that supports an exponential IT organization does not have to be difficult. Leveraging Info-Tech Research Group's next-generation operating model, you can clearly demonstrate how the organization will collaborate to deliver on the various digital and IT services. This is no longer just an IT operating model, but a technology-first enterprise model.

    Included in this blueprint:

    Exponential IT Model

    Defines how the Exponential IT model operates and delivers value to the organization.
    This is done by exploring:

    • Exponential IT cultural norms and behaviors
    • Opportunities and risks of the Exponential IT model
    • A breakdown of the embedded, integrated, and centralized aspects of the model
    • Operating model value stream stages
    • An assessment on whether the Exponential IT operating model is right for your organization

    Changing Role of IT Leader

    Defines how chief information officers (CIOs) can operate or elevate their role in this changing operating model.

    • Identifies why the C-suite is changing – again
    • How IT leaders should consider where they will add value in the new operating model
    • Outlines examples of future organization-wide structures and where IT roles are positioned
    • Supports IT leaders in developing themselves to operate in this structure

    Executive Summary

    Your Challenge

    IT is challenged to change how it operates to better support evolving organizations. IT must:

    • Consider the needs of customers, end users, and organization stakeholders simultaneously.
    • Leverage resources strategically to support the various IT and digital services being offered.
    • Create a digital services enablement office to design, monitor, and enhance services continuously.

    While many organizations have projects that support a digital strategy, few have an operating model that supports this digital services strategy.

    Common Obstacles

    Organizations struggle to support the definition and ongoing maintenance of services because:

    • The organization's Digital and IT services offerings are not clear.
    • The functional team accountable to deliver on each IT or Digital service is ambiguous.
    • There are insufficient resources to support all the IT and Digital services being offered.
    • C-suite leaders required to support the services are missing or in the wrong role to effectively lead.
    • Technology has not been standardized to ensure consistency and effectiveness.

    Info-Tech's Approach

    Embrace the IT operating model that focuses on the enablement and delivery of Digital and IT services by:

    • Having technology stakeholders actively collaborate to decide on priorities and deliver on objectives.
    • Leveraging data more effectively across the organization to understand and meet user needs.
    • Ensuring technology architecture and security standards are well-established and followed by all throughout the organization.
    • Allocating dedicated and skilled resources to ensure services can be continuously delivered.

    Info-Tech Insight

    The first IT operating model where customer engagement with IT and Digital Services is at the forefront.

    What is an operating model?

    An IT operating model is a visual representation of the way your IT organization will function using a clear and coherent blueprint. This visualization demonstrates how capabilities are organized and aligned to deliver on the business mission and strategic and technological objectives.

    The should visualize the optimization and alignment of the IT organization to deliver the capabilities required to achieve business goals. Additionally, it should demonstrate the workflow so key stakeholders can understand where inputs flow in and outputs flow out of the IT organization. Investing time in the front-end to get the operating model right is critical. This will give you a framework to rationalize future organizational changes, allowing you to be more iterative and your model to change as the business changes.

    An image of a sample Operating Model


    From computerization to digitization to the new frontier in autonomization, IT has progressively matured, enabling it to actively lead this next stage of business transformation.

    EXPONENTIAL RISK
    Autonomous processes will integrate with human-led processes, creating risks to business continuity, information security, and quality of delivery. Supplier power will exacerbate business risks.

    EXPONENTIAL REWARD
    The efficiency gains and new value chains created through artificial intelligence (AI), robotics, and additive manufacturing will be very significant. Most of this value will be realized through the augmentation of human labor.

    EXPONENTIAL DEMAND
    Autonomous solutions for productivity and back-office applications will eventually become commoditized and provided by a handful of large vendors. There will, however, be a proliferation of in-house algorithms and workflows to autonomize the middle and front office, offered by a busy landscape of industry-centric capability vendors.

    EXPONENTIAL IT

    Exponential IT involves IT leading the cognitive re-engineering of the organization with evolved practices for:

    • IT governance
    • Asset management
    • Vendor management
    • Data management
    • Business continuity management
    • Information security management

    To learn more about IT's journey into autonomization, check out Info-Tech Research Group's Adopt an Exponential IT Mindset blueprint.

    The IT operating model must evolve to respond to exponential change

    • Ensuring customers are not an afterthought to IT leaders. Customers inform how and where IT leaders invest resources to realize organizational objectives.
    • Adopting a formalized approach to service definition and delivery to eliminate silos.
    • Leveraging data throughout the organization to better inform and enable the various digital services in meeting customer demands.
    • Responding to employee demands for development and training opportunities by applying skills in new settings.
    • Having cross-collaboration mechanisms built into the ways of operating to reduce silos across the organization.
    • Enabling services through a strong set of governance and risk mandates and practices.
    • Eliminating the need for IT capabilities to only be within an IT department.

    IT can no longer be just a service provider:

    78% of IT leaders with established digital strategies and 45% of IT leaders with emerging digital strategies are driven by customer experiences.
    Source: Foundry "Digital Business Study,"2023

    40% - The number of CIOs that are responsible for creating new products or services to support revenue generation.
    Source: Foundry, "The State of the CIO," 2023

    This change requires a breakdown of traditional IT-business divisions

    CIOs must recognize that separating IT from the business is restrictive

    • Many organizations have recently completed or are in the process of completing a digital transformation focused on enhanced employee and customer experiences.
    • Post-transformation organizations must change how they operate to continue to deliver on those enhanced experiences, especially for the customer.
    • There must no longer be a wall between IT and the business, but a unified organization offering digital services that include IT components. Already, 81% of work is being performed across the functional boundaries created in an organization (Deloitte, 2023).
    • Effectively designing, delivering, and maintaining these services depends on a Digital Services functional layer, expanding IT's involvement into how the business delivers worthwhile experiences to customers.
    • This Digital Services functional layer will consider whether the new services are better owned by the IT group or another area of the organization.
    • CIOs need to be prepared to adopt a new way of operating or be left to manage a smaller subset of IT functions.

    "I think we've done the IT industry a disservice by constantly referring to IT and the business, artificially creating this wedge."
    – David Vidoni, VP of IT at Pegasystems
    Source: Dan Roberts, CIO, 2023

    Four trends driving an Exponential IT organization include:

    Emerging Technologies

    • 67% of respondents to KPMG's 2022 Global Tech Survey indicated they intend to embrace emerging platforms by the end of 2024.(1)
    • The technology landscape is constantly shifting with artificial intelligence (AI), quantum computing, 5G cellular networks, and next-generation robotics. Each of these technologies requires new capabilities and a new way in which those capabilities are organized.

    Enhanced Customer Experiences

    • 24% of CIOs have been tasked by their CEO to increase the customer experience.(3)
    • Organizations realize that to gain and retain customers, it has become necessary to consistently evaluate service offerings and identify opportunities for enhancement or new services.

    Digital Trust

    • 1/3 of CISOs plan to increase their GRC focus during the next year and 36% have already begun to implement Zero Trust components.(2)
    • Risk and security capabilities mature focusing on defined enterprise accountability, consideration of ethics and inclusivity and proactive security controls.

    Embedded Technology & Skills

    • Spending on embedded software is expected to increase to $21.5 billion by 2027.(4)
    • The technology strategy no longer resides solely within IT. The organization must take ownership of this strategy while they define their digital strategies. Technology services are also embedded.

    (1) "Global Tech Survey," KPMG, 2022
    (2) "Global Digital Trust Insights Report," PwC, 2023
    (3) "State of IT Report," Foundry, 2023
    (4) "Global surge in embedded software demand; here is why," DAC Digital, 2023

    Application of the Four Key Trends on your Exponential IT operating model:

    Respond to Emerging Technology In response to changing customer demands, organizations need to actively seek, assess, and integrate emerging technology offerings easily and effectively. By governing data at an enterprise level and implementing the necessary guardrails in the form of architecture and security standards at the technology layer, it becomes easier to adopt new technologies such as artificial intelligence (AI). This should be tied to any mandated objectives.
    Build Digital Trust Capabilities Finding and hiring the right security professionals has long been a challenge for organizations. In the Exponential IT model, focus on security oversight increases and fewer operational resources are required. The model sees governing IT security processes and vendor delivery as priorities to enable the right technology without exposing the organization to undue risk. There should be more security-related capabilities in your Exponential IT model.
    Elevate the Customer Experience Evolving the organization's digital offering requires understanding of and active response to the changing demands of customers. This is accomplished by leveraging information from organization-wide data sources and the modular components of the organization's current digital offerings. The components can be reconfigured (or new ones added) to create digital services for the customer.
    Formalize Embedded Business Technology & Roles Technology is actively included in the organization's business (digital) strategy. This ensures that technology remains an embedded component of how the organization competes in the market, supplies invaluable services, and delivers on strategic objectives. The separation of IT from the organization becomes redundant.
    Visualize your IT Operating Model.

    Adopting an Exponential IT operating model is typically influenced by resonating with the following drivers:

    Culture

    IT Strategy & Objectives

    Organization Operating Model

    Organization Size & Structure

    Perception of IT

    Risk Appetite

    A cooperative and innovative culture where the organization does not feel constrained by current processes. Establishing a growth mindset across all the organization's groups is reflected by the trust service owners receive.

    Focused on delivering the best customer experience. The roadmap would include ample opportunities to better support the customer in obtaining or exceeding the degree of value they receive from the organization.

    Empowering service owners across the organization to be accountable for the delivery and value of their services. Lots of collaboration among stakeholders who know what services are offered and how those services leverage technology.

    More appropriate for larger organizations due to the resources required to design and enable successful services. IT resources would also be pooled by skills.

    IT is not a service provider but an equal that enables the organization's success. Without IT involvement, digital services may be omitted and opportunities to enhance the customer experience would be missed.

    While innovation and new service offerings are critical to success, there are functional groups that remain focused on defining the level of risk tolerance that supports the appropriate risk appetite to consider new service offerings.

    Section 1: The Next-Generation Operating Model

    The Technology Value Trinity

    Delivery of Business Value & Strategic Needs

    I&T OPERATING MODEL

    DIGITAL & TECHNOLOGY STRATEGY

    I&T GOVERNANCE

    The model for how IT is organized to deliver on business needs and strategies.

    The identification of objectives and initiatives necessary to achieve business goals.

    Ensures the organization and its customers extract maximum value from the use of information and technology.

    All three elements of the Technology Value Trinity work together to deliver business value and achieve strategic needs. As one changes, the others must change as well.
    How do these three elements relate?

    • I&T Operating Model aligns resources, processes, measures, stakeholders, value streams, and decision rights to enable the delivery of your strategy and priorities. This is done by strategically structuring IT capabilities in a way that enables the organization's vision and considers the context in which the model will operate.
    • Digital and IT Strategy tells you what you must achieve to be successful. For an Exponential IT organization, customer demands and digital service offerings would drive strategic decisions.
    • I&T Governance is the confirmation of IT's goals and strategy, which ensures the alignment of IT and business strategy. This is the mechanism by which you continuously prioritize work so that what is delivered aligns with the strategy.

    Strategy, operating models, and governance are too often considered separate practices – strategies are defined without clarity on how to support. A significant change to your strategy necessitates a change to your operating model, which in turn necessitates a change to your governance and organizational structure.

    The Exponential IT operating model delivers value across seven components

    Exponential IT

    Capabilities

    Products, Services and Technology

    Performance Measures

    Stakeholder Engagement & Collaboration

    Decision Rights & Authority

    Value Streams

    Sourcing

    IT capabilities in the Exponential IT model are spread across the organization. The result removes the separation between IT and the organization. Instead, the organization takes accountability for ensuring technology capabilities are delivered.

    Digital service offerings dominate this model, focusing on providing better experiences for customers. Some technology platforms are specific to a service such as access management, while others span service offerings such as architecture or security.

    This model's success is measured by the overall ability to satisfy the customer experience through designing and delivering the right digital service offerings. Service owners are responsible for continuously monitoring and advancing the delivery of the service.

    The end-customer is the main stakeholder for this operating model, where understanding their needs and demands informs the design, maintenance, and improvement of all services. There is no longer IT vs. the business but an organizational perspective of services.

    This model's decision-making spans the organization. The service owners of digital offerings have authority and autonomy deciding which services to design, how they should be integrated with other services, and how those services will continually deliver value to customers.

    Exponential IT's five core value streams are:

    1. Identifying and prioritizing customer needs
    2. Designing IT and Digital Services
    3. Enabling IT & Digital Service success
    4. Assigning skilled employees to deliver services
    5. Owning & managing services

    Internal resource pools might need to be supplemented with contract resources when demand exceeds capacity, requiring a strong partnership with the Vendor Management Team. Service owners will also need to engage and manage the performance of their vendor solution partners.

    Organizations adopting the Exponential IT Model will experience new norms and behaviors

    Customer-Centric
    Dedicated to the customer experience and making sure that the end customer is considered first and foremost.

    "Yes" Approach
    The organization can say yes to emerging technology and customer desires because it has organized itself to be agile in its digital service offerings.

    Digital Service Ownership
    Digital service offerings are owned and managed across the organization ensuring the continuous delivery of value to customers.

    Employee Development
    Resources are organized into pods based on specific skills or functions increasing the likelihood of adopting new skills.

    Autonomization
    Centralized and accessible data provides service owners autonomy when making informed decisions that support enhanced customer experiences.

    Exponential IT is an embedded model approach

    Info-Tech has identified seven common IT operating model archetypes. Each model represents a different approach to who delivers technology services and how. Each model is designed to drive different outcomes, as the way your organization is structured will dictate the way it behaves. The Exponential IT model is an emerging archetype which capitalizes on embedded delivery.

    An image of the exponential IT embedded model approach.

    Centralized

    Shifted

    Embedded

    Owned and operated by leadership within IT. IT takes full responsibility of the functional areas and maintains control over the outcomes.

    Can be owned/operated by a variety of leadership roles throughout the organization. This can shift from IT ownership to other organizational leadership. Decisions about ownership are often made to enable quick response or mitigate risks.

    Owned/operated by leadership outside of traditional IT. Another area of the organization has taken authoritative power over the outcome of this functional area for a quicker response.

    Even as an embedded IT operating model, shifted and centralized IT functions as support

    1. Embedded functions required for scaled autonomation
      Definition and oversight of the organization's strategic direction demonstrated through a customer-first culture, data insights, and a well-defined risk appetite.
    2. Integrated design and optimization of the digital service offering
      Actively considers the customer experience and designs the appropriate services to be delivered. Considers all aspects in the design and delivery of services by exploring opportunities to integrate components to enhance customer experiences or architecting new service offerings to eliminate gaps.
    3. Centralized standards for IT technology, security & resources
      Technology functions continue to deliver exceptional services to the enterprise including clear standards for technology and solution architecture, application of security requirements, and resources to enable various service offerings.

    Opportunities and risks of the Exponential IT model

    Opportunities

    Risks
    • Focused on the end-customer experience and how to ensure that customer remains satisfied and loyal to the organization.
    • The capability center allows resources to be used strategically according to where they would most improve the customer experience.
    • Services are owned by the most appropriate areas within the organization—sometimes IT and other times not. In either case, services should always possess technological knowledge.
    • The organization's transformation strategy is not just driving IT's strategy but how IT should be organized and operating. This eliminates disconnect from larger strategic objectives.
    • Data intelligence and customer insights enable the shifted and centralized areas of the operating model to deliver effective and valuable experiences for all stakeholders.
    • Requires a high degree of maturity to support a variety of individuals in owning IT and digital capabilities.
    • Organizational buy-in to this operating model archetype is a must. IT cannot select this operating model without that support.
    • Processes around how all IT and Digital Services consider security and technology standards need to be well-documented and enforceable.
    • Depending on which leaders oversee the three areas of the model (embedded, shifted, or centralized), power struggles could occur which negatively impact services.
    • This model will demand governance, risk, and culture to be at the forefront of how it operates. If an accountability framework does not exist, expect this model to fail.

    The Exponential IT operating model blends embedded, shifted and centralized delivery to balance agility & risk

    An image of the Exponential IT Operating Model.

    The Exponential IT model commands a new placement and significance of IT capabilities

    Using capabilities for the operating model

    • Capabilities are focused on the entire system that would be in place to satisfy a particular need. This not only includes the people who are able to complete a specific task, but the technology, processes, and resources required to deliver.
    • Focusing on capabilities rather than the individuals in organizational redesign enables a more objective and holistic view of what your organization is striving toward.
    • Capabilities deliver on specific need(s) and how they are organized changes the way those needs are delivered.
    The Exponential IT principles as an image: Strategy and Governance, Financial Management, Service Planning and Architecture, People and Resources, Security and Risk, Applications, Data and Analytics, Infrastructure and Operations, and PPM and Projects.

    1. Embedded functions required for autonomization

    Overview of the function:

    • Focuses on a single strategy and roadmap for the organization that actively includes technology.
    • Governance, risk, compliance, and general oversight are defined and embedded throughout the organization.
    • Ensures that quality data is being generated to help inform the defined digital service offering.
    • Readies the organization to adopt emerging technology quickly and with minimal disruption to other digital service offerings.
    • A team of technical experts that decides what information should exist for operational efficiency or service innovation.

    Embedded functions required for autonomization

    2. Integrated design and optimization of the digital service offering

    Overview of the function:

    • Analyzes and responds to insights about the customer experience.
    • Maintains the portfolio of the organization's digital service offerings.
    • Considers what is necessary to operate efficiently as an organization while simultaneously exploring emerging technology to optimize new or existing digital services.
    • Requires the expertise and involvement of both business-minded and technology-skilled resources.
    • The differentiating factor from other IT operating models is how it holistically considers all the components throughout the organization and how they are connected.

    Integrated design and optimization of the digital service offering

    3. Centralized standards for IT technology, security & resources

    Overview of the function:

    • Compared with other IT operating model archetypes, the Exponential IT model has fewer capabilities that are centralized within the technology function of an organization.
    • Architecture and standards are the foundation of successful embedded delivery, ensuring reuse, improved integration, and a unified experience. This includes technology, risk, data, AI and security architecture, models, and standards.
    • Employee resources are also organized in pods to be leveraged based on greatest need and skills availability.
    • This lets the organization be more agile when innovating and implementing new digital service offerings.

    Centralized standards for IT technology, security & resources

    Exponential IT explores new value stream stages

    Customer Perspective

    The organization is continually anticipating their wants and needs and establishing mechanisms to vocalize those needs.

    Customer receives the right IT and digital services to respond to their needs.

    The service is easy to use and continuously responds to wants and needs.

    The service is meeting expectations or exceeding them.

    There is a dedicated service owner who can hear demands and feedback, then action desirable outcomes.

    Value Stream Stages

    An image of the Value Stream

    Organizational Perspective

    Expected Outcome

    Customers' wants and needs are understood and at times anticipated before the customer requests them.

    Assess needs to determine if service is already offered or needs to be created. Design services that will enhance the customer experience.

    Look for opportunities to integrate processes and resources to increase the performance of IT and Digital Services.

    Ensure that the right employees with the right skills are working to develop or enhance service offering.

    The service owner manages the ongoing lifecycle of the service and establishes a roadmap on how value will continue to be delivered.

    Critical Processes

    • Customer experience
    • Research and innovation
    • Stakeholder management
    • Research and innovation
    • Service design & portfolio management
    • Performance management
    • Continuous improvement
    • Integration planning
    • Service management
    • Resource planning and allocation
    • Service strategy & roadmap
    • Service governance
    • Service performance management

    Metrics

    • Customer satisfaction score
    • Service-to-need alignment
    • Gaps in service portfolio
    • Speed to design services
    • Service performance
    • Service adoption
    • Time to resolve customer demand
    • Frequency by which service requires enhancements
    • Service satisfaction
    • Alignment of service strategy to organization strategy

    1.1 Assess if the Exponential IT operating model is right for your organization

    1 hour

    1. Begin by downloading the Exponential IT Operating Model Assessment.
    2. Review the questions within each of the operating model components. For each question, use the drop-down menu to determine your level of agreement.
    3. The more your organization agrees with the statements, the more likely your organization is prepared to implement an Exponential IT operating model.
    4. The less your organization agrees with the statements, the more likely you should adopt a different IT operating model.
    5. For support implementing the Exponential IT or another IT operating model, explore the Visualize Your IT Operating Model blueprint (coming soon).

    Input

    • Desire to change the organization's IT & Digital operating model

    Output

    • Desire to implement the IT & Digital Service Enablement operating model

    Materials

    • Exponential IT Operating Model Assessment

    Participants

    • Executive IT leadership
    • Business leadership

    Explore other Info-Tech research to support your organization transformation initiatives

    Visualize the IT Operating Model blueprint (coming soon)

    Visualize the IT Operating Model blueprint (coming soon)

    Redesign Your IT Organizational Structure

    Redesign Your IT Organizational Structure

    Section 2: Elevating the CIO Role

    The next generation of IT C-suite roles are here

    As the operating model changes and becomes increasingly embedded into the organization's delivery of IT and Digital Services, new C-suite roles are being defined

    • One of the most critical roles being defined in this change is the Chief Digital Services Officer (CDSO) who focuses on all components of the digital experience from the lens of the customer.
    • There are two directions from which the CDSO role is typically approached as it gains popularity:
      • CIOs evolve beyond just information and technology—focusing on how IT & Digital Services enhance the customer experience
      • Business leaders who have technical know-how increase their involvement and responsibility over IT related functions
    • IT leaders need to consider where they would rather sit: focused only on technology and remaining a service provider to the organization, or embedding technology into the services, products, and organization in general?

    60%

    The number of APAC CIOs who can anticipate their job to be challenged by their peers within the organization.

    Source: Singh, Yashvendra, CIO, 2023.

    Info-Tech Insight

    This is not about making the CIO report to someone else but allowing the CIO to elevate their role into that of a CDSO.

    Increasing IT leadership's span of control throughout the organization

    As maturity increases so does span of control, ownership & executive influence

    Organizations hoping to fully adopt the Exponential IT operating model require a shift in leadership expectations. Notably, these leaders will have oversight and accountability for functions beyond the traditional IT group.

    As the organization matures its governance, security, and data management practices, increasing how it delivers high-impact experiences to customers, it would have one leader who owns all the components to ensure clear alignment with goals and business strategy.

    An image of a graph where the X axis is labeled Span of Control & Influence, and the Y axis is Organization Maturity.

    Emerging Exponential IT organizations will have distributed authority

    • Organizations beginning their transition toward an exponential model often continue to have distributed leaders providing oversight of distinct functional areas.
    • Their spans of control are smaller, but very clearly defined, eliminating confusion through a transparent accountability framework.
    • Each leader strives toward optimization and efficiency regarding IT capabilities, for which they are responsible.
    1. Distributed Leadership
      Embedded functions required for scaled autonomation
      Distributed leaders identify the ways technology will enable them to advance enterprise objectives while maintaining autonomy over their own functions. They may oversee technology.
    2. Experience Officer
      Integrated design and optimization of the digital service offering
      An Experience Officer will help consider the insights gained from enterprise data and make informed decisions around enterprise service offerings. They actively explore new ways to deliver high-value experiences.
    3. Chief Technology Officer (CTO)
      Centralized standards for IT technology, security & resources
      A CTO will continue to oversee the core technology, including infrastructure and service management functions.

    Established organizations will be driven by a digital transformation journey

    • Organizations that have begun to deliver on their transformation journey will typically see two distinct C-suite leaders emerge—the CIO and the CDO.
    • The Chief Digital Officer (CDO) often explores ways to optimize the integration and management of data to enable insightful decision making from the organization.
    • The Chief Information Officer (CIO), however, considers mechanisms to standardize how new technologies can be integrated with the architecture.
    • While both leaders have distinct responsibilities, their roles intersect at the customer experience.

    An image of the digital transformation journey

    Advanced organizations will be managed by a single emerging role

    • A single leader will oversee all the functional areas where value is delivered and enabled by IT capabilities.
    • Through a large span of control, this leader can holistically consider opportunities to optimize the customer experience and ensure recommendations are actioned to deliver on that enhanced experience.
    • This leader's span of control will require a strong understanding of both strategic and operational functions to authoritatively oversee all aspects for which they are responsible.

    CDSO – Chief Digital Service Officer

    1. Embedded functions required for scaled autonomation
      The CDSO will set, oversee, and manage the delivery of an enterprise's digital strategy, ensuring accountability through good governance and data practices.
    2. Integrated design and optimization of the digital service offering
      They ensure that the enterprise holistically considers the various services that could be offered to exceed customer expectations through high-impact experiences.
    3. Centralized standards for IT technology, security & resources
      They also ensure stable and secure architecture standards to enable consistency across the organization and a seamless ability to integrate new technology to support service offerings.

    Evolution of the IT C-suite now includes the CDSO

    Chief Digital Service Officer

    Chief Information Officer

    Chief Digital Officer

    Chief Technology Officer

    Chief Experience Officer

    Main Stakeholder(s):

    • Board
    • CEO/Executive Leadership
    • Organization Leadership
    • Service Owners
    • Customers & End Users

    Main Responsibilities:

    • Oversight of the entire portfolio of IT and Digital Services
    • Use of information & technology to meet organizational objectives

    *Some leaders in this role are being called Chief Digital Information Officer.

    Main Stakeholder(s):

    • Board
    • CEO/Executive Leadership
    • Organization Leadership
    • End Users

    Main Responsibilities:

    • Oversight of the information and technology required to support and enable the organization

    Main Stakeholder(s):

    • Board
    • CEO/Executive Leadership
    • Customers & End Users

    Main Responsibilities:

    • Oversight on transforming how the organization uses technology, often considering customer perspectives

    Main Stakeholder(s):

    • Organization Leadership
    • Customers & End Users

    Main Responsibilities:

    • Collaborating with the CIO, the CTO leads the organization's ability to integrate and adopt necessary technology products and services

    Main Stakeholder(s):

    • Customers & End Users

    Main Responsibilities:

    • Establish the customer experience strategy
    • Create policies to support that strategy
    • Collaborate with other organizational leaders to integrate any activities around the customer experience

    Examples of what the emerging organizational structure can look like

    An image of three hierarchies, showing what the emerging organizational structure can look like.

    This is more than a new title for IT leaders

    It's about establishing a business first perspective

    • IT leaders exploring this new way of operating are not just adopting the new title of CDSO or CDIO.
    • These leaders must change how information, technology, and digital experiences are consumed across the various stakeholders – especially the end customer.
    • IT leaders who pursue this new IT operating model choose to be more than order takers for an organization.
    • They are:
      • Partners in defining the organization's digital service offerings
      • Recognizing the benefits of distributing decision-making authority for IT-related aspects to others throughout the organization
      • Prioritizing capabilities like portfolio management, architecture, vendor management, relationship management, cloud and user experience

    "'For me, the IT portfolio for the next few years and the IT architecture have taken the place that IT strategy used to have,' he adds. This view doesn't position IT outside of the organization, but rather gives it central importance in the company."
    – Bernd Rattey, Group CIO and CDO of Deutsche Bahn (DB), qtd. by Jens Dose, CIO, 2023

    1.2 Plan your career move to CDSO

    1-3 hours

    • Create a roadmap on how to move from your current role to CDSO by identifying current strengths and opportunities to improve.
    • Download the Career Vision Roadmap Tool from the website. An example of this is on the next slide.
    • Document the tagline. This is your overarching career focus and goal – what is your passion? Think beyond titles to what you want to be doing, the atmosphere you want to be in, and what you want to add value to.
    • Document the current role: what are the strengths, achievements and opportunities?
    • Consider the CDSO role: how will you build stronger relationships and competencies to elevate your profile within the organization? What is an example of what someone would display in this role?
    • Define specific roles or stakeholders that you should develop a stronger relationship with.

    Download the Career Vision Roadmap Tool

    Input

    • Desire to implement the IT & Digital Service Enablement Operating Model

    Output

    • Roadmap to elevate from a CIO to a CDSO

    Materials

    • Career Vision Roadmap
    • IT & Digital Services Enablement operating model archetype
    • CDSO job profile

    Participants

    • CIO (or any other role aspiring to eventually become a CDSO)
    • Individual activity

    Career Vision Roadmap:
    Executive Leader
    Akbar K.

    Sample

    To provide customers with an exceptional experience by ensuring all IT and Digital Services consider and anticipate their needs or wants. Enable IT and Digital Services to be successful through clear leadership, strong collaboration, and continuous improvement or innovation.

    CIO

    1. Establish technology standards that enable the organization to consistently and securely integrate platforms or solutions.
    2. Lead the project team that defined and standardized the organization's reference architecture.
    3. Need to work on listening to a variety of stakeholder demands rather than only specific roles/titles.

    Transition

    • Strengths: Technology acumen, budget planning, allocating resources
    • Enhance: Stakeholder relationship management.
    • Work with current CDO to define and implement more digital transformation initiatives.

    CDSO

    • Being responsive to customer expectations and communicating clear and realistic timelines.
    • Establish trust among the organization that services will deliver expected value.
    • Empowering service owners to manage and oversee the delivery of their services.

    Network Opportunities

    • Connect with board members and understand each of their key areas of priority.
    • Begin to interact with end customers and define ways that will enhance their customer experience.
    • Chief Digital Officer

    Actions now in line with aspiration

    Appendix: Capabilities & Capability Model

    IT and digital capabilities

    Using capabilities for the operating model:

    • Capabilities are focused on the entire system that would be in place to satisfy a particular need. This not only includes people who have skills to complete a specific task, but also the technology, processes, and resources required to deliver.
    • Focusing on capabilities rather than the individuals in organizational redesign enables a more objective and holistic view of what your organization is striving toward.
    • Capabilities deliver on specific need(s) and how they are organized changes the way those need(s) are delivered.

    An image of the IT Management and Governance Framework.

    Strategic Direction

    • IT Governance
    • Strategic Planning
    • Digital Strategy
    • Performance Measurement
    • IT Management & Policies
    • Organizational Quality Management
    • R&D and Innovation
    • Stakeholder Management

    People & Resources

    • Strategic Communications
    • People Resource Management
    • Workforce Strategy & Planning
    • Organizational Change Enablement
    • Adoption & Training
    • Financial/Budget Management
    • Vendor Portfolio Management
    • Vendor Selection & Contract Management
    • Vendor Performance Management

    Architecture & Integration

    • Enterprise Architecture Delivery
    • Business Architecture Delivery
    • Solution Architecture Delivery
    • Technology Architecture
    • Data Architecture
    • Security Architecture
    • Process Integration
    • Integration Planning

    Service Planning

    • Service Governance
    • Service Strategy & Roadmap
    • Service Management
    • Service Governance
    • Service Performance Measurement
    • Service Design & Planning
    • Service Orchestration

    Security & Risk

    • Security Strategic Planning
    • Risk Management
    • External Compliance Management
    • Security Response & Recovery Management
    • Security Management
    • Controls & Internal Audit Planning
    • Security Defense Operations
    • Security Administration
    • Cybersecurity Threat Intelligence
    • Integrated Physical/IT Security
    • OT/IoT Security
    • Data Protection & Privacy

    Application Delivery

    • Application Lifecycle Management
    • Systems Integration Management
    • Application Development
    • User Experience
    • Quality Assurance & UAT
    • Application Maintenance
    • Low Code Development

    Project Portfolio Management

    • Demand Management
    • Requirement Analysis Management
    • Portfolio Management
    • Project Management

    Data & Business Intelligence (BI)

    • Reporting & Analytics
    • Data Management
    • Data Quality
    • Data Integration
    • Enterprise Content Management
    • Data Governance
    • Data Strategy
    • AI/ML Management

    Service Delivery

    • Operations Management
    • Service Desk Management
    • Incident Management
    • Problem Management
    • Service Enhancements
    • Operational Change Enablement
    • Release Management
    • Automation Management

    Infrastructure & Operations

    • Asset Management
    • Infrastructure Portfolio Strategic Planning
    • Availability & Capacity Management
    • Network & Infrastructure Management
    • Configuration Management
    • Cloud Orchestration
    An image of the summary slide for this blueprint, with the headings: Centralized; Shifted; and Embedded.

    Research Contributors and Experts

    Donna Bales
    Principal Research Director
    Info-Tech Research Group

    Scott Bickley
    Practice Lead – Vendor Management Practice
    Info-Tech Research Group

    Christine Coz
    Executive Counselor – Executive Services
    Info-Tech Research Group

    Valence Howden
    Principal Research Director
    Info-Tech Research Group

    Duraid Ibrahim
    Executive Counselor – Executive Services
    Info-Tech Research Group

    Chris Goodhue
    Managing Partner– Executive Services
    Info-Tech Research Group

    Carlene McCubbin
    Practice Lead – CIO Practice
    Info-Tech Research Group

    Mike Tweedie
    Practice Lead – CIO Practice
    Info-Tech Research Group

    Vicki van Alphen
    Executive Counselor – Executive Services
    Info-Tech Research Group

    *Plus an additional 5 industry experts who anonymously contributed to this research piece.

    Related Info-Tech Research

    Adopt an Exponential IT Mindset

    • To succeed in the coming business transformation, IT will have to adopt different priorities in its mission, governance, capabilities, and partnerships.
    • CIOs will have to provide exceptionally mature services while owning business targets.

    Become a Transformational CIO

    • Business transformations are happening, but CIOs are often involved only when it comes time to implement change. This makes it difficult for the CIO to be perceived as an organizational leader.
    • Elevate your stature as a business leader.
    • Create a high-powered IT organization that is focused on driving lasting change, improving client experiences, and encouraging collaboration across the entire enterprise.

    Define Your Digital Business Strategy

    • Design a strategy that applies innovation to your business model, streamline and transform processes, and make use of technologies to enhance interactions with customers and employees.
    • Pre-pandemic digital strategies have been primarily focused on automation. However, your post-pandemic digital strategy must focus on driving resilience for growth opportunities.

    Bibliography

    Bennet, Trevon. "What is a Chief Experience Officer (CXO)? And what do they do?" Indeed, 14 March 2023. https://www.indeed.com/career-advice/finding-a-job/what-is-chief-experience-officer#:~:text=A%20CXO%20plans%20strategies%20and,customer%20acquisition%20and%20retention%20strategies
    Bishop, Carrie. "Five years of Digital Services in San Francisco." Medium, 20 January 2022. https://medium.com/san-francisco-digital-services/five-years-of-digital-services-in-san-francisco-805a758c2b83
    DAC Digital and Chawla, Yash. "Global surge in embedded software demand; here is why." DAC Digital, 2023 <ttps://dac.digital/global-surge-in-embedded-software-demand-here-is-why/
    Deloitte. "If you want your digital transformation to succeed, align your operating model to your strategy." Harvard Business Review, 31 January 2020. https://hbr.org/sponsored/2020/01/if-you-want-your-digital-transformation-to-succeed-align-your-operating-model-to-your-strategy.
    Deloitte. "2023 Global Human Capital Trends Report." Deloitte, 2023. https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/human-capital/sea-cons-hc-trends-report-2023.pdf
    Dose, Jens. "Deutsche Bahn CIO on track to decentralize IT." CIO, 19 April 2023. https://www.cio.com/article/473071/deutsche-bahn-cio-on-track-to-decentralize-it.html
    Ehrlich, Oliver., Fanderl, Harald., Maldara, David., & Mittangunta, Divya. "How the operating model can unlock the power of customer experience." McKinsey, 28 June 2022. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/how-the-operating-model-can-unlock-the-full-power-of-customer-experience
    FCW. "Digital Government Summit Agenda." FCW. 2021. https://events-archive.fcw.com/events/2021/digital-government-summit/index.html
    Foundry. "State of the CIO." IDG, 25 January 2023. https://foundryco.com/tools-for-marketers/research-state-of-the-cio/
    Foundry. "Digital Business Study 2023: IT Leaders are future-proofing their business with digital strategies." IDG, 2023. https://foundryco.com/tools-for-marketers/research-digital-business/
    Indeed Editorial Team. "Centralized vs. Decentralized Structures: 7 Key Differences." Indeed, 10 March 2023. https://www.indeed.com/career-advice/career-development/centralized-vs-decentralized
    Indeed Editorial Team. "What is process integration?." Indeed, 14 November 2022. https://ca.indeed.com/career-advice/career-development/process-integration#:~:text=Process%20integration%2C%20or%20business%20process,it%20reach%20its%20primary%20objectives
    KPMG International. "Global Tech Report." KPMG, 2022.
    McHugh, Brian. "Service orchestration is reshaping IT—Here's what to know." Active Batch, 8 November 2022. https://www.advsyscon.com/blog/service-orchestration-what-is/
    Morris, Chris. "IDC FutureScape: Worldwide CIO Agenda 2023 Predictions."" IDC, January, 2023. https://www.idc.com/getdoc.jsp?containerId=AP49998523
    PwC. "Global Digital Trust Insights Report." PwC, 2023
    Roberts, Dan. "5 CIOs on building a service-oriented IT culture." CIO, 13 April 2023. https://www.cio.com/article/472805/5-cios-on-building-a-service-oriented-it-culture.html
    Singh, Yashvendra. "CIOs must evolve to stave off existential threat to their role." CIO, 30 March 2023. https://www.cio.com/article/465612/cios-must-evolve-to-stave-off-existential-threat-to-their-role.html
    Spacey, John. "16 Examples of IT Services." Simplicable, 28 January 2018. https://simplicable.com/IT/it-services

    The Small Enterprise Guide to People and Resource Management

    • Buy Link or Shortcode: {j2store}602|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • 52% of small business owners agree that labor quality is their most important problem, and 76% of executives expect the talent market to get even more challenging.
    • The problem? You can't compete on salary, training budgets are slim, you need people skilled in all areas, and even one resignation represents a large part of your workforce.

