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

Implement Crisis Management Best Practices

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  • Parent Category Name: DR and Business Continuity
  • Parent Category Link: /business-continuity
  • There’s a belief that you can’t know what crisis will hit you next, so you can’t prepare for it. As a result, resilience planning stops at more-specific planning such as business continuity planning or IT disaster recovery planning.
  • Business contingency and IT disaster recovery plans focus on how to resume normal operations following an incident. The missing piece is the crisis management plan – the overarching plan that guides the organization’s initial response, assessment, and action.
  • Organizations without a crisis management plan are far less able to minimize the impact of other crises such as a security breach, health & safety incident, or attacks on their reputation.

Our Advice

Critical Insight

  • Effective crisis management has a long-term demonstrable impact on your organization, long after the crisis is resolved. While all organizations can expect a short-term negative impact when a crisis hits, if the crisis is managed well, the research shows that your market capitalization can actually increase long term.
  • Crisis communication is more science than art and should follow a structured approach. Crisis communication is about more than being a good writer or having a social media presence. There are specific messages that must be included, and specific audiences to target, to get the results you need.
  • IT has a critical role in non-IT crises (as well as IT crises). Many crises are IT events (e.g. security breach). For non-IT events, IT is critical in supporting crisis communication and the operational response (e.g. COVID-19 and quickly ramping up working-from-home).

Impact and Result

  • You can anticipate the types of crisis your organization may face in the future and build flexible plans that can be adapted in a crisis to meet the needs of the moment.
  • Identify potential crises that present a high risk to your organization.
  • Document emergency response and crisis response plans that provide a framework for addressing a range of crises.
  • Establish crisis communication guidelines to avoid embarrassing and damaging communications missteps.

Implement Crisis Management Best Practices Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should implement crisis management best practices, 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 potential crises and your crisis management team

Identify, analyze, and prioritized potential crises based on risk to the organization. Set crisis management team roles and responsibilities. Adopt a crisis management framework.

  • Example Crisis Management Process Flowcharts (Visio)
  • Example Crisis Management Process Flowcharts (PDF)
  • Business Continuity Teams and Roles Tool

2. Document your emergency and crisis response plans

Document workflows for notification, situational assessment, emergency response, and crisis response.

  • Emergency Response Plan Checklist
  • Emergency Response Plan Summary
  • Emergency Response Plan Staff Instructions
  • Pandemic Response Plan Example
  • Pandemic Policy

3. Document crisis communication guidelines

Develop and document guidelines that support the creation and distribution of crisis communications.

  • Crisis Communication Guidelines and Templates

4. Complete and maintain your crisis management plan

Summarize your crisis management and response plans, create a roadmap to implement potential improvement projects, develop training and awareness initiatives, and schedule maintenance to keep the plan evergreen.

  • Crisis Management Plan Summary Example
  • BCP Project Roadmap Tool
  • Organizational Learning Guide
[infographic]

Workshop: Implement Crisis Management Best Practices

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 Potential Crises and Your Crisis Management Team

The Purpose

Identify and prioritize relevant potential crises.

Key Benefits Achieved

Enable crisis management pre-planning and identify gaps in current crisis management plans.

Activities

1.1 Identify high-risk crises.

1.2 Assign roles and responsibilities on the crisis management team.

1.3 Review Info-Tech’s crisis management framework.

Outputs

List of high-risk crises.

CMT membership and responsibilities.

Adopt the crisis management framework and identify current strengths and gaps.

2 Document Emergency Response and Crisis Management Plans

The Purpose

Outline emergency response and crisis response plans.

Key Benefits Achieved

Develop and document procedures that enable rapid, effective, and reliable crisis and emergency response.

Activities

2.1 Develop crisis notification and assessment procedures.

2.2 Document your emergency response plans.

2.3 Document crisis response plans for potential high-risk crises.

Outputs

Documented notification and assessment workflows.

Emergency response plans and checklists.

Documented crisis response workflows.

3 Document Crisis Communication Guidelines

The Purpose

Define crisis communication guidelines aligned with an actionable crisis communications framework.

Key Benefits Achieved

Document workflows and guidelines support crisis communications.

Activities

3.1 Establish the elements of baseline crisis communications.

3.2 Identify audiences for the crisis message.

3.3 Modify baseline communication guidelines based on audience and organizational responsibility.

3.4 Create a vetting process.

3.5 Identify communications channels.

Outputs

Baseline communications guidelines.

Situational modifications to crisis communications guidelines.

Documented vetting process.

Documented communications channels

4 Complete and Maintain Your Crisis Management Plan

The Purpose

Summarize the crisis management plan, establish an organizational learning process, and identify potential training and awareness activities.

Key Benefits Achieved

Plan ahead to keep your crisis management practice evergreen.

Activities

4.1 Review the CMP Summary Template.

4.2 Create a project roadmap to close gaps in the crisis management plan.

4.3 Outline an organizational learning process.

4.4 Schedule plan reviews, testing, and updates.

Outputs

Long-term roadmap to improve crisis management capabilities.

Crisis management plan maintenance process and awareness program.

Run Better Meetings

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  • Parent Category Name: Voice & Video Management
  • Parent Category Link: /voice-video-management

Your newly hybrid workplace will include virtual, hybrid, and physical meetings, presenting several challenges:

  • The experience for onsite and remote attendees is not equal.
  • Employees are experiencing meeting and video fatigue.
  • Meeting rooms are not optimized for hybrid meetings.
  • The fact is that many people have not successfully run hybrid meetings before.

Our Advice

Critical Insight

  • Successful hybrid workplace plans must include planning around hybrid meetings. Seamless hybrid meetings are the result of thoughtful planning and documented best practices.

Impact and Result

  • Identify your current state and the root cause of unsatisfactory meetings.
  • Review and identify meetings best practices around meeting roles, delivery models, and training.
  • Improve the technology that supports meetings.
  • Use Info-Tech’s quick checklists and decision flowchart to accelerate meeting planning and cover your bases.

Run Better Meetings Research & Tools

Start here – read the Executive Brief

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

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

1. Identify the current state of meetings

Understand the problem before you try to fix it. Before you can improve meetings, you need to understand what your norms and challenges currently are.

  • Checklist: Run a Virtual or Hybrid Meeting

2. Publish best practices for how meetings should run

Document meeting roles, expectations, and how meetings should run. Decide what kind of meeting delivery model to use and develop a training program.

  • Meeting Challenges and Best Practices
  • Meeting Type Decision Flowchart (Visio)
  • Meeting Type Decision Flowchart (PDF)

3. Improve meeting technology

Always be consulting with users: early in the process to set a benchmark, during and after every meeting to address immediate concerns, and quarterly to identify trends and deeper issues.

  • Team Charter
  • Communications Guide Poster Template
[infographic]

Workshop: Run Better Meetings

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 Current State of Meetings

The Purpose

Understand the current state of meetings in your organization.

Key Benefits Achieved

What you need to keep doing and what you need to change

Activities

1.1 Brainstorm meeting types.

1.2 Document meeting norms.

1.3 Document and categorize meeting challenges.

Outputs

Documented challenges with meetings

Meeting norms

Desired changes to meeting norms

2 Review and Identify Best Practices

The Purpose

Review and implement meeting best practices.

Key Benefits Achieved

Defined meeting best practices for your organization

Activities

2.1 Document meeting roles and expectations.

2.2 Review common meeting challenges and identify best practices.

2.3 Document when to use a hybrid meeting, virtual meeting, or an in-person meeting.

2.4 Develop a training program.

Outputs

Meeting roles and expectations

List of meeting best practices

Guidelines to help workers choose between a hybrid, virtual, or in-person meeting

Training plan for meetings

3 Improve Meeting Technology

The Purpose

Identify opportunities to improve meeting technology.

Key Benefits Achieved

A strategy for improving the underlying technologies and meeting spaces

Activities

3.1 Empower virtual meeting attendees.

3.2 Optimize spaces for hybrid meetings.

3.3 Build a team of meeting champions.

3.4 Iterate to build and improve meeting technology.

3.5 Guide users toward each technology.

Outputs

Desired improvements to meeting rooms and meeting technology

Charter for the team of meeting champions

Communications Guide Poster

Reduce Risk With Rock-Solid Service-Level Agreements

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  • Parent Category Name: Vendor Management
  • Parent Category Link: /vendor-management

Organizations can struggle to understand what service-level agreements (SLAs) are required and how they can differ depending on the service type. In addition, these other challenges can also cloud an organization’s knowledge of SLAs:

  • No standardized SLAs documents, service levels, or metrics
  • Dealing with lost productivity and revenue due to persistent downtime
  • Not understanding SLAs components and what service levels are required for a particular service
  • How to manage the SLA and hold the vendor accountable

Our Advice

Critical Insight

SLAs need to have clear, easy-to-measure objectives, to meet expectations and service level requirements, including meaningful reporting and remedies to hold the provider accountable to its obligations.

Impact and Result

This project will provide several benefits and learnings for almost all IT workers:

  • Better understanding of an SLA framework and required SLA elements
  • Standardized service levels and metrics aligned to the organization’s requirements
  • Reduced time in reviewing, evaluating, and managing service provider SLAs

Reduce Risk With Rock-Solid Service-Level Agreements Research & Tools

Start here – Read our Executive Brief

Understand how to resolve your challenges with SLAs and their components and ensuring adequate metrics. Learn how to create meaningful SLAs that meet your requirements and manage them effectively.

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

1. Understand SLA elements – Understand the elements of SLAs, service types, service levels, metrics/KPIs, monitoring, and reporting

  • SLA Checklist
  • SLA Evaluation Tool

2. Create requirements – Create your own SLA criteria and templates that meet your organization’s requirements

  • SLA Template & Metrics Reference Guide

3. Manage obligations – Learn the SLA Management Framework to track providers’ performance and adherence to their commitments.

  • SLO Tracker & Trending Tool

Infographic

Workshop: Reduce Risk With Rock-Solid Service-Level Agreements

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 the Elements of SLAs

The Purpose

Understand key components and elements of an SLA.

Key Benefits Achieved

Properly evaluate an SLA for required elements.

Activities

1.1 SLA overview, objectives, SLA types, service levels

1.2 SLA elements and objectives

1.3 SLA components: monitoring, reporting, and remedies

1.4 SLA checklist review

Outputs

SLA Checklist 

Evaluation Process

SLA Checklist

Evaluation Process

SLA Checklist

Evaluation Process

SLA Checklist

Evaluation Process

2 Create SLA Criteria and Management Framework

The Purpose

Apply knowledge of SLA elements to create internal SLA requirements.

Key Benefits Achieved

Templated SLAs that meet requirements.

Framework to manage SLOs.

Activities

2.1 Creating SLA criteria and requirements

2.2 SLA templates and policy

2.3 SLA evaluation activity

2.4 SLA Management Framework

2.5 SLA monitoring, tracking, and remedy reconciliation

Outputs

Internal SLA Management Framework

Evaluation of current SLAs

SLA tracking and trending

Internal SLA Management Framework

Evaluation of current SLAs

SLA tracking and trending

Internal SLA Management Framework

Evaluation of current SLAs

SLA tracking and trending

Internal SLA Management Framework

Evaluation of current SLAs

SLA tracking and trending

Internal SLA Management Framework

Evaluation of current SLAs

SLA tracking and trending

Further reading

Reduce Risk With Rock-Solid Service-Level Agreements

Hold Service Providers more accountable to their contractual obligations with meaningful SLA components & remedies

EXECUTIVE BRIEF

Analyst Perspective

Reduce Risk With Rock-Solid Service-Level Agreements

Every year organizations outsource more and more IT infrastructure to the cloud, and IT operations to managed service providers. This increase in outsourcing presents an increase in risk to the CIO to save on IT spend through outsourcing while maintaining required and expected service levels to internal customers and the organization. Ensuring that the service provider constantly meets their obligations so that the CIO can meet their obligation to the organization can be a constant challenge. This brings forth the importance of the Service Level Agreement.

Research clearly indicates that there is a general lack of knowledge when comes to understanding the key elements of a Service Level Agreement (SLA). Even less understanding of the importance of the components of Service Levels and the Service Level Objectives (SLO) that service provider needs to meet so that the outsourced service consistently meets requirements of the organization. Most service providers are very good at providing the contracted service and they all are very good at presenting SLOs that are easy to meet with very few or no ramifications if they don’t meet their objectives. IT leaders need to be more resolute in only accepting SLOs that are meaningful to their requirements and have meaningful, proactive reporting and associated remedies to hold service providers accountable to their obligations.

Ted Walker

Principal Research Director, Vendor Practice

Info-Tech Research Group

Executive Brief

Vendors provide service level commitments to customers in contracts to show a level of trust, performance, availability, security, and responsiveness in an effort create a sense of confidence that their service or platform will meet your organization’s requirements and expectations. Sifting through these promises can be challenging for many IT Leaders. Customers struggle to understand and evaluate what’s in the SLA – are they meaningful and protect your investment? Not understanding the details of SLAs applicable to various types of Service (SaaS, MSP, Service Desk, DR, ISP) can lead to financial and compliance risk for the organization as well as poor customer satisfaction.

This project will provide IT leadership the knowledge & tools that will allow them to:

  • Understand what SLAs are and why they need them.
  • Develop standard SLAs that meet the organization’s requirements.
  • Negotiate meaningful remedies aligned to Service Levels metrics or KPIs.
  • Create SLA monitoring & reporting and remedies requirements to hold the provider accountable.

This research:

  1. Is designed for:
  • The CIO or CFO who needs to better understand their provider’s SLAs.
  • The CIO or BU that could benefit from improved service levels.
  • Vendor management who needs to standardize SLAs for the organization IT leadership that needs consistent service levels to the business
  • The contract manager who needs a better understanding of contact SLAs
  • Will help you:
    • Understand what a Service Level Agreement is and what it’s for
    • Learn what the components are of an SLA and why you need them
    • Create a checklist of required SLA elements for your organization
    • Develop standard SLA template requirements for various service types
    • Learn the importance of SLA management to hold providers accountable
  • Will also assist:
    • Vendor management
    • Procurement and sourcing
    • Organizations that need to understand SLAs within contract language
    • With creating standardized monitoring & reporting requirements
    • Organizations get better position remedies & credits to hold vendors accountable to their commitments
  • Reduce Risk With Rock-Solid Service-Level Agreements (SLAs)

    Hold service providers more accountable to their contractual obligations with meaningful SLA components and remedies

    The Problem

    IT Leadership doesn't know how to evaluate an SLA.

    Misunderstanding of obligations given the type of service provided (SAAS, IAAS, DR/BCP, Service Desk)

    Expectations not being met, leading to poor service from the provider.

    No way to hold provider accountable.

    Why it matters

    SLAS are designed to ensure that outsourced IT services meet the requirements and expectations of the organization. Well-written SLAs with all the required elements, metrics, and remedies will allow IT departments to provide the service levels to their customer and avoid financial and contractual risk to the organization.

    The Solution

    1. Understand the key service elements within an SLA
    • Develop a solid understanding of the key elements within an SLA and why they're important.
  • Establish requirements to create SLA criteria
    • Prioritize contractual services and establish concise SLA checklists and performance metrics.
  • Manage SLA obligations to ensure commitments are met
    • Review the five steps for effective SLA management to track provider performance and deal with chronic issues.
  • Service types

    • Availability/Uptime
    • Response Times
    • Resolution Time
    • Accuracy
    • First-Call Resolution

    Agreement Types

    • SaaS/IaaS
    • Service Desk
    • MSP
    • Co-Location
    • DR/BCP
    • Security Ops

    Performance Metrics

    • Reporting
    • Remedies & Credits
    • Monitoring
    • Exclusion

    Example SaaS Provider

    • Response Times ✓
    • Availability/Uptime ✓
    • Resolution Time ✓
    • Update Times ✓
    • Coverage Time ✓
    • Monitoring ✓
    • Reporting ✓
    • Remedies/Credits ✓

    SLA Management Framework

    1. SLO Monitoring
    • SLOs must be monitored by the provider, otherwise they can't be measured.
  • Concise Reporting
    • This is the key element for the provider to validate their performance.
  • Attainment Tracking
    • Capturing SLO metric attainment provides performance trending for each provider.
  • Score carding
    • Tracking details provide input into overall vendor performance ratings.
  • Remedy Reconciliation
    • From SLO tracking, missed SLOs and associated credits needs to be actioned and consumed.
  • Executive Summary

    Your Challenge

    To understand which SLAs are required for your organization and how they can differ depending on the service type. In addition, these other challenges can also cloud your knowledge of SLAs

    • No standardized SLA documents, Service levels, or metrics
    • Dealing with lost productivity & revenue due to persistent downtime
    • Understanding SLA components and what service levels are requires for a particular service
    • How to manage the SLA and hold the vendor accountable

    Common Obstacles

    There are several unknowns that SLA can present to different departments within the organization:

    • Little knowledge of what service levels are required
    • Not knowing SLO standards for a service type
    • Lack of resources to manage vendor obligations
    • Negotiating required metrics/KPIs with the provider
    • Low understanding of the risk that poor SLAs can present to the organization

    Info-Tech's Approach

    Info-Tech has a three-step approach to effective SLAs

    • Understand the elements of an SLA
    • Create Requirements for your organization
    • Manage the SLA obligations

    There are some basic components that every SLA should have – most don’t have half of what is required

    Info-Tech Insight

    SLAs need to have clear, easy to measure objectives to meet your expectations and service level requirements, including meaningful reporting and remedies to hold the provider accountable to their obligations.

    Your challenge

    This research is designed to help organizations gain a better understanding of what an SLA is, understand the importance of SLAs in IT contracts, and ensure organizations are provided with rock-solid SLAs that meet their requirements and not just what the vendor wants to provide.

    • Vendors can make SLAs weak and difficult to understand; sometimes the metrics are meaningless. Not fully understanding what makes up a good SLA can bring unknown risks to the organization.
    • Managing vendor SLA obligations effectively is important. Are adequate resources available? Does the vendor provide manual vs. automated processes and which do you need? Is the process proactive from the vendor or reactive from the customer?

    SLAs come in many variations and for many service types. Understanding what needs to be in them is one of the keys to reducing risk to your organization.

    “One of the biggest mistakes an IT leader can make is ignoring the ‘A’ in SLA,” adds Wendy M. Pfeiffer, CIO at Nutanix. “

    An agreement isn’t a one-sided declaration of IT capabilities, nor is it a one-sided demand of business requirements,” she says. “An agreement involves creating a shared understanding of desired service delivery and quality, calculating costs related to expectations, and then agreeing to outcomes in exchange for investment.” (15 SLA mistakes IT leaders still make | CIO)

    Common obstacles

    There are typically a lot of unknowns when it comes to SLAs and how to manage them.

    Most organizations don’t have a full understanding of what SLAs they require and how to ensure they are met by the vendor. Other obstacles that SLAs can present are:

    • Inadequate resources to create and manage SLAs
    • Poor awareness of standard or required SLA metrics/KPIs
    • Lack of knowledge about each provider’s commitment as well as your obligations
    • Low vendor willingness to provide or negotiate meaningful SLAs and credits
    • The know-how or resources to effectively monitor and manage the SLA’s performance

    SLAs need to address your requirements

    55% of businesses do not find all of their service desk metrics useful or valuable (Freshservice.com)

    27% of businesses spend four to seven hours a month collating metric reports (Freshservice.com)

    Executive Summary

    Info-Tech’s Approach

    • Understand the elements of an SLA
      • Availability
      • Monitoring
      • Response Times
      • SLO Calculation
      • Resolution Time
      • Reporting
      • Milestones
      • Exclusions
      • Accuracy
      • Remedies & Credits
    • Create standard SLA requirements and criteria
      • SLA Element Checklist
      • Corporate Requirements and Standards
      • SLA Templates and Policy
    • Effectively Manage the SLA Obligations
      • SLA Management Framework
        • SLO Monitoring
        • Concise Reporting
        • Attainment Tracking
        • Score Carding
        • Remedy Reconciliation

    Info-Tech’s three phase approach

    Reduce Risk With Rock-Solid Service-Level Agreements

    Phase 1

    Understand SLA Elements

    Phase Content:

    • 1.1 What are SLAs, types of SLAs, and why are they needed?
    • 1.2 Elements of an SLA
    • 1.3 Obligation management monitoring, Reporting requirements
    • 1.4 Exclusions
    • 1.5 SLAs vs. SLOs vs. SLIs

    Outcome:

    This phase will present you with an understanding of the elements of an SLA: What they are, why you need them, and how to validate them.

    Phase 2

    Create Requirements

    Phase Content:

    • 2.1 Create a list of your SLA criteria
    • 2.2 Develop SLA policy & templates
    • 2.3 Create a negotiation strategy
    • 2.4 SLA Overachieving discussion

    Outcome:

    This phase will leverage knowledge gained in Phase 1 and guide you through the creation of SLA requirements, criteria, and templates to ensure that providers meet the service level obligations needed for various service types to meet your organization’s service expectations.

    Phase 3

    Manage Obligations

    Phase Content:

    • 3.1 SLA Monitoring, Tracking
    • 3.2 Reporting
    • 3.3 Vendor SLA Reviews & Optimizing
    • 3.4 Performance management

    Outcome:

    This phase will provide you with an SLA management framework and the best practices that will allow you to effectively manage service providers and their SLA obligations.

    Insight summary

    Overarching insight

    SLAs need to have clear, easy-to-measure objectives to meet your expectations and service level requirements, including meaningful reporting and remedies to hold the provider accountable to their obligations.

    Phase 1 insight

    Not understanding the required elements of an SLA and not having meaningful remedies to hold service providers accountable to their obligations can present several risk factors to your organization.

    Phase 2 insight

    Creating standard SLA criteria for your organization’s service providers will ensure consistent service levels for your business units and customers.

    Phase 3 insight

    SLAs can have appropriate SLOs and remedies but without effective management processes they could become meaningless.

    Tactical insight

    Be sure to set SLAs that are easily measurable from regularly accessible data and that are straight forward to interpret.

    Tactical insight

    Beware of low, easy to attain service levels and metrics/KPIs. Service levels need to meet your expectations and needs not the vendor’s.

    Blueprint deliverables

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

    SLA Tracker & Trending Tool

    Track the provider’s SLO attainment and see how their performance is trending over time

    SLA Evaluation Tool

    Evaluate SLA service levels, metrics, credit values, reporting, and other elements

    SLA Template & Metrics Reference Guide

    Reference guide for typical SLA metrics with a generic SLA Template

    Service-Level Agreement Checklist

    Complete SLA component checklist for core SLA and contractual elements.

    Key deliverable:

    Service-Level Agreement Evaluation Tool

    Evaluate each component of the SLA , including service levels, metrics, credit values, reporting, and processes to meet your requirements

    Blueprint objectives

    Understand the components of an SLA and effectively manage their obligations

    • To provide an understanding of different types of SLAs, their required elements, and what they mean to your organization. How to identify meaningful service levels based on service types. We will break down the elements of the SLA such as service types and define service levels such as response times, availability, accuracy, and associated metrics or KPIs to ensure they are concise and easy to measure.
    • To show how important it is that all metrics have remedies to hold the service provider accountable to their SLA obligations.

    Once you have this knowledge you will be able to create and negotiate SLA requirements to meet your organization’s needs and then manage them effectively throughout the term of the agreement.

    InfoTech Insight:

    Right-size your requirements and create your SLO criteria based on risk mitigation and create measurements that motivate the desired behavior from the SLA.

    Blueprint benefits

    IT Benefits

    • An understanding of standard SLA service levels and metrics
    • Reduced financial risk through clear and concise easy-to-measure metrics and KPIs
    • Improved SLA commitments from the service provider
    • Meaningful reporting and remedies to hold the provider accountable
    • Service levels and metrics that meet your requirements to support your customers

    Business Benefits

    • Better understanding of an SLA framework and required SLA elements
    • Improved vendor performance
    • Standardized service levels and metrics aligned to your organization’s requirements
    • Reduced time in reviewing and comprehending vendor SLAs
    • Consistent performance from your service providers

    Measure the value of this blueprint

    1. Dollars Saved
    • Improved performance from your service provider
    • Reduced financial risk through meaningful service levels & remedies
    • Dollars gained through:
      • Reconciled credits from obligation tracking and management
      • Savings due to automated processes
  • Time Saved
    • Reduced time in creating effective SLAs through requirement templates
    • Time spent tracking and managing SLA obligations
    • Reduced negotiation time
    • Time spent tracking and reconciling credits
  • Knowledge Gained
    • Understanding of SLA elements, service levels, service types, reporting, and remedies
    • Standard metrics and KPIs required for various service types and levels
    • How to effectively manage the service provider obligations
    • Tactics to negotiate appropriate service levels to meet your requirements
  • 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 wound 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 a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between three to six calls over the course of two to three months.

    Phase 1 - Understand

    • Call #1: Scope requirements, objectives, and your specific SLA challenges

    Phase 2 - Create Requirements

    • Call #2: Review key SLA and how to identify them
    • Call #3: Deep dive into SLA elements and why you need them
    • Call #4: Review your service types and SLA criteria
    • Call #5: Create internal SLA requirements and templates

    Phase 3 - Management

    • Call #6: Review SLA Management Framework
    • Call #7: Review and create SLA Reporting and Tracking

    Workshop Overview

    Contact your account representative for more information.

    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2
    Understanding SLAs SLA Templating & Management
    Activities

    1.1 SLA overview, objectives, SLA types, service levels

    1.2 SLA elements and objectives

    1.3 SLA components – monitoring, reporting, remedies

    1.4 SLA Checklist review

    2.1 Creating SLA criteria and requirements

    2.2 SLA policy & template

    2.3 SLA evaluation activity

    2.4 SLA management framework

    2.5 SLA monitoring, tracking, remedy reconciliation

    Deliverables
    1. SLA Checklist
    2. SLA policy & template creation
    3. SLA management gap analysis
    1. Evaluation of current SLAs
    2. SLA tracking and trending
    3. Create internal SLA management framework

    Reduce Risk With Rock-Solid Service-Level Agreements

    Phase 1

    Phase 1

    Understand SLA Elements

    Phase Steps

    • 1.1 What are SLAs, the types of SLAs, and why are they needed?
    • 1.2 Elements of an SLA
    • 1.3 Obligation management monitoring, Reporting requirements
    • 1.4 Exclusions and exceptions
    • 1.5 SLAs vs. SLOs vs. SLIs

    Create Requirements

    Manage Obligations

    1.1 What are SLAs, the types of SLAs, and why are they needed?

    SLA Overview

    What is a Service Level Agreement?

    An SLA is an overarching contractual agreement between a service provider and a customer (can be external or internal) that describes the services that will be delivered by the provider. It describes the service levels and associated performance metrics and expectations, how the provider will show it has attained the SLAs, and defines any remedies or credits that would apply if the provider fails to meet its commitments. Some SLAs also include a change or revision process.

    SLAs come in a few forms. Some are unique, separate, standalone documents that define the service types and levels in more detail and is customized to your needs. Some are separate documents that apply to a service and are web posted or linked to an MSA or SSA. The most common is to have them embedded in, or as an appendix to an MSA or SSA. When negotiating an MSA it’s generally more effective to negotiate better service levels and metrics at the same time.

    Objectives of an SLA

    To be effective, SLAs need to have clearly described objectives that define the service type(s) that the service provider will perform, along with commitment to associated measurable metrics or KPIs that are sufficient to meet your expectations. The goal of these service levels and metrics is to ensure that the service provider is committed to providing the service that you require, and to allow you to maintain service levels to your customers whether internal or external.

    1.1 What are SLAs, the types of SLAs, and why are they needed?

    Key Elements of an SLA

    Principle service elements of an SLA

    There are several more common service-related elements of an SLA. These generally include:

    • The Agreement – the document that defines service levels and commitments.
    • The service types – the type of service being provided by the vendor. These can include SaaS, MSP, Service Desk, Telecom/network, PaaS, Co-Lo, BCP, etc.
    • The service levels – these are the measurable performance objectives of the SLA. They include availability (uptime), response times, restore times, priority level, accuracy level, resolution times, event prevention, completion time, etc.
    • Metrics/KPIs – These are the targets or commitments associated to the service level that the service provider is obligated to meet.
    • Other elements – Reporting requirements, monitoring, remedies/credit values and process.

    Contractual Construct Elements

    These are construct components of an SLA that outline their roles and responsibilities, T&Cs, escalation process, etc.

    In addition, there are several contractual-type elements including, but not limited to:

    • A statement regarding the purpose of the SLA.
    • A list of services being supplied (service types).
    • An in-depth description of how services will be provided and when.
    • Vendor and customer requirements.
    • Vendor and customer obligations.
    • Acknowledgment/acceptance of the SLA.
    • They also list each party’s responsibilities and how issues will be escalated and resolved.

    Common types of SLAs explained

    Service-level SLA

    • This service-level agreement construct is the Service-based SLA. This SLA covers an identified service for all customers in general (for example, if an IT service provider offers customer response times for a service to several customers). In a service-based agreement, the response times would be the same and apply to all customers using the service. Any customer using the service would be provided the same SLA – in this case the same defined response time.

    Customer-based SLA

    • A customer-based SLA is a unique agreement with one customer. The entire agreement is defined for one or all service levels provided to a particular customer (for example, you may use several services from one telecom vendor). The SLAs for these services would be covered in one contract between you and the vendor, creating a unique customer-based vendor agreement. Another scenario could be where a vendor offers general SLAs for its services but you negotiate a specific SLA for a particular service that is unique or exclusive to you. This would be a customer-based SLA as well.

    Multi-level SLA

    • This service-level agreement construct is the multi-level SLA. In a multi-level SLA, components are defined to the organizational levels of the customer with cascading coverage to sublevels of the organization. The SLA typically entails all services and is designed to the cover each sub-level or department within the organization. Sometimes the multi-level SLA is known as a master organization SLA as it cascades to several levels of the organization.

    InfoTech Insight: Beware of low, easy to attain Service levels and metrics/KPIs. Service levels need to meet your requirements, expectations, and needs not the vendor’s.

    1.2 Elements of SLA-objectives, service types, and service levels

    Objectives of Service Levels

    The objective of the service levels and service credits are to:

    • Ensure that the services are of a consistently high quality and meet the requirements of the customer
    • Provide a mechanism whereby the customer can attain meaningful recognition of the vendors failure to deliver the level of service for which it was contracted to deliver
    • Incentivize the vendor or service provider to comply with and to expeditiously provide a remedy for any failure to attain the service levels committed to in the SLA
    • To ensure that the service provider fulfills the defined objectives of the outsourced service

    Service types

    There are several service types that can be part of an SLA. Service types are the different nature of services associated with the SLA that the provider is performing and being measured against. These can include:

    Service Desk, SaaS, PaaS, IaaS, ISP/Telecom/Network MSP, DR & BCP, Co-location security ops, SOW.

    Each service type should have standard service level targets or obligations that can vary depending on your requirements and reliance on the service being provided.

    Service levels

    Service levels are measurable targets, metrics, or KPIs that the service provider has committed to for the particular service type. Service levels are the key element of SLAs – they are the performance expectations set between you and the provider. The service performance of the provider is measured against the service level commitments. The ability of the provider to consistently meet these metrics will allow your organization to fully benefit from the objectives of the service and associated SLAs. Most service levels are time related but not all are.

    Common service levels are:

    Response times, resolution times per percent, restore/recovery times, accuracy, availability/uptime, completion/milestones, updating/communication, latency.

    Each service level has standard or minimum metrics for the provider. The metrics, or KPIs, should be relatively easy to measure and report against on a regular basis. Service levels are generally negotiable to meet your requirements.

    1.2.1 Activity SLA Checklist Tool

    1-2 hours

    Input

    • SLA content, Service elements
    • Contract terms & exclusions
    • Service metrices/KPIs

    Output

    • A concise list of SLA components
    • A list of missing SLA elements
    • Evaluation of the SLA

    Materials

    • Comprehensive checklist
    • Service provider SLA
    • Internal templates or policies

    Participants

    • Vendor or contract manager
    • IT or business unit manager
    • Legal
    • Finance

    Using this checklist will help you review a provider’s SLA to ensure it contains adequate service levels and remedies as well as contract-type elements.

    Instructions:

    Use the checklist to identify the principal service level elements as well as the contractual-type elements within the SLA.

    Review the SLA and use the dropdowns in the checklist to verify if the element is in the SLA and whether it is within acceptable parameters as well the page or section for reference.

    The checklist contains a list of service types that can be used for reference of what SLA elements you should expect to see in that service type SLA.

    Download the SLA Checklist Tool

    1.3 Monitoring, reporting requirements, remedies/credit process

    Monitoring & Reporting

    As mentioned, well-defined service levels are key to the success of the SLA. Validating that the metrics/KPIs are being met on a consistent basis requires regular monitoring and reporting. These elements of the SLA are how you hold the provider accountable to the SLA commitments and obligations. To achieve the service level, the service must be monitored to validate that timelines are met and accuracy is achieved.

    • Data or details from monitoring must then be presented in a report and delivered to the customer in an agreed-upon format. These formats can be in a dashboard, portal, spreadsheet, or csv file, and they must have sufficient criteria to validate the service-level metric. Reports should be kept for future review and to create historical trending.
    • Monitoring and reporting should be the responsibility of the service provider. This is the only way that they can validate to the customer that a service level has been achieved.
    • Reporting criteria and delivery timelines should be defined in the SLA and can even have a service level associated with it, such as a scheduled report delivery on the fifth day of the following month.
    • Reports need to be checked and balanced. When defining report criteria, be sure to define data source(s) that can be easily validated by both parties.
    • Report criteria should include compliance requirements, target metric/KPIs, and whether they were attained.
    • The report should identify any attainment shortfall or missed KPIs.

    Too many SLAs do not have these elements as often the provider tries to put the onus on the customer to monitor their performance of the service levels. .

    1.3.1 Monitoring, reporting requirements, remedies/credit process

    Remedies and Credits

    Service-level reports validate the performance of the service provider to the SLA metrics or KPIs. If the metrics are met, then by rights, the service provider is doing its job and performing up to expectations of the SLA and your organization.

    • What if the metrics are not being met either periodically or consistently? Solving this is the goal of remedies. Remedies are typically monetary costs (in some form) to the provider that they must pay for not meeting a service-level commitment. Credits can vary significantly and should be aligned to the severity of the missed service level. Sometimes there no credits offered by the vendor. This is a red flag in an SLA.
    • Typically expressed as a monetary credit, the SLA will have service levels and associated credits if the service-level metric/KPI is not met during the reporting period. Credits can be expressed in a dollar format, often defined as a percentage of a monthly fee or prorated annual fee. Although less common, some SLAs offer non-financial credits. These could include: an extension to service term, additional modules, training credits, access to a higher support level, etc.
    • Regardless of how the credit is presented, this is typically the only way to hold your provider accountable to their commitments and to ensure they perform consistently to expectations. You must do a rough calculation to validate the potential monetary value and if the credit is meaningful enough to the provider.

    Research shows that credit values that equate to just a few dollars, when you are paying the provider tens of thousands of dollars a month for a service or product, the credit is insignificant and therefore doesn’t incent the provider to achieve or maintain a service level.

    1.3.2 Monitoring, reporting requirements, remedies/credit process

    Credit Process

    Along with meaningful credit values, there must be a defined credit calculation method and credit redemption process in the SLA.

    Credit calculation. The credit calculation should be simple and straight forward. Many times, we see providers define complicated methods of calculating the credit value. In some cases complicated service levels require higher effort to monitor and report on, but this shouldn’t mean that the credit for missing the service level needs to require the same effort to calculate. Do a sample credit calculation to validate if the potential credit value is meaningful enough or meets your requirements.

    Credit redemption process. The SLA should define the process of how a credit is provided to the customer. Ideally the process should be fairly automated by the service provider. If the report shows a missed service level, that should trigger a credit calculation and credit value posted to account followed by notification. In many SLAs that we review, the credit process is either poorly defined or not defined at all. When it is defined, the process typically requires the customer to follow an onerous process and submit a credit request that must then be validated by the provider and then, if approved, posted to your account to be applied at year end as long as you are in complete compliance with the agreement and up-to-date on your account etc. This is what we need to avoid in provider-written SLAs. You need a proactive process where the service provider takes responsibility for missing an SLA and automatically assigns an accurate credit to your account with an email notice.

    Secondary level remedies. These are remedies for partial performance. For example, the platform is accessible but some major modules are not working (i.e.: the payroll platform is up and running and accessible but the tax table is not working properly so you can’t complete your payroll run on-time). Consider the requirement of a service level, metric, and remedy for critical components of a service and not just the platform availability.

    Info-Tech Insight SLA’s without adequate remedies to hold the vendor accountable to their commitments make the SLAs essentially meaningless.

    1.4 Exclusions indemnification, force majeure, scheduled maintenance

    Contract-Related Exclusions

    Attaining service-level commitments by the provider within an SLA can depend on other factors that could greatly influence their performance to service levels. Most of these other factors are common and should be defined in the SLA as exclusions or exceptions. Exceptions/exclusions can typically apply to credit calculations as well. Typical exceptions to attaining service levels are:

    • Denial of Service (DoS) attacks
    • Communication/ISP outage
    • Outages of third-party hosting
    • Actions or inactions of the client or third parties
    • Scheduled maintenance but not emergency maintenance
    • Force majeure events which can cover several different scenarios

    Attention should be taken to review the exceptions to ensure they are in fact not within the reasonable control of the provider. Many times the provider will list several exclusions. Often these are not reasonable or can be avoided, and in most cases, they allow the service provider the opportunity to show unjustified service-level achievements. These should be negotiated out of the SLA.

    1.5 Activity SLA Evaluation Tool

    1-2 hours

    Input

    • SLA content
    • SLA elements
    • SLA objectives
    • SLO calculation methods

    Output

    • Rating of the SLA service levels and objectives
    • Overall rating of the SLA content
    • Targeted list of required improvements

    Materials

    • SLA comprehensive checklist
    • Service provider SLA

    Participants

    • Vendor or contract manager
    • IT manager or leadership
    • Application or business unit manager

    The SLA Evaluation Tool will allow you evaluate an SLA for content. Enter details into the tool and evaluate the service levels and SLA elements and components to ensure the agreement contains adequate SLOs to meet your organization’s service requirements.

    Instructions:

    Review and identify SLA elements within the service provider’s SLA.

    Enter service-level details into the tool and rate the SLOs.

    Enter service elements details, validate that all required elements are in the SLA, and rate them accordingly.

    Capture and evaluate service-level SLO calculations.

    Review the overall rating for the SLA and create a targeted list for improvements with the service provider.

    Download the SLA Evaluation Tool

    1.5 Clarification: SLAs vs. SLOs vs. SLIs

    SLA – Service-Level Agreement The promise or commitment

    • This is the formal agreement between you and your service provider that contains their service levels and obligations with measurable metrics/KPIs and associated remedies. SLAs can be a separate or unique document, but are most commonly embedded within an MSA, SOW, SaaS, etc. as an addendum or exhibit.

    SLO – Service-Level Objective The goals or targets

    • This service-level agreement construct is the customer-based SLA. A Customer-based SLA is a unique agreement with one customer. The entire agreement is defined for one or all service levels provided to a particular customer. For example, you may use several services from one telecom vendor. The SLAs for these services would be covered in one contract between you and the Telco vendor, creating a unique customer-based to vendor agreement. Another scenario: a vendor offers general SLAs for its services and you negotiate a specific SLA for a particular service that is unique or exclusive to you. This would be a customer-based SLA as well.

    Other common names are Metrics and Key Performance Indicators (KPIs )

    SLI – Service-Level Indicator How did we do? Did we achieve the objectives?

    • An SLI is the actual metric attained after the measurement period. SLI measures compliance with an SLO (service level objective). So, for example, if your SLA specifies that your systems will be available 99.95% of the time, your SLO is 99.95% uptime and your SLI is the actual measurement of your uptime. Maybe it’s 99.96%. maybe 99.99% or even 99.75% For the vendor to be compliant to the SLA, the SLI(s) must meet or exceed the SLOs within the SLA document.

    Other common names: attainment, results, actual

    Info-Tech Insight:

    Web-posted SLAs that are not embedded within a signed MSA, can present uncertainty and risk as they can change at any time and typically without direct notice to the customer

    Reduce Risk With Rock-Solid Service-Level Agreements

    Phase 2

    Understand SLA Elements

    Phase 2

    Create Requirements

    Phase Steps

    • 2.1 Create a list of your SLA criteria
    • 2.2 Develop SLA policy & templates
    • 2.3 Create a negotiation strategy
    • 2.4 SLA overachieving discussion

    Manage Obligations

    2.1 Create a list of your SLA criteria

    Principle Service Elements

    With your understanding of the types of SLAs and the elements that comprise a well-written agreement

    • The next step is to start to create a set of SLA criteria for service types that your organization outsources or may require in the future.
    • This criteria should define the elements of the SLA with tolerance levels that will require the provider to meet your service expectations.
    • Service levels, metrics/KPIs, associated remedies and reporting criteria. This criteria could be captured into table-like templates that can be referenced or inserted into service provider SLAs.
    • Once you have defined minimum service-level criteria, we recommend that you do a deeper review of the various service provider types that your organization has in place. The goal of the review is to understand the objective of the service type and associated service levels and then compare them to your requirements for the service to meet your expectations. Service levels and KPIs should be no less than if your IT department was providing the service with its own resources and infrastructure.
    • Most IT departments have service levels that they are required to meet with their infrastructure to the business units or organization, whether it’s App delivery, issue or problem resolution, availability etc. When any of these services are outsourced to an external service provider, you need to make all efforts to ensure that the service levels are equal to or better than the previous or existing internal expectations.
    • Additionally, the goal is to identify service levels and metrics that don’t meet your requirements or expectations and/or service levels that are missing.

    2.2 Develop SLA policies and templates

    Contract-type Elements

    After creating templates for minimum-service metrics & KPIs, reporting criteria templates, process, and timing, the next step should be to work on contract-type elements and additional service-level components. These elements should include:

    • Reporting format, criteria, and timelines
    • Monitoring requirements
    • Minimum acceptable remedy or credits process; proactive by provider vs. reactive by customer
    • Roles & responsibilities
    • Acceptable exclusion details
    • Termination language for persistent failure to meet SLOs

    These templates or criteria minimums can be used as guidelines or policy when creating or negotiating SLAs with a service provider.

    Start your initial element templates for your strategic vendors and most common service types: SaaS, IaaS, Service Desk, SecOps, etc. The goal of SLA templates is to create simple minimum guidelines for service levels that will allow you to meet your internal SLAs and expectations. Having SLA templates will show the service provider that you understand your requirements and may put you in a better negotiating position when reviewing with the provider.

    When considering SLO metrics or KPIs consider the SMART guidance:

    Simple: A KPI should be easy to measure. It should not be complicated, and the purpose behind recording it must be documented and communicated.

    Measurable: A KPI that cannot be measured will not help in the decision-making process. The selected KPIs must be measurable, whether qualitatively or quantitatively. The procedure for measuring the KPIs must be consistent and well-defined.

    Actionable: KPIs should contribute to the decision-making process of your organization. A KPI that does not make any such contributions serves no purpose.

    Relevant: KPIs must be related to operations or functions that a security team seeks to assess.

    Time-based: KPIs should be flexible enough to demonstrate changes over time. In a practical sense, an ideal KPI can be grouped together by different time intervals.

    (Guide for Security Operations Metrics)

    2.2.1 Activity: Review SLA Template & Metrics Reference Guide

    1-2 hours

    Input

    • Service level metrics
    • List of who is accountable for PPM decisions

    Output

    • SLO templates for service types
    • SLA criteria that meets your organization’s requirements

    Materials

    • SLA Checklist
    • SLA criteria list with SLO & credit values
    • PPM Decision Review Workbook

    Participants

    • Vendor manager
    • IT leadership
    • Procurement or contract manager
    1. Review the SLA Template and Metrics Reference Guide for common metrics & KPIs for the various service types. Each Service Type tab has SLA elements and SLO metrics typically associated with the type of service.
    2. Some service levels have common or standard credits* that are typically associated with the service level or metric.
    3. Use the SLA Template to enter service levels, metrics, and credits that meet your organization’s criteria or requirements for a given service type.

    Download the SLA Template & Metrics Reference Guide

    *Credit values are not standard values, rather general ranges that our research shows to be the typical ranges that credit values should be for a given missed service level

    2.3 Create a negotiation strategy

    Once you have created service-level element criteria templates for your organization’s requirements, it’s time to document a negotiation position or strategy to use when negotiating with service providers. Not all providers are flexible with their SLA commitments, in fact most are reluctant to change or create “unique” SLOs for individual customers. Particularly cloud vendors providing IaaS, SaaS, or PaaS, SLAs. ISP/Telcom, Co-Lo and DR/BU providers also have standard SLOs that they don’t like to stray far from. On the other hand, security ops (SIEM), service desk, hardware, and SOW/PS providers who are generally contracted to provide variable services are somewhat more flexible with their SLAs and more willing to meet your requirements.

    • Service providers want to avoid being held accountable to SLOs, and their SLAs are typically written to reflect that.

    The goal of creating internal SLA templates and policies is to set a minimum baseline of service levels that your organization is willing to accept, and that will meet their requirements and expectations for the outsourced service. Using these templated SLOs will set the basis for negotiating the entire SLA with the provider. You can set the SLA purpose, objectives, roles, and responsibilities and then achieve these from the service provider with solid SLOs and associated reporting and remedies.

    Info-Tech Insight

    Web-posted SLAs that are not embedded within a signed MSA can present uncertainty and risk as they can change at any time and typically without direct notice to the customer

    2.3.1 Negotiating strategy guidance

    • Be prepared. Create a negotiating plan and put together a team that understands your organization’s requirements for SLA.
    • Stay informed. Request provider’s recent performance data and negotiate SLOs to the provider’s average performance.
    • Know what you need. Corporate SLA templates or policies should be positioned to service providers as baseline minimums.
    • Show some flexibility. Be willing to give up some ground on one SLO in exchange for acceptance of SLOs that may be more important to your organization.
    • Re-group. Have a fallback position or Plan B. What if the provider can’t or won’t meet your key SLOs? Do you walk?
    • Do your homework. Understand what the typical standard SLOs are for the type of service level.

    2.4 SLO overachieving incentive discussion

    Monitoring & Reporting

    • SLO overachieving metrics are seen in some SLAs where there is a high priority for a service provider to meet and or exceed the SLOs within the SLA. These are not common terms but can be used to improve the overall service levels of a provider. In these scenarios the provider is sometimes rewarded for overachieving on the SLOs, either consistently or on a monthly or quarterly basis. In some cases, it can make financial sense to incent the service provider to overachieve on their commitments. Incentives can drive behaviors and improved performance by the provider that can intern improve the benefits to your organization and therefore justify an incent of some type.
    • Example: You could have an SLO for invoice accuracy. If not achieved, it could cost the vendor if they don’t meet the accuracy metric, however if they were to consistently overachieve the metric it could save accounts payable hours of time in validation and therefore you could pass on some of these measurable savings to the provider.
    • Overachieving incentives can add complexity to the SLA so they need to be easily measurable and simple to manage.
    • Overachieving incentives can also be used in provider performance improvement plans, where a provider might have poor trending attainment and you need to have them improve their performance in a short period of time. Incentives typically will motivate provider improvement and generally will cost much less than replacing the provider.
    • There is another school of thought that you shouldn’t have to pay a provider for doing their job; however, others are of the opinion that incentives or bonuses improve the overall performance of individuals or teams and are therefore worth consideration if both parties benefit from the over performance.

    Reduce Risk With Rock-Solid Service-Level Agreements

    Phase 3

    Understand SLA Elements

    Create Requirements

    Phase 3

    Manage Obligations

    Phase Steps

    • 3.1 SLA monitoring and tracking
    • 3.2 Reporting
    • 3.3 Vendor SLA reviews & optimizing
    • 3.4 Performance management

    3.1 SLA monitoring, tracking, and remedy reconciliation

    The next step to effective SLAs is the management component. It could be fruitless if you were to spend your time and efforts negotiating your required service levels and metrics and don’t have some level of managing the SLA. In that situation you would have no way of knowing if the service provider is attaining their SLOs.

    There are several key elements to effective SLA management:

    • SLO monitoring
    • Simple, concise reporting
    • SLO attainment tracking
    • Score carding & trending
    • Remedy reconciliation

    SLA Management framework

    SLA Monitoring → Concise Reporting → Attainment Tracking → Score Carding →Remedy Reconciliation

    “A shift we’re beginning to see is an increased use of data and process discovery tools to measure SLAs,” says Borowski of West Monroe. “While not pervasive yet, these tools represent an opportunity to identify the most meaningful metrics and objectively measure performance (e.g., cycle time, quality, compliance). When provided by the client, it also eliminates the dependency on provider tools as the source-of-truth for performance data.” – Stephanie Overby

    3.1 SLA management framework

    SLA Performance Management

    • SLA monitoring provides data for SLO reports or dashboards. Reports provide attainment data for tacking over time. Attainment data feeds scorecards and allows for trending analysis. Missed attainment data triggers remedies.
    • All service providers monitor their systems, platforms, tickets, agents, sensors etc. to be able to do their jobs. Therefore, monitoring is readily available from your service provider in some form.
    • One of the key purposes of monitoring is to generate data into internal reports or dashboards that capture the performance metrics of the various services. Therefore, service-level and metric reports are readily available for all of the service levels that a service provider is contracted or engaged to provide.
    • Monitoring and reporting are the key elements that validate how your service provider is meeting its SLA obligations and thus are very important elements of an SLA. SLO report data becomes attainment data once the metric or KPI has been captured.
    • As a component of effective SLA management, this attainment data needs to be tracked/recorded in an easy-to-read format or table over a period of time. Attainment data can then be used to generate scorecards and trending reports for your review both internally and with the provider as required.
    • If attainment data shows that the service provider is meeting their SLA obligations, then the SLA is meeting your requirements and expectations. If on the other hand, attainment data shows that obligations are not being met, then actions must be taken to hold the service provider accountable. The most common method is through remedies that are typically in the form of a credit through a defined process (see Sec. 1.3). Any credits due for missed SLOs should also be tracked and reported to stakeholders and accounting for validation, reconciliation, and collection.

    3.2 Reporting

    Monitoring & Reporting

    • Many SLAs are silent on monitoring and reporting elements and require that the customer, if aware or able, to monitor the providers service levels and attainment and create their own KPI and reports. Then if SLOs are not met there is an arduous process that the customer must go through to request their rightful credit. This manual and reactive method creates all kinds of risk and cost to the customer and they should make all attempts to ensure that the service provider proactively provides SLO/KPI attainment reports on a regular basis.
    • Automated monitoring and reporting is a common task for many IT departments. There is no reason that a service provider can’t send reports proactively in a format that can be easily interpreted by the customer. The ideal state would be to capture KPI report data into a customer’s internal service provider scorecard.
    • Automated or automatic credit posting is another key element that service providers tend to ignore, primarily in hopes that the customer won’t request or go through the trouble of the process. This needs to change. Some large cloud vendors already have automated processes that automatically post a credit to your account if they miss an SLO. This proactive credit process should be at the top of your negotiation checklist. Service providers are avoiding thousands of credit dollars every year based on the design of their credit process. As more customers push back and negotiate more efficient credit processes, vendors will soon start to change and may use it as a differentiator with their service.

    3.2.1 Performance tracking and trending

    What gets measured gets done

    SLO Attainment Tracking

    A primary goal of proactive and automated reporting and credit process is to capture the provider’s attainment data into a tracker or vendor scorecard. These tracking scorecards can easily create status reports and performance trending of service providers, to IT leadership as well as feed QBR agenda content.

    Remedy Reconciliation

    Regardless of how a credit is processed it should be tracked and reconciled with internal stakeholders and accounting to ensure credits are duly applied or received from the provider and in a timely manner. Tracking and reconciliation must also align with your payment terms, whether monthly or annually.

    “While the adage, ‘You can't manage what you don't measure,’ continues to be true, the downside for organizations using metrics is that the provider will change their behavior to maximize their scores on performance benchmarks.” – Rob Lemos

    3.2.1 Activity SLA Tracker and Trending Tool

    1-2 hours setup

    Input

    • SLO metrics/KPIs from the SLA
    • Credit values associated with SLO

    Output

    • Monthly SLO attainment data
    • Credit tracking
    • SLO trending graphs

    Materials

    • Service provider SLO reports
    • Service provider SLA
    • SLO Tracker & Trending Tool

    Participants

    • Contract or vendor managers
    • Application or service managers
    • Service provider

    An important activity in the SLA management framework is to track the provider’s SLO attainment on a monthly or quarterly basis. In addition, if an SLO is missed, an associated credit needs to be tracked and captured. This activity allows you to capture the SLOs from the SLA and track them continually and provide data for trending and review at vendor performance meetings and executive updates.

    Instructions: Enter SLOs from the SLA as applicable.

    Each month, from the provider’s reports or dashboards, enter the SLO metric attainment.

    When an SLO is met, the cell will turn green. If the SLO is missed, the cell will turn red and a corresponding cell in the Credit Tracker will turn green, meaning that a credit needs to be reconciled.

    Use the Trending tab to view trending graphs of key service levels and SLOs.

    Download the SLO Tracker and Trending Tool

    3.3 Vendor SLA reviews and optimizing

    Regular reviews should be done with providers

    Collecting attainment data with scorecards or tracking tools provides summary information on the performance of the service provider to their SLA obligations. This information should be used for regular reviews both internally and with the provider.

    Regular attainment reviews should be used for:

    • Performance trending upward or downward
    • Identifying opportunities to revise or improve SLOs
    • Optimizing SLO and processes
    • Creating a Performance Improvement Plan (PIP) for the service provider

    Some organizations choose to review SLA performance with providers at regular QBRs or at specific SLA review meetings

    This should be determined based on the criticality, risk, and strategic importance of the provider’s service. Providers that provide essential services like ERP, payroll, CRM, HRIS, IaaS etc. should be reviewed much more regularly to ensure that any decline in service is identified early and addressed properly in accordance with the service provider. Negative trending performance should also be documented for consideration at renewal time.

    3.4 Performance management

    Dealing with persistent poor performance and termination

    Service providers that consistently miss key service level metrics or KPIs present financial and security risk to the organization. Poor performance of a service provider reflects directly on the IT leadership and will affect many other business aspects of the organization including:

    • Ability to conduct day-to-day business activities
    • Meet internal obligations and expectations
    • Employee productivity and satisfaction
    • Maintain corporate policies or industry compliance
    • Meet security requirements

    Communication is key. Poor performance of a service provider needs to be dealt with in a timely manner in order to avoid more critical impact of the poor performance. Actions taken with the provider can also vary depending again on the criticality, risk, and strategic importance of the provider’s service.

    Performance reviews should provide the actions required with the goal of:

    • Making the performance problems into opportunities
    • Working with the provider to create a PIP with aggressive timelines and ramifications if not attained
    • Non-renewal or termination consideration, if feasible including provider replacement options, risk, costs, etc.
    • SLA renegotiation or revisions
    • Warning notifications to the service provider with concise issues and ramifications

    To avoid the issues and challenges of dealing with chronic poor performance, consider a Persistent or Chronic Failure clause into the SLA contract language. These clauses can define chronic failure, scenarios, ramifications there of, and defined options for the client including increased credit values, non-monetary remedies, and termination options without liability.

    Info-Tech Insight

    It’s difficult to prevent chronic poor performance but you can certainly track it and deal with it in a way that reduces risk and cost to your organization.

    SLA Hall of Shame

    Crazy service provider SLA content collection

    • Excessive list of unreasonable exclusions
    • Subcontractors’ behavior could be excluded
    • Downtime credit, equal to downtime percent x the MRC
    • Controllable FM events (internal labor issues, health events)
    • Difficult downtime or credit calculations that don’t make sense
    • Credits are not valid if agreement is terminated early or not renewed
    • Customer is not current on their account, SLA or credits do not count/apply
    • Total downtime = to prorated credit value (down 3 hrs = 3/720hrs = 0.4% credit)
    • SLOs don’t apply if customer fails to report the issue or request a trouble ticket
    • Downtime during off hours (overnight) do not count towards availability metrics
    • Different availability commitments based on different support-levels packages
    • Extending the agreement term by the length of downtime as a form of a remedy

    SLA Dos and Don’ts

    Dos

    • Do negotiate SLOs to vendor’s average performance
    • Do strive for automated reporting and credit processes
    • Do right-size and create your SLO criteria based on risk mitigation
    • Do review SLA attainment results with strategic service providers on a regular basis
    • Do ensure that all key elements and components of an SLA are present in the document or appendix

    Don'ts

    • Don’t accept the providers response that “we can’t change the SLOs for you because then we’d have to change them for everyone”
    • Don’t leave SLA preparation to the last minute. Give it priority as you negotiate with the provider
    • Don’t create complex SLAs with numerous service levels and SLOs that need to be reported and managed
    • Don’t aim for absolute perfection. Rather, prioritize which service levels are most important to you for the service

    Summary of Accomplishment

    Problem Solved

    Knowledge Gained

    • Understanding of the elements and components of an SLA
    • A list of SLO metrics aligned to service types that meet your organization’s criteria
    • SLA metric/KPI templates
    • SLA Management process for your provider’s service objectives
    • Reporting and tracking process for performance trending

    Deliverables Completed

    • SLA component and contract element checklist
    • Evaluation or service provider SLAs
    • SLA templates for strategic service types
    • SLA tracker for strategic service providers

    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

    Related Info-Tech Research

    Improve IT-Business Alignment Through an Internal SLA

    • Understand business requirements, clarify current capabilities, and enable strategies to close service-level gaps.

    Data center Co-location SLA & Service Definition Template

    • In essence, the SLA defines the “product” that is being purchased, permitting the provider to rationalize resources to best meet the needs of varied clients, and permits the buyer to ensure that business requirements are being met.

    Ensure Cloud Security in IaaS, PaaS, and SaaS Environments

    • Keep your information security risks manageable when leveraging the benefits of cloud computing.

    Bibliography

    Henderson, George. “3 Most Common Types of Service Level Agreement (SLA).” Master of Project Academy. N.d. Web.

    “Guide to Security Operations Metrics.” Logsign. Oct 5, 2020. Web.

    Lemos, Rob. “4 lessons from SOC metrics: What your SpecOps team needs to know.” TechBeacon. N.d. Web.

    “Measuring and Making the Most of Service Desk Metrics.” Freshworks. N.d. Web.

    Overby, Stephanie. “15 SLA Mistakes IT Leaders Still Make.” CIO. Jan 21, 2021.

    Improve Email Security

    • Buy Link or Shortcode: {j2store}272|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
    • member rating average dollars saved: N/A
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    • Parent Category Name: Secure Cloud & Network Architecture
    • Parent Category Link: /secure-cloud-network-architecture

    As the sophistication of malicious attacks increases, it has become more difficult to ensure applications such as email software are properly protected and secured. The increase in usage and traffic of email exacerbates the security risks to the organization.

    Our Advice

    Critical Insight

    Email has changed. Your email security needs to evolve as well to ensure you are protecting your organization’s communication.

    Impact and Result

    • Gain an understanding of the importance of email security and steps to secure your corporate email.
    • Develop holistic guidelines on implementing best practices to modernize your organization’s email security.

    Improve Email Security Research & Tools

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

    1. Improve Email Security Storyboard – A guide to best practices for improving an organization’s email security.

    This research provides guidelines to assist organizations in identifying controls to secure their emails along with recommendations on the most common and effective controls to secure and protect corporate emails.

    • Improve Email Security Storyboard

    2. Email Security Checklist – A checklist tool that enables organizations to monitor their progress in implementing controls to improve their email security.

    This checklist of common email security categories and their associated controls helps ensure organizations are following best practices.

    • Email Security Checklist
    [infographic]

    Further reading

    Improve Email Security

    Follow the latest best practices for email security to mitigate evolving threats.

    Analyst Perspective

    Protecting your organization’s digital assets begins with securing your email communication.

    As organizations increasingly rely on email communication for day-to-day business operations, threat actors are exploiting the increased traction to develop and implement more sophisticated email-based attacks. Furthermore, the lack of investment in measures, tools, and technologies for an organization’s email security exacerbates the vulnerabilities at hand.

    Effective use of security procedures and techniques can mitigate and minimize email-based threats have been shown to reduce the ability of these attacks to infiltrate the email inbox. These guidelines and best practices will help your organization conduct due diligence to protect the contents of the email, its transit, and its arrival to the authorized recipient.

    Ahmad Jowhar, Research Specialist, Security & Privacy

    Ahmad Jowhar
    Research Specialist, Security & Privacy
    Info-Tech Research Group

    Executive Summary

    Your Challenge Common Obstacles Info-Tech’s Approach
    • As malicious attacks get increasingly sophisticated, it has become more difficult to ensure applications such as email software are properly protected and secured.
    • The increased usage and traffic of emails, as well as their contents, exacerbates security risks to the organization.
    • Given the variety of email security controls, it can be complicated to identify the most important techniques for improving your organization’s email security.
    • Understand the importance of implementing email security for your organization.
    • Develop a holistic guideline for implementing best practices to secure your organization’s emails.

    Info-Tech Insight
    Email has changed. Your email security must evolve to ensure the safety of your organization’s communication.

    Your Challenge

    As a security leader, you need to modernize your email security services so you can protect business communications and prevent security incidents.

    • Various factors must be considered when deciding how best to safeguard your organization’s communication chain. This includes the frequency of email traffic and the contents of emails.
    • The increased number of email-based cyberattacks reveals the sophistication of threat actors in leveraging an organization’s lack of email security to infiltrate their business.
    • As organizations continue to rely heavily on email communication, email-based threats will become increasingly prevalent.

    75% of organizations have experienced an increase in email-based threats.

    97% of security breaches are due to phishing attacks.

    82% of companies reported a higher volume of email in 2022.

    Source: Mimecast, 2023.

    Modern email security controls framework for security leaders

    Email has changed. Your email security must evolve to ensure the safety of your organization’s communication.

    Modern email security controls framework for security leaders

    Understand the best practices in securing your organization’s emails

    Enhance your security posture by modernizing your email security
    Email has changed. Your email security must evolve to ensure the safety of your organization’s communication.

    Deploy an added layer of defense by preventing the contents of your email from being intercepted.

    Encrypting your email communication will provide an additional layer of protection which only allows authorized users to read the email.

    Leverage triple-threat authentication controls to strengthen your email security.

    Leveraging SPF, DKIM, and DMARC enables you to have the proper authentication controls in place, ensuring that only legitimate users are part of the email communication.

    Protect the contents of your email through data classification and data loss prevention.

    Having tools and technologies in place to ensure that data is classified and backed up will enable better storage, analysis, and processing of the email.

    Implement email policies for a holistic email security protection.

    Policies ensure acceptable standards are in place to protect the organization’s assets, including the creation, attachment, sending, and receiving of emails.

    User awareness and training
    Training employees on protecting their corporate emails adds an extra layer of defense by ensuring end users are aware of various email-based threats and can confidently safeguard their organizations from attacks.

    Email encryption

    Deploy an added layer of defense by preventing the contents of your email from being intercepted.

    • Protecting your organization’s emails begins by ensuring only the appropriate recipients can receive and read the email’s contents.
    • This process includes encrypting the email’s contents to protect sensitive information from being read by unauthorized recipients.
    • This protects the contents even if the email is intercepted by anyone besides the intended recipient.
    • Other benefits of email encryption include:
      • Reducing any risks associated with regulatory violations.
      • Enabling business to confidently communicate sensitive information via email.
      • Ensuring protective measures taken to prevent data loss and corporate policy violations.

    Along with the increased use of emails, organizations are seeing an increase in the number of attacks orchestrating from emails. This has resulted in 74% of organizations seeing an increase in email-based threats.

    Source: Mimecast, 2023.

    Info-Tech Insight
    Encrypting your email communication will provide an additional layer of protection which only allows authorized users to read the email.

    Implementing email encryption

    Leverage these protocols and tools to help encrypt your email.

    • The most common email encryption protocols and tools include:
      • Transport Layer Security (TLS): A cryptographic protocol designed to securely deliver data via the internet, which prevents third parties from intercepting and accessing the data.
      • Secure/Multipurpose Internet Mail Extension (S/MIME): A protocol for sending digitally signed and encrypted messages by leveraging public key encryption to provide at-rest and in-transit data protection.
      • Secure Email Gateway: An email security solution that inspects emails for malicious content prior to it reaching the corporate system. The solution is positioned between the public internet and corporate email servers. An email gateway solution would be provided by a third-party vendor and can be implemented on-premises, through the cloud, or hybrid.
    • Email encryption policies can also be implemented to ensure processes are in place when sending sensitive information through emails.
    • Email encryption ensures end-to-end privacy for your email and is especially important when the email requires strict content privacy.

    Email authentication

    Three authentication controls your organization should leverage to stay secure.

    • Along with content encryption, it’s important to authenticate both the sender and recipient of an email to ensure that only legitimate users are able to send and receive it.
    • Implementing email authentication techniques prevents unsolicited email (e.g. spam) from entering your mailbox.
    • This also prevents unauthorized users from sending email on your organization’s behalf.
    • Having these standards in place would safeguard your organization from spam, spoofing, and phishing attacks.
    • The three authentication controls include:
      • Sender Policy Framework (SPF): Email validation control that verifies that the incoming email is from an authorized list of IP addresses provided by the sender’s domain administrator.
      • DomainKeys Identified Mail (DKIM): Enables recipients to verify that an email from a specific domain was authorized by the domain’s owner. This is conducted through cryptographic authentication by adding a digital signature to the message headers of outbound emails.
      • Domain Message Authentication Reporting & Conformance (DMARC): Provides domain-level protection of email channel by publishing DMARC records in the organization’s domain name system (DNS) and creates policies which prompts actions to take if an email fails authentication.

    Although these authentication controls are available for organizations to leverage, the adoption rate remains low. 73% of survey respondents indicated they didn’t deploy email authentication controls within their organization.

    Source: Mimecast, 2023.

    Email authentication controls

    All three authentication controls should be implemented to effectively secure your organization’s email. They ensure the emails you send and receive are securely authorized and legitimate.

    SPF DKIM DMARC

    Creating an SPF record identifies which IP addresses are allowed to send emails from your domain. Steps to implement SPF include the following:

    1. Create an SPF record by identifying the IP addresses that are authorized to send emails.
    2. Publish your SPF record into your DNS by creating a TXT record on your domain.

    Implementing DKIM helps prevent attackers from sending emails that pretend to come from your domain. Steps to implement DKIM include the following:

    1. Identify and enable domains you wish to configure DKIM to create DKIM keys.
    2. Copy the canonical names (CNAMEs) that are provided.
    3. Publish the CNAME records to your DNS service provider.

    Setting up DMARC ensures emails are validated and defines actions to take if an email fails authentication. These include:

    • None: Message is delivered to recipient and a DMARC report is sent to domain owner.
    • Quarantine: Message moved to quarantine folder and recipient is notified.
    • Reject: Message is not delivered to the recipient.
    • Steps to implement DMARC include:
    1. Create a DMARC record by including your organization’s email domain and IP addresses.
    2. Form a DMARC TXT record for your domain to include policies and publish it to your DNS.

    For more information:

    Data classification

    Ensure sensitive data is securely processed, analyzed, and stored.

    • Besides authenticating the legitimacy of an email and its traffic to the recipient, it’s important to have procedures in place to protect the contents of an email.
    • Data classification is found not only in databases and spreadsheets, but also in the email messages being communicated. Examples of data most commonly included in emails:
      • Personal identifiable information (PII): social security number, financial account number, passcodes/passwords
    • Applying data classification to your email can help identify the sensitivity of the information it contains. This ensures any critical data within an email message is securely processed and protected against unauthorized use, theft, and loss.
    • Emails can be classified based on various sensitivity levels. such as:
      • Top secret, public, confidential, internal

    Discover and Classify Your Data

    Leverage this Info-Tech blueprint for guidelines on implementing a data classification program for your organization.

    Info-Tech Insight
    Having tools and technologies in place to ensure that data is classified and backed up will enable better storage, analysis, and processing of the email.

    Data loss prevention (DLP)

    Protect your data from being lost/stolen.

    • Protecting an email’s contents through data classification is only one approach for improving email security. Having a data loss prevention solution would further increase security by minimizing the threat of sensitive information leaving your organization’s email network.
    • Examples of tools embedded in DLP solutions that help monitor an organization's email communication:
      • Monitoring data sent and received from emails: This ensures the data within an email communication is protected with the necessary encryption based on its sensitivity.
      • Detecting suspicious email activity: This includes analyzing users’ email behavior regarding email attachments and identifying irregular behaviors.
      • Flagging or blocking email activities which may lead to data loss: This prevents highly sensitive data from being communicated via email and reduces the risk of information being intercepted.
    • The types of DLP technologies that can be leveraged include:
      • Rule-based: Data that has been tagged by admins as sensitive can be blocklisted, which would flag and/or block data from being sent via email.
      • Machine learning: Data on users’ email behavior is collected, processed, and trained to understand the employee’s normal email behavior and detect/flag suspicious activities.
    • Implementing DLP solutions would complement your data classification techniques by ensuring proper measures are in place to secure your organization’s assets through policies, technology, and tools.

    48% of employees have accidently attached the wrong file to an email.

    39% of respondents have accidently sent emails that contained security information such as passwords and passcodes.

    Source: Tessian, 2021.

    User awareness & training

    A strong security awareness & training program is an important element of strengthening your email security.

    • Having all these tools and techniques in place to improve your email security will not be effective unless you also improve your employees’ awareness.
    • Employees should participate in email security training, especially since the majority utilize this channel of communication for day-to-day operations.
    • User awareness and training should go beyond phishing campaigns and should highlight the various types of email-based threats, the characteristics of these threats, and what procedures they can follow to minimize these threats.
    • 95% of data breaches are caused by human error. It can take nine months to discover and contain them, and they are expected to cost $8 trillion this year (Mimecast, 2023).
    • Investments in employee awareness and training would mitigate these risks by ensuring employees recognize and report suspicious emails, remain mindful of what type of data to share via email, and improve their overall understanding of the importance of email security.

    Develop a Security Awareness and Training Program That Empowers End Users

    Leverage this Info-Tech blueprint for assistance on creating various user training materials and empower your employees to become a main line of defense for your organization.

    64% of organizations conduct formal training sessions (in-person or computer-based).

    74% of organizations only focus on providing phishing-based training.

    Source: Proofpoint, 2021.

    Examples of email-based threats

    Phishing
    Email sent by threat actors designed to manipulate end user into providing sensitive information by posing as a trustworthy source

    Business Email Compromise
    Attackers trick a user into sending money or providing confidential information

    Spam
    Users receive unsolicited email, usually in bulk, some of which contains malware

    Spear Phishing
    A type of phishing attack where the email is sent to specific and targeted emails within the organization

    Whaling
    A type of phishing attack similar to spear phishing, but targeting senior executives within the organization

    Password/Email Exposure
    Employees use organizational email accounts and passwords to sign up for social media, leaving them susceptible to email and/or password exposure in a social media breach

    Email policies

    Having policies in place will enable these controls to be implemented.

    Developing security policies that are reasonable, auditable, enforceable, and measurable ensures proper procedures are followed and necessary measures are implemented to protect the organization. Policies relating to email security can be categorized into two groups:

    • User policy: Policies employees must adhere to when using their corporate email. Examples:
      • User acceptance of technology: Acknowledgment of legitimate and restrictive actions when using corporate email
      • Security awareness and training: Acknowledging completion of email security training
    • Administrator-set policy: Policies that are implemented by IT and/or security admins. Examples:
      • Email backup: Policy on how long emails should be archived and processes for disposing of them
      • Log retention: Policy on how to retain, process, and analyze logs created from email servers
      • Throttling: Policies that limit the number of emails sent by a sender and the number of recipients per email and per day depending on the employee’s grouping

    Develop and Deploy Security Policies

    Leverage this Info-Tech blueprint for assistance on developing and deploying actionable policies and creating an overall policy management lifecycle to keep your policies current, effective, and compliant.

    Info-Tech Insight
    Policies ensure acceptable standards are in place to protect the organization’s assets, including the creation, attachment, sending, and receiving of emails.

    Email security technologies & tools (SoftwareReviews)

    SoftwareReviews, a division of Info-Tech Research Group, provides enterprise software reviews to help organizations make more efficient decisions during the software selection process. Reviews are provided by authenticated IT professionals who have leveraged the software and provide unbiased insights on different vendors and their products.

    Learn from the collective knowledge of real IT professionals.

    • Know the products and features available.
    • Explore modules and detailed feature-level data.
    • Quickly understand the market.

    Evaluate market leaders through vendor rankings and awards.

    • Convince stakeholders with professional reports.
    • Avoid pitfalls with unfiltered data from real users.
    • Choose software with confidence.

    Cut through misleading marketing material.

    • Negotiate contracts based on data.
    • Know what to expect before you sign.
    • Effectively manage the vendor.

    Email security technologies & tools

    Leverage these tools for an enhanced email security solution.

    Email Security Checklist

    Follow these guidelines to ensure you are implementing best practices for securing your organization’s emails.

    • The Email Security Checklist is a tool to assess the current and future state of your organization’s email security and provides a holistic understanding on monitoring your progress within each category and associated controls.
    • The status column allows you to select the feature’s current implementation status, which includes the following options:
      • Enabled: The feature is deployed within the organization’s network.
      • Implemented: The feature is implemented within the organization’s network, but not yet deployed.
      • Not implemented: The feature has not been enabled or implemented.
    • Comments can be added for each feature to provide details such as indicating the progress on enabling/implementing a feature and why certain features are not yet implemented.

    Email Security Checklist

    Download the Email Security Checklist tool

    Related Info-Tech Research

    Discover and Classify Your Data
    Leverage this Info-Tech blueprint for guidelines on implementing a data classification program for your organization.

    Develop a Security Awareness and Training Program That Empowers End Users
    Leverage this Info-Tech blueprint for assistance on creating various user training materials and empower your employees to become a main line of defense for your organization.

    Develop and Deploy Security Policies
    Leverage this Info-Tech blueprint for assistance on developing and deploying actionable policies and creating an overall policy management lifecycle to keep your policies current, effective, and compliant.

    Bibliography

    “10 Best Practices for Email Security in 2022.” TitanFile, 22 Sept. 2022. Web.

    “2021 State of the Phish.” Proofpoint, 2021. Web.

    Ahmad, Summra. “11 Email Security Best Practices You Shouldn't Miss (2023).” Mailmunch, 9 Mar. 2023. Web.

    “Blumira's State of Detection and Response.” Blumira, 18 Jan. 2023. Web.

    Clay, Jon. “Email Security Best Practices for Phishing Prevention.” Trend Micro, 17 Nov. 2022. Web.

    Crane, Casey. “6 Email Security Best Practices to Keep Your Business Safe in 2019.” Hashed Out by The SSL Store™, 7 Aug. 2019. Web.

    Hateb, Seif. “Basic Email Security Guide.” Twilio Blog, Twilio, 5 Dec. 2022. Web.

    “How DMARC Advances Email Security.” CIS, 9 July 2021. Web.

    Pal, Suryanarayan. “10 Email Security Best Practices You Should Know in 2023.” Mailmodo, 9 Feb. 2023. Web.

    Pitchkites, Max. “Email Security: A Guide to Keeping Your Inbox Safe in 2023.” Cloudwards, 9 Dec. 2022. Web.

    Rudra, Ahona. “Corporate Email Security Checklist.” PowerDMARC, 4 July 2022. Web.

    “Sender Policy Framework.” Mimecast, n.d. Web.

    Shea, Sharon, and Peter Loshin. “Top 15 Email Security Best Practices for 2023: TechTarget.” TechTarget, 14 Dec. 2022. Web.

    “The Email Security Checklist: Upguard.” UpGuard, 16 Feb. 2022. Web.

    “The State of Email Security 2023.” Mimecast, 2023. Web.

    Wetherald, Harry. “New Product - Stop Employees Emailing the Wrong Attachments.” Tessian, 16 Sept. 2021. Web.

    “What Is DMARC? - Record, Verification & More: Proofpoint Us.” Proofpoint, 9 Mar. 2023. Web.

    “What Is Email Security? - Defining Security of Email: Proofpoint Us.” Proofpoint, 3 Mar.2023. Web.

    Wilton, Laird. “How to Secure Email in Your Business with an Email Security Policy.” Carbide, 31 Jan. 2022. Web.

    Streamline Application Maintenance

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    • member rating average dollars saved: 20 Average Days Saved
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    • Parent Category Name: Maintenance
    • Parent Category Link: /maintenance
    • Application maintenance teams are accountable for the various requests and incidents coming from a variety business and technical sources. The sheer volume and variety of requests create unmanageable backlogs.
    • The increasing complexity and reliance on technology within the business has set unrealistic expectations on maintenance teams. Stakeholders expect teams to accommodate maintenance without impact on project schedules.

    Our Advice

    Critical Insight

    • Improving maintenance’s focus and attention may mean doing less but more valuable work. Teams need to be realistic about what can be committed and be prepared to justify why certain requests have to be pushed down the backlog (e.g. lack of business value, high risks).
    • Maintenance must be treated like any other development activity. The same intake and prioritization practices and quality standards must be upheld, and best practices followed.

    Impact and Result

    • Justify the necessity of streamlined maintenance. Gain a grounded understanding of stakeholder objectives and concerns, and validate their achievability against the current state of the people, process, and technologies involved in application maintenance.
    • Strengthen triaging and prioritization practices. Obtain a holistic picture of the business and technical impacts, risks, and urgencies of each accepted maintenance requests in order to justify its prioritization and relevance within your backlog. Identify opportunities to bundle requests together or integrate them within project commitments to ensure completion.
    • Establish and govern a repeatable process. Develop a maintenance process with well-defined stage gates, quality controls, and roles and responsibilities, and instill development best practices to improve the success of delivery.

    Streamline Application Maintenance Research & Tools

    Start here – read the Executive Brief

    Read our Executive Brief to understand the common struggles found in application maintenance, their root causes, and the Info-Tech methodology to overcoming these hurdles.

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

    1. Understand your maintenance priorities

    Understand the stakeholder priorities driving changes in your application maintenance practice.

    • Streamline Application Maintenance – Phase 1: Assess the Current Maintenance Landscape
    • Application Maintenance Operating Model Template
    • Application Maintenance Resource Capacity Assessment
    • Application Maintenance Maturity Assessment

    2. Instill maintenance governance

    Identify the appropriate level of governance and enforcement to ensure accountability and quality standards are upheld across maintenance practices.

    • Streamline Application Maintenance – Phase 2: Develop a Maintenance Release Schedule

    3. Enhance triaging and prioritization practices

    Build a maintenance triage and prioritization scheme that accommodates business and IT risks and urgencies.

    • Streamline Application Maintenance – Phase 3: Optimize Maintenance Capabilities

    4. Streamline maintenance delivery

    Define and enforce quality standards in maintenance activities and build a high degree of transparency to readily address delivery challenges.

    • Streamline Application Maintenance – Phase 4: Streamline Maintenance Delivery
    • Application Maintenance Business Case Presentation Document
    [infographic]

    Workshop: Streamline Application Maintenance

    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 Your Maintenance Priorities

    The Purpose

    Understand the business and IT stakeholder priorities driving the success of your application maintenance practice.

    Understand any current issues that are affecting your maintenance practice.

    Key Benefits Achieved

    Awareness of business and IT priorities.

    An understanding of the maturity of your maintenance practices and identification of issues to alleviate.

    Activities

    1.1 Define priorities for enhanced maintenance practices.

    1.2 Conduct a current state assessment of your application maintenance practices.

    Outputs

    List of business and technical priorities

    List of the root-cause issues, constraints, and opportunities of current maintenance practice

    2 Instill Maintenance Governance

    The Purpose

    Define the processes, roles, and points of communication across all maintenance activities.

    Key Benefits Achieved

    An in-depth understanding of all maintenance activities and what they require to function effectively.

    Activities

    2.1 Modify your maintenance process.

    2.2 Define your maintenance roles and responsibilities.

    Outputs

    Application maintenance process flow

    List of metrics to gauge success

    Maintenance roles and responsibilities

    Maintenance communication flow

    3 Enhance Triaging and Prioritization Practices

    The Purpose

    Understand in greater detail the process and people involved in receiving and triaging a request.

    Define your criteria for value, impact, and urgency, and understand how these fit into a prioritization scheme.

    Understand backlog management and release planning tactics to accommodate maintenance.

    Key Benefits Achieved

    An understanding of the stakeholders needed to assess and approve requests.

    The criteria used to build a tailored prioritization scheme.

    Tactics for efficient use of resources and ideal timing of the delivery of changes.

    A process that ensures maintenance teams are always working on tasks that are valuable to the business.

    Activities

    3.1 Review your maintenance intake process.

    3.2 Define a request prioritization scheme.

    3.3 Create a set of practices to manage your backlog and release plans.

    Outputs

    Understanding of the maintenance request intake process

    Approach to assess the impact, urgency, and severity of requests for prioritization

    List of backlog management grooming and release planning practices

    4 Streamline Maintenance Delivery

    The Purpose

    Understand how to apply development best practices and quality standards to application maintenance.

    Learn the methods for monitoring and visualizing maintenance work.

    Key Benefits Achieved

    An understanding of quality standards and the scenarios for where they apply.

    The tactics to monitor and visualize maintenance work.

    Streamlined maintenance delivery process with best practices.

    Activities

    4.1 Define approach to monitor maintenance work.

    4.2 Define application quality attributes.

    4.3 Discuss best practices to enhance maintenance development and deployment.

    Outputs

    Taskboard structure and rules

    Definition of application quality attributes with user scenarios

    List of best practices to streamline maintenance development and deployment

    5 Finalize Your Maintenance Practice

    The Purpose

    Create a target state built from appropriate metrics and attainable goals.

    Consider the required items and steps for the implementation of your optimization initiatives.

    Key Benefits Achieved

    A realistic target state for your optimized application maintenance practice.

    A well-defined and structured roadmap for the implementation of your optimization initiatives.

    Activities

    5.1 Refine your target state maintenance practices.

    5.2 Develop a roadmap to achieve your target state.

    Outputs

    Finalized application maintenance process document

    Roadmap of initiatives to achieve your target state

    Secure Operations in High-Risk Jurisdictions

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    Business operations in high-risk areas of the world contend with complex threat environments and risk scenarios that often require a unique response. But traditional approaches to security strategy often miss these jurisdictional risks, leaving organizations vulnerable to threats that range from cybercrime and data breaches to fines and penalties.

    Security leaders need to identify high-risk jurisdictions, inventory critical assets, identify vulnerabilities, assess risks, and identify security controls necessary to mitigate those risks.

    Secure operations and protect critical assets in high-risk regions

    Across risks that include insider threats and commercial surveillance, the two greatest vulnerabilities that organizations face in high-risk parts of the world are travel and compliance. Organizations can make small adjustments to their security program to address these risks:

    1. Support high-risk travel: Put measures and guidelines in place to protect personnel, data, and devices before, during, and after employee travel.
    2. Mitigate compliance risk: Consider data residency requirements, data breach notification, cross-border data transfer, and third-party risks to support business growth.

    Using these two prevalent risk scenarios in high-risk jurisdictions as examples, this research walks you through the steps to analyze the threat landscape, assess security risks, and execute a response to mitigate them.

    Secure Operations in High-Risk Jurisdictions Research & Tools

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

    1. Secure Operations in High-Risk Jurisdictions – A step-by-step approach to mitigating jurisdictional security and privacy risks.

    Traditional approaches to security strategy often miss jurisdictional risks. Use this storyboard to make small adjustments to your security program to mitigate security risks in high-risk jurisdictions.

    • Secure Operations in High-Risk Jurisdictions – Phases 1-3

    2. Jurisdictional Risk Register and Heat Map Tool – A tool to inventory, assess, and treat jurisdictional risks.

    Use this tool to track jurisdictional risks, assess the exposure of critical assets, and identify mitigation controls. Use the geographic heatmap to communicate inherent jurisdictional risk with key stakeholders.

    • Jurisdictional Risk Register and Heat Map Tool

    3. Guidelines for Key Jurisdictional Risk Scenarios – Two structured templates to help you develop guidelines for two key jurisdictional risk scenarios: high-risk travel and compliance risk

    Use these two templates to develop help you develop your own guidelines for key jurisdictional risk scenarios. The guidelines address high-risk travel and compliance risk.

    • Digital Safety Guidelines for International Travel
    • Guidelines for Compliance With Local Security and Privacy Laws Template

    Infographic

    Workshop: Secure Operations in High-Risk Jurisdictions

    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 Context for Risk Assessment

    The Purpose

    Assess business requirements and evaluate security pressures to set the context for the security risk assessment.

    Key Benefits Achieved

    Understand the goals of the organization in high-risk jurisdictions.

    Assess the threats to critical assets in these jurisdictions and capture stakeholder expectations for information security.

    Activities

    1.1 Determine assessment scope.

    1.2 Determine business goals.

    1.3 Determine compliance obligations.

    1.4 Determine risk appetite.

    1.5 Conduct pressure analysis.

    Outputs

    Business requirements

    Security pressure analysis

    2 Analyze Key Risk Scenarios for High-Risk Jurisdictions

    The Purpose

    Build key risk scenarios for high-risk jurisdictions.

    Key Benefits Achieved

    Identify critical assets in high-risk jurisdictions, their vulnerabilities to relevant threats, and the adverse impact should malicious agents exploit them.

    Assess risk exposure of critical assets in high-risk jurisdictions.

    Activities

    2.1 Identify critical assets.

    2.2 Identify threats.

    2.3 Assess risk likelihood.

    2.4 Assess risk impact.

    Outputs

    Key risk scenarios

    Jurisdictional risk exposure

    Jurisdictional Risk Register and Heat Map

    3 Build Risk Treatment Roadmap

    The Purpose

    Prioritize and treat jurisdictional risks to critical assets.

    Key Benefits Achieved

    Build an initiative roadmap to reduce residual risks in high-risk jurisdictions.

    Activities

    3.1 Identify and assess risk response.

    3.2 Assess residual risks.

    3.3 Identify security controls.

    3.4 Build initiative roadmap.

    Outputs

    Action plan to mitigate key risk scenarios

    Further reading

    Secure Operations in High-Risk Jurisdictions

    Assessments often omit jurisdictional risks. Are your assets exposed?

    EXECUTIVE BRIEF

    Analyst Perspective

    Operations in high-risk jurisdictions face unique security scenarios.

    The image contains a picture of Michel Hebert.

    Michel Hébert

    Research Director

    Security and Privacy

    Info-Tech Research Group


    The image contains a picture of Alan Tang.

    Alan Tang

    Principal Research Director

    Security and Privacy

    Info-Tech Research Group


    Traditional approaches to security strategies may miss key risk scenarios that critical assets face in high-risk jurisdictions. These include high-risk travel, heightened insider threats, advanced persistent threats, and complex compliance environments. Most organizations have security strategies and risk management practices in place, but securing global operations requires its own effort. Assess the security risk that global operations pose to critical assets. Consider the unique assets, threats, and vulnerabilities that come with operations in high-risk jurisdictions. Focus on the business activities you support and integrate your insights with existing risk management practices to ensure the controls you propose get the visibility they need. Your goal is to build a plan that mitigates the unique security risks that global operations pose and secures critical assets in high-risk areas. Don’t leave security to chance.

    Executive Summary

    Your Challenge

    • Security leaders who support operations in many countries struggle to mitigate security risks to critical assets. Operations in high-risk jurisdictions contend with complex threat environments and security risk scenarios that often require a unique response.
    • Security leaders need to identify critical assets, assess vulnerabilities, catalog threats, and identify the security controls necessary to mitigate related operational risks.

    Common Obstacles

    • Securing operations in high-risk jurisdictions requires additional due diligence. Each jurisdiction involves a different risk context, which complicates efforts to identify, assess, and mitigate security risks to critical assets.
    • Security leaders need to engage the organization with the right questions and identify high-risk vulnerabilities and security risk scenarios to help stakeholders make an informed decision about how to assess and treat the security risks they face in high-risk jurisdictions.

    Info-Tech’s Approach

    Info-Tech has developed an effective approach to protecting critical assets in high-risk jurisdictions.

    This approach includes tools for:

    • Evaluating the security context of your organization’s high-risk jurisdictions.
    • Identifying security risk scenarios unique to high-risk jurisdictions and assessing the exposure of critical assets.
    • Planning and executing a response.

    Info-Tech Insight

    Organizations with global operations must contend with a more diverse set of assets, threats, and vulnerabilities when they operate in high-risk jurisdictions. Security leaders need to take additional steps to secure operations and protect critical assets.

    Business operations in high-risk jurisdictions face a more complex security landscape

    Information security risks to business operations vary widely by region.

    The 2022 Allianz Risk Barometer surveyed 2,650 business risk specialists in 89 countries to identify the most important risks to operations. The report identified cybercrime, IT failures, outages, data breaches, fines, and penalties as the most important global business risks in 2022, but their results varied widely by region. The standout finding of the 2022 Allianz Risk Barometer is the return of security risks as the most important threat to business operations. Security risks will continue to be acute beyond 2022, especially in Africa, the Middle East, Europe, and the Asia-Pacific region, where they will dwarf risks of supply chain interruptions, natural catastrophe, and climate change.

    Global operations in high-risk jurisdictions contend with more diverse threats. These security risk scenarios are not captured in traditional security strategies.

    The image contains a picture of the world map that has certain areas of the map highlighted in various shades of blue based on higher security-related business risks.

    Figures represent the number of cybersecurity risks business risk specialists selected as a percentage of all business risks (Allianz, 2022). Higher scores indicate jurisdictions with higher security-related business risks. Jurisdictions without data are in grey.

    Different jurisdictions’ commitment to cybersecurity also varies widely, which increases security risks further

    The Global Cybersecurity Index (GCI) provides insight into the commitment of different countries to cybersecurity.

    The index assesses a country’s legal framework to identify basic requirements that public and private stakeholders must uphold and the legal instruments prohibiting harmful actions.

    The 2020 GCI results show overall improvement and strengthening of the cybersecurity agenda globally, but significant regional gaps persist. Of the 194 countries surveyed:

    • 33% had no data protection legislation.
    • 47% had no breach notification measures in place.
    • 50% had no legislation on the theft of personal information.
    • 19% still had no legislation on illegal access.

    Not every jurisdiction has the same commitment to cybersecurity. Protecting critical assets in high-risk jurisdictions requires additional due diligence.

    The image contains a picture of the world map that has certain areas of the map highlighted in various shades of blue based on scores in relation to the Global Security Index.

    The diagram sets out the score and rank for each country that took part in the Global Cybersecurity Index (ITU, 2021)

    Higher scores show jurisdictions with a lower rank on the CGI, which implies greater risk. Jurisdictions without data are in grey.

    Securing critical assets in high-risk jurisdictions requires additional effort

    Traditional approaches to security strategy may miss these key risk scenarios.

    As a result, security leaders who support operations in many countries need to take additional steps to mitigate security risks to critical assets.

    Guide stakeholders to make informed decisions about how to assess and treat the security risks and secure operations.

    • Engage the organization with the right questions.
    • Identify critical assets and assess vulnerabilities.
    • Catalogue threats and build risk scenarios.
    • Identify the security controls necessary to mitigate risks.

    Work with your organization to analyze the threat landscape, assess security risks unique to high-risk jurisdictions, and execute a response to mitigate them.

    This project blueprint works through this process using the two most prevalent risk scenarios in high-risk jurisdictions: high-risk travel and compliance risk.

    Key Risk Scenarios

    • High-Risk Travel
    • Compliance Risk
    • Insider Threat
    • Advanced Persistent Threat
    • Commercial Surveillance
    The image contains a screenshot of an Info-Tech thought model regarding secure global operations in high-risk jurisdictions.

    Travel risk is the first scenario we use as an example throughout the blueprint

    • This project blueprint outlines a process to identify, assess, and mitigate key risk scenarios in high-risk jurisdictions. We use two common key risk scenarios as examples throughout the deck to illustrate how you create and assess your own scenarios.
    • Supporting high-risk travel is the first scenario we will study in-depth as an example. Business growth, service delivery, and mergers and acquisitions can lead end users to travel to high-risk jurisdictions where staff, devices, and data are at risk.
    • Compromised or stolen devices can provide threat actors with access to data that could compromise the organization’s strategic, economic, or competitive advantage or expose the organization to regulatory risk.

    The project blueprint includes template guidance in Phase 3 to help you build and deploy your own travel guidelines to protect critical assets and support end users before they leave, during their trip, and when they return.

    Before you leave

    • Identify high-risk countries.
    • Enable controls.
    • Limit what you pack.

    During your trip

    • Assume you are monitored.
    • Limit access to systems.
    • Prevent theft.

    When you return

    • Change your password.
    • Restore your devices.

    Compliance risk is the second scenario we use as an example

    • Mitigating compliance risk is the second scenario we will study as an example in this blueprint. The legal and regulatory landscape is evolving rapidly to keep step with the pace of technological change. Security and privacy leaders are expected to mitigate the risk of noncompliance as the organization expands to new jurisdictions.
    • Later sections will show how to think through at least four compliance risks, including:
      • Cross-border data transfer
      • Third-party risk management
      • Data breach notification
      • Data residency

    The project blueprint includes template guidance in Phase 3 to help you deploy your own compliance governance controls as a risk mitigation measure.

    Secure Operations in High-Risk Jurisdictions: Info-Tech’s methodology

    1. Identify Context

    2. Assess Risks

    3. Execute Response

    Phase Steps

    1. Assess business requirements
    2. Evaluate security pressures
    1. Identify risks
    2. Assess risk exposure
    1. Treat security risks
    2. Build initiative roadmap

    Phase Outcomes

    • Internal security pressures that capture the governance, policies, practices, and risk tolerance of the organization
    • External security pressures that capture the expectations of customers, regulators, legislators, and business partners
    • A heatmap that captures not only the global exposure of your critical assets but also the business processes they support
    • A security risk register to allow for the easy transfer of critical assets’ global security risk data to your organization’s enterprise risk management practice
    • A roadmap of prioritized initiatives to apply relevant controls and secure global assets
    • A set of key risk indicators to monitor and report your progress

    Blueprint deliverables

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

    Business Security Requirements

    Identify the context for the global security risk assessment, including risk appetite and risk tolerance.

    Jurisdictional Risk Register and Heatmap

    Identify critical global assets and the threats they face in high-risk jurisdictions and assess exposure.

    Mitigation Plan

    Roadmap of initiatives and security controls to mitigate global risks to critical assets. Tools and templates to address key security risk scenarios.

    Key deliverable:

    Jurisdictional Risk Register and Heatmap

    Use the Jurisdictional Risk Register and Heatmap Tool to capture information security risks to critical assets in high-risk jurisdictions. The tool generates a world chart that illustrates the risks global operations face to help you engage the business and execute a response.

    Blueprint benefits

    Protect critical assets in high-risk jurisdictions

    IT Benefits

    Assess and remediate information security risk to critical assets in high-risk jurisdictions.

    Easily integrate your risk assessment with enterprise risk assessments to improve communication with the business.

    Illustrate key information security risk scenarios to make the case for action in terms the business understands.

    Business Benefits

    Develop mitigation plans to protect staff, devices, and data in high-risk jurisdictions.

    Support business growth in high-risk jurisdictions without compromising critical assets.

    Mitigate compliance risk to protect your organization’s reputation, avoid fines, and ensure business continuity.

    Quantify the impact of securing global operations

    The tool included with this blueprint can help you measure the impact of implementing the research

    • Use the Jurisdictional Risk Register and Heatmap Tool to describe the key risk scenarios you face, assess their likelihood and impact, and estimate the cost of mitigating measures. Working through the project in this way will help you quantify the impact of securing global operations.
    The image contains a screenshot of Info-Tech's Jurisdictional Risk Register and Heatmap Tool. The image contains a screenshot of the High-Risk Travel Jurisdiction.

    Establish Baseline Metrics

    • Review existing information security and risk management metrics and the output of the tools included with the blueprint.
    • Identify metrics to measure the impact of your risk management efforts. Focus specifically on high-risk jurisdictions.
    • Compare your results with those in your overall security and risk management program.

    ID

    Metric

    Why is this metric valuable?

    How do I calculate it?

    1.

    Overall Exposure – High-Risk Jurisdictions

    Illustrates the overall exposure of critical assets in high-risk jurisdictions.

    Use the Jurisdictional Risk Register and Heatmap Tool. Calculate the impact times the probability rating for each risk. Take the average.

    2.

    # Risks Identified – High-Risk Jurisdictions

    Informs risk tolerance assessments.

    Use the Jurisdictional Risk Register and Heatmap Tool.

    3.

    # Risks Treated – High-Risk Jurisdictions

    Informs residual risk assessments.

    Use the Jurisdictional Risk Register and Heatmap Tool.

    4.

    Mitigation Cost – High-Risk Jurisdictions

    Informs cost-benefit analysis to determine program effectiveness.

    Use the Jurisdictional Risk Register and Heatmap Tool.

    5.

    # Security Incidents – High-Risk Jurisdictions

    Informs incident trend calculations to determine program effectiveness.

    Draw the information from your service desk or IT service management tool.

    6.

    Incident Remediation Cost – High-Risk Jurisdictions

    Informs cost-benefit analysis to determine program effectiveness.

    Estimate based on cost and effort, including direct and indirect cost such as business disruptions, administrative finds, reputational damage, etc.

    7.

    TRENDS: Program Effectiveness – High-Risk Jurisdictions

    # of security incidents over time. Remediation : Mitigation costs over time

    Calculate based on metrics 5 to 7.

    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

    Call #1: Scope project requirements, determine assessment scope, and discuss challenges.

    Phase 2

    Call #2: Conduct initial risk assessment and determine risk tolerance.

    Call #3: Evaluate security pressures in high-risk jurisdictions.

    Call #4: Identify risks in high-risk jurisdictions.

    Call #5: Assess risk exposure.

    Phase 3

    Call #6: Treat security risks in high-risk jurisdictions.

    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

    Days 1

    Days 2-3

    Day 4

    Day 5

    Identify Context

    Key Risk Scenarios

    Build Roadmap

    Next Steps and Wrap-Up (offsite)

    Activities

    1.1.1 Determine assessment scope.

    1.1.2 Determine business goals.

    1.1.3 Identify compliance obligations.

    1.2.1 Determine risk appetite.

    1.2.2 Conduct pressure analysis.

    2.1.1 Identify assets.

    2.1.2 Identify threats.

    2.2.1 Assess risk likelihood.

    2.2.2 Assess risk impact.

    3.1.1 Identify and assess risk response.

    3.1.2 Assess residual risks.

    3.2.1 Identify security controls.

    3.2.2 Build initiative roadmap.

    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 requirements for security risk assessment
    2. Identification of high-risk jurisdictions
    3. Security threat landscape for high-risk jurisdictions
    1. Inventory of relevant threats, critical assets, and their vulnerabilities
    2. Assessment of adverse effects should threat agents exploit vulnerabilities
    3. Risk register with key risk scenarios and heatmap of high-risk jurisdictions
    1. Action plan to mitigate key risk scenarios
    2. Investment and implementation roadmap
    1. Completed information security risk assessment for two key risk scenarios
    2. Risk mitigation roadmap

    No safe jurisdictions

    Stakeholders sometimes ask information security and privacy leaders to produce a list of safe jurisdictions from which to operate. We need to help them see that there are no safe jurisdictions, only relatively risky ones. As you build your security program, deepen the scope of your risk assessments to include risk scenarios critical assets face in different jurisdictions. These risks do not need to rule out operations, but they may require additional mitigation measures to keep staff, data, and devices safe and reduce potential reputational harms.

    Traditional approaches to security strategy often omit jurisdictional risks.

    Global operations must contend with a more complex security landscape. Secure critical assets in high-risk jurisdictions with a targeted risk assessment.

    The two greatest risks are high-risk travel and compliance risk.

    You can mitigate them with small adjustments to your security program.

    Support High-Risk Travel

    When securing travel to high-risk jurisdictions, you must consider personnel safety as well as data and device security. Put measures and guidelines in place to protect them before, during, and after travel.

    Mitigate Compliance Risk

    Think through data residency requirements, data breach notification, cross-border data transfer, and third-party risks to support business growth and mitigate compliance risks in high-risk jurisdictions to protect your organization’s reputation and avoid hefty fines or business disruptions.

    Phase 1

    Identify Context

    This phase will walk you through the following activities:

    • Assess business requirements to understand the goals of the organization’s global operations, as well as its risk governance, policies, and practices.
    • Evaluate jurisdictional security pressures to understand threats to critical assets and capture the expectations of external stakeholders, including customers, regulators, legislators, and business partners, and assess risk tolerance.

    This phase involves the following participants:

    • Business stakeholders
    • IT leadership
    • Security team
    • Risk and Compliance

    Step 1.1

    Assess Business Requirements

    Activities

    1.1.1 Determine assessment scope

    1.1.2 Identify enterprise goals in high-risk jurisdictions

    1.1.3 Identify compliance obligations

    This step involves the following participants:

    • Business stakeholders
    • IT leadership
    • Security team
    • Risk and Compliance

    Outcomes of this step

    • Assess business requirements to understand the goals of the organization’s global operations, as well as its risk governance, policies, and practices.

    Focus the risk assessment on high-risk jurisdictions

    Traditional approaches to information security strategy often miss threats to global operations

    • Successful security strategies are typically sensitive to risks to different IT systems and lines of business.
    • However, securing global operations requires additional focus on high-risk jurisdictions, considering what makes them unique.
    • This first phase of the project will help you evaluate the business context of operations in high-risk jurisdictions, including:
      • Enterprise and security goals.
      • Lines of business, physical locations, and IT systems that need additional oversight.
      • Unique compliance obligations.
      • Unique risks and security pressures.
      • Organizational risk tolerance in high-risk jurisdictions.

    Focus your risk assessment on the business activities security supports in high-risk jurisdictions and the unique threats they face to bridge gaps in your security strategy.

    Identify jurisdictions with higher inherent risks

    Your security strategy may not describe jurisdictional risk adequately.

    • Security strategies list lines of business, physical locations, and IT systems the organization needs to secure and those whose security will depend on a third-party. You can find additional guidance on fixing the scope and boundaries of a security strategy in Phase 1 of Build an Information Security Strategy.
    • However, security risks vary widely from one jurisdiction to another according to:
      • Active cyber threats.
      • Legal and regulatory frameworks.
      • Regional security and preparedness capabilities.
    • Your first task is to identify high-risk jurisdictions to target for additional oversight.

    Work closely with your enterprise risk management function.

    Enterprise risk management functions are often tasked with developing risk assessments from composite sources. Work closely with them to complete your own assessment.

    Countries at heightened risk of money laundering and terrorism financing are examples of high-risk jurisdictions. The Financial Action Task Force and the U.S. Treasury publish reports three times a year that identify Non-Cooperative Countries or Territories.

    Develop a robust jurisdictional assessment

    Design an intelligence collection strategy to inform your assessment

    Strategic Intelligence

    White papers, briefings, reports. Audience: C-Suite, board members

    Tactical Intelligence

    Internal reports, vendor reports. Audience: Security leaders

    Operational intelligence

    Indicators of compromise. Audience: IT Operations

    Operational intelligence focuses on machine-readable data used to block attacks, triage and validate alerts, and eliminate threats from the network. It becomes outdated in a matter of hours and is less useful for this exercise.

    Determine travel risks to bolster your assessments

    Not all locations and journeys will require the same security measures.

    • Travel risks vary significantly according to destination, the nature of the trip, and traveler profile.
    • Access to an up-to-date country risk rating system enables your organization and individual staff to quickly determine the overall level of risk in a specific country or location.
    • Based on this risk rating, you can specify what security measures are required prior to travel and what level of travel authorization is appropriate, in line with the organization's security policy or travel security procedures.
    • While some larger organizations can maintain their own country risk ratings, this requires significant capacity, particularly to obtain the necessary information to keep these regularly updated.
    • It may be more effective for your organization to make use of the travel risk ratings provided by an external security information provider, such as a company linked to your travel insurance or travel booking service, if available.
    • Alternatively, various open-source travel risk ratings are available via embassy travel sites or other website providers.

    Without a flexible system to account for the risk exposures of different jurisdictions, staff may perceive measures as a hindrance to operations.

    Develop a tiered risk rating

    The example below outlines potential risk indicators for high-risk travel.

    Rating

    Description

    Low

    Generally secure with adequate physical security. Low violent crime rates. Some civil unrest during significant events. Acts of terrorism rare. Risks associated with natural disasters limited and health threats mainly preventable.

    Moderate

    Periodic civil unrest. Antigovernment, insurgent, or extremist groups active with sporadic acts of terrorism. Staff at risk from common and violent crime. Transport and communications services are unreliable and safety records are poor. Jurisdiction prone to natural disasters or disease epidemics.

    High

    Regular periods of civil unrest, which may target foreigners. Antigovernment, insurgent, or extremist groups very active and threaten political or economic stability. Violent crime rates high, often targeting foreigners. Infrastructure and emergency services poor. May be regular disruption to transportation or communications services. Certain areas off-limits to foreigners. Jurisdictions experiencing natural disasters or epidemics are considered high risk.

    Extreme

    Undergoing active conflict or persistent civil unrest. Risk of being caught up in a violent incident or attack is very high. Authorities may have lost control of significant portions of the country. Lines between criminality and political and insurgent violence are blurred. Foreigners are likely to be denied access to parts of the country. Transportation and communication services are severely degraded or nonexistent. Violence presents a direct threat to staff security.

    Ratings are formulated by assessing several types of risk, including conflict, political/civil unrest, terrorism, crime, and health and infrastructure risks.

    1.1.1 Determine assessment scope

    1 – 2 hours

    1. As a group, brainstorm a list of high-risk jurisdictions to target for additional assessment. Write down as many items as possible to include in:
    • Lines of business
    • Physical locations
    • IT systems

    Pay close attention to elements of the assessment that are not in scope.

  • Discuss the response and the rationale for targeting each of them for additional risk assessments. Identify security-related concerns for different lines of business, locations, user groups, IT systems, and data.
  • Record your responses and your comments in the Information Security Requirements Gathering Tool.
  • Input

    Output

    • Corporate strategy
    • IT strategy
    • Security strategy
    • Relevant threat intelligence
    • A list of high-risk jurisdictions to focus your risk assessment

    Materials

    Participants

    • Laptop
    • Projector
    • Security team
    • IT leadership
    • Business stakeholders
    • Enterprise Risk Management
    • Compliance
    • Legal

    Download the Information Security Requirements Gathering Tool

    Position your efforts in a business context

    Securing critical assets in high-risk jurisdictions is a business imperative

    • Many companies relegate their information security strategies to their IT department. Aside from the strain the choice places on a department that already performs many different functions, it wrongly implies that mitigating information security risk is simply an IT problem.
    • Managing information security risks is a business problem. It requires that organizations identify their risk appetite, prioritize relevant threats, and define risk mitigation initiatives. Business leaders can only do these activities effectively in a context that recognizes the business and financial benefits of implementing protections.
    • This is notably true of businesses with operations in many different countries. Each jurisdiction has its own set of security risks the organization must account for, as well as unique local laws and regulations that affect business operations.
    • In high-risk jurisdictions, your efforts must consider the unique operational challenges your organization may not face in its home country. Your efforts to secure critical assets will be most successful if you describe key risk scenarios in terms of their impact on business goals.
    • You can find additional guidance on assessing the business context of a security strategy in Phase 1 of Build an Information Security Strategy.

    Do you understand the unique business context of operations in high-risk jurisdictions?

    1.1.2 Identify business goals

    Estimated Time: 1-2 hours

    1. As a group, brainstorm the primary and secondary business goals of the organization. Focus your assessment on operations in high-risk jurisdictions you identified in Exercise 1.1.1. Review:
    • Relevant corporate and IT strategies.
    • The business goal definitions and indicator metrics in tab 2, “Goals Definition,” of the Information Security Requirements Gathering Tool.
  • Limit business goals to no more than two primary goals and three secondary goals. This limitation will help you prioritize security initiatives at the end of the project.
  • For each business goal, identify up to two security alignment goals that will support business goals in high-risk jurisdictions.
  • Input

    Output

    • Corporate strategy
    • IT strategy
    • Security strategy
    • Your goals for the security risk assessment for high-risk jurisdictions

    Materials

    Participants

    • Laptop
    • Projector
    • Security team
    • IT leadership
    • Business stakeholders
    • Risk Management
    • Compliance
    • Legal

    Download the Information Security Requirements Gathering Tool

    Record business goals

    Capture the results in the Information Security Requirements Gathering Tool

    1. Record the primary and secondary business goals you identified in tab 3, “Goals Cascade,” of the Information Security Requirements Gathering Tool.
    2. Next, record the two security alignment goals you selected for each business goal based on the tool’s recommendations.
    3. Finally, review the graphic diagram that illustrates your goals on tab 6, “Results,” of the Information Security Requirements Gathering Tool.
    4. Revisit this exercise whenever operations expands to a new jurisdiction to capture how they contribute to the organization’s mission and vision and how the security program can support them.
    The image contains a screenshot of Tab 3, Goals Cascade.

    Tab 3, Goals Cascade

    The image contains a screenshot of Tab 6, Results.

    Tab 6, Results

    Analyze business goals

    Assess how operating in multiple jurisdictions adds nuance to your business goals

    • Security leaders need to understand the direction of the business to propose relevant security initiatives that support business goals in high-risk jurisdictions.
    • Operating in different jurisdictions carries its own degree of risk. The organization is subject not only to the information security risks and legal frameworks of its country of origin but also to those associated with international jurisdictions.
    • You need to understand where your organization operates and how these different jurisdictions contribute to your business goals to support their performance and protect the firm’s reputation.
    • This exercise will make an explicit link between security and privacy concerns in high-risk jurisdictions, what the business cares about, and what security is trying to accomplish.

    If the organization is considering a merger and acquisition project that will expand operations in jurisdictions with different travel risk profiles, the security organization needs to revise the security strategy to ensure the organization can support high-risk travel and mitigate risks to critical assets.

    Identify compliance obligations

    Data compliance obligations loom large in high-risk jurisdictions

    The image contains four hexagons, each with their own words. SOX, PCI DSS, HIPAA, HITECH.

    Security leaders are familiar with most conventional regulatory obligations that govern financial, personal, and healthcare data in North America and Europe.

    The image contains four hexagons, each with their own words. Residency, Cross-Border Transfer, Breach Notification, Third-Party Risk Mgmt.

    Data privacy concerns, nationalism, and the economic value of data are all driving jurisdictions to adopt data residency and data localization and to shut down the cross-border transfer of data.

    The next step requires you to consider the compliance obligations the organization needs to meet to support the business as it expands to other jurisdictions through natural growth, mergers, and acquisitions.

    1.1.3 Identify compliance obligations

    Estimated Time: 1-2 hours

    1. As a group, brainstorm compliance obligations in target jurisdictions. Focus your assessment on operations in high-risk jurisdictions.
    2. Include:

    • Laws
    • Governing regulations
    • Industry standards
    • Contractual agreements
  • Record your compliance obligations and comments on tab 4, “Compliance Obligations,” of the Information Security Requirements Gathering Tool.
  • If you need to take full stock of the laws and regulations in place in the jurisdictions where you operate that you are not familiar with, consider seeking local legal counsel to help you navigate this exercise.
  • Input

    Output

    • Legal and compliance frameworks in target jurisdictions
    • Mandatory and voluntary compliance obligations for target jurisdictions

    Materials

    Participants

    • Laptop
    • Projector
    • Security team
    • IT leadership
    • Business stakeholders
    • Risk Management
    • Compliance
    • Legal

    Download the Information Security Requirements Gathering Tool

    Step 1.2

    Evaluate Security Pressures

    Activities

    1.2.1 Conduct initial risk assessment

    1.2.2 Conduct pressure analysis

    1.2.3 Determine risk tolerance

    This step involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Outcomes of this step

    Identify threats to global assets and capture the security expectations of external stakeholders, including customers, regulators, legislators, and business partners, and determine risk tolerance.

    Evaluate security pressures to set the risk context

    Perform an initial assessment of high-risk jurisdictions to set the context.

    Assess:

    • The threat landscape.
    • The security pressures from key stakeholders.
    • The risk tolerance of your organization.

    You should be able to find the information in your existing security strategy. If you don’t have the information, work through the next three steps of the project blueprint.

    The image contains a diagram to demonstrate evaluating security pressures, as described in the text above.

    Some jurisdictions carry inherent risks

    • Jurisdictional risks stem from legal, regulatory, or political factors that exist in different countries or regions. They can also stem from unexpected legal changes in regions where critical assets have exposure. Understanding jurisdictional risks is critical because they can require additional security controls.
    • Jurisdictional risk tends to be higher in jurisdictions:
      • Where the organization:
        • Conducts high-value or high-volume financial transactions.
        • Supports and manages critical infrastructure.
        • Has high-cost data or data whose compromise could undermine competitive advantage.
        • Has a high percentage of part-time employees and contractors.
        • Experiences a high rate of employee turnover.
      • Where state actors:
        • Have a low commitment to cybersecurity, financial, and privacy legislation and regulation.
        • Support cybercrime organizations within their borders.

    Jurisdictional risk is often reduced to countries where money laundering and terrorist activities are high. In this blueprint, the term refers to the broader set of information security risks that arise when operating in a foreign country or jurisdiction.

    Five key risk scenarios are most prevalent

    Key Risk Scenarios

    • High-Risk Travel
    • Compliance Risk
    • Insider Threat
    • Advanced Persistent Threat
    • Commercial Surveillance

    Security leaders who support operations in many countries need to take additional steps to mitigate security risks to critical assets. The goal of the next two exercises is to analyze the threat landscape and security pressures unique to high-risk jurisdictions, which will inform the construction of key scenarios in Phase 2. These five scenarios are most prevalent in high-risk jurisdictions. Keep them in mind as you go through the exercises in this section.

    1.2.1 Assess jurisdictional risk

    1-3 hours

    1. As a group, review the questions on tab 2, “Risk Assessment,” of the Information Security Pressure Analysis Tool.
    2. Gather the required information from subject matter experts on the following risk elements with a focus on high-risk jurisdictions:
    3. Review each question in tab 2 of the Information Security Pressure Analysis Tool and select the most appropriate response.

    Input

    Output

    • Existing security strategy
    • List of organizational assets
    • Historical data on information security incidents
    • Completed risk assessment

    Materials

    Participants

    • Information Security Pressure Analysis Tool
    • Security team
    • IT leadership
    • Risk Management

    For more information on how to complete the risk assessment questionnaire, see Step 1.2.1 of Build an Information Security Strategy.

    1.2.2 Conduct pressure analysis

    1-3 hours

    1. As a group, review the questions on tab 3, “Pressure Analysis,” of the Information Security Pressure Analysis Tool.
    2. Gather the required information from subject matter experts on the following pressure elements with a focus on high-risk jurisdictions:
    • Compliance and oversight
    • Customer expectations
    • Business expectations
    • IT expectations
  • Review each question in the questionnaire and provide the most appropriate response using the drop-down list. It may be helpful to consult with the appropriate departments to obtain their perspectives.
  • For more information on how to complete the pressure analysis questionnaire, see Step 1.3 of Build an Information Security Strategy.

    Input

    Output

    • Information on various pressure elements within the organization
    • Existing security strategy
    • Completed pressure analysis

    Materials

    Participants

    • Information Security Pressure Analysis Tool
    • Security team
    • IT leadership
    • Business leaders
    • Compliance

    A low security pressure means that your stakeholders do not assign high importance to information security. You may need to engage stakeholders with the right key risk scenarios to illustrate jurisdictional risk and generate support for new security controls.

    Download the Information Security Pressure Analysis Tool

    Assess risk tolerance

    • Risk tolerance expresses the types and amount of risk the organization is willing to accept in pursuit of its goals.
    • These expectations can help you identify, manage, and report on key risk scenarios in high-risk jurisdictions.
    • For instance, an organization with a low risk tolerance will require a stronger information security program to minimize operational security risks.
    • It’s up to business leaders to determine the risks they are willing to accept. They may need guidance to understand how system-level risks affect the organization’s ability to pursue its goals.

    A formalized risk tolerance statement can help:

    • Support risk-based security decisions that align with business goals.
    • Provide a meaningful rationale for security initiatives.
    • Improve the transparency of investments in the organization’s security program.
    • Provide guidance for monitoring inherent risk and residual risk exposure.

    The role of security professionals is to identify and analyze key risk scenarios that may prevent the organization from reaching its goals.

    1.2.3 Determine risk tolerance

    1-3 hours

    1. As a group, review the questions on tab 4, “Risk Tolerance,” of the Information Security Pressure Analysis Tool.
    2. Gather the required information from subject matter experts on the following risk tolerance elements:
    • Recent IT problems, especially downtime and data recovery issues
    • Historical security incidents
  • Review any relevant documentation, including:
    • Existing security strategy
    • Business impact assessments
    • Service-level agreements

    For more information on how to complete the risk tolerance questionnaire, see Step 1.4 of Build an Information Security Strategy.

    Input

    Output

    • Existing security strategy
    • Data on recent IT problems and incidents
    • Business impact assessments
    • Completed risk tolerance statement

    Materials

    Participants

    • Information Security Pressure Analysis Tool
    • Security team
    • IT leadership
    • Risk Management

    Download the Information Security Pressure Analysis Tool

    Review the output of the results tab

    • The organizational risk assessment provides a high-level assessment of inherent risks in high-risk jurisdictions. Use the results to build and assess key risk scenarios in Phase 2.
    • Use the security pressure analysis to inform stakeholder management efforts. A low security pressure indicates that stakeholders do not yet grasp the impact of information security on organizational goals. You may need to communicate its importance before you discuss additional security controls.
    • Jurisdictions in which organizations have a low risk tolerance will require stronger information security controls to minimize operational risks.
    The image contains a screenshot of the organizational risk assessment. The image contains a screenshot of the security pressure analysis. The image contains a screenshot of the risk tolerance curve.

    Phase 2

    Assess Security Risks to Critical Assets

    This phase will walk you through the following activities:

    • Identify critical assets, their vulnerabilities to relevant threats, and the adverse impact a successful threat event would have on the organization.
    • Assess risk exposure of critical assets in high-risk jurisdictions for each risk scenario through an analysis of its likelihood and impact.

    This phase involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Step 2.1

    Identify Risks

    Activities

    2.1.1 Identify assets

    2.1.2 Identify threats

    This step involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Outcomes of this step

    • Define risk scenarios that identify critical assets, their vulnerabilities to relevant threats, and the adverse impact a successful threat event would have on the organization.

    This blueprint focuses on mitigating jurisdictional risks

    The image contains a screenshot of the IT Risk Management Framework. The framework includes: Risk Identification, Risk Assessment, Risk Response, and Risk Governance.

    For a deeper dive into building a risk management program, see Info-Tech’s core project blueprints on risk management:

    Build an IT Risk Management Program

    Combine Security Risk Management Components Into One Program

    Draft key risk scenarios to illustrate adverse events

    Risk scenarios help decision-makers understand how adverse events affect business goals.

    • Risk-scenario building is the process of identifying the critical factors that contribute to an adverse event and crafting a narrative that describes the circumstances and consequences if it were to happen.
    • Risk scenarios set up the risk analysis stage of the risk assessment process. They are narratives that describe in detail:
      • The asset at risk.
      • The threat that can act against the asset.
      • Their intent or motivation.
      • The circumstances and threat actor model associated with the threat event.
      • The potential effect on the organization.
      • When or how often the event might occur.

    Risk scenarios are further distilled into a single sentence or risk statement that communicates the essential elements from the scenario.

    Well-crafted risk scenarios have four components

    The second phase of the project will help you craft meaningful risk scenarios

    Threat

    Exploits an

    Asset

    Using a

    Method

    Creating an

    Effect

    An actor capable of harming an asset

    Anything of value that can be affected and results in loss

    Technique an actor uses to affect an asset

    How loss materializes

    Examples: Malicious or untrained employees, cybercriminal groups, malicious state actors

    Examples: Systems, regulated data, intellectual property, people

    Examples: Credential compromise, privilege escalation, data exfiltration

    Examples: Loss of data confidentiality, integrity, or availability; impact on staff health & safety

    Risk scenarios are concise, four to six sentence narratives that describe the core elements of forecasted adverse events. Use them to engage stakeholders with the right questions and guide them to make informed decisions about how to address and treat security risks in high-risk jurisdictions.

    The next slides review five key risk scenarios prevalent in high-risk jurisdictions. Use them as examples to develop your own.

    Travel to high-risk jurisdictions requires special measures to protect staff, devices, and data

    Governmental, academic, and commercial advisors compile lists of jurisdictions that pose greater travel risks annually.

    For instance, in the US, these lists might include countries that are:

    • Subjects of travel warnings by the US Department of State.
    • Identified as high risk by other US government sources such as:
      • The Department of the Treasury Office of Foreign Assets Control (OFAC).
      • The Federal Bureau of Investigation (FBI).
      • The Office of the Director of National Intelligence (ODNI).
    • Compiled from academic and commercial sources, such as Control Risks.

    When securing travel to high-risk jurisdictions, you must consider personnel safety as well as data and device security.

    The image contains a diagram to present high-risk jurisdictions.

    The diagram presents high-risk jurisdictions based on US governmental sources (2021) listed on this slide.

    High-risk travel

    Likelihood: Medium

    Impact: Medium

    Key Risk Scenario #1

    Malicious state actors, cybercriminals, and competitors can threaten staff, devices, and data during travel to high-risk jurisdictions. Device theft or compromise may occur while traveling through airports, accessing hotel computer and phone networks, or in internet cafés or other public areas. Threat actors can exploit data from compromised or stolen devices to undermine the organization’s strategic, economic, or competitive advantage. They can also infect compromised devices with malware that delivers malicious payloads once they reconnect with home networks.

    Threat Actor:

    • Malicious state actors
    • Cybercriminals
    • Competitors

    Assets:

    • Staff
    • IT systems
    • Sensitive data

    Effect:

    • Compromised staff health and safety
    • Loss of data
    • Lost of system integrity

    Methods:

    • Identify, steal, or target mobile devices.
    • Compromise network, wireless, or Bluetooth connections.
    • Leverage stolen devices as a means of infecting other networks.
    • Access devices to track user location.
    • Activate microphones on devices to collect information.
    • Intercept electronic communications users send from high-risk jurisdictions.

    The data compliance landscape is a jigsaw puzzle of data protection and data residency requirements

    Since the EU passed the GDPR in 2016, jurisdictions have turned to data regulations to protect citizen data

    Data privacy concerns, nationalism, and the economic value of data are all driving jurisdictions to adopt data residency, breach notification, and cross-border data transfer regulations. As 2021 wound down to a close, nearly all the world’s 30 largest economies had some form of data regulation in place. The regulatory landscape is shifting rapidly, which complicates operations as organizations grow into new markets or engage in merger and acquisition activities.

    Global operations require special attention to data-residency requirements, data breach notification requirements, and cross-border data transfer regulations to mitigate compliance risk.

    The image contains a diagram to demonstrate the data regulations placed in various places around the world.

    Compliance risk

    Likelihood: Medium

    Impact: High

    Key Risk Scenario #2

    Rapid changes in the privacy and security regulatory landscape threaten organizations’ ability to meet their compliance obligations from local legal and regulatory frameworks. Organizations risk reputational damage, administrative fines, criminal charges, and loss of market share. In extreme cases, organizations may lose their license to operate in high-risk jurisdictions. Shifts in the regulatory landscape can involve additional requirements for data residency, cross-border data transfer, data breach notification, and third-party risk management.

    Threat Actor:

    • Local, regional, and national state actors

    Asset:

    • Reputation, market share
    • License to operate

    Effect:

    • Administrative fines
    • Loss of reputation, brand trust, and consumer loyalty
    • Loss of market share
    • Suspension of business operations
    • Lawsuits due to collective actions and claims
    • Criminal charges

    Methods:

    • Shifts in the privacy and security regulatory landscape, including requirements for:
      • Data residency.
      • Cross-border data transfer.
      • Data breach notification.
      • Third-party security and privacy risk management.

    The incidence of insider threats varies widely by jurisdiction in unexpected ways

    On average, companies in North America, the Middle East, and Africa had the most insider incidents in 2021, while those in the Asia-Pacific region had the least.

    The Ponemon Institute set out to understand the financial consequences that result from insider threats and gain insight into how well organizations are mitigating these risks.

    In the context of this research, insider threat is defined as:

    • Employee or contractor negligence.
    • Criminal or malicious insider activities.
    • Credential theft (imposter risk).

    On average, the total cost to remediate insider threats in 2021 was US$15.4 million per incident.

    In all regions, employee or contractor negligence occurred most frequently. Organizations in North America and in the Middle East and Africa were most likely to experience insider threat incidents in 2021.

    the image contains a diagram of the world, with various places coloured in different shades of blue.

    The diagram represents the average number of insider incidents reported per organization in 2021. The results are analyzed in four regions (Ponemon Institute, 2022)

    Insider threat

    Likelihood: Low to Medium

    Impact: High

    Key Risk Scenario #3

    Malicious insiders, negligent employees, and credential thieves can exploit inside access to information systems to commit fraud, steal confidential or commercially valuable information, or sabotage computer systems. Insider threats are difficult to identify, especially when security is geared toward external threats. They are often familiar with the organization’s data and intellectual property as well as the methods in place to protect them. An insider may steal information for personal gain or install malicious software on information systems. They may also be legitimate users who make errors and disregard policies, which places the organization at risk.

    Threat Actor:

    • Malicious insiders
    • Negligent employees
    • Infiltrators

    Asset:

    • Sensitive data
    • Employee credentials
    • IT systems

    Effects:

    • Loss of system integrity
    • Loss of data confidentiality
    • Financial loss

    Methods:

    • Infiltrators may compromise credentials.
    • Malicious or negligent insiders may use corporate email to steal or share sensitive data, including:
      • Regulated data.
      • Intellectual property.
      • Critical business information.
    • Malicious agents may facilitate data exfiltration, as well as open-port and vulnerability scans.

    The risk of advanced persistent threats is more prevalent in Central and South America and the Asia-Pacific region

    Attacks from advanced persistent threat (APT) actors are more sophisticated than traditional ones.

    • More countries will use legal indictments as part of their cyber strategy. Exposing toolsets of APT groups carried out at the governmental level will drive more states to do the same.
    • Expect APTs to increasingly target network appliances like VPN gateways as organizations continue to sustain hybrid workforces.
    • The line between APTs and state-sanctioned ransomware groups is blurring. Expect cybercriminals to wield better tools, mount more targeted attacks, and use double-extortion tactics.
    • Expect more disruption and collateral damage from direct attacks on critical infrastructure.

    Top 10 Significant Threat Actors:

    • Lazarus
    • DeathStalker
    • CactusPete
    • IAmTheKing
    • TransparentTribe
    • StrongPity
    • Sofacy
    • CoughingDown
    • MuddyWater
    • SixLittleMonkeys

    Top 10 Targets:

    • Government
    • Banks
    • Financial Institutions
    • Diplomatic
    • Telecommunications
    • Educational
    • Defense
    • Energy
    • Military
    • IT Companies
    The image contains a world map coloured in various shades of blue.
    Top 12 countries targeted by APTs (Kaspersky, 2020)

    Track notable APTs to revise your list of high-risk jurisdictions and review the latest tactics and techniques

    Governmental advisors track notable APT actors that pose greater risks.

    The CISA Shields Up site, SANS Storm Center site, and MITRE ATT&CK group site provide helpful and timely information to understand APT risks in different jurisdictions.

    The following threat actors are currently associated with cyberattacks affiliated with the Russian government.

    Activity Group

    Risks

    APT28 (GRU)

    Known as Fancy Bear, this threat group has been tied to espionage since 2004. They compromised the Hillary Clinton campaign, amid other major events.

    APT29 (SVT)

    Tied to espionage since 2008. Reportedly compromised the Democratic National Committee in 2015. Cited in the 2021 SolarWinds compromise.

    Buhtrap/RTM Group

    Group focused on financial targets since 2014. Currently known to target Russian and Ukrainian banks.

    Gamaredon

    Operating in Crimea. Aligned with Russian interests. Has previously targeted Ukrainian government officials and organizations.

    DEV-0586

    Carried out wiper malware attacks on Ukrainian targets in January 2022.

    UNC1151

    Active since 2016. Linked to information operation campaigns and the distribution of anti-NATO material.

    Conti

    Most successful ransomware gang of 2021, with US$188M revenue. Supported Russian invasion of Ukraine, threatening attacks on allied critical infrastructure.

    Sources: MITRE ATT&CK; Security Boulevard, 2022; Reuters, 2022; The Verge, 2022

    Advanced persistent threat

    Likelihood: Low to Medium

    Impact: High

    Key Risk Scenario #4

    Advanced persistent threats are state actors or state-sponsored affiliates with the means to avoid detection by anti-malware software and intrusion detection systems. These highly-skilled and persistent malicious agents have significant resources with which to bypass traditional security controls, establish a foothold in the information technology infrastructure, and exfiltrate data undetected. APTs have the resources to adapt to a defender’s efforts to resist them over time. The loss of system integrity and data confidentiality over time can lead to financial losses, business continuity disruptions, and the destruction of critical infrastructure.

    Threat Actor:

    • State actors
    • State-sponsored affiliates

    Asset:

    • Sensitive data
    • IT systems
    • Critical infrastructure

    Effects:

    • Loss of system integrity
    • Loss of data confidentiality
    • Financial loss
    • Business continuity disruptions
    • Infrastructure destruction

    Methods:

    • Persistent, consistent attacks using the most advanced threats and tactics to bypass security defenses.
    • The goal of APTs is to maintain access to networks for prolonged periods without being detected.
    • The median dwell time differs widely between regions. FireEye reported the mean dwell time for 2018:
      • Americas: 71 days
      • Europe, Middle East, and Africa: 177 days
      • Asia-Pacific: 204 days
    Sources: Symantec, 2011; FireEye, 2019

    Threat agents have deployed invasive technology for commercial surveillance in at least 76 countries since 2015

    State actors and their affiliates purchased and used invasive spyware from companies in Europe, Israel, and the US.

    • “Customers are predominantly repressive regimes looking for new ways to control the flow of information and stifle dissent. Less than 10% of suspected customers are considered full democracies by the Economist Intelligence Unit.” (Top10VPN, 2021)
    • Companies based in economically developed and largely democratic states are profiting off the technology.
    • The findings demonstrate the need to consider geopolitical realities when assessing high-risk jurisdictions and to take meaningful action to increase layered defenses against invasive malware.
    • Spyware is having an increasingly well-known impact on civil society. For instance, since 2016, over 50,000 individual phone numbers have been identified as potential targets by NSO Group, the Israeli manufacturers of the notorious Pegasus Spyware. The target list contained the phone numbers of politicians, journalists, activists, doctors, and academics across the world.
    • The true number of those affected by spyware is almost impossible to determine given that many fall victim to the technology and do not notice.
    The image contains a map of the world with various countries highlighted in shades of blue.

    Countries where commercial surveillance tools have been deployed (“Global Spyware Market Index,” Top10VPN, 2021)

    The risks and effects of spyware vary greatly

    Spyware can steal mundane information, track a user’s every move, and everything in between.

    Adware

    Software applications that display advertisements while the program is running.

    Keyboard Loggers

    Applications that monitor and record keystrokes. Malicious agents use them to steal credentials and sensitive enterprise data.

    Trojans

    Applications that appear harmless but inflict damage or data loss to a system.

    Mobile Spyware

    Surveillance applications that infect mobile devices via SMS or MMS channels, though the most advanced can infect devices without user input.

    State actors and their affiliates use system monitors to track browsing habits, application usage, and keystrokes and capture information from devices’ GPS location data, microphone, and camera. The most advanced system monitor spyware, such as NSO Group’s Pegasus, can infect devices without user input and record conversations from end-to-end encrypted messaging systems.

    Commercial surveillance

    Likelihood: Low to Medium

    Impact: Medium

    Key Risk Scenario #5

    Malicious agents can deploy malware on end-user devices with commercial tools available off the shelf to secretly monitor the digital activity of users. Attacks exploit widespread vulnerabilities in telecommunications protocols. They occur through email and text phishing campaigns, malware embedded in untested applications, and sophisticated zero-click attacks that deliver payloads without requiring user interactions. Attacks target sensitive as well as mundane information. They can be used to track employee activities, investigate criminal activity, or steal credentials, credit card numbers, or other personally identifiable information.

    Threat Actor:

    • State actors
    • State-sponsored affiliates

    Asset:

    • Sensitive data
    • Staff health and safety
    • IT systems

    Effects:

    • Data breaches
    • Loss of data confidentiality
    • Increased risk to staff health and safety
    • Misuse of private data
    • Financial loss

    Methods:

    • Email and text phishing attacks that delivery malware payloads
    • Sideloading untested applications from a third-party source rather than an official retailer
    • Sophisticated zero-click attacks that deliver payloads without requiring user interaction

    Use the Jurisdictional Risk Register and Heatmap Tool

    The tool included with this blueprint can help you draft risk scenarios and risk statements in this section.

    The risk register will capture a list of critical assets and their vulnerabilities, the threats that endanger them, and the adverse effect your organization may face.

    The image includes two screenshots of the jurisdictional risk register and heatmap tool. The image contains a screenshot of the High-Risk Travel Jurisdiction.

    Download the Jurisdictional Risk Register and Heatmap Tool

    2.1.1 Identify assets

    1 – 2 hours

    1. As a group, consider critical or mission-essential functions in high-risk jurisdictions and the systems on which they depend. Brainstorm a list of the organization’s mission-supporting assets in high-risk jurisdictions. Consider:
    • Staff
    • Critical IT systems
    • Sensitive data
    • Critical operational processes
  • On a whiteboard, brainstorm the potential adverse effect of malicious agents in high-risk jurisdictions compromising critical assets. Consider the impact on:
    • Information systems.
    • Sensitive or regulated data.
    • Staff health and safety.
    • Critical operations and objectives.
    • Organizational finances.
    • Reputation and brand loyalty

    Threat

    Exploits an

    Asset

    Using a

    Method

    Creating an

    Effect

    Inputs for risk scenario identification

    Input

    Output

    • Corporate strategy
    • IT strategy
    • Security strategy
    • Business impact analyses
    • A list of the organization’s mission-supporting assets

    Materials

    Participants

    • Laptop
    • Projector
    • Whiteboard
    • Security team
    • IT leadership
    • System owner
    • Enterprise Risk Management

    Threat

    Exploits an

    Asset

    Using a

    Method

    Creating an

    Effect

    Inputs for risk scenario identification

    The image contains an example of the activity mentioned in the text above.

    Model threats to narrow the range of scenarios

    Motives and capabilities to perform attacks on critical assets vary across different threat actors.

    Category

    Actions

    Motivation

    Sophistication

    Nation-states

    Cyberespionage, cyberattacks

    Geopolitical

    High. Dedicated resources and personnel, extensive planning and coordination.

    Proxy organizations

    Espionage, destructive attacks

    Geopolitical, Ideological, Profit

    Moderate. Some planning and support functions and technical expertise.

    Cybercrime

    Theft, fraud, extortion

    Profit

    Moderate. Some planning and support functions and technical expertise.

    Hacktivists

    Disrupt operations, attack brands, release sensitive data

    Ideological

    Low. Rely on widely available tools that require little skill to deploy.

    Insiders

    Destruction or release of sensitive data, theft, exposure through negligence

    Incompetence, Discontent

    Internal access. Acting on their own or in concert with any of the above.

    • Criminals, hacktivists, and insiders vary in sophistication. Some criminal groups demonstrate a high degree of sophistication; however, a large cyber event that damages critical infrastructure does not align with their incentives to make money at minimal risk.
    • Proxy actors conduct offensive cyber operations on behalf of a beneficiary. They may be acting on behalf of a competitor, national government, or group of individuals.
    • Nation-states engage in long-term espionage and offensive cyber operations that support geopolitical and strategic policy objectives.

    2.1.2 Identify threats

    1 – 2 hours

    1. Review the outputs from activity 1.1.1 and activity 2.1.1.
    2. Identify threat agents that could undermine the security of critical assets in high-risk jurisdictions. Include internal and external actors.
    3. Assess their motives, means, and opportunities.
    • Which critical assets are most attractive? Why?
    • What paths and vulnerabilities can threat agents exploit to reach critical assets without going through a control?
    • How could they defeat existing controls? Draw on the MITRE framework to inform your analysis.
    • Once agents defeat a control, what further attack can they launch?

    Threat

    Exploits an

    Asset

    Using a

    Method

    Creating an

    Effect

    Inputs for risk scenario identification

    Input

    Output

    • Jurisdictional assessment from activity 1.1.1
    • Critical assets from activity 2.1.1
    • Potential vulnerabilities from:
      • Security control gap analysis
      • Security risk register
    • Threat intelligence
    • MITRE framework
    • A list of critical assets, threat agents, vulnerabilities, and potential attack vectors.

    Materials

    Participants

    • Laptop
    • Projector
    • Whiteboard
    • Security team
    • Infrastructure & Operations team
    • Enterprise Risk Management

    2.1.2 Identify threats (continued)

    1 – 2 hours

    1. On a whiteboard, brainstorm how threat agents will exploit vulnerabilities in critical assets to reach their goal. Redefine attack vectors to capture what could result from a successful initial attack.

    For example:

    • State actors and cybercriminals may steal or compromise end-user devices during travel to high-risk jurisdictions using malware they embed in airport charging stations, internet café networks, or hotel business centers.
    • Compromised devices may infect corporate networks and threaten sensitive data once they reconnect to them.

    Threat

    Exploits an

    Asset

    Using a

    Method

    Creating an

    Effect

    The image contains a screenshot of activity 2.1.2 as described in the text above.

    Bring together the critical risk elements into a single risk scenario

    Summarize the scenario further into a single risk statement

    Risk Scenario: High-Risk Travel

    State actors and cybercriminals can threaten staff, devices, and data during travel to high-risk jurisdictions. Device theft or compromise may occur while traveling through airports, accessing hotel computer and phone networks, or in internet cafés or other public areas. Threat actors can exploit data from compromised or stolen devices to undermine the organization’s strategic, economic, or competitive advantage. They can also infect compromised devices with malware that delivers malicious payloads once they reconnect with home networks.

    Risk Statement

    Cybercriminals compromise end-user devices during travel to high-risk jurisdictions, jeopardizing staff safety and leading to loss of sensitive data.

    Risk Scenario: Compliance Risk

    Rapid changes in the privacy and security regulatory landscape threaten an organization’s ability to meet its compliance obligations from local legal and regulatory frameworks. Organizations that fail to do so risk reputational damage, administrative fines, criminal charges, and loss of market share. In extreme cases, organizations may lose their license to operate in high-risk jurisdictions. Shifts in the regulatory landscape can involve additional requirements for data residency, cross-border data transfer, data breach notification, and third-party risk management.

    Risk Statement

    Rapid changes in the privacy and security regulations landscape threaten our ability to remain compliant, leading to reputational and financial loss.

    Fill out the Jurisdictional Risk Register and Heatmap Tool

    The tool is populated with data from two key risk scenarios: high-risk travel and compliance risk.

    The image includes two screenshots of the Jurisdictional Risk Register and Heatmap Tool.

    1. Label the risk in Tab 3, Column B.
    2. Record your risk scenario in Tab 3, Column C.
    3. Record your risk statement in Tab 3, Column D.
    4. Identify the applicable jurisdictions in Tab 3, Column E.
    5. You can further categorize the scenario as:
      • an enterprise risk (Column G).
      • an IT risk (Column H).

    Download the Jurisdictional Risk Register and Heatmap Tool

    Step 2.2

    Assess Risk Exposure

    Activities

    2.2.1 Identify existing controls

    2.2.2 Assess likelihood and impact

    This step involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Outcomes of this step

    • Assess risk exposure for each risk scenario through an analysis of its likelihood and impact.

    Brush up on risk assessment essentials

    The next step will help you prioritize IT risks based on severity.

    Likelihood of Occurrence X Likelihood of Impact = Risk Severity

    Likelihood of occurrence: How likely the risk is to occur.

    Likelihood of impact: The likely impact of a risk event.

    Risk severity: The significance of the risk.

    Evaluate risk severity against the risk tolerance thresholds and the cost of risk response.

    Identify existing controls before you proceed

    Existing controls will reduce the inherent likelihood and impact of the risk scenario you face.

    Existing controls were put in place to avoid, mitigate, or transfer key risks your organization faced in the past. Without considering existing controls, you run the risk of overestimating the likelihood and impact of the risk scenarios your organization faces in high-risk jurisdictions.

    For instance, the ability to remote-wipe corporate-owned devices will reduce the potential impact of a device lost or compromised during travel to high-risk jurisdictions.

    As you complete the risk assessment for each scenario, document existing controls that reduce their inherent likelihood and impact.

    2.2.1 Document existing controls

    6-10 hours

    1. Document the Risk Category and Existing Controls in the Jurisdictional Risk Register and Heatmap Tool.
      • Tactical controls apply to individual risks only. For instance, the ability to remote-wipe devices mitigates the impact of a device lost in a high-risk jurisdiction.
      • Strategic controls apply to multiple risks. For instance, deploying MFA for critical applications mitigates the likelihood that malicious actors can compromise a lost device and impedes their access in devices they do compromise.

    Input

    Output

    • Risk scenarios
    • Existing controls for risk scenarios

    Materials

    Participants

    • Jurisdictional Risk Register and Heatmap Tool
    • Laptop
    • Projector
    • Security team
    • IT leadership
    • Business stakeholders
    • Enterprise Risk Management

    Download the Jurisdictional Risk Register and Heatmap Tool.

    Assess the risk scenarios you identified in Phase 1

    The risk register is the central repository for risks in high-risk jurisdictions.

    • Use the second tab of the Jurisdictional Risk Register and Heatmap Tool to create likelihood, impact, and risk tolerance assessment scales to evaluate every risk event effectively.
    • Severity-level assessment is a “first pass” of your risk scenarios that will reveal your organization’s most severe risks in high-risk jurisdictions.
    • You can incorporate expected cost calculations into your evaluation to assess scenarios in greater detail.
    • Expected cost represents how much you would expect to pay in an average year for each risk event. Expected cost calculations can help compare IT risks to non-IT risks that may not use the same scales and communicate system-level risk to the business in a language they will understand.

    Expected cost calculations may not be practical. Determining robust likelihood and impact values to produce cost estimates can be challenging and time consuming. Use severity-level assessments as a first pass to make the case for risk mitigation measures and take your lead from stakeholders.

    The image contains two screenshots of the Jurisdictional Risk Register and Heatmap Tool.

    Use the Jurisdictional Risk Register and Heatmap Tool to capture and analyze your data.

    2.2.2 Assess likelihood and impact

    6-10 hours

    1. Assign each risk scenario a likelihood of occurrence and a likely impact level that represents the impact of the scenario on the whole organization considering existing controls. Record your results in Tab 3, column R and S, respectively.
    2. You can further dissect likelihood and impact into component parameters but focus first on total likelihood and impact to keep the task manageable.
    3. As you input the first few likelihood and impact values, compare them to one another to ensure consistency and accuracy. For instance, is a device lost in a high-risk jurisdiction truly more impactful than a device compromised with commercial surveillance software?
    4. The tool will calculate the probability of risk exposure based on the likelihood and consequence associated with the scenario. The results are published in Tab 3, Column T.

    Input

    Output

    • Risk scenarios
    • Assessed the likelihood of occurrence and impact for all identified risk events

    Materials

    Participants

    • Jurisdictional Risk Register and Heatmap Tool
    • Laptop
    • Projector
    • Security team
    • IT leadership
    • Business stakeholders
    • Enterprise Risk Management

    Download the Jurisdictional Risk Register and Heatmap Tool.

    Refine your risk assessment to justify your estimates

    Document the rationale behind each value and the level of consensus in group discussions.

    Stakeholders will likely ask you to explain some of the numbers you assigned to likelihood and impact assessments. Pointing to an assessment methodology will give your estimates greater credibility.

    • Assign one individual to take notes during the assessment exercise.
    • Have them document the main rationale behind each value and the level of consensus.

    The goal is to develop robust intersubjective estimates of the likelihood and impact of a risk scenario.

    We assigned a 50% likelihood rating to a risk scenario. Were we correct?

    Assess the truth of the following statements to test likelihood assessments. In this case, do these two statements seem true?

    • The risk event will likely occur once in the next two years, all things being equal.
    • In two nearly identical organizations, one out of two will experience the risk event this year.
    The image includes a screenshot of the High-Risk Travel Jurisdictions.

    Phase 3

    Execute Response

    This phase will walk you through the following activities:

    • Prioritize and treat global risks to critical assets based on their value and exposure.
    • Build an initiative roadmap that identifies and applies relevant controls to protect critical assets. Identify key risk indicators to monitor progress.

    This phase involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Step 3.1

    Treat Security Risks

    Activities

    3.1.1 Identify and assess risk response

    This step involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Outcomes of this step

    • Prioritize and treat global risks to critical assets based on their value and exposure.

    Analyze and select risk responses

    The next step will help you treat the risk scenarios you built in Phase 2.

    Identify

    Identify risk responses.

    Predict

    Predict the effectiveness of the risk response, if implemented, by estimating the residual likelihood and impact of the risk.

    Calculate

    The tool will calculate the residual severity of the risk after applying the risk response.

    The first part of the phase outlines project activities. The second part elaborates on high-risk travel and compliance risk, the two key risk scenarios we are following throughout the project. Use the Jurisdictional Risk Register and Heatmap Tool to capture your work.

    Analyze likelihood and impact to identify response

    The image contains a diagram of he risk response analysis. Risk Transfer and Risk Avoidance has the most likelihood, and Risk Acceptance and Risk Mitigation have the most impact. Risk Avoidance has the most likelihood and most impact in regards to risk response.

    3.1.1 Identify and assess risk response

    Complete the following steps for each risk scenario.

    1. Identify a risk response action that will help reduce the likelihood of occurrence or the impact if the scenario were to occur. Indicate the type of risk response (avoidance, mitigation, transfer, acceptance, or no risk exists).
    2. Assign each risk response action a residual likelihood level and a residual impact level. This is the same step you performed in Activity 2.2.2, but you are now are estimating the likelihood and impact of the risk event after you implemented the risk response action successfully. The Jurisdictional Risk Register and Heatmap Tool will generate a residual risk severity level for each risk event.
    3. Identify the potential Risk Action Owner (Project Manager) if the response is selected and turned into an IT project, and document this in the Jurisdictional Risk Register and Heatmap Tool .
    4. For each risk event, document risk response actions, residual likelihood and impact levels, and residual risk severity level.

    Input

    Output

    • Risk scenarios from Phase 2
    • Risk scenario mitigation plan

    Materials

    Participants

    • Whiteboard/flip charts
    • Jurisdictional Risk Register and Heatmap Tool
    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Download the Jurisdictional Risk Register and Heatmap Tool

    Step 3.2

    Mitigate Travel Risk

    Activities

    3.2.1 Develop a travel policy

    3.2.2 Develop travel procedures

    3.2.3 Design high-risk travel guidelines

    This step involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Outcomes of this step

    • Prioritize and treat global risks to critical assets based on their value and exposure.

    Identify controls to mitigate jurisdictional risk

    This section provides guidance on the most prevalent risk scenarios identified in Phase 2 and provides a more in-depth examination of the two most prevalent ones, high-risk travel and compliance risk. Determine the appropriate response to each risk scenario to keep global risks to critical assets aligned with the organization’s risk tolerance.

    Key Risk Scenarios

    • High-Risk Travel
    • Compliance Risk
    • Insider Threat
    • Advanced Persistent Threat
    • Commercial Surveillance

    Travel risk is a common concern in organizations with global operations

    • The security of staff, devices, and data is one of the biggest challenges facing organizations with a global footprint. Working and traveling in unpredictable environments will aways carry a degree of risk, but organizations can do much to develop a safer and more secure working environment.
    • Compromised or stolen devices can provide threat actors with access to data that could compromise the organization’s strategic, economic, or competitive advantage or expose the organization to regulatory risk.
    • For many organizations, security risk assessments, security plans, travel security procedures, security training, and incident reporting systems are a key part of their operating language.
    • The following section provides a simple structure to help organizations demystify travel in high-risk jurisdictions.

    The image contains a diagram to present high-risk jurisdictions.

    Before you leave

    • Identify high-risk countries.
    • Enable controls.
    • Limit what you pack.

    During your trip

    • Assume you are monitored.
    • Limit access to systems.
    • Prevent theft.

    When you return

    • Change your password.
    • Restore your devices.

    Case study

    Higher Education: Camosun College

    Interview: Evan Garland

    Frame additional security controls as a value-added service.

    Situation

    The director of the international department at Camosun College reached out to IT security for additional support. Department staff often traveled to hostile environments. They were concerned malicious agents would either steal end-user devices or compromise them and access sensitive data. The director asked IT security for options that would better protect traveling staff, their devices, and the information they contain.

    Challenges

    First, controls would need to admit both work and personal use of corporate devices. Staff relied exclusively on work devices for travel to mitigate the risk of personal device theft. Personal use of corporate devices during travel was common. Second, controls needed to strike the right balance between friction and effortless access. Traveling staff had only intermittent access to IT support. Restrictive controls could prevent them from accessing their devices and data altogether.

    Solution

    IT consulted staff to discuss light-touch solutions that would secure devices without introducing too much complexity or compromising functionality. They then planned security controls that involved user interaction and others that did not and identified training requirements.

    Results

    Controls with user interaction

    Controls without user interaction

    • Multifactor authentication for college systems and collaboration platforms
    • Password manager for both work and personal use for staff for stronger passwords and practices
    • Security awareness training to help traveling staff identify potential threats while traveling through airports or accessing public Wi-Fi.
    • Drive encryption and always-on VPN to protect data at rest and in transit
    • Increased setting for phishing and spam filtering for traveling staff email
    • Enhanced anti-malware/endpoint detection and response (EDR) solution for traveling laptops

    Build a program to mitigate travel risks

    There is no one-size-fits-all solution.

    The most effective solution will take advantage of existing risk management policies, processes, and procedures at your organization.

    • Develop a framework. Outline the organization’s approach to high-risk travel, including the policies, procedures, and mechanisms put in place to ensure safe travel to high-risk jurisdictions.
    • Draft a policy. Outline the organization’s risk attitude and key security principles and define roles and responsibilities. Include security responsibilities and obligations in job descriptions of staff members and senior managers.
    • Provide flexible options. Inherent travel risk will vary from one jurisdiction to another. You will likely not find an approach that works for every case. Establish locally relevant measures and plans in different security contexts and risk environments.
    • Look for quick wins. Identify measures or requirements that you can establish quickly but that can have a positive effect on the security of staff, data, and devices.
    • Monitor and review. Undertake periodic reviews of the organization’s security approach and management framework, as well as their implementation, to ensure the framework remains effective.

    3.2.1 Develop a travel policy

    1. Work with your business leaders to build a travel policy for high-risk jurisdictions. The policy should be a short and accessible document structured around four key sections:
      • A statement on the importance of staff security and safety, the scope of the policy, and who it applies to (staff, consultants, contractors, volunteers, visitors, accompanying dependants, etc.).
      • A principles section explaining the organization’s security culture, risk attitude, and the key principles that shape the organization’s approach to staff security and safety.
      • A responsibilities section setting out the organization’s security risk management structure and the roles and actions allocated to specific positions.
      • A minimal security requirements section establishing the specific security requirements that must be in place in all locations and specific locations.
    2. Common security principles include:
    • Shared responsibility – Managing risks to staff is a shared organizational responsibility.
    • Acknowledgment of risk – Managing security will not remove all risks. Staff need to appreciate, as part of their informed consent, that they are still exposed to risk.
    • Primacy of life – Staff safety is of the highest importance. Staff should never place themselves at excessive risk to meet program objectives or protect property.
    • Proportionate risk – Risks must be assessed to ensure they are proportionate to the benefits organizational activities provide and the ability to manage those risks.
    • Right to withdraw – Staff have the right to withdraw from or refuse to take up work in a particular area due to security concerns.
    • No right to remain – The organization has the right to suspend activities that it considers too dangerous.
  • Cross-reference the organization’s other governing policies that outline requirements related to security risk management, such as the health and safety policy, access control policy, and acceptable use of security assets.
  • Input

    Output

    • List of high-risk jurisdictions
    • Risk scenarios from Phase 2
    • Data inventory and data flows
    • Travel policy for high-risk jurisdictions

    Materials

    Participants

    • Whiteboard/flip charts
    • Jurisdictional Risk Register and Heatmap Tool
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Develop security plans for high-risk travel

    Security plans advise staff on how to manage the risk identified in assessments.

    Security plans are key country documents that outline the security measures and procedures in place and the responsibilities and resources required to implement them. Security plans should be established in high-risk jurisdictions where your organization has a regular, significant presence. Security plans must remain relevant and accessible documents that address the specific risks that exist in that location, and, if appropriate, are specific about where the measures apply and who they apply to. Plans should be updated regularly, especially following significant incidents or changes in the operating environment or activities.

    Key Components

    Critical information – One-page summary of pertinent information for easy access and quick reference (e.g. curfew times, no-go areas, important contacts).

    Overview – Purpose and scope of the document, responsibilities for security plan, organization’s risk attitude, date of completion and review date, and a summary of the security strategy and policy.

    Current Context – Summary of current operating context and overall security situation; main risks to staff, assets, and operations; and existing threats and risk rating.

    Procedures – Simple security procedures that staff should adhere to in order to prevent incidents and how to respond should problems arise. Standard operating procedures (SOPs) should address key risks identified in the assessment.

    Security levels – The organization's security levels/phases, with situational indicators that reflect increasing risks to staff in that context and location and specific actions/measures required in response to increasing insecurity.

    Incident reporting – The procedures and responsibilities for reporting security-related incidents; for example, the type of incidents to be reported, the reporting structure, and the format for incident reporting.

    Determine travel risk

    Tailor your risk response to the security risk assessment you conducted in earlier stages of this project.

    Ratings are formulated by assessing several types of risk, including conflict, political/civil unrest, terrorism, crime, and health and infrastructure risks.

    Rating

    Description (Examples)

    Recommended Action

    Low

    Generally secure with adequate physical security. Low violent crime rates. Some civil unrest during significant events. Acts of terrorism rare. Risks associated with natural disasters limited and health threats mainly preventable.

    Basic personal security, travel, and health precautions required.

    Moderate

    Periodic civil unrest. Antigovernment, insurgent, or extremist groups active with sporadic acts of terrorism. Staff at risk from common and violent crime. Transport and communications services are unreliable and safety records are poor. Jurisdiction prone to natural disasters or disease epidemics.

    Increased vigilance and routine security procedures required.

    High

    Regular periods of civil unrest, which may target foreigners. Antigovernment, insurgent, or extremist groups very active and threaten political or economic stability. Violent crime rates high and targeting of foreigners is common. Infrastructure and emergency services poor. May be regular disruption to transportation or communications services. Certain areas off-limits to foreigners. Jurisdictions experiencing a natural disaster or a disease epidemic are considered high risk.

    High level of vigilance and effective, context-specific security precautions required.

    Extreme

    Undergoing active conflict or persistent civil unrest. Risk of being caught up in a violent incident or attack is very high. Civil authorities may have lost control of significant portions of the country. Lines between criminality and political and insurgent violence are blurred. Foreigners are likely to be denied access to significant parts of the country. Transportation and communication services are severely degraded or non-existent. Violence presents a direct threat to staff security.

    Stringent security precautions essential and may not be sufficient to prevent serious incidents.

    Program activities may be suspended and staff withdrawn at very short notice.

    3.2.2 Develop travel procedures

    1. Work with your business leaders to build travel procedures for high-risk jurisdictions. The procedures should be tailored to the risk assessment and address the risk scenarios identified in Phase 2.
    2. Use the categories outlined in the next two slides to structure the procedure. Address all types of travel, detail security measures, and outline what the organization expects of travelers before, during, and after their trip.
    3. Consider the implementation of special measures to limit the impact of a potential security event, including:
      • Information end-user device loaner programs.
      • Temporary travel service email accounts.
    4. Specify what happens when staff add personal travel to their work trip to cover issues such as insurance, check-in, actual travel times, etc.
    5. Discuss the rationale for each procedure. Ensure the components align with the policy statements outlined in the high-risk travel policy developed in the previous step.

    Input

    Output

    • List of high-risk jurisdictions
    • Risk scenarios from Phase 2
    • High-risk travel policy
    • Travel procedures for high-risk jurisdictions

    Materials

    Participants

    • Whiteboard/flip charts
    • Jurisdictional Risk Register and Heatmap Tool
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Draft procedures to mitigate travel risks

    Address all types of travel, detail security measures, and outline what the organization expects of travelers before, during, and after their trip

    Introduction

    Clarifies who the procedures apply to. Highlights any differences in travel security requirements or support provided to staff, consultants, partners, and official visitors.

    Travel risk ratings

    Explains the travel or country risk rating system, how staff access the information, the different categories and indicators, and their implications.

    Roles and responsibilities

    Clarifies the responsibilities of travelers, their line managers or contact points, and senior management regarding travel security and how this changes for destinations with higher risk ratings.

    Travel authorization

    Stipulates who in the organization authorizes travel, the various compliance measures required, and how this changes for destinations with higher risk ratings.

    Travel risk assessment

    Explains when travel risk assessments are required, the template that should be used, and who approves the completed assessments.

    Travel security procedures should specify what happens when staff add personal travel to their work trip to cover issues such as insurance, check-in, actual travel times, etc.

    Pre-travel briefings

    Outlines the information that must be provided to travelers prior to departure, the type of briefing required and who provides it, and how these requirements change as risk ratings increase.

    Security training

    Explain security training required prior to travel. This may vary depending on the country’s risk rating. Includes information on training waiver system, including justifications and authorization.

    Traveler profile forms

    Travelers should complete a profile form, which includes personal details, emergency contacts, medical details, social media footprint, and proof-of-life questions (in contexts where there are abduction risks).

    Check-in protocol

    Specifies who travelers must maintain contact with while traveling and how often, as well as the escalation process in case of loss of contact. The frequency of check-ins should reflect the increase in the risk rating for the destination.

    Emergency procedures

    Outlines the organization's emergency procedures for security and medical emergencies.

    3.2.3 Design high-risk travel guidelines

    • Supplement the high-risk travel policies and procedures with guidelines to help international travelers stay safe.
    • The document is intended for an end-user audience and should reflect your organization’s policies and procedures for the use of information and information systems during international travel.
    • Use the Digital Safety Guidelines for International Travel template in concert with this blueprint to provide guidance on what end users can do to stay safe before they leave, during their trip, and when they return.
    • Consider integrating the guidelines into specialized security awareness training sessions that target end users who travel to high-risk jurisdictions.
    • The guidelines should supplement and align with existing technical controls.

    Input

    Output

    • List of high-risk jurisdictions
    • Risk scenarios from Phase 2
    • High-risk travel policy
    • High-risk travel procedure
    • Travel guidelines for high-risk jurisdictions

    Materials

    Participants

    • Whiteboard/flip charts
    • Jurisdictional Risk Register and Heatmap Tool
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Download the Digital Safety Guidelines for International Travel template

    Step 3.3

    Mitigate Compliance Risk

    Activities

    3.3.1 Identify data localization obligations

    3.3.2 Integrate obligations into IT system design

    3.3.3 Document data processing activities

    3.3.4 Choose the right mechanism

    3.3.5 Implement the appropriate controls

    3.3.6 Identify data breach notification obligations

    3.3.7 Integrate data breach notification into incident response

    3.3.8 Identify vendor security and data protection requirements

    3.3.9 Build due diligence questionnaire

    3.3.10 Build appropriate data processing agreement

    This step involves the following participants:

    • Security team
    • Risk and Compliance
    • IT leadership (optional)

    Outcomes of this step

    • Prioritize and treat global risks to critical assets based on their value and exposure.

    Compliance risk is a prevalent risk in organizations with a global footprint

    • The legal and regulatory landscape is evolving rapidly to keep step with the pace of technological change. Security and privacy leaders are expected to mitigate the risk of noncompliance as the organization expands to new jurisdictions.
    • Organizations with a global footprint must stay abreast of local regulations and provide risk management guidance to business leaders to support global operations.
    • This sections describes four compliance risks in this context:
      • Cross-border data transfer
      • Third-party risk management
      • Data breach notification
      • Data residency

    Compliance with local obligations

    Likelihood: Medium to High

    Impact: High

    Data Residency

    Gap Controls

    • Identify and document the data localization obligations for the jurisdictions that the organization is operating in.
    • Design and implement IT systems that satisfy the data localization requirements.
    • Comply with data localization obligations within each jurisdiction.

    Heatmap of Global Data Residency Regulations

    The image contains a screenshot of a picture of a world map with various shades of blue to demonstrate the heatmap of global data residency regulations.
    Source: InCountry, 2021

    Examples of Data Residency Requirements

    Country

    Data Type

    Local Storage Requirements

    Australia

    Personal data – heath record

    My Health Records Act 2012

    China

    Personal information — critical information infrastructure operators

    Cybersecurity law

    Government cloud data

    Opinions of the Office of the Central Leading Group for Cyberspace Affairs on Strengthening Cybersecurity Administration of Cloud Computing Services for Communist Party and Government Agencies

    India

    Government email data

    The Public Records Act of 1993

    Indonesia

    Data held by electronic system operator for the public service

    Regulation 82 concerning “Electronic System and Transaction Operation”

    Germany

    Government cloud service data

    Criteria for the procurement and use of cloud services by the federal German administration

    Russia

    Personal data

    The amendments of Data Protection Act No. 152 FZ

    Vietnam

    Data held by internet service providers

    The Decree on Management, Provision, and Use of Internet Services and Information Content Online (Decree 72)

    US

    Government cloud service data

    Defense Federal Acquisition Regulation Supplement: Network Penetration Reporting and Contracting for Cloud Services (DFARS Case 2013-D018)

    3.3.1 Identify data localization obligations

    1-2 hours

    1. Work with your business leaders to identify and document the jurisdictions where your organization is operating in or providing services and products to consumers within.
    2. Work with your legal team to identify and document all relevant data localization obligations for the data your organization generates, collects, and processes in order to operate your business.
    3. Record your data localization obligations in the table below.

    Jurisdiction

    Relevant Regulations

    Local Storage Requirements

    Date Type

    Input

    Output

    • List of jurisdictions your organization is operating in
    • Relevant security and data protection regulations
    • Data inventory and data flows
    • Completed list of data localization obligations

    Materials

    Participants

    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Privacy team
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    3.3.2 Integrate obligations into your IT system design

    1-2 hours

    1. Work with your IT department to design the IT architecture and systems to satisfy the data localization requirements.
    2. The table below provides a checklist for integrating privacy considerations into your IT systems.

    Item

    Consideration

    Answer

    Supporting Document

    1

    Have you identified business services that process data that will be subject to localization requirements?

    2

    Have you identified IT systems associated with the business services mentioned above?

    3

    Have you established a data inventory (i.e. data types, business purposes) for the IT systems mentioned above?

    4

    Have you established a data flow diagram for the data identified above?

    5

    Have you identified the types of data that should be stored locally?

    6

    Have you confirmed whether a copy of the data locally stored will satisfy the obligations?

    7

    Have you confirmed whether an IT redesign is needed or whether modifications (e.g. adding a server) to the IT systems would satisfy the obligations?

    8

    Have you confirmed whether access from another jurisdiction is allowed?

    9

    Have you identified how long the data should be stored?

    Input

    Output

    • Data localization obligations
    • Business services that process data that will be subject to localization requirements
    • IT systems associated with business services
    • Data inventory and data flows
    • Completed checklist of localization obligations for IT system design

    Materials

    Participants

    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Privacy team
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    Compliance with local obligations

    Likelihood: Medium to High

    Impact: High

    Cross-Border Transfer

    Gap Controls

    • Know where you transfer your data.
    • Identify jurisdictions that your organization is operating in and that impose different requirements for the cross-border transfer of personal data.
    • Adopt and implement a proper cross-border data transfer mechanism in accordance with applicable privacy laws and regulations.
    • Re-evaluate at appropriate intervals.

    Which cross-border transfer mechanism should I choose?

    Transfer Mechanism

    Advantages

    Disadvantages

    Standard Contractual Clauses (SCC)

    • Easy to implement
    • No DPA (data processing agreement) approval
    • Not suitable for complex data transfers
    • Do not meet business agility
    • Needs legal solution

    Binding Corporate Rules (BCRs)

    • Meets business agility needs
    • Raises trust in the organization
    • Doubles as solution for art. 24/25 of the GDPR
    • Sets high compliance maturity level
    • Takes time to draft/implement
    • Requires DPA approval (scrutiny)
    • Requires culture of compliance
    • Approved by one "lead" authority and two other "co-lead“ authorities
    • Takes usually between six and nine months for the approval process only

    Code of Conduct

    • Raises trust in the sector
    • Self-regulation instead of law
    • No code of conduct approved yet
    • Takes time to draft/implement
    • Requires DPA approval and culture of compliance
    • Needs of organization may not be met

    Certification

    • Raises trust in the organization
    • No certification schemes available yet
    • Risk of compliance at minimum necessary
    • Requires audits

    Consent

    • Legal certainty
    • Transparent
    • Administrative burden
    • Some data subjects are incapable of consenting all or nothing

    3.3.3 Document data processing activities

    1-2 hours

    1. Identify and document the following information:
      • Name of business process
      • Purposes of processing
      • Lawful basis
      • Categories of data subjects and personal data
      • Data subject categories
      • Which system the data resides in
      • Recipient categories
      • Third country/international organization
      • Documents for appropriate safeguards for international transfer (adequacy, SCCs, BCRs, etc.)
      • Description of mitigating measures

    Input

    Output

    • Name of business process
    • Categories of personal data
    • Which system the data resides
    • Third country/international organization
    • Documents for appropriate safeguards for international transfer
    • Completed list of data processing activities

    Materials

    Participants

    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Privacy team
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    3.3.4 Choose the right mechanism

    1-2 hours

    1. Identify jurisdictions that your organization is operating in and that impose different requirements for the cross-border transfer of personal data. For example, the EU’s GDPR and China’s Personal Information Protection Law require proper cross-border transfer mechanisms before the data transfers. Your organization should decide which cross-border transfer mechanism is the best fit for your cross-border data transfer scenarios.
    2. Use the following table to identify and document the pros and cons of each data transfer mechanism and the final decision.

    Data Transfer Mechanism

    Pros

    Cons

    Final Decision

    SCC

    BCR

    Code of Conduct

    Certification

    Consent

    Input

    Output

    • List of relevant data transfer mechanisms
    • Assessment of the pros and cons of each mechanism
    • Final decision regarding which data transfer mechanism is the best fit for your organization

    Materials

    Participants

    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Privacy team
    • Security team
    • Legal team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    3.3.5 Implement the appropriate controls

    1-3 hours

    • One of the most common mechanisms is standard contractual clauses (SCCs).
    • Use Info-Tech’s Standard Contractual Clauses Template to facilitate your cross-border transfer activities.
    • Identify and check whether the following core components are covered in your SCC and record the results in the table below.
    # Core Components Status Note
    1 Purpose and scope
    2 Effect and invariability of the Clauses
    3 Description of the transfer(s)
    4 Data protection safeguards
    5 Purpose limitation
    6 Transparency
    7 Accuracy and data minimization
    8 Duration of processing and erasure or return of data
    9 Storage limitation
    10 Security of processing
    11 Sensitive data
    12 Onward transfers
    13 Processing under the authority of the data importer
    14 Documentation and compliance
    15 Use of subprocessors
    16 Data subject rights
    17 Redress
    18 Liability
    19 Local laws and practices affecting compliance with the Clauses
    20 Noncompliance with the Clauses and termination
    21 Description of data processing activities, such as list of parties, description of transfer, etc.
    22 Technical and organizational measures
    InputOutput
    • Description of the transfer(s)
    • Duration of processing and erasure or return of data
    • Onward transfers
    • Use of subprocessors
    • Etc.
    • Draft of the standard contractual clauses (SCC)
    MaterialsParticipants
    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Legal team
    • Privacy team
    • Security team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    Compliance with local obligations

    Likelihood: High

    Impact: Medium to High

    Data Breach

    Gap Controls

    • Identify jurisdictions that your organization is operating in and that impose different obligations for data breach reporting.
    • Document the notification obligations for various business scenarios, such as controller to DPA, controller to data subject, and processor to controller.
    • Integrate breach notification obligations into security incident response process.

    Examples of Data Breach Notification Obligations

    Location

    Regulation/ Standard

    Reporting Obligation

    EU

    GDPR

    72 hours

    China

    PIPL

    Immediately

    US

    HIPAA

    No later than 60 days

    Canada

    PIPEDA

    As soon as feasible

    Global

    PCI DSS

    • Visa – immediately after breach discovered
    • Mastercard – within 24 hours of discovering breach
    • American Express – immediately after breach discovered

    Summary of US State Data Breach Notification Statutes

    The image contains a graph to show the summary of the US State Data Breach Notification Statutes.

    Source: Davis Wright Tremaine

    3.3.6 Identify data breach notification obligations

    1-2 hours

    1. Identify jurisdictions that your organization is operating in and that impose different obligations for data breach reporting.
    2. Document the notification obligations for various business scenarios, such as controller to DPA, controller to data subject, and processor to controller.
    3. Record your data breach obligations in the table below.
    Region Regulation/Standard Reporting Obligation

    Input

    Output

    • List of regions and jurisdictions your business is operating in
    • List of relevant regulations and standards
    • Documentation of data breach reporting obligations in applicable jurisdictions

    Materials

    Participants

    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Legal team
    • Privacy team
    • Security team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    3.3.7 Integrate data breach notification into incident response

    1-2 hours

    • Integrate breach notification obligations into the security incident response process. Understand the security incident management framework.
    • All incident runbooks follow the same process: detection, analysis, containment, eradication, recovery, and post-incident activity.
    • The table below provides a basic checklist for you to consider when implementing your data breach and incident handling process.
    # Phase Considerations Status Notes
    1 Prepare Ensure the appropriate resources are available to best handle an incident.
    2 Detect Leverage monitoring controls to actively detect threats.
    3 Analyze Distill real events from false positives.
    4 Contain Isolate the threat before it can cause additional damage.
    5 Eradicate Eliminate the threat from your operating environment.
    6 Recover Restore impacted systems to a normal state of operations.
    7 Report Report data breaches to relevant regulators and data subjects if required.
    8 Post-Incident Activities Conduct a lessons-learned post-mortem analysis.
    InputOutput
    • Security and data protection incident response steps
    • Key considerations for integrating data breach notifications into incident response
    • Data breach notifications integrated into the incident response process
    MaterialsParticipants
    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Security team
    • Privacy team
    • Legal team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    Compliance with local obligations

    Likelihood: High

    Impact: Medium to High

    Third-Party Risk

    Gap Controls

    • Build an end-to-end third-party security and privacy risk management process.
    • Perform internal due diligence prior to selecting a service provider.
    • Stipulate the security and privacy protection obligations of the third party in a legally binding document such as contract or data processing agreement, etc.

    End-to-End Third-Party Security and Privacy Risk Management

    1. Pre-Contract
    • Due diligence check
  • Signing of Contract
    • Data processing agreement
  • Post-Contract
    • Continuous monitoring
    • Regular check or audit
  • Termination of Contract
    • Data deletion
    • Access deprovisioning

    Examples of Vendor Security Management Requirements

    Region

    Law/Standard

    Section

    EU

    General Data Protection Regulation (GDPR)

    Article 28 (1)

    Article 46 (1)

    US

    Health Insurance Portability and Accountability Act (HIPAA)

    §164.308(b)(1)

    US

    New York Department of Financial Services Cybersecurity Requirements

    500.11(a)

    Global

    ISO 27002:2013

    15.1.1

    15.1.2

    15.1.3

    15.2.1

    15.2.2

    US

    NIST 800-53

    SA-12

    SA-12 (2)

    US

    NIST Cybersecurity Framework

    ID-SC-1

    ID-SC-2

    ID-SC-3

    ID-SC-4

    Canada

    OSFI Cybersecurity Guidelines

    4.25

    4.26

    3.3.8 Identify vendor security and data protection requirements

    1-2 hours

    • Effective vendor security risk management is an end-to-end process that includes assessment, risk mitigation, and periodic reassessments.
    • An efficient and effective assessment process can only be achieved when all stakeholders are participating.
    • Identify and document your vendor security and data protection requirements in the table below.
    Region Law/Standard Section Requirements

    Input

    Output

    • List of regions and jurisdictions your business is operating in
    • List of relevant regulations and standards
    • Documentation of vendor security and data protection obligations in applicable jurisdictions

    Materials

    Participants

    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Legal team
    • Privacy team
    • Security team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    3.3.9 Build due diligence questionnaire

    1-2 hours

    Perform internal due diligence prior to selecting a service provider.

    1. Build and right-size your vendor security questionnaire by leveraging Info-Tech’s Vendor Security Questionnaire template.
    2. Document your vendor security questionnaire in the table below.
    # Question Vendor Request Vendor Comments
    1 Document Requests
    2 Asset Management
    3 Governance
    4 Supply Chain Risk Management
    5 Identify Management, Authentication, and Access Control
    InputOutput
    • List of regions and jurisdictions your business is operating in
    • List of relevant regulations and standards
    • Business security and data protection requirements and expectations
    • Draft of due diligence questionnaire
    MaterialsParticipants
    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Legal team
    • Privacy team
    • Security team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    3.3.10 Build appropriate data processing agreement

    1-2 hours

    1. Stipulate the security and privacy protection obligations of the third party in a legally binding document such as contract or data processing agreement, etc.
    2. Leverage Info-Tech’s Data Processing Agreement Template to put the language into your legally binding document.
    3. Use the table below to check whether core components of a typical DPA are covered in your document.
    # Core Components Status Note
    1 Processing of personal data
    2 Scope of application and responsibilities
    3 Processor's obligations
    4

    Controller's obligations

    5 Data subject requests
    6 Right to audit and inspection
    7 Subprocessing
    8 Data breach management
    9 Security controls
    10 Transfer of personal data
    11 Duty of confidentiality
    12 Compliance with applicable laws
    13 Service termination
    14 Liability and damages
    InputOutput
    • Processing of personal data
    • Processor’s obligations
    • Controller’s obligations
    • Subprocessing
    • Etc.
    • Draft of data processing agreement (DPA)
    MaterialsParticipants
    • Guidelines for Compliance With Local Security and Privacy Laws Template
    • Legal team
    • Privacy team
    • Security team
    • IT leadership
    • Risk Management

    Download the Guidelines for Compliance With Local Security and Privacy Laws Template

    Summary of Accomplishment

    Problem Solved

    By following Info-Tech’s methodology for securing global operations, you have:

    • Evaluated the security context of your organization’s global operations.
    • Identified security risks scenarios unique to high-risk jurisdictions and assessed the exposure of critical assets.
    • Planned and executed a response.

    You have gone through a deeper analysis of two key risk scenarios that affect global operations:

    • Travel to high-risk jurisdictions.
    • Compliance risk.

    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.

    workshop@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.

    The image contains a picture of Michel Hebert.

    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:

    The image contains a screenshot of High-Risk Travel Jurisdictions.

    Identify High-Risk Jurisdictions

    Develop requirements to identify high-risk jurisdictions.

    The image contains a screenshot of Build Risk Scenarios.

    Build Risk Scenarios

    Build risk scenarios to capture assets, vulnerabilities, threats, and the potential effect of a compromise.

    External Research Contributors

    Ken Muir

    CISO

    LMC Security

    Premchand Kurup

    CEO

    Paramount Computer Systems

    Preeti Dhawan

    Manager, Security Governance

    Payments Canada

    Scott Wiggins

    Information Risk and Governance

    CDPHP

    Fritz Y. Jean Louis

    CISO

    Globe and Mail

    Eric Gervais

    CIO

    Ovivo Water

    David Morrish

    CEO

    MBS Techservices

    Evan Garland

    Manager, IT Security

    Camosun College

    Jacopo Fumagalli

    CISO

    Axpo

    Dennis Leon

    Governance and Security Manager

    CPA Canada

    Tero Lehtinen

    CIO

    Planmeca Oy

    Related Info-Tech Research

    Build an IT Risk Management Program

    • Build a program to identify, evaluate, assess, and treat IT risks.
    • Monitor and communicate risks effectively to support business decision making.

    Combine Security Risk Management Components Into One Program

    • Develop a program focused on assessing and managing information system risks.
    • Build a governance structure that integrates security risks within the organization’s broader approach to risk management.

    Build an Information Security Strategy

    • Build a holistic, risk-aware strategy that aligns to business goals.
    • Develop a roadmap of prioritized initiatives to implement the strategy over 18 to 36 months.

    Bibliography

    2022 Cost of Insider Threats Global Report.” Ponemon Institute, NOVIPRO, 9 Feb. 2022. Accessed 25 May 22.

    “Allianz Risk Barometer 2022.” Allianz Global Corporate & Specialty, Jan. 2022. Accessed 25 May 22.

    Bickley, Shaun. “Security Risk Management: a basic guide for smaller NGOs”. European Interagency Security Forum (EISF), 2017. Web.

    “Biden Administration Warns against spyware targeting dissidents.” New York Times, 7 Jan 22. Accessed 20 Jan 2022.

    Boehm, Jim, et al. “The risk-based approach to cybersecurity.” McKinsey & Company, October 2019. Web.

    “Cost of a Data Breach Report 2021.” IBM Security, July 2021. Web.

    “Cyber Risk in Asia-Pacific: The Case for Greater Transparency.” Marsh & McLennan Companies, 2017. Web.

    “Cyber Risk Index.” NordVPN, 2020. Accessed 25 May 22

    Dawson, Maurice. “Applying a holistic cybersecurity framework for global IT organizations.” Business Information Review, vol. 35, no. 2, 2018, pp. 60-67.

    “Framework for improving critical infrastructure cybersecurity.” National Institute of Standards and Technology, 16 Apr 2018. Web.

    “Global Cybersecurity Index 2020.” International Telecommunication Union (ITU), 2021. Accessed 25 May 22.

    “Global Risk Survey 2022.” Control Risks, 2022. Accessed 25 May 22.

    “International Travel Guidance for Government Mobile Devices.” Federal Mobility Group (FMG), Aug. 2021. Accessed 18 Nov 2021.

    Kaffenberger, Lincoln, and Emanuel Kopp. “Cyber Risk Scenarios, the Financial System, and Systemic Risk Assessment.” Carnegie Endowment for International Peace, September 2019. Accessed 11 Jan 2022.

    Koehler, Thomas R. Understanding Cyber Risk. Routledge, 2018.

    Owens, Brian. “Cybersecurity for the travelling scientist.” Nature, vol. 548, 3 Aug 2017. Accessed 19 Jan. 2022.

    Parsons, Fintan J., et al. “Cybersecurity risks and recommendations for international travellers.” Journal of Travel Medicine, vol. 1, no. 4, 2021. Accessed 19 Jan 2022.

    Quinn, Stephen, et al. “Identifying and estimating cybersecurity risk for enterprise risk management.” National Institute of Standards and Technology (NIST), Interagency or Internal Report (IR) 8286A, Nov. 2021.

    Quinn, Stephen, et al. “Prioritizing cybersecurity risk for enterprise risk management.” NIST, IR 8286B, Sept. 2021.

    “Remaining cyber safe while travelling security recommendations.” Government of Canada, 27 April 2022. Accessed 31 Jan 2022.

    Stine, Kevin, et al. “Integrating cybersecurity and enterprise risk management.” NIST, IR 8286, Oct. 2020.

    Tammineedi, Rama. “Integrating KRIs and KPIs for effective technology risk management.” ISACA Journal, vol. 4, 1 July 2018.

    Tikk, Eneken, and Mika Kerttunen, editors. Routledge Handbook of International Cybersecurity. Routledge, 2020.

    Voo, Julia, et al. “National Cyber Power Index 2020.” Belfer Center for Science and International Affairs, Harvard Kennedy School, Sept. 2020. Web.

    Zhang, Fang. “Navigating cybersecurity risks in international trade.” Harvard Business Review, Dec 2021. Accessed 31 Jan 22.

    Appendix

    Insider Threat

    Key Risk Scenario

    Likelihood: Medium to High

    Impact: High

    Gap Controls

    The image contains a picture of the Gap Controls. The controls include: Policy and Awareness, Identification, Monitoring and Visibility, which leads to Cooperation.

    • Identification: Effective and efficient management of insider threats begins with a threat and risk assessment to establish which assets and which employees to consider, especially in jurisdictions associated with sensitive or critical data. You need to pay extra attention to employees who are working in satellite offices in jurisdictions with loose security and privacy laws.
    • Monitoring and Visibility: Organizations should monitor critical assets and groups with privileged access to defend against malicious behavior. Implement an insider threat management platform that provides your organization with the visibility and context into data movement, especially cross-border transfers that might cause security and privacy breaches.
    • Policy and Awareness Training: Insider threats will persist without appropriate action and culture change. Training and consistent communication of best practices will mitigate vulnerabilities to accidental or negligent attacks. Customized training materials using local languages and role-based case studies might be needed for employees in high-risk jurisdictions.
    • Cooperation: An effective insider threat management program should be built with cross-team functions such as Security, IT, Compliance and Legal, etc.

    For more holistic approach, you can leverage our Reduce and Manage Your Organization’s Insider Threat Risk blueprint.

    Info-Tech Insight

    You can’t just throw tools at a human problem. While organizations should monitor critical assets and groups with privileged access to defend against malicious behavior, good management and supervision can help detect attacks and prevent them from happening in the first place.

    Insider threats are not industry specific, but malicious insiders are

    Industry

    Actors

    Risks

    Tactics

    Motives

    State and Local Government

    • Full-time employees
    • Current employees
    • Privileged access to personally identifiable information, financial assets, and physical property
    • Abuse of privileged access
    • Received or transferred fraudulent funds
    • Financial gain
    • Recognition
    • Benefiting foreign entity

    Information Technology

    • Equal mix of former and current employees
    • Privileged access to networks or systems as well as data
    • Highly technical attacks
    • Received or transferred fraudulent funds
    • Revenge
    • Financial gain

    Healthcare

    • Majority were full-time and current employees
    • Privileged access to customer data with personally identifiable information, financial assets
    • Abuse of privileged access
    • Received or transferred fraudulent funds
    • Financial gain
    • Entitlement

    Finance and Insurance

    • Majority were full-time and current employees
    • Authorized users
    • Electronic financial assets
    • Privileged access to customer data
    • Created or used fraudulent accounts
    • Fraudulent purchases
    • Identity theft
    • Financial gain
    • Gambling addiction
    • Family pressures
    • Multiple motivations

    Source: Carnegie Mellon University Software Engineering Institute, 2019

    Advanced Persistent Threat

    Key Risk Scenario #4

    Likelihood: Medium to High

    Impact: High

    Gap Controls

    The image contains a screenshot of the Gap Controls listed: Prevent, Detect, Analyze, Respond.

    Prevent: Defense in depth is the best approach to protect against unknown and unpredictable attacks. Effective anti-malware, diligent patching and vulnerability management, and strong human-centric security are essential.

    Detect: There are two types of companies – those who have been breached and know it, and those who have been breached and don’t know it. Ensure that monitoring, logging, and event detection tools are in place and appropriate to your organizational needs.

    Analyze: Raw data without interpretation cannot improve security and is a waste of time, money, and effort. Establish a tiered operational process that not only enriches data but also provides visibility into your threat landscape.

    Respond: Organizations can’t rely on ad hoc response anymore – don’t wait until a state of panic. Formalize your response processes in a detailed incident runbook to reduce incident remediation time and effort.

    Best practices moving forward

    Defense in Depth

    Lock down your organization. Among other tactics, control administrative privileges, leverage threat intelligence, use IP whitelisting, adopt endpoint protection and two-factor authentication, and formalize incident response measures.

    Block Indicators

    Information alone is not actionable. A successful threat intelligence program contextualizes threat data, aligns intelligence with business objectives, and then builds processes to satisfy those objectives. Actively block indicators and act upon gathered intelligence.

    Drive Adoption

    Create organizational situational awareness around security initiatives to drive adoption of foundational security measures: network hardening, threat intelligence, red-teaming exercises, and zero-day mitigation, policies, and procedures.

    Supply Chain Security

    Security extends beyond your organization. Ensure your organization has a comprehensive view of your organizational threat landscape and a clear understanding of the security posture of any managed service providers in your supply chain.

    Awareness and Training

    Conduct security awareness and training. Teach end users how to recognize current cyberattacks before they fall victim – this is a mandatory first line of defense.

    Additional Resources

    Follow only official sources of information to help you assess risk

    The image contains an image highlighting a few additional resources.

    As misinformation is a major attack vector for malicious actors, follow only reliable sources for cyberalerts and actionable intelligence. Aggregate information from these reliable sources.

    Federal Cyber Agency Alerts

    Informational Resources

    Info-Tech Insight

    The CISA Shields Up site provides the latest cyber risk updates on the Russia-Ukraine conflict and should provide the most value in staying informed.

    Beyond Survival

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    • Parent Category Name: Big Data
    • Parent Category Link: /big-data
    • Consumer, customer, employee, and partner behavior has changed; new needs have arisen as a result of COVID-19. Entire business models had to be rethought and revised – in real time with no warning.
    • And worse, no one knows when (or even if) the pandemic will end. The world and the economy will continue to be highly uncertain, unpredictable, and vulnerable for some time.
    • Business leaders need to continue experimenting to stay in business, protect employees and supply chains, manage financial obligations, allay consumer and employee fears, rebuild confidence, and protect trust.
    • How do organizations know whether their new business tactics are working?

    Our Advice

    Critical Insight

    • We can learn many lessons from those who have survived and are succeeding.
    • They have one thing in common though – they rely on data and analytics to help people think and know how to respond, evaluate effectiveness of new business tactics, uncover emerging trends to feed innovation, and minimize uncertainty and risk.
    • This mini-blueprint highlights organizations and use cases where data, analytics, and AI deliver tangible business and human value now and in the future.

    Impact and Result

    • Learn from the pandemic survivors and super-achievers so that you too can hit the ground running in the new normal. Even better – go beyond survival, like many of them have done. Create your future by leveraging and scaling up your data and analytics investments. It is not (yet) too late, and Info-Tech can help.

    Beyond Survival Research & Tools

    Beyond Survival

    Use data, analytics, and AI to reimagine the future and thrive in the new normal.

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

    • Beyond Survival Storyboard
    [infographic]

    Craft a Customer-Driven Market Strategy With Unbiased Data

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    • Parent Category Name: Selection & Implementation
    • Parent Category Link: /selection-and-implementation
    • Market strategies are informed by gut feel and endless brainstorming instead of market data to take their product from concept to customer.
    • Hiring independent market research firms results in a lack of unbiased third-party data. Research firms tell vendors what they want to hear instead of offering an agnostic view of software trends.
    • Dissatisfied customers don’t tell you directly why they are leaving, so there is no feedback loop back into product improvements.
    • Often a market strategy is built after a product is developed to force the product’s fit in the market. The product marketing team has no say in the product vision or future improvements.

    Our Advice

    Critical Insight

    • Adopt the 5 P’s to building a winning market strategy: Proposition, Product, Pricing, Placement, and Promotion.
    • You can’t be everything to everyone. Testing your proposition in the market to see what sticks is a risky move. Promise future value using past successes by gaining a deeper understanding of which customers and submarkets truly align to your product.
    • Customers have learned to avoid shiny new objects but still expect rapid feature releases. Differentiating features require a closer look at the underpinning vendor capabilities. Having intentional feature releases requires a feedback loop into the product roadmap and increases influence by the product marketing team.
    • Price transparency and sensitivity should drive what you offer to customers. Negotiating solely on price is a race to the bottom.

    Impact and Result

    • Leverage this report to gain insights on the software selection process and what top vendors do best.
    • Gain a bird’s-eye view on customer purchasing behavior using over 40,000 data points on satisfaction and importance collected directly from the source.
    • Build a winning market strategy influenced by real customer data that drives vendor success.

    Craft a Customer-Driven Market Strategy With Unbiased Data Research & Tools

    Read the storyboard

    Read our storyboard to find out why you should leverage SoftwareReviews data to craft your market strategy, review Info-Tech’s methodology, and understand unbiased customer data on software purchasing triggers.

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

    • Craft a Customer-Driven Market Strategy With Unbiased Data Storyboard
    [infographic]

    Optimize IT Change Management

    • Buy Link or Shortcode: {j2store}409|cart{/j2store}
    • member rating overall impact (scale of 10): 9.5/10 Overall Impact
    • member rating average dollars saved: $33,585 Average $ Saved
    • member rating average days saved: 27 Average Days Saved
    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Infrastructure managers and change managers need to re-evaluate their change management processes due to slow change turnaround time, too many unauthorized changes, too many incidents and outages because of poorly managed changes, or difficulty evaluating and prioritizing changes.
    • IT system owners often resist change management because they see it as slow and bureaucratic.
    • Infrastructure changes are often seen as different from application changes, and two (or more) processes may exist.

    Our Advice

    Critical Insight

    • ITIL provides a usable framework for change management, but full process rigor is not appropriate for every change request.
    • You need to design a process that is flexible enough to meet the demand for change, and strict enough to protect the live environment from change-related incidents.
    • A mature change management process will minimize review and approval activity. Counterintuitively, with experience in implementing changes, risk levels decline to a point where most changes are “pre-approved.”

    Impact and Result

    • Create a unified change management process that reduces risk. The process should be balanced in its approach toward deploying changes while also maintaining throughput of innovation and enhancements.
    • Categorize changes based on an industry-standard risk model with objective measures of impact and likelihood.
    • Establish and empower a change manager and change advisory board with the authority to manage, approve, and prioritize changes.
    • Integrate a configuration management database with the change management process to identify dependencies.

    Optimize IT Change Management Research & Tools

    Start here – read the Executive Brief

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

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

    • Optimize IT Change Management – Phases 1-4

    1. Define change management

    Assess the maturity of your existing change management practice and define the scope of change management for your organization.

    • Change Management Maturity Assessment Tool
    • Change Management Risk Assessment Tool

    2. Establish roles and workflows

    Build your change management team and standardized process workflows for each change type.

    • Change Manager
    • Change Management Process Library – Visio
    • Change Management Process Library – PDF
    • Change Management Standard Operating Procedure

    3. Define the RFC and post-implementation activities

    Bookend your change management practice by standardizing change intake, implementation, and post-implementation activities.

    • Request for Change Form Template
    • Change Management Pre-Implementation Checklist
    • Change Management Post-Implementation Checklist

    4. Measure, manage, and maintain

    Form an implementation plan for the project, including a metrics evaluation, change calendar inputs, communications plan, and roadmap.

    • Change Management Metrics Tool
    • Change Management Communications Plan
    • Change Management Roadmap Tool
    • Optimize IT Change Management Improvement Initiative: Project Summary Template

    [infographic]

    Workshop: Optimize IT Change Management

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

    1 Define Change Management

    The Purpose

    Discuss the existing challenges and maturity of your change management practice.

    Build definitions of change categories and the scope of change management.

    Key Benefits Achieved

    Understand the starting point and scope of change management.

    Understand the context of change request versus other requests such as service requests, projects, and operational tasks.

    Activities

    1.1 Outline strengths and challenges

    1.2 Conduct a maturity assessment

    1.3 Build a categorization scheme

    1.4 Build a risk assessment matrix

    Outputs

    Change Management Maturity Assessment Tool

    Change Management Risk Assessment Tool

    2 Establish Roles and Workflows

    The Purpose

    Define roles and responsibilities for the change management team.

    Develop a standardized change management practice for approved changes, including process workflows.

    Key Benefits Achieved

    Built the team to support your new change management practice.

    Develop a formalized and right-sized change management practice for each change category. This will ensure all changes follow the correct process and core activities to confirm changes are completed successfully.

    Activities

    2.1 Define the change manager role

    2.2 Outline the membership and protocol for the Change Advisory Board (CAB)

    2.3 Build workflows for normal, emergency, and pre-approved changes

    Outputs

    Change Manager Job Description

    Change Management Standard Operating Procedure (SOP)

    Change Management Process Library

    3 Define the RFC and Post-Implementation Activities

    The Purpose

    Create a new change intake process, including a new request for change (RFC) form.

    Develop post-implementation review activities to be completed for every IT change.

    Key Benefits Achieved

    Bookend your change management practice by standardizing change intake, implementation, and post-implementation activities.

    Activities

    3.1 Define the RFC template

    3.2 Determine post-implementation activities

    3.3 Build your change calendar protocol

    Outputs

    Request for Change Form Template

    Change Management Post-Implementation Checklist

    Project Summary Template

    4 Measure, Manage, and Maintain

    The Purpose

    Develop a plan and project roadmap for reaching your target for your change management program maturity.

    Develop a communications plan to ensure the successful adoption of the new program.

    Key Benefits Achieved

    A plan and project roadmap for reaching target change management program maturity.

    A communications plan ready for implementation.

    Activities

    4.1 Identify metrics and reports

    4.2 Build a communications plan

    4.3 Build your implementation roadmap

    Outputs

    Change Management Metrics Tool

    Change Management Communications Plan

    Change Management Roadmap Tool

    Further reading

    Optimize IT Change Management

    Right-size IT change management practice to protect the live environment.

    EXECUTIVE BRIEF

    Analyst Perspective

    Balance risk and efficiency to optimize IT change management.

    Change management (change enablement, change control) is a balance of efficiency and risk. That is, pushing changes out in a timely manner while minimizing the risk of deployment. On the one hand, organizations can attempt to avoid all risk and drown the process in rubber stamps, red tape, and bureaucracy. On the other hand, organizations can ignore process and push out changes as quickly as possible, which will likely lead to change related incidents and debilitating outages.

    Right-sizing the process does not mean adopting every recommendation from best-practice frameworks. It means balancing the efficiency of change request fulfillment with minimizing risk to your organization. Furthermore, creating a process that encourages adherence is key to avoid change implementers from skirting your process altogether.

    Benedict Chang, Research Analyst, Infrastructure and Operations, Info-Tech Research Group

    Executive Summary

    Your Challenge

    Infrastructure and application change occurs constantly and is driven by changing business needs, requests for new functionality, operational releases and patches, and resolution of incidents or problems detected by the service desk.

    IT managers need to follow a standard change management process to ensure that rogue changes are never deployed while the organization remains responsive to demand.

    Common Obstacles

    IT system owners often resist change management because they see it as slow and bureaucratic.

    At the same time, an increasingly interlinked technical environment may cause issues to appear in unexpected places. Configuration management systems are often not kept up-to-date and do not catch the potential linkages.

    Infrastructure changes are often seen as “different” from application changes and two (or more) processes may exist.

    Info-Tech’s Approach

    Info-Tech’s approach will help you:

    • Create a unified change management practice that balances risk and throughput of innovation.
    • Categorize changes based on an industry-standard risk model with objective measures of impact and likelihood.
    • Establish and empower a Change Manager and Change Advisory Board (CAB) with the authority to manage, approve, and prioritize changes.

    Balance Risk and Efficiency to Optimize IT Change Management

    Two goals of change management are to protect the live environment and deploying changes in a timely manner. These two may seem to sometimes be at odds against each other, but assessing risk at multiple points of a change’s lifecycle can help you achieve both.