    Our Advice

    Critical Insight

    • The usual, reactive approach to workforce management is risky:
      • Optimizing tactics helps you hire faster, train more, and negotiate better contracts.
      • But fulfilling needs as they arise costs more, has greater risk of failure, and leaves you unprepared for future needs.
    • In a small enterprise where every resource counts, in which one hire represents 10% of your workforce, it is essential to get it right.

    Impact and Result

    • Workforce planning helps you anticipate future needs.
    • More lead time means better decisions at lower cost.
    • Small Enterprises benefit most, since every resource counts.

    The Small Enterprise Guide to People and Resource Management Research & Tools

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

    1. The Small Enterprise Guide to People and Resource Management Deck – Find out why workforce planning is critical for small enterprises.

    Use this storyboard to lay the foundation of people and resources management practices in your small enterprise IT department.

    • The Small Enterprise Guide to People and Resource Management – Phases 1-3

    2. Workforce Planning Workbook – Use the tool to successfully complete all of the activities required to define and estimate your workforce needs for the future.

    Use these concise exercises to analyze your department’s talent current and future needs and create a skill sourcing strategy to fill the gaps.

    • Workforce Planning Workbook for Small Enterprises

    3. Knowledge Transfer Tools – Use these templates to identify knowledge to be transferred.

    Work through an activity to discover key knowledge held by an employee and create a plan to transfer that knowledge to a successor.

    • IT Knowledge Identification Interview Guide Template
    • IT Knowledge Transfer Plan Template

    4. Development Planning Tools – Use these tools to determine priority development competencies.

    Assess employees’ development needs and draft a development plan that fits with key organizational priorities.

    • IT Competency Library
    • Leadership Competencies Workbook
    • IT Employee Career Development Workbook
    • Individual Competency Development Plan
    • Learning Methods Catalog for IT Employees

    Infographic

    Workshop: The Small Enterprise Guide to People and Resource 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 Lay Your Foundations

    The Purpose

    Set project direction and analyze workforce needs.

    Key Benefits Achieved

    Planful needs analysis ensures future workforce supports organizational goals.

    Activities

    1.1 Set workforce planning goals and success metrics.

    1.2 Identify key roles and competency gaps.

    1.3 Conduct a risk analysis to identify future needs.

    1.4 Determine readiness of internal successors.

    Outputs

    Work with the leadership team to:

    Extract key business priorities.

    Set your goals.

    Assess workforce needs.

    2 Create Your Workforce Plan

    The Purpose

    Conduct a skill sourcing analysis, and determine competencies to develop internally.

    Key Benefits Achieved

    A careful analysis ensures skills are being sourced in the most efficient way, and internal development is highly aligned with organizational objectives.

    Activities

    2.1 Determine your skill sourcing route.

    2.2 Determine priority competencies for development.

    Outputs

    Create a workforce plan.

    2.Determine guidelines for employee development.

    3 Plan Knowledge Transfer

    The Purpose

    Discover knowledge to be transferred, and build a transfer plan.

    Key Benefits Achieved

    Ensure key knowledge is not lost in the event of a departure.

    Activities

    3.1 Discover knowledge to be transferred.

    3.2 Identify the optimal knowledge transfer methods.

    3.3 Create a knowledge transfer plan.

    Outputs

    Discover tacit and explicit knowledge.

    Create a knowledge transfer roadmap.

    4 Plan Employee Development

    The Purpose

    Create a development plan for all staff.

    Key Benefits Achieved

    A well-structured development plan helps engage and retain employees while driving organizational objectives.

    Activities

    4.1 Identify target competencies & draft development goals

    4.2 Select development activities and schedule check-ins.

    4.3 Build manager coaching skills.

    Outputs

    Assess employees.

    Prioritize development objectives.

    Plan development activities.

    Build management skills.

    Further reading

    The Small Enterprise Guide to People and Resource Management

    Quickly start getting the right people, with the right skills, at the right time

    Is this research right for you?

    Research Navigation

    Managing the people in your department is essential, whether you have three employees or 300. Depending on your available time, resources, and current workforce management maturity, you may choose to focus on the overall essentials, or dive deep into particular areas of talent management. Use the questions below to help guide you to the right Info-Tech resources that best align with your current needs.

    Question If you answered "no" If you answered "yes"

    Does your IT department have fewer than 15 employees, and is your organization's revenue less than $25 million (USD)?

    Review Info-Tech's archive of research for mid-sized and large enterprise clients.

    Follow the guidance in this blueprint.

    Does your organization require a more rigorous and customizable approach to workforce management?

    Follow the guidance in this blueprint.

    Review Info-Tech's archive of research for mid-sized and large enterprise clients.

    Analyst Perspective

    Workforce planning is even more important for small enterprises than large organizations.

    It can be tempting to think of workforce planning as a bureaucratic exercise reserved for the largest and most formal of organizations. But workforce planning is never more important than in small enterprises, where every individual accounts for a significant portion of your overall productivity.

    Without workforce planning, organizations find themselves in reactive mode, hiring new staff as the need arises. They often pay a premium for having to fill a position quickly or suffer productivity losses when a critical role goes unexpectedly vacant.

    A workforce plan helps you anticipate these challenges, come up with solutions to mitigate them, and allocate resources for the most impact, which means a greater return on your workforce investment in the long run.

    This blueprint will help you accomplish this quickly and efficiently. It will also provide you with the essential development and knowledge transfer tools to put your plan into action.

    This is a picture of Jane Kouptsova

    Jane Kouptsova
    Senior Research Analyst, CIO Advisory
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    52% of small business owners agree that labor quality is their most important problem.1

    Almost half of all small businesses face difficulty due to staff turnover.

    76% of executives expect the talent market to get even more challenging.2

    Common Obstacles

    76% of executives expect workforce planning to become a top strategic priority for their organization.2

    But…

    30% of small businesses do not have a formal HR function.3

    Small business leaders are often left at a disadvantage for hiring and retaining the best talent, and they face even more difficulty due to a lack of support from HR.

    Small enterprises must solve the strategic workforce planning problem, but they cannot invest the same time or resources that large enterprises have at their disposal.

    Info-Tech's Approach

    A modular, lightweight approach to workforce planning and talent management, tailored to small enterprises

    Clear activities that guide your team to decisive action

    Founded on your IT strategy, ensuring you have not just good people, but the right people

    Concise yet comprehensive, covering the entire workforce lifecycle from competency planning to development to succession planning and reskilling

    Info-Tech Insight

    Every resource counts. When one hire represents 10% of your workforce, it is essential to get it right.

    1CNBC & SurveyMonkey. 2ADP. 3Clutch.

    Labor quality is small enterprise's biggest challenge

    The key to solving it is strategic workforce planning

    Strategic workforce planning (SWP) is a systematic process designed to identify and address gaps in today's workforce, including pinpointing the human capital needs of the future.

    Linking workforce planning with strategic planning ensures that you have the right people in the right positions, in the right places, at the right time, with the knowledge, skills, and attributes to deliver on strategic business goals.

    SWP helps you understand the makeup of your current workforce and how well prepared it is or isn't (as the case may be) to meet future IT requirements. By identifying capability gaps early, CIOs can prepare to train or develop current staff and minimize the need for severance payouts and hiring costs, while providing clear career paths to retain high performers.

    52%

    of small business owners agree that labor quality is their most important problem.1

    30%

    30% of small businesses have no formal HR function.2

    76%

    of senior leaders expect workforce planning to become the top strategic challenge for their organization.3

    1CNBC & SurveyMonkey. 2Clutch. 3ADP.

    Workforce planning matters more for small enterprises

    You know that staffing mistakes can cost your department dearly. But did you know the costs are greater for small enterprises?

    The price of losing an individual goes beyond the cost of hiring a replacement, which can range from 0.5 to 2 times that employee's salary (Gallup, 2019). Additional costs include loss of productivity, business knowledge, and team morale.

    This is a major challenge for large organizations, but the threat is even greater for small enterprises, where a single individual accounts for a large proportion of IT's productivity. Losing one of a team of 10 means 10% of your total output. If that individual was solely responsible for a critical function, your department now faces a significant gap in its capabilities. And the effect on morale is much greater when everyone is on the same close-knit team.

    And the threat continues when the staffing error causes you not to lose a valuable employee, but to hire the wrong one instead. When a single individual makes up a large percentage of your workforce, as happens on small teams, the effects of talent management errors are magnified.

    A group of 100 triangles is shown above a group of 10 triangles. In each group, one triangle is colored orange, and the rest are colored blue.

    Info-Tech Insight

    One bad hire on a team of 100 is a problem. One bad hire on a team of 10 is a disaster.

    This is an image of Info-Tech's small enterprise guide o people and resource management.

    Blueprint pre-step: Determine your starting point

    People and Resource management is essential for any organization. But depending on your needs, you may want to start at different stages of the process. Use this slide as a quick reference for how the activities in this blueprint fit together, how they relate to other workforce management resources, and the best starting point for you.

    Your IT strategy is an essential input to your workforce plan. It defines your destination, while your workforce is the vessel that carries you there. Ensure you have at least an informal strategy for your department before making major workforce changes, or review Info-Tech's guidance on IT strategy.

    This blueprint covers the parts of workforce management that occur to some extent in every organization:

    • Workforce planning
    • Knowledge transfer
    • Development planning

    You may additionally want to seek guidance on contract and vendor management, if you outsource some part of your workload outside your core IT staff.

    Track metrics

    Consider these example metrics for tracking people and resource management success

    Project Outcome Metric Baseline Target
    Reduced training costs Average cost of training (including facilitation, materials, facilities, equipment, etc.) per IT employee
    Reduced number of overtime hours worked Average hours billed at overtime rate per IT employee
    Reduced length of hiring period Average number of days between job ad posting and new hire start date
    Reduced number of project cancellations due to lack of capacity Total of number of projects cancelled per year
    Increased number of projects completed per year (project throughput) Total number of project completions per year
    Greater net recruitment rate Number of new recruits/Number of terminations and departures
    Reduced turnover and replacement costs Total costs associated with replacing an employee, including position coverage cost, training costs, and productivity loss
    Reduced voluntary turnover rate Number of voluntary departures/Total number of employees
    Reduced productivity loss following a departure or termination Team or role performance metrics (varies by role) vs. one year ago

    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 Phase 3

    Call #1:

    Scope requirements, objectives, and your specific challenges.

    Call #2: Assess current workforce needs.

    Call #4: Determine skill sourcing route.

    Call #6:

    Identify knowledge to be transferred.

    Call #8: Draft development goals and select activities.

    Call #3: Explore internal successor readiness.

    Call #5:Set priority development competencies.

    Call #7: Create a knowledge transfer plan.

    Call #9: Build managers' coaching & feedback skills.

    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 4 to 6 calls over the course of 3 to 4 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

    1.Lay Your Foundations 2. Create Your Workforce Plan 3. Plan Knowledge Transfer 3. Plan Employee Development Next Steps and Wrap-Up (offsite)
    Activities

    1.1 Set workforce planning goals and success metrics

    1.2 Identify key roles and competency gaps

    1.3 Conduct a risk analysis to identify future needs

    1.4 Determine readiness of internal successors

    1.5 Determine your skill sourcing route

    1.6 Determine priority competencies for development

    3.1 Discover knowledge to be transferred

    3.2 Identify the optimal knowledge transfer methods

    3.3 Create a knowledge transfer plan

    4.1 Identify target competencies & draft development goals

    4.2 Select development activities and schedule check-ins

    4.3 Build manager coaching skills

    Outcomes

    Work with the leadership team to:

    1. Extract key business priorities
    2. Set your goals
    3. Assess workforce needs

    Work with the leadership team to:

    1. Create a workforce plan
    2. Determine guidelines for employee development

    Work with staff and managers to:

    1. Discover tacit and explicit knowledge
    2. Create a knowledge transfer roadmap

    Work with staff and managers to:

    1. Assess employees
    2. Prioritize development objectives
    3. Plan development activities
    4. Build management skills

    Info-Tech analysts complete:

    1. Workshop report
    2. Workforce plan record
    3. Action plan

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Each onsite day is structured with group working sessions from 9-11 a.m. and 1:30-3:30 p.m. and includes Open Analyst Timeslots, where our facilitators are available to expand on scheduled activities, capture and compile workshop results, or review additional components from our comprehensive approach.

    This is a calendar showing days 1-4, and times from 8am-5pm

    Phase 1

    Workforce Planning

    Workforce Planning

    Knowledge Transfer

    Development Planning

    Identify needs, goals, metrics, and skill gaps.

    Select a skill sourcing strategy.

    Discover critical knowledge.

    Select knowledge transfer methods.

    Identify priority competencies.

    Assess employees.

    Draft development goals.

    Provide coaching & feedback.

    The Small Enterprise Guide to People and Resource Management

    Phase Participants

    • Leadership team
    • Managers
    • Human resource partner (if applicable)

    Additional Resources

    Workforce Planning Workbook for Small Enterprises

    Phase pre-step: Gather resources and participants

    1. Ensure you have an up-to-date IT strategy. If you don't have a formal strategy in place, ensure you are aware of the main organizational objectives for the next 3-5 years. Connect with executive stakeholders if necessary to confirm this information.
      If you are not sure of the organizational direction for this time frame, we recommend you consult Info-Tech's material on IT strategy first, to ensure your workforce plan is fully positioned to deliver value to the organization.
    2. Consult with your IT team and gather any documentation pertaining to current roles and skills. Examples include an org chart, job descriptions, a list of current tasks performed/required, a list of company competencies, and a list of outsourced projects.
    3. Gather the right participants. Most of the decisions in this section will be made by senior leadership, but you will also need input from front-line managers. Ensure they are available on an as-needed basis. If your organization has an HR partner, it can also be helpful to involve them in your workforce planning process.

    Formal workforce planning benefits even small teams

    Strategic workforce planning (SWP) is a systematic process designed to identify and address gaps in your workforce today and plan for the human capital needs of the future.

    Your workforce plan is an extension of your IT strategy, ensuring that you have the right people in the right positions, in the right places, at the right time, with the knowledge, skills, and attributes to deliver on strategic business goals.

    SWP helps you understand the makeup of your current workforce and how well prepared it is or isn't (as the case may be) to meet future IT requirements. By identifying capability gaps early, CIOs can prepare to train or develop current staff and minimize the need for severance payouts and hiring costs, while providing clear career paths to retain high performers.

    The smaller the business, the more impact each individual's performance has on the overall success of the organization. When a given role is occupied by a single individual, the organization's performance in that function is determined wholly by one employee. Creating a workforce plan for a small team may seem excessive, but it ensures your organization is not unexpectedly hit with a critical competency gap.

    Right-size your workforce planning process to the size of your enterprise

    Small organizations are 2.2 times more likely to have effective workforce planning processes.1 Be mindful of the opportunities and risks for organizations of your size as you execute the project. How you build your workforce plan will not change drastically based on the size of your organization; however, the scope of your initiative, the size of your team, and the tactics you employ may vary.

    Small Organization

    Medium Organization

    Large Organization

    Project Opportunities

    • Project scope is much more manageable.
    • Communication and planning can be more manageable.
    • Fewer roles can clarify prioritization needs and promotability.
    • Project scope is more manageable.
    • Moderate budget for workforce planning initiatives is needed.
    • Communication and enforcement is easier.
    • Larger candidate pool to pull from.
    • Greater career path options for staff.
    • In-house expertise may be available

    Project Risks

    • Limited resources and time to execute the project.
    • In-house expertise is unlikely.
    • Competencies may be informal and not documented.
    • Limited overlap in responsibilities, resulting in fewer redundancies.
    • Limited staff with experience for the project.
    • Workforce planning may be a lower priority and difficult to generate buy-in for.
    • Requires more staff to manage workforce plan and execute initiatives.
    • Less collective knowledge on staff strengths may make career planning difficult.
    • Geographically dispersed business units make collaboration and communication difficult.

    1 McLean & Company Trends Report 2014

    1.1 Set project outcomes and success metrics

    1-3 hours

    1. As a group, brainstorm key pain points that the IT department experiences due to the lack of a workforce plan. Ask them to consider turnover, retention, training, and talent acquisition.
    2. Discuss any key themes that arise and brainstorm your desired project outcomes. Keep a record of these for future reference and to aid in stakeholder communication.
    3. Break into smaller groups (or if too small, continue as a single group):
      1. For each desired outcome, consider what metrics you could use to track progress. Keep your initial list of pain points in mind as you brainstorm metrics.
      2. Write each of the metric suggestions on a whiteboard and agree to track 3-5 metrics. Set targets for each metric. Consider the effort required to obtain and track the metric, as well as its reliability.
      3. Assign one individual for tracking the selected metrics. Following the meeting, that individual will be responsible for identifying the baseline and targets, and reporting on metrics progress.

    Input

    Output

    • List of workforce data available
    • List of workforce metrics to track the workforce plan's impact

    Materials

    Participants

    • Whiteboard/flip charts
    • Leadership team
    • Human resource partner (if applicable)

    1.2 Identify key roles and competency gaps

    1-3 hours

    1. As a group, identify all strategic, core, and supporting roles by reviewing the organizational chart:
      1. Strategic: What are the roles that must be filled by top performers and cannot be left vacant in order to meet strategic objectives?
      2. Core: What roles are important to drive operational excellence?
      3. Supporting: What roles are required for day-to-day work, but are low risk if the role is vacant for a period of time?
    2. Working individually or in small groups, have managers for each identified role define the level of competence required for the job. Consider factors such as:
      1. The difficulty or criticality of the tasks being performed
      2. The impact on job outcomes
      3. The impact on the performance of other employees
      4. The consequence of errors if the competency is not present
      5. How frequently the competency is used on the job
      6. Whether the competency is required when the job starts or can be learned or acquired on the job within the first six months
    3. Continue working individually and rate the level of proficiency of the current incumbent.
    4. As a group, review the assessment and make any adjustments.

    Record this information in the Workforce Planning Workbook for Small Enterprises.

    Download the Workforce Planning Workbook for Small Enterprises

    1.2 Identify key roles and competency gaps

    Input Output
    • Org chart, job descriptions, list of current tasks performed/required, list of company competencies
    • List of competency gaps for key roles
    Materials Participants
    • Leadership team
    • Managers

    Conduct a risk-of-departure analysis

    A risk-of-departure analysis helps you plan for future talent needs by identifying which employees are most likely to leave the organization (or their current role).

    A risk analysis takes into account two factors: an employee's risk for departure and the impact of departure:

    Employees are high risk for departure if they:

    • Have specialized or in-demand skills (tenured employees are more likely to have this than recent hires)
    • Are nearing retirement
    • Have expressed career aspirations that extend outside your organization
    • Have hit a career development ceiling at your organization
    • Are disengaged
    • Are actively job searching
    • Are facing performance issues or dismissal OR promotion into a new role

    Employees are low risk for departure if they:

    • Are a new hire or new to their role
    • Are highly engaged
    • Have high potential
    • Are 5-10 years out from retirement

    If you are not sure where an employee stands with respect to leaving the organization, consider having a development conversation with them. In the meantime, consider them at medium risk for departure.

    To estimate the impact of departure, consider:

    • The effect of losing the employee in the near- and medium-term, including:
      • Impact on the organization, department, unit/team and projects
      • The cost (in time, resources, and productivity loss) to replace the individual
      • The readiness of internal successors for the role

    1.3 Conduct a risk analysis to identify future needs

    1-3 hours

    Preparation: Your estimation of whether key employees are at risk of leaving the organization will depend on what you know of them objectively (skills, age), as well as what you learn from development conversations. Ensure you collect all relevant information prior to conducting this activity. You may need to speak with employees' direct managers beforehand or include them in the discussion.

    • As a group, list all your current employees, and using the previous slide for guidance, rank them on two parameters: risk of departure and impact of departure, on a scale of low to high. Record your conclusions in a chart like the one on the right. (For a more in-depth risk assessment, use the "Risk Assessment Results" tab of the Key Roles Succession Planning Tool.)
    • Employees that fall in the "Mitigate" quadrant represent key at-risk roles with at least moderate risk and moderate impact. These are your succession planning priorities. Add these roles to your list of key roles and competency gaps, and include them in your workforce planning analysis.
    • Employees that fall in the "Manage" quadrants represent secondary priorities, which should be looked at if there is capacity after considering the "Mitigate" roles.

    Record this information in the Workforce Planning Workbook for Small Enterprises.

    This is an image of the Risk analysis for risk of departure to importance of departure.

    Info-Tech Insight

    Don't be afraid to rank most or all your staff as "high impact of departure." In a small enterprise, every player counts, and you must plan accordingly.

    1.3 Conduct a risk analysis to identify future needs

    Input Output
    • Employee data on competencies, skills, certifications, and performance. Input from managers from informal development conversations.
    • A list of first- and second-priority at-risk roles to carry forward into a succession planning analysis
    Materials Participants
    • Leadership team
    • Managers

    Determine your skill sourcing route

    The characteristics of need steer hiring managers to a preferred choice, while the marketplace analysis will tell you the feasibility of each option.

    Sourcing Options

    Preferred Options

    Final Choice

    four blue circles

    A right facing arrow

    Two blue circles A right facing arrow One blue circle
    State of the Marketplace

    State of the Marketplace

    Urgency: How soon do we need this skill? What is the required time-to-value?

    Criticality: How critical, i.e. core to business goals, are the services or systems that this skill will support?

    Novelty: Is this skill brand new to our workforce?

    Availability: How often, and at what hours, will the skill be needed?

    Durability: For how long will this skill be needed? Just once, or indefinitely for regular operations?

    Scarcity: How popular or desirable is this skill? Do we have a large enough talent pool to draw from? What competition are we facing for top talent?

    Cost: How much will it cost to hire vs. contract vs. outsource vs. train this skill?

    Preparedness: Do we have internal resources available to cultivate this skill in house?

    1.4 Determine your skill sourcing route

    1-3 hours

    1. Identify the preferred sourcing method as a group, starting with the most critical or urgent skill need on your list. Use the characteristics of need to guide your discussion. If more than one option seems adequate, carry several over to the next step.
    2. Consider the marketplace factors applicable to the skill in question and use these to narrow down to one final sourcing decision.
      1. If it is not clear whether a suitable internal candidate is available or ready, refer to the next activity for a readiness assessment.
    3. Be sure to document the rationale supporting your decision. This will ensure the decision can be clearly communicated to any stakeholders, and that you can review on your decision-making process down the line.

    Record this information in the Workforce Planning Workbook for Small Enterprises.

    Info-Tech Insight

    Consider developing a pool of successors instead of pinning your hopes on just one person. A single pool of successors can be developed for either one key role that has specialized requirements or even multiple key roles that have generic requirements.

    Input

    Output

    • List of current and upcoming skill gaps
    • A sourcing decision for each skill

    Materials

    Participants

    • Leadership team
    • Human resource partner (if applicable)

    1.5 Determine readiness of internal successors

    1-3 hours

    1. As a group, and ensuring you include the candidates' direct managers, identify potential successors for the first role on your list.
    2. Ask how effectively the potential successor would serve in the role today. Review the competencies for the key role in terms of:
      1. Relationship-building skills
      2. Business skills
      3. Technical skills
      4. Industry-specific skills or knowledge
    3. Determine what competencies the succession candidate currently has and what must be learned. Be sure you know whether the candidate is open to a career change. Don't assume – if this is not clear, have a development conversation to ensure everyone is on the same page.
    4. Finally, determine how difficult it will be for the successor to acquire missing skills or knowledge, whether the resources are available to provide the required development, and how long it will take to provide it.
    5. As a group, decide whether training an internal successor is a viable option for the role in question, considering the successor's readiness and the characteristics of need for the role. If a clear successor is not readily apparent, consider:
      1. If the development of the successor can be fast-tracked, or if some requirements can be deprioritized and the successor provided with temporary support from other employees.
      2. If the role in question is being discussed because the current incumbent is preparing to leave, consider negotiating an arrangement that extends the incumbent's employment tenure.
    6. Record the decision and repeat for the next role on your list.

    Info-Tech Insight

    A readiness assessment helps to define not just development needs, but also any risks around the organization's ability to fill a key role.

    Input

    Output

    • List of roles for which you are considering training internally
    • Job descriptions and competency requirements for the roles
    • List of roles for which internal successors are a viable option

    Materials

    Participants

    • Leadership team
    • Candidates' direct managers, if applicable

    Use alternative work arrangements to gain time to prepare successors

    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 more importantly, they allow the business to retain employees that are needed in key roles who are departure risks due to retirement.

    Viewing retirement as a gradual process can help you slow down skill loss in your organization and ensure you have sufficient time to train successors. Retiring workers are becoming increasingly open to alternative work arrangements. Among employed workers aged 50-75, more than half planned to continue working part-time after retirement.
    Source: Statistics Canada.

    Flexible work options are the most used form of alternative work arrangement

    A bar graph showing the percent of organizations who implemented alternate work arrangement, for Flexible work options; Contract based work; Part time roles; Graduated retirement programs; Part year jobs or job sharing; Increased PTO for employees over a certain age.

    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.

    Choose the alternative work arrangement that works best for you and the employee

    Alternative Work Arrangement Description Ideal Use Caveats
    Part-year jobs or job sharing Working 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 off Additional 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 roles Concentration 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.

    Phase 2

    Knowledge Transfer

    Workforce Planning

    Knowledge Transfer

    Development Planning

    Identify needs, goals, metrics, and skill gaps.

    Select a skill sourcing strategy.

    Discover critical knowledge.

    Select knowledge transfer methods.

    Identify priority competencies.

    Assess employees.

    Draft development goals.

    Provide coaching & feedback.

    The Small Enterprise Guide to People and Resource Management

    Phase Participants

    • Leadership/management team
    • Incumbent & successor

    Additional Resources

    IT Knowledge Identification Interview Guide Template

    Knowledge Transfer Plan Template

    Determine your skill sourcing route

    Knowledge transfer plans have three key components that you need to complete for each knowledge source:

    Define what knowledge needs to be transferred

    Each knowledge source has unique information which needs to be transferred. Chances are you don't know what you don't know. The first step is therefore to interview knowledge sources to find out.

    Identify the knowledge receiver

    Depending on who the information is going to, the knowledge transfer tactic you employ will differ. Before deciding on the knowledge receiver and tactic, consider three key factors:

    • How will this knowledge be used in the future?
    • What is the next career step for the knowledge receiver?
    • Are the receiver and the source going to be in the same location?

    Identify which knowledge transfer tactics you will use for each knowledge asset

    Not all tactics are good in every situation. Always keep the "knowledge type" (information, process, skills, and expertise), knowledge sources' engagement level, and the knowledge receiver in mind as you select tactics.

    Don't miss tacit knowledge

    There are two basic types of knowledge: "explicit" and "tacit." Ensure you capture both to get a well-rounded overview of the role.

    Explicit Tacit
    • "What knowledge" – knowledge can be articulated, codified, and easily communicated.
    • Easily explained and captured – documents, memos, speeches, books, manuals, process diagrams, facts, etc.
    • Learn through reading or being told.
    • "How knowledge" – intangible knowledge from an individual's experience that is more from the process of learning, understanding, and applying information (insights, judgments, and intuition).
    • Hard to verbalize, and difficult to capture and quantify.
    • Learn through observation, imitation, and practice.

    Types of explicit knowledge

    Types of tacit knowledge

    Information Process Skills Expertise

    Specialized technical knowledge.

    Unique design capabilities/methods/models.

    Legacy systems, details, passwords.

    Special formulas/algorithms/ techniques/contacts.

    • Specialized research & development processes.
    • Proprietary production processes.
    • Decision-making processes.
    • Legacy systems.
    • Variations from documented processes.
    • Techniques for executing on processes.
    • Relationship management.
    • Competencies built through deliberate practice enabling someone to act effectively.
    • Company history and values.
    • Relationships with key stakeholders.
    • Tips and tricks.
    • Competitor history and differentiators.

    e.g. Knowing the lyrics to a song, building a bike, knowing the alphabet, watching a YouTube video on karate.

    e.g. Playing the piano, riding a bike, reading or speaking a language, earning a black belt in karate.

    Embed your knowledge transfer methods into day-to-day practice

    Multiple methods should be used to transfer as much of a person's knowledge as possible, and mentoring should always be one of them. Select your method according to the following criteria:

    Info-Tech Insight

    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.

    Type of Knowledge

    • Tacit knowledge transfer methods are often informal and interactive:
      • Mentoring
      • Multi-generational work teams
      • Networks and communities
      • Job shadowing
    • Explicit knowledge transfer methods tend to be more formal and one way:
      • Formal documentation of processes and best practices
      • Self-published knowledge bases
      • Formal training sessions
      • Formal interviews

    Incumbent's Preference/Successor's Preference

    Ensure you consult the employees, and their direct manager, on the way they are best prepared to teach and learn. Some examples of preferences include:

    1. Prefer traditional classroom learning, augmented with participation, critical reflection, and feedback.
    2. May get bored during formal training sessions and retain more during job shadowing.
    3. Prefer to be self-directed or self-paced, and highly receptive to e-learning and media.
    4. Prefer informal, incidental learning, tend to go immediately to technology or direct access to people. May have a short attention span and be motivated by instant results.
    5. May be uncomfortable with blogs and wikis, but comfortable with SharePoint.

    Cost

    Consider costs beyond the monetary. 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.

    2.1 Create a knowledge transfer plan

    1-3 hours

    1. Working together with the current incumbent, brainstorm the key information pertaining to the role that you want to pass on to the successor. Use the IT Knowledge Identification Interview Guide Template to ensure you don't miss anything.
      • Consider key knowledge areas, including:
        • 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.
      • 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?
    2. Once the knowledge has been identified, use the information on the following slides to decide on the most appropriate methods. Be sure to consult the incumbent and successor on their preferences.
    3. Prioritize your list of knowledge transfer activities. It's important not to try to do too much too quickly. Focus on some quick wins and leverage the success of these initiatives to drive the project forward. Follow these steps as a guide:
      1. Take an inventory of all the tactics and techniques which you plan to employ. Eliminate redundancies where possible.
      2. Start your implementation with your highest risk role or knowledge item, using explicit knowledge transfer tactics. Interviews, use cases, and process mapping will give you some quick wins and will help gain momentum for the project.
      3. Then move forward to other tactics, the majority of which will require training and process design. Pick 1-2 other key tactics you would like to employ and build those out. For tactics that require resources or monetary investment, start with those that can be reused for multiple roles.

    Record your plan in the IT Knowledge Transfer Plan Template.

    Download the IT Knowledge Identification Interview Guide Template

    Download the Knowledge Transfer Plan Template

    Info-Tech Insight

    Wherever possible, ask employees about their personal learning styles. It's likely that a collaborative compromise will have to be struck for knowledge transfer to work well.

    2.1 Create a knowledge transfer plan

    Input

    Output

    • List of roles for which you need to transfer knowledge
    • Prioritized list of knowledge items and chosen transfer method

    Materials

    Participants

    • Leadership team
    • Incumbent
    • Successor

    Not every transfer method is effective for every type of knowledge

    Knowledge Type
    Tactic Explicit Tacit
    Information Process Skills Expertise
    Interviews Very Strong Strong Strong Strong
    Process Mapping Medium Very Strong Very Weak Very Weak
    Use Cases Medium Very Strong Very Weak Very Weak
    Job Shadow Very Weak Medium Very Strong Very Strong
    Peer Assist Strong Medium Very Strong Very Strong
    Action Review Medium Medium Strong Strong
    Mentoring Weak Weak Strong Very Strong
    Transition Workshop Strong Strong Strong Weak
    Storytelling Weak Weak Strong Very Strong
    Job Share Weak Weak Very Strong Very Strong
    Communities of Practice Strong Weak Very Strong Very Strong

    This table shows the relative strengths and weaknesses of each knowledge transfer tactic compared against four different knowledge types.

    Not all techniques are effective for all types of knowledge; it is important to use a healthy mixture of techniques to optimize effectiveness.

    Employees' engagement can impact knowledge transfer effectiveness

    Level of Engagement
    Tactic Disengaged/ Indifferent Almost Engaged - Engaged
    Interviews Yes Yes
    Process Mapping Yes Yes
    Use Cases Yes Yes
    Job Shadow No Yes
    Peer Assist Yes Yes
    Action Review Yes Yes
    Mentoring No Yes
    Transition Workshop Yes Yes
    Storytelling No Yes
    Job Share Maybe Yes
    Communities of Practice Maybe Yes

    When considering which tactics to employ, it's important to consider the knowledge holder's level of engagement. Employees who you would identify as being disengaged may not make good candidates for job shadowing, mentoring, or other tactics where they are required to do additional work or are asked to influence others.

    Knowledge transfer can be controversial for all employees as it can cause feelings of job insecurity. It's essential that motivations for knowledge transfer are communicated effectively.

    Pay particular attention to your communication style with disengaged and indifferent employees, communicate frequently, and tie communication back to what's in it for them.

    Putting disengaged employees in a position where they are mentoring others can be a risk, as their negativity could influence others not to participate, or it could negate the work you're doing to create a positive knowledge sharing culture.

    Employees' engagement can impact knowledge transfer effectiveness

    Effort by Stakeholder

    Tactic

    Business Analyst

    IT Manager

    Knowledge Holder

    Knowledge Receiver

    Interviews

    These tactics require the least amount of effort, especially for organizations that are already using these tactics for a traditional requirements gathering process.

    Medium

    N/A

    Low

    Low

    Process Mapping

    Medium

    N/A

    Low

    Low

    Use Cases

    Medium

    N/A

    Low

    Low

    Job Shadow

    Medium

    Medium

    Medium

    Medium

    Peer Assist

    Medium

    Medium

    Medium

    Medium

    Action Review

    These tactics generally require more involvement from IT management and the BA in tandem for preparation. They will also require ongoing effort for all stakeholders. It's important to gain stakeholder buy-in as it is key for success.

    Low

    Medium

    Medium

    Low

    Mentoring

    Medium

    High

    High

    Medium

    Transition Workshop

    Medium

    Low

    Medium

    Low

    Storytelling

    Medium

    Medium

    Low

    Low

    Job Share

    Medium

    High

    Medium

    Medium

    Communities of Practice

    High

    Medium

    Medium

    Medium

    Phase 3

    Development Planning

    Workforce Planning

    Knowledge Transfer

    Development Planning

    Identify needs, goals, metrics, and skill gaps.

    Select a skill sourcing strategy.

    Discover critical knowledge.

    Select knowledge transfer methods.

    Identify priority competencies.

    Assess employees.

    Draft development goals.

    Provide coaching & feedback.

    The Small Enterprise Guide to People and Resource Management

    Phase Participants

    • Leadership team
    • Managers
    • Employees

    Additional Resources

    Effective development planning hinges on robust performance management

    Your performance management framework is rooted in organizational goals and defines what it means to do any given role well.

    Your organization's priority competencies are the knowledge, skills and attributes that enable an employee to do the job well.

    Each individual's development goals are then aimed at building these priority competencies.

    Mission Statement

    To be the world's leading manufacturer and distributor of widgets.

    Business Goal

    To increase annual revenue by 10%.

    IT Department Objective

    To ensure reliable communications infrastructure and efficient support for our sales and development teams.

    Individual Role Objective

    To decrease time to resolution of support requests by 10% while maintaining quality.

    Info-Tech Insight

    Without a performance management framework, your employees cannot align their development with the organization's goals. For detailed guidance, see Info-Tech's blueprint Setting Meaningful Employee Performance Measures.

    What is a competency?

    The term "competency" refers to the collection of knowledge, skills, and attributes an employee requires to do a job well.

    Often organizations have competency frameworks that consist of core, leadership, and functional competencies.

    Core competencies apply to every role in the organization. Typically, they are tied to organizational values and business mission and/or vision.

    Functional competencies are at the department, work group, or job role levels. They are a direct reflection of the function or type of work carried out.

    Leadership competencies generally apply only to people managers in the organization. Typically, they are tied to strategic goals in the short to medium term

    Generic Functional
    • Core
    • Leadership
    • IT
    • Finance
    • Sales
    • HR

    Use the SMART model to make sure goals are reasonable and attainable

    S

    Specific: Be specific about what you want to accomplish. Think about who needs to be involved, what you're trying to accomplish, and when the goal should be met.

    M

    Measurable: Set metrics that will help to determine whether the goal has been reached.

    A

    Achievable: Ensure that you have both the organizational resources and employee capability to accomplish the goal.

    R

    Relevant: Goals must align with broader business, department, and development goals in order to be meaningful.

    T

    Time-bound: Provide a target date to ensure the goal is achievable and provide motivation.

    Example goal:

    "Learn Excel this summer."

    Problems:

    Not specific enough, not measurable enough, nor time bound.

    Alternate SMART goal:

    "Consult with our Excel expert and take the lead on creating an Excel tool in August."

    3.2 Identify target competencies & draft development goals

    1 hour

    Pre-work: Employees should come to the career conversation having done some self-reflection. Use Info-Tech's IT Employee Career Development Workbook to help employees identify their career goals.

    1. Pre-work: Managers should gather any data they have on the employee's current proficiency at key competencies. Potential sources include task-based assessments, performance ratings, supervisor or peer feedback, and informal conversation.

      Prioritize competencies. Using your list of priority organizational competencies, work with your employees to help them identify two to four competencies to focus on developing now and in the future. Use the Individual Competency Development Plan template to document your assessment and prioritize competencies for development. Consider the following questions for guidance:
      1. Which competencies are needed in my current role that I do not have full proficiency in?
      2. Which competencies are related to both my career interests and the organization's priorities?
      3. Which competencies are related to each other and could be developed together or simultaneously?
    2. Draft goals. Ask your employee to create a list of multiple simple goals to develop the competencies they have selected to work on developing over the next year. Identifying multiple goals helps to break development down into manageable chunks. Ensure goals are concrete, for example, if the competency is "communication skills," your development goals could be "presentation skills" and "business writing."
    3. Review goals:
      1. Ask why these areas are important to the employee.
      2. Share your ideas and why it is important that the employee develop in the areas identified.
      3. Ensure that the goals are realistic. They should be stretch goals, but they must be achievable. Use the SMART framework on the previous slide for guidance.

    Info-Tech Insight

    Lack of career development is the top reason employees leave organizations. Development activities need to work for both the organization and the employee's own development, and clearly link to advancing employees' careers either at the organization or beyond.

    Download the IT Employee Career Development Workbook

    Download the Individual Competency Development Plan

    3.2 Identify target competencies & draft development goals

    Input

    Output

    • Employee's career aspirations
    • List of priority organizational competencies
    • Assessment of employee's current proficiency
    • A list of concrete development goals

    Materials

    Participants

    • Employee
    • Direct manager

    Apply a blend of learning methods

    • Info-Tech recommends the 70-20-10 principle for learning and development, which places the greatest emphasis on learning by doing. This experiential learning is then supported by feedback from mentoring, training, and self-reflection.
    • Use the 70-20-10 principle as a guideline – the actual breakdown of your learning methods will need to be tailored to best suit your organization and the employee's goals.

    Spend development time and effort wisely:

    70%

    On providing challenging on-the-job opportunities

    20%

    On establishing opportunities for people to develop learning relationships with others, such as coaching and mentoring

    10%

    On formal learning and training programs

    Internal initiatives are a cost-effective development aid

    Internal Initiative

    What Is It?

    When to Use It

    Special Project

    Assignment outside of the scope of the day-to-day job (e.g. work with another team on a short-term initiative).

    As an opportunity to increase exposure and to expand skills beyond those required for the current job.

    Stretch Assignment

    The same projects that would normally be assigned, but in a shorter time frame or with a more challenging component.

    Employee is consistently meeting targets and you need to see what they're capable of.

    Training Others

    Training new or more junior employees on their position or a specific process.

    Employee wants to expand their role and responsibility and is proficient and positive.

    Team Lead On an Assignment

    Team lead for part of a project or new initiative.

    To prepare an employee for future leadership roles by increasing responsibility and developing basic managerial skills.

    Job Rotation

    A planned placement of employees across various roles in a department or organization for a set period of time.

    Employee is successfully meeting and/or exceeding job expectations in their current role.

    Incorporating a development objective into daily tasks

    What do we mean by incorporating into daily tasks?

    The next time you assign a project to an employee, you should also ask the employee to think about a development goal for the project. Try to link it back to their existing goals or have them document a new goal in their development plan.

    For example: A team of employees always divides their work in the same way. Their goal for their next project could be to change up the division of responsibility so they can learn each other's roles.

    Another example:

    "I'd like you to develop your ability to explain technical terms to a non-technical audience. I'd like you to sit down with the new employee who starts tomorrow and explain how to use all our software, getting them up and running."

    Info-Tech Insight

    Employees often don't realize that they are being developed. They either think they are being recognized for good work or they are resentful of the additional workload.

    You need to tell your employees that the activity you are asking them to do is intended to further their development.

    However, be careful not to sell mundane tasks as development opportunities – this is offensive and detrimental to engagement.

    Establish manager and employee accountability for following up

    Ensure that the employee makes progress in developing prioritized competencies by defining accountabilities:

    Tracking Progress

    Checking In

    Development Meetings

    Coaching & Feedback

    Employee accountability:

    • Employees need to keep track of what they learn.
    • Employees should take the time to reflect on their progress.

    Manager accountability:

    • Managers need to make the time for employees to reflect.

    Employee accountability:

    • Employees need to provide managers with updates and ask for help.

    Manager accountability:

    • Managers need to check in with employees to see if they need additional resources.

    Employee accountability:

    • Employees need to complete assessments again to determine whether they have made progress.

    Manager accountability:

    • Managers should schedule monthly meetings to discuss progress and identify next steps.

    Employee accountability:

    • Employees should ask their manager and colleagues for feedback after development activities.

    Manager accountability:

    • Managers can use both scheduled meetings and informal conversations to provide coaching and feedback to employees.

    3.3 Select development activities and schedule check-ins

    1-3 hours

    Pre-work: Employees should research potential development activities and come prepared with a range of suggestions.

    Pre-work: Managers should investigate options for employee development, such as internal training/practice opportunities for the employee's selected competencies and availability of training budget.

    1. Communicate your findings about internal opportunities and external training allowance to the employee. This can also be done prior to the meeting, to help guide the employee's own research. Address any questions or concerns.
    2. Review the employee's proposed list of activities, and identify priority ones based on:
      1. How effectively they support the development of priority competencies.
      2. How closely they match the employee's original goals.
      3. The learning methods they employ, and whether the chosen activities support a mix of different methods.
      4. The degree to which the employee will have a chance to practice new skills hands-on.
      5. The amount of time the activities require, balanced against the employee's work obligations.
    3. Guide the employee in selecting activities for the short and medium term. Establish an understanding that this list is tentative and subject to ongoing revision during future check-ins.
      1. If in doubt about whether the employee is over-committing, err on the side of fewer activities to start.
    4. Schedule a check-in for one month out to review progress and roadblocks, and to reaffirm priorities.
    5. Check-ins should be repeated regularly, typically once a month.

    Download the Learning Methods Catalog

    Info-Tech Insight

    Adopt a blended learning approach using a variety of techniques to effectively develop competencies. This will reinforce learning and accommodate different learning styles. See Info-Tech's Learning Methods Catalog for a description of popular experiential, relational, and formal learning methods.

    3.3 Select development activities and schedule check-ins

    Input

    Output

    • List of potential development activities (from employee)
    • List of organizational resources (from manager)
    • A selection of feasible development activities
    • Next check-in scheduled

    Materials

    Participants

    • Employee
    • Direct manager

    Tips for tricky conversations about development

    What to do if…

    Employees aren't interested in development:

    • They may have low aspiration for advancement.
    • Remind them about the importance of staying current in their role given increasing job requirements.
    • Explain that skill development will make their job easier and make them more successful at it; sell development as a quick and effective way to learn the skill.
    • Indicate your support and respond to concerns.

    Employees have greater aspiration than capability:

    • Explain that there are a number of skills and capabilities that they need to improve in order to move to the next level. If the specific skills were not discussed during the performance appraisal, do not hesitate to explain the improvements that you require.
    • Inform the employee that you want them to succeed and that by pushing too far and too fast they risk failure, which would not be beneficial to anyone.
    • Reinforce that they need to do their current job well before they can be considered for promotion.

    Employees are offended by your suggestions:

    • Try to understand why they are offended. Before moving forward, clarify whether they disagree with the need for development or the method by which you are recommending they be developed.
    • If it is because you told them they had development needs, then reiterate that this is about helping them to become better and that everyone has areas to develop.
    • If it is about the development method, discuss the different options, including the pros and cons of each.

    Coaching and feedback skills help managers guide employee development

    Coaching and providing feedback are often confused. Managers often believe they are coaching when they are just giving feedback. Learn the difference and apply the right approach for the right situation.

    What is coaching?

    A conversation in which a manager asks questions to guide employees to solve problems themselves.

    Coaching is:

    • Future-focused
    • Collaborative
    • Geared toward growth and development

    What is feedback?

    Information conveyed from the manager to the employee about their performance.

    Feedback is:

    • Past-focused
    • Prescriptive
    • Geared toward behavior and performance

    Info-Tech Insight

    Don't forget to develop your managers! Ensure coaching, feedback, and management skills are part of your management team's development plan.

    Understand the foundations of coaching to provide effective development coaching:

    Knowledge Mindset Relationship
    • Understand what coaching is and how to apply it:
    • Identify when to use coaching, feedback, or other people management practices, and how to switch between them.
    • Know what coaching can and cannot accomplish.
    • When focusing on performance, guide an employee to solve problems related to their work. When focusing on development, guide an employee to reach their own development goals.
    • Adopt a coaching mindset by subscribing to the following beliefs:
    • Employees want to achieve higher performance and have the potential to do so.
    • Employees have a unique and valuable perspective to share of the challenges they face as well as the possible solutions.
    • Employees should be empowered to realize solutions themselves to motivate them in achieving goals.
    • Develop a relationship of trust between managers and employees:
    • Create an environment of psychological safety where employees feel safe to be open and honest.
    • Involve employees in decision making and inform employees often.
    • Invest in employees' success.
    • Give and expect candor.
    • Embrace failure.

    Apply the "4A" behavior-focused coaching model

    Using a model allows every manager, even those with little experience, to apply coaching best practices effectively.

    Actively Listen

    Ask

    Action Plan

    Adapt

    Engage with employees and their message, rather than just hearing their message.

    Key active listening behaviors:

    • Provide your undivided attention.
    • Observe both spoken words and body language.
    • Genuinely try to understand what the employee is saying.
    • Listen to what is being said, then paraphrase back what you heard.

    Ask thoughtful, powerful questions to learn more information and guide employees to uncover opportunities and/or solutions.

    Key asking behaviors:

    • Ask open-ended questions.
    • Ask questions to learn something you didn't already know.
    • Ask for reasoning (the why).
    • Ask "what else?"

    Hold employees and managers accountable for progress and results.

    During check-ins, review each development goal to ensure employees are meeting their targets.

    Key action planning behaviors:

    Adapt to individual employees and situations.

    Key adapting behaviors:

    • Recognize employees' unique characteristics.
    • Appreciate the situation at hand and change your behavior and communication in order to best support the individual employee.

    Use the following questions to have meaningful coaching conversations

    Opening Questions

    • What's on your mind?
    • Do you feel you've had a good week/month?
    • What is the ideal situation?
    • What else?

    Problem-Identifying Questions

    • What is most important here?
    • What is the challenge here for you?
    • What is the real challenge here for you?
    • What is getting in the way of you achieving your goal?

    Problem-Solving Questions

    • What are some of the options available?
    • What have you already tried to solve this problem? What worked? What didn't work?
    • Have you considered all the possibilities?
    • How can I help?

    Next-Steps Questions

    • What do you need to do, and when, to achieve your goal?
    • What resources are there to help you achieve your goal? This includes people, tools, or even resources outside our organization.
    • How will you know when you have achieved your goal? What does success look like?

    The purpose of asking questions is to guide the conversation and learn something you didn't already know. Choose the questions you ask based on the flow of the conversation and on what information you would like to uncover. Approach the answers you get with an open mind.

    Info-Tech Insight

    Avoid the trap of "hidden agenda" questions, whose real purpose is to offer your own advice.

    Use the following approach to give effective feedback

    Provide the feedback in a timely manner

    • Plan the message you want to convey.
    • Provide feedback "just-in-time."
    • Ensure recipient is not preoccupied.
    • Try to balance the feedback; refer to successful as well as unsuccessful behavior.

    Communicate clearly, using specific examples and alternative behaviors

    • Feedback must be honest and helpful.
    • Be specific and give a recent example.
    • Be descriptive, not evaluative.
    • Relate feedback to behaviors that can be changed.
    • Give an alternative positive behavior.

    Confirm their agreement and understanding

    • Solicit their thoughts on the feedback.
    • Clarify if not understood; try another example.
    • Confirm recipient understands and accepts the feedback.

    Manager skill is crucial to employee development

    Development is a two-way street. This means that while employees are responsible for putting in the work, managers must enable their development with support and guidance. The latter is a skill, which managers must consciously cultivate.

    For more in-depth management skills development, see the Info-Tech "Build a Better Manager" training resources:

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    Build a Strategy for Big Data Platforms

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    • Parent Category Name: Big Data
    • Parent Category Link: /big-data
    • The immaturity of the big data market means that organizations lack examples and best practices to follow, and they are often left trailblazing their own paths.
    • Experienced and knowledgeable big data professionals are limited and without creative resourcing; IT might struggle to fill big data positions.
    • The term NoSQL has become a catch-all phrase for big data technologies; however, the technologies falling under the umbrella of NoSQL are disparate and often misunderstood. Organizations are at risk of adopting incorrect technologies if they don’t take the time to learn the jargon.

    Our Advice

    Critical Insight

    • NoSQL plays a key role in the emergence of the big data market, but it has not made relational databases outdated. Successful big data strategies can be conducted using SQL, NoSQL, or a combination of the two.
    • Assign a Data Architect to oversee your initiative. Hire or dedicate someone who has the ability to develop both a short-term and long-term vision and that has hands-on experience with data management, mining and modeling. You will still need someone (like a database administrator) who understands the database, the schemas, and the structure.
    • Understand your data before you attempt to use it. Take a master data management approach to ensure there are rules and standards for managing your enterprise’s data, and take extra caution when integrating external sources.

    Impact and Result

    • Assess whether SQL, NoSQL, or a combination of both technologies will provide you with the appropriate capabilities to achieve your business objectives and gain value from your data.
    • Form a Big Data Team to bring together IT and the business in order to leave a successful initiative.
    • Conduct ongoing training with your personnel to ensure up-to-date skills and end-user understanding.
    • Frequently scan the big data market space to identify new technologies and opportunities to help optimize your big data strategy.

    Build a Strategy for Big Data Platforms Research & Tools

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

    1. Develop a big data strategy

    Know where to start and where to focus attention in the implementation of a big data strategy.

    • Storyboard: Build a Strategy for Big Data Platforms

    2. Assess the appropriateness of big data technologies

    Decide the most correct tools to use in order to solve enterprise data management problems.

    • Big Data Diagnostic Tool

    3. Determine the TCO of a scale out implementation

    Compare the TCO of a SQL (scale up) with a NoSQL (scale out) deployment to determine whether NoSQL will save costs.

    • Scale Up vs. Scale Out TCO Tool
    [infographic]

    Set Meaningful Employee Performance Measures

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    • Parent Category Name: Manage & Coach
    • Parent Category Link: /manage-coach
    • Despite the importance of performance measures, most organizations struggle with choosing appropriate metrics and standards of performance for their employees.
    • Performance measures are often misaligned with the larger strategy, gamed by employees, or too narrow to provide an accurate picture of employee achievements.
    • Additionally, many organizations track too many metrics, resulting in a bureaucratic nightmare with little payoff.

    Our Advice

    Critical Insight

    • Focus on what matters by aligning your departmental goals with the enterprise's mission and business goals. Break down departmental goals into specific goals for each employee group.
    • Employee engagement, which results in better performance, is directly correlated with employees’ understanding what is expected of them on the job and with their performance reviews reflecting their actual contributions.
    • Shed unnecessary metrics in favor of a lean, holistic approach to performance measurement. Include quantitative, qualitative, and behavioral dimensions in each goal and set appropriate measures for each dimension to meet simple targets. This encourages well-rounded behaviors and discourages rogue behavior.
    • Get rid of the stick-and-carrot approach to management. Use performance measurement to inspire and engage employees, not punish them.

    Impact and Result

    • Learn about and leverage the McLean & Company framework and process to effective employee performance measurement setting.
    • Plan effective communications and successfully manage departmental employee performance measurement by accurately recording goals, measures, and requirements.
    • Find your way through the maze of employee performance management with confidence.

    Set Meaningful Employee Performance Measures Research & Tools

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

    1. Set Meaningful Employee Performance Measures Storyboard – This deck provides a comprehensive framework for setting, communicating, and reviewing employee performance measures that will drive business results

    This research will help you choose an appropriate measurement framework, set effective measures. and communicate and review your performance measures. Use Info-Tech's process to set meaningful measures that will inspire employees and drive performance.

    • Set Meaningful Employee Performance Measures Storyboard

    2. Employee Performance Measures Goals Cascade – A tool to assist you in turning your organizational goals into meaningful individual employee performance measures.

    This tool will help you set departmental goals based on organizational mission and business goals and choose appropriate measures and weightings for each goal. Use this template to plan a comprehensive employee measurement system.

    • Employee Performance Measures Goals Cascade

    3. Employee Performance Measures Template – A template for planning and tracking your departmental goals, employee performance measures, and reporting requirements.

    This tool will help you set departmental goals based on your organizational mission and business goals, choose appropriate measures and weightings for each goal, and visualize you progress toward set goals. Use this template to plan and implement a comprehensive employee measurement system from setting goals to communicating results.

    • Employee Performance Measures Template

    4. Feedback and Coaching Guide for Managers – A tool to guide you on how to coach your team members.

    Feedback and coaching will improve performance, increase employee engagement, and build stronger employee manager relationships. Giving feedback is an essential part of a manger's job and if done timely can help employees to correct their behavior before it becomes a bigger problem.

    • Feedback and Coaching Guide for Managers

    Infographic

    Workshop: Set Meaningful Employee Performance Measures

    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 Source and Set Goals

    The Purpose

    Ensure that individual goals are informed by business ones.

    Key Benefits Achieved

    Individuals understand how their goals contribute to organizational ones.

    Activities

    1.1 Understand how your department contributes to larger organizational goals.

    1.2 Determine the timelines you need to measure employees against.

    1.3 Set Business aligned department, team, and individual goals.

    Outputs

    Business-aligned department and team goals

    Business-aligned individual goals

    2 Design Measures

    The Purpose

    Create holistic performance measures.

    Key Benefits Achieved

    Holistic performance measures are created.

    Activities

    2.1 Choose your employee measurement framework: generic or individual.

    2.2 Define appropriate employee measures for preestablished goals.

    2.3 Determine employee measurement weightings to drive essential behaviors.

    Outputs

    Determined measurement framework

    Define employee measures.

    Determined weightings

    3 Communicate to Implement and Review

    The Purpose

    Learn how to communicate measures to stakeholders and review measures.

    Key Benefits Achieved

    Learn how to communicate to stakeholders and coach employees through blockers.

    Activities

    3.1 Learn how to communicate selected performance measures to stakeholders.

    3.2 How to coach employees though blockers.

    3.3 Reviewing and updating measures.

    Outputs

    Effective communication with stakeholders

    Coaching and feedback

    When to update

    4 Manager Training

    The Purpose

    Train managers in relevant areas.

    Key Benefits Achieved

    Training delivered to managers.

    Activities

    4.1 Deliver Build a Better Manager training to managers.

    4.2

    Outputs

    Manager training delivered

    Further reading

    Set Meaningful Employee Performance Measures

    Set holistic measures to inspire employee performance.

    EXECUTIVE BRIEF

    Set employees up for success by implementing performance measures that inspire great performance, not irrelevant reporting.

    Executive Summary

    Your Challenge

    In today’s competitive environment, managers must assess and inspire employee performance in order to assess the achievement of business goals.

    Despite the importance of performance measures, many leaders struggle with choosing appropriate metrics.

    Performance measures are often misaligned with the larger strategy, gamed by employees, or are too narrow to provide an accurate picture of employee achievements.

    Common Obstacles

    Managers who invest time in creating more effective performance measures will be rewarded with increased employee engagement and better employee performance.

    Too little time setting holistic employee measures often results in unintended behaviors and gaming of the system.

    Conversely, too much time setting employee measures will result in overreporting and underperforming employees.

    Info-Tech’s Approach

    Info-Tech helps managers translate organizational goals to employee measures. Communicating these to employees and other stakeholders will help managers keep better track of workforce productivity, maintain alignment with the organization’s business strategy, and improve overall results.

    Info-Tech Insight

    Performance measures are not about punishing bad performance, but inspiring higher performance to achieve business goals.

    Meaningful performance measures drive employee engagement...

    Clearly defined performance measures linked to specific goals bolster engagement by showing employees the importance of their contributions.

    Significant components of employee engagement are tied to employee performance measures.

    A diagram of employee engagement survey and their implications.

    Which, in turn, drives business success.

    Improved employee engagement is proven to improve employee performance. Setting meaningful measures can impact your bottom line.

    Impact of Engagement on Performance

    A diagram that shows Percent of Positive Responses Among Engaged vs. Disengaged
    Source: McLean & Company Employee Engagement Survey Jan 2020-Jan 2023; N=5,185 IT Employees; were either Engaged or Disengaged (Almost Engaged and Indifferent were not included)

    Engaged employees don’t just work harder, they deliver higher quality service and products.

    Engaged employees are significantly more likely to agree that they regularly accomplish more than what’s expected of them, choose to work extra hours to improve results, and take pride in the work they do.

    Without this sense of pride and ownership over the quality-of-service IT provides, IT departments are at serious risk of not being able to deliver quality service, on-time and on-budget.

    Create meaningful performance measures to drive employee engagement by helping employees understand how they contribute to the organization.

    Unfortunately, many employee measures are meaningless and fail to drive high-quality performance.

    Too many ineffective performance measures create more work for the manager rather than inspire employee performance. Determine if your measures are worth tracking – or if they are lacking.

    Meaningful performance measures are:

    Ineffective performance measures are:

    Clearly linked to organizational mission, values, and objectives.

    Based on a holistic understanding of employee performance.

    Relevant to organizational decision-making.

    Accepted by employees and managers.

    Easily understood by employees and managers.

    Valid: relevant to the role and goals and within an employee’s control.

    Reliable: consistently applied to assess different employees doing the same job.

    Difficult to track, update, and communicate.

    Easily gamed by managers or employees.

    Narrowly focused on targets rather than the quality of work.

    The cause of unintended outcomes or incentive for the wrong behaviors.

    Overly complex or elaborate.

    Easily manipulated due to reliance on simple calculations.

    Negotiable without taking into account business needs, leading to lower performance standards.

    Adopt a holistic approach to create meaningful performance measurement

    A diagram that shows a holistic approach to create meaningful performance measurement, including inputs, organizational costs, department goals, team goals, individual goals, and output.

    Info-Tech’s methodology to set the stage for more effective employee measures

    1. Source and Set Goals

    Phase Steps
    1.1 Create business-aligned department and team goals
    1.2 Create business-aligned individual goals

    Phase Outcomes
    Understand how your department contributes to larger organizational goals.
    Determine the timelines you need to measure employees against.
    Set business-aligned department, team, and individual goals.

    2. Design Measures

    Phase Steps
    1.1 Choose measurement framework
    1.2 Define employee measures
    1.3 Determine weightings

    Phase Outcomes
    Choose your employee measurement framework: generic or individual.
    Define appropriate employee measures for preestablished goals.
    Determine employee measurement weightings to drive essential behaviors.
    Ensure employee measures are communicated to the right stakeholders.

    3. Communicate to Implement and Review

    Phase Steps
    1.1 Communicate to stakeholders
    1.2 Coaching and feedback
    1.3 When to update

    Phase Outcomes
    Communicate selected performance measure to stakeholders.
    Learn how to coach employees though blockers.
    Understand how to review and when to update measures.

    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

    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 four to six calls over the course of two to four months.

    What does a typical GI on this topic look like?

    A diagram that shows Guided Implementation in 3 phases.

    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.

    Accelerate Your Automation Processes

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    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk

    Your organization needs to:

    • Define an automation suite for the business.
    • Specify the business goals for your automation suite.
    • Roadmap your automation modules to continually grow your automation platform.
    • Identify how an automation suite can help the organization improve.

    Our Advice

    Critical Insight

    Start small and do it right:

    • Assess if a particular solution works for your organization and continually invest in it if it does before moving onto the next solution.
    • Overwhelming your organization with a plethora of automation solutions can lead to a lack of management for each solution and decrease your overall return on investment.

    Impact and Result

    • Define your automation suite in terms of your business goals.
    • Take stock of what you have now: RPA, AIOps, chatbots.
    • Think about how to integrate and optimize what you have now, as well as roadmap your continual improvement.

    Accelerate Your Automation Processes Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to find out why your organization should accelerate your automation processes, review Info-Tech’s methodology, and understand the ways Info-Tech can support you in completing this project.

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

    1. Discover automation suite possibilities

    Take hold of your current state and assess where you would like to improve. See if adding a new automation module or investing in your current modules is the right decision.

    • Automation Suite Maturity Assessment Tool

    2. Chart your automation suite roadmap

    Build a high-level roadmap of where you want to bring your organization's automation suite in the future.

    • Automation Suite Roadmap Tool
    [infographic]

    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

    Create a Horizontally Optimized SDLC to Better Meet Business Demands

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    • Parent Category Name: Development
    • Parent Category Link: /development
    • While teams are used to optimizing their own respective areas of responsibility, there is lack of clarity on the overall core SDLC process resulting in applications being released that are of poor quality.
    • Software development teams are struggling to release on time and within budget.
    • Teams do not understand the overall process, are not communicating well, and traceability is hard to achieve.
    • Each team claims to be optimized yet the final deliverable doesn’t reflect the expected quality.

    Our Advice

    Critical Insight

    • Optimizing can make you worse. One cannot just optimize locally – the SDLC must be optimized in its entirety to ensure traceability across the process.
    • Separate process from framework.
      You don’t need to “Go Agile” or follow other industry jargon to effectively optimize your SDLC.
    • SDLC process improvement is ongoing.
      Start with your team’s current capabilities and optimize. You should set expectations that new improvements will always come in the future.

    Impact and Result

    • Use a systematic framework to bring out local optimizations as potential candidates for SDLC optimization.
    • Prioritize those candidates that will aid in optimizing the overall core SDLC process.
    • Create the necessary governance and control structures to sustain the changes.
    • Use Info-Tech tools and templates to accelerate your process optimization.

    Create a Horizontally Optimized SDLC to Better Meet Business Demands Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand Info-Tech's approach to SDLC optimization and why the SDLC must be optimized in its entirety to ensure traceability across the process.

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

    1. Document the current state of the SDLC

    This phase of the blueprint will help in understanding the organization's business priorities, documenting the current SDLC process, and identifing current SDLC challenges.

    • Create a Horizontally Optimized SDLC to Better Meet Business Demands – Phase 1: Document the Current State of the SDLC
    • SDLC Optimization Playbook

    2. Define root causes, determine optimization initiatives, and define target state

    This phase of the blueprint, will help with defining root causes, determining potential optimization initiatives, and defining the target state of the SDLC.

    • Create a Horizontally Optimized SDLC to Better Meet Business Demands – Phase 2: Define Root Causes, Determine Optimization Initiatives, and Define Target State

    3. Develop a rollout strategy for SDLC optimization

    This phase of the blueprint will help with prioritizing initiatives in order to develop a rollout strategy, roadmap, and communication plan for the SDLC optimization.

    • Create a Horizontally Optimized SDLC to Better Meet Business Demands – Phase 3: Develop a Rollout Strategy for SDLC Optimization
    • SDLC Communication Template
    [infographic]

    Workshop: Create a Horizontally Optimized SDLC to Better Meet Business Demands

    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 Document Your Current SDLC

    The Purpose

    Understand SDLC current state.

    Key Benefits Achieved

    Understanding of your current SDLC state and metrics to measure the success of your SDLC optimization initiative.

    Activities

    1.1 Document the key business objectives that your SDLC delivers upon.

    1.2 Document your current SDLC process using a SIPOC process map.

    1.3 Identify appropriate metrics in order to track the effectiveness of your SDLC optimization.

    1.4 Document the current state process flow of each SDLC phase.

    1.5 Document the control points and tools used within each phase.

    Outputs

    Documented business objectives

    Documented SIPOC process map

    Identified metrics to measure the effectiveness of your SDLC optimization

    Documented current state process flows of each SDLC phase

    Documented control points and tools used within each SDLC phase

    2 Assess Challenges and Define Root Causes

    The Purpose

    Understand current SDLC challenges and root causes.

    Key Benefits Achieved

    Understand the core areas of your SDLC that require optimization.

    Activities

    2.1 Identify the current challenges that exist within each SDLC phase.

    2.2 Determine the root cause of the challenges that exist within each SDLC phase.

    Outputs

    Identified current challenges

    Identified root causes of your SDLC challenges

    3 Determine Your SDLC Optimization Initiatives

    The Purpose

    Understand common best practices and the best possible optimization initiatives to help optimize your current SDLC.

    Key Benefits Achieved

    Understand the best ways to address your SDLC challenges.

    Activities

    3.1 Define optimization initiatives to address the challenges in each SDLC phase.

    Outputs

    Defined list of potential optimization initiatives to address SDLC challenges

    4 Define SDLC Target State

    The Purpose

    Define your SDLC target state while maintaining traceability across your overall SDLC process.

    Key Benefits Achieved

    Understand what will be required to reach your optimized SDLC.

    Activities

    4.1 Determine the target state of your SDLC.

    4.2 Determine the people, tools, and control points necessary to achieve your target state.

    4.3 Assess the traceability between phases to ensure a seamlessly optimized SDLC.

    Outputs

    Determined SDLC target state

    Identified people, processes, and tools necessary to achieve target state

    Completed traceability alignment map and prioritized list of initiatives

    5 Prioritize Initiatives and Develop Rollout Strategy

    The Purpose

    Define how you will reach your target state.

    Key Benefits Achieved

    Create a plan of action to achieve your desired target state.

    Activities

    5.1 Gain the full scope of effort required to implement your SDLC optimization initiatives.Gain the full scope of effort required to implement your SDLC optimization initiatives.

    5.2 Identify the enablers and blockers of your SDLC optimization.

    5.3 Define your SDLC optimization roadmap.

    5.4 Create a communication plan to share initiatives with the business.

    Outputs

    Level of effort required to implement your SDLC optimization initiatives

    Identified enablers and blockers of your SDLC optimization

    Defined optimization roadmap

    Completed communication plan to present your optimization strategy to stakeholders

    Develop Your Agile Approach for a Successful Transformation

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    • Parent Category Name: Development
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    • Your organization wants to shorten delivery time and improve quality by adopting Agile delivery methods.
    • You know that Agile transformations are complex and difficult to implement.
    • Your organization may have started using Agile, but with only limited success.
    • You want to maximize your Agile transformation’s chances of success.

    Our Advice

    Critical Insight

    • Agile transformations are more likely to be successful when the entire organization understands Agile fundamentals, principles, and practices; the “different way of working” that Agile requires; and the role each person plays in its success.

    Impact and Result

    • Understand the “what and why” of Agile.
    • Identify your organization’s biggest Agile pain points.
    • Gain a deeper understanding of Agile principles and practices, and apply these to your Agile pain points.
    • Create a list of action items to address your organization’s Agile challenges.

    Develop Your Agile Approach for a Successful Transformation Research & Tools

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

    1. Identify common Agile challenges

    Identify your organization's biggest Agile pain points so you can focus attention on those topics that are impacting your Agile capabilities the most.

    • Develop Your Agile Approach for a Successful Transformation – Phases 1-2

    2. Establish a solid foundation for Agile delivery

    Ensure that your organization has a solid understanding of Agile principles and practices to help ensure your Agile transformation is successful. Understand Agile's different way of working and identify the steps your organization will need to take to move from traditional Waterfall delivery to Agile.

    • Roadmap for Transition to Agile

    3. Backlog Management Module: Manage your backlog effectively

    The Backlog Management Module helps teams develop a better understanding of backlog management and user story decomposition. Improve your backlog quality by implementing a three-tiered backlog with quality filters.

    4. Scrum Simulation Module: Simulate effective Scrum practices

    The Scrum Simulation Module helps teams develop a better understanding of Scrum practices and the behavioral blockers affecting Agile teams and organizational culture. This module features two interactive simulations to encourage a deeper understanding of good Scrum practices and Agile principles.

    • Scrum Simulation Exercise (Online Banking App)

    5. Estimation Module: Improve product backlog item estimation

    The Estimation Module helps teams develop a better understanding of Agile estimation practices and how to apply them. Teams learn how Agile estimation and reconciliation provide reliable planning estimates.

    6. Product Owner Module: Establish an Effective Product Owner Role

    The Product Owner Module helps teams understand product management fundamentals and a deeper understanding of the product owner role. Teams define their product management terminology, create quality filters for PBIs moving through the backlog, and develop their product roadmap approach for key audiences.

    7. Product Roadmapping Module: Create effective product roadmaps

    The Product Roadmapping Module helps teams understand product road mapping fundamentals. Teams learn to effectively use the six tools of Product Roadmapping.

    [infographic]

    Further reading

    Develop Your Agile Approach for a Successful Transformation

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

    Analyst Perspective

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

    Pictures of Alex Ciraco and Hans Eckman

    Alex Ciraco and Hans Eckman
    Application Practice
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Your organization wants to shorten delivery time and improve quality by adopting Agile delivery methods.
    • You know that Agile transformations are complex and difficult to implement.
    • Your organization may have started using Agile, but with only limited success.
    • You want to maximize your Agile transformation's chances of success.

    Common Obstacles

    • People seem to have different, conflicting, or inadequate knowledge of Agile principles and practices.
    • Your organization is not seeing the full benefits that Agile promises, and project teams aren't sure they are "doing Agile right."
    • Confusion and misinformation about Agile is commonplace in your organization.

    Info-Tech's Approach

    • Use our Common Agile Challenges Survey to identify your organization's Agile pain points.
    • Leverage this blueprint to level-set the organization on Agile fundamentals.
    • Address your survey's biggest Agile pain points to see immediate benefits and improvements in the way you practice Agile in your organization.

    Info-Tech Insight

    Agile transformations are more likely to be successful when the entire organization genuinely understands Agile fundamentals, principles and practices, as well as the role each person plays in its success. Focus on developing a solid understanding of Agile practices so your organization can "Be Agile", not just "Do Agile".

    Info-Tech's methodology

    1. Identify Common Agile Challenges

    2. Establish a Solid Foundation for Agile Delivery

    3. Agile Modules

    Phase Steps

    1.1 Identify common agile challenges

    2.1 Align teams with Agile fundamentals

    2.2 Interpret your common Agile challenges survey results

    2.3 (Optional) Move stepwise to iterative Agile delivery

    2.4 Identify insights and team feedback

    • Backlog Management Module:
      Manage Your Backlog Effectively
    • Scrum Simulation Module:
      Simulate Effective Scrum Practices
    • Estimation Module:
      Improve Product Backlog Item Estimation
    • Product Owner Module:
      Establish an Effective Product Owner Role
    • Product Roadmapping Module: Create Effective Product Roadmaps
    Phase Outcomes

    Understand common challenges associated with Agile transformations and identify your organization's struggles.

    Establish and apply a uniform understanding of Agile fundamentals and principles.

    Create a roadmap for your transition to Agile delivery and prioritized challenges.

    Foster deeper understanding of Agile principles and practices to resolve pain points.

    Develop your agile approach for a successful transformation

    Everyone's Agile journey is not the same.

    agile journey for a successful transformation

    Application delivery continues to fall short

    78% of IT professionals believe the business is "usually" or "always" out of sync with project requirements.
    Source: "10 Ways Requirements Can Sabotage Your Projects Right From the Start"

    Only 34% of software is rated as both important and effective by users.

    Source: Info-Tech's CIO Business Vision Diagnostic

    Agile DevOps is a progression of cultural, behavioral, and process changes. It takes time.

    An image of the trail to climb Mount Everest, with the camps replaced by the main steps of the agile approach to reaching Nirvana.

    Enhancements and maintenance are misunderstood

    an image showing the relationship between enhancements and maintenance.

    Source: "IEEE Transactions on Software Engineering"

    Why Agile/DevOps? It's about time to value

    Leaders and stakeholders are frustrated with long lead times to implement changes. Agile/DevOps promotes smaller, more frequent releases to start earning value sooner.

    A frequency graph showing the Time to delivering value depends on Frequency of Releases

    Time to delivering value depends on Frequency of Releases

    Embrace change, don't "scope creep" it

    64% of IT professionals adopt Agile to enhance their ability to manage changing priorities.

    71% of IT professionals found their ability to manage changing priorities improved after implementing Agile.

    Info-Tech Insight

    Traditional delivery processes work on the assumption that product requirements will remain constant throughout the SDLC. This results in delayed delivery of product enhancements which are critical to maintaining a positive customer experience.

    Adapted from: "12th Annual State of Agile Report"

    Agile's four core values

    "…while there is value in the items on the right, we value the items on the left more."
    – Source: "The Agile Manifesto"

    We value. . .