    Your challenge

    This research is designed to help organizations who need to:

    • Build a right-sized change management practice that encourages adherence and balances efficiency and risk.
    • Integrate the change management practice with project management, service desk processes, configuration management, and other areas of IT and the business.
    • Communicate the benefits and impact of change management to all the stakeholders affected by the process.

    Change management is heavily reliant on organizational culture

    Having a right-sized process is not enough. You need to build and communicate the process to gather adherence. The process is useless if stakeholders are not aware of it or do not follow it.

    Increase the Effectiveness of Change Management in Your Organization

    The image is a bar graph, with the segments labelled 1 and 2. The y-axis lists numbers 1-10. Segment 1 is at 6.2, and segment 2 is at 8.6.

    Of the eight infrastructure & operations processes measured in Info-Tech’s IT Management and Governance Diagnostic (MGD) program, change management has the second largest gap between importance and effectiveness of these processes.

    Source: Info-Tech 2020; n=5,108 IT professionals from 620 organizations

    Common obstacles

    These barriers make this challenge difficult to address for many organizations:

    • Gaining buy-in can be a challenge no matter how well the process is built.
    • The complexity of the IT environment and culture of tacit knowledge for configuration makes it difficult to assess cross-dependencies of changes.
    • Each silo or department may have their own change management workflows that they follow internally. This can make it difficult to create a unified process that works well for everyone.

    “Why should I fill out an RFC when it only takes five minutes to push through my change?”

    “We’ve been doing this for years. Why do we need more bureaucracy?”

    “We don’t need change management if we’re Agile.”

    “We don’t have the right tools to even start change management.”

    “Why do I have to attend a CAB meeting when I don’t care what other departments are doing?”

    Info-Tech’s approach

    Build change management by implementing assessments and stage gates around appropriate levels of the change lifecycle.

    The image is a circle, comprised of arrows, with each arrow pointing to the next, forming a cycle. Each arrow is labelled, as follows: Improve; Request; Assess; Plan; Approve; Implement

    The Info-Tech difference:

    1. Create a unified change management process that balances risk and throughput of innovation.
    2. Categorize changes based on an industry-standard risk model with objective measures of impact and likelihood.
    3. Establish and empower a Change Manager and Change Advisory Board (CAB) with the authority to manage, approve, and prioritize changes.

    IT change is constant and is driven by:

    Change Management:

    1. Operations - Operational releases, maintenance, vendor-driven updates, and security updates can all be key drivers of change. Example: ITSM version update
      • Major Release
      • Maintenance Release
      • Security Patch
    2. Business - Business-driven changes may include requests from other business departments that require IT’s support. Examples: New ERP or HRIS implementation
      • New Application
      • New Version
    3. Service desk → Incident & Problem - Some incident and problem tickets require a change to facilitate resolution of the incident. Examples: Outage necessitating update of an app (emergency change), a user request for new functionality to be added to an existing app
      • Workaround
      • Fix
    4. Configuration Management Database (CMDB) ↔ Asset Management - In addition to software and hardware asset dependencies, a configuration management database (CMDB) is used to keep a record of changes and is queried to assess change requests.
      • Hardware
      • Software

    Insight summary

    “The scope of change management is defined by each organization…the purpose of change management is to maximize the number of successful service and product changes by ensuring that the risk have been properly assessed, authorizing changes to process, and managing the change schedule.” – ALEXOS Limited, ITIL 4

    Build a unified change management process balancing risk and change throughput.

    Building a unified process that oversees all changes to the technical environment doesn’t have to be burdensome to be effective. However, the process is a necessary starting point to identifying cross dependencies and avoiding change collisions and change-related incidents.

    Use an objective framework for estimating risk

    Simply asking, “What is the risk?” will result in subjective responses that will likely minimize the perceived risk. The level of due diligence should align to the criticality of the systems or departments potentially impacted by the proposed changes.

    Integrate your change process with your IT service management system

    Change management in isolation will provide some stability, but maturing the process through service integrations will enable data-driven decisions, decrease bureaucracy, and enable faster and more stable throughput.

    Change management and DevOps can work together effectively

    Change and DevOps tend to be at odds, but the framework does not have to change. Lower risk changes in DevOps are prime candidates for the pre-approved category. Much of the responsibility traditionally assigned to the CAB can be diffused throughout the software development lifecycle.

    Change management and DevOps can coexist

    Shift the responsibility and rigor to earlier in the process.

    • If you are implementing change management in a DevOps environment, ensure you have a strong DevOps lifecycle. You may wish to refer to Info-Tech’s research Implementing DevOps Practices That Work.
    • Consider starting in this blueprint by visiting Appendix II to frame your approach to change management. Follow the blueprint while paying attention to the DevOps Callouts.

    DEVOPS CALLOUTS

    Look for these DevOps callouts throughout this storyboard to guide you along the implementation.

    The image is a horizontal figure eight, with 7 arrows, each pointing into the next. They are labelled are follows: Plan; Create; Verify; Package; Release; Configure; Monitor. At the centre of the circles are the words Dev and Ops.

    Successful change management will provide benefits to both the business and IT

    Respond to business requests faster while reducing the number of change-related disruptions.

    IT Benefits

    • Fewer change-related incidents and outages
    • Faster change turnaround time
    • Higher rate of change success
    • Less change rework
    • Fewer service desk calls related to poorly communicated changes

    Business Benefits

    • Fewer service disruptions
    • Faster response to requests for new and enhanced functionalities
    • Higher rate of benefits realization when changes are implemented
    • Lower cost per change
    • Fewer “surprise” changes disrupting productivity

    IT satisfaction with change management will drive business satisfaction with IT. Once the process is working efficiently, staff will be more motivated to adhere to the process, reducing the number of unauthorized changes. As fewer changes bypass proper evaluation and testing, service disruptions will decrease and business satisfaction will increase.

    Change management improves core benefits to the business: the four Cs

    Most organizations have at least some form of change control in place, but formalizing change management leads to the four Cs of business benefits:

    Control

    Change management brings daily control over the IT environment, allowing you to review every relatively new change, eliminate changes that would have likely failed, and review all changes to improve the IT environment.

    Collaboration

    Change management planning brings increased communication and collaboration across groups by coordinating changes with business activities. The CAB brings a more formalized and centralized communication method for IT.

    Consistency

    Request for change templates and a structured process result in implementation, test, and backout plans being more consistent. Implementing processes for pre-approved changes also ensures these frequent changes are executed consistently and efficiently.

    Confidence

    Change management processes will give your organization more confidence through more accurate planning, improved execution of changes, less failure, and more control over the IT environment. This also leads to greater protection against audits.

    You likely need to improve change management more than any other infrastructure & operations process

    The image shows a vertical bar graph. Each segment of the graph is labelled for an infrastructure/operations process. Each segment has two bars one for effectiveness, and another for importance. The first segment, Change Management, is highlighted, with its Effectiveness at a 6.2 and Importance at 8.6

    Source: Info-Tech 2020; n=5,108 IT Professionals from 620 organizations

    Of the eight infrastructure and operations processes measured in Info-Tech’s IT Management and Governance Diagnostic (MGD) program, change management consistently has the second largest gap between importance and effectiveness of these processes.

    Executives and directors recognize the importance of change management but feel theirs is currently ineffective

    Info-Tech’s IT Management and Governance Diagnostic (MGD) program assesses the importance and effectiveness of core IT processes. Since its inception, the MGD has consistently identified change management as an area for immediate improvement.

    The image is a vertical bar graph, with four segments, each having 2 bars, one for Effectiveness and the other for Importance. The four segments are (with Effectiveness and Importance ratings in brackets, respectively): Frontline (6.5/8.6); Manager (6.6/8.9); Director (6.4/8.8); and Executive (6.1/8.8)

    Source: Info-Tech 2020; n=5,108 IT Professionals from 620 organizations

    Importance Scores

    No importance: 1.0-6.9

    Limited importance: 7.0-7.9

    Significant importance: 8.0-8.9

    Critical importance: 9.0-10.0

    Effectiveness Scores

    Not in place: n/a

    Not effective: 0.0-4.9

    Somewhat Ineffective: 5.0-5.9

    Somewhat effective: 6.0-6.9

    Very effective: 7.0-10.0

    There are several common misconceptions about change management

    Which of these have you heard in your organization?

     Reality
    “It’s just a small change; this will only take five minutes to do.” Even a small change can cause a business outage. That small fix could impact a large system connected to the one being fixed.
    “Ad hoc is faster; too many processes slow things down.” Ad hoc might be faster in some cases, but it carries far greater risk. Following defined processes keeps systems stable and risk-averse.
    “Change management is all about speed.” Change management is about managing risk. It gives the illusion of speed by reducing downtime and unplanned work.
    “Change management will limit our capacity to change.” Change management allows for a better alignment of process (release management) with governance (change management).

    Overcome perceived challenges to implementing change management to reap measurable reward

    Before: Informal Change Management

    Change Approval:

    • Changes do not pass through a formal review process before implementation.
    • 10% of released changes are approved.
    • Implementation challenge: Staff will resist having to submit formal change requests and assessments, frustrated at the prospect of having to wait longer to have changes approved.

    Change Prioritization

    • Changes are not prioritized according to urgency, risk, and impact.
    • 60% of changes are urgent.
    • Implementation challenge: Influential stakeholders accustomed to having changes approved and deployed might resist having to submit changes to a standard cost-benefit analysis.

    Change Deployment

    • Changes often negatively impact user productivity.
    • 25% of changes are realized as planned.
    • Implementation challenge: Engaging the business so that formal change freeze periods and regular maintenance windows can be established.

    After: Right-Sized Change Management

    Change Approval

    • All changes pass through a formal review process. Once a change is repeatable and well-tested, it can be pre-approved to save time. Almost no unauthorized changes are deployed.
    • 95% of changes are approved.
    • KPI: Decrease in change-related incidents

    Change Prioritization

    • The CAB prioritizes changes so that the business is satisfied with the speed of change deployment.
    • 35% of changes are urgent.
    • KPI: Decrease in change turnaround time.

    Change deployment

    • Users are always aware of impending changes and changes don’t interrupt critical business activities.
    • Over 80% of changes are realized as planned
    • KPI: Decrease in the number of failed deployments.

    Info-Tech’s methodology for change management optimization focuses on building standardized processes

     1. Define Change Management2. Establish Roles and Workflows3. Define the RFC and Post-Implementation Activities4. Measure, Manage, and Maintain
    Phase Steps

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

      Change Management Standard Operating Procedure (SOP) Change Management Project Summary Template
    Phase Deliverables
    • Change Management Maturity Assessment Tool
    • Change Management Risk Assessment Tool
    • Change Manager Job Description
    • Change Management Process Library
    • Request for Change (RFC) Form Template
    • Change Management Pre-Implementation Checklist
    • Change Management Post-Implementation Checklist
    • Change Management Metrics Tool
    • Change Management
    • Communications Plan
    • Change Management Roadmap Tool

    Blueprint deliverables

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

    Change Management Process Library

    Document your normal, pre-approved, and emergency change lifecycles with the core process workflows .

    Change Management Risk Assessment Tool

    Test Drive your impact and likelihood assessment questionnaires with the Change Management Risk Assessment Tool.

    Project Summary Template

    Summarize your efforts in the Optimize IT Change Management Improvement Initiative: Project Summary Template.

    Change Management Roadmap Tool

    Record your action items and roadmap your steps to a mature change management process.

    Key Deliverable:

    Change Management SOP

    Document and formalize your process starting with the change management standard operating procedure (SOP).

    These case studies illustrate the value of various phases of this project

    Define Change Management

    Establish Roles and Workflows

    Define RFC and Post-Implementation Activities

    Measure, Manage, and Maintain

    A major technology company implemented change management to improve productivity by 40%. This case study illustrates the full scope of the project.

    A large technology firm experienced a critical outage due to poor change management practices. This case study illustrates the scope of change management definition and strategy.

    Ignorance of change management process led to a technology giant experiencing a critical cloud outage. This case study illustrates the scope of the process phase.

    A manufacturing company created a makeshift CMDB in the absence of a CMDB to implement change management. This case study illustrates the scope of change intake.

    A financial institution tracked and recorded metrics to aid in the success of their change management program. This case study illustrates the scope of the implementation phase.

    Working through this project with Info-Tech can save you time and money

    Engaging in a Guided Implementation doesn’t just offer valuable project advice, it also results in significant cost savings.

    Guided ImplementationMeasured Vale
    Phase 1: Define Change Management
    • We estimate Phase 1 activities will take 2 FTEs 10 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $3,100 (2 FTEs * 5 days * $80,000/year).

    Phase 2: Establish Roles and Workflows

    • We estimate Phase 2 will take 2 FTEs 10 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $3,100 (2 FTEs * 5 days * $80,000/year).
    Phase 3: Define the RFC and Post-Implementation Activities
    • We estimate Phase 3 will take 2 FTEs 10 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $3,100 (2 FTEs * 5 days * $80,000/year).

    Phase 4: Measure, Manage, and Maintain

    • We estimate Phase 4 will take 2 FTEs 5 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $1,500 (2 FTEs * 2.5 days * $80,000/year).
    Total Savings $10,800

    Case Study

    Industry: Technology

    Source: Daniel Grove, Intel

    Intel implemented a robust change management program and experienced a 40% improvement in change efficiency.

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    ITIL Change Management Implementation

    With close to 4,000 changes occurring each week, managing Intel’s environment is a formidable task. Before implementing change management within the organization, over 35% of all unscheduled downtime was due to errors resulting from change and release management. Processes were ad hoc or scattered across the organization and no standards were in place.

    Results

    After a robust implementation of change management, Intel experienced a number of improvements including automated approvals, the implementation of a formal change calendar, and an automated RFC form. As a result, Intel improved change productivity by 40% within the first year of the program’s implementation.

    Define Change Management

    Establish Roles and Workflows

    Define RFC and Post-Implementation Activities

    Measure, Manage, and Maintain

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

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

    Guided Implementation

    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks are used throughout all four options.

    Guided Implementation

    What does a typical GI on this topic look like?

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

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

    Define Change Management

    • Call #1: Introduce change concepts.
    • Call #2: Assess current maturity.
    • Call #3: Identify target-state capabilities.

    Establish Roles and Workflows

    • Call #4: Review roles and responsibilities.
    • Call #5: Review core change processes.

    Define RFC and Post- Implementation Activities

    • Call #6: Define change intake process.
    • Call #7: Create pre-implementation and post-implementation checklists.

    Measure, Manage, and Maintain

    • Call #8: Review metrics.
    • Call #9: Create roadmap.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

     Day 1Day 2Day 3Day 4Day 5
    Activities

    Define Change Management

    1.1 Outline Strengths and Challenges

    1.2 Conduct a Maturity Assessment

    1.3 Build a Change Categorization Scheme

    1.4 Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Define the Change Manager Role

    2.2 Outline CAB Protocol and membership

    2.3 Build Normal Change Process

    2.4 Build Emergency Change Process

    2.5 Build Pre-Approved Change Process

    Define the RFC and Post-Implementation Activities

    3.1 Create an RFC Template

    3.2 Determine Post-Implementation Activities

    3.3 Build a Change Calendar Protocol

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Reports

    4.2 Create Communications Plan

    4.3 Build an Implementation Roadmap

    Next Steps and Wrap-Up (offsite)

    5.1 Complete in-progress deliverables from previous four days

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

    Deliverables
    1. Maturity Assessment
    2. Risk Assessment
    1. Change Manager Job Description
    2. Change Management Process Library
    1. Request for Change (RFC) Form Template
    2. Pre-Implementation Checklist
    3. Post-Implementation Checklist
    1. Metrics Tool
    2. Communications Plan
    3. Project Roadmap
    1. Change Management Standard Operating Procedure (SOP)
    2. Workshop Summary Deck

    Phase 1

    Define Change Management

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define the RFC and Post-Implementation Activities

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following steps:

    • Assess Maturity
    • Categorize Changes and Build Your Risk Assessment

    This phase involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Step 1.1

    Assess Maturity

    Activities

    1.1.1 Outline the Organization’s Strengths and Challenges

    1.1.2 Complete a Maturity Assessment

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • An understanding of maturity change management processes and frameworks
    • Identification of existing change management challenges and potential causes
    • A framework for assessing change management maturity and an assessment of your existing change management processes

    Define Change Management

    Step 1.1: Assess Maturity → Step 1.2: Categorize Changes and Build Your Risk Assessment

    Change management is often confused with release management, but they are distinct processes

    Change

    • Change management looks at software changes as well as hardware, database, integration, and network changes, with the focus on stability of the entire IT ecosystem for business continuity.
    • Change management provides a holistic view of the IT environment, including dependencies, to ensure nothing is negatively affected by changes.
    • Change documentation is more focused on process, ensuring dependencies are mapped, rollout plans exist, and the business is not at risk.

    Release

    • Release and deployment are the detailed plans that bundle patches, upgrades, and new features into deployment packages, with the intent to change them flawlessly into a production environment.
    • Release management is one of many actions performed under change management’s governance.
    • Release documentation includes technical specifications such as change schedule, package details, change checklist, configuration details, test plan, and rollout and rollback plans.

    Info-Tech Insight

    Ensure the Release Manager is present as part of your CAB. They can explain any change content or dependencies, communicate business approval, and advise the service desk of any defects.

    Integrate change management with other IT processes

    As seen in the context diagram, change management interacts closely with many other IT processes including release management and configuration management (seen below). Ensure you delineate when these interactions occur (e.g. RFC updates and CMDB queries) and which process owns each task.

    The image is a chart mapping the interactions between Change Management and Configuration Management (CMDB).

    Avoid the challenges of poor change management

    1. Deployments
      • Too frequent: The need for frequent deployments results in reduced availability of critical business applications.
      • Failed deployments or rework is required: Deployments are not successful and have to be backed out of and then reworked to resolve issues with the installation.
      • High manual effort: A lack of automation results in high resource costs for deployments. Human error is likely, which adds to the risk of a failed deployment.
    2. Incidents
      • Too many unauthorized changes: If the process is perceived as cumbersome and ineffective, people will bypass it or abuse the emergency designation to get their changes deployed faster.
      • Changes cause incidents: When new releases are deployed, they create problems with related systems or applications.
    3. End Users
      • Low user satisfaction: Poor communication and training result in surprised and unhappy users and support staff.

    “With no controls in place, IT gets the blame for embarrassing outages. Too much control, and IT is seen as a roadblock to innovation.” – Anonymous, VP IT of a federal credit union

    1.1.1 Outline the Organization’s Strengths and Challenges

    Input

    • Current change documentation (workflows, SOP, change policy, etc.)
    • Organizational chart(s)

    Output

    • List of strengths and challenges for change management

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. As group, discuss and outline the change management challenges facing the organization. These may be challenges caused by poor change management processes or by a lack of process.
    2. Use the pain points found on the previous slide to help guide the discussion.
    3. As a group, also outline the strengths of change management and the strengths of the current organization. Use these strengths as a guide to know what practices to continue and what strengths you can leverage to improve the change management process.
    4. Record the activity results in the Project Summary Template.

    Download the Optimize IT Change Management Improvement Initiative: Project Summary Template

    Assess current change management maturity to create a plan for improvement

     ChaosReactiveControlled

    Proactive

    Optimized
    Change Requests No defined processes for submitting changes Low process adherence and no RFC form RFC form is centralized and a point of contact for changes exists RFCs are reviewed for scope and completion RFCs trend analysis and proactive change exists
    Change Review Little to no change risk assessment Risk assessment exists for each RFC RFC form is centralized and a point of contact for changes exists Change calendar exists and is maintained System and component dependencies exist (CMDB)
    Change Approval No formal approval process exists Approval process exists but is not widely followed Unauthorized changes are minimal or nonexistent Change advisory board (CAB) is established and formalized Trend analysis exists increasing pre-approved changes
    Post-Deployment No post-deployment change review exists Process exists but is not widely followed Reduction of change-related incidents Stakeholder satisfaction is gathered and reviewed Lessons learned are propagated and actioned
    Process Governance Roles & responsibilities are ad hoc Roles, policies & procedures are defined & documented Roles, policies & procedures are defined & documented KPIs are tracked, reported on, and reviewed KPIs are proactively managed for improvement

    Info-Tech Insight

    Reaching an optimized level is not feasible for every organization. You may be able to run a very good change management process at the Proactive or even Controlled stage. Pay special attention to keeping your goals attainable.

    1.1.2 Complete a Maturity Assessment

    Input

    • Current change documentation (workflows, SOP, change policy, etc.)

    Output

    • Assessment of current maturity level and goals to improve change management

    Materials

    Participants

    • Change Manager
    • Service Desk Manager
    • Operations (optional)
    1. Use Info-Tech’s Change Management Maturity Assessment Tool to assess the maturity and completeness of your change process.
    2. Significant gaps revealed in this assessment should be the focal points of your discussion when investigating root causes and brainstorming remediation activities:
      1. For each activity of each process area of change management, determine the degree of completeness of your current process.
      2. Review your maturity assessment results and discuss as a group potential reasons why you arrived at your maturity level. Identify areas where you should focus your initial attention for improvement.
      3. Regularly review the maturity of your change management practices by completing this maturity assessment tool periodically to identify other areas to optimize.

    Download the Change Management Maturity Assessment Tool

    Case Study

    Even Google isn’t immune to change-related outages. Plan ahead and communicate to help avoid change-related incidents

    Industry: Technology

    Source: The Register

    As part of a routine maintenance procedure, Google engineers moved App Engine applications between data centers in the Central US to balance out traffic.

    Unfortunately, at the same time that applications were being rerouted, a software update was in progress on the traffic routers, which triggered a restart. This temporarily diminished router capacity, knocking out a sizeable portion of Google Cloud.

    The server drain resulted in a huge spike in startup requests, and the routers simply couldn’t handle the traffic.

    As a result, 21% of Google App Engine applications hosted in the Central US experienced error rates in excess of 10%, while an additional 16% of applications experienced latency, albeit at a lower rate.

    Solution

    Thankfully, engineers were actively monitoring the implementation of the change and were able to spring into action to halt the problem.

    The change was rolled back after 11 minutes, but the configuration error still needed to be fixed. After about two hours, the change failure was resolved and the Google Cloud was fully functional.

    One takeaway for the engineering team was to closely monitor how changes are scheduled. Ultimately, this was the result of miscommunication and a lack of transparency between change teams.

    Step 1.2

    Categorize Changes and Build Your Risk Assessment

    Activities

    1.2.1 Define What Constitutes a Change

    1.2.2 Build a Change Categorization Scheme

    1.2.3 Build a Classification Scheme to Assess Impact

    1.2.4 Build a Classification Scheme to Define Likelihood

    1.2.5 Evaluate and Adjust Your Risk Assessment Scheme

    Define Change Management

    Step 1.1: Assess Maturity → Step 1.2: Categorize Changes and Build Your Risk Assessment

    This step involves the following participants:

    • Infrastructure/Applications Manager
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • A clear definition of what constitutes a change in your organization
    • A defined categorization scheme to classify types of changes
    • A risk assessment matrix and tool for evaluating and prioritizing change requests according to impact and likelihood of risk

    Change must be managed to mitigate risk to the infrastructure

    Change management is the gatekeeper protecting your live environment.

    Successfully managed changes will optimize risk exposure, severity of impact, and disruption. This will result in the bottom-line business benefits of removal of risk, early realization of benefits, and savings of money and time.

    • IT change is constant; change requests will be made both proactively and reactively to upgrade systems, acquire new functionality, and to prevent or resolve incidents.
    • Every change to the infrastructure must pass through the change management process before being deployed to ensure that it has been properly assessed and tested, and to check that a backout /rollback plan is in place.
    • It will be less expensive to invest in a rigorous change management process than to resolve incidents, service disruptions, and outages caused by the deployment of a bad change.
    • Change management is what gives you control and visibility regarding what is introduced to the live environment, preventing incidents that threaten business continuity.

    80%

    In organizations without formal change management processes, about 80% (The Visible Ops Handbook) of IT service outage problems are caused by updates and changes to systems, applications, and infrastructure. It’s crucial to track and systematically manage change to fully understand and predict the risks and potential impact of the change.

    Attributes of a change

    Differentiate changes from other IT requests

    Is this in the production environment of a business process?

    The core business of the enterprise or supporting functions may be affected.

    Does the task affect an enterprise managed system?

    If it’s for a local application, it’s a service request

    How many users are impacted?

    It should usually impact more than a single user (in most cases).

    Is there a configuration, or code, or workflow, or UI/UX change?

    Any impact on a business process is a change; adding a user or a recipient to a report or mailing list is not a change.

    Does the underlying service currently exist?

    If it’s a new service, then it’s better described as a project.

    Is this done/requested by IT?

    It needs to be within the scope of IT for the change management process to apply.

    Will this take longer than one week?

    As a general rule, if it takes longer than 40 hours of work to complete, it’s likely a project.

    Defining what constitutes a change

    Every change request will initiate the change management process; don’t waste time reviewing requests that are out of scope.

    ChangeService Request (User)Operational Task (Backend)
    • Fixing defects in code
    • Changing configuration of an enterprise system
    • Adding new software or hardware components
    • Switching an application to another VM
    • Standardized request
    • New PC
    • Permissions request
    • Change password
    • Add user
    • Purchases
    • Change the backup tape
    • Delete temporary files
    • Maintain database (one that is well defined, repeatable, and predictable)
    • Run utilities to repair a database

    Do not treat every IT request as a change!

    • Many organizations make the mistake of calling a standard service request or operational task a “change.”
    • Every change request will initiate the change management process; don’t waste time reviewing requests that are out of scope.
    • While the overuse of RFCs for out-of-scope requests is better than a lack of process, this will slow the process and delay the approval of more critical changes.
    • Requiring an RFC for something that should be considered day-to-day work will also discourage people from adhering to the process, because the RFC will be seen as meaningless paperwork.

     

    1.2.1 Define What Constitutes a Change

    Input

    • List of examples of each category of the chart

    Output

    • Definitions for each category to be used at change intake

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Service catalog (if applicable)
    • Sticky notes
    • Markers/pens
    • Change Management SOP

    Participants

    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. As a group, brainstorm examples of changes, projects, service requests (user), operational tasks (backend), and releases. You may add additional categories as needed (e.g. incidents).
    2. Have each participant write the examples on sticky notes and populate the following chart on the whiteboard/flip chart.
    3. Use the examples to draw lines and define what defines each category.
      • What makes a change distinct from a project?
      • What makes a change distinct from a service request?
      • What makes a change distinct from an operational task?
      • When do the category workflows cross over with other categories? (For example, when does a project interact with change management?)
    4. Record the definitions of requests and results in section 2.3 of the Change Management Standard Operating Procedure (SOP).
    ChangeProjectService Request (User)Operational Task (Backend)Release
    Changing Configuration ERP upgrade Add new user Delete temp files Software release

    Download the Change Management Standard Operating Procedure (SOP).

    Each RFC should define resources needed to effect the change

    In addition to assigning a category to each RFC based on risk assessment, each RFC should also be assigned a priority based on the impact of the change on the IT organization, in terms of the resources needed to effect the change.

    Categories include

    Normal

    Emergency

    Pre-Approved

    The majority of changes will be pre-approved or normal changes. Definitions of each category are provided on the next slide.

    Info-Tech uses the term pre-approved rather than the ITIL terminology of standard to more accurately define the type of change represented by this category.

    A potential fourth change category of expedited may be employed if you are having issues with process adherence or if you experience changes driven from outside change management’s control (e.g. from the CIO, director, judiciary, etc.) See Appendix I for more details.

    Info-Tech Best Practice

    Do not rush to designate changes as pre-approved. You may have a good idea of which changes may be considered pre-approved, but make sure they are in fact low-risk and well-documented before moving them over from the normal category.

    The category of the change determines the process it follows

     Pre-ApprovedNormalEmergency
    Definition
    • Tasks are well-known, documented, and proven
    • Budgetary approval is preordained or within control of change requester
    • Risk is low and understood
    • There’s a low probability of failure
    • All changes that are not pre-approved or emergency will be classified as normal
    • Further categorized by priority/risk
    • The change is being requested to resolve a current or imminent critical/severity-1 incident that threatens business continuity
    • Associated with a critical incident or problem ticket
    Trigger
    • The same change is built and changed repeatedly using the same install procedures and resulting in the same low-risk outcome
    • Upgrade or new functionality that will capture a business benefit
    • A fix to a current problem
    • A current or imminent critical incident that will impact business continuity
    • Urgency to implement the change must be established, as well as lack of any alternative or workaround
    Workflow
    • Pre-established
    • Repeatable with same sequence of actions, with minimal judgment or decision points
    • Dependent on the change
    • Different workflows depending on prioritization
    • Dependent on the change
    Approval
    • Change Manager (does not need to be reviewed by CAB)
    • CAB
    • Approval from the Emergency Change Advisory Board (E-CAB) is sufficient to proceed with the change
    • A retroactive RFC must be created and approved by the CAB

    Pay close attention to defining your pre-approved changes. They are going to be critical for running a smooth change management practice in a DevOps Environment

    1.2.2 Build a Change Categorization Scheme

    Input

    • List of examples of each change category

    Output

    • Definitions for each change category

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Service catalog (if applicable)
    • Sticky notes
    • Markers
    • Change Management SOP

    Participants

    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Discuss the change categories on the previous slide and modify the types of descriptions to suit your organization.
    2. Once the change categories or types are defined, identify several examples of change requests that would fall under each category.
    3. Types of normal changes will be further defined in the next activity and can be left blank for now.
    4. Examples are provided below. Capture your definitions in section 4 of your Change Management SOP.
    Pre-Approved (AKA Standard)NormalEmergency
    • Microsoft patch management/deployment
    • Windows update
    • Minor form changes
    • Service pack updates on non-critical systems
    • Advance label status on orders
    • Change log retention period/storage
    • Change backup frequency

    Major

    • Active directory server upgrade
    • New ERP

    Medium

    • Network upgrade
    • High availability implementation

    Minor

    • Ticket system go-live
    • UPS replacement
    • Cognos update
    • Any change other than a pre-approved change
    • Needed to resolve a major outage in a Tier 1 system

    Assess the risk for each normal change based on impact (severity) and likelihood (probability)

    Create a change assessment risk matrix to standardize risk assessment for new changes. Formalizing this assessment should be one of the first priorities of change management.

    The following slides guide you through the steps of formalizing a risk assessment according to impact and likelihood:

    1. Define a risk matrix: Risk matrices can either be a 3x3 matrix (Minor, Medium, or High Risk as shown on the next slide) or a 4x4 matrix (Minor, Medium, High, or Critical Risk).
    2. Build an impact assessment: Enable consistent measurement of impact for each change by incorporating a standardized questionnaire for each RFC.
    3. Build a likelihood assessment: Enable the consistent measurement of impact for each change by incorporating a standardized questionnaire for each RFC.
    4. Test drive your risk assessment and make necessary adjustments: Measure your newly formed risk assessment questionnaires against historical changes to test its accuracy.

    Consider risk

    1. Risk should be the primary consideration in classifying a normal change as Low, Medium, High. The extent of governance required, as well as minimum timeline to implement the change, will follow from the risk assessment.
    2. The business benefit often matches the impact level of the risk – a change that will provide a significant benefit to a large number of users may likely carry an equally major downside if deviations occur.

    Info-Tech Insight

    All changes entail an additional level of risk. Risk is a function of impact and likelihood. Risk may be reduced, accepted, or neutralized through following best practices around training, testing, backout planning, redundancy, timing and sequencing of changes, etc.

    Create a risk matrix to assign a risk rating to each RFC

    Every normal RFC should be assigned a risk rating.

    How is risk rating determined?

    • Priority should be based on the business consequences of implementing or denying the change.
    • Risk rating is assigned using the impact of the risk and likelihood/probability that the event may occur.

    Who determines priority?

    • Priority should be decided with the change requester and with the CAB, if necessary.
    • Don’t let the change requester decide priority alone, as they will usually assign it a higher priority than is justified. Use a repeatable, standardized framework to assess each request.

    How is risk rating used?

    • Risk rating is used to determine which changes should be discussed and assessed first.
    • Time frames and escalation processes should be defined for each risk level.

    RFCs need to clearly identify the risk level of the proposed change. This can be done through statement of impact and likelihood (low/medium/high) or through pertinent questions linked with business rules to assess the risk.

    Risk always has a negative impact, but the size of the impact can vary considerably in terms of cost, number of people or sites affected, and severity of the impact. Impact questions tend to be more objective and quantifiable than likelihood questions.

    Risk Matrix

    Risk Matrix. Impact vs. Likelihood. Low impact, Low Likelihood and Medium Impact, Medium Likelihood are minor risks. High Likelihood, Low Impact; Medium Likelihood, Medium Impact; and Low Likelihood, High Impact are Medium Risk. High Impact, High Likelihood; High Impact, Medium Likelihood; and Medium Impact, High Likelihood are Major risk.

    1.2.3 Build a Classification Scheme to Assess Impact

    Input

    • Current risk assessment (if available)

    Output

    • Tailored impact assessment

    Materials

    Participants

    • CIO
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Define a set of questions to measure risk impact.
    2. For each question, assign a weight that should be placed on that factor.
    3. Define criteria for each question that would categorize the risk as high, medium, or low.
    4. Capture your results in section 4.3.1 of your Change Management SOP.
    Impact
    Weight Question High Medium Low
    15% # of people affected 36+ 11-35 <10
    20% # of sites affected 4+ 2-3 1
    15% Duration of recovery (minutes of business time) 180+ 30-18 <3
    20% Systems affected Mission critical Important Informational
    30% External customer impact Loss of customer Service interruption None

    1.2.4 Build a Classification Scheme to Define Likelihood

    Input

    • Current risk assessment (if available)

    Output

    • Tailored likelihood assessment

    Materials

    Participants

    • CIO
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Define a set of questions to measure risk likelihood.
    2. For each question, assign a weight that should be placed on that factor.
    3. Define criteria for each question that would categorize the risk as high, medium, or low.
    4. Capture your results in section 4.3.2 of your Change Management SOP.
    LIKELIHOOD
    Weight Question High Medium Low
    25% Has this change been tested? No   Yes
    10% Have all the relevant groups (companies, departments, executives) vetted the change? No Partial Yes
    5% Has this change been documented? No   Yes
    15% How long is the change window? When can we implement? Specified day/time Partial Per IT choice
    20% Do we have trained and experienced staff available to implement this change? If only external consultants are available, the rating will be “medium” at best. No   Yes
    25% Has an implementation plan been developed? No   Yes

    1.2.5 Evaluate and Adjust Your Risk Assessment Scheme

    Input

    • Impact and likelihood assessments from previous two activities

    Output

    • Vetted risk assessment

    Materials

    Participants

    • CIO
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Draw your risk matrix on a whiteboard or flip chart.
    2. As a group, identify up to 10 examples of requests for changes that would apply within your organization. Depending on the number of people participating, each person could identify one or two changes and write them on sticky notes.
    3. Take turns bringing your sticky notes up to the risk matrix and placing each where it belongs, according to the assessment criteria you defined.
    4. After each participant has taken a turn, discuss each change as a group and adjust the placement of any changes, if needed. Update the risk assessment weightings or questions, if needed.

    Download the Change Management Rick Assessment Tool.

    #

    Change Example

    Impact

    Likelihood

    Risk

    1

    ERP change

    High

    Medium

    Major

    2

    Ticket system go-live

    Medium

    Low

    Minor

    3

    UPS replacement

    Medium

    Low

    Minor

    4

    Network upgrade

    Medium

    Medium

    Medium

    5

    AD upgrade

    Medium

    Low

    Minor

    6

    High availability implementation

    Low

    Medium

    Minor

    7

    Key-card implementation

    Low

    High

    Medium

    8

    Anti-virus update

    Low

    Low

    Minor

    9

    Website

    Low

    Medium

    Minor

     

    Case Study

    A CMDB is not a prerequisite of change management. Don’t let the absence of a configuration management database (CMDB) prevent you from implementing change management.

    Industry: Manufacturing

    Source: Anonymous Info-Tech member

    Challenge

    The company was planning to implement a CMDB; however, full implementation was still one year away and subject to budget constraints.

    Without a CMDB, it would be difficult to understand the interdependencies between systems and therefore be able to provide notifications to potentially affected user groups prior to implementing technical changes.

    This could have derailed the change management project.

    Solution

    An Excel template was set up as a stopgap measure until the full implementation of the CMDB. The template included all identified dependencies between systems, along with a “dependency tier” for each IT service.

    Tier 1: The dependent system would not operate if the upstream system change resulted in an outage.

    Tier 2: The dependent system would suffer severe degradation of performance and/or features.

    Tier 3: The dependent system would see minor performance degradation or minor feature unavailability.

    Results

    As a stopgap measure, the solution worked well. When changes ran the risk of degrading downstream dependent systems, the impacted business system owner’s authorization was sought and end users were informed in advance.

    The primary takeaway was that a system to manage configuration linkages and system dependencies was key.

    While a CMDB is ideal for this use case, IT organizations shouldn’t let the lack of such a system stop progress on change management.

    Case Study (part 1 of 4)

    Intel used a maturity assessment to kick-start its new change management program.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    Due to the sheer volume of change management activities present at Intel, over 35% of unscheduled outages were the result of changes.

    Ineffective change management was identified as the top contributor of incidents with unscheduled downtime.

    One of the major issues highlighted was a lack of process ownership. The change management process at Intel was very fragmented, and that needed to change.

    Results

    Daniel Grove, Senior Release & Change Manager at Intel, identified that clarifying tasks for the Change Manager and the CAB would improve process efficiency by reducing decision lag time. Roles and responsibilities were reworked and clarified.

    Intel conducted a maturity assessment of the overall change management process to identify key areas for improvement.

    Phase 2

    Establish Roles and Workflows

    For running change management in DevOps environment, see Appendix II.

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define RFC and Post-Implementation Activities

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following steps:

    • Determine Roles and Responsibilities
    • Build Core Workflows

    This phase involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Step 2.1

    Determine Roles and Responsibilities

    Activities

    2.1.1 Capture Roles and Responsibilities Using a RACI Chart

    2.1.2 Determine Your Change Manager’s Responsibilities

    2.1.3 Define the Authority and Responsibilities of Your CAB

    2.1.4 Determine an E-CAB Protocol for Your Organization

    Establish Roles and Workflows

    Step 2.1: Determine Roles and Responsibilities → Step 2.2: Build Core Workflows

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • Clearly defined responsibilities to form the job description for a Change Manager
    • Clearly defined roles and responsibilities for the change management team, including the business system owner, technical SME, and CAB members
    • Defined responsibilities and authority of the CAB
    • Protocol for an emergency CAB (E-CAB) meeting

    Identify roles and responsibilities for your change management team

    Business System Owner

    • Provides downtime window(s)
    • Advises on need for change (prior to creation of RFC)
    • Validates change (through UAT or other validation as necessary)
    • Provides approval for expedited changes (needs to be at executive level)

    Technical Subject Matter Expert (SME)

    • Advises on proposed changes prior to RFC submission
    • Reviews draft RFC for technical soundness
    • Assesses backout/rollback plan
    • Checks if knowledgebase has been consulted for prior lessons learned
    • Participates in the PIR, if necessary
    • Ensures that the service desk is trained on the change

    CAB

    • Approves/rejects RFCs for normal changes
    • Reviews lessons learned from PIRs
    • Decides on the scope of change management
    • Reviews metrics and decides on remedial actions
    • Considers changes to be added to list of pre-approved changes
    • Communicates to organization about upcoming changes

    Change Manager

    • Reviews RFCs for completeness
    • Ensures RFCs brought to the CAB have a high chance of approval
    • Chairs CAB meetings, including scheduling, agenda preparation, reporting, and follow-ups
    • Manages post-implementation reviews and reporting
    • Organizes internal communications (within IT)

    2.1.1 Capture Roles and Responsibilities Using a RACI Chart

    Input

    • Current SOP

    Output

    • Documented roles and responsibilities in change management in a RACI chart

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. As a group, work through developing a RACI chart to determine the roles and responsibilities of individuals involved in the change management practice based on the following criteria:
      • Responsible (performs the work)
      • Accountable (ensures the work is done)
      • Consulted (two-way communication)
      • Informed (one-way communication)
    2. Record your results in slide 14 of the Project Summary Template and section 3.1 of your Change Management SOP.
    Change Management TasksOriginatorSystem OwnerChange ManagerCAB MemberTechnical SMEService DeskCIO/ VP ITE-CAB Member
    Review the RFC C C A C R C R  
    Validate changes C C A C R C R  
    Assess test plan A C R R C   I  
    Approve the RFC I C A R C   I  
    Create communications plan R I A     I I  
    Deploy communications plan I I A I   R    
    Review metrics   C A R   C I  
    Perform a post implementation review   C R A     I  
    Review lessons learned from PIR activities     R A   C    

    Designate a Change Manager to own the process, change templates, and tools

    The Change Manager will be the point of contact for all process questions related to change management.

    • The Change Manager needs the authority to reject change requests, regardless of the seniority of the requester.
    • The Change Manager needs the authority to enforce compliance to a standard process.
    • The Change Manager needs enough cross-functional subject-matter expertise to accurately evaluate the impact of change from both an IT and business perspective.

    Info-Tech Best Practice

    Some organizations will not be able to assign a dedicated Change Manager, but they must still task an individual with change review authority and with ownership of the risk assessment and other key parts of the process.

    Responsibilities

    1. The Change Manager is your first stop for change approval. Both the change management and release and deployment management processes rely on the Change Manager to function.
    2. Every single change that is applied to the live environment, from a single patch to a major change, must originate with a request for change (RFC), which is then approved by the Change Manager to proceed to the CAB for full approval.
    3. Change templates and tools, such as the change calendar, list of preapproved changes, and risk assessment template are controlled by the Change Manager.
    4. The Change Manager also needs to have ownership over gathering metrics and reports surrounding deployed changes. A skilled Change Manager needs to have an aptitude for applying metrics for continual improvement activities.

    2.1.2 Document Your Change Manager’s Responsibilities

    Input

    • Current Change Manager job description (if available)

    Output

    • Change Manager job description and list of responsibilities

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Markers/pens
    • Info-Tech’s Change Manager Job Description
    • Change Management SOP

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    1.Using the previous slide, Info-Tech’s Change Manager Job Description, and the examples below, brainstorm responsibilities for the Change Manager.

    2.Record the responsibilities in Section 3.2 of your Change Management SOP.

    Example:

    Change Manager: James Corey

    Responsibilities

    1. Own the process, tools, and templates.
    2. Control the Change Management SOP.
    3. Provide standard RFC forms.
    4. Distribute RFCs for CAB review.
    5. Receive all initial RFCs and check them for completion.
    6. Approve initial RFCs.
    7. Approve pre-approved changes.
    8. Approve the conversion of normal changes to pre-approved changes.
    9. Assemble the Emergency CAB (E-CAB) when emergency change requests are received.
    10. Approve submission of RFCs for CAB review.
    11. Chair the CAB:
      • Set the CAB agenda and distribute it at least 24 hours before the meeting.
      • Ensure the agenda is adhered to.
      • Make the final approval/prioritization decision regarding a change if the CAB is deadlocked and cannot come to an agreement.
      • Distribute CAB meeting minutes to all members and relevant stakeholders.

    Download the Change Manager Job Description

    Create a Change Advisory Board (CAB) to provide process governance

    The primary functions of the CAB are to:

    1. Protect the live environment from poorly assessed, tested, and implemented changes.
      • CAB approval is required for all normal and emergency changes.
      • If a change results in an incident or outage, the CAB is effectively responsible; it’s the responsibility of the CAB to assess and accept the potential impact of every change.
    2. Prioritize changes in a way that fairly reflects change impact and urgency.
      • Change requests will originate from multiple stakeholders, some of whom have competing interests.
      • It’s up to the CAB to prioritize these requests effectively so that business need is balanced with any potential risk to the infrastructure.
      • The CAB should seek to reduce the number of emergency/expedited changes.
    3. Schedule deployments in a way that minimizes conflict and disruption.
      • The CAB uses a change calendar populated with project work, upcoming organizational initiatives, and change freeze periods. They will schedule changes around these blocks to avoid disrupting user productivity.
      • The CAB should work closely with the release and deployment management teams to coordinate change/release scheduling.

    See what responsibilities in the CAB’s process are already performed by the DevOps lifecycle (e.g. authorization, deconfliction etc.). Do not duplicate efforts.

    Use diverse representation from the business to form an effective CAB

    The CAB needs insight into all areas of the business to avoid approving a high-risk change.

    Based on the core responsibilities you have defined, the CAB needs to be composed of a diverse set of individuals who provide quality:

    • Change need assessments – identifying the value and purpose of a proposed change.
    • Change risk assessments – confirmation of the technical impact and likelihood assessments that lead to a risk score, based on the inputs in RFC.
    • Change scheduling – offer a variety of perspectives and responsibilities and will be able to identify potential scheduling conflicts.
     CAB RepresentationValue Added
    Business Members
    • CIO
    • Business Relationship Manager
    • Service Level Manager
    • Business Analyst
    • Identify change blackout periods, change impact, and business urgency.
    • Assess impact on fiduciary, legal, and/or audit requirements.
    • Determine acceptable business risk.
    IT Operations Members
    • Managers representing all IT functions
    • IT Directors
    • Subject Matter Experts (SMEs)
    • Identify dependencies and downstream impacts.
    • Identify possible conflicts with pre-existing OLAs and SLAs.
    CAB Attendees
    • Specific SMEs, tech specialists, and business and vendor reps relevant to a particular change
    • Only attend meetings when invited by the Change Manager
    • Provide detailed information and expertise related to their particular subject areas.
    • Speak to requirements, change impact, and cost.

    Info-Tech Best Practice

    Form a core CAB (members attend every week) and an optional CAB (members who attend only when a change impacts them or when they can provide value in discussions about a change). This way, members can have their voice heard without spending every week in a meeting where they do not contribute.

    2.1.3 Define the Authority and Responsibilities of Your CAB

    Input

    • Current SOP or CAB charter (if available)

    Output

    • Documented list of CAB authorities and responsibilities

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    1.Using the previous slide and the examples below, list the authorities and responsibilities of your CAB.

    2.Record the responsibilities in section 3.3.2 of your Change Management SOP and the Project Summary Template.

    Example:

    CAP AuthorityCAP Responsibilities
    • Final authority over the deployment of all normal and emergency changes.
    • Authority to absorb the risk of a change.
    • Authority to set the change calendar:
      • Maintenance windows.
      • Change freeze periods.
      • Project work.
      • Authority to delay changes.
    • Evaluate all normal and emergency changes.
    • Verify all normal change test, backout, and implementation plans.
    • Verify all normal change test results.
    • Approve all normal and emergency changes.
    • Prioritize all normal changes.
    • Schedule all normal and emergency changes.
    • Review failed change deployments.

    Establish an emergency CAB (E-CAB) protocol

    • When an emergency change request is received, you will not be able to wait until the regularly scheduled CAB meeting.
    • As a group, decide who will sit on the E-CAB and what their protocol will be when assessing and approving emergency changes.

    Change owner conferences with E-CAB (best efforts to reach them) through email or messaging.

    E-CAB members and business system owners are provided with change details. No decision is made without feedback from at least one E-CAB member.

    If business continuity is being affected, the Change Manager has authority to approve change.

    Full documentation of the change (a retroactive RFC) is done after the change and is then reviewed by the CAB.

    Info-Tech Best Practice

    Members of the E-CAB should be a subset of the CAB who are typically quick to respond to their messages, even at odd hours of the night.

    2.1.4 Determine an E-CAB Protocol for Your Organization

    Input

    • Current SOP or CAB charter (if available)

    Output

    • E-CAB protocol

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather the members of the E-CAB and other necessary representatives from the change management team.
    2. Determine the order of operations for the E-CAB in the event that an emergency change is needed.
    3. Consult the example emergency protocol below. Determine what roles and responsibilities are involved at each stage of the emergency change’s implementation.
    4. Document the E-CAB protocol in section 3.4 of your Change Management SOP.

    Example

    Assemble E-CAB

    Assess Change

    Test (if Applicable)

    Deploy Change

    Create Retroactive RFC

    Review With CAB

    Step 2.2

    Build Core Workflows

    Activities

    2.2.1 Build a CMDB-lite as a Reference for Requested Changes

    2.2.2 Create a Normal Change Process

    2.2.3 Create a Pre-Approved Change Process

    2.2.4 Create an Emergency Change Process

    Establish Roles and Workflows

    Step 2.1: Determine Roles and Responsibilities → Step 2.2: Build Core Workflows

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • Emergency change workflow
    • Normal process workflow
    • Pre-approved change workflow

    Establishing Workflows: Change Management Lifecycle

    Improve

    • A post-implementation review assesses the value of the actual change measured against the proposed change in terms of benefits, costs, and impact.
    • Results recorded in the change log.
    • Accountability: Change Manager Change Implementer

    Request

    • A change request (RFC) can be submitted via paper form, phone, email, or web portal.
    • Accountability: Change requester/Initiator

    Assess

    • The request is screened to ensure it meets an agreed-upon set of business criteria.
    • Changes are assessed on:
      • Impact of change
      • Risks or interdependencies
      • Resourcing and costs
    • Accountability: Change Manager

    Plan

    • Tasks are assigned, planned, and executed.
    • Change schedule is consulted and necessary resources are identified.
    • Accountability: Change Manager

    Approve

    • Approved requests are sent to the most efficient channel based on risk, urgency, and complexity.
    • Change is sent to CAB members for final review and approval
    • Accountability: Change Manager
      • Change Advisory Board

    Implement

    • Approved changes are deployed.
    • A rollback plan is created to mitigate risk.
    • Accountability: Change Manager Change Implementer

    Establishing workflows: employ a SIPOC model for process definition

    A good SIPOC (supplier, input, process, output, customer) model helps establish the boundaries of each process step and provides a concise definition of the expected outcomes and required inputs. It’s a useful and recommended next step for every workflow diagram.

    For change management, employ a SIPOC model to outline your CAB process:

    Supplier

    • Who or what organization provides the inputs to the process? The supplier can be internal or external.

    Input

    • What goes into the process step? This can be a document, data, information, or a decision.

    Process

    • Activities that occur in the process step that’s being analyzed.

    Output

    • What does the process step produce? This can be a document, data, information, or a decision.

    Customer

    • Who or what organization(s) takes the output of the process? The customer can be internal or external.

    Optional Fields

    Metrics

    • Top-level indicators that usually relate to the input and output, e.g. turnaround time, risk matrix completeness.

    Controls

    • Checkpoints to ensure process step quality.

    Dependencies

    • Other process steps that require the output.

    RACI

    • Those who are Responsible, Accountable, Consulted, or Informed (RACI) about the input, output, and/or process.

    Establish change workflows: assess requested changes to identify impact and dependencies

    An effective change assessment workflow is a holistic process that leaves no stone unturned in an effort to mitigate risk before any change reaches the approval stage. The four crucial areas of risk in a change workflow are:

    Dependencies

    Identify all components of the change.

    Ask how changes will affect:

    • Services on the same infrastructure?
    • Applications?
    • Infrastructure/app architecture?
    • Security?
    • Ability to support critical systems?

    Business Impact

    Frame the change from a business point of view to identify potential disruptions to business activities.

    Your assessment should cover:

    • Business processes
    • User productivity
    • Customer service
    • BCPs

    SLA Impact

    Each new change can impact the level of service available.

    Examine the impact on:

    • Availability of critical systems
    • Infrastructure and app performance
    • Infrastructure and app capacity
    • Existing disaster recovery plans and procedures

    Required Resources

    Once risk has been assessed, resources need to be identified to ensure the change can be executed.

    These include:

    • People (SMEs, tech support, work effort/duration)
    • System time for scheduled implementation
    • Hardware or software (new or existing, as well as tools)

    Establishing workflows: pinpoint dependencies to identify the need for additional changes

    An assessment of each change and a query of the CMDB needs to be performed as part of the change planning process to mitigate outage risk.

    • A version upgrade on one piece of software may require another component to be upgraded as well. For example, an upgrade to the database management system requires that an application that uses the database be upgraded or modified.
    • The sequence of the release must also be determined, as certain components may need to be upgraded before others. For example, if you upgrade the Exchange Server, a Windows update must be installed prior to the Exchange upgrade.
    • If you do not have a CMDB, consider building a CMDB-lite, which consists of a listing of systems, primary users, SMEs, business owners, and system dependencies (see next slide).

    Services Impacted

    • Have affected services been identified?
    • Have supporting services been identified?
    • Has someone checked the CMDB to ensure all dependencies have been accounted for?
    • Have we referenced the service catalog so the business approves what they’re authorizing?

    Technical Teams Impacted

    • Who will support the change throughout testing and implementation?
    • Will additional support be needed?
    • Do we need outside support from eternal suppliers?
    • Has someone checked the contract to ensure any additional costs have been approved?

    Build a dependency matrix to avoid change related collisions (optional)

    A CMDB-lite does not replace a CMDB but can be a valuable tool to leverage when requesting changes if you do not currently have configuration management. Consider the following inputs when building your own CMDB-lite.

    • System
      • To build a CMDB-lite, start with the top 10 systems in your environment that experience changes. This list can always be populated iteratively.
    • Primary Users
      • Listing the primary users will give a change requester a first glance at the impact of the change.
      • You can also use this information when looking at the change communication and training after the change is implemented.
    • SME/Backup
      • These are the staff that will likely build and implement the change. The backup is listed in case the primary is on holiday.
    • Business System Owner
      • The owner of the system is one of the people needed to sign off on the change. Having their support from the beginning of a change is necessary to build and implement it successfully.
    • Tier 1 Dependency
      • If the primary system experiences and outage, Tier 1 dependency functionality is also lost. To request a change, include the business system owner signoffs of the Tier 1 dependencies of the primary system.
    • Tier 2 Dependency
      • If the primary system experiences an outage, Tier 2 dependency functionality is lost, but there is an available workaround. As with Tier 1, this information can help you build a backout plan in case there is a change-related collision.
    • Tier 3 Dependency
      • Tier 3 functionality is not lost if the primary system experiences an outage, but nice-to-haves such as aesthetics are affected.

    2.2.1 Build a CMDB-lite as a Reference for Requested Changes

    Input

    • Current system ownership documentation

    Output

    • Documented reference for change requests (CMDB-lite)

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Sticky notes
    • Markers/pens

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Start with a list of your top 10-15 systems/services with the highest volume of changes.
    2. Using a whiteboard, flip chart, or shared screen, complete the table below by filling the corresponding Primary Users, SMEs, Business System Owner, and Dependencies as shown below. It may help to use sticky notes.
    3. Iteratively populate the table as you notice gaps with incoming changes.
    SystemPrimary UsersSMEBackup SME(s)Business System OwnerTier 1 Dependency (system functionality is down)Tier 2 (impaired functionality/ workaround available)Tier 3 Dependency (nice to have)
    Email Enterprise Naomi Amos James
    • ITSMs
    • Scan-to-email
    • Reporting
     
    • Lots
    Conferencing Tool Enterprise Alex Shed James
    • Videoconferencing
    • Conference rooms (can use Facebook messenger instead in worst case scenario)
    • IM
    ITSM (Service Now) Enterprise (Intl.) Anderson TBD Mike
    • Work orders
    • Dashboards
    • Purchasing
     
    ITSM (Manage Engine) North America Bobbie Joseph Mike
    • Work orders
    • Dashboards
    • Purchasing
     

    Establishing workflows: create standards for change approvals to improve efficiency

    • Not all changes are created equal, and not all changes require the same degree of approval. As part of the change management process, it’s important to define who is the authority for each type of change.
    • Failure to do so can create bureaucratic bottlenecks if each change is held to an unnecessary high level of scrutiny, or unplanned outages may occur due to changes circumventing the formal approval process.
    • A balance must be met and defined to ensure the process is not bypassed or bottlenecked.

    Info-Tech Best Practice

    Define a list pre-approved changes and automate them (if possible) using your ITSM solution. This will save valuable time for more important changes in the queue.

    Example:

    Change CategoryChange Authority
    Pre-approved change Department head/manager
    Emergency change E-CAB
    Normal change – low and medium risk CAB
    Normal change – high risk CAB and CIO (for visibility)

    Example process: Normal Change – Change Initiation

    Change initiation allows for assurance that the request is in scope for change management and acts as a filter for out-of-scope changes to be redirected to the proper workflow. Initiation also assesses who may be assigned to the change and the proper category of the change, and results in an RFC to be populated before the change reaches the build and test phase.

    The image is a horizontal flow chart, depicting an example of a change process.

    The change trigger assessment is critical in the DevOps lifecycle. This can take a more formal role of a technical review board (TRB) or, with enough maturity, may be automated. Responsibilities such as deconfliction, dependency identification, calendar query, and authorization identification can be done early in the lifecycle to decrease or eliminate the burden on CAB.

    For the full process, refer to the Change Management Process Library.

    Example process: Normal Change – Technical Build and Test

    The technical build and test stage includes all technical prerequisites and testing needed for a change to pass before proceeding to approval and implementation. In addition to a technical review, a solution consisting of the implementation, rollback, communications, and training plan are also built and included in the RFC before passing it to the CAB.

    The image is a flowchart, showing the process for change during the technical build and test stage.

    For the full process, refer to the Change Management Process Library.

    Example process: Normal Change – Change Approval (CAB)

    Change approval can start with the Change Manager reviewing all incoming RFCs to filter them for completeness and check them for red flags before passing them to the CAB. This saves the CAB from discussing incomplete changes and allows the Change Manager to set a CAB agenda before the CAB meeting. If need be, change approval can also set vendor communications necessary for changes, as well as the final implementation date of the change. The CAB and Change Manager may follow up with the appropriate parties notifying them of the approval decision (accepted, rescheduled, or rejected).

    The image shows a flowchart illustrating the process for change approval.

    For the full process, refer to the Change Management Process Library.

    Example process: Normal Change – Change Implementation

    Changes should not end at implementation. Ensure you define post-implementation activities (documentation, communication, training etc.) and a post-implementation review in case the change does not go according to plan.

    The image is a flowchart, illustrating the work process for change implementation and post-implementation review.

    For the full process, refer to the Change Management Process Library.

    2.2.2 Create a Normal Change Process

    Input

    • Current SOP/workflow library

    Output

    • Normal change process

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Using the examples shown on the previous few slides, work as a group to determine the workflow for a normal change, with particular attention to the following sub-processes:
      1. Request
      2. Assessment
      3. Plan
      4. Approve
      5. Implementation and Post-Implementation Activities
    3. Optionally, you may create variations of the workflow for minor, medium, and major changes (e.g. there will be fewer authorizations for minor changes).
    4. For further documentation, you may choose to run the SIPOC activity for your CAB as outlined on this slide.
    5. Document the resulting workflows in the Change Management Process Library and section 11 of your Change Management SOP.

    Download the Change Management Process Library.

    Identify and convert low-risk normal changes to pre-approved once the process is established

    As your process matures, begin creating a list of normal changes that might qualify for pre-approval. The most potential for value in gains from change management comes from re-engineering and automating of high-volume changes. Pre-approved changes should save you time without threatening the live environment.

    IT should flag changes they would like pre-approved:

    • Once your change management process is firmly established, hold a meeting with all staff that make change requests and build changes.
    • Run a training session detailing the traits of pre-approved changes and ask these individuals to identify changes that might qualify.
    • These changes should be submitted to the Change Manager and reviewed, with the help of the CAB, to decide whether or not they qualify for pre-approval.

    Pre-approved changes are not exempt from due diligence:

    • Once a change is designated as pre-approved, the deployment team should create and compile all relevant documentation:
      • An RFC detailing the change, dependencies, risk, and impact.
      • Detailed procedures and required resources.
      • Implementation and backout plan.
      • Test results.
    • When templating the RFC for pre-approved changes, aim to write the documentation as if another SME were to implement it. This reduces confusion, especially if there’s staff turnover.
    • The CAB must approve, sign off, and keep a record of all documents.
    • Pre-approved changes must still be documented and recorded in the CMDB and change log after each deployment.

    Info-Tech Best Practice

    At the beginning of a change management process, there should be few active pre-approved changes. However, prior to launch, you may have IT flag changes for conversion.

    Example process: Pre-Approved Change Process

    The image shows two horizontal flow charts, the first labelled Pre-Approval of Recurring RFC, and the second labelled Implementation of Child RFC.

    For the full process, refer to the Change Management Process Library.

    Review the pre-approved change list regularly to ensure the list of changes are still low-risk and repeatable.

    IT environments change. Don’t be caught by surprise.

    • Changes which were once low-risk and repeatable may cause unforeseen incidents if they are not reviewed regularly.
    • Dependencies change as the IT environment changes. Ensure that the changes on the pre-approved change list are still low-risk and repeatable, and that the documentation is up to date.
    • If dependencies have changed, then move the change back to the normal category for reassessment. It may be redesignated as a pre-approved change once the documentation is updated.

    Info-Tech Best Practice

    Other reasons for moving a pre-approved change back to the normal category is if the change led to an incident during implementation or if there was an issue during implementation.

    Seek new pre-approved change submissions. → Re-evaluate the pre-approved change list every 4-6 months.

    The image shows a horizontal flow chart, depicting the process for a pre-approved change list review.

    For the full process, refer to the Change Management Process Library.

    2.2.3 Create a Pre-Approved Change Process

    Input

    • Current SOP/workflow library

    Output

    • Pre-approved change process

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Using the examples shown on the previous few slides, work as a group to determine the workflow for a pre-approved change, with particular attention to the following sub-processes:
      1. Request
      2. Assessment
      3. Plan
      4. Approve
    3. Document the process of a converting a normal change to pre-approved. Include the steps from flagging a low-risk change to creating the related RFC template.
    4. Document the resulting workflows in the Change Management Process Library and sections 4.2 and 13 of your Change Management SOP.

    Reserve the emergency designation for real emergencies

    • Emergency changes have one of the following triggers:
      • A critical incident is impacting user productivity.
      • An imminent critical incident will impact user productivity.
    • Unless a critical incident is being resolved or prevented, the change should be categorized as normal.
    • An emergency change differs from a normal change in the following key aspects:
      • An emergency change is required to recover from a major outage – there must be a validated service desk critical incident ticket.
      • An urgent business requirement is not an “emergency.”
      • An RFC is created after the change is implemented and the outage is over.
      • A review by the full CAB occurs after the change is implemented.
      • The first responder and/or the person implementing the change may not be the subject matter expert for that system.
    • In all cases, an RFC must be created and the change must be reviewed by the full CAB. The review should occur within two business days of the event.
    Sample ChangeQuick CheckEmergency?
    Install the latest critical patches from the vendor. Are the patches required to resolve or prevent an imminent critical incident? No
    A virus or worm invades the network and a patch is needed to eliminate the threat. Is the patch required to resolve or prevent an imminent critical incident? Yes

    Info-Tech Best Practice

    Change requesters should be made aware that senior management will be informed if an emergency RFC is submitted inappropriately. Emergency requests trigger urgent CAB meetings, are riskier to deploy, and delay other changes waiting in the queue.

    Example process: Emergency Change Process

    The image is a flowchart depicting the process for an emergency change process

    When building your emergency change process, have your E-CAB protocol from activity 2.1.4 handy.

    • Focus on the following requirements for an emergency process:
      • E-CAB protocol and scope: Does the SME need authorization first before working on the change or can the SME proceed if no E-CAB members respond?
      • Documentation and communication to stakeholders and CAB after the emergency change is completed.
      • Input from incident management.

    For the full process, refer to the Change Management Process Library.

    2.2.4 Create an Emergency Change Process

    Input

    • Current SOP/workflow library

    Output

    • Emergency change process

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Using the examples shown on the previous few slides, work as a group to determine the workflow for an emergency change, with particular attention to the following sub-processes:
      1. Request
      2. Assessment
      3. Plan
      4. Approve
    3. Ensure that the E-CAB protocol from activity 2.1.4 is considered when building your process.
    4. Document the resulting workflows in the Change Management Process Library and section 12 of your Change Management SOP.

    Case Study (part 2 of 4)

    Intel implemented a robust change management process.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    Intel identified 37 different change processes and 25 change management systems of record with little integration.

    Software and infrastructure groups were also very siloed, and this no doubt contributed to the high number of changes that caused outages.

    The task was simple: standards needed to be put in place and communication had to improve.

    Results

    Once process ownership was assigned and the role of the Change Manager and CAB clarified, it was a simple task to streamline and simplify processes among groups.

    Intel designed a new, unified change management workflow that all groups would adopt.

    Automation was also brought into play to improve how RFCs were generated and submitted.

    Phase 3

    Define the RFC and Post-Implementation Activities

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define the RFC and Post-Implementation Activities

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following activities:

    • Design the RFC
    • Establish Post-Implementation Activities

    This phase involves the following participants:

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board

    Step 3.1

    Design the RFC

    Activities

    3.1.1 Evaluate Your Existing RFC Process

    3.1.2 Build the RFC Form

    Define the RFC and Post-Implementation Activities

    Step 3.1: Design the RFC

    Step 3.2: Establish Post-Implementation Activities

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • A full RFC template and process that compliments the workflows for the three change categories

    A request for change (RFC) should be submitted for every non-standard change

    An RFC should be submitted through the formal change management practice for every change that is not a standard, pre-approved change (a change which does not require submission to the change management practice).

    • The RFC should contain all the information required to approve a change. Some information will be recorded when the change request is first initiated, but not everything will be known at that time.
    • Further information can be added as the change progresses through its lifecycle.
    • The level of detail that goes into the RFC will vary depending on the type of change, the size, and the likely impact of the change.
    • Other details of the change may be recorded in other documents and referenced in the RFC.

    Info-Tech Insight

    Keep the RFC form simple, especially when first implementing change management, to encourage the adoption of and compliance with the process.

    RFCs should contain the following information, at a minimum:

    1. Contact information for requester
    2. Description of change
    3. References to external documentation
    4. Items to be changed, reason for the change, and impact of both implementing and not implementing the change
    5. Change type and category
    6. Priority and risk assessment
    7. Predicted time frame, resources, and cost
    8. Backout or remediation plan
    9. Proposed approvers
    10. Scheduled implementation time
    11. Communications plan and post-implementation review

    3.1.1 Evaluate Your Existing RFC Process

    Input

    • Current RFC form or stock ITSM RFC
    • Current SOP (if available)

    Output

    • List of changes to the current RFC form and RFC process

    Materials

    Participants

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. If the organization is already using an RFC form, review it as a group now and discuss its contents:
      • Does this RFC provide adequate information for the Change Manager and/or CAB to review?
      • Should any additional fields be added?
    2. Show the participants Info-Tech’s Request for Change Form Template and compare it to the one the organization is currently using.
    3. As a group, finalize an RFC table of contents that will be used to formalize a new or improved RFC.
    4. Decide which fields should be filled out by the requester before the initial RFC is submitted to the Change Manager:
      • Many sections of the RFC are relevant for change assessment and review. What information does the Change Manager need when they first receive a request?
      • The Change Manager needs enough information to ensure that the change is in scope and has been properly categorized.
    5. Decide how the RFC form should be submitted and reviewed; this can be documented in section 5 of your Change Management SOP.

    Download the Request for Change Form Template.

    Design the RFC to encourage process buy-in

    • When building the RFC, split the form up into sections that follow the normal workflow (e.g. Intake, Assessment and Build, Approval, Implementation/PIR). This way the form walks the requester through what needs to be filled and when.
    • Revisit the form periodically and solicit feedback to continually improve the user experience. If there’s information missing on the RFC that the CAB would like to know, add the fields. If there are sections that are not used or not needed for documentation, remove them.
    • Make sure the user experience surrounding your RFC form is a top priority – make it accessible, otherwise change requesters simply will not use it.
    • Take advantage of your ITSM’s dropdown lists, automated notifications, CMDB integrations, and auto-generated fields to ease the process of filling the RFC

    Draft:

    • Change requester
    • Requested date of deployment
    • Change risk: low/medium/high
    • Risk assessment
    • Description of change
    • Reason for change
    • Change components

    Technical Build:

    • Assess change:
      • Dependencies
      • Business impact
      • SLA impact
      • Required resources
      • Query the CMS
    • Plan and test changes:
      • Test plan
      • Test results
      • Implementation plan
      • Backout plan
      • Backout plan test results

    CAB:

    • Approve and schedule changes:
      • Final CAB review
      • Communications plan

    Complete:

    • Deploy changes:
      • Post-implementation review

    Designing your RFC: RFC draft

    • Change requester – link your change module to the active directory to pull the change requester’s contact information automatically to save time.
    • A requested date of deployment gives approvers information on timeline and can be used to query the change calendar for possible conflicts
    • Information about risk assessment based on impact and likelihood questionnaires are quick to fill out but provide a lot of information to the CAB. The risk assessment may not be complete at the draft stage but can be updated as the change is built. Ensure this field is up-to- date before it reaches CAB.
    • If you have a technical review stage where changes are directed to the proper workflow and resourcing is assessed, the description, reason, and change components are high-level descriptors of the change that will aid in discovery and lining the change up with the business vision (viability from both a technical and business standpoint).
    • Change requester
    • Requested date of deployment
    • Change Risk: low/medium/high
    • Risk assessment
    • Description of change
    • Reason for change
    • Change components

    Use the RFC to point to documentation already gathered in the DevOps lifecycle to cut down on unnecessary manual work while maintaining compliance.

    Designing your RFC: technical build

    • Dependencies and CMDB query, along with the proposed implementation date, are included to aid in calendar deconfliction and change scheduling. If there’s a conflict, it’s easier to reschedule the proposed change early in the lifecycle.
    • Business, SLA impact, and required resources can be tracked to provide the CAB with information on the business resources required. This can also be used to prioritize the change if conflicts arise.
    • Implementation, test, and backout plans must be included and assessed to increase the probability that a change will be implemented without failure. It’s also useful in the case of PIRs to determine root causes of change-related incidents.
    • Assess change:
      • Dependencies
      • Business impact
      • SLA impact
      • Required resources
      • Query the CMS
    • Plan and test changes:
      • Test plan
      • Test results
      • Implementation plan
      • Backout plan
      • Backout plan test results

    Designing your RFC: approval and deployment

    • Documenting approval, rejection, and rescheduling gives the change requester the go-ahead to proceed with the change, rationale on why it was prioritized lower than another change (rescheduled), or rationale on rejection.
    • Communications plans for appropriate stakeholders can also be modified and forwarded to the communications team (e.g. service desk or business system owners) before deployment.
    • Post-implementation activities and reviews can be conducted if need be before a change is closed. The PIR, if filled out, should then be appended to any subsequent changes of the same nature to avoid making the same mistake twice.
    • Approve and schedule changes:
      • Final CAB review
      • Communications plan
    • Deploy changes:
      • Post-implementation review

    Standardize the request for change protocol

    1. Submission Standards
      • Electronic submission will make it easier for CAB members to review the documentation.
      • As the change goes through the assessment, plan, and test phase, new documentation (assessments, backout plans, test results, etc.) can be attached to the digital RFC for review by CAB members prior to the CAB meeting.
      • Change management software won’t be necessary to facilitate the RFC submission and review; a content repository system, such as SharePoint, will suffice.
    2. Designate the first control point
      • All RFCs should be submitted to a single point of contact.
      • Ideally, the Change Manager or Technical Review Board should fill this role.
      • Whoever is tasked with this role needs the subject matter expertise to ensure that the change has been categorized correctly, to reject out-of-scope requests, or to ask that missing information be provided before the RFC moves through the full change management practice.

    Info-Tech Best Practice

    Technical and SME contacts should be noted in each RFC so they can be easily consulted during the RFC review.

    3.1.2 Build the RFC Form

    Input

    • Current RFC form or stock ITSM RFC
    • Current SOP (if available)

    Output

    • List of changes to the current RFC and RFC process

    Materials

    Participants

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Use Info-Tech’s Request for Change Form Template as a basis for your RFC form.
    2. Use this template to standardize your change request process and ensure that the appropriate information is documented effectively each time a request is made. The change requester and Change Manager should consolidate all information associated with a given change request in this form. This form will be submitted by the change requester and reviewed by the Change Manager.

    Case Study (part 3 of 4)

    Intel implemented automated RFC form generation.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    One of the crucial factors that was impacting Intel’s change management efficiency was a cumbersome RFC process.

    A lack of RFC usage was contributing to increased ad hoc changes being put through the CAB, and rescheduled changes were quite high.

    Additionally, ad hoc changes were also contributing heavily to unscheduled downtime within the organization.

    Results

    Intel designed and implemented an automated RFC form generator to encourage end users to increase RFC usage.

    As we’ve seen with RFC form design, the UX/UI of the form needs to be top notch, otherwise end users will simply circumvent the process. This will contribute to the problems you are seeking to correct.

    Thanks to increased RFC usage, Intel decreased emergency changes by 50% and reduced change-caused unscheduled downtime by 82%.

    Step 3.2

    Establish Post-Implementation Activities

    Activities

    3.2.1 Determine When the CAB Would Reject Tested Changes

    3.2.2 Create a Post-Implementation Activity Checklist

    Define the RFC and Post-Implementation Activities

    Step 3.1: Design RFC

    Step 3.2: Establish Post-Implementation Activities

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • A formalized post-implementation process for continual improvement

    Why would the CAB reject a change that has been properly assessed and tested?

    Possible reasons the CAB would reject a change include:

    • The product being changed is approaching its end of life.
    • The change is too costly.
    • The timing of the change conflicts with other changes.
    • There could be compliance issues.
    • The change is actually a project.
    • The risk is too high.
    • There could be regulatory issues.
    • The peripherals (test, backout, communication, and training plans) are incomplete.

    Info-Tech Best Practice

    Many reasons for rejection (listed above) can be caught early on in the process during the technical review or change build portion of the change. The earlier you catch these reasons for rejection, the less wasted effort there will be per change.

    Sample RFCReason for CAP Rejection
    There was a request for an update to a system that a legacy application depends on and only a specific area of the business was aware of the dependency. The CAB rejects it due to the downstream impact.
    There was a request for an update to a non-supported application, and the vendor was asking for a premium support contract that is very costly. It’s too expensive to implement, despite the need for it. The CAB will wait for an upgrade to a new application.
    There was a request to update application functionality to a beta release. The risk outweighs the business benefits.

    Determine When the CAB Would Reject Tested Changes

    Input

    • Current SOP (if available)

    Output

    • List of reasons to reject tested changes

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Projector
    • Markers/pens
    • Laptop with ITSM admin access
    • Project Summary Template

    Participants

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board

    Avoid hand-offs to ensure a smooth implementation process

    The implementation phase is the final checkpoint before releasing the new change into your live environment. Once the final checks have been made to the change, it’s paramount that teams work together to transition the change effectively rather than doing an abrupt hand-off. This could cause a potential outage.

    1.

    • Deployment resources identified, allocated, and scheduled
    • Documentation complete
    • Support team trained
    • Users trained
    • Business sign-off
    • Target systems identified and ready to receive changes
    • Target systems available for installation maintenance window scheduled
    • Technical checks:
      • Disk space available
      • Pre-requisites met
      • Components/Services to be updated are stopped
      • All users disconnected
    • Download Info-Tech’sChange Management Pre-Implementation Checklist

    Implement change →

    2.

    1. Verification – once the change has been implemented, verify that all requirements are fulfilled.
    2. Review – ensure that all affected systems and applications are operating as predicted. Update change log.
    3. Transition – a crucial phase of implementation that’s often overlooked. Once the change implementation is complete from a technical point of view, it’s imperative that the team involved with the change inform and train the group responsible for managing the new change.

    Create a backout plan to reduce the risk of a failed change

    Every change process needs to plan for the potential for failure and how to address it effectively. Change management’s solution to this problem is a backout plan.

    A backout plan needs to contain a record of the steps that need to be taken to restore the live environment back to its previous state and maintain business continuity. A good backout plan asks the following questions:

    1. How will failure be determined? Who will make the determination to back out of a change be made and when?
    2. Do we fix on fail or do we rollback to the previous configuration?
    3. Is the service desk aware of the impending change? Do they have proper training?

    Notify the Service Desk

    • Notify the Service Desk about backout plan initiation.

    Disable Access

    • Disable user access to affected system(s).

    Conduct Checks

    • Conduct checks to all affected components.

    Enable User Access

    • Enable user access to affected systems.

    Notify the Service Desk

    • Notify the service desk that the backout plan was successful.

    Info-Tech Best Practice

    As part of the backout plan, consider the turnback point in the change window. That is, the point within the change window where you still have time to fully back out of the change.

    Ensure the following post-implementation review activities are completed

    Service Catalog

    Update the service catalog with new information as a result of the implemented change.

    CMDB

    Update new dependencies present as a result of the new change.

    Asset DB

    Add notes about any assets newly affected by changes.

    Architecture Map

    Update your map based on the new change.

    Technical Documentation

    Update your technical documentation to reflect the changes present because of the new change.

    Training Documentation

    Update your training documentation to reflect any information about how users interact with the change.

    Use a post-implementation review process to promote continual improvement

    The post-implementation review (PIR) is the most neglected change management activity.

    • All changes should be reviewed to understand the reason behind them, appropriateness, and recommendations for next steps.
    • The Change Manager manages the completion of information PIRs and invites RFC originators to present their findings and document the lessons learned.

    Info-Tech Best Practice

    Review PIR reports at CAB meetings to highlight the root causes of issues, action items to close identified gaps, and back-up documentation required. Attach the PIR report to the relevant RFC to prevent similar changes from facing the same issues in the future.

    1. Why do a post-implementation review?
      • Changes that don’t fail but don’t perform well are rarely reviewed.
      • Changes may fail subtly and still need review.
      • Changes that cause serious failures (i.e. unplanned downtime) receive analysis that is unnecessarily in-depth.
    2. What are the benefits?
      • A proactive, post-implementation review actually uses less resources than reactionary change reviews.
      • Root-cause analysis of failed changes, no matter what the impact.
      • Insight into changes that took longer than projected.
      • Identification of previously unidentified risks affecting changes.

    Determine the strategy for your PIR to establish a standardized process

    Capture the details of your PIR process in a table similar to the one below.

    Frequency Part of weekly review (IT team meeting)
    Participants
    • Change Manager
    • Originator
    • SME/supervisor/impacted team(s)

    Categories under review

    Current deviations and action items from previous PIR:

    • Complete
    • Partially complete
    • Complete, late
    • Change failed, rollback succeeded
    • Change failed, rollback failed
    • Major deviation from implementation plan
    Output
    • Root cause or failure or deviation
    • External factors
    • Remediation focus areas
    • Remediation timeline (follow-up at appropriate time)
    Controls
    • Reviewed at next CAB meeting
    • RFC close is dependent on completion of PIR
    • Share with the rest of the technical team
    • Lessons learned stored in the knowledgebase and attached to RFC for easy search of past issues.

    3.2.2 Create a Post-Implementation Activity Checklist

    Input

    • Current SOP (if available)

    Output

    • List of reasons to reject tested changes

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Brainstorm duties to perform following the deployment of a change. Below is a sample list:
      • Example:
        • Was the deployment successful?
          • If no, was the backout plan executed successfully?
        • List change-related incidents
        • Change assessment
          • Missed dependencies
          • Inaccurate business impact
          • Incorrect SLA impact
          • Inaccurate resources
            • Time
            • Staff
            • Hardware
        • System testing
        • Integration testing
        • User acceptance testing
        • No backout plan
        • Backout plan failure
        • Deployment issues
    3. Record your results in the Change Management Post-Implementation Checklist.

    Download the Change Management Post-Implementation Checklist

    Case Study

    Microsoft used post-implementation review activities to mitigate the risk of a critical Azure outage.

    Industry: Technology

    Source: Jason Zander, Microsoft

    Challenge

    In November 2014, Microsoft deployed a change intended to improve Azure storage performance by reducing CPU footprint of the Azure Table Front-Ends.

    The deployment method was an incremental approach called “flighting,” where software and configuration deployments are deployed incrementally to Azure infrastructure in small batches.

    Unfortunately, this software deployment caused a service interruption in multiple regions.

    Solution

    Before the software was deployed, Microsoft engineers followed proper protocol by testing the proposed update. All test results pointed to a successful implementation.

    Unfortunately, engineers pushed the change out to the entire infrastructure instead of adhering to the traditional flighting protocol.

    Additionally, the configuration switch was incorrectly enabled for the Azure Blob storage Front-Ends.

    A combination of the two mistakes exposed a bug that caused the outage.

    Results

    Thankfully, Microsoft had a backout plan. Within 30 minutes, the change was rolled back on a global scale.

    It was determined that policy enforcement was not integrated across the deployment system. An update to the system shifted the process of policy enforcement from human-based decisions and protocol to automation via the deployment platform.

    Defined PIR activities enabled Microsoft to take swift action against the outage and mitigate the risk of a serious outage.

    Phase 4

    Measure, Manage, and Maintain

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define RFC and Post-Implementation Activities

    3.1 Design RFC

    3.2 Establish post-implementation activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following activities:

    • Identify Metrics and Build the Change Calendar
    • Implement the Project

    This phase involves the following participants:

    • CIO/IT Director
    • IT Managers
    • Change Manager

    Step 4.1

    Identify Metrics and Build the Change Calendar

    Activities

    4.1.1 Create an Outline for Your Change Calendar

    4.1.2 Determine Metrics, Key Performance Indicators (KPIs), and Critical Success Factors (CSFs)

    4.1.3 Track and Record Metrics Using the Change Management Metrics Tool

    Measure, Manage, and Maintain

    Step 4.1: Identify Metrics and Build the Change Calendar

    Step 4.2: Implement the Project

    This step involves the following participants:

    • CIO/IT Director
    • IT Managers
    • Change Manager

    Outcomes of this step

    • Clear definitions of change calendar content
    • Guidelines for change calendar scheduling
    • Defined metrics to measure the success of change management with associated reports, KPIs, and CSFs

    Enforce a standard method of prioritizing and scheduling changes

    The impact of not deploying the change and the benefit of deploying it should determine its priority.

    Risk of Not Deploying

    • What is the urgency of the change?
    • What is the risk to the organization if the change is not deployed right away?
    • Will there be any lost productivity, service disruptions, or missed critical business opportunities?
      • Timing
        • Does the proposed timing work with the approved changes already on the change schedule?
        • Has the change been clash checked so there are no potential conflicts over services or resources?
      • Once prioritized, a final deployment date should be set by the CAB. Check the change calendar first to avoid conflicts.

    Positive Impact of Deployment

    • What benefits will be realized once the change is deployed?
    • How significant is the opportunity that triggered the change?
    • Will the change lead to a positive business outcome (e.g. increased sales)?

    “The one who has more clout or authority is usually the one who gets changes scheduled in the time frame they desire, but you should really be evaluating the impact to the organization. We looked at the risk to the business of not doing the change, and that’s a good way of determining the criticality and urgency of that change.” – Joseph Sgandurra, Director, Service Delivery, Navantis

    Info-Tech Insight

    Avoid a culture where powerful stakeholders are able to push change deployment on an ad hoc basis. Give the CAB the full authority to make approval decisions based on urgency, impact, cost, and availability of resources.

    Develop a change schedule to formalize the planning process

    A change calendar will help the CAB schedule changes more effectively and increase visibility into upcoming changes across the organization.

    1. Establish change windows in a consistent change schedule:
      • Compile a list of business units that would benefit from a change.
      • Look for conflicts in the change schedule.
      • Avoid scheduling two or more major business units in a day.
      • Consider clients when building your change windows and change schedule.
    2. Gain commitments from key participants:
      • These individuals can confirm if there are any unusual or cyclical business requirements that will impact the schedule.
    3. Properly control your change calendar to improve change efficiency:
      • Look at the proposed start and end times: Are they sensible? Does the implementation window leave time for anything going wrong or needing to roll back the change?
      • Special considerations: Are there special circumstances that need to be considered? Ask the business if you don’t know.
      • The key principle is to have a sufficient window available for implementing changes so you only need to set up calendar freezes for sound business or technical reasons.

    Our mantra is to put it on the calendar. Even if it’s a preapproved change and doesn’t need a vote, having it on the calendar helps with visibility. The calendar is the one-stop shop for scheduling and identifying change dependencies.“ – Wil Clark, Director of Service and Performance Management, University of North Texas Systems

    Provide clear definitions of what goes on the change calendar and who’s responsible

    Roles

    • The Change Manager will be responsible for creating and maintaining a change calendar.
    • Only the Change Manager can physically alter the calendar by adding a new change after the CAB has agreed upon a deployment date.
    • All other CAB members, IT support staff, and other impacted stakeholders should have access to the calendar on a read-only basis to prevent people from making unauthorized changes to deployment dates.

    Inputs

    • Freeze periods for individual business departments/applications (e.g. finance month-end periods, HR payroll cycle, etc. – all to be investigated).
    • Maintenance windows and planned outage periods.
    • Project schedules, and upcoming major/medium changes.
    • Holidays.
    • Business hours (some departments work 9-5, others work different hours or in different time zones, and user acceptance testing may require business users to be available).

    Guidelines

    • Business-defined freeze periods are the top priority.
    • No major or medium normal changes should occur during the week between Christmas and New Year’s Day.
    • Vendor SLA support hours are the preferred time for implementing changes.
    • The vacation calendar for IT will be considered for major changes.
    • Change priority: High > Medium > Low.
    • Minor changes and preapproved changes have the same priority and will be decided on a case-by-case basis.

    The change calendar is a critical pre-requisite to change management in DevOps. Use the calendar to be proactive with proposed implementation dates and deconfliction before the change is finished.

    4.1.1 Create Guidelines for Your Change Calendar

    Input

    • Current change calendar guidelines

    Output

    • Change calendar inputs and schedule checklist

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Gather representatives from the change management team.
      • Example:
        • The change calendar/schedule includes:
          • Approved and scheduled normal changes.
          • Scheduled project work.
          • Scheduled maintenance windows.
          • Change freeze periods with affected users noted:
            • Daily/weekly freeze periods.
            • Monthly freeze periods.
            • Annual freeze periods.
            • Other critical business events.
    2. Create a checklist to run through before each change is scheduled:
      • Check the schedule and assess resource availability:
        • Will user productivity be impacted?
        • Are there available resources (people and systems) to implement the change?
        • Is the vendor available? Is there a significant cost attached to pushing change deployment before the regularly scheduled refresh?
        • Are there dependencies? Does the deployment of one change depend on the earlier deployment of another?
    3. Record your results in your Project Summary Template.

    Start measuring the success of your change management project using three key metrics

    Number of change-related incidents that occur each month

    • Each month, record the number of incidents that can be directly linked to a change. This can be done using an ITSM tool or manually by service desk staff.
    • This is a key success metric: if you are not tracking change-related incidents yet, start doing so as soon as possible. This is the metric that the CIO and business stakeholders will be most interested in because it impacts users directly.

    Number of unauthorized changes applied each month

    • Each month, record the number of changes applied without approval. This is the best way to measure adherence to the process.
    • If this number decreases, it demonstrates a reduction in risk, as more changes are formally assessed and approved before being deployed.

    Percentage of emergency changes

    • Each month, compare the number of emergency change requests to the total number of change requests.
    • Change requesters often designate changes as emergencies as a way of bypassing the process.
    • A reduction in emergency changes demonstrates that your process is operating smoothly and reduces the risk of deploying changes that have not been properly tested.

    Info-Tech Insight

    Start simple. Metrics can be difficult to tackle if you’re starting from scratch. While implementing your change management practice, use these three metrics as a starting point, since they correlate well with the success of change management overall. The following few slides provide more insight into creating metrics for your change process.

    If you want more insight into your change process, measure the progress of each step in change management with metrics

    Improve

    • Number of repeat failures (i.e. making the same mistake twice)
    • Number of changes converted to pre-approved
    • Number of changes converted from pre-approved back to normal

    Request

    • What percentage of change requests have errors or lack appropriate support?
    • What percentage of change requests are actually projects, service requests, or operational tasks?
    • What percentage of changes have been requested before (i.e. documented)?

    Assess

    • What percentage of change requests are out of scope?
    • What percentage of changes have been requested before (i.e. documented)?
    • What are the percentages of changes by category (normal, pre-approved, emergency)?

    Plan

    • What percentage of change requests are reviewed by the CAB that should have been pre-approved or emergency (i.e. what percentage of changes are in the wrong category)?

    Approve

    • Number of changes broken down by department (business unit/IT department to be used in making core/optional CAB membership more efficient)
    • Number of workflows that can be automated

    Implement

    • Number of changes completed on schedule
    • Number of changes rolled back
    • What percentage of changes caused an incident?

    Use metrics to inform project KPIs and CSFs

    Leverage the metrics from the last slide and convert them to data communicable to IT, management, and leadership

    • To provide value, metrics and measurements must be actionable. What actions can be taken as a result of the data being presented?
    • If the metrics are not actionable, there is no value and you should question the use of the metric.
    • Data points in isolation are mostly meaningless to inform action. Observe trends in your metrics to inform your decisions.
    • Using a framework to develop measurements and metrics provides a defined methodology that enables a mapping of base measurements through CSFs.
    • Establishing the relationship increases the value that measurements provide.

    Purposely use SDLC and change lifecycle metrics to find bottlenecks and automation candidates.

    Metrics:

    Metrics are easily measured datapoints that can be pulled from your change management tool. Examples: Number of changes implemented, number of changes without incident.

    KPIs:

    Key Performance Indicators are metrics presented in a way that is easily digestible by stakeholders in IT. Examples: Change efficiency, quality of changes.

    CSFs:

    Critical Success Factors are measures of the business success of change management taken by correlating the CSF with multiple KPIs. Examples: consistent and efficient change management process, a change process mapped to business needs

    List in-scope metrics and reports and align them to benefits

    Metric/Report (by team)Benefit
    Total number of RFCs and percentages by category (pre-approved, normal, emergency, escalated support, expedited)
    • Understand change management activity
    • Tracking maturity growth
    • Identifying “hot spots”
    Pre-approved change list (and additions/removals from the list) Workload and process streamlining (i.e. reduce “red tape” wherever possible)
    Average time between RFC lifecycle stages (by service/application) Advance planning for proposed changes
    Number of changes by service/application/hardware class
    • Identifying weaknesses in the architecture
    • Vendor-specific TCO calculations
    Change triggers Business- vs. IT-initiated change
    Number of RFCs by lifecycle stage Workload planning
    List of incidents related to changes Visible failures of the CM process
    Percentage of RFCs with a tested backout/validation plan Completeness of change planning
    List of expedited changes Spotlighting poor planning and reducing the need for this category going forward (“The Hall of Shame”)
    CAB approval rate Change coordinator alignment with CAB priorities – low approval rate indicates need to tighten gatekeeping by the change coordinator
    Calendar of changes Planning

    4.1.2 Determine Metrics, Key Performance Indicators (KPIs), and Critical Success Factors (CSFs)

    Input

    • Current metrics

    Output

    • List of trackable metrics, KPIs and CSFs

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Draw three tables for metrics, KPIs, and CSFs.
    2. Starting with the CSF table, fill in all relevant CSFs that your group wishes to track and measure.
    3. Next, work to determine relevant KPIs correlated with the CSFs and metrics needed to measure the KPIs. Use the tables included below (taken from section 14 of the Change Management SOP) to guide the process.
    4. Record the results in the tables in section 14 of your Change Management SOP.
    5. Decide on where and when to review the metrics to discuss your change management strategy. Designate and owner and record in the RACI and Communications section of your Change Management SOP.
    Ref #Metric

    M1

    Number of changes implemented for a time period
    M2 Number of changes successfully implemented for a time period
    M3 Number of changes implemented causing incidents
    M4 Number of accepted known errors when change is implemented
    M5 Total days for a change build (specific to each change)
    M6 Number of changes rescheduled
    M7 Number of training questions received following a change
    Ref#KPIProduct
    K1 Successful changes for a period of time (approach 100%) M2 / M1 x 100%
    K2 Changes causing incidents (approach 0%) M3 / M1 x 100%
    K3 Average days to implement a change ΣM5 / M1
    K4 Change efficiency (approach 100%) [1 - (M6 / M1)] x 100%
    K5 Quality of changes being implemented (approach 100%) [1 - (M4 / M1)] x 100%
    K6 Change training efficiency (approach 100%) [1 - (M7 / M1)] x 100%
    Ref#CSFIndicator
    C1 Successful change management process producing quality changes K1, K5
    C2 Consistent efficient change process K4, K6
    C3 Change process maps to business needs K5, K6

    Measure changes in selected metrics to evaluate success

    Once you have implemented a standardized change management practice, your team’s goal should be to improve the process, year over year.

    • After a process change has been implemented, it’s important to regularly monitor and evaluate the CSFs, KPIs, and metrics you chose to evaluate. Examine whether the process change you implemented has actually resolved the issue or achieved the goal of the critical success factor.
    • Establish a schedule for regularly reviewing the key metrics. Assess changes in those metrics and determine progress toward reaching objectives.
    • In addition to reviewing CSFs, KPIs, and metrics, check in with the release management team and end users to measure their perceptions of the change management process once an appropriate amount of time has passed.
    • Ensure that metrics are telling the whole story and that reporting is honest in order to be informative.

    Outcomes of standardizing change management should include:

    1. Improved efficiency, effectiveness, and quality of changes.
    2. Changes and processes are more aligned with the business needs and strategy.
    3. Improved maturity of change processes.

    Info-Tech Best Practice

    Make sure you’re measuring the right things and considering all sources of information. It’s very easy to put yourself in a position where you’re congratulating yourselves for improving on a specific metric such as number of releases per month, but satisfaction remains low.

    4.1.3 Track and Record Metrics Using the Change Management Metrics Tool

    Input

    • Current metrics

    Output

    • List of trackable metrics, KPIs and CSFs to be observed over the length of a year

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)

    Tracking the progress of metrics is paramount to the success of any change management process. Use Info-Tech’s Change Management Metrics Tool to record metrics and track your progress. This tool is intended to be a substitute for organizations who do not have the capability to track change-related metrics in their ITSM tool.

    1. Input metrics from the previous activity to track over the course of a year.
    2. To record your metrics, open the tool and go to tab 2. The tool is currently primed to record and track five metrics. If you need more than that, you can edit the list in the hidden calculations tab.
    3. To see the progress of your metrics, move to tab 3 to view a dashboard of all metrics in the tool.

    Download the Change Management Metrics Tool

    Case Study

    A federal credit union was able to track maturity growth through the proper use of metrics.

    Industry: Federal Credit Union (anonymous)

    Source: Info-Tech Workshop

    Challenge

    At this federal credit union, the VP of IT wanted a tight set of metrics to engage with the business, communicate within IT, enable performance management of staff, and provide visibility into workload demands, among other requirements.

    The organization was suffering from “metrics fatigue,” with multiple reports being generated from all groups within IT, to the point that weekly/monthly reports were being seen as spam.

    Solution

    Stakeholders were provided with an overview of change management benefits and were asked to identify one key attribute that would be useful to their specific needs.

    Metrics were designed around the stakeholder needs, piloted with each stakeholder group, fine-tuned, and rolled out.

    Some metrics could not be automated off-the-shelf and were rolled out in a manual fashion. These metrics were subsequently automated and finally made available through a dashboard.

    Results

    The business received clear guidance regarding estimated times to implement changes across different elements of the environment.

    The IT managers were able to plan team workloads with visibility into upstream change activity.

    Architects were able to identify vendors and systems that were the leading source of instability.

    The VP of IT was able to track the maturity growth of the change management process and proactively engage with the business on identified hot spots.

    Step 4.2

    Implement the Project

    Activities

    4.2.1 Use a Communications Plan to Gain End User Buy-In

    4.2.2 Create a Project Roadmap to Track Your Implementation Progress

    Measure, Manage, and Maintain

    Step 4.1: Identify Metrics and Build the Change Calendar

    Step 3.2: Implement the Project

    This step involves the following participants:

    • CIO/IT Director
    • IT Managers
    • Change Manager

    Outcomes of this step

    • A communications plan for key messages to communicate to relevant stakeholders and audiences
    • A roadmap with assigned action items to implement change management

    Success of the new process will depend on introducing change and gaining acceptance

    Change management provides value by promptly evaluating and delivering changes required by the business and by minimizing disruption and rework caused by failed changes. Communication of your new change management process is key. If people do not understand the what and why, it will fail to provide the desired value.

    Info-Tech Best Practice

    Gather feedback from end users about the new process: if the process is too bureaucratic, end users are more likely to circumvent it.

    Main Challenges with Communication

    • Many people fail before they even start because they are buried in a mess created before they arrived – either because of a failed attempt to get change management implemented or due to a complicated system that has always existed.
    • Many systems are maintained because “that’s the way it’s always been done.”
    • Organizations don’t know where to start; they think change management is too complex a process.
    • Each group needs to follow the same procedure – groups often have their own processes, but if they don’t agree with one another, this could cause an outage.

    Educate affected stakeholders to prepare for organizational change

    An organizational change management plan should be part of your change management project.

    • Educate stakeholders about:
      • The process change (describe it in a way that the user can understand and is clear and concise).
        • IT changes will be handled in a standardized and repeatable fashion to minimize change-related incidents.
      • Who is impacted?
        • All users.
      • How are they impacted?
        • All change requests will be made using a standard form and will not be deployed until formal approval is received.
      • Change messaging.
        • How to communicate the change (benefits).
      • Learning and development – training your users on the change.
        • Develop and deliver training session on the Change Management SOP to familiarize users with this new method of handling IT change.

    Host a lunch-and-learn session

    • For the initial deployment, host a lunch-and-learn session to educate the business on the change management practice. Relevant stakeholders of affected departments should host it and cover the following topics:
    • What is change management (change management/change control)?
    • The value of change management.
    • What the Change Management SOP looks like.
    • Who is involved in the change management process (the CAB, etc.)?
    • What constitutes a pre-approved change and an emergency change?
    • An overview of the process, including how to avoid unauthorized changes.
    • Who should they contact in case of questions?

    Communicate the new process to all affected stakeholders

    Do not surprise users or support staff with changes. This will result in lost productivity and low satisfaction with IT services.

    • User groups and the business need to be given sufficient notice of an impending change.
    • This will allow them to make appropriate plans to accept the change, minimizing the impact of the change on productivity.
    • A communications plan will be documented in the RFC while the release is being built and tested.
    • It’s the responsibility of the change team to execute on the communications plan.

    Info-Tech Insight

    The success of change communication can be measured by monitoring the number of service desk tickets related to a change that was not communicated to users.

    Communication is crucial to the integration and overall implementation of your change management initiative. An effective communications plan will:

    • Gain support from management at the project proposal phase.
    • Create end-user buy-in once the program is set to launch.
    • Maintain the presence of the program throughout the business.
    • Instill ownership throughout the business from top-level management to new hires.

    Create your communications plan to anticipate challenges, remove obstacles, and ensure buy-in

    Management

    Technicians

    Business Stakeholders

    Provide separate communications to key stakeholder groups

    Why? What problems are you trying to solve?

    What? What processes will it affect (that will affect me)?

    Who? Who will be affected? Who do I go to if I have issues with the new process?

    When? When will this be happening? When will it affect me?

    How? How will these changes manifest themselves?

    Goal? What is the final goal? How will it benefit me?

    Info-Tech Insight

    Pay close attention to the medium of communication. For example, stakeholders on their feet all day would not be as receptive to an email communication compared to those who primarily work in front of a computer. Put yourself into various stakeholders’ shoes to craft a tailored communication of change management.

    4.2.1 Use a Communications Plan to Gain End User Buy-In

    Input

    • List of stakeholder groups for change management

    Output

    • Tailored communications plans for various stakeholder groups

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Using Info-Tech’s Change Management Communications Plan, identify key audiences or stakeholder groups that will be affected by the new change management practice.
    2. For each group requiring a communications plan, identify the following:
      • The benefits for that group of individuals.
      • The impact the change will have on them.
      • The best communication method(s) for them.
      • The time frame of the communication.
    3. Complete this information in a table like the one below:
    GroupBenefitsImpactMethodTimeline
    IT Standardized change process All changes must be reviewed and approved Poster campaign 6 months
    End Users Decreased wait time for changes Formal process for RFCs Lunch-and-learn sessions 3 months
    Business Reduced outages Increased involvement in planning and approvals Monthly reports 1 year
    1. Discuss the communications plan:
      • Will this plan ensure that users are given adequate opportunities to accept the changes being deployed?
      • Is the message appropriate for each audience? Is the format appropriate for each audience?
      • Does the communication include training where necessary to help users adopt any new functions/workflows being introduced?

    Download the Change Management Communications Plan

    Present your SOP to key stakeholders and obtain their approval

    Now that you have completed your Change Management SOP, the final step is to get sign-off from senior management to begin the rollout process.

    Know your audience:

    • Determine the service management stakeholders who will be included in the audience for your presentation.
    • You want your presentation to be succinct and hard hitting. Management’s time is tight and they will lose interest if you drag out the delivery.
    • Briefly speak about the need for more formal change management and emphasize the benefits of implementing a more formal process with a SOP.
    • Present your current state assessment results to provide context before presenting the SOP itself.
    • As with any other foundational activity, be prepared with some quick wins to gain executive attention.
    • Be prepared to review with both technical and less technical stakeholders.

    Info-Tech Insight

    The support of senior executive stakeholders is critical to the success of your SOP rollout. Try to wow them with project benefits and make sure they know about the risks/pain points.

    Download the Change Management Project Summary Template

    4.2.2 Create a Project Roadmap to Track Your Implementation Progress

    Input

    • List of implementation tasks

    Output

    • Roadmap and timeline for change management implementation

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Info-Tech’s Change Management Roadmap Tool helps you identify and prioritize tasks that need to be completed for the change management implementation project.
    2. Use this tool to identify each action item that will need to be completed as part of the change management initiative. Chart each action item, assign an owner, define the duration, and set a completion date.
    3. Use the resulting rocket diagram as a guide to task completion as you work toward your future state.

    Download the Change Management Roadmap Tool

    Case Study (part 4 of 4)

    Intel implemented a robust change management process.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    Intel had its new change management program in place and the early milestones planned, but one key challenge with any new project is communication.

    The company also needed to navigate the simplification of a previously complex process; end users could be familiar with any of the 37 different change processes or 25 different change management systems of record.

    Top-level buy-in was another concern.

    Results

    Intel first communicated the process changes by publishing the vision and strategy for the project with top management sponsorship.

    The CIO published all of the new change policies, which were supported by the Change Governance Council.

    Intel cited the reason for success as the designation of a Policy and Guidance Council – a group designed to own communication and enforcement of the new policies and processes put in place.

    Summary of Accomplishment

    Problem Solved

    You now have an outline of your new change management process. The hard work starts now for an effective implementation. Make use of the communications plan to socialize the new process with stakeholders and the roadmap to stay on track.

    Remember as you are starting your implementation to keep your documents flexible and treat them as “living documents.” You will likely need to tweak and refine the processware and templates several times to continually improve the process. Furthermore, don’t shy away from seeking feedback from your stakeholders to gain buy-in.

    Lastly, keep an eye on your progress with objective, data-driven metrics. Leverage the trends in your data to drive your decisions. Be sure to revisit the maturity assessment not only to measure and visualize your progress, but to gain insight into your next steps.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information.

    workshops@infotech.com

    1-888-670-8889

    Additional Support

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.

    Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic office in Toronto, Ontario, Canada to participate in an innovative onsite workshop.

    Contact your account representative for more information.

    workshops@infotech.com 1-888-670-8889

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.2 Complete a Change Management Maturity Assessment

    Run through the change management maturity assessment with tailored commentary for each action item outlining context and best practices.

    2.2.1 Plot the Process for a Normal Change

    Build a normal change process using Info-Tech’s Change Management Process Library template with an analyst helping you to right size the process for your organization.

    Related Info-Tech Research

    Standardize the Service Desk

    Improve customer service by driving consistency in your support approach and meeting SLAs.

    Stabilize Release and Deployment Management

    Maintain both speed and control while improving the quality of deployments and releases within the infrastructure team.

    Incident and Problem Management

    Don’t let persistent problems govern your department.

    Select Bibliography

    AXELOS Limited. ITIL Foundation: ITIL 4th edition. TSO, 2019, pp. 118–120.

    Behr, Kevin and George Spafford. The Visible Ops Handbook: Implementing ITIL in 4 Practical and Auditable Steps. IT Revolution Press. 2013.

    BMC. “ITIL Change Management.” BMC Software Canada, 22 December 2016.

    Brown, Vance. “Change Management: The Greatest ROI of ITIL.” Cherwell Service Management.

    Cisco. “Change Management: Best Practices.” Cisco, 10 March 2008.

    Grove, Daniel. “Case Study ITIL Change Management Intel Corporation.” PowerShow, 2005.

    ISACA. “COBIT 5: Enabling Processes.” ISACA, 2012.

    Jantti, M. and M. Kainulainen. “Exploring an IT Service Change Management Process: A Case Study.” ICDS 2011: The Fifth International Conference on Digital Society, 23 Feb. 2011.

    Murphy, Vawns. “How to Assess Changes.” The ITSM Review, 29 Jan. 2016.

    Nyo, Isabel. “Best Practices for Change Management in the Age of DevOps.” Atlassian Engineering, 12 May 2021.

    Phillips, Katherine W., Katie A. Liljenquist, and Margaret A. Neale. “Better Decisions Through Diversity.” Kellogg Insight, 1 Oct. 2010.

    Pink Elephant. “Best Practices for Change Management.” Pink Elephant, 2005.

    Sharwood, Simon. “Google broke its own cloud by doing two updates at once.” The Register, 24 Aug. 2016.

    SolarWinds. “How to Eliminate the No: 1 Cause of Network Downtime.” SolarWinds Tech Tips, 25 Apr. 2014.

    The Stationery Office. “ITIL Service Transition: 2011.” The Stationary Office, 29 July 2011.

    UCISA. “ITIL – A Guide to Change Management.” UCISA.

    Zander, Jason. “Final Root Cause Analysis and Improvement Areas: Nov 18 Azure Storage Service Interruption.” Microsoft Azure: Blog and Updates, 17 Dec. 2014.

    Appendix I: Expedited Changes

    Employ the expedited change to promote process adherence

    In many organizations, there are changes which may not fit into the three prescribed categories. The reason behind why the expedited category may be needed generally falls between two possibilities:

    1. External drivers dictate changes via mandates which may not fall within the normal change cycle. A CIO, judge, state/provincial mandate, or request from shared services pushes a change that does not fall within a normal change cycle. However, there is no imminent outage (therefore it is not an emergency). In this case, an expedited change can proceed. Communicate to the change requester that IT and the change build team will still do their best to implement the change without issue, but any extra risk of implementing this expedited change (compared to an normal change) will be absorbed by the change requester.
    2. The change requester did not prepare for the change adequately. This is common if a new change process is being established (and stakeholders are still adapting to the process). Change requesters or the change build team may request the change to be done by a certain date that does not fall within the normal change cycle, or they simply did not give the CAB enough time to vet the change. In this case, you may use the expedited category as a metric (or a “Hall of Shame” example). If you identify a department or individual that frequently request expedited changes, use the expedited category as a means to educate them about the normal change to discourage the behavior moving forward.

    Two possible ways to build an expedited change category”

    1. Build the category similar to an emergency change. In this case, one difference would be the time allotted to fully obtain authorization of the change from the E-CAB and business owner before implementing the change (as opposed to the emergency change workflow).
    2. Have the expedited change reflect the normal change workflow. In this case, all the same steps of the normal change workflow are followed except for expedited timelines between processes. This may include holding an impromptu CAB meeting to authorize the change.

    Example process: Expedited Change Process

    The image is a flowchart, showing the process for Expedited Change.

    For the full process, refer to the Change Management Process Library.

    Appendix II: Optimize IT Change Management in a DevOps Environment

    Change Management cannot be ignored because you are DevOps or Agile

    But it can be right-sized.

    The core tenets of change management still apply no matter the type of development environment an organization has. Changes in any environment carry risk of degrading functionality, and must therefore be vetted. However, the amount of work and rigor put into different stages of the change life cycle can be altered depending on the maturity of the development workflows. The following are several stage gates for change management that MUST be considered if you are a DevOps or Agile shop:

    • Intake assessment (separation of changes from projects, service requests, operational tasks)
      • Within a DevOps or Agile environment, many of the application changes will come directly from the SDLC and projects going live. It does not mean a change must go through CAB, but leveraging the pre-approved category allows for an organization to stick to development lifecycles without being heavily bogged down by change bureaucracy.
    • Technical review
      • Leveraging automation, release contingencies, and the current SDLC documentation to decrease change risk allows for various changes to be designated as pre-approved.
    • Authorization
      • Define the authorization and dependencies of a change early in the lifecycle to gain authorization and necessary signoffs.
    • Documentation/communication
      • Documentation and communication are post-implementation activities that cannot be ignored. If documentation is required throughout the SDLC, then design the RFC to point to the correct documentation instead of duplicating information.

    "Understand that process is hard and finding a solution that fits every need can be tricky. With this change management process we do not try to solve every corner case so much as create a framework by which best judgement can be used to ensure maximum availability of our platforms and services while still complying with our regulatory requirements and making positive changes that will delight our customers.“ -IT Director, Information Cybersecurity Organization

    Five principals for implementing change in DevOps

    Follow these best practices to make sure your requirements are solid:

    People

    The core differences between an Agile or DevOps transition and a traditional approach are the restructuring and the team behind it. As a result, the stakeholders of change management must be onboard for the process to work. This is the most difficult problem to solve if it’s an issue, but open avenues of feedback for a process build is a start.

    DevOps Lifecycles

    • Plan the dev lifecycle so people can’t skirt it. Ensure the process has automated checks so that it’s more work to skirt the system than it is to follow it. Make the right process the process of least resistance.
    • Plan changes from the start to ensure that cross-dependencies are identified early and that the proposed implementation date is deconflicted and visible to other change requesters and change stakeholders.

    Automation

    Automation comes in many forms and is well documented in many development workflows. Having automated signoffs for QA/security checks and stakeholders/cross dependency owner sign offs may not fully replace the CAB but can ease the burden on discussions before implementation.

    Contingencies

    Canary releases, phased releases, dark releases, and toggles are all options you can employ to reduce risk during a release. Furthermore, building in contingencies to the test/rollback plan decreases the risk of the change by decreasing the factor of likelihood.

    Continually Improve

    Building change from the ground up doesn’t meant the process has to be fully fledged before launch. Iterative improvements are possible before achieving an optimal state. Having the proper metrics on the pain points and bottlenecks in the process can identify areas for automation and improvement.

    Increasing the proportion of pre-approved changes

    Leverage the traditional change infrastructure to deploy changes quickly while keeping your risk low.

    • To designate a change as a pre-approved change it must have a low risk rating (based on impact and likelihood). Fortunately, many of the changes within the Agile framework are designed to be small and lower risk (at least within application development). Putting in the work ahead of time to document these changes, template RFCs, and document the dependencies for various changes allows for a shift in the proportion of pre-approved changes.
    • The designation of pre-approved changes is an ongoing process. This is not an overnight initiative. Measure the proportion of changes by category as a metric, setting goals and interim goals to shift the change proportion to a desired ratio.

    The image is a bar graph, with each bar having 3 colour-coded sections: Emergency, Normal, and Pre-Approved. The first bar is before, where the largest change category is Normal. The second bar is after, and the largest change category is Pre-Approved.

    Turn your CAB into a virtual one

    • The CAB does not have to fully disappear in a DevOps environment. If the SDLC is built in a way that authorizes changes through peer reviews and automated checks, by the time it’s deployed, the job of the CAB should have already been completed. Then the authorization stage-gate (traditionally, the CAB) shifts to earlier in the process, reducing the need for an actual CAB meeting. However, the change must still be communicated and documented, even if it’s a pre-approved change.
    • As the proportion of changes shifts from a high degree of normal changes to a high degree of pre-approved changes, the need for CAB meetings should decrease even further. As an end-state, you may reserve actual CAB meetings for high-profile changes (as defined by risk).
    • Lastly, change management does not disappear as a process. Periodic reviews of change management metrics and the pre-approved change list must still be completed.

    Initiate Digital Accessibility for IT

    • Buy Link or Shortcode: {j2store}520|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: Lead
    • Parent Category Link: /lead
    • Determining IT requirements (legal and business needs) is overwhelming.
    • Prioritizing people in the process is often overlooked.
    • Mandating changes instead of motivating change isn’t sustainable.

    Our Advice

    Critical Insight

    • Compliance is the minimum; the people and behavior changes are the harder part and have the largest impact on accessibility. Preparing for and building awareness of the reasons for accessibility makes the necessary behavior changes easier. Communicate, communicate, and communicate some more.
    • Accessibility is a practice, not a project. Therefore, accessibility is an organizational initiative, however, IT support is critical. Use change management theory to guide the new behaviors, processes, and thinking to adopt accessibility beyond compliance. Determining where to start is challenging, the tendency is to start with tech or compliance, however, starting with the people is key. It must be culture.
    • Think about accessibility like you think about IT security. Use IT security concepts that you and your team are already familiar with to initiate the accessibility program.

    Impact and Result

    • Take away the overwhelm that many feel when they hear ‘accessibility’ and make the steps for your organization approachable.
    • Clearly communicate why accessibility is critical and how it supports the organization’s key objectives and initiatives.
    • Understand your current state related to accessibility and identify areas for key initiatives to become part of the IT strategic roadmap.
    • Build your accessibility plan while prioritizing the necessary culture change
    • Use change management and communication practices to elicit the behavior shift needed to sustain accessibility.

    Initiate Digital Accessibility for IT Research & Tools

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

    1. Initiate Digital Accessibility for IT – Use this blueprint to narrow down the requirements for your organization and team while also clearly communicating why accessibility is critical and how it supports the organization’s key objectives and initiatives.

    A step-by-step approach to walk you through understanding the IT accessibility compliance requirements, building your roadmap, and communicating with your department. This storyboard will help you figure out what’s needed from IT to support the business and launch accessibility with your team.

    • Initiate Digital Accessibility for IT – Phases 1-2

    2. IT Manager Meeting Template – A clear, concise, and compelling communication to introduce accessibility for your organization to IT managers and to facilitate their participation in building the roadmap.

    Accessibility compliance can be overwhelming at first. Use this template to simplify the requirements for the IT managers and build out a roadmap.

    • IT Manager Meeting Template

    3. Accessibility Compliance Tracking Tool – This tool helps to decrease the overwhelm of accessibility compliance. Narrow down the list of controls needed to the ones that apply to your organization and to IT.

    Using the EN 301 549 V3.2.1 (2021-03) as a basis for digital accessibility conformance. Use this tool to build a priorities list of requirements that are applicable to your organization.

    • Accessibility Compliance Tracking Tool

    4. Departmental Meeting Template – Cascade your communication down to the IT department with this facilitation guide for introducing accessibility and the roadmap to the entire IT team.

    Use this pre-built slide deck to customize your accessibility communication to the IT department. It will help you build a shared vision for accessibility, a current state picture, and plans to build to the target future state.

    • Departmental Meeting Template
    • Accessibility Quick Cards

    Infographic

    Further reading

    Initiate Digital Accessibility For IT

    Make accessibility accessible.

    EXECUTIVE BRIEF

    Analyst Perspective

    Accessibility is a practice, not a project.

    Accessibility is an organizational directive; however, IT plays a fundamental role in its success. As business partners require support and expertise to assist with their accessibility requirements IT needs to be ready to respond. Even if your organization hasn't fully committed to an accessibility standard, you can proactively get ready by planting the seeds to change the culture. By building understanding and awareness of the significant impact technology has on accessibility, you can start to change behaviors.

    Implementing an accessibility program requires many considerations: legal requirements; international guidelines, such as Web Content Accessibility Guidelines (WCAG); training for staff; ongoing improvement; and collaborating with accessibility experts and people with disabilities. It can be overwhelming to know where to start. The tendency is to start with compliance, which is a fantastic first step. For a sustained program use, change management practices are needed to change behaviors and build inclusion for people with disabilities.

    15% of the world's population identify as having some form of a disability (not including others that are impacted, e.g. caretakers, family). Why would anyone want to alienate over 1.1 billion people?

    This is a picture of Heather Leier-Murray

    Heather Leier-Murray
    Senior Research Analyst, People & Leadership
    Info-Tech Research Group

    Disability is part of being human

    Merriam-Webster defines disability as a "physical, mental, cognitive, or developmental condition that impairs, interferes with, or limits a person's ability to engage in certain tasks or actions or participate in typical daily activities and interactions."(1)

    The World Health Organization points out that a crucial part of the definition of disability is that it's not just a health problem, but the environment impacts the experience and extent of disability. Inaccessibility creates barriers for full participation in society.(2)

    The likelihood of you experiencing a disability at some point in your life is very high, whether a physical or mental disability, seen or unseen, temporary or permanent, severe or mild.(2)

    Many people acquire disabilities as they age yet may not identify as "a person with a disability."3 Where life expectancies are over 70 years of age, 11.5% of life is spent living with a disability. (4)

    "Extreme personalization is becoming the primary difference in business success, and everyone wants to be a stakeholder in a company that provides processes, products, and services to employees and customers with equitable, person-centered experiences and allows for full participation where no one is left out."
    – Paudie Healy, CEO, Universal Access

    (1.) Merriam-Webster
    (2.) World Health Organization, 2022
    (3.) Digital Leaders, as cited in WAI, 2018
    (4.) Disabled World, as cited in WAI, 2018

    Executive Summary

    Your Challenge

    You know the push for accessibility is coming in your organization. You might even have a program started or approval to build one. But you're not sure if you and your team are ready to support and enable the organization on its accessibility journey.

    Common Obstacles

    Understanding where to start, where accessibility lives, and if or when you're done can be overwhelmingly difficult. Accessibility is an organizational initiative that IT enables; being able to support the organization requires a level of understanding of common obstacles.

    • Determining IT requirements (legal and business needs) is overwhelming.
    • Prioritizing people in the process is often overlooked.
    • Mandating changes instead of motivating change isn't sustainable.

    Info-Tech's Approach

    Prepare your people for accessibility and inclusion, even if your organization doesn't have a formal standard yet. Take your accessibility from mandate to movement, i.e. from Phase 1 - focused on compliance to Phase 2 - driven by experience for sustained change.

    • Use this blueprint to build your accessibility plan while prioritizing the necessary culture change.
    • Use change management and communication practices to elicit the behavior shift needed to sustain accessibility.

    Info-Tech Insight

    Accessibility is a practice, not a project. Therefore, accessibility is an organizational initiative; however, IT support is critical. Use change management theory to guide the new behaviors, processes, and thinking to adopt accessibility beyond compliance. Determining where to start is challenging because the tendency is to start with tech or compliance; however, starting with the people is key. It must be a change in organizational culture.

    Your challenge

    This research is designed to help IT leaders who are looking to:

    • Determine accessibility requirements of IT based on the business' needs and priorities, and the existing standards and regulations.
    • Prepare the IT leaders to implement and sustain accessibility and prepare for the behavior shift that is necessary.
    • Build the plan for IT as it pertains to accessibility, including a list of business needs and priorities, and prioritization of accessibility initiatives that IT is responsible for.
    • Ensure that accessibility is sustained in the IT department by following phase 2 of this blueprint on using change management and communication to impact behavior and change the culture.

    90% of companies claim to prioritize diversity.
    Source: Harvard Business Review, 2020

    Over 30% of those that claim to prioritize diversity are focused on compliance.
    Source: Harvard Business Review, 2022

    Accessibility is an organizational initiative

    Is IT ready and capable to enable it?

    • With increasing rates of lawsuits related to digital accessibility, more organizations are prioritizing initiatives to support increased accessibility. About 68% of Applause's survey respondents indicated that digital accessibility is a higher priority for their organization than it was last year.
    • This increase in priority will trickle into IT's tasks – get ahead and start working toward accessibility proactively so you're ready when business requests start coming in.

    A survey of nearly 1,800 respondents conducted by Applause found that:

    • 79% of respondents rated digital accessibility either a top priority or important for their organizations.
    • 42% of respondents indicated they have limited or no in-house expertise or resources to test accessibility.
      Source: Business Wire, May 2022

    How organizations prioritize digital accessibility

    • 43% rated accessibility as a top priority.
    • 36% rated accessibility as important.
    • Fewer than 5% rated accessibility as either low priority or not even on the radar.
    • More than 65% agreed or strongly agreed that accessibility is a higher priority than last year.

    Source: Angel Business Communications, 2022

    Why organizations address accessibility

    Top three reasons:

    1. 61% To comply with laws
    2. 62% To provide the best user experience
    3. 78% To include people with disabilities
      Source: Level Access, 2022

    Still, most businesses aren't meeting compliance standards. Even though legislation has been in place for over 30 years, a 2022 study by WebAIM of 1,000,000 homepages returned a 96.8% WCAG 2.0 failure rate.

    Source: Institute for Disability Research, Policy, and Practice, 2022

    Info-Tech's approach to Initiate Digital Accessibility

    An image of the Business Case for Accessibility

    The Info-Tech difference:

    1. Phase 1 of this blueprint gets you started and helps you build a plan to get you to the initial compliance driven maturity level. It's focused more on standards and regulations than on the user and employee experience.
    2. Phase 2 takes you further in maturity and helps you become experience driven in your efforts. It focuses on building your accessibility maturity into the developing, defined, and managed levels, as well as balancing mandate and movement of the accessibility maturity continuum.

    Determining conformance seems overwhelming

    Unfortunately, it's the easier part.

    • Focus on local regulations and what corporate leaders are setting as accessibility standards for the organization. This will narrow down the scope of what compliance looks like for your team.
    • Look to best practices like WCAG guidelines to ensure digital assets are accessible and usable for all users. WCAG's international guideline outlines principles that can also aid in scoping.
    • In phase 1 of this blueprint, use the Accessibility Compliance Tracking Toolto prioritize criteria and legislation for which IT is responsible.
    • Engage with business partners and other areas of the organization to figure out what is needed from IT. Accessibility is an organizational initiative; it shouldn't be on IT to figure it all out. Determine what your team is specifically responsible for before tackling it all.

    Motivating behavior change

    This is the hard part.

    Changing behaviors and mindsets is necessary to be experience driven and sustain accessibility.

    • Compliance is the minimum when it comes to accessibility, much like employment or labor regulations.
    • Making accessibility an organizational imperative is an iterative process. Managing the change is hard. People, culture, and behavior change matures accessibility from compliance driven to experience driven, increasing the benefits of accessibility.
    • Focus accessibility initiatives on improving the experience of everyone and improving engagement (customer and employee).
    • Being people focused and experience driven enables the organization to provide the best user experience and realize the benefits of accessibility.

    A picture of Jordyn Zimmerman

    "Compliance is the minimum. And when we look at web tech, people are still arguing about their positioning on the standards that need to be enforced in order to comply, forgetting that it isn't enough to comply."
    -- Jordyn Zimmerman, M.Ed., Director of Professional Development, The Nora Project, and Appointee, President's Committee for People with Intellectual Disabilities.

    This is an image of the Info-Tech Accessibility Maturity Framework Table.

    To see more on the Info-Tech Accessibility Maturity Framework:

    The Accessibility Business Case for IT

    Think of accessibility like you think of IT security

    Use IT security concepts to build your accessibility program.

    • Risk management: identify and prioritize accessibility risks and implement controls to mitigate those risks.
    • Compliance: use an IT security-style compliance approach to ensure that the accessibility program is compliant with the many accessibility regulations and standards.
    • Defense in depth: implement multiple layers of accessibility controls to address different types of accessibility risks and issues.
    • Response and recovery: quickly and effectively respond to accessibility issues, minimizing the potential impact on the organization and its users.
    • End-user education: educate end users about accessibility best practices, such as how to use assistive technologies and how to report accessibility issues.
    • Monitor and audit: use monitoring and auditing tools to ensure that accessibility remains over time and to identify and address issues that arise.
    • Collaboration: ensure the accessibility program is effective and addresses the needs of all users by collaborating with accessibility experts and people with disabilities.

    "As an organization matures, the impact of accessibility shifts. A good company will think of security at the very beginning. The same needs to be applied to accessibility thinking. At the peak of accessibility maturity an organization will have people with disabilities involved at the outset."
    -- Cam Beaudoin, Owner, Accelerated Accessibility

    This is a picture of Cam Beaudoin

    Info-Tech's methodology for Initiate Digital Accessibility for IT

    1. Planning IT's accessibility requirements

    2. Change enablement of accessibility

    Phase Steps

    1. Determine accessibility requirements of IT
    2. Build the IT accessibility plan
    1. Build awareness
    2. Support new behaviors
    3. Continuous reinforcement

    Phase Outcomes

    List of business needs and priorities related to accessibility

    IT accessibility requirements for conformance

    Assessment of state of accessibility conformance

    Prioritization of accessibility initiatives for IT

    Remediation plan for IT related to accessibility conformance

    Accessibility commitment statement

    Team understanding of what, why, and how

    Accessibility Quick Cards

    Sustainment plan

    Insight summary

    Overarching insight

    Accessibility is a practice, not a project. Therefore, accessibility is an organizational initiative; however, IT support is critical. Use change management theory to guide the new behaviors, processes, and thinking to adopt accessibility beyond compliance. Determining where to start is challenging. The tendency is to start with tech or compliance; however, starting with the people is key. It must be a change in organizational culture.

    Insight 1

    Compliance is the minimum; people and behavior changes are the hardest part and have the largest impact on accessibility. Preparing for and building awareness of the reasons for accessibility makes the necessary behavior changes easier. Communicate, communicate, and communicate some more.

    Insight 2

    Think about accessibility like you think about IT security. Use IT security concepts that you and your team are already familiar with to initiate the accessibility program.

    Insight 3

    People are learning a new way to behave and think; this can be an unsettling period. Patience, education, communication, support, and time are keys for success of the implementation of accessibility. There is a transition period needed; people will gradually change their practices and attitudes. Celebrate small successes as they arise.

    Insight 4

    Accessibility isn't a project as there is no end. Effective planning and continuous reinforcement of "the new way of doing things" is necessary to enable accessibility as the new status quo.

    Blueprint deliverables

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

    IT Manager Meeting Template

    IT Manager Meeting Template
    Use this meeting slide deck to work with IT managers to build out the accessibility remediation plan and commitment statement.

    Departmental Meeting Template

    Departmental Meeting Template
    Use this meeting slide deck to introduce the concept of accessibility and communicate IT goals and objectives.

    Accessibility Quick Cards

    Accessibility Quick Cards
    Using the Info-Tech IT Management and Governance Framework to identify key activities to help improve and maintain the accessibility of your organization and your core IT processes.

    Key deliverable:

    Accessibility Compliance Tracking Tool

    Accessibility Compliance Tracking Tool
    This tool will assist you in identifying remediation priorities applicable to your organization.

    Blueprint benefits

    IT Benefits

    Business Benefits

    • Know and understand your role and responsibility in accessibility implementation within the organization.
    • Provide effective support and excellent business service experience to internal stakeholders related to accessibility.
    • You will be set up to effectively support your team through the necessary behavior, process, and thinking changes.
    • Proactively prepare for accessibility requests that will be coming in.
    • Move beyond compliance to support your organization's sustainment of accessibility.
    • Don't lose out on a trillion-dollar market.
    • Don't miss opportunities to work with organizations because you're not accessible.
    • Enable and empower current employees with disabilities.
    • Minimize potential for negative brand reputation due to a lack of consideration for people with disabilities.
    • Decrease the risk of legal action being brought upon the organization.

    Measure the value of this blueprint

    Improve IT effectiveness and employee buy-in to change.

    Measuring the effectiveness of your program helps contribute to a culture of continuous improvement. Having consistent measures in place helps to inform decisions and enables your plan to be iterative to take advantage of emerging opportunities.

    Monitor employee engagement, overall stakeholder satisfaction with IT, and the overall end-customer satisfaction.

    Remember, accessibility is not a project – just because measures are positive does not mean your work is done.

    In phase 1 of this blueprint, we will help you establish metrics for your organization.
    In phase 2, we will help you develop a sustainment for achieving those metrics.

    A screenshot of the slide titled Establish Baseline Metrics.

    Suggested Metrics
    • Overall end-customer satisfaction
    • Requests for accommodation or assistive technology fulfilled
    • Employee engagement
    • Overall compliance status

    Info-Tech's IT Metrics Library

    Executive brief case study

    INDUSTRY: Technology


    SOURCE: Microsoft.com
    https://blogs.microsoft.com/accessibility/accessib...

    Microsoft

    Microsoft's accessibility journey starts with the goal of building a culture of accessibility and disability inclusion. They recognize that the starting point for the magnitude of organizational change is People.

    "Accessibility in Action Badge"

    Every employee at Microsoft is trained on accessibility to build understanding of why and how to be inclusive using accessibility. The program entails 90 minutes of virtual content.

    Microsoft treats accessibility and inclusion like a business, managing and measuring it to ensure sustained growth and success. They have worked over the years to bust systemic bias company-wide and to build a program with accessibility criteria that works for their business.

    Results

    The program Microsoft has built allows them to shift the accessibility lens earlier in their processes and listen to its users' needs. This allows them to continuously mature their accessibility program, which means continuously improving its users' experience.

    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 guided implementation (GI) on this topic look like?

    Phase 1 Phase 2

    Call #1: Discuss motivation for the initiative and foundational knowledge requirements.
    Call #2: Discuss stakeholder analysis and business needs of IT.

    Call #3: Identify current maturity and IT accountabilities.
    Call #4: Discuss introduction to senior IT leaders and drivers.
    Call #5: Discuss manager meeting outline and slides.

    Call #6: Review key messages and next steps to prepare for departmental meeting.
    Call #7: Discuss post-meetings next steps and timelines.

    Call #8: Review sustainment plan and plan next steps.

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

    A typical GI is eight to ten calls over the course of four to six months.

    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

    Understand Your Legislative Environment

    Understand Your Current State

    Define the
    IT Target State

    Build the IT Accessibility Plan

    Prepare for Change Enablement

    Next Steps and
    Wrap-Up

    Activities

    0.1 Make a list of the legislation you need to comply with
    0.2 Seek legal counsel or and/or professional services' input on compliance
    0.3 Complete the Accessibility Maturity Assessment
    0.4 Conduct stakeholder analysis

    1.1 Define the risks of inaction
    1.2 Review maturity assessment
    1.3 Conduct stakeholder focus group

    2.1 Define IT compliance accountabilities
    2.2 Define IT accessibility goals/objectives/ metrics
    2.3 Indicate the target-state maturity

    3.1 Assess current accessibility compliance and mitigation
    3.2 Decide on priorities
    3.3 Write an IT accessibility commitment statement

    4.1 Prepare the roadmap
    4.2 Prepare 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. Legislative requirements for your organization
    2. List of stakeholders
    3. Completed maturity assessment.
    1. Defined risks of inaction
    2. Stakeholder analysis completed with business needs identified
    1. IT accessibility goals/objectives
    2. Target maturity
    1. Accessibility Compliance Tracking Tool completed
    2. Accessibility commitment statement
    3. Current compliance and mitigation assessed
    1. IT accessibility roadmap
    2. Communication plan
    1. IT accessibility roadmap
    2. Communication plan

    Phase 1

    Planning IT's Accessibility Requirements.

    Phase 1

    Phase 2

    1.1 Determine accessibility requirements of IT

    1.2 Build IT accessibility plan

    2.1 Build awareness

    2.2 Support new behaviors

    2.3 Continuous reinforcement

    Initiate Digital Accessibility For IT

    This phase will walk you through the following activities:

    • Analyzing stakeholders to determine accessibility needs of business for IT.
    • Determining accessibility compliance requirements of IT.
    • Build a manager communication deck.
    • Assess current accessibility compliance and mitigation.
    • Prioritize and assign timelines.
    • Build a sunrise diagram to visualize your accessibility roadmap.
    • Write an IT accessibility commitment statement.

    This phase involves the following participants:

    • CIO
    • IT leadership team
    • Business partners in other areas of the organization (e.g., HR, finance, communications)

    Step 1.1

    Determine the accessibility requirements of IT.

    Activities

    1.1.1 Determine what the business needs from IT
    1.1.2 Complete the Accessibility Maturity Assessment (optional)
    1.1.3 Determine IT compliance requirements
    1.1.4 Define target state
    1.1.5 Create a list of goals and objectives
    1.1.6 Finalize key metrics
    1.1.7 Prepare a meeting for IT managers

    Prepare to support the organization with accessibility

    This step involves the following participants:

    • CIO
    • IT senior leaders
    • IT managers
    • Business partners in other areas of the organization (e.g., HR, finance, communications)

    Outcomes of this step

    • Stakeholder analysis with business needs listed
    • Defined target future state
    • List of goals and objectives
    • Key metrics
    • Communication deck for IT management rollout meeting

    While defining future state, consider your drivers

    The Info-Tech Accessibility Maturity Framework identifies three key strategic drivers: compliance, experience, and incorporation.

    • Over 30% of organizations are focused on compliance, according to a 2022 survey by Harvard Business Review and Slack's Future Forum. The survey asked more than 10,000 workers in six countries about their organizations' approach to diversity, equity, and inclusion (DEI).(2)
    • Even though 90% of companies claim to prioritize diversity, over 30% are focused on compliance.(1)

    1. Harvard Business Review, 2020
    2. Harvard Business Review, 2022

    31.6% of companies remain in the compliant stage where they are focused on DEI compliance and not on integrating DEI throughout the organization or on creating continual improvement, from Harvard Business Review 2022.

    Info-Tech accessibility maturity framework

    This is an image of Info-Tech's accessibility maturity framework

    Info-Tech Insight

    IT typically works through maturity frameworks from the bottom to the top, progressing at each level until they reach the end. When it comes to IT accessibility initiatives, being especially thorough, thoughtful, and collaborative is critical to success. This will mean spending more time in the Developing, Defined, and Managed levels of maturity rather than trying to reach Optimized as quickly as you can. This may feel contrary to what IT historically considers as a successful implementation.

    After initially ensuring your organization is compliant with regulations and standards, you will progress to building disciplined process and consistent standardized processes. Eventually you will build the ability for predictable process, and lastly, you'll optimize by continuously improving.

    Depending on the level of maturity you are trying to achieve, it could take months or even years to implement. The important thing to understand, however, is that accessibility work is never done.

    At all levels of the maturity framework, you must consider the interconnected aspects of people, process, and technology. However, as the organization progresses, the impact will shift from largely being focused on process and technology improvement to being focused on people.

    Align the benefits of program drivers to organizational goals or outcomes

    Although there will be various motivating factors, aligning the drivers of your accessibility program provides direction to the program. Connecting the advantages of program drivers to organizational goals builds the confidence of senior leaders and decision makers, increasing the continued commitment to invest in accessibility programming.

    This is an image of a table describing the maturity level; Description; Advantages, and Disadvantages for the three drivers: Compliance; Experience; and Incorporation.

    Accessibility maturity levels

    Driver Description Benefits
    Initial Compliance
    • Accessibility processes are mostly undocumented.
    • Accessibility happens mostly on a reactive or ad hoc basis.
    • No one is aware of who is responsible for accessibility or what role they play.
    • Heavily focused on complying with regulations and standards to decrease legal risk.
    • The organization is aware of the need for accessibility.
    • Legal risk is decreased.
    Developing Experience
    • The organization is starting to take steps to increase accessibility beyond compliance.
    • Lots of opportunity for improvement.
    • Defining and refining processes.
    • Working toward building a library of assistive tools.
    • Awareness of the need for accessibility is growing.
    • Process review for accessibility increases process efficiency through avoiding rework.
    Defined Experience
    • Accessibility processes are repeatable.
    • There is a tendency to resort to old habits under stress.
    • Tools are in place to facilitate accommodation.
    • Employees know accommodations are available to them.
    • Accessibility is becoming part of daily work.
    Managed Experience
    • Defined by effective accessibility controls, processes, and metrics.
    • Mostly anticipating preferences.
    • Roles and responsibilities are defined.
    • Disability is included as part of DEI.
    • Employees understand their role in accessibility.
    • Engagement is positively impacted.
    • Attraction and retention are positively impacted.
    Optimized Incorporation
    • Not the goal for every organization.
    • Characterized by a dramatic shift in organizational culture and a feeling of belonging.
    • Ongoing continuous improvement.
    • Seamless interactions with the organization for everyone.
    • Using feedback to inform future initiatives.
    • More likely to be innovative and inclusive, reach more people positively, and meet emerging global legal requirements.
    • Better equipped for success.

    Cheat sheet: Identify stakeholders

    Ask stakeholders, "Who else should I be talking to?" to discover additional stakeholders and ensure you don't miss anyone.

    Identify stakeholders through the following questions:

    Take a 360-degree view of potential internal and external stakeholders who might be impacted by the initiative.

    • Who in areas of influence will be adversely affected by potential environmental and social impacts of what you are doing?
    • At which stage will stakeholders be most affected (e.g. procurement, implementation, operations, decommissioning)?
    • Will other stakeholders emerge as the phases are started and completed?
    • Who is sponsoring the initiative?
    • Who benefits from the initiative?
    • Who is negatively impacted by the initiative?
    • Who can make approvals?
    • Who controls resources?
    • Who has specialist skills?
    • Who implements the changes?
    • Who are the owners, governors, customers, and suppliers of impacted capabilities or functions?
    • Executives
    • Peers
    • Direct reports
    • Partners
    • Customers
    • Subcontractors
    • Suppliers
    • Contractors
    • Lobby groups
    • Regulatory agencies

    Categorize your stakeholders with a stakeholder prioritization map

    A stakeholder prioritization map help teams categorize their stakeholders by their level of influence and ownership.

    There are four areas in the map, and the stakeholders within each area should be treated differently.

    This is an image of a quadrant analysis for mediators; players; spectators; and noisemakers.
    • Players – Players have a high interest in the initiative and high influence to affect 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.

    Strategize to engage stakeholders by type

    Each group of stakeholders draws attention and resources away from critical tasks.

    By properly identifying your stakeholder groups, you can develop corresponding actions to manage stakeholders in each group. This can dramatically reduce wasted effort trying to satisfy spectators and noisemakers while ensuring the needs of the mediators and players are met.

    Type Quadrant Actions
    Players High influence, high interest Actively Engage
    Keep them engaged through continuous involvement. Maintain their interest by demonstrating their value to its success.
    Mediators High influence, low interest Keep Satisfied
    They can be the game changers in groups of stakeholders. Turn them into supporters by gaining their confidence and trust, and include them in important decision-making steps. In turn, they can help you influence other stakeholders.
    Noisemakers Low influence, high interest Keep InformedTry 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 MonitorThey are followers. Keep them in the loop by providing clarity on objectives and status updates.

    1.1.1 Determine what the business needs from IT (stakeholder analysis)

    1.5 hours

    1. Consider all the potential individuals or groups of individuals who will be impacted or influence the accessibility needs of IT.
    2. List each of the stakeholders you identify. If in person, use sticky notes to define the target audiences. The individuals or group of individuals that potentially have needs from IT related to accessibility before, during, or after the initiative.
    3. As you list each stakeholder, consider how they perceive IT. This perception could impact how you choose to interact with them.
    4. For each stakeholder identified as potentially having a business need requirement for IT related to accessibility, conduct an analysis to understand their degree of influence or impact.
    5. Based on the stakeholder, the influence or impact of the business need can inform the interaction and prioritization of IT requirements.
    6. Update slide 9 of the IT Manager Meeting Template.

    Input

    • The change
    • Why the change is needed
    • Key stakeholder map from activity 2.1.1 of The Accessibility Business Case for IT (optional)

    Output

    • The degree of influence or impact each stakeholder has on accessibility needs from IT

    Materials

    • Stakeholder Management Analysis Tool (optional)

    Participants

    • CIO/ head of IT/ initiative lead
    • Business partners

    Proactively consider how accessibility could be received

    Think about the positive and negative reactions you could face about implementing accessibility.

    It's likely individuals will have an emotional reaction to change and may have different emotions at different times during the change process.
    Plan for how to leverage support and deal with resistance to change by assessing people's emotional responses:

    • What are possible questions, objections, suggestions, and concerns that might arise.
    • How will you respond to the possible questions and concerns.
    • Include proactive messaging in your communications that address possible objections.
    • Express an understanding for others point of views by re-positioning objections and suggestions as questions.

    This is an image of the 10 change chakras

    Determine your level of maturity

    Use Info-Tech's Accessibility Maturity Assessment.

    On the accessibility questionnaire, tab 2, choose the amount you agree or disagree with each statement. Answer the questions based on your knowledge of your current state organizationally.

    Once you've answered all the questions, see the results on the tab 3, Accessibility Results. You can see your overall maturity level and the maturity level for each of six dimensions that are necessary to increase the success of an accessibility program.

    Click through to tab 4, Recommendations, to see specific recommendations based on your results and proven research to progress through the maturity levels. Keep in mind that not all organizations will or should aspire to the "Optimize" maturity level.

    A series of three screenshots from the Accessibility Maturity Assessment

    Download the Accessibility Maturity Assessment

    1.1.2 Complete the Accessibility Maturity Assessment (optional)

    1. Download the Accessibility Maturity Assessment and save it with the date so that as you work on your accessibility program, you can reassess later and track your progress.
    2. Once you have saved the assessment, select the appropriate answer for each statement on tab 2, Accessibility Questions, based on your knowledge of the organization's approach.
    3. After reviewing all the accessibility statements, see your maturity level results on tab 3, Accessibility Results. Then see tab 4, Recommendations, for suggestions based on your answers.
    4. Document your accessibility maturity results on slides 12 and 13 of the IT Manager Meeting Template and slide 17 of the Departmental Meeting Template.
    5. Use the maturity assessment results in activity 1.1.3.

    Input

    • Assess your current state of accessibility by choosing all the statements that apply to your organization

    Output

    • Identified accessibility maturity level

    Materials

    • Accessibility Maturity Assessment
    • Accessibility Business Case Template

    Participants

    • Project leader/sponsor
    • IT leadership team

    1.1.3 Determine IT compliance responsibilities

    1-3 hours

    Before you start this activity, you may need to discuss with your organization's legal counsel to determine the legislation that applies to your organization.

    1. Determine which controls apply to your organization based on your knowledge of the organization goals, stakeholders, and accessibility maturity target. If you haven't determined your current and future state maturity model, use the Info-Tech resource from the Accessibility Business Case for IT(see previous two slides).
    2. Using the drop down in column J – Applies to My Org., select "Yes" or "No" for each control on each of the data entry tabs of the Accessibility Compliance Tracking Tool.
    3. For each control you have selected "Yes" for in column J, identify the control owner in column I.
    4. Update slide 10 in the IT Manager Meeting Template and slide 13 in the IT Departmental Meeting Template.

    Input

    • Local, regional, and/or global legislation and guidelines applicable to your organization
    • Organizational accessibility standard
    • Business needs list
    • Completed Accessibility Maturity Assessment (optional)

    Output

    • List of legislation and standards requirements that are narrowed based on organization need

    Materials

    • Accessibility Maturity Assessment
    • Accessibility Business Case Template

    Participants

    • CIO/ head of IT/ CAO/ initiative leader
    • Legal counsel

    Download the Accessibility Compliance Tracking Tool

    1.1.4 Conduct future-state analysis*

    Identify your target state of maturity.

      1. Provide the group with the accessibility maturity levels to review as well as the slides on the framework and drivers (slides 27-29).
      2. Ask the group to brainstorm pain points created by inaccessibility (e.g. challenges related to stakeholders, process issues).
      3. Next, discuss opportunities to be gained from improving these practices.
      4. Then, have everyone look at the accessibility maturity levels and, based on the descriptions, determine as a group the current maturity level of accessibility in your organization .
      5. Next, review the benefits listed on the accessibility maturity levels slide to those that you named in step 3 and determine which maturity level best describes your target state. Discuss as a group and agree on one desired maturity level to reach.
      6. Document your current and target states on slide 14 of the IT Manager Meeting Template.

    *Note: If you've completed the Accessibility Business Case for IT blueprint you may already have this information compiled. Refer to activities 2.1.2 and 2.1.3.

    Input

    • Accessibility maturity levels chart, framework, and drivers slides
    • Maturity level assessment results (optional)

    Output

    • Target maturity level documented

    Materials

    • Paper and pens
    • Handouts of maturity levels

    Participants

    • CIO
    • IT senior leaders

    What does a good goal look like?

    SMART is a common framework for setting effective goals. Make sure your goals satisfy these criteria to ensure you can achieve real results.

    Use the SMART framework to build effective goals.

    S

    Specific: Is the goal clear, concrete, and well defined?

    M

    Measurable: How will you know when the goal is met?

    A

    Achievable: Is the goal possible to achieve in a reasonable time?

    R

    Relevant: Does this goal align with your responsibilities and with departmental and organizational goals?

    T

    Time-based: Have you specified a time frame in which you aim to achieve the goal?

    1.1.5 Create a list of goals and objectives*

    Use the outcomes from activity 1.2.1.

    1. Using the information from activity 1.2.1, develop goals.
    2. Remember to use the SMART goal framework to build out each goal (see the previous slide for more information on SMART goals).
    3. Ensure each goal supports departmental and organizational goals to ensure it is meaningful.
    4. Document your goals and objectives on slides 6 and 9 in your IT Manager Meeting Template.

    *Note: If you've completed the Accessibility Business Case for IT blueprint you may already have this information compiled. Refer to activity 2.2.1.

    Input

    • Outcomes of activity 1.2.1
    • Organizational and departmental goals

    Output

    • Accessibility goals and objectives identified

    Materials

    • n/a

    Participants

    • CIO/ head of IT/ initiative lead
    • IT senior leaders

    Establish baseline metrics

    Baseline metrics will be improved through:

    1. Progressing through the accessibility maturity model.
    2. Addressing accessibility earlier in processes with input from people with disabilities.
    3. Motivating behavior changes and culture that supports accessibility and disability inclusion.
    4. Ensuring compliance with regulations and standards.
    5. Focusing on experience and building a disability inclusive culture.
    Metric Definition Calculation
    Overall end-customer satisfaction The percentage of end customers who are satisfied with the IT department. Number of end customers who are satisfied / Total number of end customers
    Requests for accommodation or assistive technology fulfilled The percentage of accommodation/assistive technology requests fulfilled by the IT department. Number of requests fulfilled / Total number of requests
    Employee engagement The percentage of employees who are engaged within an organization. Number of employees who are engaged / Total number of employees
    Overall compliance status The percentage of accessibility controls in place in the IT department. The number of compliance controls in place / Total number of applicable accessibility controls

    1.1.6 Finalize key metrics*

    Finalize key metrics the organization will use to measure accessibility success.

    1. Brainstorm how you will measure the success of each goal you identified in the previous activity, based on the benefits, challenges, and risks you previously identified.
    2. Write each of the metric ideas down and finalize three to five key metrics which you will track. The metrics you choose should relate to the key challenges or risks you have identified and match your desired maturity level and driver.
    3. Document your key metrics on slide 15 of your IT Manager Meeting Templateand slide 23 of the Departmental Meeting Template.

    Input

    • Accessibility challenges and benefits
    • Goals from activity 1.2.2

    Output

    • Three to five key metrics to track

    Materials

    • n/a

    Participants

    • IT leadership team
    • Project lead/sponsor

    *Note: If you've completed the Accessibility Business Case for IT blueprint you may already have this information compiled. Refer to activity 2.2.2.

    Use Info-Tech's template to communicate with IT managers

    Cascade messages down to IT managers next. This ensures they will have time to internalize the change before communicating it to others.

    Communicate with and build the accessibility plan with IT managers by customizing Info-Tech's IT Manager Meeting Template, which is designed to effectively convey your key messages. Tailor the template to suit your needs.

    It includes:

    • Project scope and objectives
    • Current state analysis
    • Compliance planning
    • Commitment statement drafting

    IT Manager Meeting Template

    Download the IT Manager Meeting Template

    Info-Tech Insight

    Preparing for and building awareness of the reasons for accessibility make the necessary behavior changes easier.

    1.1.7 Prepare a meeting for IT managers

    Now that you understand your current and desired accessibility maturity, the next step is to communicate with IT managers and begin planning your initiatives.

    Know your audience:

    1. Consider who will be included in your presentation audience.
    2. You want your presentation to be succinct and hard-hitting. Managers are under huge demands and time is tight, they will lose interest if you drag out the delivery.
    3. Contain the presentation and planning activities to no more than an afternoon. You want to ensure adequate time for questions and answers, as well as the planning activities necessary to inform the roll out to the larger IT department later.
    4. Schedule a meeting with the IT managers.

    Download the IT Manager Meeting Template

    Input

    • Activity results

    Output

    • A completed presentation to communicate your accessibility initiatives to IT managers

    Materials

    • IT Manager Meeting Template

    Participants

    • CIO/ head of IT/ initiative lead
    • IT senior leaders
    • IT managers

    Step 1.2

    Build the IT accessibility action plan.

    Activities

    1.2.1 Assess current accessibility compliance and mitigation

    1.2.2 Decide on your priorities

    1.2.3 Add priorities to the roadmap

    1.2.4 Write an IT accessibility commitment statement

    Planning IT's accessibility requirements

    This step involves the following participants:

    • CIO/ head of IT/ initiative lead
    • IT senior leaders
    • IT managers

    Outcomes of this step

    • Priority controls and mitigation list with identified control owners.
    • IT accessibility commitment statement.
    • Draft visualization of roadmap/sunrise diagram.

    Involve managers in assessing current compliance

    To know what work needs to happen you need to know what's already happening.

    Use the spreadsheet from activity 1.1.3 where you identified which controls apply to your organization.

    Have managers work in groups to identify which controls (of the applicable ones) are currently being met and which ones have an existing mitigation plan.

    Info-Tech Insight

    Based on EN 301 549 V3.2.1 (2021-03) as a basis for digital accessibility conformance. This tool is designed to assist you in building a priorities list of requirements that are applicable to your organization. EN 301 549 is currently the most robust accessibility regulation and encompasses other regulations within it. Although EN 301 549 is the European Standard, other countries are leaning on it as the standard they aspire to as well.

    This is an image of the Compliance Tracing Tool, with a green box drawn around the columns for Current Compliance, and Mitigation.

    1.2.1 Assess current accessibility compliance and mitigation

    1-3 hours

    1. Share the Accessibility Compliance Tracking Tool with the IT leaders and managers during the meeting with IT management that you scheduled in activity 1.1.7.
    2. Break into smaller groups (or if too small, continue as a single group):
      1. Divide up the controls between the small groups to work on assessing current compliance and mitigation plans.
      2. For each control that is identified as applying to your organization, identify if there currently is compliance by selecting "yes" from the drop-down. For controls where the organization is not compliant, select "no" and identify if there is a mitigation plan in place by selecting "yes" or "no" in column L.
      3. Use the comments column to add any pertinent information regarding the control.

    Input

    • List of IT compliance requirements applicable to the org. from activities 1.1.2 and 1.1.3

    Output

    • List of IT compliance requirements that have current compliance or mitigation plans

    Materials

    • Accessibility Compliance Tracking Tool

    Participants

    • CIO
    • IT senior leaders
    • IT managers

    Download the Accessibility Compliance Tracking Tool

    Involve managers in building accountability into the accessibility plan

    Building accountability into your compliance tracking will help ensure accessibility is prioritized.

    Use the spreadsheet from activity 1.3.1.

    Have managers work in the same groups to prioritize controls by assigning a quarterly timeline for compliance.

    An image of the Compliance Tracking tool, with the timeline column highlighted in green.

    1.2.2 Decide on your priorities

    1-3 hours

    1. In the same groups used in activity 1.2.1, prioritize the list of controls that have no compliance and no mitigation plan.
    2. As you work through the spreadsheet again, assign a timeline using the drop-down menu in column M for each control that applies to the organization and has no current compliance. Consider the following in your prioritization:
      1. Does the control impact customers or is it public-facing?
      2. What are the business needs related to accessibility?
      3. Does the team currently have the skills and knowledge needed to address the control?
      4. What future state accessibility maturity are you targeting?
    3. Be prepared to review with the larger group.

    Input

    • List from activity 1.2.1
    • Business needs from activity 1.1.1

    Output

    • List of IT compliance requirements with accountability timelines

    Materials

    • Accessibility Compliance Tracking Tool

    Participants

    • CIO
    • IT senior leaders
    • IT managers

    Download the Accessibility Compliance Tracking Tool

    Review your timeline

    Don't overload your team. Make sure the timelines assigned in the breakout groups make sense and are realistic.

    A screenshot of the Accessibility Compliance Dashboard.

    Download the Accessibility Compliance Tracking Tool

    Empty roadmap template

    An image of an empty Roadmap Template.

    1.2.3 Add priorities to the roadmap

    1 hour

    1. Using the information entered in the compliance tracking spreadsheet during activities 1.2.1 and 1.2.2, build a visual representation to capture your strategic initiatives over time, using themes and timelines. Consider group initiatives in four categories, technology, people, process, and other.
    2. Copy and paste the controls onto the roadmap from the Accessibility Compliance Tracking Toolto the desired time quadrant on the roadmap.
    3. Set your desired timelines by changing the Q1-Q4 blocks (set the timelines that make sense for your situation).

    Input

    • Output of activity 1.2.2
    • Roadmap template
    • Other departmental project plans and timelines

    Output

    • Visual roadmap of accessibility compliance controls

    Materials

    • n/a

    Participants

    • CIO
    • IT senior leaders
    • IT managers

    Communicate commitment

    Support people leaders in leading by example with an accessibility commitment statement.

    A commitment statement communicates why accessibility and disability inclusion are important and guides behaviors toward the ideal state. The statement will guide and align work, build accountability, and acknowledge the dedication of the leadership team to accessibility and disability inclusion. The statement will:

    • Publicly commit the team to fostering disability inclusivity.
    • Highlight related values and goals of the team or organization.
    • Set expectations.
    • Help build trust and increase feelings of belonging.
    • Connect the necessary changes (people, process, and technology related) to organization strategy.

    Take action! Writing the statement is only the first step. It takes more than words to build accessibility and make your work environment more disability inclusive.

    Info-Tech Insight

    Preparing for and building awareness of the reasons for accessibility make the necessary behavior changes easier.

    Sample accessibility commitment statements

    theScore

    "theScore strives to provide products and services in a way that respects the dignity and independence of persons with disabilities. We are committed to giving persons with disabilities the same opportunity to access our products and services and allowing them to benefit from the same services, in the same place and in a similar way as other clients. We are also committed to meeting the needs of persons with disabilities in a timely manner, and we will meet applicable legislative requirements for preventing and removing barriers."(1)

    Apple Canada

    "Apple Canada is committed to ensuring equal access and participation for people with disabilities. Apple Canada is committed to treating people with disabilities in a way that allows them to maintain their dignity and independence. Apple Canada believes in integration and is committed to meeting the needs of people with disabilities in a timely manner. Apple Canada will do so by removing and preventing barriers to accessibility and meeting accessibility requirements under the AODA and provincial and federal laws across Canada." (2)

    Google Canada

    "We are committed to meeting the accessibility needs of people with disabilities in a timely manner, and will do so by identifying, preventing and removing barriers to accessibility, and by meeting the accessibility requirements under the AODA." (3)

    Source 1: theScore
    Source 2: Apple Canada
    Source 3: Google Canada.

    1.2.4 Write an IT accessibility commitment statement

    45 minutes

    1. As a group, brainstorm the key reasons and necessity for disability inclusion and accessibility for your organization, and the drivers and behaviors required. Record the ideas brainstormed by the group.
    2. Break into smaller groups or pairs (or if too small, continue as a single group):
      • Each group uses the brainstormed ideas to draft an accessibility commitment statement.
    3. Each smaller group shares their statement with the larger group and receives feedback. Smaller groups redraft their statements based on the feedback.
    4. Post each redrafted statement and provide each person two dot stickers to place on the two statements that resonate the most with them.
    5. Using the two statements with the highest number of dot votes, write the final accessibility commitment statement.
    6. Add the commitment statement to slide 18 of the Departmental Meeting Template.

    Input

    • Business objectives
    • Risks related to accessibility
    • Target future accessibility maturity

    Output

    • IT accessibility commitment statement

    Materials

    • Whiteboard/flip charts
    • Dot stickers or other voting mechanism

    Participants

    • CIO
    • IT senior leaders
    • IT managers

    Phase 2

    Change Enablement for Accessibility.

    Phase 1

    Phase 2

    1.1 Determine accessibility requirements of IT

    1.2 Build IT accessibility plan

    2.1 Build awareness

    2.2 Support new behaviors

    2.3 Continuous reinforcement

    This phase will walk you through the following activities:

    • Clarifying key messages
    • IT department accessibility presentation
    • Establishing a frequency and timeframe for communications
    • Obtaining feedback
    • Sustainment plan

    This phase involves the following participants:

    • CIO
    • IT senior leaders
    • IT managers
    • Other key business stakeholders
    • Marketing and communications team

    Be experience driven

    Building awareness and focusing on experience helps move along the accessibility maturity framework. Shifting from mandate to movement.

    In this phase, start to move beyond compliance. Build the IT team's understanding of accessibility, disability inclusion, and their role.
    Communicate the following messages to your team:

    • The motivation behind the change.
    • The reasons for the change.
    • And encourage feedback.

    Info-Tech Accessibility Maturity Framework

    an image of the Info-Tech Accessibility Maturity Framework

    Info-Tech Insight

    Compliance is the minimum; the people and behavior changes are the harder part and have the largest impact on accessibility. Preparing for and building awareness of the reasons for accessibility make the necessary behavior changes easier. Communicate, communicate, and communicate some more.

    What is an organizational change?

    Before communicating, understand the degree of change.

    Incremental Change:

    • Changes made to improve current processes or systems (e.g. optimizing current technology).

    Transitional Change:

    • Changes that involve dismantling old systems and/or processes in favor of new ones (e.g. new product or services added).

    Transformational Change:

    • Significant change in organizational strategy or culture resulting in substantial shift in direction.

    Examples:

    • New or changed policy
    • Switching from on-premises to cloud-first infrastructure
    • Implementing ransomware risk controls
    • Implementing a Learning and Development Plan

    Examples:

    • Moving to an insourced or outsourced service desk
    • Developing a BI and analytics function
    • Integrating risk into organization risk
    • Developing a strategy (technology, architecture, security, data, service, infrastructure, application)

    Examples:

    • Organizational redesign
    • Acquisition or merger of another organization
    • Implementing a digital strategy
    • A new CEO or board taking over the organization's direction

    Consider the various impacts of the change

    Invest time at the start to develop a detailed understanding of the impact of the change. This will help to create a plan that will simplify the change and save time. Evaluate the impact from a people, process, and technology perspective.

    Leverage a design thinking principle: Empathize with the stakeholder – what will change?

    People

    Process Technology
    • Team structure
    • Reporting structure
    • Career paths
    • Job skills
    • Responsibilities
    • Company vision/mission
    • Number of FTE
    • Culture
    • Training required
    • Budget
    • Work location
    • Daily workflow
    • Working conditions
    • Work hours
    • Reward structure
    • Required number of completed tasks
    • Training required
    • Required tools
    • Required policies
    • Required systems
    • Training required

    Change depends on how well people understand it

    Help people internalize what they can do to make the organization more inclusive.

    Anticipate responses to change:

    1. Emotional reaction – different people require different styles of management to guide them through the change. Individual's may have different emotions at different times during the change process. The more easily you can identify persona characteristics, the better you can manage them.
    2. Level of impact – the higher level of change on an individual's day-to-day, the more difficult it will be to adjust to the change. The more impactful the change, the more time focused on people management.

    an image showing staff personas at different stages through the change process.

    Quickly assess the size of change by answering these questions:

    1. Will the change affect your staff's daily work?
    2. Is the change high urgency?
    3. Is there a change in reporting relationships?
    4. Is there a change in skills required for staff to be successful?
    5. Will the change modify entrenched cultural practices?
    6. Is there a change in the mission or vision of the role?

    If you answered "Yes" to two or more questions, the change is bigger than you think. Your staff will feel the impact.

    Ensure effective communication by focusing on four key elements

    1. Audience
    • Stakeholders (either groups or individuals) who will receive the communication.
  • Message
    • Information communicated to impacted stakeholders. Must be rooted in a purpose or intent.
  • Messenger
    • Person who delivers the communication to the audience. The communicator and owner are two different things.
  • Channel
    • Method or channel used to communicate to the audience.
  • Step 2.1

    Build awareness and define key messages for IT.

    This step involves the following participants:

    • IT leadership team
    • Marketing/communications (optional)

    Outcomes of this step

    • Key accessibility messages

    Determine the desired outcome of communicating within IT

    This phase is focused on communicating within IT. All communication has an overall goal. This outcome or purpose of communicating is often dependent on the type of influence the stakeholder wields within the organization as well as the type of impact the change will have on them. Consider each of the communication outcomes listed below.

    Communicating within IT

    • Obtain buy-in
    • Inform about the IT change
    • Create a training plan
    • Inform about department changes
    • Inform about organization changes
    • Inform about a crisis
    • Obtain adoption related to the change
    • Distribute key messages to change agents

    Departmental Meeting Template

    Departmental Meeting Template

    Accessibility Quick Cards

    Accessibility Quick Cards

    Establish and define key messages based on organizational objectives

    What are key messages?

    1. Key messages guide all internal communications to ensure they are consistent, unified, and straightforward.
    2. Distill key messages down from organizational objectives and use them to reinforce the organization's strategic direction. Key messages should inspire employees to act in a way that will help the organization reach its objectives.

    How to establish key messages

    Ground key messages in organizational strategy and culture. These should be the first places you look to determine the organization's key messages:

    • Refer to organizational strategy documents. What needs to be reinforced in internal communications to ensure the organization can achieve its strategy? This is a key message.
    • Look at the organization's values. How do values guide how work should be done? Do employees need to behave in a certain way or keep a certain value top of mind? This is a key message.

    The intent of key messages is to convey important information in a way that is relatable and memorable, to promote reinforcement, and ultimately, to drive action.

    Info-Tech Insight

    Empathizing with the audience is key to anticipating and addressing objections as well as identifying benefits. Customize messaging based on audience attributes such as work model (e.g. hybrid), anticipated objections, what's in it for me?, and specific expectations.

    2.1.1 Clarify the key messages

    30 minutes

    1. Brainstorm the key stakeholders and target audiences you will likely need to communicate with to sustain the accessibility initiative (depending on the size of your group, you might break into pairs or smaller groups and each work on one target audience).
    2. Based on the outcome expected from engaging the target audience in communications, define one to five key messages that should be expressed about accessibility.
    3. The key messages should highlight benefits anticipated, concerns anticipated, details about the change, plan of action, or next steps. The goal here is to ensure the target audience is included in the communication process.
    4. The key messages should be focused on how the target audience receives a consistent message, especially if different communication messengers are involved.
    5. Document the key messages on Tab 3 of the Communications Planner Tool.

    Download the Communications Planner Tool

    Input

    • The change
    • Target audience
    • Communication outcomes

    Output

    • Key messages to support a consistent approach

    Materials

    • Communications Planner Tool
    • Sticky notes
    • Whiteboard

    Participants

    • IT leadership team
    • Marketing/communications partner (optional)

    Step 2.2

    Support new behaviors.

    Activities

    2.2.1 Prepare for IT department meeting

    2.2.2 Practice delivery of your presentation

    2.2.3 Hold department meeting

    This step involves the following participants:

    • Entire IT department

    Outcomes of this step

    • IT departmental meeting slides
    • Accessibility quick cards
    • Task list of how each IT team will support the accessibility roadmap

    Key questions to answer with change communication

    To effectively communicate change, answer questions before they're asked, whenever possible. To do this, outline at each stage of the change process what's happening next for the audience, as well as answer other anticipated questions. Pair key questions with core messages.

    Examples of key questions by change stage include:

    The outline for each stage of the change process, showing what happens next.

    2.2.1 Prepare for the IT departmental meeting

    2 hours

    1. Download the IT Department Presentation Template and follow the instructions on each slide to update for your organization.
    2. Insert information on the current accessibility maturity level. If you haven't determined your current and future state maturity level, use the Info-Tech resource from The Accessibility Business Case for IT.
    3. Review the presentation with the information added.
    4. Consider what could be done to make the presentation better:
      1. Concise: Identify opportunities to remove unnecessary information.
      2. Clear: It uses only terms or language the target audience would understand.
      3. Relevant: It matters to the target audience and the problems they face.
      4. Consistent: The message could be repeated across audiences.
    5. Schedule a departmental meeting or add the presentation to an existing departmental meeting.

    Download the Departmental Presentation Template

    Input

    • Organizational accessibility risks
    • Accessibility maturity current state
    • Outputs from manager presentation
    • Key messages

    Output

    • Prepared presentation to introduce accessibility to the entire IT department

    Materials

    • Departmental Presentation Template

    Participants

    • CIO/ head of IT/ CAO/ initiative leader

    Hone presentation skills before meeting with key stakeholders

    Using voice and body

    Think about the message you are trying to convey and how your body can support that delivery. Hands, stance, frame – all have an impact on what might be conveyed.

    If you want your audience to lean in and be eager about your next point, consider using a pause or softer voice and volume.

    Be professional and confident

    State the main points of your presentation confidently. While this should be obvious, it is essential. Your audience should be able to clearly see that you believe the points you are stating.

    Present in a way that is genuine to you and your voice. Whether you have an energetic personality or calm and composed personality, the presentation should be authentic to you.

    Connect with your audience

    Look each member of the audience in the eye at least once during your presentation. Avoid looking at the ceiling, the back wall, or the floor. Your audience should feel engaged – this is essential to keeping their attention.

    Avoid reading from your slides. If there is text on a slide, paraphrase it while maintaining eye contact.

    Info-Tech Insight

    You are responsible for the response of your audience. If they aren't engaged, it is on you as the communicator.

    2.2.2 Practice delivery of your presentation and schedule department meeting

    45 minutes

    1. Take ten minutes to think about how to deliver your presentation. Where will you emphasize words, speak louder, softer, lean in, stand tall, make eye contact, etc.?
    2. Set a timer on your phone or watch. Record yourself if possible.
    3. Take a few seconds to center yourself and prepare to deliver your pitch.
    4. Practice delivery of your presentation out loud. Don't forget to use your body language and your voice to deliver.
    5. Listen to the recording. Are the ideas communicated correctly? Are you convinced?
    6. Review and repeat.

    Input

    • Presentation deck from activity 2.2.1
    • Best practices for delivering

    Output

    • An ability to deliver the presentation in a clear and concise manner that creates understanding

    Materials

    • Recorder
    • Timer

    Participants

    • CIO/ head of IT/ initiative leader

    2.2.3 Lead the IT department meeting

    1–2 hours

    1. Gather the IT department in a manner appropriate for your organization and facilitate the meeting prepared in activity 2.2.1.
    2. Within the meeting, capture all key action items and outcomes from the Quick Cards Development and Roadmap Planning.
    3. Following the meeting, review the quick cards that everyone built and share these with all IT participants.
    4. Update your sunrise diagram to include any initiatives that came up in the team meetings to support moving to experiential.

    Input

    • Presentation deck from activity 2.2.1

    Output

    • A shared understanding of accessibility at your organization and everyone's role
    • Area task list (including behavior change needs)
    • Accessibility quick cards

    Materials

    Participants

    • CIO/ head of IT/ initiative leader

    Download the Accessibility Quick Cards template

    Step 2.3

    Continuous reinforcement – keep the conversation going – sustain the change.

    Activities

    2.3.1 Establish a frequency and timeframe for communications

    2.3.2 Obtain feedback and improve

    2.3.3 Sustainment plan

    This step involves the following participants:

    • CIO/ head of IT/ initiative lead
    • IT leadership team

    Outcomes of this step

    • Assigned roles for ongoing program monitoring
    • Communication plan
    • Accessibility maturity monitoring plan
    • Program evaluation

    Communication is ongoing before, during, and after implementing a change initiative

    Just because you've rolled out the plan doesn't mean you can stop talking about it.

    An image of the five steps, with steps four and five highlighted in a green box. The five headings are: Identify and Prioritize; Prepare for initiative; Create a communication plan; Implement change; Sustain the desired outcome

    Don't forget: Cascade messages down through the organization to ensure those who need to deliver messages have time to internalize the change before communicating it to others. Include a mix of personal and organizational messages, but where possible, separate personal and organizational content into different communications.

    2.3.1 Establish a frequency and timeframe

    30 minutes

    1. For each row in Tab 3, determine how frequently that communication needs to take place and when that communication needs to be completed by.
      • Frequency: How often the communication will be delivered to the audience (e.g. one-time, monthly, as needed).
      • Timeframe: When the communication will be delivered to the audience (e.g. a planned period or a specific date).
    2. When selecting the timeframe, consider what dependencies need to take place prior to that communication. For example, IT employees should not be communicated with on anything that has not yet been approved by the CEO. Also consider when other communications might be taking place so that the message is not lost in the noise.
    3. For frequency, the only time that a communication needs to take place once is when presenting up to senior leaders of the organizations. And even then, it will sometimes require more than one conversation. Be mindful of this.

    Input

    • The change
    • Target audience
    • Communication outcome
    • Communication channel

    Output

    • Frequency and timeframe of the communication

    Materials

    • Communications Planner Tool
    • Sticky notes
    • Whiteboard

    Participants

    • Changes based on those who would be relevant to your initiative

    Download the Communications Planner Tool

    Ensure feedback mechanisms are in place

    Soliciting and acting on feedback involves employees in the decision-making process and demonstrates to them that their contributions matter.

    Make sure you have established feedback mechanisms to collect feedback on both the messages delivered and how they were delivered. Some ways to collect feedback include:

    • Evaluating intranet comments and interactions (e.g. likes, etc.) if this function is enabled.
    • Measuring comprehension and satisfaction through surveys and polls.
    • Looking for themes in the feedback and questions employees bring forward to managers during in-person briefings.

    Feedback Mechanisms:

    • CIO business vision survey
    • Engagement surveys
    • Focus groups
    • Suggestion boxes
    • Team meetings
    • Random sampling
    • Informal feedback
    • Direct feedback
    • Audience body language
    • Repeating the message back

    Gather feedback on plan and iterate

    Who

    The project team gathers feedback from:

    • As many members of impacted groups as possible, as it helps build broad buy-in for the plan.
    • All levels (e.g. frontline employees, managers, directors).

    What

    Gather feedback on:

    • How to implement tactics successfully.
    • The timing of implementation (helps inform the next slide).
    • The resources required (helps inform the next slide).
    • Potential unforeseen impacts, questions, and concerns.

    How

    • Use focus groups to gather feedback.
    • Adjust sustainment plan based on feedback.

    Use Info-Tech's Standard Focus Group Guide

    2.3.2 Obtain feedback and improve

    20 minutes

    1. Evenly distribute the number of rows in the communication plan to all those involved. Consider a metric that would help inform whether the communication outcome was achieved.
    2. For each row, identify a feedback mechanism (slide 75) that could be used to enable the collection and confirm a successful outcome.
    3. Come back as a group and validate the feedback mechanisms selected.
    4. The important aspect here is not just to measure if the desired outcome was achieved. If the desired outcome is not achieved, consider what you might do to change or enable better communication to that target audience.
    5. Every communication can be better. Feedback, whether it be tactical or strategic, will help inform methods to improve future communication activities.

    Input

    • Communication outcome
    • Target audience
    • Communication channel

    Output

    • A mechanism to measure communication feedback and adjust future communications when necessary

    Materials

    • Communications Planner Tool
    • Sticky notes
    • Whiteboard

    Participants

    • Changes based on those who would be relevant to your initiative

    Download the Communications Planner Tool

    Identify owners and assign other roles

    • Eventually there needs to be a hand off to leaders to sustain accessibility. Senior leaders continue to play the role of guide and facilitator, helping the team identify owners and transfer ownership.
    • Guide the team to work with owners to assign roles to other stakeholders. Spread responsibility across multiple people to avoid overload.

    R

    Responsible
    Carries out the work to implement the component (e.g. payroll manager).

    A

    Accountable
    Owner of the component and held accountable for its implementation (e.g. VP of finance).

    C

    Consulted
    Asked for feedback and input to modify sustainment tactics (e.g. sustainment planning team).

    I

    Informed
    Told about progress of implementation (senior leadership team, impacted staff).

    Identify required resources and secure budget

    Sustainment is critical to success of accessibility

    • This step (i.e. sustainment) often gets overlooked because leaders are focused on the implementation. It takes resources and budget to sustain a plan and change as well.
    • Resorting to the old way is more likely to occur when you don't plan to support sustainment with ongoing resources and budget that's required.

    Resources

    Identify resources required for sustainment components using metrics and input from implementation owners, subject matter experts, and frontline managers.

    For example:

    • Inventory
    • Collateral for communications
    • Technology
    • Physical space
    • People resources (FTE)

    Budget

    Estimate the budget required for resources based on past projects that used similar resources, and then estimate the time it will take until the change evolves into "business as usual" (e.g. 6 months, 12 months).

    Monitor accessibility maturity

    If you haven't already performed the Accessibility Maturity Assessment, complete it in the wake of the accessibility initiative to assess improvements and progress toward target future accessibility maturity.
    As your accessibility program starts to scale out over a range of projects, revisit the assessment on a quarterly or bi-annual basis to help focus your improvement efforts across the six accessibility categories.

    • Vendor relations
    • Products and services
    • Policy and process
    • Support and accommodation
    • Communication
    • People and culture

    Info-Tech Insight

    To drive continual improvement of your organizational accessibility and disability inclusion, continue to share progress, wins, challenges, feedback, and other accessibility related concerns with stakeholders. At the end of the day, IT's efforts to become a change leader and support organizational accessibility will come down to stakeholder perceptions based upon employee morale and benefits realized.

    Download the Accessibility Maturity Assessment

    An image of the maturity level bar graph.

    Evaluate and iterate the program on an ongoing basis

    1. Continually monitor the results of project metrics.
      • Track progress toward goals and metrics set at the beginning of the initiative to gauge the success of the program.
      • Analyze metrics at the work-unit level to highlight successes and challenges in accessibility and disability inclusion and the parameters around it for each impacted unit.
    2. Regularly gather feedback on program effectiveness using questions such as:
      • Has the desired culture been effectively communicated and leveraged, or has the culture changed?
      • Collect feedback through regular channels (e.g. manager check-ins) and set up a cadence to survey employees on the program (e.g. three months after rollout and then annually).
    3. Determine if changes to the program structure are needed.
      • Revisit the accessibility maturity framework and the compliance requirements of IT. Understand what is being experienced; it may be necessary to select a different target or adjust the parameters to mitigate the common challenges.
      • Evaluate the effectiveness of current internal processes to determine if the program would benefit from a dedicated resource.

    2.3.3 Sustain the change

    1. Identify who will own what pieces of the program going forward and assign roles to transition the initiative from implementation to the new normal.
    2. Continue to communicate with stakeholders about accessibility and disability inclusion initiatives, controls, and requirements.
    3. Identify required resources and secure any budget that will be needed to support the accessibility program. Think about employee training, consulting needs, assistive technology requirements, human resources (FTE), etc.
    4. Continue to monitor your accessibility maturity. Use the Accessibility Maturity Assessment tool to periodically evaluate progress on goals and targets. Also, use this tool to communicate progress with senior leaders and executives.
    5. Strive for continuous improvement by evaluating and iterating the program on an ongoing basis.

    Input

    • Activity outputs from this blueprint

    Output

    • Ongoing continuous improvement and progress related to accessibility
    • Demonstrable results

    Materials

    • n/a

    Participants

    • CIO/ head of IT/ initiative Lead
    • IT senior leaders
    • IT managers

    Related Info-Tech Research

    The Accessibility Business Case for IT

    • Take away the overwhelm that many feel when they hear "accessibility" and make the steps for your organization approachable.
    • Clearly communicate why accessibility is critical and how it supports the organization's key objectives and initiatives.
    • Understand your current state related to accessibility and identify areas for key initiatives to become part of the IT strategic roadmap.

    Lead Staff through Change

    • Anticipate and respond to staff questions about the change in order to keep messages consistent, organized, and clear.
    • Manage staff based on their specific concerns and change personas to get the best out of your team during the transition through change.
    • Maintain a feedback loop between staff, executives, and other departments in order to maintain the change momentum and reduce angst throughout the process.

    IT Diversity and Inclusion Tactics

    • Although inclusion is key to the success of a diversity and inclusion (D&I) strategy, the complexity of the concept makes it a daunting pursuit.
    • This is further complicated by the fact that creating inclusion is not a one-and-done exercise. Rather, it requires the ongoing commitment of employees and managers to reassess their own behaviors and to drive a cultural shift.

    Implement and Mature Your User Experience Design Practice

    • Create a practice that is focused on human outcomes; it starts and ends with the people you are designing for. This includes:
      • Establishing a practice with a common vision.
      • Enhancing the practice through four design factors.
      • Communicating a roadmap to improve your business through design.

    Works cited

    "2021 State of Digital Accessibility." Level Access, n.d. Accessed 10 Aug. 2022
    "Apple Canada Accessibility Policy & Plan." Apple Canada, 11 March 2019. .
    Casey, Caroline. "Do Your D&I Efforts Include People With Disabilities?" Harvard Business Review, 19 March 2020. Accessed 28 July 2022.
    Digitalisation World. "Organisations failing to meet digital accessibility standards." Angel Business Communications, 19 May 2022. Accessed Oct. 2022.
    "disability." Merriam-Webster.com Dictionary, Merriam-Webster, . Accessed 10 Aug. 2022.
    "Disability." World Health Organization, 2022. Accessed 10 Aug 2022.
    "Google Canada Corporation Accessibility Policy and Multi Year Plan." Google Canada, June 2020. .
    Hypercontext. "The State of High Performing Teams in Tech 2022." Hypercontext. 2022..
    Lay-Flurrie, Jenny. "Accessibility Evolution Model: Creating Clarity in your Accessibility Journey." Microsoft, 2023. <https://blogs.microsoft.com/accessibility/accessibility-evolution-model/>.
    Maguire, Jennifer. "Applause 2022 Global Accessibility Survey Reveals Organizations Prioritize Digital Accessibility but Fall Short of Conformance with WCAG 2.1 Standards." Business Wire, 19 May 2022. . Accessed 2 January 2023.
    "The Business Case for Digital Accessibility." W3C Web Accessibility Initiative (WAI), 9 Nov. 2018. Accessed 4 Aug. 2022.
    "THESCORE's Commitment to Accessibility." theScore, May 2021. .
    "The WebAIM Million." Web AIM, 31 March 2022. Accessed 28 Jul. 2022.
    Washington, Ella F. "The Five Stages of DEI Maturity." Harvard Business Review, November - December 2022. Accessed 7 Nov. 2022.
    Web AIM. "The WebAIM Million." Institute for Disability Research, Policy, and Practice, 31 March 2022. Accessed 28 Jul. 2022.

    Redesign Your IT Organizational Structure

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    • Parent Category Name: Organizational Design
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    Most organizations go through an organizational redesign to:

    • Better align to the strategic objectives of the organization.
    • Increase the effectiveness of IT as a function.
    • Provide employees with clarity in their roles and responsibilities.
    • Support new capabilities.
    • Better align IT capabilities to suit the vision.
    • Ensure the IT organization can support transformation initiatives.

    Our Advice

    Critical Insight

    • Organizational redesign is only as successful as the process leaders engage in. It shapes a story framed in a strong foundation of need and a method to successfully implement and adopt the new structure.
    • Benchmarking your organizational redesign to other organizations will not work. Other organizations have different strategies, drivers, and context. It’s important to focus on your organization, not someone else's.
    • You could have the best IT employees in the world, but if they aren’t structured well your organization will still fail in reaching its vision.

    Impact and Result

    • We are often unsuccessful in organizational redesign because we lack an understanding of why this initiative is required or fail to recognize that it is a change initiative.
    • Successful organizational design requires a clear understanding of why it is needed and what will be achieved by operating in a new structure.
    • Additionally, understanding the impact of the change initiative can lead to greater adoption by core stakeholders.

    Redesign Your IT Organizational Structure Research & Tools

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

    1. Redesign Your IT Organizational Structure Deck – A defined method of redesigning your IT structure that is founded by clear drivers and consistently considering change management practices.

    The purpose of this storyboard is to provide a four-phased approach to organizational redesign.

    • Redesign Your IT Organizational Structure – Phases 1-4

    2. Communication Deck – A method to communicate the new organizational structure to critical stakeholders to gain buy-in and define the need.

    Use this templated Communication Deck to ensure impacted stakeholders have a clear understanding of why the new organizational structure is needed and what that structure will look like.

    • Organizational Design Communications Deck

    3. Redesign Your IT Organizational Structure Executive Summary Template – A template to secure executive leadership buy-in and financial support for the new organizational structure to be implemented.

    This template provides IT leaders with an opportunity to present their case for a change in organizational structure and roles to secure the funding and buy-in required to operate in the new structure.

    • Redesign Your IT Organizational Structure Executive Summary

    4. Redesign Your IT Organizational Structure Workbook – A method to document decisions made and rationale to support working through each phase of the process.

    This Workbook allows IT and business leadership to work through the steps required to complete the organizational redesign process and document key rationale for those decisions.

    • Redesign Your IT Organizational Structure Workbook

    5. Redesign Your IT Organizational Structure Operating Models and Capability Definitions – A tool that can be used to provide clarity on the different types of operating models that exist as well as the process definitions of each capability.

    Refer to this tool when working through the redesign process to better understand the operating model sketches and the capability definitions. Each capability has been tied back to core frameworks that exist within the information and technology space.

    • Redesign Your IT Organizational Structure Operating Models and Capability Definitions

    Infographic

    Workshop: Redesign Your IT Organizational Structure

    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 Organizational Design Foundation

    The Purpose

    Lay the foundation for your organizational redesign by establishing a set of organizational design principles that will guide the redesign process.

    Key Benefits Achieved

    Clearly articulate why this organizational redesign is needed and the implications the strategies and context will have on your structure.

    Activities

    1.1 Define the org design drivers.

    1.2 Document and define the implications of the business context.

    1.3 Align the structure to support the strategy.

    1.4 Establish guidelines to direct the organizational design process.

    Outputs

    Clear definition of the need to redesign the organizational structure

    Understanding of the business context implications on the organizational structure creation.

    Strategic impact of strategies on organizational design.

    Customized Design Principles to rationalize and guide the organizational design process.

    2 Create the Operating Model Sketch

    The Purpose

    Select and customize an operating model sketch that will accurately reflect the future state your organization is striving towards. Consider how capabilities will be sourced, gaps in delivery, and alignment.

    Key Benefits Achieved

    A customized operating model sketch that informs what capabilities will make up your IT organization and how those capabilities will align to deliver value to your organization.

    Activities

    2.1 Augmented list of IT capabilities.

    2.2 Capability gap analysis

    2.3 Identified capabilities for outsourcing.

    2.4 Select a base operating model sketch.

    2.5 Customize the IT operating model sketch.

    Outputs

    Customized list of IT processes that make up your organization.

    Analysis of which capabilities require dedicated focus in order to meet goals.

    Definition of why capabilities will be outsourced and the method of outsourcing used to deliver the most value.

    Customized IT operating model reflecting sourcing, centralization, and intended delivery of value.

    3 Formalize the Organizational Structure

    The Purpose

    Translate the operating model sketch into a formal structure with defined functional teams, roles, reporting structure, and responsibilities.

    Key Benefits Achieved

    A detailed organizational chart reflecting team structures, reporting structures, and role responsibilities.

    Activities

    3.1 Categorize your IT capabilities within your defined functional work units.

    3.2 Create a mandate statement for each work unit.

    3.3 Define roles inside the work units and assign accountability and responsibility.

    3.4 Finalize your organizational structure.

    Outputs

    Capabilities Organized Into Functional Groups

    Functional Work Unit Mandates

    Organizational Chart

    4 Plan for the Implementation & Change

    The Purpose

    Ensure the successful implementation of the new organizational structure by strategically communicating and involving stakeholders.

    Key Benefits Achieved

    A clear plan of action on how to transition to the new structure, communicate the new organizational structure, and measure the effectiveness of the new structure.

    Activities

    4.1 Identify and mitigate key org design risks.

    4.2 Define the transition plan.

    4.3 Create the change communication message.

    4.4 Create a standard set of FAQs.

    4.5 Align sustainment metrics back to core drivers.

    Outputs

    Risk Mitigation Plan

    Change Communication Message

    Standard FAQs

    Implementation and sustainment metrics.

    Further reading

    Redesign Your IT Organizational Structure

    Designing an IT structure that will enable your strategic vision is not about an org chart – it’s about how you work.

    EXECUTIVE BRIEF

    Analyst Perspective

    Structure enables strategy.

    The image contains a picture of Allison Straker.

    Allison Straker

    Research Director,

    Organizational Transformation

    The image contains a picture of Brittany Lutes.

    Brittany Lutes

    Senior Research Analyst,

    Organizational Transformation

    An organizational structure is much more than a chart with titles and names. It defines the way that the organization operates on a day-to-day basis to enable the successful delivery of the organization’s information and technology objectives. Moreover, organizational design sees beyond the people that might be performing a specific role. People and role titles will and often do change frequently. Those are the dynamic elements of organizational design that allow your organization to scale and meet specific objectives at defined points of time. Capabilities, on the other hand, are focused and related to specific IT processes.

    Redesigning an IT organizational structure can be a small or large change transformation for your organization. Create a structure that is equally mindful of the opportunities and the constraints that might exist and ensure it will drive the organization towards its vision with a successful implementation. If everyone understands why the IT organization needs to be structured that way, they are more likely to support and adopt the behaviors required to operate in the new structure.

    Executive Summary

    Your Challenge

    Your organization needs to reorganize itself because:

    • The current IT structure does not align to the strategic objectives of the organization.
    • There are inefficiencies in how the IT function is currently operating.
    • IT employees are unclear about their role and responsibilities, leading to inconsistencies.
    • New capabilities or a change in how the capabilities are organized is required to support the transformation.

    Common Obstacles

    Many organizations struggle when it comes redesigning their IT organizational structure because they:

    • Jump right into creating the new organizational chart.
    • Do not include the members of the IT leadership team in the changes.
    • Do not include the business in the changes.
    • Consider the context in which the change will take place and how to enable successful adoption.

    Info-Tech’s Approach

    Successful IT organization redesign includes:

    • Understanding the drivers, context, and strategies that will inform the structure.
    • Remaining objective by focusing on capabilities over people or roles.
    • Identifying gaps in delivery, sourcing strategies, customers, and degrees of centralization.
    • Remembering that organizational design is a change initiative and will require buy-in.

    Info-Tech Insight

    A successful redesign requires a strong foundation and a plan to ensure successful adoption. Without these, the organizational chart has little meaning or value.

    Your challenge

    This research is designed to help organizations who are looking to:

    • Redesign the IT structure to align to the strategic objectives of the enterprise.
    • Increase the effectiveness in how the IT function is operating in the organization.
    • Provide clarity to employees around their roles and responsibilities.
    • Ensure there is an ability to support new IT capabilities and/or align capabilities to better support the direction of the organization.
    • Align the IT organization to support a business transformation such as becoming digitally enabled or engaging in M&A activities.

    Organizational design is a challenge for many IT and digital executives

    69% of digital executives surveyed indicated challenges related to structure, team silos, business-IT alignment, and required roles when executing on a digital strategy.

    Source: MIT Sloan, 2020

    Common obstacles

    These barriers make IT organizational redesign difficult to address for many organizations:

    • Confuse organizational design and organizational charts as the same thing.
    • Start with the organizational chart, not taking into consideration the foundational elements that will make that chart successful.
    • Fail to treat organizational redesign as a change management initiative and follow through with the change.
    • Exclude impacted or influential IT leaders and/or business stakeholders from the redesign process.
    • Leverage an operating model because it is trending.

    To overcome these barriers:

    • Understand the context in which the changes will take place.
    • Communicate the changes to those impacted to enable successful adoption and implementation of a new organizational structure.
    • Understand that organizational design is for more than just HR leaders now; IT executives should be driving this change.

    Succeed in Organizational Redesign

    75% The percentage of change efforts that fail.

    Source: TLNT, 2019

    55% The percentage of practitioners who identify how information flows between work units as a challenge for their organization.

    Source: Journal of Organizational Design, 2019

    Organizational design defined

    If your IT strategy is your map, your IT organizational design represents the optimal path to get there.

    IT organizational design refers to the process of aligning the organization’s structure, processes, metrics, and talent to the organization’s strategic plan to drive efficiency and effectiveness.

    Why is the right IT organizational design so critical to success?

    Adaptability is at the core of staying competitive today

    Structure is not just an organizational chart

    Organizational design is a never-ending process

    Digital technology and information transparency are driving organizations to reorganize around customer responsiveness. To remain relevant and competitive, your organizational design must be forward looking and ready to adapt to rapid pivots in technology or customer demand.

    The design of your organization dictates how roles function. If not aligned to the strategic direction, the structure will act as a bungee cord and pull the organization back toward its old strategic direction (ResearchGate.net, 2014). Structure supports strategy, but strategy also follows structure.

    Organization design is not a one-time project but a continuous, dynamic process of organizational self-learning and continuous improvement. Landing on the right operating model will provide a solid foundation to build upon as the organization adapts to new challenges and opportunities.

    Understand the organizational differences

    Organizational Design

    Organizational design the process in which you intentionally align the organizational structure to the strategy. It considers the way in which the organization should operate and purposely aligns to the enterprise vision. This process often considers centralization, sourcing, span of control, specialization, authority, and how those all impact or are impacted by the strategic goals.

    Operating Model

    Operating models provide an architectural blueprint of how IT capabilities are organized to deliver value. The placement of the capabilities can alter the culture, delivery of the strategic vision, governance model, team focus, role responsibility, and more. Operating model sketches should be foundational to the organizational design process, providing consistency through org chart changes.

    Organizational Structure

    The organizational structure is the chosen way of aligning the core processes to deliver. This can be strategic, or it can be ad hoc. We recommend you take a strategic approach unless ad hoc aligns to your culture and delivery method. A good organizational structure will include: “someone with authority to make the decisions, a division of labor and a set of rules by which the organization operates” (Bizfluent, 2019).

    Organizational Chart

    The capstone of this change initiative is an easy-to-read chart that visualizes the roles and reporting structure. Most organizations use this to depict where individuals fit into the organization and if there are vacancies. While this should be informed by the structure it does not necessarily depict workflows that will take place. Moreover, this is the output of the organizational design process.

    Sources: Bizfluent, 2019; Strategy & Business, 2015; SHRM, 2021

    The Technology Value Trinity

    The image contains a diagram of the Technology Value Trinity as described in the text below.

    All three elements of the Technology Value Trinity work in harmony to delivery business value and achieve strategic needs. As one changes, the others need to change as well.

    How do these three elements relate?

    • Digital and IT strategy tells you what you need to achieve to be successful.
    • Operating model and organizational design align resources to deliver on your strategy and priorities. This is done by strategically structuring IT capabilities in a way that enables the organizations vision and considers the context in which the structure will operate.
    • I&T governance is the confirmation of IT’s goals and strategy, which ensures the alignment of IT and business strategy and is the mechanism by which you continuously prioritize work to ensure that what is delivered is in line with the strategy.

    Too often strategy, organizational design, and governance are considered separate practices – strategies are defined without teams and resources to support. Structure must follow strategy.

    Info-Tech’s approach to organizational design

    Like a story, a strategy without a structure to deliver on it is simply words on paper.

    Books begin by setting the foundation of the story.

    Introduce your story by:

    • Defining the need(s) that are driving this initiative forward.
    • Introducing the business context in which the organizational redesign must take place.
    • Outlining what’s needed in the redesign to support the organization in reaching its strategic IT goals.

    The plot cannot thicken without the foundation. Your organizational structure and chart should not exist without one either.

    The steps to establish your organizational chart - with functional teams, reporting structure, roles, and responsibilities defined – cannot occur without a clear definition of goals, need, and context. An organizational chart alone won’t provide the insight required to obtain buy-in or realize the necessary changes.

    Conclude your story through change management and communication.

    Good stories don’t end without referencing what happened before. Use the literary technique of foreshadowing – your change management must be embedded throughout the organizational redesign process. This will increase the likelihood that the organizational structure can be communicated, implemented, and reinforced by stakeholders.

    Info-Tech uses a capability-based approach to help you design your organizational structure

    Once your IT strategy is defined, it is critical to identify the capabilities that are required to deliver on those strategic initiatives. Each initiative will require a combination of these capabilities that are only supported through the appropriate organization of roles, skills, and team structures.

    The image contains a diagram of the various services and blueprints that Info-Tech has to offer.

    Embed change management into organizational design

    Change management practices are needed from the onset to ensure the implementation of an organizational structure.

    For each phase of this blueprint, its important to consider change management. These are the points when you need to communicate the structure changes:

    • Phase 1: Begin to socialize the idea of new organizational structure with executive leadership and explain how it might be impactful to the context of the organization. For example, a new control, governance model, or sourcing approach could be considered.
    • Phase 2: The chosen operating model will influence your relationships with the business and can create/eliminate silos. Ensure IT and business leaders have insight into these possible changes and a willingness to move forward.
    • Phase 3: The new organizational structure could create or eliminate teams, reduce or increase role responsibilities, and create different reporting structures than before. It’s time to communicate these changes with those most impacted and be able to highlight the positive outcomes of the various changes.
    • Phase 4: Should consider the change management practices holistically. This includes the type of change and length of time to reach the end state, communication, addressing active resistors, acquiring the right skills, and measuring the success of the new structure and its adoption.

    Info-Tech Insight

    Do not undertake an organizational redesign initiative if you will not engage in change management practices that are required to ensure its successful adoption.

    Measure the value of the IT organizational redesign

    Given that the organizational redesign is intended to align with the overall vision and objectives of the business, many of the metrics that support its success will be tied to the business. Adapt the key performance indicators (KPIs) that the business is using to track its success and demonstrate how IT can enable the business and improve its ability to reach those targets.

    Strategic Resources

    The percentage of resources dedicated to strategic priorities and initiatives supported by IT operating model. While operational resources are necessary, ensuring people are allocating time to strategic initiatives as well will drive the business towards its goal state. Leverage Info-Tech’s IT Staffing Assessment diagnostic to benchmark your IT resource allocation.

    Business Satisfaction

    Assess the improvement in business satisfaction overall with IT year over year to ensure the new structure continues to drive satisfaction across all business functions. Leverage Info-Tech’s CIO Business Vision diagnostic to see how your IT organization is perceived.

    Role Clarity

    The degree of clarity that IT employees have around their role and its core responsibilities can lead to employee engagement and retention. Consider measuring this core job driver by leveraging Info-Tech’s Employee Engagement Program.

    Customer & User Satisfaction

    Measure customer satisfaction with technology-enabled business services or products and improvements in technology-enabled client acquisition or retention processes. Assess the percentage of users satisfied with the quality of IT service delivery and leverage Info-Tech’s End-User Satisfaction Survey to determine improvements.

    Info-Tech’s methodology for Redesigning Your IT Organization

    Phase

    1. Establish the Organizational Design Foundation

    2. Create the Operating Model Sketch

    3. Formalize the Organizational Structure

    4. Plan for Implementation and Change

    Phase Outcomes

    Lay the foundation for your organizational redesign by establishing a set of organizational design principles that will guide the redesign process.

    Select and customize an operating model sketch that will accurately reflect the future state your organization is striving towards. Consider how capabilities will be sourced, gaps in delivery, and alignment.

    Translate the operating model sketch into a formal structure with defined functional teams, roles, reporting structure, and responsibilities.

    Ensure the successful implementation of the new organizational structure by strategically communicating and involving stakeholders.

    Insight summary

    Overarching insight

    Organizational redesign processes focus on defining the ways in which you want to operate and deliver on your strategy – something an organizational chart will never be able to convey.