    Individuals and Interactions

    OVER

    Processes and Tools

    Working Software

    OVER

    Comprehensive Documentation

    Customer Collaboration

    OVER

    Contract Negotiation

    Responding to Change

    OVER

    Following a Plan

    Being Agile

    OVER

    Being Prescriptive

    Harness Agile's cultural advantages

    Collaboration

    • Team members leverage all their experience working toward a common goal.

    Iterations

    • Cycles provide opportunities for more product feedback.

    Continual Improvement

    • Self-managing teams continually improve their approach for the next iteration.

    Prioritization

    • The most important needs are addressed in the current iteration.

    Compare Waterfall and Agile – the "what" (how are they different?)

    This is an example of the Waterfall Approach.

    A "One and Done" Approach (Planning & Documentation Based)
    Elapsed time to deliver any value: Months to years

    This is an example of the Agile Approach

    An "Iterative" Approach (Empirical/Evidence Based)
    Elapsed time to deliver any value: Weeks

    Be aware of common myths around Agile

    1. … solve development and communication issues.
    2. … ensure you will finish requirements faster.
    3. … mean you don't need planning and documentation.

    "Although Agile methods are increasingly being adopted in globally distributed settings, there is no panacea for success."
    – "Negotiating Common Ground in Distributed Agile Development: A Case Study Perspective."

    "Without proper planning, organizations can start throwing more resources at the work which spirals into the classic Waterfall issues of managing by schedule."
    – Kristen Morton, Associate Implementation Architect,
    OneShield Inc., Info-Tech Interview

    Agile* SDLC

    With shared ownership instead of silos, we can deliver value at the end of every iteration (aka sprint)

    An image of the Agile SDLC Approach.

    * There are many Agile methodologies to choose from, but Scrum is by far the most widely used (and is shown above).

    Key Elements of the Agile SDLC

    • You are not "one-and-done." There are many short iterations with constant feedback.
    • There is an empowered product owner. This is a single authoritative voice that represents stakeholders.
    • There is a fluid product backlog. This enables prioritization of requirements "just-in-time."
    • Cross-functional, self-managing team. This team makes commitments and is empowered by the organization to do so.
    • Working, tested code at the end of each sprint. Value becomes more deterministic along sprint boundaries.
    • Demonstrate to stakeholders. Allow them to see and use the functionality and provide necessary feedback.
    • Feedback is being continuously injected back into the product backlog. This shapes the future of the solution.
    • Continuous improvement through sprint retrospectives.
    • "Internally Governed" when done right (the virtuous cycle of sprint-demo-feedback).

    A backlog stores and organizes PBIs at various stages of readiness

    A well-formed backlog can be thought of as a DEEP backlog:

    • Detailed Appropriately: Product backlog items (PBIs) are broken down and refined as necessary.
    • Emergent: The backlog grows and evolves over time as PBIs are added and removed.
    • Estimated: The effort a PBI requires is estimated at each tier.
    • Prioritized: The PBIs value and priority are determined at each tier.

    (Perforce, 2018)

    An image showing the Ideas; Qualified; Ready; funnel leading to the sprint approach.

    Outline the criteria to proceed to the next tier via quality filters

    Expand the concepts of defining "ready" and "done" to include the other stages of a PBIs journey through product planning.

    An image showing the approach you will use to Outline the criteria to proceed to the next tier via quality filters

    Info-Tech Insight: A quality filter ensures quality is met and teams are armed with the right information to work more efficiently and improve throughput.

    Deliverables

    Many steps in this blueprint are accompanied by supporting deliverables to help you accomplish your goals.

    Common Agile Challenges Survey
    Survey the organization to understand which of the common Agile challenges the organization is experiencing

    A screenshot from Common Agile Challenges Survey

    Roadmap for Transition to Agile
    Identify steps you will take to move your organization toward Agile delivery

    A screenshot from Roadmap for Transition to Agile

    Blueprint benefits

    IT Benefits

    Business Benefits

    • Consistent Agile delivery teams.
    • Delivery prioritized with business needs and committed work is achievable.
    • Improved ability to adjust future delivery cycles to meet changing business, market, and end-user needs.
    • Increased alignment and stability of resources with products and technology areas.
    • Reduction in the mean time to delivery of product backlog items.
    • Reduction in technical debt.
    • Better delivery alignment with enterprise goals, vision, and outcomes.
    • Improved coordination with product owners and stakeholders.
    • Quantifiable value realization following each release.
    • Product decisions made at the right time and with the right input.
    • Improved team morale and productivity.
    • Improved operational efficiency and process automation.
    • Increased employee retention and quality of new hires.
    • Reduction in accumulated project risk.

    Measure the value of this blueprint

    Implementing quality and consistent Agile practices improves SDLC metrics and reduces time to value.

    • Use Select and Use SDLC Metrics Effectivelyto track and measure the impact of Agile delivery. For example:
      • Reduction in PBI wait time
      • Improve throughput
      • Reduction in defects and defect severity
    • Phase 1 helps you prepare and send your Common Agile Challenges Survey.
    • Phase 2 builds a transformation plan aligned with your top pain points.

    Align Agile coaching and practices to address your key pain points identified in the Common Agile Challenges Survey.

    A screenshot from Common Agile Challenges Survey

    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?

    This is an image of the eight calls which will take place over phases 1-3.

    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 8 calls over the course of 1 to 2 months.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Phases 1-2
    1.5 - 3.0 days estimated

    Backlog Management
    0.5 - 1.0 days estimated

    Scrum Simulation
    1.25 - 2.25 days estimated

    Estimation
    1.0 - 1.25 days estimated

    Product Owner
    1.0 - 1.75 days estimated

    Product Roadmapping
    0.5 - 1.0 days estimated

    Establish a Solid Foundation for Agile Delivery

    Define the
    IT Target State

    Assess the IT
    Current State

    Bridge the Gap and
    Create the Strategy

    Establish an Effective Product Owner Role

    Create Effective Product Roadmaps

    Activities

    1.1 Gather Agile challenges and gaps
    2.1 Align teams with Agile fundamentals
    2.2 Interpret your common Agile challenges survey results
    2.3 (Optional) Move stepwise to iterative Agile delivery
    2.4 Identify insights and team feedback

    1. User stories and the art of decomposition
    2. Effective backlog management and refinement
    3. Identify insights and team feedback
    1. Scrum sprint planning and retrospective simulation
    2. Pass the balls – sprint velocity game
    1. Improve product backlog item estimation
    2. Agile estimation fundamentals
    3. Understand the wisdom of crowds
    4. Identify insights and team feedback
    1. Understand product management fundamentals
    2. The critical role of the product owner
    3. Manage effective product backlogs and roadmaps
    4. Identify insights and team feedback
    1. Identify your product roadmapping pains
    2. The six "tools" of product roadmapping
    3. Product roadmapping exercise

    Deliverables

    1. Identify your organization's biggest Agile pain points.
    2. Establish common Agile foundations.
    3. Prioritize support for a better Agile delivery approach.
    4. Plan to move stepwise to iterative Agile delivery.
    1. A better understanding of backlog management and user story decomposition.
    1. Scrum sprint planning and retrospective simulation
    2. Pass the balls – sprint velocity game
    1. Improve product backlog item estimation
    2. Agile estimation fundamentals
    3. Understand the wisdom of crowds
    4. Identify insights and team feedback
    1. Understand product management fundamentals
    2. The critical role of the product owner
    3. Manage effective product backlogs and roadmaps
    4. Identify insights and team feedback
    1. Understand product vs. project orientation.
    2. Understand product roadmapping fundamentals.

    Agile Modules

    For additional assistance planning your workshop, please refer to the facilitation planning tool in the appendix.

    Related Info-Tech Research

    Mentoring for Agile Teams
    Get practical help and guidance on your Agile transformation journey.

    Implement DevOps Practices That Work
    Streamline business value delivery through the strategic adoption of DevOps practices.

    Deliver on Your Digital Product Vision
    Build a product vision your organization can take from strategy through execution.

    Deliver Digital Products at Scale
    Deliver value at the scale of your organization through defining enterprise product families.

    Phase 1

    Phase 1

    Phase 2

    Agile Modules

    1.1 Identify common Agile challenges

    2.1 Align teams with Agile fundamentals

    2.2 Interpret your common Agile challenges survey results

    2.3 (Optional) Move stepwise to iterative Agile delivery

    2.4 Identify insights and team feedback

    • Backlog Management Module: Manage Your Backlog Effectively
    • Scrum Simulation Module: Simulate Effective Scrum Practices
    • Estimation Module: Improve Product Backlog Item Estimation
    • Product Owner Module: Establish an Effective Product Owner Role
    • Product Roadmapping: Create Effective Product Roadmaps

    This phase will walk you through the following activities:

    • Decide who will participate in the Common Agile Challenges Survey
    • Compile the results of the survey to identify your organization's biggest pain points with Agile

    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Develop Your Agile Approach for a Successful Transformation

    Step 1.1

    Identify common Agile challenges

    Activities

    1.1 Distribute Common Agile Challenges Survey and collect results

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of your organization's Agile pain points.

    Focus Agile support where it is most needed

    A screenshot from Common Agile Challenges Survey

    Info-Tech Insight

    There isn't one approach that cures all the problems your Agile teams are facing. First, understand these common challenges, then develop a plan to address the root causes.

    Use Info-Tech's Common Agile Challenges Survey to determine common issues and what problems individual teams are facing. Use the Agile modules and supporting guides in this blueprint to provide targeted support on what matters most.

    Exercise 1.1.1 Distribute Common Agile Challenges Survey

    30 minutes

    1. Download Survey Template: Info-Tech Common Agile Challenges Survey template.
    2. Create your own local copy of the Common Agile Challenges Survey by using the template. The Common Agile Challenges Survey will help you to identify which of the many common Agile-related challenges your organization may be facing.
    3. Decide on the teams/participants who will be completing the survey. It is best to distribute the survey broadly across the organization and include participants from several teams and roles.
    4. Copy the link for your local survey and distribute it for participants to complete (we suggest giving them one week to complete it).
    5. Collect the consolidated survey results in preparation for the next phase.
    6. NOTE: Using this survey template requires having access to Microsoft Forms. If you do not have access to Microsoft Forms, an Info-Tech analyst can perform the survey for you.

    Output

    • Your organization's biggest Agile pain points

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Record the results in the Roadmap for Transition to Agile Template

    Phase 2

    Establish a Solid Foundation for Agile Delivery

    Phase 1

    Phase 2

    Agile Modules

    1.1 Identify common Agile challenges

    2.1 Align teams with Agile fundamentals

    2.2 Interpret your common Agile challenges survey results

    2.3 (Optional) Move stepwise to iterative Agile delivery

    2.4 Identify insights and team feedback

    • Backlog Management Module: Manage Your Backlog Effectively
    • Scrum Simulation Module: Simulate Effective Scrum Practices
    • Estimation Module: Improve Product Backlog Item Estimation
    • Product Owner Module: Establish an Effective Product Owner Role
    • Product Roadmapping: Create Effective Product Roadmaps

    This phase will walk you through the following activities:

    • Gain a fundamental understanding of Agile
    • Understand why becoming Agile is hard
    • Identify steps needed to become more Agile
    • Understand your biggest Agile pain points

    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Step 2.1

    Align teams with Agile fundamentals

    Activities

    2.1.1 Share what Agile means to you
    2.1.2 (Optional) Contrast two delivery teams
    2.1.3 (Optional) Dissect the Agilist's Oath
    2.1.4 (Optional) Create your prototype definitions of ready
    2.1.5 (Optional) Create your prototype definitions of done
    2.1.6 Identify the challenges of implementing agile in your organization

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of what Agile is and why we do it.

    Exercise 2.1.1 Share what Agile means to you

    30-60 minutes

    1. What is Agile? Why do we do it?
    2. As a group, discuss and capture your thoughts on:
      1. What is Agile (its characteristics, practices, differences from alternatives, etc.)?
      2. Why do we do it (its drivers, benefits, advantages, etc.)?
    3. Capture your findings in the table below:

    What is Agile?

    Why do we do it?

    (e.g. Agile mindset, principles, and practices)

    (e.g. benefits)

    Output

    • Your current understanding of Agile and its benefits

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Why Agile/DevOps? It's about time to value

    Leaders and stakeholders are frustrated with long lead times to implement changes. Agile/DevOps promotes smaller, more frequent releases to start earning value sooner.

    A graph demonstrating the increased frequency of release expected over time, from 1960 - present

    Time to delivering value depends on frequency of releases.
    Source: 5Q Partners

    The pandemic accelerated the speed of digital transformation

    With the massive disruption preventing people from gathering, businesses shifted to digital interactions with customers.

    December 2019 - 36%; acceleration of 3 years; July 2020 - 58%.

    Companies also accelerated the pace of creating digital or digitally enhanced products and services.

    December 2019 - 35%; acceleration of 3 years; July 2020 - 55%.

    (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)

    What does "elite" DevOps look like?

    This is an image of an annotated table showing what elite devops looks like.

    Where are you now?
    Where do You Want to Be?

    * Google Cloud/Accelerate State of DevOps 2021

    Realize and sustain value with DevOps

    Businesses with elite DevOps practices…

    973x more frequent faster lead time code deployments from commit to deploy, 3x 6570x lower change failure rate faster time to recover.

    Waterfall vs. Agile – the "what" (How are they different?)

    This is an example of the Waterfall Approach.

    A "One and Done" Approach (Planning & Documentation Based)
    Elapsed time to deliver any value: Months to years

    This is an example of the Agile Approach

    An "Iterative" Approach (Empirical/Evidence Based)
    Elapsed time to deliver any value: Weeks

    (Optional) Exercise 2.1.2 A tale of two teams

    Discussion (5-10 minutes)

    As a group, discuss how these teams differ

    Team 1:
    An image of the business analyst passing the requirements baton to the architect runner.

    Team 2:
    An image of team of soldiers carrying a heavy log up a beach

    Image Credit: DVIDS

    Discuss differences between these teams:
    • How are they different?
    • How would you coach/train/manage/lead?
    • How does team members' behavior differ?
    • How would you measure each team?
    What would have to happen at your organization to make working like this possible?

    Output

    • How your organization can support Agile behavior and mindset

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Dissect the Agilist's Oath

    Read and consider each element of the oath.

    • As a member of this Scrum team, I recognize that we are all equally and collectively responsible for the success of this project.
    • Success is defined as achieving the best possible outcome for our stakeholders given the constraints of time, money, and circumstances we will face.
    • We will achieve this by working collaboratively with our product owner to regularly deliver high-quality, working, tested code that can be demonstrated, and we will adjust our path forward based on the feedback we receive.
    • I will holistically embrace the concept of "good enough for now" into my work practices, because I know that waiting for the best/perfect solution does not yield optimal results.
    • Collectively, we will work to holistically minimize risk for the project across all phases and disciplines.
    • My primary role will be _____ [PO, SM, BA, Dev, Arch, Test, Ops, etc.], but I will contribute wherever and however best serves the current needs of the project.
    • I recognize that working in Agile/Scrum is not an excuse to ignore important things like adequate design and documentation. Collectively, we will ensure that these things are completed incrementally to a level of detail and quality which adequately serves the organization and stakeholders.
    • We are a team, and we will succeed or fail as one.

    Exercise 2.1.3 (Optional) Dissect the Agilist's Oath

    30 minutes

    1. Each bullet point in the Agilist's Oath is chosen to convey one of eight key messages about Agile practices and the mindset change that's required by everyone involved.
    2. As a group, discuss the "message" for each bullet point in the Agilist's Oath. Then identify which of them would be "easy" and "hard" to achieve in your organization.
    • As a member of this Scrum team, I recognize that we are all equally and collectively responsible for the success of this project.
    • Success is defined as achieving the best possible outcome for our stakeholders given the constraints of time, money, and circumstances we will face.
    • We will achieve this by working collaboratively with our product owner to regularly deliver high-quality, working, tested code that can be demonstrated, and we will adjust our path forward based on the feedback we receive.
    • I will holistically embrace the concept of "good enough for now" into my work practices, because I know that waiting for the best/perfect solution does not yield optimal results.
    • Collectively, we will work to holistically minimize risk for the project across all phases and disciplines.
    • My primary role will be _____ [PO, SM, BA, Dev, Arch, Test, Ops, etc.], but I will contribute wherever and however best serves the current needs of the project.
    • I recognize that working in Agile/Scrum is not an excuse to ignore important things like adequate design and documentation. Collectively, we will ensure that these things are completed incrementally to a level of detail and quality which adequately serves the organization and stakeholders.
    • We are a team, and we will succeed or fail as one.

    Which aspects of the Agilist's Oath are "easy" in your org?

    Which aspects of the Agilist's Oath are "hard" in your org?

    Output

    • How your organization can support Agile behavior and mindset

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Be aware of common myths around Agile

    Agile does not . . . .

    1. … solve development and communication issues.
    2. … ensure you will finish requirements faster.
    3. … mean you don't need planning and documentation.

    "Although Agile methods are increasingly being adopted in globally distributed settings, there is no panacea for success."
    – "Negotiating Common Ground in Distributed Agile Development: A Case Study Perspective."

    "Without proper planning, organizations can start throwing more resources at the work which spirals into the classic Waterfall issues of managing by schedule."
    – Kristen Morton, Associate Implementation Architect,
    OneShield Inc., Info-Tech Interview

    Agile's four core values

    "…while there is value in the items on the right, we value the items on the left more."
    – Source: "The Agile Manifesto"

    We value. . .

    Individuals and Interactions

    OVER

    Processes and Tools

    Working Software

    OVER

    Comprehensive Documentation

    Customer Collaboration

    OVER

    Contract Negotiation

    Responding to Change

    OVER

    Following a Plan

    Being Agile

    OVER

    Being Prescriptive

    Consider the traditional/Waterfall SDLC

    With siloes and handoffs, valuable product is delivered only at the end of an extended project lifecycle.

    This is an image of the Traditional Waterfall SDLC approach

    View additional transition models in the appendix

    Agile* SDLC

    With shared ownership instead of silos, we can deliver value at the end of every iteration (aka sprint)

    Key Elements of the Agile SDLC

    • You are not "one-and-done". There are many short iterations with constant feedback.
    • There is an empowered product owner. This is a single authoritative voice that represents stakeholders.
    • There is a fluid product backlog. This enables prioritization of requirements "just-in-time"
    • Cross-functional, self-managing team. This team makes commitments and is empowered by the organization to do so.
    • Working, tested code at the end of each sprint. Value becomes more deterministic along sprint boundaries.
    • Demonstrate to stakeholders. Allow them to see and use the functionality and provide necessary feedback.
    • Feedback is being continuously injected back into the product backlog. This shapes the future of the solution.
    • Continuous improvement through sprint retrospectives.
    • "Internally Governed" when done right (the virtuous cycle of sprint-demo-feedback).

    This is a picture of the Agile SDLC approach.

    * There are many Agile methodologies to choose from, but Scrum (shown above) is by far the most widely used.

    Scrum roles and responsibilities

    Product Owner

    Scrum Master

    Team Members

    Responsible

    • For identifying the product features and their importance in the final deliverable.
    • For refining and reprioritizing the backlog that identifies which features will be delivered in the next sprint based on business importance.
    • For clearing blockers and escalations when necessary.
    • For leading scrums, retrospectives, sprint reviews, and demonstrations.
    • For team building and resolving team conflicts.
    • For creating, testing, deploying, and supporting deliverables and valuable features.
    • For self-managing. There is no project manager assigning tasks to each team member.

    Accountable

    • For delivering valuable features to stakeholders.
    • For ensuring communication throughout development.
    • For ensuring high-quality deliverables for the product owner.

    Consulted

    • By the team through collaboration, rather than contract negotiation.
    • By the product owner on resolution of risks.
    • By the team on suggestions for improvement.
    • By the scrum master and product owner during sprint planning to determine level of complexity of tasks.

    Informed

    • On the progress of the current sprint.
    • By the team on work completed during the current sprint.
    • On direction of the business and current priorities.

    Scrum ceremonies

    Are any of these challenges for your organization? Done When:

    Project Backlog Refinement (PO & SM): Prepare user stories to be used in the next two to three future sprints. User stories are broken down into small manageable pieces of work that should not span sprints. If a user story is too big for a sprint, it is broken down further here. The estimation of the user story is examined, as well as the acceptance criteria, and each is adjusted as necessary from the Agile team members' input.

    Regularly over the project's lifespan

    Sprint Planning (PO, SM & Delivery Team): Discuss the work for the upcoming sprint with the business. Establish a clear understanding of the expectations of the team and the sprint. The product owner decides if priority and content of the user stories is still accurate. The development team decides what they believe can be completed in the sprint, using the user stories, in priority order, refined in backlog refinement.

    At/before the start of each sprint

    Daily Stand-Up (SM & Delivery Team): Coordinate the team to communicate progress and identify any roadblocks as quickly as possible. This meeting should be kept to fifteen minutes. Longer conversations are tabled for a separate meeting. These are called "stand-ups" because attendees should stay standing for the duration, which helps keep the meeting short and focused. The questions each team member should answer at each meeting: What did I do since last stand-up? What will I do before the next stand-up? Do I have any roadblocks?

    Every day during the sprint

    Sprint Demo (PO, SM, Delivery Team & Stakeholders): Review and demonstrate the work completed in the sprint with the business (demonstrate working and tested code which was developed during the sprint and gather stakeholder feedback).

    At the end of each sprint

    Sprint Retrospective (SM & Delivery Team & PO): Discuss how the sprint worked to determine if anything can be changed to improve team efficiency. The intent of this meeting is not to find/place blame for things that went wrong, but instead to find ways to avoid/alleviate pain points.

    At the end of each sprint

    Sample delivery sprint calendar

    The following calendar illustrates a two-week Scrum cadence (including ceremonies). This diagram is for illustrative purposes only. The length of the sprint and timing of ceremonies may differ from delivery team to delivery team based on their needs and schedules.

    An image of a sample sprint delivery calendar

    Sample delivery sprint calendar

    The following calendar illustrates a three-week Scrum cadence (including ceremonies). This diagram is for illustrative purposes only. The length of the sprint and timing of ceremonies may differ from delivery team to delivery team based on their needs and schedules.

    An image of a sample sprint delivery calendar

    Ensure your teams have the right information

    Implement and enforce your definition of ready at each stage of planning. Ensure your teams understand the required tasks by clarifying the definition of done.*

    Ready

    Done
    • The request has a defined problem, and the value is understood.
    • The request is documented, and the owner is identified.
    • Business and IT roles are committed to participating in estimation and planning activities.
    • Estimates and plans are made and validated with IT teams and business representatives.
    • Stakeholders and decision makers accept the estimates and plans as well as the related risks.
    • Estimates and plans are documented and slated for future review.

    * Note that your definitions of ready and done may vary from project to project, and they should be decided on collectively by the delivery team at the beginning of the project (part of setting their "norms") and updated if/when needed.

    Exercise 2.1.4 (Optional) Create definition of ready and done for an oil change

    10-15 minutes

    Step 1:

    1. As a group, create a definition of ready and done for doing an oil change (this will help you to understand the nature and value of a definition of ready and done using a relatable example):

    Definition of Ready

    Checklist:

    Definition of Done

    Checklist – For each user story:

    The checklist of things that must be true/done to begin the oil change.

    • We have the customer's car and keys
    • We know which grade of oil the customer wants

    The checklist of things that must be true/done at the end of the oil change.

    • The oil has been changed
    • A reminder sticker has been placed on windshield

    Exercise 2.1.4 (Optional) Create your prototype definitions of ready

    30-60 minutes

    Step 2:

    1. As a group, review the two sample definitions of ready below and select the one you consider to be the best starting point for your prototype definition of ready.

    Definition of Ready SAMPLE 1:

    Checklist – For each user story:

    • Technical and business risks are identified.
    • Resources are available for development.
    • Story has been assigned to a sprint/iteration.
    • Organizational business value is defined.
    • A specific user has been identified.
    • Stakeholders and needs defined.
    • Process impacts are identified.
    • Data needs are defined.
    • Business rules and non-functional requirements are identified.
    • Acceptance criteria are ready.
    • UI design work is ready.
    • Story has been traced to the project, epic, and sprint goal.

    Definition of Ready SAMPLE 2:

    Checklist – For each user story:

    • The value of story to the user is clearly indicated.
    • The acceptance criteria for story have been clearly described.
    • User story dependencies identified.
    • User story sized by delivery team.
    • Scrum team accepts user experience artifacts.
    • Performance criteria identified, where appropriate.
    • Person who will accept the user story is identified.
    • The team knows how to demo the story.

    Output

    • Prototype definitions of ready and done for your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.1.4 (Optional) Create your prototype definitions of ready

    30-60 minutes

    Step 3:

    1. As a group, using the selected sample as your starting point, decide what changes need to be made (keep/add/delete/modify):

    Definition of Ready Checklist – For each user story:

    Disposition

    The value of story to the user is clearly indicated.

    Keep as is

    The acceptance criteria for story have been clearly described. Keep as is
    User story dependencies identified. Modify to: "Story has been traced to the project, epic, and sprint goal"
    User story sized by delivery team. Modify to: "User Stories have been sized by the Delivery team using Story Points"
    Scrum team accepts user experience artifacts. Keep as is
    Performance criteria identified, where appropriate. Keep as is
    Person who will accept the user story is identified.

    Delete

    The team knows how to demo the story. Keep as is

    Add: "Any performance related criteria have been identified where appropriate"

    Add: "Any data model related changes have been identified where needed"

    Output

    • Prototype definitions of ready and done for your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.1.4 (Optional) Create your prototype definitions of ready

    30-60 minutes

    Step 4:

    1. As a group, capture and agree on your prototype definition of ready*:

    Definition of Ready

    Checklist – For each user story:

    User stories and related requirements contain clear descriptions of what is expected of a given functionality. Business value is identified.

    • The value of the story to the user is clearly indicated.
    • The acceptance criteria for the story have been clearly described.
    • Story has been traced to the project, epic, and sprint goal.
    • User stories have been sized by the delivery team using story points.
    • Scrum team accepts user experience artifacts.
    • Performance criteria identified, where appropriate.
    • The team knows how to demo the story.
    • Any performance-related criteria have been identified where appropriate.
    • Any data-model-related changes have been identified where needed.

    Record the results in the Roadmap for Transition to Agile Template

    * This checklist helps Agile teams determine if the stories in their backlog are ready for sprint planning. As your team gains experience with Agile, tailor this list to your needs and follow it until the practice becomes second nature.

    Output

    • Prototype definitions of ready and done for your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.1.5 (Optional) Create your prototype definitions of done

    30-60 minutes

    Step 5:

    1. As a group, review the two sample definitions of ready below and select the one you consider to be the best starting point for your prototype definition of ready:

    SAMPLE 1:

    Definition of Done Checklist – For each user story:

    • Design complete
    • Code compiles
    • Static code analysis has been performed and passed
    • Peer reviewed with coding standards passed
    • Code merging completed
    • Unit tests and smoke tests are done/functional (preferably automated)
    • Meets the steps identified in the user story
    • Unit & QA test passed
    • Usability testing completed
    • Passes functionality testing including security testing
    • Data validation has been completed
    • Ready to be released to the next stage

    SAMPLE 2:

    Definition of Done Checklist – For each user story:

    • Work was completed in a way that a professional would say they are satisfied with their work.
    • Work has been seen by multiple team members.
    • Work meets the criteria of satisfaction described by the customer.
    • The work is part of a package that will be shared with the customer as soon as possible.
    • The work and any learnings from doing the work have been documented.
    • Completion of the work is known by and visible to all team members.
    • The work has passed all quality, security, and completeness checks as defined by the team.

    Output

    • Prototype definitions of ready and done for your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.1.4 (Optional) Create your prototype definitions of done

    30-60 minutes

    Step 6:

    1. As a group, using the selected sample as your starting point, decide what changes need to be made (keep/add/delete/modify):

    Definition of Ready Checklist – For each user story:

    Disposition

    • Work was completed in a way that a professional would say they are satisfied with their work.
    Keep as is
    • Work has been seen by multiple team members.
    Delete
    • Work meets the criteria of satisfaction described by the customer.
    Modify to: "All acceptance criteria for the user story have been met"
    • The work is a part of a package that will be shared with the customer as soon as possible.
    Modify to: "The user story is ready to be demonstrated to Stakeholders"
    • The work and any learnings from doing the work has been documented.
    Keep as is
    • Completion of the work is known by and visible to all team members.
    Keep as is
    • The work has passed all quality, security, and completeness checks as defined by the team.
    Modify to: "Unit, smoke and regression testing has been performed (preferably automated), all tests were passed"
    Add: "Any performance related criteria associated with the story have been met"

    Output

    • Prototype definitions of ready and done for your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.1.4 (Optional) Create your prototype definitions of done

    30-60 minutes

    Step 7:

    1. As a group, capture and agree on your prototype Definition of Done*:

    Definition of Done

    Checklist – For each user story:

    When the user story is accepted by the product owner and is ready to be released.

    • Work was completed in a way that a professional would say they are satisfied with their work.
    • All acceptance criteria for the user story have been met.
    • The user story is ready to be demonstrated to stakeholders.
    • The work and any learnings from doing the work have been documented.
    • Completion of the work is known by and visible to all team members.
    • Unit, smoke, and regression testing has been performed (preferably automated), and all tests were passed.
    • Any performance-related criteria associated with the story have been met.

    Record the results in the Roadmap for Transition to Agile Template

    * This checklist helps Agile teams determine if the stories in their backlog are ready for sprint planning. As your team gains experience with Agile, tailor this list to your needs and follow it until the practice becomes second nature.

    Output

    • Prototype definitions of ready and done for your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Getting to "Agile DevOps Nirvana" is hard, but it's worth it.

    An image of the trail to climb Mount Everest, from camps 1-4

    Agile DevOps is a progression of cultural, behavioral, and process changes.
    It takes time.

    An image of the trail to climb Mount Everest, with the camps replaced by the steps to deploy Agile, to reach Agile/Devops Nirvana

    Agile DevOps may be hard, but it's worth it…

    It turns out Waterfall is not as good at reducing risk and ensuring delivery after all.

    CHAOS RESOLUTION BY AGILE VERSUS WATERFALL
    Size Method Successful Challenged Failed
    All Size Projects Agile 39% 52% 9%
    Waterfall 11% 60% 29%

    Standish Group; CHAOS REPORT 2015

    "I believe in this [Waterfall] concept, but the implementation described above is risky and invites failure."

    – Winston W. Royce

    Compare Waterfall to Agile

    Waterfall

    Agile

    Roles and Responsibilities

    Silo your resources

    Defined/segregated responsibilities

    Handoffs between siloes via documents

    Avoid siloes

    Collective responsibility

    Transitions instead of handoffs

    Belief System

    Trust the process

    Assign tasks to individuals

    Trust the delivery team

    Assign ownership/responsibilities to the team

    Planning Approach

    Create a detailed plan before work begins

    Follow the plan

    High level planning only

    The plan evolves over project lifetime

    Delivery Approach

    One and done (big bang delivery at end of project)

    Iterative delivery (regularly demonstrate working code)

    Governance Approach

    Phases and gates

    Artifacts and approvals

    Demo working tested code and get stakeholder feedback

    Support delivery team and eliminate roadblocks

    Approach to Stakeholders

    Involved at beginning and end of project

    "Arm's length" relationship with delivery team

    Involved throughout project (sprint by sprint)

    Closely involved with delivery team (through full time PO)

    Approach to Requirements/Scope

    One-time requirements gathering at start of project

    Scope is fixed at beginning of project ("carved in stone")

    On going requirements gathering and refinement over time

    Scope is roughly determined at beginning (expect change)

    Approach to Changing Requirements

    Treats change like it is "bad"

    Onerous CM process (discourages change)

    Scope changes "require approval" and are disruptive

    Accepts change as natural part of development.

    Light Change Management process (change is welcome)

    Scope changes are handled like all changes

    Hybrid SDLC: Wagile/Agilfall/WaterScrumFall

    Valuable product delivered in multiple releases

    A picture of a hybrid waterfall - Agile approach.

    If moving directly from Waterfall to Agile is too much for your organization, this can be a valuable interim step (but it won't give you the full benefits of Agile, so be careful about getting stuck here).

    Exercise 2.1.6 Identify the challenges of implementing Agile in your organization

    30-60 minutes

    1. As a group, discuss:
      1. Why being Agile may be difficult in your organization?
      2. What are some of the roadblocks and speed bumps you may face?
      3. What incremental steps might the organization take toward becoming Agile?

    Record the results in the Roadmap for Transition to Agile Template

    Output

    • Why being Agile is hard in your organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Step 2.2

    Align teams with Agile fundamentals

    Activities

    2.2.1 Review the results of your Common Agile Challenges Survey (30-60 minutes)
    2.2.2 Align your support with your top five challenges

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify your organization's biggest Agile pain points.

    Be aware of common Agile challenges

    The road to Agile is filled with potholes, speedbumps, roadblocks, and brick walls!

    1. Establish an effective product owner role (PO)
    2. Uncertainty about minimum viable product (MVP)
    3. How non-Agile teams (like architecture, infosec, operations, etc.) work with Agile teams
    4. Project governance/gating process
    5. What is the role of a PM/PMO in Agile?
    6. How to budget/plan Agile projects
    7. How to contract and work with an Agile vendor
    8. An Agile skills deficit (e.g. new-to-Agile teams who have difficulty "doing Agile right")
    9. General resistance to change in the organization
    10. Lack of Agile training, piloting, and coaching
    11. Different Agile approaches are used by different teams
    12. Backlog management and user story decomposition challenges
    13. Quality assurance challenges
    14. Hierarchical management practices and organization boundaries
    15. Difficulty with establishing autonomous Agile teams
    16. Lack of management support for Agile
    17. Poor Agile estimation practices
    18. Difficulty creating effective product roadmaps in Agile
    19. How do we know when an Agile project is ready to go live?
    20. Sprint goals are not being consistently met, or sprint deliverables that are full of bugs

    Exercise 2.2.1 Review the results of your Common Agile Challenges Survey

    30-60 minutes

    1. Using the results of your Common Agile Challenges Survey, fill in the bar chart with your top five pain points:

    A screenshot from Common Agile Challenges Survey

    Output

    • Your organization's biggest Agile pain points identified and prioritized

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.2.2 Align your support with your top five challenges

    30 minutes

    Using the Agile Challenges support mapping on the following slides, build your transformation plan and supporting resources. You can build your plan by individual team results or as an enterprise approach.

    Priority Agile Challenge Module Name and Sequence
    1
    1. Agile Foundations
    2. ?
    2
    1. Agile Foundations
    2. ?
    3
    1. Agile Foundations
    2. ?
    4
    1. Agile Foundations
    2. ?
    5
    1. Agile Foundations
    2. ?

    Output

    • Your organization's Agile Challenges transformation plan

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Map challenges to supporting modules

    Agile Challenges

    Supporting Resources

    Difficulty establishing an effective product owner (PO) or uncertainty about the PO role

    Modules:

    • Agile Foundations
    • Establish an Effective Product Owner Role
    Uncertainty about minimum viable product (MVP) and how to identify your MVP

    Modules:

    • Agile Foundations
    • Simulate Effective Scrum Practices
    How non-Agile teams (like architecture, info sec, operations, etc.) work with Agile teams

    Modules:

    • Agile Foundations
    • Work With Non-Agile Teams (Future)
    Project Governance/Gating processes that are unfriendly to Agile

    Modules:

    • Agile Foundations
    • Establish Agile-Friendly Gating (Future)
    Uncertainty about the role of a PM/PMO in Agile

    Modules:

    • Agile Foundations
    • Understand the role of PM/PMO in Agile Delivery (Future)
    Uncertainty about how to budget/plan Agile projects

    Modules:

    • Agile Foundations
    • Simulate Effective Scrum Practices
    • Understand Budgeting and Funding for Agile Delivery (Future)
    Creating an Agile friendly RFP/Contract (e.g. how to contract and work with an Agile vendor)

    Modules:

    • Agile Foundations
    • Work Effectively with Agile Vendors (Future)

    Note: Modules listed as (Future) are in development and may be available in draft format.

    Map challenges to supporting modules

    Agile Challenges

    Supporting Resources

    An Agile skills deficit (e.g. new-to-Agile teams who have difficulty "doing Agile right")

    Modules:

    • Agile Foundations
    General resistance in the organization to process changes required by Agile

    Modules:

    • Agile Foundations
    • Manage Organizational Change to Support Agile Delivery (Future)
    Lack of Agile training, piloting and coaching being offered by the organization

    Modules:

    • Agile Foundations
    Different Agile approaches are used by different teams, making it difficult to work together

    Modules:

    • Agile Foundations
    • Build Your Scrum Playbook (Future)
    Backlog management challenges (e.g. how to manage a backlog, and make effective use of Epics, Features, User Stories, Tasks and Bugs)

    Modules:

    • Agile Foundations
    • Manage Your Backlog Effectively
    Quality Assurance challenges (testing not being done well on Agile projects)

    Modules:

    • Agile Foundations
    • Establish Effect Quality Assurance for Agile Delivery (Future);
    • Use Test Automation Effectively (Future)
    Hierarchical management practices and organization boundaries make it difficult to be Agile

    Modules:

    • Agile Foundations
    • Manage Organizational Change to Support Agile Delivery (Future)

    Note: Modules listed as (Future) are in development and may be available in draft format.