    Phase 1 insight

    Focus on your organization, not someone else's’. Benchmarking your organizational redesign to other organizations will not work. Other organizations have different strategies, drivers, and context.

    Phase 2 insight

    An operating model sketch that is customized to your organization’s specific situation and objectives will significantly increase the chances of creating a purposeful organizational structure.

    Phase 3 insight

    If you follow the steps outlined in the first three phases, creating your new organizational chart should be one of the fastest activities.

    Phase 4 insight

    Throughout the creation of a new organizational design structure, it is critical to involve the individuals and teams that will be impacted.

    Tactical insight

    You could have the best IT employees in the world, but if they aren’t structured well your organization will still fail in reaching its vision.

    Blueprint deliverables

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


    Communication Deck

    Communicate the changes to other key stakeholders such as peers, managers, and staff.

    Workbook

    As you work through each of the activities, use this workbook as a place to document decisions and rationale.

    Reference Deck

    Definitions for every capability, base operating model sketches, and sample organizational charts aligned to those operating models.

    Job Descriptions

    Key deliverable:

    Executive Presentation

    Leverage this presentation deck to gain executive buy-in for your new organizational structure.

    Blueprint benefits

    IT Benefits

    • Create an organizational structure that aligns to the strategic goals of IT and the business.
    • Provide IT employees with clarity on their roles and responsibilities to ensure the successful delivery of IT capabilities.
    • Highlight and sufficiently staff IT capabilities that are critical to the organization.
    • Define a sourcing strategy for IT capabilities.
    • Increase employee morale and empowerment.

    Business Benefits

    • IT can carry out the organization’s strategic mission and vision of all technical and digital initiatives.
    • Business has clarity on who and where to direct concerns or questions.
    • Reduce the likelihood of turnover costs as IT employees understand their roles and its importance.
    • Create a method to communicate how the organizational structure aligns with the strategic initiatives of IT.
    • Increase ability to innovate the organization.

    Executive Brief Case Study

    IT design needs to support organizational and business objectives, not just IT needs.

    INDUSTRY: Government

    SOURCE: Analyst Interviews and Working Sessions

    Situation

    IT was tasked with providing equality to the different business functions through the delivery of shared IT services. The government created a new IT organizational structure with a focus on two areas in particular: strategic and operational support capabilities.

    Challenge

    When creating the new IT structure, an understanding of the complex and differing needs of the business functions was not reflected in the shared services model.

    Outcome

    As a result, the new organizational structure for IT did not ensure adequate meeting of business needs. Only the operational support structure was successfully adopted by the organization as it aligned to the individual business objectives. The strategic capabilities aspect was not aligned to how the various business lines viewed themselves and their objectives, causing some partners to feel neglected.

    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 a series of calls with an Info-Tech analyst to help implement our best practices in your organization. A typical GI is 8 to 12 calls over the course of 4 to 6 months.

    Phase 1

    Call #1: Define the process, understand the need, and create a plan of action.

    Phase 2

    Call #2: Define org. design drivers and business context.

    Call #3: Understand strategic influences and create customized design principles.

    Call #4: Customize, analyze gaps, and define sourcing strategy for IT capabilities.

    Call #5: Select and customize the IT operating model sketch.

    Phase 3

    Call #6: Establish functional work units and their mandates.

    Call #7: Translate the functional organizational chart to an operational organizational chart with defined roles.

    Phase 4

    Call #8: Consider risks and mitigation tactics associated with the new structure and select a transition plan.

    Call #9: Create your change message, FAQs, and metrics to support the implementation plan.

    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 the Organizational Redesign Foundation

    Create the Operating Model Sketch

    Formalize the Organizational Structure

    Plan for Implementation and Change

    Next Steps and
    Wrap-Up (offsite)

    Activities

    1.1 Define the org. design drivers.

    1.2 Document and define the implications of the business context.

    1.3 Align the structure to support the strategy.

    1.4 Establish guidelines to direct the organizational design process.

    2.1 Augment list of IT capabilities.

    2.2 Analyze capability gaps.

    2.3 Identify capabilities for outsourcing.

    2.4 Select a base operating model sketch.

    2.5 Customize the IT operating model sketch.

    3.1 Categorize your IT capabilities within your defined functional work units.

    3.2 Create a mandate statement for each work unit.

    3.3 Define roles inside the work units and assign accountability and responsibility.

    3.4 Finalize your organizational structure.

    4.1 Identify and mitigate key org. design risks.

    4.2 Define the transition plan.

    4.3 Create the change communication message.

    4.4 Create a standard set of FAQs.

    4.5 Align sustainment metrics back to core drivers.

    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. Foundational components to the organizational design
    2. Customized design principles
    1. Heat mapped IT capabilities
    2. Defined outsourcing strategy
    3. Customized operating model
    1. Capabilities organized into functional groups
    2. Functional work unit mandates
    3. Organizational chart
    1. Risk mitigation plan
    2. Change communication message
    3. Standard FAQs
    4. Implementation and sustainment metrics
    1. Completed organizational design communications deck

    This blueprint is part one of a three-phase approach to organizational transformation

    PART 1: DESIGN

    PART 2: STRUCTURE

    PART 3: IMPLEMENT

    IT Organizational Architecture

    Organizational Sketch

    Organizational Structure

    Organizational Chart

    Transition Strategy

    Implement Structure

    1. Define the organizational design drivers, business context, and strategic alignment.

    2. Create customized design principles.

    3. Develop and customize a strategically aligned operating model sketch.

    4. Define the future-state work units.

    5. Create future-state work unit mandates.

    6. Define roles by work unit.

    7. Turn roles into jobs with clear capability accountabilities and responsibilities.

    8. Define reporting relationships between jobs.

    9. Assess options and select go-forward organizational sketch.

    11. Validate organizational sketch.

    12. Analyze workforce utilization.

    13. Define competency framework.

    14. Identify competencies required for jobs.

    15. Determine number of positions per job

    16. Conduct competency assessment.

    17. Assign staff to jobs.

    18. Build a workforce and staffing plan.

    19. Form an OD implementation team.

    20. Develop change vision.

    21. Build communication presentation.

    22. Identify and plan change projects.

    23. Develop organizational transition plan.

    24. Train managers to lead through change.

    25. Define and implement stakeholder engagement plan.

    26. Develop individual transition plans.

    27. Implement transition plans.

    Risk Management: Create, implement, and monitor risk management plan.

    HR Management: Develop job descriptions, conduct job evaluation, and develop compensation packages.

    Monitor and Sustain Stakeholder Engagement

    Phase 1

    Establish the Organizational Redesign Foundation

    This phase will walk you through the following activities:

    1.1 Define the organizational redesign driver(s)

    1.2 Create design principles based on the business context

    1.3a (Optional Exercise) Identify the capabilities from your value stream

    1.3b Identify the capabilities required to deliver on your strategies

    1.4 Finalize your list of design principles

    This phase involves the following participants:

    • CIO
    • IT Leadership
    • Business Leadership

    Embed change management into the organizational design process

    Articulate the Why

    Changes are most successful when leaders clearly articulate the reason for the change – the rationale for the organizational redesign of the IT function. Providing both staff and executive leaders with an understanding for this change is imperative to its success. Despite the potential benefits to a redesign, they can be disruptive. If you are unable to answer the reason why, a redesign might not be the right initiative for your organization.

    Employees who understand the rationale behind decisions made by executive leaders are 3.6 times more likely to be engaged.

    McLean & Company Engagement Survey Database, 2021; N=123,188

    Info-Tech Insight

    Successful adoption of the new organizational design requires change management from the beginning. Start considering how you will convey the need for organizational change within your IT organization.

    The foundation of your organizational design brings together drivers, context, and strategic implications

    All aspects of your IT organization’s structure should be designed with the business’ context and strategic direction in mind.

    Use the following set of slides to extract the key components of your drivers, business context, and strategic direction to land on a future structure that aligns with the larger strategic direction.

    REDESIGN DRIVERS

    Driver(s) can originate from within the IT organization or externally. Ensuring the driver(s) are easy to understand and articulate will increase the successful adoption of the new organizational structure.

    BUSINESS CONTEXT

    Defines the interactions that occur throughout the organization and between the organization and external stakeholders. The context provides insight into the environment by both defining the purpose of the organization and the values that frame how it operates.

    STRATEGY IMPLICATIONS

    The IT strategy should be aligned to the overall business strategy, providing insight into the types of capabilities required to deliver on key IT initiatives.

    Understand IT’s desired maturity level, alignment with business expectations, and capabilities of IT

    Where are we today?

    Determine the current overall maturity level of the IT organization.

    Where do we want to be as an organization?

    Use the inputs from Info-Tech’s diagnostic data to determine where the organization should be after its reorganization.

    How can you leverage these results?

    The result of these diagnostics will inform the design principles that you’ll create in this phase.

    Leverage Info-Tech’s diagnostics to provide an understanding of critical areas your redesign can support:

    CIO Business Vision Diagnostic

    Management & Governance Diagnostic

    IT Staffing Diagnostic

    The image contains a picture of Info-Tech's maturity ladder.

    Consider the organizational design drivers

    Consider organizational redesign if …

    Effectiveness is a concern:

    • Insufficient resources to meet demand
    • Misalignment to IT (and business) strategies
    • Lack of clarity around role responsibility or accountability
    • IT functions operating in silos

    New capabilities are needed:

    • Organization is taking on new capabilities (digital, transformation, M&A)
    • Limited innovation
    • Gaps in the capabilities/services of IT
    • Other external environmental influences or changes in strategic direction

    Lack of business understanding

    • Misalignment between business and IT or how the organization does business
    • Unhappy customers (internal or external)

    Workforce challenges

    • Frequent turnover or inability to attract new skills
    • Low morale or employee empowerment

    These are not good enough reasons …

    • New IT leader looking to make a change for the sake of change or looking to make their legacy known
    • To work with specific/hand-picked leaders over others
    • To “shake things up” to see what happens
    • To force the organization to see IT differently

    Info-Tech Insight

    Avoid change for change’s sake. Restructuring could completely miss the root cause of the problem and merely create a series of new ones.

    1.1 Define the organizational redesign driver(s)

    1-2 hours

    1. As a group, brainstorm a list of current pain points or inhibitors in the current organizational structure, along with a set of opportunities that can be realized during your restructuring. Group these pain points and opportunities into themes.
    2. Leverage the pain points and opportunities to help further define why this initiative is something you’re driving towards. Consider how you would justify this initiative to different stakeholders in the organization.
    3. Questions to consider:
      1. Who is asking for this initiative?
      2. What are the primary benefits this is intended to produce?
      3. What are you optimizing for?
      4. What are we capable of achieving as an IT organization?
      5. Are the drivers coming from inside or outside the IT organization?
    4. Once you’ve determined the drivers for redesigning the IT organization, prioritize those drivers to ensure there is clarity when communicating why this is something you are focusing time and effort on.

    Input

    Output

    • Knowledge of the current organization
    • Pain point and opportunity themes
    • Defined drivers of the initiative

    Materials

    Participants
    • Whiteboard/flip charts (physical or electronic)
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Communications Deck

    Frame the organizational design within the context of the business

    Workforce Considerations:

    • How does your organization view its people resources? Does it have the capacity to increase the number of resources?
    • Do you currently have sufficient staff to meet the demands of the organization? Are you able to outsource resources when demand requires it?
    • Are the members of your IT organization unionized?
    • Is your workforce distributed? Do time zones impact how your team can collaborate?

    Business Context Consideration

    IT Org. Design Implication

    Culture:

    Culture, "the way we do things here,” has huge implications for executing strategy, driving engagement, and providing a guiding force that ensures organizations can work together toward common goals.

    • What is the culture of your organization? Is it cooperative, traditional, competitive, or innovative? (See appendix for details.)
    • Is this the target culture or a stepping-stone to the ideal culture?
    • How do the attitudes and behaviors of senior leaders in the organization reinforce this culture?

    Consider whether your organization’s culture can accept the operating model and organizational structure changes that make sense on paper.

    Certain cultures may lean toward particular operating models. For example, the demand-develop-service operating model may be supported by a cooperative culture. A traditional organization may lean towards the plan-build-run operating model.

    Ensure you have considered your current culture and added exercises to support it.

    If more capacity is required to accomplish the goals of the organization, you’ll want to prepare the leaders and explain the need in your design principles (to reflect training, upskilling, or outsourcing). Unionized environments require additional consideration. They may necessitate less structural changes, and so your principles will need to reflect other alternatives (hiring additional resources, creative options) to support organizational needs. Hybrid or fully remote workforces may impact how your organization interacts.

    Business context considerations

    Business Context Consideration

    IT Org. Design Implication

    Control & Governance:

    It is important to consider how your organization is governed, how decisions are made, and who has authority to make decisions.

    Strategy tells what you do, governance validates you’re doing the right things, and structure is how you execute on what’s been approved.

    • How do decisions get considered and approved in your organization? Are there specific influences that impact the priorities of the organization?
    • Are those in the organization willing to release decision-making authority around specific IT components?
    • Should the organization take on greater accountability for specific IT components?

    Organizations that require more controls may lean toward more centralized governance. Organizations that are looking to better enable and empower their divisions (products, groups, regions, etc.) may look to embed governance in these parts of the organization.

    For enterprise organizations, consider where IT has authority to make decisions (at the global, local, or system level). Appropriate governance needs to be built into the appropriate levels.

    Business context considerations

    Business Context Consideration

    IT Org. Design Implication

    Financial Constraints:

    Follow the money: You may need to align your IT organization according to the funding model.

    • Do partners come to IT with their budgets, or does IT have a central pool that they use to fund initiatives from all partners?
    • Are you able to request finances to support key initiatives/roles prioritized by the organization?
    • How is funding aligned: technology, data, digital, etc.? Is your organization business-line funded? Pooled?
    • Are there special products or digital transformation initiatives with resources outside IT? Product ownership funding?
    • How are regulatory changes funded?
    • Do you have the flexibility to adjust your budget throughout the fiscal year?
    • Are chargebacks in place? Are certain services charged back to business units

    Determine if you can move forward with a new model or if you can adjust your existing one to suit the financial constraints.

    If you have no say over your funding, pre-work may be required to build a business case to change your funding model before you look at your organizational structure – without this, you might have to rule out centralized and focus on hybrid/centralized. If you don’t control the budget (funding comes from your partners), it will be difficult to move to a more centralized model.

    A federated business organization may require additional IT governance to help prioritize across the different areas.

    Budgets for digital transformation might come from specific areas of the business, so resources may need to be aligned to support that. You’ll have to consider how you will work with those areas. This may also impact the roles that are going to exist within your IT organization – product owners or division owners might have more say.

    Business context considerations

    Business Context Consideration

    IT Org. Design Implication

    Business Perspective of IT:

    How the business perceives IT and how IT perceives itself are sometimes not aligned. Make sure the business’ goals for IT are well understood.

    • Are your business partners satisfied if IT is an order taker? Do they agree with the need for IT to become a business partner? Is IT expected to innovate and transform the organization?
    • Is what the business needs from IT the same as what IT is providing currently?

    Business Organization Structure and Growth:

    • How is the overall organization structured: Centralized/decentralized? Functionally aligned? Divided by regions?
    • In what areas does the organization prioritize investments?
    • Is the organization located across a diverse geography?
    • How big is the organization?
    • How is the organization growing and changing – by mergers and acquisitions?

    If IT needs to become more of a business partner, you’ll want to define what that means to your organization and focus on the capabilities to enable this. Educating your partners might also be required if you’re not aligned.

    For many organizations, this will include stakeholder management, innovation, and product/project management. If IT and its business partners are satisfied with an order-taker relationship, be prepared for the consequences of that.

    A global organization will require different IT needs than a single location. Specifically, site reliability engineering (SRE) or IT support services might be deployed in each region. Organizations growing through mergers and acquisitions can be structured differently depending on what the organization needs from the transaction. A more centralized organization may be appropriate if the driver is reuse for a more holistic approach, or the organization may need a more decentralized organization if the acquisitions need to be handled uniquely.

    Business context considerations

    Business Context Consideration

    IT Org. Design Implication

    Sourcing Strategy:

    • What are the drivers for sourcing? Staff augmentation, best practices, time zone support, or another reason?
    • What is your strategy for sourcing?
    • Does IT do all of your technology work, or are parts being done by business or other units?
    • Are we willing/able to outsource, and will that place us into non-compliance (regulations)?
    • Do you have vendor management capabilities in areas that you might outsource?
    • How cloud-driven is your organization?
    • Do you have global operations?

    Change Tolerance:

    • What’s your organization’s tolerance to make changes around organizational design?
    • What's the appetite and threshold for risk?

    Your sourcing strategy affects your organizational structure, including what capabilities you group together. Since managing outsourced capabilities also includes the need for vendor management, you’ll need to ensure there aren’t too many capabilities required per leader. Look closely at what can be achieved through your operating model if IT is done through other groups. Even though these groups may not be in scope of your organization changes, you need to ensure your IT team works with them effectively.

    If your organization is going to push back if there are big structural changes, consider whether the changes are truly necessary. It may be preferred to take baby steps – use an incremental versus big-bang approach.

    A need for incremental change might mean not making a major operating model change.

    Business context considerations

    Business Context Consideration

    IT Org Design. Implication

    Stakeholder Engagement & Focus:

    Identify who your customers and stakeholders are; clarify their needs and engagement model.

    • Who is the customer for IT products and services?
    • Is your customer internal? External? Both?
    • How much of a priority is customer focus for your organization?
    • How will IT interact with customers, end users, and partners? What is the engagement model desired?

    Business Vision, Services, and Products:

    Articulate what your organization was built to do.

    • What does the organization create or provide?
    • Are these products and services changing?
    • What are the most critical capabilities to your organization?
    • What makes your organization a success? What are critical success factors of the organization and how are they measuring this to determine success?

    For a customer or user focus, ensure capabilities related to understanding needs (stakeholder, UX, etc.) are prioritized. Hybrid, decentralized, or demand-develop-service models often have more of a focus on customer needs.

    Outsourcing the service desk might be a consideration if there’s a high demand for the service. A differentiation between these users might mean there’s a different demand for services.

    Think broadly in terms of your organizational vision, not just the tactical (widget creation). You might need to choose an operating model that supports vision.

    Do you need to align your organization with your value stream? Do you need to decentralize specific capabilities to enable prioritization of the key capabilities?

    1.2 Create design principles based on the business context

    1-3 hours

    1. Discuss the business context in which the IT organizational redesign will be taking place. Consider the following standard components of the business context; include other relevant components specific to your organization:
    • Culture
    • Workforce Considerations
    • Control and Governance
    • Financial Constraints
    • Business Perspective of IT
    • Business Organization Structure and Growth
    • Sourcing Strategy
    • Change Tolerance
    • Stakeholder Engagement and Focus
    • Business Vision, Services, and Products
  • Different stakeholders can have different perspectives on these questions. Be sure to consider a holistic approach and engage these individuals.
  • Capture your findings and use them to create initial design principles.
  • Input

    Output

    • Business context
    • Design principles reflecting how the business context influences the organizational redesign for IT

    Materials

    Participants

    • Whiteboard/flip charts (physical or electronic)
    • List of Context Questions
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Communications Deck

    How your IT organization is structured needs to reflect what it must be built to do

    Structure follows strategy – the way you design will impact what your organization can produce.

    Designing your IT organization requires an assessment of what it needs to be built to do:

    • What are the most critical capabilities that you need to deliver, and what does success look like in those different areas?
    • What are the most important things that you deliver overall in your organization?

    The IT organization must reflect your business needs:

    • Understand your value stream and/or your prioritized business goals.
    • Understand the impact of your strategies – these can include your overall digital strategy and/or your IT strategy

    1.3a (Optional Exercise) Identify the capabilities from your value stream

    1 hour

    1. Identify your organization’s value stream – what your overall organization needs to do from supplier to consumer to provide value. Leverage Info-Tech’s industry reference architectures if you haven’t identified your value stream, or use the Document Your Business Architecture blueprint to create yours.
    2. For each item in your value stream, list capabilities that are critical to your organizational strategy and IT needs to further invest in to enable growth.
    3. Also, list those that need further support, e.g. those that lead to long wait times, rework time, re-tooling, down-time, unnecessary processes, unvaluable processes.*
    4. Capture the IT capabilities required to enable your business in your draft principles.
    The image contains a screenshot of the above activity: Sampling Manufacturing Business Capabilities.
    Source: Six Sigma Study Guide, 2014
    Input Output
    • Organization’s value stream
    • List of IT capabilities required to support the IT strategy
    Materials Participants
    • Whiteboard/flip charts (physical or electronic)
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Communications Deck

    Your strategy will help you decide on your structure

    Ensure that you have a clear view of the goals and initiatives that are needed in your organization. Your IT, digital, business, and/or other strategies will surface the IT capabilities your organization needs to develop. Identify the goals of your organization and the initiatives that are required to deliver on them. What capabilities are required to enable these? These capabilities will need to be reflected in your design principles.

    Sample initiatives and capabilities from an organization’s strategies

    The image contains a screenshot of sample initiatives and capabilities from an organization's strategies.

    1.3b Identify the capabilities required to deliver on your strategies

    1 hour

    1. For each IT goal, there may be one or more initiatives that your organization will need to complete in order to be successful.
    2. Document those goals and infinitives. For each initiative, consider which core IT capabilities will be required to deliver on that goal. There might be one IT capability or there might be several.
    3. Identify which capabilities are being repeated across the different initiatives. Consider whether you are currently investing in those capabilities in your current organizational structure.
    4. Highlight the capabilities that require IT investment in your design principles.
    InputOutput
    • IT goals
    • IT initiatives
    • IT, digital, and business strategies
    • List of IT capabilities required to support the IT strategy
    MaterialsParticipants
    • Whiteboard/flip charts (physical or electronic)
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Communications Deck

    Create your organizational design principles

    Your organizational design principles should define a set of loose rules that can be used to design your organizational structure to the specific needs of the work that needs to be done. These rules will guide you through the selection of the appropriate operating model that will meet your business needs. There are multiple ways you can hypothetically organize yourself to meet these needs, and the design principles will point you in the direction of which solution is the most appropriate as well as explain to your stakeholders the rationale behind organizing in a specific way. This foundational step is critical: one of the key reasons for organizational design failure is a lack of requisite time spent on the front-end understanding what is the best fit.

    The image contains an example of organizing design principles as described above.

    1.4 Finalize your list of design principles

    1-3 hours

    1. As a group, review the key outputs from your data collection exercises and their implications.
    2. Consider each of the previous exercises – where does your organization stand from a maturity perspective, what is driving the redesign, what is the business context, and what are the key IT capabilities requiring support. Identify how each will have an implication on your organizational redesign. Leverage this conversation to generate design principles.
    3. Vote on a finalized list of eight to ten design principles that will guide the selection of your operating model. Have everyone leave the meeting with these design principles so they can review them in more detail with their work units or functional areas and elicit any necessary feedback.
    4. Reconvene the group that was originally gathered to create the list of design principles and make any final amendments to the list as necessary. Use this opportunity to define exactly what each design principle means in the context of your organization so everyone has the same understanding of what this means moving forward.
    InputOutput
    • Organizational redesign drivers
    • Business context
    • IT strategy capabilities
    • Organizational design principles to help inform the selection of the right operating model sketch
    MaterialsParticipants
    • Whiteboard/flip charts (physical or electronic)
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Communications Deck

    Example design principles

    Your eight to ten design principles will be those that are most relevant to YOUR organization. Below are samples that other organizations have created, but yours will not be the same.

    Design Principle

    Description

    Decision making

    We will centralize decision making around the prioritization of projects to ensure that the initiatives driving the most value for the organization as a whole are executed.

    Fit for purpose

    We will build and maintain fit-for-purpose solutions based on business units’ unique needs.

    Reduction of duplication

    We will reduce role and application duplication through centralized management of assets and clearly differentiated roles that allow individuals to focus within key capability areas.

    Managed security

    We will manage security enterprise-wide and implement compliance and security governance policies.

    Reuse > buy > build

    We will maximize reuse of existing assets by developing a centralized application portfolio management function and approach.

    Managed data

    We will create a specialized data office to provide data initiatives with the focus they need to enable our strategy.

    Design Principle

    Description

    Controlled technical diversity

    We will control the variety of technology platforms we use to allow for increased operability and reduction of costs.

    Innovation

    R&D and innovation are critical – we will build an innovation team into our structure to help us meet our digital agenda.

    Resourcing

    We will separate our project and maintenance activities to ensure each are given the dedicated support they need for success and to reduce the firefighting mentality.

    Customer centricity

    The new structure will be directly aligned with customer needs – we will have dedicated roles around relationship management, requirements, and strategic roadmapping for business units.

    Interoperability

    We will strengthen our enterprise architecture practices to best prepare for future mergers and acquisitions.

    Cloud services

    We will move toward hosted versus on-premises infrastructure solutions, retrain our data center team in cloud best practices, and build roles around effective vendor management, cloud provisioning, and architecture.

    Phase 2

    Create the Operating Model Sketch

    This phase will walk you through the following activities:

    2.1 Augment the capability list

    2.2 Heatmap capabilities to determine gaps in service

    2.3 Identify the target state of sourcing for your IT capabilities

    2.4 Review and select a base operating model sketch

    2.5 Customize the selected overlay to reflect the desired future state

    This phase involves the following participants:

    • CIO
    • IT Leadership

    Embed change management into the organizational design process

    Gain Buy-In

    Obtain desire from stakeholders to move forward with organizational redesign initiative by involving them in the process to gain interest. This will provide the stakeholders with assurance that their concerns are being heard and will help them to understand the benefits that can be anticipated from the new organizational structure.

    “You’re more likely to get buy-in if you have good reason for the proposed changes – and the key is to emphasize the benefits of an organizational redesign.”

    Source: Lucid Chart

    Info-Tech Insight

    Just because people are aware does not mean they agree. Help different stakeholders understand how the change in the organizational structure is a benefit by specifically stating the benefit to them.

    Info-Tech uses capabilities in your organizational design

    We differentiate between capabilities and competencies.

    Capabilities

    • Capabilities are focused on the entire system that would be in place to satisfy a particular need. This includes the people who are competent to complete a specific task and also the technology, processes, and resources to deliver.
    • Capabilities work in a systematic way to deliver on specific need(s).
    • A functional area is often made up of one or more capabilities that support its ability to deliver on that function.
    • Focusing on capabilities rather then the individuals in organizational redesign enables a more objective and holistic view of what your organization is striving toward.

    Competencies

    • Competencies on the other hand are specific to an individual. It determines if the individual poses the skills or ability to perform.
    • Competencies are rooted in the term competent, which looks to understand if you are proficient enough to complete the specific task at hand.
    • Source: The People Development Magazine, 2020

    Use our IT capabilities to establish your IT organization design

    The image contains a diagram of the various services and blueprints that Info-Tech has to offer.

    2.1 Augment the capability list

    1-3 hours

    1. Using the capability list on the previous slide, go through each of the IT capabilities and remove any capabilities for which your IT organization is not responsible and/or accountable. Refer to the Operating Model and Capability Definition List for descriptions of each of the IT capabilities.
    2. Augment the language of specific capabilities that you feel are not directly reflective of what is being done within your organizational context or that you feel need to be changed to reflect more specifically how work is being done in your organization.
    • For example, some organizations may refer to their service desk capability as help desk or regional support. Use a descriptive term that most accurately reflects the terminology used inside the organization today.
  • Add any core capabilities from your organization that are missing from the provided IT capability list.
    • For example, organizations that leverage DevOps capabilities for their product development may desire to designate this in their operating model.
  • Document the rationale for decisions made for future reference.
  • Input Output
    • Baseline list of IT capabilities
    • IT capabilities required to support IT strategy
    • Customized list of IT capabilities
    Materials Participants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership

    Record the results in the Organizational Design Workbook

    Gaps in delivery

    Identify areas that require greater focus and attention.

    Assess the gaps between where you currently are and where you need to be. Evaluate how critical and how effective your capabilities are:

    • Criticality = Importance
      • Try to focus on those which are highly critical to the organization.
      • These may be capabilities that have been identified in your strategies as areas to focus on.
    • Effectiveness = Performance
      • Identify those where the process or system is broken or ineffective, preventing the team from delivering on the capability.
      • Effectiveness could take into consideration how scalable, adaptable, or sustainable each capability is.
      • Focus on the capabilities that are low or medium in effectiveness but highly critical. Addressing the delivery of these capabilities will lead to the most positive outcomes in your organization.

    Remember to identify what allows the highly effective capabilities to perform at the capacity they are. Leverage this when increasing effectiveness elsewhere.

    High Gap

    There is little to no effectiveness (high gap) and the capability is highly important to your organization.

    Medium Gap

    Current ability is medium in effectiveness (medium gap) and there might be some priority for that capability in your organization.

    Low Gap

    Current ability is highly effective (low gap) and the capability is not necessarily a priority for your organization.

    2.2 Heatmap capabilities to determine gaps in delivery

    1-3 hours

    1. At this point, you should have identified what capabilities you need to have to deliver on your organization's goals and initiatives.
    2. Convene a group of the key stakeholders involved in the IT organizational design initiative.
    3. Review your IT capabilities and color each capability border according to the effectiveness and criticality of that capability, creating a heat map.
    • Green indicates current ability is highly effective (low gap) and the capability is not necessarily a priority for your organization.
    • Yellow indicates current ability is medium in effectiveness (medium gap) and there might be some priority for that capability in your organization.
    • Red indicates that there is little to no effectiveness (high gap) and the capability is highly important to your organization.
    Input Output
    • Selected capabilities from activity 2.1
    • Gap analysis in delivery of capabilities currently
    Materials Participants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership

    Record the results in the Organizational Design Workbook

    Don’t forget the why: why are you considering outsourcing?

    There are a few different “types” of outsourcing:

    1. Competitive Advantage – Working with a third-party organization for the knowledge, insights, and best practices they can bring to your organization.
    2. Managed Service– The third party manages a capability or function for your organization.
    3. Staff Augmentation – Your organization brings in contractors and third-party organizations to fill specific skills gaps.

    Weigh which sourcing model(s) will best align with the needed capabilities to deliver effectively

    Insourcing

    Staff Augmentation

    Managed Service

    Competitive Advantage

    Description

    The organization maintains full responsibility for the management and delivery of the IT capability or service.

    Vendor provides specialized skills and enables the IT capability or service together with the organization to meet demand.

    Vendor completely manages the delivery of value for the IT capability, product or service.

    Vendor has unique skills, insights, and best practices that can be taught to staff to enable insourced capability and competency.

    Benefits

    • Retains in-house control over proprietary knowledge and assets that provide competitive or operational advantage.
    • Gains efficiency due to integration into the organization’s processes.
    • Provision of unique skills.
    • Addresses variation in demand for resources.
    • Labor cost savings.
    • Improves use of internal resources.
    • Improves effectiveness due to narrow specialization.
    • Labor cost savings.
    • Gain insights into aspects that could provide your organization with advantages over competitors.
    • Long-term labor cost savings.
    • Short-term outsourcing required.
    • Increase in-house competencies.

    Drawbacks

    • Quality of services/capabilities might not be as high due to lack of specialization.
    • No labor cost savings.
    • Potentially inefficient distribution of labor for the delivery of services/capabilities.
    • Potential conflicts in management or delivery of IT services and capabilities.
    • Negative impact on staff morale.
    • Limited control over services/capabilities.
    • Limited integration into organization’s processes.
    • Short-term labor expenses.
    • Requires a culture of continuous learning and improvement.

    Your strategy for outsourcing will vary with capability and capacity

    The image contains a diagram to show the Develop Vendor Management Capabilities, as described in the text below.

    Capability

    Capacity

    Outsourcing Model

    Low

    Low

    Your solutions may be with you for a long time, so it doesn’t matter whether it is a strategic decision to outsource development or if you are not able to attract the talent required to deliver in your market. Look for a studio, agency, or development shop that has a proven reputation for long-term partnership with its clients.

    Low

    High

    Your team has capacity but needs to develop new skills to be successful. Look for a studio, agency, or development shop that has a track record of developing its customers and delivering solutions.

    High

    Low

    Your organization knows what it is doing but is strapped for people. Look at “body shops” and recruiting agencies that will support short-term development contracts that can be converted to full-time staff or even a wholesale development shop acquisition.

    High

    High

    You have capability and capacity for delivering on your everyday demands but need to rise to the challenge of a significant, short-term rise in demand on a critical initiative. Look for a major system integrator or development shop with the specific expertise in the appropriate technology.

    Use these criteria to inform your right sourcing strategy

    Sourcing Criteria

    Description

    Determine whether you’ll outsource using these criteria

    1. Critical or commodity

    Determine whether the component to be sourced is critical to your organization or if it is a commodity. Commodity components, which are either not strategic in nature or related to planning functions, are likely candidates for outsourcing. Will you need to own the intellectual property created by the third party? Are you ok if they reuse that for their other clients?

    2. Readiness to outsource

    Identify how easy it would be to outsource a particular IT component. Consider factors such as knowledge transfer, workforce reassignment or reduction, and level of integration with other components.

    Vendor management readiness – ensuring that you have sufficient capabilities to manage vendors – should also be considered here.

    3. In-house capabilities

    Determine if you have the capability to deliver the IT solutions in-house. This will help you establish how easy it would be to insource an IT component.

    4. Ability to attract resources (internal vs. outsourced)

    Determine if the capability is one that is easily sourced with full-time, internal staff or if it is a specialty skill that is best left for a third-party to source.

    Determine your sourcing model using these criteria

    5. Cost

    Consider the total cost (investment and ongoing costs) of the delivery of the IT component for each of the potential sourcing models for a component.

    6. Quality

    Define the potential impact on the quality of the IT component being sourced by the possible sourcing models.

    7. Compliance

    Determine whether the sourcing model would fit with regulations in your industry. For example, a healthcare provider would only go for a cloud option if that provider is HIPAA compliant.

    8. Security

    Identify the extent to which each sourcing option would leave your organization open to security threats.

    9. Flexibility

    Determine the extent to which the sourcing model will allow your organization to scale up or down as demand changes.

    2.3 Identify capabilities that could be outsourced

    1-3 hours

    1. For each of the capabilities that will be in your future-state operating model, determine if it could be outsourced. Review the sourcing criteria available on the previous slide to help inform which sourcing strategy you will use for each capability.
    2. When looking to outsource or co-source capabilities, consider why that capability would be outsourced:
    • Competitive Advantage – Work with a third-party organization for the knowledge, insights, and best practices they can bring to your organization.
    • Managed Service – The third party manages a capability or function for your organization.
    • Staff Augmentation – Your organization brings in contractors and third-party organizations to fill specific skills gaps.
  • Place an asterisk (*) around the capabilities that will be leveraging one of the three previous sourcing options.
  • InputOutput
    • Customized IT capabilities
    • Sourcing strategy for each IT capability
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership

    Record the results in the Organizational Design Workbook

    What is an operating model?

    Leverage a cohesive operating model throughout the organizational design process.

    An IT operating model sketch 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. It ensures consistency of all elements in the organizational structure through a clear and coherent blueprint.

    The visual should be the optimization and alignment of the IT organization’s structure to deliver the capabilities required to achieve business goals. Additionally, it should clearly show the flow of work so that key stakeholders can understand where inputs flow in and outputs flow out of the IT organization. Investing time in the front end 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 your model to change as the business changes.

    The image contains an example of an operating model as described in the text above.

    Info-Tech Insight

    Every structure decision you make should be based on an identified need, not on a trend.Build your IT organization to enable the priorities of the organization.

    Each IT operating model is characterized by a variety of advantages and disadvantages

    Centralized

    Hybrid

    Decentralized

    Advantages
    • Maximum flexibility to allocate IT resources across business units.
    • Low-cost delivery model and greatest economies of scale.
    • Control and consistency offers opportunity for technological rationalization and standardization and volume purchasing at the highest degree.
    • Centralizes processes and services that require consistency across the organization.
    • Decentralizes processes and services that need to be responsive to local market conditions.
    • Eliminates duplication and redundancy by allowing effective use of common resources (e.g. shared services, standardization).
    • Goals are aligned to the distinct business units or functions.
    • Greater flexibility and more timely delivery of services.
    • Development resources are highly knowledgeable about business-unit-specific applications.
    • Business unit has greatest control over IT resources and can set and change priorities as needed.

    Disadvantages

    • Less able to respond quickly to local requirements with flexibility.
    • IT can be resistant to change and unwilling to address the unique needs of end users.
    • Business units can be frustrated by perception of lack of control over resources.
    • Development of special business knowledge can be limited.
    • Requires the most disciplined governance structure and the unwavering commitment of the business; therefore, it can be the most difficult to maintain.
    • Requires new processes as pooled resources must be staffed to approved projects.
    • Redundancies, conflicts, and incompatible technologies can result from business units having differentiated services and applications – increasing cost.
    • Ability to share IT resources is low due to lack of common approaches.
    • Lack of integration limits the communication of data between businesses and reduces common reporting.

    Decentralization can take many forms – define what it means to your organization

    Decentralization can take a number of different forms depending on the products the organization supports and how the organization is geographically distributed. Use the following set of explanations to understand the different types of decentralization possible and when they may make sense for supporting your organizational objectives.

    Line of Business

    Decentralization by lines of business (LoB) aligns decision making with business operating units based on related functions or value streams. Localized priorities focus the decision making from the CIO or IT leadership team. This form of decentralization is beneficial in settings where each line of business has a unique set of products or services that require specific expertise or flexible resourcing staffing between the teams.

    Product Line

    Decentralization by product line organizes your team into operationally aligned product families to improve delivery throughput, quality, and resource flexibility within the family. By adopting this approach, you create stable product teams with the right balance between flexibility and resource sharing. This reinforces value delivery and alignment to enterprise goals within the product lines.

    Geographical

    Geographical decentralization reflects a shift from centralized to regional influences. When teams are in different locations, they can experience a number of roadblocks to effective communication (e.g. time zones, regulatory differences in different countries) that may necessitate separating those groups in the organizational structure, so they have the autonomy needed to make critical decisions.

    Functional

    Functional decentralization allows the IT organization to be separated by specialty areas. Organizations structured by functional specialization can often be organized into shared service teams or centers of excellence whereby people are grouped based on their technical, domain, or functional area within IT (Applications, Data, Infrastructure, Security, etc.). This allows people to develop specialized knowledge and skills but can also reinforce silos between teams.

    2.4 Review and select a base operating model sketch

    1 hour

    1. Review the set of base operating model sketches available on the following slides.
    2. For each operating model sketch, there are benefits and risks to be considered. Make an informed selection by understanding the risks that your organization might be taking on by adopting that particular operating model.
    3. If at any point in the selection process the group is unsure about which operating model will be the right fit, refer back to your design principles established in activity 1.4. These should guide you in the selection of the right operating model and eliminate those which will not serve the organization.
    InputOutput
    • Organizational design principles
    • Customized list of IT capabilities
    • Operating model sketch examples
    • Selected operating model sketch
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership

    Record the results in the Organizational Design Workbook

    Centralized Operating Model #1: Plan-Build-Run

    I want to…

    • Establish a formalized governance process that takes direction from the organization on which initiatives should be prioritized by IT.
    • Ensure there is a clear separation between teams that are involved in strategic planning, building solutions, and delivering operational support.
    • Be able to plan long term by understanding the initiatives that are coming down the pipeline and aligning to an infrequent budgeting plan.

    BENEFITS

    • Effective at implementing long-term plans efficiently; separates maintenance and projects to allow each to have the appropriate focus.
    • More oversight over financials; better suited for fixed budgets.
    • Works across centralized technology domains to better align with the business’ strategic objectives – allows for a top-down approach to decision making.
    • Allows for economies of scale and expertise pooling to improve IT’s efficiency.
    • Well-suited for a project-driven environment that employs waterfall or a hybrid project management methodology that is less iterative.

    RISKS

    • Creates artificial silos between the build (developers) and run (operations staff) teams, as both teams focus on their own responsibilities and often fail to see the bigger picture.
    • Miss opportunities to deliver value to the organization or innovate due to an inability to support unpredictable/shifting project demands as decision making is centralized in the plan function.
    • The portfolio of initiatives being pursued is often determined before requirements analysis takes place, meaning the initiative might be solving the wrong need or problem.
    • Depends on strong hand-off processes to be defined and strong knowledge transfer from build to run functions in order to be successful.
    The image contains an example of a Centralized Operating Model: Plan-Build-Run.

    Centralized Operating Model #2: Demand-Develop-Service

    I want to…

    • Listen to the business to understand new initiatives or service enhancements being requested.
    • Enable development and operations to work together to seamlessly deliver in a DevOps culture.
    • Govern and confirm that initiatives being requested by the business are still aligned to IT’s overarching strategy and roadmap before prioritizing those initiatives.

    BENEFITS

    • Aligns well with an end-to-end services model; constant attention to customer demand and service supply.
    • Centralizes service operations under one functional area to serve shared needs across lines of business.
    • Allows for economies of scale and expertise pooling to improve IT’s efficiency.
    • Elevates sourcing and vendor management as its own strategic function; lends well to managed service and digital initiatives.
    • Development and operations housed together; lends well to DevOps-related initiatives and reduces the silos between these two core groups.

    RISKS

    • IT prioritizes the initiatives it thinks are a priority to the business based on how well it establishes good stakeholder relations and communications.
    • Depends on good governance to prevent enhancements and demands from being prioritized without approval from those with accountability and authority.
    • This model thrives in a DevOps culture but does not mean it ensures your organization is a “DevOps” organization. Be sure you're encouraging the right behaviors and attitudes.

    The image contains an example of a Centralized Operating Model: Demand, Develop, Service.

    Hybrid Operating Model #1: LOB/Functional Aligned

    I want to…

    • Better understand the various needs of the organization to align IT priorities and ensure the right services can be delivered.
    • Keep all IT decisions centralized to ensure they align with the overarching strategy and roadmap that IT has set.
    • Organize your shared services in a strategic manner that enables delivery of those services in a way that fits the culture of the organization and the desired method of operating.

    BENEFITS

    • Best of both worlds of centralization and decentralization; attempts to channel benefits from both centralized and decentralized models.
    • Embeds key IT functions that require business knowledge within functional areas, allowing for critical feedback and the ability to understand those business needs.
    • Places IT in a position to not just be “order takers” but to be more involved with the different business units and promote the value of IT.
    • Achieves economies of scale where necessary through the delivery of shared services that can be requested by the function.
    • Shared services can be organized to deliver in the best way that suits the organization.

    RISKS

    • Different business units may bypass governance to get their specific needs met by functions – to alleviate this, IT must have strong governance and prioritize amongst demand.
    • Decentralized role can be viewed as an order taker by the business if not properly embedded and matured.
    • No guaranteed synergy and integration across functions; requires strong communication, collaboration, and steering.
    • Cannot meet every business unit’s needs – can cause tension from varying effectiveness of the IT functions.

    The image contains an example of a Hybrid Operating Model: LOB/Functional Aligned.

    Hybrid Model #2: Product-Aligned Operating Model

    I want to…

    • Align my IT organization into core products (services) that IT provides to the organization and establish a relationship with those in the organization that have alignment to that product.
    • Have roles dedicated to the lifecycle of their product and ensure the product can continuously deliver value to the organization.
    • Maintain centralized set of standards as it applies to overall IT strategy, security, and architecture to ensure consistency across products and reduce silos.

    BENEFITS

    • Focus is on the full lifecycle of a product – takes a strategic view of how technology enables the organization.
    • Promotes centralized backlog around a specific value creator, rather than a traditional project focus that is more transactional.
    • Dedicated teams around the product family ensure you have all of the resources required to deliver on your product roadmap.
    • Reduces barriers between IT and business stakeholders; focuses on technology as a key strategic enabler.
    • Delivery is largely done through frequent releases that can deliver value.

    RISKS

    • If there is little or no business involvement, it could prevent IT from truly understanding business demand and prioritizing the wrong work.
    • A lack of formal governance can create silos between the IT products, causing duplication of efforts, missed opportunities for collaboration, and redundancies in application or vendor contracts.
    • Members of each product can interpret the definition of standards (e.g. architecture, security) differently.

    The image contains an example of the Hybrid Operating Model: Product-Aligned Operating Model.

    Hybrid Operating Model #3: Service-Aligned Operating Model

    I want to…

    • Decentralize the IT organization by the various IT services it offers to the organization while remaining centralized with IT strategy, governance, security and operational services.
    • Ensure IT services are defined and people resources are aligned to deliver on those services.
    • Enable each of IT’s services to have the autonomy to understand the business needs and be able to manage the operational and new project initiatives with a dedicated service owner or business relationship manager.

    BENEFITS

    • Strong enabler of agility as each service has the autonomy to make decisions around operational work versus project work based on their understanding of the business demand.
    • Individuals in similar roles that are decentralized across services are given coaching to provide common direction.
    • Allows teams to efficiently scale with service demand.
    • This is a structurally baseline DevOps model. Each group will have services built within that have their own dedicated teams that will handle the full gambit of responsibilities, from new features to enhancements and maintenance.

    RISKS

    • Service owners require a method to collaborate to avoid duplication of efforts or projects that conflict with the efforts of other IT services.
    • May result in excessive cost through role redundancies across different services, as each will focus on components like integration, stakeholder management, project management, and user experiences.
    • Silos cause a high degree of specialization, making it more difficult for team members to imagine moving to another defined service group, limiting potential career advancement opportunities.
    • The level of complex knowledge required by shared services (e.g. help desk) is often beyond what they can provide, causing them to rely on and escalate to defined service groups more than with other operating models.

    The image contains an example of the Hybrid Operating Model: Service-Aligned Operating Model.

    Decentralized Model: Division Decentralization (LoB, Geography, Function, Product)

    I want to…

    • Decentralize the IT organization to enable greater autonomy within specific groups that have differing customer demands and levels of support.
    • Maintain a standard level of service that can be provided by IT for all divisions.
    • Ensure each division has access to critical data and reports that supports informed decision making.

    BENEFITS

    • Organization around functions allows for diversity in approach in how areas are run to best serve a specific business unit’s needs.
    • Each functional line exists largely independently, with full capacity and control to deliver service at the committed SLAs.
    • Highly responsive to shifting needs and demands with direct connection to customers and all stages of the solution development lifecycle.
    • Accelerates decision making by delegating authority lower into the function.
    • Promotes a flatter organization with less hierarchy and more direct communication with the CIO.

    RISKS

    • Requires risk and security to be centralized and have oversight of each division to prevent the decisions of one division from negatively impacting other divisions or the enterprise.
    • Less synergy and integration across what different lines of business are doing can result in redundancies and unnecessary complexity.
    • Higher overall cost to the IT group due to role and technology duplication across different divisions.
    • It will be difficult to centralize aspects of IT in the future, as divisions adopt to a culture of IT autonomy.

    The image contains an example of the Decentralized Model: Division Decentralization.

    Enterprise Model: Multi-Modal

    I want to…

    • Have an organizational structure that leverages several different operating models based on the needs and requirements of the different divisions.
    • Provide autonomy and authority to the different divisions so they can make informed and necessary changes as they see fit without seeking approval from a centralized IT group.
    • Support the different initiatives the enterprise is focused on delivering and ensure the right model is adopted based on those initiatives.

    BENEFITS

    • Allows for the organization to work in ways that best support individual areas; for example, areas that support legacy systems can be supported through traditional operating models while areas that support digital transformations may be supported through more flexible operating models.
    • Enables a specialization of knowledge related to each division.

    RISKS

    • Inconsistency across the organization can lead to confusion on how the organization should operate.
    • Parts of the organization that work in more traditional operating models may feel limited in career growth and innovation.
    • Cross-division initiatives may require greater oversight and a method to enable operations between the different focus areas.

    The image contains an example of the Enterprise Model: Multi-Modal.

    Create enabling teams that bridge your divisions

    The following bridges might be necessary to augment your divisions:

    • Specialized augmentation: There might not be a sufficient number of resources to support each division. These teams will be leveraged across the divisions; this means that the capabilities needed for each division will exist in this bridge team, rather than in the division.
    • Centers of Excellence: Capabilities that exist within divisions can benefit from shared knowledge across the enterprise. Your organization might set up centers of excellence to support best practices in capabilities organization wide. These are Forums in the unfix model, or communities of practice and support capability development rather than deliveries of each division.
    • Facilitation teams might be required to support divisions through coaching. This might include Agile or other coaches who can help teams adopt practices and embed learnings.
    • Holistic teams provide an enterprise view as they work with various divisions. This can include capabilities like user experience, which can benefit from the holistic perspective rather than a siloed one. People with these capabilities augment the divisions on an as-needed basis.
    The image contains a diagram to demonstrate the use of bridges on divisions.

    2.5 Customize the selected sketch to reflect the desired future state

    1-3 hours

    1. Using the baseline operating model sketch, walk through each of the IT capabilities. Based on the outputs from activity 2.1:
      1. Remove any capabilities for which your IT organization is not responsible and/or accountable.
      2. Augment the language of specific capabilities that you feel are not directly reflective of what is being done within your organizational context or that you feel need to be changed to reflect more specifically how work is being done in your organization.
      3. Add any core capabilities from your organization that are missing from the provided IT capability list.
    2. Move capabilities to the right places in the operating model to reflect how each of the core IT processes should interact with one another.
    3. Add bridges as needed to support the divisions in your organization. Identify which capabilities will sit in these bridges and define how they will enable the operating model sketch to deliver.
    InputOutput
    • Selected base operating model sketch
    • Customized list of IT capabilities
    • Understanding of outsourcing and gaps
    • Customized operating model sketch
    MaterialsParticipants
    • Whiteboard/flip charts
    • Operating model sketch examples
    • CIO
    • IT Leadership

    Record the results in the Organizational Design Workbook

    Document the final operating model sketch in the Communications Deck

    Phase 3

    Formalize the Organizational Structure

    This phase will walk you through the following activities:

    3.1 Create work units

    3.2 Create work unit mandates

    3.3 Define roles inside the work units

    3.4 Finalize the organizational chart

    3.5 Identify and mitigate key risks

    This phase involves the following participants:

    • CIO
    • IT Leadership
    • Business Leadership

    Embed change management into the organizational design process

    Enable adoption of the new structure.

    You don’t have to make the change in one big bang. You can adopt alternative transition plans such as increments or pilots. This allows people to see the benefits of why you are undergoing the change, allows the change message to be repeated and applied to the individuals impacted, and provides people with time to understand their role in making the new organizational structure successful.

    “Transformational change can be invigorating for some employees but also highly disruptive and stressful for others.”

    Source: OpenStax, 2019

    Info-Tech Insight

    Without considering the individual impact of the new organizational structure on each of your employees, the change will undoubtedly fail in meeting its intended goals and your organization will likely fall back into old structured habits.

    Use a top-down approach to build your target-state IT organizational sketch

    The organizational sketch is the outline of the organization that encompasses the work units and depicts the relationships among them. It’s important that you create the structure that’s right for your organization, not one that simply fits with your current staff’s skills and knowledge. This is why Info-Tech encourages you to use your operating model as a mode of guidance for structuring your future-state organizational sketch.

    The organizational sketch is made up of unique work units. Work units are the foundational building blocks on which you will define the work that IT needs to get done. The number of work units you require and their names will not match your operating model one to one. Certain functional areas will need to be broken down into smaller work units to ensure appropriate leadership and span of control.

    Use your customized operating model to build your work units

    WHAT ARE WORK UNITS?

    A work unit is a functional group or division that has a discrete set of processes or capabilities that it is responsible for, which don’t overlap with any others. Your customized list of IT capabilities will form the building blocks of your work units. Step one in the process of building your structure is grouping IT capabilities together that are similar or that need to be done in concert in the case of more complex work products. The second step is to iterate on these work units based on the organizational design principles from Phase 1 to ensure that the future-state structure is aligned with enablement of the organization’s objectives.

    Work Unit Examples

    Here is a list of example work units you can use to brainstorm what your organization’s could look like. Some of these overlap in functionality but should provide a strong starting point and hint at some potential alternatives to your current way of organizing.

    • Office of the CIO
    • Strategy and Architecture
    • Architecture and Design
    • Business Relationship Management
    • Projection and Portfolio Management
    • Solution Development
    • Solution Delivery
    • DevOps
    • Infrastructure and Operations
    • Enterprise Information Security
    • Security, Risk & Compliance
    • Data and Analytics

    Example of work units

    The image contains an example of work units.

    3.1 Create functional work units

    1-3 hours

    1. Using a whiteboard or large tabletop, list each capability from your operating model on a sticky note and recreate your operating model. Use one color for centralized activities and a second color for decentralized activities.
    2. With the group of key IT stakeholders, review the operating model and any important definitions and rationale for decisions made.
    3. Starting with your centralized capabilities, review each in turn and begin to form logical groups of compatible capabilities. Review the decentralized capabilities and repeat the process, writing additional sticky notes for capabilities that will be repeated in decentralized units.
    4. Note: Not all capabilities need to be grouped. If you believe that a capability has a high enough priority, has a lot of work, or is significantly divergent from others put this capability by itself.
    5. Define a working title for each new work unit, and discuss the pros and cons of the model. Ensure the work units still align with the operating model and make any changes to the operating model needed.
    6. Review your design principles and ensure that they are aligned with your new work units.
    InputOutput
    • Organizational business objectives
    • Customized operating model
    • Defined work units
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    Group formation

    Understand the impact of the functional groups you create.

    A group consists of two or more individuals who are working toward a common goal. Group formation is how those individuals are organized to deliver on that common goal. It should take into consideration the levels of hierarchy in your structure, the level of focus you give to processes, and where power is dispersed within your organizational design.

    Importance: Balance highly important capabilities with lower priority capabilities

    Specialization: The scope of each role will be influenced by specialized knowledge and a dedicated leader

    Effectiveness: Group capabilities that increase their efficacy

    Span of Control: Identify the right number of employees reporting to a single leader

    Choose the degree of specialization required

    Be mindful of the number of hats you’re placing on any one role.

    • Specialization exists when individuals in an organization are dedicated to performing specific tasks associated with a common goal and requiring a particular skill set. Aligning the competencies required to carry out the specific tasks based on the degree of complexity associated with those tasks ensures the right people and number of people can be assigned.
    • When people are organized by their specialties, it reduces the likelihood of task switching, reduces the time spent training or cross-training, and increases the focus employees can provide to their dedicated area of specialty.
    • There are disadvantages associated with aligning teams by their specialization, such as becoming bored and seeing the tasks they are performing as monotonous. Specialization doesn’t come without its problems. Monitor employee motivation

    Info-Tech Insight

    Smaller organizations will require less specialization simply out of necessity. To function and deliver on critical processes, some people might be asked to wear several hats.

    Avoid overloading the cognitive capacity of employees

    Cognitive load refers to the number of responsibilities that one can successfully take on.

    • When employees are assigned an appropriate number of responsibilities this leads to:
      • Engaged employees
      • Less task switching
      • Increased effectiveness on assigned responsibilities
      • Reduced bottlenecks
    • While this cognitive load can differ from employee to employee, when assigning role responsibilities, ensure each role isn’t being overburdened and spreading their focus thin.
    • Moreover, capable does not equal successful. Just because someone has the capability to take on more responsibilities doesn’t mean they will be successful.
    • Leverage the cognitive load being placed on your team to help create boundaries between teams and demonstrate clear role expectations.
    Source: IT Revolution, 2021

    Info-Tech Insight

    When you say you are looking for a team that is a “jack of all trades,” you are likely exceeding appropriate cognitive loads for your staff and losing productivity to task switching.

    Factors to consider for span of control

    Too many and too few direct reports have negative impacts on the organization.

    Complexity: More complex work should have fewer direct reports. This often means the leader will need to provide lots of support, even engaging in the work directly at times.

    Demand: Dynamic shifts in demand require more managerial involvement and therefore should have a smaller span of control. Especially if this demand is to support a 24/7 operation.

    Competency Level: Skilled employees should require less hands-on assistance and will be in a better position to support the business as a member of a larger team than those who are new to the role.

    Purpose: Strategic leaders are less involved in the day-to-day operations of their teams, while operational leaders tend to provide hands-on support, specifically when short-staffed.

    Group formation will influence communication structure

    Pick your poison…

    It’s important to understand the impacts that team design has on your services and products. The solutions that a team is capable of producing is highly dependent on how teams are structured. For example, Conway’s Law tells us that small distributed software delivery teams are more likely to produce modular service architecture, where large collocated teams are better able to create monolithic architecture. This doesn’t just apply to software delivery but also other products and services that IT creates. Note that small distributed teams are not the only way to produce quality products as they can create their own silos.

    Sources: Forbes, 2017

    Create mandates for each of your identified work units

    WHAT ARE WORK UNIT MANDATES?

    The work unit mandate should provide a quick overview of the work unit and be clear enough that any reader can understand why the work unit exists, what it does, and what it is accountable for.

    Each work unit will have a unique mandate. Each mandate should be distinguishable enough from your other work units to make it clear why the work is grouped in this specific way, rather than an alternative option. The mandate will vary by organization based on the agreed upon work units, design archetype, and priorities.

    Don’t just adopt an example mandate from another organization or continue use of the organization’s pre-existing mandate – take the time to ensure it accurately depicts what that group is doing so that its value-added activities are clear to the larger organization.

    Examples of Work Unit Mandates

    The Office of the CIO will be a strategic enabler of the IT organization, driving IT organizational performance through improved IT management and governance. A central priority of the Office of the CIO is to ensure that IT is able to respond to evolving environments and challenges through strategic foresight and a centralized view of what is best for the organization.

    The Project Management Office will provide standardized and effective project management practices across the IT landscape, including an identified project management methodology, tools and resources, project prioritization, and all steps from project initiation through to evaluation, as well as education and development for project managers across IT.

    The Solutions Development Group will be responsible for the high-quality development and delivery of new solutions and improvements and the production of customized business reports. Through this function, IT will have improved agility to respond to new initiatives and will be able to deliver high-quality services and insights in a consistent manner.

    3.2 Create work unit mandates

    1-3 hours

    1. Break into teams of three to four people and assign an equal number of work units to each team.
    2. Have each team create a set of statements that describe the overall purpose of that working group. Each mandate statement should:
    • Be clear enough that any reader can understand.
    • Explain why the work unit exists, what it does, and what it is accountable for.
    • Be distinguishable enough from your other work units to make it clear why the work is grouped in this specific way, rather than an alternative option.
  • Have each group present their work unit mandates and make changes wherever necessary.
  • InputOutput
    • Work units
    • Work unit mandates
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    Identify the key roles and responsibilities for the target IT organization

    Now that you have identified the main units of work in the target IT organization, it is time to identify the roles that will perform that work. At the end of this step, the key roles will be identified, the purpose statement will be built, and accountability and responsibility for roles will be clearly defined. Make sure that accountability for each task is assigned to one role only. If there are challenges with a role, change the role to address them (e.g. split roles or shift responsibilities).

    The image contains an example of two work units: Enterprise Architecture and PMO. It then lists the roles of the two work units.

    Info-Tech Insight

    Do not bias your role design by focusing on your existing staff’s competencies. If you begin to focus on your existing team members, you run the risk of artificially narrowing the scope of work or skewing the responsibilities of individuals based on the way it is, rather than the way it should be.

    3.3 Define roles inside the work units

    1-3 hours

    1. Select a work unit from the organizational sketch.
    2. Describe the most senior role in that work unit by asking, “what would the leader of this group be accountable or responsible for?” Define this role and move the capabilities they will be accountable for under that leader. Repeat this activity for the capabilities this leader would be responsible for.
    3. Continue to define each role that will be required in that work unit to deliver or provide oversight related to those capabilities.
    4. Continue until key roles are identified and the capabilities each role will be accountable or responsible for are clarified.
    5. Remember, only one role can have accountability for each capability but several can have responsibility.
    6. For each role, use the list of capabilities that the position will be accountable, responsible, or accountable and responsible for to create a job description. Leverage your own internal job descriptions or visit our Job Descriptions page.
    InputOutput
    • Work units
    • Work unit mandates
    • Responsibilities
    • Accountabilities
    • Roles with clarified responsibilities and accountabilities
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    Delivery model for product or solution development

    Can add additional complexity or clarity

    • Certain organizational structures will require a specific type of resourcing model to meet expectations and deliver on the development or sustainment of core products and solutions.
    • There are four common methods that we see in IT organizations:
      • Functional Roles: Completed work is handed off from functional team to functional team sequentially as outlined in the organization’s SDLC.
      • Shared Service & Resource Pools (Matrix): Resources are pulled whenever the work requires specific skills or pushed to areas where product demand is high.
      • Product or System: Work is directly sent to the teams who are directly managing the product or directly supporting the requestor.
      • Skills & Competencies: Work is directly sent to the teams who have the IT and business skills and competencies to complete the work.
    • Each of these will lead to a difference in how the functional team is skilled. They could have a great understanding of their customer, the product, the solution, or their service.

    Info-Tech Insight

    Despite popular belief, there is no such thing as the Spotify model, and organizations that structured themselves based on the original Spotify drawing might be missing out on key opportunities to obtain productivity from employees.

    Sources: Indeed, 2020; Agility Scales

    There can be different patterns to structure and resource your product delivery teams

    The primary goal of any product delivery team is to improve the delivery of value for customers and the business based on your product definition and each product’s demand. Each organization will have different priorities and constraints, so your team structure may take on a combination of patterns or may take on one pattern and then transform into another.

    Delivery Team Structure Patterns

    How Are Resources and Work Allocated?

    Functional Roles

    Teams are divided by functional responsibilities (e.g. developers, testers, business analysts, operations, help desk) and arranged according to their placement in the software development lifecycle (SDLC).

    Completed work is handed off from team to team sequentially as outlined in the organization’s SDLC.

    Shared Service and Resource Pools

    Teams are created by pulling the necessary resources from pools (e.g. developers, testers, business analysts, operations, help desk).

    Resources are pulled whenever the work requires specific skills or pushed to areas where product demand is high.

    Product or System

    Teams are dedicated to the development, support, and management of specific products or systems.

    Work is directly sent to the teams who are directly managing the product or directly supporting the requester.

    Skills and Competencies

    Teams are grouped based on skills and competencies related to technology (e.g. Java, mobile, web) or familiarity with business capabilities (e.g. HR, Finance).

    Work is directly sent to the teams who have the IT and business skills and competencies to complete the work.

    Delivery teams will be structured according to resource and development needs

    Functional Roles

    Shared Service and Resource Pools

    Product or System

    Skills and Competencies

    When your people are specialists versus having cross-functional skills

    Leveraged when specialists such as Security or Operations will not have full-time work on the product

    When you have people with cross-functional skills who can self-organize around a product’s needs

    When you have a significant investment in a specific technology stack

    The image contains a diagram of functional roles.The image contains a diagram of shared service and resource pools.The image contains a diagram of product or system.The image contains a diagram of skills and competencies.

    For more information about delivering in a product operating model, refer to our Deliver Digital Products at Scale blueprint.

    3.4 Finalize the organizational chart

    1-3 hours

    1. Import each of your work units and the target-state roles that were identified for each.
    2. In the place of the name of each work unit in your organizational sketch, replace the work unit name with the prospective role name for the leader of that group.
    3. Under each of the leadership roles, import the names of team members that were part of each respective work unit.
    4. Validate the final structure as a group to ensure each of the work units includes all the necessary roles and responsibilities and that there is clear delineation of accountabilities between the work units.

    Input

    Output

    • Work units
    • Work unit mandates
    • Roles with accountabilities and responsibilities
    • Finalized organizational chart

    Materials

    Participants

    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook & Executive Communications Deck

    Proactively consider and mitigate redesign risks

    Every organizational structure will include certain risks that should have been considered and accepted when choosing the base operating model sketch. Now that the final organizational structure has been created, consider if those risks were mitigated by the final organizational structure that was created. For those risks that weren’t mitigated, have a tactic to control risks that remain present.

    3.5 Identify and mitigate key risks

    1-3 hours

    1. For each of the operating model sketch options, there are specific risks that should have been considered when selecting that model.
    2. Take those risks and transfer them into the correct slide of the Organizational Design Workbook.
    3. Consider if there are additional risks that need to be considered with the new organizational structure based on the customizations made.
    4. For each risk, rank the severity of that risk on a scale of low, medium, or high.
    5. Determine one or more mitigation tactic(s) for each of the risks identified. This tactic should reduce the likelihood or impact of the risk event happening.
    InputOutput
    • Final organizational structure
    • Operating model sketch benefits and risks
    • Redesign risk mitigation plan
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    Phase 4

    Plan for Implementation & Change

    This phase will walk you through the following activities:

    4.1 Select a transition plan

    4.2 Establish the change communication messages

    4.3 Be consistent with a standard set of FAQs

    4.4 Define org. redesign resistors

    4.5 Create a sustainment plan

    This phase involves the following participants:

    • CIO
    • IT Leadership
    • Business Leadership
    • HR Business Partners

    All changes require change management

    Change management is:

    Managing a change that requires replanning and reorganizing and that causes people to feel like they have lost control over aspects of their jobs.

    – Padar et al., 2017
    People Process Technology

    Embedding change management into organizational design

    PREPARE A

    Awareness: Establish the need for organizational redesign and ensure this is communicated well.

    This blueprint is mostly focused on the prepare and transition components.

    D

    Desire: Ensure the new structure is something people are seeking and will lead to individual benefits for all.

    TRANSITION K

    Knowledge: Provide stakeholders with the tools and resources to function in their new roles and reporting structure.

    A

    Ability: Support employees through the implementation and into new roles or teams.

    FUTURE R

    Reinforcement: Emphasize and reward positive behaviors and attitudes related to the new organizational structure.

    Implementing the new organizational structure

    Implementing the organizational structure can be the most difficult part of the process.

    • To succeed in the process, consider creating an implementation plan that adequately considers these five components.
    • Each of these are critical to supporting the final organizational structure that was established during the redesign process.

    Implementation Plan

    Transition Plan: Identify the appropriate approach to making the transition, and ensure the transition plan works within the context of the business.

    Communication Strategy: Create a method to ensure consistent, clear, and concise information can be provided to all relevant stakeholders.

    Plan to Address Resistance: Given that not everyone will be happy to move forward with the new organizational changes, ensure you have a method to hear feedback and demonstrate concerns have been heard.

    Employee Development Plan: Provide employees with tools, resources, and the ability to demonstrate these new competencies as they adjust to their new roles.

    Monitor and Sustain the Change: Establish metrics that inform if the implementation of the new organizational structure was successful and reinforce positive behaviors.

    Define the type of change the organizational structure will be

    As a result, your organization must adopt OCM practices to better support the acceptance and longevity of the changes being pursued.

    Incremental Change

    Transformational Change

    Organizational change management is highly recommended and beneficial for projects that require people to:

    • Adopt new tools and workflows.
    • Learn new skills.
    • Comply with new policies and procedures.
    • Stop using old tools and workflows.

    Organizational change management is required for projects that require people to:

    • Move into different roles, reporting structures, and career paths.
    • Embrace new responsibilities, goals, reward systems, and values.
    • Grow out of old habits, ideas, and behaviors.
    • Lose stature in the organization.

    Info-Tech Insight

    How you transition to the new organizational structure can be heavily influenced by HR. This is the time to be including them and leveraging their expertise to support the transition “how.”

    Transition Plan Options

    Description

    Pros

    Cons

    Example

    Big Bang Change

    Change that needs to happen immediately – “ripping the bandage off.”

    • It puts an immediate stop to the current way of operating.
    • Occurs quickly.
    • More risky.
    • People may not buy into the change immediately.
    • May not receive the training needed to adjust to the change.

    A tsunami in Japan stopped all imports and exports. Auto manufacturers were unable to get parts shipped and had to immediately find an alternative supplier.

    Incremental Change

    The change can be rolled out slower, in phases.

    • Can ensure that people are bought in along the way through the change process, allowing time to adjust and align with the change.
    • There is time to ensure training takes place.
    • It can be a timely process.
    • If the change is dragged on for too long (over several years) the environment may change and the rationale and desired outcome for the change may no longer be relevant.

    A change in technology, such as HRIS, might be rolled out one application at a time to ensure that people have time to learn and adjust to the new system.

    Pilot Change

    The change is rolled out for only a select group, to test and determine if it is suitable to roll out to all impacted stakeholders.

    • Able to test the success of the change initiative and the implementation process.
    • Able to make corrections before rolling it out wider, to aid a smooth change.
    • Use the pilot group as an example of successful change.
    • Able to gain buy-in and create change champions from the pilot group who have experienced it and see the benefits.
    • Able to prevent an inappropriate change from impacting the entire organization.
    • Lengthy process.
    • Takes time to ensure the change has been fully worked through.

    A retail store is implementing a new incentive plan to increase product sales. They will pilot the new incentive plan at select stores, before rolling it out broadly.

    4.1 Select a transition plan approach

    1-3 hours

    1. List each of the changes required to move from your current structure to the new structure. Consider:
      1. Changes in reporting structure
      2. Hiring new members
      3. Eliminating positions
      4. Developing key competencies for staff
    2. Once you’ve defined all the changes required, consider the three different transition plan approaches: big bang, incremental, and pilot. Each of the transition plan approaches will have drawbacks and benefits. Use the list of changes to inform the best approach.
    3. If you are proceeding with the incremental or the pilot, determine the order in which you will proceed with the changes or the groups that will pilot the new structure first.
    InputOutput
    • Customized operating model sketch
    • New org. chart
    • Current org. chart
    • List of changes to move from current to future state
    • Transition plan to support changes
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • HR Business Partners

    Record the results in the Organizational Design Workbook

    Make a plan to effectively manage and communicate the change

    Success of your new organizational structure hinges on adequate preparation and effective communication.

    The top challenge facing organizations in completing the organizational redesign is their organizational culture and acceptance of change. Effective planning for the implementation and communication throughout the change is pivotal. Make sure you understand how the change will impact staff and create tailored plans for communication.

    65% of managers believe the organizational change is effective when provided with frequent and clear communication.

    Source: SHRM, 2021

    Communicate reasons for organizational structure changes and how they will be implemented

    Leaders of successful change spend considerable time developing a powerful change message, i.e. a compelling narrative that articulates the desired end state, and that makes the change concrete and meaningful to staff.

    The 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 change will be implemented.
    • Address how change will affect various roles in the organization.
    • Discuss the staff’s role in making the change successful.

    Five elements of communicating change

    • 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 and individual?
    Source: Cornelius & Associates, 2010

    4.2 Establish the change communication messages

    2 hours

    1. The purpose of this activity is to establish a change communication message you can leverage when talking to stakeholders about the new organizational structure.
    2. Review the questions in the Organizational Design Workbook.
    3. Establish a clear message around the expected changes that will have to take place to help realize the new organizational structure.
    InputOutput
    • Customized operating model sketch
    • New org. chart
    • Current org. chart
    • List of changes
    • Transition plan
    • Change communication message for new organizational structure
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    Apply the following communication principles to make your IT organization redesign changes relevant to stakeholders

    Be Clear

    • Say what you mean and mean what you say.
    • Choice of language is important: “Do you think this is a good idea? I think we could really benefit from your insights and experience here.” Or do you mean: “I think we should do this. I need you to do this to make it happen.”
    • Don’t use jargon.

    Be Consistent

    • The core message must be consistent regardless of audience, channel, or medium.
    • Test your communication with your team or colleagues to obtain feedback before delivering to a broader audience.
    • A lack of consistency can be interpreted as an attempt at deception. This can hurt credibility and trust.

    Be Concise

    • Keep communication short and to the point so key messages are not lost in the noise.
    • There is a risk of diluting your key message if you include too many other details.

    Be Relevant

    • Talk about what matters to the stakeholder.
    • Talk about what matters to the initiative.
    • Tailor the details of the message to each stakeholder’s specific concerns.
    • 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.

    Frequently asked questions (FAQs) provide a chance to anticipate concerns and address them

    As a starting point for building an IT organizational design implementation, look at implementing an FAQ that will address the following:

    • The what, who, when, why, and where
    • The transition process
    • What discussions should be held with clients in business units
    • HR-centric questions

    Questions to consider answering:

    • What is the objective of the IT organization?
    • What are the primary changes to the IT organization?
    • What does the new organizational structure look like?
    • What are the benefits to our IT staff and to our business partners?
    • How will the IT management team share new information with me?
    • What is my role during the transition?
    • What impact is there to my reporting relationship within my department?
    • What are the key dates I should know about?

    4.3 Be consistent with a standard set of FAQs

    1 hour

    1. Beyond the completed communications plans, brainstorm a list of answers to the key “whats” of your organizational design initiative:
    • What is the objective of the IT organization?
    • What are the primary changes to the IT organization?
    • What does the new organizational structure look like?
    • What are the benefits to our IT staff and to our business partners?
  • Think about any key questions that may rise around the transition:
    • How will the IT management team share new information with me?
    • What is my role during the transition?
    • What impact is there to my reporting relationship within my department?
    • What are the key dates I should know about?
  • Determine the best means of socializing this information. If you have an internal wiki or knowledge-sharing platform, this would be a useful place to host the information.
  • InputOutput
    • Driver(s) for the new organizational structure
    • List of changes to move from current to future state
    • Change communication message
    • FAQs to provide to staff about the organizational design changes
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    The change reaction model

    The image contains a picture of the change reaction model. The model includes a double arrow pointing in both directions of left and right. On top of the arrow are 4 circles spread out on the arrow. They are labelled: Active Resistance, Detachment, Questioning, Acceptance.

    (Adapted from Cynthia Wittig)

    Info-Tech Insight

    People resist changes for many reasons. When it comes to organizational redesign changes, some of the most common reasons people resist change include a lack of understanding, a lack of involvement in the process, and fear.

    Include employees in the employee development planning process

    Prioritize

    Assess employee to determine competency levels and interests.

    Draft

    Employee drafts development goals; manager reviews.

    Select

    Manager helps with selection of development activities.

    Check In

    Manager provides ongoing check-ins, coaching, and feedback.

    Consider core and supplementary components that will sustain the new organizational structure

    Supplementary sustainment components:

    • Tools & Resources
    • Structure
    • Skills
    • Work Environment
    • Tasks
    • Disincentives

    Core sustainment components:

    • Empowerment
    • Measurement
    • Leadership
    • Communication
    • Incentives

    Sustainment Plan

    Sustain the change by following through with stakeholders, gathering feedback, and ensuring that the change rationale and impacts are clearly understood. Failure to so increases the potential that the change initiative will fail or be a painful experience and cost the organization in terms of loss of productivity or increase in turnover rates.

    Support sustainment with clear measurements

    • Measurement is one of the most important components of monitoring and sustaining the new organizational structure as it provides insight into where the change is succeeding and where further support should be added.
    • There should be two different types of measurements:
    1. Standard Change Management Metrics
    2. Organizational Redesign Metrics
  • When gathering data around metrics, consider other forms of measurement (qualitative) that can provide insights on opportunities to enhance the success of the organizational redesign change.
    1. Every measurement should be rooted to a goal. Many of the goals related to organizational design will be founded in the driver of this change initiative
    2. Once the goals have been defined, create one or more measurements that determines if the goal was successful.
    3. Use specific key performance indicators (KPIs) that contain a metric that is being measured and the frequency of that measurement.

    Info-Tech Insight

    Obtaining qualitative feedback from employees, customers, and business partners can provide insight into where the new organizational structure is operating optimally versus where there are further adjustments that could be made to support the change.

    4.4 Consider sustainment metrics

    1 hour

    1. Establish metrics that bring the entire process together and that will ensure the new organizational design is a success.
    2. Go back to your driver(s) for the organizational redesign. Use these drivers to help inform a particular measurement that can be used to determine if the new organizational design will be successful. Each measurement should be related to the positive benefits of the organization, an individual, or the change itself.
    3. Once you have a list of measurements, use these to determine the specific KPI that can be qualified through a metric. Often you are looking for an increase or decrease of a particular measurement by a dollar or percentage within a set time frame.
    4. Use the example metrics in the workbook and update them to reflect your organization’s drivers.
    InputOutput
    • Driver(s) for the new organizational structure
    • List of changes to move from current to future state
    • Change communication message
    • Sustainment metrics
    MaterialsParticipants
    • Whiteboard/Flip Charts
    • CIO
    • IT Leadership
    • Business Leadership

    Record the results in the Organizational Design Workbook

    Related Info-Tech Research

    Build a Strategic IT Workforce Plan

    • Continue into the second phase of the organizational redesign process by defining the required workforce to deliver.
    • Leveraging trends, data, and feedback from your employees, define the competencies needed to deliver on the defined roles.

    Implement a New IT Organizational Structure

    • Organizational design implementations can be highly disruptive for IT staff and business partners.
    • Without a structured approach, IT leaders may experience high turnover, decreased productivity, and resistance to the change.

    Define the Role of Project Management in Agile and Product-Centric Delivery

    • There are many voices with different opinions on the role of project management. This causes confusion and unnecessary churn.
    • Project management and product management naturally align to different time horizons. Harmonizing their viewpoints can take significant work.

    Research Contributors and Experts

    The image contains a picture of Jardena London.

    Jardena London

    Transformation Catalyst, Rosetta Technology Group

    The image contains a picture of Jodie Goulden.

    Jodie Goulden

    Consultant | Founder, OrgDesign Works

    The image contains a picture of Shan Pretheshan.

    Shan Pretheshan

    Director, SUPA-IT Consulting

    The image contains a picture of Chris Briley.

    Chris Briley

    CIO, Manning & Napier

    The image contains a picture of Dean Meyer.

    Dean Meyer

    President N. Dean Meyer and Associates Inc.

    The image contains a picture of Jimmy Williams.

    Jimmy Williams

    CIO, Chocktaw Nation of Oklahoma

    Info-Tech Research Group

    Cole Cioran, Managing Partner

    Dana Daher, Research Director

    Hans Eckman, Principal Research Director

    Ugbad Farah, Research Director

    Ari Glaizel, Practice Lead

    Valence Howden, Principal Research Director

    Youssef Kamar, Senior Manager, Consulting

    Carlene McCubbin, Practice Lead

    Baird Miller, Executive Counsellor

    Josh Mori, Research Director

    Rajesh Parab, Research Director

    Gary Rietz, Executive Counsellor

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    Sherman, Fraser. “Differences between Organizational Structure and Design.” Bizfluent, 20 September 2019. Web.

    Skelton, Matthew, and Manual Pais. “Team Cognitive Load.” IT Revolution, 19 January 2021. Web.

    Skelton, Matthew, and Manual Pais. Team Topologies. IT Revolution Press, 19 September 2019. Book

    Spencer, Janet, and Michael Watkins. “Why organizational change fails.” TLNT, 26 November 2019. Web.

    Storbakken, Mandy. “The Cloud Operating Model.” VMware, 27 January 2020. Web.

    "The Qualities of Leadership: Leading Change.” Cornelius & Associates, 2010. Web.

    “Understanding Organizational Structures.” SHRM, 31 August 2021. Web.

    "unfix Pattern: Base.” AgilityScales, n.d. Web.

    Walker, Alex. “Half-Life: Alyx helped change Valve’s Approach to Development.” Kotaku, 10 July 2020. Web.

    "Why Change Management.” Prosci, n.d. Web.

    Wittig, Cynthia. “Employees' Reactions to Organizational Change.” OD Practioner, vol. 44, no. 2, 2012. Web.

    Woods, Dan. “How Platforms are neutralizing Conway’s Law.” Forbes, 15 August 2017. Web.

    Worren, Nicolay, Jeroen van Bree, and William Zybach. “Organization Design Challenges. Results from a practitioner survey.” Journal of Organizational Design, vol. 8, 25 July 2019. Web.

    Appendix

    IT Culture Framework

    This framework leverages McLean & Company’s adaptation of Quinn and Rohrbaugh’s Competing Values Approach.

    The image contains a diagram of the IT Culture Framework. The framework is divided into four sections: Competitive, Innovative, Traditional, and Cooperative, each with their own list of descriptors.

    Effectively Manage CxO Relations

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    • Parent Category Name: Manage Business Relationships
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    With the exponential pace of technological change, an organization's success will depend largely on how well CIOs can evolve from technology evangelists to strategic business partners. This will require CIOs to effectively broker relationships to improve IT's effectiveness and create business value. A confidential journal can help you stay committed to fostering productive relationships while building trust to expand your sphere of influence.

    Our Advice

    Critical Insight

    Highly effective executives have in common the ability to successfully balance three things: time, personal capabilities, and relationships. Whether you are a new CIO or an experienced leader, the relentless demands on your time and unpredictable shifts in the organization’s strategy require a personal game plan to deliver business value. Rather than managing stakeholders one IT project at a time, you need an action plan that is tailored for unique work styles.

    Impact and Result

    A personal relationship journal will help you:

    • Understand the context in which key stakeholders operate.
    • Identify the best communication approach to engage with different workstyles.
    • Stay committed to fostering relationships through difficult periods.

    Effectively Manage CxO Relations Research & Tools

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

    1. Effectively Manage CxO Relations Storyboard – A guide to creating a personal action plan to help effectively manage relationships across key stakeholders.

    Use this research to create a personal relationship journal in four steps:

    • Effectively Manage CxO Relations Storyboard

    2. Personal Relationship Management Journal Template – An exemplar to help you build your personal relationship journal.

    Use this exemplar to build a journal that is readily accessible, flexible, and easy to maintain.

    • Personal Relationship Management Journal Template

    Infographic

    Further reading

    Effectively Manage CxO Relations

    Make relationship management a daily habit with a personalized action plan.

    Analyst Perspective

    "Technology does not run an enterprise, relationships do." – Patricia Fripp

    As technology becomes increasingly important, an organization's success depends on the evolution of the modern CIO from a technology evangelist to a strategic business leader. The modern CIO will need to leverage their expansive partnerships to demonstrate the value of technology to the business while safeguarding their time and effort on activities that support their strategic priorities. CIOs struggling to transition risk obsolescence with the emergence of new C-suite roles like the Digital Transformation Officer, Chief Digital Officer, Chief Data Officer, and so on.

    CIOs will need to flex new social skills to accommodate diverse styles of work and better predict dynamic situations. This means expanding beyond their comfort level to acquire new social skills. Having a clear understanding of one's own work style (preferences, natural tendencies, motivations, and blind spots) is critical to identify effective communication and engagement tactics.

    Building trust is an art. Striking a balance between fulfilling your own goals and supporting others will require a carefully curated approach to navigate the myriad of personalities and work styles. A personal relationship journal will help you stay committed through these peaks and troughs to foster productive partnerships and expand your sphere of influence over the long term.

    Photo of Joanne Lee
    Joanne Lee
    Principal, Research Director, CIO Advisory
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    In today's unpredictable markets and rapid pace of technological disruptions, CIOs need to create business value by effectively brokering relationships to improve IT's performance. Challenges they face:

    • Operate in silos to run the IT factory.
    • Lack insights into their stakeholders and the context in which they operate.
    • Competing priorities and limited time to spend on fostering relationships.
    • Relationship management programs are narrowly focused on associated change management in IT project delivery.

    Common Obstacles

    Limited span of influence.

    Mistaking formal roles in organizations for influence.

    Understanding what key individuals want and, more importantly, what they don't want.

    Lack of situational awareness to adapt communication styles to individual preferences and context.

    Leveraging different work styles to create a tangible action plan.

    Perceiving relationships as "one and done."

    Info-Tech's Approach

    A personal relationship journal will help you stay committed to fostering productive relationships while building trust to expand your sphere of influence.

    • Identify your key stakeholders.
    • Understand the context in which they operate to define a profile of their mandate, priorities, commitments, and situation.
    • Choose the most effective engagement and communication strategies for different work styles.
    • Create an action plan to monitor and measure your progress.

    Info-Tech Insight

    Highly effective executives have in common the ability to balance three things: time, personal capabilities, and relationships. Whether you are a new CIO or an experienced leader, the relentless demand on your time and unpredictable shifts in the organization's strategy will require a personal game plan to deliver business value. This will require more than managing stakeholders one IT project at a time: It requires an action plan that fosters relationships over the long term.

    Key Concepts

    Stakeholder Management
    A common term used in project management to describe the successful delivery of any project, program, or activity that is associated with organizational change management. The goal of stakeholder management is intricately tied to the goals of the project or activity with a finite end. Not the focus of this advisory research.

    Relationship Management
    A broad term used to describe the relationship between two parties (individuals and/or stakeholder groups) that exists to create connection, inclusion, and influence. The goals are typically associated with the individual's personal objectives and the nature of the interaction is seen as ongoing and long-term.

    Continuum of Commitment
    Info-Tech's framework that illustrates the different levels of commitment in a relationship. It spans from active resistance to those who are committed to actively supporting your personal priorities and objectives. This can be used to baseline where you are today and where you want the relationship to be in the future.

    Work Style
    A reference to an individual's natural tendencies and expectations that manifest itself in their communication, motivations, and leadership skills. This is not a behavior assessment nor a commentary on different personalities but observable behaviors that can indicate different ways people communicate, interact, and lead.

    Glossary
    CDxO: Chief Digital Officer
    CDO: Chief Data Officer
    CxO: C-Suite Executives

    The C-suite is getting crowded, and CIOs need to foster relationships to remain relevant

    The span of influence and authority for CIOs is diminishing with the emergence of Chief Digital Officers and Chief Data Officers.

    63% of CDxOs report directly to the CEO ("Rise of the Chief Digital Officer," CIO.com)

    44% of organizations with a dedicated CDxO in place have a clear digital strategy versus 22% of those without a CDxO (KPMG/Harvey Nash CIO Survey)

    The "good news": CIOs tend to have a longer tenure than CDxOs.

    A diagram that shows the average tenure of C-Suites in years.
    Source: "Age and Tenure of C-Suites," Korn Ferry

    The "bad news": The c-suite is getting overcrowded with other roles like Chief Data Officer.

    A diagram that shows the number of CDOs hired from 2017 to 2021.
    Source: "Chief Data Officer Study," PwC, 2022

    An image of 7 lies technology executives tell ourselves.

    Info-Tech Insight

    The digital evolution has created the emergence of new roles like the Chief Digital Officer and Chief Data Officer. They are a response to bridge the skill gap that exists between the business and technology. CIOs need to focus on building effective partnerships to better communicate the business value generated by technology or they risk becoming obsolete.

    Create a relationship journal to effectively manage your stakeholders

    A diagram of relationship journal

    Info-Tech's approach

    From managing relationships with friends to key business partners, your success will come from having the right game plan. Productive relationships are more than managing stakeholders to support IT initiatives. You need to effectively influence those who have the potential to champion or derail your strategic priorities. Understanding differences in work styles is fundamental to adapting your communication approach to various personalities and situations.

    A diagram that shows from 1.1 to 4.1

    A diagram of business archetypes

    Summary of Insights

    Insight 1: Expand your sphere of influence
    It's not just about gaining a volume of acquaintances. Figure out where you want to spend your limited time, energy, and effort to develop a network of professional allies who will support and help you achieve your strategic priorities.

    Insight 2: Know thyself first and foremost
    Healthy relationships start with understanding your own working style, preferences, and underlying motivations that drive your behavior and ultimately your expectations of others. A win/win scenario emerges when both parties' needs for inclusion, influence, and connection are met or mutually conceded.

    Insight 3: Walk a mile in their shoes
    If you want to build successful partnerships, you need to understand the context in which your stakeholder operates: their motivations, desires, priorities, commitments, and challenges. This will help you adapt as their needs shift and, moreover, leverage empathy to identify the best tactics for different working styles.

    Insight 4: Nurturing relationships is a daily commitment
    Building, fostering, and maintaining professional relationships requires a daily commitment to a plan to get through tough times, competing priorities, and conflicts to build trust, respect, and a shared sense of purpose.

    Related Info-Tech Research

    Supplement your CIO journey with these related blueprints.

    Photo of First 100 Days as CIO

    First 100 Days as CIO

    Photo of Become a Strategic CIO

    Become a Strategic CIO

    Photo of Improve IT Team Effectiveness

    Improve IT Team Effectiveness

    Photo of Become a Transformational CIO

    Become a Transformational CIO

    Executive Brief Case Study

    Logo of Multicap Limited

    • Industry: Community Services
    • Source: Scott Lawry, Head of Digital

    Conversation From Down Under

    What are the hallmarks of a healthy relationship with your key stakeholders?
    "In my view, I work with partners like they are an extension of my team, as we rely on each other to achieve mutual success. Partnerships involve a deeper, more intimate relationship, where both parties are invested in the long-term success of the business."

    Why is it important to understand your stakeholder's situation?
    "It's crucial to remember that every IT project is a business project, and vice versa. As technology leaders, our role is to demystify technology by focusing on its business value. Empathy is a critical trait in this endeavor, as it allows us to see a stakeholder's situation from a business perspective, align better with the business vision and goals, and ultimately connect with people, rather than just technology."

    How do you stay committed during tough times?
    "I strive to leave emotions at the door and avoid taking a defensive stance. It's important to remain neutral and not personalize the issue. Instead, stay focused on the bigger picture and goals, and try to find a common purpose. To build credibility, it's also essential to fact-check assumptions regularly. By following these principles, I approach situations with a clear mind and better perspective, which ultimately helps achieve success."

    Photo of Scott Lawry, Head Of Digital at Multicap Limited

    Key Takeaways

    In a recent conversation with a business executive about the evolving role of CIOs, she expressed: "It's the worst time to be perceived as a technology evangelist and even worse to be perceived as an average CIO who can't communicate the business value of technology."

    This highlights the immense pressure many CIOs face when evolving beyond just managing the IT factory.

    The modern CIO is a business leader who can forge relationships and expand their influence to transform IT into a core driver of business value.

    Stakeholder Sentiment

    Identify key stakeholders and their perception of IT's effectiveness

    1.1 Identify Key Stakeholders

    A diagram of Identify Key Stakeholders

    Identify and prioritize your key stakeholders. Be diligent with stakeholder identification. Use a broad view to identify stakeholders who are known versus those who are "hidden." If stakeholders are missed, then so are opportunities to expand your sphere of influence.

    1.2 Understand Stakeholder's Perception of IT

    A diagram that shows Info-Tech's Diagnostic Reports and Hospital Authority XYZ

    Assess stakeholder sentiments from Info-Tech's diagnostic reports and/or your organization's satisfaction surveys to help identify individuals who may have the greatest influence to support or detract IT's performance and those who are passive observers that can become your greatest allies. Determine where best to focus your limited time amid competing priorities by focusing on the long-term goals that support the organization's vision.

    Info-Tech Insight

    Understand which individuals can directly or indirectly influence your ability to achieve your priorities. Look inside and out, as you may find influencers beyond the obvious peers or executives in an organization. Influence can result from expansive connections, power of persuasion, and trust to get things done.

    Visit Info-Tech's Diagnostic Programs

    Activity: Identify and Prioritize Stakeholders

    30-60 minutes

    1.1 Identify Key Stakeholders

    Start with the key stakeholders that are known to you. Take a 360-degree view of both internal and external connections. Leverage external professional & network platforms (e.g. LinkedIn), alumni connections, professional associations, forums, and others that can help flush out hidden stakeholders.

    1.2 Prioritize Key Stakeholders

    Use stakeholder satisfaction surveys like Info-Tech's Business Vision diagnostic as a starting point to identify those who are your allies and those who have the potential to derail IT's success, your professional brand, and your strategic priorities. Review the results of the diagnostic reports to flush out those who are:

    • Resisters: Vocal about their dissatisfaction with IT's performance and actively sabotage or disrupt
    • Skeptics: Disengaged, passive observers
    • Ambassadors: Aligned but don't proactively support
    • Champions: Actively engaged and will proactively support your success

    Consider the following:

    • Influencers may not have formal authority within an organization but have relationships with your stakeholders.
    • Influencers may be hiding in many places, like the coach of your daughter's soccer team who rows with your CEO.
    • Prioritize, i.e. three degrees of separation due to potential diverse reach of influence.

    Key Output: Create a tab for your most critical stakeholders.

    A diagram that shows profile tabs

    Download the Personal Relationship Management Journal Template.

    Understand stakeholders' business

    Create a stakeholder profile to understand the context in which stakeholders operate.

    2.1 Create individual profile for each stakeholder

    A diagram that shows different stakeholder questions

    Collect and analyze key information to understand the context in which your stakeholders operate. Use the information to derive insights about their mandate, accountabilities, strategic goals, investment priorities, and performance metrics and challenges they may be facing.

    Stakeholder profiles can be used to help design the best approach for personal interactions with individuals as their business context changes.

    If you are short on time, use this checklist to gather information:

    • Stakeholder's business unit (BU) strategy goals
    • High-level organizational chart
    • BU operational model or capability map
    • Key performance metrics
    • Projects underway and planned
    • Financial budget (if available)
    • Milestone dates for key commitments and events
    • External platforms like LinkedIn, Facebook, Twitter, Slack, Instagram, Meetup, blogs

    Info-Tech Insight

    Understanding what stakeholders want (and more importantly, what they don't) requires knowing their business and the personal and social circumstances underlying their priorities and behaviors.

    Activity: Create a stakeholder profile

    30-60 minutes

    2.1.0 Understand stakeholder's business context

    Create a profile for each of your priority stakeholders to document their business context. Review all the information collected to understand their mandate, core accountability, and business capabilities. The context in which individuals operate is a window into the motivations, pressures, and vested interests that will influence the intersectionality between their expectations and yours.

    2.1.1 Document Observable Challenges as Private Notes

    Crushing demands and competing priorities can lead to tension and stress as people jockey to safeguard their time. Identify some observable challenges to create greater situational awareness. Possible underlying factors:

    • Sudden shifts/changes in mandate
    • Performance (operations, projects)
    • Finance
    • Resource and talent gaps
    • Politics
    • Personal circumstances
    • Capability gaps/limitations
    • Capacity challenges

    A diagram that shows considerations of this activity.

    Analyze Stakeholder's Work Style

    Adapt communication styles to the situational context in which your stakeholders operate

    2.2 Determine the ideal approach for engaging each stakeholder

    Each stakeholder has a preferred modality of working which is further influenced by dynamic situations. Some prefer to meet frequently to collaborate on solutions while others prefer to analyze data in solitude before presenting information to substantiate recommendations. However, fostering trust requires:

    1. Understanding your preferred default when engaging others.
    2. Knowing where you need to expand your skills.
    3. Identifying which skills to activate for different professional scenarios.

    Adapting your communication style to create productive interactions will require a diverse arsenal of interpersonal skills that you can draw upon as situations shift. The ability to adapt your work style to dial any specific trait up or down will help to increase your powers of persuasion and influence.

    "There are only two ways to influence human behavior: you can manipulate it, or you can inspire it." – Simon Sinek

    Activity: Identify Engagement Strategies

    30 minutes

    2.2.0 Establish work styles

    Every individual has a preferred style of working. Determine work styles starting with self-awareness:

    • Express myself - How you communicate and interact with others
    • Expression by others - How you want others to communicate and interact with you

    Through observation and situational awareness, we can make inferences about people's work style.

    • Observations - Observable traits of other people's work style
    • Situations - Personal and professional circumstances that influence how we communicate and interact with one another

    Where appropriate and when opportunities arise, ask individuals directly about their preferred work styles and method for communication. What is their preferred method of communication? During a normal course of interaction vs. for urgent priorities?

    2.2.1 Brainstorm possible engagement strategies

    Consider the following when brainstorming engagement strategies for different work styles.

    A table of involvement, influence, and connection.

    Think engagement strategies in different professional scenarios:

    • Meetings - Where and how you connect
    • Communicating - How and what you communicate to create connection
    • Collaborating - What degree of involved in shared activities
    • Persuading - How you influence or direct others to get things done

    Expand New Interpersonal Skills

    Use the Business Archetypes to brainstorm possible approaches for engaging with different work styles. Additional communication and engagement tactics may need to be considered based on circumstances and changing situations.

    A diagram that shows business archetypes and engagement strategies.

    Communicate Effectively

    Productive communication is a dialogue that requires active listening, tailoring messages to fluid situations, and seeking feedback to adapt.

    A diagram of elements that contributes to better align intention and impact

    Be Relevant

    • Understand why you need to communicate
    • Determine what you need to convey
    • Tailor your message to what matters to the audience and their context
    • Identify the most appropriate medium based on the situation

    Be Consistent and Accurate

    • Say what you mean and mean what you say to avoid duplicity
    • Information should be accurate and complete
    • Communicate truthfully; do not make false promises or hide bad news
    • Don't gossip

    Be Clear and Concise

    • Keep it simple and avoid excessive jargon
    • State asks upfront to set intention and transparency
    • Avoid ambiguity and focus on outcomes over details
    • Be brief and to the point or risk losing stakeholder's attention

    Be Attentive and Authentic

    • Stay engaged and listen actively
    • Be curious and inquire for clarification or explanation
    • Be flexible to adapt to both verbal and non-verbal cues
    • Be authentic in your approach to sharing yourself
    • Avoid "canned" approaches

    A diagram of listen, observe, reflect.


    "Good communication is the bridge between confusion and clarity."– Nat Turner (LinkedIn, 2020)

    Exemplar: Engaging With Jane

    A diagram that shows Exemplar: Engaging With Jane

    Exemplar: Engaging With Ali

    A diagram that shows Exemplar: Engaging With Ali

    Develop an Action Plan

    Moving from intent to action requires a plan to ensure you stay committed through the peaks and troughs.

    Create Your 120-Day Plan

    An action plan example

    Key elements of the action plan:

    • Strategic priorities – Your top focus
    • Objective – Your goals
    • 30-60-90-120 Day Topics – Key agenda items
    • Meeting Progress Notes – Key takeaways from meetings
    • Private Notes – Confidential observations

    Investing in relationships is a long-term process. You need to accumulate enough trust to trade or establish coalitions to expand your sphere of influence. Even the strongest of professional ties will have their bouts of discord. To remain committed to building the relationship during difficult periods, use an action plan that helps you stay grounded around:

    • Shared purpose
    • Removing emotion from the situation
    • Continuously learning from every interaction

    Photo of Angela Diop
    "Make intentional actions to set intentionality. Plans are good to keep you grounded and focused especially when relationship go through ups and down and there are changes: to new people and new relationships."
    – Angela Diop, Senior Director, Executive Services, Info-Tech & former VP of Information Services with Unity Health Care

    Activity: Design a Tailored Action Plan

    30-60 minutes

    3.1.0 Determine your personal expectations

    Establish your personal goals and expectations around what you are seeking from the relationship. Determine the strength of your current connection and identify where you want to move the relationship across the continuum of commitment.

    Use insights from your stakeholder's profile to explore their span of influence and degree of interest in supporting your strategic priorities.

    3.1.1 Determine what you want from the relationship

    Based on your personal goals, identify where you want to move the relationship across the continuum of commitment: What are you hoping to achieve from the relationship? How will this help create a win/win situation for both you and the key stakeholder?

    A diagram of Continuum of Commitment.

    3.1.2 Identify your metrics for progress

    Fostering relationships take time and commitment. Utilizing metrics or personal success criteria for each of your focus areas will help you stay on track and find opportunities to make each engagement valuable instead of being transactional.

    A graph that shows influence vs interest.

    Make your action plan impactful

    Level of Connection

    The strength of the relationship will help inform the level of time and effort needed to achieve your goals.

    • Is this a new or existing relationship?
    • How often do you connect with this individual?
    • Are the connections driven by a shared purpose or transactional as needs arise?

    Focus on Relational Value

    Cultivate your network and relationship with the goal of building emotional connection, understanding, and trust around your shared purpose and organization's vision through regular dialogue. Be mindful of transactional exchanges ("quid pro quo") to be strategic about its use. Treat every interaction as equally important regardless of agenda, duration, or channel of communication.

    Plan and Prepare

    Everyone's time is valuable, and you need to come prepared with a clear understanding of why you are engaging. Think about the intentionality of the conversation:

    • Gain buy-in
    • Create transparency
    • Specific ask
    • Build trust and respect
    • Provide information to clarify, clear, or contain a situation

    Non-Verbal Communication Matters

    Communication is built on both overt expressions and subtext. While verbal communication is the most recognizable form, non-lexical components of verbal communication (i.e. paralanguage) can alter stated vs. intended meaning. Engage with the following in mind:

    • Tone, pitch, speed, and hesitation
    • Facial expressions and gestures
    • Choice of channel for engagement

    Exemplar: Action Plan for VP, Digital

    A diagram that shows Exemplar: Action Plan for VP, Digital

    Make Relationship Management a Daily Habit

    Management plans are living documents and need to be flexible to adapt to changes in stakeholder context.

    Monitor and Adjust to Communicate Strategically

    A diagram that shows Principles for Effective Communication and Key Measures

    Building trust takes time and commitment. Treat every conversation with your key stakeholders as an investment in building the social capital to expand your span of influence when and where you need it to go. This requires making relationship management a daily habit. Action plans need to be a living document that is your personal journal to document your observations, feelings, and actions. Such a plan enables you to make constant adjustments along the relationship journey.

    "Without involvement, there is no commitment. Mark it down, asterisk it, circle it, underline it."– Stephen Convey (LinkedIn, 2016)

    Capture some simple metrics

    If you can't measure your actions, you can't manage the relationship.

    An example of measures: what, why, how - metrics, and intended outcome.

    While a personal relationship journal is not a formal performance management tool, identifying some tangible measures will improve the likelihood of aligning your intent with outcomes. Good measures will help you focus your efforts, time, and resources appropriately.

    Keep the following in mind:

    1. WHAT are you trying to measure?
      Specific to the situation or scenario
    2. WHY is this important?
      Relevant to your personal goals
    3. HOW will you measure?
      Achievable and quantifiable
    4. WHAT will the results tell you?
      Intended outcome that is directional

    Summary of accomplishments

    Knowledge Gained

    • Relationship management is critical to a CIO's success
    • A personal relationship journal will help build:
      • Customized approach to engaging stakeholders
      • New communication skills to adapt to different work styles

    New Concepts

    • Work style assessment framework and engagement strategies
    • Effective communication strategies
    • Continuum of commitment to establish personal goals

    Approach to Creating a Personal Journal

    • Step-by-step approach to create a personal journal
    • Key elements for inclusion in a journal
    • Exemplar and recommendations

    Related Info-Tech Research

    Photo of Tech Trends and Priorities Research Centre

    Tech Trends and Priorities Research Centre

    Access Info-Tech's Tech Trend reports and research center to learn about current industry trends, shifts in markets, and disruptions that are impacting your industry and sector. This is a great starting place to gain insights into how the ecosystem is changing your business and the role of IT within it.

    Photo of Embed Business Relationship Management in IT

    Embed Business Relationship Management in IT

    Create a business relationship management (BRM) function in your program to foster a more effective partnership with the business and drive IT's value to the organization.

    Photo of Become a Transformational CIO

    Become a Transformational CIO

    Collaborate with the business to lead transformation and leave behind a legacy of growth.

    Appendix: Framework

    Content:

    • Adaptation of DiSC profile assessment
    • DiSC Profile Assessment
    • FIRO-B Framework
    • Experience Cube

    Info-Tech's Adaption of DiSC Assessment

    A diagram of business archetypes

    Info-Tech's Business Archetypes was created based on our analysis of the DiSC Profile and Myers-Briggs FIRO-B personality assessment tools that are focused on assessing interpersonal traits to better understand personalities.

    The adaptation is due in part to Info-Tech's focus on not designing a personality assessment tool as this is neither the intent nor the expertise of our services. Instead, the primary purpose of this adaptation is to create a simple framework for our members to base their observations of behavioral cues to identify appropriate communication styles to better interact with key stakeholders.

    Cautionary note:
    Business archetypes are personas and should not be used to label, make assumptions and/or any other biased judgements about individual personalities. Every individual has all elements and aspects of traits across various spectrums. This must always remain at the forefront when utilizing any type of personality assessments or frameworks.

    Click here to learn about DiSC Profile
    Click here learn about FIRO-B
    Click here learn about Experience Cube

    DiSC Profile Assessment

    A photo of DiSC Profile Assessment

    What is DiSC?

    DisC® is a personal assessment tool that was originally developed in 1928 by psychologist William Moulton Marston, who designed it to predict job performance. The tool has evolved and is now widely used by thousands of organizations around the world, from large government agencies and Fortune 500 companies to nonprofit and small businesses, to help improve teamwork, communication, and productivity in the workplace. The tool provides a common language people can use to better understand themselves and those they interact with - and use this knowledge to reduce conflict and improve working relationships.

    What does DiSC mean?

    DiSC is an acronym that stands for the four main personality profiles described in the Everything DiSC model: (D)ominance, (i)nfluence, (S)teadiness, (C)onscientiousness

    People with (D) personalities tend to be confident and emphasize accomplishing bottom-line results.
    People with (i) personalities tend to be more open and emphasize relationships and influencing or persuading others.
    People with (S) personalities tend to be dependable and emphasize cooperation and sincerity.
    People with (C) personalities tend to emphasize quality, accuracy, expertise, and competency.

    Go to this link to explore the DiSC styles

    FIRO-B® – Interpersonal Assessment

    A diagram of FIRO framework

    What is FIRO workplace relations?

    The Fundamental Interpersonal Relations Orientation Behavior (FIRO-B®) tool has been around for forty years. The tool assesses your interpersonal needs and the impact of your behavior in the workplace. The framework reveals how individuals can shape and adapt their individual behaviors, influence others effectively, and build trust among colleagues. It has been an excellent resource for coaching individuals and teams about the underlying drivers behind their interactions with others to effectively build successful working relationships.

    What does the FIRO framework measure?

    The FIRO framework addresses five key questions that revolve around three interpersonal needs. Fundamentally, the framework focuses on how you want to express yourself toward others and how you want others to behave toward you. This interaction will ultimately result in the universal needs for (a) inclusion, (b) control, and (c) affection. The insights from the results are intended to help individuals adjust their behavior in relationships to get what they need while also building trust with others. This will allow you to better predict and adapt to different situations in the workplace.

    How can FIRO influence individual and team performance in the workplace?

    FIRO helps people recognize where they may be giving out mixed messages and prompts them to adapt their exhibited behaviors to build trust in their relationships. It also reveals ways of improving relationships by showing individuals how they are seen by others, and how this external view may differ from how they see themselves. Using this lens empowers people to adjust their behavior, enabling them to effectively influence others to achieve high performance.

    In team settings, it is a rich source of information to explore motivations, underlying tensions, inconsistent behaviors, and the mixed messages that can lead to mistrust and derailment. It demonstrates how people may approach teamwork differently and explains the potential for inefficiencies and delays in delivery. Through the concept of behavioral flexibility, it helps defuse cultural stereotypes and streamline cross-cultural teams within organizations.

    Go to this link to explore FIRO-B for Business

    Experience Cube

    A diagram of experience cube model.

    What is an experience cube?

    The Experience Cube model was developed by Gervase Bushe, a professor of Leadership and Organization at the Simon Fraser University's school of Business and a thought leader in the field of organizational behavior. The experience cube is intended as a tool to plan and manage conversations to communicate more effectively in the moment. It does this by promoting self-awareness to better reduce anxiety and adapt to evolving and uncertain situations.

    How does the experience cube work?

    Using the four elements of the experience cube (Observations, Thoughts, Feelings, and Wants) helps you to separate your experience with the situation from your potential judgements about the situation. This approach removes blame and minimizes defensiveness, facilitating a positive discussion. The goal is to engage in a continuous internal feedback loop that allows you to walk through all four quadrants in the moment to help promote self-awareness. With heightened self-awareness, you may (1) remain curious and ask questions, (2) check-in for understanding and clarification, and (3) build consensus through agreement on shared purpose and next steps.

    Observations: Sensory data (information you take in through your senses), primarily what you see and hear. What a video camera would record.

    Thoughts: The meaning you add to your observations (i.e. the way you make sense of them, including your beliefs, expectations, assumptions, judgments, values, and principles). We call this the "story you make up."

    Feelings: Your emotional or physiological response to the thoughts and observations. Feelings words such as sad, mad, glad, scared, or a description of what is happening in your body.

    Wants: Clear description of the outcome you seek. Wants go deeper than a simple request for action. Once you clearly state what you want, there may be different ways to achieve it.

    Go to this link to explore more: Experience Cube

    Research Contributors and Experts

    Photo of Joanne Lee
    Joanne Lee
    Principal, Research Director, CIO Advisory
    Info-Tech Research Group

    Joanne is a professional executive with over twenty-five years of experience in digital technology and management consulting spanning healthcare, government, municipal, and commercial sectors across Canada and globally. She has successfully led several large, complex digital and business transformation programs. A consummate strategist, her expertise spans digital and technology strategy, organizational redesign, large complex digital and business transformation, governance, process redesign, and PPM. Prior to joining Info-Tech Research Group, Joanne was a Director with KPMG's CIO Advisory management consulting services and the Digital Health practice lead for Western Canada. She brings a practical and evidence-based approach to complex problems enabled by technology.

    Joanne holds a Master's degree in Business and Health Policy from the University of Toronto and a Bachelor of Science (Nursing) from the University of British Columbia.



    Photo of Gord Harrison
    Gord Harrison
    Senior Vice President, Research and Advisory
    Info-Tech Research Group

    Gord Harrison, SVP, Research and Consulting, has been with Info-Tech Research Group since 2002. In that time, Gord leveraged his experience as the company's CIO, VP Research Operations, and SVP Research to bring the consulting and research teams together under his current role, and to further develop Info-Tech's practical, tactical, and value-oriented research product to the benefit of both organizations.

    Prior to Info-Tech, Gord was an IT consultant for many years with a focus on business analysis, software development, technical architecture, and project management. His background of educational game software development, and later, insurance industry application development gave him a well-rounded foundation in many IT topics. Gord prides himself on bringing order out of chaos and his customer-first, early value agile philosophy keeps him focused on delivering exceptional experiences to our customers.



    Photo of Angela Diop
    Angela Diop
    Senior Director, Executive Services
    Info-Tech Research Group

    Angela has over twenty-five years of experience in healthcare, as both a healthcare provider and IT professional. She has spent over fifteen years leading technology departments and implementing, integrating, managing, and optimizing patient-facing and clinical information systems. She believes that a key to a healthcare organization's ability to optimize health information systems and infrastructure is to break the silos that exist in healthcare organizations.

    Prior to joining Info-Tech, Angela was the Vice President of Information Services with Unity Health Care. She has demonstrated leadership and success in this area by fostering environments where business and IT collaborate to create systems and governance that are critical to providing patient care and sustaining organizational health.

    Angela has a Bachelor of Science in Systems Engineering and Design from the University of Illinois and a Doctorate of Naturopathic Medicine from Bastyr University. She is a Certified CIO with the College of Healthcare Information Management Executives. She is a two-time Health Information Systems Society (HIMSS) Davies winner.



    Photo of Edison Barreto
    Edison Barreto
    Senior Director, Executive Services
    Info-Tech Research Group

    Edison is a dynamic technology leader with experience growing different enterprises and changing IT through creating fast-paced organizations with cultural, modernization, and digital transformation initiatives. He is well versed in creating IT and business cross-functional leadership teams to align business goals with IT modernization and revenue growth. Over twenty-five years of Gaming, Hospitality, Retail, and F&B experience has given him a unique perspective on guiding and coaching the creation of IT department roadmaps to focus on business needs and execute successful changes.

    Edison has broad business sector experience, including:
    Hospitality, Gaming, Sports and Entertainment, IT policy and oversight, IT modernization, Cloud first programs, R&D, PCI, GRDP, Regulatory oversight, Mergers acquisitions and divestitures.



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

    Michael Tweedie is the Practice Lead, CIO – IT Strategy at Info-Tech Research Group, specializing in creating and delivering client-driven, project-based, practical research, and advisory. He brings more than twenty-five years of experience in technology and IT services as well as success in large enterprise digital transformations.

    Prior to joining Info-Tech, Mike was responsible for technology at ADP Canada. In that role, Mike led several large transformation projects that covered core infrastructure, applications, and services and worked closely with and aligned vendors and partners. The results were seamless and transparent migrations to current services, like public cloud, and a completely revamped end-user landscape that allowed for and supported a fully remote workforce.

    Prior to ADP, Mike was the North American Head of Engineering and Service Offerings for a large French IT services firm, with a focus on cloud adoption and complex ERP deployment and management; he managed large, diverse global teams and had responsibilities for end-to-end P&L management.

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



    Photo of Carlene McCubbin
    Carlene McCubbin
    Practice Lead, People and Leadership
    Info-Tech Research Group

    Carlene McCubbin is a Research Lead for the CIO Advisory Practice at Info-Tech Research Group covering key topics in operating models & design, governance, and human capital development.

    During her tenure at Info-Tech, Carlene has led the development of Info-Tech's Organization and Leadership practice and worked with multiple clients to leverage the methodologies by creating custom programs to fit each organization's needs.

    Before joining Info-Tech, Carlene received her Master of Communications Management from McGill University, where she studied development of internal and external communications, government relations, and change management. Her education honed her abilities in rigorous research, data analysis, writing, and understanding the organization holistically, which has served her well in the business IT world.



    Photo of Anubhav Sharma
    Anubhav Sharma
    Research Director, CIO Strategy
    Info-Tech Research Group

    Anubhav is a digital strategy and execution professional with extensive experience in leading large-scale transformation mandates for organizations both in North America and globally, including defining digital strategies for leading banks and spearheading a large-scale transformation project for a global logistics pioneer across ten countries. Prior to joining Info-Tech Research Group, he held several industry and consulting positions in Fortune 500 companies driving their business and technology strategies. In 2023, he was recognized as a "Top 50 Digital Innovator in Banking" by industry peers.

    Anubhav holds an MBA in Strategy from HEC Paris, a Master's degree in Finance from IIT-Delhi, and a Bachelor's degree in Engineering.



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

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

    Kim holds a Bachelor's degree in Mechatronics Engineering from University of Waterloo.



    Photo of Amanda Mathieson
    Amanda Mathieson
    Research Director, People and Leadership
    Info-Tech Research Group

    Amanda joined Info-Tech Research Group in 2019 and brings twenty years of expertise working in Canada, the US, and globally. Her expertise in leadership development, organizational change management, and performance and talent management comes from her experience in various industries spanning pharmaceutical, retail insurance, and financial services. She takes a practical, experiential approach to people and leadership development that is grounded in adult learning methodologies and leadership theory. She is passionate about identifying and developing potential talent, as well as ensuring the success of leaders as they transition into more senior roles.

    Amanda has a Bachelor of Commerce degree and Master of Arts in Organization and Leadership Development from Fielding Graduate University, as well as a post-graduate diploma in Adult Learning Methodologies from St. Francis Xavier University. She also has certifications in Emotional Intelligence – EQ-i 2.0 & 360, Prosci ADKAR® Change Management, and Myers-Briggs Type Indicator Step I and II.

    Bibliography

    Bacey, Christopher. "KPMG/Harvey Nash CIO Survey finds most organizations lack enterprise-wide digital strategy." Harvey Nash/KPMG CIO Survey. Accessed Jan. 6, 2023. KPMG News Perspective - KPMG.us.com

    Calvert, Wu-Pong Susanna. "The Importance of Rapport. Five tips for creating conversational reciprocity." Psychology Today Magazine. June 30, 2022. Accessed Feb. 10, 2023. psychologytoday.com/blog

    Coaches Council. "14 Ways to Build More Meaningful Professional Relationships." Forbes Magazine. September 16, 2020. Accessed Feb. 20, 2023. forbes.com/forbescoachescouncil

    Council members. "How to Build Authentic Business Relationships." Forbes Magazine. June 15, 2021. Accessed Jan. 15, 2023. Forbes.com/business council

    Deloitte. "Chief Information Officer (CIO) Labs. Transform and advance the role of the CIO." The CIO program. Accessed Feb. 5, 2021.

    Dharsarathy, Anusha et al. "The CIO challenge: Modern business needs a new kind of tech leader." McKinsey and Company. January 27, 2020. Accessed Feb 2023. Mckinsey.com

    DiSC profile. "What is DiSC?" DiSC Profile Website. Accessed Feb. 5, 2023. discprofile.com

    FIRO Assessment. "Better working relationships". Myers Brigg Website. Resource document downloaded Feb. 10, 2023. myersbriggs.com/article

    Fripp, Patricia. "Frippicisms." Website. Accessed Feb. 25, 2023. fripp.com

    Grossman, Rhys. "The Rise of the Chief Digital Officer." Russell Reynolds Insights, January 1, 2012. Accessed Jan. 5, 2023. Rise of the Chief Digital Officer - russellreynolds.com

    Kambil, Ajit. "Influencing stakeholders: Persuade, trade, or compel." Deloitte Article. August 9, 2017. Accessed Feb. 19, 2023. www2.deloitte.com/insights

    Kambil, Ajit. "Navigating the C-suite: Managing Stakeholder Relationships." Deloitte Article. March 8, 2017. Accessed Feb. 19, 2023. www2.deloitte.com/insights

    Korn Ferry. "Age and tenure in the C-suite." Kornferry.com. Accessed Jan. 6, 2023. Korn Ferry Study Reveals Trends by Title and Industry

    Kumthekar, Uday. "Communication Channels in Project". Linkedin.com, 3 March 2020. Accessed April 27, 2023. Linkedin.com/Pulse/Communication Channels

    McWilliams, Allison. "Why You Need Effective Relationships at Work." Psychology Today Magazine. May 5, 2022. Accessed Feb. 11, 2023. psychologytoday.com/blog

    McKinsey & Company. "Why do most transformations fail? A conversation with Harry Robinson." Transformation Practice. July 2019. Accessed Jan. 10, 2023. Mckinsey.com

    Mind Tools Content Team. "Building Good Work Relationships." MindTools Article. Accessed Feb. 11, 2023. mindtools.com/building good work relationships

    Pratt, Mary. "Why the CIO-CFO relationship is key to digital success." TechTarget Magazine. November 11, 2021. Accessed Feb. 2023. Techtarget.com

    LaMountain, Dennis. "Quote of the Week: No Involvement, No Commitment". Linkedin.com, 3 April 2016. Accessed April 27, 2023. Linkedin.com/pulse/quote-week-involvement

    PwC Pulse Survey. "Managing Business Risks". PwC Library. 2022. Accessed Jan. 30, 2023. pwc.com/pulse-survey

    Rowell, Darin. "3 Traits of a Strong Professional Relationship." Harvard Business Review. August 8, 2019. Accessed Feb. 20, 2023. hbr.org/2019/Traits of a strong professional relationship

    Sinek, Simon. "The Optimism Company from Simon Sinek." Website. Image Source. Accessed, Feb. 21, 2023. simonsinek.com

    Sinek, Simon. "There are only two ways to influence human behavior: you can manipulate it or you can inspire it." Twitter. Dec 9, 2022. Accessed Feb. 20, 2023. twitter.com/simonsinek

    Whitbourne, Susan Krauss. "10 Ways to Measure the Health of Relationship." Psychology Today Magazine. Aug. 7, 2021. Accessed Jan. 30, 2023. psychologytoday.com/blog

    Negotiate SaaS Agreements That Are Built to Last

    • Buy Link or Shortcode: {j2store}137|cart{/j2store}
    • member rating overall impact (scale of 10): 9.4/10 Overall Impact
    • member rating average dollars saved: $72,298 Average $ Saved
    • member rating average days saved: 10 Average Days Saved
    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Internal stakeholders usually have different – and often conflicting – needs and expectations that require careful facilitation and management.
    • SaaS solutions bring forth a unique form of “switching costs” that can make a decision to migrate solutions financially, technically, and politically painful.

    Our Advice

    Critical Insight

    • Conservatively, it’s possible to save 5% of the overall IT budget through comprehensive software and SaaS contract review.
    • Focus on the terms and conditions, not just the price.
    • Learning to negotiate is crucial.

    Impact and Result

    • Take control of your SaaS contract negotiations from the beginning.
    • Look at your contract holistically to find cost savings.
    • Guide communication between vendors and your organization for the duration of contract negotiations.
    • Redline the terms and conditions of your SaaS contract.
    • Prioritize crucial terms and conditions to negotiate.

    Negotiate SaaS Agreements That Are Built to Last Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to redline and negotiate a SaaS agreement, review Info-Tech’s methodology, and understand the different 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. Gather requirements

    Build and manage the stakeholder team, and then document the business use case.

    • Negotiate SaaS Agreements That Are Built to Last – Phase 1: Gather Requirements
    • RASCI Chart
    • Vendor Communication Management Plan
    • Software Business Use Case Template
    • SaaS TCO Calculator

    2. Redline contract

    Redline the proposed SaaS contract.

    • Negotiate SaaS Agreements That Are Built to Last – Phase 2: Redline Contract
    • SaaS Terms and Conditions Evaluation Tool

    3. Negotiate contract

    Create a thorough negotiation plan.

    • Negotiate SaaS Agreements That Are Built to Last – Phase 3: Negotiate Contract
    • SaaS Contract Negotiation Terms Prioritization Checklist
    • Controlled Vendor Communications Letter
    • Key Vendor Fiscal Year End Calendar
    • Contract Negotiation Tactics Playbook
    [infographic]

    Workshop: Negotiate SaaS Agreements That Are Built to Last

    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 Collect and Review Data

    The Purpose

    Assemble documentation.

    Key Benefits Achieved

    Understand current position before going forward.

    Activities

    1.1 Assemble existing contracts.

    1.2 Document their strategic and tactical objectives.

    1.3 Identify current status of the vendor relationship and any historical context.

    1.4 Clarify goals for ideal future state.

    Outputs

    Business Use Case.

    2 Define the Business Use Case and Build a Stakeholder Team

    The Purpose

    Define the business use case and build a stakeholder team.

    Key Benefits Achieved

    Create a business use case to document functional and non-functional requirements.

    Build an internal cross-functional stakeholder team to negotiate the contract.

    Activities

    2.1 Establish a negotiation team and define roles.

    2.2 Write a communication plan.

    2.3 Complete a business use case.

    Outputs

    RASCI Matrix

    Communications Plan

    SaaS TCO Calculator

    Business Use Case

    3 Redline the Contract

    The Purpose

    Examine terms and conditions and prioritize for negotiation.

    Key Benefits Achieved

    Discover cost savings.

    Improve agreement terms.

    Prioritize terms for negotiation.

    Activities

    3.1 Review general terms and conditions.

    3.2 Review license and application specific terms and conditions.

    3.3 Match to business and technical requirements.

    3.4 Redline the agreement.

    Outputs

    SaaS Terms and Conditions Evaluation Tool

    SaaS Contract Negotiation Terms Prioritization Checklist

    4 Build a Negotiation Strategy

    The Purpose

    Create a negotiation strategy.

    Key Benefits Achieved

    Controlled communication established.

    Negotiation tactics chosen.

    Negotiation timeline plotted.

    Activities

    4.1 Review vendor and application specific negotiation tactics.

    4.2 Build negotiation strategy.

    Outputs

    Contract Negotiation Tactics Playbook

    Controlled Vendor Communications Letter

    Key Vendor Fiscal Year End Calendar

    Time Study

    • Buy Link or Shortcode: {j2store}260|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: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance
    • In ESG’s 2018 report “The Life of Cybersecurity Professionals,” 36% of participants expressed the overwhelming workload was a stressful aspect of their job.
    • Organizations expect a lot from their security specialists. From monitoring the threat environment, protecting business assets, and learning new tools, to keeping up with IT initiatives, cybersecurity teams struggle to balance their responsibilities with the constant emergencies and disruptions that take them away from their primary tasks.
    • Businesses fail to recognize the challenges associated with task prioritization and the time management practices of a security professional.

    Our Advice

    Critical Insight

    • The majority of scheduled calendar meetings include employees and peers.
      • Our research indicates cybersecurity professionals spent the majority of their meetings with employees (28%) and peers (24%). Other stakeholders involved in meetings included by myself (15%), boss (13%), customers (10%), vendors (8%), and board of directors (2%).
    • Calendar meetings are focused on project work, management, and operations.
      • When asked to categorize calendar meetings, the focus was on project work (26%), management (23%), and operations (22%). Other scheduled meetings included ones focused on strategy (15%), innovation (9%), and personal time (5%).
    • Time management scores were influenced by the percentage of time spent with employees and peers.
      • When participants were divided into good and poor time managers, we found good time managers spent less time with their peers and more time with their employees. This may be due to the nature of employee meetings being more directly tied to the project outputs of the manager than their peer meetings. Managers who spend more time in meetings with their employees feel a sense of accomplishment, and hence rate themselves higher in time management.

    Impact and Result

    • Understand how cybersecurity professionals allocate their time.
    • Gain insight on whether perceived time management skills are associated with calendar maintenance factors.
    • Identify common time management pain points among cybersecurity professionals.
    • Identify current strategies cybersecurity professionals use to manage their time.

    Time Study Research & Tools

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

    1. Read our Time Study

    Read our Time Study to understand how cybersecurity professionals allocate their time, what pain points they endure, and tactics that can be leveraged to better manage time.

    • Time Study Storyboard
    [infographic]

    Get Started With Customer Advocacy

    • Buy Link or Shortcode: {j2store}565|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

    Getting started with customer advocacy (CA) is no easy task. Many customer success professionals carry out ad hoc customer advocacy activities to address immediate needs but lack a more strategic approach.

    Our Advice

    Critical Insight

    • Customer success leaders must reposition their CA program around growth; the recognition that customer advocacy is a strategic growth initiative is necessary to succeed in today’s competitive market.
    • Get key stakeholders on board early – especially Sales!
    • Always link your CA efforts back to retention and growth.
    • Make building genuine relationships with your advocates the cornerstone of your CA program.

    Impact and Result

    • Enable the organization to identify and develop meaningful relationships with top customers and advocates.
    • Understand the concepts and benefits of CA and how CA can be used to improve marketing and sales and fuel growth and competitiveness.
    • Follow SoftwareReviews’ methodology to identify where to start to apply CA within the organization.
    • Develop a customer advocacy proof of concept/pilot program to gain stakeholder approval and funding to get started with or expand efforts around customer advocacy.

    Get Started With Customer Advocacy Research & Tools

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

    1. Get Started With Customer Advocacy Executive Brief – An overview of why customer advocacy is critical to your organization and the recommended approach for getting started with a pilot program.

    Understand the strategic benefits and process for building a formal customer advocacy program. To be successful, you must reposition CA as a strategic growth initiative and continually link any CA efforts back to growth.

    • Get Started With Customer Advocacy Storyboard

    2. Define Your Advocacy Requirements – Assess your current customer advocacy efforts, identify gaps, and define your program requirements.

    With the assessment tool and steps outlined in the storyboard, you will be able to understand the gaps and pain points, where and how to improve your efforts, and how to establish program requirements.

    • Customer Advocacy Maturity Assessment Tool

    3. Win Executive Approval and Launch Pilot – Develop goals, success metrics, and timelines, and gain approval for your customer advocacy pilot.

    Align on pilot goals, key milestones, and program elements using the template and storyboard to effectively communicate with stakeholders and gain executive buy-in for your customer advocacy pilot.

    • Get Started With Customer Advocacy Executive Presentation Template

    Infographic

    Further reading

    Get Started With Customer Advocacy

    Develop a customer advocacy program to transform customer satisfaction into revenue growth.

    EXECUTIVE BRIEF

    Analyst perspective

    Customer advocacy is critical to driving revenue growth

    The image contains a picture of Emily Wright.

    Customer advocacy puts the customer at the center of everything your organization does. By cultivating a deep understanding of customer needs and how they define value and by delivering positive experiences throughout the customer journey, organizations inspire and empower customers to become evangelists for their brands or products. Both the client and solution provider enjoy satisfying and ongoing business outcomes as a result.

    Focusing on customer advocacy is critical for software solutions providers. Business-to-business (B2B) buyers are increasingly looking to their peers and third-party resources to arm themselves with information on solutions they feel they can trust before they choose to engage with solution providers. Your satisfied customers are now your most trusted and powerful resource.

    Customer advocacy helps build strong relationships with your customers, nurtures brand advocacy, gives your marketing messaging credibility, and differentiates your company from the competition; it’s critical to driving revenue growth. Companies that develop mature advocacy programs can increase Customer Lifetime Value (CLV) by 16% (Wharton Business School, 2009), increase customer retention by 35% (Deloitte, 2011), and give themselves a strong competitive advantage in an increasingly competitive marketplace.

    Emily Wright
    Senior Research Analyst, Advisory
    SoftwareReviews

    Executive summary

    Your Challenge

    Ad hoc customer advocacy (CA) efforts and reference programs, while still useful, are not enough to drive growth. Providers increase their chance for success by assessing if they face the following challenges:

    • Lack of referenceable customers that can turn into passionate advocates, or a limited pool that is at risk of burnout.
    • Lack of references for all key customer types, verticals, etc., especially in new growth segments or those that are hard to recruit.
    • Lack of a consistent program for gathering customer feedback and input to make improvements and increase customer satisfaction.
    • Lack of executive and stakeholder (e.g. Sales, Customer Success, channel partners, etc.) buy-in for the importance and value of customer advocacy.

    Building a strong customer advocacy program must be a high priority for customer service/success leaders in today’s highly competitive software markets.

    Common Obstacles

    Getting started with customer advocacy is no easy task. Many customer success professionals carry out ad hoc customer advocacy activities to address immediate needs but lack a more strategic approach. What separates them from success are several nagging obstacles:

    • Efforts lack funding and buy-in from stakeholders.
    • Senior management doesn’t fully understand the business value of a customer advocacy program.
    • Duplicate efforts are taking place between Sales, Marketing, product teams, etc., because ownership, roles, and responsibilities have not been determined.
    • Relationships are guarded/hoarded by those who feel they own the relationship (e.g. Sales, Customer Success, channel partners, etc.).
    • Customer-facing staff often lack the necessary skills to foster customer advocacy.

    SoftwareReviews’ Approach

    This blueprint will help leaders of customer advocacy programs get started with developing a formalized pilot program that will demonstrate the value of customer advocacy and lay a strong foundation to justify rollout. Through SoftwareReviews’ approach, customer advocacy leaders will:

    • Enable the organization to identify and develop meaningful relationships with top customers and advocates.
    • Understand the concepts and benefits of CA and how CA can be used to improve marketing and sales and fuel growth and competitiveness.
    • Follow SoftwareReviews’ methodology to identify where to start to apply CA within the organization.
    • Develop a customer advocacy proof of concept/pilot program to gain stakeholder approval and funding to get started with or expand efforts around customer advocacy.

    What is customer advocacy?

    “Customer advocacy is the act of putting customer needs first and working to deliver solution-based assistance through your products and services." – Testimonial Hero, 2021

    Customer advocacy is designed to keep customers loyal through customer engagement and advocacy marketing campaigns. Successful customer advocacy leaders experience decreased churn while increasing return on investment (ROI) through retention, acquisition, and cost savings.

    Businesses that implement customer advocacy throughout their organizations find new ways of supporting customers, provide additional customer value, and ensure their brands stand unique among the competition.

    Customer Advocacy Is…

    • An integral part of any marketing and/or business strategy.
    • Essential to improving and maintaining high levels of customer satisfaction.
    • Focused on delivering value to customers.
    • Not only a set of actions, but a mindset that should be fostered and reinforced through a customer-centric culture.
    • Mutually beneficial relationships for both company and customer.

    Customer Advocacy Is Not…

    • Only referrals and testimonials.
    • Solely about what you can get from your advocates.
    • Brand advocacy. Brand advocacy is the desired outcome of customer advocacy.
    • Transactional. Brand advocates must be engaged.
    • A nice-to-have.
    • Solved entirely by software. Think about what you want to achieve and how a software solution can you help you reach those goals.

    SoftwareReviews Insight

    Customer advocacy has evolved into being a valued company asset versus a simple referral program – success requires an organization-wide customer-first mindset and the recognition that customer advocacy is a strategic growth initiative necessary to succeed in today’s competitive market.

    Customer advocacy: Essential to high retention

    When customers advocate for your company and products, they are eager to retain the value they receive

    • Customer acts of advocacy correlate to high retention.
    • Acts of advocacy won’t happen unless customers feel their interests are placed ahead of your company’s, thereby increasing satisfaction and customer success. That’s the definition of a customer-centric culture.
    • And yet your company does receive significant benefits from customer advocacy:
      • When customers advocate and renew, your costs go down and margins rise because it costs less to keep a happy customer than it does to bring a new customer onboard.
      • When renewal rates are high, customer lifetime value increases, also increasing profitability.

    Acquiring a new customer can cost five times more than retaining an existing customer (Huify, 2018).

    Increasing customer retention by 5% can increase profits by 25% to 95% (Bain & Company, cited in Harvard Business Review, 2014).

    SoftwareReviews Insight

    Don’t overlook the value of customer advocacy to retention! Despite the common knowledge that it’s far easier and cheaper to sell to an existing customer than to sell to a new prospect, most companies fail to leverage their customer advocacy programs and continue to put pressure on Marketing to focus their budgets on customer acquisition.

    Customer advocacy can also be your ultimate growth strategy

    In your marketing and sales messaging, acts of advocacy serve as excellent proof points for value delivered.

    Forty-five percent of businesses rank online reviews as a top source of information for selecting software during this (top of funnel) stage, followed closely by recommendations and referrals at 42%. These sources are topped only by company websites at 54% (Clutch, 2020).

    With referrals coming from customer advocates to prospects via your lead gen engine and through seller talk tracks, customer advocacy is central to sales, marketing, and customer experience success.

    ✓ Advocates can help your new customers learn your solution and ensure higher adoption and satisfaction.
    ✓ Advocates can provide valuable, honest feedback on new updates and features.

    The image contains a picture to demonstrate the cycle of customer advocacy. The image has four circles, with one big circle in the middle and three circles surrounding with arrows pointing in both directions in between them. The middle circle is labelled customer advocacy. The three circles are labelled: sales, customer success, marketing.

    “A customer advocacy program is not just a fancy buzz word or a marketing tool that’s nice to have. It’s a core discipline that every major brand needs to integrate into their overall marketing, sales and customer success strategies if they expect to survive in this trust economy. Customer advocacy arguably is the common asset that runs throughout all marketing, sales and customer success activities regardless of the stage of the buyer’s journey and ties it all together.” – RO Innovation, 2017

    Positive experience drives acts of advocacy

    More than price or product, experience now leads the way in customer advocacy and retention

    Advocacy happens when customers recommend your product. Our research shows that the biggest drivers of likeliness to recommend and acts of customer advocacy are the positive experiences customers have with vendors and their products, not product features or cost savings. Customers want to feel that:

    1. Their productivity and performance is enhanced and the vendor is helping them to innovate and grow as a company.
    2. Their vendor inspires them and helps them to continually improve.
    3. They can rely on the vendor and the product they purchased.
    4. They are respected by the vendor.
    5. They can trust that the vendor will be on their side and save them time.

    The image contains a graph to demonstrate the correlation of likeliness to recommend a satisfaction driver. Where anything above a 0.5 indicates a strong driver of satisfaction.

    Note that anything above 0.5 indicates a strong driver of satisfaction.
    Source: SoftwareReviews buyer reviews (based on 82,560 unique reviews).

    SoftwareReviews Insight

    True customer satisfaction comes from helping customers innovate, enhancing their performance, inspiring them to continually improve, and being reliable, respectful, trustworthy, and conscious of their time. These true drivers of satisfaction should be considered in your customer advocacy and retention efforts. The experience customers have with your product and brand is what will differentiate your brand from competitors, drive advocacy, and ultimately, power business growth. Talk to a SoftwareReviews advisor to learn how users rate your product on these satisfaction drivers in the SoftwareReviews Emotional Footprint Report.

    Yet challenges exist for customer advocacy program leaders

    Customer success leaders without a strong customer advocacy program feel numerous avoidable pains:

    • Lack of compelling stories and proof points for the sales team, causing long sales cycles.
    • Heavy reliance on a small pool of worn-out references.
    • Lack of references for all needed customer types, verticals, etc.
    • Lack of a reliable customer feedback process for solution improvements.
    • Overspending on acquiring new customers due to a lack of customer proof points.
    • Missed opportunities that could grow the business (customer lifetime value, upsell/cross-sell, etc.).

    Marketing, customer success, and sales teams experiencing any one of the above challenges must consider getting started with a more formalized customer advocacy program.

    Obstacles to customer advocacy programs

    Leaders must overcome several barriers in developing a customer advocacy program:

    • Stakeholders are often unclear on the value customer advocacy programs can bring and require proof of benefits to invest.
    • Efforts are duplicated among sales, marketing, product, and customer success teams, given ownership and collaboration practices are ill-defined or nonexistent.
    • There is a culture of guarding or hoarding customer relationships by those who feel they own the relationship, or there’s high turnover among employees who own the customer relationships.
    • The governance, technology, people, skills, and/or processes to take customer advocacy to the next level are lacking.
    • Leaders don’t know where to start with customer advocacy, what needs to be improved, or what to focus on first.

    A lack of customer centricity hurts organizations

    12% of people believe when a company says they put customers first. (Source: HubSpot, 2019)

    Brands struggle to follow through on brand promises, and a mismatch between expectations and lived experience emerges. Customer advocacy can help close this gap and help companies live up to their customer-first messaging.

    42% of companies don’t conduct any customer surveys or collect feedback. (Source: HubSpot, 2019)

    Too many companies are not truly listening to their customers. Companies that don’t collect feedback aren’t going to know what to change to improve customer satisfaction. Customer advocacy will orient companies around their customer and create a reliable feedback loop that informs product and service enhancements.

    Customer advocacy is no longer a nice-to-have but a necessity for solution providers

    B2B buyers increasingly turn to peers to learn about solutions:

    “84% of B2B decision makers start the buying process with a referral.” (Source: Influitive, Gainsight & Pendo, 2020)

    “46% of B2B buyers rely on customer references for information before purchasing.” (Source: RO Innovation, 2017)

    “91% of B2B purchasers’ buying decisions are influenced by word-of-mouth recommendations.” (Source: ReferralRock, 2022)

    “76% of individuals admit that they’re more likely to trust content shared by ‘normal’ people than content shared by brands.” (Source: TrustPilot, 2020)

    By ignoring the importance of customer advocacy, companies and brands are risking stagnation and missing out on opportunities to gain competitive advantage and achieve growth.

    Getting Started With Customer Advocacy: SoftwareReviews' Approach

    1 BUILD
    Build the business case
    Identify your key stakeholders, steering committee, and working team, understand key customer advocacy principles, and note success barriers and ways to overcome them as your first steps.

    2 DEVELOP
    Develop your advocacy requirements
    Assess your current customer advocacy maturity, identify gaps in your current efforts, and develop your ideal advocate profile.

    3 WIN
    Win executive approval and implement pilot
    Determine goals and success metrics for the pilot, establish a timeline and key project milestones, create advocate communication materials, and finally gain executive buy-in and implement the pilot.

    SoftwareReviews Insight
    Building and implementing a customer advocacy pilot will help lay the foundation for a full program and demonstrate to executives and key stakeholders the impact on revenue, retention, and CLV that can be achieved through coordinated and well-planned customer advocacy efforts.

    Customer advocacy benefits

    Our research benefits customer advocacy program managers by enabling them to:

    • Explain why having a centralized, proactive customer advocacy program is important.
    • Clearly communicate the benefits and business case for having a formalized customer advocacy program.
    • Develop a customer advocacy pilot to provide a proof of concept (POC) and demonstrate the value of customer advocacy.
    • Assess the maturity of your current customer advocacy efforts and identify what to improve and how to improve to grow your customer advocacy function.

    "Advocacy is the currency for business and the fuel for explosive growth. Successful marketing executives who understand this make advocacy programs an essential part of their go-to-market strategy. They also know that advocacy isn't something you simply 'turn on': ... ultimately, it's about making human connections and building relationships that have enduring value for everyone involved."
    - Dan Cote, Influitive, Dec. 2021

    Case Study: Advocate impact on sales at Genesys

    Genesys' Goal

    Provide sales team with compelling customer reviews, quotes, stories, videos, and references.

    Approach to Advocacy

    • Customers were able to share their stories through Genesys' customer hub GCAP as quotes, reviews, etc., and could sign up to host reference forum sessions for prospective customers.
    • Content was developed that demonstrated ROI with using Genesys' solutions, including "top-tier logos, inspiring quotes, and reference forums featuring some of their top advocates" (Influitive, 2021).
    • Leveraged customer advocacy-specific software solution integration with the CRM to easily identify reference recommendations for Sales.

    Advocate Impact on Sales

    According to Influitive (2021), the impacts were:

    • 386% increase in revenue influences from references calls
    • 82% of revenue has been influence by reference calls
    • 78 reference calls resulted in closed-won opportunities
    • 250 customers and prospects attended 7 reference forums
    • 112 reference slides created for sales enablement
    • 100+ quotes were collect and transformed into 78 quote slides

    Who benefits from getting started with customer advocacy?

    This Research Is Designed for:

    • Customer advocacy leaders and marketers who are looking to:
      • Take a more strategic, proactive, and structured approach to customer advocacy.
      • Find a more effective and reliable way to gather customer feedback and input on products and services.
      • Develop and nurture a customer-oriented mindset throughout the organization.
      • Improve marketing credibility both within the company and outside to prospective customers.

    This Research Will Help You:

    • Explain why having a centralized, proactive customer advocacy program is important.
    • Clearly communicate the benefits and business case for having a formalized customer advocacy program.
    • Develop a customer advocacy pilot to provide a proof of concept (POC) and demonstrate the value of customer advocacy.
    • Assess the maturity of your current customer advocacy efforts and identify what to improve and how to improve to grow your customer advocacy function.

    This Research Will Also Assist:

    • Customer success leaders and sales directors who are responsible for:
      • Gathering customer references and testimonials.
      • Referral or voice of the customer (VoC) programs.

    This Research Will Help Them:

    • Align stakeholders on an overall program of identifying ideal advocates.
    • Coordinate customer advocacy efforts and actions.
    • Gather and make use of customer feedback to improve products, solutions, and service provided.
    • Provide an amazing customer experience throughout the entirety of the customer journey.

    SoftwareReviews’ methodology for getting started with customer advocacy

    Phase Steps

    1. Build the business case

    1. Identify your key stakeholders, steering committee, and working team
    2. Understand the concepts and benefits of customer advocacy as they apply to your organization
    3. Outline barriers to success, risks, and risk mitigation tactics

    2. Develop your advocacy requirements

    1. Assess your customer advocacy maturity using the SoftwareReviews CA Maturity Assessment Tool
    2. Identify gaps/pains in current CA efforts and add tasks to your action plan
    3. Develop ideal advocate profile/identify target advocate segment(s)

    3. Create implementation plan and pitch CA pilot

    1. Determine pilot goals and success metrics
    2. Establish timeline and create advocate communication materials
    3. Gain executive buy-in and implement pilot

    Phase Outcomes

    1. Common understanding of CA concepts and benefits
    2. Buy-in from CEO and head of Sales
    3. List of opportunities, risks, and risk mitigation tactics
    1. Identification of gaps in current customer advocacy efforts and/or activities
    2. Understanding customer advocacy readiness
    3. Identification of ideal advocate profile/target segment
    4. Basic actions to bridge gaps in CA efforts
    1. Clear objective for CA pilot
    2. Key metrics for program success
    3. Pilot timelines and milestones
    4. Executive presentation with business case for CA

    Insight summary

    Customer advocacy is a critical strategic growth initiative
    Customer advocacy (CA) has evolved into being a highly valued company asset as opposed to a simple referral program, but not everyone in the organization sees it that way. Customer success leaders must reposition their CA program around growth instead of focusing solely on retention and communicate this to key stakeholders. The recognition that customer advocacy is a strategic growth initiative is necessary to succeed in today’s competitive market.

    Get key stakeholders on board early – especially Sales!
    Work to bring the CEO and the head of Sales on your side early. Sales is the gatekeeper – they need to open the door to customers to turn them into advocates. Clearly reposition CA for growth and communicate that to the CEO and head of Sales; wider buy-in will follow.

    Identify the highest priority segment for generating acts of advocacy
    By focusing on the highest priority segment, you accomplish a number of things: generating growth in a critical customer segment, proving the value of customer advocacy to key stakeholders (especially Sales), and setting a strong foundation for customer advocacy to build upon and expand the program out to other segments.

    Always link your CA efforts back to retention and growth
    By clearly demonstrating the impact that customer advocacy has on not only retention but also overall growth, marketers will gain buy-in from key stakeholders, secure funding for a full CA program, and gain the resources needed to expand customer advocacy efforts.

    Focus on providing value to advocates
    Many organizations take a transactional approach to customer advocacy, focusing on what their advocates can do for them. To truly succeed with CA, focus on providing your advocates with value first and put them in the spotlight.

    Make building genuine relationships with your advocates the cornerstone of your CA program
    "57% of small businesses say that having a relationship with their consumers is the primary driver of repeat business" (Factory360).

    Guided Implementation

    What does our GI on getting started with building customer advocacy look like?

    Build the Business Case

    Call #1: Identify key stakeholders. Map out motivations and anticipate any concerns or objections. Determine steering committee and working team. Plan next call – 1 week.

    Call #2: Discuss concepts and benefits of customer advocacy as they apply to organizational goals. Plan next call – 1 week.

    Call #3: Discuss barriers to success, risks, and risk mitigation tactics. Plan next call – 1 week.

    Call #4: Finalize CA goals, opportunities, and risks and develop business case. Plan next call – 2 weeks.

    Develop Your Advocacy Requirements

    Call #5: Review the SoftwareReviews CA Maturity Assessment Tool. Assess your current level of customer advocacy maturity. Plan next call – 1 week.

    Call #6: Review gaps and pains in current CA efforts. Discuss tactics and possible CA pilot program goals. Begin adding tasks to action plan. Plan next call – 2 weeks.

    Call #7: Discuss ideal advocate profile and target segments. Plan next call – 2 weeks.

    Call #8: Validate and finalize ideal advocate profile. Plan next call – 1 week.

    Win Executive Approval and Implement Pilot

    Call #9: Discuss CA pilot scope. Discuss performance metrics and KPIs. Plan next call – 3 days.

    Call #10: Determine timeline and key milestones. Plan next call –2 weeks.

    Call #11: Develop advocate communication materials. Plan next call – 3 days.

    Call #12: Review final business case and coach on executive presentation. Plan next call – 1 week.

    A Guided Implementation (GI) is series of calls with a SoftwareReviews Advisory analyst to help implement our best practices in your organization. For guidance on marketing applications, we can arrange a discussion with an Info-Tech analyst. Your engagement managers will work with you to schedule analyst calls.


    Customer Advocacy Workshop

    Pre-Workshop Day 1 Day 2 Day 3 Day 4 Day 5 Post-Workshop
    Activities Identify Stakeholders & CA Pilot Team Build the Business Case Assess Current CA Efforts Develop Advocacy Goals & Ideal Advocate Profile Develop Project Timelines, Materials, and Exec Presentation Next Steps and Wrap-Up (offsite) Pitch CA Pilot
    0.1 Identify key stakeholders to involve in customer advocacy pilot and workshop; understand their motivations and anticipate possible concerns. 1.1 Review key CA concepts and identify benefits of CA for the organization.
    1.2 Outline barriers to success, risks, and risk mitigation tactics.
    2.1 Assess your customer advocacy maturity using the SoftwareReviews CA Maturity Assessment Tool.
    2.2 Identify gaps/pains in current CA efforts.
    2.3 Prioritize gaps from diagnostic and any other critical pain points.
    3.1 Identify and document the ideal advocate profile and target customer segment for pilot.
    3.2 Determine goal(s) and success metrics for program pilot.
    4.1 Develop pilot timelines and key milestones.
    4.2 Outline materials needed and possible messaging.
    4.3 Build the executive buy-in presentation.
    5.1 Complete in-progress deliverables from the previous four days. 6.1 Present to executive team and stakeholders.
    6.2 Gain executive buy-in and key stakeholder approval.
    6.3 Execute CA pilot.
    Deliverables
    1. Rationale for CA pilot; clear benefits, and how they apply to the organization.
    2. Documented barriers to success, risks, and risk mitigation tactics.
    1. CA Maturity Assessment results.
    2. Identification of gaps in current customer advocacy efforts and/or activities.
    1. Documented ideal advocate profile/target customer segment.
    2. Clear goal(s) and success metrics for CA pilot.
    1. Documented pilot timelines and key milestones.
    2. Draft/outlines of advocate materials.
    3. Draft executive presentation with business case for CA.
    1. Finalized implementation plan for CA pilot.
    2. Finalized executive presentation with business case for CA.
    1. Buy-in from decision makers and key stakeholders.

    Contact your account representative for more information.
    workshops@infotech.com
    1-888-670-8889

    Get started!

    Know your target market and audience, deploy well-designed strategies based on shared values, and make meaningful connections with people.

    Phase 1
    Build the Business Case

    Phase 2
    Develop Your Advocacy Requirements

    Phase 3
    Win Executive Approval and Implement Pilot

    Phase 1: Build the Business Case

    Steps
    1.1 Identify your key stakeholders, steering committee, and working team
    1.2 Understand the concepts and benefits of customer advocacy as they apply to your organization
    1.3 Outline barriers to success, risks, and risk mitigation tactics

    Phase Outcome

    • Common understanding of CA concepts and benefits
    • Buy-in from CEO and head of Sales
    • List of barriers to success, risks, and risk mitigation tactics

    Build the business case

    Step 1.1 Identify your key stakeholders, steering committee, and working team

    Total duration: 2.5-8.0 hours

    Objective
    Identify, document, and finalize your key stakeholders to know who to involve and how to get them onboard by truly understanding the forces of influence.

    Output

    • Robust stakeholder list with key stakeholders identified.
    • Steering committee and working team decided.

    Participants

    • Customer advocacy lead
    • Identified stakeholders
    • Workstream leads

    MarTech
    None

    Tools

    1.1.1 Identify Stakeholders
    (60-120 min.)

    Identify
    Using the guidance on slide 28, identify all stakeholders who would be involved or impacted by your customer advocacy pilot by entering names and titles into columns A and B on slide 27 "Stakeholder List Worksheet."

    Document
    Document as much information about each stakeholder as possible in columns C, D, E, and F into the table on slide 27.

    1.1.2 Select Steering Committee & Working Team
    (60-90 min.)

    Select
    Using the guidance on slides 28 and 29 and the information collected in the table on slide 27, identify the stakeholders that are steering committee members, functional workstream leads, or operations; document in column G on slide 27.

    Document
    Open the Executive Presentation Template to slides 5 and 6 and document your final steering committee and working team selections. Be sure to note the Executive Sponsor and Program Manager on slide 5.

    Tips & Reminders

    1. It is critical to identify "key stakeholders"; a single missed key stakeholder can disrupt an initiative. A good way to ensure that nobody is missed is to first uncover as many stakeholders as possible and later decide how important they are.
    2. Ensure steering committee representation from each department this initiative would impact or that may need to be involved in decision-making or problem-solving endeavors.

    Consult Info-Tech's Manage Stakeholder Relations blueprint for additional guidance on identifying and managing stakeholders, or contact one of our analysts for more personalized assistance and guidance.

    Stakeholder List Worksheet

    *Possible Roles
    Executive Sponsor
    Program Manager
    Workstream Lead
    Functional Lead
    Steering Committee
    Operations
    A B C D E F G
    Name Position Decision Involvement
    (Driver / Approver / Contributor / Informe
    Direct Benefit?
    (Yes / No)
    Motivation Concerns *Role in Customer Advocacy Pilot
    E.g. Jane Doe VP, Customer Success A N
    • Increase customer retention
    • Customer advocate burnout
    Workstream Lead

    Customer advocacy stakeholders

    What to consider when identifying stakeholders required for CA:
    Customer advocacy should be done as a part of a cross-functional company initiative. When identifying stakeholders, consider:

    • Who can make the ultimate decision on approving the CA program?
    • Who are the senior leadership members you need buy-in from?
    • Who do you need to support the CA program?
    • Who is affected by the CA program?
    • Who will help you build the CA program?
    • Where and among who is there enthusiasm for customer advocacy?
    • Consider stakeholders from Customer Success, Marketing, Sales, Product, PR & Social, etc.
    Key Roles Supporting an Effective Customer Advocacy Pilot
    Executive Sponsor
    • Owns the function at the management/C-suite level
    • Responsible for breaking down barriers and ensuring alignment with organizational strategy
    • CMO, VP of Marketing, and in SMB providers, the CEO
    Program Manager
    • Typically, a senior member of the marketing team
    • Responsible for organizing the customer advocacy pilot, preparing summary executive-level communications, and approval requests
    • Program manages the customer advocacy pilot, and in many cases, the continued formal program
    • Product Marketing Director, or other Marketing Director, who has strong program management skills, has run large-scale marketing or product programs, and is familiar with the stakeholder roles and enabling technologies
    Functional / Workstream Leads
    • Works alongside the Program Manager on planning and implementing the customer advocacy pilot and ensures functional workstreams are aligned with pilot objectives
    • Typical customer advocacy pilots will have a team comprised of representatives from Marketing, Sales, and Customer Success
    Steering Committee
    • Comprised of C-suite/management-level individuals that guide key decisions, approve requests, and mitigate any functional conflicts
    • Responsible for validating goals and priorities, enabling adequate resourcing, and critical decision making
    • CMO, CRO/Head of Sales, Head of Customer Success
    Operations
    • Comprised of individuals whose application and tech tools knowledge and skills support integration of customer advocacy functions into existing tech stack/CRM (e.g. adding custom fields into CRM)
    • Responsible for helping select technology that enables customer advocacy program activities
    • CRM, Marketing Applications, and Analytics Managers, IT Managers

    Customer advocacy working team

    Consider the skills and knowledge required for planning and executing a customer advocacy pilot.

    Workstream leads should have strong project management and collaboration skills and deep understanding of both product and customers (persona, journeys, satisfaction, etc.).

    Required Skills Suggested Functions
    • Project management
    • CRM knowledge
    • Marketing automation experience
    • MarTech knowledge
    • Understanding of buyer persona and journey
    • Product knowledge
    • Understanding of executive-level goals for the pilot
    • Content creation
    • Customer advocacy experience, if possible
    • Customer satisfaction
    • Email and event marketing experience
    • Customer Success
    • Marketing
    • Sales
    • Product
    • PR/Corporate Comms.

    Build the business case

    Step 1.2 Understand key concepts and benefits of customer advocacy

    Total duration: 2.0-4.0 hours

    Objective
    Understand customer advocacy and what benefits you seek from your customer advocacy program, and get set up to best communicate them to executives and decision makers.

    Output

    • Documented customer advocacy benefits

    Participants

    • Customer advocacy lead

    MarTech
    None

    Tools

    1.2.1 Discuss Key Concepts
    (60-120 min.)

    Envision
    Schedule a visioning session with key stakeholders and share the Get Started With Customer Advocacy Executive Brief (slides 3-23 in this deck).

    Discuss how key customer advocacy concepts can apply to your organization and how CA can contribute to organizational growth.

    Document
    Determine the top benefits sought from the customer advocacy program pilot and record them on slides 4 and 12 in the Executive Presentation Template.

    Finalize
    Work with the Executive Sponsor to finalize the "Message from the CMO" on slide 4 in the Executive Presentation Template.

    Tips & Reminders

    Keep in mind that while we're starting off broadly, the pilot for your customer advocacy program should be narrow and focused in scope.

    Build the business case

    Step 1.3 Understand barriers to success, risks, and risk mitigation tactics

    Total duration: 2.0-8.0 hours

    Objective
    Anticipate threats to pilot success; identify barriers to success, any possible risks, and what can be done to reduce the chances of a negative pilot outcome.

    Output

    • Awareness of barriers
    • Tactics to mitigate risk

    Participants

    • Customer advocacy lead
    • Key stakeholders

    MarTech
    None

    Tools

    1.3.1 Brainstorm Barriers to Success & Possible Risks
    (60-120 min.)

    Identify
    Using slide 7 of the Executive Presentation Template, brainstorm any barriers to success that may exist and risks to the customer advocacy program pilot success. Consider the people, processes, and technology that may be required.

    Document
    Document all information on slide 7 of the Executive Presentation Template.

    1.3.2 Develop Risk Mitigation Tactics
    (60-300 min.)

    Develop
    Brainstorm different ways to address any of the identified barriers to success and reduce any risks. Consider the people, processes, and technology that may be required.

    Document
    Document all risk mitigation tactics on slide 7 of the Executive Presentation Template.

    Tips & Reminders
    There are several types of risk to explore. Consider the following when brainstorming possible risks:

    • Damage to brand (if advocate guidance not provided)
    • Legal (compliance with regulations and laws around contact, incentives, etc.)
    • Advocate burnout
    • Negative advocate feedback

    Phase 2: Develop Your Advocacy Requirements

    Steps
    2.1 Assess your customer advocacy maturity
    2.2 Identify and document gaps and pain points
    2.3 Develop your ideal advocate profile

    Phase Outcome

    • Identification of gaps in current customer advocacy efforts or activities
    • Understanding of customer advocacy readiness and maturity
    • Identification of ideal advocate profile/target segment
    • Basic actions to bridge gaps in CA efforts

    Develop your advocacy requirements

    Step 2.1 Assess your customer advocacy maturity

    Total duration: 2.0-8.0 hours

    Objective
    Use the Customer Advocacy Maturity Assessment Tool to understand your organization's current level of customer advocacy maturity and what to prioritize in the program pilot.

    Output

    • Current level of customer advocacy maturity
    • Know areas to focus on in program pilot

    Participants

    • Customer advocacy lead
    • Key stakeholders

    MarTech
    None

    Tools

    2.1.1 Diagnose Current Customer Advocacy Maturity
    (60-120 min.)

    Diagnose
    Begin on tab 1 of the Customer Advocacy Maturity Assessment Tool and read all instructions.

    Navigate to tab 2. Considering the current state of customer advocacy efforts, answer the diagnostic questions in the Diagnostic tab of the Customer Advocacy Maturity Assessment Tool.

    After completing the questions, you will receive a diagnostic result on tab 3 that will identify areas of strength and weakness and make high-level recommendations for your customer advocacy program pilot.

    2.1.2 Discuss Results
    (60-300 min.)

    Discuss
    Schedule a call to discuss your customer advocacy maturity diagnostic results with a SoftwareReviews Advisor.

    Prioritize the recommendations from the diagnostic, noting which will be included in the program pilot and which require funding and resources to advance.

    Transfer
    Transfer results into slides 8 and 11 of the Executive Presentation Template.

    Tips & Reminders
    Complete the diagnostic with a handful of key stakeholders identified in the previous phase. This will help provide a more balanced and accurate assessment of your organization’s current level of customer advocacy maturity.

    Develop your advocacy requirements

    Step 2.2 Identify and document gaps and pain points

    Total duration: 2.5-8.0 hours

    Objective
    Understand the current pain points within key customer-related processes and within any current customer advocacy efforts taking place.

    Output

    • Prioritized list of pain points that could be addressed by a customer advocacy program.

    Participants

    • Customer advocacy lead
    • Key stakeholders

    MarTech
    None

    Tools

    2.2.1 Identify Pain Points
    (60-120 min.)

    Identify
    Identify and list current pain points being experienced around customer advocacy efforts and processes around sales, marketing, customer success, and product feedback.

    Add any gaps identified in the diagnostic to the list.

    Transfer
    Transfer key information into slide 9 of Executive Presentation Template.

    2.2.2 Prioritize Pain Points
    (60-300 min.)

    Prioritize
    Indicate which pains are the most important and that a customer advocacy program could help improve.

    Schedule a call to discuss the outputs of this step with a SoftwareReviews Advisor.

    Document
    Document priorities on slide 9 of Executive Presentation Template.

    Tips & Reminders

    Customer advocacy won't solve for everything; it's important to be clear about what pain points can and can't be addressed through a customer advocacy program.

    Develop your advocacy requirements

    Step 2.3 Develop your ideal advocate profile

    Total duration: 3.0-9.0 hours

    Objective
    Develop an ideal advocate persona profile that can be used to identify potential advocates, guide campaign messaging, and facilitate advocate engagement.

    Output

    • Ideal advocate persona profile

    Participants

    • Customer advocacy lead
    • Key stakeholders
    • Sales lead
    • Marketing lead
    • Customer Success lead
    • Product lead

    MarTech
    May require the use of:

    • CRM or marketing automation platform
    • Available and up-to-date customer database

    Tools

    2.3.1 Brainstorm Session Around Ideal Advocate Persona
    (60-150 min.)

    Brainstorm
    Lead the team to prioritize an initial, single, most important persona and to collaborate to complete the template.

    Choose your ideal advocate for the pilot based on your most important audience. Start with firmographics like company size, industry, and geography.

    Next, consider satisfaction levels and behavioral attributes, such as renewals, engagement, usage, and satisfaction scores.

    Identify motivations and possible incentives for advocate activities.

    Document
    Use slide 10 of the Executive Presentation Template to complete this exercise.

    2.3.2 Review and Refine Advocate Persona
    (60-300 min.)

    Review & Refine
    Place the Executive Presentation Template in a shared drive for team collaboration. Encourage the team to share persona knowledge within the shared drive version.

    Hold any necessary follow-up sessions to further refine persona.

    Validate
    Interview advocates that best represent your ideal advocate profile on their type of preferred involvement with your company, their role and needs when it comes to your solution, ways they'd be willing to advocate, and rewards sought.

    Confirm
    Incorporate feedback and inputs into slide 10 of the Executive Presentation Template. Ensure everyone agrees on persona developed.

    Tips & Reminders

    1. When identifying potential advocates, choose based on your most important audience.
    2. Ensure you're selecting those with the highest satisfaction scores.
    3. Ideally, select candidates that have, on their own, advocated previously such as in social posts, who may have acted as a reference, or who have been highly visible as a positive influence at customer events.
    4. Knowing motivations will determine the type of acts of advocacy they would be most willing to perform and the incentives for participating in the program.

    Consider the following criteria when identifying advocates and developing your ideal advocate persona:

    Demographics Firmographics Satisfaction & Needs/Value Sought Behavior Motivation
    Role - user, decision-maker, etc. Company size: # of employees Satisfaction score Purchase frequency & repeat purchases (renewals), upgrades Career building/promotion
    Department Company size: revenue NPS score Usage Collaboration with peers
    Geography CLV score Engagement (e.g. email opens, response, meetings) Educate others
    Industry Value delivered (outcomes, occasions used, etc.) Social media interaction, posts Influence (on product, service)
    Tenure as client Benefits sought
    Account size ($) Minimal and resolved service tickets, escalations
    1. When identifying potential advocates, choose based on your most important audience/segments. 2. Ensure you're selecting those with the highest satisfaction, NPS, and CLV scores. 3. When identifying potential advocates, choose based on high engagement and interaction, regular renewals, and high usage. 4. Knowing motivations will determine the type of acts of advocacy they would be most willing to perform and incentives for participating in the program.

    Phase 3: Win Executive Approval and Implement Pilot

    Steps
    3.1 Determine pilot goals and success metrics
    3.2 Establish timeline and create advocate communication materials
    3.3 Gain executive buy-in and implement pilot

    Phase Outcome

    • Clear objective for CA pilot
    • Key metrics for program success
    • Pilot timelines and milestones
    • Executive presentation with business case for CA

    Win executive approval and implement pilot

    Step 3.1 Determine pilot goals and success metrics

    Total duration: 2.0-4.0 hours

    Objective
    Set goals and determine the scope for the customer advocacy program pilot.

    Output

    • Documented business objectives for the pilot
    • Documented success metrics

    Participants

    • Customer advocacy lead
    • Key stakeholders
    • Sales lead
    • Marketing lead
    • Customer Success lead
    • Product lead

    MarTech
    May require to use, set up, or install platforms like:

    • Register to a survey platform
    • CRM or marketing automation platform

    Tools

    3.1.1 Establish Pilot Goals
    (60-120 min.)

    Set
    Organize a meeting with department heads and review organizational and individual department goals.

    Using the Venn diagram on slide 39 in this deck, identify customer advocacy goals that align with business goals. Select the highest priority goal for the pilot.

    Check that the goal aligns with benefits sought or addresses pain points identified in the previous phase.

    Document
    Document the goals on slides 9 and 16 of the Executive Presentation Template.

    3.1.2 Establish Pilot Success Metrics
    (60-120 min.)

    Decide
    Decide how you will measure the success of your program pilot using slide 40 in this document.

    Document
    Document metrics on slide 16 of the Executive Presentation Template.

    Tips & Reminders

    1. Don't boil the ocean. Pick the most important goal that can be achieved through the customer advocacy pilot to gain executive buy-in and support or resources for a formal customer advocacy program. Once successfully completed, you'll be able to tackle new goals and expand the program.
    2. Keep your metrics simple, few in number, and relatively easy to track

    Connect customer advocacy goals with organizational goals

    List possible customer advocacy goals, identifying areas of overlap with organizational goals by taking the following steps:

    1. List organizational/departmental goals in the green oval.
    2. List possible customer advocacy program goals in the purple oval.
    3. Enter goals that are covered in both the Organizational Goals and Customer Advocacy Goals sections into the Shared Goals section in the center.
    4. Highlight the highest priority goal for the customer advocacy program pilot to tackle.
    Organizational Goals Shared Goals Customer Advocacy Goals
    Example Example: Gain customer references to help advance sales and improve win rates Example: Develop pool of customer references
    [insert goal] [insert goal] Example: Gather customer feedback
    [insert goal] [insert goal] [insert goal]
    [insert goal] [insert goal] [insert goal]

    Customer advocacy success metrics for consideration

    This table provides a starting point for measuring the success of your customer advocacy pilot depending on the goals you've set.

    This list is by no means exhaustive; the metrics here can be used, or new metrics that would better capture success measurement can be created and tracked.

    Metric
    Revenue influenced by reference calls ($ / % increase)
    # of reference calls resulting in closed-won opportunities
    # of quotes collected
    % of community growth YoY
    # of pieces of product feedback collected
    # of acts of advocacy
    % membership growth
    % product usage amongst community members
    # of social shares, clicks
    CSAT score for community members
    % of registered qualified leads
    # of leads registered
    # of member sign-ups
    # of net-new referenceable customers
    % growth rate of products used by members
    % engagement rate
    # of published third-party reviews
    % increase in fulfilled RFPs

    When selecting metrics, remember:
    When choosing metrics for your customer advocacy pilot, be sure to align them to your specific goals. If possible, try to connect your advocacy efforts back to retention, growth, or revenue.

    Do not choose too many metrics; one per goal should suffice.

    Ensure that you can track the metrics you select to measure - the data is available and measuring won't be overly manual or time-consuming.

    Win executive approval and implement pilot

    Step 3.2 Establish timeline and create advocate communication materials

    Total duration: 2.5-8.0 hours

    Objective
    Outline who will be involved in what roles and capacities and what tasks and activities need to completed.

    Output

    • Timeline and milestones
    • Advocate program materials

    Participants

    • Customer advocacy lead
    • Key stakeholders
    • Sales lead
    • Marketing lead
    • Customer Success lead
    • Product lead

    MarTech
    None

    Tools

    3.2.1 Establish Timeline & Milestones
    (30-60 min.)

    List & Assign
    List all key tasks, phases, and milestones on slides 13, 14, and 15 in the Executive Presentation Template.

    Include any activities that help close gaps or address pain points from slide 9 in the Executive Presentation Template.

    Assign workstream leads on slide 15 in the Executive Presentation Template.

    Finalize all tasks and activities with working team.

    3.2.2 Design & Build Advocate Program Materials
    (180-300 min.)

    Decide
    Determine materials needed to recruit advocates and explain the program to advocate candidates.

    Determine the types of acts of advocacy you are looking for.

    Determine incentives/rewards that will be provided to advocates, such as access to new products or services.

    Build
    Build out all communication materials.

    Obtain incentives.

    Tips & Reminders

    1. When determining incentives, use the validated ideal advocate profile for guidance (i.e. what motivates your advocates?).
    2. Ensure to leave a buffer in the timeline if the need to adjust course arises.

    Win executive approval and implement pilot

    Step 3.3 Implement pilot and gain executive buy-in

    Total duration: 2.5-8.0 hours

    Objective
    Successfully implement the customer advocacy pilot program and communicate results to gain approval for full-fledged program.

    Output

    • Deliver Executive Presentation
    • Successful customer advocacy pilot
    • Provide regular updates to stakeholders, executives

    Participants

    • Customer advocacy lead
    • Workstream leads

    MarTech
    May require the use of:

    • CRM or Marketing Automation Platform
    • Available and up-to-date customer database

    Tools

    3.3.1 Complete & Deliver Executive Presentation
    (60-120 min.)

    Present
    Finalize the Executive Presentation.

    Hold stakeholder meeting and introduce the program pilot.

    3.3.2 Gain Executive Buy-in
    (60-300 min.)

    Pitch
    Present the final results of the customer advocacy pilot using the Executive Presentation Template and gain approval.

    3.3.3 Implement the Customer Advocacy Program Pilot
    (30-60 min.)

    Launch
    Launch the customer advocacy program pilot. Follow the timelines and activities outlined in the Executive Presentation Template. Track/document all advocate outreach, activity, and progress against success metrics.

    Communicate
    Establish a regular cadence to communicate with steering committee, stakeholders. Use the Executive Presentation Template to present progress and resolve roadblocks if/as they arise.

    Tips & Reminders

    1. Continually collect feedback and input from advocates and stakeholders throughout the process.
    2. Don't be afraid to make changes on the go if it helps to achieve the end goal of your pilot.
    3. If the pilot program was successful, consider scaling it up and rolling it out to more customers.

    Summary of Accomplishment

    Mission Accomplished

    • You successfully launched your customer advocacy program pilot and demonstrated clear benefits and ROI. By identifying the needs of the business and aligning those needs with key customer advocacy activities, marketers and customer advocacy leaders can prioritize the most important tasks for the pilot while also identifying potential opportunities for expansion pending executive approval.
    • SoftwareReviews' comprehensive and tactical approach takes you through the steps to build the foundation for a strategic customer advocacy program. Our methodology ensures that a customer advocacy pilot is developed to deliver the desired outcomes and ROI, increasing stakeholder buy-in and setting up your organization for customer advocacy success.

    If you would like additional support, contact us and we'll make sure you get the professional expertise you need.

    Contact your account representative for more information.
    info@softwarereviews.com
    1-888-670-8889

    Related SoftwareReviews Research

    Measure and Manage the Customer Satisfaction Metrics That Matter the Most
    Understand what truly keeps your customer satisfied. Measure what matters to improve customer experience and increase satisfaction and advocacy.

    • Understand the true drivers of satisfaction and dissatisfaction among your customer segments.
    • Establish process and cadence for effective satisfaction measurement and monitoring.
    • Know where resources are needed most to improve satisfaction levels and increase retention.

    Develop the Right Message to Engage Buyers
    Sixty percent of marketers find it hard to produce high-quality content consistently. SaaS marketers have an even more difficult job due to the technical nature of content production.

    • Create more compelling and relevant content that aligns with a buyer's needs and journey.
    • Shrink marketing and sales cycles.
    • Increase the pace of content production.

    Create a Buyer Persona and Journey
    Get deeper buyer understanding and achieve product-market fit, with easier access to market and sales.

    • Reduce time and resources wasted chasing the wrong prospects.
    • Increase open and click-through rates.
    • Perform more effective sales discovery.
    • Increase win rate.

    Bibliography

    "15 Award-Winning Customer Advocacy Success Stories." Influitive, 2021. Accessed 8 June 2023.

    "Advocacy Marketing." Influitive, June 2016. Accessed 26 Oct. 2021.

    Andrews, Marcus. "42% of Companies Don’t Listen to their Customers. Yikes." HubSpot, June 2019. Accessed 2 Nov. 2021.

    "Before you leap! Webcast." Point of Reference, Sept. 2019. Accessed 4 Nov. 2021.

    "Brand Loyalty: 5 Interesting Statistics." Factory360, Jan. 2016. Accessed 2 Nov. 2021.

    Brenner, Michael. "The Data Driven Guide to Customer Advocacy." Marketing Insider Group, Sept. 2021. Accessed 3 Feb. 2022.

    Carroll, Brian. "Why Customer Advocacy Should Be at the Heart of Your Marketing." Marketing Insider Group, Sept. 2017. Accessed 3 Feb. 2022.

    Cote, Dan. "Advocacy Blooms and Business Booms When Customers and Employees Engage." Influitive, Dec. 2021. Accessed 3 Feb. 2022.

    "Customer Success Strategy Guide." ON24, Jan. 2021. Accessed 2 Nov. 2021.

    Dalao, Kat. "Customer Advocacy: The Revenue-Driving Secret Weapon." ReferralRock, June 2017. Accessed 7 Dec. 2021.

    Frichou, Flora. "Your guide to customer advocacy: What is it, and why is it important?" TrustPilot, Jan. 2020. Accessed 26 Oct. 2021.

    Gallo, Amy. "The Value of Keeping the Right Customers." Harvard Business Review, Oct. 2014. Accessed 10 March 2022.

    Huhn, Jessica. "61 B2B Referral Marketing Statistics and Quotes." ReferralRock, March 2022. Accessed 10 March 2022.

    Kemper, Grayson. "B2B Buying Process: How Businesses Purchase B2B Services and Software." Clutch, Feb. 2020. Accessed 6 Jan. 2022.

    Kettner, Kyle. "The Evolution of Ambassador Marketing." BrandChamp.io, Oct. 2018. Accessed 2 Nov. 2021.

    Landis, Taylor. "Customer Retention Marketing vs. Customer Acquisition Marketing." OutboundEngine, April 2022. Accessed 23 April 2022.

    Miels, Emily. "What is customer advocacy? Definition and strategies." Zendesk Blog, June 2021. Accessed 27 Oct. 2021.

    Mohammad, Qasim. "The 5 Biggest Obstacles to Implementing a Successful B2B Customer Advocacy Program." HubSpot, June 2018. Accessed 6 Jan. 2022.

    Murphy, Brandon. "Brand Advocacy and Social Media - 2009 GMA Conference." Deloitte, Dec. 2009. Accessed 8 June 2023.

    Patel, Neil. "Why SaaS Brand Advocacy is More Important than Ever in 2021." Neil Patel, Feb. 2021. Accessed 4 Nov. 2021.

    Pieri, Carl. "The Plain-English Guide to Customer Advocacy." HubSpot, Apr. 2020. Accessed 27 Oct. 2021.

    Schmitt, Philipp; Skiera, Bernd; Van den Bulte, Christophe. "Referral Programs and Customer Value." Wharton Journal of Marketing, Jan. 2011. Accessed 8 June 2023.

    "The Complete Guide to Customer Advocacy." Gray Group International, 2020. Accessed 15 Oct. 2021.

    "The Customer-powered Enterprise: Playbook." Influitive, Gainsight & Pendo. 2020. Accessed 26 Oct. 2021.

    "The Winning Case for a Customer Advocacy Solution." RO Innovation, 2017. Accessed 26 Oct. 2021.

    Tidey, Will. "Acquisition vs. Retention: The Importance of Customer Lifetime Value." Huify, Feb. 2018. Accessed 10 Mar. 2022.

    "What a Brand Advocate Is and Why Your Company Needs One." RockContent, Jan. 2021. Accessed 7 Feb. 2022.

    "What is Customer Advocacy? A Definition and Strategies to Implement It." Testimonial Hero, Oct. 2021. Accessed 26 Jan. 2022.

    Master Contract Review and Negotiation for Software Agreements

    • Buy Link or Shortcode: {j2store}170|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Internal stakeholders usually have different – and often conflicting – needs and expectations that require careful facilitation and management.
    • Vendors have well-honed negotiating strategies. Without understanding your own position and leverage points, it’s difficult to withstand their persuasive – and sometimes pushy – tactics.
    • Software – and software licensing – is constantly changing, making it difficult to acquire and retain subject matter expertise.

    Our Advice

    Critical Insight

    • Conservatively, it’s possible to save 5% of the overall IT budget through comprehensive software contract review.
    • Focus on the terms and conditions, not just the price.
    • Learning to negotiate is crucial.

    Impact and Result

    • Look at your contract holistically to find cost savings.
    • Guide communication between vendors and your organization for the duration of contract negotiations.
    • Redline the terms and conditions of your software contract.
    • Prioritize crucial terms and conditions to negotiate.

    Master Contract Review and Negotiation for Software Agreements Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to redline and negotiate your software agreement, 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. Gather requirements

    Build and manage your stakeholder team, then document your business use case.

    • Master Contract Review and Negotiation for Software Agreements – Phase 1: Gather Requirements
    • RASCI Chart
    • Vendor Communication Management Plan
    • Software Business Use Case Template
    • SaaS TCO Calculator

    2. Redline contract

    Redline your proposed software contract.

    • Master Contract Review and Negotiation for Software Agreements – Phase 2: Redline Contract
    • Software Terms & Conditions Evaluation Tool
    • Software Buyer's Checklist

    3. Negotiate contract

    Create a thorough negotiation plan.

    • Master Contract Review and Negotiation for Software Agreements – Phase 3: Negotiate Contract
    • Controlled Vendor Communications Letter
    • Key Vendor Fiscal Year End Calendar
    • Contract Negotiation Tactics Playbook
    [infographic]

    Workshop: Master Contract Review and Negotiation for Software Agreements

    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 Collect and Review Data

    The Purpose

    Assemble documentation.

    Key Benefits Achieved

    Understand current position before going forward.

    Activities

    1.1 Assemble existing contracts.

    1.2 Document their strategic and tactical objectives.

    1.3 Identify current status of the vendor relationship and any historical context.

    1.4 Clarify goals for ideal future state.

    Outputs

    Business Use Case

    2 Define Business Use Case and Build Stakeholder Team

    The Purpose

    Define business use case and build stakeholder team.

    Key Benefits Achieved

    Create business use case to document functional and nonfunctional requirements.

    Build internal cross-functional stakeholder team to negotiate contract.

    Activities

    2.1 Establish negotiation team and define roles.

    2.2 Write communication plan.

    2.3 Complete business use case.

    Outputs

    RASCI Chart

    Vendor Communication Management Plan

    SaaS TCO Calculator

    Software Business Use Case

    3 Redline Contract

    The Purpose

    Examine terms and conditions and prioritize for negotiation.

    Key Benefits Achieved

    Discover cost savings.

    Improve agreement terms.

    Prioritize terms for negotiation.

    Activities

    3.1 Review general terms and conditions.

    3.2 Review license- and application-specific terms and conditions.

    3.3 Match to business and technical requirements.

    3.4 Redline agreement.

    Outputs

    Software Terms & Conditions Evaluation Tool

    Software Buyer’s Checklist

    4 Build Negotiation Strategy

    The Purpose

    Create a negotiation strategy.

    Key Benefits Achieved

    Establish controlled communication.

    Choose negotiation tactics.

    Plot negotiation timeline.

    Activities

    4.1 Review vendor- and application-specific negotiation tactics.

    4.2 Build negotiation strategy.

    Outputs

    Contract Negotiation Tactics Playbook

    Controlled Vendor Communications Letter

    Key Vendor Fiscal Year End Calendar

    Initiate Your Service Management Program

    • Buy Link or Shortcode: {j2store}398|cart{/j2store}
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    • Parent Category Name: Service Management
    • Parent Category Link: /service-management
    • IT organizations continue attempting to implement service management, often based on ITIL, with limited success and without visible value.
    • More than half of service management implementations have failed beyond simply implementing the service desk and the incident, change, and request management processes.
    • Organizational structure, goals, and cultural factors are not considered during service management implementation and improvement.
    • The business lacks engagement and understanding of service management.

    Our Advice

    Critical Insight

    • Service management is an organizational approach. Focus on producing successful and valuable services and service outcomes for the customers.
    • All areas of the organization are accountable for governing and executing service management. Ensure that you create a service management strategy that improves business outcomes and provides the value and quality expected.

    Impact and Result

    • Identified structure for how your service management model should be run and governed.
    • Identified forces that impact your ability to oversee and drive service management success.
    • Mitigation approach to restraining forces.

    Initiate Your Service Management Program Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand why service management implementations often fail and why you should establish governance for service management.

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

    1. Identify the level of oversight you need

    Use Info-Tech’s methodology to establish an effective service management program with proper oversight.

    • Service Management Program Initiation Plan
    [infographic]

    Manage Poor Performance While Working From Home

    • Buy Link or Shortcode: {j2store}599|cart{/j2store}
    • member rating overall impact (scale of 10): 9.0/10 Overall Impact
    • member rating average dollars saved: $1,600 Average $ Saved
    • member rating average days saved: 18 Average Days Saved
    • Parent Category Name: Manage & Coach
    • Parent Category Link: /manage-coach
    • For many, emergency WFH comes with several new challenges such as additional childcare responsibilities, sudden changes in role expectations, and negative impacts on wellbeing. These new challenges, coupled with previously existing ones, can result in poor performance. Owing to the lack of physical presence and cues, managers may struggle to identify that an employee’s performance is suffering. Even after identifying poor performance, it can be difficult to address remotely when such conversations would ideally be held in person.

    Our Advice

    Critical Insight

    • Poor performance must be managed, despite the pandemic. Evaluating root causes of performance issues is more important than ever now that personal factors such as lack of childcare and eldercare for those working from home are complicating the issue.

    Impact and Result

    • Organizations need to have a clear process for improving performance for employees working remotely during the COVID-19 pandemic. Provide managers with resources to help them identify performance issues and uncover their root causes as part of addressing overall performance. This will allow managers to connect employees with the required support while working with them to improve performance.

    Manage Poor Performance While Working From Home Research & Tools

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

    1. Follow the remote performance improvement process

    Determine how managers can identify poor performance remotely and help them navigate the performance improvement process while working from home.

    • Manage Poor Performance While Working From Home Storyboard
    • Manage Poor Performance While Working From Home: Manager Guide
    • Manage Poor Performance While Working From Home: Infographic

    2. Clarify roles and leverage resources

    Clarify roles and responsibilities in the performance improvement process and tailor relevant resources.

    • Wellness and Working From Home
    [infographic]

    Further reading

    Manage Poor Performance While Working From Home

    Assess and improve remote work performance with our ready-to-use tools.

    Executive Summary

    McLean & Company Insight

    Poor performance must be managed, despite the pandemic. Evaluating root causes of performance issues is more important than ever now that personal factors such as lack of childcare and eldercare for those working from home are complicating the issue.

    Situation

    COVID-19 has led to a sudden shift to working from home (WFH), resulting in a 72% decline in in-office work (Ranosa, 2020). While these uncertain times have disrupted traditional work routines, employee performance remains critical, as it plays a role in determining how organizations recover. Managers must not turn a blind eye to performance issues but rather must act quickly to support employees who may be struggling.

    Complication

    For many, emergency WFH comes with several new challenges such as additional childcare responsibilities, sudden changes in role expectations, and negative impacts on wellbeing. These new challenges, coupled with previously existing ones, can result in poor performance. Owing to the lack of physical presence and cues, managers may struggle to identify that an employee’s performance is suffering. Even after identifying poor performance, it can be difficult to address remotely when such conversations would ideally be held in person.

    Solution

    Organizations need to have a clear process for improving performance for employees working remotely during the COVID-19 pandemic. Provide managers with resources to help them identify performance issues and uncover their root causes as part of addressing overall performance. This will allow managers to connect employees with the required support while working with them to improve performance.

    Manage Poor Performance While Working From Home is made up of the following resources:

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide
    Storyboard

    This storyboard is organized by the four steps of the performance improvement process: identify, initiate, deploy, and follow up/decide. These will appear on the left-hand side of the slides as a roadmap.

    The focus is on how HR can design the process for managing poor performance remotely and support managers through it while emergency WFH measures are in place. Key responsibilities, email templates, and relevant resources are included at the end.

    Adapt the process as necessary for your organization.

    Manager Guide

    The manager guide contains detailed advice for managers on navigating the process and focuses on the content of remote performance discussions.

    It consists of the following sections:

    • Identifying poor performance.
    • Conducting performance improvement discussions.
    • Uncovering and addressing root causes of poor performance.
    Manager Infographic

    The manager infographic illustrates the high-level steps of the performance improvement process for managers in a visually appealing and easily digestible manner.

    This can be used to easily outline the process, providing managers with a resource to quickly reference as they navigate the process with their direct reports.

    In this blueprint, “WFH” and “remote working” are used interchangeably.

    This blueprint will not cover the performance management framework; it is solely focused on managing performance issues.

    For information on adjusting the regular performance management process during the pandemic, see Performance Management for Emergency Work-From-Home.

    Identify how low performance is normally addressed

    A process for performance improvement is not akin to outlining the steps of a performance improvement plan (PIP). The PIP is a development tool used within a larger process for performance improvement. Guidance on how to structure and use a PIP will be provided later in this blueprint.

    Evaluate how low performance is usually brought to the attention of HR in a non-remote situation:
    • Do managers approach HR for an employee transfer or PIP without having prior performance conversations with the employee?
    • Do managers come to HR when they need support in developing an employee in order to meet expectations?
    • Do managers proactively reach out to HR to discuss appropriate L&D for staff who are struggling?
    • Do some departments engage with the process while others do not?
    Poor performance does not signal the immediate need to terminate an employee. Instead, managers should focus on helping the struggling employee to develop so that they may succeed.
    Evaluate how poor performance is determined:
    • Do managers use performance data or concrete examples?
    • Is it based on a subjective assessment by the manager?
    Keep in mind that “poor performance” now might look different than it did before the pandemic. Employees must be aware of the current expectations placed on them before they can be labeled as underperforming – and the performance expectations must be assessed to ensure they are realistic.

    For information on adjusting performance expectations during the pandemic, see Performance Management for Emergency Work-From-Home.

    The process for non-union and union employees will likely differ. Make sure your process for unionized employees aligns with collective agreements.

    Determine how managers can identify poor performance of staff working remotely

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide
    Identify: Determine how managers can identify poor performance.
    In person, it can be easy to see when an employee is struggling by glancing over at their desk and observing body language. In a remote situation, this can be more difficult, as it is easy to put on a brave face for the half-hour to one-hour check-in. Advise managers on how important frequent one-one-ones and open communication are in helping identify issues when they arise rather than when it’s too late.

    Managers must clearly document and communicate instances where employees aren’t meeting role expectations or are showing other key signs that they are not performing at the level expected of them.

    What 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
    It’s crucial to acknowledge an employee might have an “off week” or need time to adjust to working from home, which can be addressed with performance management techniques. Managers should move into the process for performance improvement when:
    • Performance fluctuates frequently or significantly.
    • Performance has dropped for an extended period of time.
    • Expectations are consistently not being met.

    While it’s important for managers to keep an eye out for decreased performance, discourage them from over-monitoring employees, as this can lead to a damaging environment of distrust.

    Support managers in initiating performance conversations and uncovering root causes

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide
    Initiate: Require that managers have several conversations about low performance with the employee.
    Before using more formal measures, ensure managers take responsibility for connecting with the employee to have an initial performance conversation where they will make the performance issue known and try to diagnose the root cause of the issue.

    Coach managers to recognize behaviors associated with the following performance inhibitors:

    Personal Factors

    Personal factors, usually outside the workplace, can affect an employee’s performance.

    Lack of clarity

    Employees must be clear on performance expectations before they can be labeled as a poor performer.

    Low motivation

    Lack of motivation to complete work can impact the quality of output and/or amount of work an employee is completing.

    Inability

    Resourcing, technology, organizational change, or lack of skills to do the job can all result in the inability of an employee to perform at their best.

    Poor people skills

    Problematic people skills, externally with clients or internally with colleagues, can affect an employee’s performance or the team’s engagement.

    Personal factors are a common performance inhibitor due to emergency WFH measures. The decreased divide between work and home life and the additional stresses of the pandemic can bring up new cases of poor performance or exacerbate existing ones. Remind managers that all potential root causes should still be investigated rather than assuming personal factors are the problem and emphasize that there can be more than one cause.

    Ensure managers continue to conduct frequent performance conversations

    Once an informal conversation has been initiated, the manager should schedule frequent one-on-one performance conversations (above and beyond performance management check-ins).

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide
    Explain to managers the purpose of these discussions is to:
    • Continue to probe for root causes.
    • Reinforce role expectations and performance targets.
    • Follow up on any improvements.
    • Address the performance issue and share relevant resources (e.g. HR or employee assistance program [EAP]).
    Given these conversations will be remote, require managers to:
    • Use video whenever possible to read physical cues and body language.
    • Bookend the conversation. Starting each meeting by setting the context for the discussion and finishing with the employee reiterating the key takeaways back will ensure there are no misunderstandings.
    • Document the conversation and share with HR. This provides evidence of the conversations and helps hold managers accountable.
    What is HR’s role? HR should ensure that the manager has had multiple conversations with the employee before moving to the next step. Furthermore, HR is responsible for ensuring manages are equipped to have the conversations through coaching, role-playing, etc.

    For more information on the content of these conversations or for material to leverage for training purposes, see Manage Poor Performance While Working From Home: Manager Guide.

    McLean & Company Insight

    Managers are there to be coaches, not therapists. Uncovering the root cause of poor performance will allow managers to pinpoint supports needed, either within their expertise (e.g. coaching, training, providing flexible hours) or by directing the employee to proper external resources such as an EAP.

    Help managers use formal performance improvement tools with remote workers

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide
    Deploy: Use performance improvement tools.
    If initial performance conversations were unsuccessful and performance does not improve, refer managers to performance improvement tools:
    • Suggest any other available support and resources they have not yet recommended (e.g. EAP).
    • Explore options for co-creation of a development plan to increase employee buy-in. If the manager has been diligent about clarifying role expectations, invite the employee to put together their own action plan for meeting performance goals. This can then be reviewed and finalized with the manager.
    • Have the manager use a formal PIP for development and to get the employee back on track. Review the development plan or PIP with the manager before they share it with the employee to ensure it is clear and has time bound, realistic goals for improvement.
    Using a PIP solely to avoid legal trouble and terminate employees isn’t true to its intended purpose. This is what progressive discipline is for.In the case of significant behavior problems, like breaking company rules or safety violations, the manager will likely need to move to progressive discipline. HR should advise managers on the appropriate process.

    When does the issue warrant progressive discipline? If the action needs to stop immediately, (e.g. threatening or inappropriate behavior) and/or as outlined in the collective agreement.

    Clarify remote PIP stages and best practices

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide
    Sample Stages:
    1. Written PIP
    • HR reviews and signs off on PIP
    • Manager holds meeting to provide employee with PIP
    • Employee reviews the PIP
    • Manager and employee provide e-signatures
    • Signed PIP is given to HR
    2. Possible Extension
    3. Final Notice
    • Manager provides employee with final notice if there has been no improvement in agreed time frame
    • Copy of signed final notice letter given to HR

    Who is involved?

    The manager runs the meeting with the employee. HR should act as a support by:

    • Ensuring the PIP is clear, aligned with the performance issue, and focused on development, prior to the meeting.
    • Pointing to resources and making themselves available prior to, during, and after the meeting.
      • When should HR be involved? HR should be present in the meeting if the manager has requested it or if the employee has approached HR beforehand with concerns about the manager. Keep in mind that if the employee sees HR has been unexpectedly invited to the video call, it could add extra stress for them.
    • Reviewing documentation and ensuring expectations and the action plan are reasonable and realistic.

    Determine the length of the PIP

    • The length of the initial PIP will often depend on the complexity of the employee’s role and how long it will reasonably take to see improvements. The minimum (before a potential extension) should be 30-60 days.
    • Ensure the action plan takes sustainment into account. Employees must be able to demonstrate improvement and sustain improved performance in order to successfully complete a PIP.

    Timing of delivery

    Help the manager determine when the PIP meeting will occur (what day, time of day). Take into account the schedule of the employee they will be meeting with (e.g. avoid scheduling right before an important client call).

    1

    Identify

    2

    Initiate

    3

    Deploy

    4

    a) Follow Up
    b) Decide

    Follow up: If the process escalated to step 3 and is successful.

    What does success look like? Performance improvement must be sustained after the PIP is completed. It’s not enough to simply meet performance improvement goals and expectations; the employee must continue to perform.

    Have the manager schedule a final PIP review with the employee. Use video, as this enables the employee and manager to read body language and minimize miscommunication/misinterpretation.

    • If performance expectations have been met, instruct managers to document this in the PIP, inform the employee they are off the PIP, and provide it to HR.

    The manager should also continue check-ins with the employee to ensure sustainment and as part of continued performance management.

    • Set a specific timeline, e.g. every two weeks or every month. Choose a cadence that works best for the manager and employee.

    OR

    Decide: Determine action steps if the process is unsuccessful.

    If at the end of step 3 performance has not sufficiently improved, the organization (HR and the manager) should either determine if the employee could/should be temporarily redeployed while the emergency WFH is still in place, if a permanent transfer to a role that is a better fit is an option, or if the employee should be let go.

    See the Complete Manual for COVID-19 Layoffs blueprint for information on layoffs in remote environments.

    Managers, HR, and employees all have a role to play in performance improvement

    Managers
    • Identify the outcomes the organization is looking for and clearly outline and communicate the expectations for the employee’s performance.
    • Diagnose root cause(s) of the performance issue.
    • Support employee through frequent conversations and feedback.
    • Coach for improved performance.
    • Visibly recognize and broadcast employee achievements.
    Employees
    • Have open and honest conversations with their manager, acknowledge their accountability, and be receptive to feedback.
    • Set performance goals to meet expectations of the role.
    • Prepare for frequent check-ins regarding improvement.
    • Seek support from HR as required.
    HR
    • Provide managers with a process, training, and support to improve employee performance.
    • Coach managers to ensure employees have been made aware of their role expectations and current performance and given specific recommendations on how to improve.
    • Reinforce the process for improving employee performance to ensure that adequate coaching conversations have taken place before the formal PIP.
    • Coach employees on how to approach their manager to discuss challenges in meeting expectations.

    HR should conduct checkpoints with both managers and employees in cases where a formal PIP was initiated to ensure the process for performance improvement is being followed and to support both parties in improving performance.

    Email templates

    Use the templates found on the next slides to draft communications to employees who are underperforming while working from home.

    Customize all templates with relevant information and use them as a guide to further tailor your communication to a specific employee.

    Customization Recommendations

    Review all slides and adjust the language or content as needed to suit the needs of the employee, the complexity of their role, and the performance issue.

    • The pencil icon to the left denotes slides requiring customization of the text. Customize text in grey font and be sure to convert all font to black when you are done.

    Included Templates

    1. Performance Discussion Follow-Up
    2. PIP Cover Letter

    This template is not a substitute for legal advice. Ensure you consult with your legal counsel, labor relations representative, and union representative to align with collective agreements and relevant legislation.

    Sample Performance Discussion Follow-Up

    Hello [name],

    Thank you for the commitment and eagerness in our meeting yesterday.

    I wanted to recap the conversation and expectations for the month of [insert month].

    As discussed, you have been advised about your recent [behavior, performance, attendance, policy, etc.] where you have demonstrated [state specific issue with detail of behavior/performance of concern]. As per our conversation, we’ll be working on improvement in this area in order to meet expectations set out for our employees.

    It is expected that employees [state expectations]. Please do not hesitate to reach out to me if there is further clarification needed or you if you have any questions or concerns. The management team and I are committed to helping you achieve these goals.

    We will do a formal check-in on your progress every [insert day] from [insert time] to review your progress. I will also be available for daily check-ins to support you on the right track. Additionally, you can book me in for desk-side coaching outside of my regular desk-side check-ins. If there is anything else I can do to help support you in hitting these goals, please let me know. Other resources we discussed that may be helpful in meeting these objectives are [summarize available support and resources]. By working together through this process, I have no doubt that you can be successful. I am here to provide support and assist you through this.

    If you’re unable to show improvements set out in our discussion by [date], we will proceed to a formal performance measure that will include a performance improvement plan. Please let me know if you have any questions or concerns; I am here to help.

    Please acknowledge this email and let me know if you have any questions.

    Thank you,

    PIP Cover Letter

    Hello [name] ,

    This is to confirm our meeting on [date] in which we discussed your performance to date and areas that need improvement. Please find the attached performance improvement plan, which contains a detailed action plan that we have agreed upon to help you meet role expectations over the next [XX days]. The aim of this plan is to provide you with a detailed outline of our performance expectations and provide you the opportunity to improve your performance, with our support.

    We will check in every [XX days] to review your progress. At the end of the [XX]-day period, we will review your performance against the role expectations set out in this performance improvement plan. If you don’t meet the performance requirements in the time allotted, further action and consequences will follow.

    Should you have any questions about the performance improvement plan or the process outlined in this document, please do not hesitate to discuss them with me.

    [Employee name], it is my personal objective to help you be a fully productive member of our team. By working together through this performance improvement plan, I have no doubt that you can be successful. I am here to provide support and assist you through the process. At this time, I would also like to remind you about the [additional resources available at your organization, for example, employee assistance program or HR].

    Please acknowledge this email and let me know if you have any questions.

    Thank you,

    Prepare and customize manager guide and resources

    Sample of Manage Poor Performance While Working From Home: Manager Guide. Manage Poor Performance While Working From Home: Manager Guide

    This tool for managers provides advice on navigating the process and focuses on the content of remote performance discussions.

    Sample of Set Meaningful Employee Performance Measures. Set Meaningful Employee Performance Measures

    See this blueprint for information on setting holistic measures to inspire employee performance.

    Sample of Manage Poor Performance While Working From Home: Infographic. Manage Poor Performance While Working From Home: Infographic

    This tool illustrates the high-level steps of the performance improvement process.

    Sample of Wellness and Working From Home: Infographic. Wellness and Working From Home: Infographic

    This tool highlights tips to manage physical and mental health while working from home.

    Sample of Build a Better Manager: Team Essentials. Build a Better Manager: Team Essentials

    See this solution set for more information on kick-starting the effectiveness of first-time IT managers with essential management skills.

    Sample of Leverage Agile Goal Setting for Improved Employee Engagement & Performance. Leverage Agile Goal Setting for Improved Employee Engagement & Performance

    See this blueprint for information on dodging the micromanaging foul and scoring with agile short-term goal setting.

    Bibliography

    Arringdale, Chris. “6 Tips For Managers Trying to Overcome Performance Appraisal Anxiety.” TLNT. 18 September 2015. Accessed 2018.

    Borysenko, Karlyn. “What Was Management Thinking? The High Cost of Employee Turnover.” Talent Management and HR. 22 April 2015. Accessed 2018.

    Cook, Ian. “Curbing Employee Turnover Contagion in the Workplace.” Visier. 20 February 2018. Accessed 2018.

    Cornerstone OnDemand. Toxic Employees in the Workplace. Santa Monica, California: Cornerstone OnDemand, 2015. Web.

    Dewar, Carolyn and Reed Doucette. “6 elements to create a high-performing culture.” McKinsey & Company. 9 April 2018. Accessed 2018.

    Eagle Hill. Eagle Hill National Attrition Survey. Washington, D.C.: Eagle Hill, 2015. Web.

    ERC. “Performance Improvement Plan Checklist.” ERC. 21 June 2017. Accessed 2018.

    Foster, James. “The Impact of Managers on Workplace Engagement and Productivity.” Interact. 16 March 2017. Accessed 2018.

    Godwins Solicitors LLP. “Employment Tribunal Statistics for 2015/2016.” Godwins Solicitors LLP. 8 February 2017. Accessed 2018.

    Mankins, Michael. “How to Manage a Team of All-Stars.” Harvard Business Review. 6 June 2017. Accessed 2018.

    Maxfield, David, et al. The Value of Stress-Free Productivity. Provo, Utah: VitalSmarts, 2017. Web.

    Murphy, Mark. “Skip Your Low Performers When Starting Performance Appraisals.” Forbes. 21 January 2015. Accessed 2018.

    Quint. “Transforming into a High Performance Organization.” Quint Wellington Redwood. 16 November 2017. Accessed 2018.

    Ranosa, Rachel. "COVID -19: Canadian Productivity Booms Despite Social Distancing." Human Resources Director, 14 April 2020. Accessed 2020.

    Vendor Management

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    That does not mean strong-arming. It means maximizing the vendor relationship value.

    Tymans Group Consulting

    Your IT performs better and more resilient.

    Discover and implement all the ingredients that make your IT perform fast and rock solid.

    Yes, I want performant and resilient technology

    And BTW, what is the ONE thing to look for in a consultant - advisor? Passion! TY brings passion to IT resilience, and achieves results for your organisation, your clients and your stakeholders.

    What is resilience, and how do I become resilient?

    Being IT resilient means that your IT operating environment can withstand or at least is prepared for any disruption. These can be planned, such as regular changes to the systems, applications, or even operational instructions, or unplanned, such as large or small incidents.

    This resiliency means your business can keep moving forward, and your clients can continue consuming your services.

    There are several components to IT resiliency. Click below, or scroll for the quick version.

    Learn more

    How can Tymans Group help you?

    • Our Resilience Pack helps you on your way

      This pack contains the DIY guides that have helped many managers, specialists, business owners and even other consultants successfully implement what is needed to make your business resilient and your IT performant. You can do this! And where needed, you can get extra help from us.

      Read more

    • TY as your advisor

      This gives you our expertise on tap. You have an issue? Call us. You want to have a sparring partner to solve a problem? Call us. You are in need of a sounding board? Call us.

      TY provides advisory services as well as traditional consulting. We also execute study and revision services for your policies, standards, procedures and guidelines to ensure compliance with DORA, NIS2 and corporate requirements of both your own company and that of your clients.

      Additionally, it is an ideal companion to our Resilience Pack.

    • Focused Consulting and Implementing

      This is where you have our undivided attention and we work with you one on one until resolution. Note that there is a waiting period for this service at this time.

    What our clients tell us

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      Tx for all the efforts done! Great Job! And good luck for the ones amongst you that still need to work tomorrow Grtz Sandra VB
    • Patrick A.

      Hi Gert, I'm busy documenting .... Thanks for your real friendly and careful, yet effective support :-) Patrick A.
    • Lucie VH

      During my vacation, Gert took over the management of a number of ongoing problems. Even before I actually left for my trip, he took action and proposed a number of improvements. Gert coordinated between the different stakeholders and PTA's and resolved a number of acute issues. And he did this in a very pleasant, yet effective way.
    • Dawn

      No worries. It only freaked me out for a few minutes, then I saw that the system had blocked them from doing any real damage. Thanks for the cleanup and extra measures, though! As always, you rock!
    • After a successful DRP

      Thanks for all the efforts done ans special Tx Gert for Coordinating this again!
    • A CIO

      Yet again Gert, Thanks for handling this in such a top way!
    • A Sales Manager

      Awesome Gert, I will let the team know we can close this issue!

    Benefits of working with Tymans Group

    • We focus on actual deliverables

      TY delivers on the IT resilience what and how. Get actionable IT, management, governance, and productivity research, insights, blueprints with templates, easy-to-use tools, and clear instructions to help you execute effectively and become IT resilient.

    • Get insights from top IT professionals

      Our TY network base constantly informs us about our IT resilience research and validates it through client experiences. TY adds to that by applying this research to real-world situations in Belgium, the Netherlands, Germany, Europe and the US.

    • Data-driven insights

      It is tempting to use your gut instinct. Don't. Everything TY does, is data-driven. From our research to our interactions with you, we use an analytical approach to help you move forward with your key IT resilience projects.

    Features

    • Editable

      All our DIY guides consist of high-quality PowerPoint, Word, Excel, and Visio documents guiding your through every step you need to take to achieve your goal.

    • Practical

      Our content is immediately applicable because we provide you with exact steps to take so that you can implement the solution to your IT situation.

    • Details and Presentations

      Many of the guides contain both the implementation details, as well as presentation materials, where appropriate, for management. 

    • Do it yourself

      The implementation guides allow you to use your own staff to implement all the required steps.

    • Phone and Online support

      You can add TY consulting-on-tap support to your guide for an additional fee. This support includes your specific questions about the topic. It may require us to deep-dive into your specific situation, affecting the price. Contact us to discuss.

    • Guided implementations

      Should you want more comprehense help, then we offer guided workshops on most of the guides. This is a more expensive addon, where TY connects you with one or more specialist analysts who guide you through the process. Contact us to discuss your needs.

    Frequently asked questions

    • Does this work for less than 25 employees?

      Resilience is not size-dependent. That said, if you are supplying critical services to financial services firms, you may not have a choice. In that case, be prepared to up your game. Call TY in this case. We can help you fulfill third-party requirements, such as the DORA regulation.

      In other cases, if you plan to grow your company beyond 25 employees, then yes. Start with the basics through. Make sure you have a good understanding of your current challenges. 

      If you are just starting out and want to ensure that your company's processes are correct right out of the gate, it's better to give me a call so that we can start you off in the right direction without spending too much.

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      See also the above question about company size and target clients. If you have fewer than 25 employees and you are not supplying critical services to financial institutions, then maybe some of our guides are not for you. We can still help you organize your resilience, but it may be more cost-effective to use only our TY Advisory services.

      Once you grow beyond 25 employees, you will benefit from our processes. Just implement what you need. How do you know what you need? You probably already have an inkling of what is lacking in your organization. If you are unsure, please get in touch with us.

      In short, the answer is yes, and TY can help you. Once you know what you are looking for, that guide will allow you to handle it yourself. If you need help selecting the right guide, please get in touch with us.

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      Before buying the DIY guides, please check out the free Executive Summary when available. If there is no Executive summary available, please contact me with any questions you have. 

      As these are downloadable products, I cannot provide any refunds, but I will help you with any exchange where you have a good reason. 

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      Per-guide assistance ranges from a single phone or video consultation to guided implementation or workshop. Alternatively we can go to do-it-for-you implementation or even full-time consulting.

      Please contact me for a talk.

    I want more information to become more resilient.

    Continue reading

    Develop the Right Message to Engage Buyers

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    Sixty percent of marketers find it hard to produce high-quality content consistently. SaaS marketers have an even more difficult job due to the technical nature of content production. Without an easy content development strategy, marketers have an insurmountable task of continually creating interesting content for an audience they don’t understand.

    Globally, B2B SaaS marketers without the ability to consistently produce and activate quality content will experience:

    • High website bounce rates and low time on site
    • Low page views
    • A low percentage of return visitors
    • Low conversions
    • Low open and click-through rates on email campaigns

    Our Advice

    Critical Insight

    Marketing content that identifies the benefit of the product along with a deep understanding of the buyer pain points, desired value, and benefit proof points is a key driver in delivering value to a prospect, thereby increasing marketing metrics such as open rates, time on site, page views, and click-through rates.

    Impact and Result

    Marketers that activate the SoftwareReviews message mapping architecture will be able to crack the code on the formula for improving open and click-through rates.

    By applying the SoftwareReviews message mapping architecture, clients will be able to:

    • Quickly diagnose the current state of their content marketing effectiveness compared to industry metrics.
    • Compare their current messaging approach versus the key elements of the Message Map Architecture.
    • Create more compelling and relevant content that aligns with a buyer’s needs and journey.
    • Shrink marketing and sales cycles.
    • Increase the pace of content production.

    Develop the Right Message to Engage Buyers Research & Tools

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

    1. Develop the Right Message to Engage Buyers Executive Brief – A mapping architecture to enable marketers to crack the code on the formula for improving open and click-through rates.

    Through this blueprint marketers will learn how to shift content away from low-performing content that only focuses on the product and company to high-performing customer-focused content that answers the “What’s in it for me?” question for a buyer, increasing engagement and conversions.

    Infographic

    Further reading

    Develop the Right Message to Engage Buyers

    Drive higher open rates, time-on-site, and click-through rates with buyer-relevant messaging.

    Analyst Perspective

    Develop the right message to engage buyers.

    Marketers only have seven seconds to capture a visitor's attention but often don't realize that the space between competitors and their company is that narrow. They often miss the mark on content and create reams of product and company-focused messaging that result in high bounce rates, low page views, low return visits, low conversions, and low click-through rates.

    We wouldn't want to sit in a conversation with someone who only speaks about themselves, so why would it be any different when we buy something? Today's marketers must quickly hook their visitors with content that answers the critical question of "What's in it for me?"

    Our research finds that leading content marketers craft messaging that lets their audience ”know they know them,” points out what’s in it for them, and includes proof points of promised value. This simple, yet often missed approach, we call Message Mapping, which helps marketers grab a visitor’s initial attention and when applied throughout the customer journey will turn prospects into customers, lifelong buyers, advocates, and referrals.

    Photo of Terra Higginson, Marketing Research Director, SoftwareReviews.

    Terra Higginson
    Marketing Research Director
    SoftwareReviews

    Executive Summary

    Your Challenge

    Globally, B2B SaaS marketers without the ability to consistently produce and activate quality content will experience:

    • High website bounce rates and low time on site
    • Low page views
    • A low percentage of return visitors
    • Low conversions
    • Low open and click-through rates on email campaigns
    Sixty percent of marketers find it hard to produce high-quality content consistently. SaaS marketers have an even more difficult job due to the technical nature of content production. Without an easy content development strategy, marketers have an insurmountable task of continually creating interesting content for an audience they don’t understand.
    Common Obstacles

    Marketers struggle to create content that quickly engages the buyer because they lack:

    • Resources to create a high volume of quality content.
    • True buyer understanding.
    • Experience in how to align technical messaging with the buyer persona.
    • Easy-to-deploy content strategy tools.
    Even though most marketers will say that it’s important to produce interesting content, only 58% of B2B markers take the time to ask their customers what’s important to them. Without a true and deep understanding of buyers, marketers continue to invest their time and resources in an uninteresting product and company-focused diatribe.
    SoftwareReviews’ Approach

    By applying the SoftwareReviews’ message mapping architecture, clients will be able to:

    • Quickly diagnose the current state of their content marketing effectiveness compared to industry metrics.
    • Compare their current messaging approach against the key elements of the Message Map Architecture.
    • Create more compelling and relevant content that aligns with a buyer’s needs and journey.
    • Shrink marketing and sales cycles.
    • Increase the pace of content production.
    Marketers that activate the SoftwareReviews message mapping architecture will be able to crack the code on the formula for improving open and click-through rates.

    SoftwareReviews Insight

    Marketing content that identifies the benefit of the product, along with a deep understanding of the buyer pain points, desired value, and benefit proof-points, is a key driver in delivering value to a prospect, thereby increasing marketing metrics such as open rates, time on site, page views, and click-through rates.

    Your Challenge

    65% of marketers find it challenging to produce engaging content.

    Globally, B2B SaaS marketers without the ability to consistently produce and activate quality content will experience:

    • High website bounce rates and low time on site
    • Low page views
    • A low percentage of return visitors
    • Low conversions
    • Low open and click-through rates on email campaigns

    A staggering 60% of marketers find it hard to produce high-quality content consistently and 62% don’t know how to measure the ROI of their campaigns according to OptinMonster.

    SaaS marketers have an even more difficult job due to the technical nature of content production. Without an easy content development strategy, marketers have an insurmountable task of continually creating interesting content for an audience they don’t understand.


    Over 64% of marketers want to learn how to build a better content
    (Source: OptinMonster, 2021)

    Benchmark your content marketing

    Do your content marketing metrics meet the industry-standard benchmarks for the software industry?
    Visualization of industry benchmarks for 'Bounce Rate', 'Organic CTR', 'Pages/Session', 'Average Session Duration', '% of New Sessions', 'Email Open Rate', 'Email CTR', and 'Sales Cycle Length (Days)' with sources linked below.
    GrowRevenue, MarketingSherpa, Google Analytics, FirstPageSage, Google Analytics, HubSpot
    • Leaders will measure content marketing performance against these industry benchmarks.
    • If your content performance falls below these benchmarks, your content architecture may be missing the mark with prospective buyers.

    Common flaws in content messaging

    Why do marketers have a hard time consistently producing messaging that engages the buyer?

    Mistake #1

    Myopic Focus on Company and Product

    Content suffers a low ROI due to a myopic focus on the company and the product. This self-focused content fails to engage prospects and move them through the funnel.

    Mistake #2

    WIIFM Question Unanswered

    Content never answers the fundamental “What’s in it for me?” question due to a lack of true buyer understanding. This leads to an inability to communicate the value proposition to the prospect.

    Mistake #3

    Inability to Select the Right Content Format

    Marketers often guess what kind of content their buyers prefer without any real understanding or research behind what buyers would actually want to consume.

    Leaders Will Avoid the “Big Three” Pitfalls
    • While outdated content, poor content organization on your website, and poor SEO are additional strategic factors (outside the scope of this research), poor messaging structure will doom your content marketing strategy.
    • Leaders will be vigilant to diagnose current messaging structure and avoid:
      1. Making messaging all about you and your company.
      2. Failing to describe what’s in it for your prospects.
      3. Often guessing at what approach to use when structuring your messaging.

    Implications of poor content

    Without quality content, the sales and marketing cycles elongate and content marketing metrics suffer.
    • Lost sales: Research shows that B2B buyers are 57-70% done with their buying research before they ever contact sales.(Worldwide Business Research, 2022)
    • The buyer journey is increasingly digital: Research shows that 67% of the buyer's journey is now done digitally.(Worldwide Business Research, 2022)
    • Wasted time: In a Moz study of 750,000 pieces of content, 50% had zero backlinks, indicating that no one felt these assets were interesting enough to reference or share. (Moz, 2015)
    • Wasted money: SaaS companies spend $342,000 to $1,080,000 per year (or more) on content marketing. (Zenpost, 2022) The wrong content will deliver a poor ROI.

    50% — Half of the content produced has no backlinks. (Source: Moz, 2015)

    Content matters more than ever since 67% of the buyer's journey is now done digitally. (Source: Worldwide Business Research, 2022)

    Benefits of good content

    A content mapping approach lets content marketers:
    • Create highly personalized content. Content mapping helps marketers to create highly targeted content at every stage of the buyer’s journey, helping to nurture leads and prospects toward a purchase decision.
    • Describe “What’s in it for me?” to buyers. Remember that you aren’t your customer. Good content quickly answers the question “What’s in it for me?” (WIIFM) developed from the findings of the buyer persona. WIIFM-focused content engages a prospect within seven seconds.
    • Increase marketing ROI. Content marketing generates leads three times greater than traditional marketing (Patel, 2016).
    • Influence prospects. Investing in a new SaaS product isn’t something buyers do every day. In a new situation, people will often look to others to understand what they should do. Good content uses the principles of authority and social proof to build the core message of WIIFM. Authority can be conferred with awards and accolades, whereas social proof is given through testimonials, case studies, and data.
    • Build competitive advantage. Increase competitive advantage by providing content that aligns with the ideal client profile. Fifty-two percent of buyers said they were more likely to buy from a vendor after reading its content (1827 Marketing, 2022).
    Avoid value claiming. Leaders will use client testimonials as proof points because buyers believe peers more than they believe you.

    “… Since 95 percent of the people are imitators and only 5 percent initiators, people are persuaded more by the actions of others than by any proof we can offer. (Robert Cialdini, Influence: The Psychology of Persuasion)

    Full slide: 'Message Map Architecture'.

    Full slide: 'Message Map Template' with field descriptions and notes.

    Full slide: 'Message Map Template' with field descriptions, no notes.

    Full slide: 'Message Map Template' with blank fields.

    Full slide: 'Message Map Template' with 'Website Example segment.com' filled in fields.

    Full slide: 'Website Example segment.com' the website as it appears online with labels on the locations of elements of the message map.

    Full slide: 'Website Example segment.com' the website as it appears online with labels on the locations of elements of the message map.

    Full slide: 'Website Example segment.com' the website as it appears online with labels on the locations of elements of the message map.

    Full slide: 'Website Example segment.com' the website as it appears online with labels on the locations of elements of the message map.

    Email & Social Post Example

    Use the message mapping architecture to create other types of content.

    Examples of emails and social media posts as they appear online with labels on the locations of elements of the message map.

    Insight Summary

    Create Content That Matters

    Marketing content that identifies the benefit of the product along with a deep understanding of the buyer pain points, desired value, and benefit proof-points is a key driver in delivering value to a prospect, thereby increasing marketing metrics such as open rates, time on site, page views, and click-through rates.

    What’s in It for Me?

    Most content has a focus on the product and the company. Content that lacks a true and deep understanding of the buyer suffers low engagement and low conversions. Our research shows that all content must answer ”What’s in it for me?” for a prospect.

    Social Proof & Authority

    Buyers that are faced with a new and unusual buying experience (such as purchasing SaaS) look at what others say about the product (social proof) and what experts say about the product (authority) to make buying decisions.

    Scarcity & Loss Framing

    Research shows that scarcity is a strong principle of influence that can be used in marketing messages. Loss framing is a variation of scarcity and can be used by outlining what a buyer will lose instead of what will be gained.

    Unify the Experience

    Use your message map to structure all customer-facing content across Sales, Product, and Marketing and create a unified and consistent experience across all touchpoints.

    Close the Gap

    SaaS marketers often find the gap between product and company-focused content and buyer-focused content to be so insurmountable that they never manage to overcome it without a framework like message mapping.

    Related SoftwareReviews Research

    Sample of 'Create a Buyer Persona and Journey' blueprint.

    Create a Buyer Persona and Journey

    Make it easier to market, sell, and achieve product-market fit with deeper buyer understanding.
    • Reduce time and treasure wasted chasing the wrong prospects.
    • Improve product-market fit.
    • Increase open and click-through rates in your lead gen engine.
    • Perform more effective sales discovery and increase eventual win rates.
    Sample of 'Diagnose Brand Health to Improve Business Growth' blueprint.

    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.
    • Importance of brand is recognized, endorsed, and prioritized.
    • Support and resources allocated.
    • All relevant data and information collected in one place.
    • Ability to make data-driven recommendations and decisions on how to improve.
    Sample of 'Build a More Effective Go-to-Market Strategy' blueprint.

    Build a More Effective Go-to-Market Strategy

    Creating a compelling Go-to-Market strategy, and keeping it current, is a critical software company function – as important as financial strategy, sales operations, and even corporate business development – given its huge impact on the many drivers of sustainable growth.
    • Align stakeholders on a common vision and execution plan.
    • Build a foundation of buyer and competitive understanding.
    • Deliver a team-aligned launch plan that enables commercial success.

    Bibliography

    Arakelyan, Artash. “How SaaS Companies Increase Their ROI With Content Marketing.” Clutch.co, 27 July 2018. Accessed July 2022.

    Bailyn, Evan. “Average Session Duration: Industry Benchmarks.” FirstPageSage, 16 March 2022. Accessed July 2022.

    Burstein, Daniel. “Marketing Research Chart: Average clickthrough rates by industry.” MarketingSherpa, 1 April 2014. Accessed July 2022.

    Cahoon, Sam. “Email Open Rates By Industry (& Other Top Email Benchmarks).” HubSpot, 10 June 2021. Accessed July 2022.

    Cialdini, Robert. Influence: Science and Practice. 5th ed. Pearson, 29 July 2008. Print.

    Cialdini, Robert. Influence: The Psychology of Persuasion. Revised ed. Harper Business, 26 Dec. 2006. Print.

    Content Marketing—Statistics, Evidence and Trends.” 1827 Marketing, 7 Jan. 2022. Accessed July 2022.

    Devaney, Erik. “Content Mapping 101: The Template You Need to Personalize Your Marketing.” HubSpot, 21 April 2022. Accessed July 2022.

    Hiscox Business Insurance. “Growing Your Business--and Protecting It Every Step of the Way.” Inc.com. 25 April 2022. Accessed July 2022.

    Hurley Hall, Sharon. “85 Content Marketing Statistics To Make You A Marketing Genius.” OptinMonster, 14 Jan. 2021. Accessed July 2022.

    Patel, Neil. “38 Content Marketing Stats That Every Marketer Needs to Know.” NeilPatel.com, 21 Jan. 2016. Web.

    Prater, Meg. “SaaS Sales: 7 Tips on Selling Software from a Top SaaS Company.” HubSpot, 9 June 2021. Web.

    Polykoff, Dave. “20 SaaS Content Marketing Statistics That Lead to MRR Growth in 2022.” Zenpost blog, 22 July 2022. Web.

    Rayson, Steve. “Content, Shares, and Links: Insights from Analyzing 1 Million Articles.” Moz, 8 Sept. 2015. Accessed July 2022.

    “SaaS Content Marketing: How to Measure Your SaaS Content’s Performance.” Ken Moo, 9 June 2022. Accessed July 2022.

    Taylor Gregory, Emily. “Content marketing challenges and how to overcome them.” Longitude, 14 June 2022. Accessed July 2022.

    Visitors Benchmarking Channels. Google Analytics, 2022. Accessed July 2022.

    WBR Insights. “Here's How the Relationship Between B2B Buying, Content, and Sales Reps Has Changed.” Worldwide Business Research, 2022. Accessed July 2022.

    “What’s a good bounce rate? (Here’s the average bounce rate for websites).” GrowRevenue.io, 24 Feb. 2020. Accessed July 2022.

    Create an Agile-Friendly Project Gating and Governance Approach

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    • Parent Category Name: Development
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    • Organizations often apply gating and governance to IT projects to ensure resources are being used efficiently and effectively.
    • Agile project teams often complain that traditional project gating and governance interfere with their ability to delivery because traditional gating and governance were designed for Waterfall delivery methods.

    Our Advice

    Critical Insight

    Imposing a traditional gating and governance approach on an Agile project can eliminate the advantages that Agile delivery methods offer. Make sure to rework your traditional project gating and governance approach to be Agile friendly.

    Impact and Result

    • Create a project gating and governance approach that is Agile friendly and helps your organization realize the most benefit from its Agile transformation.
    • Oversee your Agile projects with confidence by adjusting the level of support and oversight they receive based on their Agilometer score.
    • Define a revised set of project gating artifacts that support Agile delivery methods.
    • Adopt a “trust but verify” approach to Agile project gating that will reduce risk and help ensure value delivery.

    Create an Agile-Friendly Project Gating and Governance Approach Research & Tools

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

    1. Create an Agile-Friendly Project Gating and Governance Approach Deck – A step-by-step guide to creating an Agile-friendly project gating and governance approach that will support Agile delivery methods in your organization.

    This deck is a guide to creating your own Agile-friendly project gating and governance approach using Info-Tech’s Agile Gating Framework.

    • Create an Agile-Friendly Project Gating and Governance Approach – Phases 1-3

    2. Your Gates 3 and 3A Checklists – The Gates 3 and 3A Checklists are used to determine when a project is ready to enter and exit the Risk Reduction & Value Confirmation phase.

    Modify Info-Tech’s Gates 3 and 3A Checklists to meet your organization’s needs, and then use them to determine when Agile projects are ready to enter and exit the RRVC phase.

    • Gates 3 and 3A Checklists

    3. Your Agilometer – The Agilometer is used to determine a project’s readiness to use an Agile delivery method.

    Modify Info-Tech’s Agilometer to meet your organization’s needs, and then use it to determine the level of support and oversight the project will need.

    • Agilometer

    4. Your Agile Project Status Report – An Agile Status Report will be used to monitor project progress.

    Modify Info-Tech’s Agile Project Status Report to meet your organization’s needs, and then use it to monitor in-flight Agile projects.

    • Agile Project Status Report

    5. Project Burndown Chart – A tool to let you monitor project burndown over time.

    Use Info-Tech’s Project Burndown Chart to monitor the progress of your in-flight Agile projects.

    • Project Burndown Chart

    6. Traditional to Agile Gating Artifact Mapping – A tool to help you rework your project gating artifacts to be Agile-friendly.

    Use Info-Tech’s Traditional to Agile Gating Artifact Mapping tool to modify your gating artifacts for Agile projects.

    • Traditional to Agile Gating Artifact Mapping
    [infographic]

    Further reading

    Create an Agile-Friendly Project Gating and Governance Approach

    Use Info-Tech’s Agile Gating Framework as a guide to gating your Agile projects using a “trust but verify” approach.

    Table of Contents

    Analyst Perspective

    Executive Summary

    Phase 1: Establish Your Gating and Governance Purpose

    Phase 2: Understand and Adapt Info-Tech’s Agile Gating Framework

    Phase 3: Complete Your Agile Gating Framework

    Where Do I Go Next?

    Bibliography

    Facilitator Slides

    Analyst Perspective

    Make your gating and governance process Agile friendly by following a “trust but verify” approach

    Most project gating and governance approaches are designed for traditional (Waterfall) delivery methods. However, Agile delivery methods call for a different way of working that doesn’t align well with these approaches.

    Applying traditional project gating and governance to Agile projects is like trying to fit a square peg in a round hole. Not only will it make Agile project delivery less efficient, but in the extreme, it can lead to outright project failure and even derail your organization’s Agile transformation.

    If you want Agile to successfully take root in your organization, be prepared to rethink your current gating and governance practices. This document presents a framework that you can use to rework your approach to provide both effective oversight and support for your Agile projects.

    Photo of Alex Ciraco, Principal Research Director, Application Delivery and Management, Info-Tech Research Group. Alex Ciraco
    Principal Research Director,
    Application Delivery and Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge
    • Many government organizations are adopting Agile project delivery methods because they have proven to be more effective than traditional delivery approaches at responding to today’s fast pace of change.
    • Government organizations have an obligation to govern projects to ensure effective use of public resources, regardless of the delivery method being used.
    Common Obstacles
    • Most government gating and governance frameworks were designed around traditional (often called “Waterfall”) delivery methods.
    • Agile and Waterfall work in completely different ways, so imposing traditional gating and governance frameworks on Agile projects will stifle progress and can even lead to project failure.
    • Government organizations must adjust their gating and governance frameworks to accommodate Agile delivery methods.
    Info-Tech’s Approach
    • Begin by understanding the fundamental purpose of project gating and governance.
    • Next, understand the major differences between Agile and Waterfall delivery methods.
    • Then, armed with this knowledge, use Info-Tech’s Agile Gating Framework to redefine your gating and governance approach to be Agile friendly.
    Info-Tech Insight

    Imposing a traditional governance approach on an Agile project can eliminate the advantages that Agile delivery methods offer. Make sure to rework your project gating and governance approach to be Agile friendly.

    Info-Tech’s methodology for Creating an Agile-Friendly Project Gating and Governance Approach

    1. Establish Your Gating and Governance Purpose 2. Understand and Adapt Info-Tech’s Agile Gating Framework 3. Complete your Agile Gating Framework
    Phase Steps

    1.1 Understand How We Gate and Govern Projects

    1.2 Compare Traditional to Agile Delivery

    1.3 Realize What Traditional Gating Looks Like and Why

    2.1 Understand How Agile Manages Risk and Ensures Value Delivery

    2.2 Introducing Info-Tech’s Agile Gating Framework

    2.3 Create Your Agilometer

    2.4 Create an Agile-Friendly Project Status Report

    2.5 Select Your Agile Health Check Tool

    3.1 Map Your Traditional Gating Artifacts to Agile Delivery

    3.2 Determine Your Now, Next, Later Roadmap for Implementation

    Phase Outcomes
    1. Your gating/governance purpose statement
    2. A fundamental understanding of the difference between traditional and Agile delivery methods.
    1. An understanding of Info-Tech’s Agile Gating Framework
    2. Your Gates 3 and 3A checklists
    3. Your Agilometer tool
    4. Your Agile project status report template
    5. Your Agile health check tool
    1. Artifact map for your Agile gating framework
    2. Roadmap for Agile gating implementation

    Key Deliverables

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

    Agilometer Tool

    Create your customized Agilometer tool to determine project support and oversight needs.
    Sample of the 'Agilometer Tool' deliverable.

    Gates 3 and 3A Checklists

    Create your customized checklists for projects at Gates 3 and 3A.
    Sample of the 'Gates 3 and 3A Checklists' deliverable.

    Agile-Friendly Project Status Report

    Create your Agile-friendly project status report to monitor progress.
    Sample of the 'Agile-Friendly Project Status Report' deliverable.

    Artifact Mapping Tool

    Map your traditional gating artifacts to their Agile replacements.
    Sample of the 'Artifact Mapping Tool' deliverable.

    Create an Agile-Friendly Project Gating and Governance Approach

    Phase 1

    Establish your gating and governance purpose

    Phase 1

    1.1 Understand How We Gate and Govern Projects

    1.2 Compare Traditional to Agile Delivery

    1.3 Realize What Traditional Gating Looks Like And Why

    Phase 2

    2.1 Understand How Agile Manages Risk and Ensures Value Delivery

    2.2 Introducing Info-Tech’s Agile Gating Framework

    2.3 Create Your Agilometer

    2.4 Create Your Agile-Friendly Project Status Report

    2.5 Select Your Agile Health Check Tool

    Phase 3

    3.1 Map Your Traditional Gating Artifacts to Agile Delivery

    3.2 Determine Your Now, Next, Later Roadmap for Implementation

    This phase will walk you through the following activities:

    • Understand why gating and governance are so important to your organization.
    • Compare and contrast traditional to Agile delivery.
    • Identify what form traditional gating takes in your organization.

    This phase involves the following participants:

    • PMO/Gating Body
    • Delivery Managers
    • Delivery Teams
    • Other Interested Parties

    Agile gating–related facts and figures

    73% of organizations created their project gating framework before adopting or considering Agile delivery practices. (Athens Journal of Technology and Engineering)

    71% of survey respondents felt an Agile-friendly gating approach improves both productivity and product quality. (Athens Journal of Technology and Engineering)

    Moving to an Agile-friendly gating approach has many benefits:
    • Faster response to change
    • Improved productivity
    • Higher team morale
    • Better product quality
    • Faster releases
    (Journal of Product Innovation Management)

    Traditional gating approaches can undermine an Agile project

    • Most existing gating and governance frameworks (often referred to as phase-gate) impose requirements on projects that are anti-patterns to an Agile delivery approach
    • For example, any gating approach that requires a project to deliver a detailed requirements document before coding can begin will make it difficult or impossible for the project to use an Agile delivery method.
    • The same can be said for other common phase-gate requirements including:
      • Imposing a formal (and onerous) change control process on project requirements.
      • Requiring a detailed design document and/or detailed user acceptance test plan at the beginning of the project.
      • Asking the project to produce a detailed project plan.
    (DZone)
    Don’t make the mistake of asking an Agile project to follow a traditional phase-gate approach to project delivery!

    Before reworking your gating approach, you need to consider two important questions

    Answering these questions will help guide your new gating process to both be Agile friendly and meet your organization’s needs

    1. What is the fundamental purpose of gating? By examining the fundamental purpose of gating, you will be better able to adjust your approach to achieve the desired outcomes in an Agile context.
    2. How does Agile delivery differ from traditional? By understanding how Agile delivery differs from traditional, you will be better able to adjust your gating approach to support Agile delivery methods.

    Stock image of speech bubbles hanging on string with a question mark and lightbulb drawn on them.

    Establish an Effective Data Protection Plan

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    • Parent Category Name: Storage & Backup Optimization
    • Parent Category Link: /storage-and-backup-optimization
    • Business requirements can be vague. Not knowing the business needs often results in overspending and overexposure to liability through data hoarding.
    • Backup options are abundant. Disk, tape, or cloud? Each has drawbacks, efficiencies, and cost factors that should be considered.
    • Backup infrastructure is never greenfield. Any organization with a history has been doing backup. Existing software was likely determined by past choices and architecture.

    Our Advice

    Critical Insight

    • Don’t let failure be your metric.
      The past is not an indication of future performance! Quantify the cost of your data being unavailable to demonstrate value to the business.
    • Stop offloading backup to your most junior staff.
      Data protection should not exist in isolation. Get key leadership involved to ensure you can meet organizational requirements.
    • A lot of data is useless. Neglecting to properly tag and classify data will lead to a costly data protection solution that protects redundant, useless, or outdated data

    Impact and Result

    • Determine the current state of your data protection strategy by identifying the pains and gains of the solution and create a business-facing diagram to present to relevant stakeholders.
    • Quantify the value of data to the business to properly understand the requirements for data protection through a business impact analysis.
    • Identify the attributes and necessary requirements for your data tiers to procure a fit-for-purpose solution.

    Establish an Effective Data Protection Plan Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand why the business should be involved in your data protection plan, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

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

    1. Define the current state of your data protection plan

    Define the current state of your data protection practices by documenting the backup process and identifying problems and opportunities for the desired state.

    • Establish an Effective Data Protection Plan – Phase 1: Define the Current State of Your Data Protection Plan
    • Data Protection Value Proposition Canvas Template

    2. Conduct a business impact analysis to understand requirements for restoring data

    Understand the business priorities.

    • Establish an Effective Data Protection Plan – Phase 2: Conduct a Business Impact Analysis to Understand Requirements for Restoring Data
    • DRP Business Impact Analysis Tool
    • Legacy DRP Business Impact Analysis Tool
    • Data Protection Recovery Workflow

    3. Propose the future state of your data protection plan

    Determine the desired state.

    • Establish an Effective Data Protection Plan – Phase 3: Propose the Future State of Your Data Protection Plan

    4. Establish proper governance for your data protection plan

    Explore the component of governance required.

    • Establish an Effective Data Protection Plan – Phase 4: Establish Proper Governance for Your Data Protection Plan
    • Data Protection Proposal Template
    [infographic]

    Take Control of Cloud Costs on Microsoft Azure

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    • Parent Category Name: Cloud Strategy
    • Parent Category Link: /cloud-strategy
    • Traditional IT budgeting and procurement processes don't work for public cloud services.
    • The self-service nature of the cloud means that often the people provisioning cloud resources aren't accountable for the cost of those resources.
    • Without centralized control or oversight, organizations can quickly end up with massive Azure bills that exceed their IT salary cost.

    Our Advice

    Critical Insight

    • Most engineers care more about speed of feature delivery and reliability of the system than they do about cost.
    • Often there are no consequences for overarchitecting or overspending on Azure.
    • Many organizations lack sufficient visibility into their Azure spend, making it impossible to establish accountability and controls.

    Impact and Result

    • Define roles and responsibilities.
    • Establish visibility.
    • Develop processes, procedures, and policies.

    Take Control of Cloud Costs on Microsoft Azure Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should take control of cloud costs, 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. Build a cost accountability framework

    Assess your current state, define your cost allocation model, and define roles and responsibilities.

    • Cloud Cost Management Worksheet
    • Cloud Cost Management Capability Assessment
    • Cloud Cost Management Policy
    • Cloud Cost Glossary of Terms

    2. Establish visibility

    Define dashboards and reports, and document account structure and tagging requirements.

    • Service Cost Cheat Sheet for Azure

    3. Define processes and procedures

    Establish governance for tagging and cost control, define process for right-sizing, and define process for purchasing commitment discounts.

    • Right-Sizing Workflow (Visio)
    • Right-Sizing Workflow (PDF)
    • Commitment Purchasing Workflow (Visio)
    • Commitment Purchasing Workflow (PDF)

    4. Build an implementation plan

    Document process interactions, establish program KPIs, and build implementation roadmap and communication plan.

    • Cloud Cost Management Task List
    [infographic]

    Workshop: Take Control of Cloud Costs on Microsoft Azure

    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 a Cost Accountability Framework

    The Purpose

    Establish clear lines of accountability and document roles & responsibilities to effectively manage cloud costs.

    Key Benefits Achieved

    Understanding of key areas to focus on to improve cloud cost management capabilities.

    Activities

    1.1 Assess current state

    1.2 Determine cloud cost model

    1.3 Define roles & responsibilities

    Outputs

    Cloud cost management capability assessment

    Cloud cost model

    Roles & responsibilities

    2 Establish Visibility

    The Purpose

    Establish visibility into cloud costs and drivers of those costs.

    Key Benefits Achieved

    Better understanding of what is driving costs and how to keep them in check.

    Activities

    2.1 Develop architectural patterns

    2.2 Define dashboards and reports

    2.3 Define account structure

    2.4 Document tagging requirements

    Outputs

    Architectural patterns; service cost cheat sheet

    Dashboards and reports

    Account structure

    Tagging scheme

    3 Define Processes & Procedures

    The Purpose

    Develop processes, procedures, and policies to control cloud costs.

    Key Benefits Achieved

    Improved capability of reducing costs.

    Documented processes & procedures for continuous improvement.

    Activities

    3.1 Establish governance for tagging

    3.2 Establish governance for costs

    3.3 Define right-sizing process

    3.4 Define purchasing process

    3.5 Define notification and alerts

    Outputs

    Tagging policy

    Cost control policy

    Right-sizing process

    Commitment purchasing process

    Notifications and alerts

    4 Build an Implementation Plan

    The Purpose

    Document next steps to implement & improve cloud cost management program.

    Key Benefits Achieved

    Concrete roadmap to stand up and/or improve the cloud cost management program.

    Activities

    4.1 Document process interaction changes

    4.2 Define cloud cost program KPIs

    4.3 Build implementation roadmap

    4.4 Build communication plan

    Outputs

    Changes to process interactions

    Cloud cost program KPIs

    Implementation roadmap

    Communication plan

    The First 100 Days as CISO

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    • 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]

    Select a Sourcing Partner for Your Development Team

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    • You have identified that a change to your sourcing strategy is required, based on market and company factors.
    • You are ready to select a new sourcing partner to drive innovation, time to market, increased quality, and improved financial performance.
    • Taking on a new partner is a significant investment and risk, and you must get it right the first time.
    • You need to make a change now to prevent losing clients and falling further behind your performance targets and your market.

    Our Advice

    Critical Insight

    Selecting a sourcing partner is a function of matching complex factors to your own firm. It is not a simple RFP exercise; it requires significant introspection, proactive planning, and in-depth investigation of potential partners to choose the right fit.

    Impact and Result

    Choosing the right sourcing partner is a four-step process:

    1. Assess your companies' skills and processes in the key areas of risk to sourcing initiatives.
    2. Based on the current situation, define a profile for the matching sourcing partner.
    3. Seek matching partners from the market, either in terms of vendor partners or in terms of sourcing locations.
    4. Based on the choice of partner, build a plan to implement the partnership, define metrics to measure success, and a process to monitor.

    Select a Sourcing Partner for Your Development Team Research & Tools

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

    1. Select a Sourcing Partner for Your Development Team Storyboard – Use this presentation to select a partner to best fit your sourcing needs and deliver long-term value.

    This project helps select a partner for sourcing of your development team so that you can realize the benefits from changing your sourcing strategy.

    • Select a Sourcing Partner for Your Development Team Storyboard

    2. Select a Sourcing Partner for Your Development Team Presentation Template – Use this template to build a presentation to detail your decision on a sourcing partner for your development team.

    This presentation template is designed to capture the results from the exercises within the storyboard and allow users to build a presentation to leadership showing how selection was done.

    • Select a Sourcing Partner for Your Development Team Presentation Template

    3. Select a Sourcing Partner for Your Development Team Presentation Example – Use this as a completed example of the template.

    This presentation template portrays what the completed template looks like by showing sample data in all tables. It allows members to see how each exercise leads to the final selection of a partner.

    • Select a Sourcing Partner for Your Development Team Example Template
    [infographic]

    Further reading

    Select a Sourcing Partner for Your Application Development Team

    Choose the right partner to enable your firm to maximize the value realized from your sourcing strategy.

    Analyst Perspective

    Selecting the right partner for your sourcing needs is no longer a cost-based exercise. Driving long-term value comes from selecting the partner who best matches your firm on a wide swath of factors and fits your needs like a glove.

    Sourcing in the past dealt with a different kind of conversation involving two key questions:

    Where will the work be done?

    How much will it cost?

    How people think about sourcing has changed significantly. People are focused on gaining a partner, and not just a vendor to execute a single transaction. They will add skills your team lacks, and an ability to adapt to your changing needs, all while ensuring you operate within any constraints based on your business.

    Selecting a sourcing partner is a matching exercise that requires you to look deep into yourself, understand key factors about your firm, and then seek the partner who best meets your profile.

    The image contains a picture of Dr. Suneel Ghei.

    Dr. Suneel Ghei
    Principal Research Director, Application Development
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    • You have identified that a change to your sourcing strategy is required based on market and company factors.
    • You are ready to select a new sourcing partner to drive innovation, time to market, increased quality, and improve financial performance.
    • Taking on a new partner is a significant investment and risk, and you must get it right the first time.
    • You need to make a change now to avoid falling further behind your performance targets and your market, and losing clients.

    Almost half of all sourcing initiatives do not realize the projected savings, and the biggest reason is the choice of partner.

    The market for Application Development partners has become more diverse, increasing choice and the risk of making a costly mistake by choosing the wrong partner.

    Firms struggle with how best to support the sourcing partner and allocate resources with the right skills to maximize success, increasing the cost and time to implement, and limiting benefits.

    Making the wrong choice means inferior products, and higher costs and losing both clients and reputation.

    • Choosing the right sourcing partner is a four-step process:
    1. Assess your company's skills and processes in the key areas of risk to sourcing initiatives.
    2. Based on the current situation, define a profile for the matching sourcing partner.
    3. Seek matching partners from the market, either in terms of vendor partners or in terms of sourcing locations.
    4. Based on your choice of partner, build a plan to implement the partnership, and define metrics to measure success and a process to monitor.

    Info-Tech Insight

    Successfully selecting a sourcing partner is not a simple RFP exercise to choose the lowest cost. It is a complex process of introspection, detailed examination of partners and locations, and matching the fit. It requires you to seek a partner that is the Yin to your Yang, and failure is not an option.

    You need a new source for development resources

    You are facing immediate challenges that require a new approach to development resourcing.

    • Your firm is under fire; you are facing pressures financially from clients and your competitors.
    • Your pace of innovation and talent sourcing is too slow and too limiting.
    • Your competition is moving faster and your clients are considering their options.
    • Revenues and costs of development are trending in the wrong direction.
    • You need to act now to avoid spiraling further.

    Given how critical our applications are to the business and our clients, there is no room for error in choosing our partner.

    A study of 121 firms outsourcing various processes found that 50% of those surveyed saw no gains from the outsourcing arrangement, so it is critical to make the right choice the first time.

    Source: Zhang et al

    Big challenges await you on the journey

    The road to improving sourcing has many potholes.

    • In a study of 121 firms who moved development offshore, almost 50% of all outsourcing and offshoring initiatives do not achieve the desired results.
    • In another study focused on large corporations, it was shown that 70% of respondents saw negative outcomes from offshoring development.
    • Globalization of IT Services and the ability to work from anywhere have contributed to a significant increase in the number of development firms to choose from.
    • Choosing and implementing a new partner is costly, and the cost of choosing the wrong partner and then trying to correct your course is significant in dollars and reputation:
      • Costs to find a new partner and transition
      • Lost revenue due to product issues
      • Loss of brand and reputation due to poor choice
    • The wrong choice can also cost you in terms of your own resources, increasing the risk of losing more knowledge and skills.

    A survey of 25 large corporate firms that outsourced development offshore found that 70% of them had negative outcomes.

    (Source: University of Oregon Applied Information Management, 2019)

    Info-Tech’s approach

    Selecting the right partner is a matching exercise.

    Selecting the right partner is a complex exercise with many factors

    1. Look inward. Assess your culture, your skills, and your needs.
    • Market
    • People
    • Culture
    • Technical aspects
  • Create a profile for the perfect partner to fit your firm.
    • Sourcing Strategy
    • Priorities
    • Profile
  • Find the partner that best fits your needs
    • Define RFx
    • Target Partners
    • Evaluate
  • Implement the partner and put in metrics and process to manage.
    • Contract Partner
    • Develop Goals
    • Create Process and Metrics

    The Info-Tech difference:

    1. Assess your own organization’s characteristics and capabilities in four key areas.
    2. Based on these characteristics and the sourcing strategy you are seeking to implement, build a profile for your perfect partner.
    3. Define an RFx and assessment matrix to survey the market and select the best partner.
    4. Implement the partner with process and controls to manage the relationship, built collaboratively and in place day 1.

    Insight summary

    Overarching insight

    Successfully selecting a sourcing partner is not a simple RFP exercise to choose the lowest cost. It is a complex process of introspection, detailed examination of partners and locations, and matching the fit. It requires you to seek a partner that is the Yin to your Yang, and failure is not an option.

    Phase 1 insight

    Fitting each of these pieces to the right partner is key to building a long-term relationship of value.

    Selecting a partner requires you to look at your firm in depth from a business, technical, and organizational culture perspective.

    Phase 2 insight

    The factors we have defined serve to build us a profile for the ideal partner to engage in sourcing our development team. This profile will lead us to be able to define our RFP / RFI and assess respondents.

    Phase 3/4 insight

    Implement the relationship the same way you want it to work, as one team. Work together on contract mechanism, shared goals, metrics, and performance measurement. By making this transparent you hasten the development of a joint team, which will lead to long-term success.

    Tactical insight

    Ensure you assess not just where you are but where you are going, in choosing a partner. For example, you must consider future markets you might enter when choosing the right sourcing, or outsourcing location to maintain compliance.

    Tactical insight

    Sourcing is not a replacement for your full team. Skills must be maintained in house as well, so the partner must be willing to work with the in-house team to share knowledge and collaborate on deliverables.

    Addressing the myth – Single country offshoring or outsourcing

    Research shows that a multi-country approach has a higher chance of success.

    • Research shows that firms trying their own captive development centers fail 20% of the time. ( Journal of Information Technology, 2008)
    • Further, the overall cost of ownership for an offshore center has shown to be significantly higher than the cost of outsourcing, as the offshore center requires more internal management and leadership.
    • Research shows that offshoring requires the offshore location to also house business team members to allow key relationships to be built and ensure more access to expertise. (Arxiv, 2021)
    • Given the specificity of employment laws, cultural differences, and leadership needs, it is very beneficial to have a Corporate HR presence in countries where an offshore center is being set up. (Arxiv, 2021)
    • Lastly, given the changing climate on security, geopolitical changes, and economic factors, our research with service providers and corporate clients shows a need to have more diversity in provider location than a single center can provide.

    Info-Tech Insight

    Long-term success of sourcing requires more than a development center. It requires a location that houses business and HR staff to enable the new development team to learn and succeed.

    Addressing the myth – Outsourcing is a simple RFP for skills and lowest cost

    Success in outsourcing is an exercise in finding a match based on complex factors.

    • In the past, outsourcing was a simple RFP exercise to find the cheapest country with the skills.
    • Our research shows this is no longer true; the decision is now more complex.
    • Competition has driven costs higher, while time business integration and security constraints have served to limit the markets available.
    • Company culture fit is key to the ability to work as one team, which research shows is a key element in delivery of long-term value. (University of Oregon, 2019).
    • These are some of the many factors that need to be considered as you choose your outsourcing partner.
    • The right decision is to find the vendor that best matches the current state of your culture, meets your market constraints, and will allow for best integration to your team – it's not about cheapest or pure skills. (IEEE Access, 2020)

    Info-Tech Insight

    Finding the right outsourcing vendor is an exercise in knowing yourself and then finding the best match to align with your key traits. It's not just costs and skills, but the partner who best matches with your ability to mitigate the risks of outsourcing.

    Phase 1

    Look inward to gain insight on key factors

    Introspection

    1.1 Assess your market factors

    1.2 Determine your people factors

    1.3 Review your current culture

    1.4 Document your technical factors

    Profiling

    2.1 Recall your sourcing strategy

    2.2 Prioritize your company factors

    2.3 Create target profile

    Partner selection

    3.1 Review your RFx

    3.2 Identify target vendors

    3.3 Evaluate vendor

    responses

    Implementation

    4.1 Engage partner to choose contract mechanism

    4.2 Engage partner team to define goals

    4.3 Choose your success

    metrics

    This phase will walk you through assessing and documenting the key driving factors about your firm and the current situation.

    By defining these factors, you will be able to apply this information in the matching process to select the best fit in a partner.

    This phase involves the following participants:

    Line of Business leaders

    Technology leaders

    Key criteria to assess your firm

    Research shows firms must assess themselves in different areas.

    Market factors

    • Who are your clients and your competitors, and what legal constraints do you face?

    People / Process factors

    • What employee skills are you seeking, what is your maturity in product management and stakeholder engagement, and what languages are spoken most predominantly?

    Cultural factors

    • What is your culture around communications, collaboration, change management, and conflict resolution?

    Technical factors

    • What is your current / future technical platform, and what is the maturity of your applications?

    Info-Tech Best Practice

    When assessing these areas, consider where you are today and where you want to go tomorrow, as choosing a partner is a long-term endeavor.

    Step 1.1

    Assess your market factors

    Activities

    1.1.1 Review your client list and future projections to determine your market factors.

    1.1.2 Review your competitive analysis to determine your competitive factors

    This step involves the following participants:

    Business leaders

    Product Owners

    Technology leaders

    Outcomes of this step

    Details of key market factors that will drive the selection of the right partner.

    Market factors

    The Market has a lot to say about the best match for your application development partner.

    Research in the space has defined key market-based factors that are critical when selecting a partner.

    1. Market sectors you service or plan to service – This is critical, as many market sectors have constraints on where their data can be accessed or stored. These restrictions also change over time, so they must be consistently reviewed.
    • E.g. Canadian government data must be stored and only accessed in Canada.
    • E.g. US Government contracts require service providers to avoid certain countries.
  • Your competitors – Your competitors can often seize on differences and turn them to differentiators; for example, offshoring to certain countries can be played up as a risk by a competitor who does all their work in a particular country.
  • Your clients – Research shows that clients can have very distinct views on services being performed in certain countries due to perceived risk, culture, and geopolitical factors. Understanding the views of major clients on globalization of services is a key factor in maintaining client satisfaction.
  • Info-Tech Insight

    Understanding your current and future market factors ensure that your business can not only be successful with the chosen partner today, but also in the future.

    1.1.1 Assess your market factors

    30 min

    Market factors

    1. Group your current client list into three categories:
      1. Those that have no restrictions on data security, privacy or location.
      2. Those that ask for assurances on data security, privacy and location.
      3. Those clients who have compliance restrictions related to data security, privacy, and location.
    2. Categorize future markets into the same three categories.
    3. Based on revenue projections, estimate the revenue from each category as a percentage of your total revenue.

    Download the Select a Sourcing Partner Presentation Template

    Input Output
    • Current client list
    • Future market plans
    • Competitive analysis
    • Completion of the Market Factors chart in the Select a Sourcing Partner for Your Development Team template
    Materials Participants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Product owners
    • Line of business leaders
    • Finance leaders

    Assess your market factors

    Market and sector

    Market share and constraints

    Market category

    Sector – Public, private or both

    Market share of category

    Key areas of concern

    Not constrained by data privacy, security or location

    Private

    50%

    Require assurances on data security, privacy or location

    Public

    45%

    Data access

    Have constraints that preclude choices related to data security, privacy and location

    Public

    5%

    Data residency

    1.1.2 Review your competitive factors

    30 min

    Competitive factors

    1. List your largest competitors.
    2. Document their sourcing strategies for their development team – are they all onshore or nearshore? Do they outsource?
    3. Based on this, identify competitive threats based on changing sourcing strategies.

    Download the Select a Sourcing Partner Presentation Template

    Input Output
    • Current client list
    • Future market plans
    • Competitive analysis
    • Completion of the Market Factors chart in the Select a Sourcing Partner for Your Development Team template
    Materials Participants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Product owners
    • Line of business leaders
    • Finance leaders

    Review your competitive factors

    Competitors

    Competitor sourcing strategy

    Competitive threats

    Competitor

    Where is the market?

    Is this onshore / near shore / offshore?

    Data residency

    How could competitors take advantage of a change in our sourcing strategy?

    Competitor X

    Canada / US

    All work done in house and onshore

    Kept in Canada / US

    If we source offshore, we will face a Made in Canada / US threat

    Step 1.2

    Consider your people-related factors

    Activities

    1.2.1 Define your people factors

    1.2.2 Assess your process factors

    This step involves the following participants:

    Technical leaders

    Outcomes of this step

    Details of key people factors that will drive the selection of the right partner.

    People / process factors

    People and process have a large hand in the success or failure of a partner relationship.

    • Alignment of people and process are critical to the success of the partner relationship over the long term.
    • In research on outsourcing / offshoring, Rahman et al identified ten factors that directly impact success or failure in offshoring or outsourcing of development.
    • Key among them are the following:
      • Employee skills
      • Project management
      • Maturity of process concerning product and client management
      • Language barrier

    Info-Tech Insight

    People are a critical resource in any sourcing strategy. Making sure the people and the processes will mesh seamlessly is how to ensure success.

    1.2.1 Define your people factors

    30 min

    Skills Inventory

    1. List skills needed in the development team to service current needs.
    2. Based on future innovation and product direction, add skills you foresee needing in the next 12-24 months. Where do you see a new technology platform (e.g. move from .NET to Java) or innovation (addition of Mobile)?
    3. List current skills present in the team.
    4. Identify skills gaps.

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Product plans for current and future products
    • Technology platform plans for current products
    • Future innovation plans
    • People- and process-related factors that influence sourcing decisions
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Product owners
    • Solution architects

    Assess your people - Skills inventory

    Skills required

    Strategic value

    Skills present

    Skill you are seeking

    Required today or in the future

    Rate the skill level required in this area

    Is this a strategic focus for the firm for future targets?

    Is this skill present in the team today?

    Rate current skill level (H/M/L)

    Java Development

    Future

    High

    Yes

    No

    Low

    .Net Development

    Today

    Med

    No

    Yes

    High

    1.2.2 Assess your process factors

    30 min

    Process factors

    1. Do you have a defined product ownership practice?
    2. How mature is the product ownership for the product you are seeking to change sourcing for (H/M/L)?
    3. Do you have project management principles and governance in place for software releases?
    4. What is the relative maturity / skill in the areas you are seeking sourcing for (H/M/L)?

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Product plans for current and future products
    • Technology platform plans for current products
    • Future innovation plans
    • People- and process-related factors that influence sourcing decisions
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Product owners
    • Solution architects

    Assess your process factors

    Product ownership

    Project management

    Product where sourcing is being changed

    Product ownership in place?

    Skills / maturity rating (H/M/L)

    Project management / governance in place for software releases

    Rate current maturity / skill level (H/M/L)

    ABC

    Yes

    High

    Yes

    High

    SQW

    No

    Low

    Yes

    High

    Step 1.3

    Review your current culture

    Activities

    1.3.1 Assess your communications factors

    1.3.2 Assess your conflict resolution factors

    This step involves the following participants:

    Technical leaders

    Product owners

    Project managers

    Outcomes of this step

    Details of key culture factors that will drive the selection of the right partner.

    Cultural factors

    Organization culture fit is a driver of collaboration between the teams, which drives success.

    • In their study of country attractiveness for sourcing development, Kotlarsky and Oshri point to the ability of the client and their sourcing partner to work as one team as a key to success.
    • This requires synergies in many cultural factors to avoid costly miscommunications and misinterpretations that damage collaboration.
    • Key factors in achieving this are:
      • Communications methodology and frequency; managing and communicating to the teams as one team vs two, and communicating at all levels, vs top down.
      • Managing the team as one integrated team, with collaboration enabled between all resources, rather than the more adversarial client vs partner approach.
      • Conflict resolution strategies must align so all members of the extended team work together to resolve conflict vs the traditional “Blame the Contractors”.
      • Strong change management is required to keep all team members aligned.

    Info-Tech Insight

    Synergy of culture is what enables a good partner selection to become a long-term relationship of value.

    1.3.1 Assess your communications factors

    30 min

    1. List all the methods you use to communicate with your development team – face to face, email, conference call, written.
    2. For each form of communication confirm frequency, medium, and audience (team vs one-on-one)
    3. Confirm if these communications take into account External vs Internal resources and different time zones, languages, and cultures.
    4. Is your development team broken up into teams by function, by location, by skill, etc., or do you operate as one team?

    Download the Select a Sourcing Partner Presentation Template

    Input Output
    • Communication process with existing development team
    • Examples of how external staff have been integrated into the process
    • Examples of conflicts and how they were resolved
    • Documentation of key cultural characteristics that need to be part of provider profiling
    Materials Participants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Product owners
    • Project managers

    Assess your communications strategy

    Communications

    Type

    Frequency

    Audience

    One communication or one per audience?

    Level of two-way dialogue

    Face-to-face team meetings

    Weekly

    All developers

    One

    High

    Daily standup

    Daily

    Per team

    One per audience

    Low

    1.3.2 Assess your conflict resolution factors

    30 min

    1. How does your organization handle the following types of conflict? Rate from 1-5, with 1 being hierarchical and 5 being openly collaborative.
      1. Developers on a team disagree.
      2. Development team disagrees with manager.
      3. Development team disagrees with product owner.
      4. Development team disagrees with line of business.
    2. Rate each conflict resolution strategy based on effectiveness.
    3. Confirm if this type of strategy is used for internal and external resources, or internal only.

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Communication process with existing development team
    • Examples of how external staff have been integrated into the process
    • Examples of conflicts and how they were resolved
    • Documentation of key cultural characteristics that need to be part of provider profiling
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Product owners
    • Project managers

    Assess your conflict resolution strategy

    Conflict

    Resolution strategy

    Effectiveness

    Audience

    Conflict type

    Rate the resolution strategy from hierarchical to collaborative (1-5)

    How effective is this method of resolution from 1-5?

    Is this strategy used for external parties as well as internal?

    Developer to product owner

    44

    Yes

    Developer to manager

    12

    Yes

    Step 1.4

    Document your technical factors

    Activities

    1.4.1 Document your product / platform factors

    1.4.2 Document your environment details

    This step involves the following participants:

    Technical leaders

    Product owners

    Outcomes of this step

    Details of key technical factors that will drive the selection of the right partner.

    Technical factors

    Technical factors are still the foundation for a Development sourcing relationship.

    • While there are many organizational factors to consider, the matching of technological factors is still the root on which the sourcing relationship is built; the end goal is to build better software.
    • Key technical Items that need to be aligned based on the research are:
      • Technical infrastructure
      • Development environments
      • Development methodology and tools
      • Deployment methodology and tools
      • Lack of/poor-quality technical documentation
    • Most RFPs focus purely on skills, but without alignment on the above items, work becomes impossible to move forward quickly, limiting the chances of success.

    Info-Tech Insight

    Technical factors are the glue that enables teams to function together. Ensuring that they are fully integrated is what enables team integration; seams in that integration represent failure points.

    1.4.1 Document your product / platform factors

    30 mins

    1. How many environments does each software release go through from the start of development through release to production?
    2. What is the infrastructure and development platform?

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Development process
    • Deployment process
    • Operations process
    • IT security policies
    • Documentation of key technical characteristics that need to be part of provider profiling
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Development leaders
    • Deployment team leaders
    • Infrastructure leaders
    • IT operations leaders
    • Product owners
    • Project managers

    Document your product / platform

    Product / Platform

    Product you are seeking a sourcing solution for

    What is the current infrastructure platform?

    How many environments does the product pass through?

    What is the current development toolset?

    ABC

    Windows

    Dev – QA – Preprod - Prod

    .Net / Visual Studio

    1.4.2 Document your environment details

    30 min

    For each environment detail the following:

    1. Environment on premises or in cloud
    2. Access allowed to external parties
    3. Production data present and unmasked
    4. Deployment process: automated or manual
    5. Tools used for automated deployment
    6. Can the environment be restored to last known state automatically?
    7. Does documentation exist on the environment, processes and procedures?

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Development process
    • Deployment process
    • Operations process
    • IT security policies
    • Documentation of key technical characteristics that need to be part of provider profiling
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Development leaders
    • Deployment team leaders
    • Infrastructure leaders
    • IT operations leaders
    • Product owners
    • Project managers

    Document Your Environment Details

    Environment

    Location

    Access

    Deployment

    Data

    Name of Environment

    Is the environment on premises or in the cloud (which cloud)?

    Is external access allowed?

    Is deployment automated or manual?

    Tool used for deployment

    Is reset automated?

    Does the environment contain unmasked production data?

    Dev

    Cloud

    Yes

    Automated

    Azure DevOps

    Yes

    No

    QA

    Cloud

    Yes

    Automated

    Azure DevOps

    Yes

    No

    Preprod

    On Premises

    No

    Manual

    N/A

    No

    Yes

    Phase 2

    Introspection

    1.1 Assess your market factors

    1.2 Determine your people factors

    1.3 Review your current culture

    1.4 Document your technical factors

    Profiling

    2.1 Recall your sourcing strategy

    2.2 Prioritize your company factors

    2.3 Create target profile

    Partner selection

    3.1 Review your RFx

    3.2 Identify target vendors

    3.3 Evaluate vendor

    responses

    Implementation

    4.1 Engage partner to choose contract mechanism

    4.2 Engage partner team to define goals

    4.3 Choose your success

    metrics

    This phase will help you to build a profile of the partner you should target in your search for a sourcing partner.

    This phase involves the following participants:

    Technology leaders

    Procurement leaders

    Product owners

    Project managers

    Build a profile for the right partner

    • Finding the perfect partner is a puzzle to solve, an exercise between the firm and the partners.
    • It is necessary to be able to prioritize and to identify opportunities where you can adapt to create a fit.
    • You must also bring forward the sourcing model you are seeking and prioritize factors based on that; for example, if you are seeking a nearshore partner, language may be less of a factor.

    Review factors based on sourcing choice

    Different factors are more important depending on whether you are insourcing or outsourcing.

    Key risks for insourcing

    • Alignment on communication strategy and method
    • Ability to align culturally
    • Need for face-to-face relationship building
    • Need for coaching skills

    Key risks for outsourcing

    • Giving control to the vendor
    • Legal and regulatory issues
    • Lack of knowledge at the vendor
    • Language and cultural fit

    Assessing your firm's position

    • The model you derived from the Sourcing Strategy research will inform the prioritization of factors for matching partners.

    Info-Tech Insight

    To find the best location for insourcing, or the best vendor for outsourcing, you need to identify your firm's positions on key risk areas.

    Step 2.1

    Recall your sourcing strategy

    Activities

    2.1.1 Define the key factors in your sourcing strategy

    This step involves the following participants:

    Technology Leaders

    Outcomes of this step

    Documentation of the Sourcing Strategy you arrived at in the Define a Sourcing Strategy exercises

    Choosing the right model

    The image contains a screenshot of the legend that will be used down below. The legend contains circles, from the left there is a empty circle, a one quarter filled circle, half filled circle, three-quarter filled circle , and a fully filled in circle.

    Determinant

    Key Questions to Ask

    Onshore

    Nearshore

    Offshore

    Outsource role(s)

    Outsource team

    Outsource product(s)

    Business dependence

    How much do you rely on business resources during the development cycle?

    The image contains a screenshot of the filled in whole circle to demonstrate high. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the half filled circle to demonstrate medium. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the empty circle to demonstrate low.

    Absorptive capacity

    How successful has the organization been at bringing outside knowledge back into the firm?

    The image contains a screenshot of the empty circle to demonstrate low. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the half filled circle to demonstrate medium. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the filled in whole circle to demonstrate high.

    Integration complexity

    How many integrations are required for the product to function – fewer than 5, 5-10, or more than 10?

    The image contains a screenshot of the filled in whole circle to demonstrate high. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the half filled circle to demonstrate medium. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the empty circle to demonstrate low.

    Product ownership

    Do you have full-time product owners in place for the products? Do product owners have control of their roadmaps?

    The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the half filled circle to demonstrate medium. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the half filled circle to demonstrate medium. The image contains a screenshot of the filled in whole circle to demonstrate high. The image contains a screenshot of the filled in whole circle to demonstrate high.

    Organization culture fit

    What are your organization’s communication and conflict resolution strategies? Is your organization geographically dispersed?

    The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the filled in whole circle to demonstrate high.

    Vendor mgmt skills

    What is your skill level in vendor management? How old are your longest-standing vendor relationships?

    The image contains a screenshot of the empty circle to demonstrate low. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the one-quarter filled circle to demonstrate medium low. The image contains a screenshot of the half filled circle to demonstrate medium. The image contains a screenshot of the three-quarter filled circle to demonstrate medium high. The image contains a screenshot of the filled in whole circle to demonstrate high.

    2.1.1 Define the key factors in your sourcing strategy

    30 min

    For each product you are seeking a sourcing strategy for, document the following:

    1. Product or team name.
    2. Sourcing strategy based on Define a Sourcing Strategy.
    3. The primary drivers that led to this selection – Business Dependence, Absorptive Capacity, Integration Complexity, Product Ownership, Culture or Vendor Management.
    4. The reasoning for the selection based on that factor – e.g. we chose nearshoring based on high business dependence by our development team.

    Download the Select a Sourcing Partner Presentation Template

    Input Output
    • Sourcing Strategy from Define a Sourcing Strategy for your Development Team
    • Reasoning that drove the sourcing strategy selection
    Materials Participants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leadership

    Define sourcing strategy factors

    Sourcing strategy

    Factors that led to selection

    Product you are seeking a sourcing solution for

    Strategy defined

    Key factors that led to that choice

    Reasoning

    ABC

    Outsourcing - Offshore

    • Product ownership
    • Business integration
    • Product maturity
    • Technical environment

    Mature product ownership and low requirement for direct business involvement.

    Mature product with lower environments in cloud.

    Step 2.2

    Prioritize your company factors

    Activities

    2.2.1 Prioritize the factors from your sourcing strategy and confirm if mitigation or adaptation are possible.

    This step involves the following participants:

    IT Leadership team

    Outcomes of this step

    Prioritized list of key factors

    2.2.1 Prioritize your sourcing strategy factors

    30 min

    1. For each of the factors listed in exercise 2.1, prioritize them by importance to the firm.
    2. For each factor, please confirm if there is room to drive change internally to overcome the lack of a match – for example, if the culture being changed in language and conflict resolution is an option, then say Yes for that factor.

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Sourcing Strategy factors from 2.1
    • Prioritized list of sourcing strategy factors
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders

    Sourcing strategy factors and priority

    Sourcing strategy

    Factors that led to selection

    Priority of factor in decision

    Change possible

    Product you are seeking a sourcing solution for

    Strategy defined

    Key factors that led to your choice

    Reasoning

    Priority of factor 1-x

    Is there an opportunity to adapt this factor to a partner?

    ABC

    Outsourcing - offshore

    • Product ownership
    • Business integration
    • Product maturity
    • Technical environment

    Mature product ownership

    Low requirement for direct business involvement

    Mature product with lower environments in cloud

    2

    1

    3

    N

    N

    Y

    Step 2.3

    Create target profile

    Activities

    2.3.1 Profile your best fit

    This step involves the following participants:

    IT Leadership team

    Outcomes of this step

    Profile of the target partner

    Profiling your best fit

    Creating a target profile will help you determine which partners should be included in the process.

    Given the complexity of all the factors and trying to find the best fit from a multitude of partners, Info-Tech recommends forming a target profile for your best fit of partner.

    This profile provides a detailed assessment matrix to use to review potential partners.

    Profile should be created based on priority; "must haves" are high priority, while properties that have mitigation opportunities are optional or lower priority.

    Criteria

    Priority

    Some US Govt contracts – data and staff in NATO

    1

    Windows environment – Azure DEVOPS

    2

    Clients in FS

    3

    Agile SDLC

    4

    Collaborative communication and conflict resolution

    5

    Mature product management

    6

    Languages English and Spanish

    7

    Partner Profile

    • Teams in NATO and non-NATO countries
    • Windows skills with Azure
    • Financial Services experience
    • Utilize Agile and willing to plug into our teams
    • Used to collaborating with clients in one team environment
    • One centre in Latin / South America

    Info-Tech Insight

    The factors we have defined serve to build us a profile for the ideal partner to engage in sourcing our development team. This profile will lead us to be able to define our RFP / RFI and assess respondents.

    Case study: Cognizant is partnering with clients on product development

    INDUSTRY: Technology Services

    SOURCE: Interview with Jay MacIsaac, Cognizant

    Cognizant is driving quality solutions for clients

    • Strives to be primarily an industry-aligned organization that delivers multiple service lines in multiple geographies.
    • Seeks to carefully consider client culture to create one team.
    • 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.
    • Realizes 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.
    • Understands that clients do want to know where the work is being delivered from and how it's being delivered, and want to help manage expectations and overall risk.

    Synergy with Info-Tech’s approach

    • Best relationship comes when 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.
    • Goal is a one-team culture with shared goals and delivering business value.
    • Ideal is a partner that will add to their thinking, not echo it.

    Results of this approach

    • 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.

    Case study: Cabot Technology Solutions uses industry knowledge to drive successful partnerships

    INDUSTRY: Technology Services

    SOURCE: Interview with Shibu Basheer, Cabot Technology Solutions

    Cabot Technology Solutions findings

    • Cabot Technology Solutions looks to partner with clients and deliver expertise and value, not just application development.
      • Focus on building deep knowledge in their chosen vertical, Healthcare.
      • Focus on partnering with clients in this space who are seeking a partner to provide industry knowledge and use this to propel them forward.
      • Look to work with clients seeking a one team philosophy.
      • Avoid clients looking for a cheap provider.
    • Recognizing the initial apprehension to India as a location, they have built a practice in Ontario that serves as a bridge for their offshore team.
    • Cabot overcame initial views and built trust, while integrating the India team in parallel.

    Synergy with Info-Tech approach

    • Preference is partners, not a client/vendor relationship.
    • Single country model is set aside in favor of mix of near and offshore.
    • Culture is a one team approach, not the more adversarial order-taker approach.
    • Goal is to build long-term relationships of value, not task management.

    Results of this approach

    • Cabot is a recognized as a top software development company in many markets across the USA.
    • Cabot continues to drive growth and build referenceable client relationships across North America.

    2.3.1 Profile your best fit

    30 min

    1. Document the list of skills you are seeking from the People Factors – Skills Inventory in Section 1.2 – these represent the skills you are seeking in a partner.
    2. Document the culture you are looking for in a partner with respect to communications and conflict resolution in the culture section of the requirements – this comes from Section 1.3.
    3. Confirm the type of partner you are seeking – nearshore, offshore, or outsourcing based on the sourcing strategy priorities in Section 2.2.
    4. Confirm constraints that the partner must work under based on constraints from your market and competitor factors in Section 1.1.
    5. Confirm your technical requirements in terms of environments, tools, and processes that the vendor must align to from Section 1.4.

    Download the Select a Sourcing Partner Presentation Template

    Input Output

    All exercises done in Steps 11-1.4 and 2.1-2.2

    Profile of a target partner to drive the RFx Criteria

    Materials Participants

    Select a Sourcing Partner for Your Development Team Presentation template

    Development leaders

    Deployment team leaders

    Infrastructure leaders

    IT operations leaders

    Product owners

    Project managers

    RFP skills requirement

    People skills required

    Product ownership

    Project management

    Skill

    Skill level required

    Tools / platform requirement

    Details of product management methodology and skills

    Details of firm's project management methodology

    .NET

    Medium

    Windows

    Highly mature, high skill

    Highly mature, high skill

    Java

    High

    Windows

    Low

    High

    RFx cultural characteristics

    Communication strategy

    Conflict resolution

    Organization / management

    Communication mediums supported

    Frequency of meetings expected

    Conflict resolutions strategies used at the firm

    Management methodology

    Face to face

    Weekly

    Collaborative

    Online

    Daily

    Hierarchical with manager

    Hierarchical

    RFx market constraints

    Constraints

    Partner proposal

    Constraint type

    Restrictions

    Market size required for

    Reasoning

    Data residency

    Data must stay in Canada for Canadian Gov't clients

    5% Canada public sector

    Competitive

    Offshoring dev means competition can take advantage

    95% Clients

    Need strategy to show data and leadership in NA, but delivering more innovation at lower cost by going offshore

    RFx technical requirements

    Technical environments

    Infrastructure

    Alignment of SDLC

    Tools required for development team

    Access control software required

    Infrastructure location

    Number of environments from development to production

    .Net Visual Studio

    Microsoft

    Azure

    4

    RFx scope of services

    Work being sourced

    Team sizing

    Work being sourced

    Skill level required

    Average size of release

    Releases per year

    Java development of new product

    High

    3-month development

    6

    .NET staff augmentation

    Medium

    ½-month development

    12

    Phase 3

    Choose the partner that will best enable you to move forward as one integrated team.

    Introspection

    1.1 Assess your market factors

    1.2 Determine your people factors

    1.3 Review your current culture

    1.4 Document your technical factors

    Profiling

    2.1 Recall your sourcing strategy

    2.2 Prioritize your company factors

    2.3 Create target profile

    Partner selection

    3.1 Review your RFx

    3.2 Identify target vendors

    3.3 Evaluate vendor

    responses

    Implementation

    4.1 Engage partner to choose contract mechanism

    4.2 Engage partner team to define goals

    4.3 Choose your success

    metrics

    For more details on Partner Selection, please refer to our research blueprint entitled Select an ERP Partner

    This phase will help you define your RFx for your provider search

    This phase involves the following participants:

    Vendor Management Team

    IT Leadership

    Finance Team

    Finding the right fit should always come before rates to determine value

    The right fit

    Determined in previous activities

    Negotiating will eventually bring the two together

    Value

    Rates

    Determined by skill and location

    Statement of Work (SOW) quality

    A quality SOW is the result of a quality RFI/RFP (RFx).

    The process up to now has been gathering the materials needed to build a quality RFx. Take this opportunity to review the outputs of the preceding activities to ensure that:

    • All the right stake holders have been engaged.
    • The requirements are complete.

    Info-Tech’s RFP Review as a Service looks for key items to ensure your RFx will generate quality responses and SOWs.

    • Is it well-structured with a consistent use of fonts and bullets?
    • Is it laid out in sections that are easily identifiable and progress from high-level to more detailed information?
    • Can a vendor quickly identify the ten (or fewer) things that are most important to you?

    The image contains a screenshot of the Request for Proposal Review as a Service.

    Step 3.1

    Review your RFx

    Activities

    3.1.1 Select your RFx template

    3.1.2 Finalize your RFx

    3.1.3 Weight each evaluation criteria

    This step involves the following participants:

    • Project team
    • Evaluation team
    • Vendor management team
    • CIO

    Outcomes of this step

    • Completed RFx

    Info-Tech’s RFI/RFP process

    Info-Tech has well-established vendor management templates and practices

    • Identify Need
    • Define Business Requirements
    • Gain Business Authorization
    • Perform RFI/RFP
    • Negotiate Agreement
    • Purchase Goods and Services
    • Assess and Measure Performance

    Info-Tech Best Practice

    You’ll want to customize templates for your organization, but we strongly suggest that you take whatever you feel best meets your needs from both the long- and short-form RFPs presented in this blueprint.

    The secret to managing an RFP is to make it manageable. And the secret to making an RFP manageable is to treat it like any other aspect of business – by developing a process. With a process in place, you are better able to handle whatever comes your way, because you know the steps you need to follow to produce a top-notch RFP.

    Your RFP process should be tailored to fit the needs and specifics of your organization and IT.

    Info-Tech Insight

    Create a better RFP process using Info-Tech’s well-established templates and methodology.

    Create a Better RFP Process

    In a hurry? Consider an enhanced RFI instead of an RFP.

    While many organizations rarely use RFIs, they can be an effective tool in the vendor manager’s toolbox when used at the right time in the right way. RFIs can be deployed in competitive targeted negotiations. An enhanced RFI (ERFI) is a two-stage strategy that speeds up the typical RFP process. The first stage is like an RFI on steroids, and the second stage is targeted competitive negotiation.

    Stage 1:

    Create an RFI with all the customary components. Next, add a few additional RFP-like requirements (e.g. operational and technical requirements). Make sure you include a request for budgetary pricing and provide any significant features and functionality requirements so that the vendors have enough information to propose solutions. In addition, allow the vendors to ask questions through your single point of coordination and share answers with all the vendors. Finally, notify the vendors that you will not be doing an RFP – this is it!

    Stage 2:

    Review the vendors’ proposals and select the best two. Negotiate with both vendors and then make your decision.

    The ERFI shortens the typical RFP process, maintains leverage for your organization, and works great with low- to medium-spend items (however your organization defines them). You’ll get clarification on vendors’ competencies and capabilities, obtain a fair market price, and meet your internal clients’ aggressive timelines while still taking steps to protect your organization.

    RFI Template

    The image contains a screenshot of the RFI Template.

    Use this template to create your RFI baseline template. Be sure to modify and configure the template to your organization’s specifications.

    Request for Information Template

    Long-Form RFP Template

    Configure Info-Tech’s Long-Form RFP Template for major initiatives

    The image contains a screenshot of the long-form RFP Template.

    A long-form or major RFP is an excellent tool for more complex and complicated requirements. This example is for a baseline RFP.

    It starts with best-in-class RFP terms and conditions that are essential to maintaining your control throughout the RFP process. The specific requirements for the business, functional, technical, and pricing areas should be included in the exhibits at the end of the template. That makes it easier to tailor the RFP for each deal, since you and your team can quickly identify specific areas that need modification. Grouping the exhibits together also makes it convenient for both your team to review, and the vendors to respond.

    You can use this sample RFP as the basis for your template RFP, taking it all as is or picking and choosing the sections that best meet the mission and objectives of the RFP and your organization.

    Source: Info-Tech’s The Art of Creating a Quality RFP

    Short-Form RFP Template

    Configure Info-Tech’s Short-Form RFP Template for minor or smaller initiatives

    The image contains a screenshot of the Short-Form RFP Template.

    This example is for a less complex RFP that has relatively basic requirements and perhaps a small window in which the vendors can respond. As with the long-form RFP, exhibits are placed at the end of the RFP, an arrangement that saves time for both your team and the vendors. Of course, the short-form RFP contains fewer specific instructions, guidelines, and rules for vendors’ proposal submissions.

    We find that short-form RFPs are a good choice when you need to use something more than a request for quote (RFQ) but less than an RFP running 20 or more pages. It’s ideal, for example, when you want to send an RFP to only one vendor or to acquire items such as office supplies, contingent labor, or commodity items that require significant vendor's risk assessment.

    Source: The Art of Creating a Quality RFP

    3.1.1 Select your RFx template

    1-3 hours

    1. As a group, download the RFx templates from the previous three slides.
    2. Review your RFx process as a group. Be sure to include the vendor management team.
    3. Be sure to consider organization-specific procurement guidelines. These can be included. The objective here is to find the template that is the best fit. We will finalize the template in the next activity.
    4. Determine the best template for this project.
    Input Output
    • RFx templates
    • The RFx template that will be used for this project
    Materials Participants
    • Info-Tech’s Enhanced RFI Template, Long-Form RFP Template, and Short-Form RFP Template
    • Vendor management team
    • Project team
    • Project manager

    Finalize your RFx

    Key insights

    Leverage the power of the RFP

    • Too often RFPs fail to achieve their intended purposes, and your organization feels the effects of a poorly created RFP for many years.
    • If you are faced with a single source vendor, you can perform an RFP to one to create the competitive leverage.

    Make the response and evaluation process easier

    • Being strategic in your wording and formatting makes it easier on both parties – easier for the vendors to submit meaningful proposals, and easier for customer teams to evaluate.
    • Create a level playing field to encourage competition. Without multiple proposals, your options are limited and your chances for a successful project plummet.

    Maximize the competition

    • Leverage a pre-proposal conference to resolve vendor questions and to ensure all vendors receive the same answers to all questions. No vendor should have an information advantage.

    Do’s

    • Leverage your team’s knowledge.
    • Document and explain your RFP process to stakeholders and vendors.
    • Include contract terms in your RFP.
    • Measure and manage performance after contract award.
    • Seek feedback from the RFP team on your process and improve it as necessary.

    Don'ts

    • Reveal your budget.
    • Do an RFP in a vacuum.
    • Send an RFP to a vendor your team is not willing to award the business to.
    • Hold separate conversations with candidate vendors during your RFP process.
    • Skimp on the requirements definition to speed the process.
    • Tell the vendor they are selected before negotiating.

    3.1.2 Finalize your RFx

    1-3 hours

    1. As a group, review the selected RFI or RFP template.
    2. This is YOUR document. Modify it to suit the needs of the organization and even add sections from the other RFP templates that are relevant to your project.
    3. Use the Supplementary RFx Material as a guide.
    4. Add the content created in Steps 1 and 2.
    5. Add any organization-specific clauses or requirements.
    6. Have the project team review and comment on the RFP.
    7. Optional: Use Info-Tech’s RFP Review Concierge Service.

    Download the RFx Vendor Evaluation Tool

    Download the Supplementary RFx Material

    InputOutput
    • RFx template
    • Organizational specific guidelines
    • Materials from Steps 1 and 2
    • Supplementary RFx Material
    • Finalized RFx
    MaterialsParticipants
    • Electronic RFP document for editing
    • Vendor management team
    • Project team
    • Project manager

    3.1.2 Bring it all together

    Supplementary RFx Material

    The image contains a screenshot of Supplementary RFx Material.

    Review the sample content to get a feel for how to incorporate the results of the activities you have worked through into the RFx template.

    RFx Templates

    Use one of our templates to build a ready-for-distribution implementation partner RFx tailored to the unique success factors of your implementation.

    Exercises in Steps 1 and 2

    The image contains a screenshot of Exercises in Steps 1 and 2

    Use the material gathered during each activity to inform and populate the implementation partner requirements that are specific for your organization and project.

    The image contains a screenshot of the Long Form RFx template.The image contains a screenshot of the Short Form RFx template.

    3.1.3 Weight each evaluation criteria

    1-3 hours

    1. As a group, review the selected RFI or RFP template.
    2. This is your document. Modify it to suit the needs of the organization and even add sections from the other RFP templates that are relevant to your project.
    3. Use the Supplementary RFx Material as a guide.
    4. Utilize the content defined in Steps 1 and 2.
    5. Add any organization-specific clauses or requirements.
    6. Have the project team review and comment on the RFP.
    7. Optional: Use Info-Tech’s RFP Review Concierge Service.

    Download the Supplementary RFx Material

    InputOutput

    RFx Vendor Evaluation Tool

    Exercises from Steps 1 and 2

    • Weighted scoring tool to evaluate responses
    MaterialsParticipants
    • RFx Vendor Evaluation Tool
    • Supplementary RFx Material
    • Vendor management team
    • Project team
    • Project manager

    3.1.3 Apply weight to each evaluation criteria

    Use this tool to weight each critical success factor based on results of the activities within the vendor selection workbook for later scoring results.

    The image contains a screenshot of the RFx Vendor Evaluation Tool.

    Download the RFx Vendor Evaluation Tool

    Step 3.2

    Identify target vendors

    Activities

    3.2.1 Identify target vendors

    3.2.2 Define your RFx timeline

    This step involves the following participants:

    • Project team
    • Vendor management team

    Outcomes of this step

    • Targeted vendor list
    • Initial RFx timeline

    3.2.1 Identify target vendors

    1-3 hours

    1. Based on the profile defined in Step 2.3, research potential partners that fit the profile, starting with those you may have used in the past. From this, build your initial list of vendors to target with your RFx.
    2. Break into smaller groups (or continue as a single group if it is already small) and review each shortlisted vendor to see if they will likely respond to the RFx.
    Input Output
    • Websites
    • Peers
    • Advisory groups
    • A shortlist of vendors to target with your RFx
    Materials Participants
    • RFx Vendor Evaluation Tool
    • CIO
    • Vendor management team
    • Project team
    • Evaluation team

    Download the RFx Vendor Evaluation Tool

    Define your RFx timeline

    Provider RFx timelines need to be clearly defined to keep the project and participants on track. These projects and processes can be long. Set yourself up for success by identifying the time frames clearly and communicating them to participants.

    1. Current
    • Concurrent ERP product selection
    • RFx preparation
    • Release of RFX
  • Near-term
    • Responses received
    • Scoring responses
    • Shortlisting providers
    • Provider interviews
    • Provider selection
    • Provider contract negotiations
    • Contract with provider
  • Future
    • Initiation of knowledge transfer
    • Joint development period
    • Cutover to provider team

    89% of roadmap views have at least some representation of time. (Roadmunk, n.d.)

    Info-Tech Insight

    The true value of time horizons is in dividing your timeline and applying different standards and rules, which allows you to speak to different audiences and achieve different communication objectives.

    3.2.2 Define your RFx timeline

    1-3 hours

    1. As a group identify an appropriate timeline for your RFP process. Info-Tech recommends no less than three months from RFx release to contract signing.

      Keep in mind that you need to allow for time to engage the team and perform some level of knowledge transfer, and to seed the team with internal resources for the initial period.
    2. Leave enough time for vendor responses, interviews, and reference checks.
    3. Once the timeline is finalized, document it and communicate it to the organization.

    Download the RFx Vendor Evaluation Tool

    Input Output
    • RFx template
    • Provider RFx timeline
    Materials Participants
    • RFx Vendor Evaluation Tool
    • Vendor management team
    • Project team
    • Project manager

    Define your RFx timeline

    The image contains a screenshot of an example of an RFx timeline.

    Step 3.3

    Evaluate vendor responses

    Activities

    3.3.1 Evaluate responses

    This step involves the following participants:

    • Evaluation team

    Outcomes of this step

    • Vendor submission scores

    3.3.1 Evaluate responses

    1-3 hours

    1. Use the RFx Vendor Evaluation Tool to collect and record the evaluation team's scores for each vendor's response to your RFx.
    2. Then record and compare each team member's scores to rank the vendors' responses.
    3. The higher the score, the closer the fit.

    Download the RFx Vendor Evaluation Tool

    InputOutput
    • Vendor responses
    • Vendor presentations
    • Vendor scores
    MaterialsParticipants
    • RFx Vendor Evaluation Tool
    • Evaluation team

    3.3.1 Score vendor results

    Use the RFx Vendor Evaluation Tool to score the vendors' responses to your RFx using the weighted scale from Activity 3.1.3.

    The image contains a screenshot of the RFx Vendor Evaluation Tool.

    Download the RFx Vendor Evaluation Tool

    Phase 4

    Measuring the new relationship

    Introspection

    1.1 Assess your market factors

    1.2 Determine your people factors

    1.3 Review your current culture

    1.4 Document your technical factors

    Profiling

    2.1 Recall your sourcing strategy

    2.2 Prioritize your company factors

    2.3 Create target profile

    Partner selection

    3.1 Review your RFx

    3.2 Identify target vendors

    3.3 Evaluate vendor

    responses

    Implementation

    4.1 Engage partner to choose contract mechanism

    4.2 Engage partner team to define goals

    4.3 Choose your success

    metrics

    This phase will allow you to define the relationship with your newly chosen partner, including choosing the right contract mechanism, defining shared goals for the relationship, and selecting the metrics and processes to measure performance.

    This phase involves the following participants:

    IT leadership

    Procurement team

    Product owners

    Project managers

    Implementing the Partner

    Implementing the new partner is an exercise in collaboration

    • Successfully implementing your new partner is an exercise in working together
    1. Define a contract mechanism that is appropriate for the relationship, but is not meant as punitive, contract-based management – this sets you up for failure.
    2. Engage with your team and your partner as one team to build shared, measurable goals
    3. Work with the team to define the metrics and processes by which progress against these goals will be measured
  • Goals, metrics and process should be transparent to the team so all can see how their performance ties to success
  • Make sure to take time to celebrate successes with the whole team as one
  • Info-Tech Insight

    Implement the relationship the same way you want it to work: as one team. Work together on contract mechanism, shared goals, metrics, and performance measurement. This transparency and collaboration will build a one team view, leading to long-term success.

    Step 4.1

    Engage partner to choose contract mechanism

    Activities

    4.1.1 Confirm your contract mechanism

    This step involves the following participants:

    IT leadership

    Procurement team

    Vendor team

    Outcomes of this step

    Contract between the vendor and the firm for the services

    Negotiate agreement

    Evaluate your RFP responses to see if they are complete and if the vendor followed your instructions.

    Then:

    Plan negotiation(s) with one or more vendors based on your questions and opportunities identified during evaluation.

    Select finalist(s).

    Apply selection criteria.

    Resolve vendors' exceptions.

    Negotiate before you select your vendor:

    Negotiating with two or more vendors will maintain your competitive leverage while decreasing the time it takes to negotiate the deal.

    Perform legal reviews as necessary.

    Use sound competitive negotiations principles.

    Info-Tech Insight

    Be certain to include any commitments made in the RFP, presentations, and proposals in the agreement, as the standard for an underperforming vendor.

    Info-Tech Insight

    Providing contract terms in an RFP can dramatically reduce time for this step by understanding the vendor’s initial contractual position for negotiation.

    Leverage ITRG's negotiation process research for additional information

    For more details on this process please see our research Drive Successful Sourcing Outcomes with a Robust RFP Process

    4.1.1 Confirm your contract mechanism

    30 min

    1. Does the firm have prior experience with this type of sourcing arrangement?
    2. Does the firm have an existing services agreement with the selected partner?
    3. What contract mechanisms have been used in the past for these types of arrangements?
    4. What mechanism was proposed by the partner in their RFP response?

    Download the Select a Sourcing Partner Presentation Template

    Input Output
    • Past sourcing agreements from Procurement
    • Proposed agreement from partner
    • Agreed upon contract mechanism
    Materials Participants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Vendor management group
    • Partner leaders

    Choose the appropriate contract method

    Work being sourced

    Partner proposal

    Agreed-upon mechanism

    Work being sourced

    Vendor management experience with type

    Partner proposed contract method

    Agreed-upon contract method

    Java development team to build new product

    Similar work done with fixed price with another vendor

    Time and materials per scrum team

    Time and materials per scrum team to avoid vendor conflicts inherent in fixed price which limit innovation

    Step 4.2

    Engage partner team to define shared goals

    Activities

    4.2.1 Define your shared goals

    This step involves the following participants:

    IT leadership

    Vendor leadership

    Outcomes of this step

    Shared goals for the team

    Define success and shared goals

    Work together to define how you will measure yourselves.

    One team

    • Treating the new center and the existing team as one team is critical to long-term success.
    • Having a plan that allows for teams to meet frequently face-to-face "get to know you" and "stay connected" sessions will help the team gel.

    Shared goals

    • New group must share common goals and measurements.

    Common understanding

    • New team must have a common understanding and culture on key facets such as:
      • Measurement of quality
      • Openness to feedback and knowledge sharing
      • Culture of collaboration
      • Issue and Risk Management

    4.2.1 Define your shared goals

    30 min

    1. List each item in the scope of work for the sourcing arrangement – e.g. development of product XXX.
    2. For each scope item, detail the benefit expected by the firm – e.g. development cost expected to drop by 10% per year, or customer satisfaction improvement.
    3. For each benefit define how you will measure success – e.g. track cost of development for the development team assigned, or track Customer Satisfaction Survey results.
    4. For each measure, define a target for this year – e.g. 10% decrease over last year's cost, or customer satisfaction improvement from 6 to 7.

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Services being procured from RFx
    • Benefits expected from the sourcing strategy
    • Baseline scores for measurements
    • Shared goals agreed upon between team and partner
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Technology leaders
    • Partner leaders

    Define goals collaboratively

    Role and benefit

    Goals and objectives

    Role / work being sourced

    Benefit expected

    Measure of success

    Year over year targets

    Java development team to build new product

    New product to replace aging legacy

    Launch of new product

    Agree on launch schedule and MVP for each release / roadmap

    Step 4.3

    Choose your success metrics

    Activities

    4,3.1 Define metrics and process to monitor

    This step involves the following participants:

    IT leadership

    Product owners

    Project managers

    Vendor leaders

    Outcomes of this step

    Metrics and process to measure performance

    4.3.1 Define metrics and process to monitor

    30 min

    1. For each goal defined and measure of success, break down the measure into quantifiable, measurable factors – e.g. Development cost is defined as all the costs tracked to the project including development, deployment, project management, etc.
    2. For each factor choose the metric that can be reported on – e.g. project actuals.
    3. For each metric define the report and reporting frequency – e.g. monthly project actuals from project manager.

    Download the Select a Sourcing Partner Presentation Template

    InputOutput
    • Development process
    • Deployment process
    • Operations process
    • IT Security policies
    • Documentation of key technical characteristics that need to be part of provider profiling
    MaterialsParticipants
    • Select a Sourcing Partner for Your Development Team Presentation template
    • Development leaders
    • Deployment team leaders
    • Infrastructure leaders
    • IT operations leaders
    • Product owners
    • Project managers

    Agreed-upon metrics

    Goal

    Metrics and process

    Agreed-upon goal

    Year 1 target

    Metric to measure success

    Measurement mechanism

    Deliver roadmap of releases

    3 releases – MVP in roadmap

    Features and stories delivered

    Measure delivery of stories from Jira

    Research Contributor

    The image contains a picture of Alaisdar Graham.

    Alaisdar Graham

    Executive Counsellor

    Info-Tech Research Group

    During Alaisdar’s 35-year career in information and operational technology, Alaisdar has been CIO for public sector organizations and private sector companies. He has been an entrepreneur with his own consultancy and a founder or business advisor with four cyber-security start-ups, Alaisdar has developed experience across a broad range of industries within a number of different countries and become known for his ability to drive business benefits and improvements through the use of technology.

    Alaisdar has worked with CXO-level executives across different businesses. Whether undertaking a digital transformation, building and improving IT functions across your span of control, or helping you create and execute an integrated technology strategy, Alaisdar can provide insight while introducing you to Info-Tech Research Group’s experts. Alaisdar’s experience with organizational turn- around, governance, project, program and portfolio management, change management, risk and security will support your organization’s success.

    Research Contributor

    The image contains a picture of Richard Nachazel.

    Richard Nachazel

    Executive Counsellor

    Info-Tech Research Group

    • Richard has more than 40 years working in various Fortune 500 organizations. His specialties are collaborating with business and IT executives and senior stakeholders to define strategic goals and transform operational protocols, standards, and methodologies. He has established a reputation at multiple large companies for taking charge of critical, high-profile enterprise projects in jeopardy of failure and turning them around. Colleagues and peers recognize his ability to organize enterprise efforts, build, develop, and motivate teams, and deliver outstanding outcomes.
    • Richard has worked as a Global CISO & Head of IT Governance for a Swiss Insurance company, Richard developed and led a comprehensive Cyber-Security Framework that provided leadership and oversight of the cyber-security program. Additionally, he was responsible for their IT Governance Risk & Compliance Operation and the information data security compliance in a complex global environment. Richard’s experience with organizational turn around, governance, risk, and controls, and security supports technology delivery integration with business success. Richard’s ability to engage executive and senior management decision makers and champion vision will prove beneficial to your organization.

    Research Contributor

    The image contains a picture of Craig Broussard.

    Craig Broussard

    Executive Counsellor

    Info-Tech Research Group

    • Craig has over 35 years of IT experience including software development, enterprise system management, infrastructure, and cyber security operations. Over the last 20 years, his focus has been on infrastructure and security along with IT service management. He’s been an accomplished speaker and panelist at industry trade events over the past decade.
    • Craig has served as Global Infrastructure Director for NCH Corporation, VP of Information Technology at ATOS, and earlier in his career as the Global Head of Data Center Services at Nokia Siemens Networks. Craig also worked for MicroSolutions (a Mark Cuban Company). Additionally, Craig received formal consulting training while working for IBM Global Services.
    • Craig’s deep experience across many aspects of IT from Governance through Delivery makes him an ideal partner for Info-Tech members.

    Bibliography

    Offshore, Onshore or Hybrid–Choosing the Best IT Outsourcing Model. (n.d.).
    Offshore Dedicated Development Team – A Compelling Hiring Guide. (n.d.).
    The Three Non-Negotiables Of IT Offshoring. (n.d.). Forbes.
    Top Ten Countries For Offshoring. Forbes, 2004.
    Nearshoring in Europe: Choose the Best Country for IT Outsourcing - The World Financial Review. (n.d.).
    Select an Offshore Jurisdiction. The Best Countries for Business in 2021-2022! | InternationalWealth.info. (n.d.).
    How to Find the Best Country to Set Up an Offshore Company. (n.d.). biz30.
    Akbar, M. A., Alsanad, A., Mahmood, S., & Alothaim, A. (2021). Prioritization-based taxonomy of global software development challenges: A FAHP based analysis. IEEE Access, 9, 37961–37974
    Ali, S. (2018). Practices in Software Outsourcing Partnership: Systematic Literature Review Protocol with Analysis. Journal of Computers, (February), 839–861
    Baird Georgia, A. (2007). MISQ Research Curation on Health Information Technology 2. Progression of Health IT Research in MIS Quarterly. MIS Quarterly, 2007(June), 1–14.
    Akbar, M. A., Alsanad, A., Mahmood, S., & Alothaim, A. (2021). Prioritization-based taxonomy of global software development challenges: A FAHP based analysis. IEEE Access, 9, 37961–37974
    Ali, S. (2018). Practices in Software Outsourcing Partnership: Systematic Literature Review Protocol with Analysis. Journal of Computers, (February), 839–861
    Baird Georgia, A. (2007). MISQ Research Curation on Health Information Technology 2. Progression of Health IT Research in MIS Quarterly. MIS Quarterly, 2007(June), 1–14.
    Carmel, E., & Abbott, P. (2006). Configurations of global software development: offshore versus nearshore. … on Global Software Development for the Practitioner, 3–7.
    Hanafizadeh, P., & Zare Ravasan, A. (2018). A model for selecting IT outsourcing strategy: the case of e-banking channels. Journal of Global Information Technology Management, 21(2), 111–138.
    Ishizaka, A., Bhattacharya, A., Gunasekaran, A., Dekkers, R., & Pereira, V. (2019). Outsourcing and offshoring decision making. International Journal of Production Research, 57(13), 4187–4193.
    Jeong, J. J. (2021). Success in IT offshoring: Does it depend on the location or the company? Arxiv.
    Joanna Minkiewicz, J. E. (2009). Deakin Research Online Online. 2007, Interrelationships between Innovation and Market Orientation in SMEs, Management Research News, Vol. 30, No. 12, Pp. 878-891., 30(12), 878–891.

    Bibliography

    King, W. R., & Torkzadeh, G. (2016). Special Issue Information Systems Offshoring : Research Status and Issues. MIS Quarterly, 32(2), 205–225.
    Kotlarsky, J., & Oshri, I. (2008). Country attractiveness for offshoring and offshore outsourcing: Additional considerations. Journal of Information Technology, 23(4), 228–231.
    Lehdonvirta, V., Kässi, O., Hjorth, I., Barnard, H., & Graham, M. (2019). The Global Platform Economy: A New Offshoring Institution Enabling Emerging-Economy Microproviders. Journal of Management, 45(2), 567–599.
    Mahajan, A. (2018). Risks and Benefits of Using Single Supplier in Software Development. Oulu University of Applied Sciences. Retrieved from
    Murberg, D. (2019). IT Offshore Outsourcing: Best Practices for U.S.-Based Companies. University of Oregon Applied Information Management, 1277(800), 824–2714.
    Nassimbeni, G., Sartor, M., & Dus, D. (2012). Security risks in service offshoring and outsourcing. Industrial Management and Data Systems, 112(3), 405–440.
    Olson, G. M., & Olson, J. S. (2000). Distance matters. Human-Computer Interaction, 15(2–3), 139–178.
    Pilkova, A., & Holienka, M. (2018). Home-Based Business in Visegrad Countries: Gem Perspective. Innovation Management, Entrepreneurship and Sustainability 2018 Proceedings of the 6th International Conference.
    Rahman, H. U., Raza, M., Afsar, P., Alharbi, A., Ahmad, S., & Alyami, H. (2021). Multi-criteria decision making model for application maintenance offshoring using analytic hierarchy process. Applied Sciences (Switzerland), 11(18).
    Rahman, H. U., Raza, M., Afsar, P., Khan, H. U., & Nazir, S. (2020). Analyzing factors that influence offshore outsourcing decision of application maintenance. IEEE Access, 8, 183913–183926.
    Roadmunk. What is a product roadmap? Roadmunk, n.d. Accessed 12 Oct. 2021.
    Rottman, J. W., & Lacity, M. C. (2006). Proven practices for effectively offshoring IT work. MIT Sloan Management Review.
    Smite, D., Moe, N. B., Krekling, T., & Stray, V. (2019). Offshore Outsourcing Costs: Known or Still Hidden? Proceedings - 2019 ACM/IEEE 14th International Conference on Global Software Engineering, ICGSE 2019, 40–47.
    Welsum, D. Van, & Reif, X. (2005). Potential Offshoring: Evidence from Selected OECD Countries. Brookings Trade Forum, 2005(1), 165–194.
    Zhang, Y., Liu, S., Tan, J., Jiang, G., & Zhu, Q. (2018). Effects of risks on the performance of business process outsourcing projects: The moderating roles of knowledge management capabilities. International Journal of Project Management, 36(4), 627–639.

    Stakeholder Relations

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    • Parent Category Name: Strategy and Governance
    • Parent Category Link: /strategy-and-governance

    The challenge

    • Stakeholders come in a wide variety, often with competing and conflicting demands.
    • Some stakeholders are hard to identify. Those hidden agendas may derail your efforts.
    • Understanding your stakeholders' relative importance allows you to prioritize your IT agenda according to the business needs.

    Our advice

    Insight

    • Stakeholder management is an essential factor in how successful you will be.
    • Stakeholder management is a continuous process. The landscape constantly shifts.
    • You must also update your stakeholder management plan and approach on an ongoing basis.

    Impact and results 

    • Use your stakeholder management process to identify, prioritize, and manage key stakeholders effectively.
    • Continue to build on strengthening your relationships with stakeholders. It will help to gain easier buy-in and support for your future initiatives. 

    The roadmap

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

    Make the case

    Identify stakeholders

    • Stakeholder Management Analysis Tool (xls)

    Analyze your stakeholders

    Assess the stakeholder's influence, interest, standing, and support to determine priority for future actions 

    Manage your stakeholders

    Develop your stakeholder management and communication plans

    • Stakeholder Management Plan Template (doc)
    • Communication Plan Template (doc)

    Monitor your stakeholder management plan performance

    Measure and monitor the success of your stakeholder management process.

     

     

    2022 Tech Trends

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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation
    • 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.

    Bibliography – Enabling the Digital Economy

    “2021 Canada Dealer Financing Satisfaction Study.” J.D. Power, 13 May 2021. Accessed 27 May 2021.

    Brown, Sara. “The CIO Role Is Changing. Here’s What’s on the Horizon.” MIT Sloan, 2 Aug. 2021. Accessed 16 Aug. 2021.

    de Groot, E. A., et al. “Disentangling the Enigma of Multi-Structured Economic Cycles - A New Appearance of the Golden Ratio.” Technological Forecasting and Social Change, vol. 169, Aug. 2021, pp. 120793. ScienceDirect, https://doi.org/10.1016/j.techfore.2021.120793.

    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.

    LaBerge, Laura, et al. “How COVID-19 has pushed companies over the technology tipping point—and transformed business forever.” McKinsey, 5 Oct. 2020. Accessed 14 June 2021.

    Pomeroy, James. The booming digital economy. HSBC, Sept. 2020. Web.

    Salman, Syed. “Digital Transformation Realized Through COBIT 2019.” ISACA, 13 Oct. 2020. Accessed 25 Oct. 2021.

    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.

    Melin, Anders, and Misyrlena Egkolfopoulou. “Employees Are Quitting Instead of Giving Up Working From Home.” Bloomberg, 1 June 2021. Web.

    Spataro, Jared. “Microsoft and LinkedIn Share Latest Data and Innovation for Hybrid Work.” The Official Microsoft Blog, 9 Sept. 2021. Web.

    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.

    Yang, Longqi, et al. “The Effects of Remote Work on Collaboration among Information Workers.” Nature Human Behaviour, Sept. 2021, pp. 1-12. Springer Nature, https://doi.org/10.1038/s41562-021-01196-4.

    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.

    “Net Zero Scorecard.” Energy & Climate Intelligence Unit, 2021. Accessed 25 May 2021.

    Sayer, Peter. “Greenhouse gas emissions: The next big issue for CIOs.” CIO, 13 Oct. 2021. Web.

    “Scope 1 and Scope 2 Inventory Guidance.” US EPA, OAR. 14 Dec. 2020. Web.

    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.

    Howcroft, Elizabeth, and Ritvik Carvalho. “How a 10-second video clip sold for $6.6 million.” Reuters, 1 Mar. 2021. Web.

    “Central Bank Digital Currency Tracker.” Atlantic Council, 2021. Accessed 10 Sept. 2021.

    “Expert Comment From Warwick Business School: Problems With El Salvador’s Bitcoin Experiment Are Unsurprising.” Mondo Visione, 8 Sept. 2021. Accessed 10 Sept. 2021.

    Goldstein, Caroline. “In Its Ongoing Bid to Draw Crypto-Collectors, Sotheby’s Unveils a Replica of Its London H.Q. in the Blockchain World Decentraland.” Artnet News, 7 June 2021. Web.

    Hamacher, Adriana. “Taco Bell to Charmin: 10 Big Brands Jumping On The NFT Bandwagon.” Decrypt, 22 Mar. 2021. Web.

    Hazan, Eric, et al. “Getting tangible about intangibles: The future of growth and productivity?” McKinsey. 16 June 2021. Web.

    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.

    Jiang, Shangrong, et al. “Policy Assessments for the Carbon Emission Flows and Sustainability of Bitcoin Blockchain Operation in China.” Nature Communications, vol. 12, no. 1, Apr. 2021, p. 1938. Springer Nature, https://doi.org/10.1038/s41467-021-22256-3.

    Reyburn, Scott. “JPG File Sells for $69 Million, as ‘NFT Mania’ Gathers Pace.” The New York Times, 11 Mar. 2021. Web.

    Taylor, Luke. “Bitcoin: El Salvador’s Cryptocurrency Gamble Hit by Trading Loophole.” New Scientist, 25 Oct. 2021. Web.

    Bibliography – Automation as a Service

    Belsky, Scott. “The Furry Lisa, CryptoArt, & The New Economy Of Digital Creativity.” Medium, 21 Feb. 2021. Web.

    Culbertson, Joy. “10 Top Law APIs.” ProgrammableWeb, 14 Feb. 2021. Web.

    Caballar, Rina Diane. “Programming by Voice May Be the Next Frontier in Software Development - IEEE Spectrum.” IEEE Spectrum: Technology, Engineering, and Science News, 22 Mar 2021. Accessed 23 Mar. 2021.

    Gonsalves, Chris. “The Problem with APIs.” VentureBeat, 7 May 2021. Web.

    Graca, Joao. “Council Post: How APIs Are Democratizing Access To AI (And Where They Hit Their Limits).” Forbes, 24 Sept 2021. Accessed 28 Sept. 2021.

    Harris, Tony. “What is the API Economy?” API Blog: Everything You Need to Know, 4 May 2021. Web.

    Kitsing, Meelis. Scenarios for Digital Platform Ecosystems, 2020, pp. 453-57. ResearchGate, https://doi.org/10.1109/ICCCS49078.2020.9118571.

    Pilipiszyn, Ashley. “GPT-3 Powers the Next Generation of Apps.” OpenAI, 25 Mar. 2021. Web.

    Rethans, John. “So You Want to Monetize Your APIs?” APIs and Digital Transformation, 29 June 2018. Web.

    Bibliography – Automation as a Service

    Salyer, Patrick. “API Stack: The Billion Dollar Opportunities Redefining Infrastructure, Services & Platforms.” Forbes, 4 May 2021. Accessed 27 Oct. 2021.

    staff. “RapidAPI Raises $60M for Expansion of API Platform.” InsideHPC, 21 Apr. 2021. Web.

    Taulli, Tom. “API Economy: Is It The Next Big Thing?” Forbes, 18 Jan. 2021. Accessed 5 May 2021.

    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.

    Review and Improve Your IT Policy Library

    • Buy Link or Shortcode: {j2store}193|cart{/j2store}
    • member rating overall impact (scale of 10): 9.3/10 Overall Impact
    • member rating average dollars saved: $34,724 Average $ Saved
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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

    Build an IT Risk Management Program

    • Buy Link or Shortcode: {j2store}192|cart{/j2store}
    • member rating overall impact (scale of 10): 8.3/10 Overall Impact
    • member rating average dollars saved: $31,532 Average $ Saved
    • member rating average days saved: 17 Average Days Saved
    • Parent Category Name: IT Governance, Risk & Compliance
    • Parent Category Link: /it-governance-risk-and-compliance
    • Risk is unavoidable. Without a formal program to manage IT risk, you may be unaware of your severest IT risks.
    • The business could be making decisions that are not informed by risk.
    • Reacting to risks AFTER they occur can be costly and crippling, yet it is one of the most common tactics used by IT departments.

    Our Advice

    Critical Insight

    • IT risk is business risk. Every IT risk has business implications. Create an IT risk management program that shares accountability with the business.

    Impact and Result

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

    Build an IT Risk Management Program Research & Tools

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

    1. Build an IT Risk Management Program – A holistic approach to managing IT risks within your organization and involving key business stakeholders.

    Gain business buy-in to understanding the key IT risks that could negatively impact the organization and create an IT risk management program to properly identify, assess, respond, monitor, and report on those risks.

    • Build an IT Risk Management Program – Phases 1-3

    2. Risk Management Program Manual – A single source of truth for the risk management program to exist and be updated to reflect changes.

    Leverage this Risk Management Program Manual to ensure that the decisions around how IT risks will be governed and managed can be documented in a single source accessible by those involved.

    • Risk Management Program Manual

    3. Risk Register & Risk Costing Tool – A set of tools to document identified risk events. Assess each risk event and consider the appropriate response based on your organization’s threshold for risk.

    Engage these tools in your organization if you do not currently have a GRC tool to document risk events as they relate to the IT function. Consider the best risk response to high severity risk events to ensure all possible situations are considered.

    • Risk Register Tool
    • Risk Costing Tool

    4. Risk Event Action Plan and Risk Report – A template to document the chosen risk responses and ensure accountable owners agree on selected response method.

    Establish clear guidelines and responses to risk events that will leave your organization vulnerable to unwanted threats. Ensure risk owners have agreed to the risk responses and are willing to take accountability for that response.

    • Risk Event Action Plan
    • Risk Report

    Infographic

    Workshop: Build an IT Risk Management Program

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

    1 Review IT Risk Fundamentals and Governance

    The Purpose

    To assess current risk management maturity, develop goals, and establish IT risk governance.

    Key Benefits Achieved

    Identified obstacles to effective IT risk management.

    Established attainable goals to increase maturity.

    Clearly laid out risk management accountabilities and responsibilities for IT and business stakeholders.

    Activities

    1.1 Assess current program maturity

    1.2 Complete RACI chart

    1.3 Create the IT risk council

    1.4 Identify and engage key stakeholders

    1.5 Add organization-specific risk scenarios

    1.6 Identify risk events

    Outputs

    Maturity Assessment

    Risk Management Program Manual

    Risk Register

    2 Identify IT Risks

    The Purpose

    Identify and assess all IT risks.

    Key Benefits Achieved

    Created a comprehensive list of all IT risk events.

    Risk events prioritized according to risk severity – as defined by the business.

    Activities

    2.1 Identify risk events (continued)

    2.2 Augment risk event list using COBIT 5 processes

    2.3 Determine the threshold for (un)acceptable risk

    2.4 Create impact and probability scales

    2.5 Select a technique to measure reputational cost

    2.6 Conduct risk severity level assessment

    Outputs

    Finalized List of IT Risk Events

    Risk Register

    Risk Management Program Manual

    3 Identify IT Risks (continued)

    The Purpose

    Prioritize risks, establish monitoring responsibilities, and develop risk responses for top risks.

    Key Benefits Achieved

    Risk monitoring responsibilities are established.

    Risk response strategies have been identified for all key risks.

    Activities

    3.1 Conduct risk severity level assessment

    3.2 Document the proximity of the risk event

    3.3 Conduct expected cost assessment

    3.4 Develop key risk indicators (KRIs) and escalation protocols

    3.5 Root cause analysis

    3.6 Identify and assess risk responses

    Outputs

    Risk Register

    Risk Management Program Manual

    Risk Event Action Plans

    4 Monitor, Report, and Respond to IT Risk

    The Purpose

    Assess and select risk responses for top risks and effectively communicate recommendations and priorities to the business.

    Key Benefits Achieved

    Thorough analysis has been conducted on the value and effectiveness of risk responses for high severity risk events.

    Authoritative risk response recommendations can be made to senior leadership.

    A finalized Risk Management Program Manual is ready for distribution to key stakeholders.

    Activities

    4.1 Identify and assess risk responses

    4.2 Risk response cost-benefit analysis

    4.3 Create multi-year cost projections

    4.4 Review techniques for embedding risk management in IT

    4.5 Finalize the Risk Report and Risk Management Program Manual

    4.6 Transfer ownership of risk responses to project managers

    Outputs

    Risk Report

    Risk Management Program Manual

    Further reading

    Build an IT Risk Management Program

    Mitigate the IT risks that could negatively impact your organization.

    Table of Contents

    3 Executive Brief

    4 Analyst Perspective

    5 Executive Summary

    19 Phase 1: Review IT Risk Fundamentals & Governance

    43 Phase 2: Identify and Assess IT Risk

    74 Phase 3: Monitor, Communicate, and Respond to IT Risk

    102 Appendix

    108 Bibliography

    Build an IT Risk Management Program

    Mitigate the IT risks that could negatively impact your organization.

    EXECUTIVE BRIEF

    Analyst Perspective

    Siloed risks are risky business for any enterprise.

    Photo of Valence Howden, Principal Research Director, CIO Practice.
    Valence Howden
    Principal Research Director, CIO Practice
    Photo of Brittany Lutes, Senior Research Analyst, CIO Practice.
    Brittany Lutes
    Senior Research Analyst, CIO Practice

    Risk is an inherent part of life but not very well understood or executed within organizations. This has led to risk being avoided or, when it’s implemented, being performed in isolated siloes with inconsistencies in understanding of impact and terminology.

    Looking at risk in an integrated way within an organization drives a truer sense of the thresholds and levels of risks an organization is facing – making it easier to manage and leverage risk while reducing risks associated with different mitigation responses to the same risk events.

    This opens the door to using risk information – not only to prevent negative impacts but as a strategic differentiator in decision making. It helps you know which risks are worth taking, driving strong positive outcomes for your organization.

    Executive Summary

    Your Challenge

    IT has several challenges when it comes to addressing risk management:

    • Risk is unavoidable. Without a formal program to manage IT risk, you may be unaware of your severest IT risks.
    • The business could be making decisions that are not informed by risk.
    • Reacting to risks after they occur can be costly and crippling, yet it is one of the most common tactics used by IT departments.

    Common Obstacles

    Many IT organizations realize these obstacles:

    • IT risks and business risks are often addressed separately, causing inconsistencies in the approach.
    • Security risk receives such a high profile that it often eclipses other important IT risks, leaving the organization vulnerable.
    • Failing to include the business in IT risk management leaves IT leaders too accountable; the business must have accountability as well.

    Info-Tech’s Approach

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

    Info-Tech Insight

    IT risk is business risk. Every IT risk has business implications. Create an IT risk management program that shares accountability with the business.

    Ad hoc approaches to managing risk fail because…

    If you are like the majority of IT departments, you do not have a consistent and comprehensive strategy for managing IT risk.

    1. Ad hoc risk management is reactionary.
    2. Ad hoc risk management is often focused only on IT security.
    3. Ad hoc risk management lacks alignment with business objectives.

    The results:

    • Increased business risk exposure caused by a lack of understanding of the impact of IT risks on the business.
    • Increased IT non-compliance, resulting in costly settlements and fines.
    • IT audit failure.
    • Ineffective management of risk caused by poor risk information and wrong risk response decisions.
    • Increased unnecessary and avoidable IT failures and fixes.

    58% of organizations still lack a systematic and robust method to actually report on risks (Source: AICPA, 2021)

    Data is an invaluable asset – ensure it’s protected

    Case Studies

    Logo for Cognyte.

    Cognyte, a vendor hired to be a cybersecurity analytics company, had over five billion records exposed in Spring 2021. The data was compromised for four days, providing attackers with plenty of opportunities to obtain personally identifying information. (SecureBlink., 2021 & Security Magazine, 2021)

    Logo for Facebook.

    Facebook, the world’s largest social media giant, had over 533 million Facebook users’ personal data breached when data sets were able to be cross-listed with one another. (Business Insider, 2021 & Security Magazine, 2021)

    Logo for MGM Resorts.

    In 2020, over 10.6 million customers experienced some sort of data being accessible, with 1,300 having serious personally identifying information breached. (The New York Times, 2020)

    Risk management is a business enabler

    Formalize risk management to increase your likelihood of success.

    By identifying areas of risk exposure and creating solutions proactively, obstacles can be removed or circumvented before they become a real problem.

    A certain amount of risk is healthy and can stimulate innovation:

    • A formal risk management strategy doesn’t mean trying to mitigate every possible risk; it means exposing the organization to the right amount of risk.
    • Taking a formal risk management approach allows an organization to thoughtfully choose which risks it is willing to accept.
    • Organizations with high risk management maturity will vault themselves ahead of the competition because they will be aware of which risks to prepare for, which risks to ignore, and which risks to take.

    Only 12% of organizations are using risk as a strategic tool most or all of the time (Source: AICPA, 2021)

    IT risk is enterprise risk

    Accountability for IT risks and the decisions made to address them should be shared between IT and the business.

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

    Follow the steps of this blueprint to build or optimize your IT risk management program

    Cycle of 'Goverance' beginning with '1. Identify', '2. Assess', '3. Respond', '4. Monitor', '5. Report'.

    Start Here

    PHASE 1
    Review IT Risk Fundamentals and Governance
    PHASE 2
    Identify and Assess IT Risk
    PHASE 3
    Monitor, Report, and Respond to IT Risk

    1.1

    Review IT Risk Management Fundamentals

    1.2

    Establish a Risk Governance Framework

    2.1

    Identify IT Risks

    2.2

    Assess and Prioritize IT Risks

    3.1

    Monitor IT Risks and Develop Risk Responses

    3.2

    Report IT Risk Priorities

    Integrate Risk and Use It to Your Advantage

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

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

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

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

    List of 'Integrated Risk Maturity Categories': '1. Context & Strategic Direction', '2. Risk Culture and Authority', '3. Risk Management Process', and '4. Risk Program Optimization'. The five types of a risk in 'Enterprise Risk Management (ERM)': 'IT', 'Security', 'Digital', 'Vendor/TPRM', and 'Other'.

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

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

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

    Blueprint deliverables

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

    Key deliverable:

    Risk Management Program Manual

    Use the tools and activities in each phase of the blueprint to create a comprehensive, customized program manual for the ongoing management of IT risk.

    Sample of the key deliverable, Risk Manangement Program Fund.
    Integrated Risk Maturity Assessment

    Assess the organization's current maturity and readiness for integrated risk management (IRM).

    Sample of the Integrated Risk Maturity Assessment blueprint. Centralized Risk Register

    The repository for all the risks that have been identified within your environment.

    Sample of the Centralized Risk Register blueprint.
    Risk Costing Tool

    A potential cost-benefit analysis of possible risk responses to determine a good method to move forward.

    Sample of the Risk Costing Tool blueprint. Risk Report & Risk Event Action Plan

    A method to report risk severity and hold risk owners accountable for chosen method of responding.

    Samples of the Risk Report & Risk Event Action Plan blueprints.

    Benefit from industry-leading best practices

    As a part of our research process, we used the COSO, ISO 31000, and COBIT 2019 frameworks. Contextualizing IT risk management within these frameworks ensured that our project-focused approach is grounded in industry-leading best practices for managing IT risk.

    Logo for COSO.

    COSO’s Enterprise Risk Management — Integrating with Strategy and Performance addresses the evolution of enterprise risk management and the need for organizations to improve their approach to managing risk to meet the demands of an evolving business environment. (COSO)

    Logo for ISO.

    ISO 31000
    Risk Management can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats, and effectively allocate and use resources for risk treatment. (ISO 31000)

    Logo for COBIT.

    COBIT 2019’s IT functions were used to develop and refine our Ten IT Risk Categories used in our top-down risk identification methodology. (COBIT 2019)

    Abandon ad hoc risk management

    A strong risk management foundation is valuable when building your IT risk management program.

    This research covers the following IT risk fundamentals:

    • Benefits of formalized risk management
    • Key terms and definitions
    • Risk management within ERM
    • Risk management independent of ERM
    • Four key principles of IT risk management
    • Importance of a risk management program manual
    • Importance of buy-in and support from the business

    Drivers of Formalized Risk Management:

    Drivers External to IT
    External Audit Internal Audit
    Mandated by ERM
    Occurrence of Risk Event
    Demonstrating IT’s value to the business Proactive initiative
    Emerging IT risk awareness
    Grassroots Drivers

    Blueprint benefits

    IT Benefits

    • Increased on-time, in-scope, and on-budget completion of IT projects.
    • Meet the business’ service requirements.
    • Improved satisfaction with IT by senior leadership and business units.
    • Fewer resources wasted on fire-fighting.
    • Improved availability, integrity, and confidentiality of sensitive data.
    • More efficient use of resources.
    • Greater ability to respond to evolving threats.

    Business Benefits

    • Reduced operational surprises or failures.
    • Improved IT flexibility when responding to risk events and market fluctuations.
    • Reduced budget uncertainty.
    • Improved ability to make decisions when developing long-term strategies.
    • Improved stakeholder and shareholder confidence.
    • Achieved compliance with external regulations.
    • Competitive advantage over organizations with immature risk management practices.

    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 6 to 8 calls over the course of 3 to 6 months.

    What does a typical GI on this topic look like?

      Phase 1

    • Call #1: Assess current risk maturity and organizational buy-in.
    • Call #2: Establish an IT risk council and determine IT risk management program goals.
    • Phase 2

    • Call #3: Identify the risk categories used to organize risk events.
    • Call #4: Identify the threshold for risk the organization can withstand.
    • Phase 3

    • Call #5: Create a method to assess risk event severity.
    • Call #6: Establish a method to monitor priority risks and consider possible risk responses.
    • Call #7: Communicate risk priorities to the business and implement risk management plan.

    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
    Activities
    Review IT Risk Fundamentals and Governance

    1.1 Assess current program maturity

    1.2 Complete RACI chart

    1.3 Create the IT risk council

    1.4 Identify and engage key stakeholders

    1.5 Add organization-specific risk scenarios

    1.6 Identify risk events

    Identify IT Risks

    2.1 Identify risk events (continued)

    2.2 Augment risk event list using COBIT5 processes

    2.3 Determine the threshold for (un)acceptable risk

    2.4 Create impact and probability scales

    2.5 Select a technique to measure reputational cost

    2.6 Conduct risk severity level assessment

    Assess IT Risks

    3.1 Conduct risk severity level assessment

    3.2 Document the proximity of the risk event

    3.3 Conduct expected cost assessment

    3.4 Develop key risk indicators (KRIs) and escalation protocols

    3.5 Perform root cause analysis

    3.6 Identify and assess risk responses

    Monitor, Report, and Respond to IT Risk

    4.1 Identify and assess risk responses

    4.2 Risk response cost-benefit analysis

    4.3 Create multi-year cost projections

    4.4 Review techniques for embedding risk management in IT

    4.5 Finalize the Risk Report and Risk Management Program Manual

    4.6 Transfer ownership of risk responses to project managers

    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

    Outcomes
    1. Maturity Assessment
    2. Risk Management Program Manual
    1. Finalized List of IT Risk Events
    2. Risk Register
    3. Risk Management Program Manual
    1. Risk Register
    2. Risk Event Action Plans
    3. Risk Management Program Manual
    1. Risk Report
    2. Risk Management Program Manual
    1. Workshop Report
    2. Risk Management Program Manual

    Build an IT Risk Management Program

    Phase 1

    Review IT Risk Fundamentals and Governance

    Phase 1

    • 1.1 Review IT Risk Management Fundamentals
    • 1.2 Establish a Risk Governance Framework

    Phase 2

    • 2.1 Identify IT Risks
    • 2.2 Assess and Prioritize IT Risks

    Phase 3

    • 3.1 Develop Risk Responses and Monitor IT Risks
    • 3.2 Report IT Risk Priorities

    This phase will walk you through the following activities:

    • Gain buy-in from senior leadership
    • Assess current program maturity
    • Identify obstacles and pain points
    • Determine the risk culture of the organization
    • Develop risk management goals
    • Develop SMART project metrics
    • Create the IT risk council
    • Complete a RACI chart

    This phase involves the following participants:

    • IT executive leadership
    • Business executive leadership

    Step 1.1

    Review IT Risk Management Fundamentals

    Activities
    • 1.1.1 Gain buy-in from senior leadership
    • 1.1.2 Assess current program maturity

    This step involves the following participants:

    • IT executive leadership
    • Business executive leadership

    Outcomes of this step

    • Reviewed key IT principles and terminology
    • Gained understanding of the relationship between IT risk management and ERM
    • Introduced to Info-Tech’s IT Risk Management Framework
    • Obtained the support of senior leadership
    Step 1.1 Step 1.2

    Effective IT risk management is possible with or without ERM

    Whether or not your organization has ERM, integrating your IT risk management program with the business is possible.

    Most IT departments find themselves in one of these two organizational frameworks for managing IT risk:

    Core Responsibilities With an ERM Without an ERM
    • Risk Decision-Making Authority
    • Final Accountability
    Senior Leadership Team Senior Leadership Team
    • Risk Governance
    • Risk Prioritization & Communication
    ERM IT Risk Management
    • Risk Identification
    • Risk Assessment
    • Risk Monitoring
    IT Risk Management
    Pro: IT’s risk management responsibilities are defined (assessment schedules, escalation and reporting procedures).
    Con: IT may lack autonomy to implement IT risk management best practices.
    Pro: IT is free to create its own IT risk council and develop customized processes that serve its unique needs.
    Con: Lack of clear reporting procedures and mechanisms to share accountability with the business.

    Info-Tech’s IT risk management framework walks you through each step to achieve risk readiness

    IT Risk Management Framework

    Risk Governance
    • Optimize Risk Management Processes
    • Assess Risk Maturity
    • Measure the Success of the Program
    A cycle surrounds the words 'Business Objectives', referring to the surrounding lists. On the top half is 'Communication', and the bottom is 'Monitoring'. Risk Identification
    • Engage Stakeholder Participation
    • Use Risk Identification Frameworks
    • Compile IT-Related Risks
    Risk Response
    • Establish Monitoring Responsibilities
    • Perform Cost-Benefit Analysis
    • Report Risk Response Actions
    Risk Assessment
    • Establish Thresholds for Unacceptable Risk
    • Calculate Expected Cost
    • Determine Risk Severity & Prioritize IT Risks

    Effective IT risk management benefits

    Obtain the support of the senior leadership team or IT steering committee by communicating how IT risk impacts their priorities.

    Risk management benefits To engage the business...
    IT is compliant with external laws and regulations. Identify the industry or legal legislation and regulations your organization abides by.
    IT provides support for business compliance. Find relevant business compliance issues, and relate compliance failures to cost.
    IT regularly communicates costs, benefits, and risks to the business. Acknowledge the number of times IT and the business miscommunicate critical information.
    Information and processing infrastructure are very secure. Point to past security breaches or potential vulnerabilities in your systems.
    IT services are usually delivered in line with business requirements. Bring up IT services that the business was unsatisfied with. Explain that their inputs in identifying risks are correlated with project quality.
    IT related business risks are managed very well. Make it clear that with no risk tracking process, business processes become exposed and tend to slow down.
    IT projects are completed on time and within budget. Point out late or over-budget projects due to the occurrence of unforeseen risks.

    1.1.1 Gain buy-in from senior leadership

    1-4 hours

    Input: List of IT personnel and business stakeholders

    Output: Buy-in from senior leadership for an IT risk management program

    Materials: Risk Management Program Manual

    Participants: IT executive leadership, Business executive leadership

    The resource demands of IT risk management will vary from organization to organization. Here are typical requirements:

    • Occasional participation of key IT personnel and select business stakeholders in IT risk council meetings (e.g. once every two weeks).
    • Periodic risk assessments (e.g. 4 days, twice a year).
    • IT personnel must take on risk monitoring responsibilities (e.g. 1-4 hours per week).
    • Record the results in the Program Manual sections 3.3, 3.4 and 3.5.

    Record the results in the Risk Management Program Manual.

    Integrated Risk Maturity Assessment

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

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

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

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

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

    1.1.2 Assess current program maturity

    1-4 hours

    Input: List of IT personnel and business stakeholders

    Output: Maturity scores across four key risk categories

    Materials: Integrated Risk Maturity Assessment Tool

    Participants: IT executive leadership, Business executive leadership

    This assessment is intended for frequent use; process completeness should be re-evaluated on a regular basis.

    How to Use This Assessment:

    1. Download the Integrated Risk Management Maturity Assessment Tool.
    2. Tab 2, "Data Entry:" This is a qualitative assessment of your integrated risk management process and is organized by the categories of integrated risk maturity. You will be asked to rate the extent to which you are executing the activities required to successfully complete each phase of the assessment. Use the drop-down menus provided to select the appropriate level of execution for each activity listed.
    3. Tab 3, "Results:" This tab will display your rate of IRM completeness/maturity. You will receive a score for each category as well as an overall score. The results will be displayed numerically, by percentage, and graphically.

    Record the results in the Integrated Risk Maturity Assessment.

    Integrated Risk Maturity Categories

    Semi-circle with colored points indicating four categories.

    1

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

    2

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

    3

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

    4

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

    Step 1.2

    Establish a Risk Governance Framework

    Activities
    • 1.2.1 Identify pain points/obstacles and opportunities
    • 1.2.2 Determine the risk culture of the organization
    • 1.2.3 Develop risk management goals
    • 1.2.4 Develop SMART project metrics
    • 1.2.5 Create the IT risk council
    • 1.2.6 Complete a RACI chart

    This step involves the following participants:

    • IT executive leadership
    • Business executive leadership

    Outcomes of this step

    • Developed goals for the risk management program
    • Established the IT risk council
    • Assigned accountability and responsibility for risk management processes

    Review IT Risk Fundamentals and Governance

    Step 1.1 Step 1.2

    Create an IT risk governance framework that integrates with the business

    Follow these best practices to make sure your requirements are solid:

    1. Self-assess your current approach to IT risk management.
    2. Identify organizational obstacles and set attainable risk management goals.
    3. Track the effectiveness and success of the program using SMART risk management metrics.
    4. Establish an IT risk council tasked with managing IT risk.
    5. Set clear risk management accountabilities and responsibilities for IT and business stakeholders.

    Key metrics for your IT risk governance framework

    Challenges:
    • Key stakeholders are left out or consulted once risks have already occurred.
    • Failure to employ consistent risk identification methodologies results in omitted and unknown risks.
    • Risk assessments do not reflect organizational priorities and may not align with thresholds for acceptable risk.
    • Risk assessment occurs sporadically or only after a major risk event has already occurred.
    Key metrics:
    • Number of risk management processes done ad hoc.
    • Frequency that IT risk appears as an agenda item at IT steering committee meetings.
    • Percentage of IT employees whose performance evaluations reflect risk management objectives.
    • Percentage of IT risk council members who are trained in risk management activities.
    • Number of open positions in the IT risk council.
    • Cost of risk management program operations per year.

    Info-Tech Insight

    Metrics provide the foundation for determining the success of your IT risk management program and ensure ongoing funding to support appropriate risk responses.

    IT risk management success factors

    Support and sponsorship from senior leadership

    IT risk management has more success when initiated by a member of the senior leadership team or the board, rather than emerging from IT as a grassroots initiative.

    Sponsorship increases the likelihood that risk management is prioritized and receives the necessary resources and attention. It also ensures that IT risk accountability is assumed by senior leadership.

    Risk culture and awareness

    A risk-aware organizational culture embraces new policies and processes that reflect a proactive approach to risk.

    An organization with a risk-aware culture is better equipped to facilitate communication vertically within the organization.

    Risk awareness can be embedded by revising job descriptions and performance assessments to reflect IT risk management responsibilities.

    Organization size

    Smaller organizations can often institute a mature risk management program much more quickly than larger organizations.

    It is common for key personnel within smaller organizations to be responsible for multiple roles associated with risk management, making it easier to integrate IT and business risk management.

    Larger organizations may find it more difficult to integrate a more complex and dispersed network of individuals responsible for various risk management responsibilities.

    1.2.1 Identify obstacles and pain points

    1-4 hours

    Input: Integrated Risk Maturity Assessment

    Output: Obstacles and pain points identified

    Materials: IT Risk Management Success Factors

    Participants: IT executive leadership, Business executive leadership

    Anticipate potential challenges and “blind spots” by determining which success factors are missing from your current situation.

    Instructions:

    1. List the potential obstacles and missing success factors that you must overcome to effectively manage IT risk and build a risk management program.
    2. Consider some opportunities that could be leveraged to increase the success of this program.
    3. Use this list in Activity 1.2.3 to develop program goals.

    Risk Management

    Replace the example pain points and opportunities with real scenarios in your organization.

    Pain Points/Obstacles
    • Lack of leadership buy-in
    • Skills and understanding around risk management within IT
    • Skills and understanding around risk management within the organization
    • Lack of a defined risk management posture
    Opportunities
    • Changes in regulations related to risk
    • Organization moving toward an integrated risk management program
    • Ability to leverage lessons learned from similar companies
    • Strong process management and adherence to policies by employees in the organization

    1.2.2 Determine the risk culture of your organization

    1-3 hours

    Determine how your organization fits the criteria listed below. Descriptions and examples do not have to match your organization perfectly.

    Risk Tolerant
    • You have no compliance requirements.
    • You have no sensitive data.
    • Customers do not expect you to have strong security controls.
    • Revenue generation and innovative products take priority and risk is acceptable.
    • The organization does not have remote locations.
    • It is likely that your organization does not operate within the following industries:
      • Finance
      • Health care
      • Telecom
      • Government
      • Research
      • Education
    Moderate
    • You have some compliance requirements, e.g.:
      • HIPAA
      • PIPEDA
    • You have sensitive data, and are required to retain records.
    • Customers expect strong security controls.
    • Information security is visible to senior leadership.
    • The organization has some remote locations.
    • Your organization most likely operates within the following industries:
      • Government
      • Research
      • Education
    Risk Averse
    • You have multiple, strict compliance and/or regulatory requirements.
    • You house sensitive data, such as medical records.
    • Customers expect your organization to maintain strong and current security controls.
    • Information security is highly visible to senior management and public investors.
    • The organization has multiple remote locations.
    • Your organization operates within the following industries:
      • Finance
      • Healthcare
      • Telecom

    Be aware of the organization’s attitude towards risk

    Risk culture is an organization’s attitude towards taking risks. This attitude manifests itself in two ways:

    One element of risk culture is what levels of risk the organization is willing to accept to pursue its objectives and what levels of risk are deemed unacceptable. This is often called risk appetite.
    Risk tolerant

    Risk-tolerant organizations embrace the potential of accelerating growth and the attainment of business objectives by taking calculated risks.

    Risk averse

    Risk-averse organizations prefer consistent, gradual growth and goal attainment by embracing a more cautious stance toward risk.

    The other component of risk culture is the degree to which risk factors into decision making.
    Risk conscious

    Risk-conscious organizations place a high priority on being aware of all risks impacting business objectives, regardless of whether they choose to accept or respond to those risks.

    Unaware

    Organizations that are largely unaware of the impact of risk generally believe there are few major risks impacting business objectives and choose to invest resources elsewhere.

    Info-Tech Insight

    Organizations typically fall in the middle of these spectrums. While risk culture will vary depending on the industry and maturity of the organization, a culture with a balanced risk appetite that is extremely risk conscious is able to make creative, dynamic decisions with reasonable limits placed on risk-related decision making.

    1.2.3 Develop goals for the IT risk management program

    1-4 hours

    Input: Integrated Risk Maturity Assessment, Risk Culture, Pain Points and Opportunities

    Output: Goals for the IT risk management program

    Materials: Risk Management Program Manual

    Participants: IT executive leadership, Business executive leadership

    Translate your maturity assessment and knowledge about organizational risk culture, potential obstacles, and success factors to develop goals for your IT risk management program.

    Instructions:

    1. In the Risk Management Program Manual, revise, replace, or add to the high-level goals provided in section 2.4.
    2. Make sure that you have three to five high-level goals that reflect the current and targeted maturity of IT risk management processes.
    3. Integrate potential obstacles, pain points, and insights from the organization’s risk culture.

    Record the results in the Risk Management Program Manual.

    1.2.4 Develop SMART project metrics

    1-3 hours

    Create metrics for measuring the success of the IT risk management program.

    Ensure that all success metrics are SMART Instructions
    1. Document a list of appropriate metrics to assess the success of the IT risk management program on a whiteboard.
    2. Use the sample metrics listed in the table on the next slide as a starting point.
    3. Fill in the chart to indicate the:
      1. Name of the success metric
      2. Method for measuring success
      3. Baseline measurement
      4. Target measurement
      5. Actual measurements at various points throughout the process of improving the risk management program
      6. A deadline for each metric to meet the target measurement
    Strong Make sure the objective is clear and detailed.
    Measurable Objectives are measurable if there are specific metrics assigned to measure success. Metrics should be objective.
    Actionable Objectives become actionable when specific initiatives designed to achieve the objective are identified.
    Realistic Objectives must be achievable given your current resources or known available resources.
    Time-Bound An objective without a timeline can be put off indefinitely. Furthermore, measuring success is challenging without a timeline.

    1.2.4 Develop SMART project metrics (continued)

    1-3 hours

    Attach metrics to your goals to gauge the success of the IT risk management program.

    Replace the example metrics with accurate KPIs or metrics for your organization.

    Sample Metrics
    Name Method Baseline Target Deadline Checkpoint 1 Checkpoint 2 Final
    Number of risks identified (per year) Risk register 0 100 Dec. 31
    Number of business units represented (risk identification) Meeting minutes 0 5 Dec. 31
    Frequency of risk assessment Assessments recorded in risk management program manual 0 2 per year Year 2
    Percentage of identified risk events that undergo expected cost assessment Ratio of risks assessed in the risk costing tool to risks assessed in the risk register 0 20% Dec. 31
    Number of top risks without an identified risk response Risk register 5 0 March 1
    Cost of risk management program operations per year Meeting frequency and duration, multiplied by the cost of participation $2,000 $5,000 Dec. 31

    Create the IT risk committee (ITRC)

    Responsibilities of the ITRC:
    1. Formalize risk management processes.
    2. Identify and review major risks throughout the IT department.
    3. Recommend an appropriate risk appetite or level of exposure.
    4. Review the assessment of the impact and likelihood of identified risks.
    5. Review the prioritized list of risks.
    6. Create a mitigation plan to minimize risk likelihood and impact.
    7. Review and communicate overall risk impact and risk management success.
    8. Assign risk ownership responsibilities of key risks to ensure key risks are monitored and risk responses are effectively implemented.
    9. Address any concerns in regards to the risk management program, including, but not limited to, reviewing their risk management duties and resourcing.
    10. Communicate risk reports to senior management annually.
    11. Make any alterations to the committee roster and the individuals’ responsibilities as needed and document changes.
    Must be on the ITRC:
    • CIO
    • CRO (if applicable)
    • Senior Directors
    • Security Officer
    • Head of Operations

    Must be on the ITRC:

    • CFO
    • Senior representation from every business unit impacted by IT risk

    1.2.5 Create the IT risk council

    1-4 hours

    Input: List of IT personnel and business stakeholders

    Output: Goals for the IT risk management program

    Materials: Risk Management Program Manual

    Participants: CIO, CRO (if applicable), Senior Directors, Head of Operations

    Identify the essential individuals from both the IT department and the business to create a permanent committee that meets regularly and carries out IT risk management activities.

    Instructions:

    1. Review sections 3.1 (Mandate) and 3.2 (Agenda and Responsibilities) of the IT Risk Committee Charter, located in the Risk Management Program Manual. Make any necessary revisions.
    2. In section 3.3, document how frequently the council is scheduled to meet.
    3. In section 3.4, document members of the IT risk council.
    4. Obtain sign-off for the IT risk council from the CIO or another member of the senior leadership team in section 3.5 of the manual.

    Record the results in the Risk Management Program Manual.

    1.2.6 Complete RACI chart

    1-3 hours

    A RACI diagram is a useful visualization that identifies redundancies and ensures that every role, project, or task has an accountable party.

    RACI is an acronym made up of four participatory roles: Instructions
    1. Use the template provided on the following slide, and add key stakeholders who do not appear and are relevant for your organization.
    2. For each activity, assign each stakeholder a letter.
    3. There must be an accountable party for each activity (every activity must have an “A”).
    4. For activities that do not apply to a particular stakeholder, leave the space blank.
    5. Once the chart is complete, copy/paste it into section 4.1 of the Risk Management Program Manual.
    Responsible Stakeholders who undertake the activity.
    Accountable Stakeholders who are held responsible for failure or take credit for success.
    Consulted Stakeholders whose opinions are sought.
    Informed Stakeholders who receive updates.

    1.2.6 Complete RACI chart (continued)

    1-3 hours

    Assign risk management accountabilities and responsibilities to key stakeholders:

    Stakeholder Coordination Risk Identification Risk Thresholds Risk Assessment Identify Responses Cost-Benefit Analysis Monitoring Risk Decision Making
    ITRC A R I R R R A C
    ERM C I C I I I I C
    CIO I A A A A A I R
    CRO I R C I R
    CFO I R C I R
    CEO I R C I A
    Business Units I C C C
    IT I I I I I I R C
    PMO C C C
    Legend: Responsible Accountable Consulted Informed

    Build an IT Risk Management Program

    Phase 2

    Identify and Assess IT Risk

    Phase 1

    • 1.1 Review IT Risk Management Fundamentals
    • 1.2 Establish a Risk Governance Framework

    Phase 2

    • 2.1 Identify IT Risks
    • 2.2 Assess and Prioritize IT Risks

    Phase 3

    • 3.1 Develop Risk Responses and Monitor IT Risks
    • 3.2 Report IT Risk Priorities

    This phase will walk you through the following activities:

    • Add organization-specific risk scenarios
    • Identify risk events
    • Augment risk event list using COBIT 2019 processes
    • Conduct a PESTLE analysis
    • Determine the threshold for (un)acceptable risk
    • Create a financial impact assessment scale
    • Select a technique to measure reputational cost
    • Create a likelihood scale
    • Assess risk severity level
    • Assess expected cost

    This phase involves the following participants:

    • IT risk council
    • Relevant business stakeholders
    • Representation from senior management team
    • Business Risk Owners

    Step 2.1

    Identify IT Risks

    Activities
    • 2.1.1 Add organization-specific risk scenarios
    • 2.1.2 Identify risk events
    • 2.1.3 Augment risk event list using COBIT 19 processes
    • 2.1.4 Conduct a PESTLE analysis

    This step involves the following participants:

    • IT executive leadership
    • IT Risk Council
    • Business executive leadership
    • Business risk owners

    Outcomes of this step

    • Participation of key stakeholders
    • Comprehensive list of IT risk events
    Identify and Assess IT Risk
    Step 2.1 Step 2.2

    Get to know what you don’t know

    1. Engage the right stakeholders in risk identification.
    2. Employ Info-Tech’s top-down approach to risk identification.
    3. Augment your risk event list using alternative frameworks.
    Key metrics:
    • Total risks identified
    • New risks identified
    • Frequency of updates to the Risk Register Tool
    • Number of realized risk events not identified in the Risk Register Tool
    • Level of business participation in enterprise IT risk identification
      • Number of business units represented
      • Number of meetings attended in person
      • Number of risk reports received

    Info-Tech Insight

    What you don’t know CAN hurt you. How do you identify IT-related threats and vulnerabilities that you are not already aware of? Now that you have created a strong risk governance framework that formalizes risk management within IT and connects it to the enterprise, follow the steps outlined in this section to reveal all of IT’s risks.

    Engage key stakeholders

    Ensure that all key risks are identified by engaging key business stakeholders.

    Benefits of obtaining business involvement during the risk identification stage:
    • You will identify risk events you had not considered or you weren’t aware of.
    • You will identify risks more accurately.
    • Risk identification is an opportunity to raise awareness of IT risk management early in the process.

    Executive Participation:

    • CIO participation is integral when building a comprehensive register of risk events impacting IT.
    • CIOs and IT directors possess a holistic view of all of IT’s functions.
    • CIOs and IT directors are uniquely placed to identify how IT affects other business units and the attainment of business objectives. If applicable, CRO and CTO participation is also critical.

    Prioritizing and Selecting Stakeholders

    1. Reliance on IT services and technologies to achieve business objectives.
    2. Relationship with IT, and willingness to engage in risk management activities.
    3. Unique perspectives, skills, and experiences that IT may not possess.

    Info-Tech Insight

    While IT personnel are better equipped to identify IT risk than anyone, IT does not always have an accurate view of the business’ exposure to IT risk. Strive to maintain a 3 to 1 ratio of IT to non-IT personnel involved in the process.

    Enable IT to target risk holistically

    Take a top-down approach to risk identification to guide brainstorming

    Info-Tech’s risk categories are consistent with a risk identification method called Risk Prompting.

    A risk prompt list is a list that categorizes risks into types or areas. The n10 risk categories encapsulate the services, activities, responsibilities, and functions of most IT departments. Use these categories and the example risk scenarios provided as prompts to guide brainstorming and organize risks.

    Risk Category: High-level groupings that describe risk pertaining to major IT functions. See the following slide for all ten of Info-Tech’s IT risk categories. Risk Scenario: An abstract profile representing common risk groups that are more specific than risk categories. Typically, organizations are able to identify two to five scenarios for each category. Risk Event: Specific threats and vulnerabilities that fall under a particular risk scenario. Organizations are able to identify anywhere between 1 and 20 events for each scenario. See the Appendix of the Risk Management Program Manual for a list of risk event examples.

    Risk Category

    Risk Scenario

    Risk Event

    Compliance Regulatory compliance Being fined for not complying/being aware of a new regulation.
    Externally originated attack Phishing attack on the organization.
    Operational Technology evaluation & selection Partnering with a vendor that is not in compliance with a key regulation.
    Capacity planning Not having sufficient resources to support a DRP.
    Third-Party Risk Vendor management Vendor performance requirements are improperly defined.
    Vendor selection Vendors are improperly selected to meet the defined use case.

    2.1.1 Add organization-specific risk scenarios

    1-3 hours

    Review Info-Tech’s ten IT risk categories and add risk scenarios to the examples provided.

    IT Reputational
    • Negative PR
    • Consumers writing negative reviews
    • Employees writing negative reviews
    IT Financial
    • Stock prices drop
    • Value of the organization is reduced
    IT Strategic
    • Organization prioritizes innovation but remains focused on operational
    • Unable to access data to support strategic initiative
    Operational
    • Enterprise architecture
    • Technology evaluation and selection
    • Capacity planning
    • Operational errors
    Availability
    • Power outage
    • Increased data workload
    • Single source of truth
    • Lacking knowledge transfer processes for critical tasks
    Performance
    • Network failure
    • Service levels not being met
    • Capacity overload
    Compliance
    • Regulatory compliance
    • Standards compliance
    • Audit compliance
    Security
    • Malware
    • Internally originated attack
    Third Party
    • Vendor selection
    • Vendor management
    • Contract termination
    Digital
    • No back-up process if automation fails

    2.1.2 Identify risk events

    1-4 hours

    Input: IT risk categories

    Output: Risk events identified and categorized

    Materials: Risk Register Tool

    Participants: IT risk council, Relevant business stakeholders, Representation from senior management team, Business risk owners, CRO (if applicable)

    Use Info-Tech’s IT risk categories and scenarios to brainstorm a comprehensive list of IT-related threats and vulnerabilities impacting your organization.

    Instructions:

    1. Document risk events in the Risk Register Tool.
    2. List risk scenarios (organized by risk category) in the Risk Events/Threats column.
    3. Disseminate the list to key stakeholders who were unable to participate and solicit their feedback.
      • Consult the RACI chart located in section 4.1 of the Risk Management Program Manual.
    4. Attack one scenario at a time, exhausting all realistic risk events for that grouping before moving onto the next scenario. Each scenario should take approximately 45-60 minutes.

    Tip: If disagreement arises regarding whether a specific risk event is relevant to the organization or not and it cannot be resolved quickly, include it in the list. The applicability of these risks will become apparent during the assessment process.

    Record the results in the Risk Register Tool.

    2.1.3 Augment the risk event list using COBIT 2019 processes (Optional)

    1-3 hours

    Other industry-leading frameworks provide alternative ways of conceptualizing the functions and responsibilities of IT and may help you uncover additional risk events.

    1. Managed IT Management Framework
    2. Managed Strategy
    3. Managed Enterprise Architecture
    4. Managed Innovation
    5. Managed Portfolio
    6. Managed Budget and Costs
    7. Managed Human Resources
    8. Managed Relationships
    9. Managed Service Agreements
    10. Managed Vendors
    11. Managed Quality
    12. Managed Risk
    13. Managed Security
    14. Managed Data
    15. Managed Programs
    16. Managed Requirements Definition
    17. Managed Solutions Identification and Build
    18. Managed Availability and Capacity
    19. Managed Organizational Change Enablement
    20. Managed IT Changes
    1. Managed IT Change Acceptance and Transitioning
    2. Managed Knowledge
    3. Managed Assets
    4. Managed Configuration
    5. Managed Projects
    6. Managed Operations
    7. Managed Service Requests and Incidents
    8. Managed Problems
    9. Managed Continuity
    10. Managed Security Services
    11. Managed Business Process Controls
    12. Managed Performance and Conformance Monitoring
    13. Managed System of Internal Control
    14. Managed Compliance with External Requirements
    15. Managed Assurance
    16. Ensured Governance Framework Setting and Maintenance
    17. Ensured Benefits Delivery
    18. Ensured Risk Optimization
    19. Ensured Resource Optimization
    20. Ensured Stakeholder Engagement

    Instructions:

    1. Review COBIT 2019’s 40 IT processes and identify additional risk events.
    2. Match risk events to the corresponding risk category and scenario and add them to the Risk Register Tool.

    2.1.4 Finalize your risk register by conducting a PESTLE analysis (Optional)

    1-3 hours

    Explore alternative identification techniques to incorporate external factors and avoid “groupthink.”

    Consider the External Environment – PESTLE Analysis

    Despite efforts to encourage equal participation in the risk identification process, key risks may not have been shared in previous exercises.

    Conduct a PESTLE analysis as a final safety net to ensure that all key risk events have been identified.

    Avoid “Groupthink” – Nominal Group Technique

    The Nominal Group Technique uses the silent generation of ideas and an enforced “safe” period of time where ideas are shared but not discussed to encourage judgement-free idea generation.

    • Ideas are generated silently and independently.
    • Ideas are then shared and documented; however, discussion is delayed until all of the group’s ideas have been recorded.
    • Idea generation can occur before the meeting and be kept anonymous.

    Note: Employing either of these techniques will lengthen an already time-consuming process. Only consider these techniques if you have concerns regarding the homogeneity of the ideas being generated or if select individuals are dominating the exercise.

    List the following factors influencing the risk event:
    • Political factors
    • Economic factors
    • Social factors
    • Technological factors
    • Legal factors
    • Environmental factors
    'PESTLE Analysis' presented as a wheel with the acronym's meanings surrounding the title. 'Political Factors', 'Economic Factors', 'Social Factors', 'Technological Factors', 'Legal Factors', and 'Environmental Factors'.

    Step 2.2

    Assess and Prioritize IT Risks

    Activities
    • 2.2.1 Determine the threshold for (un)acceptable risk
    • 2.2.2 Create a financial impact assessment scale
    • 2.2.3 Select a technique to measure reputational cost
    • 2.2.4 Create a likelihood scale
    • 2.2.5 Risk severity level assessment
    • 2.2.6 Expected cost assessment

    This step involves the following participants:

    • IT risk council
    • Relevant business stakeholders
    • Representation from senior management team
    • Business risk owners

    Outcomes of this step

    • Business-approved thresholds for unacceptable risk
    • Completed Risk Register Tool with risks prioritized according to severity
    • Expected cost calculations for high-priority risks

    Identify and Assess IT Risk

    Step 2.1 Step 2.2

    Reveal the organization’s greatest IT threats and vulnerabilities

    1. Establish business-approved risk thresholds for acceptable and unacceptable risk.
    2. Conduct a streamlined assessment of all risks to separate acceptable and unacceptable risks.
    3. Perform a deeper, cost-based assessment of prioritized risks.
    Key metrics:
    • Frequency of IT risk assessments
      • (Annually, bi-annually, etc.)
    • Assessment accuracy
      • Percentage of risk assessments that are substantiated by later occurrences or testing
      • Ratio of cumulative actual costs to expected costs
    • Assessment consistency
      • Percentage of risk assessments that are substantiated by third-party audit
    • Assessment rigor
      • Percentage of identified risk events that undergo first-level assessment (severity scores)
      • Percentage of identified risk events that undergo second-level assessment (expected cost)
    • Stakeholder oversight and participation
      • Level of executive participation in IT risk assessment (attend in person, receive report, etc.)
      • Number of business stakeholder reviews per risk assessment

    Info-Tech Insight

    Risk is money. It’s impossible to make intelligent decisions about risks without knowing what their financial impact will be.

    Review risk assessment fundamentals

    Risk assessment provides you with the raw materials to conduct an informed cost-benefit analysis and make robust risk response decisions.

    In this section, you will be prioritizing your IT risks according to their risk severity, which is a reflection of their expected cost.

    Calculating risk severity

    How much you expect a risk event to cost if it were to occur:

    Likelihood of Risk Impact

    e.g. $250,000 or “High”

    X

    Calibrated by how likely the risk is to occur:

    Likelihood of Risk Occurrence

    e.g. 10% or “Low”

    =

    Produces a dollar value or “severity level” for comparing risks:

    Risk Severity

    e.g. $25,000 or “Medium”
    Which must be evaluated against thresholds for acceptable risk and the cost of risk responses.

    Risk Tolerance
    Risk Response

    CBA
    Cost-benefit analysis

    Maintain the engagement of key stakeholders in the risk assessment process

    1

    Engage the Business During Assessment Process

    Asking business stakeholders to make significant contributions to the assessment exercise may be unrealistic (particularly for members of the senior leadership team, other than the CIO).

    Ensure that they work with you to finalize thresholds for acceptable or unacceptable risk.

    2

    Verify the Risk Impact and Assessment

    If IT has ranked risk events appropriately, the business will be more likely to offer their input. Share impact and likelihood values for key risks to see if they agree with the calculated risk severity scores.

    3

    Identify Where the Business Focuses Attention

    While verifying, pay attention to the risk events that the business stresses as key risks. Keep these risks in mind when prioritizing risk responses as they are more likely to receive funding.

    Try to communicate the assessments of these risk events in terms of expected cost to attract the attention of business leaders.

    Info-Tech Insight

    If business executives still won’t provide the necessary information to update your initial risk assessments, IT should approach business unit leaders and lower-level management. Lean on strong relationships forged over time between IT and business managers or supervisors to obtain any additional information.

    Info-Tech recommends a two-level approach to risk assessment

    Review the two levels of risk assessment offered in this blueprint.

    Risk severity level assessment (mandatory)

    1

    Information

    Number of risks: Assess all risk events identified in Phase 1.
    Units of measurement: Use customized likelihood and impact “levels.”
    Time required: One to five minutes per risk event.

    Assess Likelihood

    Negligible
    Low
    Moderate
    High
    Very High

    X

    Assess Likelihood

    Negligible
    Low
    Moderate
    High
    Very High

    =

    Output


    Risk Security Level:

    Moderate

    Example of a risk severity level assessment chart.
    Chart risk events according to risk severity as this allows you to organize and prioritize IT risks.

    Assess all of your identified risk events with a risk severity-level assessment.

    • By creating a likelihood and impact assessment scale divided into three to nine “levels” (sometimes referred to as “buckets”), you can evaluate every risk event quickly while being confident that risks are being assessed accurately.
    • In the following activities, you will create likelihood and impact scales that align with your organizational risk appetite and tolerance.
    • Severity-level assessment is a “first pass” of your risk list, revealing your organization’s most severe IT risks, which can be assessed in greater detail by incorporating expected cost into your evaluation.

    Info-Tech recommends a two-level approach to risk assessment (continued)

    Expected cost assessment (optional)

    2

    Information

    Number of risks: Only assess high-priority risks revealed by severity-level assessment.
    Units of measurement: Use actual likelihood values (%) and impact costs ($).
    Time required: 10-20 minutes per risk event.

    Assess Likelihood

    15%

    Moderate

    X

    Assess Likelihood

    $100,000

    High

    =

    Output


    Expected Cost:

    $15,000

    Expected cost is useful for conducting cost-benefit analysis and comparing IT risks to non-IT risks and other budget priorities for the business.

    Conduct expected cost assessments for IT’s greatest risks.

    For risk events warranting further analysis, translate risk severity levels into hard expected-cost numbers.

    Why conduct expected cost assessments?
    • Expected cost represents how much you would expect to pay in an average year for each risk event.
    • Communicate risk priorities to the business in language they can understand.
    • While risk severity levels are useful for comparing one IT risk to another, expected cost data allows the business to compare IT risks to non-IT risks that may not use the same scales.
    Why is expected cost assessment optional?
    • Determining robust likelihood values and precise impact estimates can be challenging and time consuming.
    • Some risk events may require extensive data gathering and industry analysis.

    Implement and leverage a centralized risk register

    The purpose of the risk register is to act as the repository for all the risks that have been identified within your environment.

    Use this tool to:

    1. Collect and maintain a repository for all IT risk events impacting the organization and relevant information for each risk.
      • Capture all relevant IT risk information in one location.
      • Organize risk identification and assessment information for transparent risk management, stakeholder review, and/or internal audit.
    2. Calculate risk severity scores to prioritize risk events and determine which risks require a risk response.
      • Separate acceptable and unacceptable risks (as determined by the business).
      • Rank risks based on severity levels.
    3. Assess risk responses and calculate residual risk.
      • Evaluate the effect that proposed risk response actions will have on top risk events and quantify residual risk magnitude.
      • This step will be completed in section 3.1

    2.2.1 Determine the threshold for (un)acceptable risk

    1-4 hours

    Input: Risk events, Risk appetite

    Output: Threshold for risk identified

    Materials: Risk Register Tool, Risk Management Program Manual

    Participants: IT risk council, Relevant business stakeholders, Representation from senior management team, Business risk owner

    Instructions:

    There are times when the business needs to know about IT risks with high expected costs.

    1. Create an expected cost threshold that defines what constitutes an acceptable and unacceptable risk for the organization. This figure should be a concrete dollar value. In the next exercises, you will build risk impact and likelihood scales with this value in mind, ensuring that “high” or “extreme” risks are immediately communicated to senior leadership.
    2. Do not consider IT budget restrictions when developing this number. The acceptable risk threshold should reflect the business’ tolerance/appetite for risk.

    This threshold is typically based on the organization’s ability to absorb financial losses, and its tolerance/appetite towards risk.

    If your organization has ERM, adopt the existing acceptability threshold.

    Record this threshold in section 5.3 of the Risk Management Program Manual

    2.2.2 Create a financial impact assessment scale

    1-4 hours

    Input: Risk events, Risk threshold

    Output: Financial impact scale created

    Materials: Risk Register Tool, Risk Management Program Manual

    Participants: IT risk council, Relevant business stakeholders, Representation from senior management team, Business risk owner

    Instructions:

    1. Create a scale to assess the financial impact of risk events.
      • Typically, risk impacts are assessed on a scale of 1-5; however, some organizations may prefer to assess risks using 3, 4, 7, or 9-point scales.
    2. Ensure that the unacceptable risk threshold is reflected in the scale.
      • In the example provided, the unacceptable risk threshold ($100,000) is represented as “High” on the impact scale.
    3. Attach labels to each point on the scale. Effective labels will easily distinguish between risks on either side of the unacceptable risk threshold.

    Record the risk impact scale in section 5.3 of the Risk Management Program Manual

    Convert project overruns and service outages into costs

    Use the tables below to quickly convert impacts typically measured in units of time to financial cost. Replace the values in the table with those that reflect your own costs.

    • While project overruns and service outages may have intangible impacts beyond the unexpected costs stemming from paying employees and lost revenue (such as adding complexity to project management and undermining the business’ confidence in IT), these measurements will provide adequate impact estimations for risk assessment.
    • Remember, complex risk events can be analyzed further with an expected cost assessment.
    Project Overruns Scale for the use of cost assessment with dollar amounts associated with impact levels. '$250,000 - Extreme', '$100,000 - High', '$60,000 - Moderate', '$35,000 - Low', '$10,000 - Negligible'.

    Project

    Time (days)

    20 days

    Number of employees

    8

    Average cost per employee (per day)

    $300

    Estimated cost

    $48,000
    Service Outages

    Service

    Time (hours)

    4 hours

    Lost revenue (per hour)

    $10,000

    Estimated cost

    $40,000

    Impact scale

    Low

    2.2.3 Select a technique to measure reputational cost (1 of 3)

    1-3 hours

    Realized risk events may have profound reputational costs that do not immediately impact your bottom line.

    Reputational cost can take several forms, including the internal and external perception of:
    1. Brand likeability
    2. Product quality
    3. Leadership capability
    4. Social responsibility

    Based on your industry and the nature of the risk, select one of the three techniques described in this section to incorporate reputational costs into your risk assessment.

    Technique #1 – Use financial indicators:

    For-profit companies typically experience reputational loss as a gradual decline in the strength of their brand, exclusion from industry groups, or lost revenue.

    If possible, use these measures to put a price on reputational loss:

    • Lost revenue attributable to reputation loss
    • Loss of market share attributable to reputation loss
    • Drops in share price attributable to reputation loss (for public companies)

    Match this dollar value to the corresponding level on the impact scale created in Activity 2.2.2.

    • If you are not able to effectively translate all reputational costs into financial costs, proceed to techniques 2 and 3 on the following slides.

    2.2.3 Select a technique to measure reputational cost (2 of 3)

    1-3 hours
    It is common for public sector or not-for-profit organizations to have difficulty putting a price tag on intangible reputational costs.
    • For example, a government organization may be unable to directly quantify the cost of losing the confidence and/or support of the public.
    • A helpful technique is to reframe how reputation is assigned value.
    Technique #2 – Calculate the value of avoiding reputational cost:
    1. Imagine that the particular risk event you are assessing has occurred. Describe the resulting reputational cost using qualitative language.

    For example:

    A data breach, which caused the unsanctioned disclosure of 2,000 client files, has inflicted high reputational costs on the organization. These have impacted the organization in the following ways:

    • Loss of organizational trust in IT
    • IT’s reputation as a value provider to the organization is tarnished
    • Loss of client trust in the organization
    • Potential for a public reprimand of the organization by the government to restore public trust
  • Then, determine (hypothetically) how much money the organization would be willing to spend to prevent the reputational cost from being incurred.
  • Match this dollar value to the corresponding level on the impact scale created in Activity 2.2.2.
  • 2.2.3 Select a technique to measure reputational cost (3 of 3)

    1-3 hours

    If you feel that the other techniques have not reflected reputational impacts in the overall severity level of the risk, create a parallel scale that roughly matches your financial impact scale.

    Technique #3 – Create a parallel scale for reputational impact:

    Visibility is a useful metric for measuring reputational impact. Visibility measures how widely knowledge of the risk event has spread and how negatively the organization is perceived. Visibility has two main dimensions:

    • Internal vs. External
    • Low Amplification vs. High Amplification
    • Internal/External: The further outside of the organization that the risk event is visible, the higher the reputational impact.
      Low/High Amplification: The greater the ability of the actor to communicate and amplify the occurrence of a risk event, the higher the reputational impact.
      After establishing a scale for reputational impact, test whether it reflects the severity of the financial impact levels in the financial impact scale.

    • For example, if the media learns about a recent data breach, does that feel like a $100,000 loss?
    Example:
    Scale for the use of cost assessment  of reputational impact with dimension combinations associated with impact levels. 'External, High Amp, (regulators, lawsuits) - Extreme', 'Internal, High Amp, (CEO) - Low', 'Internal, Low Amp (IT) - Negligible'.

    2.2.4 Create a likelihood scale

    1-3 hours

    Instructions:
    1. Create a scale to assess the likelihood that a risk event will occur over a given period of time.
      • Info-Tech recommends assessing the likelihood that the risk event will occur over a period of one year (the IT risk council should be reassessing the risk event no less than once per year).
    2. Ensure that the likelihood scale contains the same number of levels as the financial impact scale (3, 4, 5, 7, or 9).
    3. The example provided is likely to satisfy most IT departments; however, you may customize the distribution of likelihood values to reflect the organization’s aversion towards uncertainty.
      • For example, an extremely risk-averse organization may consider any risk event with a likelihood greater than 20% to have a “High” likelihood of occurrence.
    4. Attach the same labels used for the financial impact scale (Low, Moderate, High, etc.)

    Record the risk impact scale in section 5.3 of the Risk Management Program Manual

    Scale to assess the likelihood that a risk event will occur. '80-99% - Extreme', '60-79% - High', '40-59% - Moderate' '20-39% - Low', '1-19% - Negligible'.

    Info-Tech Insight

    Note: Info-Tech endorses the use of likelihood values (1-99%) rather than frequency (3 times per year) as a measurement.
    For an explanation of why likelihood values lead to more precise and robust risk assessment, see the Appendix.

    2.2.5 Risk severity level assessment

    6-10 hours

    Input: Risk events identified

    Output: Assessed the likelihood of occurrence and impact for all identified risk events

    Materials: Risk Register Tool

    Participants: IT risk council, Relevant business stakeholders, Representation from senior management team, Business risk owner

    Instructions:

    1. Document the “Risk Category” and “Existing Controls.” in the Risk Register Tool.
      • (See the slide following this activity for tips on identifying existing controls.)
    2. Assign each risk event a likelihood and impact level.
      • Remember, you are assessing the impact that a risk event will have on the organization as a whole, not just on IT.
    3. When assigning a financial impact level to a risk event, factor in the likely number of instances that the event will occur within the time frame for which you are assessing (usually one year).
      • For risk events like third-party service outages that typically occur a few times each year, assign them an impact level that reflects the likelihood of financial impact the risk event will have over the entire year.
      • E.g. If your organization is likely to experience two major service outages next year and each outage costs the organization approximately $15,000, the total financial impact is $30,000.

    Record results in the Risk Register Tool

    2.2.5 Risk severity level assessment (continued)

    Instructions (continued):
    1. Assign a risk owner to non-negligible risk events.
      • For organizations that practice ongoing risk management and frequently reassess their risk portfolio (minimum once per year), risk ownership does not need to be assigned to “Negligible” or low-level risks.
      • View the following slides for advice on how to select a risk owner and information on their responsibilities.
    2. As you input the first few likelihood and impact values, compare them to one another to ensure consistency and accuracy:
      • Is a service outage really twice as impactful as our primary software provider going out of business?
      • Is a data breach far more likely than a ›1 hour web-services outage?
    Tips for Selecting Likelihood Values:

    Does ~10% sound right?

    Test a likelihood estimate by assessing the truth of the following statements:

    • The risk event will likely occur once in the next ten years (if the environment remains nearly identical).
    • If ten organizations existed that were nearly identical to our own, it is likely that one out of ten would experience the risk event this year.

    Screenshot of a risk severity level assessment.

    Identify current risk controls

    Consider how IT is already addressing key risks.

    Types of current risk control

    Tactical controls

    Apply to individual risks only.

    Example: A tactical control for backup/replication failure is faster WAN lines.

    Tactical risk control Strategic controls

    Apply to multiple risks.

    Example: A strategic control for backup/replication failure is implementing formal DR plans.

    Strategic risk control
    Risk event Risk event Risk event

    Screenshot of the column headings on the risk severity level assessment with 'Current Controls' highlighted.
    Consider both tactical and strategic controls already in place when filling out risk event information in the Risk Register Tool.

    Info-Tech Insight

    Identifying existing risk controls (past risk responses) provides a clear picture of the measures already in place to avoid, mitigate, or transfer key risks. This reveals opportunities to improve existing risk controls, or where new strategies are needed, to reduce risk severity levels below business thresholds.

    Assign a risk owner for each risk event

    Designate a member of the IT risk council to be responsible for each risk event.

    Selecting the Appropriate Risk Owner

    Use the following considerations to determine the best owner for each risk:

    • The risk owner should be familiar with the process, project, or IT function related to the risk event.
    • The risk owner should have access to the necessary data to monitor and measure the severity of the risk event.
    • The risk owner’s performance assessment should reflect their ability to demonstrate the ongoing management of their assigned risk events.

    Screenshot of the column headings on the risk severity level assessment with 'Risk Owner' highlighted.

    Risk Owner Responsibilities

    Risk ownership means that an individual is responsible for the following activities:

    • Monitoring the threat or vulnerability for changes in the likelihood of occurrence and/or likely impact.
    • Monitoring changes in the market and external environment that may alter the severity of the risk event.
    • Monitoring changes of closely related risks with interdependencies.
    • Developing and using key risk indicators (KRIs) to measure changes in risk severity.
    • Regularly reporting changes in risk severity to the IT risk council.
    • If necessary, escalating the risk event to other IT risk council personnel or senior management for reassessment.
    • Monitoring risk severity levels for risk events after a risk response has been implemented.

    Use Info-Tech’s Risk Costing Tool to calculate the expected cost of IT’s high-priority risks (optional)

    Sample of the Risk Costing Tool.

    Use this tool to:

    1. Conduct a deeper analysis of severe risks.
      • Determine specific likelihood and financial impact values to communicate the severity of the risk in the Expected Cost tab.
      • Identify the maximum financial impact that the risk event may inflict.
    2. Assess the effectiveness of multiple risk responses for each risk event.
      • Determine how proposed risk events will change the likelihood of occurrence and financial impact of the risk event.
    3. Incorporate risk proximity into your cost-benefit analysis of risk responses.
      • Illustrate how spending decisions will impact the expected cost of the risk event over time.

    2.2.6 Expected cost assessment (optional)

    Assign likelihood and financial impact values to high-priority risks.

    Select risks with these characteristics:

    Strongly consider conducting an expected cost assessment for risk events that meet one or more of the following criteria.

    The risk:

    • Has been assigned to the highest risk severity level.
    • Has exposed the organization previously and had severe implications.
    • Exceeds the organization’s threshold for financial impact.
    • Involves an IT function that is highly visible to the business.
    • Will likely require risk response actions that will exceed current IT budgetary constraints.
    • Is conducive to expected cost assessment:
      • There is general consensus on likelihood estimates.
      • There is general consensus on financial impact estimates.
      • Historical data exists to support estimates.
    Determine which risks require a deeper assessment:

    Info-Tech recommends conducting a second-level assessment for 5-15% of your IT risk register.

    Communicating the expected cost of high-priority risks significantly increases awareness of IT risks by the business.

    Communicating risks to the business using their language also increases the likelihood that risk responses will receive the necessary support and investment


    Record the list of risk events requiring second-level assessment in the Risk Costing Tool.

    • Transfer the likelihood and impact levels for each event into the Risk Costing Tool using data from the Risk Register Tool.

    2.2.6 Expected cost assessment (continued)

    Assign likelihood and financial impact values to high-priority risks.

    Instructions:
    1. Go through the list of prioritized risks in the Risk Costing Tool one by one. Indicate the likelihood and impact level (from the Risk Register Tool) for the risk event being assessed.
    2. Record likelihood values (1-99%) and impact values ($) from participants.
      • Only record values from individuals that indicate they are fairly confident with their estimates.
      • Keep likelihood estimates to values that are multiples of five.
    3. Estimate and record the maximum impact that the risk event could inflict.
      • See Appendix III for information on how the possibility of high-impact scenarios may influence your decision making.
    4. Discuss the estimates provided. Eliminate outliers and retracted estimates.
      • If you are unable to achieve consensus, take the average of the values provided.
    5. If you are having difficulty arriving at a likelihood or impact value, select the median value of the level assigned to the risk during the risk severity level assessment.
      • E.g. Risk event assigned to likelihood level “Moderate” (20-39%). Select a likelihood value of 30%.

    Screenshot of the column headings on the risk severity level assessment with 'Optional Inherent Likelihood Parameters' and 'Optional Inherent Impact Parameters' highlighted.

    Who should participate?
    • Depending on the size of your IT risk council, you may want to consider conducting this exercise in a smaller group.
    • Ideally, you should try to find the right balance between ensuring that the necessary experience and knowledge is in the room while insulating the exercise from outlier opinions, noise, and distractions.

    Evaluate likelihood and impact

    Refine your risk assessment process by developing more accurate measurements of likelihood and impact.

    Intersubjective likelihood

    The goal of the expected cost assessment is to develop robust intersubjective estimates of likelihood and financial impact.

    By aggregating a number of expert opinions of what they deem to be the “correct” value, you will arrive at a collectively determined value that better reflects reality than an individual opinion.

    Example: The Delphi Method

    The Delphi Method is a common technique to produce a judgement that is representative of the collective opinion of a group.

    • Participants are sent a series of sequential questionnaires (typically by email).
    • The first questionnaire asks them what the likelihood, likely impact, and expected cost is for a specific risk event.
    • Data from the questionnaire is compiled and then communicated in a subsequent questionnaire, which encourages participants to restate or revise their estimates given the group’s judgements.
    • With each successive questionnaire, responses will typically converge around a single intersubjective value.
    Justifying Your Estimates:

    When asked to explain the numbers you arrived at during the risk assessment, pointing to an assessment methodology gives greater credibility to your estimates.

    • Assign one individual to take notes during the assessment exercise.
    • Have them document the main rationale behind each value and the level of consensus.

    Info-Tech Insight

    The underlying assumption behind intersubjective forecasting is that group judgements are more accurate than individual judgements. However, this may not be the case at all.

    Sometimes, a single expert opinion is more valuable than many uninformed opinions. Defining whose opinion is valuable and whose is not is an unpleasant exercise; therefore, selecting the right personnel to participate in the exercise is crucially important.

    Build an IT Risk Management Program

    Phase 3

    Monitor, Respond, and Report on IT Risk

    Phase 1

    • 1.1 Review IT Risk Management Fundamentals
    • 1.2 Establish a Risk Governance Framework

    Phase 2

    • 2.1 Identify IT Risks
    • 2.2 Assess and Prioritize IT Risks

    Phase 3

    • 3.1 Develop Risk Responses and Monitor IT Risks
    • 3.2 Report IT Risk Priorities

    This phase will walk you through the following activities:

    • Develop key risk indicators (KRIs) and escalation protocols
    • Establish the reporting schedule
    • Identify and assess risk responses
    • Analyze risk response cost-benefit
    • Create multi-year cost projections
    • Obtain executive approval for risk action plans
    • Socialize the Risk Report
    • Transfer ownership of risk responses to project managers
    • Finalize the Risk Management Program Manual

    This phase involves the following participants:

    • IT risk council
    • Relevant business stakeholders
    • Representation from senior management team
    • Risk business owner

    Step 3.1

    Monitor IT Risks and Develop Risk Responses

    Activities
    • 3.1.1 Develop key risk indicators (KRIs) and escalation protocols
    • 3.1.2 Establish the reporting schedule
    • 3.1.3 Identify and assess risk responses
    • 3.1.4 Risk response cost-benefit analysis
    • 3.1.5 Create multi-year cost projections

    This step involves the following participants:

    • IT risk council
    • Relevant business stakeholders
    • Representation from senior management team
    • Business risk owner

    Outcomes of this step

    • Completed risk event action plans
    • Risk responses identified and assessed for top risks
    • Risk response selected for top risks

    Monitor, Respond, and Report on IT Risk

    Step 3.1 Step 3.2

    Use Info-Tech’s Risk Event Action Plan to manage high-priority risks

    Manage risks in between risk assessments and create a paper trail for key risks that exceed the unacceptable risk threshold. Use a new form for every high-priority risk that requires tracking.

    Risk Event Action Plan Sample of the Risk Event Action Plan deliverable.

    Obtaining sign-off from the senior leadership team or from the ERM office is an important step of the risk management process. The Risk Event Action Plan ensures that high-priority risks are closely monitored and that changes in risk severity are detected and reported.

    Clear documentation is a way to ensure that critical information is shared with management so that they can make informed risk decisions. These reports should be succinct yet comprehensive; depending on time and resources, it is good practice to fill out this form and obtain sign-off for the majority of IT risks.

    3.1.1 Develop key risk indicators (KRIs) and escalation protocols

    The risk owner should be held accountable for monitoring their assigned risks but may delegate responsibility for these tasks.

    Instructions:
    1. Design key risk indicators (KRIs) for risks that measure changes in their severity and document them in the Risk Event Action Plan.
      • See the following slide for examples.
    2. Clearly document the risk owner and the individual(s) carrying out risk monitoring activities (delegates) in the Risk Event Action Plan.

    Note: Examples of KRIs can be found on the following slide.

    What are KRIs?
    • KRIs should be observable metrics that alert the IT risk council and management when risk severity exceeds acceptable risk thresholds.
    • KRIs should serve as tripwires or early-warning indicators that trigger further actions to be taken on the risk.
    • Further actions may include:
      • Escalation to the risk owner (if delegated) or to a member of the senior leadership team.
      • Reporting to the IT risk council or IT steering committee.
      • Reassessment.
      • Updating the risk monitoring schedule.

    Document KRIs, escalation thresholds, and escalation protocols for each risk in a Risk Event Action Plan.

    Developing KRIs for success

    Visualization of KRI development, from the 'Risk Event' to the 'Intermediate Steps' with 'KRI Measurements' to the image of a growing seed.

    Examples of KRIs

    • Number of resources who quit or were fired who had access to critical data
    • Number of risk mitigation initiatives unfunded
    • Changes in time horizon of mitigation implementation
    • Number of employees who did not report phishing attempts
    • Amount of time required to get critical operations access to necessary data
    • Number of days it takes to implement a new regulation or compliance control

    3.1.2 Establish the reporting schedule

    For each risk event, document how frequently the risk owner must report to the IT risk council in the Risk Event Action Plan.

    • A clear reporting schedule enforces accountability for each risk event, ensuring that risk owners are fulfilling their monitoring responsibilities.
    • The ongoing discussion of risks between assessment cycles also increases overall awareness of how IT risks are not static but constantly evolving.
    Reporting Risk Event
    Weekly reports to ITRC Risk event severity represented as a thermometer with levels 'Extreme', 'High', 'Moderate', 'Low', and 'Negligible'.
    Bi-weekly reports to ITRC
    Monthly reports to ITRC
    Report to ITRC only if KRI thresholds triggered
    No reports; reassessed bi-annually

    Use Info-Tech’s tools to identify, analyze, and select risk responses

    1

    (Mandatory)
    Tool

    Screenshot of the Risk Register Tool.

    Risk Register Tool

    Information
    • Develop risk responses for all risk events pre-populated on the “2. Risk Register” sheet of the Risk Register Tool.
    • Document the root cause of the risk (Activity 3.1.3) and other contributing factors (Activity 3.1.4).
    • Identify risk responses (Activity 3.1.5).
    • Predict the effectiveness of the risk response, if implemented, by estimating the residual likelihood and impact of the risk (Activity 3.1.5).
    • The tool will calculate the residual severity of the risk after applying the risk response.

    2

    (Optional)
    Tool

    Screenshot of the Risk Costing Tool.

    Risk Costing Tool

    Information
    • Continue your second-level risk analysis for top risks for which you calculated expected cost in section 2.2.
    • Activity 3.1.5:
      • Identify between one and four risk response options for each risk.
      • Develop precise values for residual likelihood and impact.
      • Compare expected cost of the risk event to expected residual cost.
      • Select the risk response to recommend to senior leadership and document it in the Risk Register Tool.

    Determine the root cause of IT risks

    Root cause analysis

    Use the “Five Whys” methodology to identify the root cause and contributing/exacerbating factors for each risk event.

    Diagnosing the root cause of a risk as well as the environmental factors that increase its potential impact and likelihood of occurring allow you to identify more effective risk responses.

    Risk responses that only address the symptoms of the risk are less likely to succeed than responses that address the core issue.

    Concentric circles with 'Root Cause' at the center, 'Contributing Factors' around it, and 'Symptoms' on the outer circle.

    Example of 'The Five Whys Methodology', tracing symptoms to their root cause. In 'Symptoms' we see 'Risk Event: Network outage', Why? 'Network congestion', Why? Then on to 'Contributing Factors' the answer is 'Inadequate bandwidth for latency-sensitive applications', Why? 'Increased business use of latency-sensitive applications', Why? And finally to the 'Root Cause', 'Business units rely on 'real-time' data gathered from latency-sensitive applications', Why?

    Identify factors that contribute to the severity of the risk

    Environmental factors interact with the root cause to increase the likelihood or impact of the risk event.

    What factors matter?

    Identify relevant actors and assets that amplify or diminish the severity of the risk.

    Actors

    • Internal (business units)
    • External (vendor, regulator, market, competitor, hostile actor)

    Assets/Resources

    • Infrastructure
    • Applications
    • Processes
    • Information/data
    • Personnel
    • Reputation
    • Operations
    Develop risk responses that target contributing factors.
    Root cause:
    Business units rely on “real-time” data gathered from latency-sensitive applications

    Actors: Enterprise App users (Finance, Product Development, Product Management)

    Asset/resource: Applications, network

    Risk response:
    Decrease the use of latency-sensitive applications.

    X

    Decreasing the use of key apps contradicts business objectives.

    Contributing factors:
    Unreliable router software

    Actors: Network provider, router vendor, router software vendor, IT department

    Asset/resource: Network, router, router software

    Risk response:
    Replace the vendor that provides routers and router software.

    Replacing the vendor would reduce network outages at a relatively low cost.

    Symptoms:
    Network outage

    Actors: All business units, network provider

    Asset/resource: Network, business operations, employee productivity

    Risk response:
    Replace legacy systems.

    X

    Replacing legacy systems would be too costly.

    3.1.3 Identify and assess risk responses

    Instructions:
    Complete the following steps for each risk event.
    1. Identify a risk response action that will help reduce the likelihood of occurrence or the impact if the event were to occur.
      • Indicate the type of risk response (avoidance, mitigation, transfer, acceptance, or no risk exists).
    2. Assign each risk response action a residual likelihood level and a residual impact level.
      • This is the same step performed in Activity 2.2.6, when initial likelihood and impact levels were determined; however, now you are estimating the likelihood and impact of the risk event after the risk response action has been implemented successfully.
      • The Risk Register Tool will generate a residual risk severity level for each risk event.
    3. Identify the potential Risk Action Owner (Project Manager) if the response is selected and turned into an IT project, and document this in the Risk Register Tool.
    Document the following in the Risk Event Action Plan for each risk event:
      • Risk response actions
      • Residual likelihood and impact levels
      • Residual risk severity level
    • Review the following slides about the four types of risk response to help complete the activity.
      1. Avoidance
      2. Mitigation
      3. Transfer
      4. Acceptance

    Record the results in the Risk Event Action Plan.

    Take actions to avoid the risk entirely

    Risk Avoidance

    • Risk avoidance involves taking evasive maneuvers to avoid the risk event.
    • Risk avoidance targets risk likelihood, decreasing the likelihood of the risk event occurring.
    • Since risk avoidance measures are fairly drastic, the likelihood is often reduced to negligible levels.
    • However, risk avoidance response actions often sacrifice potential benefits to eliminate the possibility of the risk entirely.
    • Typically, risk avoidance measures should only be taken for risk events with extremely high severity and when the severity (expected cost) of the risk event exceeds the cost (benefits sacrificed) of avoiding the risk.

    Example

    Risk event: Information security vulnerability from third-party cloud services provider.

    • Risk avoidance action: Store all data in-house.
    • Benefits sacrificed: Cost savings, storage flexibility, etc.
    Stock photo of a person hikiing along a damp, foggy, valley path.

    Pursue projects that reduce the likelihood or impact of the risk event

    Risk Mitigation

    • Risk mitigation actions are risk responses that reduce the likelihood and impact of the risk event.
    • Risk mitigation actions can be to either implement new controls or enhance existing ones.
    Example 1

    Most risk responses will reduce both the likelihood of the risk event occurring and its potential impact.

    Example

    Mitigation: Purchase and implement enterprise mobility management (EMM) software with remote wipe capability.

    • EMM reduces the likelihood that sensitive data is accessed by a nefarious actor.
    • The remote-wipe capability reduces the impact by closing the window that sensitive data can be accessed from.
    Example 2

    However, some risk responses will have a greater effect on decreasing the likelihood of a risk event with little effect on decreasing impact.

    Example

    Mitigation: Create policies that restrict which personnel can access sensitive data on mobile devices.

    • This mitigation decreases the number of corporate phones that have access to (or are storing) sensitive data, thereby decreasing the likelihood that a device is compromised.
    Example 3

    Others will reduce the potential impact without decreasing its likelihood of occurring.

    Example

    Mitigation: Use robust encryption for all sensitive data.

    • Corporate-issued mobile phones are just as likely to fall into the hands of nefarious actors, but the financial impact they can inflict on the organization is greatly reduced.

    Pursue projects that reduce the likelihood or impact of the risk event (continued)

    Use the following IT functions to guide your selection of risk mitigation actions:

    Process Improvement

    Key processes that would most directly improve the risk profile:

    • Change Management
    • Project Management
    • Vendor Management
    Infrastructure Management
    • Disaster Recovery Plan/Business Continuity Plan
    • Redundancy and Resilience
    • Preventative Maintenance
    • Physical Environment Security
    Personnel
    • Greater staff depth in key areas
    • Increased discipline around documentation
    • Knowledge Management
    • Training
    Rationalization and Simplification

    This is a foundational activity, as complexity is a major source of risk:

    • Application Rationalization – reducing the number of applications
    • Data Management – reducing the volume and locations of data

    Transfer risks to a third party

    Risk transfer: the exchange of uncertain future costs for fixed present costs.

    Insurance

    The most common form of risk transfer is the purchase of insurance.

    • The uncertain future cost of an IT risk event can be transferred to an insurance company who assumes the risk in exchange for insurance premiums.
    • The most common form of IT-relevant insurance is cyberinsurance.

    Not all risks can be insured. Insurable risks typically possess the following five characteristics:

    1. The loss must be accidental (the risk event cannot be insured if it could have been avoided by taking reasonable actions).
    2. The insured cannot profit from the occurrence of the risk event.
    3. The loss must be able to be measured in monetary terms.
    4. The organization must have an insurable interest (it must be the party that incurs the loss).
    5. An insurance company must offer insurance against that risk.
    Other Forms of Risk Transfer

    Other forms of risk transfer include:

    • Self-insurance
      • Appropriate funds can be set aside in advance to address the financial impact of a risk event should it occur.
    • Warranties
    • Contractual transfer
      • The financial impact of a risk event can be transferred to a third party through clauses agreed to in a contract.
      • For example, a vendor can be contractually obligated to assume all costs resulting from failing to secure the organization’s data.
    • Example email addressing fields of an IT Risk Transfer to an insurance company.

    Accept risks that fall below established thresholds

    Risk Acceptance

    Accepting a risk means tolerating the expected cost of a risk event. It is a conscious and deliberate decision to retain the threat.

    You may choose to accept a risk event for one of the following three reasons:

    1. The risk severity (expected cost) of the risk event falls below acceptability thresholds and does not justify an investment in a risk avoidance, mitigation, or transfer measure.
    2. The risk severity (expected cost) exceeds acceptability thresholds but all effective risk avoidance, mitigation, and transfer measures are ineffective or prohibitively expensive.
    3. The risk severity (expected cost) exceeds acceptability thresholds but there are no feasible risk avoidance, mitigation, and transfer measures to be implemented.

    Info-Tech Insight

    Constant monitoring and the assignment of responsibility and accountability for accepted risk events is crucial for effective management of these risks. No IT risk should be accepted without detailed documentation outlining the reasoning behind that decision and evidence of approval by senior management.

    3.1.4 Risk response cost-benefit analysis (optional)

    The purpose of a cost-benefit analysis (CBA) is to guide financial decision making.

    This helps IT make risk-conscious investment decisions that fall within the IT budget and helps the organization make sound budgetary decisions for risk response projects that cannot be addressed by IT’s existing budget.

    Instructions:
    1. Reopen the Risk Costing Tool. For each risk that you conducted an expected cost assessment in section 2.2 for, find the Excel sheet that corresponds to the risk number (e.g. R001).
    2. Identify between one and four risk response options for the risk event and document them in the Risk Costing Tool.
      • The “Risk Response 1” field will be automatically populated with expected cost data for a scenario where no action was taken (risk acceptance). This will serve as a baseline for comparing alternative responses.
      • For the following steps, go through the risk responses one by one.
    3. Estimate the first-year cost for the risk response.
      • This cost should reflect initial capital expenditures and first-year operating expenditures.
    Screenshot of the Risk Response cost-benefit-analysis from the Risk Costing Tool with 'Capital Expenditures' and 'Operating Expenditures' highlighted.

    Record the results in the Risk Costing Tool.

    3.1.4 Risk response cost-benefit analysis (continued)

    The purpose of a cost-benefit analysis (CBA) is to guide financial decision making.

    Instructions:

    1. Estimate residual risk likelihood and financial impact for Year 1 with the risk response in place.
      • Rather than estimating the likelihood level (low, medium, high), determine a precise likelihood value of the risk event occurring once the response has been implemented.
      • Estimate the dollar value of financial impacts if the risk event were to occur with the risk response in place.
      • Screenshot of the Risk Response cost-benefit-analysis from the Risk Costing Tool with figured for 'Financial Impact' and 'Probability' highlighted. The tool will calculate the expected residual cost of the risk event: (Financial Impact x Likelihood) - Costs = Expected Residual Cost
    2. Select the highest value risk response and document it in the Risk Register Tool.
    3. Document your analysis and recommendations in the Risk Event Action Plan.

    Note: See Activity 3.1.5 to build multi-year cost projections for risk responses.

    3.1.5 Create multi-year cost projections (optional)

    Select between risk response options by projecting their costs and benefits over multiple years.

    • It can be difficult to choose between risk response options that require different payment schedules. A risk response project with costs spread out over more than one year (e.g. incremental upgrades to an IT system) may be more advantageous than a project with costs concentrated up front that may cost less in the long run (e.g. replacing the system).
    • However, the impact that risk response projects have on reducing risk severity is not necessarily static. For example, an expensive project like replacing a system may drastically reduce the risk severity of a system failure. Whereas, incremental system upgrades may only marginally reduce risk severity in the short term but reach similar levels as a full system replacement in a few years.
    Instructions:

    Calculate expected cost for multiple years using the Risk Costing Tool for:

    • Risk events that are subject to change in severity over time.
    • Risk responses that reduce the severity of the risk gradually.
    • Risk responses that cannot be implemented immediately.

    Copy and paste the graphs into the Risk Report and the Risk Event Action Plan for the risk event.

    Sample charts on the cost of risk responses from the Risk Costing Tool.

    Record the results in the Risk Costing Tool.

    Step 3.2

    Report IT Risk Priorities

    Activities
    • 3.2.1 Obtain executive approval for risk action plans
    • 3.2.2 Socialize the Risk Report
    • 3.2.3 Transfer ownership of risk responses to project managers
    • 3.2.4 Finalize the Risk Management Program Manual

    This step involves the following participants:

    • IT risk council
    • Relevant business stakeholders
    • Representation from senior management team

    Outcomes of this step

    • Obtained approval for risk action plans
    • Communicated IT’s risk recommendations to senior leadership
    • Embedded risk management into day-to-day IT operations

    Monitor, Respond, and Report on IT Risk

    Step 3.1 Step 3.2

    Effectively deliver IT risk expertise to the business

    Communicate IT risk management in two directions:

    1. Up to senior leadership (and ERM if applicable)
    2. Down to IT employees (embedding risk awareness)
    3. Visualization of communicating Up to 'Senior Leadership' and Down to 'IT Personnel'.