    Map challenges to supporting modules

    Agile Challenges

    Supporting Resources

    Difficulty with establishing autonomous Agile teams (self managing, cross functional teams that are empowered by the organization to deliver)

    Modules:

    • Agile Foundations
    • Manage Organizational Change to Support Agile Delivery (Future)
    Lack of management support for Agile

    Modules:

    • Agile Foundations
    • Manage Organizational Change to Support Agile Delivery (Future)
    Poor understanding of Agile estimation techniques and how to apply them effectively

    Modules:

    • Agile Foundations
    • Estimation Module
    Difficulty creating effective product roadmaps in Agile

    Modules:

    • Agile Foundations
    • Product Roadmapping Tool
    How do we know when an Agile project is ready to go live

    Modules:

    • Agile Foundations
    • Decide When to Go Live (Future)
    Sprint goals are not being consistently met, or Sprint deliverables that are full of bugs

    Modules:

    • Agile Foundations
    • Establish Effect Quality Assurance for Agile Delivery (Future);
    • Use Test Automation Effectively (Future)

    Note: Modules listed as (Future) are in development and may be available in draft format.

    Map challenges to supporting blueprints

    Agile Challenges

    Supporting Resources

    Difficulty establishing an effective product owner (PO) or uncertainty about the PO role

    Blueprints: Build a Better Product Owner; Managing Requirements in an Agile Environment

    Uncertainty about minimum viable product (MVP) and how to identify your MVP

    Blueprints: Deliver on Your Digital Product Vision; Managing Requirements in an Agile Environment

    How non-Agile teams (like architecture, info sec, operations, etc.) work with Agile teams

    Blueprints: Create a Horizontally Optimized SDLC to Better Meet Business Demands, Extend Agile Practices Beyond IT, Implement DevOps Practices That Work; Build Your BizDevOps Playbook, Embed Security into the DevOps Pipeline

    Project Governance/Gating processes that are unfriendly to Agile

    Blueprints: Streamline Your Management Process to Drive Performance, Drive Business Value With a Right-Sized Project Gating Process

    Uncertainty about the role of a PM/PMO in Agile

    Blueprints: Define the Role of Project Management in Agile and Product-Centric Delivery, Create a Horizontally Optimized SDLC to Better Meet Business Demands

    Uncertainty about how to budget/plan Agile projects

    Blueprints: Identify and Reduce Agile Contract Risk

    Creating an Agile friendly RFP/Contract (e.g. how to contract and work with an Agile vendor)

    Blueprints: Identify and Reduce Agile Contract Risk

    Note: Modules listed as (Future) are in development and may be available in draft format.

    Map challenges to supporting blueprints

    Agile Challenges

    Supporting Resources

    An Agile skills deficit (e.g. new-to-Agile teams who have difficulty "doing Agile right")

    Blueprints: Perform an Agile Skills Assessment; Mentoring for Agile Teams

    General resistance in the organization to process changes required by Agile

    Blueprints: Master Organizational Change Management Practices

    Lack of Agile training, piloting and coaching being offered by the organization

    Blueprints: Perform an Agile Skills Assessment; Mentoring for Agile Teams

    Different Agile approaches are used by different teams, making it difficult to work together

    Blueprints: Create a Horizontally Optimized SDLC to Better Meet Business Demands, Extend Agile Practices Beyond IT

    Backlog management challenges (e.g. how to manage a backlog, and make effective use of epics, features, user stories, tasks and bugs)

    Blueprints: Deliver on Your Digital Product Vision, Managing Requirements in an Agile Environment

    Quality Assurance challenges (testing not being done well on Agile projects)

    Blueprints: Build a Software Quality Assurance Program, Automate Testing to Get More Done

    Hierarchical management practices and organization boundaries make it difficult to be Agile

    Blueprints: Master Organizational Change Management Practices

    Map challenges to supporting blueprints

    Agile Challenges

    Supporting Resources

    Difficulty with establishing autonomous Agile teams (self managing, cross functional teams that are empowered by the organization to deliver)

    Blueprints: Master Organizational Change Management Practices

    Lack of management support for Agile

    Blueprints: Master Organizational Change Management Practices

    Poor understanding of Agile estimation techniques and how to apply them effectively

    Blueprints: Estimate Software Delivery with Confidence, Managing Requirements in an Agile Environment

    Difficulty creating effective product roadmaps in Agile

    Blueprints: Deliver on Your Digital Product Vision

    How do we know when an Agile project is ready to go live

    Blueprints: Optimize Applications Release Management,Drive Business Value With a Right-Sized Project Gating Process, Managing Requirements in an Agile Environment

    Sprint goals are not being consistently met, or sprint deliverables that are full of bugs

    Blueprints: Build a Software Quality Assurance Program, Automate Testing to Get More Done, Managing Requirements in an Agile Environment

    Step 2.3

    Move stepwise to iterative Agile delivery (Optional)

    Activities

    2.3.1 (Optional) Identify a hypothetical project
    2.3.2 (Optional) Capture your traditional delivery approach
    2.3.3 (Optional) Consider what a two-phase delivery looks like
    2.3.4 (Optional) Consider what a four-phase delivery looks like
    2.3.5 (Optional) Consider what a four-phase delivery with monthly sprints looks like
    2.3.6 (Optional) Decide on your target state and the steps required to get there

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Understand the changes that must take place in your organization to support a more Agile delivery approach.

    Moving stepwise from traditional to Agile

    Your transition to Agile and more frequent releases doesn't need to be all at once. Organizations may find it easier to build toward smaller iterations.

    An image of the stepwise approach to adopting Agile.

    Exercise 2.3.1 (Optional) Identify a hypothetical project

    15-30 minutes

    1. As a group, consider some typical, large, mission-critical system deliveries your organization has done in the past (name a few as examples).
    2. Imagine a project like this has been assigned to your team, and the plan calls for delivering the system using your traditional delivery approach and taking two years to complete.
    3. Give this imaginary project a name (e.g. traditional project, our project).

    Name of your imaginary 2-year long project:

    e.g. Big Bang ERP

    Brief Project Description:

    e.g. Replace home-grown legacy ERP with a modern COTS product in a single release scheduled to be delivered in 24 months

    Record this in the Roadmap for Transition to Agile Template

    Info-Tech Best Practice

    For best results, complete these sub-exercises with representatives from as many functional areas as possible
    (e.g. stakeholders, project management, business analysis, development, testing, operations, architecture, infosec)

    Output

    • An imaginary delivery project that is expected to take 2 years to complete

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.2 (Optional) Capture your traditional delivery approach

    30 minutes

    1. As a group, discuss and capture the high-level steps followed (after project approval) in your traditional delivery approach using the table below and on the next page.

    Step

    Description

    Who is involved

    1
    • Gather detailed requirements (work with project stakeholders to capture all requirements of the system and produce a Detailed Requirements Document)

    PM, Business Analysts, Stakeholders, etc.

    2
    • Produce a Detailed Design Document (develop a design that will meet all requirements identified in the Detailed Requirements Document)
    • Produce a Detailed Test Plan for acceptance of the system
    • Produce a Detailed Project Plan for the system delivery
    • Perform threat and privacy assessment (using the detailed requirements and design documents, perform a Threat Risk Assessment and Privacy Impact Analysis)
    • Submit detailed design to Architecture Review Board
    • Provide Operations with full infrastructure requirements
    PM, Architects, InfoSec, ARB, Operations, etc.
    3
    • Develop software (follow the Detailed Design Document and develop a system which meets all requirements)
    • Perform Unit Testing on all modules of the system as they are developed
    PM, Developers, etc.
    4
    • Create Production Environment based on project specification
    • Perform Integration testing of all modules to ensure the system works as designed
    • Produce an Integration Test Report capturing the results of testing and any deficiencies
    PM, Testers, etc.
    5
    • Fix all Sev 1 and Sev 2 deficiencies found during Integration Testing
    • Perform regression testing
    • Perform User Acceptance Testing as per the Detailed Test Plan
    PM, Developers, Testers, Stakeholders, etc.
    6
    • Product Deployment Plan
    • Perform User and Operations Training
    • Produce updated Threat Risk Assessment and Privacy Impact Analysis
    • Seek CAB (Change Approval Board) approval to go live
    PM, Developers, Testers, Operations, InfoSec, CAB, etc.
    7
    • Close out and Lessons Learned
    • Verify value delivery
    PM, etc.

    Output

    • The high-level steps in your current (traditional) delivery approach and who is involved in each step

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.2 (Optional) Capture your traditional delivery approach

    Step

    Description

    Who is involved

    1
    • Gather detailed requirements (work with project stakeholders to capture all requirements of the system and produce a Detailed Requirements Document)

    PM, Business Analysts, Stakeholders, etc.

    2
    • Produce a Detailed Design Document (develop a design that will meet all requirements identified in the Detailed Requirements Document)
    • Produce a Detailed Test Plan for acceptance of the system
    • Produce a Detailed Project Plan for the system delivery
    • Perform threat and privacy assessment (using the detailed requirements and design documents, perform a Threat Risk Assessment and Privacy Impact Analysis)
    • Submit detailed design to Architecture Review Board
    • Provide Operations with full infrastructure requirements
    PM, Architects, InfoSec, ARB, Operations, etc.
    3
    • Develop software (follow the Detailed Design Document and develop a system which meets all requirements)
    • Perform Unit Testing on all modules of the system as they are developed
    PM, Developers, etc.
    4
    • Create Production Environment based on project specification
    • Perform Integration testing of all modules to ensure the system works as designed
    • Produce an Integration Test Report capturing the results of testing and any deficiencies
    PM, Testers, etc.
    5
    • Fix all Sev 1 and Sev 2 deficiencies found during Integration Testing
    • Perform regression testing
    • Perform User Acceptance Testing as per the Detailed Test Plan
    PM, Developers, Testers, Stakeholders, etc.
    6
    • Product Deployment Plan
    • Perform User and Operations Training
    • Produce updated Threat Risk Assessment and Privacy Impact Analysis
    • Seek CAB (Change Approval Board) approval to go live
    PM, Developers, Testers, Operations, InfoSec, CAB, etc.
    7
    • Close out and Lessons Learned
    • Verify value delivery
    PM, etc.

    Output

    • The high-level steps in your current (traditional) delivery approach and who is involved in each step

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.3 (Optional) Consider what a two-phase delivery looks like

    30 minutes

    1. As a group, imagine that project stakeholders tell you two years is too long to wait for the project, and they want to know if they can have something (even if it's not the whole thing) in production sooner.
    2. Now imagine that you are able to convince the stakeholders to work with you to do the following:
      1. Identify their most important project requirements.
      2. Work with you to describe a valuable subset of the project requirements which reflect about ½ of all features they need (call this Phase 1).
      3. Work with you to get this Phase 1 of the project into production in about 1 year.
      4. Agree to leave the remaining requirements (e.g. the less important ones) until Phase 2 (second year of project).
    3. As a group, identify:
      1. How hard this would be for your organization to do, on a scale of 1 to 10.
      2. Identify what changes are needed to make this happen (consider people, processes, and technology).
      3. Capture your results using the table on the following slide.

    Output

    • The high-level steps in your current (traditional) delivery approach and who is involved in each step

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.3 (Optional) Consider what a two-phase delivery looks like

    30 minutes

    1. What would be needed to let you deliver a two-year project in two one-year phases considering people, process, and technology?

    People

    Processes

    Technology

    • e.g. Stakeholders would need to make hard decisions about which features are more valuable/important than others (and stick to them)
    • e.g. Delivery team and stakeholders would need to work closely together to determine what is a feasible and valuable set of features which can go live in Phase 1
    • e.g. Operations will need to be prepared to support Phase 1 (earlier than before), and then support an updated system after Phase 2
    • e.g. No significant change to traditional processes other than delivering in two phases
    • e.g. Need to decide whether requirements for the full project need to be gathered up front, or do you just do Phase 1, and then Phase 2
    • e.g. No significant changes other than we need a production environment sooner, and infrastructure requirements for the full project may be different from what is needed just for Phase 1

    How difficult would this be to achieve in your organization? (1-easy, 10-next to impossible)

    e.g. 2

    Output

    • Understand how your organization would deliver a large project in two phases

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.4 (Optional) Consider what a four-phase delivery looks like

    30 minutes

    1. Now, imagine that project stakeholders tell you that even one year is still too long to wait for something of value in production, and they want to know if they can have something (even if it's not the whole thing) in production sooner.
    2. Now imagine that you are able to convince the stakeholders to work with you to do the following:
      1. From the "Phase 1" requirements in Exercise 2.3.3, they will identify the most important ones that they need first.
      2. They will work with you to describe a valuable subset of these project requirements which reflect about ½ of all features they need (call this Phase 1A).
      3. They will work with you to get this Phase 1A of the project into production in about six months.
      4. Agree to leave all the remaining requirements (e.g. the less important ones) until later phases.
    1. As a group, identify:
      1. How hard this would be for your organization to do, on a scale of 1 to 10?
      2. Identify what changes are needed to make this happen (consider people, processes, and technology).
      3. Capture your results using the table on the following slide.

    Output

    • Understand how your organization would deliver a large project in two phases

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.4 (Optional) Consider what a four-phase delivery looks like

    30 minutes

    1. What more would be needed to let you deliver a two-year project in four, six-month phases considering people, process, and technology?

    People

    Processes

    Technology

    • e.g. Stakeholders would need to make even harder (and faster) decisions about which features are most valuable/important than others.
    • e.g. Because we will be delivering releases so quickly, we'll ask the stakeholders to nominate a "primary contact" who can make decisions on requirements for each phase (also to answer questions from the project team, when needed, so they aren't slowed down).
    • e.g. Delivery team and the "primary contact" would work closely together to determine what is a feasible and valuable set of features to go live within Phase 1A, and then repeat this for the remaining Phases.
    • e.g. Operations will need to be prepared to support Phase 1A (even earlier than before), and then support the remaining phases. Ask them to dedicate someone as primary contact for this series of releases, and who provides guidance/support as needed.

    e.g. Heavy and time-consuming process steps (e.g. architecture reviews, data modelling, infosec approvals, change approval board) will need to be streamlined and made more "iteration-friendly."

    e.g. Gather detailed requirements only for Phase 1A, and leave the rest as high-level requirements to be more fully defined at the beginning of each subsequent phase.

    • e.g. We will need (at a minimum) a Production, and a Pre-production environment set up (and earlier in the project lifecycle) and solid regression testing at the end of each phase to ensure the latest Release doesn't break anything.
    • e.g. Since we will be going into production multiple times over this 2-year project, we should consider using automation (e.g. automated build, automated regression testing, and automated deployment).

    How difficult would this be to achieve in your organization? (1-easy, 10-next to impossible)

    e.g. 5

    Output

    • Understand how your organization would deliver a large project in two phases

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.5 (Optional) Consider what a four-phase delivery with monthly sprints looks like

    30 minutes

    1. Now, imagine that project stakeholders tell you that they are happy with the six-month release approach (e.g. expect to go live four times over the two-year project, with each release providing increased functionality), but they want to see your team's progress frequently between releases.
    2. Additionally, stakeholders tell you that instead of asking you to provide the traditional monthly project status reports, they want you to demonstrate whatever features you have built and work for the system on a monthly basis. This will be done in the form of a demonstration to a selected list of stakeholders each month.
    3. Each month, your team must show working, tested code (not prototypes or mockups, unless asked for) and demonstrate how this month's deliverable brings value to the business.
    4. Furthermore, the stakeholders would like to be able to test out the system each month, so they can play with it, test it, and provide feedback to your team about what they like and what they feel needs to change.
    5. To help you to achieve this, the stakeholders designate their primary contact as the "product owner" (PO) who will be dedicated to the project and will help your team to decide what is being delivered each month. The PO will be empowered by the stakeholders to make decisions on scope and priority on an expedited basis and will also answer questions on their behalf when your team needs guidance.
    6. You agree with the stakeholders these one-month deliverables will be called "sprints."

    Output

    • Understand how your organization would deliver a large project in two phases

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.5 (Optional) Consider what a four-phase delivery with monthly sprints looks like

    30 minutes

    1. What more would be needed to let you deliver a two-year project in 24 one-month sprints (plus four six-month releases) considering people, process, and technology?

    People

    Processes

    Technology

    • e.g. The team will need to work closely with the product owner (and/or stakeholders) on a continuous basis to understand requirements and their relative priority
    • e.g. Stakeholders will need to be available for demos and testing at the end of each sprint, and provide feedback to the team as quickly as possible
    • e.g. all functional siloes within IT (e.g. analysts, architects, infosec, developers, testers, operations) will need to work hand in hand on a continuous basis to deliver working tested code into a demo/test environment at the end of each sprint
    • e.g. there isn't enough time in each sprint to have team members working in siloes, instead, we will need to work together as a team to ensure that all aspects of the sprint (requirements, design, build, test, etc.) are worked on as needed (team is equally and collectively responsible for delivery of each sprint)
    • e.g. We can't deliver much in 1-month sprints if we work in siloes and are expected to do traditional documentation and handoffs (e.g. requirements document), so we will use a fluid project backlog instead of requirements documents, we will evolve our design iteratively over the course of the many sprints, and we will need to streamline the CAB process to allow for faster (more frequent) deployments
    • e.g. We will need to evolve the system's data model iteratively over the course of many sprints (rather than a one-and-done approach at the beginning of the project)
    • e.g. We will need to quickly decide the scope to be delivered in each sprint (focusing on highest value functionality first). Each sprint should have a well-defined "goal" that the team is trying to achieve
    • We will need any approval processes (e.g. architecture review, infosec review, CAB approval) to be streamlined and simplified in order to support more frequent and iterative deployment of the system
    • e.g. We will need to maximize our use of automation (build, test, and deploy) in order to maximize what we can deliver in each sprint (Note: the ROI on automation is much higher when we deliver in sprints than in a one-and-done delivery because we are iterating repeatedly over the course of the project
    • e.g. We will need to quickly stand-up environments (dev, test, prod, etc.) and to make changes/enhancements to these environments quickly (it makes sense to leverage infrastructure as a service [IaaS] techniques here)
    • e.g. We will need to automate our security related testing (e.g. static and dynamic security testing, penetration testing, etc.) so that it can be run repeatedly before each release moves into production. We may need to evolve this automated testing with each sprint depending on what new features/functions are being delivered in each release

    How difficult would this be to achieve in your organization? (1-easy, 10-next to impossible)

    e.g. 8

    Output

    • Understand how your organization would deliver a large project in two phases

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.6 (Optional) Define the steps to reach your target state

    30 minutes

    1. From Exercises 2.3.1-2.3.5, identify your current state on the stepwise transition from traditional to Agile (e.g. one-and-done).
    2. Then, identify your desired future state (e.g. 24 one-month sprints with six-month releases).
    3. Now, review your people, process, and technology changes identified in Exercises 2.3.1-2.3.5 and create a roadmap for this transition using the table on the next slide.

    Identify your current state from Exercises 2.3.1-2.3.5

    e.g. One-and-done

    Identify your desired state from Exercises 2.3.1-2.3.5

    e.g. 24x1 Month Sprints

    Output

    • A roadmap and timeline for adopting a more Agile delivery approach

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.3.6 (Optional) Define the steps to reach your target state

    30 minutes

    1. Fill in the table below with your next steps. Identify who will be responsible for each step along with the timeline for completion: "Now" refers to steps you will take in the immediate future (e.g. days to weeks), "Next" refers to steps you will take in the medium term (e.g. weeks to months), and "Later" refers to long-term items (e.g. months to years).

    Now

    Next Later

    What are you going to do now?

    What are you going to do very soon?

    What are you going to do in the future?

    Roadmap Item

    Who

    Date

    Roadmap Item

    Who

    Date

    Roadmap Item

    Who

    Date

    Work with Stakeholders to identify a product owner for the project.

    AC

    Jan 1

    Break down full deliverable into 4 phases with high level requirements for each phase

    DL

    Feb 15

    Work with operations to set up Dev, Test, Pre-Prod, and Prod environments for first phase (make use of automation/scripting)

    DL

    Apr 15

    Work with PO and stakeholders to help them understand Agile approach

    Jan 15

    Work with PO to create a project backlog for the first phase deliverable

    JK

    Feb 28

    Work with QA group to select and implement test automation for the project (start with smoke and regression tests)

    AC

    Apr 30

    Work with project gating body, architecture, infosec and operations to agree on incremental deliveries for the project and streamlined activities to get there

    AC

    Mar 15

    Record the results in the Roadmap for Transition to Agile Template

    Output

    • A roadmap and timeline for adopting a more Agile delivery approach

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Step 2.4

    Identify insights and team feedback

    Activities

    2.4.1 Identify key insights and takeaways
    2.4.2 Perform an exit survey

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify your key insights and takeaways from Phase 2

    Exercise 2.4.1 Identify key insights and takeaways

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What key insights have participants gained from the intro to Agile presentation?
      2. What if any takeaways do participants feel are needed as a result of the presentation?
      3. What changes need to be made in the organization to support/enhance Agile adoption?
    2. Capture your findings in the table below:
    What key insights have you gained? What takeaways have you identified?
    • (e.g. better understanding of Agile mindset, principles, and practices)
    • (e.g. how you can improve/spread Agile practices in the organization)

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Exercise 2.4.2 Perform an exit survey

    30 minutes

    1. Wrap up this section by addressing any remaining questions participants still have.
    2. Create your local exit survey by copying the template using the link below. Then copy and distribute your local survey link.
    3. Collect the consolidated survey results in preparation for your next steps.
    4. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst can send the survey for you. Alternatively, this survey can be done with sticky notes and a pen and paper to calculate the outcomes.

    Download Survey Template:

    Develop Your Agile Approach Exit Survey Template

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Agile Modules

    Prioritize Agile support with your top challenges

    Backlog Management

    Scrum Simulation

    Estimation

    Product Owner

    Product Roadmapping

    1: User stories and the art of decomposition

    2: Effective backlog management & refinement

    3: Identify insights and team feedback

    1: Scrum sprint planning and retrospective simulation

    2: Pass the balls – sprint velocity game

    1: Improve product backlog item estimation

    2: Agile estimation fundamentals

    3: Understand the wisdom of crowds

    4: Identify insights and team feedback

    1: Understand product management fundamentals

    2: The critical role of the product owner

    3: Manage effective product backlogs and roadmaps

    4: Identify insights and team feedback

    1: Identify your product roadmapping pains

    2: The six "tools" of product roadmapping

    3: Product roadmapping exercise

    Organizations often struggle with numerous pain points around Agile delivery.
    The Common Agile Challenges Survey results will help you identify and prioritize the organization's biggest (most cited) pain points. Treat these pain points like a backlog and address the biggest ones first.

    Agile modules provide supporting activities:
    Each module provides guidance and supporting activities related to a specific Agile challenge from your survey. These modules can be arranged to meet each organization's or team's needs while providing cohesive and consistent messaging. For additional supporting research, please visit the Agile / DevOps Resource Center.
    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Backlog Management Module

    Manage your backlog effectively

    Activities

    Backlog 1.1 Identify your backlog and user story decomposition pains
    Backlog 1.2 What are user stories and why do we use them?
    Backlog 1.3 User story decomposition: password reset
    Backlog 1.4 (Optional) Decompose a real epic

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of backlog management and user story decomposition.

    Backlog Exercise 1.1 Identify your backlog and user story decomposition pains

    30-60 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What specific challenges you are facing with backlog management
      2. What specific challenges you are facing with user story decomposition
    1. Capture your findings in the table below:

    What are your specific backlog management and user story decomposition challenges?

    • (e.g. We have trouble telling the difference between epics, features, user stories, and tasks)
    • (e.g. We often don't finish all user stories in a sprint because some of them turn out to be too big to complete in one sprint)

    Output

    • Your specific backlog management and user story decomposition challenges

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    User stories and the art of decomposition

    User stories are core to Agile delivery.

    Good user story decomposition practices are key to doing Agile effectively.

    Agile doesn't use traditional "shoulds" and "shalls" to capture requirements

    Backlog Exercise 1.2 What are user stories and why do we use them?

    30-60 minutes

    1. User stories are a simple way of capturing requirements in Agile and have the form:

    Why do we capture requirements as user stories (what value do they provide)?

    How do they differ from traditional (should/shall) requirements (and are they better)?

    What else stands out to you about user stories?

    as a someone I want something so that achieve something.

    Example:
    As a banking customer, I want to see the current balance of my accounts so that I can know how much money I have in each account.

    Output

    • A better understanding of user stories and why they are used in Agile delivery

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    User stories are "placeholders for conversations"

    User stories enable collaboration and conversations to fully determine actual business requirements over time.

    e.g. As a banking customer, I want to see the current balance of my accounts so that I can know how much money I have in each account.

    Requirements, determined within the iterations, outline the steps to complete the story: how the user will access their account, the types of funds allowed, etc.

    User stories allow the product owners to prioritize and manage the product needs (think of them as "virtual sticky notes").

    User stories come in different "sizes"

    These items form a four-level hierarchy: epics, features, user stories, and tasks.
    They are collectively referred to as product backlog items or (PBIs)

    A table with the following headings: Agile; Waterfall; Relationship; Definition

    The process of taking large PBIs (e.g. epics and features) and breaking them down in to small PBIs (e.g. user stories and tasks) is called user story decomposition and is often challenging for new-to-Agile teams

    Backlog Exercise 1.3 User story decomposition: password reset

    30-60 minutes

    1. As a group, consider the following feature, which describes a high-level requirement from a hypothetical system:
      • FEATURE: As a customer, I want to be able to set and reset my password, so that I can transact with the system securely.
    2. Imagine your delivery team tells you that this is user story is too large to complete in one sprint, so they have asked you to decompose it into smaller pieces. Work together to break this feature down into several smaller user stories:
    User Story 1: User Story 2: User Story 3:
    As A I Want So That. As A I Want So That. As A I Want So That.

    Output

    • An epic which has been decomposed into smaller user stories which can be completed independently

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Backlog Exercise 1.3 User story decomposition: password reset

    Epic: As a customer, I want to be able to set and reset my password, so that I can transact securely.

    A single epic can be broken down into multiple user stories

    User Story 1: User Story 2: User Story 3: User Story 4:
    This is a picture of user story 1 This is a picture of user story 2 This is a picture of user story 3 This is a picture of user story 4

    Acceptance Criteria:
    Given that the customer has a password that they want to change,
    When the administrator clicks reset password on the admin console,
    Then the system will change the password and send it to the user.

    Acceptance Criteria:
    Given that the customer has a password that they want to change,
    When they click reset password in the system,
    Then the system will allow them to choose a new password and will save it the password and send it to the user.

    Acceptance Criteria:
    Given that the customer has not logged onto the system before,
    When they initially log in,
    Then the system will prompt them to change their password.

    Acceptance Criteria:
    Given that a password is stored in the database,
    When anyone looks at the password field in the database,
    Then the actual password will not be visible or easily decrypted.

    Are enablers included in your backlogs? Should they be?

    An enabler is any support activity needed to provide the means for future functionality. Enablers build out the technical foundations (e.g. architecture) of the product and uphold technical quality standards.

    Your audience will dictate the level of detail and granularity you should include in your enabler, but it is a good rule of thumb to stick to the feature level.

    Enablers

    Description

    Enabler Epics

    Non-functional and other technical requirements that support your features (e.g. data and system requirements)

    Enabler Capabilities of Features

    Enabler Stories

    Consider the various types of enabler

    Exploration

    Architectural

    Any efforts toward learning customer or user needs and creation of solutions and alternatives. Exploration enablers are heavily linked to learning milestones.

    Any efforts toward building components of your architecture. These will often be linked to delivery teams other than your pure development team.

    Infrastructure

    Compliance

    Any efforts toward building various development and testing environments. Again, these are artifacts that will relate to other delivery teams.

    Any efforts toward regulatory and compliance requirements in your development activities. These can be both internal and external.

    Source: Scaled Agile, "Enablers."

    Create, split, and bundle your PBIs

    The following questions can be helpful in dissecting an epic down to the user story level. The same line of thinking can also be useful for bundling multiple small PBIs together.

    An image showing how to Create, split, and bundle your PBIs

    Backlog Exercise 1.4 (Optional)
    Decompose a real epic

    30 minutes

    1. As a group, select a real epic or feature from one of your project backlogs which needs to be decomposed:
    2. Work together to decompose this epic down into several smaller features and/or user stories (user stories must be small enough to reasonably be completed within a sprint):

    Epic to be decomposed:

    As a ____ I want _____ so that ______

    User Story 1: User Story 2: User Story 3:
    As A I Want So That. As A I Want So That. As A I Want So That.

    Output

    • A real epic from your project backlog which has been decomposed into smaller features and user stories

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Backlog Management Module

    Manage your backlog effectively

    Activities

    Backlog 2.1 Identify enablers and blockers

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Backlog PBI filters.
    • A better understanding of backlog types and levels.

    Effective backlog management and refinement

    Working with a tiered backlog

    an image showing the backlog tiers: New Idea; Ideas; Qualified; Ready - sprint.

    Use a tiered approach to managing your backlog, and always work on the highest priority items first.

    Distinguish your specific goals for refining in the product backlog vs. planning for a sprint itself

    Often backlog refinement is used interchangeably or considered a part of sprint planning. The reality is they are very similar, as the required participants and objectives are the same however, there are some key differences.

    An image of a Venn diagram comparing Backlog Refinement to sprint Planning.

    A better way to view them is "pre-planning" and "planning."

    A backlog stores and organizes PBIs at various stages of readiness

    A well-formed backlog can be thought of as a DEEP backlog:

    • Detailed Appropriately: Product backlog items (PBIs) are broken down and refined as necessary.
    • Emergent: The backlog grows and evolves over time as PBIs are added and removed.
    • Estimated: The effort a PBI requires is estimated at each tier.
    • Prioritized: The PBIs value and priority are determined at each tier.

    (Perforce, 2018)

    An image showing the Ideas; Qualified; Ready; funnel leading to the sprint approach.

    Backlog tiers facilitate product planning steps

    An image of the product planning steps facilitated by Backlog Tiers

    Each activity is a variation of measuring value and estimating effort to validate and prioritize a PBI.

    A PBI meets our definition of done and passes through to the next backlog tier when it meets the appropriate criteria. Quality filters should exist between each tier.

    Backlog Exercise 2.1 Build a starting checklist of quality filters

    60 minutes

    1. Quality filters provide a checklist to ensure each Product Backlog Item (PBI) meets our definition of Done and is ready to move to the next backlog group (status).
    2. Create a checklist of basic descriptors that must be completed between each backlog level.
    3. If you completed this exercise in a different Module, review and update it here.
    4. Use this information to start your product strategy playbook in Deliver on Your Digital Product Vision.

    An image of the backlog tiers, identifying where product backlog and sprint backlog are

    Output

    • List of enablers and blockers to establishing product owners

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Outline the criteria to proceed to the next tier via quality filters

    Expand the concepts of defining "ready" and "done" to include the other stages of a PBIs journey through product planning.

    An image showing the approach you will use to Outline the criteria to proceed to the next tier via quality filters

    Info-Tech Insight: A quality filter ensures quality is met and teams are armed with the right information to work more efficiently and improve throughput.

    Define product value by aligning backlog delivery with roadmap goals

    In each product plan, the backlogs show what you will deliver. Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    Facilitator slides: Explaining MVP

    Notes and Instructions

    The primary intent of this exercise is to explain the complex notion of MVP (it is one of the most misunderstood and contentious issues in Agile delivery). The exercise is intended to explain it in a simple and digestible way that will fundamentally change participants' understanding of MVP.

    Note that the slide contains animations.

    Imagine that your stakeholder tells you they want a blue 4-door sedan (consider this our "MVP" at this point), and you decide to build it the traditional way. As you build it (tires, then frame, then body, then joint body with frame and install engine), the stakeholder doesn't have anything they can use, and so they are only happy (and able to get value) at the end when the entire car is finished (point out the stakeholder "faces" go from unhappy to happy in the end).
    Animation 1:
    When we use Agile methods, we don't want to wait until the end before we have something the stakeholders can use. So instead of waiting until the entire car is completed, we decide our first iteration will be to give the stakeholder "a simple (blue) wheeled transportation device"…namely a skateboard that they can use for a little while (it's not a car, but it is something the stakeholder can use to get places).
    Animation 2:
    After the stakeholder has tried out the skateboard, we ask for feedback. They tell us the skateboard helped them to get around faster than walking, but they don't like the fact that it is so hard to maintain your balance on it. So, we add a handle to the skateboard to turn it into a scooter. The stakeholder then uses the scooter for a while. Stakeholder feedback says staying balanced on the scooter is much easier, but they don't have a place to put groceries when they go shopping, so can we do something about that?
    (Continued on next slide…)

    Facilitator slides: Explaining MVP

    Notes and Instructions
    Animation 3:
    Next, we build the stakeholder a bicycle and let them use it for a while before asking for feedback. The stakeholder tells us they love the bicycle, but they admit they get tired on long trips, so is there something we can do about that?
    Animation 4:
    So next we add a motor to the bicycle to turn it into a motorcycle, and again we give it to the stakeholder to use for a while. When we ask the stakeholder for feedback, they tell us that they love the motorcycle so much because they love the feeling of the wind in their hair, they've decided that they no longer want a 4-door sedan, but instead would prefer a blue 2-door convertible.
    Animation 5:
    And so, for our last iteration, we build the stakeholder what they actually wanted (a blue 2-door convertible) instead of what they asked for (a blue 4-door sedan), and we see that they are happier than they would have been if we had delivered the traditional way.

    INSIGHTS:

    • An MVP cannot be fully known at the beginning of a project (it is the "journey" of creating the MVP with stakeholders that defines what it looks like in the end).
    • Sometimes, stakeholders don't (or can't) know what they want until they see it.
    • There is no "straight path" to your MVP, you determine the path forward based on what you learned in the previous iterations.
    • This approach is part of the "power of Agile" and demonstrates why Agile can produce better outcomes and happier stakeholders.

    Understanding minimum viable product

    NOT Like This:

    This is a series of images. The top half of the image, shows building a car by starting with the wheels. The bottom Image shows the progression from skateboard, to scooter, to bike, to motorcycle, to car.

    It's Like This:

    Use iterations to maximize value delivery

    An image showing how to use iterations to maximize value delivery.

    Use iterations to reduce accumulated risk

    An image showing how to use iterations to reduce accumulated risk.

    Understanding MVP
    (always be ready to go live)

    A great and wise pharaoh hires two architects to build his memorial pyramids.

    An image shows two architects contribution to pyramid construction.

    Understanding MVP
    (always be ready to go live)

    Several years go by, and then…

    The pharaoh is on his death bed.

    Backlog Management Module

    Manage your backlog effectively

    Activities

    Backlog 3.1 Identify key insights and takeaways
    Backlog 3.2 Perform exit survey and capture results

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify your key insights and takeaways.

    Backlog Exercise 3.1 Identify key insights and takeaways

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What key insights have participants gained from the Intro to Agile presentation?
      2. What if any takeaways do participants feel are needed as a result of the presentation?
      3. What changes need to be made in the organization to support/enhance Agile adoption?
    2. Capture your findings in the table below:

    What key insights have you gained?

    What takeaways have you identified?

    • (e.g. better understanding of Agile mindset, principles, and practices)
    • (e.g. how you can improve/spread Agile practices in the organization)

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Backlog Exercise 3.2 Perform an exit survey

    30 minutes

    1. Wrap up this section by addressing any remaining questions participants still have.
    2. Create your local exit survey by copying the template using the link below. Then copy and distribute your local survey link.
    3. Collect the consolidated survey results in preparation for your next steps.
    4. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst can send the survey for you. Alternatively, this survey can be done with sticky notes and a pen and paper to calculate the outcomes.

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Download Survey Template:

    Develop Your Agile Approach Exit Survey Template

    Agile Modules

    Prioritize Agile support with your top challenges

    Backlog Management

    Scrum Simulation

    Estimation

    Product Owner

    Product Roadmapping

    1: User stories and the art of decomposition

    2: Effective backlog management & refinement

    3: Identify insights and team feedback

    1: Scrum sprint planning and retrospective simulation

    2: Pass the balls – sprint velocity game

    1: Improve product backlog item estimation

    2: Agile estimation fundamentals

    3: Understand the wisdom of crowds

    4: Identify insights and team feedback

    1: Understand product management fundamentals

    2: The critical role of the product owner

    3: Manage effective product backlogs and roadmaps

    4: Identify insights and team feedback

    1: Identify your product roadmapping pains

    2: The six "tools" of product roadmapping

    3: Product roadmapping exercise

    Organizations often struggle with numerous pain points around Agile delivery.
    The Common Agile Challenges Survey results will help you identify and prioritize the organization's biggest (most cited) pain points. Treat these pain points like a backlog and address the biggest ones first.

    Agile modules provide supporting activities:
    Each module provides guidance and supporting activities related to a specific Agile challenge from your survey. These modules can be arranged to meet each organization's or team's needs while providing cohesive and consistent messaging. For additional supporting research, please visit the Agile / DevOps Resource Center.
    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Scrum Simulation Module

    Scrum sprint planning and retrospective simulation

    Activities

    1.1 Identify your scrum pains
    1.2 Review scrum simulation intro
    1.3 Create a mock backlog
    1.4 Review sprint 0
    1.5 Determine a budget and timeline
    1.6 Understand minimum viable product
    1.7 Plan your first sprint
    1.8 Do a sprint retrospective
    1.9 "What if" exercise (understanding what a fluid backlog really means)
    1.10 A sprint 1 example
    1.11 Simulate more sprints

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of Scrum (particularly backlog management and user story decomposition).

    Facilitator slides: Scrum Simulation Introduction

    Introduction Tab

    Talk to the nature of the Scrum team:

    • Collective ownership/responsibility for delivery.
    • The organization has given you great power. With great power comes great responsibility.
    • You may each be specialists in some way, but you need to be prepared to do anything the project requires (no one goes home until everyone can go home).
    • Product owner: Special role, empowered by the organization to act as a single, authoritative voice for stakeholders (again great power/responsibility), determines requirements and priorities, three ears (business/stakeholders/team), holds the vision for the project, answer questions from the team (or finds someone who can answer questions), must balance autonomy with stakeholder needs, is first among equals on the Scrum team, is laser-focused on getting the best possible outcome with the resources, money, and circumstances ← PO acts as the "pathfinder" for the project.
    • Talk about the criticality and qualities of the PO: well-respected, highly collaborative, wise decision maker, a "get it done" type (healthy bias toward immediacy), has a vision for product, understands stakeholders, can get stakeholders' attention when needed, is dedicated full-time to the project, can access help when needed, etc.
    • The rest of you are the delivery team (have avoided singling out an SM for this – not needed for the exercise – but SM is the servant leader/orchestra conductor for the delivery team. The facilitator should act as a pseudo-SM for this exercise).

    Speak about the "bank realizes that the precise scope of the first release can only be fully known at the end of the project" statement and what it means.

    Discuss exercise and everyone's roles (make sure everyone clear), make it as realistic as possible. Your level of participation will determine how much value you get.

    Discuss any questions the participants might have about the background section on the introduction tab. The exercise has been defined in a way that minimizes the scope and complexity of the work to be done by assuming there are existing web-capable services exposed to the bank's legacy system(s) and that the project is mostly about putting a deployable web front end in place.

    Speak about "definition of done": Why was it defined this way? What are the boundaries? What happens if we define it to be only up to unit testing?

    Facilitator slides: Scrum Simulation, Create a Mock Backlog

    Create a Mock Backlog Tab

    This exercise is intended to help participants understand the steps involved in creating an initial backlog and deciding on their MVP.

    Note: The output from this exercise will not be used in the remainder of the simulation (a backlog for the simulation already exists on tab Sprint 0) so don't overdo it on this exercise. Do enough to help the participants understand the basic steps involved (brainstorm features and functions for the app, group them into epics, and decide which will be in- and out-of-scope for MVP). Examples have been provided for all steps of this exercise and are shown in grey to indicate they should be replaced by the participants.

    Step 1: Have all participants brainstorm "features and functions" that they think should be available in the online banking app (stop once you have what feels like a "good enough" list to move on to the next step) – these do not need to be captured as user stories just yet.

    Step 2: Review the list of features and functions with participants and decide on several epics to capture groups of related features and functions (bill payments, etc.). Think of these as forming the high-level structure of your requirements. Now, organize all the features and functions from Step 1, into their appropriate epic (you can identify as many epics as you like, but try to keep them to a minimum).

    Step 3: Point out that on the Introduction tab, you were told the bank wants the first release to go live as soon as possible. So have participants go over the list of features and functions and identify those that they feel are most important (and should therefore go into the first release – that is, the MVP), and which they would leave for future releases. Help participants think critically and in a structured way about how to make these very hard decisions. Point out that the product owner is the ultimate decision maker here, but that the entire team should have input into the decision. Point out that all the features and functions that make up the MVP will be referred to as the "project backlog," and all the rest will be known as the "product backlog" (these are of course, just logical separations, there is only one physical backlog).

    Step 4: This step is optional and involves asking the participants to create user stories (e.g. "As a __, I want ___ so that ___") for all the epics and features and functions that make up their chosen MVP. This step is to get them used to creating user stories, because they will need to get used to doing this. Note that many who are new to Agile often have difficulty writing user stories and end up overdoing it (e.g. providing a long-winded list of things in the "I want ___" part of the user story for an epic) or struggling to come up with something for the "so that ____" part). Help them to get good at quickly capturing the gist of what should be in the user story (the details come later).

    Facilitator slides: Scrum Simulation, Budget and Timeline

    Project Budget and Timeline

    Total Number of Sprints = 305/20 = 15.25 → ROUND UP TO 16 (Why? You can't do a "partial sprint" – plus, give yourself a little breathing room.)

    Cost Per Sprint = 6 x $75 x 8 x 10 = $36,000

    Total Timeline = 16 * 2 = 32 Weeks

    Total Cost of First Release = $36,000 x 16 = $572,000

    Talk about the "commitment" a Scrum delivery team makes to the organization ("We can't tell you exactly what we will deliver, but based on what we know, if you give the team 32 weeks, we will deliver something like what is in the project backlog – subject to any changes our stakeholder tell us are needed"). Most importantly, the team commits to doing the most important backlog items first, so if we run out of time, the unfinished work will be the least valuable user stories. Lastly, to keep to the schedule/timeline, items may move in and out of the project backlog – this is part of the normal and important "horse trading" that takes place on health Agile projects.

    Speak to the fact that this approach allows you to provide a "deterministic" answer about how long a project will take and how much it will cost while keeping the project requirements flexible.

    Facilitator slides: Scrum Simulation, Sprint 0

    Sprint 0 Tab

    This is an unprioritized list, organized to make sense, and includes a user story (plus some stuff), and "good enough estimates" – How good?... Eh! (shoulder shrug)
    Point out the limited ("lazy") investment → Agile principle: simplicity, the art of maximizing the work not done.
    Point out that only way to really understand a requirement is to see a working example (requirements often change once the stakeholders see a working example – the "that's not what I meant" factor).

    Estimates are a balancing act (good enough that we understand the overall approximate size of this, and still acknowledges that more details will have to wait until we decide to put that requirement into a Sprint – remember, no one knows how long this project is going to take (or even what the final deliverable will look like) so don't over invest in estimates here.)

    Sprint velocity calculation is just a best guess → be prepared to find that your initial guess was off (but you will know this early rather than at the end of the project). This should lead to a healthy discussion about why the discrepancy is happening (sprint retrospectives can help here). Note: Sprint velocity doesn't assume working evenings and weekends!

    Speak to the importance of Sprint velocity being based on a "sustainable pace" by the delivery team. Calculations that implicitly expect sustained overtime in order to meet the delivery date must be avoided. Part of the power of Agile comes from this critical insight. Critical → Your project's execution will need to be adjusted to accommodate the actual sprint velocity of the team!

    Point out the "project backlog" and separation from the "product backlog" (and no sprint backlog yet!).

    Point out the function/benefits of the backlog:

    • A single holding place for all the work that needs to be done (so you don't forget/ignore anything).
    • Can calculate how much work is left to do.
    • A mechanism for prioritizing deliverables.
    • A list of placeholders for further discussion.
    • An evolving list that will grow and shrink over time.
    • A "living document" that must be maintained over the course of the project.

    Talk about large items in backlog (>20 pts) and how to deal with them (do we need to break them up now?).

    Give participants time to review the backlog: Questions/What would you be doing if this were real/We're going to collectively work through this backlog.
    Sprint 0 is your opportunity to: get organized as a team, do high level design, strategize on approach, think about test data, environments, etc. – it is the "Ready-Set" in "Ready-Set-Go."
    Think about doing a High/Med/Low value determination for each user story.

    Simulation Exercise 1.1 Identify your Scrum pains

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      • What specific challenges are you facing with your Scrum practices?
    2. Capture your findings in the table below:

    What are your specific Scrum challenges?

    • (e.g. We don't know how to decide on our minimum viable product (MVP), or what to start working on first)
    • (e.g. We don't have a product owner assigned to the project)
    • (e.g. Our daily standups often take 30-60 minutes to complete)
    • (e.g. We heard Scrum was supposed to reduce the number of meetings we have, but instead, meetings have increased)
    • (e.g. We don't know how to determine the budget for an Agile project)

    Output

    • Your specific Scrum related challenges

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.2 Review Scrum Simulation intro

    30 minutes

    1. Ask participants to read the Introduction tab in the Scrum Simulation Exercise(5 minutes)
    2. Discuss and answer any questions the participants may have about the introduction (5 minutes)
    3. Discuss the approach your org would use to deliver this using their traditional approach (5 minutes)

    This is an image of the Introduction tab in the Scrum Simulation Exercise

    How would your organization deliver this using their traditional approach?

    1. Capture all requirements in a document and get signoff from stakeholders
    2. Create a detailed design for the entire system
    3. Build and test the system
    4. Deploy it into production

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Simulation Exercise 1.3 Create a mock backlog

    30-60 minutes

    Step 1: Brainstorm "Features and Functions" that the group feels would be needed for this app

    Capture anything that you feel might be needed in the Online Banking Application:

    • See account balances
    • Pay a bill online
    • Set up payees for online bill payments
    • Make a deposit online
    • See a history of account transactions
    • Logon and logoff
    • Make an e-transfer
    • Schedule a bill payment for the future
    • Search for a transaction by payee/date/amount/etc.
    • Register for app
    • Reset password

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • Create a mock initial backlog for the simulated project

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.3 Create a mock backlog

    30-60 minutes

    Step 2: Identify your epics

    1. Categorize your "Features and Functions" list into several epics for the application:

    Epics

    "Features and Functions" in This Epic

    Administration

    - Logon and logoff
    - Register for app
    - Reset password

    Accounts

    - See account balances
    - See a history of account transactions
    - Search for a transaction by payee/date/amount

    Bill payments

    - Set up payees for online bill payments
    - Pay a bill online
    - Schedule a bill payment for the future

    Deposits

    - Make a deposit online

    E-transfers

    - Make an e-transfer

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • Create a mock initial backlog for the simulated project

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.3 Create a mock backlog

    30-60 minutes

    Step 3: Identify your MVP

    1. Decide which "Features and Functions" will be in your MVP and which will be delivered in future releases:

    YOUR MVP (Project Backlog)

    Epics

    "Features and Functions" in This Epic

    Administration

    - Logon and logoff
    - Register for app

    Accounts

    - See account balances
    - See a history of account transactions

    Bill payments

    - Set up payees for online bill payments
    - Pay a bill online

    FOR FUTURE RELEASES (Product Backlog)

    Epics

    In Scope

    Deposits- Make a deposit online
    Accounts- Search for a transaction by payee/date/amount/etc.
    Bill payments- Schedule a bill payment for the future

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • Create a mock initial backlog for the simulated project

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.3 Create a mock backlog

    30-60 minutes

    Step 3: Identify your MVP

    1. Decide which "Features and Functions" will be in your MVP and which will be delivered in future releases:

    YOUR MVP EPICS

    Epics

    "Features and Functions" in This Epic

    Administration

    - Logon and logoff
    - Register for app

    Accounts

    - See account balances
    - See a history of account transactions

    Bill payments

    - Set up payees for online bill payments
    - Pay a bill online

    YOUR MVP USER STORIES

    Epics

    In Scope

    Logon and LogoffAs a user, I want to logon/logoff the app so I can do my banking securely
    Register for AppAs a user, I want to register to use the app so I can bank online
    See Account BalancesAs a user, I want to see my account balances so that I know my current financial status
    See a History of Account TransactionsAs a user, I want to see a history of my account transactions, so I am aware of where my money goes
    Set up Payees for Online Bill PaymentsAs a user, I want to set up payees so that I can easily pay my bills
    Pay a Bill OnlineAs a user, I want to pay bills online, so they get paid on time

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • Create a mock initial backlog for the simulated project

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.4 Review
    Sprint 0

    The Online Banking Application of the spreadsheet for Sprint 0.

    Step 1: Set aside the Mock Backlog just created (you will be using the Backlog on Sprint 0 for remainder of exercise).
    Step 2: Introduce and walk through the Backlog on the Sprint 0 tab in the Scrum Simulation Exercise.
    Step 3: Discuss and answer any questions the participants may have about the Sprint 0 tab.
    Step 4: Capture any important issues or clarifications from this discussion in the table below.

    Important issues or clarifications from the Sprint 0 tab:

    • (e.g. What is the difference between the project backlog and the product backlog?)
    • (e.g. What do we do with user stories that are bigger than our sprint velocity?)
    • (e.g. Has the project backlog been prioritized?)
    • (e.g. How do we decide what to work on first?)

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • Understand Sprint 0 for Scrum Simulation Exercise

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.4 Review
    Sprint 0

    30-60 minutes

    1. Using the information found on the Sprint 0 tab, determine the projected timeline and cost for this project's first release:

    GIVEN

    Total Story Points in Project Backlog (First Release): 307 Story Points
    Expected Sprint Velocity: 20 Story Points/Sprint
    Total Team Size (PO, SM and 4-person Delivery Team): 6 People
    Blended Hourly Rate Per Team Member (assume 8hr day): $75/Hour
    Sprint Duration: 2 Weeks

    DETERMINE

    Expected Number of Sprints to Complete Project Backlog:
    Cost Per Sprint ($):
    Total Expected Timeline (weeks):
    Total Cost of First Release:

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • How to determine expected cost and timeline for an Agile project

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    The Estimation Cone of Uncertainty

    The Estimation Cone of Uncertainty

    Simulation Exercise 1.6 Understanding minimum viable products (MVP)

    30 minutes

    1. Discuss your current understanding of MVP.

    How do you describe/define MVP?

    • (Discuss/capture your understanding of minimum viable product)

    Note: Refer to the facilitator slides for more guidance on how to deliver this exercise

    Output

    • Capture your current understanding of Minimum Viable Product

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Facilitator slides: Explaining MVP

    Notes and Instructions

    The primary intent of this exercise is to explain the complex notion of MVP (it is one of the most misunderstood and contentious issues in Agile delivery). The exercise is intended to explain it in a simple and digestible way that will fundamentally change participants' understanding of MVP.
    Note that the slide contains animations.

    Imagine that your stakeholder tells you they want a blue 4-door sedan (consider this our "MVP" at this point), and you decide to build it the traditional way. As you build it (tires, then frame, then body, then joint body with frame and install engine), the stakeholder doesn't have anything they can use, and so they are only happy (and able to get value) at the end when the entire car is finished (point out the stakeholder "faces" go from unhappy to happy in the end).

    Animation 1:
    When we use Agile methods, we don't want to wait until the end before we have something the stakeholders can use. So instead of waiting until the entire car is completed, we decide our first iteration will be to give the stakeholder "a simple (blue) wheeled transportation device"…namely a skateboard that they can use for a little while (it's not a car, but it is something the stakeholder can use to get places).

    Animation 2:
    After the stakeholder has tried out the skateboard, we ask for feedback. They tell us the skateboard helped them to get around faster than walking, but they don't like the fact that it is so hard to maintain your balance on it. So, we add a handle to the skateboard to turn it into a scooter. The stakeholder then uses the scooter for a while. stakeholder feedback says staying balanced on the scooter is much easier, but they don't have a place to put groceries when they go shopping, so can we do something about that?

    (Continued on next slide…)

    Facilitator slides: Explaining MVP

    Notes and Instructions

    Animation 3:
    So next we build the stakeholder a bicycle and let them use it for a while before asking for feedback. The stakeholder tells us they love the bicycle, but they admit they get tired on long trips, so is there something we can do about that?

    Animation 4:
    So next we add a motor to the bicycle to turn it into a motorcycle, and again we give it to the stakeholder to use for a while. When we ask the stakeholder for feedback, they tell us that they LOVE the motorcycle so much, and that because they love the feeling of the wind in their hair, they've decided that they no longer want a 4-door sedan, but instead would prefer a blue 2-door convertible.

    Animation 5:
    And so, for our last iteration, we build the stakeholder what they wanted (a blue 2-door convertible) instead of what they asked for (a blue 4-door sedan), and we see that they are happier than they would have been if we had delivered the traditional way.

    INSIGHTS:
    An MVP cannot be fully known at the beginning of a project (it is the "journey" of creating the MVP with stakeholders that defines what it looks like in the end).
    Sometimes, stakeholders don't (or can't) know what they want until they see it.
    There is no "straight path" to your MVP, you determine the path forward based on what you learned in the previous iterations.
    This approach is part of the "power of Agile" and demonstrates why Agile can produce better outcomes and happier stakeholders.

    Understanding minimum viable product

    NOT Like This:

    This is a series of images. The top half of the image, shows building a car by starting with the wheels. The bottom Image shows the progression from skateboard, to scooter, to bike, to motorcycle, to car.

    It's Like This:

    Use iterations to maximize value delivery

    An image showing how to use iterations to maximize value delivery

    Use iterations to reduce accumulated risk

    An image showing how to use iterations to reduce accumulated risk.

    Understanding MVP
    (always be ready to go live)

    A great and wise pharaoh hires two architects to build his memorial pyramids.

    An image shows two architects contribution to pyramid construction.

    Understanding MVP
    (always be ready to go live)

    Several years go by, and then…

    The pharaoh is on his death bed.

    Simulation Exercise 1.7 Plan your first sprint

    30-60 minutes

    Step 1: Divide participants into independent Scrum delivery teams (max 7-8 people per team) and assign a PO (5 minutes)
    Step 2: Instruct each team to work together to decide on their "MVP strategy" for delivering this project (10-15 minutes)
    Step 3: Have each team decide on which user stories they would put in their first sprint backlog (5-10 minutes)
    Step 4: Have each team report on their findings. (10 minutes)

    Describe your team's "MVP strategy" for this project (Explain why you chose this strategy):

    Identify your first sprint backlog (Explain how this aligns with your MVP strategy):

    What, if anything, did you find interesting, insightful or valuable by having completed this exercise:

    Output

    • Experience deciding on an MVP strategy and creating your first sprint backlog

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.8 Do a sprint retrospective

    30-60 minutes

    Step 1: Thinking about the work you did in Exercise 3.2.7, identify what worked well and what didn't
    Step 2: Create a list of "Start/Stop/Continue" items using the table below
    Step 3: Present your list and discuss with other teams

    1. Capture findings in the table below:

    Start:
    (What could you start doing that would make Sprint Planning work better?)

    Stop:
    (What didn't work well for the team, and so you should stop doing it?)

    Continue:
    (What worked well for the team, and so you should continue doing?)

    Output

    • Experience performing a sprint retrospective

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.9 "What if" exercise (understanding what a fluid backlog really means)

    30-60 minutes

    1. As a team, consider what you would do in each of the following scenarios (treat each one as an independent scenario rather than cumulative):

    Scenario:

    How would you deal with this:

    After playing with and testing the Sprint 1 deliverable, your stakeholders find several small bugs that need to be fixed, along with some minor changes they would like made to the system. The total amount of effort to address all of these is estimated to be 4 story points in total.

    (e.g. First and foremost, put these requests into the Project Backlog, then…)

    Despite your best efforts, your stakeholders tell you that your Sprint 1 deliverable missed the mark by a wide margin, and they have major changes they want to see made to it.

    Several stakeholders have come forward and stated that they feel strongly that the "DEPOSIT – Deposit a cheque by taking a photo" User Story should be part of the first release, and they would like to see it moved from the Product Backlog to the project backlog (Important Note: they don't want this to change the delivery date for the first release)

    Output

    • A better understanding of how to handle change using a fluid project backlog

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.10 A Sprint 1 example

    30-60 minutes

    1. Consider the following example of what your Sprint 1 deliverable could be:

    An example of what your Sprint 1 deliverable could be.

    Output

    • Better understanding of an MVP strategy

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.10 A Sprint 1 example

    30-60 minutes

    1. As a group, discuss this approach, including:
      1. The pros and cons of the approach.
      2. Is this a shippable increment?
      3. What more would you need to do to make it a shippable increment?
    2. Capture your findings in the table below:

    Discussion

    Output

    • Better understanding of an MVP strategy

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 1.11 Simulate more sprints

    30-60 minutes

    1. As a group, continue to simulate more sprints for the online banking app:
      1. Simulate the planning, execution, demo, and retro stages for additional sprints
      2. Stop when you have had enough
    2. Capture your learnings in the table below:

    Discussion and learnings

    Output

    • Better understanding of an MVP strategy

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Scrum Simulation Module

    Simulate effective scrum practices

    Activities

    2.1 Execute the ball passing sprints

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Model and understand behavioral blockers and patterns affecting Agile teams and organizational culture.

    Pass the balls – sprint velocity game

    Goal 1. Pass as many balls as possible (Story Points) through the system during each sprint.
    Goal 2. Improve your estimation and velocity after each retrospective.

    Backlog

    An image of Sprint, passing balls from one individual to another until you reach the completion point.

    Points Completed

    Rules:

    1. Two people cannot touch the ball at the same time.
    2. Only the first and last person can hold more than one ball at a time.
    3. Every person on the Delivery Team must touch the ball at least once per sprint.
    4. Each team must record its results during the retrospective.

    Scoring:

    1. One point for every ball that completes the system.
    2. Minus one point for every dropped ball.

    Epic 1: 3 sprints

    1. 1-minute Planning
    2. 2-minute Sprints
    3. 1-minute Retrospective

    Group Retrospective
    Epic 2: 3 sprints (repeat)

    1. 1-minute Planning
    2. 2-minute Sprints
    3. 1-minute Retrospective

    Simulation Exercise 1.11 Simulate more sprints

    30-60 minutes

    Goal 1: Pass as many balls (Story Points) through the system during each sprint.
    Goal 2: Improve your estimation and velocity after each retrospective.

    1. Epic 1: 3 sprints
      1. 1-minute Planning
      2. 2-minute Sprints
      3. 1-minute Retrospective
    2. Group Retrospective
    3. Epic 2: 3 sprints
      1. 1-minute Planning
      2. 2-minute Sprints
      3. 1-minute Retrospective
    4. Group Retrospective
    5. Optionally repeat for additional sprints with team configurations or scenarios

    Rules:

    1. Two people cannot touch the ball at the same time.
    2. Only the first and last person can hold more than one ball at a time.
    3. Every person on the delivery team must touch the ball at least once per sprint.
    4. Each team must record its results during the retrospective.

    Scoring:

    1. One point for every ball that completes the system.
    2. Minus one point for every dropped ball.

    Output

    • Understand basic estimation, sprint, and retrospective techniques.
    • Experience common Agile behavior challenges.

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Facilitator slides: Sprint velocity game

    Goal:

    Pass as many balls as possible through the system during each cycle.

    Game Setup

    • Divide into teams of 8-16 people. If you have a smaller group, form one team rather than two smaller teams to start. The idea is to cause chaos with too many people in the delivery flow. See alternate versions for adding additional Epics with smaller teams.
    • Read out the instructions and ensure teams understand each one. Note that no assistance will be given during the sprints.

    Use your phone's timer to create 2-minute cycles:

    • 1-minute sprint planning
    • 2-minute delivery sprint
    • 1-minute retrospective and results recording
    • Run 3-4 cycles, then stop for a facilitated discussion of their observations and challenges.
    • Begin epic 2 and run for 3-4 more cycles.

    Facilitator slides: Sprint velocity game

    • Game Cycles
      • Epic 1: 3 complete cycles
      • 1-minute Planning
      • 2-minute Sprints
      • 1-minute Sprint retrospective
    • Group Retrospective
      • Discuss each sprint, challenges, and changes made to optimize throughput.
    • Epic 2: 3 complete cycles
      • 1-minute Planning
      • 2-minute Sprints
      • 1-minute Sprint retrospective
    • Group Retrospective
      • Discuss each sprint, challenges, and changes made to optimize throughput.
    • Game Rules
      • Each ball must have airtime. No ball cannot touch two people at the same time.
      • No person can hold more than one ball at a time.
      • Ball must be passed by every person on a team.
      • You may not pass a ball to a person directly to the person on your left or right.
      • Each team must keep score and record their results during the Retrospective.
    • Scoring
      • 1 point for every ball that completes the system.
      • Minus 1 point for every dropped ball.

    Facilitator slides: Sprint velocity game

    Facilitator Tips

    • Create a feeling of competition to get the teams to rush and work against each other. The goal is to show how this culture must be broken in Agile and DevOps. Then challenge the teams against natural silos and not focus on enterprise goals.
    • Create false urgency to increase stress, errors, and breakdowns in communication.
    • Look for patterns of traditional delivery and top-down management that limit delivery. These will emerge naturally, and teams will fall back into familiar patterns under stress.
    • Look for key lessons you want to reinforce and bring out ball game examples to help teams relate to something that is easier to understand.

    Alternate Versions

    • Run Epic 1 as one team, then have them break into typical Agile teams of 4-9 people. Compare results.
    • Run Epics with different goals: How would their approach change?
      • Fastest delivery
      • Highest production
      • Lowest defect rate
    • Have teams assign a scrum master to coordinate delivery. A scrum master and product owner are part of the overall team, but not part of the delivery team. They would not need to pass balls during each sprint.
    • Increase sprint time. Discuss right sizing sprint to complete work.
    • Give each team different numbers of balls, but don't tell them. Alternately, start each team with half as many balls, then double for Epic 2. Discuss how the sprint backlog affected their throughput.

    Facilitator slides: Sprint velocity game

    Trends to Look For and Discuss

    • False constraints - patterns where teams unnecessarily limited themselves.
    • Larger teams could have divided into smaller working teams, passing the balls between working groups.
    • Instructions did not limit that "team" meant everyone in the group. They could have formed smaller groups to process more work. LEAN
    • Using the first sprint for planning only. More time to create a POC.
    • Teams will start communicating but will grow silent, especially in later sprints. Stress interactions over the process.
    • Borrowing best practices from other teams.
    • Using retrospectives to share ideas with other teams. Stress needs to align with the company's goals, not just the team's goals.
    • How did they treat dropped balls? Rejected as errors, started over (false constraint), or picked up and continued?

    Trends to Look For and Discuss

    • Did individuals dominate the planning and execution, or did everyone feel like an equal member of the team?
    • Did they consider assigning a scrum master? The scrum master and product owner are part of the overall team, but not part of the Delivery Team. They would not need to pass balls during each Sprint.
    • What impacted their expected number of balls completed? Did it help improve quality or was it a distraction?
    • What caused their improvement in velocity? Draw the connection between how teams must work together and the need for stability.
    • Discuss the overall goal and constraints. Did they understand what the desired outcome was? Where did they make assumptions? Add talking points:
      • What if the goal was overall completed balls?
      • What if it was zero defect? No dropped balls.
      • What if it was the fastest delivery? Each ball through the system in the shortest time? Were they timing each ball?

    Scrum Simulation Module

    Simulate effective scrum practices

    Activities

    3.1 Identify key insights and takeaways

    3.2 Perform exit survey and capture results

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify your key insights and takeaways

    Simulation Exercise 3.1
    Identify key insights and takeaways

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What key insights have participants gained from the Intro to Agile presentation?
      2. What if any takeaways do participants feel are needed as a result of the presentation?
      3. What changes need to be made in the organization to support/enhance Agile adoption?
    2. Capture your findings in the table below:

    What key insights have you gained?

    What takeaways have you identified?

    • (e.g. better understanding of Agile mindset, principles, and practices)
    • (e.g. how you can improve/spread Agile practices in the organization)

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Simulation Exercise 3.2
    Perform an exit survey

    30 minutes

    1. Wrap up this section by addressing any remaining questions participants still have.
    2. Create your local exit survey by copying the template using the link below. Then copy and distribute your local survey link.
    3. Collect the consolidated survey results in preparation for your next steps.
    4. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst can send the survey for you. Alternatively, this survey can be done with sticky notes and a pen and paper to calculate the outcomes.

    Download Survey Template:

    Develop Your Agile Approach Exit Survey Template

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Agile Modules

    Prioritize Agile support with your top challenges

    Backlog Management

    Scrum Simulation

    Estimation

    Product Owner

    Product Roadmapping

    1: User stories and the art of decomposition

    2: Effective backlog management & refinement

    3: Identify insights and team feedback

    1: Scrum sprint planning and retrospective simulation

    2: Pass the balls – sprint velocity game

    1: Improve product backlog item estimation

    2: Agile estimation fundamentals

    3: Understand the wisdom of crowds

    4: Identify insights and team feedback

    1: Understand product management fundamentals

    2: The critical role of the product owner

    3: Manage effective product backlogs and roadmaps

    4: Identify insights and team feedback

    1: Identify your product roadmapping pains

    2: The six "tools" of product roadmapping

    3: Product roadmapping exercise

    Organizations often struggle with numerous pain points around Agile delivery.
    The Common Agile Challenges Survey results will help you identify and prioritize the organization's biggest (most cited) pain points. Treat these pain points like a backlog and address the biggest ones first.

    Agile modules provide supporting activities:

    Each module provides guidance and supporting activities related to a specific Agile Challenge from your survey. These modules can be arranged to meet each organization's or team's needs while providing cohesive and consistent messaging. For additional supporting research, please visit the Agile / DevOps Resource Center.

    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Estimation Module

    Improve product backlog item estimation

    Activities

    1.1 Identify your estimation pains

    1.2 (Optional) Why do we estimate?

    1.3 How do you estimate now?

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of Agile estimation practices and how to apply them.

    Establish consistent Agile estimation fundamentals

    an image of a hierarchy answering the question What is an estimate.

    Know the truth about estimates and their potential pitfalls.

    Then, understand how Agile estimation works to avoid these pitfalls.

    Estimation Exercise 1.1 Identify your estimation pains

    30-60 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What specific challenges are you facing with your estimation practices today
      2. Capture your findings in the table below:

    What are your specific Estimation challenges?

    • (e.g. We don't estimate consistently)
    • (e.g. Our estimates are usually off by a large margin)
    • (e.g. We're not sure what approach to use when estimating)

    Output

    • Your specific estimation related challenges

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Exercise 1.2 (Optional) Why do we estimate?

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      1. Why do we do estimates?
      2. What value/merit do estimates have?
    2. Capture your findings in the table below:

    Why would/should you do estimates?

    • (e.g. Our stakeholders need to know how long it will take to deliver a given feature/function)

    Output

    • Better understanding of the need for estimates

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Exercise 1.2 (Optional) Why do we estimate?

    30 minutes

    1. Estimation has its merits
    2. Here are some sample reasons for estimates:
      • "Estimates allow us to predict when a sprint goal will be met, and therefore when a substantial increment of value will be delivered."
      • "Our estimates help our stakeholders plan ahead. They are part of the value we provide."
      • "Estimates help us to de-risk scope of uncertain size and complexity."
      • "Estimated work can be traded in and out of scope for other work of similar size. Without estimates, you can't trade."
      • "The very process of estimation adds value. When we estimate we discuss requirements in more detail and gain a better understanding of what is needed."
      • "Demonstrates IT's commitment to delivering valuable products and changes."
      • "Supports business ambitions with customers and stakeholders."
      • "Helps to build a sustainable value-delivery cadence."

    Source: DZone, 2013.

    Output

    • Better understanding of the need for estimates

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Exercise 1.3 How do you estimate now?

    30 minutes

    1. As a group, speak about now you currently estimate in your organization.
    2. Capture your findings in the table below:

    Why would/should you do estimates?

    • (e.g. We don't do estimates)
    • (e.g. We ask the person assigned to each task in the project plan to estimate how long it will take)

    Output

    • Your current estimation approach

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Module

    Improve product backlog item estimation

    Activities

    2.1 (Optional) Estimate a real PBI

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of Agile estimation practices and how to apply them.

    Don't expect your estimates to be accurate!

    The average rough order of magnitude estimates for software are off by is up to 400%.
    Source: Boehm, 1981

    Estimate inaccuracy has many serious repercussions on the project and organization

    66%

    Average cost overrun(1)

    33%

    Average schedule overrun (1)

    17%

    Average benefits shortfall)1)

    (1) % of software projects with given issue

    Source: McKinsey & Company, 2012

    The Estimation Cone of Uncertainty

    The Estimation Cone of Uncertainty

    What is Agile estimation?

    There is no single Agile estimation technique. When selecting an approach, adopt an Agile estimation technique that works for your organization, and don't be afraid to adapt it to your circumstances. Remember: all estimates are wrong, so use them with care and skepticism.

    • Understands and accepts the limitations of any estimation process.
    • Leverages good practices to counteract these limitations (e.g. wisdom of crowds, quality-first thinking).
    • Doesn't over-invest in individual estimate accuracy (but sees their value "in aggregate").
    • Approach can change from project to project or team to team and evolves/matures over the project lifespan.
    • Uses the estimation process as an effective tool to:
      • Make commitments about what can be accomplished in a sprint (to establish capacity).
      • Convey a measure of progress and rough expected completion dates to stakeholders (including management).

    Info-Tech Insight

    All estimates are wrong, but some can be useful (leverage the "wisdom of crowds" to improve your estimation practices).

    There are many Agile estimation techniques to choose from…

    Consensus-Building Techniques
    Planning Poker

    Most popular by far (stick with one of these unless there is a good reason to consider others)

    This approach uses the Delphi method, where a group collectively estimates the size of a PBI, or user stories, with cards numbered by story points. See our Estimate Software Delivery With Confidence blueprint.

    T-Shirt Sizing

    This approach involves collaboratively estimating PBIs against a non-numerical system (e.g. small, medium, large). See DZone and C# Corner for more information.

    Dot Voting

    This approach involves giving participants a set number of dot stickers or marks and voting on the PBIs (and options) to deliver. See Dotmocracy and Wikipedia for more information.

    Bucket System

    This approach categorizes PBIs by placing them into defined buckets, which can then be further broken down through dividing and conquering. See Agile Advice and Crisp's Blog for more information.

    Affinity Mapping

    This approach involves the individual sizing and sorting of PBIs, and then the order of these PBIs are collaboratively edited. The grouping is then associated with numerical estimates or buckets if desired. See Getting Agile for more information.

    Ordering Method

    This approach involves randomly ordering items on a scale ranging from low to high. Each member will take turns moving an item one spot lower or higher where it seems appropriate. See Apiumhub, Sheidaei Blog (variant), and SitePoint (Relative Mass Valuation) for more information.

    Ensure your teams have the right information

    Estimate accuracy and consistency improve when it is clear what you are estimating (definition of ready) and what it means to complete the PBI (definition of done).
    Be sure to establish and enforce your definition of ready/done throughout the project.

    Ready

    Done
    • The value of the story to the user is indicated.
    • The acceptance criteria for the story have been clearly described.
    • Person who will accept the user story is identified.
    • The team knows how to demo the story…
    • Design complete, code compiles, static code analysis has been performed and passed.
    • Peer reviewed with coding standards passed.
    • Unit test and smoke test are done/functional (preferably automated).
    • Passes functionality testing including security testing…

    What are story points?

    Many organizations use story point sizing to estimate their PBIs
    (e.g. epics, features, user stories, and tasks)

    • A story point is a (unitless) measure of the relative size, complexity, risk, and uncertainty, of a PBI.
    • Story points do not correspond to the exact number of hours it will take to complete the PBI.
    • When using story points, think about them in terms of their size relative to one another.
    • The delivery team's sprint velocity and capacity should also be tracked in story points.

    How do you assign a point value to a user story? There is no easy answer outside of leveraging the experience of the team. Sizes are based on relative comparisons to other PBIs or previously developed items. Example: "This user story is 3 points because it is expected to take 3 times more effort than that 1-point user story."Therefore, the measurement of a story point is only defined through the team's experience, as the team matures.

    Can you equate a point to a unit of time? First and foremost, for the purposes of backlog prioritization, you don't need to know the time, just its size relative to other PBIs. For sprint planning, release planning, or any scenario where timing is a factor, you will need to have a reasonably accurate sprint capacity determined. Again, this comes down to experience.

    "Planning poker" estimation technique

    Leverage the wisdom of crowds to improve your estimates

    an image of the user story points and the Fibonacci sequence

    Planning poker: This approach uses the Delphi method, where a group collectively estimates the size of a PBI or user story, using cards with story points on them.

    Materials: Each participant has deck of cards, containing the numbers of the Fibonacci sequence.

    Typical Participants: Product owner, scrum master (usually acts as facilitator), delivery team.

    Steps:

    1. The facilitator will select a user story.
    2. The product owner answers any questions about the user story from the group.
    3. The group makes their first round of estimates, where each participant individually selects a card without showing it to anyone, and then all selections are revealed at once.
    4. If there is consensus, the facilitator records the estimate and moves onto step 1 for another user story.
    5. If there are discrepancies, the participants should state their case for their selection (especially high or low outliers) and engage in constructive debate.
    6. The group makes an additional round of estimates, where step 3-6 are completed until there is a reasonable consensus.
    7. If the consensus is the user story is too large to fit into a sprint or too poorly defined, then the user story should be decomposed or rewritten.