    Create a strong paper trail and obtain sign-off for the ITRC’s recommendations.

    Now that you have collected all of the necessary raw data, you must communicate your insights and recommendations effectively.

    A fundamental task of risk management is communicating risk information to senior management. It is your responsibility to enable them to make informed risk decisions. This can be considered upward communication.

    The two primary goals of upward communication are:

    1. Transferring accountability for high-priority IT risks to the ERM or to senior leadership.
    2. Obtaining funds for risk response projects recommended by the ITRC.

    Good risk management also has a trickle-down effect impacting all of IT. This can be considered downward communication.

    The two primary goals of downward communication are:

    1. Fostering a risk-aware IT culture.
    2. Ensuring that the IT risk management program maintains momentum and runs effectively.

    3.2.1 Obtain executive approval for risk action plans

    Best Practices and Key Benefits

    Best practice is for all acceptable risks to also be signed-off by senior leadership. However, for ITRCs that brainstorm 100+ risks, this may not be possible. If this is the case, prioritize accepted risks that were assessed to be closest to the organization’s thresholds.

    By receiving a stamp of approval for each key risk from senior management, you ensure that:

    1. The organization is aware of important IT risks that may impact business objectives.
    2. The organization supports the risk assessment conducted by the ITRC.
    3. The organization supports the plan of action and monitoring responsibilities proposed by the ITRC.
    4. If a risk event were to occur, the organization holds ultimate accountability.
    Sample of the Risk Event Action Plan template.

    Task:
    All IT risks that were flagged for exceeding the organization’s severity thresholds must obtain sign-off by the CIO or another member of the senior leadership team.

    • In the assessment phase, you evaluated risks using severity thresholds approved by the business and determined whether or not they justified a risk response.
    • Whether your recommendation was to accept the risk or to analyze possible risk responses, the business should be made aware of most IT risks.

    3.2.2 Socialize the risk report

    Create a succinct, impactful document that summarizes the outcomes of risk assessment and highlights the IT risk council’s top recommendations to the senior leadership team.

    The Risk Report contains:
    • An executive summary page highlighting the main takeaways for senior management:
      • A short summary of results from the most recent risk assessment
      • Dashboard
      • A list of top 10 risks ordered from most severe to least
    • Subsequent individual risk analyses (1 to 10)
      • Detailed risk assessment data
      • Risk responses
      • Risk response analysis
      • Multi-year cost projection (see the following slide)
      • Dashboard
      • Recommendations
    Sample of the Risk Report template.

    Risk Report

    Pursue projects that reduce the likelihood or impact of the risk event

    Encourage risk awareness to extend the benefits of risk management to every aspect of IT.

    Benefits of risk awareness:

    • More preventative and proactive approaches to IT projects are discussed and considered.
    • Changes to the IT threat landscape are more likely to be detected, communicated, and acted upon.
    • IT possesses a realistic perception of its ability to perform functions and provide services.
    • Contingency plans are put in place to hedge against risk events.
    • Fewer IT risks go unidentified.
    • CIOs and business executives make better risk decisions.

    Consequences of low risk awareness:

    • False confidence about the number of IT risks impacting the organization and their severity.
    • Risk-relevant information is not communicated to the ITRC, which may result in inaccurate risk assessments.
    • Confusion surrounding whose responsibility it is to consider how risk impacts IT decision making.
    • Uncertainty and panic when unanticipated risks impact the IT department and the organization.

    Embedding risk management in the IT department is a full-time job

    Take concrete steps to increase risk-aware decision making in IT.

    The IT risk council plays an instrumental role in fostering a culture of risk awareness throughout the IT department. In addition to periodic risk assessments, fulfilling reporting requirements, and undertaking ongoing monitoring responsibilities, members of the ITRC can take a number of actions to encourage other IT employees to adopt a risk-focused approach, particularly at the project planning stage.

    Embed risk management in project planning

    Make time for discussing project risks at every project kick-off.
    • A main benefit of including senior personnel from across IT in the ITRC is that they are able to disseminate the IT risk council’s findings to their respective practices.
    • At project kick-off meetings, schedule time to identify and assess project-specific risks.
    • Encourage the project team to identify strategies to reduce the likelihood and impact of those risks and document these in the project charter.
    • Lead by example by being clear and open about what constitutes acceptable and unacceptable risks.

    Embed risk management with employee

    Train IT staff on the ITRC’s planned responses to specific risk events.
    • If a response to a particular risk event is not to implement a project but rather to institute new policies or procedures, ensure that changes are communicated to employees and that they receive training.
    Provide risk management education opportunities.
    • Remember that a more risk-aware IT employee provides more value to the organization.
    • Invest in your employees by encouraging them to pursue education opportunities like receiving risk management accreditation or providing them with educational experiences such as workshops, seminars, and eLearning.

    Embedding risk management in the IT department is a full-time job (continued)

    Encourage risk awareness by adjusting performance metrics and job titles.

    Performance metrics:

    Depending on the size of your IT department and the amount of resources dedicated to ongoing risk management, you may consider embedding risk management responsibilities into the performance assessments of certain ITRC members or other IT personnel.

    • Personalize the risk management program metrics you have documented in your Risk Management Program Manual.
    • Evidence that KPIs are monitored and frequently reported is also a good indicator that risk owners are fulfilling their risk management responsibilities.
    • Info-Tech Insight

      If risk management responsibilities are not built into performance assessments, it is less likely that they will invest time and energy into these tasks. Adding risk management metrics to performance assessments directly links good job performance with good risk management, making it more likely that ITRC activities and initiatives gain traction throughout the IT department.

    Job descriptions:

    Changing job titles to reflect the focus of an individual’s role on managing IT risk may be a good way to distinguish personnel tasked with developing KRIs and monitoring risks on a week-to-week basis.

    • Some examples include IT Risk Officer, IT Risk Manager, and IT Risk Analyst.

    3.2.3 Transfer ownership of risk responses to project managers

    Once risk responses have obtained approval and funding, it is time to transform them into fully-fledged projects.

    Image of a hand giving a key to another hand and a circle split into quadrants of Governance with 'Governance of Risks' being put into 'Governance of Projects'.

    3.2.4 Finalize the Risk Management Program Manual

    Go back through the Risk Management Program Manual and ensure that the material will accurately reflect your approach to risk management going forward.

    Remember, the program manual is a living document that should be evolving alongside your risk management program, reflecting best practices, knowledge, and experiences accrued from your own assessments and experienced risk events.

    The best way to ensure that the program manual continues to guide and document your risk management program is to make it the focal point of every ITRC meeting and ensure that one participant is tasked with making necessary adjustments and additions.

    Sample of the Risk Management Program Manual. Risk Management Program Manual

    “Upon completing the Info-Tech workshop, the deliverables that we were left with were really outstanding. We put together a 3-year project plan from a high level, outlining projects that will touch upon our high risk areas.” (Director of Security & Risk, Water Management Company)

    Don’t allow your risk management program to flatline

    54% of small businesses haven’t implemented controls to respond to the threat of cyber attacks (Source: Insurance Bureau of Canada, 2021)

    Don’t be lulled into a false sense of security. It might be your greatest risk.

    So you’ve identified the most important IT risks and implemented projects to protect IT and the business.

    Unfortunately, your risk assessment is already outdated.

    Perform regular health checks to keep your finger on the pulse of the key risks threatening the business and your reputation.

    To continue the momentum of your newly forged IT risk management program, read Info-Tech’s research on conducting periodic risk assessments and “health checks”:

    Revive Your Risk Management Program With a Regular Health Check

    • Complete Info-Tech’s Risk Management Health Check to seize the momentum you created by building a robust IT risk management program and create a process for conducting periodic health checks and embedding ongoing risk management into every aspect of IT.
    • Our focus is on using data to make IT risk assessment less like an art and more like a science. Ongoing data-driven risk management is self-improving and grounded in historical data.

    Appendix I: Familiarize yourself with key risk terminology

    Review important risk management terms and definitions.

    Risk

    An uncertain event or set of events which, should it occur, will have an effect on the achievement of objectives. A risk consists of a combination of the likelihood of a perceived threat or opportunity occurring and the magnitude of its impact on objectives (Office of Government Commerce, 2007).

    Threat

    An event that can create a negative outcome (e.g. hostile cyber/physical attacks, human errors).

    Vulnerability

    A weakness that can be taken advantage of in a system (e.g. weakness in hardware, software, business processes).

    Risk Management

    The systematic application of principles, approaches, and processes to the tasks of identifying and assessing risks, and then planning and implementing risk responses. This provides a disciplined environment for proactive decision making (Office of Government Commerce, 2007).

    Risk Category

    Distinct from a risk event, a category is an abstract profile of risk. It represents a common group of risks. For example, you can group certain types of risks under the risk category of IT Operations Risks.

    Risk Event

    A specific occurrence of an event that falls under a particular risk category. For example, a phishing attack is a risk event that falls under the risk category of IT Security Risks.

    Risk Appetite

    An organization’s attitude towards risk taking, which determines the amount of risk that it considers acceptable. Risk appetite also refers to an organization’s willingness to take on certain levels of exposure to risk, which is influenced by the organization’s capacity to financially bear risk.

    Enterprise Risk Management

    (ERM) – A strategic business discipline that supports the achievement of an organization’s objectives by addressing the full spectrum of organizational risks and managing the combined impact of those risks as an interrelated risk portfolio (RIMS, 2015).

    Appendix II: Likelihood vs. Frequency

    Why we measure likelihood, not frequency:

    The basic formula of Likelihood x Impact = Severity is a common methodology used across risk management frameworks. However, some frameworks measure likelihood using Frequency rather than Likelihood.

    Frequency is typically measured as the number of instances an event occurs over a given period of time (e.g. once per month).

    • For risk assessment, historical data regarding the frequency of a risk event is commonly used to indicate the likelihood that the event will happen in the future.

    Likelihood is a numerical representation of the “degree of belief” that the risk event will occur in a given future timeframe (e.g. 25% likelihood that the event will occur within the next year).

    False Objectivity

    While some may argue that frequency provides an objective measurement of likelihood, it is well understood in the field of likelihood theory that historical data regarding the frequency of a risk event may have little bearing over the likelihood of that event happening in the future. Frequency is often an indication of future likelihood but should not be considered an objective measurement of it.

    Likelihood scales that use frequency underestimate the magnitude of risks that lack historical precedent. For example, an IT department that has never experienced a high-impact data breach would adopt a very low likelihood score using the frequentist approach. However, if all of the organization’s major competitors have suffered a major breach within the last two years, they ought to possess a much higher degree of belief that the risk event will occur within the next year.

    Likelihood is a more comprehensive measurement of future likelihood, as frequency can be used to inform the selection of a likelihood value. The process of selecting intersubjective likelihood values will naturally internalize historical data such as the frequency that the event occurred in the past. Further, the frequency that the event is expected to occur in the future can be captured by the expected impact value. For example, a risk event that has an expected impact per occurrence of $10,000 that is expected to occur three times over the next year has an expected impact of $30,000.

    Appendix III: Should max impacts sway decision making?

    Don’t just fixate on the most likely impact – be aware of high-impact outcomes.

    During assessment, risks are evaluated according to their most likely financial impact.

    • For example, a service outage will likely last for two hours and may have an expected cost of $14,000.

    Naturally, focusing on the most likely financial impact will exclude higher impacts that – while theoretically possible – are so unlikely that they do not warrant any real consideration.

    • For example, it is possible that a service outage could last for days; however, the likelihood for such an event may be well below 1%.

    While the risk severity level assessment allows you to present impacts as a range of values (e.g. $50,000 to $75,000), the expected cost assessment requires you to select specific values.

    • However, this analysis may fail to consider much higher potential impacts that have non-negligible likelihood values (likelihood values that you cannot ignore).
    • What you consider “non-negligible” will depend on your organizational risk tolerance/appetite.

    Sometimes called Black Swan events or Fat-Tailed outcomes, high-impact events may occur when the far right of the likelihood distribution – or the “tail” – is thicker than a normal distribution (see fig. 2).

    • A good example is a data breach. While small to medium impacts are far more likely to occur than a devastating intrusion, the high-impact scenario cannot be ignored completely.

    For risk events that contain non-negligible likelihoods (too high to be ignored) consider elevating the risk severity level or expected cost.

    Figure 1 is a graph presenting a 'Normal Likelihood Distribution', the axes being 'Likelihood' and 'Financial Impact'.
    Figure 2 is a graph presenting a 'Fat-Tailed Likelihood Distribution' with a point at the top of the parabola labelled 'Most Likely Impact' but with a much wider bottom labelled 'Fat-Tailed Outcomes', the axes being 'Likelihood' and 'Financial Impact'.

    Leverage Info-Tech’s research on security and compliance risk to identify additional risk events

    Title card of the Info-tech blueprint 'Take Control of Compliance Improvement to Conquer Every Audit' with subtitle 'Don't gamble recklessly with external compliance. Play a winning system and take calculated risks to stack the odds in your favor.


    Take Control of Compliance Improvement to Conquer Every Audit

    Info-Tech Insight

    Don’t gamble recklessly with external compliance. Play a winning system and take calculated risks to stack the odds in your favor.

    Take an agile approach to analyze your gaps and prioritize your remediations. You don’t always have to be fully compliant as long as your organization understands and can live with the consequences.

    Stock photo of a woman sitting at a computer surrounded by rows of computers.


    Develop and Implement a Security Risk Management Program

    Info-Tech Insight

    Security risk management equals cost effectiveness.

    Time spent upfront identifying and prioritizing risks can mean the difference between spending too much and staying on budget.

    Research Contributors and Experts

    Sandi Conrad
    Principal Research Director
    Info-Tech Research Group

    Christine Coz
    Executive Counsellor
    Info-Tech Research Group

    Milena Litoiu
    Principal Research Director
    Info-Tech Research Group

    Scott Magerfleisch
    Executive Advisor
    Info-Tech Research Group

    Aadil Nanji
    Research Director
    Info-Tech Research Group

    Andy Neill
    Associate Vice-President of Research
    Info-Tech Research Group

    Daisha Pennie
    IT Risk Management
    Oklahoma State University

    Ken Piddington
    CIO and Executive Advisor
    MRE Consulting

    Frank Sewell
    Research Director
    Info-Tech Research Group

    Andrew Sharpe
    Research Director
    Info-Tech Research Group

    Chris Warner
    Consulting Director- Security
    Info-Tech Research Group

    Sterling Bjorndahl
    Director of IT Operations
    eHealth Saskatchewan

    Research Contributors and Experts

    Ibrahim Abdel-Kader
    Research Analyst
    Info-Tech Research Group

    Tamara Dwarika
    Internal Auditor
    A leading North American Utility

    Anne Leroux
    Director
    ES Computer Training

    Ian Mulholland
    Research Director
    Info-Tech Research Group

    Michel Fossé
    Consulting Services Manager
    IBM Canada (LGS)

    Petar Hristov
    Research Director
    Info-Tech Research Group

    Steve Woodward
    Research Director
    CEO, Cloud Perspectives

    *Plus 10 additional interviewees who wish to remain anonymous.

    Bibliography

    “2021 State of the CIO.” IDG, 28 January 2021. Web.

    “4 Reasons Why CIOs Lose Their Jobs.” Silverton Consulting, 2012. Web.

    Beasley, Mark, Bruce Branson, and Bonnie Hancock. “The State of Risk Oversight,” AICPA, April 2021. Web.

    COBIT 2019. ISACA, 2019. Web.

    “Cognyte jeopardized its database exposing 5 billion records, including earlier data breaches.” SecureBlink, 21 June 2021. Web.

    Culp, Steve. “Accenture 2019 Global Risk Management Study, Financial Services Report.” Accenture, 2019. Web.

    Curtis, Patchin, and Mark Carey. “Risk Assessment in Practice.” COSO Committee of Sponsoring Organizations of the Treadway Commission, Deloitte & Touche LLP, 2012. Web.

    “Cyber Risk Management.” Insurance Bureau of Canada (IBC), 2022. Web.

    Eccles, Robert G., Scott C. Newquist, and Roland Schatz. “Reputation and Its Risks.” Harvard Business Review, February 2007. Web.

    Eden, C. and F. Ackermann. Making Strategy: The Journey of Strategic Management. Sage Publications, 1998.

    “Enterprise Risk Management Maturity Model.” OECD, 9 February 2021. Web.

    Ganguly, Saptarshi, Holger Harreis, Ben Margolis, and Kayvaun Rowshankish. “Digital Risks: Transforming risk management for the 2020s.” McKinsey & Company, 10 February 2017. Web.

    “Governance Institute of Australia Risk Management Survey 2020.” Governance Institute of Australia, 2020. Web.

    “Guidance on Enterprise Risk Management.” COSO, 2022. Web.

    Henriquez, Maria. “The Top 10 Data Breaches of 2021” Security Magazine, 9 December 2021. Web.

    Holmes, Aaron. “533 million Facebook users’ phone numbers and personal data have been leaked online.” Business Insider, 3 April 2021. Web.

    Bibliography

    “Integrated Risk and Compliance Management for Banks and Financial Services Organizations: Benefits of a Holistic Approach.” MetricStream, 2022. Web.

    “ISACA’s Risk IT Framework Offers a Structured Methodology for Enterprises to Manage Information and Technology Risk.” ISACA, 25 June 2020. Web.

    ISO 31000 Risk Management. ISO, 2018. Web.

    Lawton, George. “10 Enterprise Risk Management Trends in 2022.” TechTarget, 2 February 2022. Web.

    Levenson, Michael. “MGM Resorts Says Data Breach Exposed Some Guests’ Personal Information.” The New York Times, 19 February 2020. Web.

    Management of Risk (M_o_R): Guidance for Practitioners. Office of Government Commerce, 2007. Web.

    “Many small businesses vulnerable to cyber attacks.” Insurance Bureau of Canada (IBC), 5 October 2021.

    Maxwell, Phil. “Why risk-informed decision-making matters.” EY, 3 December 2019. Web.

    “Measuring and Mitigating Reputational Risk.” Marsh, September 2014. Web.

    Natarajan, Aarthi. “The Top 6 Business Risks you should Prepare for in 2022.” Diligent, 22 December 2021. Web.

    “Operational Risk Management Excellence – Get to Strong Survey: Executive Report.” KMPG and RMA, 2014. Web.

    “Third-party risk is becoming a first priority challenge.” Deloitte, 2022. Web.

    Thomas, Adam, and Dan Kinsella. “Extended Enterprise Risk Management Survey, 2020.” Deloitte, 2021. Web.

    Treasury Board Secretariat. “Guide to Integrated Risk Management.” Government of Canada, 12 May 2016. Web.

    Webb, Rebecca. “6 Reasons Data is Key for Risk Management.” ClearRisk, 13 January 2021. Web.

    “What is Enterprise Risk Management (ERM)?” RIMS, 2015. Web.

    Wiggins, Perry. “Do you spend enough time assessing strategic risks?” CFO, 26 January 2022. Web.

    Evaluate Your Vendor Account Team to Optimize Vendor Relations

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    • Parent Category Name: Vendor Management
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    • Understand how important your account is to the vendor and how it is classified.
    • Understand how informed the account team is about your company and your industry.
    • Understand how long the team has been with the vendor. Have they been around long enough to have developed a “brand” or trust within their organization?
    • Understand and manage the relationships and influence the account team has within your organization to maintain control of the relationship.

    Our Advice

    Critical Insight

    Conducting the appropriate due diligence on your vendor’s account team is as important as the due diligence you put into the vendor. Ongoing management of the account team should follow the lifecycle of the vendor relationship.

    Impact and Result

    Understanding your vendor team’s background, experience, and strategic approach to your account is key to the management of the relationship, the success of the vendor agreement, and, depending on the vendor, the success of your business.

    Evaluate Your Vendor Account Team to Optimize Vendor Relations Research & Tools

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

    1. Evaluate Your Vendor Account Team to Optimize Vendor Relations Deck – Understand the value of knowing your account team’s influence in their organization, and yours, to drive results.

    Learn how to best qualify that you have the right team for your business needs, using the accompanying tools to measure and monitor success throughout the relationship.

    • Evaluate Your Vendor Account Team to Optimize Vendor Relations Storyboard

    2. Vendor Rules of Engagement Template – Use this template to create a vendor rules of engagement document for inclusion in your company website, RFPs, and contracts.

    The Vendor Rules of Engagement template will help you develop your written expectations for the vendor for how they will interact with your business and stakeholders.

    • Vendor Rules of Engagement

    3. Evalu-Rate Your Account Team – Use this tool to develop criteria to evaluate your account team and gain feedback from your stakeholders.

    Evaluate your vendor account teams using this template to gather stakeholder feedback on vendor performance.

    • Evalu-Rate Your Account Team
    [infographic]

    Further reading

    Evaluate Your Vendor Account Team to Optimize Vendor Relations

    Understand the value of knowing your account team’s influence in their organization, and yours, to drive results.

    Analyst Perspective

    Having the wrong account team has consequences for your business.

    IT professionals interact with vendor account teams on a regular basis. You may not give it much thought, but do you have a good understanding of your rep’s ability to support/service your account, in the manner you expect, for the best possible outcome? The consequences to your business of an inappropriately assigned and poorly trained account team can have a disastrous impact on your relationship with the vendor, your business, and your budget. Doing the appropriate due diligence with your account team is as important as the due diligence you should put into the vendor. And, of course, ongoing management of the account team relationship is vital. Here we will share how best to qualify that you have the right team for your business needs as well as how to measure and monitor success throughout the relationship.

    Photo of Donna Glidden, Research Director, Vendor Management, Info-Tech Research Group.

    Donna Glidden
    Research Director, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge
    • Understand how important your account is to the vendor and how it is classified.
    • Understand how informed the account team is about your company and your industry.
    • Understand how long the team has been with the vendor. Have they been around long enough to have developed a “brand” or trust within their organization?
    • Understand and manage the relationships and influence the account team has within your organization to maintain control of the relationship.
    Common Obstacles
    • The vendor account team “came with the deal.”
    • The vendor account team has limited training and experience.
    • The vendor account team has close relationships within your organization outside of Procurement.
    • Managing your organization’s vendors is ad hoc and there is no formalized process for vendors to follow.
    • Your market position with the vendor is not optimal.
    Info-Tech’s Approach
    • Establish a repeatable, consistent vendor management process that focuses on the account team to maintain control of the relationship and drive the results you need.
    • Create a questionnaire for gaining stakeholder feedback to evaluate the account team on a regular basis.
    • Consider adding a vendor rules of engagement exhibit to your contracts and RFXs.

    Info-Tech Insight

    Understanding your vendor team’s background, their experience, and their strategic approach to your account is key to the management of the relationship, the success of the vendor agreement, and, depending on the vendor, the success of your business.

    Blueprint benefits

    IT Benefits

    • Clear lines of communication
    • Correct focus on the specific needs of IT
    • More accurate project scoping
    • Less time wasted

    Mutual IT and
    Business Benefits

    • Reduced time to implement
    • Improved alignment between IT & business
    • Improved vendor performance
    • Improved vendor relations

    Business Benefits

    • Clear relationship guidelines based on mutual understanding
    • Improved communications between the parties
    • Mutual understanding of roles/goals
    • Measurable relationship criteria

    Insight Summary

    Overarching insight

    Conducting the appropriate due diligence on your vendor’s account team is as important as the due diligence you put into the vendor. Ongoing management of the account team should follow the lifecycle of the vendor relationship.

    Introductory/RFP phase
    • Track vendor contacts with your organization.
    • Qualify the account team as you would the vendor:
      • Background
      • Client experience
    • Consider including vendor rules of engagement as part of your RFP process.
    • How does the vendor team classify your potential account?
    Contract phase
    • Set expectations with the account team for the ongoing relationship.
    • Include a vendor rules of engagement exhibit in the contract.
    • Depending on your classification of the vendor, establish appropriate account team deliverables, meetings, etc.
    Vendor management phase
    • “Evalu-rate” your account team by using a stakeholder questionnaire to gain measurable feedback.
    • Identify the desired improvements in communications and service delivery.
    • Use positive reinforcements that result in positive behavior.
    Tactical insight

    Don’t forget to look at your organization’s role in how well the account team is able to perform to your expectations.

    Tactical insight

    Measure to manage – what are the predetermined criteria that you will measure the account team’s success against?

    Lack of adequate sales training and experience can have a negative impact on the reps’ ability to support your needs adequately

    • According to Forbes (2012), 55% of salespeople lack basic sales skills.
    • 58% of buyers report that sales reps are unable to answer their questions effectively.
    • According to a recent survey, 84% of all sales training is lost after 90 days. This is due to the lack of information retention among sales personnel.
    • 82% of B2B decision-makers think sales reps are unprepared.
    • At least 50% of prospects are not a good fit for the product or service that vendors are selling (Sales Insights Lab).
    • It takes ten months or more for a new sales rep to be fully productive.

    (Source: Spotio)

    Info-Tech Insight

    Remember to examine the inadequacies of vendor training as part of the root cause of why the account team may lack substance.

    Why it matters

    1.8 years

    is the average tenure for top ten tech companies

    2.6 years is the average experience required to hire.

    2.4 years is the average account executive tenure.

    44% of reps plan to leave their job within two years.

    The higher the average contract value, the longer the tenure.

    More-experienced account reps tend to stay longer.

    (Source: Xactly, 2021)
    Image of two lightbulbs labeled 'skill training' with multiple other buzzwords on the glass.

    Info-Tech Insight

    You are always going to be engaged in training your rep, so be prepared.

    Before you get started…

    • Take an inward look at how your company engages with vendors overall:
      • Do you have a standard protocol for how initial vendor inquiries are handled (emails, phone calls, meeting invitations)?
      • Do you have a standard protocol for introductory vendor meetings?
      • Are vendors provided the appropriate level of access to stakeholders/management?
      • Are you prompt in your communications with vendors?
      • What is the quality of the data provided to vendors? Do they need to reach out repeatedly for more/better data?
      • How well are you able to forecast your needs?
      • Is your Accounts Payable team responsive to vendor inquiries?
      • Are Procurement and stakeholders on the same page regarding the handling of vendors?
    • While you may not have a formal vendor management initiative in place, try to understand how important each of your vendors are to your organization, especially before you issue an RFP, so you can set the right expectations with potential vendor teams.
    • Classify vendors as strategic, operational, tactical, or commodity.
      • This will help you focus your time appropriately and establish the right meeting cadence according to the vendor’s place in your business.
      • See Info-Tech’s research on vendor classification.
    When you formalize your expectations regarding vendor contact with your organization and create structure around it, vendors will take notice.

    Consider a standard intake process for fielding vendor inquiries and responding to requests for meetings to save yourself the headaches that come with trying to keep up with them.

    Stakeholder teams, IT, and Procurement need to be on the same page in this regard to avoid missteps in the important introductory phase of dealing with vendors and the resulting confusion on the part of vendor account teams when they get mixed messages and feel “passed around.”

    1. Introductory Phase

    If vendors know you have no process to track their activities, they’ll call who they want when they want, and the likelihood of them having more information about your business than you about theirs is significant.

    Vendor contacts are made in several ways:

    • Cold calls
    • Emails
    • Website
    • Conferences
    • Social introductions

    Things to consider:

    • Consider having a link on your company website to your Sourcing & Procurement team, including:
      • An email address for vendor inquiries.
      • Instructions to vendors on how to engage with you and what information they should provide.
      • A link to your Vendor Rules of Engagement.
    • Track vendor inquiries so you have a list of potential respondents to future RFPs.
    • Work with stakeholders and gain their buy-in on how vendor inquiries are to be routed and handled internally.
    Not every vendor contact will result in an “engagement” such as invitation to an RFP or a contract for business. As such, we recommend that you set up an intake process to track/manage supplier inquiries so that when you are ready to engage, the vendor teams will be set up to work according to your expectations.

    2. RFP/Contract Phase

    What are your ongoing expectations for the account team?
    • Understand how your business will be qualified by the vendor. Where you fit in the market space regarding spend, industry, size of your business, etc., determines what account team(s) you will have access to.
    • Add account team–specific questions to your RFP(s) to gain an understanding of their capabilities and experience up front.
    • How have you classified the vendor/solution? Strategic, tactical, operational, or commodity?
      • Depending on the classification/criticality (See Info-Tech’s Vendor Classification Tool) of the vendor, set the appropriate expectation for vendor review meetings, e.g. weekly, monthly, quarterly, annually.
      • Set the expectation that their support of your account will be regularly measured/monitored by your organization.
      • Consider including a set of vendor rules of engagement in your RFPs and contracts so vendors will know up front what your expectations are for how to engage with Procurement and stakeholders.
    Stock image of smiling coworkers.

    3. Ongoing Vendor Management

    Even if you don’t have a vendor management initiative in place, consider these steps to manage both new and legacy vendor relationships:
    • Don’t wait until there is an issue to engage the account team. Develop an open, honest relationship with vendors and get to know their key players.
    • Seek regular feedback from stakeholders on both parties’ performance against the agreement, based on agreed-upon criteria.
    • Measure vendor performance using the Evalu-Rate Your Account Team tool included with this research.
    • Based on vendor criticality, set a regular cadence of vendor meetings to discuss stakeholder feedback, both positive feedback as well as areas needing improvement and next steps, if applicable.
    Stock image of smiling coworkers.

    Info-Tech Insight

    What your account team doesn’t say is equally important as what they do say. For example, an account rep with high influence says, “I can get that for you” vs. “I'll get back to you.” Pay attention to the level of detail in their responses to you – it references how well they are networked within their own organization.

    How effective is your rep?

    The Poser
    • Talks so much they forget to listen
    • Needs to rely on the “experts”
    • Considers everyone a prospect
    Icons relating to the surrounding rep categories. Ideal Team Player
    • Practices active listening
    • Understands the product they are selling
    • Asks great questions
    • Is truthful
    • Approaches sales as a service to others
    The Bulldozer
    • Unable to ask the right questions
    • If push comes to shove, they keep pushing until you push back
    • Has a sense of entitlement
    • Lacks genuine social empathy
    Skillful Politician
    • Focuses on the product instead of people
    • Goes by gut feel
    • Fears rejection and can’t roll with the punches

    Characteristics of account reps

    Effective
    • Is truthful
    • Asks great questions
    • Practices active listening
    • Is likeable and trustworthy
    • Exhibits emotional intelligence
    • Is relatable and knowledgeable
    • Has excellent interpersonal skills
    • Has a commitment to personal growth
    • Approaches sales as a service to others
    • Understands the product they are selling
    • Builds authentic connections with clients
    • Is optimistic and has energy, drive, and confidence
    • Makes an emotional connection to whatever they are selling
    • Has the ability to put themselves in the position of the client
    • Builds trust by asking the right questions; listens and provides appropriate solutions without overpromising and underdelivering
    Ineffective
    • Goes by gut feel
    • Has a sense of entitlement
    • Lacks genuine social empathy.
    • Considers everyone a prospect
    • Is unable to ask the right questions.
    • Is not really into sales – it’s “just a job”
    • Focuses on the product instead of people
    • Loves to talk so much they forget to listen
    • Fears rejection and can’t roll with the punches
    • If push comes to shove, they keep pushing until you push back
    • Is clueless about their product and needs to rely on the “experts”

    How to support an effective rep

    • Consider being a reference account.
    • Say thank you as a simple way to boost morale and encourage continued positive behavior.
    • If you can, provide opportunities to increase business with the vendor – that is the ultimate thanks.
    • Continue to support open, honest communication between the vendor and your team.
    • Letters or emails of recognition to the vendor team’s management have the potential to boost the rep’s image within their own organization and shine a spotlight on your organization as a good customer.
    • Supplier awards for exemplary service and support may be awarded as part of a more formal vendor management initiative.
    • Refer to the characteristics of an effective rep – which ones best represent your account team?
    A little recognition goes a long way in reinforcing a positive vendor relationship.

    Info-Tech Insight

    Don’t forget to put the relationship in vendor relationship management – give a simple “Thank you for your support” to the account team from executive management.

    How to support an ineffective rep

    An ineffective rep can take your time and attention away from more important activities.
    • Understand what role, if any, you and/or your stakeholders may play in the rep’s lack of performance by determining the root cause:
      • Unrealistic expectations
      • Unclear and incomplete instructions
      • Lack of follow through by your stakeholders to provide necessary information
      • Disconnects between Sourcing/Procurement/IT that lead to poor communication with the vendor team (lack of vendor management)
    • Schedule more frequent meetings with the team to address the issues and measure progress.
    • Be open to listening to your rep(s) and ask them what they need from you in order to be effective in supporting your account.
    • Be sure to document in writing each instance where the rep has underperformed and include the vendor team’s leadership on all communications and meetings.
    • Refer to the characteristics of an ineffective rep – which ones best describe your ineffective vendor rep?
    “Addressing poor performance is an important aspect of supplier management, but prevention is even more so.” (Logistics Bureau)

    Introductory questions to ask vendor reps

    • What is the vendor team’s background, particularly in the industry they are representing? How did they get to where they are?
      • Have they been around long enough to have developed credibility throughout their organization?
      • Do they have client references they are willing to share?
    • How long have they been in this position with the vendor?
      • Remember, the average rep has less than 24 months of experience.
      • If they lack depth of experience, are they trainable?
    • How long have they been in the industry?
      • Longevity and experience matters.
    • What is their best customer experience?
      • What are they most proud of from an account rep perspective?
    • What is their most challenging customer experience?
      • What is their biggest weakness?
    • How are their relationships with their delivery and support teams?
      • Can they get the job done for you by effectively working their internal relationships?
    • What are their goals with this account?
      • Besides selling a lot.
    • What relationships do they have within your organization?
      • Are they better situated within your organization than you are?
    Qualify the account team as you would the vendor – get to know their background and history.

    Vendor rules of engagement

    Articulate your vendor expectations in writing

    Clearly document your expectations via formal rules of engagement for vendor teams in order to outline how they are expected to interact with your business and stakeholders. This can have a positive impact on your vendor and stakeholder relationships and enable you to gain control of:

    • Onsite visits and meetings.
    • Submission of proposals, quotes, contracts.
    • Communication between vendors, stakeholders and Procurement.
    • Expectations for ongoing relationship management.

    Include the rules in your RFXs and contracts to formalize your expectations.

    See the Vendor Rules of Engagement template included with this research.

    Download the Vendor Rules of Engagement template

    Sample of the Vendor Rules of Engagement template.

    Evalu-rate your vendor account team

    Measure stakeholder feedback to ensure your account team is on target to meet your needs. Sample of the Evalu-Rate Your Account Team tool.

    Download the Evalu-Rate Your Account Team tool

    • Use a measurable, repeatable process for evaluations.
    • Include feedback from key stakeholders engaged in the relationship.
    • Keep the feedback fact based and have backup.

    Final thoughts: Do’s and don’ts

    DO

    • Be friendly, approachable.
    • Manage the process by which vendors contact your organization – take control!
    • Understand your market position when sourcing goods/services to establish how much leverage you have with vendors.
    • Set vendor meetings according to their criticality to your business.
    • Evaluate your account teams to understand their strengths/weaknesses.
    • Gain stakeholder buy-in to your vendor processes.

    DON'T

    • Don’t be “friends.”
    • Don’t criticize in public.
    • Don’t needlessly escalate.
    • Don’t let the process of vendors communicating with your stakeholders “just happen.”
    • Don’t accept poor performance or attitude.

    Summary of Accomplishment

    Problem Solved

    Upon completion of this blueprint, Guided Implementation, or workshop, your team should have a comprehensive, well-defined, end-to-end approach to evaluating and managing your account team. Leveraging Info-Tech’s industry-proven tools and templates provides your organization with an effective approach to establishing, maintaining, and evaluating your vendor account team; improving your vendor and stakeholder communications; and maintaining control of the client/vendor relationship.

    Additionally, your team will have a foundation to execute your vendor management principles. These principles will assist your organization in ensuring you receive the perceived value from the vendor as a result of your vendor account team evaluation process.

    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

    Bibliography

    “14 Essential Qualities of a Good Salesperson.” Forbes, 5 Oct. 2021. Accessed 11 March 2022.

    “149 Eye-Opening Sales Stats to Consider.” Spotio, 30 Oct. 2018. Accessed 11 March 2022.

    “35 Sales Representative Interview Questions and Answers.” Indeed, 29 Oct. 2021. Accessed 8 March 2022.

    “8 Intelligent Questions for Evaluating Your Sales Reps Performance” Inc., 16 Aug. 2016. Accessed 9 March 2022.

    Altschuler, Max. “Reality Check: You’re Probably A Bad Salesperson If You Possess Any Of These 11 Qualities.” Sales Hacker, 9 Jan. 2018. Accessed 4 May 2022.

    Bertuzzi, Matt. “Account Executive Data Points in the SaaS Marketplace.” Treeline, April 12, 2017. Accessed 9 March 2022. “Appreciation Letter to Vendor – Example, Sample & Writing Tips.” Letters.org, 10 Jan. 2020. Web.

    D’Entremont, Lauren. “Are Your Sales Reps Sabotaging Your Customer Success Without Realizing It?” Proposify, 4 Dec. 2018. Accessed 7 March 2022.

    Freedman, Max. “14 Important Traits of Successful Salespeople.” Business News Daily, 14 April 2022. Accessed 10 April 2022.

    Hansen, Drew. “6 Tips For Hiring Your Next Sales All-Star.” Forbes, 16 Oct. 2012. Web.

    Hulland, Ryan. “Getting Along with Your Vendors.” MonMan, 12 March 2014. Accessed 9 March 2022.

    Lawrence, Jess. “Talking to Vendors: 10 quick tips for getting it right.” Turbine, 30 Oct. 2018. Accessed 11 March 2022.

    Lucero, Karrie. “Sales Turnover Statistics You Need To Know.” Xactly, 24 Aug. 2021. Accessed 9 March 2022.

    Noyes, Jesse. “4 Qualities to Look For in Your Supplier Sales Representative.” QSR, Nov. 2017. Accessed 9 March 2022.

    O’Byrne, Rob. “How To Address Chronic Poor Supplier Performance.” Logistics Bureau, 26 July 2016. Accessed 4 May 2022.

    O'Brien, Jonathan. Supplier Relationship Management: Unlocking the Hidden Value in Your Supply Base. Kogan Page, 2014.

    Short, Alex. “Three Things You Should Consider to Become A Customer of Choice.” Vizibl, 29 Oct. 2021. Web.

    Wayshak, Marc. “18 New Sales Statistics for 2022 from Our Groundbreaking Study!” Sales Insights Lab, 28 March 2022. Web.

    “What Does a Good Customer Experience Look Like In Technology?” Virtual Systems, 23 June 2021. Accessed 10 March 2022.

    Get Started With FinOps

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    • Parent Category Name: Cloud Strategy
    • Parent Category Link: /cloud-strategy
    • Runaway cloud costs are wrecking the CIO’s budget, but cloud costs are hard to reign in because vendors are not always up front about the true costs, it’s easy to oversubscribe to services and quickly run up costs with pay-as-you-go service, and cloud bills are complex.
    • While IT isn’t the business owner for cloud services, they often carry the cost of overruns on their budget, and don’t have the skills or influence to more effectively manage cloud costs.
    • Truly optimizing cloud spend and maximizing business value from cloud requires insight and collaboration from IT/engineering, finance, and business owners, but those teams are often siloed and manage their cloud usage or spend differently.

    Our Advice

    Critical Insight

    • The business units that need to collaborate to make FinOps work are often siloed, with different processes, data, metrics and cloud expertise. Coordinating their efforts to encourage shared responsibility can be a big obstacle to overcome.
    • FinOps requires a cultural shift to empower every cloud user to take accountability for cloud cost optimization.
    • To get started with FinOps, it’s essential to first break down those silos and get the multiple teams involved on the same page. Everyone must understand how FinOps is part of their responsibilities.

    Impact and Result

    • Implementing FinOps will lead to improved visibility and control over cloud spend, optimized resource allocation and reduced cloud waste, enhanced transparency, improved forecasting and budgeting, and increased accountability over cloud costs across business units.
    • This blueprint will help you get started with FinOps by identifying the roles involved in FinOps, defining the key activities that must be conducted, and assigning ownership to each task. This will help foster a shared responsibility for FinOps and encourage everyone to work toward common goals.

    Get Started With FinOps Research & Tools

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

    1. Get Started With FinOps Deck – A guide to defining and assigning the roles and activities involved in FinOps.

    This storyboard will help you define FinOps roles and structure of the FinOps and other teams, identify key activities, and assign ownership to each. It will also provide guidance on analyzing the results of the RACI chart.

    • Get Started With FinOps Storyboard

    2. FinOps RACI Chart – A tool to help you assess the current state of FinOps activities and assign ownership to each.

    This tool will help you assess the current state of FinOps activities and assign ownership to each activity. Use the outputs of the exercise to define how roles across the organization will be involved in FinOps and where to focus efforts in maturing in FinOps.

    • FinOps RACI Chart
    [infographic]

    Further reading

    Get Started With FinOps

    FinOps goes beyond identifying cloud savings. It empowers every cloud user to maximize the value of their spend.

    Executive Brief

    Analyst Perspective

    The first step of FinOps is collectively realizing that maximizing value is every cloud user's responsibility.

    Natalie Sansone

    Natalie Sansone, PhD
    Research Director, Infrastructure & Operations
    Info-Tech Research Group

    As cloud adoption increases, and with it the complexity of cloud environments, managing and optimizing cloud spend has become both a top challenge and priority for IT organizations. In response, the practice of FinOps has emerged to help organizations maximize the value they get from the cloud. As its popularity surges, organizations are told they must do FinOps, but many feel their practice is not yet mature. One of their biggest obstacles is empowering engineers and other cloud users to work toward this shared goal with other teams.

    To grow and mature your FinOps practice, your first challenge is breaking down silos, encouraging collaboration across varying business units, and getting all cloud users to be accountable for their cloud usage and spend and to understand the shared goals of FinOps. Beyond finding ways to reduce cloud costs, FinOps is a cultural shift that enables better collaboration between distributed teams. It allows them to leverage data to identify opportunities to maximize business value from cloud investments.

    Whether you’re starting the FinOps journey or looking to mature your practice, this blueprint will help you organize by defining the required role and tasks. Then you can work through a collective exercise to ensure everyone understands who is involved and responsible for each activity. You’ll gain the information you need and be better positioned to continuously improve and mature your processes, but success begins with everyone understanding that FinOps is a shared responsibility.

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    • Runaway cloud costs are wrecking the CIO’s budget, but these are hard to rein in because cloud vendors are not always upfront about the true costs. It’s easy to oversubscribe to services and quickly run up costs with pay-as-you-go service and complex bills.
    • While IT isn’t the business owner for cloud services, they often carry the cost of overruns on their budget, and don’t have the skills or influence to more effectively manage cloud costs.
    • Truly optimizing cloud spend and maximizing its business value requires insight and collaboration from IT/engineering, finance, and business owners, but those teams are often siloed and manage their cloud usage/spend differently.
    • IT leaders are instructed to implement a FinOps practice, but don’t truly understand what that is, who needs to be involved, or where to start.
    • Business units that must collaborate to make FinOps work are often siloed and have different processes, data, metrics, and cloud expertise. Coordinating efforts to encourage shared responsibility can be a challenge. FinOps requires a cultural shift to empower every cloud user to take accountability for cost optimization.
    • Lack of visibility into cloud usage, spending patterns, and cost drivers along with inadequate tools to get the required data to drive decision making. This leads to hindered progress.
    • Implementing FinOps will improve visibility and control over cloud spend, optimize resource allocation and reduce waste, enhance transparency, improve forecasting and budgeting, and improve cost accountability across business units.
    • To get started with FinOps, first it’s essential to break down those silos and coordinate the multiple teams involved. Everyone must understand how FinOps is part of their responsibilities.
    • This blueprint will help you identify the roles involved in FinOps, define the key activities that must be conducted, and assign ownership to each task. This will help foster a shared responsibility for FinOps and encourage everyone to work toward common goals.

    Info-Tech Insight

    FinOps is not just about driving cloud savings. It’s a cultural shift empowering every cloud user to maximize the value of their spend. The first step of FinOps is therefore to help everyone understand their share of responsibility.

    What is FinOps?

    Definition

    “FinOps is an evolving cloud financial management discipline and cultural practice that enables organizations to get maximum business value by helping engineering, finance, technology, and business teams to collaborate on data-driven spending decisions.”

    Definition Updated: November 2021 by the FinOps Foundation Technical Advisory Council

    The ultimate purpose of FinOps is to bring business value to your organization by reducing cloud waste.

    • FinOps is the people, processes, and tools you use to eliminate waste and ensure you get the most value from your cloud spend.
    • FinOps is the framework within which teams can operate to ensure they are optimizing their use of cloud resources.
    • FinOps brings financial accountability to cloud spend.
    • FinOps is a culture practice where everyone collaborates and takes ownership for their cloud usage while being supported and governed by a central group. It breaks down silos so teams that haven’t worked closely together in the past collaborate toward shared goals.
    • It brings financial accountability and cultural change to cloud spend by enabling distributed teams to better collaborate and leverage data to decide where/when to invest in cloud for maximum business value.
    • FinOps is not done by an individual or just one team. It’s a change in the way that many disparate teams work together, from engineering to finance to business teams.

    Common misconceptions about FinOps

    FinOps is not

    FinOps is

    • Only about saving money
    • Only focused on activities related to cost optimization
    • IT financial management, which involves tracking and analyzing all costs associated with IT services
    • An activity (or set of activities) done by one person or team
    • Short for financial operations
    • About maximizing value. FinOps is optimizing cloud costs to provide maximum business value and support scalability (sometimes this means investing more money in cloud)
    • FinOps also involves building a culture of accountability, visibility, and collaboration around cloud usage and cost
    • Focused specifically on managing/optimizing cloud costs
    • A cultural shift around how disparate teams work together, people from all areas of the organization can play a role
    • The term is a portmanteau (combination) of Finance and (Dev)Ops, emphasizing the collaboration between business and engineering teams1
    1 “What is FinOps?” FinOps Foundation, 2023

    FinOps’ popularity has exploded in recent years

    2012 - The practice of FinOps begins to emerge through early scalers in public cloud like Adobe and Intuit

    2017 - Many IT departments begin to use the cloud for limited use cases, but very few enterprises are all in the cloud

    2019 - Many companies begin moving to a cloud-first strategy, shifting IT spend from capital to operational expenditure (CapEx to OpEx), complicating cloud bills

    February 2019 - The FinOps Foundation is born out of Cloudability’s Customer Advisory Board meeting where many cloud practitioners discuss the need for a community of practitioners

    June 2020 - The FinOps Foundation merges with Linux Foundation and sets the standard for cloud financial management

    Sources: Carr, 2022; Linux Foundation, 2023, Storment & Fuller, 2023.

    The image contains a graph that demonstrates the increasing number of people listing FinOps as a skill.

    Where did the term come from?

    The term FinOps has risen in popularity over the last few years. Originally, organizations used the term cloud cost management, then cloud cost optimization, then more broadly, cloud financial management. The latter has now been largely replaced by FinOps.

    Why is FinOps so essential? (1/2)

    The shift from fixed to variable spend has changed the way organizations must manage and report on costs.

    In the traditional data center era:

    • The enterprise procured infrastructure through large capital refreshes of data center hardware.
    • Infrastructure teams tried their best to avoid running out of storage before the next hardware refresh. Equipment was intentionally oversized to accommodate unexpected growth.
    • IT teams would not worry about how much infrastructure resources they consumed, provided they stayed within planned capacity limits. If capacity ran low, resource usage would be adjusted.
    • The business might not like laying out large capital expenditures, but it had full visibility into the cost and got to approve spending in advance using financial controls.
    • Monthly costs were well-understood and monthly or infrequent reporting was acceptable because day-to-day costs did not vary.
    • Mature organizations might chargeback or showback costs to application teams based on number of virtual machines or other measures, but traditional on-premises chargeback wouldn't save money overall.

    Why is FinOps so essential? (2/2)

    The shift from fixed to variable spend has changed the way organizations must manage and report on costs.

    In the cloud era:

    • Infrastructure resources must no longer be provisioned in advance through spending capital budgets.
    • Capacity management isn’t a major concern. Spare capacity is always available, and savings can result from not paying for unnecessary capacity.
    • Cloud services often offer pay-as-you-go pricing models, allowing more control and flexibility to pay only for the resources you consume.
    • When services use more resources than they need, running costs increase. Cost reductions are realized through reducing the size of allocated resources.
    • The variable consumption model can reduce operating costs but can make budgeting and forecasting difficult. IT and the business can no longer predict what they will pay for infrastructure resources.
    • Billing is no longer straightforward and monthly. Resources are individually charged in micro amounts. Costs must be regularly reviewed as unexpected or forgotten resource usage can add up significantly.

    Managing cloud spend remains a challenge for many organizations

    Given the variable nature of cloud costs and complex pricing structures, it can be easy to overspend without mature FinOps processes in place. Indeed, 82% of organizations cite managing cloud spend as one of their top challenges.

    Respondents reported that public cloud spend was over budget by an average of 18%, up from 13% the previous year.

    Source: Flexera 2023 State of the Cloud Report, n=750

    Organization's top cloud challenges.

    While FinOps adoption has rapidly increased, maturity has not

    Most organizations understand the value of FinOps but are not mature in their practice.

    NetApp’s 2023 State of CloudOps Report found that:

    96% say FinOps is important to their cloud strategy

    9% have a mature FinOps practice

    92% report that they struggle with FinOps

    Source: NetApp, 2023 State of CloudOps Report, n=310 IT decision makers in the United States responsible for public cloud infrastructure investments.

    Flexera’s 2023 State of the Cloud report found that 72% of organizations have a dedicated FinOps team.

    Flexera’s annual report also found that year over year, cloud cost responsibilities are increasingly shifting away from Finance/Accounting and Vendor Management teams and over to FinOps teams as they emerge and mature.

    Source: Flexera, 2023 State of the Cloud Report, n=750 decision-makers and users around the world

    The First 100 Days As CIO

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    • Parent Category Name: High Impact Leadership
    • Parent Category Link: /lead
    • You’ve been promoted from within to the role of CIO.
    • You’ve been hired externally to take on the role of CIO.

    Our Advice

    Critical Insight

    • Foundational understanding must be achieved before you start. Hit the ground running before day one by using company documents and initial discussions to pin down the company’s type and mode.
    • Listen before you act (usually). In most situations, executives benefit from listening to peers and staff before taking action.
    • Identify quick wins early and often. Fix problems as soon as you recognize them to set the tone for your tenure.

    Impact and Result

    • Collaborate to collect the details needed to identify the right mode for your organization and determine how it will influence your plan.
    • Use Info-Tech’s diagnostic tools to align your vision with that of business executives and form a baseline for future reference.

    The First 100 Days As CIO Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why the first 100 days of being a new executive is a crucial time that requires the right balance of listening with taking action. See how seven calls with an executive advisor will guide you through this period.

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

    1. Check in with your executive advisor over seven calls

    Organize your first 100 days as CIO into activities completed within two-week periods, aided by the guidance of an executive advisor.

    • The First 100 Days As CIO – Storyboard
    • Organizational Catalog
    • Cultural Archetype Calculator
    • IT Capability Assessment

    2. Communicate your plan to your manager

    Communicate your strategy with a presentation deck that you will complete in collaboration with Info-Tech advisors.

    • The First 100 Days As CIO – Presentation Deck

    3. View an example of the final presentation

    See an example of a completed presentation deck, from the new CIO of Gotham City.

    • The First 100 Days As CIO – Presentation Deck Example

    4. Listen to our podcast

    Check out The Business Leadership podcast in Info-Tech's special series, The First 100 Days.

    • "The First 100 Days" Podcast – Alan Fong, CTO, DealerFX
    • "The First 100 Days" Podcast – Denis Gaudreault, country manager for Intel’s Canada and Latin America region
    • "The First 100 Days" Podcast – Dave Penny & Andrew Wertkin, BlueCat
    • "The First 100 Days" Podcast – Susan Bowen, CEO, Aptum
    • "The First 100 Days" Podcast – Wayne Berger, CEO IWG Plc Canada and Latin America
    • "The First 100 Days" Podcast – Eric Wright, CEO, LexisNexis Canada
    • "The First 100 Days" Podcast – Erin Bury, CEO, Willful
    [infographic]

    Further reading

    The First 100 Days As CIO

    Partner with Info-Tech for success in this crucial period of transition.

    Analyst Perspective

    The first 100 days refers to the 10 days before you start and the first three months on the job.

    “The original concept of ‘the first 100 days’ was popularized by Franklin Delano Roosevelt, who passed a battery of new legislation after taking office as US president during the Great Depression. Now commonly extended to the business world, the first 100 days of any executive role is a critically important period for both the executive and the organization.

    But not every new leader should follow FDR’s example of an action-first approach. Instead, finding the right balance of listening and taking action is the key to success during this transitional period. The type of the organization and the mode that it’s in serves as the fulcrum that determines where the point of perfect balance lies. An executive facing a turnaround situation will want to focus on more action more quickly. One facing a sustaining success situation or a realignment situation will want to spend more time listening before taking action.” (Brian Jackson, Research Director, CIO, Info-Tech Research Group)

    Executive summary

    Situation

    • You’ve been promoted from within to the role of CIO.
    • You’ve been hired externally to take on the role of CIO.

    Complication

    Studies show that two years after a new executive transition, as many as half are regarded as failures or disappointments (McKinsey). First impressions are hard to overcome, and a CIO’s first 100 days are heavily weighted in terms of how others will assess their overall success. The best way to approach this period is determined by both the size and the mode of an organization.

    Resolution

    • Work with Info-Tech to prepare a 100-day plan that will position you for success.
    • Collaborate to collect the details needed to identify the right mode for your organization and determine how it will influence your plan.
    • Use Info-Tech’s diagnostic tools to align your vision with that of business executives and form a baseline for future reference.

    Info-Tech Insight

    1. Foundational understanding must be achieved before you start.
      Hit the ground running before day one by using company documents and initial discussions to pin down the company’s type and mode.
    2. Listen before you act (usually).
      In most situations, executives benefit from listening to peers and staff before taking action.
    3. Identify quick wins early and often.
      Fix problems as soon as you recognize them to set the tone for your tenure.

    The First 100 Days: Roadmap

    A roadmap timeline of 'The 100-Day Plan' for your first 100 days as CIO and related Info-Tech Diagnostics. Step A: 'Foundational Preparation' begins 10 days prior to your first day. Step B: 'Management's Expectations' is Days 0 to 30, with the diagnostic 'CIO-CEO Alignment'. Step C: 'Assessing the IT Team' is Days 10 to 75, with the diagnostics 'IT M&G Diagnostic' at Day 30 and 'IT Staffing Assessment' at Day 60. Step D: 'Assess the Key Stakeholders' is Days 40 to 85 with the diagnostic 'CIO Business Vision Survey'. Step E: 'Deliver First-Year Plan' is Days 80 to 100.

    Concierge service overview

    Organize a call with your executive advisor every two weeks during your first 100 days. Info-Tech recommends completing our diagnostics during this period. If you’re not able to do so, instead complete the alternative activities marked with (a).

    Call 1 Call 2 Call 3 Call 4 Call 5 Call 6 Call 7
    Activities
    Before you start: Day -10 to Day 1
    • 1.1 Interview your predecessor.
    • 1.2 Learn the corporate structure.
    • 1.3 Determine STARS mode.
    • 1.4 Create a one-page intro sheet.
    • 1.5 Update your boss.
    Day 0 to 15
    • 2.1 Introduce yourself to your team.
    • 2.2 Document your sphere of influence.
    • 2.3 Complete a competitor array.
    • 2.4 Complete the CEO-CIO Alignment Program.
    • 2.4(a) Agree on what success looks like with the boss.
    • 2.5 Inform team of IT M&G Framework.
    Day 16 to 30
    • 3.1 Determine the team’s cultural archetype.
    • 3.2 Create a cultural adjustment plan.
    • 3.3 Initiate IT M&G Diagnostic.
    • 3.4 Conduct a high-level analysis of current IT capabilities.
    • 3.4 Update your boss.
    Day 31 to 45
    • 4.1 Inform stakeholders about CIO Business Vision survey.
    • 4.2 Get feedback on initial assessments from your team.
    • 4.3 Initiate CIO Business Vision survey.
    • 4.3(a) Meet stakeholders and catalog details.
    Day 46 to 60
    • 5.1 Inform the team that you plan to conduct an IT staffing assessment.
    • 5.2 Initiate the IT Staffing Assessment.
    • 5.3 Quick wins: Make recommend-ations based on CIO Business Vision Diagnostic/IT M&G Framework.
    • 5.4 Update your boss.
    Day 61 to 75
    • 6.1 Run a start, stop, continue exercise with IT staff.
    • 6.2 Make a categorized vendor list.
    • 6.3 Determine the alignment of IT commitments with business objectives.
    Day 76 to 90
    • 7.1 Finalize your vision – mission – values statement.
    • 7.2 Quick Wins: Make recommend-ations based on IT Staffing Assessment.
    • 7.3 Create and communicate a post-100-day plan.
    • 7.4 Update your boss.
    Deliverables Presentation Deck Section A: Foundational Preparation Presentation Deck slides 9, 11-13, 19-20, 29 Presentation Deck slides 16, 17, 21 Presentation Deck slides 30, 34 Presentation Deck slides 24, 25, 2 Presentation Deck slides 27, 42

    Call 1

    Before you start: Day -10 to Day 1

    Interview your predecessor

    Interviewing your predecessor can help identify the organization’s mode and type.

    Before reaching out to your predecessor, get a sense of whether they were viewed as successful or not. Ask your manager. If the predecessor remains within the organization in a different role, understand your relationship with them and how you'll be working together.

    During the interview, make notes about follow-up questions you'll ask others at the organization.

    Ask these open-ended questions in the interview:

    • Tell me about the team.
    • Tell me about your challenges.
    • Tell me about a major project your team worked on. How did it go?
    • Who/what has been helpful during your tenure?
    • Who/what created barriers for you?
    • What do your engagement surveys reveal?
    • Tell me about your performance management programs and issues.
    • What mistakes would you avoid if you could lead again?
    • Why are you leaving?
    • Could I reach out to you again in the future?

    Learn the corporate structure

    Identify the organization’s corporate structure type based on your initial conversations with company leadership. The type of structure will dictate how much control you'll have as a functional head and help you understand which stakeholders you'll need to collaborate with.

    To Do:

    • Review the organization’s structure list and identify whether the structure is functional, prioritized, or a matrix. If it's a matrix organization, determine if it's a strong matrix (project manager holds more authority), weak matrix (functional manager holds more authority), or balanced matrix (managers hold equal authority).

    Functional

    • Most common structure.
    • Traditional departments such as sales, marketing, finance, etc.
    • Functional managers hold most authority.

    Projectized

    • Most programs are implemented through projects with focused outcomes.
    • Teams are cross-functional.
    • Project managers hold the most authority.

    Matrix

    • Combination of projectized and functional.
    • Organization is a dynamic environment.
    • Authority of functional manager flows down through division, while authority of project manager flows sideways through teams.

    This organization is a ___________________ type.

    (Source: Simplilearn)

    Presentation Deck, slide 6

    Determine the mode of the organization: STARS

    Based on your interview process and discussions with company leadership, and using Michael Watkins’ STARS assessment, determine which mode your organization is in: startup, turnaround, accelerated growth, realignment, or sustaining success.

    Knowing the mode of your organization will determine how you approach your 100-day plan. Depending on the mode, you'll rebalance your activities around the three categories of assess, listen, and deliver.

    To Do:

    • Review the STARS table on the right.

    Based on your situation, prioritize activities in this way:

    • Startup: assess, listen, deliver
    • Turnaround: deliver, listen, assess
    • Accelerated Growth: assess, listen, deliver
    • Realignment: listen, assess, deliver
    • Sustaining success: listen, assess, deliver

    This organization is a ___________________ type.

    (Source: Watkins, 2013.)

    Presentation Deck, slide 6

    Determine the mode of the organization: STARS

    STARS Startup Turnaround Accelerated Growth Realignment Sustaining Success
    Definition Assembling capabilities to start a project. Project is widely seen as being in serious trouble. Managing a rapidly expanding business. A previously successful organization is now facing problems. A vital organization is going to the next level.
    Challenges Must build strategy, structures, and systems from scratch. Must recruit and make do with limited resources. Stakeholders are demoralized; slash and burn required. Requires structure and systems to scale; hiring and onboarding. Employees need to be convinced change is needed; restructure at the top required. Risk of living in shadow of a successful former leader.
    Advantages No rigid preconceptions. High-energy environment and easy to pivot. A little change goes a long way when people recognize the need. Motivated employee base willing to stretch. Organization has clear strengths; people desire success. Likely a strong team; foundation for success likely in place.

    Satya Nadella's listen, lead, and launch approach

    CASE STUDY

    Industry Software
    Source Gregg Keizer, Computerworld, 2014

    When Satya Nadella was promoted to the CEO role at Microsoft in 2014, he received a Glassdoor approval rating of 85% and was given an "A" grade by industry analysts after his first 100 days. What did he do right?

    • Created a sense of urgency by shaking up the senior leadership team.
    • Already understood the culture as an insider.
    • Listened a lot and did many one-on-one meetings.
    • Established a vision communicated with a mantra that Microsoft would be "mobile-first, cloud-first."
    • Met his words with actions. He launched Office for iPad and made many announcements for cloud platform Azure.
    Photo of Satya Nadella, CEO, Microsoft Corp.
    Satya Nadella, CEO, Microsoft Corp. (Image source: Microsoft)

    Listen to 'The First 100 Days' podcast – Alan Fong

    Create a one-page introduction sheet to use in communications

    As a new CIO, you'll have to introduce yourself to many people in the organization. To save time on communicating who you are as a person outside of the office, create a brief one-pager that includes a photo of you, where you were born and raised, and what your hobbies are. This helps make a connection more quickly so your conversations can focus on the business at hand rather than personal topics.

    For your presentation deck, remove the personal details and just keep it professional. The personal aspects can be used as a one-pager for other communications. (Source: Personal interview with Denis Gaudreault, Country Lead, Intel.)

    Presentation Deck, slide 5

    Call 2

    Day 1 to Day 15

    Introduce yourself to your team

    Prepare a 20-second pitch about yourself that goes beyond your name and title. Touch on your experience that's relevant to your new role or the industry you're in. Be straightforward about your own perceived strengths and weaknesses so that people know what to expect from you. Focus on the value you believe you'll offer the group and use humor and humility where you're comfortable. For example:

    “Hi everyone, my name is John Miller. I have 15 years of experience marketing conferences like this one to vendors, colleges, and HR departments. What I’m good at, and the reason I'm here, is getting the right people, businesses, and great ideas in a room together. I'm not good on details; that's why I work with Tim. I promise that I'll get people excited about the conference, and the gifts and talents of everyone else in this room will take over from there. I'm looking forward to working with all of you.”

    Have a structured set of questions ready that you can ask everyone.

    For example:
    • How well is the company performing based on expectations?
    • What must the company do to sustain its financial performance and market competitiveness?
    • How do you foresee the CIO contributing to the team?
    • How have past CIOs performed from the perspective of the team?
    • What would successful performance of this role look like to you? To your peers?
    • What challenges and obstacles to success am I likely to encounter? What were the common challenges of my predecessor?
    • How do you view the culture here and how do successful projects tend to get approved?
    • What are your greatest challenges? How could I help you?

    Get to know your sphere of influence: prepare to connect with a variety of people before you get down to work

    Your ability to learn from others is critical at every stage in your first 100 days. Keep your sphere of influence in the loop as you progress through this period.

    A diagram of circles within circles representing your spheres of influence. The smallest circle is 'IT Leaders' and is noted as your 'Immediate circle'. The next largest circle is 'IT Team', then 'Peers - Business Leads', then 'Internal Clients' which is noted as you 'Extended circle'. The largest circle is 'External clients'.

    Write down the names, or at least the key people, in each segment of this diagram. This will serve as a quick reference when you're planning communications with others and will help you remember everyone as you're meeting lots of new people in your early days on the job.

    • Everyone knows their networks are important.
    • However, busy schedules can cause leaders to overlook their many audiences.
    • Plan to meet and learn from all people in your sphere to gain a full spectrum of insights.

    Presentation Deck, slide 29

    Identify how your competitors are leveraging technology for competitive advantage

    Competitor identification and analysis are critical steps for any new leader to assess the relative strengths and weaknesses of their organization and develop a sense of strategic opportunity and environmental awareness.

    Today’s CIO is accountable for driving innovation through technology. A competitive analysis will provide the foundation for understanding the current industry structure, rivalry within it, and possible competitive advantages for the organization.

    Surveying your competitive landscape prior to the first day will allow you to come to the table prepared with insights on how to support the organization and ensure that you are not vulnerable to any competitive blind spots that may exist in the evaluations conducted by the organization already.

    You will not be able to gain a nuanced understanding of the internal strengths and weaknesses until you are in the role, so focus on the external opportunities and how competitors are using technology to their advantage.

    Info-Tech Best Practice

    For a more in-depth approach to identifying and understanding relevant industry trends and turning them into insights, leverage the following Info-Tech blueprints:

    Presentation Deck, slide 9

    Assess the external competitive environment

    Associated Activity icon

    INPUT: External research

    OUTPUT: Competitor array

    1. Conduct a broad analysis of the industry as a whole. Seek to answer the following questions:
      1. Are there market developments or new markets?
      2. Are there industry or lifestyle trends, e.g. move to mobile?
      3. Are there geographic changes in the market?
      4. Are there demographic changes that are shaping decision making?
      5. Are there changes in market demand?
    2. Create a competitor array by identifying and listing key competitors. Try to be as broad as possible here and consider not only entrenched close competitors but also distant/future competitors that may disrupt the industry.
    3. Identify the strengths, weaknesses, and key brand differentiators that each competitor brings to the table. For each strength and differentiator, brainstorm ways that IT-based innovation enables each. These will provide a toolkit for deeper conversations with your peers and your business stakeholders as you move further into your first 100 days.
    Competitor Strengths Weaknesses Key Differentiators IT Enablers
    Competitor 1
    Competitor 2
    Competitor 3

    Complete the CEO-CIO Alignment Program

    Associated Activity icon Run the diagnostic program or use the alternative activities to complete your presentation

    INPUT: CEO-CEO Alignment Program (recommended)

    OUTPUT: Desired and target state of IT maturity, Innovation goals, Top priorities

    Materials: Presentation Deck, slides 11-13

    Participants: CEO, CIO

    Introduce the concept of the CEO-CIO Alignment Program using slide 10 of your presentation deck and the brief email text below.

    Talk to your advisory contact at Info-Tech about launching the program. More information is available on Info-Tech’s website.

    Once the report is complete, import the results into your presentation:

    • Slide 11, the CEO’s current and desired states
    • Slide 12, IT innovation goals
    • Slide 13, top projects and top departments from the CEO and the CIO

    Include any immediate recommendations you have.

    Hello CEO NAME,

    I’m excited to get started in my role as CIO, and to hit the ground running, I’d like to make sure that the IT department is aligned with the business leadership. We will accomplish this using Info-Tech Research Group’s CEO-CIO Alignment Program. It’s a simple survey of 20 questions to be completed by the CEO and the CIO.

    This survey will help me understand your perception and vision as I get my footing as CIO. I’ll be able to identify and build core IT processes that will automate IT-business alignment going forward and create an effective IT strategy that helps eliminate impediments to business growth.

    Research shows that IT departments that are effectively aligned to business goals achieve more success, and I’m determined to make our IT department as successful as possible. I look forward to further detailing the benefits of this program to you and answering any questions you may have the next time we speak.

    Regards,
    CIO NAME

    New KPIs for CEO-CIO Alignment — Recommended

    Info-Tech CEO-CIO Alignment Program

    Info-Tech's CEO-CIO Alignment Program is set up to build IT-business alignment in any organization. It helps the CIO understand CEO perspectives and priorities. The exercise leads to useful IT performance indicators, clarifies IT’s mandate and which new technologies it should invest in, and maps business goals to IT priorities.

    Benefits

    Master the Basics
    Cut through the jargon.
    Take a comprehensive look at the CEO perspective.
    Target Alignment
    Identify how IT can support top business priorities. Address CEO-CIO differences.
    Start on the Right Path
    Get on track with the CIO vision. Use correct indicators and metrics to evaluate IT from day one.

    Supporting Tool or Template icon Additional materials are available on Info-Tech’s website.

    The desired maturity level of IT — Alternative

    Associated Activity icon Use only if you can’t complete the CEO-CIO Alignment Program

    Step 1: Where are we today?

    Determine where the CEO sees the current overall maturity level of the IT organization.

    Step 2: Where do we want to be as an organization?

    Determine where the CEO wants the IT organization to be in order to effectively support the strategic direction of the business.

    A colorful visual representation of the different IT maturity levels. At the bottom is 'STRUGGLE, Unable to Provide Reliable Business Services', then moving upwards are 'SUPPORT, Reliable Infrastructure and IT Service Desk', 'OPTIMIZE, Effective Fulfillment of Work Orders, Functional Business Applications, and Reliable Service Management', 'EXPAND, Effective Execution on Business Projects, Strategic Use of Analytics and Customer Technology', and at the top is 'TRANSFORM, Reliable Technology Innovation'.

    Presentation Deck, slide 11

    Tim Cook's powerful use of language

    CASE STUDY

    Industry Consumer technology
    Source Carmine Gallo, Inc., 2019

    Apple CEO Tim Cook, an internal hire, had big shoes to fill after taking over from the late Steve Jobs. Cook's ability to control how the company is perceived is a big credit to his success. How does he do it? His favorite five words are “The way I see it..." These words allow him to take a line of questioning and reframe it into another perspective that he wants to get across. Similarly, he'll often say, "Let me tell you the way I look at it” or "To put it in perspective" or "To put it in context."

    In your first two weeks on the job, try using these phrases in your conversations with peers and direct reports. It demonstrates that you value their point of view but are independently coming to conclusions about the situation at hand.

    Photo of Tim Cook, CEO, Apple Inc.
    Tim Cook, CEO, Apple Inc. (Image source: Apple)

    Listen to 'The First 100 Days' podcast – Denis Gaudreault

    Inform your team that you plan to do an IT Management & Governance Diagnostic survey

    Associated Activity icon Run the diagnostic program or use the alternative activities to complete your presentation

    INPUT: IT Management & Governance Diagnostic (recommended)

    OUTPUT: Process to improve first, Processes important to the business

    Materials: Presentation Deck, slides 19-20

    Participants: CIO, IT staff

    Introduce the IT Management & Governance Diagnostic survey that will help you form your IT strategy.

    Explain that you want to understand current IT capabilities and you feel a formal approach is best. You’ll also be using this approach as an important metric to track your department’s success. Tell them that Info-Tech Research Group will be conducting the survey and it’s important to you that they take action on the email when it’s sent to them.

    Example email:

    Hello TEAM,

    I appreciate meeting each of you, and so far I’m excited about the talents and energy on the team. Now I need to understand the processes and capabilities of our department in a deeper way. I’d like to map our process landscape against an industry-wide standard, then dive deeper into those processes to understand if our team is aligned. This will help us be accountable to the business and plan the year ahead. Advisory firm Info-Tech Research Group will be reaching out to you with a simple survey that shouldn’t take too long to complete. It’s important to me that you pay attention to that message and complete the survey as soon as possible.

    Regards,
    CIO NAME

    Call 3

    Day 16 to Day 30

    Leverage team interviews as a source of determining organizational culture

    Info-Tech recommends that you hold group conversations with your team to uncover their opinions of the current organizational culture. This not only helps build transparency between you and your team but also gives you another means of observing behavior and reactions as you listen to team members’ characterizations of the current culture.

    A visualization of the organizational culture of a company asks the question 'What is culture?' Five boxes are stacked, the bottom two are noted as 'The invisible causes' and the top two are noted as 'The visible signs'. From the bottom, 'Fundamental assumptions and beliefs', 'Values and attitudes', 'The way we do things around here', 'Behaviors', and at the top, 'Environment'. (Source: Hope College Blog Network)

    Note: It is inherently difficult for people to verbalize what constitutes a culture – your strategy for extracting this information will require you to ask indirect questions to solicit the highest value information.

    Questions for Discussion:

    • What about the current organizational environment do you think most contributes to your success?
    • What barriers do you experience as you try to accomplish your work?
    • What is your favorite quality that is present in our organization?
    • What is the one thing you would most like to change about this organization?
    • Do the organization's policies and procedures support your efforts to accomplish work or do they impede your progress?
    • How effective do you think IT’s interactions are with the larger organization?
    • What would you consider to be IT’s top three guiding principles?
    • What kinds of people fail in this organization?

    Supporting Tool or Template icon See Info-Tech’s Cultural Archetype Calculator.

    Use the Competing Values Framework to define your organization’s cultural archetype

    THE COMPETING VALUES FRAMEWORK (CVF):

    CVF represents the synthesis of academic study of 39 indicators of effectiveness for organizations. Using a statistical analysis, two polarities that are highly predictive of differences in organizational effectiveness were isolated:

    1. Internal focus and integration vs. external focus and differentiation.
    2. Stability and control vs. flexibility and discretion.

    By plotting these dimensions on a matrix of competing values, four main cultural archetypes are identified with their own value drivers and theories of effectiveness.

    A map of cultural archetypes with 'Internal control and integration' on the left, 'External focus and differentiation' on the right, 'Flexibility and discretion' on top, and 'Stability and control' on the bottom. Top left is 'Clan Archetype', internal and flexible. Top right is 'Adhocracy Archetype', external and flexible. Bottom left is 'Hierarchy Archetype', internal and controlled. Bottom right is 'Market Archetype', external and controlled.

    Presentation Deck, slide 16

    Create a cultural adjustment plan

    Now that you've assessed the cultural archetype, you can plan an appropriate approach to shape the culture in a positive way. When new executives want to change culture, there are a few main options at hand:

    Autonomous evolution: Encourage teams to learn from each other. Empower hybrid teams to collaborate and reward teams that perform well.

    Planned and managed change: Create steering committee and project-oriented taskforces to work in parallel. Appoint employees that have cultural traits you'd like to replicate to hold responsibility for these bodies.

    Cultural destruction: When a toxic culture needs to be eliminated, get rid of its carriers. Putting new managers or directors in place with the right cultural traits can be a swift and effective way to realign.

    Each option boils down to creating the right set of incentives and deterrents. What behaviors will you reward and which ones will you penalize? What do those consequences look like? Sometimes, but not always, some structural changes to the team will be necessary. If you feel these changes should be made, it's important to do it sooner rather than later. (Source: “Enlarging Your Sphere of Influence in Your Organization,” MindTools Corporate, 2014.)

    As you're thinking about shaping a desired culture, it's helpful to have an easy way to remember the top qualities you want to espouse. Try creating an acronym that makes it easy for staff to remember. For example: RISE could remind your staff to be Responsive, Innovative, Sustainable, and Engaging (RISE). Draw upon your business direction from your manager to help produce desired qualities (Source: Jennifer Schaeffer).

    Presentation Deck, slide 17

    Gary Davenport’s welcome “surprise”

    CASE STUDY

    Industry Telecom
    Source Interview with Gary Davenport

    After Gary Davenport was hired on as VP of IT at MTS Allstream, his first weekend on the job was spent at an all-executive offsite meeting. There, he learned from the CEO that the IT department had a budget reduction target of 25%, like other departments in the company. “That takes your breath away,” Davenport says.

    He decided to meet the CEO monthly to communicate his plans to reduce spending while trying to satisfy business stakeholders. His top priorities were:

    1. Stabilize IT after seven different leaders in a five-year period.
    2. Get the IT department to be respected. To act like business owners instead of like servants.
    3. Better manage finances and deliver on projects.

    During Davenport’s 7.5-year tenure, the IT department became one of the top performers at MTS Allstream.

    Photo of Gary Davenport.
    Gary Davenport’s first weekend on the job at MTS Allstream included learning about a 25% reduction target. (Image source: Ryerson University)

    Listen to 'The First 100 Days' podcast – David Penny & Andrew Wertkin

    Initiate IT Management & Governance Diagnostic — Recommended

    Info-Tech Management & Governance Diagnostic

    Talk to your Info-Tech executive advisor about launching the survey shortly after informing your team to expect it. You'll just have to provide the names and email addresses of the staff you want to be involved. Once the survey is complete, you'll harvest materials from it for your presentation deck. See slides 19 and 20 of your deck and follow the instructions on what to include.

    Benefits

    A sample of the 'High Level Process Landscape' materials available from Info-Tech. A sample of the 'Strategy and Governance In Depth Results' materials available from Info-Tech. A sample of the 'Process Accountability' materials available from Info-Tech.
    Explore IT Processes
    Dive deeper into performance. Highlight problem areas.
    Align IT Team
    Build consensus by identifying opposing views.
    Ownership & Accountability
    Identify process owners and hold team members accountable.

    Supporting Tool or Template icon Additional materials available on Info-Tech’s website.

    Conduct a high-level analysis of current IT capabilities — Alternative

    Associated Activity icon

    INPUT: Interviews with IT leadership team, Capabilities graphic on next slide

    OUTPUT: High-level understanding of current IT capabilities

    Run this activity if you're not able to conduct the IT Management & Governance Diagnostic.

    Schedule meetings with your IT leadership team. (In smaller organizations, interviewing everyone may be acceptable.) Provide them a list of the core capabilities that IT delivers upon and ask them to rate them on an effectiveness scale of 1-5, with a short rationale for their score.

    • 1. Not effective (NE)
    • 2. Somewhat Effective (SE)
    • 3. Effective (E)
    • 4. Very Effective (VE)
    • 5. Extremely Effective (EE)

    Presentation Deck, slide 21

    Use the following set of IT capabilities for your assessment

    Strategy & Governance

    IT Governance Strategy Performance Measurement Policies Quality Management Innovation

    People & Resources

    Stakeholder Management Resource Management Financial Management Vendor Selection & Contract Management Vendor Portfolio Management Workforce Strategy Strategic Comm. Organizational Change Enablement

    Service Management & Operations

    Operations Management Service Portfolio Management Release Management Service Desk Incident & Problem Management Change Management Demand Management

    Infrastructure

    Asset Management Infrastructure Portfolio Management Availability & Capacity Management Infrastructure Management Configuration Management

    Information Security & Risk

    Security Strategy Risk Management Compliance, Audit & Review Security Detection Response & Recovery Security Prevention

    Applications

    Application Lifecycle Management Systems Integration Application Development User Testing Quality Assurance Application Maintenance

    PPM & Projects

    Portfolio Management Requirements Gathering Project Management

    Data & BI

    Data Architecture BI & Reporting Data Quality & Governance Database Operations Enterprise Content Management

    Enterprise Architecture

    Enterprise Architecture Solution Architecture

    Quick wins: CEO-CIO Alignment Program

    Complete this while waiting on the IT M&G survey results. Based on your completed CEO-CIO Alignment Report, identify the initiatives you can tackle immediately.

    If you are here... And want to be here... Drive toward... Innovate around...
    Business Partner Innovator Leading business transformation
    • Emerging technologies
    • Analytical capabilities
    • Risk management
    • Customer-facing tech
    • Enterprise architecture
    Trusted Operator Business Partner Optimizing business process and supporting business transformation
    • IT strategy and governance
    • Business architecture
    • Projects
    • Resource management
    • Data quality
    Firefighter Trusted Operator Optimize IT processes and services
    • Business applications
    • Service management
    • Stakeholder management
    • Work orders
    Unstable Firefighter Reduce use disruption and adequately support the business
    • Network and infrastructure
    • Service desk
    • Security
    • User devices

    Call 4

    Day 31 to Day 45

    Inform your peers that you plan to do a CIO Business Vision survey to gauge your stakeholders’ satisfaction

    Associated Activity icon Run the diagnostic program or use the alternative activities to complete your presentation

    INPUT: CIO Business Vision survey (recommended)

    OUTPUT: True measure of business satisfaction with IT

    Materials: Presentation Deck, slide 30

    Participants: CIO, IT staff

    Meet the business leaders at your organization face-to-face if possible. If you can't meet in person, try a video conference to establish some rapport. At the end of your introduction and after listening to what your colleague has to say, introduce the CIO Business Vision Diagnostic.

    Explain that you want to understand how to meet their business needs and you feel a formal approach is best. You'll also be using this approach as an important metric to track your department's success. Tell them that Info-Tech Research Group will be conducting the survey and it’s important to you that they take the survey when the email is sent to them.

    Example email:

    Hello PEER NAMES,

    I'm arranging for Info-Tech Research Group to invite you to take a survey that will be important to me. The CIO Business Vision survey will help me understand how to meet your business needs. It will only take about 15 minutes of your time, and the top-line results will be shared with the organization. We will use the results to plan initiatives for the future that will improve your satisfaction with IT.

    Regards,
    CIO NAME

    Gain feedback on your initial assessments from your IT team

    There are two strategies for gaining feedback on your initial assessments of the organization from the IT team:

    1. Review your personal assessments with the relevant members of your IT organization as a group. This strategy can help to build trust and an open channel for communication between yourself and your team; however, it also runs the risk of being impacted by groupthink.
    2. Ask for your team to complete their own assessments for you to compare and contrast. This strategy can help extract more candor from your team, as they are not expected to communicate what may be nuanced perceptions of organizational weaknesses or criticisms of the way certain capabilities function.

    Who you involve in this process will be impacted by the size of your organization. For larger organizations, involve everyone down to the manager level. In smaller organizations, you may want to involve everyone on the IT team to get an accurate lay of the land.

    Areas for Review:

    • Strategic Document Review: Are there any major themes or areas of interest that were not covered in my initial assessment?
    • Competitor Array: Are there any initiatives in flight to leverage new technologies?
    • Current State of IT Maturity: Does IT’s perception align with the CEO’s? Where do you believe IT has been most effective? Least effective?
    • IT’s Key Priorities: Does IT’s perception align with the CEO’s?
    • Key Performance Indicators: How has IT been measured in the past?

    Info-Tech Best Practice

    You need your team’s hearts and minds or you risk a short tenure. Overemphasizing business commitment by neglecting to address your IT team until after you meet your business stakeholders will result in a disenfranchised group. Show your team their importance.

    Susan Bowen's talent maximization

    CASE STUDY

    Industry Infrastructure Services
    Source Interview with Susan Bowen

    Susan Bowen was promoted to be the president of Cogeco Peer 1, an infrastructure services firm, when it was still a part of Cogeco Communications. Part of her mandate was to help spin out the business to a new owner, which occurred when it was acquired by Digital Colony. The firm was renamed Aptum and Bowen was put in place as CEO, which was not a certainty despite her position as president at Cogeco Peer 1. She credits her ability to put the right talent in the right place as part of the reason she succeeded. After becoming president, she sought a strong commitment from her directors. She gave them a choice about whether they'd deliver on a new set of expectations – or not. She also asks her leadership on a regular basis if they are using their talent in the right way. While it's tempting for directors to want to hold on to their best employees, those people might be able to enable many more people if they can be put in another place.

    Bowen fully rounded out her leadership team after Aptum was formed. She created a chief operating officer and a chief infrastructure officer. This helped put in place more clarity around roles at the firm and put an emphasis on client-facing services.

    Photo of Susan Bowen, CEO, Aptum.
    Susan Bowen, CEO, Aptum (Image source: Aptum)

    Listen to 'The First 100 Days' podcast – Susan Bowen

    Initiate CIO Business Vision survey – new KPIs for stakeholder management — Recommended

    Info-Tech CIO Business Vision

    Be sure to effectively communicate the context of this survey to your business stakeholders before you launch it. Plan to talk about your plans to introduce it in your first meetings with stakeholders. When ready, let your executive advisor know you want to launch the tool and provide the names and email addresses of the stakeholders you want involved. After you have the results, harvest the materials required for your presentation deck. See slide 30 and follow the instructions on what to include.

    Benefits

    Icon for Key Stakeholders. Icon for Credibility. Icon for Improve. Icon for Focus.
    Key Stakeholders
    Clarify the needs of the business.
    Credibility
    Create transparency.
    Improve
    Measure IT’s progress.
    Focus
    Find what’s important.

    Supporting Tool or Template icon Additional materials are available on Info-Tech’s website.

    Create a catalog of key stakeholder details to reference prior to future conversations — Alternative

    Only conduct this activity if you’re not able to run the CIO Business Vision diagnostic.

    Use the Organizational Catalog as a personal cheat sheet to document the key details around each of your stakeholders, including your CEO when possible.

    The catalog will be an invaluable tool to keep the competing needs of your different stakeholders in line, while ensuring you are retaining the information to build the political capital needed to excel in the C-suite.

    Note: It is important to keep this document private. While you may want to communicate components of this information, ensure your catalog remains under lock and (encryption) key.

    Screenshot of the Organizational Catalog for Stakeholders. At the top are spaces for 'Name', 'Job Title', etc. Boxes include 'Key Personal Details', 'Satisfaction Levels With IT', 'Preferred Communications', 'Key Activities', 'In-Flight and Scheduled Projects', 'Key Performance Indicators', and 'Additional Details'.

    Info-Tech Insight

    While profiling your stakeholders is important, do not be afraid to profile yourself as well. Visualizing how your interests overlap with those of your stakeholders can provide critical information on how to manage your communications so that those on the receiving end are hearing exactly what they need.

    Activity: Conduct interviews with your key business stakeholders — Alternative

    Associated Activity icon

    1. Once you have identified your key stakeholders through your interviews with your boss and your IT team, schedule a set of meetings with those individuals.
    2. Use the meetings to get to know your stakeholders, their key priorities and initiatives, and their perceptions of the effectiveness of IT.
      1. Use the probative questions to the right to elicit key pieces of information.
      2. Refer to the Organizational Catalog tool for more questions to dig deeper in each category. Ensure that you are taking notes separate from the tool and are keeping the tool itself secure, as it will contain private information specific to your interests.
    3. Following each meeting, record the results of your conversation and any key insights in the Organizational Catalog. Refer to the following slide for more details.

    Questions for Discussion:

    • Be indirect about your personal questions – share stories that will elicit details about their interests, kids, etc.
    • What are your most critical/important initiatives for the year?
    • What are your key revenue streams, products, and services?
    • What are the most important ways that IT supports your success? What is your satisfaction level with those services?
    • Are there any current in-flight projects or initiatives that are a current pain point? How can IT assist to alleviate challenges?
    • How is your success measured? What are your targets for the year on those metrics?

    Presentation Deck, slide 34

    Call 5

    Day 46 to Day 60

    Inform your team that you plan to do an IT staffing assessment

    Associated Activity icon Introduce the IT Staffing Assessment that will help you get the most out of your team

    INPUT: Email template

    OUTPUT: Ready to launch diagnostic

    Materials: Email template, List of staff, Sample of diagnostic

    Participants: CIO, IT staff

    Explain that you want to understand how the IT staff is currently spending its time by function and by activity. You want to take a formal approach to this task and also assess the team’s feelings about its effectiveness across different processes. The results of the assessment will serve as the foundation that helps you improve your team’s effectiveness within the organization.

    Example email:

    Hello PEER NAMES,

    The feedback I've heard from the team since joining the company has been incredibly useful in beginning to formulate my IT strategy. Now I want to get a clear picture of how everyone is spending their time, especially across different IT functions and activities. This will be an opportunity for you to share feedback on what we're doing well, what we need to do more of, and what we're missing. Expect to receive an email invitation to take this survey from Info-Tech Research Group. It's important to me that you complete the survey as soon as you're can. Attached you’ll find an example of the report this will generate. Thank you again for providing your time and feedback.

    Regards,
    CIO NAME

    Wayne Berger's shortcut to solve staffing woes

    CASE STUDY

    Industry Office leasing
    Source Interview with Wayne Berger

    Wayne Berger was hired to be the International Workplace Group (IWG) CEO for Canada and Latin America in 2014.

    Wayne approached his early days with the office space leasing firm as a tour of sorts, visiting nearly every one of the 48 office locations across Canada to host town hall meetings. He heard from staff at every location that they felt understaffed. But instead of simply hiring more staff, Berger actually reduced the workforce by 33%.

    He created a more flexible approach to staffing:

    • Employees no longer just reported to work at one office; instead, they were ready to go to wherever they were most needed in a specific geographic area.
    • He centralized all back-office functions for the company so that not every office had to do its own bookkeeping.
    • Finally, he changed the labor profile to consist of full-time staff, part-time staff, and time-on-demand workers.
    Photo of Wayne Berger, CEO, IWG Plc.
    Wayne Berger, CEO, IWG Plc (Image source: IWG)

    Listen to 'The First 100 Days' podcast – Wayne Berger

    Initiate IT Staffing Assessment – new KPIs to track IT performance — Recommended

    Info-Tech IT Staffing Assessment

    Info-Tech’s IT Staffing Assessment provides benchmarking of key metrics against 4,000 other organizations. Dashboard-style reports provide key metrics at a glance, including a time breakdown by IT function and by activity compared against business priorities. Run this survey at about the 45-day mark of your first 90 days. Its insights will be used to inform your long-term IT strategy.

    Benefits

    Icon for Right-Size IT Headcount. Icon for Allocate Staff Correctly. Icon for Maximize Teams.
    Right-Size IT Headcount
    Find the right level for stakeholder satisfaction.
    Allocate Staff Correctly
    Identify staff misalignments with priorities.
    Maximize Teams
    Identify how to drive staff.

    Supporting Tool or Template icon Additional materials are available on Info-Tech’s website.

    Quick wins: Make recommendations based on IT Management & Governance Framework

    Complete this exercise while waiting on the IT Staffing Assessment results. Based on your completed IT Management & Governance report, identify the initiatives you can tackle immediately. You can conduct this as a team exercise by following these steps:

    1. Create a shortlist of initiatives based on the processes that were identified as high need but scored low in effectiveness. Think as broadly as possible during this initial brainstorming.
    2. Write each initiative on a sticky note and conduct a high-level analysis of the amount of effort that would be required to complete it, as well as its alignment with the achievement of business objectives.
    3. Draw the matrix below on a whiteboard and place each sticky note onto the matrix based on its potential impact and difficulty to address.
    A matrix of initiative categories based on effort to achieve and alignment with business objectives. It is split into quadrants: the vertical axis is 'Potential Impact' with 'High, Fully supports achievement of business objectives' at the top and 'Low, Limited support of business objectives' at the bottom; the horizontal axis is 'Effort' with 'Low' on the left and 'High' on the right. Low impact, low effort is 'Low Current Value, No immediate attention required, but may become a priority in the future if business objectives change'. Low impact, high effort is 'Future Reassessment, No immediate attention required, but may become a priority in the future if business objectives change'. High impact, high effort is 'Long-Term Initiatives, High impact on business outcomes but will take more effort to implement. Schedule these in your long-term roadmap'. High impact, low effort is 'Quick Wins, High impact on business objectives with relatively small effort. Some combination of these will form your early wins'.

    Call 6

    Day 61 to Day 75

    Run a start, stop, continue exercise with your IT staff — Alternative

    This is an alternative activity to running an IT Staffing Assessment, which contains a start/stop/continue assessment. This activity can be facilitated with a flip chart or a whiteboard. Create three pages or three columns and label them Start, Stop, and Continue.

    Hand out sticky notes to each team member and then allow time for individual brainstorming. Instruct them to write down their contributions for each category on the sticky notes. After a few minutes, have everyone stick their notes in the appropriate category on the board. Discuss as a group and see what themes emerge. Record the results that you want to share in your presentation deck (GroupMap).

    Gather your team and explain the meaning of these categories:

    Start: Activities you're not currently doing but should start doing very soon.

    Stop: Activities you're currently doing but aren’t working and should cease.

    Continue: Things you're currently doing and are working well.

    Presentation Deck, slide 24

    Determine the alignment of IT commitments with business objectives

    Associated Activity icon

    INPUT: Interviews with IT leadership team

    OUTPUT: High-level understanding of in-flight commitments and investments

    Run this only as an alternative to the IT Management & Governance Diagnostic.

    1. Schedule meetings with IT leadership to understand what commitments have been made to the business in terms of new products, projects, or enhancements.
    2. Determine the following about IT’s current investment mix:
      1. What are the current IT investments and assets? How do they align to business goals?
      2. What investments in flight are related to which information assets?
      3. Are there any immediate risks identified for these key investments?
      4. What are the primary business issues that demand attention from IT consistently?
      5. What choices remain undecided in terms of strategic direction of the IT organization?
    3. Document your key investments and commitments as well as any points of misalignment between objectives and current commitments as action items to address in your long-term plans. If they are small fixes, consider them during your quick-win identification.

    Presentation Deck, slide 25

    Determine the alignment of IT commitments with business objectives

    Run this only as an alternative to the IT Staffing Assessment diagnostic.

    Schedule meetings with IT leadership to understand what commitments have been made to the business in terms of new products, projects, or enhancements.

    Determine the following about IT’s current investment mix:

    • What are the current IT investments and assets?
    • How do they align to business goals?
    • What in-flight investments are related to which information assets?
    • Are there any immediate risks identified for these key investments?
    • What are the primary business issues that demand attention from IT consistently?
    • What remains undecided in terms of strategic direction of the IT organization?

    Document your key investments and commitments, as well as any points of misalignment between objectives and current commitments, as action items to address in your long-term plans. If they are small-effort fixes, consider them during your quick-win identification.

    Presentation Deck, slide 25

    Make a categorized vendor list by IT process

    As part of learning the IT team, you should also create a comprehensive list of vendors under contract. Collaborate with the finance department to get a clear view of how much of the IT budget is spent on specific vendors. Try to match vendors to the IT processes they serve from the IT M&G framework.

    You should also organize your vendors based on their budget allocation. Go beyond just listing how much money you’re spending with each vendor and categorize them into either “transactional” relationships or “strategic relationships.” Use the grid below to organize them. Ideally, you’ll want most relationships to be high spend and strategic (Source: Gary Davenport).

    A matrix of vendor categories with the vertical axis 'Spend' increasing upward, and the horizontal axis 'Type of relationship' with values 'Transactional' or 'Strategic'. The bottom left corner is 'Low Spend Transactional', the top right corner is 'High Spend Strategic'.

    Where to source your vendor list:

    • Finance department
    • Infrastructure managers
    • Vendor manager in IT

    Further reading: Manage Your Vendors Before They Manage You

    Presentation Deck, slide 26

    Jennifer Schaeffer’s short-timeline turnaround

    CASE STUDY

    Industry Education
    Source Interview with Jennifer Schaeffer

    Jennifer Schaeffer joined Athabasca University as CIO in November 2017. She was entering a turnaround situation as the all-online university lacked an IT strategy and had built up significant technical debt. Armed with the mandate of a third-party consultant that was supported by the president, Schaeffer used a people-first approach to construct her strategy. She met with all her staff, listening to them carefully regardless of role, and consulted with the administrative council and faculty members. She reflected that feedback in her plan or explained to staff why it wasn’t relevant for the strategy. She implemented a “strategic calendaring” approach for the organization, making sure that her team members were participating in meetings where their work was assessed and valued. Drawing on Spotify as an inspiration, she designed her teams in a way that everyone was connected to the customer experience. Given her short timeline to execute, she put off a deep skills analysis of her team for a later time, as well as creating a full architectural map of her technology stack. The outcome is that 2.5 years later, the IT department is unified in using the same tooling and optimization standards. It’s more flexible and ready to incorporate government changes, such as offering more accessibility options.

    Photo of Jennifer Schaeffer.
    Jennifer Schaeffer took on the CIO role at Athabasca University in 2017 and was asked to create a five-year strategic plan in just six weeks.
    (Image source: Athabasca University)

    Listen to 'The First 100 Days' podcast – Eric Wright

    Call 7

    Day 76 to Day 90

    Finalize your vision – mission – values statement

    A clear statement for your values, vision, and mission will help crystallize your IT strategy and communicate what you're trying to accomplish to the entire organization.

    Mission: This statement describes the needs that IT was created to meet and answers the basic question of why IT exists.

    Vision: Write a statement that captures your values. Remember that the vision statement sets out what the IT organization wants to be known for now and into the future.

    Values: IT core values represent the standard axioms by which the IT department operates. Similar to the core values of the organization as a whole, IT’s core values are the set of beliefs or philosophies that guide its strategic actions.

    Further reading: IT Vision and Mission Statements Template

    Presentation Deck, slide 42

    John Chen's new strategic vision

    CASE STUDY

    Industry Mobile Services
    Source Sean Silcoff, The Globe and Mail

    John Chen, known in the industry as a successful turnaround executive, was appointed BlackBerry CEO in 2014 following the unsuccessful launch of the BlackBerry 10 mobile operating system and a new tablet.

    He spent his first three months travelling, talking to customers and suppliers, and understanding the company's situation. He assessed that it had a problem generating cash and had made some strategic errors, but there were many assets that could benefit from more investment.

    He was blunt about the state of BlackBerry, making cutting observations of the past mistakes of leadership. He also settled a key question about whether BlackBerry would focus on consumer or enterprise customers. He pointed to a base of 80,000 enterprise customers that accounted for 80% of revenue and chose to focus on that.

    His new mission for BlackBerry: to transform it from being a "mobile technology company" that pushes handset sales to "a mobile solutions company" that serves the mobile computing needs of its customers.

    Photo of John Chen, CEO of BlackBerry.
    John Chen, CEO of BlackBerry, presents at BlackBerry Security Summit 2018 in New York City (Image source: Brian Jackson)

    Listen to 'The First 100 Days' podcast – Erin Bury

    Quick wins: Make recommendations based on the CIO Business Vision survey

    Based on your completed CIO Business Vision survey, use the IT Satisfaction Scorecard to determine some initiatives. Focus on areas that are ranked as high importance to the business but low satisfaction. While all of the initiatives may be achievable given enough time, use the matrix below to identify the quick wins that you can focus on immediately. It’s important to not fail in your quick-win initiative.

    • High Visibility, Low Risk: Best bet for demonstrating your ability to deliver value.
    • Low Visibility, Low Risk: Worth consideration, depending on the level of effort required and the relative importance to the stakeholder.
    • High Visibility, High Risk: Limit higher-risk initiatives until you feel you have gained trust from your stakeholders, demonstrating your ability to deliver.
    • Low Visibility, High Risk: These will be your lowest value, quick-win initiatives. Keep them in a backlog for future consideration in case business objectives change.
    A matrix of initiative categories based on organizational visibility and risk of failure. It is split into quadrants: the vertical axis is 'Organizational Visibility' with 'High' at the top and 'Low' at the bottom; the horizontal axis is 'Risk of Failure' with 'Low' on the left and 'High' on the right. 'Low Visibility, Low Risk, Few stakeholders will benefit from the initiative’s implementation.' 'Low Visibility, High Risk, No immediate attention is required, but it may become a priority in the future if business objectives change.' 'High Visibility, Low Risk, Multiple stakeholders will benefit from the initiative’s implementation, and it has a low risk of failure.' 'High Visibility, High Risk, Multiple stakeholders will benefit from the initiative’s implementation, but it has a higher risk of failure.'

    Presentation Deck, slide 27

    Create and communicate a post-100 plan

    The last few slides of your presentation deck represent a roundup of all the assessments you’ve done and communicate your plan for the months ahead.

    Slide 38. Based on the information on the previous slide and now knowing which IT capabilities need improvement and which business priorities are important to support, estimate where you'd like to see IT staff spend their time in the near future. Will you be looking to shift staff from one area to another? Will you be looking to hire staff?

    Slide 39. Take your IT M&G initiatives from slide 19 and list them here. If you've already achieved a quick win, list it and mark it as completed to show what you've accomplished. Briefly outline the objectives, how you plan to achieve the result, and what measurement will indicate success.

    Slide 40. Reflect your CIO Business Vision initiatives from slide 31 here.

    Slide 41. Use this roadmap template to list your initiatives by roughly when they’ll be worked on and completed. Plan for when you’ll update your diagnostics.

    Expert Contributors

    Photo of Alan Fong, Chief Technology Officer, Dealer-FX Alan Fong, Chief Technology Officer, Dealer-FX
    Photo of Andrew Wertkin, Chief Strategy Officer, BlueCat NetworksPhoto of David Penny, Chief Technology Officer, BlueCat Networks Andrew Wertkin, Chief Strategy Officer, BlueCat Networks
    David Penny, Chief Technology Officer, BlueCat Networks
    Photo of Susan Bowen, CEO, Aptum Susan Bowen, CEO, Aptum
    Photo of Erin Bury, CEO, Willful Erin Bury, CEO, Willful
    Photo of Denis Gaudreault, Country Manager, Intel Canada and Latin America Denis Gaudreault, Country Manager, Intel Canada and Latin America
    Photo of Wayne Berger, CEO, IWG Plc Wayne Berger, CEO, IWG Plc
    Photo of Eric Wright, CEO, LexisNexis Canada Eric Wright, CEO, LexisNexis Canada
    Photo of Gary Davenport Gary Davenport, past president of CIO Association” of Canada, former VP of IT, Enterprise Solutions Division, MTS AllStream
    Photo of Jennifer Schaeffer, VP of IT and CIO, Athabasca University Jennifer Schaeffer, VP of IT and CIO, Athabasca University

    Bibliography

    Beaudan, Eric. “Do you have what it takes to be an executive?” The Globe and Mail, 9 July 2018. Web.

    Bersohn, Diana. “Go Live on Day One: The Path to Success for a New CIO.” PDF document. Accenture, 2015. Web.

    Bradt, George. “Executive Onboarding When Promoted From Within To Follow A Successful Leader.” Forbes, 15 Nov. 2018. Web.

    “CIO Stats: Length of CIO Tenure Varies By Industry.” CIO Journal, The Wall Street Journal. 15 Feb. 2017. Web.

    “Enlarging Your Sphere of Influence in Your Organization: Your Learning and Development Guide to Getting People on Side.” MindTools Corporate, 2014.

    “Executive Summary.” The CIO's First 100 Days: A Toolkit. PDF document. Gartner, 2012. Web.

    Forbes, Jeff. “Are You Ready for the C-Suite?” KBRS, n.d. Web.

    Gallo, Carmine. “Tim Cook Uses These 5 Words to Take Control of Any Conversation.” Inc., 9 Aug. 2019. Web.

    Giles, Sunnie. “The Most Important Leadership Competencies, According to Leaders Around the World.” Harvard Business Review, 15 March 2016. Web.

    Godin, Seth. “Ode: How to tell a great story.” Seth's Blog. 27 April 2006. Web.

    Green, Charles W. “The horizontal dimension of race: Social culture.” Hope College Blog Network, 19 Oct. 2014. Web.

    Hakobyan, Hayk. “On Louis Gerstner And IBM.” Hayk Hakobyan, n.d. Web.

    Bibliography

    Hargrove, Robert. Your First 100 Days in a New Executive Job, edited by Susan Youngquist. Kindle Edition. Masterful Coaching Press, 2011.

    Heathfield, Susan M. “Why ‘Blink’ Matters: The Power of Your First Impressions." The Balance Careers, 25 June 2019. Web.

    Hillis, Rowan, and Mark O'Donnell. “How to get off to a flying start in your new job.” Odgers Berndtson, 29 Nov. 2018. Web.

    Karaevli, Ayse, and Edward J. Zajac. “When Is an Outsider CEO a Good Choice?” MIT Sloan Management Review, 19 June 2012. Web.

    Keizer, Gregg. “Microsoft CEO Nadella Aces First-100-Day Test.” Computerworld, 15 May 2014. Web.

    Keller, Scott, and Mary Meaney. “Successfully transitioning to new leadership roles.” McKinsey & Company, May 2018. Web.

    Kress, R. “Director vs. Manager: What You Need to Know to Advance to the Next Step.” Ivy Exec, 2016. Web.

    Levine, Seth. “What does it mean to be an ‘executive’.” VC Adventure, 1 Feb. 2018. Web.

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    Silcoff, Sean. “Exclusive: John Chen’s simple plan to save BlackBerry.” The Globe & Mail, 24 Feb. 2014. Web.

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    Build a Platform-Based Organization

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    • Parent Category Name: Innovation
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    • 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.

    2023-Q1 Research Agenda

    This 2023-Q1 research agenda slide deck provides you with a comprehensive overview of our most up-to-date published research. Each piece offers you valuable insights, allowing you to take effective decisions and informed actions. All TY|Info-tech research is backed by our team of expert analysts who share decades of IT and industry experience.

    Register to read more …

    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
    [infographic]

    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

    Terms and Conditions for consulting to businesses

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    Implement an IT Employee Development Plan

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    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • There is a growing gap between the competencies organizations have been focused on developing and what is needed in the future.
    • Employees have been left to drive their own development with little direction or support and without the alignment of development to organizational needs.
    • The pace of change in today’s environment demands new competencies while making others obsolete, and IT is challenged with keeping up with upskilling employees.

    Our Advice

    Critical Insight

    • Organizations position development as employee-owned, yet employees still feel like their needs aren’t being met, and many leave as a result.
    • Development needs to be employee-owned and manager-supported but also organization-informed to ensure that it meets the organization’s needs.
    • Today, operating environments change quickly, and organizations need to develop the competencies employees need both today and in the future.

    Impact and Result

    • Design employee development plans that build the competencies the organization and IT department need both today and in the future.
    • Equip managers and build program support to foster continuous learning and development.
    • Connect the right development opportunity to the right employee through an effective development planning process.

    Implement an IT Employee Development Plan Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement effective development planning, 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 employees' development needs

    Assist your employees in setting appropriate development goals.

    • Implement Effective Employee Development Planning – Phase 1: Assess Employees' Development Needs
    • IT Manager Job Aid: Employee Development
    • IT Employee Job Aid: Employee Development
    • IT Employee Career Development Workbook
    • Individual Competency Development Plan
    • IT Competency Library
    • Leadership Competencies Workbook

    2. Select appropriate activities for development

    Review existing and identify new development activities that employees can undertake to achieve their goals.

    • Implement Effective Employee Development Planning – Phase 2: Select Activities for Developing Prioritized Competencies
    • Learning Methods Catalog for IT Employees

    3. Build manager coaching skills

    Establish manager and employee follow-up accountabilities.

    • Implement Effective Employee Development Planning – Phase 3: Build Manager Coaching Skills to Support Employee Development
    • Role Play Coaching Scenarios
    [infographic]

    Optimize the Current Testing Process for Enterprise Mobile Applications

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    • Parent Category Name: Testing, Deployment & QA
    • Parent Category Link: /testing-deployment-and-qa
    • Your team has little or no experience in mobile testing.
    • You need to optimize current testing processes to include mobile.
    • You need to conduct an RFP for mobile testing tools.

    Our Advice

    Critical Insight

    • One-size-fits-all testing won’t work for mobile. The testing tools are fragmented.
    • Mobile offers many new test cases, so organizations can expect to spend more time testing.

    Impact and Result

    • Identify and address gaps between your current testing process and a target state that includes mobile testing.
    • Establish project value metrics to ensure business and technical requirements are met.

    Optimize the Current Testing Process for Enterprise Mobile Applications Research & Tools

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

    1. Assess the current testing state

    Determine a starting point for architecture and discuss pain points that will drive reusability.

    • Storyboard: Optimize the Current Testing Process for Enterprise Mobile Applications
    • Mobile Testing Project Charter Template
    • Visual SOP Template for Application Testing

    2. Determine the target state testing framework

    Document a preliminary list of test requirements and create vendor RFP and scoring.

    • Test Requirements Tool
    • Request for Proposal (RFP) Template

    3. Implement testing tools to support the testing SOP

    Create an implementation rollout plan.

    • Project Planning and Monitoring Tool

    Infographic

    Workshop: Optimize the Current Testing Process for Enterprise Mobile 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 Assess the Fit for Test Process Optimization

    The Purpose

    Understand mobile testing pain points.

    Evaluate current statistics and challenges around mobile testing and compare with your organization.

    Realize the benefits of mobile testing.

    Understand the differences of mobile testing.

    Assess your readiness for optimizing testing to include mobile.

    Key Benefits Achieved

    Preliminary understanding of how mobile testing is different from conventional approaches to testing apps.

    Understanding of how mobile testing can optimize your current testing process.

    Activities

    1.1 Understand the pain points experienced with mobile testing

    1.2 Evaluate current statistics and challenges of mobile testing and compare your organization

    1.3 Realize the benefits that come from mobile testing

    1.4 Understand the differences between mobile app testing and conventional app testing

    1.5 Assess your readiness for optimizing the testing process to include mobile

    Outputs

    Organizational state assessment for mobile testing

    2 Structure & Launch the Project

    The Purpose

    Identify stakeholders for testing requirements gathering.

    Create a project charter to obtain project approval.

    Present and obtain project charter sign-off.

    Key Benefits Achieved

    Well documented project charter.

    Approval to launch the project.

    Activities

    2.1 Identify stakeholders for testing requirements gathering

    2.2 Create a project charter to obtain project approval

    2.3 Present & obtain project charter sign-off

    Outputs

    Project objectives and scope

    Project roles and responsibilities

    3 Assess Current Testing State

    The Purpose

    Document your current non-mobile testing processes.

    Create a current testing visual SOP.

    Determine current testing pain points.

    Key Benefits Achieved

    Thorough understanding of current testing processes and pain points.

    Activities

    3.1 Document your current non-mobile testing processes

    3.2 Create a current state visual SOP

    3.3 Determine current testing pain points

    Outputs

    Documented current testing processes in the form of a visual SOP

    List of current testing pain points

    4 Determine Target State Testing Framework

    The Purpose

    Determine your target state for mobile testing.

    Choose vendors for the RFP process.

    Evaluate selected vendor(s) against testing requirements.

    Design mobile testing visual SOP(s).

    Key Benefits Achieved

    Prioritized list of testing requirements for mobile.

    Vendor selection for mobile testing solutions through an RFP process.

    New SOP designed to include both current testing and mobile testing processes.

    Activities

    4.1 Determine your target state for mobile testing by following Info-Tech’s framework as a starting point

    4.2 Design new SOP to include testing for mobile apps

    4.3 Translate all considered visual SOP mobile injections into requirements

    4.4 Document the preliminary list of test requirements in the RFP

    4.5 Determine which vendors to include for the RFP process

    4.6 Reach out to vendors for a request for proposal

    4.7 Objectively evaluate vendors against testing requirements

    4.8 Identify and assess the expected costs and impacts from determining your target state

    Outputs

    List of testing requirements for mobile

    Request for Proposal

    5 Implement Testing Tools to Support Your Testing SOP

    The Purpose

    Develop an implementation roadmap to integrate new testing initiatives.

    Anticipate potential roadblocks during implementation rollout.

    Operationalize mobile testing and ensure a smooth hand-off to IT operations.

    Key Benefits Achieved

    Creation of implementation project plan.

    List of approaches to mitigate potential implementation roadblocks.

    Achieving clean hand-off to IT ops team.

    Activities

    5.1 Develop a project plan to codify your current understanding of the scope of work

    5.2 Anticipate potential roadblocks during your tool’s implementation

    5.3 Operationalize your testing tools and ensure a smooth hand-off from the project team

    Outputs

    Mobile testing metrics implementation plan

    6 Conduct Your Retrospectives

    The Purpose

    Conduct regular retrospectives to consider areas for improvement.

    Adjust your processes, systems, and testing tools to improve performance and usability.

    Revisit implementation metrics to communicate project benefits.

    Leverage the lessons learned and apply them to other projects.

    Key Benefits Achieved

    Project specific metrics.

    Discovery of areas to improve.

    Activities

    6.1 Conduct regular retrospectives to consider areas for improvement

    6.2 Revisit your implementation metrics to communicate project benefits to business stakeholders

    6.3 Adjust your processes, systems, and testing tools to improve performance and usability

    6.4 Leverage the lessons learned and apply them to other IT projects

    Outputs

    Steps to improve your mobile testing

    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)

     

    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.

    Satisfy Digital End Users With Low- and No-Code

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    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • Your organization decided to invest in digital solutions to support their transition to a digital and automated workplace. They are ready to begin the planning and delivery of these solutions.
    • However, IT capacity is constrained due to the high and aggressive demand to meet business priorities and maintain mission critical applications. Technical experience and skills are difficult to find, and stakeholders are increasing their expectations to deliver technologies faster with high quality using less resources.
    • Stakeholders are interested in low and no code solutions as ways to their software delivery challenges and explore new digital capabilities.

    Our Advice

    Critical Insight

    • Current software delivery inefficiencies and lack of proper governance and standards impedes the ability to successfully scale and mature low and no code investments and see their full value.
    • Many operating models and culture do not enable or encourage the collaboration needed to evaluate business opportunities and underlying operational systems.This can exacerbate existing shadow IT challenges and promote a negative perception of IT.
    • Low and no code tools bring significant organizational, process, and technical changes that IT and the business may not be prepared or willing to accept and adopt, especially when these tools support business and worker managed applications and services.

    Impact and Result

    • Establish the right expectations. Profile your digital end users and their needs and challenges. Discuss current IT and business software delivery and digital product priorities to determine what to expect from low- and no-code.
    • Build your low- and no-code governance and support. Clarify the roles, processes, and tools needed for low- and no-code delivery and management through IT and business collaboration.
    • Evaluate the fit of low- and no-code and shortlist possible tools. Obtain a thorough view of the business and technical complexities of your use cases. Indicate where and how low- and no-code is expected to generate the most return.

    Satisfy Digital End Users With Low- and No-Code Research & Tools

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

    1. Satisfy Digital End Users With Low- and No-Code Deck – A step-by-step guide on selecting the appropriate low- and no-code tools and building the right people, processes, and technologies to support them.

    This blueprint helps you develop an approach to understand your low- and no-code challenges and priorities and to shortlist, govern, and manage the right low- and no-code tools.

    • Satisfy Digital End Users With Low- and No-Code – Phases 1-3

    2. Low- and No-Code Communication Template – Clearly communicate the goal and approach of your low- and no-code implementation in a language your audience understands.

    This template narrates a story to describe the need and expectations of your low- and no-code initiative to get buy-in from stakeholders and interested parties.

    • Low- and No-Code Communication Template

    Infographic

    Workshop: Satisfy Digital End Users With Low- and No-Code

    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 Select Your Tools

    The Purpose

    Understand the personas of your low- and no-code users and their needs.

    List the challenges low- and no-code is designed to solve or the opportunities you hope to exploit.

    Identify the low- and no-code tools to address your needs.

    Key Benefits Achieved

    Level set expectations on what low- and no-code can deliver.

    Identify areas where low- and no-code can be the most beneficial.

    Select the tools to best address your problem and opportunities.

    Activities

    1.1 Profile your digital end users

    1.2 Set reasonable expectations

    1.3 List your use cases

    1.4 Shortlist your tools

    Outputs

    Digital end-user skills assessment

    Low- and no-code objectives and metrics

    Low- and no-code use case opportunities

    Low- and no-code tooling shortlist

    2 Deliver Your Solution

    The Purpose

    Optimize your product delivery process to accommodate low- and no-code.

    Review and improve your product delivery and management governance model.

    Discuss how to improve your low- and no-code capacities.

    Key Benefits Achieved

    Encourage business-IT collaborative practices and improve IT’s reputation.

    Shift the right accountability and ownership to the business.

    Equip digital end users with the right skills and competencies.

    Activities

    2.1 Adapt your delivery process

    2.2 Transform your governance

    2.3 Identify your low- and no-code capacities

    Outputs

    Low- and no-code delivery process and guiding principles

    Low- and no-code governance, including roles and responsibilities, product ownership and guardrails

    List of low- and no-code capacity improvements

    3 Plan Your Adoption

    The Purpose

    Design a CoE and/or CoP to support low- and no-code capabilities.

    Build a roadmap to illustrate key low- and no-code initiatives.

    Key Benefits Achieved

    Ensure coordinated, architected, and planned implementation and adoption of low- and no-code consistently across the organization.

    Reaffirm support for digital end users new to low- and no-code.

    Clearly communicate your approach to low- and no-code.

    Activities

    3.1 Support digital end users and facilitate cross-functional sharing

    3.2 Yield results with a roadmap

    Outputs

    Low- and no-code supportive body design (e.g. center of excellence, community of practice)

    Low- and no-code roadmap

    Optimize Software Pricing in a Volatile Competitive Market

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    Your challenge:

    • Rising supplier costs and inflation are eroding margins and impacting customers' budgets.
    • There is pressure from management to make a gut-feeling decision because of time, lack of skills, and process limitations.
    • You must navigate competing pricing-related priorities among product, sales, and finance teams.
    • Product price increases fail because discovery lacks understanding of costs, price/value equation, and competitive price points.
    • Customers can react negatively, and results are seen much later (more than 12 months) after the price decision.

    Our Advice

    Critical Insight

    Product leaders will price products based on a deep understanding of the buyer price/value equation and alignment with financial and competitive pricing strategies, and make ongoing adjustments based on an ability to monitor buyer, competitor, and product cost changes.

    Impact and Result

    • Success for many SaaS product managers requires a reorganization and modernization of pricing tools, techniques, and assumptions. Leaders will develop the science of tailored price changes versus across-the-board price actions and account for inflation exposure and the customers’ willingness to pay.
    • This will build skills on how to price new products or adjust pricing for existing products. The disciplines using our pricing strategy methodology will strengthen efforts to develop repeatable pricing models and processes and build credibility with senior management.

    Optimize Software Pricing in a Volatile Competitive Market Research & Tools

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

    1. Optimize Software Pricing in a Volatile Competitive Market Executive Brief - A deck to build your skills on how to price new products or adjust pricing for existing products.

    This Executive Brief will build your skills on how to price new products or adjust pricing for existing products.

    • Optimize Software Pricing in a Volatile Competitive Market Executive Brief

    2. Optimize Software Pricing in a Volatile Competitive Market Storyboard – A deck that provides key steps to complete the project.

    This blueprint will build your skills on how to price new products or adjust pricing for existing products with documented key steps to complete the pricing project and use the Excel workbook and customer presentation.

    • Optimize Software Pricing in a Volatile Competitive Market – Phases 1-3

    3. Optimize Software Pricing in a Volatile Competitive Market Workbook – A tool that enables product managers to simplify the organization and collection of customer and competitor information for pricing decisions.

    These five organizational workbooks for product pricing priorities, interview tracking, sample questions, and critical competitive information will enable the price team to validate price change data through researching the three pricing schemes (competitor, customer, and cost-based).

    • Optimize Software Pricing in a Volatile Competitive Market Workbook

    4. Optimize Software Pricing in a Volatile Competitive Market Presentation Template – A template that serves as a guide to communicating the Optimize Pricing Strategy team's results for a product or product line.

    This template includes the business case to justify product repricing, contract modifications, and packaging rebuild or removal for launch. This template calls for the critical summarized results from the Optimize Software Pricing in a Volatile Competitive Market blueprint and the Optimize Software Pricing in a Volatile Competitive Market Workbook to complete.

    • Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Infographic

    Further reading

    SoftwareReviews — A Division of INFO~TECH RESEARCH GROUP

    Optimize Software Pricing in a Volatile Competitive Market

    Leading SaaS product managers align pricing strategy to company financial goals and refresh the customer price/value equation to avoid leaving revenues uncaptured.

    Table of Contents

    Section Title Section Title
    1 Executive Brief 2 Key Steps
    3 Concluding Slides

    Optimize Software Pricing in a Volatile Competitive Market

    Leading SaaS product managers align pricing strategy to company financial goals and refresh the customer price/value equation to avoid leaving revenues uncaptured.

    EXECUTIVE BRIEF

    Analyst Perspective

    Optimized Pricing Strategy

    Product managers without well-documented and repeatable pricing management processes often experience pressure from “Agile” management to make gut-feel pricing decisions, resulting in poor product revenue results. When combined with a lack of customer, competitor, and internal cost understanding, these process and timing limitations drive most product managers into suboptimal software pricing decisions. And, adding insult to injury, the poor financial results from bad pricing decisions aren’t fully measured for months, which further compounds the negative effects of poor decision making.

    A successful product pricing strategy aligns finance, marketing, product management, and sales to optimize pricing using a solid understanding of the customer perception of price/value, competitive pricing, and software production costs.

    Success for many SaaS product managers requires a reorganization and modernization of pricing tools, techniques, and data. Leaders will develop the science of tailored price changes versus across-the-board price actions and account for inflation exposure and the customers’ willingness to pay.

    This blueprint will build your skills on how to price new products or adjust pricing for existing products. The discipline you build using our pricing strategy methodology will strengthen your team’s ability to develop repeatable pricing and will build credibility with senior management and colleagues in marketing and sales.

    Photo of Joanne Morin Correia, Principal Research Director, SoftwareReviews.

    Joanne Morin Correia
    Principal Research Director
    SoftwareReviews

    Executive Summary

    Organizations struggle to build repeatable pricing processes:
    • A lack of alignment and collaboration among finance, marketing, product development, and sales.
    • A lack of understanding of customers, competitors, and market pricing.
    • Inability to stay ahead of complex and shifting software pricing models.
    • Time is wasted without a deep understanding of pricing issues and opportunities, and revenue opportunities go unrealized.
    Obstacles add friction to the pricing management process:
    • Pressure from management to make quick decisions results in a gut-driven approach to pricing.
    • A lack of pricing skills and management processes limits sound decision making.
    • Price changes fail because discovery often lacks competitive intelligence and buyer value to price point understanding. Customers’ reactions are often observed much later, after the decision is made.
    • Economic disruptions, supplier price hikes, and higher employee salaries/benefits are driving costs higher.
    Use SoftwareReviews’ approach for more successful pricing:
    • Organize for a more effective pricing project including roles & responsibilities as well as an aligned pricing approach.
    • Work with CFO/finance partner to establish target price based on margins and key factors affecting costs.
    • Perform a competitive price assessment and understand the buyer price/value equation.
    • Arrive at a target price based on the above and seek buy-in and approvals.

    SoftwareReviews Insight

    Product leaders will price products based on a deep understanding of the buyer price/value equation and alignment with financial and competitive pricing strategies, and they will make ongoing adjustments based on an ability to monitor buyers, competitors, and product cost changes.

    What is an optimized price strategy?

    “Customer discovery interviews help reduce the chance of failure by testing your hypotheses. Quality customer interviews go beyond answering product development and pricing questions.” (Pricing Strategies, Growth Ramp, March 2022)

    Most product managers just research their direct competitors when launching a new SaaS product. While this is essential, competitive pricing intel is insufficient to create a long-term optimized pricing strategy. Leaders will also understand buyer TCO.

    Your customers are constantly comparing prices and weighing the total cost of ownership as they consider your competition. Why?

    Implementing a SaaS solution creates a significant time burden as buyers spend days learning new software, making sure tools communicate with each other, configuring settings, contacting support, etc. It is not just the cost of the product or service.

    Optimized Price Strategy Is…
    • An integral part of any product plan and business strategy.
    • Essential to improving and maintaining high levels of margins and customer satisfaction.
    • Focused on delivering the product price to your customer’s business value.
    • Understanding customer price-value for your software segment.
    • Monitoring your product pricing with real-time data to ensure support for competitive strategy.
    Price Strategy Is Not…
    • Increasing or decreasing price on a gut feeling.
    • Changing price for short-term gain.
    • Being wary of asking customers pricing-related questions.
    • Haphazardly focusing entirely on profit.
    • Just covering product costs.
    • Only researching direct competitors.
    • Focusing on yourself or company satisfaction but your target customers.
    • Picking the first strategy you see.

    SoftwareReviews Insight

    An optimized pricing strategy establishes the “best” price for a product or service that maximizes profits and shareholder value while considering customer business value vs. the cost to purchase and implement – the total cost of ownership (TCO).

    Challenging environment

    Product managers are currently experiencing the following:
    • Supplier costs and inflation are rising, eroding product margins and impacting customers’ budgets.
    • Pressure from management to make a gut-feeling decision because of time, lack of skills, and process limitations.
    • Navigating competing pricing-related priorities among product, sales, and finance.
    • Product price increases that fail because discovery lacks understanding of costs, price/value equation, and competitive price points.
    • Slowing customer demand due to poorly priced offerings may not be fully measured for many months following the price decision.
    Doing nothing is NOT an option!
    Offense Double Down

    Benefit: Leverage long-term financial and market assets

    Risk: Market may not value those assets in the future
    Fight Back

    Benefit: Move quickly

    Risk: Hard to execute and easy to get pricing wrong
    Defense Retrench

    Benefit: Reduce threats from new entrants through scale and marketing

    Risk: Causes managed decline and is hard to sell to leadership
    Move Away

    Benefit: Seize opportunities for new revenue sources

    Risk: Diversification is challenging to pull off
    Existing Markets and Customers New Markets and Customers

    Pricing skills are declining

    Among product managers, limited pricing skills are big obstacles that make pricing difficult and under-optimized.

    Visual of a bar chart with descending values, each bar has written on it: 'Limited - Limits in understanding of engineering, marketing, and sales expectations or few processes for pricing and/or cost', 'Inexperienced - Inexperience in pricing project skills and corporate training', 'Lagging - Financial lag indicators (marketing ROI, revenue, profitability, COGs)', 'Lacking - Lack of relevant competitive pricing/packaging information', 'Shifting - Shift to cloud subscription-based revenue models is challenging'.

    The top three weakest product management skills have remained constant over the past five years:
    • Competitive analysis
    • Pricing
    • End of life
    Pricing is the weakest skill and has been declining the most among surveyed product professionals every year. (Adapted from 280 Group, 2022)

    Key considerations for more effective pricing decisions

    Pricing teams can improve software product profitability by:
    • Optimizing software profit with four critical elements: properly pricing your product, giving complete and accurate quotations, choosing the terms of the sale, and selecting the payment method.
    • Implementing tailored price changes (versus across-the-board price actions) to help account for inflation exposure, customer willingness to pay, and product attribute changes.
    • Accelerating ongoing pricing decision-making with a dedicated cross-functional team ready to act quickly.
    • Resetting discounting and promotion, and revisiting service-level agreements.
    Software pricing leaders will regularly assess:

    Has it been over a year since prices were updated?

    Have customers told you to raise your prices?

    Do you have the right mix of customers in each pricing plan?

    Do 40% of your customers say they would be very disappointed if your product disappeared? (Adapted from Growth Ramp, 2021)

    Case Study

    Middleware Vendor

    INDUSTRY
    Technology Middleware
    SOURCE
    SoftwareReviews Custom Pricing Strategy Project
    A large middleware vendor, who is running on Microsoft Azure, known for quality development and website tools, needed to react strategically to the March 2022 Microsoft price increase.

    Key Initiative: Optimize New Pricing Strategy

    The program’s core objective was to determine if the vendor should implement a price increase and how the product should be packaged within the new pricing model.

    For this initiative, the company interviewed buyers using three key questions: What are the core capabilities to focus on building/selling? What are the optimal features and capabilities valued by customers that should be sold together? And should they be charging more for their products?

    Results
    This middleware vendor saw buyer support for a 10% price increase to their product line and restructuring of vertical contract terms. This enabled them to retain customers over multi-year subscription contracts, and the price increase enabled them to protect margins after the Microsoft price increase.

    The Optimize New Pricing Strategy included the following components:

    Components: 'Product Feature Importance & Satisfaction', 'Correlation of Features and Value Drivers', 'Fair Cost to Value Average for Category', 'Average Discounting for Category', 'Customer Value Is an Acceptable Multiple of Price'. First four: 'Component fails into the scope of optimizing price strategy to value'; last one: 'They are optimizing their price strategy decisions'.

    New product price approach

    As a collaborative team across product management, marketing, and finance, we see leaders taking a simple yet well-researched approach when setting product pricing.

    Iterating to a final price point is best done with research into how product pricing:

    • Delivers target margins.
    • Is positioned vs. key competitors.
    • Delivers customer value at a fair price/value ratio.
    To arrive at our new product price, we suggest iterating among 3 different views:

    New Target Price:

    • Buyer Price vs. Value
    • Cost - Plus
    • Vs. Key Competitors
    We analyzed:
    • Customer price/value equation interviews
    • Impacts of Supplier cost increases
    • Competitive pricing research
    • How product pricing delivers target margins

    Who should care about optimized pricing?

    Product managers and marketers who:

    • Support the mandate for optimizing pricing and revenue generation.
    • Need a more scientific way to plan and implement new pricing processes and methods to optimize revenues and profits.
    • Want a way to better apply customer and competitive insights to product pricing.
    • Are evaluating current pricing and cost control to support a refreshed pricing strategy.

    Finance, sales, and marketing professionals who are pricing stakeholders in:

    • Finding alternatives to current pricing and packaging approaches.
    • Looking for ways to optimize price within the shifting market momentum.

    How will they benefit from this research?

    • Refine the ability to effectively target pricing to specific market demands and customer segments.
    • Strengthen product team’s reputation for reliable and repeatable price-management capabilities among senior leadership.
    • Recognize and plan for new revenue opportunities or cost increases.
    • Allow for faster, more accurate intake of customer and competitive data. 
    • Improve pricing skills for professional development and business outcomes.
    • Create new product price, packaging, or market opportunities. 
    • Reduce financial costs and mistakes associated with manual efforts and uneducated guessing.
    • Price software products that better achieve financial goals optimizing revenue, margins, or market share.
    • Enhance the product development and sales processes with real competitive and customer expectations.

    Is Your Pricing Strategy Optimized?

    With the right pricing strategy, you can invest more money into your product, service, or growth. A 1% price increase will improv revenues by:

    Three bars: 'Customer acquisition, 3.32%', 'Customer retention, 6.71%', 'Price monetization, 12.7%'.

    Price monetization will almost double the revenue increases over customer acquisition and retention. (Pricing Strategies, Growth Ramp, March 2022)

    DIAGNOSE PRICE CHALLENGES

    Prices of today's cloud-based services/products are often misaligned against competition and customers' perceived value, leaving more revenues on the table.
    • Do you struggle to price new products with confidence?
    • Do you really know your SaaS product's costs?
    • Have you lost pricing power to stronger competitors?
    • Has cost focus eclipsed customer value focus?
    If so, you are likely skipping steps and missing key outputs in your pricing strategy.

    OPTIMIZE THESE STEPS

    ALIGNMENT
    1. Assign Team Responsibilities
    2. Set Timing for Project Deliverables
    3. Clarify Financial Expectations
    4. Collect Customer Contacts
    5. Determine Competitors
    6. BEFORE RESEARCH, HAVE YOU
      Documented your executive's financial expectations? If "No," return.

    RESEARCH & VALIDATE
    1. Research Competitors
    2. Interview Customers
    3. Test Pricing vs. Financials
    4. Create Pricing Presentation
    5. BEFORE PRESENTING, HAVE YOU:
      Clarified your customer and competitive positioning to validate pricing? If "No," return.

    BUY-IN
    1. Executive Pricing Presentation
    2. Post-Mortem of Presentation
    3. Document New Processes
    4. Monitor the Pricing Changes
    5. BEFORE RESEARCH, HAVE YOU:
      Documented your executive's financial expectations? If "No," return.

    DELIVER KEY OUTPUTS

    Sponsoring executive(s) signs-offs require a well-articulated pricing plan and business case for investment that includes:
    • Competitive features and pricing financial templates
    • Customer validation of price value
    • Optimized price presentation
    • Repeatable pricing processes to monitor changes

    REAP THE REWARDS

    • Product pricing is better aligned to achieve financial goals
    • Improved pricing skills or professional development
    • Stronger team reputation for reliable price management

    Key Insights

    1. Gain a competitive edge by using market and customer information to optimize product financials, refine pricing, and speed up decisions.
    2. Product leaders will best set software product price based on a deep understanding of buyer/price value equation, alignment with financial strategy, and an ongoing ability to monitor buyer, competitor, and product costs.

    SoftwareReviews’ methodology for optimizing your pricing strategy

    Steps

    1.1 Establish the Team and Responsibilities
    1.2 Educate/Align Team on Pricing Strategy
    1.2 Document Portfolio & Target Product(s) for Pricing Updates
    1.3 Clarify Product Target Margins
    1.4 Establish Customer Price/Value
    1.5 Identify Competitive Pricing
    1.6 Establish New Price and Gain Buy-In

    Outcomes

    1. Well-organized project
    2. Clarified product pricing strategy
    3. Customer value vs. price equation
    4. Competitive price points
    5. Approvals

    Insight summary

    Modernize your price planning

    Product leaders will price products based on a deep understanding of the buyer price/value equation and alignment with financial and competitive pricing strategies, and make ongoing adjustments based on an ability to monitor buyer, competitor, and product cost changes.

    Ground pricing against financials

    Meet and align with financial stakeholders.
    • Give finance a heads-up that you want to work with them.
    • Find out the CFO’s expectations for pricing and margins.
    • Ask for a dedicated finance team member.

    Align on pricing strategy

    Lead stakeholders in SaaS product pricing decisions to optimize pricing based on four drivers:
    • Customer’s price/value
    • Competitive strategy
    • Reflective of costs
    • Alignment with financial goals

    Decrease time for approval

    Drive price decisions, with the support of the CFO, to the business value of the suggested change:
    • Reference current product pricing guidelines
    • Compare to the competition and our strategy and weigh results against our customer’s price/value
    • Compare against the equation to business value for the suggested change
    Develop the skill of pricing products

    Increase product revenues and margins by enhancing modern processes and data monetization. Shift from intuitive to information-based pricing decisions.

    Look at other options for revenue

    Adjust product design, features, packaging, and contract terms while maintaining the functionality customers find valuable to their business.

    Blueprint deliverables

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

    New Pricing Strategy Presentation Template

    Capture key findings for your price strategy with the Optimize Your Pricing in a Volatile Competitive Market Strategy Presentation Template

    Sample of the 'Acme Corp New Product Pricing' blueprint.

    Optimize Software Pricing in a Volatile Competitive Market Executive Brief

    This executive brief will build your knowledge on how to price new products or adjust pricing for existing products.

    Sample of the 'Optimize Software Pricing in a Volatile Competitive Market' blueprint.

    Optimize Software Pricing in a Volatile Competitive Market Workbook

    This workbook will help you prioritize which products require repricing, hold customer interviews, and capture competitive insights.

    Sample of the 'Optimize Software Pricing in a Volatile Competitive Market' workbook.

    Guided Implementation

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

    A typical GI is 4 to 8 calls over the course of 2 to 4 months.

    What does a typical GI on optimizing software pricing look like?

    Alignment

    Research & Reprice

    Buy-in

    Call #1: Share the pricing team vision and outline activities for the pricing strategy process. Plan next call – 1 week.

    Call #2: Outline products that require a new pricing approach and steps with finance. Plan next call – 1 week.

    Call #3: Discuss the customer interview process. Plan next call – 1 week.

    Call #4 Outline competitive analysis. Plan next call – 1 week.

    Call #5: Review customer and competitive results for initial new pricing business case with finance for alignment. Plan next call – 3 weeks.

    Call #6: Review the initial business case against financial plans across marketing, sales, and product development. Plan next call – 1 week.

    Call #7 Review the draft executive pricing presentation. Plan next call – 1 week.

    Call #8: Discuss gaps in executive presentation. Plan next call – 3 days.

    SoftwareReviews Offers Various Levels of Support to Meet Your Needs

    Included in 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."

    Desire a Guided Implementation?

    • A GI is where your SoftwareReviews engagement manager and executive advisor/counselor will work with SoftwareReviews research team members to craft with you a Custom Key Initiative Plan (CKIP).
    • A CKIP guides your team through each of the major steps, outlines responsibilities between members of your team and SoftwareReviews, describes expected outcomes, and captures actual value delivered.
    • A CKIP also provides you and your team with analyst/advisor/counselor feedback on project outputs, helps you communicate key principles and concepts to your team, and helps you stay on project timelines.
    • If Guided Implementation assistance is desired, contact your engagement manager.

    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
    Align Team, Identify Customers, and Document Current Knowledge
    Validate Initial Insights and Identify Competitors and Market View
    Schedule and Hold Buyer Interviews
    Summarize Findings and Provide Actionable Guidance to Stakeholders
    Present, Go Forward, and Measure Impact and Results
    Activities

    1.1 Identify Team Members, roles, and responsibilities

    1.2 Establish timelines and project workflow

    1.3 Gather current product and future financial margin expectations

    1.4 Review the Optimize Software Executive Brief and Workbook Templates

    1.4 Build prioritized pricing candidates hypothesis

    2.1 Identify customer interviewee types by segment, region, etc.

    2.2 Hear from industry analysts their perspectives on the competitors, buyer expectations, and price trends

    2.3 Research competitors for pricing, contract type, and product attributes

    3.2 Review pricing and attributes survey and interview questionnaires

    3.2 Hold interviews and use interview guides (over four weeks)

    A gap of up to 4 weeks for scheduling of interviews.

    3.3 Hold review session after initial 3-4 interviews to make adjustments

    4.1 Review all draft price findings against the market view

    4.2 Review Draft Executive Presentation

    5.1 Review finalized pricing strategy plan with analyst for market view

    5.2 Review for comments on the final implementation plan

    Deliverables
    1. Documented steering committee and working team
    2. Current and initial new pricing targets for strategy
    3. Documented team knowledge
    1. Understanding of market and potential target interviewee types
    2. Objective competitive research
    1. Initial review – “Are we going in the right direction with surveys?”
    2. Validate or adjust the pricing surveys to what you hear in the market
    1. Complete findings and compare to the market
    2. Review and finish drafting the Optimize Software Pricing Strategy presentation
    1. Final impute on strategy
    2. Review of suggested next steps and implementation plan

    Our process

    Align team, perform research, and gain executive buy-in on updated price points

    1. Establish the team and responsibilities
    2. Educate/align team on pricing strategy
    3. Document portfolio & target product(s) for pricing updates
    4. Clarify product target margins
    5. Establish customer price/value
    6. Identify competitive pricing
    7. Establish new price and gain buy-in

    Optimize Software Pricing in a Volatile Competitive Market

    Our process will help you deliver the following outcomes:

    • Well-organized project
    • Clarified product pricing strategy
    • Customer value vs. price equation
    • Competitive price points
    • Approvals

    This project involves the following participants:

    • Product management
    • Program leadership
    • Product marketing
    • CFO or finance representative/partner
    • Others
    • Representative(s) from Sales

    1.0 Assign team responsibilities

    Input: Steering committee roles and responsibilities, Steering committee interest and role

    Output: List of new pricing strategy steering committee and workstream members, roles, and timelines, Updated Software Pricing Strategy presentation

    Materials: Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Participants: CFO, sponsoring executive, Functional leads – development, product marketing, product management, marketing, sales, customer success/support

    1-2 hours
    1. The product manager/member running this pricing/repricing program should review the entire Optimize Software Pricing in a Volatile Competitive Market blueprint and each blueprint attachment.
    2. The product manager should also refer to slide 19 of the Optimize Software Pricing in a Volatile Competitive Market blueprint and decide if help via a Guided Implementation (GI) is of value. If desired, alert your SoftwareReviews engagement manager.
    1-2 hours
    1. The product manager should meet with the chief product officer/CPO and functional leaders, and set the meeting agenda to:
      1. Nominate steering committee members.
      2. Nominate work-stream leads.
      3. Establish key pricing project milestones.
      4. Schedule both the steering committee (suggest monthly) and workstream lead meetings (suggest weekly) through the duration of the project.
      5. Ask the CPO to craft, outside this meeting, his/her version of the "Message from the chief product officer.”
      6. If a Guided Implementation is selected, inform the meeting attendees that a SoftwareReviews analyst will join the next meeting to share his/her Executive Brief on Pricing Strategy.
    2. Record all above findings in the Optimize Software Pricing in a Volatile Competitive Market Presentation Template.

    Download the Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    SoftwareReviews Advisory Insight:

    Pricing steering committees are needed to steer overall product, pricing, and packaging decisions. Some companies include the CEO and CFO on this committee and designate it as a permanent body that meets monthly to give go/no-go decisions to “all things product and pricing related” across all products and business units.

    2.0 Educate the team

    1 hour

    Input: Typically, a joint recognition that pricing strategies need upgrading and have not been fully documented, Steering committee and working team members

    Output: Communication of team members involved and the makeup of the steering committee and working team, Alignment of team members on a shared vision of “why a new price strategy is critical” and what key attributes define both the need and impact on business

    Materials: Optimize Your Software Strategy Executive Brief PowerPoint presentation

    Participants: Initiative manager – individual leading the new pricing strategy, CFO/sponsoring executive, Working team – typically representatives in product marketing, product management, and sales, SoftwareReviews marketing analyst (optional)

    1. Walk the team through the Optimize Software Pricing in a Volatile Competitive Market Executive Brief PowerPoint presentation.
    2. Optional – Have the SoftwareReviews Advisory (SRA) analyst walk the team through the Optimize Software Pricing in a Volatile Competitive Market Executive Brief PowerPoint presentation as part of your session. Contact your engagement manager to schedule.
    3. Walk the team through the current version of the Optimize Software Pricing in a Volatile Competitive Market Presentation Template outlining project goals, steering committee and workstream make-up and responsibilities, project timeline and key milestones, and approach to arriving at new product pricing.
    4. Set expectations among team members of their specific roles and responsibilities for this project, review the frequency of steering committee and workstream meetings to set expectations of key milestones and deliverable due dates.

    Download the Optimize Software Pricing in a Volatile Competitive Market Executive Brief

    3.0 Document portfolio and target products for pricing update

    1-3 Hours

    Input: List of entire product portfolio

    Output: Prioritized list of product candidates that should be repriced

    Materials: Optimize Software Pricing in a Volatile Competitive Market Executive Brief presentation, Optimize Software Pricing in a Volatile Competitive Market Workbook

    Participants: Initiative manager – individual leading the new pricing strategy, CFO/sponsoring executive, Working team – typically representatives in product marketing, product management, and sales

    1. Walk the team through the current version of Optimize Software Pricing in a Volatile Competitive Market workbook, tab 2: “Product Portfolio Organizer.” Modify sample attributes to match your product line where necessary.
    2. As a group, record the product attributes for your entire portfolio.
    3. Prioritize the product price optimization candidates for repricing with the understanding that it might change after meeting with finance.

    Download the Optimize Software Pricing in a Volatile Competitive Market Workbook

    4.0 Clarify product target margins

    2-3 sessions of 1 Hour each

    Input: Finance partner/CFO knowledge of target product current and future margins, Finance partner/CFO who has information on underlying costs with details that illustrate supplier contributions

    Output: Product finance markup target percentage margins and revenues

    Materials: Finance data on the product family, Optimize Software Pricing in a Volatile Competitive Market Workbook, Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Participants: Initiative manager, Finance partner/CFO

    1. Schedule a meeting with your finance partner/CFO to validate expectations for product margins. The goal is to understand the detail of underlying costs/margins and if the impacts of supplier costs affect the product family. The information will be placed into the Optimize Software Pricing in a Volatile Competitive Market Workbook on tab 2, Product Portfolio Organizer under the “Unit Margins” heading.
    2. Arrive at a final “Cost-Plus New Price” based on underlying costs and target margins for each of the products. Record results in the Optimize Software Pricing in a Volatile Competitive Market Workbook, tab 2, under the “Cost-Plus New Price” heading.
    3. Record product target finance markup price under “Cost-Plus” in Optimize Software Pricing in a Volatile Competitive Market Presentation Template, slide 9, and details in Appendix, “Cost-Plus Analysis,” slide 11.
    4. Repeat this process for any other products to be repriced.

    Download the Optimize Software Pricing in a Volatile Competitive Market Workbook

    Download the Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    5.0 Establish customer price to value

    1-4 weeks

    Input: Identify segments within which you require price-to-value information, Understand your persona insight gaps, Review Sample Interview Guide using the Optimize Software Pricing in a Volatile, Competitive Market Workbook, Tab 4. Interview Guide.

    Output: List of interviewees, Updated Interview Guide

    Materials: Optimize Software Pricing in a Volatile Competitive Market Workbook, Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Participants: Initiative manager, Customer success to help identify interviewees, Customers, prospects

    1. Identify a list of customers and prospects that best represent your target persona when interviewed. Choose interviewees who will inform key differences among key segments (geographies, company size, a mix of customers and prospects, etc.) and who are decision makers and can best inform insights on price/value and competitors.
    2. Recruit interviewees and schedule 30-minute interviews.
    3. Keep track of interviewees using the Optimize Software Pricing in a Volatile Competitive Market Workbook, tab 3: “Interviewee Tracking.”
    4. Review the Optimize Software Pricing in a Volatile Competitive Market Workbook, tab 4: “Interview Guide,” and modify/update it where appropriate.
    5. Record interviewee perspectives on the “price they are willing to pay for the value received” (price/value equation) using the Optimize Software Pricing in a Volatile Competitive Market Workbook, tab 4: “Interview Guide.”
    6. Summarize findings to result in an average “customer’s value price.” Record product target ”customer’s value price” in Optimize Software Pricing in a Volatile Competitive Market Presentation Template, slide 9 and supporting details in Appendix, “Customer Pricing Analysis,” slide 12.

    Download the Optimize Software Pricing in a Volatile Competitive Market Workbook

    Download the Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    6.0 Identify competitive pricing

    1-2 weeks

    Input: Identify price candidate competitors, Your product pricing, contract type, and product attribute information to compare against, Knowledge of existing competitor information, websites, and technology research sites to guide questions

    Output: Competitive product average pricing

    Materials: Optimize Software Pricing in a Volatile Competitive Market Workbook, Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Participants: Initiative manager, Customers, prospects

    1. Identify the top 3-5 competitors’ products that you most frequently compete against with your selected product.
    2. Perform competitive intelligence research on deals won or lost that contain competitive pricing insights by speaking with your sales force.
    3. Use the interviews with key customers to also inform competitive pricing insights. Include companies which you may have lost to a competitor in your customer interviewee list.
    4. Modify and add key competitive pricing, contract, or product attributes in the Optimize Software Pricing in a Volatile Competitive Market Workbook, tab 5: “Competitive Information.”
    5. Place your product’s information into the Optimize Software Pricing in a Volatile Competitive Market Workbook, tab 5: “Competitive Information.”
    6. Research your competitors’ summarized pricing and product attribute insights into the workbook.
    7. Record research in the Summarize research on competitors to arrive at an average “Competitors Avg. Price”. Record in ”Customer’s Value Price” in Optimize Software Pricing in a Volatile Competitive Market Presentation Template, slide 9, and details in Appendix, “Competitor Pricing Analysis,” slide 13.

    Download the Optimize Software Pricing in a Volatile Competitive Market Workbook

    Download the Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    7.0 Establish new price and gain buy-in

    2-3 hours

    Input: Findings from competitive, cost-plus, and customer price/value analysis

    Output: Approvals for price change

    Materials: Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Participants: Initiative manager, Steering committee, Working team – typically representatives in product marketing, product management, sales

    1. Using prior recorded findings of Customer’s Value Price, Competitors’ Avg. Price, and Finance Markup Price, arrive at a recommended “New Price” and record in Optimize Software Pricing in a Volatile Competitive Market Presentation Template, slide 9 and the Appendix for Project Analysis Details.
    2. Present findings to steering committee. Be prepared to show customer interviews and competitive analysis results to support your recommendation.
    3. Plan internal and external communications and discuss the timing of when to “go live” with new pricing. Discuss issues related to migration to a new price, how to handle currently low-priced customers, and how to migrate them over time to the new pricing.
    4. Identify if it makes sense to target a date to launch the new pricing in the future, so customers can be alerted in advance and therefore take advantage of “current pricing” to drive added revenues.
    5. Confer with IT to assess times required to implement within CPQ systems and with product marketing for time to change sales proposals, slide decks, and any other affected assets and systems.

    Download the Optimize Software Pricing in a Volatile Competitive Market Presentation Template

    Summary of Accomplishment

    Problem Solved

    With the help of this blueprint, you have deepened your and your company’s understanding of how to look at new pricing opportunities and what the market and the buyer will pay for your product. You are among the minority of product and marketing leaders that have thoroughly documented their new pricing strategy and processes – congratulations!

    The benefits of having led your team through the process are significant and include the following:

    • Allow for faster, more accurate intake of customer and competitive data 
    • Refine the ability to effectively target pricing to specific market demands and customer segments 
    • Understand the association between the value proposition of products and services
    • Reduce financial costs and mistakes associated with manual efforts & uneducated guessing
    • Recognize and plan for new revenue opportunities or cost increases
    • Create new market or product packaging opportunities
    And finally, by bringing your team along with you in this process, you have also led your team to become more customer-focused while pricing your products – a strategic shift that all organizations should pursue.

    If you would like additional support, contact us and we’ll make sure you get the professional expertise you need.

    Contact your account representative for more information.

    info@softwarereviews.com
    1-888-670-8889

    Bibliography

    “Chapter 4 Reasons for Project Failure.” Kissflow's Guide to Project Management. Kissflow, n.d. Web.

    Edie, Naomi. “Microsoft Is Raising SaaS Prices, and Other Vendors Will, Too.” CIO Dive, 8 December 2021. Web.

    Gruman, Galen, Alan S. Morrison, and Terril A. Retter. “Software Pricing Trends.” PricewaterhouseCoopers, 2018. Web.

    Hargrave, Marshall. “Example of Economic Exposure.” Investopedia, 12 April 2022. Web.

    Heaslip, Emily. “7 Smart Pricing Strategies to Attract Customers.” CO—, 17 November 2021. Web.

    Higgins, Sean. “How to Price a Product That Your Sales Team Can Sell.” HubSpot, 4 April 2022. Web.

    “Pricing Strategies.” Growth Ramp, March 2022. Web.

    “Product Management Skills Benchmark Report 2021.” 280 Group, 9 November 2021. Web.

    Quey, Jason. “Price Increase: How to Do a SaaS Pricing Change in 8 Steps.” Growth Ramp, 22 March 2021. Web.

    Steenburg, Thomas, and Jill Avery. “Marketing Analysis Toolkit: Pricing and Profitability Analysis.” Harvard Business School, 16 July 2010. Web.

    “2021 State of Competitive Intelligence.” Crayon and SCIO, n.d. Web.

    Valchev, Konstantin. “Cost of Goods Sold (COGS) for Software-as-a-Service (SaaS) Business.” OpenView Venture Partners, OV Blog, 20 April 2020. Web.

    “What Is Price Elasticity?” Market Business News, n.d. Web.

    Develop a Targeted Flexible Work Program for IT

    • Buy Link or Shortcode: {j2store}542|cart{/j2store}
    • member rating overall impact (scale of 10): 9.0/10 Overall Impact
    • member rating average dollars saved: $18,909 Average $ Saved
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    • Parent Category Name: Attract & Select
    • Parent Category Link: /attract-and-select
    • Workplace flexibility continues to be top priority for IT employees. Organizations who fail to offer flexibility will have a difficult time attracting, recruiting, and retaining talent.
    • When the benefits of remote work are not available to everyone, this raises fairness and equity concerns.

    Our Advice

    Critical Insight

    IT excels at hybrid location work and is more effective as a business function when location flexibility is an option for its employees. But hybrid work is just a start. A comprehensive flex work program extends beyond flexible location, so organizations must understand the needs of unique employee groups to uncover the options that will attract and retain talent.

    Impact and Result

    • Uncover the needs of unique employee segments to shortlist flexible work options that employees want and will use.
    • Assess the feasibility of various flexible work options and select ones that meet employee needs and are feasible for the organization.
    • Equip leaders with the information and tools needed to implement and sustain a flexible work program.

    Develop a Targeted Flexible Work Program for IT Research & Tools

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

    1. Assess employee and organizational flexibility needs

    Identify prioritized employee segments, flexibility challenges, and the desired state to inform program goals.

    • Develop a Targeted Flexible Work Program for IT – Phases 1-3
    • Talent Metrics Library
    • Targeted Flexible Work Program Workbook
    • Fast-Track Hybrid Work Program Workbook

    2. Identify potential flex options and assess feasibility

    Review, shortlist, and assess the feasibility of common types of flexible work. Identify implementation issues and cultural barriers.

    • Flexible Work Focus Group Guide
    • Flexible Work Options Catalog

    3. Implement selected option(s)

    Equip managers and employees to adopt flexible work options while addressing implementation issues and cultural barriers and aligning HR programs.

    • Guide to Flexible Work for Managers and Employees
    • Flexible Work Time Policy
    • Flexible Work Time Off Policy
    • Flexible Work Location Policy

    Infographic

    Workshop: Develop a Targeted Flexible Work Program for 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 Prepare to Assess Flex Work Feasibility

    The Purpose

    Gather information on organizational and employee flexibility needs.

    Key Benefits Achieved

    Understand the flexibility needs of the organization and its employees to inform a targeted flex work program.

    Activities

    1.1 Identify employee and organizational needs.

    1.2 Identify employee segments.

    1.3 Establish program goals and metrics.

    1.4 Shortlist flexible work options.

    Outputs

    Organizational context summary

    List of shortlisted flex work options

    2 Assess Flex Work Feasibility

    The Purpose

    Perform a data-driven feasibility analysis on shortlisted work options.

    Key Benefits Achieved

    A data-driven feasibility analysis ensures your flex work program meets its goals.

    Activities

    2.1 Conduct employee/manager focus groups to assess feasibility of flex work options.

    Outputs

    Summary of flex work options feasibility per employee segment

    3 Finalize Flex Work Options

    The Purpose

    Select the most impactful flex work options and create a plan for addressing implementation challenge

    Key Benefits Achieved

    A data-driven selection process ensures decisions and exceptions can be communicated with full transparency.

    Activities

    3.1 Finalize list of approved flex work options.

    3.2 Brainstorm solutions to implementation issues.

    3.3 Identify how to overcome cultural barriers.

    Outputs

    Final list of flex work options

    Implementation barriers and solutions summary

    4 Prepare for Implementation

    The Purpose

    Create supporting materials to ensure program implementation proceeds smoothly.

    Key Benefits Achieved

    Employee- and manager-facing guides and policies ensure the program is clearly documented and communicated.

    Activities

    4.1 Design employee and manager guide prototype.

    4.2 Align HR programs and policies to support flexible work.

    4.3 Create a communication plan.

    Outputs

    Employee and manager guide to flexible work

    Flex work roadmap and communication plan

    5 Next Steps and Wrap-Up

    The Purpose

    Put everything together and prepare to implement.

    Key Benefits Achieved

    Our analysts will support you in synthesizing the workshop’s efforts into a cohesive implementation strategy.

    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

    Completed flexible work feasibility workbook

    Flexible work communication plan

    Further reading

    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.

    Executive Summary

    Your Challenge

    • IT leaders continue to struggle with workplace flexibility, and it is a top priority for IT employees; as a result, organizations who fail to offer flexibility will have a difficult time attracting, recruiting, and retaining talent.
    • The benefits of remote work are not available to everyone, raising fairness and equity concerns for employees.

    Common Obstacles

    • A one-size-fits-all approach to selecting and implementing flexible work options fails to consider unique employee needs and will not reap the benefits of offering a flexible work program (e.g. higher engagement or enhanced employer brand).
    • Improper structure and implementation of flexible work programs exacerbates existing challenges (e.g. high turnover) or creates new ones.

    Info-Tech's Approach

    • Uncover the needs of unique employee segments to shortlist flexible work options that employees want and will use.
    • Assess the feasibility of various flexible work options and select ones that meet employee needs and are feasible for the organization.
    • Equip leaders with the information and tools needed to implement and sustain a flexible work program.

    Info-Tech Insight

    IT excels at hybrid location work and is more effective as a business function when location flexibility is an option for its employees. But hybrid work is just a start. A comprehensive flex work program extends beyond flexible location, so organizations must understand the needs of unique employee groups to uncover the options that will attract and retain talent.

    Flexible work arrangements are a requirement in today's world of work

    Flexible work continues to gain momentum…

    A 2022 LinkedIn report found that the following occurred between 2019 and 2021:

    +362%

    Increase in LinkedIn members sharing content with the term "flexible work."

    +83%

    Increase in job postings that mention "flexibility."
    (LinkedIn, 2022)

    In 2022, Into-Tech found that hybrid was the most commonly used location work model for IT across all industries.

    ("State of Hybrid Work in IT," Info-Tech Research Group, 2022)

    …and employees are demanding more flexibility

    90%

    of employees said they want schedule and location flexibility ("Global Employee Survey," EY, 2021).

    17%

    of resigning IT employees cited lack of flexible work options as a reason ("IT Talent Trends 2022," Info-Tech Research Group, 2022).

    71%

    of executives said they felt "pressure to change working models and adapt workplace policies to allow for greater flexibility" (LinkedIn, 2021).

    Therefore, organizations who fail to offer flexibility will be left behind

    Difficulty attracting and retaining talent

    98% of IT employees say flexible work options are important in choosing an employer ("IT Talent Trends 2022," Info-Tech Research Group, 2022).

    Worsening employee wellbeing and burnout

    Knowledge workers with minimal to no schedule flexibility are 2.2x more likely to experience work-related stress and are 1.4x more likely to suffer from burnout (Slack, 2022; N=10,818).

    Offering workplace flexibility benefits organizations and employees

    Higher performance

    IT departments that offer some degree of location flexibility are more effective at supporting the organization than those who do not.

    35% of service desk functions report improved service since implementing location flexibility.
    ("State of Hybrid Work in IT," Info-Tech Research Group, 2023).

    Enhanced employer brand

    Employees are 2.1x more likely to recommend their employer to others when they are satisfied with their organization's flexible work arrangements (LinkedIn, 2021).

    Improved attraction

    41% of IT departments cite an expanded hiring pool as a key benefit of hybrid work.

    Organizations that mention "flexibility" in their job postings have 35% more engagement with their posts (LinkedIn, 2022).

    Increased job satisfaction

    IT employees who have more control over their working arrangement experience a greater sense of contribution and trust in leadership ("State of Hybrid Work in IT," Info-Tech Research Group, 2023).

    Better work-life balance

    81% of employees say flexible work will positively impact their work-life balance (FlexJobs, 2021).

    Boosted inclusivity

    • Caregivers regardless of gender, supporting them in balancing responsibilities
    • Individuals with disabilities, enabling them to work from the comfort of their homes
    • Women who may have increased responsibilities
    • Women of color to mitigate the emotional tax experienced at work

    Info-Tech Insight

    Flexible work options are not a concession to lower productivity. Properly implemented, flex work enables employees to be more productive at reaching business goals.

    Despite the popularity of flexible work options, not all employees can participate

    IT organizations differ on how much flexibility different roles can have.

    IT employees were asked what percentage of IT roles were currently in a hybrid or remote work arrangement ("State of Hybrid Work in IT," Info-Tech Research Group, 2023).

    However, the benefits of remote work are not available to all, which raises fairness and equity concerns between remote and onsite employees.

    45%

    of employers said, "one of the biggest risks will be their ability to establish fairness and equity among employees when some jobs require a fixed schedule or location, creating a 'have and have not' dynamic based on roles" ("Businesses Suffering," EY, 2021).

    Offering schedule flexibility to employees who need to be fully onsite can be used to close the fairness and equity gap.

    When offered the choice, 54% of employees said they would choose schedule flexibility over location flexibility ("Global Employee Survey," EY, 2021).

    When employees were asked "What choice would you want your employer to provide related to when you have to work?" The top three choices were:

    68%

    Flexibility on when to start and finish work

    38%

    Compressed or four-day work weeks

    33%

    Fixed hours (e.g. 9am to 5pm)

    Disclaimer: "Percentages do not sum to 100%, as each respondent could choose up to three of the [five options provided]" ("Global Employee Survey," EY, 2021).

    Beware of the "all or nothing" approach

    There is no one-size-fits-all approach to workplace flexibility.

    Understanding the needs of various employee segments in the organization is critical to the success of a flexible work program.

    Working parents want more flexibility

    82%

    of working mothers desire flexibility in where they work.

    48%

    of working fathers "want to work remotely 3 to 5 days a week."

    Historically underrepresented groups value more flexibility

    38%

    "Thirty-eight percent of Black male employees and 33% of Black female employees would prefer a fully flexible schedule, compared to 25% of white female employees and 26% of white male employees."
    (Slack, 2022; N=10,818)

    33%

    Workplace flexibility must be customized to the organization to avoid longer working hours and heavy workloads that impact employee wellbeing

    84%

    of remote workers and 61% of onsite workers reported working longer hours post pandemic. Longer working hours were attributed to reasons such as pressure from management and checking emails after working hours (Indeed, 2021).

    2.6x

    Respondents who either agreed or strongly agreed with the statement "Generally, I find my workload reasonable" were 2.6x more likely to be engaged compared to those who stated they disagreed or strongly disagreed (McLean & Company Engagement Survey Database;2022; N=5,615 responses).

    Longer hours and unsustainable workloads can contribute to stress and burnout, which is a threat to employee engagement and retention. With careful management (e.g. setting clear expectations and establishing manageable workloads), flexible work arrangement benefits can be preserved.

    Info-Tech Insight

    Employees' lived experiences and needs determine if people use flexible work programs – a flex program that has limited use or excludes people will not benefit the organization.

    Develop a flexible work program that meets employee and organizational needs

    This is an image of a sample flexible work program which meets employee and organizational needs.

    Insight summary

    Overarching insight: IT excels at hybrid location work and is more effective as a business function when location, time, and time-off flexibility are an option for its employees.

    Introduction

    Step 1 insight

    Step 2 insight

    Step 3 insight

    • Flexible work options are not a concession to lower productivity. Properly implemented, flex work enables employees to be more productive at reaching business goals.
    • Employees' lived experiences and needs determine if people use flexible work programs – a flex program that has limited use or excludes people will not benefit the organization.
    • Flexible work benefits everyone. IT employees experience greater engagement, motivation, and company loyalty. IT organizations realize benefits such as better service coverage, reduced facilities costs, and increased productivity.
    • Hybrid work is a start. A comprehensive flex work program extends beyond flexible location to flexible time and time off. Organizations must understand the needs of unique employee groups to uncover the options that will attract and retain talent. Provide greater inclusivity to employees by broadening the scope to include flex location, flex time, and flex time off.
    • No two employee segments are the same. To be effective, flexible work options must align with the expectations and working processes of each segment.
    • Every role is eligible for hybrid location work. If onsite work duties prevent an employee group from participating, see if processes can be digitized or automated. Flexible work is an opportunity to go beyond current needs to future proofing your organization.
    • Flexible work options must balance organizational and employee needs. If an option is beneficial to employees but there is little or no benefit to the organization, or if the cost of the option is too high, it will not support the long-term success of the organization.
    • Prioritize flexible work options that employees want. Providing too many options often leads to information overload and results in employees not understanding what is available, lowering adoption of the flexible work program.
    • Leaders' collective support of the flexible program determines the program's successful adoption. Don't sweep cultural barriers under the rug; acknowledge and address them to overcome them.
    • Negative performance of a flexible work option does not necessarily mean failure. Take the time to evaluate whether the option simply needs to be tweaked or whether it truly isn't working for the organization.
    • A set of formal guidelines for IT ensures flexible work is:
      1. Administered fairly across all IT employees.
      2. Defensible and clear.
      3. Scalable to the rest of the organization.

    Case Study

    Expanding hybrid work at Info-Tech

    Challenge

    In 2020, Info-Tech implemented emergency work-from-home for its IT department, along with the rest of the organization. Now in 2023, hybrid work is firmly embedded in Info-Tech's culture, with plans to continue location flexibility for the foreseeable future.

    Adjusting to the change came with lessons learned and future-looking questions.

    Lessons Learned

    Moving into remote work was made easier by certain enablers that had already been put in place. These included issuing laptops instead of desktops to the user base and using an existing cloud-based infrastructure. Much support was already being done remotely, making the transition for the support teams virtually seamless.

    Continuing hybrid work has brought benefits such as reduced commuting costs for employees, higher engagement, and satisfaction among staff that their preferences were heard.

    Looking Forward

    Every flexible work implementation is a work in progress and must be continually revisited to ensure it continues to meet organizational and employee needs. Current questions being explored at Info-Tech are:

    • The concept of the "office as a tool" – how does use of the office change when it is used for specific collaboration-related tasks, rather than everything? How should the physical space change to support this?
    • What does a viable replacement for quick hallway meetings look like in a remote world where communication is much more deliberate? How can managers adjust their practices to ensure the benefits of informal encounters aren't lost?

    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?

    Preparation

    Step 1

    Step 2

    Step 3

    Follow-up

    Call #1: Scope requirements, objectives, and your specific challenges.

    Call #2: Assess employee and organizational needs.

    Call #3: Shortlist flex work options and assess feasibility.

    Call #4: Finalize flex work options and create rollout plan.

    Call #5: (Optional) Review rollout progress or evaluate pilot success.

    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 3 to 5 calls over the course of 4 to 6 months.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1

    Day 2

    Day 3

    Day 4

    Day 5

    Activities

    Prepare to assess flex work feasibility

    Assess flex work feasibility

    Finalize flex work options

    Prepare for implementation

    Next Steps and Wrap-Up (offsite)

    1.1 Identify employee and organizational needs.

    1.2 Identify employee segments.

    1.3 Establish program goals and metrics.

    1.4 Shortlist flex work options.

    2.1 Conduct employee/manager focus groups to assess feasibility of flex work options.

    3.1 Finalize list of approved flex work options.

    3.2 Brainstorm solutions to implementation issues.

    3.2 Identify how to overcome cultural barriers.

    4.1 Design employee and manager guide prototype.

    4.2 Align HR programs and policies to support flexible work.

    4.3 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. Organizational context summary
    2. List of shortlisted flex work options
    1. Summary of flex work options' feasibility per employee segment
    1. 1.Final list of flex work options
    2. 2.Implementation barriers and solutions summary
    1. Employee and manager guide to flexible work
    2. Flex work roadmap and communication plan
    1. Completed flexible work feasibility workbook
    2. Flexible work communication plan

    Step 1

    Assess employee and organizational needs

    1. Assess employee and organizational flexibility needs
    2. Identify potential flex options and assess feasibility
    3. Implement selected option(s)

    After completing this step you will have:

    • Identified key stakeholders and their responsibilities
    • Uncovered the current and desired state of the organization
    • Analyzed feedback to identify flexibility challenges
    • Identified and prioritized employee segments
    • Determined the program goals
    • Identified the degree of flexibility for work location, timing, and deliverables

    Identify key stakeholders

    Organizational flexibility requires collaborative and cross-functional involvement to determine which flexible options will meet the needs of a diverse workforce. HR leads the project to explore flexible work options, while other stakeholders provide feedback during the identification and implementation processes.

    HR

    • Assist with the design, implementation, and maintenance of the program.
    • Provide managers and employees with guidance to establish successful flexible work arrangements.
    • Help develop communications to launch and maintain the program.

    Senior Leaders

    • Champion the project by modeling and promoting flexible work options
    • Help develop and deliver communications; set the tone for flexible work at the organization.
    • Provide input into determining program goals.

    Managers

    • Model flexible work options and encourage direct reports to request and discuss options.
    • Use flexible work program guidelines to work with direct reports to select suitable flexible work options.
    • Develop performance metrics and encourage communication between flexible and non-flexible workers.

    Flexible Workers

    • Indicate preferences of flexible work options to the manager.
    • Identify ways to maintain operational continuity and communication while working flexibly.
    • Flag issues and suggest improvements to the manager.
    • Develop creative ways to work with colleagues who don't work flexibly.

    Non-Flexible Workers

    • Share feedback on issues with flexible arrangements and their impact on operational continuity.

    Info-Tech Insight

    Flexible work is a holistic team effort. Leaders, flexible workers, teammates, and HR must clearly understand their roles to ensure that teams are set up for success.

    Uncover the current and desired state of flexibility in the organization

    Current State

    Target State

    Review:

    • Existing policies related to flexibility (e.g. vacation, work from anywhere)
    • Existing flexibility programs (e.g. seasonal hours) and their uptake
    • Productivity of employees
    • Current culture at the organization. Look for:
      • Employee autonomy
      • Reporting structure and performance management processes
      • Trust and psychological safety of employees
      • Leadership behavior (e.g. do leaders model work-life balance, or does the organization have a work 24/7 mentality?)

    Identify what is driving the need for flexible work options. Ask:

    • Why does the organization need flexible options?
      • For example, the introduction of flexibility for some employees has created a "have and have not" dynamic between roles that must be addressed.
    • What does the organization hope to gain from implementing flexible options? For example:
      • Improved retention
      • Increased attraction, remaining competitive for talent
      • Increased work-life balance for employees
      • Reduced burnout
    • What does the organization aspire to be?
      • For example, an organization that creates an environment that values output, not face time.

    These drivers identify goals for the organization to achieve through targeted flexible work options.

    Info-Tech Insight

    Hybrid work is a start. A comprehensive flex work program extends beyond flexible location, so organizations must understand the needs of unique employee groups to uncover the options that will attract and retain talent. Provide greater inclusivity to employees by broadening the scope to include flex location, flex time, and flex time off.

    Identify employee segments

    Using the data, feedback, and challenges analyzed and uncovered so far, assess the organization and identify employee segments.

    Identify employee segments with common characteristics to assess if they require unique flexible work options. Assess the feasibility options for the segments separately in Step 2.

    • Segments' unique characteristics include:
      • Role responsibilities (e.g. interacting with users, creating reports, development and testing)
      • Work location/schedule (e.g. geographic, remote vs. onsite, 9 to 5)
      • Work processes (e.g. server maintenance, phone support)
      • Group characteristics (e.g. specific teams, new hires)

    Identify employee segments and sort them into groups based on the characteristics above.

    Examples of segments:

    • Functional area (e.g. Service Desk, Security)
    • Job roles (e.g. desktop support, server maintenance)
    • Onsite, remote, or hybrid
    • Full-time or part-time
    • Job level (e.g. managers vs. independent contributors)
    • Employees with dependents

    Prioritize employee segments

    Determine whether the organization needs flexible work options for the entire organization or specific employee segments.
    For specific employee segments:

    • Answer the questions on the right to identify whether an employee segment is high, medium, or low priority. Complete slides 23 to 25 for each high-priority segment, repeating the process for medium-priority segments when resources allow.

    For the entire organization:

    • When identifying an option for the entire organization, consider all segments. The approach must create consistency and inclusion; keep this top of mind when identifying flexibility on slides 23 to 25. For example, the work location flexibility would be low in an organization where some segments can work remotely and others must be onsite due to machinery requirements.

    High priority: The employee segment has the lowest engagement scores or highest turnover within the organization. Segment sentiment is that current flexibility is nonexistent or not sufficiently meeting needs.
    Medium priority: The employee segment has low engagement or high turnover. Segment sentiment is that currently available flexibility is minimal or not sufficiently meeting needs.
    Low priority: The segment does not have the lowest engagement or the highest turnover rate. Segment sentiment is that currently available flexibility is sufficiently meeting needs.

    1. What is the impact on the organization if this segment's challenges aren't addressed (e.g. if low engagement and high turnover are not addressed)?
    2. How critical is flexibility to the segment's needs/engagement?
    3. How time sensitive is it to introduce flexibility to this segment (e.g. is the organization losing employees in this segment at a high rate)?
    4. Will providing flexibility to this segment increase organizational productivity or output

    Identify challenges to address with flexibility

    Uncover the lived experiences and expectations of employees to inform selection of segments and flexible options.

    1. Collect data from existing sources, such as:
      • Engagement surveys
      • New hire/exit surveys
      • Employee experience monitor surveys
      • Employee retention pulse surveys
      • Burnout surveys
      • DEI pulse surveys
    2. Analyze employee feedback on experiences with:
      • Work duties
      • Workload
      • Work-life balance
      • Operating processes and procedures
      • Achieving operational outcomes
      • Collaboration and communication
      • Individual experience and engagement
    3. Evaluate the data and identify challenges

    Example challenges:

    • Engagement: Low average score on work-life balance question; flexible work suggested in open-ended responses.
    • Retention: Exit survey indicating that lack of work-life balance is consistently a reason employees leave. Include the cost of turnover (e.g. recruitment, training, severance).
    • Burnout: Feedback from employees through surveys or HR business partner anecdotes indicating high burnout; high usage of wellness services or employee assistance programs.
    • Absenteeism: High average number of days employees were absent in the past year. Include the cost of lost productivity.
    • Operational continuity: Provide examples of when flexible work would have enabled operational continuity in the case of disaster or extended customer service coverage.
    • Program uptake: If the organization already has a flexible work program, provide data on the low proportion of eligible employees using available options.

    1.1 Prepare to evaluate flexible work options

    1-3 hours

    Follow the guidance on preceding slides to complete the following activities.
    Note: If you are only considering remote or hybrid work, use the Fast-Track Hybrid Work Program Workbook. Otherwise, proceed with the Targeted Flexible Work Program Workbook.

    1. Identify key stakeholders. Be sure to record the level of involvement and responsibility expected from each stakeholder. Use the "Stakeholders" tab of the workbook.
    2. Uncover current and desired state. Review and record your current state with respect to culture, productivity, and current flexible work options, if any. Next, record your desired future state, including reasons for implementing flexible work, and goals for the program. Record this in the "Current and Desired State" tab of the workbook.
    3. Identify and prioritize employee segments. Identify and record employee segments. Depending on the size of your department, you may identify a few or many. Be as granular as necessary to fully separate employee groups with different needs. If your resources or needs prevent you from rolling out flexible work to the entire department, record the priority level of each segment so you can focus on the highest priority first.
    4. Identify challenges with flexibility. With each employee segment in mind, analyze your available data to identify and record each segment's main challenges regarding flexible work. These will inform your program goals and metrics.

    Download the Targeted Flexible Work Program Workbook

    Download the Fast-Track Hybrid Work Program Workbook

    Input

    • List of departmental roles
    • Data on employee engagement, productivity, sentiment regarding flexible work, etc.

    Output

    • List of stakeholders and responsibilities
    • Flexible work challenges and aims
    • Prioritized list of employee segments

    Materials

    • Targeted Flexible Work Program Workbook
      Or
    • Fast-Track Hybrid Work Program Workbook

    Participants

    • IT department head
    • HR business partner
    • Flexible work program committee

    Determine goals and metrics for the flexible work program

    Sample program goals

    Sample metrics

    Increase productivity

    • Employee, team, and department key performance indicators (KPIs) before and after flexible work implementation
    • Absenteeism rate (% of lost working days due to all types of absence)

    Improve business satisfaction and perception of IT value

    Increase retention

    • % of exiting employees who cite lack of flexible work options or poor work-life balance as a reason they left
    • Turnover and retention rates

    Improve the employee value proposition (EVP) and talent attraction

    • # of responses on the new hire survey where flexible work options or work-life balance are cited as a reason for accepting an employment offer
    • # of views of career webpage that mentions flexible work program
    • Time-to-fill rates

    Improve engagement and work-life balance

    • Overall engagement score – deploy Info-Tech's Employee Engagement Diagnostics
    • Score for questions about work-life balance on employee engagement or pulse survey, including:
      • "I am able to maintain a balance between my work and personal life."
      • "I find my stress levels at work manageable."

    Info-Tech Insight

    Implementing flex work without solid performance metrics means you won't have a way of determining whether the program is enabling or hampering your business practices.

    1.2 Determine goals and metrics

    30 minutes

    Use the examples on the preceding slide to identify program goals and metrics:

    1. Brainstorm program goals. Be sure to consider both the business benefits (e.g. productivity, retention) and the employee benefits (work-life balance, engagement). A successful flexible work program benefits both the organization and its employees.
    2. Brainstorm metrics for each goal. Identify metrics that are easy to track accurately. Use Info-Tech's IT and HR metrics libraries for reference. Ideally, the metrics you choose should already exist in your organization so no extra effort will be necessary to implement them. It is also important to have a baseline measure of each one before flexible work is rolled out.
    3. Record your outputs on the "Goals and Metrics" tab of the workbook.

    Download the Targeted Flexible Work Program Workbook

    Download the IT Metrics Library

    Download the HR Metrics Library

    Input

    • Organizational and departmental strategy

    Output

    • List of program goals and metrics

    Materials

    • Targeted Flexible Work Program Workbook
      Or
    • Fast-Track Hybrid Work Program Workbook

    Participants

    • Flexible work program committee

    Determine work location flexibility for priority segments

    Work location looks at where a segment can complete all or some of their tasks (e.g. onsite vs. remote). For each prioritized employee segment, evaluate the amount of location flexibility available.

    Work Duties

    Processes

    Operational Outcomes

    High degree of flexibility

    • Low dependence on onsite equipment
    • Work easily shifts to online platforms
    • Low dependence on onsite external interactions (e.g. clients, customers, vendors)
    • Low interdependence of work duties internally (most work is independent)
    • Work processes and expectations are or can be formally documented
    • Remote work processes are sustainable long term

    Most or all operational outcomes can be achieved offsite (e.g. products/service delivery not impacted by WFH)

    • Some dependence on onsite equipment
    • Some work can shift to online platforms
    • Some dependence on onsite external interactions
    • Some interdependence of work duties internally (collaboration is critical)
    • Most work processes and expectations have been or can be formally documented
    • Remote work processes are sustainable (e.g. workarounds can be supported and didn't add work)

    Some operational outcomes can be achieved offsite (e.g. some impact of WFH on product/service delivery)

    Low degree of flexibility

    • High dependence on onsite equipment
    • Work cannot shift to online platforms
    • High dependence on onsite external interactions
    • High interdependence of work duties internally (e.g. line work)
    • Few work processes and expectations can be formally documented
    • Work processes cannot be done remotely, and workarounds for remote work are not sustainable long term

    Operational outcomes cannot be achieved offsite (e.g. significant impairment to product/service delivery)

    Note

    If roles within the segment have differing levels of location flexibility, use the lowest results (e.g. if role A in the segment has a high degree of flexibility for work duties and role B has a low degree of flexibility, use the results for role B).

    Identify work timing for priority segments

    Work timing looks at when work can or needs to be completed (e.g. Monday to Friday, 9am to 5pm).

    Work Duties

    Processes

    Operational Outcomes

    High degree of flexibility

    • No need to be available to internal and/or external customers during standard work hours
    • Equipment is available at any time
    • Does not rely on synchronous (occurring at the same time) work duties internally
    • Work processes and expectations are or can be formally documented
    • Low reliance on collaboration
    • Work is largely asynchronous (does not occur at the same time)

    Most or all operational outcomes are not time sensitive

    • Must be available to internal and/or external customers during some standard work hours
    • Some reliance on synchronous work duties internally (collaboration is critical)
    • Most work processes and expectations have been or can be formally documented
    • Moderate reliance on collaboration
    • Some work is synchronous

    Some operational outcomes are time sensitive and must be conducted within set date or time windows

    Low degree of flexibility

    • Must be available to internal and/or external customers during all standard work hours (e.g. Monday to Friday 9 to 5)
    • High reliance on synchronous work duties internally (e.g. line work)
    • Few work processes and expectations can be formally documented
    • High reliance on collaboration
    • Most work is synchronous

    Most or all operational outcomes are time sensitive and must be conducted within set date or time windows

    Note

    With additional coordination, flex time or flex time off options are still possible for employee segments with a low degree of flexibility. For example, with a four-day work week, the segment can be split into two teams – one that works Monday to Thursday and one that works Tuesday to Friday – so that employees are still available for clients five days a week.

    Examine work deliverables for priority segments

    Work deliverables look at the employee's ability to deliver on their role expectations (e.g. quota or targets) and whether reducing the time spent working would, in all situations, impact the work deliverables (e.g. constrained vs. unconstrained).

    Work Duties

    Operational Outcomes

    High degree of flexibility

    • Few or no work duties rely on equipment or processes that put constraints on output (unconstrained output)
    • Employees have autonomy over which work duties they focus on each day
    • Most or all operational outcomes are unconstrained (e.g. a marketing analyst who builds reports and strategies for clients can produce more reports, produce better reports, or identify new strategies)
    • Work quota or targets are achievable even if working fewer hours
    • Some work duties rely on equipment or processes that put constraints on output
    • Employees have some ability to decide which work duties they focus on each day
    • Some operational outcomes are constrained or moderately unconstrained (e.g. an analyst build reports based on client data; while it's possible to find efficiencies and build reports faster, it's not possible to attain the client data any faster)
    • Work quota or targets may be achievable if working fewer hours

    Low degree of flexibility

    • Most or all work duties rely on equipment or processes that put constraints on output (constrained output)
    • Daily work duties are prescribed (e.g. a telemarketer is expected to call a set number of people per day using a set list of contacts and a defined script)
    • Most or all operational outcomes are constrained (e.g. a machine operator works on a machine that produces 100 parts an hour; neither the machine nor the worker can produce more parts)
    • Work quota or targets cannot be achieved if fewer hours are worked

    Note

    For segments with a low degree of work deliverable flexibility (e.g. very constrained output), flexibility is still an option, but maintaining output would require additional headcount.

    1.3 Determine flexibility needs and constraints

    1-2 hours

    Use the guidelines on the preceding slides to document the parameters of each work segment.

    1. Determine work location flexibility. Work location looks at where a segment can complete all or some of their tasks (e.g. onsite vs. remote). For each prioritized employee segment, evaluate the amount of location flexibility available.
    2. Identify work timing. Work timing looks at when work can or needs to be completed (e.g. Monday to Friday, 9am to 5pm).
    3. Examine work deliverables. Work deliverables look at the employee's ability to deliver on their role expectations (e.g. quota or targets) and whether reducing the time spent working would, in all situations, impact the work deliverables (e.g. constrained vs. unconstrained).
    4. Record your outputs on the "Current and Desired State" tab of the workbook.

    Download the Targeted Flexible Work Program Workbook

    Input

    • List of employee segments

    Output

    • Summary of flexibility needs and constraints for each employee segment

    Materials

    • Targeted Flexible Work Program Workbook
      Or
    • Fast-Track Hybrid Work Program Workbook

    Participants

    • Flexible work program committee
    • Employee segment managers

    Step 2

    Identify potential flex options and assess feasibility

    1. Assess employee and organizational flexibility needs
    2. Identify potential flex options and assess feasibility
    3. Implement selected option(s)

    After completing this step you will have:

    • Created a shortlist of potential options for each prioritized employee segment
    • Evaluated the feasibility of each potential option
    • Determined the cost and benefit of each potential option
    • Gathered employee sentiment on potential options
    • Finalized options with senior leadership

    Prepare to identify and assess the feasibility of potential flexible work options

    First, review the Flexible Work Solutions Catalog

    Before proceeding to the next slide, review the Flexible Work Options Catalog to identify and shortlist five to seven flexible work options that are best suited to address the challenges faced for each of the priority employee segments identified in Step 1.

    Then, assess the feasibility of implementing selected options using slides 29 to 32

    Assess the feasibility of implementing the shortlisted solutions for the prioritized employee segments against the feasibility factors in this step. Repeat for each employee segment. Use the following slides to consult with and include leaders when appropriate.

    • Document your analysis in tabs 6 to 8 of the Targeted Flexible Work Program Workbook.
    • Note implementation issues throughout the assessment and record them in the tool. They will be addressed in Step 3: Implement Selected Program(s). Don't rule out an option simply because it presents some challenges; careful implementation can overcome many challenges.
    • At the end of this step, determine the final list of flexible work options and gain approval from senior leaders for implementation.

    Evaluate feasibility by reviewing the option's impact on continued operations and job performance

    Operational coverage

    Synchronous communication

    Time zones

    Face-to-face

    communication

    To what extent are employees needed to deliver products or services?

    • If constant customer service is required, stagger employees' schedules (e.g. one team works Monday-Thursday while another works Tuesday-Friday).

    To what extent do employees need to communicate with each other synchronously?

    • Break the workflow down and identify times when employees do and do not have to work at the same time to communicate with each other.

    To what extent do employees need to coordinate work across time zones?

    • If the organization already operates in different time zones, ensure that the option does not impact operations requiring continuous coverage.
    • When employees are located in different time zones, coordinate schedules based on the other operational factors.

    When do employees need to interact with each other or clients in person?

    • Examine the workflow closely to identify times when face-to-face communication is not required. Schedule "office days" for employees to work together when in-person interaction is needed.
    • When the interaction is only required with clients, determine whether employees are able to meet clients offsite.

    Info-Tech Insight

    Every role is eligible for hybrid location work. If onsite work duties prevent an employee group from participating, see if processes can be digitized or automated. Flexible work is an opportunity to go beyond current needs to future-proof your organization.

    Assess the option's alignment with organizational culture

    Symbols

    Values

    Behaviors

    How supportive of flexible work are the visible aspects of the organization's culture?

    • For example, the mission statement, newsletters, or office layout.
    • Note: Visible elements will need to be adapted to ensure they reinforce the value of the flexible work option.

    How supportive are both the stated and lived values of the organization?

    • When the flexible work option includes less direct supervision, assess how empowered employees feel to make decisions.
    • Assess whether all types of employees (e.g. virtual) are included, valued, and supported.

    How supportive are the attitudes and behaviors, especially of leaders?

    • Leaders set the expectations for acceptable behaviors in the organization. Determine how supportive leaders are toward flexible workers by examining their attitudes and perceptions.
    • Identify if employees are open to different ways of doing work.

    Determine the resources required for the option

    People

    Process

    Technology

    Do employees have the knowledge, skills, and abilities to adopt this option?

    • Identify any areas (e.g. process, technology) employees will need to be trained on and assess the associated costs.
    • Determine whether the option will require additional headcount to ensure operational continuity (e.g. two part-time employees in a job-sharing arrangement) and calculate associated costs (e.g. recruitment, training, benefits).

    How much will work processes need to change?

    • Interview organizational leaders with knowledge of the employee segment's core work processes. Determine whether a significant change will be required.
    • If a significant change is required, evaluate whether the benefits of the option outweigh the costs of the process and behavioral change (see the "net benefit" factor on slide 33).

    What new technologies will be required?

    • Identify the technology (e.g. that supports communication, work processes) required to enable the flexible work option.
    • Note whether existing technology can be used or additional technology will be required, and further investigate the viability and costs of these options.

    Examine the option's risks

    Data

    Health & Safety

    Legal

    How will data be kept secure?

    • Determine whether the organization's data policy and technology covers employees working remotely or other flexible work options.
    • If the employee segment handles sensitive data (e.g. personal employee information), consult relevant stakeholders to determine how data can be kept secure and assess any associated costs.

    How will employees' health and safety be impacted?

    • Consult your organization's legal counsel to determine whether the organization will be liable for the employees' health and safety while working from home or other locations.
    • Determine whether the organization's policies and processes will need to be modified.

    What legal risks might be involved?

    • Identify any policies in place or jurisdictional requirements to avoid any legal risks. Consult your organization's legal counsel about the situations below.
      • If the option causes significant changes to the nature of jobs, creating the risk of constructive dismissal.
      • If there are any risks to providing less supervision (e.g. higher chance of harassment).
      • When only some employee segments are eligible for the option, determine whether there is a risk of inequitable access.
      • If the option impacts any unionized employees or collective agreements.

    Determine whether the benefits of the option outweigh the costs

    Include senior leadership in the net benefit process to ensure any unfeasible options are removed from consideration before presenting to employees.

    1. Document the employee and employer benefits of the option from the previous feasibility factors on slides 29 to 32.
    • Include the benefits of reaching program goals identified in Step 1.
    • Quantify the benefits in dollar value where possible.
  • Document the costs and risks of the option, referring to the costs noted from previous feasibility factors.
    • Quantify the costs in dollar value where possible.
  • Compare the benefits and costs.
    • Add an option to your final list if the benefits are greater than the costs.
  • This is an image of a table with the main heading being Net Benefit, with the following subheadings: Benefits to organization; Benefits to employees; Costs.

    Info-Tech Insight

    Flexible work options must balance organizational and employee needs. If an option is beneficial to employees but there is little or no benefit to the organization as a whole, or if the cost of the option is too high, it will not support the long-term success of the organization.

    2.1a Identify and evaluate flexible work options

    30 minutes per employee segment per work option

    If you are only considering hybrid or remote work, skip to activity 2.1b. Use the guidelines on the preceding slides to conduct feasibility assessments.

    1. Shortlist flexible work options. Review the Flexible Work Options Catalog to identify and shortlist five to seven flexible work options that are best suited to address the challenges faced for each of the priority employee segments. Record these on the "Options Shortlist" tab of the workbook. Even if the decision is simple, ensure you record the rationale to help communicate your decision to employees. Transparent communication is the best way to avoid feelings of unfairness if desired work options are not implemented.
    2. Evaluate option feasibility. For each of the shortlisted options, complete one "Feasibility - Option" tab in the workbook. Make as many copies of this tab as needed.
      • When evaluating each option, consider each employee segment individually as you work through the prompts in the workbook. You may find that segments differ greatly in the feasibility of various types of flexible work. You will use this information to inform your overall policy and any exceptions to it.
      • You may need to involve each segment's management team to get an accurate picture of day-to-day responsibilities and flexible work feasibility.
    3. Weigh benefits and costs. At the end of each flexible work option evaluation, record the anticipated costs and benefits. Discuss whether this balance renders the option viable or rules it out.

    Download the Targeted Flexible Work Program Workbook

    Download the Flexible Work Options Catalog

    Input

    • List of employee segments

    Output

    • Shortlist of flexible work options
    • Feasibility analysis for each work option

    Materials

    • Targeted Flexible Work Program Workbook
    • Flexible Work Options Catalog

    Participants

    • Flexible work program committee
    • Employee segment managers

    2.1b Assess hybrid work feasibility

    30 minutes per employee segment

    Use the guidelines on the preceding slides to conduct a feasibility assessment. This exercise relies on having trialed hybrid or remote work before. If you have never implemented any degree of remote work, consider completing the full feasibility assessment in activity 2.1a.

    1. Evaluate hybrid work feasibility. Review the feasibility prompts on the "Work Unit Remote Work Assessment" tab and record your insight for each employee segment.
      • When evaluating each option, consider each employee segment individually as you work through the prompts in the workbook. You may find that segments differ greatly in their ability to accommodate hybrid work. You will use this information to inform your overall policy and any exceptions to it.
      • You may need to involve each segment's management team to get an accurate picture of day-to-day responsibilities and hybrid work feasibility.

    Download the Fast-Track Hybrid Work Program Workbook

    Input

    • List of employee segments

    Output

    • Feasibility analysis for each work option

    Materials

    • Fast-Track Hybrid Work Program Workbook

    Participants

    • Flexible work program committee
    • Employee segment managers

    Ask employees which options they prefer and gather feedback for implementation

    Deliver a survey and/or conduct focus groups with a selection of employees from all prioritized employee segments.

    Share

    • Present your draft list of options to select employees.
    • Communicate that the organization is in the process of assessing the feasibility of flexible work options and would like employee input to ensure flex work meets needs.
    • Be clear that the list is not final or guaranteed.

    Ask

    • Ask which options are preferred more than others.
    • Ask for feedback on each option – how could it be modified to meet employee needs better? Use this information to inform implementation in Step 3.

    Decide

    • Prioritize an option if many employees indicated an interest in it.
    • If employees indicate no interest in an option, consider eliminating it from the list, unless it will be required. There is no value in providing an option if employees won't use it.

    Survey

    • List the options and ask respondents to rate each on a Likert scale from 1 to 5.
    • Ask some open-ended questions with comment boxes for employee suggestions.

    Focus Group

    • Conduct focus groups to gather deeper feedback.
    • See Appendix I for sample focus group questions.

    Info-Tech Insight

    Prioritize flexible work options that employees want. Providing too many options often leads to information overload and results in employees not understanding what is available, lowering adoption of the flexible work program.

    Finalize options list with senior leadership

    1. Select one to three final options and outline the details of each. Include:
      • Scope: To what extent will the option be applied? E.g. work-from-home one or two days a week.
      • Eligibility: Which employee segments are eligible?
      • Cost: What investment will be required?
      • Critical implementation issues: Will any of the implementation issues identified for each feasibility factor impact whether the option will be approved?
      • Resources: What additional resources will be required (e.g. technology)?
    2. Present the options to stakeholders for approval. Include:
      • An outline of the finalized options, including what the option is and the scope, eligibility, and critical implementation issues.
      • The feasibility assessment results, including benefits, costs, and employee preferences. Have more detail from the other factors ready if leaders ask about them.
      • The investment (cost) required to implement the option.
    3. Proceed to Step 3 to implement approved options.

    Running an IT pilot of flex work

    • As a technology department, IT typically doesn't own flexible work implementation for the entire organization. However, it is common to trial flexible work options for IT first, before rolling out to the entire organization.
    • During a flex work pilot, ensure you are working closely with HR partners, especially regarding regulatory and compliance issues.
    • Keep the rest of the organizational stakeholders in the loop, especially regarding their agreement on the metrics by which the pilot's success will be evaluated.

    2.2a Finalize flexible work options

    2-3 hours + time to gather employee feedback

    If you are only considering hybrid or remote work, skip to activity 2.2b. Use the guidelines on the preceding slides to gather final feedback and finalize work option selections.

    1. Gather employee feedback. If employee preferences are already known, skip this step. If they are not, gather feedback to ascertain whether any of the shortlisted options are preferred. Remember that a successful flexible work program balances the needs of employees and the business, so employee preference is a key determinant in flexible work program success. Document this on the "Employee Preferences" tab of the workbook.
    2. Finalize flexible work options. Use your notes on the cost-benefit balance for each option, along with employee preferences, to decide whether the move forward with it. Record this decision on the "Options Final List" tab. Include information about eligible employee segments and any implementation challenges that came up during the feasibility assessments. This is the final decision summary that will inform your flexible program parameters and policies.

    Download the Targeted Flexible Work Program Workbook

    Input

    • Flexible work options shortlist

    Output

    • Final flexible work options list

    Materials

    • Targeted Flexible Work Program Workbook

    Participants

    • Flexible work program committee

    2.2b Finalize hybrid work parameters

    2-3 hours + time to gather employee feedback

    Use the guidelines on the preceding slides to gather final feedback and finalize work option selections.

    1. Summarize feasibility analysis. On the "Program Parameters" tab, record the main insights from your feasibility analysis. Finalize important elements, including eligibility for hybrid/remote work by employee segment. Additionally, record the standard parameters for the program (i.e. those that apply to all employee segments) and variable parameters (i.e. ones that differ by employee segment).

    Download the Fast-Track Hybrid Work Program Workbook

    Input

    • Hybrid work feasibility analysis

    Output

    • Final hybrid work program parameters

    Materials

    • Fast-Track Hybrid Work Program Workbook

    Participants

    • Flexible work program committee

    Step 3

    Implement selected option(s)

    1. Assess employee and organizational flexibility needs
    2. Identify potential flex options and assess feasibility
    3. Implement selected option(s)

    After completing this step, you will have:

    • Addressed implementation issues and cultural barriers
    • Equipped the organization to adopt flexible work options successfully
    • Piloted the program and assessed its success
    • Developed a plan for program rollout and communication
    • Established a program evaluation plan
    • Aligned HR programs to support the program

    Solve the implementation issues identified in your feasibility assessment

    1. Identify a solution for each implementation issue documented in the Targeted Flexible Work Program Workbook. Consider the following when identifying solutions:
      • Scope: Determine whether the solution will be applied to one or all employee segments.
      • Stakeholders: Identify stakeholders to consult and develop a solution. If the scope is one employee segment, work with organizational leaders of that segment. When the scope is the entire organization, consult with senior leaders.
      • Implementation: Collaborate with stakeholders to solve implementation issues. Balance the organizational and employee needs, referring to data gathered in Steps 1 and 2.

    Example:

    Issue

    Solution

    Option 1: Hybrid work

    Brainstorming at the beginning of product development benefits from face-to-face collaboration.

    Block off a "brainstorming day" when all team members are required in the office.

    Employee segment: Product innovation team

    One team member needs to meet weekly with the implementation team to conduct product testing.

    Establish a schedule with rotating responsibility for a team member to be at the office for product testing; allow team members to swap days if needed.

    Address cultural barriers by involving leaders

    To shift a culture that is not supportive of flexible work, involve leaders in setting an example for employees to follow.

    Misconceptions

    Tactics to overcome them

    • Flexible workers are less productive.
    • Flexible work disrupts operations.
    • Flexible workers are less committed to the organization.
    • Flexible work only benefits employees, not the organization.
    • Employees are not working if they aren't physically in the office.

    Make the case by highlighting challenges and expected benefits for both the organization and employees (e.g. same or increased productivity). Use data in the introductory section of this blueprint.

    Demonstrate operational feasibility by providing an overview of the feasibility assessment conducted to ensure operational continuity.

    Involve most senior leadership in communication.

    Encourage discovery and exploration by having managers try flexible work options themselves, which will help model it for employees.

    Highlight success stories within the organization or from competitors or similar industries.

    Invite input from managers on how to improve implementation and ownership, which helps to discover hidden options.

    Shift symbols, values, and behaviors

    • Work with senior leaders to identify symbols, values, and behaviors to modify to align with the selected flexible work options.
    • Validate that the final list aligns with your organization's mission, vision, and values.

    Info-Tech Insight

    Leaders' collective support of the flexible program determines the program's successful adoption. Don't sweep cultural barriers under the rug; acknowledge and address them to overcome them.

    Equip the organization for successful implementation

    Info-Tech recommends providing managers and employees with a guide to flexible work, introducing policies, and providing training for managers.

    Provide managers and employees with a guide to flexible work

    Introduce appropriate organization policies

    Equip managers with the necessary tools and training

    Use the guide to:

    • Familiarize employees and managers with the flexible work program.
    • Gain employee and manager buy-in and support for the program.
    • Explain the process and give guidance on selecting flexible work options and working with their colleagues to make it a success.

    Use Info-Tech's customizable policy templates to set guidelines, outline arrangements, and scope the organization's flexible work policies. This is typically done by, or in collaboration with, the HR department.

    Download the Guide to Flexible Work for Managers and Employees

    Download the Flex Location Policy

    Download the Flex Time-Off Policy

    Download the Flex Time Policy

    3.1 Prepare for implementation

    2-3 hours

    Use the guidelines on the preceding slides to brainstorm solutions to implementation issues and prepare to communicate program rollout to stakeholders.

    1. Solve implementation issues.
      • If you are working with the Targeted Flexible Work Program Workbook: For each implementation challenge identified on the "Final Options List" tab, brainstorm solutions. If you are working with the Fast-Track Hybrid Work Program Workbook: Work through the program enablement prompts on the "Program Enablement" tab.
      • You may need to involve relevant stakeholders to help you come up with appropriate solutions for each employee segment.
      • Ensure that any anticipated cultural barriers have been documented and are addressed during this step. Don't underestimate the importance of a supportive organizational culture to the successful rollout of flexible work.
    2. Prepare the employee guide. Modify the Guide to Flexible Work for Managers and Employees template to reflect your final work options list and the processes and expectations employees will need to follow.
    3. Create a communication plan. Use Info-Tech's Communicate Any IT Initiative blueprint and Appendix II to craft your messaging.

    Download the Guide to Flexible Work for Managers and Employees

    Download the Targeted Flexible Work Program Workbook

    Input

    • Flexible work options final list

    Output

    • Employee guide to flexible work
    • Flexible work rollout communication plan

    Materials

    • Guide to Flexible Work for Managers and Employees
    • Targeted Flexible Work Program Workbook
      Or
    • Fast-Track Hybrid Work Program Workbook

    Participants

    • Flexible work program committee
    • Employee segment managers

    Run an IT pilot for flexible work

    Prepare for pilot

    Launch Pilot

    Identify the flexible work options that will be piloted.

    • Refer to the final list of selected options for each priority segment to determine which options should be piloted.

    Select pilot participants.

    • If not rolling out to the entire IT department, look for the departments and/or team(s) where there is the greatest need and the biggest interest (e.g. team with lowest engagement scores).
    • Include all employees within the department, or team if the department is too large, in the pilot.
    • Start with a group whose managers are best equipped for the new flexibility options.

    Create an approach to collect feedback and measure the success of the pilot.

    • Feedback can be collected using surveys, focus groups, and/or targeted in-person interviews.

    The length of the pilot will greatly vary based on which flexible work options were selected (e.g. seasonal hours will require a shorter pilot period compared to implementing a compressed work week). Use discretion when deciding on pilot length and be open to extending or shortening the pilot length as needed.

    Launch pilot.

    • Launch the program through a town hall meeting or departmental announcement to build excitement and buy-in.
    • Develop separate communications for employee segments where appropriate. See Appendix II for key messaging to include.

    Gather feedback.

    • The feedback will be used to assess the pilot's success and to determine what modifications will be needed later for a full-scale rollout.
    • When gathering feedback, tailor questions based on the employee segment but keep themes similar. For example:
      • Employees: "How did this help your day-to-day work?"
      • Managers: "How did this improve productivity on your team?"

    Track metrics.

    • The success of the pilot is best communicated using your department's unique KPIs.
    • Metrics are critical for:
      • Accurately determining pilot success.
      • Getting buy-in to expand the pilot beyond IT.
      • Justifying to employees any changes made to the flexible work options.

    Assess the pilot's success and determine next steps

    Review the feedback collected on the previous slide and use this decision tree to decide whether to relaunch a pilot or proceed to a full-scale rollout of the program.

    This is an image of the flow chart used to assess the pilot's success and determine the next steps.  It will help you to determine whether you will Proceed to full-scale rollout on next slide, Major modifications to the option/launch (e.g. change operating time) – adjust and relaunch pilot or select a new employee segment and relaunch pilot, Minor modifications to the option/launch (e.g. introduce additional communications) – adjust and proceed to full scale rollout, or Return to shortlist (Step 2) and select a different option or launch pilot with a different employee segment.

    Prepare for full-scale rollout

    If you have run a team pilot prior to rolling out to all of IT, or run an IT pilot before an organizational rollout, use the following steps to transition from pilot to full rollout.

    1. Determine modifications
      • Review the feedback gathered during the pilot and determine what needs to change for a full-scale implementation.
      • Update HR policies and programs to support flexible work. Work closely with your HR business partner and other organizational leaders to ensure every department's needs are understood and compliance issues are addressed.
    2. Roll out and evaluate
      • Roll out the remainder of the program (e.g. to other employee segments or additional flexible work options) once there is significant uptake of the pilot by the target employee group and issues have been addressed.
      • Determine how feedback will be gathered after implementation, such as during engagement surveys, new hire and exit surveys, stay interviews, etc., and assess whether the program continues to meet employee and organizational needs.

    Rolling out beyond IT

    For a rollout beyond IT, HR will likely take over.

    However, this is your chance to remain at the forefront of your organization's flexible work efforts by continuing to track success and gather feedback within IT.

    Align HR programs and organizational policies to support flexible work

    Talent Management

    Learning & Development

    Talent Acquisition

    Reinforce managers' accountability for the success of flexible work in their teams:

    • Include "managing virtual teams" in the people management leadership competency.
    • Recognize managers who are modeling flexible work.

    Support flexible workers' career progression:

    • Monitor the promotion rates of flexible workers vs. non-flexible workers.
    • Make sure flexible workers are discussed during talent calibration meetings and have access to career development opportunities.

    Equip managers and employees with the knowledge and skills to make flexible work successful.

    • Provide guidance on selecting the right options and maintaining workflow.
    • If moving to a virtual environment, train managers on how to make it a success.

    Incorporate the flexible work program into the organization's employee value proposition to attract top talent who value flexible work options.

    • Highlight the program on the organization's career site and in job postings.

    Organizational policies

    Determine which organizational policies will be impacted as a result of the new flexible work options. For example, the introduction of flex time off can result in existing vacation policies needing to be updated.

    Plan to re-evaluate the program and make improvements

    Collect data

    Collect data

    Act on data

    Uptake

    Gather data on the proportion of employees eligible for each option who are using the option.

    If an option is tracking positively:

    • Maintain or expand the program to more of the organization.
    • Conduct a feasibility assessment (Step 2) for new employee segments.

    Satisfaction

    Survey managers and employees about their satisfaction with the options they are eligible for and provide an open box for suggestions on improvements.

    If an option is tracking negatively:

    • Investigate why. Gather additional data, interview organizational leaders, and/or conduct focus groups to gain deeper insight.
    • Re-assess the feasibility of the option (Step 2). If the costs outweigh the benefits based on new data, determine whether to cancel the option.
    • Take appropriate action based on the outcome of the evaluation, such as modifying or cancelling the option or providing employees with more support.
      • Note: Cancelling an option can impact the engagement of employees using the option. Ensure that the data, reasons for cancelling the option, and potential substitute options are communicated to employees in advance.

    Program goal progress

    Monitor progress against the program goals and metrics identified in Step 1 to evaluate the impact on issues that matter to the organization (e.g. retention, productivity, diversity).

    Career progression

    Evaluate flexible workers' promotion rates and development opportunities to determine if they are developing.

    Info-Tech Insight

    Negative performance of a flexible work option does not necessarily mean failure. Take the time to evaluate whether the option simply needs to be tweaked or whether it truly isn't working for the organization.

    Insight summary

    Overarching insight: IT excels at hybrid location work and is more effective as a business function when location, time, and time-off flexibility are an option for its employees.

    Introduction

    • Flexible work options are not a concession to lower productivity. Properly implemented, flex work enables employees to be more productive at reaching business goals.
    • Employees' lived experiences and needs determine if people use flexible work programs – a flex program that has limited use or excludes people will not benefit the organization.
    • Flexible work benefits everyone. IT employees experience greater engagement, motivation, and company loyalty. IT organizations realize benefits such as better service coverage, reduced facilities costs, and increased productivity.

    Step 1 insight

    • Hybrid work is a start. A comprehensive flex work program extends beyond flexible location to flexible time and time off. Organizations must understand the needs of unique employee groups to uncover the options that will attract and retain talent. Provide greater inclusivity to employees by broadening the scope to include flex location, flex time, and flex time off.
    • No two employee segments are the same. To be effective, flexible work options must align with the expectations and working processes of each segment.

    Step 2 insight

    • Every role is eligible for hybrid location work. If onsite work duties prevent an employee group from participating, see if processes can be digitized or automated. Flexible work is an opportunity to go beyond current needs to future proofing your organization.
    • Flexible work options must balance organizational and employee needs. If an option is beneficial to employees but there is little or no benefit to the organization, or if the cost of the option is too high, it will not support the long-term success of the organization.
    • Prioritize flexible work options that employees want. Providing too many options often leads to information overload and results in employees not understanding what is available, lowering adoption of the flexible work program.

    Step 3 insight

    • Leaders' collective support of the flexible program determines the program's successful adoption. Don't sweep cultural barriers under the rug; acknowledge and address them to overcome them.
    • Negative performance of a flexible work option does not necessarily mean failure. Take the time to evaluate whether the option simply needs to be tweaked or whether it truly isn't working for the organization.
    • A set of formal guidelines for IT ensures flexible work is:
      1. Administered fairly across all IT employees.
      2. Defensible and clear.
      3. Scalable to the rest of the organization.

    Research Contributors and Experts

    Quinn Ross
    CEO
    The Ross Firm Professional Corporation

    Margaret Yap
    HR Professor
    Ryerson University

    Heather Payne
    CEO
    Juno College

    Lee Nguyen
    HR Specialist
    City of Austin

    Stacey Spruell
    Division HR Director
    Travis County

    Don MacLeod
    Chief Administrative Officer
    Zorra Township

    Stephen Childs
    CHRO
    Panasonic North America

    Shawn Gibson
    Sr. Director
    Info Tech Research Group

    Mari Ryan
    CEO/Founder
    Advancing Wellness

    Sophie Wade
    Founder
    Flexcel Networks

    Kim Velluso
    VP Human Resources
    Siemens Canada

    Lilian De Menezes
    Professor of Decision Sciences
    Cass Business School, University of London

    Judi Casey
    WorkLife Consultant and former Director, Work and Family Researchers Network
    Boston College

    Chris Frame
    Partner – Operations
    LiveCA

    Rose M. Stanley, CCP, CBP, WLCP, CEBS
    People Services Manager
    Sunstate Equipment Co., LLC

    Shari Lava
    Director, Vendor Research
    Info-Tech Research Group

    Carol Cochran
    Director of People & Culture
    FlexJobs

    Kidde Kelly
    OD Practitioner

    Dr. David Chalmers
    Adjunct Professor
    Ted Rogers School of Management, Ryerson University

    Kashmira Nagarwala
    Change Manager
    Siemens Canada

    Dr. Isik U. Zeytinoglu
    Professor of Management and Industrial Relations McMaster University, DeGroote School of Business

    Claire McCartney
    Diversity & Inclusion Advisor
    CIPD

    Teresa Hopke
    SVP of Client Relations
    Life Meets Work – www.lifemeetswork.com

    Mark Tippey
    IT Leader and Experienced Teleworker

    Dr. Kenneth Matos
    Senior Director of Research
    Families and Work Institute

    1 anonymous contributor

    Appendix I: Sample focus group questions

    See Info-Tech's Focus Group Guidefor guidance on setting up and delivering focus groups. Customize the guide with questions specific to flexible work (see sample questions below) to gain deeper insight into employee preferences for the feasibility assessment in Step 2 of this blueprint.

    Document themes in the Targeted Flexible Work Program Workbook.

    • What do you need to balance/integrate your work with your personal life?
    • What challenges do you face in achieving work-life balance/integration?
    • What about your job is preventing you from achieving work-life balance/integration?
    • How would [flexible work option] help you achieve work-life balance/integration?
    • How well would this option work with the workflow of your team or department? What would need to change?
    • What challenges do you see in adopting [flexible work option]?
    • What else would be helpful for you to achieve work-life balance/integration?
    • How could we customize [flexible work option] to ensure it meets your needs?
    • If this program were to fail, what do you think would be the top reasons and why?

    Appendix II: Communication key messaging

    1. Program purpose

    Start with the name and high-level purpose of the program.

    2. Business reasons for the program

    Share data you gathered in Step 1, illustrating challenges causing the need for the program and the benefits.

    3. Options selection process

    Outline the process followed to select options. Remember to share the involvement of stakeholders and the planning around employees' feedback, needs, and lived experiences.

    4. Options and eligibility

    Provide a brief overview of the options and eligibility. Specify that the organization is piloting these options and will modify them based on feedback.

    5. Approval not guaranteed

    Qualify that employees need to be "flexible about flexible work" – the options are not guaranteed and may sometimes be unavailable for business reasons.

    6. Shared responsibility

    Highlight the importance of everyone (managers, flexible workers, the team) working together to make flexible work achievable.

    7. Next steps

    Share any next steps, such as where employees can find the organization's Guide to Flexible Work for Managers and Employees, how to make flexible work a success, or if managers will be providing further detail in a team meeting.

    8. Ongoing communications

    Normalize the program and embed it in organizational culture by continuing communications through various media, such as the organization's newsletter or announcements in town halls.

    Works Cited

    Baziuk, Jennifer, and Duncan Meadows. "Global Employee Survey - Key findings and implications for ICMIF." EY, June 2021. Accessed May 2022.
    "Businesses suffering 'commitment issues' on flexible working," EY, 21 Sep. 2021. Accessed May 2022.
    "IT Talent Trends 2022". Info-Tech Research Group, 2022.
    "Jabra Hybrid Ways of Working: 2021 Global Report." Jabra, Aug. 2021. Accessed May 2022.
    LinkedIn Talent Solutions. "2022 Global Talent Trends." LinkedIn, 2022. Accessed May 2022.
    Lobosco, Mark. "The Future of Work is Flexible: 71% of Leaders Feel Pressure to Change Working Models." LinkedIn, 9 Sep. 2021. Accessed May 2022.
    Ohm, Joy, et al. "Covid-19: Women, Equity, and Inclusion in the Future of Work." Catalyst, 28 May 2020. Accessed May 2022.
    Pelta, Rachel. "Many Workers Have Quit or Plan to After Employers Revoke Remote Work." FlexJobs, 2021. Accessed May 2022.
    Slack Future Forum. "Inflexible return-to-office policies are hammering employee experience scores." Slack, 19 April 2022. Accessed May 2022.
    "State of Hybrid Work in IT: A Trend Report". Info-Tech Research Group, 2023.
    Threlkeld, Kristy. "Employee Burnout Report: COVID-19's Impact and 3 Strategies to Curb It." Indeed, 11 March 2021. Accessed March 2022.

    Create a Transparent and Defensible IT Budget

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    • IT struggles to gain budget approval year after year, largely driven by a few key factors:
      • For a long time, IT has been viewed as a cost center whose efficiency needs to be increasingly optimized over time. IT’s relationship to strategy is not yet understood or established in many organizations.
      • IT is one of the biggest areas of cost for many organizations. Often, executives don’t understand or even believe that all that IT spending is necessary to advance the organization’s objectives, let alone keep it up and running.

    Our Advice

    Critical Insight

    Internal and external obstacles beyond IT’s control make these challenges with gaining IT budget approval even harder to overcome:

    • Economic pressures can quickly drive IT’s budgetary focus from strategic back to tactical.
    • Corporate-driven categorizations of expenditure, plus disconnected approval mechanisms for capital vs. operational spend, hide key interdependencies and other aspects of IT’s financial reality.
    • Connecting the dots between IT activities and business benefits rarely forms a straight line.

    Impact and Result

    • CIOs need a straightforward way to create and present an approval-ready budget.
      • Info-Tech recognizes that connecting the dots to demonstrate value is key to budgetary approval.
      • Info-Tech also recognizes that key stakeholders require different perspectives on the IT budget.
      • This blueprint provides a framework, method, and templated exemplars for creating and presenting an IT budget to stakeholders that will speed up the approval process and ensure more of it is approved.

    Create a Transparent and Defensible IT Budget Research & Tools

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

    1. Create a Transparent and Defensible IT Budget Storyboard – A step-by-step guide to developing a proposed IT budget that’s sensitive to stakeholder perspectives and ready to approve.

    This deck applies Info-Tech’s proven ITFM Cost Model to the IT budgeting process and offers five phases that cover the purpose of your IT budget and what it means to your stakeholders, key budgeting resources, forecasting, selecting and fine-tuning your budget message, and delivering your IT budget executive presentation for approval.

    • Create a Transparent and Defensible IT Budget Storyboard

    2. IT Cost Forecasting and Budgeting Workbook – A structured Excel tool that allows you to forecast your IT budget for next fiscal year across four key stakeholder views, analyze it in the context of past expenditure, and generate high-impact visualizations.

    This Excel workbook offers a step-by-step approach for mapping your historical and forecasted IT expenditure and creating visualizations you can use to populate your IT budget executive presentation.

    • IT Cost Forecasting and Budgeting Workbook

    3. Sample: IT Cost Forecasting and Budgeting Workbook – A completed IT Cost Forecasting & Budgeting Workbook to review and use as an example.

    This sample workbook offers a completed example of the “IT Cost Forecasting and Budgeting Workbook” that accompanies the Create a Transparent & Defensible IT Budget blueprint.

    • Sample: IT Cost Forecasting and Budgeting Workbook

    4. IT Budget Executive Presentation – A PowerPoint template and full example for pulling together your proposed IT budget presentation.

    This presentation template offers a recommended structure for presenting your proposed IT budget for next fiscal year to your executive stakeholders for approval. 

    [infographic]

    Workshop: Create a Transparent and Defensible IT Budget

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

    1 Get into budget-starting position

    The Purpose

    Understand your IT budget in the context of your organization and key stakeholders, as well as gather your budgeting data and review previous years’ financial performance.

    Key Benefits Achieved

    Understand your organization’s budget process and culture.

    Understand your stakeholders’ priorities and perspectives regarding your IT budget.

    Gain insight into your historical IT expenditure.

    Set next fiscal year’s IT budget targets.

    Activities

    1.1 Review budget purpose. 

    1.2 Understand stakeholders and approvers.

    1.3 Gather your data.

    1.4 Map and review historical financial performance.

    1.5 Rationalize last year’s variances and set next year's budget targets.

    Outputs

    Budget process and culture assessment.

    Stakeholder alignment assessment and pre-selling strategy.

    Data prepared for next steps.

    Mapped historical expenditure.

    Next fiscal year’s budget targets.

    2 Forecast project CapEx

    The Purpose

    Develop a forecast of next fiscal year’s proposed capital IT expenditure driven by your organization’s strategic projects.

    Key Benefits Achieved

    Develop project CapEx forecast according to the four different stakeholder views of Info-Tech’s ITFM Cost Model.

    Ensure that no business projects that have IT implications (and their true costs) are missed.

    Activities

    2.1 Review the ITFM cost model

    2.2 List projects.

    2.3 Review project proposals and costs.

    2.4 Map and tally total project CapEx.

    2.5 Develop and/or confirm project-business alignment, ROI, and cost-benefit statements.

    Outputs

    Confirmed ITFM cost mdel.

    A list of projects.

    Confirmed list of project proposals and costs.

    Forecasted project-based capital expenditure mapped against the four views of the ITFM Cost Model.

    Projects financials in line.

    3 Forecast non-project CapEx and OpEx

    The Purpose

    Develop a forecast of next fiscal year’s proposed “business as usual” non-project capital and operating IT expenditure.

    Key Benefits Achieved

    Develop non-project CapEx and non-project OpEx forecasts according to the four different stakeholder views of Info-Tech’s ITFM Cost Model.

    Make “business as usual” costs fully transparent and rationalized.

    Activities

    3.1 Review non-project capital and costs. 

    3.2 Review non-project operations and costs.

    3.3 Map and tally total non-project CapEx and OpEx.

    3.4 Develop and/or confirm proposed expenditure rationales.

    Outputs

    Confirmation of non-project capital and costs.

    Confirmation of non-project operations and costs.

    Forecasted non-project-based capital expenditure and operating expenditure against the four views of the ITFM Cost Model.

    Proposed expenditure rationales.

    4 Finalize budget and develop presentation

    The Purpose

    Aggregate and sanity-check your forecasts, harden your rationales, and plan/develop the content for your IT budget executive presentation.

    Key Benefits Achieved

    Create a finalized proposed IT budget for next fiscal year that offers different views on your budget for different stakeholders.

    Select content for your IT budget executive presentation that will resonate with your stakeholders and streamline approval.

    Activities

    4.1 Aggregate forecast totals and sanity check.

    4.2 Generate graphical outputs and select content to include in presentation.

    4.3 Fine-tune rationales.

    4.4 Develop presentation and write commentary.

    Outputs

    Final proposed IT budget for next fiscal year.

    Graphic outputs selected for presentation.

    Rationales for budget.

    Content for IT Budget Executive Presentation.

    5 Next steps and wrap-up (offsite)

    The Purpose

    Finalize and polish the IT budget executive presentation.

    Key Benefits Achieved

    An approval-ready presentation that showcases your business-aligned proposed IT budget backed up with rigorous rationales.

    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

    Completed IT Budget Executive Presentation.

    Review scheduled.

    Further reading

    Create a Transparent and Defensible IT Budget

    Build in approvability from the start.

    EXECUTIVE BRIEF

    Analyst Perspective

    A budget’s approvability is about transparency and rationale, not the size of the numbers.

    Jennifer Perrier.

    It’s that time of year again – budgeting. Most organizations invest a lot of time and effort in a capital project selection process, tack a few percentage points onto last year’s OpEx, do a round of trimming, and call it a day. However, if you want to improve IT financial transparency and get your business stakeholders and the CFO to see the true value of IT, you need to do more than this.

    Yourcrea IT budget is more than a once-a-year administrative exercise. It’s an opportunity to educate, create partnerships, eliminate nasty surprises, and build trust. The key to doing these things rests in offering a range of budget perspectives that engage and make sense to your stakeholders, as well as providing iron-clad rationales that tie directly to organizational objectives.

    The work of setting and managing a budget never stops – it’s a series of interactions, conversations, and decisions that happen throughout the year. If you take this approach to budgeting, you’ll greatly enhance your chances of creating and presenting a defensible annual budget that gets approved the first time around.

    Jennifer Perrier
    Principal Research Director
    IT Financial Management Practice
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    IT struggles to gain budget approval year after year, largely driven by a few key factors:

    • For a long time, IT has been viewed as a cost center whose efficiency needs to be increasingly optimized over time. IT’s relationship to strategy is not yet understood or established in many organizations.
    • IT is one of the biggest areas of cost for many organizations. Often, executives don’t understand, or even believe, that all that IT spending is necessary to advance the organization’s objectives, let alone keep it running.

    Internal and external obstacles beyond IT’s control make these challenges even harder to overcome:

    • Economic pressures can quickly drive IT’s budgetary focus from strategic back to tactical.
    • Corporate-driven categorizations of expenditure, plus disconnected approval mechanisms for capital vs. operational spend, hide key interdependencies and other aspects of IT’s financial reality.
    • Connecting the dots between IT activities and business benefits rarely forms a straight line.

    CIOs need a straightforward way to create and present an approval-ready budget.

    • Info-Tech recognizes that connecting the dots to demonstrate value is key to budgetary approval.
    • Info-Tech also recognizes that key stakeholders require different perspectives on the IT budget.
    • This blueprint provides a framework, method, and templated exemplars for creating and presenting an IT budget to stakeholders. It will speed the approval process and ensure more of it is approved.

    Info-Tech Insight
    CIOs need a straightforward way to create and present an approval-ready IT budget that demonstrates the value IT is delivering to the business and speaks directly to different stakeholder priorities.

    IT struggles to get budgets approved due to low transparency and failure to engage

    Capability challenges

    Administrative challenges

    Operating challenges

    Visibility challenges

    Relationship challenges

    IT is seen as a cost center, not an enabler or driver of business strategy.

    IT leaders are not seen as business leaders.

    Economic pressures drive knee-jerk redirection of IT’s budgetary focus from strategic initiatives back to operational tactics.

    The vast majority of IT’s
    real-life expenditure is in the form of operating expenses i.e. keeping the lights on.

    Most business leaders don’t know how many IT resources their business units are really consuming.

    Other departments in the organization see IT as a competitor for funding, not a business partner.

    Lack of transparency

    IT and the business aren’t speaking the same language.

    IT leaders don’t have sufficient access to information about, or involvement in, business decisions and objectives.

    Outmoded finance department expenditure categorizations don’t accommodate IT’s real cost categories.

    IT absorbs unplanned spend because business leaders don’t realize or consider the impact of their decisions on IT.

    The business doesn’t understand what IT is, what it does, or what it can offer.

    IT and the business don’t have meaningful conversations about IT costs, opportunities, or investments.

    Defining and demonstrating the value of IT and its investments isn’t straightforward.

    IT leaders may not have the financial literacy or acumen needed to translate IT activities and needs into business terms.

    CapEx and OpEx approval and tracking mechanisms are handled separately when, in reality, they’re highly interdependent.

    IT activities usually have an indirect relationship with revenue, making value calculations more complicated.

    Much of IT, especially infrastructure, is invisible to the business and is only noticed if it’s not working.

    The relationship between IT spending and how it supports achievement of business objectives is not clear.

    Reflect on the numbers…

    The image contains a screenshot of five graphs. The graphs depict Cost and budget management, Cost optimization, Business value, perception of improvement, and intensity of business frustration.

    To move forward, first you need to get unstuck

    Today’s IT budgeting challenges have been growing for a long time. Overcoming these challenges means untangling yourself from the grip of the root causes.

    Principle 1:
    IT and the business are fighting diverging forces. Technology has changed monumentally, while financial management hasn’t changed much at all.

    Principle 2:
    Different stakeholders have different perspectives on your IT budget. Learn and acknowledge what’s important to them so that you can potentially deliver it.

    Principle 3:
    Connecting the dots to clearly demonstrate IT’s value to the organization is the key to budgetary approval. But those connected dots don’t always result in a straight line.

    The three principles above are all about IT’s changing relationship to the business. IT leaders need a systematic and repeatable approach to budgeting that addresses these principles by:

    • Clearly illustrating the alignment between the IT budget and business objectives.
    • Showing stakeholders the overall value that IT investment will bring them.
    • Demonstrating where IT is already realizing efficiencies and economies of scale.
    • Gaining consensus on the IT budget from all parties affected by it.

    “The culture of the organization will drive your success with IT financial management.”

    – Dave Kish, Practice Lead, IT Financial Management Practice, Info-Tech Research Group

    Info-Tech’s approach

    CIOs need a straightforward way to convince approval-granting CFOs, CEOs, boards, and committees to spend money on IT to advance the organization’s strategies.

    IT budget approval cycle

    The image contains a screenshot of the IT budget approval cycle.

    The Info-Tech difference:

    This blueprint provides a framework, method, and templated exemplars for building and presenting your IT budget to different stakeholders. These will speed the approval process and ensure that a higher percentage of your proposed spend is approved.

    Info-Tech’s methodology for how to create a transparent and defensible it budget

    1. Lay Your Foundation

    2. Get Into Budget-Starting Position

    3. Develop Your Forecasts

    4. Build Your Proposed Budget

    5. Create and Deliver Your Budget Presentation

    Phase steps

    1. Understand budget purpose
    2. Know your stakeholders
    3. Continuously pre-sell your budget
    1. Gather your data
    2. Review historical performance
    3. Set budget goals
    1. Develop alternate scenarios
    2. Develop project CapEx forecasts
    3. Develop non-project CapEx and OpEx forecasts
    1. Aggregate your forecasts
    2. Stress-test your forecasts
    3. Challenge and perfect your rationales
    1. Plan your presentation content
    2. Build your budget presentation
    3. Present, finalize, and submit your budget

    Phase outcomes

    An understanding of your stakeholders and what your IT budget means to them.

    Information and goals for planning next fiscal year’s IT budget.

    Completed forecasts for project and non-project CapEx and OpEx.

    A final IT budget for proposal including scenario-based alternatives.

    An IT budget presentation.

    Insight summary

    Overarching insight: Create a transparent and defensible IT budget

    CIOs need a straightforward way to create and present an approval-ready IT budget that demonstrates the value IT is delivering to the business and speaks directly to different stakeholder priorities.

    Phase 1 insight: Lay your foundation

    IT needs to step back and look at it’s budget-creation process by first understanding exactly what a budget is intended to do and learning what the IT budget means to IT’s various business stakeholders.

    Phase 2 Insight: Get into budget-starting position

    Presenting your proposed IT budget in the context of past IT expenditure demonstrates a pattern of spend behavior that is fundamental to next year’s expenditure rationale.

    Phase 3 insight: Develop your forecasts

    Forecasting costs according to a range of views, including CapEx vs. OpEx and project vs. non-project, and then positioning it according to different stakeholder perspectives, is key to creating a transparent budget.

    Phase 4 insight: Build your proposed budget

    Fine-tuning and hardening the rationales behind every aspect of your proposed budget is one of the most important steps for facilitating the budgetary approval process and increasing the amount of your budget that is ultimately approved.

    Phase 5 insight: Create and deliver your budget presentation

    Selecting the right content to present to your various stakeholders at the right level of granularity ensures that they see their priorities reflected in IT’s budget, driving their interest and engagement in IT financial concerns.

    Blueprint deliverables

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

    IT Cost Forecasting and Budgeting Workbook

    This Excel tool allows you to capture and work through all elements of your IT forecasting from the perspective of multiple key stakeholders and generates compelling visuals to choose from to populate your final executive presentation.

    The image contains a screenshot of the IT Cost Forecasting and Budgeting Workbook.

    Also download this completed sample:

    Sample: IT Cost Forecasting and Budgeting Workbook

    Key deliverable

    IT Budget Executive Presentation Template

    Phase 5: Create a focused presentation for your proposed IT budget that will engage your audience and facilitate approval.

    The image contains a screenshot of the IT Budget Executive Presentation Template.

    Blueprint benefits

    IT benefits

    Business benefits

    • Improve IT’s overall financial management capability.
    • Streamline the administration of annual IT budget development.
    • Legitimize the true purpose and value of IT operations and associated expenditure.
    • Create visibility on the part of both IT and the business into IT’s mandate, what needs to be in place, and what it costs to fund it.
    • Foster better relationships with business stakeholders by demonstrating IT’s business and financial competency, working in partnership with business leaders on IT investment decisions, and building mutual trust.
    • Better understand the different types of expenditure occurring in IT, including project CapEx, non-project CapEx, and non-project OpEx.
    • Gain insight into the relationship between one-time CapEx on ongoing OpEx and its ramifications.
    • See business priorities and concerns clearly reflected in IT’s budget down to the business-unit level.
    • Receive thorough return on investment calculations and cost-benefit analyses for all aspects of IT expenditure.
    • Understand the direct relationship between IT expenditure and the depth, breadth, and quality of IT service delivery to the business.

    Measure the value of this blueprint

    Ease budgetary approval and improve its accuracy.

    Near-term goals

    • Percentage of budget approved: Target 95%
    • Percentage of IT-driven projects approved: Target 100%
    • Number of iterations/re-drafts required to proposed budget: One iteration

    Long-term goal

    • Variance in budget vs. actuals: Actuals less than budget and within 2%

    In Phases 1 and 2 of this blueprint, we will help you understand what your approvers are looking for and gather the right data and information.

    In Phase 3, we will help you forecast your IT costs it terms of four stakeholder views so you can craft a more meaningful IT budget narrative.

    In Phases 4 and 5, we will help you build a targeted presentation for your proposed IT budget.

    Value you will receive:

    1. Increased forecast accuracy through using a sound cost-forecasting methodology.
    2. Improved budget accuracy by applying more thorough and transparent techniques.
    3. Increased budget transparency and completeness by soliciting input earlier and validating budgeting information.
    4. Stronger alignment between IT and enterprise goals through building a better understanding of the business values and using language they understand.
    5. A more compelling budget presentation by offering targeted, engaging, and rationalized information.
    6. A faster budgeting rework process by addressing business stakeholder concerns the first time.

    An analogy…

    “A budget isn’t like a horse and cart – you can’t get in front of it or behind it like that. It’s more like a river…

    When developing an annual budget, you have a good idea of what the OpEx will be – last year’s with an annual bump. You know what that boat is like and if the river can handle it.

    But sometimes you want to float bigger boats, like capital projects. But these boats don’t start at the same place at the same time. Some are full of holes. And does your river even have the capacity to handle a boat of that size?

    Some organizations force project charters by a certain date and only these are included in the following year’s budget. The project doesn’t start until 8-12 months later and the charter goes stale. The river just can’t float all these boats! It’s a failed model. You have to have a great governance processes and clear prioritization so that you can dynamically approve and get boats on the river throughout the year.”

    – Mark Roman, Managing Partner, Executive Services,
    Info-Tech Research Group and Former Higher Education CIO

    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

    Phase 1: Lay Your Foundation

    Phase 2: Get Into Budget-Starting Position

    Phase 3: Develop Your Forecasts

    Phase 4: Build Your Proposed Budget

    Phase 5: Create and Deliver Your Budget Presentation

    Call #1: Discuss the IT budget, processes, and stakeholders in the context of your unique organization.

    Call #2: Review data requirements for transparent budgeting.

    Call #3: Set budget goals and process improvement metrics.

    Call #4: Review project CapEx forecasts.

    Call #5: Review non-project CapEx and OpEx forecasts.

    Call #6: Review proposed budget logic and rationales.

    Call #7: Identify presentation inclusions and exclusions.

    Call #8: Review final budget presentation.

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

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

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4 Day 5

    Get into budget-starting position

    Forecast project CapEx

    Forecast non-project CapEx and OpEx

    Finalize budget and develop presentation

    Next Steps and
    Wrap-Up (offsite)

    Activities

    1.1 Review budget purpose.

    1.2 Understand stakeholders and approvers.

    1.3 Gather your data.

    1.4 Map and review historical financial performance.

    1.5 Rationalize last year’s variances.

    1.5 Set next year’s budget targets.

    2.1 Review the ITFM Cost Model.

    2.2 List projects.

    2.3 Review project proposals and costs.

    2.4 Map and tally total project CapEx.

    2.5 Develop and/or confirm project-business alignment, ROI, and cost-benefit statements.

    3.1 Review non-project capital and costs.

    3.2 Review non-project operations and costs.

    3.3 Map and tally total non-project CapEx and OpEx.

    3.4 Develop and/or confirm proposed expenditure rationales.

    4.1 Aggregate forecast totals and sanity check.

    4.2 Generate graphical outputs and select content to include in presentation.

    4.3 Fine-tune rationales.

    4.4 Develop presentation and write commentary.

    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. Budget process and culture assessment.
    2. Stakeholder alignment assessment and pre-selling strategy.
    3. Mapped historical expenditure.
    4. Next fiscal year’s budget targets.
    1. Forecasted project-based capital expenditure mapped against the four views of the ITFM Cost Model.
    1. Forecasted non-project-based capital expenditure and operating expenditure against the four views of the ITFM Cost Model.
    1. Final proposed IT budget for next fiscal year.
    2. Plan and build content for IT Budget Executive Presentation.
    1. Completed IT Budget Executive Presentation.

    Phase 1

    Lay Your Foundation

    Lay Your
    Foundation

    Get Into Budget-Starting Position

    Develop Your
    Forecasts

    Build Your
    Proposed Budget

    Create and Deliver Your Presentation

    1.1 Understand what your budget is
    and does

    1.2 Know your stakeholders

    1.3 Continuously pre-sell your budget

    2.1 Assemble your resources

    2.2 Understand the four views of the ITFM Cost Model

    2.3 Review last year’s budget vs.
    actuals and five-year historical trends

    2.4 Set your high-level goals

    3.1 Develop assumptions and
    alternative scenarios

    3.2 Forecast your project CapEx

    3.3 Forecast your non-project CapEx and OpEx

    4.1 Aggregate your numbers

    4.2 Stress test your forecasts

    4.3 Challenge and perfect your
    rationales

    5.1 Plan your content

    5.2 Build your presentation

    5.3 Present to stakeholders

    5.4 Make final adjustments and submit your IT budget

    This phase will walk you through the following activities:

    • Seeing your budget as a living governance tool
    • Understanding the point of view of different stakeholders
    • Gaining tactics for setting future IT spend expectations

    This phase involves the following participants:

    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Lay Your Foundation

    Before starting any process, you need to understand exactly why you’re doing it.

    This phase is about understanding the what, why, and who of your IT budget.

    • Understand what your budget is and does. A budget isn’t just an annual administrative event – it’s an important governance tool. Understand exactly what a budget is and your budgetary accountabilities as an IT leader.
    • Know your stakeholders. The CFO, CEO, and CXOs in your organization have their own priorities, interests, and professional mandates. Get to know what their objectives are and what IT’s budget means to them.
    • Continuously pre-sell your budget. Identifying, creating, and capitalizing on opportunities to discuss your budget well in advance of its formal presentation will get influential stakeholders and approvers on side, foster collaborations, and avoid unpleasant surprises on all fronts.

    “IT finance is more than budgeting. It’s about building trust and credibility in where we’re spending money, how we’re spending money. It’s about relationships. It’s about financial responsibility, financial accountability. I rely on my entire leadership team to all understand what their spend is. We are a steward of other people’s money.”

    – Rick Hopfer, CIO, Hawaii Medical Service Association

    What does your budget actually do?

    A budget is not just a painful administrative exercise that you go through once a year.

    Most people know what a budget is, but it’s important to understand its true purpose and how it’s used in your organization before you engage in any activity or dialogue about it.

    In strictly objective terms:

    • A budget is a calculated estimate of income vs. expenditure for a period in the future, often one year. Basically, it’s an educated guess about how much money will come into a business entity or unit and how much money will go out of it.
    • A balanced budget is where income and expenditure amounts are equal.
    • The goal in most organizations is for the income component of the budget to match or exceed the expenditure component.
      If it doesn’t, this results in a deficit that may lead to debt.

    Simply put, a budget’s fundamental purpose is to plan and communicate how an organization will avoid deficit and debt and remain financially viable while meeting its various accountabilities and responsibilities to its internal and external stakeholders.

    “CFOs are not thinking that they want to shut down IT spend. Nobody wants to do that. I always looked at things in terms of revenue streams – where the cash inflow is coming from, where it’s going to, and if I can align my cash outflows to my revenue stream. Where I always got suspicious as a CFO is if somebody can’t articulate spending in terms of a revenue stream. I think that’s how most CFOs operate.”

    – Carol Carr, Technical Counselor,
    Info-Tech Research Group and Former CFO

    Put your IT budget in context

    Your IT budget is just one of several budgets across your organization that, when combined, create an organization-wide budget. In this context, IT’s in a tough spot.

    It’s a competition: The various units in your organization are competing for the biggest piece they can get of the limited projected income pie. It’s a zero-sum game. The organization’s strategic and operational priorities will determine how this projected income is divvied up.

    Direct-to-revenue units win: Business units that directly generate revenue often get bigger relative percentages of the organizational budget since they’re integral to bringing in the projected income part of the budget that allows the expenditure across all business units to happen in the first place.

    Indirect-to-revenue units lose: Unlike sales units, for example, IT’s relationship to projected income tends to be indirect, which means that IT must connect a lot more dots to illustrate its positive impact on projected income generation.

    In financial jargon, IT really is a cost center: This indirect relationship to revenue also explains why the focus of IT budget conversations is usually on the expenditure side of the equation, meaning it doesn’t have a clear positive impact on income.

    Contextual metrics like IT spend as a percentage of revenue, IT OpEx as a percentage of organizational OpEx, and IT spend per organizational employee are important baseline metrics to track around your budget, internally benchmark over time, and share, in order to illustrate exactly where IT fits into the broader organizational picture.

    Budgeting isn’t a once-a-year thing

    Yet, many organizations treat it like a “one and done” point of annual administration. This is a mistake that misses out on the real benefits of budgeting.

    Many organizations have an annual budgeting and planning event that takes place during the back half of the fiscal year. This is where all formal documentation around planned projects and proposed spend for the upcoming year is consolidated, culminating in final presentation, adjustment, and approval. It’s basically a consolidation and ranking of organization-wide priorities at the highest level.

    If things are running well, this culmination point in the overall budget development and management process is just a formality, not the beginning, middle, and end of the real work. Ideally:

    • Budgets are actually used: The whole organization uses budgets as tools to actively manage day-to-day operations and guide decision making throughout the year in alignment with priorities as opposed to something that’s put on a shelf or becomes obsolete within a few months.
    • Interdependencies are evident: No discrete area of spend focus is an island – it’s connected directly or indirectly with other areas of spend, both within IT and across the organization. For example, one server interacts with multiple business applications, IT and business processes, multiple IT staff, and even vendors or external managed service providers. Cost-related decisions about that one server – maintain, repurpose, consolidate, replace, discard – will drive other areas of spend up or down.
    • There are no surprises: While this does happen, your budget presentation isn’t a great time to bring up a new point of significant spend for the first time. The items in next year’s proposed budget should be priorities that are already known, vetted, supported, and funded.

    "A well developed and presented budget should be the numeric manifestation of your IT strategy that’s well communicated and understood by your peers. When done right, budgets should merely affirm what’s already been understood and should get approved with minimal pushback.“

    – Patrick Gray, TechRepublic, 2020

    Understand your budgetary responsibilities as the IT leader

    It’s in your job description. For some stakeholders, it’s the most important part of it.

    While not a contract per se, your IT budget is an objective and transparent statement made in good faith that shows:

    • You know what it takes to keep the organization viable.
    • You understand the organization’s accountabilities and responsibilities as well as those of its leaders.
    • You’re willing and able to do your part to meet these accountabilities and responsibilities.
    • You know what your part of this equation is, as well as what parts should and must be played by others.

    When it comes to your budget (and all things financial), your job is to be ethical, careful, and wise:

    1. Be honest. Business ethics matter.
    2. Be as accurate as possible. Your expenditure predictions won’t be perfect, but they need to be best-effort and defensible.
    3. Respect the other players. They have their own roles, motivations, and mandates. Accept and respect these by being a supporter of their success instead of an obstacle to them achieving it.
    4. Connect the dots to income. Always keep the demonstration of business value in your sights. Often, IT can’t draw a straight line to income, but demonstrating how IT expenditure supports and benefits future, current, and past (but still relevant) business goals and strategies, which in turn affect income, is the best course.
    5. Provide alternatives. There are only so many financial levers your organization can pull. An action on one lever will have wanted and unwanted consequences on another. Aim to put financial discussions in terms of risk-focused “what if” stories and let your business partners decide if those risks are satisfactory.

    Budgeting processes tend to be similar – it’s budgeting cultures that drive differences

    The basic rules of good budgeting are the same everywhere. Bad budgeting processes, however, are usually caused by cultural factors and can be changed.

    What’s the same everywhere…

    What’s unchangeable…

    What’s changeable…

    For right or wrong, most budgeting processes follow these general steps:

    There are usually only three things about an organization’s budgeting process that are untouchable and can’t be changed:

    Budgeting processes are rarely questioned. It never occurs to most people to challenge this system, even if it doesn’t work. Who wants to challenge the CFO? No one.

    Review your organization’s budgeting culture to discover the negotiable and non-negotiable constraints. Specifically, look at these potentially-negotiable factors if they’re obstacles to IT budgeting success:

    1. Capital project vetting and selection for the next fiscal year starts three-to-six months before the end of the current fiscal year.
    2. Operational expenditure, including salaries, is looked at later with much less formality and scrutiny with an aim to cut.
    3. Each business unit does a budget presentation and makes directed amendments (usually trimming).
    4. The approved budget numbers are plugged into a standard, sub-optimal budget template provided by Finance.
    1. The legal and regulatory mandates that govern financial funding, accounting, and reporting practices. These are often specific to industries and spend types.
    2. The accounting rules your organization follows, such as GAAP, or IFRS. These too may be legally mandated for government entities and publicly-traded companies.
    3. Hard limits on the projected available income the CFO has to distribute.
    • Timeframes and deadlines
    • Order of operations
    • Areas of focus (CapEx vs. OpEx)
    • Funding sources and ownership
    • Review/approval mechanisms
    • Templates and tools

    1.1 Review your budgeting process and culture

    1 hour

    1. Review the following components of your budget process using the questions provided for each as a guideline.
      1. Legal and regulatory mandates. What are the external rules that govern how we do financial tracking and reporting? How do they manifest in our processes?
      2. Accounting rules used. What rules does our finance department use and why? Do these rules allow for more meaningful representations of IT spend? Are there policies or practices in place that don’t appear to be backed by any external standards?
      3. Timeframes and deadlines. Are we starting the budgeting process too late? Do we have enough time to do proper due diligence? Will expenditures approved now be out of date when we go to execute? Are there mechanisms to update spend plans mid-cycle?
      4. Order of operations. What areas of spend do we always look at first, such as CapEx? Are there any benefits to changing the order in which we do things, such as examining OpEx first?
      5. Areas of focus. Is CapEx taking up most of our budgeting cycle time? Are we spending enough time examining OpEx? Is IT getting enough time from the CFO compared to other units?
      6. Funding sources and ownership. Is IT footing most of the technology bills? Are business unit leaders fronting any technology business case pitches? Is IT appropriately included in business case development? Is there any benefit to implementing show-back or charge-back?
      7. Review/approval mechanisms. Are strategies and priorities used to rank proposed spend clear and well communicated? Are spend approvers objective in their decision making? Do different approvers apply the same standards and tools?
      8. Templates and tools. Are the ones provided by Finance, the PMO, and other groups sufficient to document what we need to document? Are they accessible and easy to use? Are they automated and integrated so we only have to enter data once?
    2. On the slide following these activity instructions, rate how effective each of the above is on a scale of 1-10 (where 10 is very effective) in supporting the budgeting process. Note specific areas of challenge and opportunity for change.

    1.1 Review your budgeting process and culture

    Input Output Materials Participants
    • Organizational knowledge of typical budgeting processes
    • Copies of budgeting policies, procedures, and tools
    • Rated assessment of your organization’s budget process and culture, as well as major areas of challenge and opportunity for change
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Budget process and culture assessment

    Document the outcomes of your assessment. Examples are provided below.

    Budgeting area of assessment

    Rating

    1 = very ineffective

    10 = very effective

    Challenges

    Opportunities for change

    Legal and regulatory mandates

    7

    Significant regulation but compliance steps not clear or supported within departments.

    Create, communicate, and train management on compliance procedures and align the financial management tools accordingly.

    Accounting rules

    6

    IT not very familiar with them.

    Learn more about them and their provisions to see if IT spend can be better represented.

    Timeframes and deadlines

    5

    Finalize capital project plans for next fiscal four months before end of current fiscal.

    Explore flexible funding models that allow changes to budget closer to project execution.

    Order of operations

    3

    Setting CapEx before OpEx leads to paring of necessary OpEx based on CapEx commitments.

    Establish OpEx first as a baseline and then top up to target budget with CapEx.

    Areas of focus

    6

    Lack of focus on OpEx means incremental budgeting – we don’t know what’s in there.

    Perform zero-based budgeting on OpEx every few years to re-rationalize this spend.

    Funding sources and ownership

    4

    IT absorbing unplanned mid-cycle spend due to impact of unknown business actions.

    Implement a show-back mechanism to change behavior or as precursor to limited charge-back.

    Review/approval mechanisms

    8

    CFO is fair and objective with information presented but could demand more evidence.

    Improve business sponsorship/fronting of new initiative business cases and IT partnership.

    Templates and tools

    2

    Finance budget template largely irrelevant and unreflective of IT: only two relevant categories.

    Adjust account buckets over a period of time, starting with SW/HW and cloud breakouts.

    Receptive audiences make communication a lot easier

    To successfully communicate anything, you need to be heard and understood.

    The key to being heard and understood is first to hear and understand the perspective of the people with whom you’re trying to communicate – your stakeholders. This means asking some questions:

    • What context are they operating in?
    • What are their goals and responsibilities?
    • What are their pressures and stresses?
    • How do they deal with novelty and uncertainty?
    • How do they best take in information and learn?

    The next step of this blueprint shows the perspectives of IT’s key stakeholders and how they’re best able to absorb and accept the important information contained in your IT budget. You will:

    • Learn a process for discovering these stakeholders’ IT budget information needs within the context of your organization’s industry, goals, culture, organizational structure, personalities, opportunities, and constraints.
    • Document key objectives and messages when communicating with these various key stakeholders.

    There are certain principles, mandates, and priorities that drive your stakeholders; they’ll want to see these reflected in you, your work, and your budget.

    Your IT budget means different things to different stakeholders

    Info-Tech’s ITFM Cost Model lays out what matters most from various points of view.

    The image contains a screenshot of Info-Tech's ITFM Cost Model.

    The CFO: Understand their role

    The CFO is the first person that comes to mind in dealing with budgets. They’re personally and professionally on the line if anything runs amiss with the corporate purse.

    What are the CFO’s role and responsibilities?

    • Tracking cash flow and balancing income with expenditures.
    • Ensuring fiscal reporting and legal/regulatory compliance.
    • Working with the CEO to ensure financial-strategic alignment.
    • Working with business unit heads to set aligned budgets.
    • Seeing the big picture.

    What’s important to the CFO?

    • Costs
    • Benefits
    • Value
    • Analysis
    • Compliance
    • Risk Management
    • Strategic alignment
    • Control
    • Efficiency
    • Effectiveness
    • Reason
    • Rationale
    • Clarity
    • Objectivity
    • Return on investment

    “Often, the CFO sees IT requests as overhead rather than a need. And they hate increasing overhead.”

    – Larry Clark, Executive Counselor, Info-Tech Research Group and Former CIO

    The CFO carries big responsibilities focused on mitigating organizational risks. It’s not their job to be generous or flexible when so much is at stake. While the CEO appears higher on the organizational chart than the CFO, in many ways the CFO’s accountabilities and responsibilities are on par with, and in some cases greater than, those of the CEO.

    The CFO: What they want from the IT budget

    What they need should look familiar, so do your homework and be an open book.

    Your CFO’s IT budget to-do list:

    Remember to:

    • A review of the previous year financial performance. This demonstrates to the CFO your awareness, savvy, and overall competence in the financial management realm. This is also your opportunity to start laying out the real-life context within which IT has been operating. Information to show includes:
      • Budget vs. actuals, including an overview of factors that led to major variances.
      • Percentage difference in proposed budget versus previous year’s budget, and major contributing factors to those differences (i.e. unanticipated projects, changes, or events).
    • Presentation of information according to Finance’s existing categories. This makes it as easy as possible for them to plug your numbers into their system.
    • Separate views of overall workforce vs. overall vendor spending. This is a traditional view.
    • Separate views of capital expenditure (CapEx) and operating expenditure (OpEx). This also includes information on expected lifespan of proposed new capital assets to inform depreciation/amortization decisions.
    • Explanation of anticipated sources of funding. Specifically, indicate whether the funding required is a brand-new net increase or a reallocation from the existing pool.
    • Details (upon request). Have these available for every aspect of your proposed budget.
    • Avoid being flashy. Exclude proposed expenditures with a lot of bells and whistles that don’t directly tie to concrete business objectives.
    • Be a conservationist. Show how you plan to re-use or extend assets that you already have.
    • Act like a business leader. Demonstrate your understanding of near-term (12-month) realities, priorities, and goals.
    • Think like them. Present reliable and defensible calculations of benefits versus risks as well as projected ROI for major areas of new or different spending.

    The CFO: Budget challenges and opportunities

    Budget season is a great time to start changing the conversation and building trust.

    Potential challenges

    Low trust

    Poor financial literacy and historical sloppiness among business unit leaders means that a CFO may come into budget conversations with skepticism. This can put them on the offensive and put you on the defensive. You have to prove yourself.

    Competition

    You’re not the only department the CFO is dealing with. Everyone is competing for their piece of the pie, and some business unit leaders are persistent. A good CFO will stay out of the politics and not be swayed by sweet talk, but it can be an exhausting experience for them.

    Mismatched buckets

    IT’s spend classes and categories probably won’t match what’s in Finance’s budget template or general ledger. Annual budgeting isn’t the best time to bring this up. Respect Finance’s categories, but plan to tackle permanent changes at a less busy time.

    Potential opportunities

    Build confidence

    Engaging in the budgeting process is your best chance to demonstrate your knowledge about the business and your financial acumen. The more that the CFO sees that you get it and are taking it seriously, the more confidence and trust they’ll have in you.

    Educate

    The CFO will not know as much as you about the role technology could and should play in the organization. Introduce new language around technology focused on capabilities and benefits. This will start to shift the conversation away from costs and toward value.

    Initiate alignment

    An important governance objective is to change the way IT expenditure is categorized and tracked to better reveal and understand what’s really happening. This process should be done gradually over time, but definitely communicate what you want to do and why.

    The CXO: Understand their role

    CXOs are a diverse group who lead a range of business functions including admin, operations, HR, legal, production, sales and service, and marketing, to name a few.

    What are the CXO’s role and responsibilities?

    Like you, the CXO’s job is to help the organization realize its goals and objectives. How each CXO does this is specific to the domain they lead. Variations in roles and responsibilities typically revolve around:

    • Law and regulation. Some functions have compliance as a core mandate, including legal, HR, finance, and corporate risk groups.
    • Finance and efficiency. Other functions prioritize time, money, and process such as finance, sales, customer service, marketing, production, operations, and logistics units.
    • Quality. These functions prioritize consistency, reliability, relationship, and brand such as production, customer service, and marketing.

    What’s important to the CXO?

    • Staffing
    • Skills
    • Reporting
    • Funding
    • Planning
    • Performance
    • Predictability
    • Customers
    • Visibility
    • Inclusion
    • Collaboration
    • Reliability
    • Information
    • Knowledge
    • Acknowledgement

    Disagreement is common between business-function leaders – they have different primary focus areas, and conflict and misalignment are natural by-products of that fact. It’s also hard to make someone care as much about your priorities as you do. Focus your efforts on sharing and partnering, not converting.

    The CXO: What they want from the IT budget

    Focus on their unique part of the organization and show that you see them.

    Your CXO’s IT budget to-do list:

    Remember to:

    • A review of the previous year’s IT expenditure on the business function. This includes:
      • Budget vs. actuals (if available) for the business function, and overview of any situations or factors that led to major variances.
      • Percentage difference in proposed budget for that business function vs. the previous year’s spend, and major contributing factors to those differences, i.e. unanticipated projects, changes, or events.
      • Last year’s IT expenditure per business function employee vs. proposed IT expenditure per business function employee (if available). This is a good metric to use going forward as it’s a fair comparative internal benchmark.
    • Separate views of proposed IT workforce vs. proposed IT vendor spending for the business function. Do a specific breakout of proposed expenditure for the major applications that business unit explicitly uses.
    • Separate views of proposed IT capital expenditure (CapEx) and proposed IT operating expenditure (OpEx) for the business function. Show breakdowns for each capital project,
      as well as summaries for their core applications and portion of shared IT services.
    • Celebrate any collaborative wins from last year. You want to reinforce that working together is in both of your best interests and you’d like to keep it going.
    • Get to the apps fast. Apps are visible, concrete, and relatable – this is what the CXO cares about. Core IT infrastructure, on the other hand, is technobabble about something that’s invisible, boring, and disengaging for most CXOs.
    • Focus on the business function’s actual technology needs and consumption. Show them where they stand in relation to others. This will get their attention and serve as an opportunity to provide some education.

    The CXO: Budget challenges and opportunities

    Seek out your common ground and be the solution for their real problems.

    Potential challenges

    Different priorities

    Other business unit leaders will have bigger concerns than your IT budget. They have their own budget to figure out plus other in-flight issues. The head of sales, for instance, is going to be more concerned with hitting sales goals for this fiscal year than planning for next.

    Perceived irrelevance

    Some business unit leaders may be completely unaware of how they use IT, how much they use, and how they could use it more or differently to improve their performance. They may have a learning curve to tackle before they can start to see your relationship as collaborative.

    Bad track record

    If a business unit has had friction with IT in the past or has historically been underserved, they may be hesitant to let you in, may be married to their own solutions, or perhaps do not know how to express what they need.

    Potential opportunities

    Start collaborating

    You and other business unit leaders have a lot in common. You all share the objective of helping the organization succeed. Focus in on your shared concerns and how you can make progress on them together before digging into your unique challenges.

    Practice perspective taking

    Be genuinely curious about the business unit, how it works, and how they overcome obstacles. See the organization from their point of view. For now, keep your technologies completely out of the discussion – that will come later on.

    Build relationships

    You only need to solve one problem for a business unit to change how they think of you. Just one. Find that one thing that will make a real difference – ideally small but impactful – and work it into your budget.

    The CEO: Understand their role

    A CEO sets the tone for an organization, from its overall direction and priorities to its values and culture. What’s possible and what’s not is usually determined by them.

    What are the CEO’s role and responsibilities?

    • Assemble an effective team of executives and advisors.
    • Establish, communicate, and exemplify the organizations core values.
    • Study the ecosystem within which the organization exists.
    • Identify and evaluate opportunities.
    • Set long-term directions, priorities, goals, and strategies.
    • Ensure ongoing organizational performance, profitability, and growth.
    • Connect the inside organization to the outside world.
    • Make the big decisions no one else can make.

    What’s important to the CEO?

    • Strategy
    • Leadership
    • Vision
    • Values
    • Goals
    • Priorities
    • Performance
    • Metrics
    • Accountability
    • Stakeholders
    • Results
    • Insight
    • Growth
    • Cohesion
    • Context

    Unlike the CFO and CXOs, the CEO is responsible for seeing the big picture. That means they’re operating in the realm of big problems and big ideas – they need to stay out of the weeds. IT is just one piece of that big picture, and your problems and ideas are sometimes small in comparison. Use any time you get with them wisely.

    The CEO: What they want from the IT budget

    The CEO wants what the CFO wants, but at a higher level and with longer-term vision.

    Your CEO’s IT budget to-do list:

    Remember to:

    • A review of the previous year’s financial performance. In addition to last year’s budget vs. actuals vs. proposed budget and any rationales for variances, the CEO’s interest is in seeing numbers in terms of strategic delivery. Focus on performance against last year’s goals and concrete benefits realized.
    • A review of initiatives undertaken to optimize/reduce operating costs. Note overall gains with a specific look at initiatives that had a substantial positive financial impact.
    • A specific summary of the cost landscape for new strategic or capital projects. Ideally, these projects have already been committed to at the executive level. A more fine-tuned analysis of anticipated costs and variables may be required, including high-level projects with long-term impact on operational expenditure. Categorize these expenditures as investments in innovation, growth, or keeping the lights on.
    • Details (upon request). Have these available for every aspect of your proposed budget.
    • Be brief. Hopefully, the CEO is already well versed on the strategic spend plans. Stay high-level, reserve the deep dive for your documentation, and let the CEO decide if they want to hash anything out in more detail.
    • Be strategic. If you can’t tie it to a strategic objective, don’t showcase it.
    • Use performance language. This means citing goals, metrics, and progress made against them.
    • Ensure the CFO can translate. You may not get a direct audience with the CEO – the CFO may be your proxy for that. Ensure that everything is crystal clear so that the CFO can summarize your budget on your behalf.

    The CEO: Budget challenges and opportunities

    Strategically address the big issues, but don’t count on their direct assistance.

    Potential challenges

    Lack of interest

    Your CEO may just not be enthusiastic about technology. For them, IT is strictly a cost center operating on the margins. If they don’t have a strategic vision that includes technology, IT’s budget will always be about efficiency and cost control and not investment.

    Deep hierarchy

    The executive-level CIO role isn’t yet pervasive in every industry. There may be one or more non-IT senior management layers between IT and the office of the CEO, as well as other bureaucratic hurdles, which prohibit your direct access.

    Uncertainty

    What’s happening on the outside will affect what needs to be done on the inside. The CEO has to assess and respond quickly, changing priorities and plans in an instant. An indecisive CEO that’s built an inflexible organization will make it difficult to pivot as needed.

    Potential opportunities

    Grow competency

    Sometimes, IT just needs to wait it out. The biggest shifts in technology interest often come with an outright change in the organization’s leadership. In the meantime, fine-tune your operational excellence, brush up on business skills, and draft out your best ideas on paper.

    Build partnerships

    Other business-function executives may need to be IT’s voice. Investment proposals may be more compelling coming from them anyway. Behind-the-scenes partnerships and high-profile champions are something you want regardless of your degree of CEO access.

    Bake in resilience

    Regardless of who’s at the helm, systematic investment in agile and flexible solutions that can be readily scaled, decoupled, redeployed, or decommissioned is a good strategy. Use recent crises to help make the strategic case for a more resilient posture.

    What about the CIO view on the IT budget?

    IT leaders tend to approach budgeting from an IT services perspective. After all, that’s how their departments are typically organized.

    The CFO expense view, CXO business view, and CEO innovation view represent IT’s stakeholders. The CIO service view, however, represents you, the IT budget creator. This means that the CIO service view plays a slightly different role in developing your IT budget communications.

    An IT team effort…

    A logical starting point

    A supporting view

    Most budget drafts start with internal IT management discussion. These managers are differentially responsible for apps dev and maintenance, service desk and user support, networks and data center, security, data and analytics, and so forth.

    These common organizational units and their managers tend to represent discrete IT service verticals. This means the CIO service view is a natural structural starting point for your budget-building process. Stakeholder views of your budget will be derived from this first view.

    You probably don’t want to lead your budget presentation with IT’s perspective – it won’t make sense to your stakeholders. Instead, select certain impactful pieces of your view to drop in where they provide valued information and augment the IT budget story.

    Things to bring forward…

    Things to hold back…

    • All major application costs
    • Security/compliance costs
    • Strategic project costs
    • End-user support and enablement costs
    • Data and BI initiative costs
    • Minor applications costs
    • Day-to-day network and data center costs
    • Other infrastructure costs
    • IT management and administration costs

    1.2 Assess your stakeholders

    1 hour

    1. Use the “Stakeholder alignment assessment” template slide following this one to document the outcomes of this activity.
    2. As an IT management team, identify your key budget stakeholders and specifically those in an approval position.
    3. Use the information provided in this blueprint about various stakeholder responsibilities, areas of focus, and what’s typically important to them to determine each key stakeholder’s needs regarding the information contained in your IT budget. Note their stated needs, any idiosyncrasies, and IT’s current relationship status with the stakeholder (positive, neutral, or negative).
    4. Assess previous years’ IT budgets to determine how well they targeted each different stakeholder’s needs. Note any gaps or areas for future improvement.
    5. Develop a high-level list of items or elements to stop, start, or continue during your next budgeting cycle.
    Input Output
    • Organizational awareness of key stakeholders and budget approvers
    • Previous years’ budgets
    • Assessment of key stakeholder needs and a list of potential changes or additions to the IT budget/budget process
    Materials Participants
    • Whiteboard/flip charts
    • Stakeholder alignment assessment template (following slide)
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Stakeholder alignment assessment

    Document the outcomes of your assessment below. Examples are provided below.

    Stakeholder

    Relationship status

    Understanding of needs

    Budget changes/additions

    CFO

    Positive

    Wants at least 30% of budget to be CapEx. Needs more detail concerning benefits and tracking of realization.

    Do more detailed breakouts of CapEx vs. OpEx as 30% CapEx not realistic – pre-meet. Talk to Enterprise PMO about improving project benefits statement template.

    VP of Sales

    Negative

    Only concerned with hitting sales targets. Needs to respond/act quickly based on reliable data.

    Break out sales consumption of IT resources in detail focusing on CRM and SFA tool costs. Propose business intelligence enhancement project.

    Director of Marketing

    Neutral

    Multiple manual processes – would benefit from increased automation of campaign management and social media posting.

    Break out marketing consumption of IT resources and publicly share/compare to generate awareness/support for tech investment. Work together to build ROI statements

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    Set your IT budget pre-selling strategy

    Pre-selling is all about ongoing communication with your stakeholders. This is the most game-changing thing you can do to advance a proposed IT budget’s success.

    When IT works well, nobody notices. When it doesn’t, the persistent criticism about IT not delivering value will pop up, translating directly into less funding. Cut this off at the pass with an ongoing communications strategy based on facts, transparency, and perspective taking.

    1. Know your channels
    2. Identify all the communication channels you can leverage including meetings, committees, reporting cycles, and bulletins. Set up new channels if they don’t exist.

    3. Identify partners
    4. Nothing’s better than having a team of supporters when pitch day comes. Quietly get them on board early and be direct about the role each of you will play.

    5. Always be prepared
    6. Have information and materials about proposed initiatives at-the-ready. You never know when you’ll get your chance. But if your facts are still fuzzy, do more homework first.

    7. Don’t be annoying
    8. Talking about IT all the time will turn people off. Plan chats that don’t mention IT at all. Ask questions about their world and really listen. Empathy’s a powerful tool.

    9. Communicate IT initiatives at launch
    10. Describe what you will be doing and how it will benefit the business in language that makes sense to the beneficiaries of the initiative.

    11. Communicate IT successes
    12. Carry the same narrative forward through to the end and tell the whole story. Include comments from stakeholders and beneficiaries about the value they’re receiving.

    Pre-selling with partners

    The thing with pre-selling to partners is not to take a selling approach. Take a collaborative approach instead.

    A partner is an influencer, advocate, or beneficiary of the expenditure or investment you’re proposing. Partners can:

    • Advise you on real business impacts.
    • Voice their support for your funding request.
    • Present the initial business case for funding approval themselves.
    • Agree to fund all or part of an initiative from their own budget.

    When partners agree to pitch or fund an initiative, IT can lose control of it. Make sure you set specific expectations about what IT will help with or do on an ongoing basis, such as:

    • Calculating the upfront and ongoing technology maintenance/support costs of the initiative.
    • Leading the technology vetting and selection process, including negotiating with vendors, setting service-level agreements, and finalizing contracts.
    • Implementing selected technologies and training users.
    • Maintaining and managing the technology, including usage metering.
    • Making sure the bills get paid.

    A collaborative approach tends to result in a higher level of commitment than a selling approach.

    Put yourself in their shoes using their language. Asking “How will this affect you?” focuses on what’s in it for them.

    Example:

    CIO: “We’re thinking of investing in technology that marketing can use to automate posting content to social media. Is that something you could use?”

    CMO: “Yes, we currently pay two employees to post on Facebook and Twitter, so if it could make that more efficient, then there would be cost savings there.”

    Pre-selling with approvers

    The key here is to avoid surprises and ensure the big questions are answered well in advance of decision day.

    An approver is the CFO, CEO, board, council, or committee that formally commits funding support to a program or initiative. Approvers can:

    • Point out factors that could derail realization of intended benefits.
    • Know that a formal request is coming and factor it into their planning.
    • Connect your idea with others to create synergies and efficiencies.
    • Become active advocates.

    When approvers cool to an idea, it’s hard to warm them up again. Gradually socializing an idea well in advance of the formal pitch gives you the chance to isolate and address those cooling factors while they’re still minor. Things you can address if you get an early start with future approvers include:

    • Identify and prepare for administrative, regulatory, or bureaucratic hurdles.
    • Incorporate approvers’ insights about organizational realities and context.
    • Further reduce the technical jargon in your language.
    • Fine tune the relevance and specificity of your business benefits statements.
    • Get a better sense of the most compelling elements to focus on.

    Blindsiding approvers with a major request at a budget presentation could trigger an emotional response, not the rational and objective one you want.

    Make approvers part of the solution by soliciting their advice and setting their expectations well in advance.

    Example:

    CIO: “The underwriting team and I think there’s a way to cut new policyholder approval turnaround from 8 to 10 days down to 3 or 4 using an online intake form. Do you see any obstacles?”

    CFO: “How do the agents feel about it? They submit to underwriting differently and might not want to change. They’d all need to agree on it. Exactly how does this impact sales?”

    1.3 Set your budget pre-selling strategy

    1 hour

    1. Use the “Stakeholder pre-selling strategy” template slide following this instruction slide to document the outcomes of this activity.
    2. Carry forward your previously-generated stakeholder alignment assessment from Step 1.2. As a management team, discuss the following for each stakeholder:
      1. Forums and methods of contact and interaction.
      2. Frequency of interaction.
      3. Content or topics typically addressed during interactions.
    3. Discuss what the outcomes of an ideal interaction would look like with each stakeholder.
    4. List opportunities to change or improve the nature of interactions and specific actions you plan to take.
    InputOutput
    • Stakeholder Alignment Assessment (in-deck template)
    • Stakeholder Pre-selling Strategy
    MaterialsParticipants
    • Stakeholder Pre-selling Strategy (in-deck template)
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Stakeholder pre-selling strategy

    Document the outcomes of your discussion. Examples are provided below.

    Stakeholder

    Current interactions

    Opportunities and actions

    Forum

    Frequency

    Content

    CFO

    One-on-one meeting

    Monthly

    IT expenditure updates and tracking toward budgeted amount.

    Increase one-on-one meeting to weekly. Alternate focus – retrospective update one week, future-looking case development the next. Invite one business unit head to future-looking sessions to discuss their IT needs.

    VP of Sales

    Executive meeting

    Quarterly

    General business update - dominates.

    Set up bi-weekly one-on-one meeting – initially focus on what sales does/needs, not tech. Later, when the relationship has stabilized, bring data that shows Sales’ consumption of IT resources.

    Director of Marketing

    Executive meeting

    Quarterly

    General business update - quiet.

    Set up monthly one-on-one meeting. Temporarily embed BA to better discover/understand staff processes and needs.

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    Phase recap: Lay your foundation

    Build in the elements from the start that you need to facilitate budgetary approval.

    You should now have a deeper understanding of the what, why, and who of your IT budget. These elements are foundational to streamlining the budget process, getting aligned with peers and the executive, and increasing your chances of winning budgetary approval in the end.

    In this phase, you have:

    • Reviewed what your budget is and does. Your budget is an important governance and communication tool that reflects organizational priorities and objectives and IT’s understanding of them.
    • Taken a closer look at your stakeholders. The CFO, CEO, and CXOs in your organization have accountabilities of their own to meet and need IT and its budget to help them succeed.
    • Developed a strategy for continuously pre-selling your budget. Identifying opportunities and approaches for building relationships, collaborating, and talking meaningfully about IT and IT expenditure throughout the year is one of the leading things you can do to get on the same page and pave the way for budget approval.

    “Many departments have mostly labor for their costs. They’re not buying a million and a half or two million dollars’ worth of software every year or fixing things that break. They don’t share IT’s operations mindset and I think they get frustrated.”

    – Matt Johnson, IT Director Governance and Business Solutions, Milwaukee County

    Phase 2

    Get Into Budget-Starting Position

    Lay Your
    Foundation

    Get Into Budget-Starting Position

    Develop Your
    Forecasts

    Build Your
    Proposed Budget

    Create and Deliver Your Presentation

    1.1 Understand what your budget is
    and does

    1.2 Know your stakeholders

    1.3 Continuously pre-sell your budget

    2.1 Assemble your resources

    2.2 Understand the four views of the ITFM Cost Model

    2.3 Review last year’s budget vs.
    actuals and five-year historical trends

    2.4 Set your high-level goals

    3.1 Develop assumptions and
    alternative scenarios

    3.2 Forecast your project CapEx

    3.3 Forecast your non-project CapEx and OpEx

    4.1 Aggregate your numbers

    4.2 Stress test your forecasts

    4.3 Challenge and perfect your
    rationales

    5.1 Plan your content

    5.2 Build your presentation

    5.3 Present to stakeholders

    5.4 Make final adjustments and submit your IT budget

    This phase will walk you through the following activities:

    • Putting together your budget team and gather your data.
    • Selecting which views of the ITFM Cost Model you’ll use.
    • Mapping and analyzing IT’s historical expenditure.
    • Setting goals and metrics for the next budgetary cycle.

    This phase involves the following participants:

    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Get into budget-starting position

    Now’s the time to pull together your budgeting resources and decision-making reference points.

    This phase is about clarifying your context and defining your boundaries.

    • Assemble your resources. This includes the people, data, and other information you’ll need to maximize insight into future spend requirements.
    • Understand the four views of the IT Cost Model. Firm up your understanding of the CFO expense view, CIO service view, CXO business view, and CEO innovation view and decide which ones you’ll use in your analysis and forecasting.
    • Review last year’s budget versus actuals. You need last year’s context to inform next year’s numbers as well as demonstrate any cost efficiencies you successfully executed.
    • Review five-year historical trends. This long-term context gives stakeholders and approvers important information about where IT fits into the business big picture and reminds them how you got to where you are today.
    • Set your high-level goals. You need to decide if you’re increasing, decreasing, or holding steady on your budget and whether you can realistically meet any mandates you’ve been handed on this front. Set a target as a reference point to guide your decisions and flag areas where you might need to have some tough conversations.

    “A lot of the preparation is education for our IT managers so that they understand what’s in their budgets and all the moving parts. They can actually help you keep it within bounds.”

    – Trisha Goya, Director, IT Governance & Administration, Hawaii Medical Service Association

    Gather your budget-building team

    In addition to your CFO, CXOs, and CEO, there are other people who will provide important information, insight, and skill in identifying IT budget priorities and costs.

    Role

    Skill set

    Responsibilities

    IT Finance Lead

    • Financial acumen, specifically with cost forecasting and budgeting.
    • Understanding of actual IT costs and service-based costing methods.

    IT finance personnel will guide the building of cost forecasting methodologies for operating and capital costs, help manage IT cash flows, help identify cost reduction options, and work directly with the finance department to ensure they get what they need.

    IT Domain Managers

    • Knowledge of services and their outputs.
    • Understanding of cost drivers for the services they manage.

    They will be active participants in budgeting for their specific domains, act as a second set of eyes, assist with and manage their domain budgets, and engage with stakeholders.

    Project Managers

    • Knowledge of project requirements.
    • Project budgeting.
    • Understanding of project IT-specific costs.

    Project managers will assist in capital and operational forecasting and will review project budgets to ensure accuracy. They will also assist in forecasting the operational impacts of capital projects.

    As the head of IT, your role is as the budgeting team lead. You understand both the business and IT strategies, and have relationships with key business partners. Your primary responsibilities are to guide and approve all budget components and act as a liaison between finance, business units, and IT.

    Set expectations with your budgeting team

    Be clear on your goals and ensure everyone has what they need to succeed.

    Your responsibilities and accountabilities.

    • Budget team lead.
    • Strategic direction.
    • Primary liaison with business stakeholders.
    • Pre-presentation approver and final decision maker.

    Goals and requirements.

    • Idea generation for investment and cost optimization.
    • Cost prioritization and rationale.
    • Skills requirements and sourcing options.
    • Risk assessment and operational impact.
    • Data format and level of granularity.

    Budgeting fundamentals.

    • Review of key finance concepts – CapEx, OpEx, cashflow, income, depreciation, etc.
    • What a budget is, and its component parts.
    • How the budget will be used by IT and the organization.
    • How to calculate cost forecasts.

    Their responsibilities and accountabilities.

    • Data/information collection.
    • Operational knowledge of their services, projects, and staff.
    • Cost forecast development for their respective domains/projects.
    • Review and sanity checking of their peers’ cost forecasts.

    Timeframes and deadlines.

    • Budgeting stages/phases and their deliverables.
    • Internal IT deadlines.
    • External business deadlines.
    • Goals and cadence of future working sessions and meetings.

    Available resources.

    • Internal and external sources of data and information.
    • Tools and templates for tracking information and performing calculations.
    • Individuals who can provide finance concept guidance and support.
    • Repositories for in-progress and final work.

    2.1 Brief and mobilize your IT budgeting team

    2 hours

    1. Download the IT Cost Forecasting and Budgeting Workbook
    2. Organize a meeting with your IT department management team, team leaders, and project managers.
    3. Review their general financial management accountabilities and responsibilities.
    4. Discuss the purpose and context of the budgeting exercise, different budget components, and the organization’s milestones/deadlines.
    5. Identify specific tasks and activities that each member of the team must complete in support of the budgeting exercise.
    6. Set up additional checkpoints, working sessions, or meetings that will take you through to final budget submission.
    7. Document your budget team members, responsibilities, deliverables, and due dates on the “Planning Variables” tab in the IT Cost Forecasting & Budgeting Workbook.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • The organization’s budgeting process and procedures
    • Assignment of IT budgeting team responsibilities
    • A budgeting schedule
    MaterialsParticipants
    • IT Cost Forecasting and Budgeting Workbook
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Leverage the ITFM Cost Model

    Each of the four views breaks down IT costs into a different array of categories so you and your stakeholders can see expenditure in a way that’s meaningful for them.

    You may decide not to use all four views based on your goals, audience, and available time. However, let’s start with how you can use the first two views, the CFO expense view and the CIO service view.

    The image contains a screenshot of the CFO expense view.

    The CFO expense view is fairly traditional – workforce and vendor. However, Info-Tech’s approach breaks down the vendor software and hardware buckets into on-premises and cloud. Making this distinction is increasingly critical given key differences in CapEx vs. OpEx treatment.

    Forecasting this view is mandatory

    These two views provide information that will help you optimize IT costs. They’re designed to allow the CFO and CIO to find a common language that will allow them to collaboratively make decisions about managing IT expenditure effectively.

    The image contains a screenshot of the CIO service view.

    The CIO service view is your view, i.e. it’s how IT tends to organize and manage itself and is often the logical starting point for expenditure planning and analysis. Sub-categories in this view, such as security and data & BI, can also resonate strongly with business stakeholders and their priorities.

    Forecasting this view is recommended

    Extend your dialogue to the business

    Applying the business optimization views of the ITFM Cost Model can bring a level of sophistication to your IT cost analysis and forecasting efforts.

    Some views take a bit more work to map out, but they can be powerful tools for communicating the value of IT to the business. Let’s look at the last two views, the CXO business view and the CEO innovation view.

    The CXO business view looks at IT expenditure business unit by business unit so that each can understand their true consumption of IT resources. This view relies on having a fair and reliable cost allocation formula, such as one based on relative headcount, so it runs the risk of inaccuracy.

    Forecasting this view is recommended

    The image contains a screenshot of the CXO business view.

    These two views provide information that will help you optimize IT support to the business. These views also have a collaborative goal in mind, enabling IT to talk about IT spend in terms that will promote transparency and engage business stakeholders.

    The CEO innovation view is one of the hardest to analyze and forecast since a single spend item may apply to innovation, growth, and keeping the lights on. However, if you have an audience with the CEO and they want IT to play a more strategic or innovative role, then this view is worth mapping.

    Forecasting this view is optional

    The image contains a screenshot of the CEO innovation view.

    2.2 Select the ITFM Cost Model views you plan to complete based on your goals

    30 minutes

    The IT Cost Forecasting and Budgeting Workbook contains standalone sections for each view, as well as rows for each lowest-tier sub-category in a view, so each view can be analyzed and forecasted independently.

    1. Review Info-Tech’s ITFM Cost Model and the expenditure categories and sub-categories each view contains.
    2. Revisit your stakeholder analysis for the budgeting exercise. Plan to:
      1. Complete the CFO expense view regardless.
      2. Complete the CIO service view – consider doing this one first for forecasting purposes as it may be most familiar to you and serve as an easier entry point into the forecasting process.
      3. Complete the CXO business view – consider doing this only for select business units if you have the objective of enhancing awareness of their true consumption of IT resources or if you have (or plan to have) a show-back/chargeback mechanism.
      4. Complete the CEO innovation view only if your data allows it and there’s a compelling reason to discuss the strategic or innovative role of IT in the organization.
    Input Output
    • Stakeholder analysis
    • Info-Tech’s ITFM Cost Model
    • Decision on which views in the ITFM Cost Model you’ll use for historical expenditure analysis and forecasting purposes
    Materials Participants
    • Info-Tech’s ITFM Cost Model
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Gather your budget-building data

    Your data not only forms the content of your budget but also serves as the supporting evidence for the decisions you’ve made.

    Ensure you have the following data and information available to you and your budgeting team before diving in:

    Past data

    • Last fiscal year’s budget.
    • Actuals for the past five fiscal years.
    • Pre-set capital depreciation/amortization amounts to be applied to next fiscal year’s budget.

    Current data

    • Current-year IT positions and salaries.
    • Active vendor contracts with payment schedules and amounts (including active multi-year agreements).
    • Cost projections for remainder of any projects that are committed or in-progress, including projected OpEx for ongoing maintenance and support.

    Future data

    • Estimated market value for any IT positions to be filled next year (both backfill of current vacancies and proposed net-new positions).
    • Pricing data on proposed vendor purchases or contracts.
    • Cost estimates for any capital/strategic projects that are being proposed but not yet committed, including resulting maintenance/support OpEx.
    • Any known pending credits to be received or applied in the next fiscal year.

    If you’re just getting started building a repeatable budgeting process, treat it like any other project, complete with a formal plan/ charter and a central repository for all related data, information, and in-progress and final documents.

    Once you’ve identified a repeatable approach that works for you, transition the budgeting project to a regular operational process complete with policies, procedures, and tools.

    Review last year’s budget vs. actuals

    This is the starting point for building your high-level rationale around what you’re proposing for next fiscal year.

    But first, some quick definitions:

    • Budgeted: What you planned to spend when you started the fiscal year.
    • Actual: What you ended up spending in real life by the end of the fiscal year.
    • Variance: The difference between budgeted expenditure and actual expenditure.

    For last fiscal year, pinpoint the following metrics and information:

    Budgeted and actual IT expenditure overall and by major cost category.

    Categories will include workforce (employees/contractors) and vendors (hardware, software, contracted services) at a minimum.

    Actual IT expenditure as a percentage of organizational revenue.

    This is a widely-used benchmark that your CFO will expect to see.

    The known and likely drivers behind budgeted vs. actual variances.

    Your rationales will affect your perceived credibility. Be straightforward, avoid defending or making excuses, and just show the facts.

    Ask your CFO what they consider acceptable variance thresholds for different cost categories to guide your variance analysis, such as 1% for overall IT expenditure.

    Actual IT CapEx and OpEx.

    CapEx is often more variable than OpEx over time. Separate them so you can see the real trends for each. Consider:

    • Sub-dividing CapEx by strategic projects and non-strategic “business as usual” spend (e.g. laptops, network maintenance gear).
    • Showing overall CapEx and OpEx as percentages of their organization-wide counterparts if that information is available.

    Next, review your five-year historical expenditure trends

    The longer-term pattern of IT expenditure can help you craft a narrative about the overarching story of IT.

    For the previous five fiscal years, focus on the following:

    Actual IT expenditure as a percentage of organizational revenue.

    Again, for historical years 2-5, you can break this down into granular cost categories like workforce, software, and infrastructure like you did for last fiscal year. Avoid getting bogged down and focusing on the past – you ultimately want to redirect stakeholders to the future.

    Percentage expenditure increase/decrease year to year.

    You may choose to show overall IT expenditure amounts, breakdowns by CapEx and OpEx, as well as high-level cost categories.

    As you go back in time, some data may not be available to you, may be unreliable or incomplete, or employ the same cost categories you’re using today. Use your judgement on the level of granularity you want to and can apply when going back two to five years in the past.

    So, what’s the trend? Consider these questions:

    • Is the year-over-year trend on a steady trajectory or are there notable dips and spikes?
    • Are there any one-time capital projects that significantly inflated CapEx and overall spend in a given year or that forced maintenance-and support-oriented OpEx commitments in subsequent years?
    • Does there seem to be an overall change in the CapEx-to-OpEx ratio due to factors like increased use of cloud services, outsourcing, or contract-based staff?

    Take a close look at financial data showcasing the cost-control measures you’ve taken

    Your CFO will look for evidence that you’re gaining efficiencies by controlling costs, which is often a prerequisite for them approving any new funding requests.

    Your objective here is threefold:

    1. Demonstrate IT’s track record of fiscal responsibility and responsiveness to business priorities.
    2. Acknowledge and celebrate your IT-as-cost-center efficiency gains to clear the way for more strategic discussions.
    3. Identify areas where you can potentially source and reallocate recouped funds to bolster other initiatives or business cases for net-new spend.

    This step is about establishing credibility, demonstrating IT value, building trust, and showing the CFO you’re on their team.

    Do the following:

    • List any specific cost-control initiatives and their initial objectives and targets.
    • Identify any changes made to those targets and your approaches due to changing conditions, with rationales for the decisions made. For example:
      • Mid-year, the business decided to allow approximately half the workforce to work from home on a permanent basis.
      • As a result, remote-worker demand on the service desk remained high and actually increased in some areas. You were unable to reduce service desk staff headcount as originally planned.
      • You’re now exploring ways to streamline ticket intake and assignment to increase throughput and speed resolution.
    • Report on completed cost-control initiatives first, including targets, actuals, and related impacts. Include select feedback from business stakeholders and users about the impact of your cost-control measure on them.
    • For in-progress initiatives, report progress made to-date, benefits realized to date, and plans for continuation next fiscal year.

    “Eliminate the things you don’t need. People will give you what you need when you need it if you’re being responsible with what you already have.”

    – Angela Hintz, VP of PMO & Integrated Services,
    Blue Cross and Blue Shield of Louisiana

    2.3 Review your historical IT expenditure

    8 hours

    1. Download the IT Cost Forecasting and Budgeting Workbook.
    2. On Tab 1, “Historical Events & Projects,” note the cost-driving and cost-saving events that occurred last fiscal year that drove any variance between budgeted and actual expenditure. Describe the nature of their impact and current status (ongoing, resolved – temporary impact, or resolved – permanent impact).
    3. Also on Tab 1, “Historical Events & Projects”, summarize the work done on capital or strategic projects, expenditures, and status (in progress, deferred, canceled, or complete).
    4. On Tab 2, “Historical Expenditure”:
      1. Enter the budgeted and actuals data for last fiscal year in columns D-H for the views of the ITFM Cost Model you’re opted to do, i.e. CFO expense view, CIO service view, CXO business view, and CEO innovation view.
      2. Enter a brief rationale for any notable budgeted-versus-actuals variances or other interesting items in column K.
      3. Enter actuals data for the remaining past five fiscal years in columns L-O. Year-over-year comparative metrics will be calculated for you.
      4. Enter FTEs by business function in columns R-AA, rows 34-43.
        Expenditure per FTE and year-over year comparative metrics will be
        calculated for you.
    5. Using Tabs 2, “Historical Expenditure” and 3, “Historical Analysis”, review and analyze the resulting data sets and graphs to identify overall patterns, specifically notable increases or decreases in a particular category of expenditure or where rationales are repeated across categories or views (these are significant).
    6. Finally, flag any data points that help demonstrate achievement of, or progress toward, any cost-control measures you implemented.

    2.3 Review your historical IT expenditure

    InputOutputMaterialsParticipants
    • Budgeted data for the previous fiscal year and actuals data for the previous five fiscal years
    • Mapped budgeted for last fiscal year, mapped actuals for the past five fiscal years, and variance metrics and rationales
    • IT Cost Forecasting and Budgeting Workbook
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Pull historical trends into a present-day context when setting your high-level goals

    What’s happening to your organization and the ecosystem within which it’s operating right now? Review current business concerns, priorities, and strategies.

    Knowing what happened in the past can provide good insights and give you a chance to show stakeholders your money-management track record. However, what stakeholders really care about is “now” and “next”. For them, it’s all about current business context.

    Ask these questions about your current context to assess the relevance of your historical trend data:

    What’s the state of
    the economy and how is
    it affecting your organization?

    What are the
    organization’s stated
    strategic goals and objectives?

    What has the business
    explicitly communicated
    about finance-related targets?

    What’s the business
    executive’s attitude on
    budget increase requests?

    Some industries are very sensitive to economic cycles, causing wild budget fluctuations year to year. This uncertainty can reduce the volume of spend you automatically carry over one year to the next, making past spend patterns less relevant to your current budgeting effort.

    These can change year to year as well, and often manifest on the CapEx side in the form of strategic projects selected. Since this is so variable, using previous years’ CapEx to determine next fiscal’s CapEx isn’t always useful except in regard to multi-year, ongoing capital projects.

    Do your best to honor mandates. However, if cuts are suggested that could jeopardize core service delivery, tread cautiously, and pick your battles. You may be able to halt new capital spend to generate cuts, but these projects may get approved anyway, with IT expected to make cuts to OpEx.

    If the CFO and others rail against even the most necessary inflation-driven increases, you’ll need to take a conservative approach, focus on cost-saving initiatives, and plan to redirect last year’s expenditures instead of pursuing net-new spend.

    Set metrics and targets for some broader budget effectiveness improvement efforts

    Budget goalsetting isn’t limited to CapEx and OpEx targets. There are several effectiveness metrics to track overall improvement in your budgeting process.

    Step back and think about other budget and expenditure goals you have.
    Do you want to:

    • Better align the budget with organizational objectives?
    • Increase cost forecasting accuracy?
    • Increase budget transparency and completeness?
    • Improve the effectiveness of your budget presentation?
    • Reduce the amount of budget rework?
    • Increase the percentage of the budget that’s approved?
    • Reduce variance between what was budgeted and actuals?

    Establish appropriate metrics and targets that will allow you to define success, track progress, and communicate achievement on these higher-level goals.

    Check out some example metrics in the table below.

    Budgeting metric

    Improvement driver

    Current value

    Future target

    Percentage of spend directly tied to an organizational goal.

    Better alignment via increased communication and partnership with the business.

    72%

    90%

    Number of changes to budget prior to final acceptance.

    Better accuracy and transparency via use of zero-based budgeting and enhanced stakeholder views.

    8

    2

    Percentage variance between budgeted vs. actuals.

    Improved forecasting through better understanding of business plans and in-cycle show-back.

    +4%

    +/-2%

    Percentage of budget approved after first presentation.

    Improved business rationales and direct mapping of expenditure to org priorities.

    76%

    95%

    Percentage of IT-driven project budget approved.

    More rigor around benefits, ROI calculation, and quantifying value delivered.

    80%

    100%

    Set your high-level OpEx budget targets

    The high-level targets you set now don’t need to be perfect. Think of them as reference points or guardrails to sanity-check the cost forecasting exercise to come.

    First things first: Zero-based or incremental for OpEx?

    Set your OpEx targets

    Incremental budgeting is the addition of a few percentage onto next year’s budget, assuming the previous year’s OpEx is all re-occurring. The percentage often aligns with rates of inflation.

    • Most organizations take this approach because it’s faster and easier.
    • However, incremental budgeting is less accurate. Non-recurring items are often overlooked and get included in the forecast, resulting in budget bloat. Also, redundant or wasteful items can be entirely missed, undermining any cost optimization efforts.

    Zero-based budgeting involves rebuilding your budget from scratch, i.e. zero. It doesn’t assume that any of last year’s costs are recurring or consistent year to year.

    • This approach is harder because all relevant historical spend data needs to be collected and reviewed, which not only takes time but the data you need may be unlocatable.
    • Every item needs to be re-examined, re-justified, and tied to an asset, service, or project, which means it’s a far more comprehensive and accurate approach.

    Pick a range of percentage change based on your business context and past spend.

    • If economic prospects are negative, start with a 0-3% increase to balance inflation with potential cuts. Don’t set concrete reduction targets at this point, to avoid tunnel vision in the forecasting exercise.
    • If economic prospects are positive, target 3-5% increases for stable scenarios and 6-10% increases for growth scenarios.
    • If CapEx from previous-year projects is switching to steady-state OpEx, then account for these bumps in OpEx.
    • If the benefits from any previous-year efficiency measures will be realized next fiscal year, then account for these as OpEx reductions.

    If cost-cutting or optimization is a priority, then a zero-based approach is the right decision. If doing this every year is too onerous, plan to do it for your OpEx at least every few years to examine what’s actually in there, clean house, and re-set.

    Set your high-level CapEx budget targets

    A lot of IT CapEx is conceived in business projects, so your proposed expenditure here may not be up to you. Exercise as much influence as you can.

    First things first: Is it project CapEx, or “business as usual” CapEx?

    Project CapEx is tied to one-time strategic projects requiring investment in new assets.

    • This CapEx will probably be variable year to year, going up or down depending on the organization’s circumstances or goals.
    • This area of spend is driven largely by the business and not IT. Plan to set project CapEx targets in close partnership with the business and function as a steward of these funds instead of as an owner.

    User-driven “business as usual” CapEx manifests via changes (often increases) in organizational headcount due to growth.

    • Costs here focus on end-user hardware like desktops, laptops, and peripherals.
    • Any new capital software acquisitions you have planned will also be affected in terms of number of licenses required.
    • Get reliable estimates of department-by-department hiring plans for next fiscal year to better account for these in your budget.

    Network/data center-driven “business-as-usual” CapEx is about core infrastructure maintenance.

    • Costs here focus on the purchase of network and data center hardware and other equipment to maintain existing infrastructure services and performance.
    • Increased outsourcing often drives down this area of “business as usual” CapEx by reducing the purchase of new on-premises solutions and eliminating network and data center maintenance requirements.

    Unanticipated hiring and the need to buy end-user hardware is cited as a top cause of budget grief by IT leaders – get ahead of this. Project CapEx, however, is usually determined via business-based capital project approval mechanisms well in advance. And don’t forget to factor in pre-established capital asset depreciation amounts generated by all the above!

    2.4 Set your high-level IT budget targets and metrics

    8 hours

    1. Download the IT Cost Forecasting and Budgeting Workbook to document the outcomes of this activity.
    2. Review the context in which your organization is currently operating and expects to operate in the next fiscal year. Specifically, look at:
      1. The state of the economy.
      2. Stated goals, objectives, and targets.
      3. The executive’s point of view on budget increase requests.
      Document your factors, assessment, rationale, and considerations in the “Business Context Assessment” table on the “Planning Variables” tab in the IT Cost Forecasting and Budgeting Workbook.
    3. Based on the business context, anticipated flips of former CapEx to OpEx, and realization of previous years’ efficiency measures, set a general non-project OpEx target as a percentage increase or decrease for next fiscal year to serve as a guideline in the cost forecasting guideline. Document this in the “Budget Targets & Metrics” table on the “Planning Variables” tab in the IT Cost Forecasting and Budgeting Workbook. sed on known capital projects, changes in headcount, typical “business as usual” equipment expenditure, and pre-established capital asset depreciation amounts, set general project CapEx and non-project CapEx targets. Document these in the “Budget Targets & Metrics” table on the “Planning Variables” tab in the IT Cost Forecasting and Budgeting Workbook.
    4. Finally, set your overarching IT budget process success metrics. Also document these in the “Budget Targets & Metrics” table on the “Planning Variables” tab in the IT Cost Forecasting and Budgeting Workbook.

    Download the IT Cost Forecasting and Budgeting Workbook

    2.4 Set your high-level IT budget targets and metrics

    InputOutputMaterialsParticipants
    • Knowledge of current business context and probable context next fiscal year
    • Analysis of historical IT expenditure patterns
    • High-level project CapEx and non-project CapEx and OpEx targets for the next fiscal year
    • IT budget process success metrics
    • IT Cost Forecasting and Budgeting Workbook
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Phase recap: Get into budget-starting position

    Now you’re ready to do the deep dive into forecasting your IT budget for next year.

    In this phase, you clarified your business context and defined your budgetary goals, including:

    • Assembling your resources. You’ve built and organized your IT budgeting team, as well as gathered the data and information you’ll need to do your historical expenditure analysis and future forecasting
    • Understanding the four views of the IT Cost Model. You’ve become familiar with the four views of the model and have selected which ones you’ll map for historical analysis and forecasting purposes.
    • Reviewing last year’s budget versus actuals and five-year historical trends. You now have the critical rationale-building context to inform next year’s numbers and demonstrate any cost efficiencies you’ve successfully executed.
    • Setting your high-level goals. You’ve established high-level targets for project and non-project CapEx and OpEx, as well as set some IT budget process improvement goals.

    “We only have one dollar but five things. Help us understand how to spend that dollar.”

    – Trisha Goya, Director, IT Governance & Administration, Hawaii Medical Service Association

    Phase 3

    Develop Your Forecasts

    Lay Your
    Foundation

    Get Into Budget-Starting Position

    Develop Your
    Forecasts

    Build Your
    Proposed Budget

    Create and Deliver Your Presentation

    1.1 Understand what your budget is
    and does

    1.2 Know your stakeholders

    1.3 Continuously pre-sell your budget

    2.1 Assemble your resources

    2.2 Understand the four views of the ITFM Cost Model

    2.3 Review last year’s budget vs.
    actuals and five-year historical trends

    2.4 Set your high-level goals

    3.1 Develop assumptions and
    alternative scenarios

    3.2 Forecast your project CapEx

    3.3 Forecast your non-project CapEx and OpEx

    4.1 Aggregate your numbers

    4.2 Stress test your forecasts

    4.3 Challenge and perfect your
    rationales

    5.1 Plan your content

    5.2 Build your presentation

    5.3 Present to stakeholders

    5.4 Make final adjustments and submit your IT budget

    This phase will walk you through the following activities:

    • Documenting the assumptions behind your proposed budget and develop alternative scenarios.
    • Forecasting your project CapEx.
    • Forecasting your non-project CapEx and OpEx.

    This phase involves the following participants:

    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Develop your forecasts

    Start making some decisions.

    This phase focuses on putting real numbers on paper based on the research and data you’ve collected. Here, you will:

    • Develop assumptions and alternative scenarios. The assumptions you make are the logical foundation for your decisions, and your primary and alternative scenarios focus your thinking and demonstrate that you’ve thoroughly examined your organization’s current and future context.
    • Forecast your project CapEx costs. These costs are comprised of all the project-related capital expenditures for strategic or capital projects, including in-house labor.
    • Forecast your non-project CapEx and OpEx costs. These costs are the ongoing “business as usual” expenditures incurred via the day-to-day operations of IT and delivery of IT services.

    “Our April forecast is what really sets the bar for what our increase is going to be next fiscal year. We realized that we couldn’t change it later, so we needed to do more upfront to get that forecast right.

    If we know that IT projects have been delayed, if we know we pulled some things forward, if we know that a project isn’t starting until next year, let’s be really clear on those things so that we’re starting from a better forecast because that’s the basis of deciding two percent, three percent, whatever it’s going to be.”

    – Kristen Thurber, IT Director, Office of the CIO, Donaldson Company

    When pinning down assumptions, start with negotiable and non-negotiable constraints

    Assumptions are things you hold to be true. They may not actually be true, but they are your logical foundation and must be shared with stakeholders so they can follow your thinking.

    Start with understanding your constraints. These are either negotiable (adjustable) or non-negotiable (non-adjustable). However, what is non-negotiable for IT may be negotiable for the organization as a whole, such as its strategic objectives. Consider each of the constraints below, determine how it relates to IT expenditure options, and decide if it’s ultimately negotiable or non-negotiable.

    Organizational

    Legal and Regulatory

    IT/Other

    Example:
    • Strategic goals and priorities
    • Financial and market performance
    • Governance style and methods
    • Organizational policies
    • Organizational culture
    • Regulatory compliance and reporting
    • Data residency and privacy laws
    • Vendor contract terms and conditions
    • Health and safety
    • Compensation and collective bargaining
    • IT funding and fund allocation flexibility
    • Staff/skills availability and capacity
    • Business continuity and IT performance requirements
    • Time and timeframes
    You’re in year one of a three-year vendor contract. All contracts are negotiable, but this one isn’t for two years. This contact should be considered a non-negotiable for current budget-planning purposes.

    Identifying your negotiable and non-negotiable constraints is about knowing what levers you can pull. Government entities have more non-negotiable constraints than private companies, which means IT and the organization as a whole have fewer budgetary levers to pull and a lot less flexibility.

    An un-pullable lever and a pullable lever (and how much you can pull it) have one important thing in common – they are all fundamental assumptions that influence your decisions.

    Brainstorm your assumptions even further

    The tricky thing about assumptions is that they’re taken for granted – you don’t always realize you’ve made them. Consider these common assumptions and test them for validity.

    My current employees will still be here 18 months from now.

    My current vendors aren’t going to discontinue the products we have.

    My organization’s executive team will be the same 18 months from now. My current key vendors will be around for years to come.

    My organization’s departments, divisions, and general structure will be the same 18 months from now.

    IT has to be an innovation leader.

    We won’t be involved in any merger/acquisition activity next fiscal year.

    IT has always played the same role here and that won’t change.

    There won’t be a major natural disaster that takes us offline for days or even weeks.

    We must move everything we can to the cloud.

    We won’t be launching any new products or services next fiscal year.

    Most of our IT expenditure has to be CapEx, as usual.

    You won’t put some of these assumptions into your final budget presentation. It’s simply worthwhile knowing what they are so you can challenge them when forecasting.

    Based on your assumptions, define the primary scenario that will frame your budget

    Your primary scenario is the one you believe is most likely to happen and upon which you’ll build your IT cost forecasts.

    Now it’s time to outline your primary scenario.

    • A scenario is created by identifying the variable factors embedded in your assumptions and manipulating them across the range of possibilities. This manipulation of variables will result in different scenarios, some more likely or feasible than others.
    • Your primary scenario is the one you believe is the most feasible and/or likely to happen (i.e. most probable). This is based on:
      • Your understanding of past events and patterns.
      • Your understanding of your organization’s current context.
      • Your understanding of IT’s current context.
      • Your understanding of the organization’s objectives.
      • Your assessment of negotiable and non-negotiable constraints and other assumptions for both IT and the organization.

    A note on probability…

    • A non-negotiable constraint doesn’t have any variables to manipulate. It’s a 100% probability that must be rigidly accommodated and protected in your scenario. An example is a long-standing industry regulation that shows no signs of being updated or altered and must be complied with in its current state.
    • A negotiable constraint has many more variables in play. Your goal is to identify the different potential values of the variables and determine the degree of probability that one value is more likely to be true or feasible than another. An example is that you’re directed to cut costs, but the amount could be as little as 3% or as much as 20%.
    • And then there are the unknowns. These are circumstances, events, or initiatives that inevitably happen, but you can’t predict when, what, or how much. This is what contingency planning and insurance are for. Examples include a natural disaster, a pandemic, a supply chain crisis, or the CEO simply changing their mind. Its safe to assume something is going to happen, so if you’re able to establish a contingency fund or mechanisms that let you respond, then do it.

    What could or will be your organization’s new current state at the end of next fiscal year?

    Next, explore alternative scenarios, even those that may seem a bit outrageous

    Offering alternatives demonstrates that you weighed all the pertinent factors and that you’ve thought broadly about the organization’s future and how best to support it.

    Primary scenario approval can be helped by putting that scenario alongside alternatives that are less attractive due to their cost, priority, or feasibility. Alternative scenarios are created by manipulating or eliminating your negotiable constraints or treating specific unknowns as knowns. Here are some common alternative scenarios.

    The high-cost scenario: Assumes very positive economic prospects. Characterized by more of everything – people and skills, new or more sophisticated technologies, projects, growth, and innovation. Remember to consider the long-term impact on OpEx that higher capital spend may bring in subsequent years.

    Target 10-20% more expenditure than your primary scenario

    The low-cost scenario: Assumes negative economic prospects or cost-control objectives. Characterized by less of everything, specifically capital project investment, other CapEx, and OpEx. Must assume that business service-level expectations will be down-graded and other sacrifices will be made.

    Target 5-15% less expenditure than your primary scenario

    The dark horse scenario: This is a more radical proposition that challenges the status quo. For example, what would the budget look like if all data specialists in the organization were centralized under IT? What if IT ran the corporate PMO? What if the entire IT function was 100% outsourced?

    No specific target

    Case Study

    INDUSTRY: Manufacturing

    SOURCE: Anonymous

    A manufacturing IT Director gets budgetary approval by showing what the business would have to sacrifice to get the cheap option.

    Challenge

    Solution

    Results

    A manufacturing business had been cutting costs endlessly across the organization, but specifically in IT.

    IT was down to the bone. The IT Director had already been doing zero-based budgeting to rationalize all expenditure, stretching asset lifecycles as long as possible, and letting maintenance work slide.

    There were no obvious options left to reduce costs based on what the business wanted to do.

    The IT Director got creative. He put together three complete budgets:

    1. The budget he wanted.
    2. A budget where everything was entirely outsourced and there would be zero in-house IT staff.
    3. A budget that was not as extreme as the second one, but still tilted toward outsourcing.

    In the budget presentation, he led with the “super cheap” budget where IT was 100% outsourced.

    He proceeded to review the things they wouldn’t have under the extreme outsourced scenario, including the losses in service levels that would be necessary to make it happen.

    The executive was shocked by what the IT Director showed them.

    The executive immediately approved the IT Director’s preferred budget. He was able to defend the best budget for the business by showing them what they stood to lose.

    3.1 Document your assumptions and alternative scenarios

    2 hours

    1. Download the IT Cost Forecasting and Budgeting Workbook and document the outcomes of this activity on Tab 9, “Alternative Scenarios.”
    2. As a management team, identify and discuss your non-negotiable and negotiable constraints. Document these in rows 4 and 5 respectively in the Workbook.
    3. Brainstorm, list, and challenge any other assumptions being made by IT or the organization’s executive in terms of what can and cannot be done.
    4. Identify the most likely or feasible scenario (primary) and associated assumptions. You will base your initial forecasting on this scenario.
    5. Identify alternative scenarios. Document each scenario’s name, description, and key assumptions, and major opportunities in columns B-D on Tab 9, “Alternative Scenarios.” You will do any calculations for these scenarios after you have completed the forecast for your primary scenario.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • Knowledge of organization’s context, culture, and operations
    • A list of assumptions that will form the logical foundation of your forecasting decisions
    • Identification of the primary budget scenario and alternatives
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Before diving into actual forecasting, get clear on project and non-project CapEx and OpEx

    Traditional, binary “CapEx vs. OpEx” distinctions don’t seem adequate for showing where expenditure is really going. We’ve added a new facet to help further differentiate one-time project costs from recurring “business as usual” expenses.

    Project CapEx
    Includes all workforce and vendor costs associated with planning and execution of projects largely focused on the acquisition or creation of new capital assets.

    Non-project CapEx
    Includes “business as usual” capital asset acquisition in the interest of managing, maintaining, or supporting ongoing performance of existing infrastructure or services, such as replacement network equipment, end-user hardware (e.g. laptops), or disaster recovery/business continuity redundancies. Also includes ongoing asset depreciation amounts.

    Non-project OpEx
    Includes all recurring, non-CapEx “business as usual” costs such as labor compensation and training, cloud-based software fees, outsourcing costs, managed services fees, subscriptions, and other discretionary spend.

    Depreciation is technically CapEx. However, for practical purposes, most organizations list it under OpEx, which can cause it to get lost in the noise. Here, depreciation is under non-project CapEx to keep its true CapEx nature visible and in the company of other “business as usual” capital purchases that will ultimately join the depreciation ranks.

    Forecast your project CapEx costs

    This process can be simple as far as overall budget forecasting is concerned. If it isn’t simple now, plan to make it simpler next time around.

    What to expect…

    • Ideally, the costs for all projects should have been thoroughly estimated, reviewed, and accepted by a steering committee, your CFO, or other approving entity at the start of the budgeting season, and funding already committed to. In a nutshell, forecasting your project costs should already have been done and will only require plugging in those numbers.
    • If projects have yet to be pitched and rubber stamped, know that your work is cut out for you. Doing things in a rush or without proper due diligence will result in certain costs being missed. This means that you risk going far over budget in terms of actuals next year, or having to borrow from other areas in your budget to cover unplanned or underestimated project costs.

    Key forecasting principles…

    Develop rigorous business cases
    Secure funding approval well in advance
    Tie back costs benefitting business units
    Consider the longer-term OpEx impact

    For more information about putting together sound business cases for different projects and circumstances, see the following Info-Tech blueprints:

    Build a Comprehensive Business Case

    Fund Innovation with a Minimum Viable Business Case

    Reduce Time to Consensus with an Accelerated Business Case

    Apply these project CapEx forecasting tips

    A good project CapEx forecast requires steady legwork, not last-minute fast thinking.

    Tip #1: Don’t surprise your approvers. Springing a capital project on approvers at your formal presentation isn’t a good idea and stands a good chance of rejection, so do whatever you can to lock these costs down well in advance.

    Tip #2: Project costs should be entirely comprised of CapEx if possible. Keep in mind that some of these costs will convert to depreciated non-project CapEx and non-project OpEx as they transition from project costs to ongoing “business as usual” costs, usually in the fiscal year following the year of expenditure. Creating projections for the longer-term impacts of these project CapEx costs on future types of expenditure is a good idea. Remember that a one-time project is not the same thing as a one-time cost.

    Tip #3: Capitalize any employee labor costs on capital projects. This ensures the true costs of projects are not underestimated and that operational staff aren’t being used for free at the expense of their regular duties.

    Tip #4: Capitalizing cloud costs in year one of a formal implementation project is usually acceptable. It’s possible to continue treating cloud costs as CapEx with some vendors via something called reserved instances, but organizations report that this is a lot of work to set up. In the end, most capitalized cloud will convert into non-project OpEx in years two and beyond.

    Tip #5: Build in some leeway. By the time a project is initiated, circumstances may have changed dramatically from when it was first pitched and approved, including business priorities and needs, vendor pricing, and skillset availability. Your costing may become completely out of date. It’s a good practice to work within more general cost ranges than with specific numbers, to give you the flexibility to respond and adapt during actual execution.

    3.2 Forecast your project CapEx

    Time: Depends on size of project portfolio

    1. Download the IT Cost Forecasting and Budgeting Workbook and navigate to Tab 5, “Project CapEx Forecast”. Add more columns as required. Enter the following for all projects:
      • Row 5 – Its name and/or unique identifier.
      • Row 6 – Its known or estimated project start/end dates.
      • Row 7 – Its status (in proposal, committed, or in progress).
    2. Distribute each project’s costs across the categories listed for each view you’ve selected to map. Do not include any OpEx here – it will be mapped separately under non-project OpEx.
    3. Rationalize your values. A running per-project total for each view, as well as totals for all projects combined, are in rows 16, 28, 39, and 43. Ensure these totals match or are very close across all the views you are mapping. If they don’t match, review the views that are lower-end outliers as there’s a good chance something has been overlooked.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • Project proposals and plans, including cost estimations
    • A project CapEx forecast for next fiscal year
    MaterialsParticipants
    • IT Cost Forecasting and Budgeting Workbook
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Forecast your non-project OpEx

    Most of your budget will be non-project OpEx, so plan to spend most of your forecasting effort here.

    What to expect…

    Central to the definition of OpEx is the fact that it’s ongoing. It rarely stops, and tends to steadily increase over time due to factors like inflation, rising vendor prices, growing organizational growth, increases in the salary expectations of employees, and other factors.

    The only certain ways to reduce OpEx are to convert it to capitalizable expenditure, decrease staffing costs, not pursue cloud technologies, or for the organization to simply not grow. For most organizations, none of these approaches are feasible. Smaller scale efficiencies and optimizations can keep OpEx from running amok, but they won’t change its overall upward trajectory over time. Expect it to increase.

    Key forecasting principles…

    Focus on optimization and efficiency.
    Aim for full spend transparency.
    Think about appropriate chargeback options.
    Give it the time it deserves.

    For more information about how to make the most out of your IT OpEx, see the following Info-Tech blueprints:

    Develop Your Cost Optimization Roadmap

    Achieve IT Spend & Staffing Transparency

    Discover the Hidden Costs of Outsourcing

    Apply these non-project OpEx forecasting tips

    A good forecast is in the details, so take a very close look to see what’s really there.

    Tip #1: Consider zero-based budgeting. You don’t have to do this every year, but re-rationalizing your OpEx every few years, or a just a segment of it on a rotational basis, will not only help you readily justify the expenditure but also find waste and inefficiencies you didn’t know existed.

    Tip #2: Capitalize your employee capital project work. While some organizations aren’t allowed to do this, others who can simply don’t bother. Unfortunately, this act can bloat the OpEx side of the equation substantially. Many regular employees spend a significant amount of their time working on capital projects, but this fact is invisible to the business. This is why the business keeps asking why it takes so many people to run IT.

    Tip #3: Break out your cloud vs. on-premises costs. Burying cloud apps costs in a generic software bucket works against any transparency ambitions you may have. If you have anything resembling a cloud strategy, you need to track, report, and plan for these costs separately in order to measure benefits realization. This goes for cloud infrastructure costs, too.

    Tip #4: Spend time on your CIO service view forecast. Completing this view counts as a first step toward service-based costing and is a good starting point for setting up an accurate service catalog. If looking for cost reductions, you’ll want to examine your forecasts in this view as there will likely be service-level reductions you’ll need to propose to hit your cost-cutting goals.

    Tip #5: Budget with consideration for chargeback. chargeback mechanisms for OpEx can be challenging to manage and have political repercussions, but they do shift accountability back to the business, guarantee that the IT bills get paid, and reduce IT’s OpEx burden. Selectively charging business units for applications that only they use may be a good entry point into chargeback. It may also be as far as you want to go with it. Doing the CXO business view forecast will provide insight into your opportunities here.

    Forecast your non-project CapEx

    These costs are often the smallest percentage of overall expenditure but one of the biggest sources of financial grief for IT.

    What to expect…

    • These costs can be hard to predict. Anticipating expenditure on end-user hardware such as laptops depends on knowing how many new staff will be hired by the organization next year. Predicting the need to buy networking hardware depends on knowing if, and when, a critical piece of equipment is going to spontaneously fail. You can never be completely sure.
    • IT often must reallocate funds from other areas of its budget to cover non-project CapEx costs. Unfortunately, keeping the network running and ensuring employees have access to that network is seen exclusively as an IT problem, not a business problem. Plan to change this mindset.

    Key forecasting principles…

    Discuss hiring plans with the business.
    Pay close attention to your asset lifecycles.
    Prepare to advise about depreciation schedules.
    Build in contingency for the unexpected.

    For more information about ensuring IT isn’t left in the lurch when it comes to non-project CapEx, see the following Info-Tech blueprints:

    Manage End-User Devices

    Develop an Availability and Capacity Management Plan

    Modernize the Network

    Apply these non-project CapEx forecasting tips

    A good forecast relies on your ability to accurately predict the future.

    Tip #1: Top up new hire estimations: Talk to every business unit leader about their concrete hiring plans, not their aspirations. Get a number, increase that number by 25% or 20 FTEs (whichever is less), and use this new number to calculate your end-user non-project CapEx.

    Tip #2: Make an arrangement for who’s paying for operational technology (OT) devices and equipment. OT involves specialized devices such as in-the-field sensors, scanners, meters, and other networkable equipment. Historically, operational units have handled this themselves, but this has created security problems and they still rely on IT for support. Sort the financials out now, including whose budget device and equipment purchases appear on, as well as what accommodations IT will need to make in its own budget to support them.

    Tip #3: Evaluate cloud infrastructure and managed services. These can dramatically reduce your non-project CapEx, particularly on the network and data center fronts. However, these solutions aren’t necessarily less expensive and will drive up OpEx, so tread cautiously.

    Tip #4: Definitely do an inventory. If you haven’t invested in IT asset management, put it on your project and budgetary agenda. You can’t manage what you don’t know you have, so asset discovery should be your first order of business. From there, start gathering asset lifecycle information and build in alerting to aid your spend planning.

    Tip #5: Think about retirement: What assets are nearing end of life or the end of their depreciation schedule? What impact is this having on non-project OpEx in terms of maintenance and support? Deciding to retire, replace, or extend an IT operational asset will change your non-project CapEx outlook and will affect costs in other areas.

    Tip #6: Create a contingency fund: You need one to deal with surprises and emergencies, so why wait?

    Document the organization’s projected FTEs by business function

    This data point is usually missing from IT’s budget forecasting data set. Try to get it.

    A powerful metric to share with business stakeholders is expenditure per employee or FTE. It’s powerful because:

    • It’s one of the few metrics that’s intuitively understood by most people
    • It can show changes in IT expenditure over time at both granular and general levels.

    This metric is one of the simplest to calculate. The challenge is in getting your hands on the data in the first place.

    • Most business unit leaders struggle to pin down this number in terms of actuals as they have difficulty determining what an FTE actually is. Does it include contract staff? Part-time staff? Seasonal workers? Volunteers and interns? And if the business unit has high turnover, this number can fluctuate significantly.
    • Encourage your business peers to produce a rational estimate. Unlike the headcount number you’re seeking to forecast for non-project capital expenditure for end-user hardware, this FTE number should strive to be more in the ballpark, as you’re not using it to ensure sufficient funds but comparatively track expenditure year to year.
    • Depending on your industry, employees or FTEs may not be the best measurement. Use what works best for you. Number of unique users is a common one. Other industry-specific examples include per student, per bed, per patient, per account, and per resident.

    Start to build in long-term and short-term forecasting into your budgeting process

    These are growing practices in mature IT organizations that afford significant flexibility.

    Short-term forecasting:

    Long-term forecasting:

    • At Donaldson Company, budgeting is a once-a-year event, but they’ve started formalizing a forecast review three times a year.
    • These mini-forecasts are not as full blown as the annual forecasting process. Rather, they look at specific parts of the budget and update it based on changing realities.

    “It’s a great step in the right direction. We look at
    the current, and then the future. What we’re really pushing is how to keep that outyear spend more in discussion. The biggest thing we’re trying to do when we approve projects is look at what does that approval do to outyear spend? Is it going to increase? Is it going to decrease? Will we be spending more on licensing? On people?”

    – Kristen Thurber, IT Director, Office of the CIO,
    Donaldson Company

    • In 2017, the Hawaii Medical Service Association accepted the fact that they were very challenged with legacy systems. They needed to modernize.
    • They created a multi-year strategic budget -- a five-year investment plan. This plan was a success. They were able to gain approval for a five-year horizon with variable allocations per year, as required.

    “This approach was much better. We now
    have a “guarantee” of funding for five years now – they’ve conceptually agreed. Now we don’t have
    to make that request for new money every time
    if we need more. We can vary the amount every
    year – it doesn’t have to be the same.”

    – Trisha Goya, Director, IT Governance & Administration,
    Hawaii Medical Service Association

    3.4 Forecast your non-project OpEx and CapEx

    Time: Depends on size of vendor portfolio and workforce

    1. Download the IT Cost Forecasting and Budgeting Workbook and navigate to Tab 4, “Business as Usual Forecast”. This tab assumes an incremental budgeting approach. Last year’s actuals have been carried forward for you to build upon.
    2. Enter expected percentage-based cost increases/decreases for next fiscal year for each of the following variables (columns E-I): inflation, vendor pricing, labor costs, service levels, and depreciation. Do this for all sub-categories for the ITFM cost model views you’ve opted to map. Provide rationales for your percentage values in column K.
    3. In columns M and N, enter the anticipated percentage allocation of cost to non-project CapEx versus non-project OpEx.
    4. In column O, rows 29-38, enter the projected FTEs for each business function (if available).
    5. If you choose, make longer-term, high-level forecasts for 2-3 years in the future in columns P-U. Performing longer-term forecasts for at least the CFO expense view categories is recommended.

    Download the IT Cost Forecasting and Budgeting Workbook

    Input Output
    • Last fiscal year’s actuals
    • Knowledge of likely inflation, vendor cost, and salary expectations for next fiscal year
    • Depreciation amounts
    • A non-project OpEx and CapEx forecast for next fiscal year
    Materials Participants
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Case Study

    INDUSTRY: Insurance

    SOURCE: Anonymous

    Challenge

    Solution

    Results

    In his first run at the annual budgeting process, a new CIO received delivery dates from Finance and spent the next three months building the budget for the next fiscal year.

    He discovered that the organization had been underinvesting in IT for a long time. There were platforms without support, no accounting for currency exchange rates on purchases, components that had not be upgraded in 16 years, big cybersecurity risks, and 20 critical incidences a month.

    In his budget, the CIO requested a 22-24% increase in IT expenditure to deal with the critical gaps, and provided a detailed defense of his proposal

    But the new CIO’s team and Finance were frustrated with him. He asked his IT finance leader why. She said she didn’t understand what his direction was and why the budgeting process was taking so long – his predecessor did the budget in only two days. He would add up the contracts, add 10% for inflation, and that’s it.

    Simply put, the organization hadn’t taken budgeting seriously. By doing it right, the new CIO had inadvertently challenged the status quo.

    The CIO ended up under-executing his first budget by 12% but is tracking closer to plan this year. Significantly, he’s been able cut critical incidences from 20 down to only 2-3 per month.

    Some friction persists with the CFO, who sees him as a “big spender,” but he believes that this friction has forced him to be even better.

    Phase recap: Develop your forecasts

    The hard math is done. Now it’s time to step back and craft your final proposed budget and its key messages.

    This phase focused on developing your forecasts and proposed budget for next fiscal year. It included:

    • Developing assumptions and alternative scenarios. These will showcase your understanding of business context as well as what’s most likely to happen (or should happen) next year.
    • Forecasting your project CapEx costs. If these costs weren’t laid out already in formal, approved project proposals or plans, now you know why it’s the better approach for developing a budget.
    • Forecasting your non-project CapEx and OpEx costs. Now you should have more clarity and transparency concerning where these costs are going and exactly why they need to go there.

    “Ninety percent of your projects will get started but a good 10% will never get off the ground because of capacity or the business changes their mind or other priorities are thrown in. There are always these sorts of challenges that come up.”

    – Theresa Hughes, Executive Counselor,
    Info-Tech Research Group
    and Former IT Executive

    Phase 4

    Build Your Proposed Budget

    Lay Your
    Foundation

    Get Into Budget-Starting Position

    Develop Your
    Forecasts

    Build Your
    Proposed Budget

    Create and Deliver Your Presentation

    1.1 Understand what your budget is
    and does

    1.2 Know your stakeholders

    1.3 Continuously pre-sell your budget

    2.1 Assemble your resources

    2.2 Understand the four views of the ITFM Cost Model

    2.3 Review last year’s budget vs.
    actuals and five-year historical trends

    2.4 Set your high-level goals

    3.1 Develop assumptions and
    alternative scenarios

    3.2 Forecast your project CapEx

    3.3 Forecast your non-project CapEx and OpEx

    4.1 Aggregate your numbers

    4.2 Stress test your forecasts

    4.3 Challenge and perfect your
    rationales

    5.1 Plan your content

    5.2 Build your presentation

    5.3 Present to stakeholders

    5.4 Make final adjustments and submit your IT budget

    This phase will walk you through the following activities:

    • Pulling your forecasts together into a comprehensive IT budget for next fiscal year.
    • Double checking your forecasts to ensure they’re accurate.
    • Fine tuning the rationales behind your proposals.

    This phase involves the following participants:

    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Build your proposed budget

    Triple check your numbers and put the finishing touches on your approval-winning rationales.

    This phase is where your analysis and decision making finally come together into a coherent budget proposal. Key steps include:

    • Aggregating your numbers. This step involves pulling together your project CapEx, non-project CapEx, and non-project OpEx forecasts into a comprehensive whole and sanity-checking your expenditure-type ratios.
    • Stress-testing your forecasts. Do some detailed checks to ensure everything’s accounted for and you haven’t overlooked any significant information or factors that could affect your forecasted costs.
    • Challenging and perfecting your rationales. Your ability to present hard evidence and rational explanations in support of your proposed budget is often the difference between a yes or a no. Look at your proposals from different stakeholder perspectives and ask yourself, “Would I say yes to this if I were them?”

    “We don’t buy servers and licenses because we want to. We buy them because we have to. IT doesn’t need those servers out at our data center provider, network connections, et cetera. Only a fraction of these costs are to support us in the IT department. IT doesn’t have control over these costs because we’re not the consumers.”

    – Matt Johnson, IT Director Governance and Business Solutions, Milwaukee County

    Great rationales do more than set you up for streamlined budgetary approval

    Rationales build credibility and trust in your business capabilities. They can also help stop the same conversations happening year after year.

    Any item in your proposed budget can send you down a rabbit hole if not thoroughly defensible.

    You probably won’t need to defend every item, but it’s best to be prepared to do so. Ask yourself:

    • What areas of spend does the CFO come back to year after year? Is it some aspect of OpEx, such as workforce costs or cloud software fees? Is it the relationship between proposed project spend and business benefits? Provide detailed and transparent rationales for these items to start re-directing long-term conversations to more strategic issues.
    • What areas of spend seem to be recurring points of conflict with business unit leaders? Is it surprise spend that comes from business decisions that didn’t include IT? Is it business-unit leaders railing against chargeback? Have frank, information-sharing conversations focused on business applications, service-level requirements, and true IT costs to support them.
    • What’s on the CEO’s mind? Are they focused on entering a new overseas market, which will require capital investment? Are they interested in the potential of a new technology because competitors are adopting it? It may not be the same focus as last year, so ensure you have fresh rationales that show how IT will help deliver on these business goals.

    “Budgets get out of control when one department fails to care for the implications of change within another department's budget. This wastes time, reduces accuracy and causes conflict.”

    – Tara Kinney, Atomic Revenue, LLC.

    Rationalizing costs depends on the intention of the spend

    Not all spending serves the same purpose. Some types require deeper or different justifications than others.

    For the business, there are two main purposes for spend:

    1. Spending that drives revenues or the customer experience. Think in terms of return on investment (ROI), i.e. when will the expenditure pay for itself via the revenue gains it helps create?
    2. Spending that mitigates and manages risk. Think in terms of cost-benefit, i.e. what are the costs of doing something versus doing nothing at all?
    Source: Kris Blackmon, NetSuite Brainyard.

    “Approval came down to ROI and the ability to show benefits realization for years one, two, and three through five.”

    – Duane Cooney, Executive Counselor, Info-Tech Research Group, and Former Healthcare CIO

    Regardless of its ultimate purpose, all expenditure needs statements of assumptions, obstacles, and likelihood of goals being realized behind it.

    • What are the assumptions that went into the calculation?
    • Is the spend new or a reallocation (and from where)?
    • What’s the likelihood of realizing returns or benefits?
    • What are potential obstacles to realizing returns or benefits?

    Rationales aren’t only for capital projects – they can and should be applied to all proposed OpEx and CapEx. Business project rationales tend to drive revenue and the customer experience, demanding ROI calculations. Internal IT-projects and non-project expenditure are often focused on mitigating and managing risk, requiring cost-benefit analysis.

    First, make sure your numbers add up

    There are a lot of numbers flying around during a budgeting process. Now’s the time to get out of the weeds, look at the big picture, and ensure everything lines up.

    Overall

    Non-Project OpEx

    Non-Project CapEx

    Project CapEx

    • Is your proposed budget consistent with previous IT expenditure patterns?
    • Did you account for major known anomalies or events?
    • Is your final total in line with your CFO’s communicated targets and expectations?
    • Are your alternative scenarios realistic and reflective of viable economic contexts that your organization could find itself in in the near term?
    • Are the OpEx-to-CapEx ratios sensible?
    • Does it pass your gut check?
    • Did you research and verify market rates for employees and skill sets?
    • Did you research and verify likely vendor pricing and potential increases?
    • Are cost categories with variances greater than +5% backed up by defensible IT hiring plans or documented operational growth or improvement initiatives?
    • Have you accounted for the absorption of previous capital project costs into day-to-day management, maintenance, and support operations?
    • Do you have accurate depreciation amounts and timeframes for their discontinuation?
    • Are any variances driven by confirmed business plans to increase headcount, necessitating purchase of end-user hardware and on-premises software licenses?
    • Are any variances due to net-new planned/contingency purchases or the retirement of depreciable on-premises equipment?
    • Is funding for all capital projects represented reliable, i.e. has it been approved?
    • Are all in-progress, proposed, or committed project CapEx costs backed up with reliable estimates and full project documentation?
    • Do capital project costs include the capitalizable costs of employees working on those projects, and were these amounts deducted from non-project OpEx?
    • Have you estimated the longer-term OpEx impact of your current capital projects?

    4.1 Aggregate your proposed budget numbers and stress test your forecasts

    2 hours

    1. Download the IT Cost Forecasting and Budgeting Workbook for this activity. If you have been using it thus far, the Workbook will have calculated your numbers for you across the four views of the ITFM Cost Model on Tab 7, “Proposed Budget”, including:
      1. Forecasted non-project OpEx, non-project CapEx (including depreciation values), project CapEx, and total values.
      2. Numerical and percentage variances from the previous year.
    2. Test and finalize your forecasts by applying the questions on the previous slide.
    3. Flag cost categories where large variances from the previous year or large numbers in general appear – you will need to ensure your rationales for these variances are rigorous in the next step.
    4. Make amendments if needed to Tabs 4, “Business as Usual Forecast” and 5, “Project CapEx Forecast” in the IT Cost Forecasting and Budgeting Workbook.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutputMaterialsParticipants
    • Final drafts of all IT cost forecasts
    • A final proposed IT budget
    • IT Cost Forecasting and Budgeting Workbook
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Case Study

    INDUSTRY: Healthcare

    SOURCE: Anonymous

    Challenge

    Solution

    Results

    A senior nursing systems director needed the CIO’s help. She wanted to get a project off the ground, but it wasn’t getting priority or funding.

    Nurses were burning out. Many were staying one to two hours late per shift to catch up on patient notes. Their EHR platform had two problematic workflows, each taking up to about 15 minutes per nurse per patient to complete. These workflows were complex, of no value, and just not getting done. She needed a few million dollars to make the fix.

    The CIO worked with the director to do the math. In only a few hours, they realized that the savings from rewriting the workflows would allow them to hire over 500 full-time nurses.

    The benefits realized would not only help reduce nurse workload and generate savings, but also increase the amount of time spent with patients and number of patients seen overall. They redid the math several times to ensure they were right.

    The senior nursing systems director presented to her peers and leadership, and eventually to the Board of Directors. The Board immediately saw the benefits and promoted the project to first on the list ahead of all other projects.

    This collaborative approach to generating project benefits statements helped the CIO gain trust and pave the way for future budgets.

    The strength of your rationales will determine how readily your budget is approved

    When proposing expenditure, you need to thoroughly consider the organization’s goals, its governance culture, and the overall feasibility of what’s being asked.

    First, recall what budgets are really about.

    The completeness, accuracy, and granularity of your numbers and thorough ROI calculations for projects are essential. They will serve you well in getting the CFO’s attention. However, the numbers will only get you halfway there. Despite what some people think, the work in setting a budget is more about the what, how, and why – that is, the rationale – than about the how much.

    Next, revisit Phase 1 of this blueprint and review:

    • Your organization’s budgeting culture and processes.
    • The typical accountabilities, priorities, challenges, opportunities, and expectations associated with your CFO, CEO, and CXO IT budget stakeholders.
    • Your budgetary mandate as the head of IT.

    Then, look at each component of your proposed budget through each of these three rationale-building lenses.

    Business goals
    What are the organization’s strategic priorities?

    Governance culture
    How constrained is the decision-making process?

    Feasibility
    Can we make it happen?

    Linking proposed spend to strategic goals isn’t just for strategic project CapEx

    Tie in your “business as usual” non-project OpEx and CapEx, as well.

    Business goals

    What are the organization’s strategic priorities?

    Context

    This is all about external factors, namely the broader economic, political, and industry contexts in which the organization operates.

    Lifecycle position

    The stage the organization is at in terms of growth, stability, or decline will drive decisions, priorities, and the ability to spend or invest.

    Opportunities

    Context and lifecycle position determine opportunities, which are often defined in terms of potential cost savings
    or ROI.

    Tie every element in your proposed budget to an organizational goal.

    Non-project OpEx

    • Remember that OpEx is what comes from the realization of past strategic goals. If that past goal is still valid, then the OpEx that keeps that goal alive is, too.
    • Business viability and continuity are often unexpressed goals. OpEx directly supports these goals.
    • Periodically apply zero-based budgeting to OpEx to re-rationalize and identify waste.

    Non-project CapEx

    • Know the impact of any business growth goals on future headcount – this is essential to rationalize laptop/desktop and other end-user hardware spend.
    • Position infrastructure equipment spend in terms of having sufficient capacity to support growth goals as well as ensuring network/system reliability and continuity.
    • Leverage depreciation schedules as backup.

    Project CapEx

    • Challenge business-driven CapEx projects if they don’t directly support stated goals.
    • Ideally, the goal-supporting rationales for software, hardware, and workforce CapEx have been laid out in an already-approved project proposal. Refer to these plans.
    • If pitching a capital project at the last minute, especially an IT-driven one, expect a “no” regardless of how well it ties to goals.

    Your governance culture will determine what you need to show and when you show it

    The rigor of your rationales is entirely driven by “how things are done around here.”

    Governance Culture

    How rigorous/ constrained
    is decision-making?

    Risk tolerance

    This is the organization’s willingness to be flexible, take chances, make change, and innovate. It is often driven by legal and regulatory mandates.

    Control

    Control manifests in the number and nature of rules and how authority and accountability are centralized or distributed in the organization.

    Speed to action

    How quickly decisions are made and executed upon is determined by the amount of consultation and number of approval steps.

    Ensure all parts of your proposed budget align with what’s tolerated and allowed.

    Non-project OpEx

    • Don’t hide OpEx. If it’s a dirty word, put it front and center to start normalizing it.
    • As with business goals, position OpEx as necessary for business continuity and risk mitigation, as well as the thing that keeps long-term strategic goals alive.
    • Focus on efficiency and cost control, both in terms of past and future initiatives, regardless of the governance culture.

    Non-project CapEx

    • Treat non-project CapEx in the same way as you would non-project OpEx.
    • IT must make purchases quickly in this area of spend, but drawn-out procurement processes can make this impossible. Consider including a separate proposal to establish a policy that gives IT the control to make end-user and network/data center equipment purchases faster and easier.

    Project CapEx

    • If your organization is risk-averse, highly centralized, or slow to act, don’t expect IT to win approval for innovative capital projects. Let the business make any pitches and have IT serve in a supporting role.
    • Capital projects are often committed to 6-12 months in advance and can’t be completed within a fiscal year. Nudge the organization toward longer-term, flexible funding.

    No matter which way your goals and culture lean, ground all your rationales in reality

    Objective, unapologetic facts are your strongest rationale-building tool.

    Feasibility

    Can we do it, and what sacrifices will we have to make?

    Funding

    The ultimate determinant of feasibility is the availability, quantity, and reliability of funding next fiscal year and over the long term to support investment.

    Capabilities

    Success hinges on both the availability and accessibility of required skills and knowledge to execute on a spend plan in the required timeframe.

    Risk

    Risk is not just about obstacles to success and what could happen if you do something – it’s also about what could happen if you do nothing at all.

    Vet every part of your proposed budget to ensure what you’re asking for is both realistic and possible.

    Non-project OpEx

    • Point out your operational waste-reduction and efficiency-gaining efforts in hard, numerical terms.
    • Clearly demonstrate that OpEx cannot be reduced without sacrifices on the business side, specifically in terms of service levels.
    • Define OpEx impacts for all CapEx proposals to ensure funding commitments include long-term maintenance and support.

    Non-project CapEx

    • This is a common source of surprise budget overage, and IT often sacrifices parts of its OpEx budget to cover it. Shed light on this problem and define IT’s boundaries.
    • A core infrastructure equipment contingency fund and a policy mandating business units pay for unbudgeted end-user tech due to unplanned or uncommunicated headcount increases are worth pursuing.

    Project CapEx

    • Be sure IT is involved with every capital project proposal that has a technological implication (which is usually all of them).
    • Specifically, IT should take on responsibility for tech vendor evaluation and negotiation. Never leave this up to the business.
    • Ensure IT gains funding for supporting any technologies acquired via a capital planning process, including hiring if necessary.

    Double-check to ensure your bases are covered

    Detailed data and information checklist:

    • I have the following data and information for each item of proposed expenditure:
    • Sponsors, owners, and/or managers from IT and the business.
    • CapEx and OpEx costs broken down by workforce (employees/contract) and vendor (software, hardware, services) at a minimum for both last fiscal year (if continuing spend) and next fiscal year to demonstrate any changes.
    • Projected annual costs for the above, extending two to five years into the future, with dates when new spending will start, known depreciations will end, and CapEx will transition to OpEx.
    • Descriptions of any tradeoffs or potential obstacles.
    • Lifespan information for new, proposed assets informing depreciation scheduling.
    • Sources of funding (especially if new, transferred, or changed).
    • Copies of any research used to inform any of the above.

    High-level rationale checklist:

    • I have done the following thinking and analysis for each item of proposed expenditure:
    • Considered it in the context of my organization’s broader operating environment and the constraints and opportunities this creates.
    • Tied it – directly or indirectly – to the achievement or sustainment of current or past (but still relevant) organizational goals.
    • Understood my organization’s tolerances, how things get done, and whether I can win any battles that I need to fight given these realities.
    • Worked with business unit leaders to fully understand their plans and how IT can support them.
    • Obtained current, verifiable data and information and have a good idea if, when, and how this information may change next year.
    • Assessed benefits, risks, dependencies, and overall feasibility, as well as created ROI statements where needed.
    • Stuck to the facts and am confident they can speak for themselves.

    For more on creating detailed business cases for projects and investments, see Info-Tech’s comprehensive blueprint, Build a Comprehensive Business Case.

    4.2 Challenge and perfect your rationales

    2 hours

    1. Based on your analysis in Phase 1, review your organization’s current and near-term business goals (context, lifecycle position, opportunities), governance culture (risk tolerance, control, speed to action), and feasibility (funding, capabilities, risk) to understand what’s possible, what’s not, and your general boundaries.
    2. Review your proposed budget in its current form and flag items that may be difficult or impossible to sell, given the above.
    3. Systematically go through each item in you proposed budget and apply the detailed data and information and high-level rationale checklists on the previous slide to ensure you have considered it from every angle and have all the information you need to defend it.
    4. Track down any additional information needed to fill gaps and fine-tune your budget based on any discoveries, including eliminating or adding elements if needed.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • Final drafts of all IT cost forecasts, including rationales
    • Fully rationalized proposed IT budget for next fiscal year
    MaterialsParticipants
    • IT Cost Forecasting and Budgeting Workbook
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Phase recap: Build your proposed budget

    You can officially say your proposed IT budget is done. Now for the communications part.

    This phase is where everything came together into a coherent budget proposal. You were able to:

    • Aggregate your numbers. This involved pulling for project and non-project CapEx and OpEx forecasts into a single proposed IT budget total.
    • Stress-test your forecasts. Here, you ensured that all your numbers were accurate and made sense.
    • Challenge and perfect your rationales. Finally, you made sure you have all your evidence in place and can defend every component in your proposed IT budget regardless of who’s looking at it.

    “Current OpEx is about supporting and aligning with past business strategies. That’s alignment. If the business wants to give up on those past business strategies, that’s up to them.”

    – Darin Stahl, Distinguished Analyst and Research Fellow, Info-Tech Research Group

    Phase 5

    Create and Deliver Your Presentation

    Lay Your
    Foundation

    Get Into Budget-Starting Position

    Develop Your
    Forecasts

    Build Your
    Proposed Budget

    Create and Deliver Your Presentation

    1.1 Understand what your budget is
    and does

    1.2 Know your stakeholders

    1.3 Continuously pre-sell your budget

    2.1 Assemble your resources

    2.2 Understand the four views of the ITFM Cost Model

    2.3 Review last year’s budget vs.
    actuals and five-year historical trends

    2.4 Set your high-level goals

    3.1 Develop assumptions and
    alternative scenarios

    3.2 Forecast your project CapEx

    3.3 Forecast your non-project CapEx and OpEx

    4.1 Aggregate your numbers

    4.2 Stress test your forecasts

    4.3 Challenge and perfect your
    rationales

    5.1 Plan your content

    5.2 Build your presentation

    5.3 Present to stakeholders

    5.4 Make final adjustments and submit your IT budget

    This phase will walk you through the following activities:

    • Planning the content you’ll include in your budget presentation.
    • Pulling together your formal presentation.
    • Presenting, finalizing, and submitting your budget.

    This phase involves the following participants:

    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Create and deliver your presentation

    Pull it all together into something you can show your approvers and stakeholders and win IT budgetary approval.

    This phase focuses on developing your final proposed budget presentation for delivery to your various stakeholders. Here you will:

    • Plan your final content. Decide the narrative you want to tell and select the visualizations and words you want to include in your presentation (or presentations) depending on the makeup of your target audience.
    • Build your presentation. Pull together all the key elements in a PowerPoint template in a way that best tells the IT budget story.
    • Present to stakeholders. Deliver your IT budgetary message.
    • Make final adjustments and submit your budget. Address any questions, make final changes, and deconstruct your budget into the account categories mandated by your Finance Department to plug into the budget template they’ve provided.

    “I could have put the numbers together in a week. The process of talking through what the divisions need and spending time with them is more time consuming than the budget itself.”

    – Jay Gnuse, IT Director, Chief Industries

    The content you select to present depends on your objectives and constraints

    Info-Tech classifies potential content according to three basic types: mandatory, recommended, and optional. What’s the difference?

    Mandatory: Just about every CFO or approving body will expect to see this information. Often high level in nature, it includes:

    • A review of last year’s performance.
    • A comparison of proposed budget totals to last year’s actuals.
    • A breakdown of CapEx vs. OpEx.
    • A breakdown of proposed expenditure according to traditional workforce and vendor costs.

    Recommended: This information builds on the mandatory elements, providing more depth and detail. Inclusion of recommended content depends on:

    • Availability of the information.
    • Relevance to a current strategic focus or overarching initiative in the organization.
    • Known business interest in the topic, or the topic’s ability to generate interest in IT budgetary concerns in general.

    Optional: This is very detailed information that provides alternative views and serves as reinforcement of your key messages. Consider including it if:

    • You need to bring fuller transparency to a murky IT spending situation.
    • Your audience is open to it, i.e. it wouldn’t be seen as irrelevant, wasting their time, or a cause of discord.
    • You have ample time during your presentation to dive into it.

    Deciding what to include or exclude depends 100% on your target audience. What will fulfill their basic information needs as well as increase their engagement in IT financial issues?

    Revisit your assumptions and alternative scenarios first

    These represent the contextual framework for your proposal and explain why you made the decisions you did.

    Stating your assumptions and presenting at least two alternative scenarios helps in the following ways:

    1. Identifies the factors you considered when setting budget targets and proposing specific expenditures, and shows that you know what the important factors are.
    2. Lays the logical foundation for all the rationales you will be presenting.
    3. Demonstrates that you’ve thought broadly about the future of the organization and how IT is best able to support that future organization regardless of its state and circumstances.

    Your assumptions and alternative scenarios may not appear back-to-back in your presentation, yet they’re intimately connected in that every unique scenario is based on adjustments to your core assumptions. These tweaks – and the resulting scenarios – reflect the different degrees of probability that a variable is likely to land on a certain value (i.e. an alternative assumption).

    Your primary scenario is the one you believe is most likely to happen and is represented by the complete budget you’re recommending and presenting.

    Target timeframe for presentation: 2 minutes

    Key objectives: Setting context, demonstrating breadth of thought.

    Potential content for section:

    • List of assumptions for the budget being presented (primary target scenario).
    • Two or more alternative scenarios.

    “Things get cut when the business
    doesn’t know what something is,
    doesn’t recognize it, doesn’t understand it. There needs to be an education.”

    – Angie Reynolds, Principal Research Director, ITFM Practice,
    Info-Tech Research Group,

    Select your assumptions and scenarios

    See Tabs “Planning Variables” and 9, “Alternative Scenarios” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Core assumptions

    Primary target scenario

    Alternative scenarios

    Full alternative scenario budgets

    List

    Slide

    Slide

    Budget

    Mandatory: This is a listing of both internal and external factors that are most likely to affect the challenges and opportunities your organization will have and how it can and will operate. This includes negotiable and non-negotiable internal and external constraints, stated priorities, and the expression of known risk factors.

    Mandatory: Emanating from your core assumptions, this scenario is a high-level statement of goals, initial budget targets, and proposed budget based on your core assumptions.

    Recommended: Two alternatives are typical, with one higher spend and one lower spend than your target. The state of the economy and funding availability are the assumptions usually tweaked. More radical scenarios, like the cost and implications of completely outsourcing IT, can also be explored.

    Optional: This is a lot of work, but some IT leaders do it if an alternative scenario is a strong contender or is necessary to show that a proposed direction from the business is costly or not feasible.

    The image contains screenshots of tab Planning Variables and Alternative Scenarios.

    The first major section of your presentation will be a retrospective

    Plan to kick things off with a review of last year’s results, factors that affected what transpired, and longer-term historical IT expenditure trends.

    This retrospective on IT expenditure is important for three reasons:

    1. Clarifying definitions and the different categories of IT expenditure.
    2. Showing your stakeholders how, and how well you aligned IT expenditure with business objectives.
    3. Setting stakeholder expectations about what next year’s budget will look like based on past patterns.

    You probably won’t have a lot of time for this section, so everything you select to share should pack a punch and perform double duty by introducing concepts you’ll need your stakeholders to have internalized when you present next year’s budget details.

    Target timeframe for presentation: 7 minutes

    Key objectives: Definitions, alignment, expectations-setting.

    Potential content for section:

    • Last fiscal year budgeted vs. actuals
    • Expenditure by type
    • Major capital projects completed
    • Top vendor spend
    • Drivers of last year’s expenditures and efficiencies
    • Last fiscal year in in detail (expense view, service view, business view, innovation view)
    • Expenditure trends for the past five years

    “If they don’t know the consequences of their actions, how are they ever going to change their actions?”

    – Angela Hintz, VP of PMO & Integrated Services,
    Blue Cross and Blue Shield of Louisiana

    Start at the highest level

    See Tabs 1 “Historical Events & Projects,” 3 “Historical Analysis,” and 6 “Vendor Worksheet” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Total budgeted vs. total actuals

    Graph

    Mandatory: Demonstrates the variance between what you budgeted for last year and what was actually spent. Explaining causes of variance is key.

    l actuals by expenditure type

    Graph

    Mandatory: Provides a comparative breakdown of last year’s expenditure by non-project OpEx, non-project CapEx, and project CapEx. This offers an opportunity to explain different types of IT expenditure and why they’re the relative size they are.

    Major capital projects completed

    List

    Mandatory: Illustrates progress made toward strategically important objectives.

    Top vendors

    List

    Recommended: A list of vendors that incurred the highest costs, including their relative portion of overall expenditure. These are usually business software vendors, i.e. tools your stakeholders use every day. The number of vendors shown is up to you.

    The image contains screenshots from Tabs 1, 3, and 6 of the IT Cost Forecasting and Budgeting Workbook.

    Describe drivers of costs and savings

    See Tab 1, “Historical Events & Projects” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Cost drivers

    List

    Mandatory: A list of major events, circumstances, business decisions, or non-negotiable factors that necessitated expenditure. Be sure to focus on the unplanned or unexpected situations that caused upward variance.

    Savings drivers

    List

    Mandatory: A list of key initiatives pursued, or circumstances that resulted in efficiencies or savings. Include any deferred or canceled projects.

    The image contains screenshots from Tab 1 of the IT Cost Forecasting and Budgeting Workbook.

    Also calculate and list the magnitude of costs incurred or savings realized in hard financial terms so that the full impact of these events is truly understood by your stakeholders.

    “What is that ongoing cost?
    If we brought in a new platform, what
    does that do to our operating costs?”

    – Kristen Thurber, IT Director, Office of the CIO, Donaldson Company

    End with longer-term five-year trends

    See Tab 3 “Historical Analysis” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    IT actual expenditure
    year over year

    Graph

    Mandatory: This is crucial for showing overall IT expenditure patterns, particularly percentage changes up or down year to year, and what the drivers of those changes were.

    IT actuals as a % of organizational revenue

    Graph

    Mandatory: You need to set the stage for the proposed percentage of organizational revenue to come. The CFO will be looking for consistency and an overall decreasing pattern over time.

    IT expenditure per FTE year over year

    Graph

    Optional: This can be a powerful metric as it’s simple and easily to understand.

    The image contains screenshots from Tab 3 of the IT Cost Forecasting and Budgeting Workbook.

    The historical analysis you can do is endless. You can generate many more cuts of the data or go back even further – it’s up to you.

    Keep in mind that you won’t have a lot of time during your presentation, so stick to the high-level, high-impact graphs that demonstrate overarching trends or themes.

    Show different views of the details

    See Tab 3 “Historical Analysis” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Budgeted vs. actuals CFO expense view

    Graph

    Mandatory: Showing different types of workforce expenditure compared to different types of vendor expenditure will be important to the CFO.

    Budgeted vs. actuals CIO services view

    Graph

    Optional: Showing the expenditure of some IT services will clarify the true total costs of delivering and supporting these services if misunderstandings exist.

    Budgeted vs. actuals CXO business view

    Graph

    Optional: A good way to show true consumption levels and the relative IT haves and have-nots. Potentially political, so consider sharing one-on-one with relevant business unit leaders instead of doing a big public reveal.

    Budgeted vs. actual CEO innovation view

    Graph

    Optional: Clarifies how much the organization is investing in innovation or growth versus keeping the lights on. Of most interest to the CEO and possibly the CFO, and good for starting conversations about how well funding is aligned with strategic directions.

    The image contains screenshots from Tab 3 of the IT Cost Forecasting and Budgeting Workbook.

    5.1a Select your retrospective content

    30 minutes

    1. Open your copy of the IT Cost Forecasting and Budgeting Workbook.
    2. From Tabs 1, “Historical Events & Projects, 3 “Historical Analysis”, and 6, “Vendor Worksheet,” select the visual outputs (graphs and lists) you plan to include in the retrospective section of your presentation. Consider the following when determining what to include or exclude:
      1. Fundamentals: Elements such as budgeted vs. actual, distribution across expenditure types, and drivers of variance are mandatory.
      2. Key clarifications: What expectations need to be set or common misunderstandings cleared up? Strategically insert visuals that introduce and explain important concepts early.
      3. Your time allowance. Plan for a maximum of seven minutes for every half hour of total presentation time.
    3. Note what you plan to include in your presentation and set aside.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • Data and graphs from the completed IT Cost Forecasting and Budgeting Workbook
    • Selected content and visuals for the historical/ retrospective section of the IT Budget Executive Presentation
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Next, transition from past expenditure to your proposal for the future

    Build a logical bridge between what happened in the past to what’s coming up next year using a comparative approach and feature major highlights.

    This transitional phase between the past and the future is important for the following reasons:

    1. It illustrates any consistent patterns of IT expenditure that may exist and be relevant in the near term.
    2. It sets the stage for explaining any deviations from historical patterns that you’re about to propose.
    3. It grounds proposed IT expenditure within the context of commitments made in previous years.

    Consider this the essential core of your presentation – this is the key message and what your audience came to hear.

    Target timeframe for presentation: 10 minutes

    Key objectives: Transition, reveal proposed budget.

    Potential content for section:

    • Last year’s actuals vs. next year’s proposed.
    • Next year’s proposed budget in context of the past five years’ year-over-year actuals.
    • Last year’s actual expenditure type distribution vs. next year’s proposed budget distribution.
    • Major projects to be started next year.

    “The companies...that invest the most in IT aren’t necessarily the best performers.
    On average, the most successful small and medium companies are more frugal when it comes to
    company spend on IT (as long as they do it judiciously).”

    – Source: Techvera, 2023

    Compare next year to last year

    See Tab 8, “Proposed Budget Analysis” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Last year’s total actuals vs. next year’s total forecast

    Proposed budget in context: Year-over-year expenditure

    Last year’s actuals vs. next year’s proposed by expenditure type

    Last year’s expenditure per FTE vs. next year’s proposed

    Graph

    Graph

    Graph

    Graph

    Mandatory: This is the most important graph for connecting the past with the future and is also the first meaningful view your audience will have of your proposed budget for next year.

    Mandatory: Here, you will continue the long-term view introduced in your historical data by adding on next year’s projections to your existing five-year historical trend. The percentage change from last year to next year will be the focus.

    Recommended: A double-comparative breakdown of last year vs. next year by non-project OpEx, non-project CapEx, and project CapEx illustrates where major events, decisions, and changes are having their impact.

    Optional: This graph is particularly useful in demonstrating the success of cost-control if the actual proposed budget is higher that the previous year but the IT cost per employee has gone down.

    The image contains screenshots from Tab 8 of the IT Cost Forecasting and Budgeting Workbook.

    Select business projects to profile

    See Tab 5, “Project CapEx Forecast” in your IT Cost Forecasting and Budgeting Workbook for the data and information to create these outputs.

    Major project profile

    Slide

    Mandatory: Focus on projects for which funding is already committed and lean toward those that are strategic or clearly support business goal attainment. How many you profile is up to you, but three to five is suggested.

    Minor project overview

    List

    Optional: List other projects on IT’s agenda to communicate the scope of IT’s project-related responsibilities and required expenditure to be successful. Include in-progress projects that will be completed next year and net-new projects on the roster.

    The image contains screenshots from Tab 5 of the IT Cost Forecasting and Budgeting Workbook.

    You can’t profile every project on the list, but it’s important that your stakeholders see their priorities clearly reflected in your budget; projects are the best way to do this.

    If you’ve successfully pre-sold your budget and partnered with business-unit leaders to define IT initiatives, your stakeholders should already be very familiar with the project summaries you put in front of them in your presentation.

    5.1b Select your transitional past-to-future content

    30 minutes

    1. Open your copy of the IT Cost Forecasting and Budgeting Workbook.
    2. From Tabs 5, “Project CapEx Forecast” and 7, “Proposed Budget Analysis”, select the visual outputs (graphs and lists) you plan to include in the transitional section of your presentation. Consider the following when determining what to include or exclude:
      1. Shift from CapEx to OpEx: If this has been a point of contention or confusion with your CFO in the past, or if your organization has actively committed to greater cloud or outsourcing intensity, you’ll want to show this year-to-year shift in expenditure type.
      2. Strategic priorities: Profile major capital projects that reflect stakeholder priorities. If your audience is already very familiar with these projects, you may be able to skip detailed profiles and simply list them.
      3. Your time allowance. Plan for a maximum of 10 minutes for every half hour of total presentation time.
    3. Note what you plan to include in your presentation and set aside.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • Data and graphs from the completed IT Cost Forecasting and Budgeting Workbook
    • Selected content and visuals for the past-to-future transitional section of the IT Budget Executive Presentation
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Finally, carefully select detailed drill-downs that add clarity and depth to your proposed budget

    The graphs you select here will be specific to your audience and any particular message you need to send.

    This detailed phase of your presentation is important because it allows you to:

    1. Highlight specific areas of IT expenditure that often get buried under generalities.
    2. View your proposed budget from different perspectives that are most meaningful to your audience, such as traditional workforce vs. vendor allocations, expenditure by IT service, business-unit consumption, and the allocation of funds to innovation and growth versus daily IT operations.
    3. Get stakeholder attention. For example, laying out exactly how much money will be spent next year in support of the Sales Department compared to other units will get the VP of Sales’ attention…and everyone else’s, for that matter. This kind of transparency is invaluable for enabling meaningful conversations and thoughtful decision-making about IT spend.

    Target timeframe for presentation: 7 minutes, but this phase of the presentation may naturally segue into the final Q&A.

    Key objectives: Transparency, dialogue, buy-in.

    Potential content for section:

    • Allocation across workforce vs. vendors
    • Top vendors by expenditure
    • Allocation across on-premises vs. cloud
    • Allocation across core IT services
    • Allocation across core business units
    • Allocation across business focus area

    “A budget is a quantified version of
    your service-level agreements.”

    – Darin Stahl, Distinguished Analysis & Research Fellow,
    Info-Tech Research Group,

    Start with the expense view details

    See Tab 8, “Proposed Budget Analysis” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Proposed budget: Workforce and vendors by expenditure type

    Graph

    Mandatory: This is the traditional CFO’s view, so definitely show it. The compelling twist here is showing it by expenditure type, i.e. non-project OpEx, non-project CapEx, and project CapEx.

    Proposed budget: Cloud vs. on-premises vendor expenditure

    Graph

    Optional: If this is a point of contention or if an active transition to cloud solutions is underway, then show it.

    Top vendors

    Graph

    Recommended: As with last year’s actuals, showing who the top vendors are slated to be next year speaks volumes to stakeholders about exactly where much of their money is going.

    If you have a diverse audience with diverse interests, be very selective – you don’t want to bore them with things they don’t care about.

    The image contains screenshots from Tab 8 of the IT Cost Forecasting and Budgeting Workbook.

    Offer choice details on the other views

    See Tab 8, “Proposed Budget Analysis” in your IT Cost Forecasting and Budgeting Workbook for these outputs.

    Proposed budget: IT services by expenditure type

    Graph

    Optional: Business unit leaders will be most interested in the application services. Proposed expenditure on security and data and BI services may be of particular interest given business priorities. Don’t linger on infrastructure spend unless chargeback is in play.

    Proposed budget: Business units by expenditure type

    Graph

    Optional: The purpose of this data is to show varying business units where they stand in terms of consumption. It may be more appropriate to show this graph in a one-on-one meeting or other context.

    Proposed budget: Business focus by expenditure type

    Graph

    Optional: The CEO will care most about this data. If they’re not in the room, then consider bypassing it and discuss it separately with the CFO.

    Inclusion of these graphs really depends on the makeup of your audience. It’s a good decision to show all of them to your CFO at some point before the formal presentation. Consider getting their advice on what to include and exclude.

    The image contains screenshots from Tab 8 of the IT Cost Forecasting and Budgeting Workbook.

    5.1c Select next year’s expenditure sub-category details

    30 minutes

    1. Open your copy of the IT Cost Forecasting and Budgeting Workbook.
    2. From Tab 8, “Proposed Budget Analysis,” select the visual outputs (graphs) you plan to include in the targeted expenditure sub-category details section of your presentation. Consider the following when determining what to include or exclude:
      1. The presence of important fence-sitters. If there are key individuals who require more convincing, this is where you show them the reality of what it costs to deliver their most business-critical IT services to them.
      2. The degree to which you’ve already gone over the numbers previously with your audience. Again, if you’ve done your pre-selling, this data may be old news and not worth going over again.
      3. Your time allowance. Plan for a maximum of seven minutes for every half hour of total presentation time.
    3. Note what you plan to include in your presentation and set aside.

    Download the IT Cost Forecasting and Budgeting Workbook

    InputOutput
    • Data and graphs from the completed IT Cost Forecasting and Budgeting Workbook
    • Selected content and visuals for the expenditure category details section of the IT Budget Executive Presentation
    MaterialsParticipants
    • Whiteboard/flip charts
    • Head of IT
    • IT Financial Lead
    • Other IT Management

    Finalize your line-up and put your selected content into a presentation template

    This step is about nailing down the horizontal logic of the story you want to tell. Start by ordering and loading the visualizations of your budget data.

    Download Info-Tech’s IT Budget Executive Presentation Template

    The image contains a screenshot of the IT Budget Executive Presentation Template.

    If you prefer, use your own internal presentation standard template instead and Info-Tech’s template as a structural guide.

    Regardless of the template you use, Info-Tech recommends the following structure:

    1. Summary: An overview of your decision-making assumptions, initial targets given the business context, and the total proposed IT budget amount.
    2. Retrospective: An overview of previous years’ performance, with a specific focus on last fiscal year.
    3. Proposed budget overview: A high-level view of the proposed budget for next fiscal year in the context of last year’s performance (i.e. the bridge from past to future), including alternative scenarios considered and capital projects on the roster.
    4. Proposed budget details by category: Detailed views of the proposed budget by expense type, IT service, business unit, and business focus category.
    5. Next steps: Include question-and-answer and itemization of your next actions through to submitting your final budget to the CFO.

    Draft the commentary that describes and highlights your data’s key messages

    This is where the rationales that you perfected earlier come into play.

    Leave the details for the speaker’s notes.
    Remember that this is an executive presentation. Use tags, pointers, and very brief sentences in the body of the presentation itself. Avoid walls of text. You want your audience to be listening to your words, not reading a slide.

    Speak to everything that represents an increase or decrease of more than 5% or that simply looks odd.
    Being transparent is essential. Don’t hide anything. Acknowledge the elephant in the room before your audience does to quickly stop suspicious or doubtful thoughts

    Identify causes and rationales.
    This is why your numbers are as they are. However, if you’re not 100% sure what all driving factors are, don’t make them up. Also, if the line between cause and effect isn’t straight, craft in advance a very simple way of explaining it that you can offer whenever needed.

    Be neutral and objective in your language.
    You need to park strong feelings at the door. You’re presenting rational facts and thoroughly vetted recommendations. The best defense is not to be defensive, or even offensive for that matter. You don’t need to argue, plead, or apologize – let your information speak for itself and allow the audience to arrive at their own logical conclusions.

    Re-emphasize your core themes to create connections.
    If a single strategic project is driving cost increases across multiple cost categories, point it out multiple times if needed to reinforce its importance. If an increase in one area is made possible by a significant offset in another, say so to demonstrate your ongoing commitment to efficiencies. If a single event from last year will continue having cost impacts on several IT services next year, spell this out.

    5.2 Develop an executive presentation

    Duration: 2 hours

    1. Download the IT Budget Executive Presentation PowerPoint template.
    2. Open your working version of the IT Cost Forecasting and Budgeting Workbook and copy and paste your selected graphs and tables into the template. Note: Pasting as an image will preserve graph formatting.
    3. Incorporate observations and insights about your proposed budget and other analysis into the template where indicated.
    4. Conduct an internal review of the final presentation to ensure it includes all the elements you need and is error-free.

    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.

    Download the IT Budget Executive Presentation template

    Input Output
    • Tabular and graphical data outputs in the IT Cost Forecasting and Budgeting Workbook
    • Interpretive commentary based on your analysis
    • Executive presentation summarizing your proposed IT budget
    Materials Participants
    • IT Cost Forecasting and Budgeting Workbook
    • IT Budget Executive Presentation template
    • CIO/IT Directors
    • IT Financial Lead
    • Other IT Management

    Now it’s time to present your proposed IT budget for next fiscal year

    If you’ve done your homework and pre-sold your budget, the presentation itself should be a mere formality with no surprises for anyone, including you.

    Some final advice on presenting your proposed budget…

    Partner up

    If something big in your budget is an initiative that’s for a specific business unit, let that business unit’s leader be the face of it and have IT play the role of supporting partner.

    Use your champions

    Let your advocates know in advance that you’d appreciate hearing their voice during the presentation if you encounter any pushback, or just to reinforce your main messages.

    Focus on the CFO

    The CFO is the most important stakeholder in the room at the end of the day, even more than the CEO in some cases. Their interests should take priority if you’re pressed for time.

    Avoid judgment

    Let the numbers speak for themselves. Do point out highlights and areas of interest but hold off on offering emotion-driven opinions. Let your audience draw their own conclusions.

    Solicit questions

    You do want dialogue. However, keep your answers short and to the point. What does come up in discussion is a good indication of where you’ll need to spend more time in the future.

    The only other thing that can boost your chances is if you’re lucky enough to be scheduled to present between 10:00 and 11:00 on a Thursday morning when people are most agreeable. Beyond that, apply the standard rules of good presentations to optimize your success.

    Your presentation is done – now re-focus on budget finalization and submission

    This final stage tends to be very administrative. Follow the rules and get it done.

    • Incorporate feedback: Follow up on comments from your first presentation and reflect them in your budget if appropriate. This may include:
      • Having follow-up conversations with stakeholders.
      • Further clarifying the ROI projections or business benefits.
      • Adjusting proposed expenditure amounts based on new information or a shift in priorities.
      • Adding details or increasing granularity around specific issues of interest.
    • Trim: Almost every business unit leader will need to make cuts to their initial budget proposal. After all, the CFO has a finite pool of money to allocate. If all’s gone well, it may only be a few percent. Resurrect your less-costly alternative scenario and selectively apply the options you laid out there. Focus on downsizing or deferring capital projects if possible. If you must trim OpEx, remind the CFO about any service-level adjustments that will need to happen to make the less expensive alternatives work.
    • Re-present: It’s not unusual to have to present your budget one more time after you’ve made your adjustments. In some organizations, the first presentation is to an internal executive group while the second one is to a governing board. The same rules apply to this second presentation as to your first one.
    • Submit: Slot your final budget into the list of accounts prescribed in the budget template provided by Finance. These templates often don’t align with IT’s budget categories, but you’ll have to make do.

    Phase recap: Create and deliver your presentation

    You’ve reached the end of the budget creation and approval process. Now you can refocus on using your budget as a living governance tool.

    This phase focused on developing your final proposed budget presentation for delivery to your various stakeholders. Here, you:

    • Planned your final content. You selected the data and visuals to include and highlight.
    • Built your presentation. You pulled everything together into a PowerPoint template and crafted commentary to tell a cohesive IT budget story.
    • Presented to stakeholders. You delivered your proposed IT budget and solicited their comments and feedback.
    • Made final adjustments and submitted your budget. You applied final tweaks, deconstructed your budget to fit Finance’s template, and submitted it for entry into Finance’s system.

    “Everyone understands that there’s never enough money. The challenge is prioritizing the right work and funding it.”

    – Trisha Goya, Director, IT Governance & Administration, Hawaii Medical Service Association

    Next Steps

    “Keep that conversation going throughout the year so that at budgeting time no one is surprised…Make sure that you’re telling your story all year long and keep track of that story.”

    – Angela Hintz, VP of PMO & Integrated Services,
    Blue Cross and Blue Shield of Louisiana

    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.

    Summary of Accomplishment

    You’ve successfully created a transparent IT budget and gotten it approved.

    By following the phases and steps in this blueprint, you have:

    1. Learned more about what an IT budget does and what it means to your key stakeholders.
    2. Assembled your budgeting team and critical data needed for forecasting and budgeting, as well as set expenditure goals for next fiscal year, and metrics for improving the budgeting process overall.
    3. Forecasted your project and non-project CapEx and OpEx for next fiscal year and beyond.
    4. Fine-tuned your proposed expenditure rationales.
    5. Crafted and delivered an executive presentation and got your budget approved.

    What’s next?

    Use your approved budget as an ongoing IT financial management governance tool and track your budget process improvement metrics.

    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

    Info-Tech Research Group

    Carol Carr

    Technical Counselor (Finance)

    Info-Tech Research Group

    Larry Clark

    Executive Counselor

    Info-Tech Research Group

    Duane Cooney

    Executive Counselor

    Info-Tech Research Group

    Lynn Fyhrlund

    Former Chief Information Officer

    Milwaukee County

    Jay Gnuse

    Information Technology Director

    Chief Industries

    Trisha Goya

    Director, IS Client Services

    Hawaii Medical Service Association

    Angela Hintz

    VP of PMO & Integrated Services

    Blue Cross and Blue Shield of Louisiana

    Rick Hopfer

    Chief Information Officer

    Hawaii Medical Service Association

    Theresa Hughes

    Executive Counselor

    Info-Tech Research Group

    Research Contributors and Experts

    Dave Kish

    Practice Lead, IT Financial Management Practice

    Info-Tech Research Group

    Matt Johnson

    IT Director Governance and Business Solutions

    Milwaukee County

    Titus Moore

    Executive Counselor

    Info-Tech Research Group

    Angie Reynolds

    Principal Research Director, IT Financial Management Practice

    Info-Tech Research Group

    Mark Roman

    Managing Partner, Executive Services

    Info-Tech Research Group

    Darin Stahl

    Distinguished Analyst & Research Fellow

    Info-Tech Research Group

    Miguel Suarez

    Head of Technology

    Seguros Monterrey New York Life

    Kristen Thurber

    IT Director, Office of the CIO

    Donaldson Company

    Related Info-Tech Research & Services

    Achieve IT Spend & Staffing Transparency

    • IT spend has increased in volume and complexity, but how IT spend decisions are made has not kept pace.
    • Lay a foundation for meaningful conversations and informed decision making around IT spend by transparently mapping exactly where IT funds are really going.

    IT Spend & Staffing Benchmarking Service

    • Is a do-it-yourself approach to achieving spend transparency too onerous? Let Info-Tech do the heavy lifting for you.
    • Using Info-Tech’s ITFM Cost Model, our analysts will map your IT expenditure to four different stakeholder views – CFO Expense View, CIO Service View, CXO Business View, and CEO Innovation View – so that you clearly show where expenditure is going in terms that stakeholders can relate to and better demonstrate IT’s value to the business.
    • Get a full report that shows how your spend is allocated plus benchmarks that compare your results to those of your industry peers.

    Build Your IT Cost Optimization Roadmap

    • Cost optimization is usually thought about in terms of cuts, when it’s really about optimizing IT’s cost-to-value ratio.
    • Develop a cost-optimization strategy based on your organization’s circumstances and timeline focused on four key areas of IT expenditure: assets, vendors, projects, and workforce.

    Bibliography

    “How Much Should a Company Spend on IT?” Techvera, no date. Accessed 3 Mar. 2023.
    “State of the CIO Study 2023.” Foundry, 25 Jan. 2023. Accessed 3 Mar. 2023.
    Aberdeen Strategy & Research. “The State of IT 2023.” Spiceworks. Ziff Davis, 2022. Accessed 28 Feb. 2023.
    Ainsworth, Paul. “Responsibilities of the Modern CFO - A Function in Transition.” TopTal, LLC., no date. Accessed 15 Feb. 2023.
    Balasaygun, Kaitlin. “For the first time in a long time, CFOs can say no to tech spending.” CNBC CFO Council, 19 Jan. 2023. Accessed 17 Feb. 2023.
    Bashir, Ahmad. “Objectives of Capital Budgeting and factors affecting Capital Budget Decisions.” LinkedIn, 27 May 2017. Accessed 14 Apr. 2023.
    Blackmon, Kris. “Building a Data-Driven Budget Pitch the C-Suite Can't Refuse.” NetSuite Brainyard, 21 Sep. 2021. Accessed 17 Feb. 2023
    Butcher, Daniel. “CFO to CFO: Budgeting to Fund Strategic Plans.” Strategic Finance Magazine/Institute of Management Accountants, 1 Dec. 2021. Accessed 17 Feb. 2023
    Gray, Patrick. “IT Budgeting: A Cheat Sheet.” TechRepublic, 29 Jul. 2020. Accessed 28 Feb. 2023.
    Greenbaum, David. “Budget vs. Actuals: Budget Variance Analysis & Guide.” OnPlan, 15 Mar. 2022. Accessed 22 Mar. 2023.
    Huber, Michael and Joan Rundle. “How to Budget for IT Like a CFO.” Huber & Associates, no date. Accessed 15 Feb. 2023.
    Kinney, Tara. “Executing Your Department Budget Like a CFO.” Atomic Revenue, LLC., no date. Accessed 15 Feb. 2023.
    Lafley, A.G. “What Only the CFO Can Do.” Harvard Business Review, May 2009. Accessed 15 Mar. 2009.
    Moore, Peter D. “IN THE DIGITAL WORLD, IT should be run as a profit center, not a cost center.” Wild Oak Enterprise, 26 Feb. 2020. Accessed 3 Mar. 2023.
    Nordmeyer, Bille. “What Factors Are Going to Influence Your Budgeting Decisions?” bizfluent, 8 May 2019. Accessed 14 Apr. 2023
    Ryan, Vincent. “IT Spending and 2023 Budgets Under Close Scrutiny.” CFO, 5 Dec. 2022. Accessed 3 Mar. 2023.
    Stackpole, Beth. “State of the CIO, 2022: Focus turns to IT fundamentals.” CIO Magazine, 21 Mar. 2022. Accessed 3 Mar. 2023.

    Define a Release Management Process to Deliver Lasting Value

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    • Parent Category Name: Development
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    • Your software platforms are a key enabler of your brand. When there are issues releasing, this brand suffers. Client confidence and satisfaction erode.
    • Your organization has invested significant capital in creating a culture product ownership, Agile, and DevOps. Yet the benefits from these investments are not yet fully realized.
    • Customers have more choices than ever when it comes to products and services. They require features and capabilities delivered quickly, consistently, and of sufficient quality otherwise they will look elsewhere.

    Our Advice

    Critical Insight

    • Eliminate the need for dedicating time for off-hour or weekend release activities. Use a release management framework for optimizing release-related tasks, making them predictable and of high quality.

    Impact and Result

    • Develop a release management framework that efficiently and effectively orchestrates the different functions supporting a software’s release.
    • Use the release management framework and turn release-related activities into non-events.
    • Use principles of continuous delivery for converting your release processes from an overarching concern to a feature of a high-performing software practice.

    Define a Release Management Process to Deliver Lasting Value Research & Tools

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

    1. Define a Release Management Process to Deliver Lasting Value Deck – A step-by-step document that walks you through how to develop and implement a release management framework that takes advantage of continuous delivery.

    This presentation documents the Info-Tech approach to defining your application release management framework.

    • Define a Release Management Process to Deliver Lasting Value – Phases 1-4

    2. Define a Release Management Process to Deliver Lasting Value Template – Use this template to help you define, detail, and make a reality your strategy in support of your application release management framework.

    The template gives the user a guide to the development of their application release management framework.

    • Define a Release Management Process to Deliver Lasting Value Template

    3. Define a Release Management Process to Deliver Lasting Value Workbook – This workbook documents the results of the exercises contained in the blueprint and offers the user a guide to development of their release management framework.

    This workbook is designed to capture the results of your exercises from the Define a Release Management Process to Deliver Lasting Value blueprint.

    • Define a Release Management Process to Deliver Lasting Value Workbook
    [infographic]

    Workshop: Define a Release Management Process to Deliver Lasting Value

    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 Current Situation

    The Purpose

    Document the existing release management process and current pain points and use this to define the future-state framework.

    Key Benefits Achieved

    Gain an understanding of the current process to confirm potential areas of opportunity.

    Understand current pain points so that we can build resolution into the new process.

    Activities

    1.1 Identify current pain points with your release management process. If appropriate, rank them in order of most to least disruptive.

    1.2 Use the statement of quality and current pain points (in addition to other considerations) and outline the guiding principles for your application release management framework.

    1.3 Brainstorm a set of metrics that will be used to assess the success of your aspired-to application release management framework.

    Outputs

    Understanding of pain points, their root causes, and ranking.

    Built guiding principles for application release management framework.

    Created set of metrics to measure the effectiveness of the application release management framework.

    2 Define Standard Release Criteria

    The Purpose

    Build sample release criteria, release contents, and standards for how it will be integrated in production.

    Key Benefits Achieved

    Define a map to what success will look like once a new process is defined.

    Develop standards that the new process must meet to ensure benefits are realized.

    Activities

    2.1 Using an example of a product known to the team, list its criteria for release.

    2.2 Using an example of a product known to the team, develop a list of features and tasks that are directly and indirectly important for either a real or hypothetical upcoming release.

    2.3 Using an example of product known to the team, map out the process for its integration into the release-approved code in production. For each step in the process, think about how it satisfies guiding principles, releasability and principles of continuous anything.

    Outputs

    Completed Workbook example highlighting releasability.

    Completed Workbook example defining and detailing feature and task selection.

    Completed Workbook example defining and detailing the integration step.

    3 Define Acceptance and Deployment Standards

    The Purpose

    Define criteria for the critical acceptance and deployment phases of the release.

    Key Benefits Achieved

    Ensure that releases will meet or exceed expectations and meet user quality standards.

    Ensure release standards for no / low risk deployments are recognized and implemented.

    Activities

    3.1 Using an example of product known to the team, map out the process for its acceptance. For each step in the process, think about how it satisfies guiding principles, releasability and principles of continuous anything.

    3.2 Using an example of product known to the team, map out the process for its deployment. For each step in the process, think about how it satisfies guiding principles, releasability and principles of continuous anything.

    Outputs

    Completed Workbook example defining and detailing the acceptance step.

    Completed Workbook example defining and detailing the deployment step.

    4 Implement the Strategy

    The Purpose

    Define your future application release management process and the plan to make the required changes to implement.

    Key Benefits Achieved

    Build a repeatable process that meets the standards defined in phases 2 and 3.

    Ensure the pain points defined in Phase 1 are resolved.

    Show how the new process will be implemented.

    Activities

    4.1 Develop a plan and roadmap to enhance the integration, acceptance, and deployment processes.

    Outputs

    List of initiatives to reach the target state

    Application release management implementation roadmap

    Further reading

    Define a Release Management Process for Your Applications to Deliver Lasting Value

    Use your releases to drive business value and enhance the benefits delivered by your move to Agile.

    Analyst Perspective

    Improving your release management strategy and practices is a key step to fully unlock the value of your portfolio.

    As firms invest in modern delivery practices based around product ownership, Agile, and DevOps, organizations assume that’s all that is necessary to consistently deliver value. As organizations continue to release, they continue to see challenges delivering applications of sufficient and consistent quality.

    Delivering value doesn’t only require good vision, requirements, and technology. It requires a consistent and reliable approach to releasing and delivering products and services to your customer. Reaching this goal requires the definition of standards and criteria to govern release readiness, testing, and deployment.

    This will ensure that when you deploy a release it meets the high standards expected by your clients and delivers the value you have intended.

    Dr. Suneel Ghei

    Principal Research Director, Application Development

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Your software platforms are a key enabler of your brand. When there are issues releasing, the brand suffers. Client confidence and satisfaction erode.
    • Your organization has invested significant capital in creating a culture of product ownership, Agile, and DevOps. Yet the benefits from these investments are not yet fully realized.
    • Customers have more choices than ever when it comes to products and services. They require features and capabilities delivered quickly, consistently, and of sufficient quality, otherwise they will look elsewhere.

    Common Obstacles

    • Development teams are moving faster but then face delays waiting for testing and deployment due to a lack of defined release cycle and process.
    • Individual stages in your software development life cycle (SDLC), such as code collaboration, testing, and deployment, have become leaner, but the overall complexity has increased since many products and services are composed of many applications, platforms, and processes.
    • The specifics of releasing products is (wrongly) classified as a technical concern and not a business concern, hindering the ability to prioritize improved release practices.

    Info-Tech's Approach

    • Develop a release management framework that efficiently and effectively orchestrates the different functions supporting a software’s release.
    • Use the release management framework and turn release-related activities into non-events.
    • Use principles of continuous delivery for converting your release processes from an overarching concern to a feature of a high-performing software practice.

    Executive Summary

    Info-Tech Insights

    Turn release-related activities into non-events.

    Eliminate the need for dedicating time for off-hour or weekend release activities. Use a release management framework for optimizing release-related tasks, making them predictable and of high quality.

    Release management is NOT a part of the software delivery life cycle.

    The release cycle runs parallel to the software delivery life cycle but is not tightly coupled with it. The act of releasing begins at the point requirements are confirmed and ends when user satisfaction is measurable. In contrast, the software delivery life cycle is focused on activities such as building, architecting, and testing.

    All releases are NOT created equal.

    Barring standard guiding principles, each release may have specific nuances that need to be considered as part of release planning.

    Your release management journey

    1. Optimize Applications Release Management - Set a baseline release management process and organization.
    2. Modernize Your SDLC - Move your organization to Agile and increase throughput to feed releases.
    3. Deliver on Your Digital Product Vision - Understand the practices that go into delivering products, including articulating your release plans.
    4. Automate Testing to Get More Done - Create the ability to do more testing quickly and ensure test coverage.
    5. Implement DevOps Practices That Work - Build in tools and techniques necessary for release deployment automation.
    6. Define a Release Management Process to Deliver Lasting Value (We Are Here)

    Define a Release Management Process for Your Applications to Deliver Lasting Value

    Use your releases to drive business value and enhance the benefits delivered by your move to Agile.

    Executive Brief

    Your software delivery teams are expected to deliver value to stakeholders in a timely manner and with high quality

    Software delivery teams must enable the organization to react to market needs and competitive changes to improve the business’ bottom line. Otherwise, the business will question the team’s competencies.

    The business is constantly looking for innovative ways to do their jobs better and they need support from your technical teams.

    The increased stress from the business is widening the inefficiencies that already exist in application release management, risking poor product quality and delayed releases.

    Being detached from the release process, business stakeholders do not fully understand the complexities and challenges of completing a release, which complicates the team’s communication with them when issues occur.

    IT Stakeholders Are Also Not Satisfied With Their Own Throughput

    • Only 29% of IT employees find application development throughput highly effective.
    • Only 9% of organizations were classified as having highly effective application development throughput.
    • Application development throughput ranked 37th out of 45 core IT processes in terms of effectiveness.

    (Info-Tech’s Management and Governance Diagnostic, N=3,930)

    Your teams, however, struggle with core release issues, resulting in delayed delivery (and disappointed stakeholders)

    Implementing tools on top of an inefficient pipeline can significantly magnify the existing release issues. This can lead to missed deadlines, poor product quality, and business distrust with software delivery teams.

    COMMON RELEASE ISSUES

    1. Local Thinking: Release decisions and changes are made and approved without consideration of the holistic system, process, and organization.
    2. No Release Cadence: Lack of process governance and oversight generates unpredictable bottlenecks and load and ill-prepared downstream teams.
    3. Mismanagement of Releases: Program management does not accommodate the various integrated releases completed by multiple delivery teams.
    4. Poor Scope Management: Teams are struggling to effectively accommodate changes during the project.

    The bottom line: The business’ ability to operate is dictated by the software delivery team’s ability to successfully complete releases. If the team performs poorly, then the business will do poorly as well. Application release management is critical to ensure business expectations are within the team’s constraints.

    As software becomes more embedded in the business, firms are discovering that the velocity of business change is now limited by how quickly they can deploy.” – Five Ways To Streamline Release Management, J.S. Hammond

    Historically, managing releases has been difficult and complicated…

    Typically, application release management has been hard to coordinate because…

    • Software has multiple dependencies and coordinating their inclusion into a deployable whole was not planned.
    • Teams many be spending too much time on features that are not needed any longer.
    • Software development functions (such as application architecture, test-first or test-driven design, source code integration, and functional testing) are not optimized.
    • There are no agreed upon service-level contracts (e.g. expected details in requirements, adequate testing, source control strategy) between development functions.
    • The different development functions are not integrated in a holistic style.
    • The different deployment environments have variability in their configuration, reducing the reliability of testing done in different environments.
    • Minimum thresholds for acceptable quality of development functions are either too low (leading to adverse outcomes down stream) or too high (leading to unnecessary delays).

    …but research shows being effective at application release management increases your throughput

    Research conducted on Info-Tech's members shows overwhelming evidence that application throughput is strongly tied to an effective application release management approach.

    The image shows a scatter plot, with Release Management Effectiveness on the x-axis and Application Development Throughput Effectiveness on the Y-axis. The graph shows a steady increase.

    (Info-Tech Management & Governance Diagnostic, since 2019; N=684 organizations)

    An application release management framework is critical for effective and timely delivery of software

    A well-developed application release management framework is transformative and changes...

    From To
    Short-lived projects Ongoing enhancements supporting a product strategy
    Aiming for mandated targets Flexible roadmaps
    Manual execution of release processes Automating a release pipeline as much as possible and reasonable
    Manual quality assurance Automated assessment of quality
    Centralized decision making Small, independent release teams, orchestrated through an optimized value stream

    Info-Tech Insight: Your application release management framework should turn a system release into a non-event. This is only possible through the development of a holistic, low-risk and standardized approach to releasing software, irrespective of their size or complexity.

    Robust continuous “anything” requires proficiency in five core practices

    A continuous anything evaluation should not be a “one-and-done” event. As part of ongoing improvements, keep evolving it to make it a fundamental component of a strong operational strategy.

    Continuous Anything

    • Automate where appropriate
      • Automation is not a silver bullet. All processes are not created equal; and therefore, some are not worthy of being automated.
    • Control system variables
      • Deploying and testing in environments that are apple to apple in comparison reduces the risk of unintended outcomes from production release.
    • Measure process outcomes
      • A process not open to being measured is a process bound to fail. If it can be measured, it should be, and insights found should be used for improving the system.
    • Select smaller features batches
      • Smaller release packages reduce the chances of cognitive load associated with finding root causes for defects and issues that may result as post-production incidents.
    • Reduction of cycle time
      • Identification of waste in each stage of the continuous anything process helps in lowering cost of operations and results in quicker generation of value for stakeholders.

    Invest time in developing an application release management framework for your development team(s) with a continuous anything mindset

    An application release management framework converts a set of features and make them ready for releasability in a low-risk, standardized, and high-quality process.

    The image shows a diagram titled Application Release Engineering From Idea to Product, which illustrates the process.

    A continuous anything (integration, delivery, and deployment) mindset is based on a growth and improvement philosophy, where every event is considered a valid data point for investigation of process efficiency.

    Diagram adapted from Continuous Delivery in the Wild, Pete Hodgson, Published by O'Reilly Media, Inc., 2020

    Related Info-Tech Research

    Streamline Application Maintenance

    • Justify the necessity of streamlined maintenance. Gain a grounded understanding of stakeholder objectives and concerns and validate their achievability against the current state of the people, process, and technologies involved in application maintenance.
    • Strengthen triaging and prioritization practices. Obtain a holistic picture of the business and technical impacts, risks, and urgencies of each accepted maintenance request to justify its prioritization and relevance within your backlog. Identify opportunities to bundle requests together or integrate them within project commitments to ensure completion.
    • Establish and govern a repeatable process. Develop a maintenance process with well-defined stage gates, quality controls, and roles and responsibilities, and instill development best practices to improve the success of delivery.

    “Releasability” (or release criteria) of a system depends upon the inclusion of necessary building blocks and proof that they were worked on

    There is no standard definition of a system’s releasability. However, there are common themes around completions or assessments that should be investigated as part of a release:

    • The range of performance, technical, or compliance standards that need to be assessed.
    • The full range of test types required for business approval: unit tests, acceptance tests, security test, data migration tests, etc.
    • The volume-criticality mix of defects the organization is willing to accept as a risk.
    • The best source and version control strategy for the development team. This is mostly a function of the team's skill with using release branches and coordinating their work artifacts.
    • The addition of monitoring points and measures required for evaluations and impact analysis.
    • The documentation required for audit and compliance.
    • External and internal dependencies and integrations.
    • Validations, approvals, and sign-offs required as part of the business’ operating procedure.
    • Processes that are currently carried out outside and should be moved into the pipeline.
    • Manual processes that may be automated.
    • Any waste activities that do not directly contribute to releasability that can be eliminated from the development process.
    • Knowledge the team has regarding challenges and successes with similar software releases in the past.

    Releasability of a system is different than governing principles for application release management

    Governing principles are fundamental ways of doing something, which in this case is application release management, while releasability will generally have governing principles in addition to specific needs for a successful release.

    Example of Governing Principles

    • Approval from Senior Director is necessary before releasing to production
    • Production deployments can only be done in off-hours
    • We will try to automate processes whenever it is possible for us to do so
    • We will use a collaborative set of metrics to measure our processes

    Examples of Releasability Criteria

    • For the upcoming release, add performance testing for Finance and Budget Teams’ APIs
    • Audit and compliance documentation is required for this release
    • Automation of manual deployment
    • Use trunk-based source code management instead of feature-based

    Regulated industries are not more stable despite being less nimble

    A pervasive myth in industry revolves around the misperception that continuous anything and nimble and non-event application release management is not possible in large bureaucratic and regulated organizations because they are risk-averse.

    "We found that external approvals were negatively correlated with lead-time, deployment frequency and restore time, and had no correlation with change failure rate. In short, approval by an external body (such as a manager or Change Approval Board) simply doesn’t work to increase the stability of production systems…However, it certainly slows things down. It is in fact worse than having no change approval process at all." – Accelerate by Gene Kim, Jez Humble, and Nicole Forsgren

    Many organizations reduce risk in their product release by adopting a paternalistic stance by:

    • Requiring manual sign-offs from senior personnel who are external to the organization.
    • Increasing the number and level of authorization gates.
    • Staying away from change and preferring to stick with what has worked in the past.

    Despite the prevalence of these types of responses to risk, the evidence is that they do not work and are in fact counter-productive because they:

    • Create blocks to frequent releases.
    • Introduce procedural complexity to each release and in effect make them “bigger.”
    • Prefer process over people (and trusting them). Increase non-value-add scrutiny and reporting.

    There is a persistent misunderstanding about continuous anything being only an IT engineering practice

    01

    At the enterprise level, continuous anything focuses on:

    • Visibility of final value being provided in a high-quality and expedited manner
    • Ensuring efficiency in the organization’s delivery framework
    • Ensuring adherence to established governance and risk mitigation strategy

    02

    Focus of this blueprint

    At the product level, continuous anything focuses on:

    • Reliability of the product delivery system
    • Use of scientific evidence for continuous improvement of the product’s delivery system
    • Orchestration of different artifacts into a single whole

    03

    At the functional level, continuous anything focuses on*:

    • Local functional optimization (functions = software engineering, testing, application design)
    • Automation of local functions
    • Use of patterns for standardizing inputs and functional areas

    *Where necessary, practices at this level have been mentioned.

    Related Info-Tech Research

    Implement DevOps Practices That Work

    • Be DevOps, rather than do DevOps. DevOps is a philosophy, not an industry framework. Your organization’s culture must shift toward system-wide thinking, cross-function collaboration, and empathy.
    • Culture, learning, automation, integrated teams, and metrics and governance (CLAIM) are all critical components of effective DevOps.

    Automate Testing to Get More Done

    • Optimize and automate SDLC stages to recover team capacity. Recognize that automation without optimization is a recipe for long-term pain. Do it right the first time.
    • Optimization and automation are not one-hit wonders. Technical debt is a part of software systems and never goes away. The only remedy is constant vigilance and enhancements to the processes.

    The seeds of a good release are sown even before work on it begins

    Pre-release practices such as requirements intake and product backlog management are important because:

    • A standard process for documentation of features and requirements helps reduce “cognitive dissonance” between business and technology teams. Clearly articulated and well-understood business needs are fundamental ingredients of a high-quality product.
    • Product backlog management done right ensures the prioritized delivery of value to stakeholders. Features can become stale or get a bump in importance, depending upon evolving circumstances. Prioritizing the backlog is, therefore, critical for ensuring time, effort, and budget are spent on things that matter.

    The governance around resilience

    You want to become resilient to cyberattacks, human errors, power outages, and many other causes of service interruptions. Where do you start?

    You could ask your IT team and your Operations leaders to take the required measures to ensure "reliability." Do you think that will work without any oversight and guidelines? I can tell you right off the bat: No, And you will have given the same answer in your head already. Moreover, your company's department heads will have the same answer: no. And why? Exactly because they do not know how you want to put the "law" into effect in your company.

    Your next question is, of course: "what law?." If you are in Europe, you will have heard about the many laws of the EU, like NIS2, MIFID II, DORA, EMIR, and so many more. You will be subject to other laws if you are in Asia, the US, the Middle East, Africa, or Oceania. And if you deliver services to EU companies governed by the first set, you may be subject to those European laws as well. 

    So far, about the laws, let's look at what this gives you.

    If you're like me, you want your client to be able to use your services, almost no matter what. That means you must ensure your services are available to your clients under most circumstances. Ok, if WWIII breaks out with nuclear missiles flying all over, all bets are off.  Let's ignore that occurrence. (your contracts include "acts of God" exclusions, right? (if not, let's talk.) That is the real reason you must ensure your services to our clients are resilient. Resilient systems and processes ensure your income, revenue, the livelihood of your employees, the ROI for your shareholders, and your reputation.

     As I said, there are 4 stages. Let's begin with stage 1: governance.

    What is governance but telling your staff what you want them to do? Nothing! So, Let's tell them what to do and how to achieve their Key Performance Indicators. That way, you get what you want, being in control, and they get what they want: their bonus.

    Resilience governance needs to start at the top of the organization. And for that, you need to know WHY it is being introduced.

    1. To mitigate risks posed by growing vulnerabilities introduced by increased interconnectivity
    2. To address the shift in your risk profile as you adopt increasing digital adoption
    3. To acknowledge that third-party suppliers underpin your ability to supply services to your clients
    4. To adopt a single, consistent approach to operational resilience across markets

    Obviously, this is a holistic view of the markets across the US, EU, Oceania, and Africa. Each of these markets has its own interpretations and nuances.
    The point, however, stays the same: have a sound company oversight and management view via clear governance rules like ownership, policies, procedures, guidelines, and operational task lists.

    In the end, it is all about the ability to build, ensure, and review operational resilience from a technological and business perspective.

     

     

     

    Adapt Your Onboarding Process to a Virtual Environment

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    • member rating average days saved: Read what our members are saying
    • Parent Category Name: Attract & Select
    • Parent Category Link: /attract-and-select
    • For many, the WFH arrangement will be temporary, however, the uncertainty around the length of the pandemic makes it hard for organizations to plan long term.
    • As onboarding plans traditionally carry a six- to twelve-month outlook, the uncertainty around how long employees will be working remotely makes it challenging to determine how much of the current onboarding program needs to change. In addition, introducing new technologies to a remote workforce and planning training on how to access and effectively use these technologies is difficult.

    Our Advice

    Critical Insight

    • The COVID-19 pandemic has led to a virtual environment many organizations were not prepared for.
    • Focusing on critical parts of the onboarding process and leveraging current technology allows organizations to quickly adapt to the uncertainty and constant change.

    Impact and Result

    • Organizations need to assess their existing onboarding process and identify the parts that are critical.
    • Using the technology currently available, organizations must adapt onboarding to a virtual environment.
    • Develop a plan to re-assess and update the onboarding program according to the duration of the situation.

    Adapt Your Onboarding Process to a Virtual Environment Research & Tools

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

    1. Assess current onboarding processes

    Map the current onboarding process and identify the challenges to a virtual approach.

    • Adapt Your Onboarding Process to a Virtual Environment Storyboard
    • Virtual Onboarding Workbook
    • Process Mapping Guide

    2. Modify onboarding activities

    Determine how existing onboarding activities can be modified for a virtual environment.

    • Virtual Onboarding Ideas Catalog
    • Performance Management for Emergency Work-From-Home

    3. Launch the virtual onboarding process and plan to re-assess

    Finalize the virtual onboarding process and create an action plan. Continue to re-assess and iterate over time.

    • Virtual Onboarding Guide for HR
    • Virtual Onboarding Guide for Managers
    • HR Action and Communication Plan
    • Virtual Onboarding Schedule
    [infographic]

    Enterprise Architecture Trends

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    • Parent Category Name: Strategy & Operating Model
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    • The digital transformation journey brings business and technology increasingly closer.
    • Because the two become more and more intertwined, the role of the enterprise architecture increases in importance, aligning the two in providing additional efficiencies.
    • The current need for an accelerated digital transformation elevates the importance of enterprise architecture.