    Estimation Exercise 2.1 (Optional) Estimate a real PBI

    30-60 minutes

    Step 1: As a group, select a real epic, feature, or user story from one of your project backlogs which needs to be estimated:

    PBI to be Estimated:

    As a ____ I want _____ so that ______

    Step 2: Select one person in your group to act as the product owner and discuss/question the details of the selected PBI to improve your collective understanding of the requirement (the PO will do their best to explain the PBI and answer any questions).
    Step 3: Make your first round of estimates using either T-shirt sizing or the Fibonacci sequence. Be sure to agree on the boundaries for these estimates (e.g. "extra-small" (XS) is any work that can be completed in less than an hour, while "extra-large" (XL) is anything that would take a single person a full sprint to deliver – a similar approach could be used for Fibonacci where a "1" is less than an hour's work, and "21" might be a single person for a full sprint). Don't share your answer until everyone has had a chance to decide on their Estimate value for the PBI.
    Step 4: Have everyone share their chosen estimate value and briefly explain their reasoning for the estimate. If most estimate values are the same/similar, allow the group to decide whether they have reached a "collective agreement" on the estimate. If not, repeat step 3 now that everyone has had a chance to explain their initial Estimate.
    Step 5: Capture the "collective" estimate for the PBI here:

    Our collective estimate for this PBI:

    e.g. 8 story points

    Output

    • A real PBI from your project backlog which has estimated using planning poker

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Module

    Improve product backlog item estimation

    Activities

    3.1 Guess the number of jelly beans (Round 1) (15 minutes)
    3.2 Compare the average of your guesses (15 minutes)
    3.3 Guess the number of gumballs (Round 2) (15 minutes)
    3.4 Compare your guesses against the actual number

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • A better understanding of why Agile estimation and reconciliation provides reliable estimates for planning.

    Facilitator Slides: Agile Estimation (Wisdom of Crowds Exercise – Rounds 1 and 2)

    Notes and Instructions

    The exercise is intended to mimic the way Planning Poker is performed in Agile Estimation. Use the exercise to demonstrate the power of the Wisdom of Crowds and how, in circumstances where the exact answer to a question is not known, asking several people for their opinion often produces more accurate results than most/any individual opinion.

    Some participants will tend to "shout out an answer" right away, so be sure to tell participants not to share their answers until everyone has had an opportunity to register their guess (this is particularly important in Round 1, where we are trying to get unvarnished guesses from the participants).

    In Round 1:

    • Be sure to emphasize that participants are guessing the total number of jelly beans in the jar (sometimes people think it is just the number visible)
    • Once all guesses are gathered and you've calculated the error for them (and the average guess), review the results with participants (Note: the actual number of jelly beans in the jar is 1600 (it is "greyed out" on the bottom line of the table – you can make it visible by turning off the grey highlight on that cell in the table)
    • Most of the time, the average guess will be closer to the actual than most (if not all) individual guesses (but be prepared for the fact that this doesn't always happen – this is especially true when the number of participants is small)
    • When discussing the results, ask participants to share the "method" they used to make their guess (particularly those who were closest to the actual). This part of the exercise can help them to make more accurate guesses in Round 2

    In Round 2:

    • Note that this time, participants are guessing the total number of visible gumballs in the image (both whole and partial gumballs are counted)
    • Once all guesses are gathered and you've calculated the error for them (and the average guess), review the results with participants (Note: the actual number of visible gumballs is 1600 (it is "greyed out" on the bottom line of the table – you can make it visible by turning off the grey highlight on that cell in the table)
    • Most of the time, the average guess will be closer to the actual in Round 2 than it was in Round 1
    • Talk to participants about the outcomes and how the results varied from Round 1 to Round 2, along with any interesting insights they may have gained from the exercise

    Estimation Exercise 3.1 Guess the number of jelly beans (Round 1)

    15 minutes

    1. Option 1: Microsoft Forms
      1. Create your own local survey by copying the template using the link below.
      2. Add the local Survey link to the exercise instructions or send the link to the participants.
      3. Give the participants 2-3 minutes to complete their guesses.
      4. Collect the consolidated Survey responses and calculate the results on the next slide.
      5. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst or Workshop Specialist can set up the survey for you.
    2. Option 2: Embedded Excel table
      1. On the results slide, double-click the table to open the embedded Excel worksheet.
      2. Record each participant's guess in the table.
    3. Alternatively, this survey can be done with sticky notes, a pen, paper, and a calculator to determine the outcomes.

    Download Survey Template:

    Info-Tech Wisdom of the Crowd 1 (Jelly Bean Guess

    Output

    • An appreciation for the power of the wisdom of crowds

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Exercise 3.1 Guess the number of jelly beans (Round 1)

    15 minutes

    1. Guess the total number of jelly beans in the entire container (not just the ones you can see).
    2. Be sure not to share your guess with anyone else.
    3. It doesn't matter how you settle on your guess ("gut feel" is fine, so is being "scientific" about it, as well as everything in between).
    4. Again, please don't share your guess (or even how you settled on your guess) with anyone else (this exercise relies on independent guesses).

    See slide notes for instructions.

    Output

    • An appreciation for the power of the wisdom of crowds

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Exercise 3.2 Compare the average of your guesses

    15 minutes

    A blank table for you to compare the average of your guesses at the number of Jellybeans in the Jar.

    See slide notes for instructions.

    Output

    • An appreciation for the power of the wisdom of crowds

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Guess the number of gumballs

    • Option 1: Microsoft Forms
      • Create your own local survey by copying the template using the link below.
      • Add the local Survey link to the exercise instructions or send the link to the participants.
      • Give the participants 2-3 minutes to complete their guesses.
      • Collect the consolidated Survey responses and calculate the results on the next slide.
      • NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst or Workshop Specialist can set up the survey for you.
    • Option 2: Embedded Excel table
      • On the results slide, double-click the table to open the embedded Excel worksheet.
      • Record each participant's guess in the table.
    • Alternatively, this survey can be done with sticky notes, a pen, paper, and a calculator to determine the outcomes.

    Download Survey Template:

    Info-Tech Wisdom of the Crowd 2 (Gumball Guess)

    Output

    • An appreciation for the power of the wisdom of crowds

    Participants

    • PM's, PO's and SM's
    • Delivery Managers
    • Delivery Teams
    • Business Stakeholders
    • Senior Leaders
    • Other Interested Parties

    Estimation Exercise 3.3 Guess the number of gumballs (Round 2)

    15 minutes

    1. Guess the total number of gumballs visible in the photo shown on the right.
    2. Again, please don't share your guess with anyone.

    Output

    • An appreciation for the power of the wisdom of crowds

    Participants

    • PM's, PO's and SM's
    • Delivery Managers
    • Delivery Teams
    • Business Stakeholders
    • Senior Leaders
    • Other Interested Parties

    Estimation Exercise 3.2 Compare the average of your guesses

    15 minutes

    A blank table for you to compare the average of your guesses at the number of Jellybeans in the Jar.

    See slide notes for instructions.

    Output

    • An appreciation for the power of the wisdom of crowds

    Participants

    • PM's, PO's and SM's
    • Delivery Managers
    • Delivery Teams
    • Business Stakeholders
    • Senior Leaders
    • Other Interested Parties

    Estimation Module

    Improve product backlog item estimation

    Activities

    4.1 Identify key insights and takeaways
    4.2 Perform exit survey and capture results

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify your key insights and takeaways.

    Estimation Exercise 4.2
    Identify key insights and takeaways

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What key insights have participants gained from the Intro to Agile presentation?
      2. What if any takeaways do participants feel are needed as a result of the presentation?
      3. What changes need to be made in the organization to support/enhance Agile adoption?
    2. Capture your findings in the table below:

    What key insights have you gained?

    What takeaways have you identified?

    • (e.g. better understanding of Agile mindset, principles, and practices)
    • (e.g. how you can improve/spread Agile practices in the organization)

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Estimation Exercise 4.2
    Perform an exit survey

    30 minutes

    1. Wrap up this section by addressing any remaining questions participants still have.
    2. Create your local exit survey by copying the template using the link below. Then copy and distribute your local survey link.
    3. Collect the consolidated survey results in preparation for your next steps.
    4. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst can send the survey for you. Alternatively, this survey can be done with sticky notes and a pen and paper to calculate the outcomes.

    Download Survey Template:

    Develop Your Agile Approach Exit Survey Template

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Agile Modules

    Prioritize Agile support with your top challenges

    Backlog Management

    Scrum Simulation

    Estimation

    Product Owner

    Product Roadmapping

    1: User stories and the art of decomposition

    2: Effective backlog management & refinement

    3: Identify insights and team feedback

    1: Scrum sprint planning and retrospective simulation

    2: Pass the balls – sprint velocity game

    1: Improve product backlog item estimation

    2: Agile estimation fundamentals

    3: Understand the wisdom of crowds

    4: Identify insights and team feedback

    1: Understand product management fundamentals

    2: The critical role of the product owner

    3: Manage effective product backlogs and roadmaps

    4: Identify insights and team feedback

    1: Identify your product roadmapping pains

    2: The six "tools" of product roadmapping

    3: Product roadmapping exercise

    Organizations often struggle with numerous pain points around Agile delivery.
    The Common Agile Challenges Survey results will help you identify and prioritize the organization's biggest (most cited) pain points. Treat these pain points like a backlog and address the biggest ones first.

    Agile modules provide supporting activities:

    Each module provides guidance and supporting activities related to a specific Agile Challenge from your survey. These modules can be arranged to meet each organization's or team's needs while providing cohesive and consistent messaging. For additional supporting research, please visit the Agile / DevOps Resource Center.

    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Product Owner Module

    Establish an effective product owner role

    Activities

    1.1 Identify your product owner pains
    1.2 What is a "product"? Who are your "consumers"?
    1.3 Define your role terminology

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Understand product management fundamentals.
    • Define your product management roles and terms.

    Product owners ensure we delivery the right changes, for the right people, at the right time.

    The importance of assigning an effective and empowered product owner to your Agile projects cannot be overstated.

    What is a product?

    A tangible solution, tool, or service (physical or digital), which enables the long-term and evolving delivery of value to customers, and stakeholders based on business and user requirements.

    Info-Tech Insight

    A proper definition of a product recognizes three key facts.

    1. A clear recognition that products are long-term endeavors that don't end after the project finishes.
    2. Products are not just 'apps', but can be software or services that drive value.
    3. There is more than one stakeholder group that derives value from the product or service.

    Estimation Exercise 4.2
    Perform an exit survey

    30-60 minutes

    1. As a group, discuss and capture your thoughts on:
      • What specific challenges are you facing with your product owner practices today?
    2. Capture your findings in the table below:

    What are your specific Product Owner challenges?

    • (e.g. We don't have product owners)
    • (e.g. Our product owners have "day jobs" as well, so they don't have enough time to devote to the project)
    • (e.g. Our product owners are unsure about the role and its associated responsibilities)

    Output

    • Your specific product owner challenges

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Product Owner Exercise 1.2 What is a "product"? Who are your "consumers"?

    30-60 minutes

    1. Discussion:
      1. How do you define a product, service, or application?
      2. Who are the consumers that receive value from the product?

    Input

    • Organizational knowledge
    • Internal terms and definitions

    Output

    • Our definition of products and services
    • Our definition of product and service consumers/customers

    Products and services share the same foundation and best practices

    The term "product" is used for consistency but would apply to services as well.

    Product=Service

    "Product" and "Service" are terms that each organization needs to define to fit its culture and customers (internal and external). The most important aspect is consistent use and understanding of:

    • External products
    • Internal products
    • External services
    • Internal services
    • Products as a service (PaaS)
    • Productizing services (SaaS)

    Recognize the different product owner perspectives

    • Business
      • Customer facing, revenue generating
    • Operations
      • Keep the lights on processes
    • Technical
      • IT systems and tools

    "A product owner in its most beneficial form acts like an Entrepreneur, like a 'mini-CEO'. The product owner is someone who really 'owns' the product."

    – – Robbin Schuurman,
    "Tips for Starting Technical Product Managers"

    Info-Tech Best Practice

    Product owners must translate needs and constraints from their perspective into the language of their audience. Kathy Borneman, Digital Product Owner at SunTrust Bank, noted the challenges of finding a common language between lines of business and IT (e.g. what is a unit?).

    Implement Info-Tech's product owner capability model

    An image of Info-Tech’s product owner capability model

    Unfortunately, most product owners operate with an incomplete knowledge of the skills and capabilities needed to perform the role. Common gaps include focusing only on product backlogs, acting as a proxy for product decisions, and ignoring the need for key performance indicators (KPIs) and analytics in both planning and value realization.

    Scale products into families to improve alignment

    Operationally align product delivery to enterprise goals

    A hierarchy showing how to break enterprise goals and strategy down into product families.

    The Info-Tech difference:

    Start by piloting product families to determine which approaches work best for your organization.

    Create a common definition of what a product is and identify products in your inventory.

    Use scaling patterns to build operationally aligned product families.

    Develop a roadmap strategy to align families and products to enterprise goals and priorities.

    Use products and families to evaluate the delivery and organizational design improvements.

    Deliver Digital Products at Scale via Enterprise Product Families

    Select the right models for scaling product management

    • Pyramid
      • Logical hierarchy of products rolling into a single service area.
      • Lower levels of the pyramid focus on more discrete services.
      • Example: Human resources mapping down to supporting applications.
    • Service Grouping
      • Organization of related services into service family.
      • Direct hierarchy does not necessarily exist within the family.
      • Example: End user support and ticketing.
    • Technical Grouping
      • Logical grouping of IT infrastructure, platforms, or applications.
      • Provides full lifecycle management when hierarchies do not exist.
      • Example: Workflow and collaboration tools.
    • Market Alignment
      • Grouping of products by customer segments or market strategy.
      • Aligns product to end users and consumers.
      • Example: Customer banking products and services.
    • Organizational Alignment
      • Used at higher levels of the organization where products are aligned under divisions.
      • Separation of product management from organizational structure no longer distinct.

    Match your product management role definitions to your product family levels

    Product Ownership exists at the different operational tiers or levels in your product hierarchy. This does not imply or require a management relationship.

    Product Portfolio
    Groups of product families within an overall value stream or capability grouping.
    Product Portfolio Manager

    Product Family
    A collection of related products. Products can be grouped along architectural, functional, operational, or experiential patterns.
    Product Family Manager

    Product
    Single product composed of one or more applications and services.
    Product Owner

    Info-Tech Insight

    The primary role conflict occurs when the product owner is a proxy for stakeholders or responsible for the delivery team. The product owner owns the product backlog. The delivery team owns the sprint backlog and delivery.

    Examine the differences between product managers and product owners

    Product management terminology is inconsistent, creating confusion in organizations introducing these roles. Understand the roles, then define terms that work best for you.

    A Table comparing the different roles of product managers to those of product owners.

    Define who manages key milestone

    Key milestones must be proactively managed. If a project manager is not available, those responsibilities need to be managed by the Product Owner or Scrum Master. Start with responsibility mapping to decide which role will be responsible.

    An image of a table with the following column headings: Example Milestones; Project Manager; Product Owner; Scrum Master*

    Product Owner Exercise 1.3 Define your role terminology

    30-60 minutes

    1. Using consistent terms is important for any organizational change and evergreen process. Capture your preferred terms to help align teams and expectations.
    Term

    Definition

    Product Owner

    • Owns and manages the product or service providing continuous delivery of value.
    • Owns the product roadmap and backlog for the product or service.
    • Works with stakeholders, end users, the delivery team, and market research to identify the product features and their estimated return on investment when implemented.
    • Responsible for refining and reprioritizing the product backlog ensuring items are "Ready" for the sprint backlog.
    • Defines KPIs to measure the value and impact of each PBI to help refine the backlog and guide the roadmap.
    • Responsible for refining and reprioritizing the sprint backlog that identifies which features will be delivered in the next sprint based on business importance.
    • Works with the product owner, stakeholders, end users, and SMEs to help define PBIs to ensure they are "Ready" for the Sprint backlog.

    Product Manager

    • Owns and manages a product or service family consisting of multiple products or services.
    • Owns the product family roadmap. Note: Product families do not have a backlog, only products do.
    • Works with stakeholders, end users, product owners, enterprise architecture, and market research to identify the product capabilities needed to accomplish goals.
    • Validates the product PBIs delivered realized the expected value and capability. Feedback is used to refine the product family roadmap and guide product owners.

    Output

    • Product management role definitions

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Product Owner Module

    Establish an effective product owner role

    Activities

    2.1 Identify enablers and blockers

    2.2 (Optional) Dissect this definition of the product owner role

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify cultural enablers and blockers for product owners.
    • Develop a deeper understanding of the product owner role.

    The importance of establishing an effective product owner role

    The critical importance of establishing an effective product owner role (PO) for your Agile projects cannot be overstated.

    Many new-to-Agile organizations do not fully appreciate the critical role played by the PO in Scrum, nor the fundamental changes the organization will need to make in support of the PO role. Both mistakes will reduce an organization's chances of successfully adopting Agile and achieving its promised benefits.

    The PO role is critical to the proper prioritization of requirements and efficient decision-making during the project.

    The PO role helps the organization to avoid "analysis paralysis" challenges often experienced in large command-and-control-style organizations.

    A poorly chosen or disengaged product owner will almost certainly stifle your Agile project.

    Note that for many organizations, "product owner" is not a formally recognized role, which can create HR issues. Some organizational education on Agile may be needed (especially if your organization is unionized).

    Info-Tech Insight

    Failing to establish effective product owners in your organization can be a "species-killing event" for your Agile transformation.

    The three A's of a product owner

    To ensure the effectiveness of a product owner, your organization should select one that meets the three A's:

    Available: Assign a PO that can focus full-time on the project. Make sure your PO can dedicate the time needed to fulfill this critical role.
    Appropriate: It's best for the PO to have strong subject matter expertise (so-called "super users" are often selected to be POs) as well as strong communication, collaboration, facilitation, and arbitration skills. A good PO will understand how to negotiate the best outcomes for the project, considering all project constraints.
    Authoritative: The PO must be empowered by your organization to speak authoritatively about priorities and goals and be able to answer questions from the project team quickly and efficiently. The PO must know when decisions can be made immediately and when they must be made in collaboration with other stakeholders – choosing a PO that is well-known and respected by stakeholders will help to make this more efficient.

    Info-Tech Insight

    It's critical to assign a PO that meets the three A's:

    • Available
    • Appropriate
    • Authoritative

    The three ears of a product owner*

    An effective product owner listens to (and effectively balances) the needs and constraints of three different groups:

    Organizational needs/constraints represent what is most important to the organization overall, and typically revolve around things like cost, schedule, return on investment, time to market, risk mitigation, conforming to policies and regulations, etc.

    Stakeholder needs/constraints represent what is most important to those who will be using the system and typically revolve around the delivery of value, ease of use, better outcomes, making their jobs easier and more efficient, getting what they ask for, etc.

    Delivery Team needs/constraints represent what is most important to those who are tasked with delivering the project and cover a broad range that includes tools, skills, capabilities, technology limitations, capacity limits, adequate testing, architectural considerations, sustainable workload, clear direction and requirements, opportunities to innovate, getting sufficient input and feedback, support for clearing roadblocks, dependencies on other teams, etc.

    Info-Tech Insight

    An effective PO will expertly balance the needs of:

    • The organization
    • Project stakeholders
    • The delivery team

    * For more, see Understanding Scrum: Why do Product Owners Have Three Ears

    A product owner doesn't act alone

    Although the PO plays a unique and central role in the success of an Agile project, it doesn't mean they "act alone."

    The PO is ultimately responsible for managing and maintaining an effective backlog over the project lifecycle, but many people contribute to maintaining this backlog (on large projects, BA's are often the primary contributors to the backlog).

    The PO role also relies heavily on stakeholders (to help define and elaborate user stories, provide input and feedback, answer questions, participate in sprint demos, participate in testing of sprint deliverables, etc.).

    The PO role also relies heavily on the delivery team. Some backlog management and story elaboration is done by delivery team members instead of the PO (think: elaborating user story details, creating acceptance criteria, writing test plans for user stories, etc.).

    The PO both contributes to these efforts and leads/oversees the efforts of others. The exact mix of "doing" and "leading" can be different on a case-by-case basis and is part of establishing the delivery team's norms.

    Given the importance of the role, care must be taken to not overburden the product owner, especially on large projects.

    Info-Tech Insight

    While being ultimately responsible for the product backlog, a PO often relies on others to aid in backlog management and maintenance.

    This is particularly true on large projects.

    The use of a proxy PO

    Sometimes, a proxy product owner is needed.

    It is always best to assign a product owner "from the business," who will bring subject matter expertise and have established relationships with stakeholders.

    When a PO from the business does not have enough time to fulfill the needs of the role completely (e.g. can only be a part-time PO, because they have a day job), assigning a proxy product owner can help to compensate for this.

    The proxy PO acts on behalf of the PO in order to reduce the PO's workload or to otherwise support them.

    Project participants (e.g. delivery team, stakeholders) should treat the PO and proxy PO as roughly equivalent.

    Project managers (PMs) and business analysts (BAs) are often good candidates for the proxy PO role.

    NOTE: It's highly advisable for the PO to attend all/most sprint demos in order to observe progress for themselves, and to identify any misalignment with expectations as early as possible (remember that the PO still has ultimate responsibility for the project outcomes).

    Info-Tech Insight

    Although not ideal, assigning a proxy PO can help to compensate for a PO who doesn't meet all three A's of Product Ownership.

    It is up to the PO and proxy to decide how they will work together (e.g. establish their norms).

    The use of a proxy PO

    The PO and proxy must work together closely and in a highly coordinated way.

    The PO and proxy must:

    • Work closely at the start of the project to agree on the overall approach they will follow, as well as any needs and constraints for the project.
    • Communicate frequently and effectively throughout the project, to ensure progress is being made and to address any challenges.
    • Have a "meeting of the minds" about how the different "parts" of the PO role will be divided between them (including when the proxy must defer to the PO on matters).
    • Focus on ensuring that all the responsibilities of the PO role are fulfilled effectively by the pair (how this is accomplished is up to the two of them to decide).
    • Ensure all project participants clearly understand the POs' and proxies' relative responsibilities to minimize confusion and mistakes.

    The use of multiple POs

    Sometimes, having multiple product owners makes sense.

    It is always best to assign a single product owner to a project. However, under certain circumstances, it can make sense to use multiple POs.

    For example, when implementing a large ERP system with many distinct modules (e.g. Finance, HR) it can be difficult to find a single PO who has sufficient subject matter expertise across all modules.

    When assigning Multiple POs to a project, be sure to identify a "Lead PO" (who is given ultimate responsibility for the entire project) and have the remaining POs act like Proxy POs.

    NOTE: Not surprisingly, it's highly advisable for the Lead PO to attend as many Sprint Demos as possible to observe progress for themselves, and to identify any misalignment with expectations as early as possible (remember that the Lead PO has ultimate responsibility for the project outcomes).

    Info-Tech Best Practice

    Although not ideal, assigning multiple POs to a project sometimes makes sense.

    When needed, be sure to identify a "Lead PO" and have the other PO's act like Proxies.

    Product Owner Exercise 2.1 Identify enablers and blockers

    30-60 minutes

    1. Brainstorm and discuss the key enablers that can help promote and ease your implementation of Product Ownership.
    2. Brainstorm and discuss the key blockers (or risks) that may interrupt or derail your efforts.
    3. Brainstorm mitigation activities for each blocker.
    Enablers Blockers Mitigation
    High business engagement and buy-in Significant time is required to implement and train resources Limit the scope for pilot project to allow time to learn
    Organizational acceptance for change Geographically distributed resources Temporarily collocate all resources and acquire virtual communication technology
    Existing tools can be customized for BRM Difficulty injecting customers in demos Educate customer groups on the importance of attendance and 'what's in it for them'

    Output

    • List of enablers and blockers to establishing product owners

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Establish an effective product owner role

    • The nature of a PO role can be somewhat foreign to many organizations, so candidates for the role will benefit from training along with coaching/mentoring support when starting out.
    • The PO must be able to make decisions quickly around project priorities, goals, and requirements.
    • A PO who is simply a conduit to a slow-moving steering committee will stifle an Agile project.
    • Establish clear boundaries and rules regarding which project decisions can be made directly by the PO and which must be escalated to stakeholders. Lean toward approaches that support the quickest decision-making (e.g. give the PO as much freedom as they need to be effective).
    • An effective PO has a good instinct for what is "good enough for now."
    • The organization can support the PO by focusing attention on goals and accomplishments rather than pushing processes and documentation.
    • Understand the difference between a project sponsor and a PO (the PO role is much more involved in the details, with a higher workload).
    • Agree on and clearly define the roles and responsibilities of PO, PM, dev manager, SM, etc. at the start of the project for clarity and efficiency.

    Characteristics to look for when selecting a product owner

    Here are some "ideal characteristics" for your POs (the more of these that are true for a given PO, the better):

    • Knows how to get things done in your organization
    • Has strong working relationships with project stakeholders (has established trust with them and is well respected by stakeholders as well as others)
    • Comes from the stakeholder community and is invested in the success of the project (ideally, will be an end user of the system)
    • Has proven communication, facilitation, mediation, and negotiation skills
    • Can effectively balance multiple competing priorities and constraints
    • Sees the big picture and strives to achieve the best outcomes possible (grounded in realistic expectations)
    • Works with a sense of urgency and welcomes ongoing feedback and collaboration with stakeholders
    • Understands how to act as an effective "funnel and filter" for stakeholder requests
    • Acts as an informal (but inspirational) leader whom others will follow
    • Has a strong sense of what is "good enough for now"
    • Protects the delivery team from distractions and keeps them focused on goals
    • Thinks strategically and incrementally

    Product Owner Exercise 2.2 (Optional) Dissect this definition of the product owner role

    30-60 minutes

    1. Take a minute or two to review the bullet points below, which describe the product owner's role.
    2. As a group, discuss the "message" for each bullet point in the description, and then identify which aspects would be "easy" and "hard" to achieve in your organization.
      • The product owner is a project team member who has been empowered by both the organization and stakeholders to act on their behalf and to guide the project directly with a single voice (supported by appropriate consultations with the organization and stakeholders).
      • The product owner must be someone with a good understanding of the project deliverable (they are often considered to be a subject matter expert in an area related to the project deliverable) and ideally is both well-known and respected by both the organization and stakeholders.
      • During the project, requirements clarification, prioritization, and scope changes are ultimately decided by the product owner, who must perform the important balancing act required by the project to adequately reflect the needs and constraints of the organization, its stakeholders, and the project team.
      • The product owner role can only be successful in an organization that has established a trusting and supportive culture. Great trust must be placed in the product owner to adequately balance competing needs in a way that leads to good outcomes for the organization. This trust must come with some authority to make important project decisions, and the organization must also support the product owner in addressing risks and roadblocks outside the control of the project team.
      • The product owner is first among equals when it comes to ultimate ownership of success for the project (along with the project delivery team itself). Because of this, any project of any significance will require the full-time effort of the product owner (don't shortchange yourself by under-investing in a willing, able, and available product owner)

    Output

    • Better understanding of the product owner role.

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Product Owner Exercise 2.2 (Optional) Dissect this definition of the product owner role

    Which aspects of the product owner are "easy" in your organization?

    Which aspects of the product owner are "hard" in your organization?

    Product Owner Module

    Establish an effective product owner role

    Activities

    3.1 Build a starting checklist of quality filters

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Understand the levels in a product backlog and how to create quality filters for PBIs moving through the backlog.
    • Define your product roadmap approach for key audiences.

    Product Owner Step 3: Managing effective product backlogs and roadmaps

    The primary role of the product owner is to manage the backlog effectively.

    When managed properly, the product backlog is a powerful project management tool that directly contributes to project success.

    The product owner's primary responsibility is to ensure this backlog is managed effectively.

    A backlog stores and organizes PBIs at various stages of readiness

    A well-formed backlog can be thought of as a DEEP backlog:

    • Detailed Appropriately: Product backlog items (PBIs) are broken down and refined as necessary.
    • Emergent: The backlog grows and evolves over time as PBIs are added and removed.
    • Estimated: The effort a PBI requires is estimated at each tier.
    • Prioritized: The PBIs value and priority are determined at each tier.

    (Perforce, 2018)

    An image showing the Ideas; Qualified; Ready; funnel leading to the sprint approach.

    Backlog tiers facilitate product planning steps

    An image of the product planning steps facilitated by Backlog Tiers

    Each activity is a variation of measuring value and estimating effort to validate and prioritize a PBI.

    A PBI meets our definition of done and passes through to the next backlog tier when it meets the appropriate criteria. Quality filters should exist between each tier.

    Backlog Exercise 2.1 Build a starting checklist of quality filters

    60 minutes

    1. Quality filters provide a checklist to ensure each Product Backlog Item (PBI) meets our definition of Done and is ready to move to the next backlog group (status).
    2. Create a checklist of basic descriptors that must be completed between each backlog level.
    3. If you completed this exercise in a different Module, review and update it here.
    4. Use this information to start your product strategy playbook in Deliver on Your Digital Product Vision.

    An image of the backlog tiers, identifying where product backlog and sprint backlog are

    Output

    • List of enablers and blockers to establishing product owners

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Outline the criteria to proceed to the next tier via quality filters

    Expand the concepts of defining "ready" and "done" to include the other stages of a PBIs journey through product planning.

    An image showing the approach you will use to Outline the criteria to proceed to the next tier via quality filters

    Info-Tech Insight: A quality filter ensures quality is met and teams are armed with the right information to work more efficiently and improve throughput.

    Define product value by aligning backlog delivery with roadmap goals

    In each product plan, the backlogs show what you will deliver.

    Roadmaps identify when and in what order you will deliver value, capabilities, and goals.

    Product roadmaps guide delivery and communicate your strategy

    In Deliver on Your Digital Product Vision, we demonstrate how the product roadmap is core to value realization. The product roadmap is your communicated path, and as a product owner, you use it to align teams and changes to your defined goals while aligning your product to enterprise goals and strategy.

    This is an image Adapted from: Pichler, What Is Product Management?

    Adapted from: Pichler, "What Is Product Management?"

    Info-Tech Insight

    The quality of your product backlog – and your ability to realize business value from your delivery pipeline – is directly related to the input, content, and prioritization of items in your product roadmap.

    Product delivery realizes value for your product family

    While planning and analysis are done at the family level, work and delivery are done at the individual product level.

    An example of performing planning and analysis at the family level.

    Leverage the product family roadmap for alignment

    It's more than a set of colorful boxes. It's the map to align everyone to where you are going.

    • Your product family roadmap:
      • Lays out a strategy for your product family.
      • Is a statement of intent for your family of products.
      • Communicates direction for the entire product family and product teams.
      • Directly connects to the organization's goals.
    • However, it is not:
      • Representative of a hard commitment.
      • A simple combination of your current product roadmaps.

    Your ideal roadmap approach is a spectrum, not a choice!

    Match your roadmap and backlog to the needs of the product.

    Tactical vs strategic roadmaps.

    Product Managers do not have to choose between being tactical or strategic.
    – Aha!, 2015

    Multiple roadmap views can communicate differently yet tell the same truth

    Audience

    Business/
    IT Leaders

    Users/Customers

    Delivery Teams

    Roadmap

    View

    Portfolio

    Product Family

    Technology

    Objectives

    To provide a snapshot
    of the portfolio and
    priority products

    To visualize and validate product strategy

    To coordinate broad technology and architecture decisions

    Artifacts

    Line items or sections of the roadmap are made up of individual products, and an artifact represents a disposition at its highest level.

    Artifacts are generally grouped by product teams and consist of strategic goals and the features that realize
    those goals.

    Artifacts are grouped by
    the teams who deliver
    that work and consist of technical capabilities that support the broader delivery of value for the product family.

    Product Owner Exercise 3.1 Build a starting checklist of quality filters

    60 minutes

    1. Views provide roadmap information to different audiences in the format and level of detail that is fit to their purpose.
    2. Consider the three primary audiences for roadmap alignment.
    3. Define the roles or people who the view best fits.
    4. Define the level of detail or artifacts shared in the view for each audience.
    5. Use this information to start your product strategy playbook in Deliver on Your Digital Product Vision.

    Business/
    IT Leaders

    Users/Customers

    Delivery Teams

    Audience:

    Audience:

    Audience:

    Level of Detail/Artifacts:

    Level of Detail/Artifacts:

    Level of Detail/Artifacts:

    Output

    • List of enablers and blockers to establishing product owners

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Connecting your product family roadmaps to product roadmaps

    Your product and product family roadmaps should be connected at an artifact level that is common between both. Typically, this is done with capabilities, but it can be done at a more granular level if an understanding of capabilities isn't available.

    A comparison between product family roadmaps and product roadmaps.

    Use product roadmaps to align cross-team dependencies

    Regardless of how other teams operate, teams need to align to common milestones.

    An image showing how you may Use product roadmaps to align cross-team dependencies

    Product Owner Module

    Establish an effective product owner role

    Activities

    4.1 Identify key insights and takeaways

    4.2 Perform exit survey and capture results

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Identify your key insights and takeaways.

    Product Owner Exercise 4.1
    Identify key insights and takeaways

    30 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What key insights have participants gained from the Intro to Agile presentation?
      2. What if any takeaways do participants feel are needed as a result of the presentation?
      3. What changes need to be made in the organization to support/enhance Agile adoption?
    2. Capture your findings in the table below:
    What key insights have you gained? What takeaways have you identified?
    (e.g. better understanding of Agile mindset, principles, and practices) (e.g. how you can improve/spread Agile practices in the organization)

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Product Owner Exercise 4.2
    Perform an exit survey

    30 minutes

    1. Wrap up this section by addressing any remaining questions participants still have.
    2. Create your local exit survey by copying the template using the link below. Then copy and distribute your local survey link.
    3. Collect the consolidated survey results in preparation for your next steps.
    4. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst can send the survey for you. Alternatively, this survey can be done with sticky notes and a pen and paper to calculate the outcomes.

    Download Survey Template:

    Develop Your Agile Approach Exit Survey Template

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Agile Modules

    Prioritize Agile support with your top challenges

    Backlog Management

    Scrum Simulation

    Estimation

    Product Owner

    Product Roadmapping

    1: User stories and the art of decomposition

    2: Effective backlog management & refinement

    3: Identify insights and team feedback

    1: Scrum sprint planning and retrospective simulation

    2: Pass the balls – sprint velocity game

    1: Improve product backlog item estimation

    2: Agile estimation fundamentals

    3: Understand the wisdom of crowds

    4: Identify insights and team feedback

    1: Understand product management fundamentals

    2: The critical role of the product owner

    3: Manage effective product backlogs and roadmaps

    4: Identify insights and team feedback

    1: Identify your product roadmapping pains

    2: The six "tools" of product roadmapping

    3: Product roadmapping exercise

    Organizations often struggle with numerous pain points around Agile delivery.
    The Common Agile Challenges Survey results will help you identify and prioritize the organization's biggest (most cited) pain points. Treat these pain points like a backlog and address the biggest ones first.

    Agile modules provide supporting activities:

    Each module provides guidance and supporting activities related to a specific Agile challenge from your survey. These modules can be arranged to meet each organization's or team's needs while providing cohesive and consistent messaging. For additional supporting research, please visit the Agile / DevOps Resource Center.

    This phase involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Product Roadmapping

    Create effective product roadmaps

    Activities

    Roadmapping 1.1 Identify your product roadmapping pains
    Roadmapping 1.2 The six "tools" of product roadmapping
    Roadmapping 1.3 Product roadmapping exercise

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Understand product management fundamentals
    • Understand the six "tools" of roadmapping and how to use them

    Roadmapping Exercise 1.1: Tell us what product management means to you and how it differs from a project orientation

    10-15 minutes

    1. Share your current understanding of product management.
    What is product management, and how does it differ from a project orientation?

    Output

    • Your current understanding of product management and its benefits

    Participants

    • PMs, Pos, and SMs
    • Delivery managers
    • Delivery teams
    • Business stakeholders
    • Senior leaders
    • Other interested parties

    Definition of terms

    Project

    "A temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a beginning and an end to the project work or a phase of the project work. Projects can stand alone or be part of a program or portfolio."

    – PMBOK, PMI

    Product

    "A tangible solution, tool, or service (physical or digital) that enables the long-term and evolving delivery of value to customers and stakeholders based on business and user requirements."
    Deliver on Your Digital Product Vision,
    Info-Tech Research Group

    Info-Tech Insight

    Any proper definition of product recognizes that they are long-term endeavors that don't end after the project finishes. Because of this, products need well thought out roadmaps.

    Deliver Digital Products at Scale via Enterprise Product Families

    Match your product management role definitions to your product family levels

    Product ownership exists at the different operational tiers or levels in your product hierarchy. This does not imply or require a management relationship.

    Product Portfolio
    Groups of product families within an overall value stream or capability grouping.
    Product Portfolio Manager

    Product Family
    A collection of related products. Products can be grouped along architectural, functional, operational, or experiential patterns.
    Product Family Manager

    Product
    Single product composed of one or more applications and services.
    Product Owner

    Info-Tech Insight

    The primary role conflict occurs when the product owner is a proxy for stakeholders or responsible for the delivery team. The product owner owns the product backlog. The delivery team owns the sprint backlog and delivery.