    Our Advice

    Critical Insight

    • Enterprise architecture is impacted and has an increasing role in the following areas:
      • Business agility
      • Security
      • Innovation
      • Collaborative EA
      • Tools and automation

    Impact and Result

    EA’s role in brokering and negotiating overlapping areas can lead to the creation of additional efficiencies at the enterprise level.

    Enterprise Architecture Trends Research & Tools

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

    1. Enterprise Architecture Trends Deck – A trend report to support executives as they digitally transform the enterprise.

    In an accelerated path to digitization, the increasingly important role of enterprise architecture is one of collaboration across siloes, inside and outside the enterprise, in a configurable way that allows for quick adjustment to new threats and conditions, while embracing unprecedented opportunities to scale, stimulating innovation, in order to increase the organization’s competitive advantage.

    • Enterprise Architecture Trends Report

    Infographic

    Further reading

    Enterprise Architecture Trends

    Supporting Executives to Digitally Transform the Enterprise

    Analyst Perspective

    Enterprise architecture, seen as the glue of the organization, aligns business goals with all the other aspects of the organization, providing additional effectiveness and efficiencies while also providing guardrails for safety.

    In an accelerated path to digitization, the increasingly important role of enterprise architecture (EA) is one of collaboration across siloes, inside and outside the enterprise, in a configurable way that allows for quick adjustment to new threats and conditions while embracing unprecedented opportunities to scale, stimulating innovation to increase the organization’s competitive advantage.

    Photo of Milena Litoiu, Principal/Senior Director, Enterprise Architecture, Info-Tech Research Group.

    Milena Litoiu
    Principal/Senior Director, Enterprise Architecture
    Info-Tech Research Group

    Accelerated digital transformation elevates the importance of EA

    The Digital transformation journey brings Business and technology increasingly closer.

    Because the two become more and more intertwined, the role OF Enterprise Architecture increases in importance, aligning the two in providing additional efficiencies.

    THE Current need for an accelerated Digital transformation elevates the importance of Enterprise Architecture.

    More than 70% of organizations revamp their enterprise architecture programs. (Info-Tech Tech Trends 2022 Survey)

    Most organizations still see a significant gap between the business and IT.

    Enterprise Architecture (EA) is impacted and has an increasing role in the following areas

    Accelerated Digital Transformation

    • Business agility Business agility, needed more that ever, increases reliance on enterprise strategies.
      EA creates alignment between business and IT to improve business nimbleness.
    • Security More sophisticated attacks require more EA coordination.
      EA helps adjust to the increasing sophistication of external threats. Partnering with the CISO office to develop strategies to protect the enterprise becomes a prerequisite for survival.
    • Innovation EA's role in an innovation increases synergies at the enterprise level.
      EA plays an increasingly stronger role in innovation, from business endeavors to technology, across business units, etc.
    • Collaborative EA Collaborative EA requires new ways of working.
      Enterprise collaboration gains new meaning, replacing stiff governance.
    • Tools & automation Tools-based automation becomes increasingly common.
      Tools support as well as new artificial intelligence or machine- learning- powered approaches help achieve tools-assisted coordination across viewpoints and teams.

    Info-Tech Insight

    EA's role in brokering and negotiating overlapping areas can lead to the creation of additional efficiencies at the enterprise level.

    EA Enabling Business Agility

    Trend 01 — Business Agility is needed more than ever and THIS increases reliance on enterprise Strategies. to achieve nimbleness, organizations need to adapt timely to changes in the environment.

    Approaches:
    A plethora of approaches are needed (e.g. architecture modularity, data integration, AI/ML) in addition to other Agile/iterative approaches for the entire organization.

    Tame the Project Backlog

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    • Parent Category Name: Portfolio Management
    • Parent Category Link: /portfolio-management
    • Unmanaged project backlogs can become the bane of IT departments, tying IT leaders and PMO staff down to an ever-growing receptacle of project ideas that provides little by way of strategic value and that typically represents a lack of project intake and approval discipline.
    • Decision makers frequently use the backlog to keep the peace. Lacking the time to assess the bulk of requests, or simply wanting to avoid difficult conversations with stakeholders, they “approve” everything and leave it to IT to figure it out.
    • As IT has increasing difficulty assessing – let alone starting – any of the projects in the backlog, stakeholder relations suffer. Requestors view inclusion in the backlog as a euphemism for “declined,” and often characterize the backlog as the place where good project ideas go to die.
    • Faced with these challenges, you need to make your project backlog more useful and reliable. The backlog may contain projects worth doing, but in its current untamed state, you have difficulty discerning, let alone capitalizing upon, those instances of value.

    Our Advice

    Critical Insight

    • Project backlogs are an investment and need to be treated as such. Incurring a cost impact that can be measured in terms of time and money, the backlog needs to be actively managed to ensure that you’re investing wisely and getting a good return in terms of strategic value and project throughput.
    • Unmanageable project backlogs are rooted in bad habits and poorly-defined processes. Identifying the sources that fuel backlog growth is key to long-term success. Unless the problem is addressed at the root, any gains made in the near-term will simply fade away as old, unhealthy habits re-emerge and take hold.
    • Backlog management should facilitate executive awareness about the status of backlog items as new work is being approved. In the long run, this ongoing executive engagement will not only help to keep the backlog manageable, but it will also help to bring more even workloads to IT project staff.

    Impact and Result

    • Keep the best, forget the rest. Develop a near-term approach to limit the role of the backlog to include only those items that add value to the business.
    • Shine a light. Improve executive visibility into the health and status of the backlog so that the backlog is taken into account when decision makers approve new work.
    • Evolve the organizational culture. Effectively employ organizational change management practices to evolve the culture that currently exists around the project backlog in order to ensure customer-service needs are more effectively addressed.
    • Ensure long-term sustainability. Institute processes to make sure that your list of pending projects – should you still require one after implementing this blueprint – remains minimal, maintainable, and of high value.

    Tame the Project Backlog Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how a more disciplined approach to managing your project backlog can help you realize increased value and project throughput.

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

    1. Create a project backlog battle plan

    Calculate the cost of the project backlog and assess the root causes of its unmanageability.

    • Tame the Project Backlog – Phase 1: Create a Backlog Battle Plan
    • Project Backlog ROI Calculator

    2. Execute a near-term backlog cleanse

    Increase the manageability of the backlog by updating stale requests and removing dead weight.

    • Tame the Project Backlog – Phase 2: Execute a Near-Term Backlog Cleanse
    • Project Backlog Management Tool
    • Project Backlog Stakeholder Communications Template

    3. Ensure long-term backlog manageability

    Develop and maintain a manageable backlog growth rate by establishing disciplined backlog management processes.

    • Tame the Project Backlog – Phase 3: Ensure Long-Term Backlog Manageability
    • Project Backlog Operating Plan Template
    • Project Backlog Manager
    [infographic]

    Workshop: Tame the Project Backlog

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

    1 Create a Project Backlog Battle Plan

    The Purpose

    Gauge the manageability of your project backlog in its current state.

    Calculate the total cost of your project backlog investments.

    Determine the root causes that contribute to the unmanageability of your project backlog.

    Key Benefits Achieved

    An understanding of the organizational need for more disciplined backlog management.

    Visibility into the costs incurred by the project backlog.

    An awareness of the sources that feed the growth of the project backlog and make it a challenge to maintain.

    Activities

    1.1 Calculate the sunk and marginal costs that have gone into your project backlog.

    1.2 Estimate the throughput of backlog items.

    1.3 Survey the root causes of your project backlog.

    Outputs

    The total estimated cost of the project backlog.

    A project backlog return-on-investment score.

    A project backlog root cause analysis.

    2 Execute a Near-Term Project Backlog Cleanse

    The Purpose

    Identify the most organizationally appropriate goals for your backlog cleanse.

    Pinpoint those items that warrant immediate removal from the backlog and establish a game plan for putting a bullet in them.

    Communicate backlog decisions with stakeholders in a way that minimizes friction and resistance. 

    Key Benefits Achieved

    An effective, achievable, and organizationally right-sized approach to cleansing the backlog.

    Criteria for cleanse outcomes and a protocol for carrying out the near-term cleanse.

    A project sponsor outreach plan to help ensure that decisions made during your near-term cleanse stick. 

    Activities

    2.1 Establish roles and responsibilities for the near-term cleanse.

    2.2 Determine cleanse scope.

    2.3 Develop backlog prioritization criteria.

    2.4 Prepare a communication strategy.

    Outputs

    Clear accountabilities to ensure the backlog is effectively minimized and outcomes are communicated effectively.

    Clearly defined and achievable goals.

    Effective criteria for cleansing the backlog of zombie projects and maintaining projects that are of strategic and operational value.

    A communication strategy to minimize stakeholder friction and resistance.

    3 Ensure Long-Term Project Backlog Manageability

    The Purpose

    Ensure ongoing backlog manageability.

    Make sure the executive layer is aware of the ongoing status of the backlog when making project decisions.

    Customize a best-practice toolkit to help keep the project backlog useful. 

    Key Benefits Achieved

    A list of pending projects that is minimal, maintainable, and of high value.

    Executive engagement with the backlog to ensure intake and approval decisions are made with a view of the backlog in mind.

    A backlog management tool and processes for ongoing manageability. 

    Activities

    3.1 Develop a project backlog management operating model.

    3.2 Configure a project backlog management solution.

    3.3 Assign roles and responsibilities for your long-term project backlog management processes.

    3.4 Customize a project backlog management operating plan.

    Outputs

    An operating model to structure your long-term strategy around.

    A right-sized management tool to help enable your processes and executive visibility into the backlog.

    Defined accountabilities for executing project backlog management responsibilities.

    Clearly established processes for how items get in and out of the backlog, as well as for ongoing backlog review.

    Master the Art of Stakeholder Management in Small Enterprise Environments

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    • Parent Category Name: Stakeholder Management
    • Parent Category Link: /stakeholder-management
    • IT hasn’t taken into account critical stakeholders and their concerns and preferences as they plan projects or operate on daily business.
    • It is difficult to tailor communication and messaging to all of the different personal and professional styles and motivations of stakeholders.
    • Access to stakeholders and getting an accurate understanding of their needs and concerns regarding IT can be difficult to obtain.

    Our Advice

    Critical Insight

    • Small enterprises have an advantage in stakeholder management. Less people and fewer barriers create opportunities for more productive interactions and stronger relationships.
    • The guiding principles for effective stakeholder management are common concepts, but unfortunately not common practice.
    • By stepping back and taking the time to thoughtfully consider the dynamics and needs of important IT stakeholders, you will be better able to position yourself and your department.

    Impact and Result

    • Info-Tech’s guiding principles provide clear and feasible recommendations for how to incorporate stakeholder management into daily interactions.
    • This blueprint’s guidance will enable IT leaders to tailor communication and interactions that will enable them to build stronger and more meaningful relationships with stakeholders.
    • Following this approach and its guiding principles will make IT projects be more successful by reducing their risk of failure due to issues of buy-in, misunderstanding of priorities, or a lack of support from critical stakeholders.

    Master the Art of Stakeholder Management in Small Enterprise Environments Research & Tools

    Executive Overview

    Use Info-Tech’s approach to stakeholder management to guide you in building stronger and more beneficial relationships, 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:

    • Master the Art of Stakeholder Management in Small Enterprise Environments Storyboard
    • None
    • None

    1. Identify stakeholders

    Determine the stakeholders for an IT department of a singular initiative.

    • Stakeholder Management Analysis Tool

    2. Analyze stakeholders

    Use the guidance of this section to analyze stakeholders on both a professional and personal level.

    3. Manage stakeholders

    Use Info-Tech’s guiding principles of stakeholder management to direct how to best engage key stakeholders.

    4. Review case studies

    Use real-life experiences from Info-Tech’s analysts to understand how to use and apply stakeholder management techniques.

    [infographic]

    Explore the Secrets of SAP Digital Access Licensing

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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • SAP’s licensing rules surrounding use and indirect access are vague, making it extremely difficult to purchase with confidence and remain compliant.
    • SAP has released nine document-type licenses that can be used in digital access licensing scenarios, but this model has its own challenges.
    • Whether you decide to remain “as is” or proactively change licensing over to the document model, either option can be costly and confusing.
    • Indirect static read can be a cause of noncompliance when data is exported but the processing capability of SAP ERP is used in real time.

    Our Advice

    Critical Insight

    • Examine all indirect access possibilities. Understanding how in-house or third-party applications may be accessing and utilizing the SAP digital core is critical to be able to correctly address issues.
    • Know what’s in your contract. Each customer agreement is different, and older agreements may provide both benefits and challenges when evaluating your SAP license position.
    • Understand the intricacies of document licensing. While it may seem digital access licensing will solve compliance concerns, there are still questions to address and challenges SAP must resolve.

    Impact and Result

    • Conduct an internal analysis to examine where digital access licensing may be needed to mitigate risk, as SAP will be speaking with all customers in due course. Indirect access can be a costly audit settlement.
    • Conduct an analysis to remove inactive and duplicate users, as multiple logins may exist and could end up costing the organization license fees when audited.
    • Adopt a cyclical approach to reviewing your SAP licensing and create a reference document to track your software needs, planned licensing, and purchase negotiation points.
    • Learn the SAP way of conducting business, which includes a best-in-class sales structure and unique contracts and license use policies, combined with a hyper-aggressive compliance function. Conducting business with SAP is not a typical vendor experience, and you will need different tools to emerge successfully from a commercial transaction.

    Explore the Secrets of SAP Digital Access Licensing Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you need to understand and document your SAP digital access licensing 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. Understand, assess, and decide on digital access licensing

    Begin your SAP digital access licensing journey by evaluating licensing changes and options, and then make contractual changes to ensure compliance.

    • Explore the Secrets of SAP Digital Access Licensing – Phase 1: Understand, Assess, and Decide on Digital Access Licensing
    • SAP License Summary and Analysis Tool
    • SAP Digital Access Licensing Pricing Tool
    [infographic]

    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.

    Logo for Info-Tech.

    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.

    Logo for Info-Tech.

    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.

    Logo for Info-Tech.

    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.

    Logo for Info-Tech.

    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.

    Logo for Info-Tech.

    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.

    Logo for Info-Tech.

    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

    Download this research or book an analyst call on this topic

    Sample of the 'Effectively Manage CxO Relations' research.

    Sample of the 'Effectively Manage CxO Relations' research.

    Logo for Info-Tech.

    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

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    Diana MacPherson
    Senior Research Analyst

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    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

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    Ricardo de Oliveira
    Research Director

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    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

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    Andrew Kum-Seun
    Research Director

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    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

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    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

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    Logan Rohde
    Senior Research Analyst

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    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

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    Michel Hébert
    Research Director

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    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

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    Andrew Sharp
    Research Director

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    Sample of the 'Automate IT Asset Data Collection' research.

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    Leveraging AI to Create Meaningful Insights and Visibility in Retail

    AI prominence across the enterprise value chain.

    Industry Coverage
    Retail

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    Rahul Jaiswal
    Principal Research Director

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    Sample of the 'Leveraging AI to Create Meaningful Insights and Visibility in Retail' research.

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    Understand the Implications of Generative AI in Education

    Bans aren't the answer, but what is?

    Industry Coverage
    Education

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    Mark Maby
    Research Director

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    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

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    Rahul Jaiswal
    Principal Research Director

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    Sample of the 'Wholesale Industry Business Reference Architecture' research.

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    Mainframe Modernization for Retail Banking

    A strategy for modernizing mainframe systems to meet the needs of modern retail banking.

    Industry Coverage
    Retail Banking

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    David Tomljenovic
    Principal Research Director

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    Sample of the 'Mainframe Modernization for Retail Banking' research.

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    Data Analytics Use Cases for Utilities

    Building upon the collective wisdom for the art of the possible.

    Industry Coverage
    Utilities

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    Jing Wu
    Principal Research Director

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    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!”

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    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

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    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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    Vice President
    Research Fellowships

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    Tom Zehren
    Chief Product Officer

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    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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    Drive Measurable Results

    Our world-class leadership team is continually focused on building disruptive research and products that drive measurable results and save money.

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    Better Research Than Anyone

    Our team of experts is composed of the optimal mix of former CIOs, CISOs, PMOs, and other IT leaders and IT and management consultants as well as academic researchers and statisticians.

    Dramatically Outperform Your Peers

    Leverage Industry Best Practices

    We enable over 30,000 members to share their insights and best practices that you can use by having direct access to over 100 analysts as an extension of your team.

    Become an Info-Tech influencer:

    • Help shape our research by talking with our analysts.
    • Discuss the challenges, insights, and opportunities in your chosen areas.
    • Suggest new topic ideas for upcoming research cycles.

    Contact
    Jack Hakimian
    jhakimian@infotech.com

    We interview hundreds of experts and practitioners to help ensure our research is practical and focused on key member challenges.

    Why participate in expert interviews?

    • Discuss market trends and stay up to date.
    • Influence Info-Tech's research direction with your practical experience.
    • Preview our analysts' perspectives and preliminary research.
    • Build on your reputation as a thought leader and research contributor.
    • See your topic idea transformed into practical research.

    Thank you!

    Join us at our webinars to discuss more topics.

    For information on Info-Tech's products and services and to participate in our research process, please contact:

    Jack Hakimian
    jhakimian@infotech.com

    Combine Security Risk Management Components Into One Program

    • Buy Link or Shortcode: {j2store}376|cart{/j2store}
    • member rating overall impact (scale of 10): 9.1/10 Overall Impact
    • member rating average dollars saved: $37,798 Average $ Saved
    • member rating average days saved: 32 Average Days Saved
    • Parent Category Name: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance
    • Companies are aware of the need to discuss and assess risk, but many struggle to do so in a systematic and repeatable way.
    • Rarely are security risks analyzed in a consistent manner, let alone in a systematic and repeatable method to determine project risk as well as overall organizational risk exposure.

    Our Advice

    Critical Insight

    • The best security programs are built upon defensible risk management. With an appropriate risk management program in place, you can ensure that security decisions are made strategically instead of based on frameworks and gut feelings. This will optimize any security planning and budgeting.
    • All risks can be quantified. Security, compliance, legal, or other risks can be quantified using our methodology.

    Impact and Result

    • Develop a security risk management program to create a standardized methodology for assessing and managing the risk that information systems face.
    • Build a risk governance structure that makes it clear how security risks can be escalated within the organization and who makes the final decision on certain risks.
    • Use Info-Tech’s risk assessment methodology to quantifiably evaluate the threat severity for any new or existing project or initiative.
    • Tie together all aspects of your risk management program, including your information security risk tolerance level, threat and risk assessments, and mitigation effectiveness models.

    Combine Security Risk Management Components Into One Program Research & Tools

    Start here – read the Executive Brief

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

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

    1. Establish the risk environment

    Lay down the foundations for security risk management, including roles and responsibilities and a defined risk tolerance level.

    • Combine Security Risk Management Components Into One Program – Phase 1: Establish the Risk Environment
    • Security Risk Governance Responsibilities and RACI Template
    • Risk Tolerance Determination Tool
    • Risk Weighting Determination Tool

    2. Conduct threat and risk assessments

    Define frequency and impact rankings then assess the risk of your project.

    • Combine Security Risk Management Components Into One Program – Phase 2: Conduct Threat and Risk Assessments
    • Threat and Risk Assessment Process Template
    • Threat and Risk Assessment Tool

    3. Build the security risk register

    Catalog an inventory of individual risks to create an overall risk profile.

    • Combine Security Risk Management Components Into One Program – Phase 3: Build the Security Risk Register
    • Security Risk Register Tool

    4. Communicate the risk management program

    Communicate the risk-based conclusions and leverage these in security decision making.

    • Combine Security Risk Management Components Into One Program – Phase 4: Communicate the Risk Management Program
    • Security Risk Management Presentation Template
    • Security Risk Management Summary Template
    [infographic]

    Workshop: Combine Security Risk Management Components Into One Program

    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 Risk Environment

    The Purpose

    Build the foundation needed for a security risk management program.

    Define roles and responsibilities of the risk executive.

    Define an information security risk tolerance level.

    Key Benefits Achieved

    Clearly defined roles and responsibilities.

    Defined risk tolerance level.

    Activities

    1.1 Define the security executive function RACI chart.

    1.2 Assess business context for security risk management.

    1.3 Standardize risk terminology assumptions.

    1.4 Conduct preliminary evaluation of risk scenarios to determine your risk tolerance level.

    1.5 Decide on a custom risk factor weighting.

    1.6 Finalize the risk tolerance level.

    1.7 Begin threat and risk assessment.

    Outputs

    Defined risk executive functions

    Risk governance RACI chart

    Defined quantified risk tolerance and risk factor weightings

    2 Conduct Threat and Risk Assessments

    The Purpose

    Determine when and how to conduct threat and risk assessments (TRAs).

    Complete one or two TRAs, as time permits during the workshop.

    Key Benefits Achieved

    Developed process for how to conduct threat and risk assessments.

    Deep risk analysis for one or two IT projects/initiatives.

    Activities

    2.1 Determine when to initiate a risk assessment.

    2.2 Review appropriate data classification scheme.

    2.3 Identify system elements and perform data discovery.

    2.4 Map data types to the elements.

    2.5 Identify STRIDE threats and assess risk factors.

    2.6 Determine risk actions taking place and assign countermeasures.

    2.7 Calculate mitigated risk severity based on actions.

    2.8 If necessary, revisit risk tolerance.

    2.9 Document threat and risk assessment methodology.

    Outputs

    Define scope of system elements and data within assessment

    Mapping of data to different system elements

    Threat identification and associated risk severity

    Defined risk actions to take place in threat and risk assessment process

    3 Continue to Conduct Threat and Risk Assessments

    The Purpose

    Complete one or two TRAs, as time permits during the workshop.

    Key Benefits Achieved

    Deep risk analysis for one or two IT projects/initiatives, as time permits.

    Activities

    3.1 Continue threat and risk assessment activities.

    3.2 As time permits, one to two threat and risk assessment activities will be performed as part of the workshop.

    3.3 Review risk assessment results and compare to risk tolerance level.

    Outputs

    One to two threat and risk assessment activities performed

    Validation of the risk tolerance level

    4 Establish a Risk Register and Communicate Risk

    The Purpose

    Collect, analyze, and aggregate all individual risks into the security risk register.

    Plan for the future of risk management.

    Key Benefits Achieved

    Established risk register to provide overview of the organizational aggregate risk profile.

    Ability to communicate risk to other stakeholders as needed.

    Activities

    4.1 Begin building a risk register.

    4.2 Identify individual risks and threats that exist in the organization.

    4.3 Decide risk responses, depending on the risk level as it relates to the risk tolerance.

    4.4 If necessary, revisit risk tolerance.

    4.5 Identify which stakeholders sign off on each risk.

    4.6 Plan for the future of risk management.

    4.7 Determine how to present risk to senior management.

    Outputs

    Risk register, with an inventory of risks and a macro view of the organization’s risk

    Defined risk-based initiatives to complete

    Plan for securing and managing the risk register

    Diagnose Brand Health to Improve Business Growth

    • Buy Link or Shortcode: {j2store}564|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
    • 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.

    Navigate the Digital ID Ecosystem to Enhance Customer Experience

    • Buy Link or Shortcode: {j2store}76|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: IT Strategy
    • Parent Category Link: /it-strategy
    • 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

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    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

    Build and Deliver an Optimized IT Update Presentation

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    • IT update presentation success comes with understanding the business and the needs of your stakeholders. It often takes time and effort to get it right.
    • Many IT updates are too technically focused and do not engage nor demonstrate value in the eyes of the business.
    • This is not the time to boast about technical metrics that lack relevance.
    • Too often IT updates are prepared without the necessary pre-discussions required to validate content and hone priorities.

    Our Advice

    Critical Insight

    • CIOs need to take charge of the IT value proposition, increasing the impact and strategic role of IT.
    • Use your IT update to focus decisions, improve relationships, find new sources of value, and drive credibility.
    • Evolve the strategic partnership with your business using key metrics to help guide the conversation.

    Impact and Result

    • Build and deliver an IT update that focuses on what is most important.
    • Achieve the buy-in you require while driving business value.
    • Gain clarity on your scope, goals, and outcomes.
    • Validate IT’s role as a strategic business partner.

    Build and Deliver an Optimized IT Update Presentation Research & Tools

    Start here – read the Executive Brief

    Read our Executive Brief to find out how an optimized IT update presentation is your opportunity to drive business value.Review Info-Tech’s methodology and understand how we can support you in completing this project.

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

    1. Scope and goals

    Confirm the “why” of the IT update presentation by determining its scope and goals.

    • Build and Deliver an Optimized IT Update Presentation – Phase 1: Scope and Goals

    2. Assess and build

    Confirm the “what” of the presentation by focusing on business requirements, metrics, presentation creation, and stakeholder validation.

    • Build and Deliver an Optimized IT Update Presentation – Phase 2: Assess and Build
    • IT Update Stakeholder Interview Guide
    • IT Metrics Prioritization Tool

    3. Deliver and inspire

    Confirm the “how” of the presentation by focusing on engaging your audience, getting what you need, and creating a feedback cycle.

    • Build and Deliver an Optimized IT Update Presentation – Phase 3: Deliver and Inspire
    • IT Update Open Issues Tracking Tool
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    Workshop: Build and Deliver an Optimized IT Update Presentation

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

    1 Scope, Goals, and Requirements

    The Purpose

    Determine the IT update’s scope and goals and identify stakeholder requirements

    Key Benefits Achieved

    IT update scope and goals

    Business stakeholder goals and requirements

    Activities

    1.1 Determine/validate the IT update scope

    1.2 Determine/validate the IT update goals

    1.3 Business context analysis

    1.4 Determine stakeholder needs and expectations

    1.5 Confirm business goals and requirements

    Outputs

    Documented IT update scope

    Documented IT update goals

    Validated business context

    Stakeholder requirements analysis

    Confirmed business goals and requirements

    2 Validate Metrics With Business Needs

    The Purpose

    Analyze metrics and content and validate against business needs

    Key Benefits Achieved

    Selection of key metrics

    Metrics and content validated to business needs

    Activities

    2.1 Analyze current IT metrics

    2.2 Review industry best-practice metrics

    2.3 Align metrics and content to business stakeholder needs

    Outputs

    Identification of key metrics

    Finalization of key metrics

    Metrics and content validated to business stakeholder needs

    3 Create an optimized IT update

    The Purpose

    Create an IT update presentation that is optimized to business needs

    Key Benefits Achieved

    Optimized IT update presentation

    Activities

    3.1 Understand the audience and how to best engage them

    3.2 Determine how to present the pertinent data

    3.3 IT update review with key business stakeholders

    3.4 Final edits and review of IT update presentation

    3.5 Pre-presentation checklist

    Outputs

    Clarity on update audience

    Draft IT update presentation

    Business stakeholder feedback

    Finalized IT update presentation

    Confirmation on IT update presentation readiness

    Application Portfolio Management Foundations

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    Organizations consider application oversight a low priority and app portfolio knowledge is poor:

    • No dedicated or centralized effort to manage the app portfolio means no single source of truth is available to support informed decision making.
    • Organizations acquire more applications over time, creating redundancy, waste, and the need for additional support.
    • Organizations are more vulnerable to changing markets. Flexibility and growth are compromised when applications are unadaptable or cannot scale.

    Our Advice

    Critical Insight

    • You cannot outsource application strategy.
    • Modern software options have lessened the need for organizations to have robust in-house application management capabilities. But your applications’ future and governance of the portfolio still require centralized oversight to ensure the best overall return on investment.
    • Application portfolio management is the mechanism to ensure that the applications in your enterprise are delivering value and support for your value streams and business capabilities. Understanding value, satisfaction, technical health, and total cost of ownership are critical to digital transformation, modernization, and roadmaps.

    Impact and Result

    Build an APM program that is actionable and fit for size:

    • Understand your current state, needs, and goals for your application portfolio management.
    • Create an application and platform inventory that is built for better decision making.
    • Rationalize your apps with business priorities and communicate risk in operational terms.
    • Create a roadmap that improves communication between those who own, manage, and support your applications.

    Application Portfolio Management Foundations Research & Tools

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

    1. Application Portfolio Management Foundations Deck – A guide that helps you establish your core application inventory, simplified rationalization, redundancy comparison, and modernization roadmap.

    Enterprises have more applications than they need and rarely apply oversight to monitor the health, cost, and relative value of applications to ensure efficiency and minimal risk. This blueprint will help you build a streamlined application portfolio management process.

    • Application Portfolio Management Foundations – Phases 1-4

    2. Application Portfolio Management Diagnostic Tool – A tool that assesses your current application portfolio.

    Visibility into your application portfolio and APM practices will help inform and guide your next steps.

    • Application Portfolio Management Diagnostic Tool

    3. Application Portfolio Management Foundations Playbook – A template that builds your application portfolio management playbook.

    Capture your APM roles and responsibilities and build a repeatable process.

    • Application Portfolio Management Foundations Playbook

    4. Application Portfolio Management Snapshot and Foundations Tool – A tool that stores application information and allows you to execute rationalization and build a portfolio roadmap.

    This tool is the central hub for the activities within Application Portfolio Management Foundations.

    • Application Portfolio Management Snapshot and Foundations Tool
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    Workshop: Application Portfolio Management Foundations

    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

    Work with key corporate stakeholders to come to a shared understanding of the benefits and aspects of application portfolio management.

    Key Benefits Achieved

    Establish the goals of APM.

    Set the scope of APM responsibilities.

    Establish business priorities for the application portfolio.

    Activities

    1.1 Define goals and metrics.

    1.2 Define application categories.

    1.3 Determine steps and roles.

    1.4 Weight value drivers.

    Outputs

    Set short- and long-term goals and metrics.

    Set the scope for applications.

    Set the scope for the APM process.

    Defined business value drivers.

    2 Improve Your Inventory

    The Purpose

    Gather information on your applications to build a detailed inventory and identify areas of redundancy.

    Key Benefits Achieved

    Populated inventory based on your and your team’s current knowledge.

    Understanding of outstanding data and a plan to collect it.

    Activities

    2.1 Populate inventory.

    2.2 Assign business capabilities.

    2.3 Review outstanding data.

    Outputs

    Initial application inventory

    List of areas of redundancy

    Plan to collect outstanding data

    3 Gather Application Information

    The Purpose

    Work with the application subject matter experts to collect and compile data points and determine the appropriate disposition for your apps.

    Key Benefits Achieved

    Dispositions for individual applications

    Application rationalization framework

    Activities

    3.1 Assess business value.

    3.2 Assess end-user perspective.

    3.3 Assess TCO.

    3.4 Assess technical health.

    3.5 Assess redundancies.

    3.6 Determine dispositions.

    Outputs

    Business value score for individual applications

    End-user satisfaction scores for individual applications

    TCO score for individual applications

    Technical health scores for individual applications

    Feature-level assessment of redundant applications

    Assigned dispositions for individual applications

    4 Gather, Assess, and Select Dispositions

    The Purpose

    Work with application delivery specialists to determine the strategic plans for your apps and place these in your portfolio roadmap.

    Key Benefits Achieved

    Prioritized initiatives

    Initial application portfolio roadmap

    Ongoing structure of APM

    Activities

    4.1 Prioritize initiatives

    4.2 Populate roadmap.

    4.3 Determine ongoing APM cadence.

    4.4 Build APM action plan.

    Outputs

    Prioritized new potential initiatives.

    Built an initial portfolio roadmap.

    Established an ongoing cadence of APM activities.

    Built an action plan to complete APM activities.

    Further reading

    Application Portfolio Management Foundations

    Ensure your application portfolio delivers the best possible return on investment.

    Analyst Perspective

    You can’t outsource accountability.

    Many lack visibility into their overall application portfolio, focusing instead on individual projects or application development. Inevitably, application sprawl creates process and data disparities, redundant applications, and duplication of resources and stands as a significant barrier to business agility and responsiveness. The shift from strategic investment to application maintenance creates an unnecessary constraint on innovation and value delivery.

    With the rise and convenience of SAAS solutions, IT has an increasing need to discover and support all applications in the organization. Unmanaged and unsanctioned applications can lead to increased reputational risk. What you don’t know WILL hurt you.

    You can outsource development, you can even outsource maintenance, but you cannot outsource accountability for the portfolio. Organizations need a holistic dashboard of application performance and dispositions to help guide and inform planning and investment discussions. Application portfolio management (APM) can’t tell you why something is broken or how to fix it, but it is an important tool to determine if an application’s value and performance are up to your standards and can help meet your future goals.

    The image contains a picture of Hans Eckman.

    Hans Eckman
    Principal Research Director
    Info-Tech Research Group


    Is this research right for you?

    Research Navigation

    Managing your application portfolio is essential regardless of its size or whether your software is purchased or developed in house. Each organization must have some degree of application portfolio management to ensure that applications deliver value efficiently and that their risk or gradual decline in technical health is appropriately limited.

    Your APM goals

    If this describes your primary goal(s)

    • We are building a business case to determine where and if APM is needed now.
    • We want to understand how well supported are our business capabilities, departments, or core functions by our current applications.
    • We want to start our APM program with our core or critical applications.
    • We want to build our APM inventory for less than 150 applications (division, department, operating unit, government, small enterprise, etc.).
    • We want to start simple with a quick win for our 150 most important applications.
    • We want to start with an APM pilot before committing to an enterprise APM program.
    • We need to rationalize potentially redundant and underperforming applications to determine which to keep, replace, or retire.
    • We want to start enterprise APM, with up to 150 critical applications.
    • We want to collect and analyze detailed information about our applications.
    • We need tools to help us calculate total cost of ownership (TCO) and value.
    • We want to customize our APM journey and rationalization.
    • We want to build a formal communication strategy for our APM program.

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    • Organizations consider application oversight a low priority and app portfolio knowledge is poor.
    • No dedicated or centralized effort to manage the app portfolio means no single source of truth is available to support informed decision making.
    • Organizations acquire more applications over time, creating redundancy, waste, and the need for additional support.
    • Organizations are more vulnerable to changing markets. Flexibility and growth are compromised when applications are unadaptable or cannot scale.
    • APM implies taking a holistic approach and compiling multiple priorities and perspectives.
    • Organizations have limited time to act strategically or proactively and need to be succinct.
    • Uncertainties on business value prevent IT from successfully advising software decision making.
    • IT knows its technical debt but struggles to get the business to act on technical risks.
    • Attempts at exposing these problems rarely gain buy-in and discourage the push for improvement.
    • Think low priority over no priority.
    • Integrate these tasks into your mixed workload.
    • Create an inventory built for better decision making.
    • Rationalize your apps in accordance with business priorities and communicate risks on their terms.
    • Create a roadmap that improves communication between those who own, manage, and support an application.
    • Build your APM process fit for size.

    Info-Tech Insight: You can’t outsource strategy.

    Modern software options have decreased the need for organizations to have robust in-house application management capabilities. Your applications’ future and governance of the portfolio still require a centralized IT oversight to ensure the best return on investment.

    The top IT challenges for SE come from app management

    #1 challenge small enterprise owners face in their use of technology:

    Taking appropriate security precautions

    24%

    The costs of needed upgrades to technology

    17%

    The time it takes to fix problems

    17%

    The cost of maintaining technology

    14%

    Lack of expertise

    9%

    Breaks in service

    7%
    Source: National Small Business Association, 2019

    Having more applications than an organization needs means unnecessarily high costs and additional burden on the teams who support the applications. Especially in the case of small enterprises, this is added pressure the IT team cannot afford.

    A poorly maintained portfolio will eventually hurt the business more than it hurts IT.

    Legacy systems, complex environments, or anything that leads to a portfolio that can’t adapt to changing business needs will eventually become a barrier to business growth and accomplishing objectives. Often the blame is put on the IT department.

    56%

    of small businesses cited inflexible technology as a barrier to growth

    Source: Salesforce as quoted by Tech Republic, 2019

    A hidden and inefficient application portfolio is the root cause of so many pains experienced by both IT and the business.

    • Demand/Capacity Imbalance
    • Overspending
    • Security and Business Continuity Risk
    • Delays in Delivery
    • Barriers to Growth

    APM comes at a justified cost

    The image contains a screenshot of a graph to demonstrate APM and the costs.

    The benefits of APM

    APM identifies areas where you can reduce core spending and reinvest in innovation initiatives.

    Other benefits can include:

    • Fewer redundancies
    • Less risk
    • Less complexity
    • Improved processes
    • Flexibility
    • Scalability

    APM allows you to better understand and set the direction of your portfolio

    Application Inventory

    The artifact that documents and informs the business of your application portfolio.

    Application Rationalization

    The process of collecting information and assessing your applications to determine recommended dispositions.

    Application Alignment

    The process of revealing application information through interviewing stakeholders and aligning to business capabilities.

    Application Roadmap

    The artifact that showcases the strategic directions for your applications over a given timeline.

    Application Portfolio Management (APM):

    The ongoing practice of:

    • Providing visibility into applications across the organization.
    • Recommending corrections or enhancements to decision makers.
    • Aligning delivery teams on priority.
    • Showcasing the direction of applications to stakeholders.

    Create a balanced approach to value delivery

    Enterprise Agility and Value Realization

    Product Lifecycle Management

    Align your product and service improvement and execution to enterprise strategy and value realization in three key areas: defining your products and services, aligning product/service owners, and developing your product vision.

    Product Delivery Lifecycle (Agile DevOps)

    Enhance business agility by leveraging an Agile mindset and continuously improving your delivery throughput, quality, value realization, and adaptive governance.

    Application Portfolio Management

    Transform your application portfolio into a cohesive service catalog aligned to your business capabilities by discovering, rationalizing, and modernizing your applications while improving application maintenance, management, and reuse.

    The image contains a screenshot of a Thought Model on the Application Department Strategy.


    The image contains a screenshot of a Thought Model on Accelerate Your Transition to Product Delivery.

    Every organization experiences some degree of application sprawl

    The image contains a screenshot of images to demonstrate application sprawl.

    Causes of Sprawl

    • Poor Lifecycle Management
    • Turnover & Lack of Knowledge Transfer
    • Siloed Business Units & Decentralized IT
    • Business-Managed IT
    • (Shadow IT)
    • Mergers & Acquisitions

    Problems With Sprawl

    • Redundancy and Inefficient Spending
    • Disparate Apps & Data
    • Obsolescence
    • Difficulties in Prioritizing Support
    • Barriers to Change & Growth

    Application Sprawl:

    Inefficiencies within your application portfolio are created by the gradual and non-strategic accumulation of applications.

    You have more apps than you need.

    Only 34% of software is rated as both IMPORTANT and EFFECTIVE by users.

    Source: Info-Tech’s CIO Business Vision

    Build your APM journey map

    The image contains screenshots of diagrams that reviews building your APM journey map.

    Application rationalization provides insight

    Directionless portfolio of applications

    Info-Tech’s Five Lens Model

    Assigned dispositions for individual apps

    The image contains a screenshot of an example of directionless portfolio of applications.

    Application Alignment

    Business Value

    Technical Health

    End-User Perspective

    Total Cost of Ownership (TCO)

    Maintain: Keep the application but adjust its support structure.

    Modernize: Create a new initiative to address an inadequacy.

    Consolidate: Create a new initiative to reduce duplicate functionality.

    Retire: Phase out the application.

    Disposition: The intended strategic direction or implied course of action for an application.

    How well do your apps support your core functions and teams?

    How well are your apps aligned to value delivery?

    Do your apps meet all IT quality standards and policies?

    How well do your apps meet your end users’ needs?

    What is the relative cost of ownership and operation of your apps?

    Application rationalization requires the collection of several data points that represent these perspectives and act as the criteria for determining a disposition for each of your applications.

    APM is an iterative and evergreen process

    APM provides oversight and awareness of your application portfolio’s performance and support for your business operations and value delivery to all users and customers.

    Determine Scope and categories Build your list of applications and capabilities Score each application based on your values Determine outcomes based on app scoring and support for capabilities

    1. Lay Your Foundations

    1.1 Assess the state of your current application portfolio.

    1.2 Determine narrative.

    1.3 Define goals and metrics.

    1.4 Define application categories.

    1.5 Determine APM steps and roles (SIPOC).

    2. Improve Your Inventory

    2.1 Populate your inventory.

    2.2 Align to business capabilities.

    *Repeat

    3. Rationalize Your Apps

    3.1 Assess business value.

    3.2 Assess technical health.

    3.3 Assess end-user perspective.

    3.4 Assess total cost of ownership.

    *Repeat

    4. Populate Your Roadmap

    4.1 Review APM Snapshot results.

    4.2 Review APM Foundations results.

    4.3 Determine dispositions.

    4.4 Assess redundancies (optional).

    4.5 Determine dispositions for redundant applications (optional).

    4.6 Prioritize initiatives.

    4.7 Determine ongoing cadence.

    *Repeat

    Repeat according to APM cadence and application changes

    Executive Brief Case Study

    INDUSTRY: Retail

    SOURCE: Deloitte, 2017

    Supermarket Company

    The grocer was a smaller organization for the supermarket industry with a relatively low IT budget. While its portfolio consisted of a dozen applications, the organization still found it difficult to react to an evolving industry due to inflexible and overly complex legacy systems.

    The IT manager found himself in a scenario where he knew the applications well but had little awareness of the business processes they supported. Application maintenance was purely in keeping things operational, with little consideration for a future business strategy.

    As the business demanded more responsiveness to changes, the IT team needed to be able to react more efficiently and effectively while still securing the continuity of the business.

    The IT manager found success by introducing APM and gaining a better understanding of the business use and future needs for the applications. The organization started small but then increased the scope over time to produce and develop techniques to aid the business in meeting strategic goals with applications.

    Results

    The IT manager gained credibility and trust within the organization. The organization was able to build a plan to move away from the legacy systems and create a portfolio more responsive to the dynamic needs of an evolving marketplace.

    The application portfolio management initiative included the following components:

    Train teams and stakeholders on APM

    Model the core business processes

    Collect application inventory

    Assign APM responsibilities

    Start small, then grow

    Info-Tech’s application portfolio management methodology

    1. Lay Your Foundations

    2. Improve Your Inventory

    3. Rationalize Your Apps

    4. Populate Your Roadmap

    Phase Activities

    1.1 Assess your current application portfolio

    1.2 Determine narrative

    1.3 Define goals and metrics

    1.4 Define application categories

    1.5 Determine APM steps and roles

    2.1 Populate your inventory

    2.2 Align to business capabilities

    3.1 Assess business value

    3.2 Assess technical health

    3.3 Assess end-user perspective

    3.4 Assess total cost of ownership

    4.1 Review APM Snapshot results

    4.2 Review APM Foundations results

    4.3 Determine dispositions

    4.4 Assess redundancies (optional)

    4.5 Determine dispositions for redundant applications (optional)

    4.6 Prioritize initiatives

    4.7 Determine ongoing APM cadence

    Phase Outcomes

    Work with the appropriate management stakeholders to:

    • Extract key business priorities.
    • Set your goals.
    • Define scope of APM effort.

    Gather information on your own understanding of your applications to build a detailed inventory and identify areas of redundancy.

    Work with application subject matter experts to collect and compile data points and determine the appropriate disposition for your apps.

    Work with application delivery specialists to determine the strategic plans for your apps and place these in your portfolio roadmap.

    Blueprint deliverables

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

    Application Portfolio Management Foundations Playbook

    Application Portfolio Management Snapshot and Foundations Tool

    This template allows you to capture your APM roles and responsibilities and build a repeatable process.

    This tool stores all relevant application information and allows you to assess your capability support, execute rationalization, and build a portfolio roadmap.

    The image contains screenshots of the Application Portfolio Management Foundations Playbook. The image contains screenshots of the Application Portfolio Management Snapshot and Foundations Tool.

    Key deliverable:

    Blueprint Storyboard

    This is the PowerPoint document you are viewing now. Follow this guide to understand APM, learn how to use the tools, and build a repeatable APM process that will be captured in your playbook.

    The image contains a screenshot of the blueprint storyboard.

    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 for on this topic look like?

    Phase 1 Phase 2 Phase 3 Phase 4

    Call #1: Establish goals and foundations for your APM practice.

    Call #2:

    Initiate inventory and determine data requirements.

    Call #3:

    Initiate rationalization with group of applications.

    Call #4:

    Review result of first iteration and perform retrospective.

    Call #5:

    Initiate your roadmap and determine your ongoing APM practice.

    Note: The Guided Implementation will focus on a subset or group of applications depending on the state of your current APM inventory and available time. The goal is to use this first group to build your APM process and models to support your ongoing discovery, rationalization, and modernization efforts.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our right-sized best practices in your organization. A typical GI, using our materials, is 3 to 6 calls over the course of 1 to 3 months.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    1. Lay Your Foundations

    2. Improve Your Inventory

    3. Rationalize Your Apps

    4. Populate Your Roadmap

    Post Workshop Steps

    Activities

    1.1 Assess your current
    application portfolio

    1.2 Determine narrative

    1.3 Define goals and metrics

    1.4 Define application categories

    1.5 Determine APM steps and roles

    2.1 Populate your inventory

    2.2 Align to business capabilities

    3.1 Assess business value

    3.2 Assess technical health

    3.3 Assess end-user perspective

    3.4 Assess total cost of ownership

    4.1 Review APM Snapshot results

    4.2 Review APM Foundations results

    4.3 Determine dispositions

    4.4 Assess redundancies (optional)

    4.5 Determine dispositions for redundant applications (optional)

    4.6 Prioritize initiatives

    4.7 Determine ongoing APM cadence

    • Complete in-progress deliverables from the previous four days.
    • Set up review time for workshop deliverables and to discuss the next steps.

    Outcomes

    Work with the appropriate management stakeholders to:

    1. Extract key business priorities
    2. Set your goals
    3. Agree on key terms and set the scope for your APM effort

    Work with your applications team to:

    1. Build a detailed inventory
    2. Identify areas of redundancy

    Work with the SMEs for a subset of applications to:

    1. Define your rationalization criteria, descriptions, and scoring
    2. Evaluate each application using rationalization criteria

    Work with application delivery specialists to:

    1. Determine the appropriate disposition for your apps
    2. Build an initial application portfolio roadmap
    3. Establish an ongoing cadence of APM activities

    Info-Tech analysts complete:

    1. Workshop report
    2. APM Snapshot and Foundations Toolset
    3. Action plan

    Note: The workshop will focus on a subset or group of applications depending on the state of your current APM inventory and available time. The goal is to use this first group to build your APM process and models to support your ongoing discovery, rationalization, and modernization efforts.

    Workshop Options

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Outcomes

    1-Day Snapshot

    3-Day Snapshot and Foundations (Key Apps)

    4-Day Snapshot and Foundations (Pilot Area)

    APM Snapshot

    • Align applications to business capabilities
    • Evaluate application support for business capabilities

    APM Foundations

    • Define your APM program and cadence
    • Rationalize applications using weighted criteria
    • Define application dispositions
    • Build an application roadmap aligned to initiatives

    Establish APM practice with a small sample set of apps and capabilities.

    Establish APM practice with a pilot group of apps and capabilities.

    Blueprint Pre-Step: Get the right stakeholders to the right exercises

    The image contains four steps and demonstrates who should be handling each exercise. 1. Lay Your Foundations, is to be handled by the APM Lead/Owner and the Key Corporate Stakeholders. 2. Improve Your Inventory, is to be handled by the APM Lead/Owner and the Applications Subject Matter Experts. 3. Rationalize Your Apps, is to be handled by the APM Lead/Owner, the Applications Subject Matter Experts, and the Delivery Leads. 4. Populate Your Roadmap, is to be handled by the APM Lead/Owner, the Key Corporate Stakeholders, and the Delivery Leads.

    APM Lead/Owner (Recommended)

    ☐ Applications Lead or the individual responsible for application portfolio management, along with any applications team members, if available

    Key Corporate Stakeholders

    Depending on size and structure, participants could include:

    ☐ Head of IT (CIO, CTO, IT Director, or IT Manager)

    ☐ Head of shared services (CFO, COO, VP HR, etc.)

    ☐ Compliance Officer, Steering Committee

    ☐ Company owner or CEO

    Application Subject Matter Experts

    Individuals who have familiarity with a specific subset of applications

    ☐ Business owners (product owners, Head of Business Function, power users)

    ☐ Support owners (Operations Manager, IT Technician)

    Delivery Leads

    ☐ Development Managers

    ☐ Solution Architects

    ☐ Project Managers

    Understand your APM tools and outcomes

    1.Diagnostic The image contains a screenshot of the diagnostic APM tool.

    5. Foundations: Chart

    The image contains a screenshot of the Foundations: Chart APM tool.

    2. Data Journey

    The image contains a screenshot of the data journey APM tool.

    6. App Comparison

    The image contains a screenshot of the App Comparison APM tool.

    3. Snapshot

    The image contains a screenshot of the snapshot APM tool.

    7. Roadmap

    The image contains a screenshot of the Roadmap APM tool.

    4. Foundations: Results

    The image contains a screenshot of the Foundations: Results APM Tool.

    Examples and explanations of these tools are located on the following slides and within the phases where they occur.

    Assess your current application portfolio with Info-Tech’s APM Diagnostic Tool

    The image contains a screenshot of the APM Diagnostic Tool.

    One of the primary purposes of application portfolio management is to get what we know and need to know on paper so we can share a common vision and understanding of our portfolio. This enables better discussions and decisions with your application owners and stakeholders.

    APM worksheet data journey map

    The image contains a screenshot of the APM worksheet data journey map.

    Interpreting your APM Snapshot results

    The image contains a screenshot of the APM snapshots results.

    Interpreting your APM Foundations results

    The image contains a screenshot of the APM Foundations results.

    Interpreting your APM Foundations chart

    The image contains a screenshot of the APM Foundations chart.

    Compare application groups

    Group comparison can be used for more than just redundant/overlapping applications.

    The image contains a screenshot of images that demonstrate comparing application groups.

    Apply Info-Tech’s 6 R’s Rationalization Disposition Model

    The image contains a screenshot of Info-Tech's 6 R's Rationalization Disposition Model.

    Disposition

    Description

    Reward

    Prioritize new features or enhancement requests and openly welcome the expansion of these applications as new requests are presented.

    Refresh

    Address the poor end-user satisfaction with a prioritized project. Consult with users to determine if UX issues require improvement to address satisfaction.

    Refocus

    Determine the root cause of the low value. Refocus, retrain, or refresh the UX to improve value. If there is no value found, aim to "keep the lights on" until the app can be decommissioned.

    Replace

    Replace or rebuild the application as technical and user issues are putting important business capabilities at risk. Decommission application alongside replacement.

    Remediate

    Address the poor technical health or risk with a prioritized project. Further consult with development and technical teams to determine if migration or refactoring is suited to address the technical issue.

    Retire

    Cancel any requested features and enhancements. Schedule the proper decommission and transfer end users to a new or alternative system if necessary.

    TCO, compared relatively to business value, helps determine the practicality of a disposition and the urgency of any call to action. Application alignment is factored in when assessing redundancies and has a separate set of dispositions.

    Populate roadmap example

    The image contains an example of the populate roadmap.

    ARE YOU READY TO GET STARTED?

    Phase 1

    Lay Your Foundations

    Phase 1

    1.1 Assess Your Current Application Portfolio

    1.2 Determine Narrative

    1.3 Define Goals and Metrics

    1.4 Define Application Categories

    1.5 Determine APM Steps and Roles

    Phase 2

    2.1 Populate Your Inventory

    2.2 Align to Business Capabilities

    Phase 3

    3.1 Assess Business Value

    3.2 Assess Technical Health

    3.3 Assess End-User Perspective

    3.4 Assess Total Cost of Ownership

    Phase 4

    4.1 Review APM Snapshot Results

    4.2 Review APM Foundations Results

    4.3 Determine Dispositions

    4.4 Assess Redundancies (Optional)

    4.5 Determine Dispositions for Redundant Applications (Optional)

    4.6 Prioritize Initiatives

    4.7 Determine Ongoing APM Cadence

    This phase involves the following participants:

    Applications Lead

    Key Corporate Stakeholders

    Additional Resources

    APM supports many goals

    Building an APM process requires a proper understanding of the underlying business goals and objectives of your organization’s strategy. Effectively identifying these drivers is paramount to gaining buy-in and the approval for any changes you plan to make to your application portfolio.

    After identifying these goals, you will need to ensure they are built into the foundations of your APM process.

    “What is most critical?” but also “What must come first?”

    Discover

    Improve

    Transform

    Collect Inventory

    Uncover Shadow IT

    Uncover Redundancies

    Anticipate Upgrades

    Predict Retirement

    Reduce Cost

    Increase Efficiency

    Reduce Applications

    Eliminate Redundancy

    Limit Risk

    Improve Architecture

    Modernize

    Enable Scalability

    Drive Business Growth

    Improve UX

    Assess your current application portfolio with Info-Tech’s APM Diagnostic Tool

    The image contains a screenshot of the APM Diagnostic Tool.

    One of the primary purposes of application portfolio management is to get what we know and need to know on paper so we can share a common vision and understanding of our portfolio. This enables better discussions and decisions with your application owners and stakeholders.

    1.1 Assess your current application portfolio with Info-Tech’s diagnostic tool

    Estimated time: 1 hour

    1. This tool provides visibility into your application portfolio and APM practices.
    2. Based on your assessment, you should gain a better understanding of whether the appropriate next steps are in application discovery, rationalization, or roadmapping.
    3. Complete the “Data Entry” worksheet in the Application Portfolio Management Diagnostic Tool (Excel).
    4. Review the “Results” worksheet to help inform and guide your next steps.

    Download the Application Portfolio Management Diagnostic Tool

    Input Output
    • Current APM program
    • Application landscape
    • APM current-state assessment
    Materials Participants
    • Application Portfolio Management Diagnostic Tool
    • Applications Lead

    1.1 Understanding the diagnostic results

    • Managed Apps are your known knowns and most of your portfolio.
    • Unmanaged and Unsanctioned Apps are known but have unknown risks and compliance. Bring these under IT support.
    • Unknown Apps are high risk and noncompliant. Prioritize these based on risk, cost, and use.
    The image contains a screenshot of the diagnostic APM tool.
    • APM is more than an inventory and assessment. A strong APM program provides ongoing visibility and insights to drive application improvement and value delivery.
    • Use your Sprawl Factors to identify process and organizational gaps that may need to be addressed.
    • Your APM inventory is only as good as the information in it. Use this chart to identify gaps and develop a path to define missing information.
    • APM is an iterative process. Use this state assessment to determine where to focus most of your current effort.

    Understand potential motivations for APM

    The value of APM is defined by how the information will be used to drive better decisions.

    Portfolio Governance

    Transformative Initiatives

    Event-Driven Rationalization

    Improves:

    • Spending efficiency
    • Risk
    • Retirement of aged and low-value applications
    • Business enablement

    Impact on your rationalization framework:

    • Less urgent
    • As rigorous as appropriate
    • Apply in-depth analysis as needed

    Enables:

    • Data migration or harmonization
    • Legacy modernization
    • Infrastructure/cloud migration
    • Standardizing platforms
    • Shift to cloud and SAAS

    Impact on your rationalization framework:

    • Time sensitive
    • Scope on impacted areas
    • Need to determine specific dispositions
    • Outcomes need to include detailed and actionable steps

    Responds to:

    • Mergers and acquisitions
    • Regulatory and compliance change
    • New applications
    • Application retirement by vendors
    • Changes in business operations
    • Security risks and BC/DR

    Impact on your rationalization framework:

    • Time constrained
    • Lots of discovery work
    • Primary focus on duplication
    • Increased process and system understanding

    Different motivations will influence the appropriate approach to and urgency of APM or, specifically, rationalizing the portfolio. When rationalizing is directly related to enabling or in response to a broader initiative, you will need to create a more structured approach with a formal budget and resources.

    1.2 Determine narrative

    Estimated time: 30 minutes-2 hours

    1. Open the “Narrative” tab in the APM Snapshot and Foundations Tool.
    2. Start by listing your prevailing IT pain points with the application portfolio. These will be the issues experienced predominantly by the IT team and not necessarily by the stakeholders. Be sure to distinguish pain points from their root causes.
    3. Determine an equivalent business pain point for each IT pain point. This should be how the problem manifests itself to business stakeholders and should include potential risks to the organization is exposed to.
    4. Determine the business goal for each business pain point. Ideally, these are established organizational goals that key decision-makers will recognize. These goals should address the business pain points you have documented.
    5. Determine the technical objective for each business goal. These speak to the general corrections or enhancements to the portfolio required to accomplish the business goals.
    6. Use the “Narrative - Matrix” worksheet to group items into themes if needed.

    Record the results in the APM Snapshot and Foundations Tool

    Input Output
    • Familiarity with application landscape
    • Organizational context and strategic artifacts
    • Narrative for application portfolio transformation
    Materials Participants
    • APM Snapshot and Foundations Tool
    • Application Portfolio Manager

    Connect your pains to what the business cares about to find the most effective narrative

    Root Cause

    IT Pain Points

    Business Pain Points

    Business Goals

    Narrative

    Technical Objectives

    Sprawl

    Shadow IT/decentralized oversight

    Neglect over time

    Poor delivery processes

    Back-End Complexity

    Disparate Data/Apps

    Poor Architectural Fit

    Redundancy

    Maintenance Demand/
    Resource Drain

    Low Maintainability

    Technical Debt

    Legacy, Aging, or Expiring Apps

    Security Vulnerabilities

    Unsatisfied Customers

    Hurdles to Growth/Change

    Poor Business Analytics

    Process Inefficiency

    Software Costs

    Business Continuity Risk

    Data Privacy Risk

    Data/IP Theft Risk

    Poor User Experience

    Low-Value Apps

    Scalability

    Flexibility/Agility

    Data-Driven Insights

    M&A Transition

    Business Unit Consolidation/ Centralization

    Process Improvement

    Process Modernization

    Cost Reduction

    Stability

    Customer Protection

    Security

    Employee Enablement

    Business Enablement

    Innovation

    Create Strategic Alignment

    Identify specific business capabilities that are incompatible with strategic initiatives.

    Reduce Application Intensity

    Highlight the capabilities that are encumbered due to functional overlaps and complexity.

    Reduce Software Costs

    Specific business capabilities come at an unnecessarily or disproportionately high cost.

    Mitigate Business Continuity Risk

    Specific business capabilities are at risk of interruption or stoppages due to unresolved back-end issues.

    Mitigate Security Risk

    Specific business capabilities are at risk due to unmitigated security vulnerabilities or breaches.

    Increase Satisfaction Applications

    Specific business capabilities are not achieving their optimal business value.

    Platform Standardization

    Platform Standardization Consolidation

    Data Harmonization

    Removal/Consolidation of Redundant Applications

    Legacy Modernization

    Application Upgrades

    Removal of Low-Value Applications

    1.3 Define goals and metrics

    Estimated time: 1 hour

    1. Determine the motivations behind APM. You may want to collect and review any of the organization’s strategic documents that provide additional context on previously established goals.
    2. With the appropriate stakeholders, discuss the goals of APM. Try to label your goals as either:
      1. Short term: Refers to immediate goals used to represent the progress of APM activities. Likely these goals are more IT-oriented
      2. Long term: Refers to broader and more distant goals more related to the impact of APM. These goals tend to be more business-oriented.
    3. To help clearly define your goals, discuss appropriate metrics for each goal. Often these metrics can be expressed as:
      1. Leading indicators: Metrics used to gauge the success of your short-term goals and the progress of APM activities.
      2. Lagging indicators: Metrics used to gauge the success of your long-term goals.

    Record the results in the APM Snapshot and Foundations Tool

    Input Output
    • Overarching organizational strategy
    • IT strategy
    • Defined goals and metrics for APM
    Materials Participants
    • Whiteboard
    • Markers
    • APM Snapshot and Foundations Tool
    • Applications Lead
    • Key Corporate Stakeholders

    1.3 Define goals and metrics: Example

    Goals

    Metric

    Target

    Short Term

    Improve ability to inform the business

    Leading Indicators

    • Application inventory with all data fields completed
    • Applications with recommended dispositions
    • 80% of portfolio

    Improve ownership of applications

    • Applications with an assigned business and technical owner
    • 80% of portfolio

    Reduce costs of portfolio

    • TCO of full application portfolio
    • The number of recovered/avoided software licenses from retired apps
    • Reduce by 5%
    • $50,000

    Long Term

    Migrate platform

    Lagging Indicators

    • Migrate all applications
    • Total value change in on-premises apps switched to SaaS
    • 100% of applications
    • Increase 50%

    Improve overall satisfaction with portfolio

    • End-user satisfaction rating
    • Increase 25%

    Become more customer-centric

    • Increased sales
    • Increased customer experience
    • Increase 35%

    “Application” doesn’t have the same meaning to everyone

    The image contains a picture of Martin Fowler.

    Code: A body of code that's seen by developers as a single unit.

    Functionality: A group of functionality that business customers see as a single unit.

    Funding: An initiative that those with the money see as a single budget.

    ?: What else?

    “Essentially applications are social constructions.

    Source: Martin Fowler

    APM focuses on business applications.

    “Software used by business users to perform a business function.”

    – ServiceNow, 2020

    Unfortunately, that definition is still quite vague.

    You must set boundaries and scope for “application”

    1. Many individual items can be considered applications on their own or components within or associated with an application.

    2. Different categories of applications may be out of scope or handled differently within the activities and artifacts of APM.

    Different categories of applications may be out of scope or handled differently within the activities and artifacts of APM.

    • Interface
    • Software Component
    • Supporting Software
    • Platform
    • Presentation Layer
    • Middleware
    • Micro Service
    • Database
    • UI
    • API
    • Data Access/ Transfer/Load
    • Operating System

    Apps can be categorized by generic categories

    • Enterprise Applications
    • Unique Function-Specific Applications
    • Productivity Tools
    • Customer-Facing Applications
    • Mobile Applications

    Apps can be categorized by bought vs. built or install types

    • Custom
    • On-Prem
    • Off the Shelf
    • SaaS
    • Hybrid
    • End-User-Built Tools

    Apps can be categorized by the application family

    • Parent Application
    • Child Application
    • Package
    • Module
    • Suite
    • Component (Functional)

    Apps can be categorized by the group managing them

    • IT-Managed Applications
    • Business-Managed Applications (Shadow IT)
    • Partner/External Applications

    Apps can be categorized by tiers

    • Mission Critical
    • Tier 2
    • Tier 3

    Set boundaries on what is an application or the individual unit that you’re making business decisions on. Also, determine which categories of applications are in scope and how they will be included in the activities and artifacts of APM. Use your product families defined in Deliver Digital Products at Scale to help define your application categories, groups, and boundaries.

    1.4 Define application categories

    Estimated time: 1 hour

    1. Review the items listed on the previous slide and consider what categories provide the best initial grouping to help organize your rationalization and dispositions. Update the category list to match your application groupings.
    2. Identify the additional categories you need to manage in your application portfolio.
    3. For each category, establish or modify a description or definition and provide examples that exist in your current portfolio.
    4. For each category, answer:
      1. Will these be documented in the application inventory?
      2. Will these be included in application rationalization? Think about if this item will be assigned a TCO, value score, and, ultimately, a disposition.
      3. Will these be listed in the application portfolio roadmap?
    5. If you completed Deliver Digital Products at Scale, use your product families to help define your application categories.

    Record the results in the APM Snapshot and Foundations Tool

    InputOutput
    • Working list of applications
    • Definitions and guidelines for which application categories are in scope for APM
    MaterialsParticipants
    • Whiteboard and markers
    • APM Snapshot and Foundations Tool
    • Applications Lead
    • Key Corporate Stakeholders

    1.4 APM worksheet data journey map

    The image contains a screenshot of the APM worksheet data journey map.

    1.4 Define application categories: Example

    Category

    Definition/Description

    Examples

    Documented in your application inventory?

    Included in application rationalization?

    Listed in your application portfolio roadmap?

    Business Application

    End-user facing applications that directly enable specific business functions. This includes enterprise-wide and business-function-specific applications. Separate modules will be considered a business application when appropriate.

    ERP system, CRM software, accounting software

    Yes

    Yes. Unless currently in dev. TCO of the parent application will be divided among child apps.

    Yes

    Software Components

    Back-end solutions are self-contained units that support business functions.

    ETL, middleware, operating systems

    No. Documentation in CMDB. These will be listed as a dependency in the application inventory.

    No. These will be linked to a business app and included in TCO estimates and tech health assessments.

    No

    Productivity Tools

    End-user-facing applications that enable standard communication of general document creation.

    MS Word, MS Excel, corporate email

    Yes

    No

    Yes

    End-User- Built Microsoft Tools

    Single instances of a Microsoft tool that the business has grown dependent on.

    Payroll Excel tool, Access databases

    No. Documentation in Business Tool Glossary.

    No No

    Partner Applications

    Partners or third-party applications that the business has grown dependent on but are internally owned or managed.

    Supplier’s ERP portal, government portal

    No No

    Yes

    Shadow IT

    Business-managed applications.

    Downloaded tools

    Yes

    Yes. However, just from a redundancy perspective.

    Yes

    The roles in APM rarely exist; you need to adapt

    Application Portfolio Manager

    • Responsible for the health and evolution of the application portfolio.
    • Facilitates the rationalization process.
    • Compiles and assesses application information and recommends and supports key decisions regarding the direction of the applications.
    • This is rarely a dedicated role even in large enterprises. For small enterprises, this should be an IT employee at a manager level – an IT manager or operations manager.

    Business Owner

    • Responsible for managing individual applications on a functional level and approves and prioritizes projects.
    • Provides business process or functional subject matter expertise for the assessment of applications.
    • For small enterprises, this role is rarely defined, but the responsibility should exist. Consider the head of a business unit or a process owner as the owner of the application.

    Support Owner

    • Responsible for the maintenance and management of individual applications.
    • Provides technical information and subject matter expertise for the assessment of an application.
    • For small enterprises, this would be those responsible for maintaining the application and those responsible for its initial implementation. Often support responsibilities are external, and this role will be more of a vendor manager.

    Project Portfolio Manager

    • Responsible for intake, planning, and coordinating the resources that deliver any changes.
    • The body that consumes the results of rationalization and begins planning any required action or project.
    • For small enterprises, the approval process can come from a steering committee but it is often less formal. Often a smaller group of project managers facilitates planning and coordination and works closely with the delivery leads.

    Corner-of-the-Desk Approach

    • No one is explicitly dedicated to building a strategy or APM practices.
    • Information is collected whenever the applications team has time available.
    • Benefits are pushed out and the value is lost.

    Dedicated Approach

    • The initiative is given a budget and formal agenda.
    • Roles and responsibilities are assigned to team members.

    The high-level steps of APM present some questions you need to answer

    Build Inventory

    Create the full list of applications and capture all necessary attributes.

    • Who will build the inventory?
    • Do you know all your applications (Shadow IT)?
    • Do you know your applications’ functionality?
    • Do you know where your applications overlap?
    • Who do you need to consult with to fill in the gaps?
    • Who will provide specific application information?

    Collect & Compile

    Engage with appropriate SMEs and collect necessary data points for rationalization.

    • Who will collect and compile the data points for rationalization?
    • What are the specific data points?
    • Are some of the data points currently documented?
    • Who will provide specific data points on technical health, cost, performance, and business value?
    • Who will determine what business value is?

    Assess & Recommend

    Apply rationalization framework and toolset to determine dispositions.

    • Who will apply a rationalization tool or decision-making framework to generate dispositions for the applications?
    • Who will modify the tool or framework to ensure results align to the goals of the organization?
    • Who will define any actions or projects that result from the rationalization? And who needs to be consulted to assess the feasibility of any potential project?

    Validate & Roadmap

    Present dispositions for validation and communicate any decisions or direction for applications.

    • Who will present the recommended disposition, corrective action, or new project to the appropriate decision maker?
    • Who is the appropriate decision maker for application changes or project approval?
    • What format is recommended (idea, proposal, business case) and what extra analysis is required?
    • Who needs to be consulted regarding the potential changes?

    1.5 Determine APM steps and roles (SIPOC)

    Estimated time: 1-2 hours

    1. Begin by comparing Info-Tech’s list of common APM roles to the roles that exist in your organization with respect to application management and ownership.
    2. There are four high-level steps for APM: build inventory, collect & compile, assess & recommend, and validate & roadmap. Apply the SIPOC (Supplier, Input, Process, Output, Customer) model by completing the following for each step:
      1. In the Process column, modify the description, if necessary. Identify who is responsible for performing the step.
      2. In the Inputs column, modify the list of inputs.
      3. In the Suppliers column, identify who must be included to provide the inputs.
      4. In the Outputs column, modify the list of outputs.
      5. In the Customers column, identify who consumes the outputs.
    3. (Optional) Outline how the results of APM will be consumed. For example, project intake or execution, data or platform migration, application or product management, or whichever is appropriate.

    Record the results in the APM Snapshot and Foundations Tool

    Input Output
    • Existing function and roles regarding application delivery, management, and ownership
    • Scope of APM
    • Responsibilities assigned to your roles
    Materials Participants
    • Whiteboard and markers
    • “Supporting Activities – SIPOC” worksheet in the APM Snapshot and Foundations Tool
    • Applications Lead
    • Key Corporate Stakeholders

    1.5 Determine steps and roles

    Suppliers

    Inputs

    Process

    Outputs

    Customers

    • Applications Manager
    • Operations Manager
    • Business Owners
    • IT Team
    • List of applications
    • Application attributes
    • Business capabilities

    Build Inventory

    Create the full list of applications and capture all necessary attributes.

    Resp: Applications Manager & IT team member

    • Application inventory
    • Identified redundancies
    • Whole organization
    • Applications SMEs
    • Business Owners
    • Support Owners & Team
    • End Users
    • Application inventory
    • Existing documentation
    • Additional collection methods
    • Knowledge of business value, cost, and performance for each application

    Collect & Compile

    Engage with appropriate SMEs and collect necessary data points for rationalization.

    Resp: IT team member

    • Data points of business value, cost, and performance for each application
    • Applications Manager
    • Applications Manager
    • Defined application rationalization framework and toolset
    • Data points of business value, cost, and performance for each application

    Assess & Recommend

    Apply rationalization framework and toolset to determine dispositions.

    Resp: Applications Manager

    • Assigned disposition for each application
    • New project ideas for applications
    • Business Owners
    • Steering Committee
    • Business Owners
    • Steering Committee
    • Assigned disposition for each application
    • New project ideas for applications
    • Awareness of goals and priorities
    • Awareness of existing projects and resources capacity

    Validate & Roadmap

    Present dispositions for validation and communicate any decisions or direction for applications.

    Resp: Applications Manager

    • Application portfolio roadmap
    • Confirmed disposition for each application
    • Project request submission
    • Whole organization
    • Applications Manager
    • Solutions Engineer
    • Business Owner
    • Project request submission
    • Estimated cost
    • Estimated value or ROI

    Project Intake

    Build business case for project request.

    Resp: Project Manager

    • Approved project
    • Steering Committee

    Planning your APM modernization journey steps

    Discovery Rationalization Disposition Roadmap

    Enter your pilot inventory.

    • Optional Snapshot: Populate your desired snapshot grouping lists (departments, functions, groups, capabilities, etc.).

    Score your pilot apps to refine your rationalization criteria and scoring.

    • Score 3 to 9 apps to adjust and get comfortable with the scoring.
    • Validate scoring with the remaining apps in your pilot group. Refine and finalize the criteria and scoring descriptions.
    • Optional Snapshot: Use the Group Alignment Matrix to match your grouping list to select which apps support each grouping item.

    Determine recommended disposition for each application.

    • Review and adjust the disposition recommendations on the “Disposition Options” worksheet and set your pass/fail threshold.
    • Review your apps on the “App Rationalization Results” worksheet. Update (override) the recommended disposition and priority if needed.

    Populate your application roadmap.

    • Indicate programs, projects, initiatives, or releases that are planned for each app.
    • Update the priority based on the initiative.
    • Use the visual roadmap to show high-level delivery phases.

    Phase 2

    Improve Your Inventory

    Phase 1

    1.1 Assess Your Current Application Portfolio

    1.2 Determine Narrative

    1.3 Define Goals and Metrics

    1.4 Define Application Categories

    1.5 Determine APM Steps and Roles

    Phase 2

    2.1 Populate Your Inventory

    2.2 Align to Business Capabilities

    Phase 3

    3.1 Assess Business Value

    3.2 Assess Technical Health

    3.3 Assess End-User Perspective

    3.4 Assess Total Cost of Ownership

    Phase 4

    4.1 Review APM Snapshot Results

    4.2 Review APM Foundations Results

    4.3 Determine Dispositions

    4.4 Assess Redundancies (Optional)

    4.5 Determine Dispositions for Redundant Applications (Optional)

    4.6 Prioritize Initiatives

    4.7 Determine Ongoing APM Cadence

    This phase involves the following participants:

    • Applications Lead
    • Applications Team

    Additional Resources

    Document Your Business Architecture

    Industry Reference Architectures

    Application Capability Template

    Pre-step: Collect your applications

    1. Consult with your IT team and leverage any existing documentation to gather an initial list of your applications.
    2. Build an initial working list of applications. This is just meant to be a starting point. Aim to include any new applications in procurement, implementation, or development.
    3. The rationalization and roadmapping phases are best completed when iteratively focusing on manageable groups of applications. Group your applications into subsets based on shared subject matter experts. Likely this will mean grouping applications by business units.
    4. Select a subset to be the first group of applications that will undergo the activities of rationalization and roadmapping to refine your APM processes, scoring, and disposition selection.

    Info-Tech Best Practice

    The more information you plan to capture, the larger the time and effort, especially as you move along toward advanced and strategic items. Capture the information most aligned to your objectives to make the most of your investment.

    If you completed Deliver Digital Products at Scale, use your product families and products to help define your applications.

    Learn more about automated application discovery:
    High Application Satisfaction Starts With Discovering Your Application Inventory

    Discover your applications

    The image contains a screenshot of examples of applications that support APM.

    2.1 Populate your inventory

    Estimated time: 1-4 hours per group

    1. Review Info-Tech’s list of application inventory attributes.
    2. Open the “Application Inventory Details” tab of the APM Snapshot and Foundations Tool. Modify, add, or omit attributes.
    3. For each application, populate your prioritized data fields or any fields you know at the time of discovery. You will complete all the fields in future iterations.
    4. Complete this the best you can based on your team’s familiarity and any readily available documentation related to these applications.
    5. Use the drop-down list to select Enabling, Redundant/Overlapping, and Dependent apps. This will be used to help determine dispositions and comparisons.
    6. Highlight missing information or placeholder values that need to be verified.

    Record the results in the APM Snapshot and Foundations Tool

    Input Output
    • Working list of applications
    • Determined attributes for inventory
    • Populated inventory
    Materials Participants
    • APM Snapshot and Foundations Tool
    • Applications Lead
    • Any Applications Team Members

    2.1 APM worksheet data journey map

    The image contains a screenshot of the APM worksheet data journey map.

    Why is the business capability so important?

    For the purposes of an inventory, business capabilities help all stakeholders gain a sense of the functionality the application provides.

    However, the true value of business capability comes with rationalization.

    Upon linking all the organization’s applications to a standardized and consistent set of business capabilities, you can then group your applications based on similar, complementary, or overlapping functionality. In other words, find your redundancies and consolidation opportunities.

    Important Consideration

    Defining business capabilities and determining the full extent of redundancy is a challenging undertaking and often is a larger effort than APM all together.

    Business capabilities should be defined according to the unique functions and language of your organization, at varying levels of granularity, and ideally including target-state capabilities that identify gaps in the future strategy.

    This blueprint provides a simplified and generic list for the purpose of categorizing similar functionality. We strongly encourage exploring Document Your Business Architecture to help in the business capability defining process, especially when visibility into your portfolio and knowledge of redundancies is poor.

    The image contains a screenshot of the business capability scenarios.

    For a more detailed capability mapping, use the Application Portfolio Snapshot and the worksheets in your current workbook.

    What is a business capability map?

    The image contains a screenshot of a business capability map.

    A business capability map (BCM) is an abstraction of business operations that helps describe what the enterprise does to achieve its vision, mission, and goals. Business capabilities are the building blocks of the enterprise. They are typically defined at varying levels of granularity and include target-state capabilities that identify gaps in the future strategy. These are the people, process, and tool units that deliver value to your teams and customers.

    Info-Tech’s Industry Coverage and Reference Architectures give you a head start on producing a BCM fit for your organization. The visual to the left is an example of a reference architecture for the retail industry.

    These are the foundational piece for our Application Portfolio Snapshot. By linking capabilities to your supporting applications, you can better visualize how the portfolio supports the organization at a single glance. More specifically, you can highlight how issues with the portfolio are impacting capability delivery.

    Reminder: Best practices imply that business capabilities are methodologically defined by business stakeholders and business architects to capture the unique functions and language of your organization.

    The approach laid out in this service is about applying minimal time and effort to make the case for proper investment into the best practices, which can include creating a tailored BCM. Start with a good enough example to produce a useful visual and generate a positive conversation toward resourcing and analyses.

    We strongly encourage exploring Document Your Business Architecture and the Application Portfolio Snapshot to understand the thorough methods and tactics for BCM.

    Why perform a high-level application alignment before rationalization?

    Having to address redundancy complicates the application rationalization process. There is no doubt that assessing applications in isolation is much easier and allows you to arrive at dispositions for your applications in a timelier manner.

    Rationalization has two basic steps: first, collect and compile information, and second, analyze that information and determine a disposition for each application. When you don’t have redundancy, you can analyze an application and determine a disposition in isolation. When you do have redundancies, you need to collect information for multiple applications, likely across departments or lines of business, then perform a comparative analysis.

    Most likely your approach will fall somewhere between the examples below and require a hybrid approach.

    Benefits of a high-level application alignment:

    • Review the degree of redundancy across your portfolio.
    • Understand the priority areas for rationalization and the sequence of information collection.

    The image contains a screenshot of a timeline of rationalization effort.

    2.2 Align apps to capabilities and functions

    Estimated time: 1-4 hours per grouping

    The APM tool provides up to three different grouping comparisons to assess how well your applications are supporting your enterprise. Although business capabilities are important, identify your organizational perspectives to determine how well your portfolio supports these functions, departments, or value streams. Each grouping should be a consistent category, type, or arrangement of applications.

    1. Enter the business capabilities, from either your own BCM or the Info-Tech reference architectures, into the Business Capability column under Grouping 1.
    2. Open the “Group 1 Alignment Matrix” worksheet in the APM Snapshot and Foundations Tool.
    3. For each application’s row, enter an “X” in the column of a capability that the application supports.
    4. Optionally, repeat these steps under Grouping 2 and 3 for each value stream, department, function, or business unit where you’d like to assess application support. Note: To use Grouping 3, unhide the columns on the “Application and Group Lists” worksheet and unhide the worksheet “Grouping 3 Alignment Matrix.”

    Record the results in the APM Snapshot and Foundations Tool

    InputOutput
    • Application inventory
    • List of business capabilities, Info-Tech Reference Architecture capabilities, departments, functions, divisions, or value streams for grouping comparison
    • Assigned business capabilities to applications
    MaterialsParticipants
    • Whiteboard and markers
    • APM Snapshot and Foundations Tool
    • Applications Lead
    • Any Applications Team Members

    2.2 APM worksheet data journey map

    The image contains a screenshot of the APM worksheet data journey map.

    2.2 Aligning applications to groups example

    Alignment Matrix: Identify applications supporting each capability or function.

    Capability, Department, or Function 1

    Capability, Department, or Function 2

    Capability, Department, or Function 3

    Capability, Department, or Function 4

    Capability, Department, or Function 5

    Capability, Department, or Function 6

    Application A

    x

    Application B

    x

    Application C

    x

    Application D

    x

    Application E

    x x

    Application F

    x

    Application G

    x

    Application H

    x

    Application I

    x

    Application J

    x

    In this example:

    BC 1 is supported by App A

    BC 2 is supported by App B

    BC 3 is supported by Apps C & D

    BCs 4 & 5 are supported by App E

    BC 6 is supported by Apps F-G. BC 6 shows an example of potential redundancy and portfolio complexity.

    The APM tool supports three different Snapshot groupings. Repeat this exercise for each grouping.

    Align application to capabilities – tool view

    The image contains screenshots of the align application to capabilities - tool view

    Phase 3

    Rationalize Your Applications

    Phase 1

    1.1 Assess Your Current Application Portfolio

    1.2 Determine Narrative

    1.3 Define Goals and Metrics

    1.4 Define Application Categories

    1.5 Determine APM Steps and Roles

    Phase 2

    2.1 Populate Your Inventory

    2.2 Align to Business Capabilities

    Phase 3

    3.1 Assess Business Value

    3.2 Assess Technical Health

    3.3 Assess End-User Perspective

    3.4 Assess Total Cost of Ownership

    Phase 4

    4.1 Review APM Snapshot Results

    4.2 Review APM Foundations Results

    4.3 Determine Dispositions

    4.4 Assess Redundancies (Optional)

    4.5 Determine Dispositions for Redundant Applications (Optional)

    4.6 Prioritize Initiatives

    4.7 Determine Ongoing APM Cadence

    This phase involves the following participants:

    • Applications Lead
    • Application SMEs

    Additional Resources

    Phase pre-step: Sequence rationalization assessments appropriately

    Use the APM Snapshot results to determine APM iterations

    • Application rationalization requires an iterative approach.
    • Review your application types and alignment from Phase 2 to begin to identify areas of overlapping or redundant applications.
    • Sequence the activities of Phase 3 based on whether you have a:
      • Redundant Portfolio
        • Use the APM Snapshot to prioritize analysis by grouping.
        • Complete the application functional analysis.
        • Use the “Application Comparison” worksheet to aid your comparison of application subsets.
        • Update application dispositions and roadmap initiatives.
      • Non-Redundant Portfolio
        • Use the APM Snapshot to prioritize analysis by grouping.
        • Update application dispositions and roadmap initiatives.

    The image contains a screenshot of a timeline of rationalization effort.

    Phase pre-step: Are the right stakeholders present?

    Make sure you have the right people at the table from the beginning.

    • Application rationalization requires specific stakeholders to provide specific data points.
    • Ensure your application subsets are grouped by shared subject matter experts. Ideally, these are grouped by business units.
    • For each subset, identify the appropriate SMEs for the five areas of rationalization criteria.
    • Communicate and schedule interviews with groups of stakeholders. Inform them of additional information sources to have readily available.
    • (Optional) This phase’s activities follow the clockwise sequence of the diagram to the right. Reorder the sequence of activities based on overlaps of availability in subject matter expertise.

    Application

    Rationalization

    Additional Information Sources

    Ideal Stakeholders

    • KPIs

    Business Value

    • Business Application/Product Owners
    • Business Unit/ Process Owners
    • Survey Results

    End User

    • Business Application/ Product Owners
    • Key/Power Users
    • End Users
    • General Ledger
    • Service Desk
    • Vendor Contracts

    TCO

    • Operations/Maintenance Manager
    • Vendor Managers
    • Finance & Acct.
    • Service Desk
    • ALM Tools

    Technical Health

    • Operations/ Maintenance Manager
    • Solution Architect
    • Security Manager
    • Dev. Manager
    • Capability Maps
    • Process Maps

    Application Alignment

    • Business Unit/ Process Owners

    Rationalize your applications

    The image contains screenshots of diagrams that reviews building your APM journey map.

    One of the principal goals of application rationalization is determining dispositions

    Disposition: The intended strategic direction or course of action for an application.

    Directionless portfolio of applications

    Assigned dispositions for individual apps

    High-level examples:

    The image contains a screenshot of an image that demonstrates a directionless portfolio of applications.

    Maintain: Keep the application but adjust its support structure.

    The image contains screenshots of a few images taken from the directionless application to demonstrate the text above.

    Modernize: Create a new project to address an inadequacy.

    The image contains screenshots of a few images taken from the directionless application to demonstrate the text above.

    Consolidate: Create a new project to reduce duplicate functionality.

    The image contains screenshots of a few images taken from the directionless application to demonstrate the text above.

    Retire: Phase out the application.

    The image contains screenshots of a few images taken from the directionless application to demonstrate the text above.

    Application rationalization provides insight

    Directionless portfolio of applications

    Info-Tech’s Five Lens Model

    Assigned dispositions for individual apps

    The image contains a screenshot of an example of directionless portfolio of applications.

    Application Alignment

    Business Value

    Technical Health

    End-User Perspective

    Total Cost of Ownership (TCO)

    Maintain: Keep the application but adjust its support structure.

    Modernize: Create a new initiative to address an inadequacy.

    Consolidate: Create a new initiative to reduce duplicate functionality.

    Retire: Phase out the application.

    Disposition: The intended strategic direction or implied course of action for an application.

    How well do your apps support your core functions and teams?

    How well are your apps aligned to value delivery?

    Do your apps meet all IT quality standards and policies?

    How well do your apps meet your end users’ needs?

    What is the relative cost of ownership and operation of your apps?

    Application rationalization requires the collection of several data points that represent these perspectives and act as the criteria for determining a disposition for each of your applications.

    Disposition: The intended strategic direction or implied course of action for an application.

    3.1-3.4 APM worksheet data journey map

    The image contains a screenshot of the APM worksheet data journey map.

    Assessing application business value

    The Business Business Value of Applications IT
    Keepers of the organization’s mission, vision, and value statements that define IT success. The business maintains the overall ownership and evaluation of the applications. Technical subject matter experts of the applications they deliver and maintain. Each IT function works together to ensure quality applications are delivered to stakeholder expectations.

    First, the authorities on business value need to define and weigh their value drivers that describe the priorities of the organization.

    This will then allow the applications team to apply a consistent, objective, and strategically aligned evaluation of applications across the organization.

    In this context…business value is the value of the business outcome that the application produces and how effective the application is at producing that outcome.

    Business value IS NOT the user’s experience or satisfaction with the application.

    Review the value drivers of your applications

    The image contains a screenshot of a the business value matrix.

    Financial vs. Human Benefits

    Financial benefits refer to the degree to which the value source can be measured through monetary metrics and are often quite tangible.

    Human benefits refer to how an application can deliver value through a user’s experience.

    Inward vs. Outward Orientation

    Inward orientation refers to value sources that have an internal impact and improve your organization’s effectiveness and efficiency in performing its operations.

    Outward orientation refers to value sources that come from your interaction with external factors, such as the market or your customers.

    Increased Revenue

    Reduced Costs

    Enhanced Services

    Reach Customers

    Application functions that are specifically related to the impact on your organization’s ability to generate revenue and deliver value to your customers.

    Reduction of overhead. The ways in which an application limits the operational costs of business functions.

    Functions that enable business capabilities that improve the organization’s ability to perform its internal operations.

    Application functions that enable and improve the interaction with customers or produce market information and insights.

    3.1 Assess business value

    Estimated time: 1 -4 hours

    1. Review Info-Tech’s four quadrants of business value: increase revenue/value, reduce costs, enhance services, and reach customers. Edit your value drivers, description, and scoring on the “Rationalization Inputs” worksheet. For each value driver, update the key indicators specific to your organization’s priorities. When editing the scoring descriptions, keep only the one you are using.
    2. (Optional) Add an additional value driver if your organization has distinct value drivers (e.g. compliance, sustainability, innovation, and growth).
    3. For each application, score on a scale of 0 to 5 how impactful the application is for each value driver. Use the indicators set in Phase 1 to guide your scoring.
    4. For each value driver, adjust the criteria weighting to match its relative importance to the organization. Start with a balanced or low weighting. Adjust the weights to ensure that the category score matches your relative values and priorities.

    Record the results in the APM Snapshot and Foundations Tool

    InputOutput
    • Knowledge of organizational priorities
    • (Optional) Existing mission, vision, and value statements
    • Scoring scheme for assessing business value
    MaterialsParticipants
    • Whiteboard and markers
    • APM Snapshot and Foundations Tool
    • Applications Lead
    • Key Corporate Stakeholders

    3.1 Weigh value drivers: Example

    The image contains a screenshot example of the weigh value drivers.

    For additional support in implementing a balanced value framework, refer to Build a Value Measurement Framework.

    Understand the back end and technical health of your applications

    Technical health identifies the extent of technology risk to the organization.

    MAINTAINABILITY (RAS)

    RAS refers to an app’s reliability, availability, and serviceability. How often, how long, and how difficult is it for your resources to keep an app functioning, and what are the resulting continuity risks? This can include root causes of maintenance challenges.

    SECURITY

    Applications should be aligned and compliant with ALL security policies. Are there vulnerabilities or is there a history of security incidents? Remember that threats are often internal and non-malicious.

    ADAPTABILITY

    How easily can the app be enhanced or scaled to meet changes in business needs? Does the app fit within the business strategy?

    INTEROPERABILITY

    The degree to which an app is integrated with current systems. Apps require comprehensive technical planning and oversight to ensure they connect within the greater application architecture. Does the app fit within your enterprise architecture strategy?

    BUSINESS CONTINUITY/DISASTER RECOVERY

    The degree to which the application is compatible with business continuity/disaster recovery (BC/DR) policies and plans that are routinely tested and verified.

    Unfortunately, the business only cares about what they can see or experience. Rationalization is your opportunity to get risk on the business’ radar and gain buy-in for the necessary action.

    3.2 Assess technical health

    Estimated time: 1-4 hours

    1. Review Info-Tech’s suggested technical health criteria. Edit your criteria, descriptions, and scoring on the “Rationalization Inputs” worksheet. For each criterion, update the key indicators specific to your organization’s priorities.
    2. For each application, score on a scale of 1 to 5 on how impactful the application is for each criterion.
    3. For each criterion, adjust the weighting to match its relative importance to the organization. Start with a balanced or low weighting. Adjust the weights to ensure that the category score matches your relative values and priorities.
    InputOutput
    • Familiarity of technical health perspective for applications within this subset
    • Maintenance history, architectural models
    • Technical health scores for each application
    MaterialsParticipants
    • APM Snapshot and Foundations Tool
    • Technical SMEs
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    End users provide valuable perspective

    Your end users are your best means of determining front-end issues.

    Data Quality

    To what degree do the end users find the data quality sufficient to perform their role and achieve their desired outcome?

    Effectiveness

    To what degree do the end users find the application effective for performing their role and desired outcome?

    Usability

    To what degree do the end users find the application reliable and easy to use to achieve their desired outcome?

    Satisfaction

    To what degree are end users satisfied with the features of this application?

    What else matters to you?

    Tune your criteria to match your values and priorities.

    Info-Tech Best Practice

    When facing large user groups, do not make assumptions or use lengthy methods of collecting information. Use Info-Tech’s Application Portfolio Assessment to collect data by surveying your end users’ perspectives.

    3.3 Assess end-user perspective

    Estimated time: 1-4 hours

    1. Review Info-Tech’s suggested end-user perspective criteria. Edit your criteria, descriptions and scoring on the “Rationalization Inputs” worksheet. For each criterion, update the key indicators specific to your organization’s priorities.
    2. For each application, score on a scale of 1 to 5 on how impactful the application is for each criterion.
    3. For each criterion, adjust the weighting to match its relative importance to the organization. Start with a balanced or low weighting. Adjust the weights to ensure that the category score matches your relative values and priorities.
    InputOutput
    • Familiarity of end user’s perspective for applications within this subset
    • User satisfaction scores for each application
    MaterialsParticipants
    • APM Snapshot and Foundations Tool
    • Business Owners, Key Users
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    Consider the spectrum of application cost

    An application’s cost extends past a vendor’s fee and even the application itself.

    LICENSING AND SUBSCRIPTIONS: Your recurring payments to a vendor.

    Many commercial off-the-shelf applications require a license on a per-user basis. Review contracts and determine costs by looking at per-user or fixed rates charged by the vendor.

    MAINTENANCE COSTS: Your internal spending to maintain an app.

    These are the additional costs to maintain an application such as support agreements, annual maintenance fees, or additional software or hosting expenses.

    INDIRECT COSTS: Miscellaneous expenses necessary for an app’s continued use.

    Expenses like end-user training, developer education, and admin are often neglected, but they are very real costs organizations pay regularly.

    RETURN ON INVESTMENT: Perceived value of the application related to its TCO.

    Some of our most valuable applications are the most expensive. ROI is an optional criterion to account for the value and importance of the application.

    Info-Tech Best Practice

    The TCO assessment is one area where what you are considering the ”application” matters quite a bit. An application’s peripherals or software components need to be considered in your estimates. For additional help calculating TCO, use the Application TCO Calculator from Build a Rationalization Framework.

    3.4 Assess total cost of ownership

    Estimated time: 1-4 hours

    1. Review Info-Tech’s suggested TCO criteria. Edit your criteria, descriptions, and scoring on the “Rationalization Inputs” worksheet. For each criterion, update the key indicators specific to your organization’s priorities.
    2. For each application, score on a scale of 1 to 5 on how impactful the application is for each criterion.
    3. For each criterion, adjust the weighting to match its relative importance to the organization. Start with a balanced or low weighting. Adjust the weights to ensure that the category score matches your relative values and priorities.
    InputOutput
    • Familiarity with the TCO for applications within this subset
    • Vendor contracts, maintenance history
    • TCO scores for each application
    MaterialsParticipants
    • APM Snapshot and Foundations Tool
    • Business Owners, Vendor Managers, Operations Managers
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    Phase 4

    Populate Your Roadmap

    Phase 1

    1.1 Assess Your Current Application Portfolio

    1.2 Determine Narrative

    1.3 Define Goals and Metrics

    1.4 Define Application Categories

    1.5 Determine APM Steps and Roles

    Phase 2

    2.1 Populate Your Inventory

    2.2 Align to Business Capabilities

    Phase 3

    3.1 Assess Business Value

    3.2 Assess Technical Health

    3.3 Assess End-User Perspective

    3.4 Assess Total Cost of Ownership

    Phase 4

    4.1 Review APM Snapshot Results

    4.2 Review APM Foundations Results

    4.3 Determine Dispositions

    4.4 Assess Redundancies (Optional)

    4.5 Determine Dispositions for Redundant Applications (Optional)

    4.6 Prioritize Initiatives

    4.7 Determine Ongoing APM Cadence

    his phase involves the following participants:

    • Applications Lead
    • Delivery Leads

    Additional Resources

    Review your APM Snapshot

    The image contains a screenshot of examples of applications that support APM.

    4.1 Review your APM Snapshot results

    Estimated time: 1-2 hours

    1. The APM Snapshot provides a dashboard to support your APM program’s focus and as an input to demand planning. Unhide the “Group 3” worksheet if you completed the alignment matrix.
    2. For each grouping area, review the results to determine underperforming areas. Use this information to prioritize your application root cause analysis and demand planning. Use the key on the following slide to guide your analysis.
    3. Analysis guidance:
      1. Start with the quartile grouping to find areas scoring in Remediate or Critical Need and focus follow-up actions on these areas.
      2. Use the lens/category heat map to determine which lenses are underperforming. Use this to then look up the individual app scores supporting that group to identify application issues.
      3. Use the “Application Comparison” worksheet to select and compare applications for the group to make your review and comparison easier.
      4. Work with teams in the group to provide root cause analysis for low scores.
      5. Build a plan to address any apps not supported by IT.
    InputOutput
    • Application list
    • Application to Group mapping
    • Rationalization scores
    • Awareness of application support for each grouping

    Materials

    Participants
    • APM Snapshot and Foundations Tool
    • Business Owners
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    Interpreting your APM Snapshot

    The image contains a screenshot of the APM Snapshot with guides on how to interpret it.

    4.1 APM worksheet data journey map

    The image contains a screenshot of the AMP worksheet data journey map.

    Review your APM rationalization results

    The image contains a screenshot of examples of applications that support APM.

    4.2 Review your APM Foundations results

    Estimated time: 1-2 hours

    The APM Foundations Results dashboard (“App Rationalization Results” worksheet) provides a detailed summary of your relative app scoring to serve as input to demand planning.

    1. For each grouping, review the results to determine underperforming app support. Use this information to prioritize your application root cause analysis using the individual criteria scores on the “Rationalization Inputs” worksheet.
    2. Use guidance on the following example slides to understand each area of the results.
    3. Any applications marked as N/A for evaluation will display N/A on the results worksheet and will not be displayed in the chart. You can still enter dispositions.
    4. Use the column filters to compare a subset of applications or use the “App Comparison” worksheet to maintain an ongoing view by grouping, redundancy, or category.
    5. Any applications marked as N/A for evaluation will display N/A on the results worksheet and will not be displayed in the chart. You can still enter dispositions.
    InputOutput
    • Application list
    • Rationalization scores
    • Application awareness
    MaterialsParticipants
    • APM Snapshot and Foundations Tool
    • Business Owners
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    4.2 APM worksheet data journey map

    The image contains a screenshot of the AMP worksheet data journey map.

    Interpreting your APM Foundations results

    The image contains a screenshot of the APM Foundations results.

    Interpreting your APM Foundations chart

    The image contains a screenshot of the APM Foundations chart.

    Modernize your applications

    The image contains a screenshot of examples of applications that support APM.

    Apply Info-Tech’s 6 R’s Rationalization Disposition Model

    The image contains a screenshot of Info-Tech's 6 R's Rationalization Disposition Model.

    Disposition

    Description

    Reward

    Prioritize new features or enhancement requests and openly welcome the expansion of these applications as new requests are presented.

    Refresh

    Address the poor end-user satisfaction with a prioritized project. Consult with users to determine if UX issues require improvement to address satisfaction.

    Refocus

    Determine the root cause of the low value. Refocus, retrain, or refresh the UX to improve value. If there is no value found, aim to "keep the lights on" until the app can be decommissioned.

    Replace

    Replace or rebuild the application as technical and user issues are putting important business capabilities at risk. Decommission application alongside replacement.

    Remediate

    Address the poor technical health or risk with a prioritized project. Further consult with development and technical teams to determine if migration or refactoring is suited to address the technical issue.

    Retire

    Cancel any requested features and enhancements. Schedule the proper decommission and transfer end users to a new or alternative system if necessary.

    TCO, compared relatively to business value, helps determine the practicality of a disposition and the urgency of any call to action. Application alignment is factored in when assessing redundancies and has a separate set of dispositions.

    4.3 Determine dispositions

    Estimated time: 1-4 hours

    1. The Recommended Disposition and Priority fields are prepopulated from your scoring thresholds and options on the “Disposition Options” worksheet. You can update any individual application disposition or priority using the drop-down menu and it will populate your selection on the “Roadmap” worksheet.
    2. Question if that disposition is appropriate. Be sure to consider:
      1. TCO – cost should come into play for any decisions.
      2. Alignment to strategic goals set for the overarching organizational, IT, technology (infrastructure), or application portfolio.
      3. Existing organizational priorities or funded initiatives impacting the app.
    3. Some dispositions may imply a call to action, new project, or initiative. Ideate and/or discuss with the team any potential initiatives. You can use different dispositions and priorities on the “App Rationalization Results” and “Roadmap” worksheets.
    4. Note: Modify the list of dispositions on the “Disposition Options” worksheet as appropriate for your rationalization initiative. Any modifications to the Disposition column will be automatically updated in the “App Rationalization Results” and “Roadmap” worksheets.
    InputOutput
    • Rationalization results
    • Assigned dispositions for applications
    MaterialsParticipants
    • APM Snapshot and Foundations Tool
    • Business Owners
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    4.3 APM worksheet data journey map

    The image contains a screenshot of the worksheet data journey map.

    Redundancies require a different analysis and set of dispositions

    Solving application redundancy is a lot more complicated than simply keeping one application and eliminating the others.

    First, you need to understand the extent of the redundancy. The applications may support the same capability, but do they offer the same functions? Determine which apps offer which functions within a capability. This means you cannot accurately arrive at a disposition until you have evaluated all applications.

    Next, you need to isolate the preferred system. This is completed by comparing the same data points collected for rationalization and the application alignment analysis. Cost and coverage of all necessary functions become the more important factors in this decision-making process.

    Lastly, for the non-preferred redundant applications you need to determine: What will you do with the users? What will you do with the data? And what can you do with the functionality (can the actual coding be merged onto a common platform)?

    Disposition

    Description & Additional Analysis

    Call to Action (Priority)

    Keep & Absorb

    Higher value, health satisfaction, and cost than alternatives

    These are the preferred apps to be kept. However, additional efforts are still required to migrate new users and data and potentially configure the app to new processes.

    Application or Process Initiative

    (Moderate)

    Shift & Retire

    Lower value, health satisfaction, and cost than alternatives

    These apps will be decommissioned alongside efforts to migrate users and data to the preferred system.

    *Confirm there are no unique and necessary features.

    Process Initiative & Decommission

    (Moderate)

    Merge

    Lower value, health satisfaction, and cost than alternatives but still has some necessary unique features

    These apps will be merged with the preferred system onto a common platform.

    *Determine the unique and necessary features.

    *Determine if the multiple applications are compatible for consolidation.

    Application Initiative

    (Moderate)

    Compare groups of applications

    The image contains a screenshot of examples of applications that support APM.

    4.4 Assess redundancies (optional)

    Estimated rime: 1 hour per group

    This exercise is best performed after aligning business capabilities to applications across the portfolio and identifying your areas of redundancy. At this stage, this is still an information collection exercise, and it will not yield a consolidation-based disposition until applied to all relevant applications. Lastly, this exercise may still be at too high a level to outline the full details of redundancy, but it is still vital information to collect and a starting point to determine which areas require more concentrated analysis.

    1. Determine which areas of redundancy or comparisons are desired. Duplicate the “App Comparison” worksheet for each grouping or comparison.
    2. Extend the comparison to better identify redundancy.
      1. For each area of redundancy, identify the high-level features. Aim to limit the features to ten, grouping smaller features if necessary. SoftwareReviews can be a resource for identifying common features.
      2. Label features using the MoSCoW model: must have, should have, could have, will not have.
      3. For each application, identify which features they support. You can use the grouping alignment matrix as a template for feature alignment comparison. Duplicate the worksheet, unlock it, and replace the grouping cell references with your list of features.
    Input Output
    • Areas of redundancy
    • Familiarity with features for applications within this subset
    • Feature-level review of application redundancy
    Materials Participants
    • Whiteboard and markers
    • APM Snapshot and Foundations Tool
    • Business Owners
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    4.4 Assess redundancies (optional)

    Account Management

    Call Management

    Order/Transaction Processing

    Contract Management

    Lead/Opportunity Management

    Forecasting/Planning

    Customer Surveying

    Email Synchronization

    M M M M S S C W

    CRM 1

    CRM 2

    CRM 3

    4.5 Determine dispositions for redundant applications (optional)

    Estimated time: 1 hour per group

    1. Based on the feature-level assessment, determine if you can omit applications if they don’t truly overlap with other applications.
    2. Make a copy of the “App Comparison” worksheet and select the applications you want to compare based on your functional analysis.
    3. Determine the preferred application(s). Use the diagram to inform your decision. This may be the application closest to the top right (strong health and value). However, less expensive options or any options that provide a more complete set of features may be preferable.
    4. Open the “App Rationalization Results” worksheet. Update your disposition for each application.
    5. Use these updated dispositions to determine a call to action, new project, or initiative. Ideate and/or discuss with the team any potential initiatives. Update your roadmap with these initiatives in the next step.
    InputOutput
    • Feature-level review of application redundancy
    • Redundancy comparison
    • Assigned dispositions for redundant applications
    MaterialsParticipants
    • APM Snapshot and Foundations Tool
    • Business Owners
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    Compare application groups

    Group comparison can be used for more than just redundant/overlapping applications.

    The image contains a screenshot of images that demonstrate comparing application groups.

    Roadmaps are used for different purposes

    Roadmaps are used for different communication purposes and at varying points in your application delivery practice. Some use a roadmap to showcase strategy and act as a feedback mechanism that allows stakeholders to validate any changes (process 1). Others may use it to illustrate and communicate approved and granular elements of a change to an application to inform appropriate stakeholders of what to anticipate (process 2).

    Select Dispositions & Identify New Initiatives

    Add to Roadmap

    Validate Direction

    Plan Project

    Execute Project

    Select Dispositions & Identify New Initiatives

    • Project Proposal
    • Feasibility/ Estimation
    • Impact Assessment
    • Business Case
    • Initial Design

    Approve Project

    Add to Roadmap

    Execute Project

    The steps between selecting a disposition and executing on any resulting project will vary based on the organization’s project intake standards (or lack thereof).

    This blueprint focuses on building a strategic portfolio roadmap prior to any in-depth assessments related to initiative/project intake, approval, and prioritization. For in-depth support related to intake, approval, prioritization, or planning, review the following resources.

    The image contains a screenshot of the Deliver on your Digital Product Vision blueprint. The image contains a screenshot of the Deliver Digital Products at Scale blueprint.

    Determine what makes it onto the roadmap

    A roadmap should not be limited to what is approved or committed to. A roadmap should be used to present the items that need to happen and begin the discussion of how or if this can be put into place. However, not every idea should make the cut and end up in front of key stakeholders.

    The image contains a screenshot of steps to be taken to determine what makes it onto the roadmap.

    4.6 Prioritize initiatives

    Estimated time: 1-4 hours

    1. This is a high-level assessment to provide a sense of feasibility, practicality, and priority as well as an estimated timeline of a given initiative. Do not get lost in granular estimations. Use this as an input to your demand planning process.
    2. Enter the specific name or type of initiative.
      1. Process Initiative: Any project or effort focused on process improvements without technical modification to an app (e.g. user migration, change in SLA, new training program). Write the application and initiative name on a blue sticky note.
      2. App Initiative: Any project or effort involving technical modification to an app (e.g. refactoring, platform migration, feature addition or upgrade). Write the application and initiative name on a yellow sticky note.
      3. Decommission Initiative: Any project and related efforts to remove an app (e.g. migrating data, removal from server). Write the application and initiative name on a red sticky note.
    3. Prioritize the initiative to aid in demand planning. This is prepopulated from your selected application disposition, but you can set a different priority for the initiative here.
    4. Select the Initiative Phase in the timeline to show the intended schedule and sequencing of the initiative.
    Input Output
    • Assigned dispositions
    • Rationalization results
    • Prioritized initiatives
    Materials Participants
    • Whiteboard and markers
    • APM Snapshot and Foundations Tool
    • Delivery Leads
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    4.6 APM worksheet data journey map

    The image contains a screenshot of the worksheet data journey map.

    Populate roadmap example

    The image contains an example of the populate roadmap.

    Create a recurring update plan

    • Application inventories become stale before you know it. Build steps in your procurement process to capture the appropriate information on new applications. Also, build in checkpoints to revisit your inventory regularly to assess the accuracy of inventory data.
    • Rationalization is not one and done; it must occur with an appropriate cadence.
      • Business priorities change, which will impact the current and future value of your apps.
      • Now more than ever, user expectations evolve rapidly.
      • Application sprawl likely won’t stop, so neither will shadow IT and redundancies.
      • Obsolescence, growing technical debt, changing security threats, or shifting technology strategies are all inevitable, as is the gradual decline of an app’s health or technical fit.
    • An application’s disposition changes quicker than you think, and rationalization requires a structured cadence. You need to plan to minimize the need for repeated efforts. Conversely, many use preceding iterations to increase the analysis (e.g. more thorough TCO projections or more granular capability-application alignment).
    • Portfolio roadmaps require a cadence for both updates and presentations to stakeholders. Updates are often completed semiannually or quarterly to gauge the business adjustments that affect the timeline of the domain-specific applications. The presentation of a roadmap should be completed alongside meetings or gatherings of key decision makers.
    • M&A or other restructuring events will prompt the need to address all the above.

    The image contains a screenshot of chart to help determine frequency of updating your roadmap.

    Build your APM maturity by taking the right steps at the right time

    The image contains a diagram to demonstrate the steps taken to build APM maturity.

    Info-Tech’s Build an Application Rationalization Framework provides additional TCO and value tools to help build out your portfolio strategy.

    APM is an iterative and evergreen process

    APM provides oversight and awareness of your application portfolio’s performance and support for your business operations and value delivery to all users and customers.

    Determine scope and categories Build your list of applications and capabilities Score each application based on your values Determine outcomes based on app scoring and support for capabilities

    1. Lay Your Foundations

    • 1.1 Assess the state of your current application portfolio
    • 1.2 Determine narrative
    • 1.3 Define goals and metrics
    • 1.4 Define application categories
    • 1.5 Determine APM steps and roles (SIPOC)

    2. Improve Your Inventory

    • 2.1 Populate your inventory
    • 2.2 Align to business capabilities

    3. Rationalize Your Apps

    • 3.1 Assess business value
    • 3.2 Assess technical health
    • 3.3 Assess end-user perspective
    • 3.4 Assess total cost of ownership

    4. Populate Your Roadmap

    • 4.1 Review APM Snapshot results
    • 4.2 Review APM Foundations results
    • 4.3 Determine dispositions
    • 4.4 Assess redundancies (Optional)
    • 4.5 Determine dispositions for redundant applications (Optional)
    • 4.6 Prioritize initiatives
    • 4.7 Ongoing APM cadence

    Repeat according to APM cadence and application changes

    4.7 Ongoing APM cadence

    Estimated time: 1-2 hours

    1. Determine how frequently you will update or present the artifacts of your APM practice: Application Inventory, Rationalization, Disposition, and Roadmap.
    2. For each artifact, determine the:
      1. Owner: Who is accountable for the artifact and the data or information within the artifact and will be responsible for or delegate the responsibility of updating or presenting the artifact to the appropriate audience?
      2. Update Cadence: How frequently will you update the artifact? Include what regularly scheduled meetings this activity will be within.
      3. Update Scope: Describe what activities will be performed to keep the artifact up to date. The goal here is to minimize the need for a full set of activities laid out within the blueprint. Optional: How will you expand the thoroughness of your analysis?
      4. Audience: Who is the audience for the artifact or assessment results?
      5. Presentation Cadence: How frequently and when will you review the artifact with the audience?
    InputOutput
    • Initial experience with APM
    • Strategic meetings schedule
    • Ongoing cadence for APM activities
    MaterialsParticipants
    • Whiteboard and markers
    • APM Snapshot and Foundations Tool
    • Applications Lead
    • Any Applications Team Members

    Record the results in the APM Snapshot and Foundations Tool

    4.7 Ongoing APM cadence

    Artifact

    Owner

    Update Cadence

    Update Scope

    Audience

    Presentation Cadence

    Inventory

    Greg Dawson

    • As new applications are acquired
    • Annual review
    • Add new application data points (this is added to implementation standards)
    • Review inventory and perform a data health check
    • Validate with app’s SME
    • Whole organization
    • Always available on team site

    Rationalization Tool

    Judy Ng

    • Annual update
    • Revisit value driver weights
    • Survey end users
    • Interview support owners
    • Interview business owners
    • Update TCO based on change in operational costs; expand thoroughness of cost estimates
    • Rescore applications
    • Business owners of applications
    • IT leaders
    • Annually alongside yearly strategy meeting

    Portfolio Roadmap

    Judy Ng

    • Monthly update alongside project updates
    • Shift the timeline of the roadmap to current day 1
    • Carry over project updates and timeline changes
    • Validate with PMs and business owners
    • Steering Committee
    • Business owners of applications
    • IT leaders
    • Quarterly alongside Steering Committee meetings
    • Upon request

    Appendices

    • Additional support slides
    • Bibliography

    The APM tool provides a single source of truth and global data sharing

    The table shows where source data is used to support different aspects of APM discovery, rationalization, and modernization.

    Worksheet Data Mapping

    Application and Capability List

    Group Alignment Matrix (1-3)

    Rationalization Inputs

    Group 1-3 Results

    Application Inventory Details

    App Rationalization Results

    Roadmap

    App Redundancy Comparison

    Application and Capability List

    App list, Groupings

    App list

    App list, Groupings

    App list, Categories

    App list, Categories

    App list

    App list

    Groups 1-3 Alignment Matrix

    App to Group Tracing

    Application Categories

    Category
    drop-down

    Category

    Category

    Rationalization Inputs

    Lens Scores (weighted input to Group score)

    Lens Scores (weighted input)

    Disposition Options

    Disposition list, Priorities list, Recommended Disposition and Priority

    Lens Scores (weighted input)

    App Rationalization Results

    Disposition

    Common application inventory attributes

    Attribute Description Common Collection Method
    Name Organization’s terminology used for the application. Auto-discovery tools will provide names for the applications they reveal. However, this may not be the organizational nomenclature. You may adapt the names by leveraging pre-existing documentation and internal knowledge or by consulting business users.
    ID Unique identifiers assigned to the application (e.g. app number). Typically an identification system developed by the application portfolio manager.
    Description A brief description of the application, often referencing core capabilities. Typically completed by leveraging pre-existing documentation and internal knowledge or by consulting business users.
    Business Units A list of all business units, departments, or user groups. Consultation, surveys, or interviews with business unit representatives. However, this doesn’t always expose hidden applications. Application-capability mapping is the most effective way to determine all the business units/user groups of an app.
    Business Capabilities A list of business capabilities the application is intended to enable. Application capability mapping completed via interviews with business unit representatives.
    Criticality A high-level grading of the importance of the application to the business, typically used for support prioritization purposes (i.e. critical, high, medium, low). Typically the criticality rating is determined by a committee representing IT and business leaders.
    Ownership The individual accountable for various aspect of the application (e.g. product owner, product manager, application support, data owner); typically includes contact information and alternatives. If application ownership is an established accountability in your organization, typically consulting appropriate business stakeholders will reveal this information. Otherwise, application capability mapping can be an effective means of identifying who that owner should be.
    Application SMEs Any relevant subject matter experts who can speak to various aspects of the application (e.g. business process owners, development managers, data architects, data stewards, application architects, enterprise architects). Technical SMEs should be known within an IT department, but shadow IT apps may require interviews with the business unit. Application capability mapping will determine the identity of those key users/business process SMEs.
    Type An indication of whether the application was developed in-house, commercial off-the-shelf, or a hybrid option. Consultation, surveys, or interviews with product owners or development managers.
    Active Status An indication of whether the application is currently active, out of commission, in repair, etc. Consultation, surveys, or interviews with product owners or operation managers.

    Common application inventory attributes

    Attribute Description Common Collection Method
    Vendor Information Identification of the vendor from whom the software was procured. May include additional items such as the vendor’s contact information. Consultation with business SMEs, end users, or procurement teams, or review of vendor contracts or license agreements.
    Links to Other Documentation Pertinent information regarding the other relevant documentation of the application (e.g. SLA, vendor contracts, data use policies, disaster recovery plan). Typically includes links to documents. Consultation with product owners, service providers, or SMEs, or review of vendor contracts or license agreements.
    Number of Users The current number of users for the application. This can be based on license information but will often require some estimation. Can include additional items of quantities at different levels of access (e.g. admin, key users, power users). Consultation, surveys, or interviews with product owners or appropriate business SMEs or review of vendor contracts or license agreements. Auto-discovery tools can reveal this information.
    Software Dependencies List of other applications or operating components required to run the application. Consultation with application architects and any architectural tools or documentation. This information can begin to reveal itself through application capability mapping.
    Hardware Dependencies Identification of any hardware or infrastructure components required to run the application (i.e. databases, platform). Consultation with infrastructure or enterprise architects and any architectural tools or documentation. This information can begin to reveal itself through application capability mapping.
    Development Language Coding language used for the application. Consultation, surveys, or interviews with development managers or appropriate technical SMEs.
    Platform A framework of services that application programs rely on for standard operations. Consultation, surveys, or interviews with infrastructure or development managers.
    Lifecycle Stage Where an application is within the birth, growth, mature, end-of-life lifecycle. Consultation with business owners and technical SMEs.
    Scheduled Updates Any major or minor updates related to the application, including the release date. Consultation with business owners and vendor managers.
    Planned or In-Flight Projects Any projects related to the application, including estimated project timeline. Consultation with business owners and project managers.

    Bibliography

    ”2019 Technology & Small Business Survey.” National Small Business Association (NSBA), n.d. Accessed 1 April 2020.
    “Application Rationalization – Essential Part of the Process for Modernization and Operational Efficiency.” Flexera, 2015. Web.
    “Applications Rationalization during M&A: Standardize, Streamline, Simplify.” Deloitte Consulting, 2016. Web.
    Bowling, Alan. “Clearer Visibility of Product Roadmaps Improves IT Planning.” ComputerWeekly.com, 1 Nov. 2010. Web.
    Brown, Alex. “Calculating Business Value.” Agile 2014 Orlando, 13 July 2014. Scrum Inc. 2014. Web.
    Brown, Roger. “Defining Business Value.” Scrum Gathering San Diego 2017. Agile Coach Journal. Web.
    “Business Application Definition.” Microsoft Docs, 18 July 2012. Web.
    “Connecting Small Businesses in the US.” Deloitte Consulting, 2017. Accessed 1 April. 2020.
    Craveiro, João. “Marty meets Martin: connecting the two triads of Product Management.” Product Coalition, 18 Nov. 2017. Web.
    Curtis, Bill. “The Business Value of Application Internal Quality.” CAST, 6 April 2009. Web.
    Fleet, Neville, Joan Lasselle, and Paul Zimmerman. “Using a Balance Scorecard to Measure the Productivity and Value of Technical Documentation Organizations.” CIDM, April 2008. Web.
    Fowler, Martin. “Application Boundary.” MartinFowler.com, 11 Sept. 2003. Web.
    Harris, Michael. “Measuring the Business Value of IT.” David Consulting Group, 2007. Web.
    “How Application Rationalization Contributes to the Bottom Line.” LeanIX, 2017. Web.
    Jayanthi, Aruna. “Application Landscape Report 2014.” Capgemini, 4 March 2014. Web.
    Lankhorst, Marc., et al. “Architecture-Based IT Valuation.” Via Nova Architectura, 31 March 2010. Web.
    “Management of business application.” ServiceNow, Jan.2020. Accessed 1 April 2020.
    Mauboussin, Michael J. “The True Measures of Success.” HBR, Oct. 2012. Web.
    Neogi, Sombit., et al. “Next Generation Application Portfolio Rationalization.” TATA, 2011. Web.
    Riverbed. “Measuring the Business Impact of IT Through Application Performance.” CIO Summits, 2015. Web.
    Rouse, Margaret. “Application Rationalization.” TechTarget, March 2016. Web.
    Van Ramshorst, E.A. “Application Portfolio Management from an Enterprise Architecture Perspective.” Universiteit Utrecht, July 2013.
    “What is a Balanced Scorecard?” Intrafocus, n.d. Web.
    Whitney, Lance. “SMBs share their biggest constraints and great challenges.” Tech Republic, 6 May 2019. Web.

    Identify and Manage Operational Risk Impacts on Your Organization

    • Buy Link or Shortcode: {j2store}230|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

    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.

    Service Desk

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    • Parent Category Link: /infra-and-operations
    The service desk is typically the first point of contact for clients and staff who need something. Make sure your team is engaged, involved, knowledgeable, and gives excellent customer service.

    Passwordless Authentication

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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.

    Customer Relationship Management Platform Selection Guide

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    • Parent Category Name: Customer Relationship Management
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    • Customer relationship management (CRM) suites are an indispensable part of a holistic strategy for managing end-to-end customer interactions.
    • After defining an approach to CRM, selection and implementation of the right CRM suite is a critical step in delivering concrete business value for marketing, sales, and customer service.
    • Despite the importance of CRM selection and implementation, many organizations struggle to define an approach to picking the right vendor and rolling out the solution in an effective and cost-efficient manner.
    • IT often finds itself in the unenviable position of taking the fall for CRM platforms that don't deliver on the promise of the CRM strategy.

    Our Advice

    Critical Insight

    • IT needs to be a trusted partner in CRM selection and implementation, but the business also needs to own the requirements and be involved from the beginning.
    • CRM requirements dictate the components of the target CRM architecture, such as deployment model, feature focus, and customization level. Savvy application directors recognize the points in the project where the CRM architecture model necessitates deviations from a "canned" roll-out plan.
    • CRM selection is a multi-step process that involves mapping target capabilities for marketing, sales, and customer service, assigning requirements across functional categories, determining the architecture model to prioritize criteria, and developing a comprehensive RFP that can be scored in a weighted fashion.
    • Companies that succeed with CRM implementation create a detailed roadmap that outlines milestones for configuration, security, points of implementation, data migration, training, and ongoing application maintenance.

    Impact and Result

    • A CRM platform that effectively meets the needs of marketing, sales, and customer service and delivers value.
    • Reduced costs during CRM selection.
    • Reduced implementation costs and time frame.
    • Faster time to results after implementation.

    Customer Relationship Management Platform Selection Guide Research & Tools

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

    1. Customer Relationship Management Platform Selection Guide – Speed up the process to build your business case and select your CRM solution.

    This blueprint will help you build a business case for selecting the right CRM platform, defining key requirements, and conducting a thorough analysis and scan of the ever-evolving CRM market space.

    • Customer Relationship Management Platform Selection Guide — Phases 1-3

    2. CRM Business Case Template – Document the key drivers for selecting a new CRM platform.

    Having a sound business case is essential for succeeding with a CRM. This template will allow you to document key drivers and impact, in line with the CRM Platform Selection Guide blueprint.

    • CRM Business Case Template

    3. CRM Request for Proposal Template

    Create your own request for proposal (RFP) for your customer relationship management (CRM) solution procurement process by customizing the RFP template created by Info-Tech.

    • CRM Request for Proposal Template

    4. CRM Suite Evaluation and RFP Scoring Tool

    The CRM market has many strong contenders and differentiation may be difficult. Instead of relying solely on reputation, organizations can use this RFP tool to record and objectively compare vendors according to their specific requirements.

    • CRM Suite Evaluation and RFP Scoring Tool

    5. CRM Vendor Demo Script

    Use this template to support your business's evaluation of vendors and their solutions. Provide vendors with scenarios that prompt them to display not only their solution's capabilities, but also how the tool will support your organization's particular needs.

    • CRM Vendor Demo Script

    6. CRM Use Case Fit Assessment Tool

    Use this tool to help build a CRM strategy for the organization based on the specific use case that matches your organizational needs.

    • CRM Use-Case Fit Assessment Tool
    [infographic]

    Further reading

    Customer Relationship Management Platform Selection Guide

    Speed up the process to build your business case and select your CRM solution.

    Table of Contents

    1. Analyst Perspective
    2. Executive Summary
    3. Blueprint Overview
    4. Executive Brief
    5. Phase 1: Understand CRM Functionality
    6. Phase 2: Build the Business Case and Elicit CRM requirements
    7. Phase 3: Discover the CRM Marketspace and Prepare for Implementation
    8. Conclusion

    Analyst Perspective

    A strong CRM platform is paramount to succeeding with customer engagement.

    Modern CRM platforms are the workhorses that provide functional capabilities and data curation for customer experience management. The market for CRM platforms has seen an explosion of growth over the last five years, as organizations look to mature their ability to deliver strong capabilities across marketing, sales, and customer service.

    IT needs to be a trusted partner in CRM selection and implementation, but the business also needs to own the requirements and be involved from the get-go.

    CRM selection must be a multistep process that involves defining target capabilities for marketing, sales, and customer service, prioritizing requirements across functional categories, determining the architecture model for the CRM environment, and developing a comprehensive RFP that can be scored in a weighted fashion.

    To succeed with CRM implementation, create a detailed roadmap that outlines milestones for configuration, security, points of implementation, data migration, training, and ongoing application maintenance.

    Photo of Ben Dickie, Research Lead, Customer Experience Strategy, Info-Tech Research Group. Ben Dickie
    Research Lead, Customer Experience Strategy
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Customer Relationship Management (CRM) suites are an indispensable part of a holistic strategy for managing end-to-end customer interactions. Selecting the right platform that aligns with your requirements is a significant undertaking.

    After defining an approach to CRM, selection and implementation of the right CRM suite is a critical step in delivering concrete business value for marketing, sales, and customer service.
    Common Obstacles

    Despite the importance of CRM selection and implementation, many organizations struggle to define an approach to picking the right vendor and rolling out the solution in an effective and cost-efficient manner.

    The CRM market is rapidly evolving and changing, making it tricky to stay on top of the space.

    IT often finds itself in the unenviable position of taking the fall for CRM platforms that don’t deliver on the promise of the CRM strategy.
    Info-Tech’s Approach

    CRM platform selection must be driven by your overall customer experience management strategy: link your CRM selection to your organization’s CXM framework.

    Determine if you need a CRM platform that skews toward marketing, sales, or customer service; leverage use cases to help guide selection.

    Ensure strong points of integration between CRM and other software such as MMS. A CRM should not live in isolation; it must provide a 360-degree view.

    Info-Tech Insight

    IT must work in lockstep with its counterparts in marketing, sales, and customer service to define a unified vision for the CRM platform.

    Info-Tech’s methodology for selecting the right CRM platform

    1. Understand CRM Features 2. Build the Business Case & Elicit CRM Requirements 3. Discover the CRM Market Space & Prepare for Implementation
    Phase Steps
    1. Define CRM platforms
    2. Classify table stakes & differentiating capabilities
    3. Explore CRM trends
    1. Build the business case
    2. Streamline requirements elicitation for CRM
    3. Construct the RFP
    1. Discover key players in the CRM landscape
    2. Engage the shortlist & select finalist
    3. Prepare for implementation
    Phase Outcomes
    • Consensus on scope of CRM and key CRM capabilities
    • CRM selection business case
    • Top-level use cases and requirements
    • Completed CRM RFP
    • CRM market analysis
    • Shortlisted vendor
    • Implementation considerations

    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.

    The CRM purchase process should be broken into segments:

    1. CRM vendor shortlisting with this buyer’s guide
    2. Structured approach to selection
    3. Contract review

    What does a typical GI on this topic look like?

    Phase 1

    Phase 2

    Phase 3

    Call #1: Understand what a CRM platform is and the “art of the possible” for sales, marketing, and customer service. Call #2: Build the business case to select a CRM.

    Call #3: Define your key CRM requirements.

    Call #4: Build procurement items such as an RFP.
    Call #5: Evaluate the CRM solution landscape and shortlist viable options.

    Call #6: Review implementation considerations.

    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

    INFO~TECH RESEARCH GROUP

    Customer Relationship Management Platform Selection Guide

    Speed up the process to build your business case and select your CRM solution.

    EXECUTIVE BRIEF

    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.
    © 1997-2022 Info-Tech Research Group Inc.

    What exactly is a CRM platform?

    Our Definition: A customer relationship management (CRM) platform (or suite) is a core enterprise application that provides a broad feature set for supporting customer interaction processes, typically across marketing, sales and customer service. These suites supplant more basic applications for customer interaction management (such as the contact management module of an enterprise resource planning (ERP) platform or office productivity suite).

    A customer relationship management suite provides many key capabilities, including but not limited to:

    • Account management
    • Order history tracking
    • Pipeline management
    • Case management
    • Campaign management
    • Reports and analytics
    • Customer journey execution

    A CRM suite provides a host of native capabilities, but many organizations elect to tightly integrate their CRM solution with other parts of their customer experience ecosystem to provide a 360-degree view of their customers.

    Stock image of a finger touching a screen showing a stock chart.

    Info-Tech Insight

    CRM feature sets are rapidly evolving. Focus on the social component of sales, marketing, and service management features, as well as collaboration, to get the best fit for your requirements. Moreover, consider investing in best-of-breed social media management platforms (SMMPs) and internal collaboration tools to ensure sufficient functionality.

    Build a cohesive CRM selection approach that aligns business goals with CRM capabilities.

    Info-Tech Insight

    Customers expect to interact with organizations through the channels of their choice. Now more than ever, you must enable your organization to provide tailored customer experiences.

    Customer expectations are on the rise: meet them!

    A CRM platform is a crucial system for enabling good customer experiences.

    CUSTOMER EXPERIENCE IS EVOLVING

    1. Thoughtfulness is in
        Connect with customers on a personal level
    2. Service over products
        The experience is more important than the product
    3. Culture is now number one
        Culture is the most overlooked piece of customer experience strategy
    4. Engineering and service finally join forces
        Companies are combining their technology and service efforts to create strong feedback loops
    5. The B2B world is inefficiently served
        B2B needs to step up with more tools and a greater emphasis placed on customer experience

    (Source: Forbes, 2019)

    Identifying organizational objectives of high priority will assist in breaking down business needs and CRM objectives. This exercise will better align the CRM systems with the overall corporate strategy and achieve buy-in from key stakeholders.

    A strong CRM platform supports a range of organizational objectives for customer engagement.

    Increase Revenue Enable lead scoring Deploy sales collateral management tools Improve average cost per lead via a marketing automation tool
    Enhance Market Share Enhance targeting effectiveness with a CRM Increase social media presence via an SMMP Architect customer intelligence analysis
    Improve Customer Satisfaction Reduce time-to-resolution via better routing Increase accessibility to customer service with live chat Improve first contact resolution with customer KB
    Increase Customer Retention Use a loyalty management application Improve channel options for existing customers Use customer analytics to drive targeted offers
    Create Customer-Centric Culture Ensure strong training and user adoption programs Use CRM to provide 360-degree view of all customer interactions Incorporate the voice of the customer into product development

    Succeeding with CRM selection and implementation has a positive effect on driving revenues and decreasing costs

    There are three buckets of metrics and KPIs where CRM will drive improvements

    The metrics of a smooth CRM selection and implementation process include:

    • Better alignment of CRM functionality to business needs.
    • Better functionality coverage of the selected platform.
    • Decreased licensing costs via better vendor negotiation.
    • Improved end-user satisfaction with the deployed solution.
    • Fewer errors and rework during implementation.
    • Reduced total implementation costs.
    • Reduced total implementation time.

    A successful CRM deployment drives revenue

    • Increased customer acquisition due to enhanced accuracy of segmentation and targeting, superior lead qualification, and pipeline management.
    • Increased customer satisfaction and retention due to targeted campaigns (e.g. customer-specific deals), quicker service incident resolution, and longitudinal relationship management.
    • Increased revenue per customer due to comprehensive lifecycle management tools, social engagement, and targeted upselling of related products and services (enabled by better reporting/analytics).

    A successful CRM deployment decreases cost

    • Deduplication of effort across business domains as marketing, sales, and service now have a common repository of customer information and interaction tools.
    • Increased sales and service agent efficiency due to their focus on selling and resolution, rather than administrative tasks and overhead.
    • Reduced cost-to-sell and cost-to-serve due to automation of activities that were manually intensive.
    • Reduced cost of accurate data due to embedded reporting and analytics functionality.

    CRM platforms sit at the core of a well-rounded customer engagement ecosystem

    At the center is 'Customer Relationship Management Platform' surrounded by 'Web Experience Management Platform', 'E-Commerce & Point-of-Sale Solutions', 'Social Media Management Platform', 'Customer Intelligence Platform', 'Customer Service Management Tools', and 'Marketing Management Suite'.

    Customer Experience Management (CXM) Portfolio

    Customer relationship management platforms are increasingly expansive in functional scope and foundational to an organization’s customer engagement strategy. Indeed, CRMs form the centerpiece for a comprehensive CXM system, alongside tools such as customer intelligence platforms and adjacent point solutions for sales, marketing, and customer service.

    Review Info-Tech’s CXM blueprint below to build a complete, end-to-end customer interaction solution portfolio that encompasses CRM alongside other critical components. The CXM blueprint also allows you to develop strategic requirements for CRM based on customer personas and external market analysis.

    Build a Strong Technology Foundation for Customer Experience Management

    Sample of the 'Build a Strong Technology Foundation for Customer Experience Management' blueprint. Design an end-to-end technology strategy to drive sales revenue, enhance marketing effectiveness, and create compelling experiences for your customers.

    View the blueprint

    Considering a CRM switch? Switching software vendors drives high satisfaction

    Eighty percent of organizations are more satisfied after changing their software vendor.

    • Most organizations see not only a positive change in satisfaction with their new vendor, but also a substantial change in satisfaction.
    • What matters is making sure your organization is well-positioned to make a switch.
    • When it comes to switching software vendors, the grass really can be greener on the other side.

    Over half of organizations are 60%+ more satisfied after changing their vendor.

    (Source: Info-Tech Research Group, "Switching Software Vendors Overwhelmingly Drives Increased Satisfaction", 2020.)

    IT is critical to the success of your CRM selection and rollout

    Today’s shared digital landscape of the CIO and CMO

    Info-Tech Insight

    Technology is the key enabler of building strong customer experiences: IT must stand shoulder to shoulder with the business to develop a technology framework for customer relationship management.

    CIO

    IT Operations

    Service Delivery and Management

    IT Support

    IT Systems and Application

    IT Strategy and Governance

    Cybersecurity
    Collaboration and Partnership

    Digital Strategy = Transformation
    Business Goals | Innovation | Leadership | Rationalization

    Customer Experience
    Architecture | Design | Omnichannel Delivery | Management

    Insight (Market Facing)
    Analytics | Business Intelligence | Machine Learning | AI

    Marketing Integration + Operating Model
    Apps | Channels | Experiences | Data | Command Center

    Master Data
    Customer | Audience | Industry | Digital Marketing Assets
    CMO

    PEO Media

    Brand Management

    Campaign Management

    Marketing Tech

    Marketing Ops

    Privacy, Trust, and Regulatory Requirements

    (Source: ZDNet, 2020)

    CRM by the numbers

    1/3

    Statistical analysis of CRM projects indicates failures vary from 18% to 69%. Taking an average of those analyst reports, about one-third of CRM projects are considered a failure. (Source: CIO Magazine, 2017)

    92%

    92% of organizations report that CRM use is important for accomplishing revenue objectives. (Source: Hall, 2020)

    40%

    In 2019, 40% of executives name customer experience the top priority for their digital transformation. (Source: CRM Magazine, 2019)

    Case Study

    Align strategy and technology to meet consumer demand.
    INDUSTRY
    Entertainment
    SOURCE
    Forbes, 2017
    Challenge

    Beginning as a mail-out service, Netflix offered subscribers a catalog of videos to select from and have mailed to them directly. Customers no longer had to go to a retail store to rent a video. However, the lack of immediacy of direct mail as the distribution channel resulted in slow adoption.

    Blockbuster was the industry leader in video retail but was lagging in its response to industry, consumer, and technology trends around customer experience.

    Solution

    In response to the increasing presence of tech-savvy consumers on the internet, Netflix invested in developing its online platform as its primary distribution channel. The benefit of doing so was two-fold: passive brand advertising (by being present on the internet) and meeting customer demands for immediacy and convenience. Netflix also recognized the rising demand for personalized service and created an unprecedented, tailored customer experience.

    Results

    Netflix’s disruptive innovation is built on the foundation of great customer experience management. Netflix is now a $28-billion company, which is tenfold what Blockbuster was worth.

    Netflix used disruptive technologies to innovatively build a customer experience that put it ahead of the long-time video rental industry leader, Blockbuster.

    CRM Buyer’s Guide

    Phase 1

    Understand CRM Features

    Phase 1

    1.1 Define CRM platforms

    1.2 Classify table stakes & differentiating capabilities

    1.3 Explore CRM trends

    Phase 2

    2.1 Build the business case

    2.2 Streamline requirements elicitation for CRM

    2.3 Construct the RFP

    Phase 3

    3.1 Discover key players in the CRM landscape

    3.2 Engage the shortlist & select finalist

    3.3 Prepare for implementation

    This phase will walk you through the following activities:

    • Set a level of understanding of CRM technology.
    • Define which CRM features are table stakes (standard) and which are differentiating.
    • Identify the “Art of the Possible” in a modern CRM from a sales, marketing, and service lens.

    This phase involves the following participants:

    • CIO
    • Applications manager
    • Project manager
    • Sales executive
    • Marketing executive
    • Customer service executive

    Understand CRM table stakes features

    Organizations can expect nearly all CRM vendors to provide the following functionality.

    Lead Management Pipeline Management Contact Management Campaign Management Customer Service Management
    • Tracks and captures a lead’s information, automatically building a profile. Leads are then qualified through contact scoring models. Assigning leads to sales is typically automated.
    • Enables oversight over future sales. Includes revenue forecasting based on past/present trends, tracking sales velocity, and identifying ineffective sales processes.
    • Tracks and stores customer data, including demography, account and billing history, social media, and contact information. Typically, records and fields can be customized.
    • Provides integrated omnichannel campaign functionality and data analysis of customer intelligence. Data insights can be used to drive new and effective marketing campaigns.
    • Provides integrated omnichannel customer experiences to provide convenient service. Includes case and ticket management, automated escalation rules, and third-party integrations.

    Identify differentiating CRM features

    While not always “must-have” functionality, these features may be the final dealbreaker when deciding between two CRM vendors.

    Image of clustered screens with various network and business icons surounding them.
    • Workflow Automation
      Automate repetitive tasks by creating workflows that trigger actions or send follow-up reminders for next steps.
    • Advanced Analytics and Reporting
      Provides customized dashboard visualizations, detailed reporting, AI-driven virtual assistants, data extraction & analysis, and ML forecasting.
    • Customizations and Open APIs
      Broad range of available customizations (e.g. for dashboards and fields), alongside ease of integration (e.g. via plugins or APIs).
    • Document Management
      Out-of-the-box centralized content repository for storing, uploading, and sharing documents.
    • Mobile Support
      Ability to support mobile devices, OSes, and platforms with a native application or HTML-based web-access.
    • Project and Task Management
      Native project and task management functionality, enhancing cross-team organization and communication.
    • Configure, Price, Quote (CPQ)
      Create and send quotes or proposals to prospective and current customers.

    Features aren’t everything – be wary of common CRM selection pitfalls

    You can have all the right features, but systemic problems will lead to poor CRM implementation. Dig out these root causes first to ensure a successful CRM selection.

    50% of organizations believe the quality of their CRM data is “very poor” or “neutral.”

    Without addressing data governance issues, CRMs will only be as good as your data.

    Source: (Validity 2020)
    27% of organizations report that bad data costs them 10% or more in lost revenue annually.
    42% rate the trust that users have in their data as “high” or “very high.”
    54% believe that sales forecasts are accurate or very accurate.
    69% attribute poor CRM governance to missing or incomplete data, followed by duplicate data, incorrect data, and expired data. Other data issues include siloed data or disparate systems.
    73% believe that they do not have a 360-degree view of their customers.

    Ensure you understand the “art of the possible” in the CRM landscape

    Knowing what is possible will help funnel which features are most suitable for your organization – having all the bells and whistles does not always equal strong ROI.

    Holistically examine the potential of any CRM solution through three main lenses: Stock image of a person working with dashboards.

    Sales

    Identify sales opportunities through recording customers’ interactions, generating leads, nurturing contacts, and forecasting revenues.
    Stock image of people experiencing digital ideas.

    Marketing

    Analyze customer interactions to identify upsell and cross-sell opportunities, drive customer loyalty, and use customer data for targeted campaigns.
    Stock image of a customer service representative.

    Customer Service

    Improve and optimize customer engagement and retention, leveraging customer data to provide round-the-clock omnichannel experiences.

    Art of the possible: Sales

    Stock image of a person working with dashboards.

    TRACK PROSPECT INTERACTIONS

    Want to engage with a prospect but don’t know what to lead with? CRM solutions can track and analyze many of the interactions a prospect has with your organization, including with fellow staff, their clickthrough rate on marketing material, and what services they are downloading on your website. This information can then auto-generate tasks to begin lead generation.

    COORDINATE LEAD SCORING

    Information captured from a prospect is generated into contact cards; missing data (such as name and company) can be auto-captured by the CRM via crawling sites such as LinkedIn. The CRM then centralizes and scores (according to inputted business rules) a lead’s potential, ensuring sales teams coordinate and keep a track of the lead’s journey without wrongful interference.

    AI-DRIVEN REVENUE FORECASTING

    Generate accurate forecasting reports using AI-driven “virtual assistants” within the CRM platform. These assistants are personal data scientists, quickly noting discrepancies, opportunities, and what-if scenarios – tasks that might take weeks to do manually. This pulled data is then auto-forecasted, with the ability to flexibly adjust to real-time data.

    Art of the possible: Marketing

    Stock image of people experiencing digital ideas.

    DRIVE LOYALTY

    Data captured and analyzed in the CRM from customer interactions builds profiles and a deeper understanding of customers’ interests. With this data, marketing teams can deliver personalized promotions and customer service to enhance loyalty – from sending a discount on a product the customer was browsing on the website, to providing notifications about delivery statuses.

    AUTOMATE WORKFLOWS

    Building customer profiles, learning spending habits, and charting a customer’s journey for upselling or cross-selling can be automated through workflows, saving hours of manual work. These workflows can immediately respond to customer enquiries or deliver offers to the customer’s preferred channel based on their prior usage.

    TARGETED CAMPAIGNING

    Information attained through a CRM platform directly informs any marketing strategy: identifying customer segments, spending habits, building a better product based on customer feedback, and identifying high-spending customers. With any new product or offering, it is straightforward for marketing teams to understand where to target their next campaign for highest impact.

    Art of the possible: Customer service

    Stock image of a customer service representative.

    OMNICHANNEL SUPPORT

    Rapidly changing demographics and modes of communications require an evolution toward omnichannel engagement. Many customers now expect to communicate with contact centers not just by voice, but via social media. Agents need customer information synced across each channel they use, meeting the customer’s needs where they are.

    INTELLIGENT SELF-SERVICE PORTALS

    Customers want their issues resolved as quickly as possible. Machine-learning self-service options deliver personalized customer experiences, which also reduce both agent call volume and support costs for the organization.

    LEVERAGING ANALYTICS

    The future of customer service is tied up with analytics. This not only entails AI-driven capabilities that fetch the agent relevant information, skills-based routing, and using biometric data (e.g. speech) for security. It also feeds operations leaders’ need for easy access to real insights about how their customers and agents are doing.

    Best-of-Breed Point Solutions

    Full CRM Suite

    Blue smiley face. Benefits
    • Features may be more advanced for specific functional areas and a higher degree of customization may be possible.
    • If a potential delay in real-time customer data transfer is acceptable, best-of-breeds provide a similar level of functionality to suites for a lower price.
    • Best-of-breeds allow value to be realized faster than suites, as they are easier and faster to implement and configure.
    • Rip and replace is easier, and vendor updates are relatively quick to market.
    Benefits
    • Everyone in the organization works from the same set of customer data.
    • There is a “lowest common denominator” for agent learning as consistent user interfaces lower learning curves and increase efficiency in usage.
    • There is a broader range of functionality using modules.
    • Integration between functional areas will be strong and the organization will be in a better position to enable version upgrades without risking invalidation of an integration point between separate systems.
    Green smiley face.
    Purple frowny face. Challenges
    • Best-of-breeds typically cover less breadth of functionality than suites.
    • There is a lack of uniformity in user experience across best-of-breeds.
    • Data integrity risks are higher.
    • Variable infrastructure may be implemented due to multiple disparate systems, which adds to architecture complexity and increased maintenance.
    • There is potential for redundant functionality across multiple best-of-breeds.
    Challenges
    • Suites exhibit significantly higher costs compared to point solutions.
    • Suite module functionality may not have the same depth as point solutions.
    • Due to high configuration availability and larger-scale implementation requirements, the time to deploy is longer than point solutions.
    Orange frowny face.
    Info-Tech Insight

    Even if a suite is missing a potential module, the proliferation of app extensions, integrations, and services could provide a solution. Salesforce’s AppExchange, for instance, offers a plethora of options to extend its CRM solution – from telephony integration, to gamification.

    CRM Buyer’s Guide

    Phase 2

    Build the Business Case & Elicit CRM Requirements

    Phase 1

    1.1 Define CRM platforms

    1.2 Classify table stakes & differentiating capabilities

    1.3 Explore CRM trends

    Phase 2

    2.1 Build the business case

    2.2 Streamline requirements elicitation for CRM

    2.3 Construct the RFP

    Phase 3

    3.1 Discover key players in the CRM landscape

    3.2 Engage the shortlist & select finalist

    3.3 Prepare for implementation

    This phase will walk you through the following activities:

    • Identify goals, objectives, challenges, and costs to inform the business case for a new CRM platform.
    • Elicit and prioritize key requirements for your platform.
    • Port the requirements into Info-Tech’s CRM RFP Template.

    This phase involves the following participants:

    • CIO
    • Applications manager
    • Project manager
    • Sales executive
    • Marketing executive
    • Customer service executive

    Right-size the CRM selection team to ensure you get the right information but are still able to move ahead quickly

    Full-Time Resourcing: At least one of these five team members must be allocated to the selection initiative as a full-time resource.

    A silhouetted figure.

    IT Leader

    A silhouetted figure.

    Technical Lead

    A silhouetted figure.

    Business Analyst/
    Project Manager

    A silhouetted figure.

    Business Lead

    A silhouetted figure.

    Process Expert(s)

    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. Typically, a CMO or SVP of sales. These team members are the sales, marketing, and service process owners who will help steer the CRM requirements and direction.

    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. For more information on stakeholder management and involvement, see this guide.

    Be prepared to define what issues you are trying to address and why a new CRM is the right approach

    Identify the current state and review the background of what you’ve done leading up to this point, goals you’ve been asked to meet, and challenges in solving known problems to help to set the stage for why your proposed solution is needed. If your process improvements have taken you as far as you can go without improved workflows or data, specify where the gaps are.
    Arrows with icons related to the text on the right merging into one arrow. Alignment

    Alignment to strategic goals is always important, but that is especially true with CRM because customer relationship management platforms are at the intersection of your organization and your customers. What are the strategic marketing, sales and customer service goals that you want to realize (in whole or in part) by improving your CRM ecosystem?

    Impact to your business

    Identify areas where your customers may be impacted by poor experiences due to inadequate or aging technology. What’s the impact on customer retention? On revenue?

    Impact to your organization

    Define how internal stakeholders within the organization are impacted by a sub-optimal CRM experience – what are their frustrations and pain points? How do issues with your current CRM environment prevent teams in sales, marketing, or service from doing their jobs?

    Impact to your department

    Describe the challenges within IT of using disparate systems, workarounds, poor data and reporting, lack of automation, etc., and the effect these challenges have on IT’s goals.

    Align the CRM strategy with the corporate strategy

    Corporate Strategy Unified Strategy CRM Strategy
    Spectrum spanning all columns.
    Your corporate strategy:
    • Conveys the current state of the organization and the path it wants to take.
    • Identifies future goals and business aspirations.
    • Communicates the initiatives that are critical for getting the organization from its current state to the future state.
    • The CRM strategy and the rationale for deploying a new CRM can be and should be linked, with metrics, to the corporate strategy and ultimate business objectives (such as improving customer acquisition, entering new segments, or improving customer lifetime value).
    Your CRM strategy:
    • Communicates the organization’s budget and spending on CRM.
    • Identifies IT initiatives that will support the business and key CRM objectives.
    • Outlines staffing and resourcing for CRM initiatives.
    CRM 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 CRM capabilities. Effective alignment between sales, marketing, customer service, operations, IT, and the business should happen daily. Alignment doesn’t just need to occur at the executive level, but also at each level of the organization.

    2.1 Create your list of goals and milestones for CRM

    1-3 hours

    Input: Corporate strategy, Target key performance indicators, End-user satisfaction results (if applicable)

    Output: Prioritized list of goals with milestones that can be met with a new or improved CRM solution

    Materials: Whiteboard/flip charts, CRM Business Case Template

    Participants: CIO, Application managers, CMO/SVP sales, Marketing, sales or service SMEs

    1. Review strategic goals to identify alignment to your CRM selection project. For example, digital transformation may be enhanced or enabled with a CRM solution that supports better outreach to key customer segments through improved campaign management.
    2. Next, brainstorm tactical goals with your colleagues.
    3. Identify specific goals the organization has set for the business that may be supported by improved customer prospecting, customer service, or analytics functionality through a better CRM solution.
    4. Identify specific goals your organization will be able to make possible with a new or improved CRM solution.
    5. Prioritize this list and lead with the most important goal that can be reached at the one-year, six-month, and three-month milestones.
    6. Document in the goals section of your business case.

    Download the CRM Business Case Template and record the outputs of this exercise in the strategic business goals, business drivers, and technical drivers slides.

    Identify what challenges exist with the current environment

    Ensure you are identifying issues at a high level, so as not to drown in detail, but still paint the right picture. Identify technical issues that are impacting customer experience or business goals. Typical complaints for CRM solutions that are old or have been outgrown include:

    1.

    Lack of a flexible, configurable customer data model that supports complex relationships between accounts and contacts.

    2.

    Lack of a flexible, configurable customer data model that supports complex relationships between accounts and contacts.

    3.

    Lack of meaningful reports and useable dashboards, or difficulty in surfacing them.

    4.

    Poor change enablement resulting in business interruptions.

    5.

    Inability to effectively automate routine sales, marketing, or service tasks at scale via a workflow tool.

    6.

    Lack of proper service management features, such as service knowledge management.

    7.

    Inability to ingest customer data at scale (for example, no ability to automatically log e-mails or calls).

    8.

    Major technical deficiencies and outages – the incumbent CRM platform goes down, causing business disruption.

    9.

    The platform itself doesn’t exist in the current state – everything is done in Microsoft Excel!

    Separate business issues from technical issues, but highlight where they’re connected and where technical issues are causing business issues or preventing business goals from being reached.

    Before switching vendors, evaluate your existing CRM to see if it’s being underutilized or could use an upgrade

    The cost of switching vendors can be challenging, but it will depend entirely on the quality of data and whether it makes sense to keep it.
    • Achieving success when switching vendors first requires reflection. We need to ask why we are dissatisfied with our incumbent software.
    • If the product is old and inflexible, the answer may be obvious, but don’t be afraid to include your incumbent in your evaluation if your issues might be solved with an upgrade.
    • Look at your use-case requirements to see where you want to take the CRM solution and compare them to your incumbent’s roadmap. If they don’t match, switching vendors may be the only solution. If your roadmaps align, see if you’re fully leveraging the solution or will be able to start working through process improvements.
    Pie graph with a 20% slice. Pie graph with a 25% slice.

    20%

    Small/Medium Enterprises

    25%

    Large Enterprises
    only occasionally or rarely/never use their software (Source: Software Reviews, 2020; N = 45,027)
    Fully leveraging your current software now will have two benefits:
    1. It may turn out that poor leveraging of your incumbent software was the problem all along; switching vendors won’t solve the problem by itself. As the data to the right shows, a fifth of small/medium enterprises and a quarter of large enterprises do not fully leverage their incumbent software.
    2. If you still decide to switch, you’ll be in a good negotiating position. If vendors can see you are engaged and fully leveraging your software, they will be less complacent during negotiations to win you over.
    Info-Tech Insight

    Switching vendors won’t improve poor internal processes. To be fully successful and meet the goals of the business case, new software implementations must be accompanied by process review and improvement.

    2.2 Create your list of challenges as they relate to your goals and their impacts

    1-2 hours

    Input: Goals lists, Target key performance indicators, End-user satisfaction results (if applicable)

    Output: Prioritized list of challenges preventing or hindering customer experiences

    Materials: Whiteboard/flip charts, CRM Business Case Template

    Participants: CIO, Application managers, CMO/SVP sales, Marketing, sales, or service SMEs

    1. Brainstorm with your colleagues to discuss your challenges with CRM today from an application and process lens.
    2. Identify how these challenges are impacting your ability to meet the goals and identify any that are creating customer-facing issues.
    3. Group together like areas and arrange in order of most impactful. Identify which of these issues will be most relevant to the business case for a new CRM platform.
    4. Document in the current-state section of your business case.
    5. Discuss and determine if the incumbent solution can meet your needs or if you’ll need to replace it with a different product.

    Download the CRM Business Case Template and document the outputs of this exercise in the current-state section of your business case.

    Determine costs of the solution

    Ensure the business case includes both internal and external costs related to the new CRM platform, allocating costs of project managers to improve accuracy of overall costs and level of success.

    CRM solutions include application costs and costs to design processes, install, and configure. These start-up costs can be a significant factor in whether the initial purchase is feasible.

    CRM Vendor Costs

    • Application licensing
    • Implementation and configuration
    • Professional services
    • Maintenance and support
    • Training
    • 3rd Party add-ons
    • Data transformation
    • Integration
    When thinking about vendor costs, also consider the matching internal cost associated with the vendor activity (e.g. data cleansing, internal support).

    Internal Costs

    • Project management
    • Business readiness
    • Change management
    • Resourcing (user groups, design/consulting, testing)
    • Training
    • Auditors (if regulatory requirements need vetting)
    Project management is a critical success factor at all stages of an enterprise application initiative from planning to post-implementation. Ensuring that costs for such critical areas are accurately represented will contribute to success.

    Download the blueprint Improve Your Statements of Work to Hold Your Vendors Accountable to define requirements for installation and configuration.

    Bring in the right resources to guarantee success. Work with the PMO or project manager to get help with creating the SOW.

    60% of IT projects are NOT finished “mostly or always” on time (Wellingtone, 2018).

    55% of IT personnel feel that the business objectives of their software projects are clear to them (Geneca, 2017).

    Document costs and expected benefits of the new CRM

    The business case should account for the timing of both expenditures and benefits. It is naïve to expect straight-line benefit realization or a big-bang cash outflow related to the solution implementation. Proper recognition and articulation of ramp-up time will make your business case more convincing.

    Make sure your timelines are realistic for benefits realization, as these will be your project milestones and your metrics for success.

    Example:
    Q1-Q2 Q3-Q6 Q6 Onwards

    Benefits at 25%

    At the early stages of an implementation, users are still learning the new system and go-live issues are being addressed. Most of the projected process improvements are likely to be low, zero, or even negative.

    Benefits at 75%

    Gradually, as processes become more familiar, an organization can expect to move closer to realizing the forecasted benefits or at least be in a position to recognize a positive trend toward their realization.

    Benefits at 100%

    In an ideal world, all projected benefits are realized at 100% or higher. This can be considered the stage where processes have been mastered, the system is operating smoothly, and change has been broadly adopted. In reality, benefits are often overestimated.

    Costs at 50%

    As with benefits, some costs may not kick in until later in the process or when the application is fully operational. In the early phases of implementation, factor in the cost of overlapping technology where you’ll need to run redundant systems and transition any data.

    Costs at 100%

    Costs are realized quicker than benefits as implementation activities are actioned, licensing and maintenance costs are introduced, and resourcing is deployed to support vendor activities internally. Costs that were not live in the early stages are an operational reality at this stage.

    Costs at 100%+

    Costs can be expected to remain relatively static past a certain point, if estimates accurately represented all costs. In many instances, costs can exceed original estimates in the business case, where costs were either underestimated, understated, or missed.

    2.3 Document your costs and expected benefits

    1-2 hours

    Input: Quotes with payment schedule, Budget

    Output: Estimated payment schedule and cost breakdown

    Materials: Spreadsheet or whiteboard, CRM Business Case Template

    Participants: CIO, Application managers, CMO/SVP sales, Marketing, sales, or service SMEs

    1. Estimate costs for the CRM solution. If you’re working with a vendor, provide the initial requirements to quote; otherwise, estimate as closely as you’re able.
    2. Calculate the five-year total cost for the solution to ensure the long-term budget is calculated.
    3. Break down costs for licenses, implementation, training, internal support, and hardware or hosting fees.
    4. Determine a reasonable breakdown of costs for the first year.
    5. Identify where residual costs of the old system may factor in if there are remaining contract obligations during the technology transition.
    6. Create a list of benefits expected to be realized within the same timeline.

    Sample of the table on the previous slide.

    Download the CRM Business Case Template and document the outputs of this exercise in the current-state section of your business case.

    Identify risks and dependencies to mitigate barriers to success as you look to roll out a CRM suite

    A risk assessment will be helpful to better understand what risks need to be mitigated to make the project a success and what risks are pending should the solution not be approved or be delayed.

    Risk Criteria Relevant Questions
    Timeline Uncertainty
    • How much risk is associated with the timeline of the CRM project?
    • Is this timeline realistic and can you reach some value in the first year?
    Success of Similar Projects
    • Have we undertaken previous projects that are similar?
    • Were those successful?
    • Did we note any future steps for improvement?
    Certainty of Forecasts
    • Where have the numbers originated?
    • How comfortable are the sponsors with the revenue and cost forecasts?
    Chance of Cost Overruns
    • How likely is the project to have cost overruns?
    • How much process and design work needs to be done prior to implementation?
    Resource Availability
    • Is this a priority project?
    • How likely are resourcing issues from a technical and business perspective?
    • Do we have the right resources?
    Change During Delivery
    • How volatile is the area in which the project is being implemented?
    • Are changes in the environment likely?
    • How complex are planned integrations?

    2.4 Identify risks to the success of the solution rollout and mitigation plan

    1-2 hours

    Input: List of goals and challenges, Target key performance indicators

    Output: Prioritized list of challenges preventing or hindering improvements for the IT teams

    Materials: Whiteboard/flip charts, CRM Business Case Template

    Participants: CIO, Application managers, CMO/SVP sales, Marketing, sales, or service SMEs

    1. Brainstorm with your colleagues to discuss potential roadblocks and risks that could impact the success of the CRM project.
    2. Identify how these risks could impact your project.
    3. Document the ones that are most likely to occur and derail the project.
    4. Discuss potential solutions to mitigate risks.

    Download the CRM Business Case Template and document the outputs of this exercise in the risk and dependency section of your business case. If the risk assessment needs to be more complex, complete the Risk Indicator Analysis in Info-Tech’s Business Case Workbook.

    Start requirements gathering by identifying your most important use cases across sales, marketing, and service

    Add to your business case by identifying which top-level use cases will meet your goals.

    Examples of target use cases for a CRM project include:

    • Enhance sales acquisition capabilities (i.e. via pipeline management)
    • Enhance customer upsell and cross-sell capabilities
    • Improve customer segmentation and targeting capabilities for multi-channel marketing campaigns
    • Strengthen customer care capabilities to improve customer satisfaction and retention (i.e. via improved case management and service knowledge management)
    • Create actionable insights via enhanced reporting and analytics

    Info-Tech Insight

    Lead with the most important benefit and consider the timeline. Can you reach that goal and report success to your stakeholders within the first year? As you look toward that one-year goal, you can consider secondary benefits, some of which may be opportunities to bring early value in the solution.

    Benefits of a successful deployment of use cases will include:
    • Improved customer satisfaction
    • Improved operational efficiencies
    • Reduced customer turnover
    • Increased platform uptime
    • License or regulatory compliance
    • Positioned for growth

    Typically, we see business benefits in this order of importance. Lead with the outcome that is most important to your stakeholders.

    • Net income increases
    • Revenue generators
    • Cost reductions
    • Improved customer service

    Consider perspectives of each stakeholder to ensure functionality needs are met and high satisfaction results

    Best of breed vs. “good enough” is an important discussion and will feed your success.

    Costs can be high when customizing an ill-fitting module or creating workarounds to solve business problems, including loss of functionality, productivity, and credibility.

    • Start with use cases to drive the initial discussion, then determine which features are mandatory and which are nice-to-haves. Mandatory features will help determine high success for critical functionality and identify where “good enough” is an acceptable state.
    • Consider the implications to implementation and all use cases of buying an all-in-one solution, integration of multiple best-of-breed solutions, or customizing features that were not built into a solution.
    • Be prepared to shelve a use case for this solution and look to alternatives for integration where mandatory features cannot meet highly specialized needs that are outside of traditional CRM solutions.

    Pros and Cons

    Build vs. Buy

    Multi-Source Best of Breed

    Flexibility
    vs.
    architectural complexity

    Vendor Add-Ons & Integrations

    Lower support costs
    vs.
    configuration

    Multi-source Custom

    Flexibility
    vs.
    high skills requirements

    Single Source

    Lower support costs
    vs.
    configuration

    2.5 Define use cases and high-level features for meeting business and technical goals

    1-2 hours

    Input: List of goals and challenges

    Output: Use cases to be used for determining requirements

    Materials: Whiteboard/flip charts, CRM Business Case Template

    Participants: CIO, Application managers, CMO/SVP sales, Marketing, sales, or service SMEs

    1. Identify the key customer engagement use cases that will support your overall goals as defined in the previous section.
    2. The following slide has examples of use case domains that will be enhanced from a CRM platform.
    3. Define high-level goals you wish to achieve in the first year and longer term. If you have more specific KPIs to add, and it is a requirement for your organization’s documentation, add them to this section.
    4. Take note of where processes will need to be improved to benefit from these use-case solutions – the tools are only as good as the process behind them.

    Download the CRM Business Case Template and document the outputs from this exercise in the current-state section of your business case.

    Understand the dominant use-case scenarios across organizations to narrow the list of potential CRM solutions

    Sales
    Enablement

    • Generate leads through multiple channels.
    • Rapidly sort, score, and prioritize leads based on multiple criteria.
    • Create in-depth sales forecasts segmented by multiple criteria (territory, representative, etc.).

    Marketing
    Management

    • Manage marketing campaigns across multiple channels (web, social, email, etc.).
    • Aggregate and analyze customer data to generate market intelligence.
    • Build and deploy customer-facing portals.

    Customer Service
    Management

    • Generate tickets, and triage customer service requests through multiple channels.
    • Track customer service interactions with cases.
    • There is a need to integrate customer records with contact center infrastructure.
    Info-Tech Insight

    Use your understanding of the CRM use case to accelerate the vendor shortlisting process. Since the CRM use case has a direct impact on the prioritization of a platform’s features and capabilities, you can rapidly eliminate vendors from contention or designate superfluous modules as out-of-scope.

    2.5.1 Use Info-Tech’s CRM Use-Case Fit Assessment Tool to align your CRM requirements to the vendor use cases

    30 min

    Input: Understanding of business objectives for CRM project, Use-Case Fit Assessment Tool

    Output: Use-case suitability

    Materials: Use-Case Fit Assessment Tool

    Participants: Core project team, Project managers

    1. Use the Use-Case Fit Assessment Tool to understand how your unique business requirements map into which CRM use case.
    2. This tool will assess your answers and determine your relative fit against the use-case scenarios.
    3. Fit will be assessed as “Weak,” “Moderate,” or “Strong.”
      1. Consider the common pitfalls, which were mentioned earlier, that can cause IT projects to fail. Plan and take clear steps to avoid or mitigate these concerns.
      2. Note: These use-case scenarios are not mutually exclusive, meaning your organization can align with one or more scenarios based on your answers. If your organization shows close alignment to multiple scenarios, consider focusing on finding a more robust solution and concentrate your review on vendors that performed strongly in those scenarios or meet the critical requirements for each.

    Download the CRM Use-Case Fit Assessment Tool

    Once you’ve identified the top-level use cases a CRM must support, elicit, and prioritize granular platform requirements.

    Understanding business needs through requirements gathering is the key to defining everything about what is being purchased, yet it is an area where people often make critical mistakes.

    Info-Tech Insight

    To avoid creating makeshift solutions, an organization needs to gather requirements with the desired future state in mind.

    Risks of poorly scoped requirements

    • Fail to be comprehensive and miss certain areas of scope
    • Focus on how the solution should work instead of what it must accomplish
    • Have multiple levels of detail within the requirements, which are inconsistent and confusing
    • Drill all the way down into system-level detail
    • Add unnecessary constraints based on what is done today rather than focusing on what is needed for tomorrow
    • Omit constraints or preferences that buyers think are “obvious”

    Best practices

    • Get a clear understanding of what the system needs to do and what it is expected to produce
    • Test against the principle of MECE – requirements should be “mutually exclusive and collectively exhaustive”
    • Explicitly state the obvious and assume nothing
    • Investigate what is sold on the market and how it is sold. Use language that is consistent with that of the market and focus on key differentiators – not table stakes
    • Contain the appropriate level of detail – the level should be suitable for procurement and sufficient for differentiating vendors

    Prioritize requirements to assist with vendor selection: focus on priority requirements linked to differentiated capabilities

    Prioritization is the process of ranking each requirement based on its importance to project success. Hold a meeting for the domain SMEs, implementation SMEs, project managers, and project sponsors to prioritize the requirements list. At the conclusion of the meeting, each requirement should be assigned a priority level. The implementation SMEs will use these priority levels to ensure efforts are targeted toward the proper requirements and to plan features available on each release. Use the MoSCoW Model of Prioritization to effectively order requirements.


    Pyramid of the MoSCoW Model.
    The MoSCoW model was introduced by Dai Clegg of Oracle UK in 1994.

    The MoSCoW Model of Prioritization

    Requirements must be implemented for the solution to be considered successful.

    Requirements that are high priority should be included in the solution if possible.

    Requirements are desirable but not necessary and could be included if resources are available.

    Requirements won’t be in the next release, but will be considered for the future releases.

    Base your prioritization on the right set of criteria

    Effective Prioritization Criteria

    Criteria

    Description

    Regulatory & 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.

    2.6 Identify requirements to support your use cases

    1-2 hours

    Input: List of goals and challenges

    Output: Use cases to be used for determining requirements

    Materials: Whiteboard/flip charts, Vendor Evaluation Workbook

    Participants: CIO, Application managers, CMO/SVP sales, Marketing, sales, or service SMEs

    1. Work with the team to identify which features will be most important to support your use cases. Keep in mind there will be some features that will require more effort to implement fully. Add that into your project plan.
    2. Use the features lists on the following slides as a guide to get started on requirements.
    3. Prioritize your requirements list into mandatory features and nice-to-have features (or use the MoSCoW model from the previous slides). This will help you to eliminate vendors who don’t meet bare minimums and to score remaining vendors.
    4. Use this same list to guide your vendor demos.

    Our Improve Requirements Gathering blueprint provides a deep dive into the process of eliciting, analyzing, and validating requirements if you need to go deeper into effective techniques.

    CRM features

    Table stakes vs. differentiating

    What is a table stakes/standard feature?

    • Certain features are standard for all CRM tools, but that doesn’t mean they are all equal.
    • The existence of features doesn’t guarantee their quality or functionality to the standards you need. Never assume that “Yes” in a features list means you don’t need to ask for a demo.
    • If Table Stakes are all you need from your CRM solution, the only true differentiator for the organization is price. Otherwise, dig deeper to find the best price to value for your needs.

    What is a differentiating/additional feature?

    • Differentiating features take two forms:
      • Some CRM platforms offer differentiating features that are vertical specific.
      • Other CRM platforms offer differentiating features that are considered cutting edge. These cutting-edge features may become table stakes over time.

    Table stakes features for CRM

    Account Management Flexible account database that stores customer information, account history, and billing information. Additional functionality includes: contact deduplication, advanced field management, document linking, and embedded maps.
    Interaction Logging and Order History Ability to view all interactions that have occurred between sales teams and the customer, including purchase order history.
    Basic Pipeline Management View of all opportunities organized by their current stage in the sales process.
    Basic Case Management The ability to create and manage cases (for customer service or order fulfilment) and associate them with designated accounts or contacts.
    Basic Campaign Management Basic multi-channel campaign management (i.e. ability to execute outbound email campaigns). Budget tracking and campaign dashboards.
    Reports and Analytics In-depth reports on CRM data with dashboards and analytics for a variety of audiences.
    Mobile Support Mobile access across multiple devices (tablets, smartphones and/or wearables) with access to CRM data and dashboards.

    Additional features for CRM

    Customer Information Management Customizable records with detailed demographic information and the ability to created nested accounts (accounts with associated sub-accounts or contact records).
    Advanced Case Management Ability to track detailed interactions with members or constituents through a case view.
    Employee Collaboration Capabilities for employee-to-employee collaboration, team selling, and activity streams.
    Customer Collaboration Capabilities for outbound customer collaboration (i.e. the ability to create customer portals).
    Lead Generation Capabilities for generating qualified leads from multiple channels.
    Lead Nurturing/Lead Scoring The ability to evaluate lead warmth using multiple customer-defined criteria.
    Pipeline and Deal Management Managing deals through cases, providing quotes, and tracking client deliverables.

    Additional features for CRM (Continued)

    Marketing Campaign Management Managing outbound marketing campaigns via multiple channels (email, phone, social, mobile).
    Customer Intelligence Tools for in-depth customer insight generation and segmentation, predictive analytics, and contextual analytics.
    Multi-Channel Support Capabilities for supporting customer interactions across multiple channels (email, phone, social, mobile, IoT, etc.).
    Customer Service Workflow Management Capabilities for customer service resolution, including ticketing and service management.
    Knowledge Management Tools for capturing and sharing CRM-related knowledge, especially for customer service.
    Customer Journey Mapping Visual workflow builder with automated trigger points and business rules engine.
    Document Management The ability to curate assets and attachments and add them to account or contact records.
    Configure, Price, Quote The ability to create sales quotes/proposals from predefined price lists and rules.

    2.7 Put it all together – port your requirements into a robust RFP template that you can take to market!

    1-2 hours
    1. Once you’ve captured and prioritized your requirements – and received sign-off on them from key stakeholders – it’s time to bake them into a procurement vehicle of your choice.
    2. For complex enterprise systems like a CRM platform, Info-Tech recommends that this should take the form of a structured RFP document.
    3. Use our CRM RFP Template and associated CRM RFP Scoring Tool to jump-start the process.
    4. The next step will be conducting a market scan to identify contenders, and issuing the RFP to a shortlist of viable vendors for further evaluation.

    Need additional guidance on running an effective RFP process? Our Drive Successful Sourcing Outcomes with a Robust RFP Process has everything you need to ace the creation, administration and assessment of RFPs!

    Samples of the CRM Request for Proposal Template and CRM Suite Evaluation and RFP Scoring Tool.

    Download the CRM Request for Proposal Template

    Download the CRM Suite Evaluation and RFP Scoring Tool

    Identify whether vertical-specific CRM platforms are a best fit

    In mature vendor landscapes (like CRM) vendors begin to differentiate themselves by offering vertical-specific platforms, modules, or feature sets. These feature sets accelerate the implantation, decrease the platform’s learning curve, and drive user adoption. The three use cases below cover the most common industry-specific offerings:

    Public Sector

    • Constituent management and communication.
    • Constituent portal deployment for self-service.
    • Segment constituents based on geography, needs and preferences.

    Education

    • Top-level view into the student journey from prospect to enrolment.
    • Track student interactions with services across the institution.
    • Unify communications across different departments.

    Financial Services

    • Determine customer proclivity for new services.
    • Develop self-service banking portals.
    • Track longitudinal customer relationships from first account to retirement management.
    Info-Tech Insight

    Vertical-specific solutions require less legwork to do upfront but could cost you more in the long run. Interoperability and vendor viability must be carefully examined. Smaller players targeting niche industries often have limited integration ecosystems and less funding to keep pace with feature innovation.

    Rein-in ballooning scope for CRM selection projects

    Stretching the CRM beyond its core capabilities is a short-term solution to a long-term problem. Educate stakeholders about the limits of CRM technology.

    Common pitfalls for CRM selection

    • Tangential capabilities may require separate solutions. It is common for stakeholders to list features such as “content management” as part of the new CRM platform. While content management goes hand in hand with the CRM’s ability to manage customer interactions, document management is best handled by a standalone platform.

    Keeping stakeholders engaged and in line

    • Ballooning scope leads to stakeholder dissatisfaction. Appeasing stakeholders by over-customizing the platform will lead to integration and headaches down the road.
    • Make sure stakeholders feel heard. Do not turn down ideas in the midst of an elicitation session. Once the requirements-gathering sessions are completed, the project team has the opportunity to mark requirements as “out of scope” and communicate the reasoning behind the decision.
    • Educate stakeholders on the core functionality of CRM. Many stakeholders do not know the best-fit use cases for CRM platforms. Help end users understand what CRM is good at and where additional technologies will be needed.
    Stock image of a man leaping with a balloon.

    CRM Buyer’s Guide

    Phase 3

    Discover the CRM Market Space & Prepare for Implementation

    Phase 1

    1.1 Define CRM platforms

    1.2 Classify table stakes & differentiating capabilities

    1.3 Explore CRM trends

    Phase 2

    2.1 Build the business case

    2.2 Streamline requirements elicitation for CRM

    2.3 Construct the RFP

    Phase 3

    3.1 Discover key players in the CRM landscape

    3.2 Engage the shortlist & select finalist

    3.3 Prepare for implementation

    This phase will walk you through the following activities:

    • Dive into the key players of the CRM vendor landscape.
    • Understand best practices for building a vendor shortlist.
    • Understand key implementation considerations for CRM.

    This phase involves the following participants:

    • CIO
    • Applications manager
    • Project manager
    • Sales executive
    • Marketing executive
    • Customer service executive

    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.
    Stock image of river rapids.

    Review your use cases to start your shortlist

    Your Info-Tech analysts can help you narrow down the list of vendors that will meet your requirements.

    Next steps will include:
    1. Reviewing your requirements
    2. Checking out SoftwareReviews
    3. Shortlisting your vendors
    4. Conducting demos and detailed proposal reviews
    5. Selecting and contracting with a finalist!
    Image of a person presenting a dashboard of the steps on the left.

    Get to know the key players in the CRM landscape

    The proceeding slides provide a top-level overview of the popular players you will encounter in the CRM shortlisting process.

    Logos of the key players in the CRM landscape (Salesforce, Microsoft, Oracle, HubSpot, etc).

    Evaluate software category leaders through vendor rankings and awards

    SoftwareReviews

    Sample of SoftwareReviews' Data Quadrant Report. Title page of SoftwareReviews' Data Quadrant Report. The Data Quadrant is a thorough evaluation and ranking of all software in an individual category to compare platforms across multiple dimensions.

    Vendors are ranked by their Composite Score, based on individual feature evaluations, user satisfaction rankings, vendor capability comparisons, and likeliness to recommend the platform.

    Sample of SoftwareReviews' Emotional Footprint. Title page of SoftwareReviews' Emotional Footprint. The Emotional Footprint is a powerful indicator of overall user sentiment toward the relationship with the vendor, capturing data across five dimensions.

    Vendors are ranked by their Customer Experience (CX) Score, which combines the overall Emotional Footprint rating with a measure of the value delivered by the solution.

    Speak with category experts to dive deeper into the vendor landscape

    SoftwareReviews

    Icon of a person.


    Fact-based reviews of business software from IT professionals.

    Icon of a magnifying glass over a chart.


    Top-tier data quality backed by a rigorous quality assurance process.

    CLICK HERE to ACCESS

    Comprehensive software reviews to make better IT decisions

    We collect and analyze the most detailed reviews on enterprise software from real users to give you an unprecedented view into the product and vendor before you buy.

    Icon of a tablet.


    Product and category reports with state-of-the-art data visualization.

    Icon of a phone.


    User-experience insight that reveals the intangibles of working with a vendor.

    SoftwareReviews is powered by Info-Tech

    Technology coverage is a priority for Info-Tech, and SoftwareReviews provides the most comprehensive unbiased data on today’s technology. Combined with the insights of our expert analysts, our members receive unparalleled support in their buying journey.

    Logo for Salesforce.
    Est. 1999 | CA, USA | NYSE: CRM

    bio

    Link for their Twitter account. Link for their LinkedIn profile. Link for their website.
    Sales Cloud Enterprise allows you to be more efficient, more productive, more everything than ever before as it allows you to close more deals, accelerate productivity, get more leads, and make more insightful decisions.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:
    • Breadth of features
    • Quality of features
    • Sales management functionality
    Areas to Improve:
    • Cost of service
    • Ease of implementation
    • Telephony and contact center management
    Logo gif for SoftwareReviews.
    8.0
    COMPOSITE SCORE
    8.3
    CX SCORE
    +77
    EMOTIONAL FOOTPRINT
    83%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 600
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a Salesforce screen. Vendor Pulse rating. How often do we hear about Salesforce from our members for CRM? 'Very Frequently'.
    History of Salesforce in a vertical timeline.
    *Pricing correct as of August 2021. Listed in USD and absent discounts.
    See pricing on vendor’s website for latest information.
    Logo for Salesforce.

    “Salesforce is the pre-eminent vendor in the CRM marketplace and is a force to be reckoned with in terms of the breadth and depth of its capabilities. The company was an early disruptor in the category, placing a strong emphasis from the get-go on a SaaS delivery model and strong end-user experience. This allowed them to rapidly gain market share at the expense of more complacent enterprise application vendors. A series of savvy acquisitions over the years has allowed Salesforce to augment their core Sales and Service Clouds with a wide variety of other solutions, from e-commerce to marketing automation to CPQ. Salesforce is a great fit for any organization looking to partner with a market leader with excellent functional breadth, strong interoperability, and a compelling technology and partner ecosystem. All of this comes at a price, however – Salesforce prices at a premium, and our members routinely opine that Salesforce’s commercial teams are overly aggressive – sometimes pushing solutions without a clear link to underpinning business requirements.”

    Ben Dickie
    Research Practice Lead, Info-Tech Research Group

    Sales Cloud Essentials Sales Cloud Professional Sales Cloud Enterprise Sales Cloud Ultimate
    • Starts at $25*
    • Per user/mo
    • Small businesses after basic functionality
    • Starts at $75*
    • Per user/mo
    • Mid-market target
    • Starts at $150*
    • Per user/mo
    • Enterprise target
    • Starts at $300*
    • Per user/mo
    • Strong upmarket feature additions
    Logo for Microsoft.


    Est. 1975 | WA, USA | NYSE: MSFT

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Dynamics 365 Sales is an adaptive selling solution that helps your sales team navigate the realities of modern selling. At the center of the solution is an adaptive, intelligent system – prebuilt and ready to go – that actively monitors myriad signals and distills them into actionable insights.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Business value created
    • Analytics and reporting
    • Lead management

    Areas to Improve:

    • Quote, contract, and proposals
    • Vendor support
    Logo gif for SoftwareReviews.
    8.1
    COMPOSITE SCORE
    8.3
    CX SCORE
    +84
    EMOTIONAL FOOTPRINT
    82%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 198
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a Microsoft screen.Vendor Pulse rating. How often do we hear about Microsoft Dynamics from our Members? 'Very Frequently'.

    History of Microsoft in a vertical timeline.

    *Pricing correct as of June 2022. Listed in USD and absent discounts.
    See pricing on vendor’s website for latest information.
    Logo for Microsoft.
    “”

    “Microsoft Dynamics 365 is a strong and compelling player in the CRM arena. While Microsoft is no stranger to the CRM space, their offerings here have seen steady and marked improvement over the last five years. Good functional breadth paired with a modern user interface and best-in-class Microsoft stack compatibility ensures that we consistently see them on our members’ shortlists, particularly when our members are looking to roll out CRM capabilities alongside other components of the Dynamics ecosystem (such as Finance, Operations, and HR). Today, Microsoft segments the offering into discrete modules for sales, service, marketing, commerce, and CDP. While Microsoft Dynamics 365 is a strong option, it’s occasionally mired by concerns that the pace of innovation and investment lags Salesforce (its nearest competitor). Additionally, the marketing module of the product is softer than some of its competitors, and Microsoft themselves points organizations with complex marketing requirements to a strategic partnership that they have with Adobe.”

    Ben Dickie
    Research Practice Lead, Info-Tech Research Group

    D365 Sales Professional D365 Sales Enterprise D365 Sales Premium
    • Starts at $65*
    • Per user/mo
    • Midmarket focus
    • Starts at $95*
    • Per user/mo
    • Enterprise focus
    • Starts at $135*
    • Per user/mo
    • Enterprise focus with customer intelligence
    Logo for Oracle.


    Est. 1977 | CA, USA | NYSE: ORCL

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Oracle Engagement Cloud (CX Sales) provides a set of capabilities to help sales leaders transition smoothly from sales planning and execution through customer onboarding, account management, and support services.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Quality of features
    • Activity and workflow management
    • Analytics and reporting

    Areas to Improve:

    • Marketing management
    • Product strategy & rate of improvement
    Logo gif for SoftwareReviews.
    7.8
    COMPOSITE SCORE
    7.9
    CX SCORE
    +77
    EMOTIONAL FOOTPRINT
    78%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 140
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of an Oracle screen.Vendor Pulse rating. How often do we hear about Oracle from our members for CRM? 'Frequently'.

    History of Oracle in a vertical timeline.

    Logo for Oracle.

    “Oracle is long-term juggernaut of the enterprise applications space. Their CRM portfolio is diverse – rather than a single stack, there are multiple Oracle solutions (many made by acquisition) that support CRM capabilities – everything from Siebel to JD Edwards to NetSuite to Oracle CX applications. The latter constitute Oracle’s most modern stab at CRM and are where the bulk of feature innovation and product development is occurring within their portfolio. While historically seen as lagging behind other competitors like Salesforce and Microsoft, Oracle has made excellent strides in improving their user experience (via their Redwoods design paradigm) and building new functional capabilities within their CRM products. Indeed, SoftwareReviews shows Oracle performing well in our most recent peer-driven reports. Nonetheless, we most commonly see Oracle as a pricier ecosystem play that’s often subordinate to a heavy Oracle footprint for ERP. Many of our members also express displeasure with Oracle as a vendor and highlight their heavy-handed “threat of audit” approach. ”

    Ben Dickie
    Research Practice Lead, Info-Tech Research Group

    Oracle CX Sales - Pricing Opaque:

    “Request a Demo”

    Logo for SAP.


    Est. 1972 | Germany | NYSE: SAP

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    SAP is the third-largest independent software manufacturer in the world, with a presence in over 120 countries. Having been in the industry for over 40 years, SAP is perhaps best known for its ERP application, SAP ERP.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Ease of data integration

    Areas to Improve:

    • Lead management
    • Marketing management
    • Collaboration
    • Usability & intuitiveness
    • Analytics & reporting
    Logo gif for SoftwareReviews.
    7.4
    COMPOSITE SCORE
    7.8
    CX SCORE
    +74
    EMOTIONAL FOOTPRINT
    75%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 108
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a SAP screen.Vendor Pulse rating. How often do we hear about SAP from our members for CRM? 'Occasionally'.

    History of SAP in a vertical timeline.

    *Pricing correct as of August 2021. Listed in USD and absent discounts.
    See pricing on vendor’s website for latest information.
    Logo for SAP.

    “SAP is another mainstay of the enterprise applications market. While they have a sound breadth of capabilities in the CRM and customer experience space, SAP consistently underperforms in many of our relevant peer-driven SoftwareReviews reports for CRM and adjacent areas. CRM seems decidedly a secondary focus for SAP, behind their more compelling play in the enterprise resource planning (ERP) space. Indeed, most instances where we see SAP in our clients’ shortlists, it’s as an ecosystem play within a broader SAP strategy. If you’re blue on the ERP side, looking to SAP’s capabilities on the CRM front makes logical sense and can help contain costs. If you’re approaching a CRM selection from a greenfield lens and with no legacy vendor baggage for SAP elsewhere, experience suggests you’ll be better served by a vendor that places a higher degree of primacy on the CRM aspect of their portfolio.”

    Ben Dickie
    Research Practice Lead, Info-Tech Research Group

    SAP CRM - Pricing Opaque:

    “Request a Demo”

    Logo for pipedrive.


    Est. 2010 | NY, USA | Private

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Pipedrive brings together the tools and data, the platform focuses sales professionals on fundamentals to advance deals through their pipelines. Pipedrive's goal is to make sales success inevitable - for salespeople and teams.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Sales Management
    • Account & Contact Management
    • Lead Management
    • Usability & Intuitiveness
    • Ease of Implementation

    Areas to Improve:

    • Customer Service Management
    • Marketing Management
    • Product Strategy & Rate of Improvement
    Logo gif for SoftwareReviews.
    8.3
    COMPOSITE SCORE
    8.4
    CX SCORE
    +85
    EMOTIONAL FOOTPRINT
    85%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 262
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a Pipedrive screen.Vendor Pulse rating. How often do we hear about Pipedrive from our members for CRM? 'Occasionally'.

    History of Pipedrive in a vertical timeline.

    *Pricing correct as of June 2022. Listed in USD and absent discounts.
    See pricing on vendor’s website for latest information.
    Logo for Pipedrive.

    “A relatively new offering, Pipedrive has seen explosive growth over the last five years. They’re a vendor that has gone from near-obscurity to popping up frequently on our members’ shortlists. Pipedrive’s secret sauce has been a relentless focus on high-velocity sales enablement. Their focus on pipeline management, lead assessment and routing, and a good single pane of glass for sales reps has driven significant traction for the vendor when sales enablement is the driving rationale behind rolling out a new CRM platform. Bang for your buck is also strong with Pipedrive, with the vendor having a value-driven licensing and implementation model.

    Pipedrive is not without some shortcomings. It’s laser-focus on sales enablement is at the expense of deep capabilities for marketing and service management, and its profile lends itself better to SMBs and lower midmarket than it does large organizations looking for enterprise-grade CRM.”

    Ben Dickie
    Research Practice Lead, Info-Tech Research Group

    Essential Advanced Professional Enterprise
    • Starts at $12.50*
    • Per user/mo
    • Small businesses after basic functionality
    • Starts at $24.90*
    • Per user/mo
    • Small/mid-sized businesses
    • Starts at $49.90*
    • Per user/mo
    • Lower mid-market focus
    • Starts at $99*
    • Per user/mo
    • Enterprise focus
    Logo for SugarCRM.


    Est. 2004 | CA, USA | Private

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Produces Sugar, a SaaS-based customer relationship management application. SugarCRM is backed by Accel-KKR.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Ease of customization
    • Product strategy and rate of improvement
    • Ease of IT administration

    Areas to Improve:

    • Marketing management
    • Analytics and reporting
    Logo gif for SoftwareReviews.
    8.4
    COMPOSITE SCORE
    8.8
    CX SCORE
    +92
    EMOTIONAL FOOTPRINT
    84%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 97
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a SugarCRM screen.Vendor Pulse rating. How often do we hear about SugarCRM from our members for CRM? 'Frequently'.
    History of SugarCRM in a vertical timeline.
    *Pricing correct as of August 2021. Listed in USD and absent discounts.
    See pricing on vendor’s website for latest information.
    Logo for SugarCRM.

    “SugarCRM offers reliable baseline capabilities at a lower price point than other large CRM vendors. While SugarCRM does not offer all the bells and whistles that an Enterprise Salesforce plan might, SugarCRM is known for providing excellent vendor support. If your organization is only after standard features, SugarCRM will be a good vendor to shortlist.

    However, ensure you have the time and labor power to effectively implement and train on SugarCRM’s solutions. SugarCRM does not score highly for user-friendly experiences, with complaints centering on outdated and unintuitive interfaces. Setting up customized modules takes time to navigate, and SugarCRM does not provide a wide range of native integrations with other applications. To effectively determine whether SugarCRM does offer a feasible solution, it is recommended that organizations know exactly what kinds of integrations and modules they need.”

    Thomas Randall
    Research Director, Info-Tech Research Group

    Sugar Professional Sugar Serve Sugar Sell Sugar Enterprise Sugar Market
    • Starts at $52*
    • Per user/mo
    • Min. 3 users
    • Small businesses
    • Starts at $80*
    • Per user/mo
    • Min. 3 users
    • Focused on customer service
    • Starts at $80*
    • Per user/mo
    • Min. 3 users
    • Focused on sales automation
    • Starts at $80*
    • Per user/mo
    • Min. 3 users
    • On-premises, mid-sized businesses
    • Starts at $1000*
    • Priced per month
    • Min. 10k contacts
    • Large enterprise
    Logo for .


    Est. 2006 | MA, USA | HUBS (NYSE)

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Develops software for inbound customer service, marketing, and sales. Software includes CRM, SMM, lead gen, SEO, and web analytics.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Breadth of features
    • Product strategy and rate of improvement
    • Ease of customization

    Areas to Improve:

    • Ease of data integration
    • Customer service management
    • Telephony and call center management
    Logo gif for SoftwareReviews.
    8.3
    COMPOSITE SCORE
    8.4
    CX SCORE
    +84
    EMOTIONAL FOOTPRINT
    86%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 97
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a HubSpot screen.Vendor Pulse rating. How often do we hear about HubSpot from our members for CRM? 'Frequently'.

    History of HubSpot in a vertical timeline.

    *Pricing correct as of August 2021. Listed in USD and absent discounts
    See pricing on vendor’s website for latest information.
    Logo for HubSpot.

    “ HubSpot is best suited for small to mid-sized organizations that need a range of CRM tools to enable growth across sales, marketing campaigns, and customer service. Indeed, HubSpot offers a content management solution that offers a central storage location for all customer and marketing data. Moreover, HubSpot offers plenty of freemium tools for users to familiarize themselves with the software before buying. However, though HubSpot is geared toward growing businesses, smaller organizations may not see high ROI until they begin to scale. The “Starter” and “Professional” plans’ pricing is often cited by small organizations as a barrier to commitment, and the freemium tools are not a sustainable solution. If organizations can take advantage of discount behaviors from HubSpot (e.g. a startup discount), HubSpot will be a viable long-term solution. ”

    Thomas Randall
    Research Director, Info-Tech Research Group

    Starter Professional Enterprise
    • Starts at $50*
    • Per month
    • Min. 2 users
    • Small businesses
    • Starts at $500*
    • Per month
    • Min. 5 users
    • Small/mid-sized businesses
    • Starts at $1200*
    • Billed yearly
    • Min. 10 users
    • Mid-sized/small enterprise
    Logo for Zoho.


    Est. 1996 | India | Private

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Zoho Corporation offers a cloud software suite, providing a full operating system for CRM, alongside apps for finance, productivity, HR, legal, and more.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Business value created
    • Breadth of features
    • Collaboration capabilities

    Areas to Improve:

    • Usability and intuitiveness
    Logo gif for SoftwareReviews.
    8.7
    COMPOSITE SCORE
    8.9
    CX SCORE
    +92
    EMOTIONAL FOOTPRINT
    85%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 152
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a Zoho screen.Vendor Pulse rating. How often do we hear about Zoho from our members for CRM? 'Occasionally'.

    History of Zoho in a vertical timeline.

    *
    See pricing on vendor’s website for latest information.
    Logo for Zoho.

    “Zoho has a long list of software solutions for businesses to run end to end. As one of Zoho’s earliest software releases, though, ZohoCRM remains a flagship product. ZohoCRM’s pricing is incredibly competitive for mid/large enterprises, offering high business value for its robust feature sets. For those organizations that already utilize Zoho solutions (such as its productivity suite), ZohoCRM will be a natural extension.

    However, small/mid-sized businesses may wonder how much ROI they can get from ZohoCRM, when much of the functionality expected from a CRM (such as workflow automation) cannot be found until one jumps to the “Enterprise” plan. Given the “Enterprise” plan’s pricing is on par with other CRM vendors, there may not be much in a smaller organization’s eyes that truly distinguishes ZohoCRM unless they are already invested Zoho users.”

    Thomas Randall
    Research Director, Info-Tech Research Group

    Standard Professional Enterprise Ultimate
    • Starts at $20*
    • Per user/mo
    • Small businesses after basic functionality
    • Starts at $35*
    • Per user/mo
    • Small/mid-sized businesses
    • Adds inventory management
    • Starts at $50*
    • Per user/mo
    • Mid-sized/small enterprise
    • Adds Zia AI
    • Starts at $65*
    • Per user/mo
    • Enterprise
    • Bundles Zoho Analytics
    Logo for Zendesk.


    Est. 2009 | CA, USA | ZEN (NYSE)

    bio

    Link for their Twitter account.Link for their LinkedIn profile.Link for their website.
    Software developer for customer service. Founded in Copenhagen but moved to San Francisco after $6 million Series B funding from Charles River Ventures and Benchmark Capital.

    SoftwareReviews’ Enterprise CRM Rankings

    Strengths:

    • Quality of features
    • Breadth of features
    • Vendor support

    Areas to Improve:

    • Business value created
    • Ease of customization
    • Usability and intuitiveness
    Logo gif for SoftwareReviews.
    7.8
    COMPOSITE SCORE
    7.9
    CX SCORE
    +80
    EMOTIONAL FOOTPRINT
    72%
    LIKELINESS TO RECOMMEND
    DOWNLOAD REPORT 50
    REVIEWS
    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF and NPS scores pulled from live data as of June 2022. Rankings and ”strengths” and ”areas to improve” pulled from January 2022 Category Report.
    Sample of a Zendesk screen.Vendor Pulse rating. How often do we hear about Zendesk from our members for CRM? 'Rarely'.

    History of Zendesk in a vertical timeline.

    *Pricing correct as of August 2021. Listed in USD and absent discounts
    See pricing on vendor’s website for latest information.
    Logo for Zendesk.

    “Zendesk’s initial growth was grounded in word-of-mouth advertising, owing to the popularity of its help desk solution’s design and functionality. Zendesk Sell has followed suit, receiving strong feedback for the breadth and quality of its features. Organizations that have already reaped the benefits of Zendesk’s customer service suite will find Zendesk Sell a straightforward fit for their sales teams.

    However, it is important to note that Zendesk Sell is predominantly focused on sales. Other key components of a CRM, such as marketing, are less fleshed out. Organizations should ensure they verify what requirements they have for a CRM before choosing Zendesk Sell – if sales process requirements (such as forecasting, call analytics, and so on) are but one part of what the organization needs, Zendesk Sell may not offer the highest ROI for the pricing offered.”

    Thomas Randall
    Research Director, Info-Tech Research Group

    Sell Team Sell Professional Sell Enterprise
    • Starts at $19*
    • Per user/mo
    • Max. 3 users
    • Small businesses
    • Basic functionality
    • Starts at $49*
    • Per user/mo
    • Small/mid-sized businesses
    • Advanced analytics
    • Starts at $99*
    • Per user/mo
    • Mid-sized/small enterprise
    • Task automation

    Speak with category experts to dive deeper into the vendor landscape

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    We collect and analyze the most detailed reviews on enterprise software from real users to give you an unprecedented view into the product and vendor before you buy.

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    Technology coverage is a priority for Info-Tech, and SoftwareReviews provides the most comprehensive unbiased data on today’s technology. Combined with the insights of our expert analysts, our members receive unparalleled support in their buying journey.

    Conduct a day of rapid-fire vendor demos

    Zoom in on high-value use cases and answers to targeted questions

    Make sure the solution will work for your business

    Give each vendor 90 to 120 minutes to give a rapid-fire presentation. We suggest the following structure:

    • 30 minutes: company introduction and vision
    • 60 minutes: walk-through of two or three high-value demo scenarios
    • 30 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 video conference) 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.

    Graphic of an alarm clock.
    To kick-start scripting your demo scenarios, leverage our CRM Demo Script Template.

    A vendor scoring model provides a clear anchor point for your evaluation of CRM vendors based on a variety of inputs

    A vendor scoring model is a systematic method for effectively assessing competing vendors. A weighted-average scoring model is an approach that strikes a strong balance between rigor and evaluation speed.

    Info-Tech Insight

    Even the best scoring model will still involve some “art” rather than science – scoring categories such as vendor viability always entails a degree of subjective interpretation.

    How do I build a scoring model?

    • Start by shortlisting the key criteria you will use to evaluate your vendors. Functional capabilities should always be a critical category, but you’ll also want to look at criteria such as affordability, architectural fit, and vendor viability.
    • Depending on the complexity of the project, you may break down some criteria into sub-categories to assist with evaluation (for example, breaking down functional capabilities into constituent use cases so you can score each one).
    • Once you’ve developed the key criteria for your project, the next step is weighting each criterion. Your weightings should reflect the priorities for the project at hand. For example, some projects may put more emphasis on affordability, others on vendor partnership.
    • Using the information collected in the subsequent phases of this blueprint, score each criterion from 1-100, then multiply by the weighting factor. Add up the weighted scores to arrive at the aggregate evaluation score for each vendor on your shortlist.

    What are some of the best practices?