    Roadmapping Exercise 1.2 (Optional): Define "product" in your context*

    15-30 minutes

    1. Discuss what "product" means in your organization.
    2. Create a common, enterprise definition for "product."

    For example,

    • An application, platform, or application family.
    • Discrete items that deliver value to a user/customer.

    Capture your organization's definition of product:

    * For more on Product Management see Deliver on Your Digital Product Vision

    Output

    • Your enterprise/ organizational definition of products and services.

    Participants

    • PMs, Pos, and SMs
    • Delivery managers
    • Delivery teams
    • Business stakeholders
    • Senior leaders
    • Other interested parties

    Product Roadmapping

    Create effective product roadmaps

    Activities

    The six "tools" of product roadmapping

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Understand product management fundamentals
    • Understand the six "tools" of roadmapping and how to use them

    The six "tools" of product roadmapping

    the 6 tools of product roadmapping: Vision; Goals; Strategy; Roadmap; Backlog; Release Plan.

    Product Roadmapping

    Create effective product roadmaps

    Activities

    Roadmapping 3.1 Product roadmapping exercise
    Roadmapping 3.2 Identify key insights and takeaways
    Roadmapping 3.3 Perform an exit survey

    This step involves the following participants:

    • Product owners, product managers, and scrum masters
    • Delivery managers and senior leaders
    • Stakeholders and delivery teams

    Outcomes of this step

    • Understand product management fundamentals
    • Understand the six "tools" of roadmapping and how to use them

    Roadmapping Exercise 1.2 (Optional): Define "product" in your context*

    30 minutes

    1. As a team, read through the exercise back story below:

    The city of Binbetter is a picturesque place that is sadly in decline because local industry jobs are slowly relocating elsewhere. So, the local government has decided to do something to reinvigorate the city. Binbetter City Council has set aside money and a parcel of land they would like to develop into a venue that will attract visitors and generate revenue for the city.

    Your team was hired to develop the site, and you have already spent time with city representatives to create a vision, goals and strategy for building out this venue (captured on the following slides). The city doesn't want to wait until the entire venue is completed before it opens to visitors, and so you have been instructed to build it incrementally in order to bring in much needed revenue as soon as possible.

    Using the vision, goals, and strategy you have created, your team will need to plan out the build (i.e. create a roadmap and release plan for which parts of the venue to build and in which order). You can assume that visitors will come to the venue after your "Release 1", even while the rest is still under construction. Select one member of your team to be designated as the product owner. The entire team will work together to consider options and agree on a roadmap/release plan, but the product owner will be the ultimate decision-maker.

    * Adapted from Rautiainen et al, Toward Agile Product and Portfolio Management, 2015

    Output

    • Practical understanding of how to apply the six tools of product roadmapping.

    Participants

    • PMs, Pos, and SMs
    • Delivery managers
    • Delivery teams
    • Business stakeholders
    • Senior leaders
    • Other interested parties

    Roadmapping Exercise 3.1: Continued

    1. As a team, review vision, goal, and strategy:
      • Is this a "good" vision statement, and if so, why?
      • Does it live up to its definition of being: "notional and inspirational, while also calling out key guidance and constraints"?
      • Does it help you to rule in/out options for the Product?
      • e.g. Would a parking lot fit the vision?
      • What about a bunch of condominiums?
      • What about a theme park?

    Vision, Goals, and Strategy

    Product Vision: Create an architecturally significant venue that will attract both locals and tourists while also generating revenue for the city

    Roadmapping Exercise 3.1: Continued

    1. As a team, review vision, goal, and strategy:

    Vision, Goals, and Strategy

    Product Vision: Create an architecturally significant venue that will attract both locals and tourists while also generating revenue for the city

    An image of a Château-style Hotel (left) and a Gothic-style Cathedral (right)

    Goals: The venue will include a Château-style Hotel, Gothic-style Cathedral, and a Monument dedicated to the city's founder, Ivy Binbetter.

    Strategy: Develop the venue incrementally, focusing on the highest value elements first (prioritizing both usages by visitors and revenue generation).

    Roadmapping Exercise 3.1: Continued

    1. As a team, review the following exercise rules:
    • Your construction team has told you that they can divide the structures into 17 "equal" components (see below)
    • Each component will require about the same amount of time and resources to complete
    • You can ask the team to build these components in any order and temporary roofs can be built for components that are not at the top of a "stack" (e.g. you can build C3 without having to build C4 and C5 at the same time)
    • However, you cannot build the tops of any buildings first (e.g. don't build M3 until M2 and M1 are in place)

    An image of the chateau hotel and the Gothic Cathedral from the previous slide, broken down into 7 parts each

    Roadmapping Exercise 3.1: Continued

    1. As a team, review vision, goal, and strategy:
      • The city has asked you to decide on your "Release 1 MVP" and has limited you to selecting between 4 and 8 components for this MVP (fewer components = earlier opening date).
      • As a team, work together to decide which components will be in your MVP (remember, the PO makes the ultimate decision).
      • Drag your (4-8) selected MVP components over from the right and assemble them below (and explain your reasoning for your MVP selections):

    Release 1 (MVP)

    Vision, Goals, and Strategy

    Product Vision: Create an architecturally significant venue that will attract both locals and tourists while also generating revenue for the city

    Goals: The venue will include a Château-style Hotel, Gothic-style Cathedral, and a Monument dedicated to the city's founder, Ivy Binbetter.

    Strategy: Develop the venue incrementally, focusing on the highest value elements first (prioritizing both usages by visitors and revenue generation).

    An image of the chateau hotel and the Gothic Cathedral from the previous slide, broken down into 7 parts each

    Roadmapping Exercise 3.1: Continued
    (magnified venue)

    An image of the chateau hotel and the Gothic Cathedral from the previous slide, broken down into 7 parts each

    Roadmapping Exercise 3.1: Continued

    1. As a team, decide the rest of your roadmap:
      • The city has asked you to decide on the remainder of your roadmap
      • They have limited you to selecting between 2 and 4 components for each additional release (drag your selected component into each release below):
    Release 2 Release 3 Release 4 Release 5

    Vision, Goals, and Strategy

    Product Vision: Create an architecturally significant venue that will attract both locals and tourists while also generating revenue for the city

    Goals: The venue will include a Château-style Hotel, Gothic-style Cathedral, and a Monument dedicated to the city's founder, Ivy Binbetter.

    Strategy: Develop the venue incrementally, focusing on the highest value elements first (prioritizing both usages by visitors and revenue generation).

    An image of the chateau hotel and the Gothic Cathedral from the previous slide, broken down into 7 parts each

    Roadmapping Exercise 3.1: Continued

    Roadmap, Release Plan and Backlog

    an example roadmap plan; INCREASING: Priority; Requirements detail; Estimate accuracy; Level of commitment.

    Vision, Goals, and Strategy

    Product Vision: Create an architecturally significant venue that will attract both locals and tourists while also generating revenue for the city

    Goals: The venue will include a Château-style Hotel, Gothic-style Cathedral, and a Monument dedicated to the city's founder, Ivy Binbetter.

    Strategy: Develop the venue incrementally, focusing on the highest value elements first (prioritizing both usages by visitors and revenue generation).

    An image of the chateau hotel and the Gothic Cathedral from the previous slide, broken down into 7 parts each

    Roadmapping Exercise 3.2:
    Identify key insights and takeaways

    15 minutes

    1. As a group, discuss and capture your thoughts on:
      1. What key insights have participants gained from the product roadmapping module?
      2. What if any takeaways do participants feel are needed as a result of the module?
      3. What changes need to be made in the organization to support/enhance Agile adoption?
    2. Capture your findings in the table below:
    What key insights have you gained?What takeaways have you identified?
    • (e.g. better understanding of Agile mindset, principles, and practices)
    • (e.g. how you can improve/spread Agile practices in the organization)

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Roadmapping Exercise 3.3
    Perform an exit survey

    30 minutes

    1. Wrap up this section by addressing any remaining questions participants still have.
    2. Create your local exit survey by copying the template using the link below. Then copy and distribute your local survey link.
    3. Collect the consolidated survey results in preparation for your next steps.
    4. NOTE: Using this survey template requires having access to Microsoft Forms. If you cannot access Microsoft Forms, an Info-Tech analyst can send the survey for you. Alternatively, this survey can be done with sticky notes and a pen and paper to calculate the outcomes.

    Download Survey Template:

    Develop Your Agile Approach Exit Survey Template

    Output

    • A better understanding of Agile principles and practices
    • Action items that will help solidify Agile practices in the organization

    Participants

    • Product owners, product managers, and scrum masters
    • Delivery managers
    • Delivery teams
    • Stakeholders
    • Senior leaders

    Appendix

    Additional research to start your journey

    Related Info-Tech Research

    Mentoring for Agile Teams

    • Get practical help and guidance on your Agile transformation journey.

    Implement DevOps Practices That Work

    • Streamline business value delivery through the strategic adoption of DevOps practices.

    Deliver on Your Digital Product Vision

    • Build a product vision your organization can take from strategy through execution.

    Deliver Digital Products at Scale

    • Deliver value at the scale of your organization through defining enterprise product families.

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    Breddels, Dajo, and Paul Kuijten. "Product Owner Value Game." Agile2015 Conference. 2015. Web.
    Cagan, Martin. "Behind Every Great Product." Silicon Valley Product Group. 2005. Web.
    "Chaos Report 2015." The Standish Group, 2015. Accessed 29 July 2022.
    Cohn, Mike. Succeeding With Agile: Software Development Using Scrum. Addison-Wesley. 2010. Web.
    Connellan, Thomas K. Inside the Magic Kingdom, Bard Press, 1997. Print.
    Dyba, Tore, and Torgeir Dingsøyr. "Empirical Studies of Agile Software Development: A Systematic Review." Elsevier, ScienceDirect. 24 Jan. 2008. Web.
    "How do you define a product?" Scrum.org. 4 Apr 2017, Web
    EDUCAUSE. "Aligning IT Funding Models to the Pace of Technology Change." EDUCAUSE. 14 Dec. 2015. Web.
    Eick, Stephen. "Does Code Decay? Assessing the Evidence from Change Management Data." IEEE Transactions on Software Engineering, vol. 27, no. 1, Jan. 2001, pp. 1-12. Web.
    "Enablers." Scaled Agile. n.d. Web.
    "Epic." Scaled Agile. n.d. Web.
    Eringa, Ron. "Evolution of the Product Owner." RonEringa.com. 12 June 2016. Web.
    Fernandes, Thaisa. "Spotify Squad Framework - Part I." Medium.com. 6 Mar. 2017. Web.
    Fowler, Martin. "Application Boundary." MartinFowler.com. 11 Sept. 2003. Web. 20 Nov. 2017.
    Galen, Robert. "Measuring Technical Product Managership – What Does 'Good' Look Like ...." RGalen Consulting. 5 Aug. 2015. Web.
    Hackshall, Robin. "Product Backlog Refinement." Scrum Alliance. 9 Oct. 2014. Web. Feb. 2019.
    Halisky, Merland, and Luke Lackrone. "The Product Owner's Universe." Agile Alliance, Agile2016. 2016. Web.
    Kamer, Jurriaan. "How to Build Your Own 'Spotify Model'." Medium.com. 9 Feb. 2018. Web.
    Karlsson, Johan. "Backlog Grooming: Must-Know Tips for High-Value Products." Perforce. 18 May 2018. Web. Feb. 2019.
    Lindstrom, Lowell. "7 Skills You Need to Be a Great Product Owner." Scrum Alliance. n.d. Web.
    Lawrence, Richard, and Peter Green. "The Humanizing Work Guide to Splitting User Stories." Humanizing Work, 22 Oct. 2020. Web.
    Leffingwell, Dean. "SAFe 5.0." Scaled Agile Inc. 2021. Web. Feb. 2021.
    Lucero, Mario. "Product Backlog – Deep Model." Agilelucero. 8 Oct. 2014. Web.
    Lukassen, Chris. "The Five Belts Of The Product Owner." Xebia.com. 20 Sept. 2016. Web.
    Management 3.0. "Delegation Poker Product Image." Management 3.0. n.d. Web.
    McCloskey, Heather. "Scaling Product Management: Secrets to Defeating Common Challenges." Scaling Product Management: Secrets to Defeating Common Challenges, ProductPlan, 12 July 2019 . Web.
    McCloskey, Heather. "When and How to Scale Your Product Team." UserVoice Blog, UserVoice, 21 Feb. 2017 . Web.
    Medium.com. "Exploring Key Elements of Spotify's Agile Scaling Model." Medium.com. 23 July 2018. Web.
    Mironov, Rich. "Scaling Up Product Manager/Owner Teams: - Rich Mironov's Product Bytes." Rich Mironov's Product Bytes, Mironov Consulting, 12 Apr. 2014 . Web.
    "Most Agile Transformations Will Fail." Vitality Chicago Inc., 24 Jan. 2019.
    Overeem, Barry. "A Product Owner Self-Assessment." Barry Overeem. 6 Mar. 2017. Web.
    Overeem, Barry. "Retrospective: Using the Team Radar." Barry Overeem. 27 Feb. 2017. Web.
    "PI Planning." Scaled Agile. n.d. Web.
    "PI Planning."SAFe. 2020.
    Pichler, Roman. "How to Scale the Scrum Product Owner." Roman Pichler, 28 June 2016 . Web.
    Pichler, Roman. "Product Management Framework." Pichler Consulting Limited. 2014. Web.
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    Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide). 7th ed., Project Management Institute, 2021.
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    Schuurman, Robbin. "10 Tips for Technical Product Managers on Agile Product Management." Scrum.org. 28 Nov. 2017. Web.
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    "Why Agile Fails Because of Corporate Culture - DZone Agile." Dzone.Com. Accessed 31 Aug. 2021.

    page 1 of the appendix
    page 2 of the appendix
    page 3 of the appendix
    page 4 of the appendix

    Cultural advantages of Agile

    Collaboration

    Team members leverage all their experience working towards a common goal.

    Iterations

    Cycles provide opportunities for more product feedback.

    Prioritization

    The most important needs are addressed in the current iteration.

    Continual Improvement

    Self-managing teams continually improve their approach for next iteration.

    A backlog stores and organizes PBIs at various stages of readiness

    A well-formed backlog can be thought of as a DEEP backlog:

    • Detailed Appropriately: Product backlog items (PBIs) are broken down and refined as necessary.
    • Emergent: The backlog grows and evolves over time as PBIs are added and removed.
    • Estimated: The effort a PBI requires is estimated at each tier.
    • Prioritized: The PBIs value and priority are determined at each tier.

    (Perforce, 2018)

    Info-Tech Best Practice

    Don't fully elaborate all of your PBIs at the beginning of the project instead, make sure they are elaborated "just in time." (Keep no more than 2 or 3 sprints worth of user stories in the Ready state.)

    An image showing the Ideas; Qualified; Ready; funnel leading to the sprint aproach.

    Scrum versus Kanban: Key differences

    page 6 of the appendix

    Scrum versus Kanban: When to use each

    Scrum: Delivering related or grouped changes in fixed time intervals.

    • Coordinating the development or release of related items
    • Maturing a product or service
    • Interdependencies between work items

    Kanban: Delivering independent items as soon as each is ready.

    • Work items from ticketing or individual requests
    • Completing independent changes
    • Releasing changes as soon as possible

    Develop an adaptive governance process

    page 7 of the appendix

    Five key principles for building an adaptive governance framework

    Delegate and Empower

    Decision making must be delegated down within the organization, and all resources must be empowered and supported to make effective decisions.

    Define Outcomes

    Outcomes and goals must be clearly articulated and understood across the organization to ensure decisions are in line and stay within reasonable boundaries.

    Make Risk informed decisions

    Integrated risk information must be available with sufficient data to support decision making and design approaches at all levels of the organization.

    Embed / Automate

    Governance standards and activities need to be embedded in processes and practices. Optimal governance reduces its manual footprint while remaining viable. This also allows for more dynamic adaptation.

    Establish standards and behavior

    Standards and policies need to be defined as the foundation for embedding governance practices organizationally. These guardrails will create boundaries to reinforce delegated decision making.

    Maturing governance is a journey

    Organizations should look to progress in their governance stages. Ad-Hoc, and controlled governance tends to be slow, expensive, and a poor fit for modern practices.

    The goal as you progress in your stages is to delegate governance and empower teams to make optimal decisions in real-time, knowing that they are aligned with the understood 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 and able to react effectively to volatility and uncertainty.

    page 8 of the appendix

    Business value is a key component to driving better decision making

    Better Decisions

    • Team Engagement
    • Frequent Delivery
    • Stakeholder Input
    • Market Analysis
    • Articulating Business Value
    • Focus on Business Needs

    Facilitation Planning Tool

    • Double-click the embedded Excel workbook to select and plan your exercises and timing.
    • Place or remove the "X" in the "Add to Agenda" column to add it to the workshop agenda and duration estimate.
    • Verify the exercise and step timing estimates from the blueprint provided on the "Detailed Workshop Planner" in columns C-F and adjust based on your facilitation and intended audience.

    an image of the Facilitation Planning Tool

    Appendix:
    SDLC transformation steps

    Waterfall SDLC: Valuable product delivered at the end of an extended project lifecycle, frequently in years

    Page 1 of the SDLC Appendix.

    • Business separated from delivery of technology it needs, only one third of product is actually valuable (Info-Tech, N=40,000).
    • In Waterfall, a team of experts in specific disciplines hand off different aspects of the lifecycle.
    • Document signoffs are required to ensure integration between silos (Business, Dev, and Ops) and individuals.
    • A separate change request process lays over the entire lifecycle to prevent changes from disrupting delivery.
    • Tools are deployed to support a specific role (e.g. BA) and seldom integrated (usually requirements <-> test).

    Wagile/Agifall/WaterScrumFall SDLC: Valuable product delivered in multiple releases

    Page 2 of the SDLC Appendix.

    • Business is more closely integrated by a business product owner accountable for day-to-day delivery of value for users.
    • The team collaborates and develops cross-functional skills as they define, design, build, and test code over time.
    • Signoffs are reduced but documentation is still focused on satisfying project delivery and operations policy requirements.
    • Change is built into the process to allow the team to respond to change dynamically.
    • Tools start to be integrated to streamline delivery (usually requirements and Agile work management tools).

    Agile SDLC: Valuable product delivered iteratively; frequency depends on Ops' capacity

    Page 3 of the SDLC Appendix.

    • Business users are closely integrated through regularly scheduled demos (e.g. every two weeks).
    • Team is fully cross-functional and collaboratesto plan, define, design, build, and test the code supported by specialists.
    • Documentation is focused on future development and operations needs.
    • Change is built into the process to allow the team to respond to change dynamically.
    • Explore automation for application development (e.g. automated regression testing).

    Agile with DevOps SDLC: High frequency iterative delivery of valuable product (e.g. every two weeks)

    Page 4 of the SDLC Appendix.

    • Business users are closely integrated through regularly scheduled demos.
    • Dev and ops teams collaborate to plan, define, design, build, test, and deploy code supported by automation.
    • Documentation is focused on supporting users, future changes, and operational support.
    • Change is built into the process to allow the team to respond to change dynamically.
    • Build, test, deploy is fully automated (service desk is still separated).

    DevOps SDLC: Continuous integration and delivery

    Page 5 of the SDLC Appendix.

    • Business users are closely integrated through regularly scheduled demos.
    • Fully integrated DevOps team collaborates to plan, define, design, build, test, deploy, and maintain code.
    • Documentation Is focused on future development and use adoption.
    • Change is built into the process to allow the team to respond to change dynamically.
    • Fully integrated development and operations toolchain.

    Fully integrated product SDLC: Agile + DevOps + continuous delivery of valuable product on demand

    Page 6 of the SDLC Appendix.

    • Business users are fully integrated with the teams through dedicated business product owner.
    • Cross-functional teams collaborate across the business and technical life of the product.
    • Documentation supports internal and external needs (business, users, Ops).
    • Change is built into the process to allow the team to respond to change dynamically.
    • Fully integrated toolchain (including service desk).

    Lead Strategic Decision Making With Service Portfolio Management

    • Buy Link or Shortcode: {j2store}397|cart{/j2store}
    • member rating overall impact (scale of 10): 9.0/10 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: Service Management
    • Parent Category Link: /service-management
    • There are no standardized processes for the intake of new ideas and no consistent view of the drivers needed to assess the value of these ideas.
    • IT is spending money on low-value services and doesn’t have the ability to understand and track value in order to prioritize IT investment.
    • CIOs are not trusted to drive innovation.

    Our Advice

    Critical Insight

    • The service portfolio empowers IT to be a catalyst in business strategy, change, and growth.
    • IT must drive value-based investment by understanding value of all services in the portfolio.
    • Organizations must assess the value of their services throughout their lifecycle to optimize business outcomes and IT spend.

    Impact and Result

    • Optimize IT investments by prioritizing services that provide more value to the business, ensuring that you do not waste money on low-value or out-of-date IT services.
    • Ensure that services are directly linked to business objectives, goals, and needs, keeping IT embedded in the strategic vision of the organization.
    • Enable the business to understand the impact of IT capabilities on business strategy.
    • Ensure that IT maintains a strategic and tactical view of the services and their value.
    • Drive agility and innovation by having a streamlined view of your business value context and a consistent intake of ideas.
    • Provide strategic leadership and create new revenue by understanding the relative value of new ideas vs. existing services.

    Lead Strategic Decision Making With Service Portfolio Management Research & Tools

    Start here – read the Executive Brief

    Service portfolio management enables organizations to become strategic value creators by establishing a dynamic view of service value. Understand the driving forces behind the need to manage services through their lifecycles.

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

    1. Establish the service portfolio

    Establish and understand the service portfolio process by setting up the Service Portfolio Worksheet.

    • Lead Strategic Decision Making With Service Portfolio Management – Phase 1: Establish the Service Portfolio
    • Service Portfolio Worksheet

    2. Develop a value assessment framework

    Use the value assessment tool to assess services based on the organization’s context of value.

    • Lead Strategic Decision Making With Service Portfolio Management – Phase 2: Develop a Value Assessment Framework
    • Value Assessment Tool
    • Value Assessment Example Tool

    3. Manage intake and assessment of initiatives

    Create a centralized intake process to manage all new service ideas.

    • Lead Strategic Decision Making With Service Portfolio Management – Phase 3: Manage Intake and Assessment of Initiatives
    • Service Intake Form

    4. Assess active services

    Continuously validate the value of the existing service and determine the future of service based on the value and usage of the service.

    • Lead Strategic Decision Making With Service Portfolio Management – Phase 4: Assess Active Services

    5. Manage and communicate the service portfolio

    Communicate and implement the service portfolio within the organization, and create a mechanism to seek out continuous improvement opportunities.

    • Lead Strategic Decision Making With Service Portfolio Management – Phase 5: Manage and Communicate the Service Portfolio
    [infographic]

    Workshop: Lead Strategic Decision Making With Service Portfolio 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 Establish the Service Portfolio

    The Purpose

    Establish and understand the service portfolio process by setting up the Service Portfolio Worksheet.

    Understand at a high level the steps involved in managing the service portfolio.

    Key Benefits Achieved

    Adapt the Service Portfolio Worksheet to organizational needs and create a plan to begin documenting services in the worksheet.

    Activities

    1.1 Review the Service Portfolio Worksheet.

    1.2 Adapt the Service Portfolio Worksheet.

    Outputs

    Knowledge about the use of the Service Portfolio Worksheet.

    Adapt the worksheet to reflect organizational needs and structure.

    2 Develop a Value Assessment Framework

    The Purpose

    Understand the need for a value assessment framework.

    Key Benefits Achieved

    Identify the organizational context of value through a holistic look at business objectives.

    Leverage Info-Tech’s Value Assessment Tool to validate and determine service value.

    Activities

    2.1 Understand value from business context.

    2.2 Determine the governing body.

    2.3 Assess culture and organizational structure.

    2.4 Complete the value assessment.

    2.5 Discuss value assessment score.

    Outputs

    Alignment on value context.

    Clear roles and responsibilities established.

    Ensure there is a supportive organizational structure and culture in place.

    Understand how to complete the value assessment and obtain a value score for selected services.

    Understand how to interpret the service value score.

    3 Manage Intake and Assessment of Initiatives

    The Purpose

    Create a centralized intake process to manage all new service ideas.

    Key Benefits Achieved

    Encourage collaboration and innovation through a transparent, formal, and centralized service intake process.

    Activities

    3.1 Review or design the service intake process.

    3.2 Review the Service Intake Form.

    3.3 Design a process to assess and transfer service ideas.

    3.4 Design a process to transfer completed services to the service catalog.

    Outputs

    Create a centralized process for service intake.

    Complete the Service Intake Form for a specific initiative.

    Have a process designed to transfer approved projects to the PMO.

    Have a process designed for transferring of completed services to the service catalog.

    4 Assess Active Services

    The Purpose

    Continuously validate the value of existing services.

    Key Benefits Achieved

    Ensure services are still providing the expected outcome.

    Clear next steps for services based on value.

    Activities

    4.1 Discuss/review management of active services.

    4.2 Complete value assessment for an active service.

    4.3 Determine service value and usage.

    4.4 Determine the next step for the service.

    4.5 Document the decision regarding the service outcome.

    Outputs

    Understand how active services must be assessed throughout their lifecycles.

    Understand how to assess an existing service.

    Place the service on the 2x2 matrix based on value and usage.

    Understand the appropriate next steps for services based on value.

    Formally document the steps for each of the IRMR options.

    5 Manage and Communicate Your Service Portfolio

    The Purpose

    Communicate and implement the service portfolio within the organization.

    Key Benefits Achieved

    Obtain buy-ins for the process.

    Create a mechanism to identify changes within the organization and to seek out continuous improvement opportunities for the service portfolio management process and procedures.

    Activities

    5.1 Create a communication plan for service portfolio and value assessment.

    5.2 Create a communication plan for service intake.

    5.3 Create a procedure to continuously validate the process.

    Outputs

    Document the target audience, the message, and how the message should be communicated.

    Document techniques to encourage participation and promote participation from the organization.

    Document the formal review process, including cycle, roles, and responsibilities.

    Create an Effective SEO Keyword Strategy

    • Buy Link or Shortcode: {j2store}568|cart{/j2store}
    • member rating overall impact (scale of 10): 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.

    IT Risk management

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    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Security and Risk
    • Parent Category Link: /security-and-risk
    Mitigation is about balance: take a cost-focused approach to risk management.

    Tell Your Story With Data Visualization

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    • member rating average days saved: N/A
    • Parent Category Name: Business Intelligence Strategy
    • Parent Category Link: /business-intelligence-strategy

    Analysts do not feel empowered to challenge requirements to deliver a better outcome. This alongside underlying data quality issues prevents the creation of accurate and helpful information. Graphic representations do not provide meaningful and actionable insights.

    Our Advice

    Critical Insight

    As organizations strive to become more data-driven, good storytelling with data visualization supports growing corporate data literacy and helps analysts in providing insights that improves organization's decision-making and value-driving processes, which ultimately boosts business performance.

    Impact and Result

    Follow a step-by-step guide to address the business bias of tacet experience over data facts and increase audience's understanding and acceptance toward data solutions.

    Save the lost hours and remove the challenges of reports and dashboards being disregarded due to ineffective usage.

    Gain insights from data-driven recommendations and have decision support to make informed decisions.

    Tell Your Story With Data Visualization Research & Tools

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

    1. Tell Your Story With Data Visualization Deck – Solve challenging business problems more effectively and improve communication with audiences by demonstrating significant insights through data storytelling with impactful visuals.

    Here is our step-by-step process of getting value out of effective storytelling with data visualization:

  • Step 1: Frame the business problem and the outcomes required.
  • Step 2: Explore the potential drivers and formulate hypotheses to test.
  • Step 3: Construct a meaningful narrative which the data supports.
    • Tell Your Story With Data Visualization Storyboard

    2. Storytelling Whiteboard Canvas Template – Plan out storytelling using Info-Tech’s whiteboard canvas template.

    This storytelling whiteboard canvas is a template that will help you create your visualization story narrative by:

  • Identifying the problem space.
  • Finding logical relationships and data identification.
  • Reviewing analysis and initial insights.
  • Building the story and logical conclusion.
    • Storytelling Whiteboard Canvas Template
    [infographic]

    Further reading

    Tell Your Story With Data Visualization

    Build trust with your stakeholders.

    Analyst Perspective

    Build trust with your stakeholders.

    Data visualization refers to graphical representations of data which help an audience understand. Without good storytelling, however, these representations can distract an audience with enormous amounts of data or even lead them to incorrect conclusions.

    Good storytelling with data visualization involves identifying the business problem, exploring potential drivers, formulating a hypothesis, and creating meaningful narratives and powerful visuals that resonate with all audiences and ultimately lead to clear actionable insights.

    Follow Info-Tech's step-by-step approach to address the business bias of tacit experience over data facts, improve analysts' effectiveness and support better decision making.

    Ibrahim Abdel-Kader, Research Analyst

    Ibrahim Abdel-Kader
    Research Analyst,
    Data, Analytics, and Enterprise Architecture

    Nikitha Patel, Research Specialist

    Nikitha Patel
    Research Specialist,
    Data, Analytics, and Enterprise Architecture

    Ruyi Sun, Research Specialist

    Ruyi Sun
    Research Specialist,
    Data, Analytics, and Enterprise Architecture

    Our understanding of the problem

    This research is designed for

    • Business analysts, data analysts, or their equivalent who (in either a centralized or federated operating model) look to solve challenging business problems more effectively and improve communication with audiences by demonstrating significant insights through visual data storytelling.

    This research will also assist

    • A CIO or business unit (BU) leader looking to improve reporting and analytics, reduce time to information, and embrace decision making.

    This research will help you

    • Identify the business problem and root causes that you are looking to address for key stakeholders.
    • Improve business decision making through effective data storytelling.
    • Focus on insight generation rather than report production.
    • Apply design thinking principles to support the collection of different perspectives.

    This research will help them

    • Understand the report quickly and efficiently, regardless of their data literacy level.
    • Grasp the current situation of data within the organization.

    Executive Summary

    Your Challenge Common Obstacles Info-Tech's Approach
    As analysts, you may experience some critical challenges when presenting a data story.
    • The graphical representation does not provide meaningful or actionable insights.
    • Difficulty selecting the right visual tools or technologies to create visual impact.
    • Lack of empowerment, where analysts don't feel like they can challenge requirements.
    • Data quality issues that prevent the creation of accurate and helpful information.
    Some common roadblocks may prevent you from addressing these challenges.
    • Lack of skills and context to identify the root cause or the insight that adds the most value.
    • Lack of proper design or over-visualization of data will mislead/confuse the audience.
    • Business audience bias, leading them to ignore reliable insights presented.
    • Lack of the right access to obtain data could hinder the process.
    • Understand and dissect the business problem through Info-Tech's guidance on root cause analysis and design thinking process.
    • Explore each potential hypothesis and construct your story's narratives.
    • Manage data visualization using evolving tools and create visual impact.
    • Inform business owners how to proceed and collect feedback to achieve continuous improvement.

    Info-Tech Insight
    As organizations strive to become more data-driven, good storytelling with data visualization supports growing corporate data literacy and helps analysts provide insights that improve organizational decision-making and value-driving processes, which ultimately boosts business performance.

    Glossary

    • Data: Facts or figures, especially those stored in a computer, that can be used for calculating, reasoning, or planning. When data is processed, organized, structured, or presented in a given context to make it useful, it is called information. Data leaders are accountable for certain data domains and sets.
    • Data storytelling: The ability to create a narrative powered by data and analytics that supports the hypothesis and intent of the story. Narrators of the story should deliver a significant view of the message in a way easily understood by the target audience. Data visualization can be used as a tactic to enhance storytelling.
    • Data visualization: The ability to visually represent a complete story to the target audience powered by data & analytics, using data storytelling as an enabling mechanism to convey narratives. Typically, there are two types of visuals used as part of data visualization: explanatory/informative visuals (the entire story or specific aspects delivered to the audience) and exploratory visuals (the collected data used to clarify what questions must be answered).
    • Data literacy: The ability to read, work with, analyze, and argue with data. Easy access to data is essential to exercising these skills. All organizational employees involved with data-driven decisions should learn to think critically about the data they use for analytics and how they assess and interpret the results of their work.
    • Data quality: A measure of the condition of data based on factors such as accuracy, completeness, consistency, reliability, and being up-to-date. This is about how well-suited a data set is to serve its intended purpose, therefore business users and stakeholders set the standards for what is good enough. The governance function along with IT ensures that data quality measures are applied, and corrective actions taken.
    • Analytics/Business intelligence (BI): A technology-driven process for analyzing data and delivering actionable information that helps executives, managers, and workers make informed business decisions. As part of the BI process, organizations collect data from internal IT systems and external sources, prepare it for analysis, run queries against the data, and create data visualizations.
      Note: In some frameworks, analytics and BI refer to different types of analyses (i.e. analytics predict future outcomes, BI describes what is or has been).

    Getting value out of effective storytelling with data visualization

    Data storytelling is gaining wide recognition as a tool for supporting businesses in driving data insights and making better strategic decisions.

    92% of respondents agreed that data storytelling is an effective way of communicating or delivering data and analytics results.

    87% of respondents agreed that if insights were presented in a simpler/clearer manner, their organization's leadership team would make more data-driven decisions.

    93% of respondents agreed that decisions made based on successful data storytelling could potentially help increase revenue.

    Source: Exasol, 2021

    Despite organizations recognizing the value of data storytelling, issues remain which cannot be remedied solely with better technology.

    61% Top challenges of conveying important insights through dashboards are lack of context (61%), over-communication (54%), and inability to customize contents for intended audiences (46%).

    49% of respondents feel their organizations lack storytelling skills, regardless of whether employees are data literate.

    Source: Exasol, 2021

    Info-Tech Insight
    Storytelling is a key component of data literacy. Although enterprises are increasingly investing in data analytics software, only 21% of employees are confident with their data literacy skills. (Accenture, 2020)

    Prerequisite Checklist

    Before applying Info-Tech's storytelling methodology, you should have addressed the following criteria:

    • Select the right data visualization tools.
    • Have the necessary training in statistical analysis and data visualization technology.
    • Have competent levels of data literacy.
    • Good quality data founded on data governance and data architecture best practices.

    To get a complete view of the field you want to explore, please refer to the following Info-Tech resources:

    Select and Implement a Reporting and Analytics Solution

    Build a Data Architecture Roadmap

    Establish Data Governance

    Build Your Data Quality Program

    Foster Data-Driven Culture With Data Literacy

    Info-Tech's Storytelling With Data Visualization Framework

    Data Visualization Framework

    Info-Tech Insight
    As organizations strive to become more data-driven, good storytelling with data visualization supports growing corporate data literacy and helps analysts provide insights that improve organizational decision-making and value-driving processes, which ultimately boosts business performance.

    Research Benefits

    Member Benefits Business Benefits
    • Reduce time spent on getting your audience in the room and promote business involvement with the project.
    • Eliminate ineffectively used reports and dashboards being disregarded for lack of storytelling skills, resulting in real-time savings and monetary impact.
    • Example: A $50k reporting project has a 49% risk of the company being unable to communicate effective data stories (Exasol, 2021). Therefore, a $50k project has an approx. 50% chance of being wasted. Using Info-Tech's methodology, members can remove the risk, saving $25k and the time required to produce each report.
    • Address the common business bias of tacit experience over data-supported facts and increase audience understanding and acceptance of data-driven solutions.
    • Clear articulation of business context and problem.
    • High-level improvement objectives and return on investment (ROI).
    • Gain insights from data-driven recommendations to assist with making informed decisions.

    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 are used throughout all four options.

    IT Service Management Selection Guide

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    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk
    • Your ITSM solution that was once good enough is no longer adequate for a rapidly evolving services culture.
    • Processes and data are disconnected with multiple workarounds and don’t allow the operations team to mature processes.
    • The workarounds, disparate systems, and integrations you’ve implemented to solve IT operations issues are no longer adequate.

    Our Advice

    Critical Insight

    • Accessing funding for IT solutions can be challenging when the solution isn’t obviously aligned to the business need.
    • To maximize value and stakeholder satisfaction, determine use cases early, engage the right stakeholders, and define success.
    • Choosing a solution for a single purpose and then expanding it to cover other use cases can be a very effective use of technology dollars. However, spending the time up front to determine which use cases should be included and which will need a separate best-of-breed solution will make the best use of your investment.

    Impact and Result

    • Create a business case that defines use cases and requirements.
    • Shorten the list of viable vendors by matching vendors to use cases.
    • Determine which features are most important to reach your goals and select the best-matched vendor.

    IT Service Management Selection Guide Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how Info-Tech’s methodology will provide a quick solution to selecting ITSM vendors 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. Build a business case

    Create a light business case to gain buy-in and define goals, milestones, and use cases.

    • IT Service Management Business Case Template

    2. Define requirements

    Create your list of requirements and shortlist vendors.

    • The ITSM Vendor Evaluation Workbook
    [infographic]