    • While the criteria for each project may vary, it’s helpful to have an inventory of repeatable criteria that can be used across application selection projects. The next slide contains an example that you can add or subtract from.
    • Don’t go overboard on the number of criteria: five to 10 weighted criteria should be the norm for most projects. The more criteria (and sub-criteria) you must score against, the longer it will take to conduct your evaluation. Always remember, link the level of rigor to the size and complexity of your project! It’s possible to create a convoluted scoring model that takes significant time to fill out but yields little additional value.
    • Creation of the scoring model should be a consensus-driven activity among IT, procurement, and the key business stakeholders – it should not be built in isolation. Everyone should agree on the fundamental criteria and weights that are employed.
    • Consider using not just the outputs of investigative interviews and RFP responses to score vendors, but also third-party review services like SoftwareReviews.

    Define how you’ll score CRM proposals and demos

    Define key CRM selection criteria for your organization – this should be informed by the following goals, use cases, and requirements covered in the blueprint.

    Criteria

    Description

    Functional CapabilitiesHow well does the vendor align with the top-priority functional requirements identified in your accelerated needs assessment? What is the vendor’s functional breadth and depth?
    AffordabilityHow affordable is this vendor? Consider a three-to-five-year total cost of ownership (TCO) that encompasses not just licensing costs, but also implementation, integration, training, and ongoing support costs.
    Architectural FitHow well does this vendor align with our direction from an enterprise architecture perspective? How interoperable is the solution with existing applications in our technology stack? Does the solution meet our deployment model preferences?
    ExtensibilityHow easy is it to augment the base solution with native or third-party add-ons as our business needs may evolve?
    ScalabilityHow easy is it to expand the solution to support increased user, data, and/or customer volumes? Are there any capacity constraints of the solution?
    Vendor ViabilityHow viable is this vendor? Are they an established player with a proven track record, or a new and untested entrant to the market? What is the financial health of the vendor? How committed are they to the particular solution category?
    Vendor VisionDoes the vendor have a cogent and realistic product roadmap? Are they making sensible investments that align with your organization’s internal direction?
    Emotional FootprintHow well does the vendor’s organizational culture and team dynamics align to yours?
    Third-Party Assessments and/or ReferencesHow well-received is the vendor by unbiased, third-party sources like SoftwareReviews? For larger projects, how well does the vendor perform in reference checks (and how closely do those references mirror your own situation)?

    Decision Point: Select the Finalist

    After reviewing all vendor responses to your RFP, conducting vendor demos, and running a pilot project (if applicable), the time has arrived to select your finalist.

    All core selection team members should hold a session to score each shortlisted vendor against the criteria enumerated on the previous slide – based on an in-depth review of proposals, the demo sessions, and any pilots or technical assessments.

    The vendor that scores the highest in aggregate is your finalist.

    Congratulations – you are now ready to proceed to final negotiation and inking a contract. This blueprint provides a detailed approach on the mechanics of a major vendor negotiation.

    Leverage Info-Tech’s research to plan and execute your CRM implementation

    Use Info-Tech Research Group’s three phase implementation process to guide your own planning.
    The three phases of software implementation: 'Assess', 'Prepare', 'Govern & Course Correct'. Sample of the 'Governance and Management of Enterprise Software Implementation' blueprint.

    Establish and execute an end-to-end, agile framework to succeed with the implementation of a major enterprise application.

    Visit this link

    Prepare for implementation: establish a clear resourcing plan

    Organizations rarely have sufficient internal staffing to resource a CRM project on their own. Consider the options for closing the gap in internal resource availability.

    The most common project resourcing structures for enterprise projects are:
    Your own staff +
    1. Management consultant
    2. Vendor consultant
    3. System integrator
    Info-Tech Insight

    When contemplating a resourcing structure, consider:

    • Availability of in-house implementation competencies and resources.
    • Timeline and constraints.
    • Integration environment complexity.

    Consider the following:

    Internal vs. External Roles and Responsibilities

    Clearly delineate between internal and external team responsibilities and accountabilities, and communicate this to your technology partner up front.

    Internal vs. External Accountabilities

    Accountability is different than responsibility. Your vendor or SI partner may be responsible for completing certain tasks, but be careful not to outsource accountability for the implementation – ultimately, the internal team will be accountable.

    Partner Implementation Methodologies

    Often vendors and/or SIs will have their own preferred implementation methodology. Consider the use of your partner's implementation methodology; however, you know what will work for your organization.

    Establish team composition

    1 – 2 hours

    Input: Skills assessment, Stakeholder analysis, Vendor partner selection

    Output: Team composition

    Materials: Sticky notes, Whiteboard, Markers

    Participants: Project team

    Use Info-Tech’s Governance and Management of Enterprise Software Implementation to establish your team composition. Within that blueprint:

    1. Assess the skills necessary for an implementation. Inventory the competencies required for the implementation project team. Map your internal resources to each competency as applicable.
    2. Select your internal implementation team. Determine who needs to be involved closely with the implementation. Key stakeholders should also be considered as members of your implementation team.
    3. Identify the number of external consultants/support required for implementation. Consider your in-house skills, timeline considerations, integration environment complexity, and cost constraints as you make your team composition plan. Be sure to dedicate an internal resource to managing the vendor and partner relationships.
    4. Document the roles and responsibilities, accountabilities, and other expectations of your team as they relate to each step of the implementation.

    Governance and Management of Enterprise Software Implementation

    Sample of the 'Governance and Management of Enterprise Software Implementation' blueprint.Follow our iterative methodology with a task list focused on the business must-have functionality to achieve rapid execution and to allow staff to return to their daily work sooner.

    Visit this link

    Ensure your implementation team has a high degree of trust and communication

    If external partners are needed, dedicate an internal resource to managing the vendor and partner relationships.

    Communication

    Teams must have some type of communication strategy. This can be broken into:
    • Regularity: Having a set time each day to communicate progress and a set day to conduct retrospectives.
    • Ceremonies: Injecting awards and continually emphasizing delivery of value can encourage relationship-building and constructive motivation.
    • Escalation: Voicing any concerns and having someone responsible for addressing those concerns.

    Proximity

    Distributed teams create complexity as communication can break down. This can be mitigated by:
    • Location: Placing teams in proximity can close the barrier of geographical distance and time zone differences.
    • Inclusion: Making a deliberate attempt to pull remote team members into discussions and ceremonies.
    • Communication tools: Having the right technology (e.g. video conference) can help bring teams closer together virtually.

    Trust

    Members should trust other members are contributing to the project and completing their required tasks on time. Trust can be developed and maintained by:
    • Accountability: Having frequent quality reviews and feedback sessions. As work becomes more transparent, people become more accountable.
    • Role clarity: Having a clear definition of what everyone’s role is.

    Plan for your implementation of CRM based on deployment model

    Place your CRM application into your IT landscape by configuring and adjusting the tool based on your specific deployment method.

    Icon of a housing development.
    On-Premises

    1. Identify custom features and configuration items
    2. Train developers and IT staff on new software investment
    3. Install software
    4. Configure software
    5. Test installation and configuration
    6. Test functionality

    Icon of a cloud upload.
    SaaS-based

    1. Train developers and IT staff on new software investment
    2. Set up connectivity
    3. Identify VPN or internal solution
    4. Check firewalls
    5. Validate bandwidth regulations

    Integration is a top IT challenge and critical to the success of the CRM suite

    CRM suites are most effective when they are integrated with ERP and MarTech solutions.

    Data interchange between the CRM solution and other data sources is necessary

    Formulate a comprehensive map of the systems, hardware, and software with which the CRM solution must be able to integrate. Customer data needs to constantly be synchronized: without this, you lose out on one of the primary benefits of CRM. These connections must be bidirectional for maximum value (i.e. marketing data to the CRM, customer data to MMS).
    Specialized projects that include an intricate prospect or customer list and complex rules may need to be built by IT The more custom fields you have in your CRM suite and point solutions, the more schema mapping you will have to do. Include this information in the RFP to receive guidance from vendors on the ease with which integration can be achieved.

    Pay attention to legacy apps and databases

    If you have legacy CRM, POS, or customer contact software, more custom code will be required. Many vendors claim that custom integration can be performed for most systems, but custom comes at a cost. Don’t just ask if they can integrate; ask how long it will take and for references from organizations which have been successful in this.
    When assessing the current application portfolio that supports CRM, the tendency will be to focus on the applications under the CRM umbrella, relating mostly to marketing, sales, and customer service. Be sure to include systems that act as inputs to, or benefit due to outputs from, the CRM or similar applications.

    CRM data flow

    Example of a CRM data flow.

    Be sure to include enterprise applications that are not included in the CRM application portfolio. Popular systems to consider for POIs include billing, directory services, content management, and collaboration tools.

    Sample CRM integration map

    Sample of a CRM integration map.

    Scenario: Failure to address CRM data integration will cost you in the long run

    A company spent $15 million implementing a new CRM system in the cloud and decided NOT to spend an additional $1.5 million to do a proper cloud DI tool procurement. The mounting costs followed.

    Cost Element – Custom Data Integration

    $

    2 FTEs for double entry of sales order data $ 100,000/year
    One-time migration of product data to CRM $ 240,000 otc
    Product data maintenance $ 60,000/year
    Customer data synchronization interface build $ 60,000 otc
    Customer data interface maintenance $ 10,000/year
    Data quality issues $ 100,000/year
    New SaaS integration built in year 3 $ 300,000 otc
    New SaaS integration maintenance $ 150,000/year

    Cost Element – Data Integration Tool

    $

    DI strategy and platform implementation $1,500,000 otc
    DI tool maintenance $ 15,000/year
    New SaaS integration point in year 3 $ 300,000 otc
    Thumbs down color coded red to the adjacent chart. Custom integration is costing this organization $300,000/year for one SaaS solution.
    Thumbs up color coded blue to the adjacent chart.

    The proposed integration solution would have paid for itself in 3-4 years and saved exponential costs in the long run.

    Proactively address data quality in the CRM during implementation

    Data quality is a make-or-break issue in a CRM platform; garbage in is garbage out.
    • CRM suites are one of the leading offenders for generating poor-quality data. As such, it’s important to have a plan in place for structuring your data architecture in such a way the poor data quality is minimized from the get-go.
    • Having a plan for data quality should precede data migration efforts; some types of poor data quality can be mitigated prior to migration.
    • There are five main types of poor-quality data found in CRM platforms.
      • Duplicate data: Duplicate records can be a major issue. Leverage dedicated deduplication tools to eliminate them.
      • Stale data: Out-of-date customer information can reduce the usefulness of the platform. Use automated social listening tools to help keep data fresh.
      • Incomplete data: Records with missing info limit platform value. Specify data validation parameters to mandate that all fields are filled in.
      • Invalid and conflicting data: These can create cascading errors. Establishing conflict resolution rules in ETL tools for data integration can lessen issues.
    Info-Tech Insight

    If you have a complex POI environment, appoint data stewards for each major domain and procure a deduplication tool. As the complexity of CRM system-to-system integrations increases, so will the chance that data quality errors will crop up – for example, bidirectional POI with other sources of customer information dramatically increase the chances of conflicting/duplicate data.

    Profile data, eliminate dead weight, and enforce standards to protect data

    Identify and eliminate dead weight

    Poor data can originate in the firm’s CRM system. Custom queries, stored procedures, or profiling tools can be used to assess the key problem areas.

    Loose rules in the CRM system may lead to records of no significant value in the database. Those rules need to be fixed, but if changes are made before the data is fixed, users could encounter database or application errors, which will reduce user confidence in the system.

    • Conduct a data flow analysis: map the path that data takes through the organization.
    • Use a mass cleanup to identify and destroy dead weight data. Merge duplicates either manually or with the aid of software tools. Delete incomplete data, taking care to reassign related data.
    • COTS packages typically allow power users to merge records without creating orphaned records in related tables, but custom-built applications typically require IT expertise.

    Create and enforce standards and policies

    Now that the data has been cleaned, it’s important to protect the system from relapsing.

    Work with business users to find out what types of data require validation and which fields should have changes audited. Whenever possible, implement drop-down lists to standardize values and make programming changes to ensure that truncation ceases.

    • Truncated data is usually caused by mismatches in data structures during either one-time data loads or ongoing data integrations.
    • Don’t go overboard on assigning required fields; users will just put key data in note fields.
    • Discourage the use of unstructured note fields: the data is effectively lost except if it gets subpoenaed.
    Info-Tech Insight

    Data quality concerns proliferate with the customization level of your platform. The more extensive the custom integration points and module/database extensions that you have made, the more you will need to have a plan in place for managing data quality from a reactive and proactive standpoint.

    Create a formal communication process throughout the CRM implementation

    Establish a comprehensive communication process around the CRM enterprise roll-out to ensure that end users stay informed.

    The CRM kick-off meeting(s) should encompass: 'The high-level application overview', 'Target business-user requirements', 'Target quality of service (QoS) metrics', 'Other IT department needs', 'Tangible business benefits of application', 'Special consideration needs'. The overall objective for interdepartmental CRM kick-off meetings is to confirm that all parties agree on certain key points and understand platform rationale and functionality.

    The kick-off process will significantly improve internal communications by inviting all affected internal IT groups, including business units, to work together to address significant issues before the application process is formally activated.

    Department groups or designated trainers should take the lead and implement a process for:

    • Scheduling CRM platform roll-out/kick-off meetings.
    • Soliciting preliminary input from the attending groups to develop further training plans.
    • Establishing communication paths and the key communication agents from each department who are responsible for keeping lines open moving forward.

    Ensure requirements are met with robust user acceptance testing

    User acceptance testing (UAT) is a test procedure that helps to ensure end-user requirements are met. Test cases can reveal bugs before the suite is implemented.

    Five Secrets of UAT Success

    Bracket with colors corresponding the adjacent list items.

    1

    Create the plan With the information collected from requirements gathering, create the plan. Make sure this information is added to the main project plan documentation.

    2

    Set the agenda The time allotted will vary depending on the functionality being tested. Ensure that the test schedule allows for the resolution of issues and discussion.

    3

    Determine who will participate Work with the relevant stakeholders to identify the people who can best contribute to system testing. Look for experienced power users who have been involved in earlier decision making about the system.

    4

    Highlight acceptance criteria Together with the UAT group, pinpoint the criteria to determine system acceptability. Refer back to requirements specified in use cases in the initial requirements-gathering stages of the project.

    5

    Collect end user feedback Weaknesses in resolution workflow design, technical architecture, and existing customer service processes can be highlighted and improved on with ongoing surveys and targeted interviews.

    Calculate post-deployment metrics to assess measurable value of the project

    Track the post-deployment results from the project and compare the metrics to the current state and target state.

    CRM Selection and Implementation Metrics
    Description Formula Current or Estimated Target Post-Deployment
    End-User Satisfaction # of Satisfied Users
    # of End Users
    70% 90% 85%
    Percentage Over/Under Estimated Budget Amount Spent - 100%
    Budget
    5% 0% 2%
    Percentage Over/Under Estimated Timeline Project Length - 100%
    Estimated Timeline
    10% -5% -10%

    CRM Strategy Metrics
    Description Formula Current or Estimated Target Post-Deployment
    Number of Leads Generated (per month) # of Leads Generated 150 200 250
    Average Time to Resolution (in minutes) Time Spent on Resolution
    # of Resolutions
    30 minutes 10 minutes 15 minutes
    Cost per Interaction by Campaign Total Campaign Spending
    # of Customer Interactions
    $17.00 $12.00 $12.00

    Select the Right CRM Platform

    CRM technology is critical to facilitate an organization’s relationships with customers, service users, employees, and suppliers. Having a structured approach to building a business case, defining key requirements, and engaging with the right shortlist of vendors to pick the best finalist is crucial.

    This selection guide allows organizations to execute a structured methodology for picking a CRM that aligns with their needs. This includes:
    • Alignment and prioritization of key business and technology drivers for a CRM selection business case.
    • Identification of key use cases and requirements for CRM.
    • Construction of a robust CRM RFP.
    • A strong market scan of key players.
    • A survey of crucial implementation considerations.
    This formal CRM selection initiative will drive business-IT alignment, identify sales and marketing automation priorities, and allow for the rollout of a platform that’s highly likely to satisfy all stakeholder needs.

    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

    Insight summary

    Stakeholder satisfaction is critical to your success

    Choosing a solution for a single use case and then expanding it to cover other purposes can be a way to quickly gain approvals and then make effective use of dollars spent. However, this can also be a nightmare if the product is not fit for purpose and requires significant customization effort for future use cases. Identify use cases early, engage stakeholders to define success, and recognize where you need to find balance between a single off-the-shelf CRM platform and adjacent MarTech or sales enablement systems.

    Build a business case

    An effective business case isn’t a single-purpose document for obtaining funding. It can also be used to drive your approach to product selection, requirements gathering, and ultimately evaluating stakeholder and user satisfaction.

    Use your business case to define use cases and milestones as well as success.

    Balance process with technology

    A new solution with old processes will result in incremental increased value. Evaluate existing processes and identify opportunities to improve and remove workarounds. Then define requirements.

    You may find that the tools you have would be adequate with an upgrade and tool optimization. If not, this exercise will prepare you to select the right solution for your current and future needs.

    Drive toward early value

    Lead with the most important benefit and consider the timeline. Most stakeholders will lose interest if they don’t realize benefits within the fist year. Can you reach your goal and report success within that timeline?

    Identify secondary, incremental customer engagement improvements that can be made as you work toward the overall goal to be achieved at the one-year milestone.

    Related Info-Tech Research

    Stock image of an office worker. Build a Strong Technology Foundation for Customer Experience Management
    • Any CRM project needs to be guided by the broader strategy around customer engagement. This blueprint explores how to create a strong technology enablement approach for CXM using voice of the customer analysis.
    Stock image of a target with arrows. Improve Requirements Gathering
    • 70% of projects that fail do so because of poor requirements. If you need to double-click on best practices for eliciting, analyzing, and validating requirements as you build up your CRM picklist and RFP, this blueprint will equip you with the knowledge and tools you need to hit the ground running.
    Stock image of a pen on paper. Drive Successful Sourcing Outcomes with a Robust RFP Process
    • Managing a complex RFP process for an enterprise application like a CRM platform can be a challenging undertaking. This blueprint zooms into how to build, run, administer, and evaluate RFP responses effectively.

    Bibliography

    “Doomed From the Start? Why a Majority of Business and IT Teams Anticipate Their Software Development Projects Will Fail.” Geneca, 25 Jan. 2017. Web.

    Hall, Kerrie. “The State of CRM Data Management 2020.” Validity. 27 April 2020. Web.

    Hinchcliffe, Dion. “The Evolving Role of the CIO and CMO in Customer Experience.” ZDNet, 22 Jan. 2020. Web.

    Klie, L. “CRM Still Faces Challenges, Most Speakers Agree: CRM Systems Have Been Around for Decades, but Interoperability and Data Siloes Still Have to Be Overcome.” CRM Magazine, vol. 23, no. 5, 2019, pp. 13-14.

    Markman, Jon. "Netflix Knows What You Want... Before You Do." Forbes. 9 Jun. 2017. Web.

    Morgan, Blake. “50 Stats That Prove The Value Of Customer Experience.” Forbes, 24 Sept. 2019. Web.

    Taber, David. “What to Do When Your CRM Project Fails.” CIO Magazine, 18 Sept. 2017. Web.

    “The State of Project Management Annual Survey 2018.” Wellingtone, 2018. Web.

    “The History of Microsoft Dynamics.” Eswelt. 2021. Accessed 8 June 2022.

    “Unlock the Mysteries of Your Customer Relationships.” Harvard Business Review. 1 July 2014. Accessed 30 Mar. 2016.

    Deliver a Customer Service Training Program to Your IT Department

    • Buy Link or Shortcode: {j2store}484|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
    • member rating average dollars saved: $4,339 Average $ Saved
    • member rating average days saved: 6 Average Days Saved
    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk
    • The scope of service that the service desk must provide has expanded. With the growing complexity of technologies to support, it becomes easy to forget the customer service side of the equation. Meanwhile, customer expectations for prompt, frictionless, and exceptional service from anywhere have grown.
    • IT departments struggle to hire and retain talented service desk agents with the right mix of technical and customer service skills.
    • Some service desk agents don’t believe or understand that customer service is an integral part of their role.
    • Many IT leaders don’t ask for feedback from users to know if there even is a customer service problem.

    Our Advice

    Critical Insight

    • There’s a common misconception that customer service skills can’t be taught, so no effort is made to improve those skills.
    • Even when there is a desire to improve customer service, it’s hard for IT teams to make time for training and improvement when they’re too busy trying to keep up with tickets.
    • A talented service desk agent with both great technical and customer service skills doesn’t have to be a rare unicorn, and an agent without innate customer service skills isn’t a lost cause. Relevant and impactful customer service habits, techniques, and skills can be taught through practical, role-based training.
    • IT leaders can make time for this training through targeted, short modules along with continual on-the-job coaching and development.

    Impact and Result

    • Good customer service is critical to the success of the service desk. How a service desk treats its customers will determine its customers' satisfaction with not only IT but also the company as a whole.
    • Not every technician has innate customer service skills. IT managers need to provide targeted, practical training on what good customer service looks like at the service desk.
    • One training session is not enough to make a change. Leaders must embed the habits, create a culture of engagement and positivity, provide continual coaching and development, regularly gather customer feedback, and seek ways to improve.

    Deliver a Customer Service Training Program to Your IT Department Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should deliver customer service training to your team, 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:

    • Deliver a Customer Service Training Program to Your IT Department – Executive Brief
    • Deliver a Customer Service Training Program to Your IT Department Storyboard

    1. Deliver customer service training to your IT team

    Understand the importance of customer service training, then deliver Info-Tech's training program to your IT team.

    • Customer Service Training for the Service Desk – Training Deck
    • Customer Focus Competency Worksheet
    • Cheat Sheet: Service Desk Communication
    • Cheat Sheet: Service Desk Written Communication
    [infographic]

    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.

    Extend Agile Practices Beyond IT

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    • Your organization has started to realize benefits from adopting Agile principles and practices. However, these advances are contained within your IT organization.
    • You are seeking to extend Agile development beyond IT into other areas of the organization. You are looking for a coordinated approach aligned to business priorities.

    Our Advice

    Critical Insight

    • Not all lessons from scaling Agile to IT are transferable. IT Agile scaling processes are tailored to IT’s scope, team, and tools, which may not account for diverse attributes within your organization.
    • Control may be necessary for coordination. With increased time-to-value, enforcing consistent cadences, reporting, and communication is a must if teams are not disciplined or lack good governance.
    • Extend Agile in departments tolerant to change. Incrementally roll out Agile in departments where its principles are accepted (e.g. a culture that embraces failures as lessons).

    Impact and Result

    • Complete an assessment of your prior efforts to scale Agile across IT to gauge successful, consistent adoption. Identify the business objectives and the group drivers that are motivating the extension of Agile to the business.
    • Understand the challenges that you may face when extending Agile to business partners. Investigate the root causes of existing issues that can derail your efforts.
    • Ideate solutions to your scaling challenges and envision a target state for your growing Agile environment. Your target state should realize new opportunities to drive more business value and eliminate current activities driving down productivity.
    • Coordinate the implementation and execution of your scaling Agile initiatives with an implementation action plan. This collaborative document will lay out the process, roles, goals, and objectives needed to successfully manage your Agile environment.

    Extend Agile Practices Beyond IT Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should extend Agile practices to improve product delivery, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

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

    1. Assess your readiness to scale agile vertically

    Assess your readiness to scale Agile vertically by identifying and mitigating potential Agile maturity gaps remaining after scaling Agile across your IT organization.

    • Extend Agile Practices Beyond IT – Phase 1: Assess Your Readiness to Scale Agile Vertically
    • Agile Maturity Assessment Tool

    2. Establish an enterprise scaled agile framework

    Complete an overview of various scaled Agile models to help you develop your own customized delivery framework.

    • Extend Agile Practices Beyond IT – Phase 2: Establish an Enterprise Scaled Agile Framework
    • Framework Selection Tool

    3. Create your implementation action plan

    Determine the effort and steps required to implement your extended delivery framework.

    • Extend Agile Practices Beyond IT – Phase 3: Create Your Implementation Action Plan
    [infographic]

    Workshop: Extend Agile Practices Beyond 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 Assess Current State of Agile Maturity

    The Purpose

    Assess your readiness to scale Agile vertically.

    Identify and mitigate potential Agile maturity gaps remaining after scaling Agile across your IT organization.

    Key Benefits Achieved

    IT Agile maturity gaps identified and mitigated to ensure successful extension of Agile to the business

    Activities

    1.1 Characterize your Agile implementation using the CLAIM model.

    1.2 Assess the maturity of your Agile teams and organization.

    Outputs

    Maturity gaps identified with mitigation requirements

    2 Establish an Enterprise Scaled Agile Framework

    The Purpose

    Complete a review of scaled Agile models to help you develop your own customized delivery framework.

    Key Benefits Achieved

    A customized Agile delivery framework

    Activities

    2.1 Explore various scaled frameworks.

    2.2 Select an appropriate scaled framework for your enterprise.

    2.3 Define the future state of your team and the communication structure of your functional business group.

    Outputs

    Blended framework delivery model

    Identification of team and communication structure impacts resulting from the new framework

    3 Create Your Implementation Action Plan

    The Purpose

    Create your implementation action plan for the new Agile delivery framework.

    Key Benefits Achieved

    A clearly defined action plan

    Activities

    3.1 Define your value drivers.

    3.2 Brainstorm the initiatives that must be completed to achieve your target state.

    3.3 Estimate the effort of your Agile initiatives.

    3.4 Define your Agile implementation action plan.

    Outputs

    List of target state initiatives

    Estimation of effort to achieve target state

    An implementation action plan

    Effectively Recognize IT Employees

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    • Parent Category Name: Engage
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    • Even when organizations do have recognition programs, employees want more recognition than they currently receive.
    • In a recent study, McLean & Company found that 69% of IT employees surveyed felt they were not adequately praised and rewarded for superior work.
    • In a lot of cases, the issue with recognition programs isn’t that IT departments haven’t thought about the importance but rather that they haven’t focused on proper execution.

    Our Advice

    Critical Insight

    • You’re busy – don’t make your recognition program more complicated than it needs to be. Focus on day-to-day ideas and actively embed recognition into your IT team’s culture.
    • Recognition is impactful independent of rewards (i.e. items with a monetary value), but rewarding employees without proper recognition can be counterproductive. Put recognition first and use rewards as a way to amplify its effectiveness.

    Impact and Result

    • Info-Tech tools and guidance will help you develop a successful and sustainable recognition program aligned to strategic goals and values.
    • By focusing on three key elements – customization, alignment, and transparency – you can improve your recognition culture within four weeks, increasing employee engagement and productivity, improving relationships, and reducing turnover.

    Effectively Recognize IT Employees Research & Tools

    Start here – read the Executive Brief

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

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

    • Effectively Recognize IT Employees – Executive Brief
    • Effectively Recognize IT Employees – Phases 1-3

    1. Assess the current recognition landscape

    Understand the current perceptions around recognition practices in the organization and determine the behaviors that your program will seek to recognize.

    • Effectively Recognize IT Employees – Phase 1: Assess the Current Recognition Landscape
    • IT Employee Recognition Survey Questions

    2. Design the recognition program

    Determine the structure and processes to enable effective recognition in your IT organization.

    • Effectively Recognize IT Employees – Phase 2: Design the Recognition Program
    • Employee Recognition Program Guide
    • Employee Recognition Ideas Catalog
    • Employee Recognition Nomination Form

    3. Implement the recognition program

    Rapidly build and roll out a recognition action and sustainment plan, including training managers to reinforce behavior with recognition.

    • Effectively Recognize IT Employees – Phase 3: Implement the Recognition Program
    • Recognition Action and Communication Plan
    • Manager Training: Reinforce Behavior With Recognition
    [infographic]

    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

    Hire or Develop a World-Class CISO

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    • It is difficult to find a “unicorn”: a candidate who is already fully developed in all areas.
    • The role of the CISO has changed so much in the past three years, it is unclear what competencies are most important.
    • Current CISOs need to scope out areas of future development.

    Our Advice

    Critical Insight

    The new security leader must be strategic, striking a balance between being tactical and taking a proactive security stance. They must incorporate security into business practices from day one and enable secure adoption of new technologies and business practices.

    Impact and Result

    • Clarify the competencies that are important to your organizational needs and use them to find a candidate with those specific strengths.
    • If you are a current CISO, complete a self-assessment and identify your high-priority competency gaps so you can actively work to develop those areas.
    • Create an actionable plan to develop the CISO’s capabilities and regularly reassess these items to ensure constant improvement.

    Hire or Develop a World-Class CISO Research & Tools

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

    1. Hire of Develop a World-Class CISO Deck – A step-by-step guide on finding or developing the CISO that best fits your organization.

    Use this blueprint to hire or develop a world-class Chief Information Security Officer (CISO) with the competencies that suit your specific organizational needs. Once you have identified the right candidate, create a plan to develop your CISO.

    • Hire or Develop a World-Class CISO – Phases 1-4

    2. CISO Core Competency Evaluation Tool – Determine which competencies your organization needs and which competencies your CISO needs to work on.

    This tool will help you determine which competencies are a priority for your organizational needs and which competencies your CISO needs to develop.

    • CISO Core Competency Evaluation Tool

    3. CISO Stakeholder Power Map Template – Visualize stakeholder and CISO relationships.

    Use this template to identify stakeholders who are key to your security initiatives and to understand your relationships with them.

    • CISO Stakeholder Power Map Template

    4. CISO Stakeholder Management Strategy Template – Develop a strategy to improve stakeholder and CISO relationships.

    Create a strategy to cultivate your stakeholder relationships and manage each relationship in the most effective way.

    • CISO Stakeholder Management Strategy Template

    5. CISO Development Plan Template – Develop a plan to support a world-class CISO.

    This tool will help you create and implement a plan to remediate competency gaps.

    • CISO Development Plan Template

    Infographic

    Further reading

    Hire or Develop a World-Class CISO

    Find a strategic and security-focused champion for your business.

    Analyst Perspective

    Create a plan to become the security leader of tomorrow

    The days are gone when the security leader can stay at a desk and watch the perimeter. The rapidly increasing sophistication of technology, and of attackers, has changed the landscape so that a successful information security program must be elastic, nimble, and tailored to the organization’s specific needs.

    The Chief Information Security Officer (CISO) is tasked with leading this modern security program, and this individual must truly be a Chief Officer, with a finger on the pulses of the business and security processes at the same time. The modern, strategic CISO must be a master of all trades.

    A world-class CISO is a business enabler who finds creative ways for the business to take on innovative processes that provide a competitive advantage and, most importantly, to do so securely.

    Cameron Smith, Research Lead, Security and Privacy

    Cameron Smith
    Research Lead, Security & Privacy
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • CEOs/CXOs are looking to hire or develop a senior security leader and aren’t sure where to start.
    • Conversely, security practitioners are looking to upgrade their skill set and are equally stuck in terms of what an appropriate starting point is.
    • Organizations are looking to optimize their security plans and move from a tactical position to a more strategic one.

    Common Obstacles

    • It is difficult to find a “unicorn”: a candidate who is already fully developed in all areas.
    • The role of the CISO has changed so much in the past three years, it is unclear what competencies are most important.
    • You are a current CISO and need to scope out your areas of future development.

    Info-Tech’s Approach

    • Clarify the competencies that are important to your organizational needs and use them to find a candidate with those specific strengths.
    • If you are a current CISO, complete a self-assessment and identify your high-priority competency gaps so you can actively work to develop those areas.
    • Create an actionable plan to develop the CISO’s capabilities and regularly reassess these items to ensure constant improvement.

    Info-Tech Insight
    The new security leader must be strategic, striking a balance between being tactical and taking a proactive security stance. They must incorporate security into business practices from day one and enable secure adoption of new technologies and business practices.

    Your challenge

    This Info-Tech blueprint will help you hire and develop a strategic CISO

    • Security without strategy is a hacker’s paradise.
    • The outdated model of information security is tactical, where security acts as a watchdog and responds.
    • The new security leader must be strategic, striking a balance between being tactical and taking a proactive security stance. They must incorporate security into business practices from day one and enable secure adoption of new technologies and business practices.

    Around one in five organizations don’t have an individual with the sole responsibility for security1

    1 Navisite

    Info-Tech Insight
    Assigning security responsibilities to departments other than security can lead to conflicts of interest.

    Common obstacles

    It can be difficult to find the right CISO for your organization

    • The smaller the organization, the less likely it will have a CISO or equivalent position.
    • Because there is a shortage of qualified candidates, qualified CISOs can demand high salaries and many CISO positions will go unfilled.
    • It is easier for larger companies to attract top CISO talent, as they generally have more resources available.

    Source: Navisite

    Only 36% of small businesses have a CISO (or equivalent position).

    48% of mid-sized businesses have a CISO.

    90% of large organizations have a CISO.

    Source: Navisite

    Strategic versus tactical

    CISOs should provide leadership based on a strategic vision 1

    Strategic CISO Tactical CISO

    Proactive

    Focus is on protecting hyperdistributed business processes and data

    Elastic, flexible, and nimble

    Engaged in business design decisions

    Speaks the language of the audience (e.g. business, financial, technical)

    Reactive

    Focus is on protecting current state

    Perimeter and IT-centric approach

    Communicates with technical jargon

    1 Journal of Computer Science and Information Technology

    Info-Tech has identified three key behaviors of the world-class CISO

    To determine what is required from tomorrow’s security leader, Info-Tech examined the core behaviors that make a world-class CISO. These are the three areas that a CISO engages with and excels in.

    Later in this blueprint, we will review the competencies and skills that are required for your CISO to perform these behaviors at a high level.

    Align

    Aligning security enablement with business requirements

    Enable

    Enabling a culture of risk management

    Manage

    Managing talent and change

    Info-Tech Insight
    Through these three overarching behaviors, you can enable a security culture that is aligned to the business and make security elastic, flexible, and nimble to maintain the business processes.

    Info-Tech’s approach

    Understand what your organization needs in a CISO: Consider the core competencies of a CISO. Assess: Assess candidates' core competencies and the CISO's stakeholder relationships. Plan improvements: Identify resources to close competency gaps and an approach to improve stakeholder relationships. Executive development: Decide next steps to support your CISO moving forward and regularly reassess to measure progress.

    Info-Tech’s methodology to Develop or Hire a World-Class CISO

    1. Launch 2. Assess 3. Plan 4. Execute
    Phase Steps
    1. Understand the core competencies
    2. Measure security and business satisfaction and alignment
    1. Assess stakeholder relationships
    2. Assess core competencies
    1. Identify resources to address your CISO’s competency gaps
    2. Plan an approach to improve stakeholder relationships
    1. Decide next actions and support your CISO moving forward
    2. Regularly reassess to measure development and progress
    Phase Outcomes

    At the end of this phase, you will have:

    • Determined the current gaps in satisfaction and business alignment for your IT security program.
    • Identified the desired qualities in a security leader, specific to your current organizational needs.

    At the end of this phase, you will have:

    • Used the core competencies to help identify the ideal candidate.
    • Identified areas for development in your new or existing CISO.
    • Determined stakeholder relationships to cultivate.

    At the end of this phase, you will have:

    • Created a high-level plan to address any deficiencies.
    • Improved stakeholder relations.

    At the end of this phase, you will have:

    • Created an action-based development plan, including relevant metrics, due dates, and identified stakeholders. This plan is the beginning, not the end. Continually reassessing your organizational needs and revisiting this blueprint’s method will ensure ongoing development.

    Blueprint deliverables

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

    CISO Core Competency Evaluation Tool

    Assess the competency levels of a current or prospective CISO and identify areas for improvement.

    Stakeholder Power Map Template

    Visualize the importance of various stakeholders and their concerns.

    Stakeholder Management Strategy Template

    Document a plan to manage stakeholders and track actions.

    Key deliverable:

    CISO Development Plan Template

    The CISO Development Plan Template is used to map specific activities and time frames for competency development to address gaps and achieve your goal.

    Strategic competencies will benefit the organization and the CISO

    Career development should not be seen as an individual effort. By understanding the personal core competencies that Info-Tech has identified, the individual wins by developing relevant new skills and the organization wins because the CISO provides increased value.

    Organizational Benefits Individual Benefits
    • Increased alignment between security and business objectives
    • Development of information security that is elastic, nimble, and flexible for the business
    • Reduction in wasted efforts and resources, and improvement in efficiency of security and the organization as a whole
    • True synergy between security and business stakeholders, where the goals of both groups are being met
    • Increased opportunity as you become a trusted partner within your organization
    • Improved relationships with peers and stakeholders
    • Less resistance and more support for security initiatives
    • More involvement and a stronger role for security at all levels of the organization

    Measured value of a world-class CISO

    Organizations with a CISO saw an average of $145,000 less in data breach costs.1

    However, we aren’t talking about hiring just any CISO. This blueprint seeks to develop your CISO’s competencies and reach a new level of effectiveness.

    Organizations invest a median of around $375,000 annually in their CISO.2 The CISO would have to be only 4% more effective to represent $15,000 more value from this position. This would offset the cost of an Info-Tech workshop, and this conservative estimate pales in comparison to the tangible and intangible savings as shown below.

    Your specific benefits will depend on many factors, but the value of protecting your reputation, adopting new and secure revenue opportunities, and preventing breaches cannot be overstated. There is a reason that investment in information security is on the rise: Organizations are realizing that the payoff is immense and the effort is worthwhile.

    Tangible cost savings from having a world-class CISO Intangible cost savings from having a world-class CISO
    • Cost savings from incident reduction.
    • Cost savings achieved through optimizing information security investments, resulting in savings from previously misdiagnosed issues.
    • Cost savings from ensuring that dollars spent on security initiatives support business strategy.
    • More opportunities to create new business processes through greater alignment between security and business.
    • Improved reputation and brand equity achieved through a proper evaluation of the organization’s security posture.
    • Continuous improvement achieved through a good security assessment and measurement strategy.
    • Ability to plan for the future since less security time will be spent firefighting and more time will be spent engaged with key stakeholders.

    1 IBM Security
    2 Heidrick & Struggles International, Inc.

    Case Study

    In the middle of difficulty lies opportunity

    SOURCE
    Kyle Kennedy
    CISO, CyberSN.com

    Challenge
    The security program identified vulnerabilities at the database layer that needed to be addressed.

    The decision was made to move to a new vendor. There were multiple options, but the best option in the CISO’s opinion was a substantially more expensive service that provided more robust protection and more control features.

    The CISO faced the challenge of convincing the board to make a financial investment in his IT security initiative to implement this new software.

    Solution
    The CISO knew he needed to express this challenge (and his solution!) in a way that was meaningful for the executive stakeholders.

    He identified that the business has $100 million in revenue that would move through this data stream. This new software would help to ensure the security of all these transactions, which they would lose in the event of a breach.

    Furthermore, the CISO identified new business plans in the planning stage that could be protected under this initiative.

    Results
    The CISO was able to gain support for and implement the new database platform, which was able to protect current assets more securely than before. Also, the CISO allowed new revenue streams to be created securely.

    This approach is the opposite of the cautionary tales that make news headlines, where new revenue streams are created before systems are put in place to secure them.

    This proactive approach is the core of the world-class CISO.

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

    Guided Implementation

    What does a typical GI on this topic look like?

    Launch Assess Plan Execute

    Call #1: Review and discuss CISO core competencies.

    Call #2: Discuss Security Business Satisfaction and Alignment diagnostic results.

    Call #3: Discuss the CISO Stakeholder Power Map Template and the importance of relationships.

    Call #4: Discuss the CISO Core Competency Evaluation Tool.

    Call #5: Discuss results of the CISO Core Competency Evaluation and identify resources to close gaps.

    Call #6: Review organizational structure and key stakeholder relationships.

    Call #7: Discuss and create your CISO development plan and track your development

    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 6 to 10 calls over the course of 3 to 6 months.

    Phase 1

    Launch

    Phase 1
    1.1 Understand Core Competencies
    1.2 Measure Security and Business Satisfaction and Alignment

    Phase 2
    2.1 Assess Stakeholder Relationships
    2.2 Assess the Core Competencies

    Phase 3
    3.1 Identify Resources to Address Competency Gaps
    3.2 Plan Approach to Improve Stakeholder Relationships

    Phase 4
    4.1 Decide Next Actions and Support Your CISO Moving Forward
    4.2 Regularly Reassess to Measure Development and Progress

    This phase will walk you through the following activities:

    • Review and understand the core competencies of a world-class CISO.
    • Launch your diagnostic survey.
    • Evaluate current business satisfaction with IT security.
    • Determine the competencies that are valuable to your IT security program’s needs.

    Hire or Develop a World-Class CISO

    Case study

    Mark Lester
    InfoSec Manager, SC Ports Authority

    An organization hires a new Information Security Manager into a static and well-established IT department.

    Situation: The organization acknowledges the need for improved information security, but there is no framework for the Security Manager to make successful changes.

    Challenges Next Steps
    • The Security Manager is an outsider in a company with well-established habits and protocols. He is tasked with revamping the security strategy to create unified threat management.
    • Initial proposals for information security improvements are rejected by executives. It is a challenge to implement changes or gain support for new initiatives.
    • The Security Manager will engage with individuals in the organization to learn about the culture and what is important to them.
    • He will assess existing misalignments in the business so that he can target problems causing real pains to individuals.

    Follow this case study throughout the deck to see this organization’s results

    Step 1.1

    Understand the Core Competencies of a World-Class CISO

    Activities

    Review core competencies the security leader must develop to become a strategic business partner

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step
    Analysis and understanding of the eight strategic CISO competencies required to become a business partner

    Launch

    Core competencies

    Info-Tech has identified eight core competencies affecting the CISO’s progression to becoming a strategic business partner.

    Business Acumen
    A CISO must focus primarily on the needs of the business.

    Leadership
    A CISO must be a security leader and not simply a practitioner.

    Communication
    A CISO must have executive communication skills

    Technical Knowledge
    A CISO must have a broad technical understanding.

    Innovative Problem Solving
    A good CISO doesn’t just say “no,” but rather finds creative ways to say “yes.”

    Vendor Management
    Vendor and financial management skills are critical to becoming a strategic CISO.

    Change Management
    A CISO improves security processes by being an agent of change for the organization.

    Collaboration
    A CISO must be able to use alliances and partnerships strategically.

    1.1 Understand the core competencies a CISO must focus on to become a strategic business partner

    < 1 hour

    Over the next few slides, review each world-class CISO core competency. In Step 1.2, you will determine which competencies are a priority for your organization.

    CISO Competencies Description
    Business Acumen

    A CISO must focus primarily on the needs of the business and how the business works, then determine how to align IT security initiatives to support business initiatives. This includes:

    • Contributing to business growth with an understanding of the industry, core functions, products, services, customers, and competitors.
    • Understanding the business’ strategic direction and allowing it to securely capitalize on opportunities.
    • Understanding the key drivers of business performance and the use of sound business practice.
    Leadership

    A CISO must be a security leader, and not simply a practitioner. This requires:

    • Developing a holistic view of security, risk, and compliance for the organization.
    • Fostering a culture of risk management.
    • Choosing a strong team. Having innovative and reliable employees who do quality work is a critical component of an effective department.
      • This aspect involves identifying talent, engaging your staff, and managing their time and abilities.

    1.1 Understand the core competencies (continued)

    CISO Competencies Description
    Communication

    Many CISOs believe that using technical jargon impresses their business stakeholders – in fact, it only makes business stakeholders become confused and disinterested. A CISO must have executive communication skills. This involves:

    • Clearly communicating with business leaders in meaningful language (i.e. business, financial, social) that they understand by breaking down the complexities of IT security into simple and relatable concepts.
    • Not using acronyms or technological speak. Easy-to-understand translations will go a long way.
    • Strong public speaking and presentation abilities.
    Technical Knowledge

    A CISO must have a broad technical understanding of IT security to oversee a successful security program. This includes:

    • Understanding key security and general IT technologies and processes.
    • Assembling a complementary team, because no individual can have deep knowledge in all areas.
    • Maintaining continuing education to stay on top of emerging technologies and threats.

    1.1 Understand the core competencies (continued)

    CISO Competencies Description
    Innovative Problem Solving

    A good CISO doesn’t just say “no,” but rather finds creative ways to say “yes.” This can include:

    • Taking an active role in seizing opportunities created by emerging technologies.
    • Facilitating the secure implementation of new, innovative revenue models.
    • Developing solutions for complex business problems that require creativity and ingenuity.
    • Using information and technology to drive value around the customer experience.
    Vendor Management

    With the growing use of “anything as a service,” negotiation, vendor, and financial management skills are critical to becoming a strategic CISO.

    • The CISO must be able to evaluate service offerings and secure favorable contracts with the right provider. It is about extracting the maximum value from vendors for the dollars you are spending.
    • Vendor products must be aligned with future business plans to create maximum ongoing value.
    • The CISO must develop financial management skills. This includes the ability to calculate total cost of ownership, return on investment, and project spending over multiyear business plans.

    1.1 Understand the core competencies (continued)

    CISO Competencies Description
    Change Management

    A world-class CISO improves security processes by being an agent of change for the organization. This involves:

    • Leading, guiding, and motivating teams to adopt a responsible risk management culture.
    • Communicating important and complex ideas in a persuasive way.
    • Demonstrating an ability to change themselves and taking the initiative in adopting more efficient behaviors.
    • Handling unplanned change, such as unforeseen attacks or personnel changes, in a professional and proactive manner.
    Collaboration

    A CISO must be able to use alliances and partnerships strategically to benefit both the business and themselves. This includes:

    • Identifying formal and informal networks and constructive relationships to enable security development.
    • Leveraging stakeholders to influence positive outcomes for the organization.
    • Getting out of the IT or IT security sphere and engaging relationships in diverse areas of the organization.

    Step 1.2

    Evaluate satisfaction and alignment between the business and IT security

    Activities

    • Conduct the Information Security Business Satisfaction and Alignment diagnostic
    • Use your results as input into the CISO Core Competency Evaluation Tool

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step
    Determine current gaps in satisfaction and alignment between information security and your organization.

    If seeking to hire/develop a CISO: Your diagnostic results will help develop a profile of the ideal CISO candidate to use as a hiring and interview guide.

    If developing a current CISO, use your diagnostic results to identify existing competency gaps and target them for improvement.

    For the CISO seeking to upgrade capabilities: Use the core competencies guide to self-assess and identify competencies that require improvement.

    Launch

    1.2 Get started by conducting Info-Tech’s Information Security Business Satisfaction and Alignment diagnostic

    Suggested Time: One week for distribution, completion, and collection of surveys
    One-hour follow-up with an Info-Tech analyst

    The primary goal of IT security is to protect the organization from threats. This does not simply mean bolting everything down, but it means enabling business processes securely. To do this effectively requires alignment between IT security and the overall business.

    • Once you have completed the diagnostic, call Info-Tech to review your results with one of our analysts.
    • The results from this assessment will provide insights to inform your entries in the CISO Core Competency Evaluation Tool.

    Call an analyst to review your results and provide you with recommendations.

    Info-Tech Insight
    Focus on the high-priority competencies for your organization. You may find a candidate with perfect 10s across the board, but a more pragmatic strategy is to find someone with strengths that align with your needs. If there are other areas of weakness, then target those areas for development.

    1.2 Use Info-Tech’s CISO Core Competency Evaluation Tool to understand your organizational needs

    After completing the Info-Tech diagnostic, use the CISO Core Competency Evaluation Tool to determine which CISO competencies are a priority for your organization.

    • Your diagnostic results will indicate where your information security program is aligned well or poorly with your business.
    • For example, the diagnostic may show significant misalignment between information security and executives over the level of external compliance. The CISO behavior that would contribute to solving this is aligning security enablement with business requirements.
      • This misalignment may be due to a misunderstanding by either party. The competencies that will contribute to resolving this are communication, technical knowledge, and business acumen.
      • This mapping method is what will be used to determine which competencies are most important for your needs at the present moment.

    Download the CISO Core Competency Evaluation Tool

    1.2 Use Info-Tech’s CISO Core Competency Evaluation Tool to understand your organizational needs

    After completing the Info-Tech diagnostic, use the CISO Core Competency Evaluation Tool to determine which CISO competencies are a priority for your organization.

    1. Starting on Tab 2: CISO Core Competencies, use your understanding of each competency from section 1.1 along with the definitions described in the tool.
      • For each competency, assign a degree of importance using the drop-down menu in the second column from the right.
      • Importance ratings will range from not at all important at the low end to critically important at the high end.
      • Your importance score will be influenced by several factors, including:
        • The current alignment of your information security department.
        • Your organizational security posture.
        • The size and structure of your organization.
        • The existing skills and maturity within your information security department.

    Download the CISO Core Competency Evaluation Tool

    1.2 Use Info-Tech’s CISO Core Competency Evaluation Tool to understand your organizational needs

    After completing the Info-Tech diagnostic, use the CISO Core Competency Evaluation Tool to determine which CISO competencies are a priority for your organization.

    1. Still on Tab 2. CISO Core Competencies, you will now assign a current level of effectiveness for each competency.
      • This will range from foundational at a low level of effectiveness up to capable, then inspirational, and at the highest rating, transformational.
      • Again, this rating will be very specific to your organization, depending on your structure and your current employees.
      • Fundamentally, these scores will reflect what you want to improve in the area of information security. This is not an absolute scale, and it will be influenced by what skills you want to support your goals and direction as an organization.

    Download the CISO Core Competency Evaluation Tool

    Phase 2

    Assess

    Phase 1
    1.1 Understand Core Competencies
    1.2 Measure Security and Business Satisfaction and Alignment

    Phase 2
    2.1 Assess Stakeholder Relationships
    2.2 Assess the Core Competencies

    Phase 3
    3.2 Plan Approach to Improve Stakeholder Relationships

    Phase 4
    4.1 Decide Next Actions and Support Your CISO Moving Forward
    4.2 Regularly Reassess to Measure Development and Progress

    This phase will walk you through the following activities:

    • Use the CISO Core Competency Evaluation Tool to create and implement an interview guide.
    • Assess and analyze the core competencies of your prospective CISOs. Or, if you are a current CISO, use the CISO Core Competency Evaluation Tool as a self-analysis and identify areas for personal development.
    • Evaluate the influence, impact, and support of key executive business stakeholders using the CISO Stakeholder Power Map Template.

    Hire or Develop a World-Class CISO

    Case study

    Mark Lester
    InfoSec Manager, SC Ports Authority

    The new Security Manager engages with employees to learn the culture.

    Outcome: Understand what is important to individuals in order to create effective collaboration. People will engage with a project if they can relate it to something they value.

    Actions Next Steps
    • The Security Manager determines that he must use low-cost small wins to integrate with the organizational culture and create trust and buy-in and investment will follow.
    • The Security Manager starts a monthly newsletter to get traction across the organization, create awareness of his mandate to improve information security, and establish himself as a trustworthy partner.
    • The Security Manager will identify specific ways to engage and change the culture.
    • Create a persuasive case for investing in information security based on what resonates with the organization.

    Follow this case study throughout the deck to see this organization’s results

    Step 2.1

    Identify key stakeholders for the CISO and assess current relationships

    Activities

    Evaluate the power, impact, and support of key stakeholders

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step

    • Power map of executive business stakeholders
    • Evaluation of each stakeholder in terms of influence, impact, and current level of support

    Assess

    Identify key stakeholders who own business processes that intersect with security processes

    Info-Tech Insight
    Most organizations don’t exist for the sole purpose of doing information security. For example, if your organization is in the business of selling pencils, then information security is in business to enable the selling of pencils. All the security in the world is meaningless if it doesn’t enable your primary business processes. The CISO must always remember the fundamental goals of the business.

    The above insight has two implications:

    1. The CISO needs to understand the key business processes and who owns them, because these are the people they will need to collaborate with. Like any C-level, the CISO should be one of the most knowledgeable people in the organization regarding business processes.
    2. Each of these stakeholders stands to win or lose depending on the performance of their process, and they can act to either block or enable your progress.
      • To work effectively with these stakeholders, you must learn what is important to them, and pose your initiatives so that you both benefit.

    When people are not receptive to the CISO, it’s usually because the CISO has not been part of the discussion when plans were being made. This is the heart of proactivity.

    You need to be involved from the start … from the earliest part of planning.

    The job is not to come in late and say “No” ... the job is to be involved early and find creative and intelligent ways to say “Yes.”

    The CISO needs to be the enabling security asset that drives business.

    – Elliot Lewis, CEO at Keyavi Data

    Evaluate the importance of business stakeholders and the support necessary from them

    The CISO Stakeholder Power Map Template is meant to provide a visualization of the CISO’s relationships within the organization. This should be a living document that can be updated throughout the year as relationships develop and the structure of an organization changes.

    At a glance, this tool should show:

    • How influential each stakeholder is within the company.
    • How supportive they currently are of the CISO’s initiatives.
    • How strongly each person is impacted by IT security activities.

    Once this tool has been created, it provides a good reference as the CISO works to develop lagging relationships. It shows the landscape of influence and impact within the organization, which may help to guide the CISO’s strategy in the future.

    Evaluate the importance of business stakeholders and the support necessary from them

    Download the CISO Stakeholder Power Map Template

    Evaluate the importance of business stakeholders and the support necessary from them

    1. Identify key stakeholders.
      1. Focus on owners of important business processes.
    2. Evaluate and map each stakeholder in terms of:
      1. Influence (up/down)
      2. Support (left/right)
      3. Impact (size of circle)
      4. Involvement (color of circle)
    3. Decide whether the level of support from each stakeholder needs to change to facilitate success.

    Evaluate the importance of business stakeholders and the support necessary from them

    Info-Tech Insight
    Some stakeholders must work closely with your incoming CISO. It is worth consideration to include these individuals in the interview process to ensure you will have partners that can work well together. This small piece of involvement early on can save a lot of headache in the future.

    Where can you find your desired CISO?

    Once you know which competencies are a priority in your new CISO, the next step is to decide where to start looking. This person may already exist in your company.

    Internal

    Take some time to review your current top information security employees or managers. It may be immediately clear that certain people will or will not be suitable for the CISO role. For those that have potential, proceed to Step 2.2 to map their competencies.

    Recruitment

    If you do not have any current employees that will fit your new CISO profile, or you have other reasons for wanting to bring in an outside individual, you can begin the recruitment process. This could start by posting the position for applications or by identifying and targeting specific candidates.

    Ready to start looking for your ideal candidate? You can use Info-Tech’s Chief Information Security Officer job description template.

    Use the CISO job description template

    Alternatives to hiring a CISO

    Small organizations are less able to muster the resources required to find and retain a CISO,

    Technical Counselor Seat

    In addition to having access to our research and consulting services, you can acquire a Technical Counselor Seat from our Security & Risk practice, where one of our senior analysts would serve with you on a retainer. You may find that this option saves you the expense of having to hire a new CISO altogether.

    Virtual CISO

    A virtual CISO, or vCISO, is essentially a “CISO as a service.” A vCISO provides an organization with an experienced individual that can, on a part-time basis, lead the organization’s security program through policy and strategy development.

    Why would an organization consider a vCISO?

    • A vCISO can provide services that are flexible, technical, and strategic and that are based on the specific requirements of the organization.
    • They can provide a small organization with program maturation within the organization’s resources.
    • They can typically offer depth of experience beyond what a small business could afford if it were to pursue a full-time CISO.

    Source: InfoSec Insights by Sectigo Store

    Why would an organization not consider a vCISO?

    • The vCISO’s attention is divided among their other clients.
    • They won’t feel like a member of your organization.
    • They won’t have a deep understanding of your systems and processes.

    Source: Georgia State University

    Step 2.2

    Assess CISO candidates and evaluate their current competency

    Activities

    Assess CISO candidates in terms of desired core competencies

    or

    Self-assess your personal core competencies

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO

    or

    • Current CISO seeking to upgrade capabilities

    and

    • Any key stakeholders or collaborators you choose to include in the assessment process

    Outcomes of this step

    • You have assessed your requirements for a CISO candidate.
    • The process of hiring is under way, and you have decided whether to hire a CISO, develop a CISO, or consider a Counselor Seat as another option.

    Assess

    2.2 Use Info-Tech’s CISO Core Competency Evaluation Tool to assess your CISO candidate

    Use Info-Tech’s CISO Core Competency Evaluation Tool to assess your CISO candidate

    Download the CISO Core Competency Evaluation Tool

    Info-Tech Insight
    The most important competencies should be your focus. Unless you are lucky enough to find a candidate that is perfect across the board, you will see some areas that are not ideal. Don’t forget the importance you assigned to each competency. If a candidate is ideal in the most critical areas, you may not mind that some development is needed in a less important area.

    2.2 Use Info-Tech’s CISO Core Competency Evaluation Tool to evaluate your candidates

    After deciding the importance of and requirements for each competency in Phase 1, assess your CISO candidates.

    Your first pass on this tool will be to look at internal candidates. This is the develop a CISO option.

    1. In the previous phase, you rated the Importance and Current Effectiveness for each competency in Tab 2. CISO Core Competencies. In this step, use Tab 3. Gap Analysis to enter a Minimum Level and a Desired Level for each competency. Keep in mind that it may be unrealistic to expect a candidate to be fully developed in all aspects.
    2. Next, enter a rating for your candidate of interest for each of the eight competencies.
    3. This scorecard will generate an overall suitability score for the candidate. The color of the output (from red to green) indicates the suitability, and the intensity of the color indicates the importance you assigned to that competency.

    Download the CISO Core Competency Evaluation Tool

    2.2 Use Info-Tech’s CISO Core Competency Evaluation Tool to evaluate your candidates

    • If the internal search does not identify a suitable candidate, you will want to expand your search.
    • Repeat the scoring process for external candidates until you find your new CISO.
    • You may want to skip your external search altogether and instead contact Info-Tech for more information on our Counselor Seat options.

    Download the CISO Core Competency Evaluation Tool

    Phase 3

    Plan

    Phase 1
    1.1 Understand Core Competencies
    1.2 Measure Security and Business Satisfaction and Alignment

    Phase 2
    2.1 Assess Stakeholder Relationships
    2.2 Assess the Core Competencies

    Phase 3
    3.1 Identify Resources to Address Competency Gaps
    3.2 Plan Approach to Improve Stakeholder Relationships

    Phase 4
    4.1 Decide Next Actions and Support Your CISO Moving Forward
    4.2 Regularly Reassess to Measure Development and Progress

    This phase will walk you through the following activities:

    • Create a plan to develop your competency gaps.
    • Construct and consider your organizational model.
    • Create plan to cultivate key stakeholder relationships.

    Hire or Develop a World-Class CISO

    Case study

    Mark Lester
    InfoSec Manager, SC Ports Authority

    The new Security Manager changes the security culture by understanding what is meaningful to employees.

    Outcome: Engage with people on their terms. The CISO must speak the audience’s language and express security terms in a way that is meaningful to the audience.

    Actions Next Steps
    • The Security Manager identifies recent events where ransomware and social engineering attacks were successful in penetrating the organization.
    • He uses his newsletter to create organization-wide discussion on this topic.
    • This very personal example makes employees more receptive to the Security Manager’s message, enabling the culture of risk management.
    • The Security Manager will leverage his success in improving the information security culture and awareness to gain support for future initiatives.

    Follow this case study throughout the deck to see this organization’s results

    Step 3.1

    Identify resources for your CISO to remediate competency gaps

    Activities

    Create a plan to remediate competency gaps

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO
    • The newly hired CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step

    • Identification of core competency deficiencies
    • A plan to close the gaps

    Plan

    3.1 Close competency gaps with Info-Tech’s Cybersecurity Workforce Development Training

    Resources to close competency gaps

    Info-Tech’s Cybersecurity Workforce Training develops critical cybersecurity skills missing within your team and organization. The leadership track provides the same deep coverage of technical knowledge as the analyst track but adds hands-on support and has a focus on strategic business alignment, program management, and governance.

    The program builds critical skills through:

    • Standardized curriculum with flexible projects tailored to business needs
    • Realistic cyber range scenarios
    • Ready-to-deploy security deliverables
    • Real assurance of skill development

    Info-Tech Insight
    Investing in a current employee that has the potential to be a world-class CISO may take less time, effort, and money than finding a unicorn.

    Learn more on the Cybersecurity Workforce Development webpage

    3.1 Identify resources for your CISO to remediate competency gaps

    < 2 hours

    CISO Competencies Description
    Business Acumen

    Info-Tech Workshops & Blueprints

    Actions/Activities

    • Take a business acumen course: Acumen Learning, What the CEO Wants You to Know: Building Business Acumen.
    • Meet with business stakeholders. Ask them to take you through the strategic plan for their department and then identify opportunities where security can provide support to help drive their initiatives.
    • Shadow another C-level executive. Understand how they manage their business unit and demonstrate an eagerness to learn.
    • Pursue an MBA or take a business development course.

    3.1 Identify resources for your CISO to remediate competency gaps (continued)

    < 2 hours

    CISO Competencies Description
    Leadership

    Info-Tech Training and Blueprints

    Action/Activities

    • Communicate your vision for security to your team. You will gain buy-in from your employees by including them in the creation of your program, and they will be instrumental to your success.

    Info-Tech Insight
    Surround yourself with great people. Insecure leaders surround themselves with mediocre employees that aren’t perceived as a threat. Great leaders are supported by great teams, but you must choose that great team first.

    3.1 Identify resources for your CISO to remediate competency gaps (continued)

    < 2 hours

    CISO Competencies Description
    Communication

    Info-Tech Workshops & Blueprints

    Build and Deliver an Optimized IT Update Presentation: Show IT’s value and relevance by dropping the technical jargon and speaking to the business in their terms.

    Master Your Security Incident Response Communications Program: Learn how to talk to your stakeholders about what’s going on when things go wrong.

    Develop a Security Awareness and Training Program That Empowers End Users: Your weakest link is between the keyboard and the chair, so use engaging communication to create positive behavior change.

    Actions/Activities

    Learn to communicate in the language of your audience (whether business, finance, or social), and frame security solutions in terms that are meaningful to your listener.

    Technical Knowledge

    Actions/Activities

    • In many cases, the CISO is progressing from a strong technical background, so this area is likely a strength already.
    • However, as the need for executive skills are being recognized, many organizations are opting to hire a business or operations professional as a CISO. In this case, various Info-Tech blueprints across all our silos (e.g. Security, Infrastructure, CIO, Apps) will provide great value in understanding best practices and integrating technical skills with the business processes.
    • Pursue an information security leadership certification: GIAC, (ISC)², and ISACA are a few of the many organizations that offer certification programs.

    3.1 Identify resources for your CISO to remediate competency gaps (continued)

    < 2 hours

    CISO Competencies Description
    Innovative Problem Solving

    Info-Tech Workshops & Blueprints

    Actions/Activities

    Vendor Management

    Info-Tech Blueprints & Resources

    Actions/Activities

    3.1 Identify resources for your CISO to remediate competency gaps (continued)

    < 2 hours

    CISO Competencies Description
    Change Management

    Info-Tech Blueprints

    Actions/Activities

    • Start with an easy-win project to create trust and support for your initiatives.
    Collaboration

    Info-Tech Blueprints

    Actions/Activities

    • Get out of your office. Have lunch with people from all areas of the business. Understanding the goals and the pains of employees throughout your organization will help you to design effective initiatives and cultivate support.
    • Be clear and honest about your goals. If people know what you are trying to do, then it is much easier for them to work with you on it. Being ambiguous or secretive creates confusion and distrust.

    3.1 Create the CISO’s personal development plan

    • Use Info-Tech’s CISO Development Plan Template to document key initiatives that will close previously identified competency gaps.
    • The CISO Development Plan Template is used to map specific actions and time frames for competency development, with the goal of addressing competency gaps and helping you become a world-class CISO. This template can be used to document:
      • Core competency gaps
      • Security process gaps
      • Security technology gaps
      • Any other career/development goals
    • If you have a coach or mentor, you should share your plan and report progress to that person. Alternatively, call Info-Tech to speak with an executive advisor for support and advice.
      • Toll-Free: 1-888-670-8889

    What you will need to complete this exercise

    • CISO Core Competency Evaluation Tool results
    • Information Security Business Satisfaction and Alignment diagnostic results
    • Insights gathered from business stakeholder interviews

    Step 3.2

    Plan an approach to improve your relationships

    Activities

    • Review engagement strategies for different stakeholder types
    • Create a stakeholder relationship development plan

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO
    • The newly hired CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step

    • Stakeholder relationship strategy deliverable

    Plan

    Where should the CISO sit?

    Where the CISO sits in the organization can have a big impact on the security program.

    • Organizations with CISOs in the C-suite have a fewer security incidents.1
    • Organizations with CISOs in the C-suite generally have better IT ability.1
    • An organization whose CISO reports to the CIO risks conflict of interest.1
    • 51% of CISOs believe their effectiveness can be hampered by reporting lines.2
    • Only half of CISOs feel like they are in a position to succeed.2

    A formalized security organizational structure assigns and defines the roles and responsibilities of different members around security. Use Info-Tech’s blueprint Implement a Security Governance and Management Program to determine the best structure for your organization.

    Who the CISO reports to, by percentage of organizations3

    Who the CISO reports to, by percentage of organizations

    Download the Implement a Security Governance and Management Program blueprint

    1. Journal of Computer Science and Information
    2. Proofpoint
    3. Heidrick & Struggles International, Inc

    3.2 Make a plan to manage your key stakeholders

    Managing stakeholders requires engagement, communication, and relationship management. To effectively collaborate and gain support for your initiatives, you will need to build relationships with your stakeholders. Take some time to review the stakeholder engagement strategies for different stakeholder types.

    Influence Mediators
    (Satisfy)
    Key Players
    (Engage)
    Spectators
    (Monitor)
    Noisemakers
    (Inform)
    Support for you

    When building relationships, I find that what people care about most is getting their job done. We need to help them do this in the most secure way possible.

    I don’t want to be the “No” guy, I want to enable the business. I want to find to secure options and say, “Here is how we can do this.”

    – James Miller, Information Security Director, Xavier University

    Download the CISO Stakeholder Management Strategy Template

    Key players – Engage

    Goal Action
    Get key players to help champion your initiative and turn your detractors into supporters. Actively involve key players to take ownership.
    Keep It Positive Maintain a Close Relationship
    • Use their positive support to further your objectives and act as your foundation of support.
    • Key players can help you build consensus among other stakeholders.
    • Get supporters to be vocal in your town halls.
    • Ask them to talk to other stakeholders over whom they have influence.
    • Get some quick wins early to gain and maintain stakeholder support and help convert them to your cause.
    • Use their influence and support to help persuade blockers to see your point of view.
    • Collaborate closely. Key players are tuned in to information streams that are important. Their advice can keep you informed and save you from being blindsided.
    • Keep them happy. By definition, these individuals have a stake in your plans and can be affected positively or negatively. Going out of your way to maintain relationships can be well worth the effort.

    Info-Tech Insight
    Listen to your key players. They understand what is important to other business stakeholders, and they can provide valuable insight to guide your future strategy.

    Mediators – Satisfy

    Goal Action
    Turn mediators into key players Increase their support level.
    Keep It Positive Maintain a Close Relationship
    • Make stakeholders part of the conversation by consulting them for input on planning and strategy.
    • Sample phrases:
      • “I’ve heard you have experience in this area. Do you have time to answer a few questions?”
      • “I’m making some decisions and I would value your thoughts. Can I get your perspective on this?”
    • Enhance their commitment by being inclusive. Encourage their support whenever possible.
    • Make them feel acknowledged and solicit feedback.
    • Listen to blockers with an open mind to understand their point of view. They may have valuable insight.
    • Approach stakeholders on their individual playing fields.
      • They want to know that you understand their business perspective.
    • Stubborn mediators might never support you. If consulting doesn’t work, keep them informed of important decision-making points and give them the opportunity to be involved if they choose to be.

    Info-Tech Insight
    Don’t dictate to stakeholders. Make them feel like valued contributors by including them in development and decision making. You don’t have to incorporate all their input, but it is essential that they feel respected and heard.

    Noisemakers – Inform

    Goal Action
    Have noisemakers spread the word to increase their influence. Encourage noisemakers to influence key stakeholders.
    Keep It Positive Maintain a Close Relationship
    • Identify noisemakers who have strong relationships with key stakeholders and focus on them.
      • These individuals may not have decision-making power, but their opinions and advice may help to sway a decision in your favor.
    • Look for opportunities to increase their influence over others.
    • Put effort into maintaining the positive relationship so that it doesn’t dwindle.
    • You already have this group’s support, but don’t take it for granted.
    • Be proactive, pre-emptive, and transparent.
    • Address issues or bad news early and be careful not to exaggerate their significance.
    • Use one-on-one meetings to give them an opportunity to express challenges in a private setting.
    • Show individuals in this group that you are a problem-solver:
      • “The implementation was great, but we discovered problems afterward. Here is what we’re doing about it.”

    Spectators – Monitor

    Goal Action
    Keep spectators content and avoid turning them into detractors. Keep them well informed.
    Keep It Positive Maintain a Close Relationship
    • A hands-on approach is not required with this group.
    • Keep them informed with regular, high-altitude communications and updates.
    • Use positive, exciting announcements to increase their interest in your initiatives.
    • Select a good venue for generating excitement and assessing the mood of spectators.
    • Spectators may become either supporters or blockers. Monitor them closely and keep in touch with them to stop these individuals from becoming blockers.
    • Listen to questions from spectators carefully. View any engagement as an opportunity to increase participation from this group and generate a positive shift in interest.

    3.2 Create the CISO’s stakeholder management strategy

    Develop a strategy to manage key stakeholders in order to drive your personal development plan initiatives.

    • The purpose of the CISO Stakeholder Management Strategy Template is to document the results of the power mapping exercise, create a plan to proactively manage stakeholders, and track the actions taken.
    • Use this in concert with Info-Tech’s CISO Stakeholder Power Map Template to help visualize the importance of key stakeholders to your personal development. You will document:
      • Stakeholder role and type.
      • Current relationship with the stakeholder.
      • Level of power/influence and degree of impact.
      • Current and desired level of support.
      • Initiatives that require the stakeholder’s engagement.
      • Actions to be taken – along with the status and results.

    What you will need to complete this exercise

    • Completed CISO Stakeholder Power Map
    • Security Business Satisfaction and Alignment Diagnostic results

    Download the CISO Stakeholder Management Strategy Template

    Phase 4

    Execute

    Phase 1
    1.1 Understand Core Competencies
    1.2 Measure Security and Business Satisfaction and Alignment

    Phase 2
    2.1 Assess Stakeholder Relationships
    2.2 Assess the Core Competencies

    Phase 3
    3.1 Identify Resources to Address Competency Gaps
    3.2 Plan Approach to Improve Stakeholder Relationships

    Phase 4
    4.1 Decide Next Actions and Support Your CISO Moving Forward
    4.2 Regularly Reassess to Measure Development and Progress

    This phase will walk you through the following activities:

    • Populate the CISO Development Plan Template with appropriate targets and due dates.
    • Set review and reassess dates.
    • Review due dates with CISO.

    Hire or Develop a World-Class CISO

    Case study

    Mark Lester
    InfoSec Manager, SC Ports Authority

    The new Security Manager leverages successful cultural change to gain support for new security investments.

    Outcome: Integrating with the business on a small level and building on small successes will lead to bigger wins and bigger change.

    Actions Next Steps
    • By fostering positive relationships throughout the organization, the Security Manager has improved the security culture and established himself as a trusted partner.
    • In an organization that had seen very little change in years, he has used well developed change management, business acumen, leadership, communication, collaboration, and innovative problem-solving competencies to affect his initiatives.
    • He can now return to the board with a great deal more leverage in seeking support for security investments.
    • The Security Manager will leverage his success in improving the information security culture and awareness to gain support for future initiatives.

    Step 4.1

    Decide next actions and support your CISO moving forward

    Activities

    • Complete the Info-Tech CISO Development Plan Template
    • Create a stakeholder relationship development plan

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO
    • The newly hired CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step

    Next actions for each of your development initiatives

    Execute

    Establish a set of first actions to set your plan into motion

    The CISO Development Plan Template provides a simple but powerful way to focus on what really matters to execute your plan.

    • By this point, the CISO is working on the personal competency development while simultaneously overseeing improvements across the security program, managing stakeholders, and seeking new business initiatives to engage with. This can be a lot to juggle effectively.
    • Disparate initiatives like these can hinder progress by creating confusion.
    • By distilling your plan down to Subject > Action > Outcome, you immediately restore focus and turn your plans into actionable items.
    • The outcome is most valuable when it is measurable. This makes progress (or lack of it) very easy to track and assess, so choose a meaningful metric.
    Item to Develop
    (competency/process/tech)
    First Action Toward Development
    Desired Outcome, Including a Measurable Indicator

    Download the CISO Development Plan Template

    4.1 Create a CISO development plan to keep all your objectives in one place

    Use Info-Tech’s CISO Development Plan Template to create a quick and simple yet powerful tool that you can refer to and update throughout your personal and professional development initiatives. As instructed in the template, you will document the following:

    Your Item to Develop The Next Action Required The Target Outcome
    This could be a CISO competency, a security process item, a security technology item, or an important relationship (or something else that is a priority). This could be as simple as “schedule lunch with a stakeholder” or “email Info-Tech to schedule a Guided Implementation call.” This part of the tool is meant to be continually updated as you progress through your projects. The strength of this approach is that it focuses your project into simple actionable steps that are easily achieved, rather than looking too far down the road and seeing an overwhelming task ahead. This will be something measurable like “reduce spending by 10%” or “have informal meeting with leaders from each department.”

    Info-Tech Insight
    A good plan doesn’t require anything that is outside of your control. Good measurable outcomes are behavior based rather than state based.
    “Increase the budget by 10%” is a bad goal because it is ultimately reliant on someone else and can be derailed by an unsupportive executive. A better goal is “reduce spending by 10%.” This is something more within the CISO’s control and is thus a better performance indicator and a more achievable goal.

    4.1 Create a CISO development plan to keep all your objectives in one place

    Below you will find sample content to populate your CISO Development Plan Template. Using this template will guide your CISO in achieving the goals identified here.

    The template itself is a metric for assessing the development of the CISO. The number of targets achieved by the due date will help to quantify the CISO’s progress.

    You may also want to include improvements to the organization’s security program as part of the CISO development plan.

    Area for Development Item for Development Next Action Required Key Stakeholders/ Owners Target Outcome Due Date Completed
    Core Competencies:
    Communication
    Executive
    communication
    Take economics course to learn business language Course completed [Insert date] [Y/N]
    Core Competencies:
    Communication
    Improve stakeholder
    relationships
    Email Bryce from finance to arrange lunch Improved relationship with finance department [Insert date] [Y/N]
    Technology Maturity: Security Prevention Identity and access management (IAM) system Call Info-Tech to arrange call on IAM solutions 90% of employees entered into IAM system [Insert date] [Y/N]
    Process Maturity: Response & Recovery Disaster recovery Read Info-Tech blueprint on disaster recovery Disaster recovery and backup policies in place [Insert date] [Y/N]

    Check out the First 100 Days as CISO blueprint for guidance on bringing improvements to the security program

    4.1 Use your action plan to track development progress and inform stakeholders

    • As you progress toward your goals, continually update the CISO development plan. It is meant to be a living document.
    • The Next Action Required should be updated regularly as you make progress so you can quickly jump in and take meaningful actions without having to reassess your position every time you open the plan. This is a simple but very powerful method.
    • To view your initiatives in customizable ways, you can use the drop-down menu on any column header to sort your initiatives (i.e. by due date, completed status, area for development). This allows you to quickly and easily see a variety of perspectives on your progress and enables you to bring upcoming or incomplete projects right to the top.
    Area for Development Item for Development Next Action Required Key Stakeholders/ Owners Target Outcome Due Date Completed
    Core Competencies:
    Communication
    Executive
    communication
    Take economics course to learn business language Course completed [Insert date] [Y/N]
    Core Competencies:
    Communication
    Improve stakeholder
    relationships
    Email Bryce from finance to arrange lunch Improved relationship with finance department [Insert date] [Y/N]
    Technology Maturity: Security Prevention Identity and access management (IAM) system Call Info-Tech to arrange call on IAM solutions 90% of employees entered into IAM system [Insert date] [Y/N]
    Process Maturity: Response & Recovery Disaster recovery Read Info-Tech blueprint on disaster recovery Disaster recovery and backup policies in place [Insert date] [Y/N]

    Step 4.2

    Regularly reassess to track development and progress

    Activities

    Create a calendar event for you and your CISO, including which items you will reassess and when

    This step involves the following participants:

    • CEO or other executive seeking to hire/develop a CISO
    • The newly hired CISO

    or

    • Current CISO seeking to upgrade capabilities

    Outcomes of this step

    Scheduled reassessment of the CISO’s competencies

    Execute

    4.2 Regularly evaluate your CISO’s progress

    < 1 day

    As previously mentioned, your CISO development plan is meant to be a living document. Your CISO will use this as a companion tool throughout project implementation, but periodically it will be necessary to re-evaluate the entire program to assess your progress and ensure that your actions are still in alignment with personal and organizational goals.

    Info-Tech recommends performing the following assessments quarterly or twice yearly with the help of our executive advisors (either over the phone or onsite).

    1. Sit down and re-evaluate your CISO core competencies using the CISO Core Competency Evaluation Tool.
    2. Analyze your relationships using the CISO Stakeholder Power Map Template.
    3. Compare all of these against your previous results to see what areas you have strengthened and decide if you need to focus on a different area now.
    4. Consider your CISO Development Plan Template and decide whether you have achieved your desired outcomes. If not, why?
    5. Schedule your next reassessment, then create a new plan for the upcoming quarter and get started.
    Materials
    • Laptop
    • CISO Development Plan Template
    Participants
    • CISO
    • Hiring executive (possibly)
    Output
    • Complete CISO and security program development plan

    Summary of Accomplishment

    Knowledge Gained

    • Understanding of the competencies contributing to a successful CISO
    • Strategic approach to integrate the CISO into the organization
    • View of various CISO functions from a variety of business and executive perspectives, rather than just a security view

    Process Optimized

    • Hiring of the CISO
    • Assessment and development of stakeholder relationships for the CISO
    • Broad planning for CISO development

    Deliverables Completed

    • IT Security Business Satisfaction and Alignment Diagnostic
    • CISO Core Competency Evaluation Tool
    • CISO Stakeholder Power Map Template
    • CISO Stakeholder Management Strategy Template
    • CISO Development Plan Template

    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

    workshop@infotech.com
    1-888-670-8889

    Related Info-Tech Research

    Build an Information Security Strategy
    Your security strategy should not be based on trying to blindly follow best practices but on a holistic risk-based assessment that is risk aware and aligns with your business context.

    The First 100 Days as CISO
    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, but the approach to the new position will be relatively the same.

    Implement a Security Governance and Management Program
    Business and security goals should be the same. Businesses cannot operate without security, and security's goal is to enable safe business operations.

    Research Contributors

    • Mark Lester, Information Security Manager, South Carolina State Ports Authority
    • Kyle Kennedy, CISO, CyberSN.com
    • James Miller, Information Security Director, Xavier University
    • Elliot Lewis, Vice President Security & Risk, Info-Tech Research Group
    • Andrew Maroun, Enterprise Security Lead, State of California
    • Brian Bobo, VP Enterprise Security, Schneider National
    • Candy Alexander, GRC Security Consultant, Towerall Inc.
    • Chad Fulgham, Chairman, PerCredo
    • Ian Parker, Head of Corporate Systems Information Security Risk and Compliance, Fujitsu EMEIA
    • Diane Kelly, Information Security Manager, Colorado State Judicial Branch
    • Jeffrey Gardiner, CISO, Western University
    • Joey LaCour, VP & Chief Security, Colonial Savings
    • Karla Thomas, Director IT Global Security, Tower Automotive
    • Kevin Warner, Security and Compliance Officer, Bridge Healthcare Providers
    • Lisa Davis, CEO, Vicinage
    • Luis Brown, Information Security & Compliance Officer, Central New Mexico Community College
    • Peter Clay, CISO, Qlik
    • Robert Banniza, Senior Director IT Center Security, AMSURG
    • Tim Tyndall, Systems Architect, Oregon State

    Bibliography

    Dicker, William. "An Examination of the Role of vCISO in SMBs: An Information Security Governance Exploration." Dissertation, Georgia State University, May 2, 2021. Accessed 30 Sep. 2022.

    Heidrick & Struggles. "2022 Global Chief Information Security Officer (CISO) Survey" Heidrick & Struggles International, Inc. September 6, 2022. Accessed 30 Sep. 2022.

    IBM Security. "Cost of a Data Breach Report 2022" IBM. August 1, 2022. Accessed 9 Nov. 2022.

    Mehta, Medha. "What Is a vCISO? Are vCISO Services Worth It?" Infosec Insights by Sectigo, June 23, 2021. Accessed Nov 22. 2022.

    Milica, Lucia. “Proofpoint 2022 Voice of the CISO Report” Proofpoint. May 2022. Accessed 6 Oct. 2022.

    Navisite. "The State of Cybersecurity Leadership and Readiness" Navisite. November 9, 2021. Accessed 9 Nov. 2022.

    Shayo, Conrad, and Frank Lin. “An Exploration of the Evolving Reporting Organizational Structure for the Chief Information Security Officer (CISO) Function” Journal of Computer Science and Information Technology, vol. 7, no. 1, June 2019. Accessed 28 Sep. 2022.

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    • 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

    Asset Management

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    • Download01-Title: Asset Management Executive Brief
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    • Parent Category Name: Infra and Operations
    • Parent Category Link: /infra-and-operations
    Asset management has a clear impact on the financials of your company. Clear insights are essential to keep your spending at the right level.

    Asset Management

    Prepare Your Application for PaaS

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    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • The application may have been written a long time ago, and have source code, knowledge base, or design principles misplaced or lacking, which makes it difficult to understand the design and build.
    • The development team does not have a standardized practice for assessing cloud benefits and architecture, design principles for redesigning an application, or performing capacity for planning activities.

    Our Advice

    Critical Insight

    • An infrastructure-driven cloud strategy overlooks application specific complexities. Ensure that an application portfolio strategy is a precursor to determining the business value gained from an application perspective, not just an infrastructure perspective.
    • Business value assessment must be the core of your decision to migrate and justify the development effort.
    • Right-size your application to predict future usage and minimize unplanned expenses. This ensures that you are truly benefiting from the tier costing model that vendors offer.

    Impact and Result

    • Identify and evaluate what cloud benefits your application can leverage and the business value generated as a result of migrating your application to the cloud.
    • Use Info-Tech’s approach to building a robust application that can leverage scalability, availability, and performance benefits while maintaining the functions and features that the application currently supports for the business.
    • Standardize and strengthen your performance testing practices and capacity planning activities to build a strong current state assessment.
    • Use Info-Tech’s elaboration of the 12-factor app to build a clear and robust cloud profile and target state for your application.
    • Leverage Info-Tech’s cloud requirements model to assess the impact of cloud on different requirements patterns.

    Prepare Your Application for PaaS Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a right-sized, design-driven approach to moving your application to a PaaS platform, 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:

    • Prepare Your Application for PaaS – Phases 1-2

    1. Create your cloud application profile

    Bring the business into the room, align your objectives for choosing certain cloud capabilities, and characterize your ideal PaaS environment as a result of your understanding of what the business is trying to achieve. Understand how to right-size your application in the cloud to maintain or improve its performance.

    • Prepare Your Application for PaaS – Phase 1: Create Your Cloud Application Profile
    • Cloud Profile Tool

    2. Evaluate design changes for your application

    Assess the application against Info-Tech’s design scorecard to evaluate the right design approach to migrating the application to PaaS. Pick the appropriate cloud path and begin the first step to migrating your app – gathering your requirements.

    • Prepare Your Application for PaaS – Phase 2: Evaluate Design Changes for Your Application
    • Cloud Design Scorecard Tool

    [infographic]

     
     

    Succeed With Digital Strategy Execution

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    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Rising customer expectations and competitive pressures have accelerated the pace at which organizations are turning to digital transformation to drive revenue or cut costs.
    • Many digital strategies are not put into action, and instead sit on the shelf. A digital strategy that is not translated into specific projects and initiatives will provide no value to the organization.
    • Executing a digital strategy is easier said than done: IT often lacks the necessary framework to create a roadmap, or fails to understand how new applications can enable the vision outlined in the strategy.

    Our Advice

    Critical Insight

    • A digital strategy needs a clear roadmap to succeed. Too many digital strategies are lofty statements of objective with no clear avenue for actual execution: create a digital strategy application roadmap to avoid this pitfall.
    • Understand the art of execution. Application capabilities are rapidly evolving: IT must stand ready to educate the business on how new applications can be used to pursue the digital strategy.

    Impact and Result

    • IT must work with the business to parse specific technology drivers from the digital strategy, distill strategic requirements, and create a prescriptive roadmap of initiatives that will close the gaps between the current state and the target state outlined in the digital strategy. Doing so well is a path to the CIO’s office.
    • To better serve the organization, IT leaders must stay abreast of key application capabilities and trends. Exciting new developments such as artificial intelligence, IoT, and machine learning have opened up new avenues for process digitization, but IT leaders need to make a concerted effort to understand what modern applications bring to the table for technology enablement of the digital strategy.
    • Taking an agile approach to application roadmap development will help to provide a clear path forward for tackling digital strategy execution, while also allowing for flexibility to update and iterate as the internal and external environment changes.

    Succeed With Digital Strategy Execution Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should have a structured approach to translating your digital strategy to specific application initiatives, 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. Parse digital strategy drivers

    Parse specific technology drivers out of the formal enterprise digital strategy.

    • Succeed With Digital Strategy Execution – Phase 1: Parse Your Digital Strategy for Critical Technology Drivers

    2. Map drivers to enabling technologies

    Review and understand potential enabling applications.

    • Succeed With Digital Strategy Execution – Phase 2: Map Your Drivers to Enabling Applications

    3. Create the application roadmap to support the digital strategy

    Use the drivers and an understanding of enabling applications to put together an execution roadmap that will support the digital strategy.

    • Succeed With Digital Strategy Execution – Phase 3: Create an Application Roadmap That Supports the Digital Strategy
    • Digital Strategy Roadmap Tool
    • Application Roadmap Presentation Template
    • Digital Strategy Communication and Execution Plan Template
    [infographic]

    Workshop: Succeed With Digital Strategy Execution

    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 Validate the Digital Strategy

    The Purpose

    Review and validate the formal enterprise digital strategy.

    Key Benefits Achieved

    Confirmation of the goals, objectives, and direction of the organization’s digital strategy.

    Activities

    1.1 Review the initial digital strategy.

    1.2 Determine gaps.

    1.3 Refine digital strategy scope and vision.

    1.4 Finalize digital strategy and validate with stakeholders.

    Outputs

    Validated digital strategy

    2 Parse Critical Technology Drivers

    The Purpose

    Enumerate relevant technology drivers from the digital strategy.

    Key Benefits Achieved

    List of technology drivers to pursue based on goals articulated in the digital strategy.

    Activities

    2.1 Identify affected process domains.

    2.2 Brainstorm impacts of digital strategy on technology enablement.

    2.3 Distill critical technology drivers.

    2.4 Identify KPIs for each driver.

    Outputs

    Affected process domains (based on APQC)

    Critical technology drivers for the digital strategy

    3 Map Drivers to Enabling Applications

    The Purpose

    Relate your digital strategy drivers to specific, actionable application areas.

    Key Benefits Achieved

    Understand the interplay between the digital strategy and impacted application domains.

    Activities

    3.1 Build and review current application inventory for digital.

    3.2 Execute fit-gap analysis between drivers and current state inventory.

    3.3 Pair technology drivers to specific enabling application categories.

    Outputs

    Current-state application inventory

    Fit-gap analysis

    4 Understand Applications

    The Purpose

    Understand how different applications support the digital strategy.

    Understand the art of the possible.

    Key Benefits Achieved

    Knowledge of how applications are evolving from a features and capabilities perspective, and how this pertains to digital strategy enablement.

    Activities

    4.1 Application spotlight: customer experience.

    4.2 Application spotlight: content and collaboration.

    4.3 Application spotlight: business intelligence.

    4.4 Application spotlight: enterprise resource planning.

    Outputs

    Application spotlights

    5 Build the Digital Application Roadmap

    The Purpose

    Create a concrete, actionable roadmap of application and technology initiatives to move the digital strategy forward.

    Key Benefits Achieved

    Clear, concise articulation of application roadmap for supporting digital that can be communicated to the business.

    Activities

    5.1 Build list of enabling projects and applications.

    5.2 Create prioritization criteria.

    5.3 Build the digital strategy application roadmap.

    5.4 Socialize the roadmap.

    5.5 Delineate responsibility for roadmap execution.

    Outputs

    Application roadmap for the digital strategy

    RACI chart for digital strategy roadmap execution

    Spread Best Practices With an Agile Center of Excellence

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    • Parent Category Name: Development
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    • Your organization is looking to create consistency across all Agile teams to drive greater business results and alignment.
    • You are seeking to organically grow Agile capabilities within the organization through a set of support structures and facilitated through shared learning and capabilities.

    Our Advice

    Critical Insight

    • Social capital can be an enabler, but also a barrier. People can only manage a finite number of relationships; ensure that the connections the Center of Excellence (CoE) facilitates are purposeful.
    • Don’t over govern. Empowerment is critical to enable improvements; set boundaries and let teams work inside them with autonomy.
    • Legitimize through listening. A CoE will not be leveraged unless it aligns with the needs of its users. Invest the time to align with the functional expectations of your Agile teams.

    Impact and Result

    • Create a set of service offerings aligned with both corporate objectives and the functional expectations of its customers to ensure broad support and utility of the invested resources.
    • Understand some of the cultural and processual challenges you will face when forming a center of excellence, and address them using Info-Tech’s Agile adoption model.

    Spread Best Practices With an Agile Center of Excellence Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build an Agile Center of Excellence, 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. Strategically align the Center of Excellence

    Create strategic alignment between the CoE and the organization’s goals, objectives, and vision.

    • Spread Best Practices With an Agile Center of Excellence – Phase 1: Strategically Align the Center of Excellence

    2. Standardize the Center of Excellence’s service offerings

    Build an engagement plan based on a standardized adoption model to ensure your CoE service offerings are accessible and consistent across the organization.

    • Spread Best Practices With an Agile Center of Excellence – Phase 2: Standardize the Center of Excellence’s Service Offerings

    3. Operate the Center of Excellence

    Operate the CoE to provide service offerings to Agile teams, identify improvements to optimize the function of your Agile teams, and effectively manage and communicate change.

    • Spread Best Practices With an Agile Center of Excellence – Phase 3: Operationalize Your Agile Center of Excellence
    • ACE Satisfaction Survey
    • CoE Maturity Diagnostic Tool
    • ACE Benefits Tracking Tool
    • ACE Communications Deck
    [infographic]

    Workshop: Spread Best Practices With an Agile Center of Excellence

    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 Determine Vision of CoE

    The Purpose

    Create strategic alignment between the CoE and the organization’s goals, objectives, and vision.

    Understand how your key stakeholders will impact the longevity of your CoE.

    Determine your CoE structure and staff.

    Key Benefits Achieved

    Top-down alignment with strategic aims of the organization.

    A set of high-level use cases to form the CoE’s service offerings around.

    Visualization of key stakeholders, with their current and desired power and involvement documented.

    Activities

    1.1 Identify and prioritize organizational business objectives.

    1.2 Form use cases for the points of alignment between your Agile Center of Excellence (ACE) and business objectives.

    1.3 Prioritize your ACE stakeholders.

    Outputs

    Prioritized business objectives

    Business-aligned use cases to form CoE’s service offerings

    Stakeholder map of key influencers

    2 Define Service Offerings of CoE

    The Purpose

    Document the functional expectations of the Agile teams.

    Refine your business-aligned use cases with your collected data to achieve both business and functional alignment.

    Create a capability map that visualizes and prioritizes your key service offerings.

    Key Benefits Achieved

    Understanding of some of the identified concerns, pain points, and potential opportunities from your stakeholders.

    Refined use cases that define the service offerings the CoE provides to its customers.

    Prioritization for the creation of service offerings with a capability map.

    Activities

    2.1 Classified pains and opportunities.

    2.2 Refine your use cases to identify your ACE functions and services.

    2.3 Visualize your ACE functions and service offerings with a capability map.

    Outputs

    Classified pains and opportunities

    Refined use cases based on pains and opportunities identified during ACE requirements gathering

    ACE Capability Map

    3 Define Engagement Plans

    The Purpose

    Align service offerings with an Agile adoption model so that teams have a structured way to build their skills.

    Standardize the way your organization will interact with the Center of Excellence to ensure consistency in best practices.

    Key Benefits Achieved

    Mechanisms put in place for continual improvement and personal development for your Agile teams.

    Interaction with the CoE is standardized via engagement plans to ensure consistency in best practices and predictability for resourcing purposes.

    Activities

    3.1 Further categorize your use cases within the Agile adoption model.

    3.2 Create an engagement plan for each level of adoption.

    Outputs

    Adoption-aligned service offerings

    Role-based engagement plans

    4 Define Metrics and Plan Communications

    The Purpose

    Develop a set of metrics for the CoE to monitor business-aligned outcomes with.

    Key Benefits Achieved

    The foundations of continuous improvement are established with a robust set of Agile metrics.

    Activities

    4.1 Define metrics that align with your Agile business objectives.

    4.2 Define target ACE performance metrics.

    4.3 Define Agile adoption metrics.

    4.4 Assess the interaction and communication points of your Agile team.

    4.5 Create a communication plan for change.

    Outputs

    Business objective-aligned metrics

    CoE performance metrics

    Agile adoption metrics

    Assessment of organizational design

    CoE communication plan

    Further reading

    Spread Best Practices With an Agile Center of Excellence

    Achieve ongoing alignment between Agile teams and the business with a set of targeted service offerings.

    ANALYST PERSPECTIVE

    "Inconsistent processes and practices used across Agile teams is frequently cited as a challenge to adopting and scaling Agile within organizations. (VersionOne’s 13th Annual State of Agile Report [N=1,319]) Creating an Agile Center of Excellence (ACE) is a popular way to try to impose structure and improve performance. However, simply establishing an ACE does not guarantee you will be successful with Agile. When setting up an ACE you must: Define ACE services based on identified stakeholder needs. Staff the ACE with respected, “hands on” people, who deliver identifiable value to your Agile teams. Continuously evolve ACE service offerings to maximize stakeholder satisfaction and value delivered."

    Alex Ciraco, Research Director, Applications Practice Info-Tech Research Group

    Our understanding of the problem

    This Research Is Designed For:

    • A CIO who is looking for a way to optimize their Agile capabilities and ensure ongoing alignment with business objectives.
    • An applications director who is looking for mechanisms to inject continuous improvement into organization-wide Agile practices.

    This Research Will Help You:

    • Align your Agile support structure with business objectives and the functional expectations of its users.
    • Standardize the ways in which Agile teams develop and learn to create consistency in purpose and execution.
    • Track and communicate successes to ensure the long-term viability of an Agile Center of Excellence (ACE).

    This Research Will Also Assist

    • Project managers who are tasked with managing Agile projects.
    • Application development managers who are struggling with establishing consistency, transparency, and collaboration across their teams.

    This Research Will Help Them:

    • Provide service offerings to their team members that will help them personally and collectively to develop desired skills.
    • Provide oversight and transparency into Agile projects and outcomes through ongoing monitoring.

    Executive summary

    Situation

    • Your organization has had some success with Agile, but needs to drive consistency across Agile teams for better business results and alignment.
    • You are seeking to organically grow Agile capabilities within the organization through a set of support services and facilitated through shared learning and capabilities.

    Complication

    • Organizational constraints, culture clash, and lack of continuous top-down support are hampering your Agile growth and maturity.
    • Attempts to create consistency across Agile teams and processes fail to account for the expectations of users and stakeholders, leaving them detached from projects and creating resistance.

    Resolution

    • Align the service offerings of your ACE with both corporate objectives and the functional expectations of its stakeholders to ensure broad support and utilization of the invested resources.
    • Understand some of the culture and process challenges you will face when forming an ACE, and address them using Info-Tech’s Agile adoption journey model.
    • Track the progress of the ACE and your Agile teams. Use this data to find root causes for issues, and ideate to implement solutions for challenges as they arise over time.
    • Effectively define and propagate improvements to your Agile teams in order to drive business-valued results.
    • Communicate progress to interested stakeholders to ensure long-term viability of the Center of Excellence (CoE).

    Info-Tech Insight

    1. Define ACE services based on stakeholder needs.Don’t assume you know what your stakeholders need without talking to them.
    2. Staff the ACE strategically. Choose those who are thought leaders and proven change agents.
    3. Continuously improve based on metrics and feedback.Constantly monitor how your ACE is performing and adjust to feedback.

    Info-Tech’s Agile Journey related Blueprints

    1. Stabilize

    Implement Agile Practices That Work

    Begin your Agile transformation with a comprehensive readiness assessment and a pilot project to adopt Agile development practices and behaviors that fit.

    2. Sustain

    YOU ARE HERE

    Spread Best Practices with an Agile Center of Excellence

    Form an ACE to support Agile development at all levels of the organization with thought leadership, strategic development support & process innovation.

    3. Scale

    Enable Organization-Wide Collaboration by Scaling Agile

    Extend the benefits of your Agile pilot project into your organization by strategically scaling Agile initiatives that will meet stakeholders’ needs.

    4. Satisfy

    Transition to Product Delivery Introduce product-centric delivery practices to drive greater benefits and better delivery outcomes.

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    2.1 Define an adoption plan for Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives

    Supporting Capabilities and Practices

    Modernize Your SDLC

    Remodel the stages of your lifecycle to standardize your definition of a successful product.

    Build a Strong Foundation for Quality

    Instill quality assurance practices and principles in each stage of your software development lifecycle.

    Implement DevOps Practices That Work

    Fix, deploy, and support applications quicker though development and operations collaboration.

    What is an Agile Center of Excellence?

    NOTE: Organizational change is hard and prone to failure. Determine your organization’s level of readiness for Agile transformation (and recommended actions) by completing Info-Tech’s Agile Transformation Readiness Tool.

    An ACE amplifies good practices that have been successfully employed within your organization, effectively allowing you to extend the benefits obtained from your Agile pilot(s) to a wider audience.

    From the viewpoint of the business, members of the ACE provide expertise and insights to the entire organization in order to facilitate Agile transformation and ensure standard application of Agile good practices.

    From the viewpoint of your Agile teams, it provides a community of individuals that share experiences and lessons learned, propagate new ideas, and raise questions or concerns so that delivering business value is always top of mind.

    An ACE provides the following:

    1. A mechanism to gather thought leadership to maximize the accessibility and reach of your Agile investment.
    2. A mechanism to share innovations and ideas to facilitate knowledge transfer and ensure broadly applicable innovations do not go to waste.
    3. Strategic alignment to ensure that Agile practices are driving value towards business objectives.
    4. Purposeful good practices to ensure that the service offerings provided align with expectations of both your Agile practitioners and stakeholders.

    SIDEBAR: What is a Community of Practice? (And how does it differ from a CoE?)

    Some organizations prefer Communities of Practice (CoP) to Centers of Excellence (CoE). CoPs are different from CoEs:

    A CoP is an affiliation of people who share a common practice and who have a desire to further the practice itself … and of course to share knowledge, refine best practices, and introduce standards. CoPs are defined by their domain of interest, but the membership is a social structure comprised of volunteer practitioners

    – Wenger, E., R. A. McDermott, et al. (2002) Cultivating communities of practice: A guide to managing knowledge, Harvard Business Press.

    CoPs differ from a CoE mainly in that they tend to have no geographical boundaries, they hold no hierarchical power within a firm, and they definitely can never have structure determined by the company. However, one of the most obvious and telling differences lies in the stated motive of members – CoPs exist because they have active practitioner members who are passionate about a specific practice, and the goals of a CoP are to refine and improve their chosen domain of practice – and the members provide discretionary effort that is not paid for by the employer

    – Matthew Loxton (June 1, 2011) CoP vs CoE – What’s the difference, and Why Should You Care?, Wordpress.com

    What to know about CoPs:

    1. Less formal than a CoE
      • Loosely organized by volunteer practitioners who are interested in advancing the practice.
    2. Not the Authoritative Voice
      • Stakeholders engage the CoP voluntarily, and are not bound by them.
    3. Not funded by Organization
      • CoP members are typically volunteers who provide support in addition to their daily responsibilities.
    4. Not covered in this Blueprint
      • In depth analysis on CoPs is outside the scope of this Blueprint.

    What does an ACE do? Six main functions derived from Info-Tech’s CLAIM+G Framework

    1. Learning
    • Provide training and development and enable engagement based on identified interaction points to foster organizational growth.
  • Tooling
    • Promote the use of standardized tooling to improve efficiency and consistency throughout the organization.
  • Supporting
    • Enable your Agile teams to access subject-matter expertise by facilitating knowledge transfer and documenting good practices.
  • Governing
    • Create operational boundaries for Agile teams, and monitor their progress and ability to meet business objectives within these boundaries.
  • Monitoring
    • Demonstrate the value the CoE is providing through effective metric setting and ongoing monitoring of Agile’s effectiveness.
  • Guiding
    • Provide guidance, methodology, and knowledge for teams to leverage to effectively meet organizational business objectives.
  • Many organizations encounter challenges to scaling Agile

    Tackle the following barriers to Agile adoption with a business-aligned ACE.

    List based on reported impediments from VersionOne’s 13th Annual State of Agile Report (N=1,319)

    1. Organizational culture at odds with Agile values
    • The ACE identifies and measures the value of Agile to build support from senior business leaders for shifting the organizational culture and achieving tangible business benefits.
  • General organizational resistance to change
    • Resistance comes from a lack of trust. Optimized value delivery from Info-Tech’s Agile adoption model will build the necessary social capital to drive cultural change.
  • Inadequate management support and sponsorship
    • Establishing an ACE will require senior management support and sponsorship. Its formation sends a strong signal to the organizational leadership that Agile is here to stay.
  • Lack of skills/experience with Agile methods
    • The ACE provides a vehicle to absorb external training into an internal development program so that Agile capabilities can be grown organically within the organization.
  • Inconsistent processes and practices across teams
    • The ACE provides support to individual Agile teams and will guide them to adopt consistent processes and practices which have a proven track record in the organization.
  • Insufficient training and education
    • The ACE will assist teams with obtaining the Agile skills training they need to be effective in the organization, and support a culture of continuous learning.
  • Overcome your Agile scaling challenges with a business aligned ACE

    An ACE drives consistency and transparency without sacrificing the ability to innovate. It can build on the success of your Agile pilot(s) by encouraging practices known to work in your organization.

    Support Agile Teams

    Provide services designed to inject evolving good practices into workflows and remove impediments or roadblocks from your Agile team’s ability to deliver value.

    Maintain Business Alignment

    Maintain alignment with corporate objectives without impeding business agility in the long term. The ACE functions as an interface layer so that changing expectations can be adapted without negatively impacting Agile teams.

    Facilitate Learning Events

    Avoid the risk of innovation and subject-matter expertise being lost or siloed by facilitating knowledge transfer and fostering a continuous learning environment.

    Govern Improvements

    Set baselines, monitor metrics, and run retrospectives to help govern process improvements and ensure that Agile teams are delivering expected benefits.

    Shift Culture

    Instill Agile thinking and behavior into the organization. The ACE must encourage innovation and be an effective agent for change.

    Use your ACE to go from “doing” Agile to “being” Agile

    Organizations that do Agile without embracing the changes in behavior will not reap the benefits.

    Doing what was done before

    • Processes and Tools
    • Comprehensive Documentation
    • Contract Negotiation
    • Following a Plan

    Being Prescriptive

    Going through the motions

    • Uses SCRUM and tools such as Jira
    • Plans multiple sprints in detail
    • Talks to stakeholders once in a release
    • Works off a fixed scope BRD

    Doing Agile

    Living the principles

    • Individuals and Interactions
    • Working Software
    • Customer Collaboration
    • Responding to Change

    Being Agile

    “(‘Doing Agile’ is) just some rituals but without significant change to support the real Agile approach as end-to-end, business integration, value focus, and team empowerment.” - Arie van Bennekum

    Establishing a CoE does not guarantee success

    Simply establishing a Center of Excellence for any discipline does not guarantee its success:

    The 2019 State of DevOps Report found that organizations which had established DevOps CoEs underperformed compared to organizations which adopted other approaches for driving DevOps transformation. (Accelerate State of DevOps Report 2019 [N=~1,000])

    Still, Agile Centers of Excellence can and do successfully drive Agile adoption in organizations. So what sets the successful examples apart from the others? Here’s what some have to say:

    The ACE must be staffed with qualified people with delivery experience! … [It is] effectively a consulting practice, that can evolve and continuously improve its services … These services are collectively about ‘enablement’ as an output, more than pure training … and above all, the ability to empirically measure the progress” – Paul Blaney, TD Bank

    “When leaders haven’t themselves understood and adopted Agile approaches, they may try to scale up Agile the way they have attacked other change initiatives: through top-down plans and directives. The track record is better when they behave like an Agile team. That means viewing various parts of the organization as their customers.” – HBR, “Agile at Scale”

    “the Agile CoE… is truly meant to be measured by the success of all the other groups, not their own…[it] is meant to be serving the teams and helping them improve, not by telling them what to do, but rather by listening, understanding and helping them adapt.” - Bart Gerardi, PMI

    The CoE must also avoid becoming static, as it’s crucial the team can adjust as quickly as business and customer needs change, and evolve the technology as necessary to remain competitive.” – Forbes, “RPA CoE (what you need to know)”

    "The best CoEs are formed from thought leaders and change agents within the CoE domain. They are the process and team innovators who will influence your CoE roadmap and success. Select individuals who feel passionate about Agile." – Hans Eckman, InfoTech

    To be successful with your ACE, do the following…

    Info-Tech Insight

    Simply establishing an Agile Center of Excellence does not guarantee its success. When setting up your ACE, optimize its impact on the organization by doing the following 3 things:

    1. Define ACE services based on stakeholder needs. Be sure to broadly survey your stakeholders and identify the ACE functions and services which will best meet their needs. ACE services must clearly deliver business value to the organization and the Agile teams it supports.
    2. Staff the ACE strategically. Select ACE team members who have real world, hands-on delivery experience, and are well respected by the Agile teams they will serve. Where possible, select internal thought leaders in your organization who have the credibility needed to effect positive change.
    3. Continuously improve ACE services based on metrics and feedback. The value your ACE brings to the organization must be clear and measurable, and do not assume that your functions and services will remain static. You must regularly monitor both your metrics and feedback from your Agile teams, and adjust ACE behavior to improve/maximize these over time.

    Spread Best Practices With an Agile Center of Excellence

    This blueprint will walk you through the steps needed to build the foundations for operational excellence within an Agile Center of Excellence.

    Phase 1 - Strategically Align the CoE

    Create strategic alignment between the CoE and the organization’s goals, objectives, and vision. This alignment translates into the CoE mandate intended to enhance the way Agile will enable teams to meet business objectives.

    Phase 2 - Standardize the CoEs Service Offerings

    Build an engagement plan based on a standardized adoption model to ensure your CoE service offerings are accessible and consistent across the organization. Create and consolidate key performance indicators to measure the CoEs utility and whether or not the expected value is being translated to tangible results.

    Phase 3 - Operate the CoE

    Operate the CoE to provide service offerings to Agile teams, identify improvements to optimize the function of your Agile teams, and effectively manage and communicate change so that teams can grow within the Agile adoption model and optimize value delivery both within your Agile environment and across functions.

    Info-Tech’s Practice Adoption Journey

    Use Info-Tech’s Practice Adoption Journey model to establish your ACE. Building social capital (stakeholders’ trust in your ability to deliver positive outcomes) incrementally is vital to ensure that everyone is aligned to new mindsets and culture as your Agile practices scale.

    Trust & Competency ↓

    DEFINE

    Begin to document your development workflow or value chain, implement a tracking system for KPIs, and start gathering metrics and reporting them transparently to the appropriate stakeholders.

    ITERATE

    Use collected metrics and retrospectives to stabilize team performance by reducing areas of variability in your workflow and increasing the consistency at which targets are met.

    COLLABORATE

    Use information to support changes and adopt appropriate practices to make incremental improvements to the existing environment.

    EMPOWER

    Drive behavioral and cultural changes that will empower teams to be accountable for their own success and learning.

    INNOVATE

    Use your built-up trust and support practice innovation, driving the definition and adoption of new practices.

    Align your ACE with your organization’s strategy

    This research set will assist you with aligning your ACEs services to the objectives of the business in order to justify the resources and funding required by your Agile program.

    Business Objectives → Alignment ←ACE Functions

    Business justification to continue to fund a Center of Excellence can be a challenge, especially with traditional thinking and rigid stakeholders. Hit the ground running and show value to your key influencers through business alignment and metrics that will ensure that the ACE is worth continuous investment.

    Alignment leads to competitive advantage

    The pace of change in customer expectations, competitive landscapes, and business strategy is continuously increasing. It is critical to develop a method to facilitate ongoing alignment to shifting business and development expectations seamlessly and ensure that your Agile teams are able to deliver expected business value.

    Use Info-Tech’s CoE Operating Model to define the service offerings of your ACE

    Understand where your inputs and outputs lie to create an accessible set of service offerings for your Agile teams.

    The image shows a graphic of the COE Operating Model, showing the inputs and outputs, including Other CoEs (at top); Stakeholder Needs (at left); Metrics and Feedback (at bottom); and ACE Functions and Services (at right)

    Continuously improve the ACE to ensure long-term viability

    Improvement involves the continuous evaluation of the performance of your teams, using well-defined metrics and reasonable benchmarks that are supplemented by analogies and root-cause analysis in retrospectives.

    Monitor

    Monitor your metrics to ensure desired benefits are being realized. The ACE is responsible for ensuring that expected Agile benefits are achievable and on track. Monitor against your defined baselines to create transparency and accountability for desired outcomes.

    Iterate

    Run retrospectives to drive improvements and fixes into Agile projects and processes. Metrics falling short of expectations must be diagnosed and their root causes found, and fixes need to be communicated and injected back into the larger organization.

    Define

    Define metrics and set targets that align with the goals of the ACE. These metrics represent the ACEs expected value to the organization and must be measured against on a regular basis to demonstrate value to your key stakeholders.

    Beware the common risks of implementing your ACE

    Culture clash between Agile teams and larger organization

    Agile leverages empowered teams, meritocracy, and broad collaboration for success, but typical organizations are siloed and hierarchical with top down decision making. There needs to be a plan to enable a smooth transition from the current state towards the Agile target state.

    Persistence of tribal knowledge

    Agile relies on easy and open knowledge sharing, but organizational knowledge can sit in siloes. Employees may also try to protect their expertise for job security. It is important to foster knowledge sharing to ensure that critical know-how is accessible and doesn’t leave the organization with the individual.

    Rigid management structures

    Rigidity in how managers operate (performance reviews, human resource management, etc.) can result in cultural rejection of Agile. People need to be assessed on how they enable their teams rather than as individual contributors. This can help ensure that they are given sufficient opportunities to succeed. More support and less strict governance is key.

    Breakdown due to distributed teams

    When face-to-face interactions are challenging, ensure that you invest in the right communication technologies and remove cultural and process impediments to facilitate organization-wide collaboration. Alternative approaches like using documentation or email will not provide the same experience and value as a face-to-face conversation.

    The State of Maine used an ACE to foster positive cultural change

    CASE STUDY

    Industry - Government

    Source - Cathy Novak, Agile Government Leadership

    The State of Maine’s Agile Center of Excellence

    “The Agile CoE in the State of Maine is completely focused on the discipline of the methodology. Every person who works with Agile, or wants to work with Agile, belongs to the CoE. Every member of the CoE tells the same story, approaches the methodology the same way, and uses the same tools. The CoE also functions as an Agile research lab, experimenting with different standards and tools.

    The usual tools of project management – mission, goals, roles, and a high-level definition of done – can be found in Maine’s Agile CoE. For story mapping, teams use sticky notes on a large wall or whiteboard. Demonstrating progress this way provides for positive team dynamics and a psychological bang. The State of Maine uses a project management framework that serves as its single source of truth. Everyone knows what’s going on at all times and understands the purpose of what they are doing. The Agile team is continually looking for components that can be reused across other agencies and programs.”

    Results:

    • Realized positive culture change, leading to more collaborative and supportive teams.
    • Increased visibility of Agile benefits across functional groups.
    • Standardized methodology across Agile teams and increased innovation and experimentation with new standards and tools.
    • Improved traceability of projects.
    • Increased visibility and ability to determine root causes of problems and right the course when outcomes are not meeting expectations.

    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

    Spread Best Practices With an Agile Center of Excellence – project overview

    1. Strategically align the Center of Excellence 2. Standardize the CoEs service offerings 3. Operate the Center of Excellence
    Best-Practice Toolkit

    1.1 Determine the vision of your ACE.

    1.2 Define the service offerings of your ACE.

    2.1 Define an adoption plan for your Agile teams.

    2.2 Create an ACE engagement plan.

    2.3 Define metrics to measure success.

    3.1 Optimize the success of your ACE.

    3.2 Plan change to enhance your Agile initiatives.

    3.3 Conduct ongoing retrospectives of your ACE.

    Guided Implementations
    • Align your ACE with the business.
    • Align your ACE with its users.
    • Dissect the key attributes of Agile adoption.
    • Form engagement plans for your Agile teams.
    • Discuss effective ACE metrics.
    • Conduct a baseline assessment of your Agile environment.
    • Interface ACE with your change management function.
    • Build a communications deck for key stakeholders.
    Onsite Workshop Module 1: Strategically align the ACE Module 2: Standardize the offerings of the ACE Module 3: Prepare for organizational change
    Phase 1 Outcome: Create strategic alignment between the CoE and organizational goals.

    Phase 2 Outcome: Build engagement plans and key performance indicators based on a standardized Agile adoption plan.

    Phase 3 Outcome: Operate the CoEs monitoring function, identify improvements, and manage the change needed to continuously improve.

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Module 1 Workshop Module 2 Workshop Module 3 Workshop Module 4
    Activities

    Determine vision of CoE

    1.1 Identify and prioritize organizational business objectives.

    1.2 Form use cases for the points of alignment between your ACE and business objectives.

    1.3 Prioritize your ACE stakeholders.

    Define service offerings of CoE

    2.1 Form a solution matrix to organize your pain points and opportunities.

    2.2 Refine your use cases to identify your ACE functions and services.

    2.3 Visualize your ACE functions and service offerings with a capability map.

    Define engagement plans

    3.1 Further categorize your use cases within the Agile adoption model.

    3.2 Create an engagement plan for each level of adoption.

    Define metrics and plan communications

    4.1 Define metrics that align with your Agile business objectives.

    4.2 Define target ACE performance metrics.

    4.3 Define Agile adoption metrics.

    4.4 Assess the interaction and communication points of your Agile team.

    4.5 Create a communication plan for change.

    Deliverables
    1. Prioritized business objectives
    2. Business-aligned use cases to form CoEs service offerings
    3. Prioritized list of stakeholders
    1. Classified pains and opportunities
    2. Refined use cases based on pains and opportunities identified during ACE requirements gathering
    3. ACE capability map
    1. Adoption-aligned service offerings
    2. Role-specific engagement plans
    1. Business objective-aligned metrics
    2. ACE performance metrics
    3. Agile adoption metrics
    4. Assessment of organization design
    5. ACE Communication Plan

    Phase 1

    Strategically Align the Center of Excellence

    Spread Best Practices With an Agile Center of Excellence

    Begin by strategically aligning your Center of Excellence

    The first step to creating a high-functioning ACE is to create alignment and consensus amongst your key stakeholders regarding its purpose. Engage in a set of activities to drill down into the organization’s goals and objectives in order to create a set of high-level use cases that will evolve into the service offerings of the ACE.

    Phase 1 - Strategically Align the CoE

    Create strategic alignment between the CoE and the organization’s goals, objectives, and vision. This alignment translates into the CoE mandate intended to enhance the way Agile will enable teams to meet business objectives.

    Phase 2 - Standardize the CoEs Service Offerings

    Build an engagement plan based on a standardized adoption model to ensure your CoE service offerings are accessible and consistent across the organization. Create and consolidate key performance indicators to measure the CoEs utility and whether or not the expected value is being translated to tangible results.

    Phase 3 - Operate the CoE

    Operate the CoE to provide service offerings to Agile teams, identify improvements to optimize the function of your Agile teams, and effectively manage and communicate change so that teams can grow within the Agile adoption model and optimize value delivery both within your Agile environment and across functions.

    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: Strategically align the ACE

    Proposed Time to Completion (in weeks): 1

    Step 1.1: Determine the vision of your ACE

    Start with an analyst kick off call:

    • Align your ACE with the business.

    Then complete these activities…

    1.1.1 Optional: Baseline your ACE maturity.

    1.1.2 Identify and prioritize organizational business objectives.

    1.1.3 Form use cases for the points of alignment between your ACE and business objectives.

    1.1.4 Prioritize your ACE stakeholders.

    1.1.5 Select a centralized or decentralized model for your ACE.

    1.1.6 Staff your ACE strategically.

    Step 1.2: Define the service offerings of your ACE

    Start with an analyst kick off call:

    • Align your ACE with its users.

    Then complete these activities…

    1.2.1 Form the Center of Excellence.

    1.2.2 Gather and document your existing Agile practices for the CoE.

    1.2.3 Interview stakeholders to align ACE requirements with functional expectations.

    1.2.4 Form a solution matrix to organize your pain points and opportunities.

    1.2.5 Refine your use cases to identify your ACE functions and services.

    1.2.6 Visualize your ACE functions and service offerings with a capability map.

    Phase 1 Results & Insights:

    • Aligning your ACE with the functional expectations of its users is just as critical as aligning with the business. Invest the time to understand how the ACE fits at all levels of the organization to ensure its highest effectiveness.

    Phase 1, Step 1: Determine the vision of your ACE

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities:

    1.1.1 Optional: Baseline your ACE maturity.

    1.1.2 Identify and prioritize organizational business objectives.

    1.1.3 Form use cases for the points of alignment between your ACE and business objectives.

    1.1.4 Prioritize your ACE stakeholders.

    1.1.5 Select a centralized or decentralized model for your ACE.

    1.1.6 Staff your ACE strategically.

    Outcomes:

    • Gather your leadership to position the ACE and align it with business priorities.
    • Form a set of high-level use cases for services that will support the enablement of business priorities.
    • Map the stakeholders of the ACE to visualize expected influence and current support levels for your initiative.

    What does an ACE do? Six main functions derived from Info-Tech’s CLAIM+G Framework

    1. Learning
    • Provide training and development and enable engagement based on identified interaction points to foster organizational growth.
  • Tooling
    • Promote the use of standardized tooling to improve efficiency and consistency throughout the organization.
  • Supporting
    • Enable your Agile teams to access subject-matter expertise by facilitating knowledge transfer and documenting good practices.
  • Governing
    • Create operational boundaries for Agile teams, and monitor their progress and ability to meet business objectives within these boundaries.
  • Monitoring
    • Demonstrate the value the CoE is providing through effective metric setting and ongoing monitoring of Agile’s effectiveness.
  • Guiding
    • Provide guidance, methodology, and knowledge for teams to leverage to effectively meet organizational business objectives.
  • OPTIONAL: If you have an existing ACE, use Info-Tech’s CoE Maturity Diagnostic Tool to baseline current practices

    1.1.1 Existing CoE Maturity Assessment

    Purpose

    If you already have established an ACE, use Info-Tech’s CoE Maturity Diagnostic Tool to baseline its current maturity level (this will act as a baseline for comparison after you complete this Blueprint). Assessing your ACEs maturity lets you know where you currently are, and where to look for improvements.

    Steps

    1. Download the CoE Maturity Diagnostic Tool to assess the maturity of your ACE.
    2. Complete the assessment tool with all members of your ACE team to determine your current Maturity score.
    3. Document the results in the ACE Communications Deck.

    Document results in the ACE Communications Deck.

    INFO-TECH DELIVERABLE

    The image is a screen capture of the CoE Maturity Diagnostic Tool

    Download the CoE Maturity Diagnostic Tool.

    Get your Agile leadership together and position the ACE

    Stakeholder Role Why they are essential players
    CIO/ Head of IT Program sponsor: Champion and set the tone for the Agile program. Critical in gaining and maintaining buy-in and momentum for the spread of Agile service offerings. The head of IT has insight and influence to drive buy-in from executive stakeholders and ensure the long-term viability of the ACE.
    Applications Director Program executor: Responsible for the formation of the CoE and will ensure the viability of the initial CoE objectives, use cases, and service offerings. Having a coordinator who is responsible for collating performance data, tracking results, and building data-driven action plans is essential to ensuring continuous success.
    Agile Subject-Matter Experts Program contributor: Provide information on the viability of Agile practices and help build capabilities on existing best practices. Agile’s success relies on adoption. Leverage the insights of people who have implemented and evangelized Agile within your organization to build on top of a working foundation.
    Functional Group Experts Program contributor: Provide information on the functional group’s typical processes and how Agile can achieve expected benefits. Agile’s primary function is to drive value to the business – it needs to align with the expected capabilities of existing functional groups in order to enhance them for the better.

    Align your ACE with your organization’s strategy

    This research set will assist you with aligning your ACEs services to the objectives of the business in order to justify the resources and funding required by your Agile program.

    Business Objectives → Alignment ←ACE Functions

    Business justification to continue to fund a Center of Excellence can be a challenge, especially with traditional thinking and rigid stakeholders. Hit the ground running and show value to your key influencers through business alignment and metrics that will ensure that the ACE is worth continuous investment.

    Alignment leads to competitive advantage

    The pace of change in customer expectations, competitive landscapes, and business strategy is continuously increasing. It is critical to develop a method to facilitate ongoing alignment to shifting business and development expectations seamlessly and ensure that your Agile teams are able to deliver expected business value.

    Activity: Identify and prioritize organizational business objectives

    1.1.2 2 Hours

    Input

    • Organizational business objectives

    Output

    • Prioritized business objectives

    Materials

    • Whiteboard
    • Markers

    Participants

    • Agile leadership group
    1. List the primary high-level business objectives that your organization aims to achieve over the course of the following year (focusing on those that ACE can impact/support).
    2. Prioritize these business objectives while considering the following:
    • Criticality of completion: How critical is the initiative in enabling the business to achieve its goals?
    • Transformational impact: To what degree is the foundational structure of the business affected by the initiative (rationale: Agile can support impact on transformational issues)?
  • Document the hypothesized role of Agile in supporting these business objectives. Take the top three prioritized objectives forward for the establishment of your ACE. While in future years or iterations you can inject more offerings, it is important to target your service offerings to specific critical business objectives to gain buy-in for long-term viability of the CoE.
  • Sample Business Objectives:

    • Increase customer satisfaction.
    • Reduce time-to-market of product releases.
    • Foster a strong organizational culture.
    • Innovate new feature sets to differentiate product. Increase utilization rates of services.
    • Reduce product delivery costs.
    • Effectively integrate teams from a merger.
    • Offer more training programs for personal development.
    • Undergo a digital transformation.

    Understand potential hurdles when attempting to align with business objectives

    While there is tremendous pressure to align IT functions and the business due to the accelerating pace of change and technology innovation, you need to be aware that there are limitations in achieving this goal. Keep these challenges at the top of mind as you bring together your stakeholders to position the service offerings of your ACE. It is beneficial to make your stakeholders self-aware of these biases as well, so they come to the table with an open mind and are willing to find common ground.

    The search for total alignment

    There are a plethora of moving pieces within an organization and total alignment is not a plausible outcome.

    The aim of a group should not be to achieve total alignment, but rather reframe and consider ways to ensure that stakeholders are content with the ways they interact and that misalignment does not occur due to transparency or communication issues.

    “The business” implies unity

    While it may seem like the business is one unified body, the reality is that the business can include individuals or groups (CEO, CFO, IT, etc.) with conflicting priorities. While there are shared business goals, these entities may all have competing visions of how to achieve them. Alignment means compromise and agreement more than it means accommodating all competing views.

    Cost vs. reputation

    There is a political component to alignment, and sometimes individual aspirations can impede collective gain.

    While the business side may be concerned with cost, those on the IT side of things can be concerned with taking on career-defining projects to bolster their own credentials. This conflict can lead to serious breakdowns in alignment.

    Panera Bread used Agile to adapt to changing business needs

    CASE STUDY

    Industry Food Services

    Source Scott Ambler and Associates, Case Study

    Challenge

    Being in an industry with high competition, Panera Bread needed to improve its ability to quickly deliver desired features to end customers and adapt to changing business demands from high internal growth.

    Solution

    Panera Bread engaged in an Agile transformation through a mixture of Agile coaching and workshops, absorbing best practices from these engagements to drive Agile delivery frameworks across the enterprise.

    Results

    Adopting Agile delivery practices resulted in increased frequency of solution delivery, improving the relationship between IT and the business. Business satisfaction increased both with the development process and the outcomes from delivery.

    The transparency that was needed to achieve alignment to rapidly changing business needs resulted in improved communication and broad-scale reduced risk for the organization.

    "Agile delivery changed perception entirely by building a level of transparency and accountability into not just our software development projects, but also in our everyday working relationships with our business stakeholders. The credibility gains this has provided our IT team has been immeasurable and immediate."

    – Mike Nettles, VP IT Process and Architecture, Panera Bread

    Use Info-Tech’s CoE Operating Model to define the service offerings of your ACE

    Understand where your inputs and outputs lie to create an accessible set of service offerings for your Agile teams.

    Functional Input

    • Application Development
    • Project Management
    • CIO
    • Enterprise Architecture
    • Data Management
    • Security
    • Infrastructure & Operations
    • Who else?

    The image shows a graphic of the COE Operating Model, showing the inputs and outputs, including Other CoEs (at top); Stakeholder Needs (at left); Metrics and Feedback (at bottom); and ACE Functions and Services (at right)

    Input arrows represent functional group needs, feedback from Agile teams, and collaboration with other CoEs and CoPs

    Output arrows represent the services the CoE delivers and the benefits realized across the organization.

    ACE Operating Model: Governance & Metrics

    Governance & Metrics involves enabling success through the management of the ACEs resources and services, and ensuring that organizational structures evolve in concert with Agile growth and maturity. Your focus should be on governing, measuring, implementing, and empowering improvements.

    Effective governance will function to ensure the long-term effectiveness and viability of your ACE. Changes and improvements will happen continuously and you need a way to decide which to adopt as best practices.

    "Organizations have lengthy policies and procedures (e.g. code deployment, systems design, how requirements are gathered in a traditional setting) that need to be addressed when starting to implement an Agile Center of Excellence. Legacy ideas that end up having legacy policy are the ones that are going to create bottlenecks, waste resources, and disrupt your progress." – Doug Birgfeld, Senior Partner, Agile Wave

    Governance & Metrics

    • Manage organizational Agile standards, policies, and procedures.
    • Define organizational boundaries based on regulatory, compliance, and cultural requirements.
    • Ensure ongoing alignment of service offerings with business objectives.
    • Adapt organizational change management policies to reflect Agile practices.
    • CoE governance functions include:
      • Policy Management
      • Change Management
      • Risk Management
      • Stakeholder Management
      • Metrics/Feedback Monitoring

    ACE Operating Model: Services

    Services refers to the ability to deliver resourcing, guidance, and assistance across all Agile teams. By creating a set of shared services, you enable broad access to specialized resources, knowledge, and insights that will effectively scale to more teams and departments as Agile matures in your organization.

    A Services model:

    • Supports the organization by standardizing and centralizing service offerings, ensuring consistency of service delivery and accessibility across functional groups.
    • Provides a mechanism for efficient knowledge transfer and on-demand support.
    • Helps to drive productivity and project efficiencies through the organization by disseminating best practices.

    Services

    • Provide reference, support, and re-assurance to implement and adapt organizational best practices.
    • Interface relevant parties and facilitate knowledge transfer through shared learning and communities of practice.
    • Enable agreed-upon service levels through standardized support structures.
    • Shared services functions include:
      • Engagement Planning
      • Knowledge Management
      • Subject-Matter Expertise
      • Agile Team Evaluation

    ACE Operating Model: Technology

    Technology refers to a broad range of supporting tools to enable employees to complete their day-to-day tasks and effectively report on their outcomes. The key to technological support is to strike the right balance between flexibility and control based on your organization's internal and external constraints (policy, equipment, people, regulatory, etc.).

    "We sometimes forget the obvious truth that technology provides no value of its own; it is the application of technology to business opportunities that produces return on investment." – Robert McDowell, Author, In Search of Business Value

    Technology

    • Provide common software tools to enable alignment to organizational best practices.
    • Enable access to locally desired tools while considering organizational, technical, and scaling constraints.
    • Enable communication with a technical subject matter expert (SME).
    • Enable reporting consistency through training and maintenance of reporting mechanisms.
    • Technology functions can include:
      • Vendor Management
      • Application Support
      • Tooling Standards
      • Tooling Use Cases

    ACE Operating Model: Staff

    Staff is all about empowerment. The ACE should support and facilitate the sharing of ideas and knowledge sharing. Create processes and spaces where people are encouraged to come together, learn from, and share with each other. This setting will bring up new ideas to enhance productivity and efficiency in day-to-day activities while maintaining alignment with business objectives.

    "An Agile CoE is legitimized by its ability to create a space where people can come together, share, and learn from one another. By empowering teams to grow by themselves and then re-connect with each other you allow the creativity of your employees to flow back into the CoE." – Anonymous, Founder, Agile consultancy group

    Staff

    • Develop and provide training and day-to-day coaching that are aligned with organizational engagement and growth plans.
    • Include workflow change management to assist traditional roles with accommodating Agile practices.
    • Support the facilitation of knowledge transfer from localized Agile teams into other areas of the organization.
    • Achieve team buy-in and engagement with ACE services and capabilities. Provide a forum for collaboration and innovation.
    • People functions can include:
      • Onboarding
      • Coaching
      • Learning Facilitation

    Form use cases to align your ACE with business objectives

    What is a use case?

    A use case tells a story about how a system will be used to achieve a goal from the perspective of a user of that system. The people or other systems that interact with the use case are called “actors.” Use cases describe what a system must be able to do, not how it will do it.

    How does a use case play a role in building your ACE?

    Use cases are used to guide design by allowing you to highlight the intended function of a service provided by the Center of Excellence while maintaining a business focus. Jumping too quickly to a solution without fully understanding user and business needs leads to the loss of stakeholder buy-in and the Centers of Excellence rejection by teams.

    Hypothesized ACE user needs →Use Case←Business objective

    Activity: Form use cases for the points of alignment between your ACE and business objectives

    1.1.3 2 Hours

    Input

    • Prioritized business objectives
    • ACE functions

    Output

    • ACE use cases

    Materials

    • Whiteboard
    • Markers

    Participants

    • Agile leadership group
    1. Using your prioritized business objectives and the six functions of a CoE, create high-level use cases for each point of alignment that describe how the Center of Excellence will better facilitate the realization of that business objective.
    2. For each use case, define the following:
      • Name: Generalized title for the use case.
      • Description: A high-level description of the expected CoE action.
    AGILE CENTER OF EXCELLENCE FUNCTIONS:
    Guiding Learning Tooling Supporting Governing Monitoring
    BUSINESS OBJECTIVES Reduce time-to-market of product releases
    Reduce product delivery costs
    Effectively integrate teams from a merger

    Activity: Form use cases for the points of alignment between your ACE and business objectives (continued)

    1.1.3 2 Hours

    The image shows the Reduce time-to-market of product releases row from the table in the previous section, filled in with sample information.

    Your goal should be to keep these as high level and generally applicable as possible as they provide an initial framework to further develop your service offerings. Begin to talk about the ways in which the ACE can support the realization of your business objectives and what those interactions may look like to customers of the ACE.

    Involve all relevant stakeholders to discuss the organizational goals and objectives of your ACE

    Avoid the rifts in stakeholder representation by ensuring you involve the relevant parties. Without representation and buy-in from all interested parties, your ACE may omit and fail to meet long-term organizational goals.

    By ensuring every group receives representation, your service offerings will speak for the broad organization and in turn meet the needs of the organization as a whole.

    • Business Units: Any functional groups that will be expected to engage with the ACE in order to achieve their business objectives.
    • Team Leads: Representation from the internal Agile community who is aware of the backgrounds, capabilities, and environments of their respective Agile teams.
    • Executive Sponsors: Those expected to evangelize and set the tone and direction for the ACE within the executive ranks of the organization. These roles are critical in gaining buy-in and maintaining momentum for ACE initiatives.

    Organization

    • ACE
      • Executive Sponsors
      • Team Leads
      • Business Units

    Activity: Prioritize your ACE stakeholders

    1.1.4 1 Hour

    Input

    • Prioritized business objectives

    Output

    • Prioritized list of stakeholders

    Materials

    • Whiteboard
    • Markers

    Participants

    • Agile leadership group
    1. Using your prioritized business objectives, brainstorm, as a group, the potential list of stakeholders (representatives from business units, team leads, and executive sponsors) that would need to be involved in setting the tone and direction of your ACE.
    2. Evaluate each stakeholder in terms of power, involvement, impact, and support.
    • Power: How much influence does the stakeholder have? Enough to drive the CoE forward or into the ground?
    • Involvement: How interested is the stakeholder? How involved is the stakeholder in the project already?
    • Impact: To what degree will the stakeholder be impacted? Will this significantly change how they do their job?
    • Support: Is the stakeholder a supporter of the project? Neutral? A resister?
  • Map each stakeholder to an area on the power map on the next slide based on his or her level of power and involvement.
  • Vary the size of the circle to distinguish stakeholders that are highly impacted by the ACE from those who are not. Color each circle to show each stakeholder’s estimated or gauged level of support for the project.
  • Prioritize your ACE stakeholders (continued)

    1.1.4 1 Hour

    The image shows a matrix on the left, and a legend on the right. The matrix is labelled with Involvement at the bottom, and Power on the left side, and has the upper left quadrant labelled Keep Satisfied, the upper right quadrant labelled Key players, the lower right quadrant labelled Keep informed, and the lower left quadrant labelled Minimal effort.

    Should your ACE be Centralized or Decentralized?

    An ACE can be organized differently depending on your organization’s specific needs and culture.

    The SAFe Model:©

    “For smaller enterprises, a single centralized [ACE] can balance speed with economies of scale. However, in larger enterprises—typically those with more than 500 – 1,000 practitioners—it’s useful to consider employing either a decentralized model or a hub-and-spoke model.”

    The image shows 3 models: centralized, represented by a single large circle; decentralized, represented by 5 smaller circles; and hub-and-spoke, represented by a central circle, connected to 5 surrounding circles.

    © Scaled Agile, Inc.

    The Spotify Model:

    Spotify avoids using an ACE and instead spreads agile practices using Squads, Tribes, Chapters, Guilds, etc.

    It can be a challenging model to adopt because it is constantly changing, and must be fundamentally supported by your organization’s culture. (Linders, Ben. “Don't Copy the Spotify Model.” InfoQ.com. 6 Oct. 2016.)

    Detailed analysis of The Spotify Model is out of scope for this Blueprint.

    The image shows the Spotify model, with two sections, each labelled Tribe, and members from within each Tribe gathered together in a section labelled Guild.

    Activity: Select a Centralized or Decentralized ACE Model

    1.1.5 30 minutes

    Input

    • Prioritized business objectives
    • Use Cases
    • Organization qualities

    Output

    • Centralized or decentralized ACE model

    Materials

    • Whiteboard
    • Markers

    Participants

    • Agile leadership group
    1. Using your prioritized business objectives, your ACE use cases, your organization size, structure, and culture, brainstorm the relative pros and cons of a centralized vs decentralized ACE model.
    2. Consider this: to improve understanding and acceptance, ask participants who prefer a centralized model to brainstorm the pros and cons of a decentralized model, and vice-versa.
    3. Collectively decide whether your ACE should be centralized, decentralized or hub-and-spoke and document it.
    Centralized ACE Decentralized ACE
    Pros Cons Pros Cons
    Centralize Vs De-centralize Considerations Prioritized Business Objectives
    • Neutral (objectives don’t favor either model)
    • Neutral (objectives don’t favor either model)
    ACE Use Cases
    • Neutral (use cases don’t favor either model)
    • Neutral (use cases don’t favor either model)
    Organization Size
    • Org. is small enough for centralized ACE
    • Overkill for a small org. like ours
    Organization Structure
    • All development done in one location
    • Not all locations do development
    Organization Culture
    • All development done in one location
    • Decentralized ACE may have yield more buy-in

    SELECTED MODEL: Centralized ACE

    Activity: Staff your ACE strategically

    1.1.6 1 Hour

    Input

    • List of potential ACE staff

    Output

    • Rated list of ACE staff

    Materials

    • Whiteboard
    • Markers

    Participants

    • Agile leadership group
    1. Identify your list of potential ACE staff (this may be a combination of full time and contract staff).
    2. Add/modify/delete the rating criteria to meet your specific needs.
    3. Discuss and adjust the relative weightings of the rating criteria to best suit your organization’s needs.
    4. Rate each potential staff member and compare results to determine the best suited staff for your ACE.
    Candidate: Jane Doe
    Rating Criteria Criteria Weighting Candidate's Score (1-5)
    Candidate has strong theoretical knowledge of Agile. 8% 4
    Candidate has strong hands on experience with Agile. 18% 5
    Candidate has strong hands on experience with Agile. 10% 4
    Candidate is highly respected by the Agile teams. 18% 5
    Candidate is seen as a thought leader in the organization. 18% 5
    Candidate is seen as a change agent in the organization. 18% 5
    Candidate has strong desire to be member of ACE staff. 10% 3
    Total Weighted Score 4.6

    Phase 1, Step 2: Define the service offerings of your ACE

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities:

    1.2.1 Form the Center of Excellence.

    1.2.2 Gather and document your existing Agile practices for the CoE.

    1.2.3 Interview stakeholders to align ACE requirements with functional expectations.

    1.2.4 Form a solution matrix to organize your pain points and opportunities.

    1.2.5 Refine your use cases to identify your ACE functions and services.

    1.2.6 Visualize your ACE functions and service offerings with a capability map.

    Outcomes:

    • Collect data regarding the functional expectations of the Agile teams.
    • Refine your business-aligned use cases with your collected data to achieve both business and functional alignment.
    • Create a capability map that visualizes and prioritizes your key service offerings.

    Structure your ACE with representation from all of your key stakeholders

    Now that you have a prioritized list of stakeholders, use their influence to position the ACE to ensure maximum representation with minimal bottlenecks.

    By operating within a group of your key players, you can legitimize your Center of Excellence by propagating the needs and interests of those who interface and evangelize the CoE within the larger organization.

    The group of key stakeholders will extend the business alignment you achieved earlier by refining your service offerings to meet the needs of the ACEs customers. Multiple representations at the table will generate a wide arrangement of valuable insights and perspectives.

    Info-Tech Insight

    While holistic representation is necessary, ensure that the list is not too comprehensive and will not lead to progress roadblocks. The goal is to ensure that all factors relevant to the organization are represented; too many conflicting opinions may create an obstruction moving forward.

    ACE

    • Executive Sponsors
    • Team Leads
    • Business Units

    Determine how you will fund your ACE

    Choose the ACE funding model which is most aligned to your current system based on the scenarios provided below. Both models will offer the necessary support to ensure the success of your Agile program going forward.

    Funding Model Funding Scenario I Funding Scenario II
    Funded by the CIO Funded by the CIO office and a stated item within the general IT budget. Charged back to supported functional groups with all costs allocated to each functional group’s budget.
    Funded by the PMO Charged back to supported functional groups with all costs allocated to each functional group’s budget. Charged back to supported functional groups with all costs allocated to each functional group’s budget.

    Info-Tech Insight

    Your funding model may add additional key influencers into the mix. After you choose your funding model, ensure that you review your stakeholder map and add anyone who will have a direct impact in the viability and stability of your ACE.

    Determine how you will govern your ACE

    An Agile Center of Excellence is unique in the way you must govern the actions of its customers. Enable “flexible governance” to ensure that Agile teams have the ability to locally optimize and innovate while still operating within expected boundaries.

    ACE Governing Body

    ↑ Agile Team → ACE ← Agile Team ↑

    Who should take on the governance role?

    The governing body can be the existing executive or standing committees, or a newly formed committee involving your key ACE influencers and stakeholders.

    Flexible governance means that your ACE set boundaries based on your cultural, regulatory, and compliance requirements, and your governance group monitors your Agile teams’ adherence to these boundaries.

    Governing Body Responsibilities

    • Review and approve ACE strategy annually and ensure that it is aligned with current business strategy.
    • Provide detailed quality information for board members.
    • Ensure that the ACE is adequately resourced and that the organization has the capacity to deliver the service offerings.
    • Assure that the ACE is delivering benefits and achieving targets.
    • Assure that the record keeping and reporting systems are capable of providing the information needed to properly assess the quality of service.

    Modify your resourcing strategy based on organizational need

    Your Agile Center of Excellence can be organized either in a dedicated or a virtual configuration, depending on your company’s organizational structure and complexity.

    There is no right answer to how your Center of Excellence should be resourced. Consider your existing organizational structure and culture, the quality of relationships between functional groups, and the typical budgetary factors that would weigh on choosing between a virtual and dedicated CoE structure.

    COE Advantages Disadvantages
    Virtual
    • No change in organization structure required, just additional task delegation to your Agile manager or program manager.
    • Less effort and cost to implement.
    • Investment in quality is proportional to return.
    • Resources are shared between practice areas, and initiatives will take longer to implement.
    • Development and enhancement of best practices can become difficult without a centralized knowledge repository.
    Dedicated
    • Demonstrates a commitment to the ACEs long-term existence.
    • Allows for dedicated maintenance of best practices.
    • Clear lines of accountability for Agile processes.
    • Ability to develop highly skilled employees as their responsibilities are not shared.
    • Requires dedicated resources that can in turn be more costly.
    • Requires strong relationships with the functional groups that interface with the ACE.

    Staffing the ACE: Understand virtual versus dedicated ACE organizational models

    Virtual CoE

    The image shows an organizational chart titled Virtual CoE, with Head of IT at the top, then PMO and CoE Lead/Apps Director at the next level. The chart shows that there is crossover between the CoE Lead's reports, and the PMO's, indicated through dotted lines that connect them.

    • Responsibilities for CoE are split and distributed throughout departments on a part-time basis.
    • CoE members from the PMO report to apps director who also functions as the CoE lead on a part-time basis.

    The image shows a organizational chart titled Dedicated CoE, with all CoE members under the CoE.

    • Requires re-organization and dedicated full-time staff to run the CoE with clear lines of responsibility and accountability.
    • Hiring or developing highly skilled employees who have a sole function to facilitate and monitor quality best practices within the IT department may be necessary.

    Activity: Form the Center of Excellence

    1.2.1 1 Hour

    Input

    • N/A

    Output

    • ACE governance and resourcing plan

    Materials

    • Whiteboard

    Participants

    • Agile leadership group
    1. As a group, discuss if there is an existing body that would be able to govern the Center of Excellence. This body will monitor progress on an ongoing basis and assess any change requests that would impact the CoEs operation or goals.
    • List current governing bodies that are closely aligned with your current Agile environment and determine if the group could take on additional responsibilities.
    • Alternatively, identify individuals who could form a new ACE governing body.
  • Using the results of Exercise 1.1.6 in Step 1, select the individuals who will participate in the Center of Excellence. As a rough rule of thumb for sizing, an ACE staffed with 3-5 people can support 8-12 Agile Teams.
  • Document results in the ACE Communications Deck.

    Leverage your existing Agile practices and SMEs when establishing the ACE

    The synergy between Agile and CoE relies on its ability to build on existing best practices. Agile cannot grow without a solid foundation. ACE gives you the way to disseminate these practices and facilitate knowledge transfer from a centralized sharing environment. As part of defining your service offerings, engage with stakeholders across the organization to evaluate what is already documented so that it can be accommodated in the ACE.

    Documentation

    • Are there any existing templates that can be leveraged (e.g. resource planning, sprint planning)?
    • Are there any existing process documents that can be leveraged (e.g. SIPOC, program frameworks)?
    • Are there any existing standards documents the CoE can incorporate (e.g. policies, procedures, guidelines)?

    SMEs

    • Interview existing subject-matter experts that can give you an idea of your current pains and opportunities.
    • You already have feedback from those in your workshop group, so think about the rest of the organization:
      • Agile practitioners
      • Business stakeholders
      • Operations
      • Any other parties not represented in the workshop group

    Metrics

    • What are the current metrics being used to measure the success of Agile teams?
    • What metrics are currently being used to measure the completion of business objectives?
    • What tools or mediums are currently used for recording and communicating metrics?

    Info-Tech Insight

    When considering existing practices, it is important to evaluate the level of adherence to these practices. If they have been efficiently utilized, injecting them into ACE becomes an obvious decision. If they have been underutilized, however, it is important to understand why this occurred and discuss how you can drive higher adherence.

    Examples of existing documents to leverage

    People

    • Agile onboarding planning documents
    • Agile training documents
    • Organizational Agile manifesto
    • Team performance metrics dashboard
    • Stakeholder engagement and communication plan
    • Development team engagement plan
    • Organizational design and structure
    • Roles and responsibilities chart (i.e. RACI)
    • Compensation plan Resourcing plan

    Process

    • Tailored Scrum process
    • Requirements gathering process
    • Quality stage-gate checklist (including definitions of ready and done)
    • Business requirements document
    • Use case document
    • Business process diagrams
    • Entity relationship diagrams
    • Data flow diagrams
    • Solution or system architecture
    • Application documentation for deployment
    • Organizational and user change management plan
    • Disaster recovery and rollback process
    • Test case templates

    Technology

    • Code review policies and procedures
    • Systems design policies
    • Build, test, deploy, and rollback scripts
    • Coding guidelines
    • Data governance and management policies
    • Data definition and glossary
    • Request for proposals (RFPs)
    • Development tool standards and licensing agreements
    • Permission to development, testing, staging, and production environments
    • Application, system, and data integration policies

    Build upon the lessons learned from your Agile pilots

    The success of your Center of Excellence relies on the ability to build sound best practices within your organization’s context. Use your previous lessons learned and growing pains as shared knowledge of past Agile implementations within the ACE.

    Implement Agile Practices That Work

    Draw on the experiences of your initial pilot where you learned how to adapt the Agile manifesto and practices to your specific context. These lessons will help onboard new teams to Agile since they will likely experience some of the same challenges.

    Download

    Documents for review include:

    • Tailored Scrum Process
    • Agile Pilot Metrics
    • Info-Tech’s Agile Pilot Playbook

    Enable Organization-Wide Collaboration by Scaling Agile

    Draw on previous scaling Agile experiences to help understand how to interface, facilitate, and orchestrate cross-functional teams and stakeholders for large and complex projects. These lessons will help your ACE teams develop collaboration and problem-solving techniques involving roles with different priorities and lines of thinking.

    Download

    Documents for review include:

    • Agile Program Framework
    • Agile Pilot Program Metrics
    • Scaled Agile Development Process
    • Info-Tech’s Scaling Agile Playbook

    Activity: Gather and document your existing Agile practices for the CoE

    1.2.2 Variable time commitment based on current documentation state

    Input

    • Existing practices

    Output

    • Practices categorized within operating model

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE team
    1. Compile a list of existing practices that will be shared by the Center of Excellence. Consider any documents, templates, or tools that are used regularly by Agile teams.
    2. Evaluate the level of adherence to use of the practices (whether the practice is complied with regularly or not) with a high, medium, or low. Low compliance will need a root-cause analysis to understand why and how to remedy the situation.
    3. Determine the best fit for each practice under the ACE operational model.
    Name Type Adherence Level CoE Best Fit Source
    1 Tailored Scrum process Process High Shared Services Internal Wiki
    2
    3

    Activity: Interview stakeholders to understand the ACE functional expectations

    1.2.3 30-60 Minutes per interview

    Interview Stakeholders (from both Agile teams and functional areas) on their needs from the ACE. Ensure you capture both pain points and opportunities. Capture these as either Common Agile needs or Functional needs. Document using the tables below:

    Common Agile Needs
    Common Agile Needs
    • Each Agile Team interprets Agile differently
    • Need common approach to Agile with a proven track record within the organization
    • Making sure all Team members have a good understanding of Agile
    • Common set of tool(s) with a proven track record, along with a strong understanding of how to use the tool(s) efficiently and effectively
    • Help troubleshooting process related questions
    • Assistance with addressing the individual short comings of each Agile Team
    • Determining what sort of help each Agile Team needs most
    • Better understanding of the role played by Scrum Master and associated good practices
    • When and how do security/privacy/regulatory requirements get incorporated into Agile projects
    Functional Needs Ent Arch Needs
    • How do we ensure Ent Arch has insight and influence on Agile software design
    • Better understanding of Agile process
    • How to measure compliance with reference architectures

    PMO Needs

    • Better understanding of Agile process
    • Understanding role of PM in Agile
    • Project status reports that determine current level of project risk
    • How does project governance apply on Agile projects
    • What deliverables/artifacts are produced by Agile projects and when are they completed

    Operations Needs

    • Alignment on approaches for doing releases
    • Impact of Agile on change management and support desk processes
    • How and when will installation and operation instructions be available in Agile

    Activity: Form a solution matrix to organize your pain points and opportunities

    1.2.4 Half day

    Input

    • Identified requirements

    Output

    • Classified pains and opportunities

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE team
    1. Review the listed pain points from the data gathering process. Sort the pain points on sticky notes into technology, governance, people, and shared services.
    2. Consider opportunities under each defining element based on the identified business requirements.
    3. Document your findings.
    4. Discuss the results with the project team and prioritize the opportunities.
      • Where do the most pains occur?
      • What opportunities exist to alleviate pains?
    Governance Shared Services Technology People
    Pain Points
    Opportunities

    Document results in the ACE Communications Deck.

    Activity: Refine your use cases to identify your ACE functions and services

    1.2.5 1 Hour

    Input

    • Use cases from activity 1.1.2

    Output

    • Refined use cases based on data collection

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE team
    1. Refine your initial use cases for the points of alignment between your ACE and business objectives using your classified pain points and opportunities.
    2. Add use cases to address newly realized pain points.
    3. Determine the functions and services the CoE can offer to address the identified requirements.
    4. Evaluate the outputs in the form of realized benefits and extracted inefficiencies.

    Possible ACE use cases:

    • Policy Management
    • Change Management
    • Risk Management
    • Stakeholder Management
    • Engagement Planning
    • Knowledge Management
    • Subject-Matter Expertise
    • Agile Team Evaluation
    • Operations Support
    • Onboarding
    • Coaching
    • Learning Facilitation
    • Communications Training
    • Vendor Management
    • Application Support
    • Tooling Standards

    Document results in the ACE Communications Deck.

    Activity: Visualize your ACE functions and service offerings with a capability map

    1.2.6 1 Hour

    Input

    • Use cases from activity 1.2.4

    Output

    • ACE capability map

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE team
    1. Review the refined and categorized list of service offerings.
    2. Determine how these new capabilities will add, remove, or enhance your existing service and capabilities.
    3. Categorize the capabilities into the following groups:
    • Governance and Metrics
    • Services
    • Staff
    • Technology
  • Label the estimated impact of the service offering based on your business priorities for the year. This will guide your strategy for implementing your Agile Center of Excellence moving forward.
  • Document results in the ACE Communications Deck.

    Activity: Visualize your ACE functions and service offerings with a capability map (continued)

    Governance

    Policy Management (Medium Potential)

    Change Management (High Potential)

    Risk Management (High Potential)

    Stakeholder Management (High Potential)

    Metrics/Feedback Monitoring (High Potential)

    Shared Services

    Engagement Planning (High Potential)

    Knowledge Management (High Potential)

    Subject-Matter Expertise (High Potential)

    Agile Team Evaluation (High Potential)

    Operations Support (High Potential)

    People

    Onboarding (Medium Potential)

    Coaching (High Potential)

    Learning Facilitation (High Potential)

    Internal Certification Program (Low Potential)

    Communications Training (Medium Potential)

    Technology

    Vendor Management (Medium Potential)

    Application Support (Low Potential)

    Tooling Standards (High Potential)

    Checkpoint: Are you ready to standardize your CoEs service offerings?

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Self-Auditing Guidelines

    • Have you identified and prioritized the key business objectives for the upcoming year that the ACE will align with?
    • Do you have a high-level set of use cases for points of alignment between your ACE and business objectives?
    • Have you mapped your stakeholders and identified the key players that will have an influence over the future success of your ACE?
    • Have you identified how your organization will fund, resource, and govern the ACE?
    • Have you collected data to understand the functional expectations of the users the ACE is intended to serve?
    • Have you refined your use cases to align with both business objectives and functional expectations?

    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:

    1.1.2 Identify and prioritize organizational business objectives

    Our analyst team will help you organize and prioritize your business objectives for the year in order to ensure that the service offerings the ACE offers are delivering consistent business value.

    1.1.3 Form use cases for the points of alignment between your ACE and business objectives

    Our analyst team will help you turn your prioritized business objectives into a set of high-level use cases that will provide the foundation for defining user-aligned services.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    1.1.4 Prioritize your ACE stakeholders

    Our analysts will walk you through an exercise of mapping and prioritizing your Centers of Excellence stakeholders based on impact and power within so you can ensure appropriate presentation of interests within the organization.

    1.2.4 Form a solution matrix to organize your pain points and opportunities

    Our analyst team will help you solidify the direction of your Center of Excellence by overlaying your identified needs, pain points, and potential opportunities in a matrix guided by Info-Tech’s CoE operating model.

    1.2.5 Refine your use cases to identify your ACE functions and services

    Our analyst team will help you further refine your business-aligned use cases with the functional expectations from your Agile teams and stakeholders, ensuring the ACEs long-term utility.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    1.2.6 Visualize your ACE functions and service offerings with a capability map

    Our analysts will walk you through creating your Agile Centers of Excellence capability map and help you to prioritize which service offerings are critical to the success of your Agile teams in meeting their objectives.

    Phase 2

    Standardize the Centers of Excellence Service Offerings

    Spread Best Practices With an Agile Center of Excellence

    The ACE needs to ensure consistency in service delivery

    Now that you have aligned the CoE to the business and functional expectations, you need to ensure its service offerings are consistently accessible. To effectively ensure accessibility and delegation of shared services in an efficient way, the CoE needs to have a consistent framework to deliver its services.

    Phase 1 - Strategically Align the CoE

    Create strategic alignment between the CoE and the organization’s goals, objectives, and vision. This alignment translates into the CoE mandate intended to enhance the way Agile will enable teams to meet business objectives.

    Phase 2 - Standardize the CoEs Service Offerings

    Build an engagement plan based on a standardized adoption model to ensure your CoE service offerings are accessible and consistent across the organization. Create and consolidate key performance indicators to measure the CoEs utility and whether or not the expected value is being translated to tangible results.

    Phase 3 - Operate the CoE

    Operate the CoE to provide service offerings to Agile teams, identify improvements to optimize the function of your Agile teams, and effectively manage and communicate change so that teams can grow within the Agile adoption model and optimize value delivery both within your Agile environment and across functions.

    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: Standardize the CoEs Service Offerings

    Proposed Time to Completion (in weeks): 2

    Step 2.1: Define an adoption plan for your Agile teams

    Start with an analyst kick off call:

    • Dissect the key attributes of Agile adoption.

    Then complete these activities…

    2.1.1 Further categorize your use cases within the Agile adoption model.

    Step 2.2: Create an ACE engagement plan

    Start with an analyst kick off call:

    • Form engagement plans for your Agile teams.

    Then complete these activities…

    2.2.1 Create an engagement plan for each level of adoption.

    Step 2.3: Define metrics to measure success

    Finalize phase deliverable:

    • Discuss effective ACE metrics.

    Then complete these activities…

    2.3.1 Collect existing team-level metrics.

    2.3.2 Define metrics that align with your Agile business objectives.

    2.3.3 Define target ACE performance metrics.

    2.3.4 Define Agile adoption metrics.

    2.3.5 Consolidate metrics for stakeholder impact.

    2.3.6 Use Info-Tech’s ACE Benefits Tracking Tool to monitor, evaluate, refine, and ensure continued business value.

    Phase 2 Results & Insights:

    • Standardizing your service offerings allows you to have direct influence on the dissemination of best practices.

    Phase 2, Step 1: Define an adoption plan for your Agile teams

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities:

    2.1.1 Further categorize your use cases within the Agile adoption model.

    Outcomes:

    • Refine your previously determined use cases within the Agile adoption model to ensure that teams can be assisted at any level of Agile adoption.
    • Understand the key attributes of Agile adoption and how they impact success.

    Understand the implementation challenges that the ACE may face

    Culture clash between ACE and larger organization

    It is important to carefully consider the compatibility between the current organizational culture and Agile moving forward. Agile compels empowered teams, meritocracy, and broad collaboration for success; while typical organizational structures are siloed and hierarchical and decisions are delegated from the top down.

    This is not to say that the culture of the ACE has to match the larger organizational culture; part of the overarching aim of the ACE is to evolve the current organizational culture for the better. The point is to ensure you enable a smooth transition with sufficient management support and a team of Agile champions.

    The changing role of middle management

    Very similar to the culture clash challenge, cultural rigidity in how middle managers operate (performance review, human resource management, etc.) can cause cultural rejection. They need to become enablers for high performance and give their teams the sufficient tools, skills, and opportunities to succeed and excel.

    What impedes Agile adoption?

    Based on a global survey of Agile practitioners (N=1,319)*:

    52% Organizational culture at odds with agile values

    44% Inadequate management support and sponsorship

    48% General organization resistance to change

    *Respondents were able to make multiple selections

    (13th Annual State of Agile Report, VersionOne, 2019)

    Build competency and trust through a structured Agile adoption plan

    The reality of cultural incompatibility between Agile and traditional organization structures necessitates a structured adoption plan. Systematically build competency so teams can consistently achieve project success and solidify trust in your teams’ ability to meet business needs with Agile.

    By incrementally gaining the trust of management as you build up your Agile capabilities, you enable a smooth cultural transition to an environment where teams are empowered, adapt quickly to changing needs, and are trusted to innovate and make successes out of their failures.

    Optimized value delivery occurs when there is a direct relationship between competency and trust. There will be unrealized value when competency or trust outweigh the other. That value loss increases as either dimension of adoption continues to grow faster than the other.

    The image shows a graph with Competency on the x-axis and Trust on the y-axis. There are 3 sections: Level 1, Level 2, and Level 3, in subsequently larger arches in the background of the graph. The graph shows two diagonal arrows, the bottom one labelled Current Value Delivery and the top one labelled Optimized Value Delivery. The space between the two arrows is labelled Value Loss.

    Use Info-Tech’s Practice Adoption Optimization Model to systematically increase your teams’ ability to deliver

    Using Info-Tech’s Practice adoption optimization model will ensure you incrementally build competency and trust to optimize your value delivery.

    Agile adoption at its core, is about building social capital. Your level of trust with key influencers increases as you continuously enhance your capabilities, enabling the necessary cultural changes away from traditional organizational structures.

    Trust & Competency ↓

    DEFINE

    Begin to document your development workflow or value chain, implement a tracking system for KPIs, and start gathering metrics and reporting them transparently to the appropriate stakeholders.

    ITERATE

    Use collected metrics and retrospectives to stabilize team performance by reducing areas of variability in your workflow and increasing the consistency at which targets are met.

    COLLABORATE

    Use information to support changes and adopt appropriate practices to make incremental improvements to the existing environment.

    EMPOWER

    Drive behavioral and cultural changes that will empower teams to be accountable for their own success and learning.

    INNOVATE

    Use your built-up trust and support practice innovation, driving the definition and adoption of new practices.

    Review these key attributes of Agile adoption

    Agile adoption is unique to every organization. Consider these key attributes within your own organizational context when thinking about levels of Agile adoption.

    Adoption Attributes

    Team Organization

    Considers the degree to which teams are able to self-organize based on internal organizational structures (hierarchy vs. meritocracy) and inter-team capabilities.

    Team Coordination

    Considers the degree to which teams can coordinate, both within and across functions.

    Business Alignment

    Considers the degree to which teams can understand and/or map to business objectives.

    Coaching

    Considers what kind of coaching/training is offered and how accessible the training is.

    Empowerment

    Considers the degree to which teams are able and capable to address project, process, and technical challenges without significant burden from process controls and bureaucracy.

    Failure Tolerance

    Considers the degree to which stakeholders are risk tolerant and if teams are capable of turning failures into learning outcomes.

    Why are these important?

    These key attributes function as qualities or characteristics that, when improved, will successively increase the degree to which the business trusts your Agile teams’ ability to meet their objectives.

    Systematically improving these attributes as you graduate levels of the adoption model allows the business to acclimatize to the increased capability the Agile team is offering, and the risk of culture clash with the larger organization decreases.

    Start to consider at what level of adoption each of your service offerings become useful. This will allow you to standardize the way your Agile teams interact with the CoE.

    Activity: Further categorize your use cases within the Agile adoption model

    2.1.1 1.5 Hours

    Input

    • List of service offerings

    Output

    • Service offerings categorized within adoption model

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Team
    1. Gather the list of your categorized use cases.
    2. Based on Info-Tech’s Agile adoption model, categorize which use cases would be useful to help the Agile team graduate to the next level of adoption.
      • Conceptualize: Begin to document your workflow or value chain, implement a tracking system for KPIs, and gather metrics and report them transparently to the appropriate stakeholders.
      • Iterate: Use collected metrics to stabilize team performance by reducing areas of variability in your workflow and increasing the consistency at which targets are met.
      • Collaborate: Use information to drive changes and adopt appropriate Agile practices to make incremental improvements to the existing environment.
      • Empower: Drive behavioral and cultural changes that will empower teams to be accountable for their own successes given the appropriate resources.
      • Innovate: Use your built-up trust to begin to make calculated risks and innovate more, driving new best practices into the CoE.

    The same service offering could be offered at different levels of adoption. In these cases, you will need to re-visit the use case and differentiate how the service (if at all) will be delivered at different levels of adoption.

    1. Use this opportunity to brainstorm alternative or new use cases for any gaps identified. It is the CoEs goal to assist teams at every level of adoption to meet their business objectives. Use a different colored sticky note for these so you can re-visit and map out their inputs, outputs, metrics, etc.

    Activity: Further categorize your use cases within the Agile adoption model (continued)

    2.1.1 1.5 Hours

    Input

    • List of service offerings

    Output

    • Service offerings categorized within adoption model

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Team

    Example:

    Service Offerings
    Level 5: Innovate
    Level 4: Empower
    Level 3: Collaborate Coaching -- Communications Training
    Level 2: Iterate Tooling Standards
    Level 1: Conceptualize

    Learning Facilitation

    Draw on the service offerings identified in activity 1.2.4

    Phase 2, Step 2: Create an ACE engagement plan

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities:

    2.2.1 Create an engagement plan for each level of adoption.

    Outcomes:

    • Understand the importance of aligning with the functional expectations of your ACE customers.
    • Understand the relationship between engagement and continuous improvement.
    • Create an engagement plan for each level of adoption to standardize the way customers interact with the ACE.

    Enable Agile teams to interface with ACE service offerings to meet their business objectives

    A Center of Excellence aligned with your service offerings is only valuable if your CoEs customers can effectively access those services. At this stage, you have invested in ensuring that your CoE aligns to your business objectives and that your service offerings align to its customers. Now you need to ensure that these services are accessible in the day-to-day operation of your Agile teams.

    Engagement Process → Service Offering

    Use backwards induction from your delivery method to the service offering. This is an effective method to determine the optimal engagement action for the CoE, as it considers the end customer as the driver for best action for every possible situation.

    Info-Tech Insight

    Your engagement process should be largely informed by your ACE users. Teams have constraints as well as in-the-trenches concerns and issues. If your service offerings don’t account for these, it can lead to rejection of the culture you are trying to inspire.

    Show the way, do not dictate

    Do not fix problems for your Agile teams, give them the tools and knowledge to fix the problems themselves.

    Facilitate learning to drive success

    A primary function of your ACE is to transfer knowledge to Agile teams to increase their capability to achieve desired outcomes.

    While this can take the form of coaching, training sessions, libraries, and wikis, a critical component of ACE is creating interactions where individuals from Agile teams can come together and share their knowledge.

    Ideas come from different experiences. By creating communities of practice (CoP) around topics that the ACE is tasked with supporting (e.g. Agile business analysts), you foster social learning and decrease the likelihood that change will result in some sort of cultural rejection.

    Consider whether creating CoPs would be beneficial in your organization’s context.

    "Communities of practice are a practical way to frame the task of managing knowledge. They provide a concrete organizational infrastructure for realizing the dream of a learning organization." – Etienne Wenger, Digital Habitats: Stewarding technology for communities

    A lack of top-down support will result in your ACE being underutilized

    Top-down support is critical to validate the CoE to its customers and ensure they feel compelled to engage with its services. Relevancy is a real concern for the long-term viability of a CoE and championing its use from a position of authority will legitimize its function and deter its fading from relevancy of day-to-day use for Agile teams.

    Although you are aligning your engagement processes to the customers of your Agile Center of Excellence, you still need your key influencers to champion its lasting organizational relevancy. Don’t let your employees think the ACE is just a coordinating body or a committee that is convenient but non-essential – make sure they know that it drives their own personal growth and makes everyone better as a collective.

    "Even if a CoE is positioned to meet a real organizational need, without some measure of top-down support, it faces an uphill battle to remain relevant and avoid becoming simply one more committee in the eyes of the wider organization. Support from the highest levels of the organization help fight the tendency of the larger organization to view the CoE as a committee with no teeth and tip the scales toward relevancy for the CoE." – Joe Shepley, VP and Practice Lead, Doculabs

    Info-Tech Insight

    Stimulate top-down support with internal certifications. This allows your employees to gain accreditation while at the same time encouraging top-down support and creating a compliance check for the continual delivery and acknowledgement of your evolving best practices.

    Ensure that best practices and lessons learned are injected back into the ACE

    For your employees to continuously improve, so must the Center of Excellence. Ensure the ACE has the appropriate mechanisms to absorb and disseminate best practices that emerge from knowledge transfer facilitation events.

    Facilitated Learning Session →Was the localized adaption well received by others in similar roles? →Document Localized Adaptation →Is there broad applicability and benefit to the proposed innovation? →CoE Absorbs as Best Practice

    Continuous improvement starts with the CoE

    While facilitating knowledge transfer is key, it is even more important that the Center of Excellence can take localized adaptations from Agile teams and standardize them as best practices when well received. If an individual were to leave without sharing their knowledge, the CoE and the larger organization will lose that knowledge and potential innovation opportunities.

    Experience matters

    To organically grow your ACE and be cost effective, you want your teams to continuously improve and to share that knowledge. As individual team members develop and climb the adoption model, they should participate as coaches and champions for less experienced groups so that their knowledge is reaching the widest audience possible.

    Case study: Agile learning at Spotify

    CASE STUDY

    Industry Digital Media

    Source Henrik Kniberg & Anders Ivarsson, 2012

    Methods of Agile learning at Spotify

    Spotify has continuously introduced innovative techniques to facilitate learning and ensure that that knowledge gets injected back into the organization. Some examples are the following:

    • Hack days: Self-organizing teams, referred to as squads, come together, try new ideas, and share them with their co-workers. This facilitates a way to stay up to date with new tools and techniques and land new product innovations.
    • Coaching: Every squad has access to an Agile coach to help inject best practices into their workflow – coaches run retrospectives, sprint planning meetings, facilitate one-on-one coaching, etc.
    • Tribes: Collections of squads that hold regular gatherings to show the rest of the tribe what they’ve been working on so others can learn from what they are doing.
    • Chapters: People with similar skills within a tribe come together to discuss their area of expertise and their specific challenges.
    • Guilds: A wide-reaching community of interest where members from different tribes can come together to share knowledge, tools, and codes, and practice (e.g. a tester guild, an Agile coaching guild).

    The image shows the Spotify model, with two sections, each labelled Tribe, and members from within each Tribe gathered together in a section labelled Guild.

    "As an example of guild work, we recently had a ‘Web Guild Unconference,’ an open space event where all web developers at Spotify gathered up in Stockholm to discuss challenges and solutions within their field."

    Activity: Create an engagement plan for each level of adoption

    2.2.1 30 Minutes per role

    Input

    • Categorized use cases

    Output

    • Role-based engagement plans

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Team
    1. On the top bar, define the role you are developing the engagement plan for. This will give you the ability to standardize service delivery across all individuals in similar roles.
    2. Import your categorized service offerings for each level of adoption that you think are applicable to the given role.
    3. Using backwards induction, determine the engagement processes that will ensure that those service offerings are accessible and fit the day-to-day operations of the role.
    4. Fill in the template available on the next slide with each role’s engagement plan.

    Document results in the ACE Communications Deck.

    Example engagement plan: Developer

    2.2.1 30 Minutes per role

    Role: Developer
    Level 1 Level 2 Level 3 Level 4 Level 5
    Service Offering
    1. Onboarding
    2. Coaching
    3. Learning Facilitation
    1. Tooling Standards
    2. Learning Facilitation
    1. Communications Training
    2. Learning Facilitation
    1. Subject-Matter Expertise
    2. Coaching
    1. Knowledge Management
    Engagement Process
    1. Based on service request or need identified by dev. manager.
    2. Based on service request or need identified by dev. manager.
    3. Weekly mandatory community of practice meetings.
    1. When determined to have graduated to level 2, receive standard Agile tooling standards training.
    2. Weekly mandatory community of practice meetings.
    1. When determined to have graduated to level 3, receive standard Agile communications training.
    2. Weekly mandatory community of practice meetings
    1. Peer-based training on how to effectively self-organize.
    2. Based on service request or need identified by dev. manager.
    1. Review captured key learnings from last and have CoE review KPIs related to any area changed.

    Example engagement plan: Tester

    2.2.1 30 Minutes per role

    Role: Tester
    Level 1Level 2Level 3Level 4Level 5
    Service Offering
    1. Onboarding
    2. Coaching
    1. Product Training
    2. Communications Training
    1. Communications Training
    2. Learning Facilitation
    1. Subject-Matter Expertise
    2. Coaching
    1. Tooling Standards
    2. Training
    3. Coaching
    Engagement Process
    1. Based on service request or need identified by dev. manager.
    1. Weekly mandatory community of practice meetings.
    2. Provide training on effective methods for communicating with development teams based on organizational best practices.
    1. When determined to have graduated to level 3, receive standard training based on organizational testing best practices. Weekly mandatory community of practice meetings.
    1. Peer-to-peer training with level 5 certified coach.
    2. Based on service request or need identified by dev. manager. .
    1. Periodic updates of organizational tooling standards based on community of practice results.
    2. Automation training.
    3. Provide coaching to level 1 developers on a rotating basis to develop facilitation skills.

    Example engagement plan: Product Owner

    2.2.1 30 Minutes per role

    Role: Product Owner
    Level 1 Level 2 Level 3 Level 4 Level 5
    Service Offering
    1. Onboarding
    2. Coaching
    1. Coaching
    2. Learning Facilitation
    1. Coaching
    2. Communications Training
    3. Learning Facilitation
    1. Coaching
    2. Learning Facilitation
    1. Coaching
    2. Learning Facilitation
    Engagement Process
    1. Provide onboarding materials for Agile product owners.
    2. Provide bi-weekly reviews and subsequent guidance at the end of retrospective processes.
    1. Provide monthly reviews and subsequent guidance based on retrospective results.
    2. Bi-weekly mandatory community of practice meetings
    1. When determined to have graduated to level 3, receive standard training based on organizational testing best practices.
    2. Bi-weekly mandatory community of practice meetings.
    1. Provide monthly reviews and subsequent guidance based on retrospective results.
    2. Bi-weekly mandatory community of practice meetings
    1. Provide quarterly reviews and subsequent guidance based on retrospective results.
    2. Bi-weekly mandatory community of practice meetings

    Phase 2, Step 3: Define metrics to measure success

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities:

    2.3.1 Define existing team-level metrics.

    2.3.2 Define metrics that align with your Agile business objectives.

    2.3.3 Define target ACE performance metrics.

    2.3.4 Define Agile adoption metrics.

    2.3.5 Consolidate your metrics for stakeholder impact.

    2.3.6 Use Info-Tech’s ACE Benefits Tracking Tool to monitor, evaluate, refine, and ensure continued business value.

    Outcomes:

    • Understand the importance of aligning with the functional expectations of your ACE customers.
    • Understand the relationship between engagement and continuous improvement.
    • Create an engagement plan for each level of adoption to standardize the way customers interact with the ACE.

    Craft metrics that will measure the success of your Agile teams

    Quantify measures that demonstrate the effectiveness of your ACE by establishing distinct metrics for each of your service offerings. This will ensure that you have full transparency over the outputs of your CoE and that your service offerings maintain relevance and are utilized.

    Questions to Ask

    1. What are leading indicators of improvements that directly affect the mandate of the CoE?
    2. How do you measure process efficiency and effectiveness?

    Creating meaningful metrics

    Specific

    Measureable

    Achievable

    Realistic

    Time-bound

    Follow the SMART framework when developing metrics for each service offering.

    Adhering to this methodology is a key component of the lean management methodology. This framework will help you avoid establishing general metrics that aren’t relevant.

    "It’s not about telling people what they are doing wrong. It’s about constantly steering everyone on the team in the direction of success, and never letting any individual compromise the progress of the team toward success." – Mary Poppendieck, qtd. in “Questioning Servant Leadership”

    For important advice on how to avoid the many risks associated with metrics, refer to Info-Tech’s Select and Use SDLC Metrics Effectively.

    Ensure your metrics are addressing criteria from different levels of stakeholders and enterprise context

    There will be a degree of overlap between the metrics from your business objectives, service offerings, and existing Agile teams. This is a positive thing. If a metric can speak to multiple benefits it is that much more powerful in commuting successes to your key stakeholders.

    Existing metrics

    Business objective metrics

    Service offering metrics

    Agile adoption metrics

    Finding points of overlap means that you have multiple stakeholders with a vested interest in the positive trend of a specific metric. These consolidated metrics will be fundamental for your CoE as they will help build consensus through communicating the success of the ACE in a common language for a diverse audience.

    Activity: Define existing team-level metrics

    2.3.1 1 Hour

    Input

    • Current metrics

    Output

    • Service offerings categorized within adoption model

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Team
    1. Gather any metrics related documentation that you collected during your requirements gathering in Phase 1.
    2. Collect team-level metrics for your existing Agile teams:
      • Examine outputs from any feedback mechanisms you have (satisfaction surveys, emails, existing SLAs, burndown charts, resourcing costs, licensing costs per sprint, etc.).
      • Look at historical trends and figures when available. Be careful of frequent anomalies as these may indicate a root cause that needs to be addressed.
      • Explore the definition of specific metrics across different functional teams to ensure consistency of measurement and reporting.
    Team Objective Expected Benefits Metrics
    Improve productivity
    • Improve transparency with business decisions
    • Team burndown and velocity
    • Number of releases per milestone
    Increase team morale and motivation
    • Teams are engaged and motivated to develop new opportunities to deliver more value quicker.
    • Team satisfaction with Agile environment
    • Degree of engagement in ceremonies
    Improve transparency with business decisions
    • Teams are engaged and motivated to develop new opportunities to deliver more value quicker.
    • Stakeholder satisfaction with completed product
    • Number of revisions to products in demonstrations

    Activity: Define metrics that align with your Agile business objectives

    2.3.2 1 Hour

    Input

    • Organizational business objectives from Phase 1

    Output

    • Metrics aligned to organizational business objectives

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE
    1. List the business objectives that you determined in 1.1.2.
    2. Create a shortlist of expected benefits from those business objectives. These will help to drive metrics that align with the intended purpose of completing those business objectives, and affirm they are aligned to realizable benefits.
    3. Define metrics that speak to the benefits of your business objectives. While engaging in this process, ensure to document the collection method for each metrics.
    Business Objectives Expected Benefits Metrics
    Decrease time-to-market of product releases
    • Faster feedback from customers.
    • Increased customer satisfaction.
    • Competitive advantage.
    Decrease time-to-market of product releases
    • Alignment to organizational best practices.
    • Improved team productivity.
    • Greater collaboration across functional teams.
    • Policy and practice adherence and acknowledgement
    • Number of requests for ACE services
    • Number of suggestions to improve Agile best practices and ACE operations

    Activity: Define target ACE performance metrics

    2.3.3 1 Hour

    Input

    • Service offerings
    • Satisfaction surveys
    • Usage rates

    Output

    • CoE performance metrics

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE
    1. Define metrics to measure the success of each of your service offerings.
    2. Create a shortlist of expected benefits from those business objectives. These will help to drive metrics that align with the intended purpose of those service offerings, and affirm they are aligned to realizable benefits.
    3. Define metrics that speak to the benefits of your service offerings.
    4. Compare these to your team performance metrics.
    Service Offering Expected Benefits Metrics
    Knowledge management
    • Comprehensive knowledgebase that accommodates various company products and office locations.
    • Easily accessible resources.
    • Number of practices extracted from ACE and utilized
    • Frequency of updates to knowledgebase
    Tooling standards
    • Tools adhere to company policies, security guidelines, and regulations.
    • Improved support of tools and technologies.
    • Tools integrate and function well with enterprise systems.
    • Number of teams and functional groups using standardized tools
    • Number of supported standardized tools
    • Number of new tools added to the standards list
    • Number of tools removed from standards list

    Activity: Define Agile adoption metrics

    2.3.4 1 Hour

    Input

    • Agile adoption model

    Output

    • Agile adoption metrics
    1. Define metrics to measure the success of each of your service offerings.
    2. Create a shortlist of expected benefits from those business objectives. These will help to drive metrics that align with the intended purpose of those service offerings, and affirm they are aligned to realizable benefits.
    3. Define metrics that speak to the benefits of your service offerings.
    4. It is possible that you will need to adjust these metrics after baselines are established when you begin to operate the ACE. Keep this in mind moving forward.
    Adoption attributes Expected Benefits Metrics
    Team organization
    • Acquisition of the appropriate roles and skills to successfully deliver products.
    • Degree of flexibility to adjust team compositions on a per project basis
    Team coordination
    • Ability to successfully undertake large and complex projects involving multiple functional groups.
    • Number of ceremonies involving teams across functional groups
    Business alignment
    • Increased delivery of business value from process optimizations.
    • Number of business-objective metrics surpassing targets
    Coaching
    • Teams are regularly trained with new and better best practices.
    • Number of coaching and training requests
    Empowerment
    • Teams can easily and quickly modify processes to improve productivity without following a formal, rigorous process.
    • Number of implemented changes from team retrospectives
    Failure tolerance
    • Stakeholders trust teams will adjust when failures occur during a project.
    • Degree of stakeholder trust to address project issues quickly and effectively

    Activity: Consolidate your metrics for stakeholder impact

    2.3.5 30 Minutes

    Input

    • New and existing Agile metrics

    Output

    • Consolidated Agile metrics

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • ACE
    1. Take all the metrics defined from the previous activities and compare them as a group.
    2. If there are overlapping metrics that are measuring similar outcomes or providing similar benefits, see if there is a way to merge them together so that a single metric can report outcomes to multiple stakeholders. This reduces the amount of resources invested in metrics gathering and helps to show consensus or alignment between multiple stakeholder interests.
    3. Compare these to your existing Agile metrics, and explore ways to consolidate existing metrics that are established with some of your new metrics. Established metrics are trusted and if they can be continued it can be viewed as beneficial from a consensus and consistency perspective to your stakeholders.

    Activity: Use Info-Tech’s ACE Benefits Tracking Tool to monitor, evaluate, refine, and ensure continued business value

    2.3.6 1 Hour

    Purpose

    The CoE governance team can use this tool to take ownership of the project’s benefits, track progress, and act on any necessary changes to address gaps. In the long term, it can be used to identify whether the team is ahead, on track, or lagging in terms of benefits realization.

    Steps

    1. Enter your identified metrics from the following activities into the ACE Benefits Tracking Tool.
    2. Input your baselines from your data collection (Phase 3) and a goal value for each metric.
    3. Document the results at key intervals as defined by the tool.
    4. Use the summary report to identify metrics that are not tracking well for root cause analysis and communicate with key stakeholders the outcomes of your Agile Center of Excellence based on your communication schedule from Phase 3, Step 3.

    INFO-TECH DELIVERABLE

    Download the ACE Benefits Tracking Tool.

    Checkpoint: Are you ready to operate your ACE?

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Self Auditing Guidelines

    • Have you categorized your ACE service offerings within Info-Tech’s Agile adoption model?
    • Have you formalized engagement plans to standardize the access to your service offerings?
    • Do you understand the function of learning events and their criticality to the function of the ACE?
    • Do you understand the key attributes of Agile adoption and how social capital leads to optimized value delivery?
    • Have you defined metrics for different goals (adoption, effective service offerings, business objectives) of the ACE?
    • Do your defined metrics align to the SMART framework?

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.1 Further categorize your use cases within the Agile adoption model

    Our analyst team will help you categorize the Centers of Excellence service offerings within Info-Tech’s Agile adoption model to help standardize the way your organization engages with the Center of Excellence.

    2.2.1 Create an engagement plan for each level of adoption

    Our analyst team will help you structure engagement plans for each role within your Agile environment to provide a standardized pathway to personal development and consistency in practice.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.3.2 Define metrics that align with your Agile business objectives

    Our analysts will walk you through defining a set of metrics that align with your Agile business objectives identified in Phase 1 of the blueprint so the CoEs monitoring function can ensure ongoing alignment during operation.

    2.3.3 Define target ACE performance metrics

    Our analysts will walk you through defining a set of metrics that monitors how successful the ACE has been at providing its services so that business and IT stakeholders can ensure the effectiveness of the ACE.

    2.3.4 Define Agile adoption metrics

    Our analyst team will help you through defining a set of metrics that aligns with your organization’s fit of the Agile adoption model in order to provide a mechanism to track the progress of Agile teams maturing in capability and organizational trust.

    Phase 3

    Operationalize Your Agile Center of Excellence

    Spread Best Practices With an Agile Center of Excellence

    Operate your ACE to drive optimized value from your Agile teams

    The final step is to engage in monitoring of your metrics program to identify areas for improvement. Using metrics as a driver for operating your ACE will allow you to identify and effectively manage needed change, as well as provide you with the data necessary to promote outcomes to your stakeholders to ensure the long-term viability of the ACE within your organization.

    Phase 1 - Strategically Align the CoE

    Create strategic alignment between the CoE and the organization’s goals, objectives, and vision. This alignment translates into the CoE mandate intended to enhance the way Agile will enable teams to meet business objectives.

    Phase 2 - Standardize the CoEs Service Offerings

    Build an engagement plan based on a standardized adoption model to ensure your CoE service offerings are accessible and consistent across the organization. Create and consolidate key performance indicators to measure the CoEs utility and whether or not the expected value is being translated to tangible results.

    Phase 3 - Operate the CoE

    Operate the CoE to provide service offerings to Agile teams, identify improvements to optimize the function of your Agile teams, and effectively manage and communicate change so that teams can grow within the Agile adoption model and optimize value delivery both within your Agile environment and across functions.

    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: Operate the CoE

    Proposed Time to Completion (in weeks): Variable depending on communication plan

    Step 3.1: Optimize the success of your ACE

    Start with an analyst kick off call:

    • Conduct a baseline assessment of your Agile environment.

    Then complete these activities…

    3.1.1 Use Info-Tech’s ACE Satisfaction Survey to help establish your baseline.

    3.1.2 Use Info-Tech’s CoE Maturity Diagnostic Tool to measure the maturity level of your ACE.

    3.1.3 Prioritize ACE actions by monitoring your metrics.

    Step 3.2: Plan change to enhance your Agile initiatives

    Start with an analyst kick off call:

    • Interface with the ACE with your change management function.

    Then complete these activities…

    3.2.1 Assess the interaction and communication points of your Agile teams.

    3.2.2 Determine the root cause of each metric falling short of expectations.

    3.2.3 Brainstorm solutions to identified issues.

    3.2.4 Review your metrics program.

    3.2.5 Create a communication plan for change.

    Step 3.3: Conduct ongoing retrospectives of your ACE

    Finalize phase deliverable:

    • Build a communications deck for key stakeholders.

    Then complete these activities…

    3.3.1 Use the outputs from your metrics tracking tool to communicate progress.

    3.3.2 Summarize adjustments in areas where the ACE fell short.

    3.3.3 Review the effectiveness of your service offerings.

    3.3.4 Evaluate your ACE Maturity.

    3.3.5 Use Info-Tech’s ACE Communications Deck to deliver your outcomes to the key stakeholders.

    Phase 3 Results & Insights:

    Inject improvements into your Agile environment with operational excellence. Plan changes and communicate them effectively, monitor outcomes on a regular basis, and keep stakeholders in the loop to ensure that their interests are being looked after to ensure long-term viability of the CoE.

    Phase 3, Step 1: Optimize the success of your ACE

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Tools:

    3.1.1 Use Info-Tech’s ACE Satisfaction Survey to help establish your baseline.

    3.1.2 Use Info-Tech’s CoE Maturity Diagnostic Tool to measure the maturity level of your ACE.

    3.1.3 Prioritize ACE actions by monitoring your metrics.

    Outcomes:

    • Conduct a baseline assessment of your ACE to measure against using a variety of data sources, including interviews, satisfaction surveys, and historical data.
    • Use the Benefits Tracking Tool to start monitoring the outcomes of the ACE and to keep track of trends.

    Ensure the CoE is able to collect the necessary data to measure success

    Establish your collection process to ensure that the CoE has the necessary resources to collect metrics and monitor progress, that there is alignment on what data sources are to be used when collecting data, and that you know which stakeholder is interested in the outcomes of that metric.

    Responsibility

    • Does the CoE have enough manpower to collect the metrics and monitor them?
    • If automated through technology, is it clear who is responsible for its function?

    Source of metric

    • Is the method of data collection standardized so that multiple people could collect the data in the same way?

    Impacted stakeholder

    • Do you know which stakeholder is interested in this metric?
    • How often should the interested stakeholder be informed of progress?

    Intended function

    • What is the expected benefit of increasing this metric?
    • What does the metric intend to communicate to the stakeholder?

    Conduct a baseline assessment of your ACE to measure success

    Establishing the baseline performance of the ACE allows you to have a reasonable understanding of the impact it is having on meeting business objectives. Use user satisfaction surveys, stakeholder interviews, and any current metrics to establish a concept of how you are performing now. Setting new metrics can be a difficult task so it is important to collect as much current data as possible. After the metrics have been established and monitored for a period of time, you can revisit the targets you have set to ensure they are realistic and usable.

    Without a baseline, you cannot effectively:

    • Establish reasonable target metrics that reflect the performance of your Center of Excellence.
    • Identify, diagnose, and resolve any data that deviates from expected outcomes.
    • Measure ongoing business satisfaction given the level of service.

    Info-Tech Insight

    Invest the needed time to baseline your activities. These data points are critical to diagnose successes and failures of the CoE moving forward, and you will need them to be able to refine your service offerings as business conditions or user expectations change. While it may seem like something you can breeze past, the investment is critical.

    Use a variety of sources to get the best picture of your current state; a combination of methods provides the richest insight

    Interviews

    What to do:

    • Conduct interviews (or focus groups) with key influencers and Agile team members.

    Benefits:

    • Data comes from key business decision makers.
    • Identify what is top of mind for your top-level stakeholders.
    • Ask follow-up questions for detail.

    Challenges:

    • This will only provide a very high-level view.
    • Interviewer biases may skew the results.

    Surveys

    What to do:

    • Distribute an Agile-specific stakeholder satisfaction survey. The survey should be specific to identify factors of your current environment.

    Benefits:

    • Every end user/business stakeholder will be able to provide feedback.
    • The survey will be simple to develop and distribute.

    Challenges:

    • Response rates can be low if stakeholders do not understand the value in their opinions.

    Historical Data

    What to do:

    • Collect and analyze existing Agile data such as past retrospectives, Agile team metrics, etc.

    Benefits:

    • Get a full overview of current service offerings, past issues, and current service delivery.
    • Allows you to get an objective view of what is really going on within your Agile teams.

    Challenges:

    • Requires a significant time investment and analytical skills to analyze the data and generate insights on business satisfaction and needs.

    Use Info-Tech’s ACE Satisfaction Survey to help establish your baseline

    3.1.1 Baseline satisfaction survey

    Purpose

    Conduct a user satisfaction survey prior to setting your baseline for your ACE. This will include high-level questions addressing your overall Agile environment and questions addressing teams’ current satisfaction with their processes and technology.

    Steps

    1. Modify the satisfaction survey template to suit your organization and the service offerings you have defined for the Agile Center of Excellence.
    2. Distribute the satisfaction survey to any users who are expected to interface with the ACE.
    3. Document the results and communicate them with the relevant key stakeholders.
    4. Combine these results with historical data points (if available) and stakeholder interviews to get a holistic picture of your current state.

    INFO-TECH DELIVERABLE

    Download the ACE Satisfaction Survey.

    Use Info-Tech’s CoE Maturity Diagnostic Tool to measure the maturity level of your ACE

    3.1.2 CoE maturity assessment

    Purpose

    Assessing your ACEs maturity lets you know where they currently are and what to track to get them to the next step. This will help ensure your ACE is following good practices and has the appropriate mechanisms in place to serve your stakeholders.

    Steps

    1. Download the CoE Maturity Diagnostic Tool to assess the maturity of your ACE.
    2. Complete the assessment tool with all members of your ACE team to determine your maturity score.
    3. Document the results and communicate them with the relevant key stakeholders.
    4. Combine these results with historical data points (if available) and stakeholder interviews to get a holistic picture of your ACE maturity level.

    Document results in the ACE Communications Deck.

    INFO-TECH DELIVERABLE

    Download the CoE Maturity Diagnostic Tool.

    Activity: Prioritize ACE actions by monitoring your metrics

    3.1.3 Variable time commitment

    Input

    • Metrics from ACE Benefits Tracking Tool

    Output

    • Prioritized actions for the ACE

    Materials

    • ACE Benefits Tracking Tool

    Participants

    • ACE team
    1. Review your ACE Benefits Tracking Tool periodically (at the end of sprint cycles, quarterly, etc.) and document metrics that are trending or actively falling short of goals or expectations.
    2. Take the documented list and have the ACE staff consider what actions or decisions can be prioritized to help mend the identified gaps. Look for any trends that could potentially speak to a larger problem or a specific aspect of the ACE or the organizational Agile environment that is not functioning as expected.
    3. Take the opportunity to review metrics that are also tracking above expected value to see if there are any lessons learned that can be extended to other ACE service offerings (e.g. effective engagement or communication strategies) so that the organization can start to learn what is effective and what is not based on their internal struggles and challenges. Spreading successes is just as important as identifying challenges in a CoE model.

    Phase 3, Step 2: Plan change to enhance your Agile initiatives

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities:

    3.2.1 Assess the interaction and communication points of your Agile teams.

    3.2.2 Determine the root cause of each metric falling short of expectations.

    3.2.3 Brainstorm solutions to identified issues

    3.2.4 Review your metrics program.

    3.2.5 Create a communication plan for change.

    Outcomes:

    • Understand how your existing change management process interfaces with the Center of Excellence.
    • Identify issues and ideate solutions to metrics falling short of expectations.
    • Create a communication plan to prepare groups for any necessary change.

    Manage the adaptation of teams as they adopt Agile capabilities

    As Agile spreads, be cognizant of your cultural tolerance to change and its ability to deliver on such change. Change will happen more frequently and continuously, and there may be conceptual (change tolerance) or capability (delivery tolerance) roadblocks along the way that will need to be addressed.

    The Agile adoption model will help to graduate both the tolerance to change and tolerance to deliver over time. As your level of competency to deliver change increases, organizational tolerance to change, especially amongst management, will increase as well. Remember that optimized value delivery comes from this careful balance of aptitude and trust.

    Tolerance to change

    Tolerance to change refers to the conceptual capacity of your people to consume and adopt change. Change tolerance may become a barrier to success because teams might be too engrained with current structures and processes and find any changes too disruptive and uncomfortable.

    Tolerance to deliver

    Tolerance to deliver refers to the capability to deliver on expected change. While teams may be tolerant, they may not have the necessary capacity, skills, or resources to deliver the necessary changes successfully. The ACE can help solve this problem with training and coaching, or possibly by obtaining outside help where necessary.

    Understand how the ACE interfaces with your current change management process

    As the ACE absorbs best practices and identifies areas for improvement, a change management process should be established to address the implementation and sustainability of change without introducing significant disruptions and costs.

    To manage a continuously changing environment, your ACE will need to align and coordinate with organizational change management processes. This process should be capable of evaluating and incorporating multiple change initiatives continuously.

    Desired changes will need to be validated, and localized adaptations will need to be disseminated to the larger organization, and current state policy and procedures will need to be amended as the adoption of Agile spreads and capabilities increase.

    The goal here is to have the ACE governance group identify and interface with parties relevant to successfully implementing any specific change.

    INFO-TECH RELATED RESEARCH:

    Strategy and Leadership: Optimize Change Management

    Optimize your stakeholder management process to identify, prioritize, and effectively manage key stakeholders.

    Where should your Agile change requests come from?

    Changes to the services, structure, or engagement model of your ACE can be triggered from various sources in your organization. You will see that proposed changes may be requested with the best intentions; however, the potential impacts they may have to other areas of the organization can be significant. Consult all sources of ACE change requests to obtain a consensus that your change requests will not deteriorate the ACEs performance and use.

    ACE Governance

    • Sources of ACE Change Requests
      • ACE Policies/Stakeholders
        • Triggers for Change:
          • Changes in business and functional group objectives.
          • Dependencies and legacy policies and procedures.
      • ACE Customers
        • Triggers for Change:
          • Retrospectives and post-mortems.
          • Poor fit of best practices to projects.
      • Metrics
        • Triggers for Change:
          • Performance falling short of expectations.
          • Lack of alignment with changing objectives.
      • Tools and Technologies
        • Triggers for Change:
          • New or enhanced tools and technologies.
          • Changes in development and technology standards.

    Note: Each source of ACE change requests may require a different change management process to evaluate and implement the change.

    Activity: Assess the interaction and communication points of your Agile teams

    3.2.1 1.5 Hours

    Input

    • Understanding of team and organization structure

    Output

    • Current assessment of organizational design

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Development team
    1. Identify everyone who is directly or indirectly involved in projects completed by Agile teams. This can include those that are:
    • Informed of a project’s progress.
    • Expected to interface with the Agile team for solution delivery (e.g. DevOps).
    • Impacted by the success of the delivered solutions.
    • Responsible for the removal of impediments faced by the Agile team.
  • Indicate how each role interacts with the others and how frequently these interactions occur for a typical project. Do this by drawing a diagram on a whiteboard using labelled arrows to indicate types and frequency of interactions.
  • Identify the possible communication, collaboration, and alignment challenges the team will face when working with other groups.
  • Agile Team n
    Group Type of Interaction Potential challenges
    Operations
    • Release management
    • Past challenges transitioning to DevOps.
    • Communication barrier as an impediment.
    PMO
    • Planning
    • Product owner not located with team in organization.
    • PMO still primarily waterfall; need Agile training/coaching

    Activity: Determine the root cause of each metric falling short of expectations

    3.2.2 30 Minutes per metric

    Input

    • Metrics from Benefits Tracking Tool

    Output

    • Root causes to issues

    Materials

    • Whiteboard
    • Markers

    Participants

    • ACE team
    1. Take each metric from the ACE Benefits Tracking Tool that is lagging behind or has missed expectations and conduct an analysis of why it is performing that way.
    2. Conduct individual webbing sessions to clarify the issues. The goal is to drive out the reasons why these issues are present or why scaling Agile may introduce additional challenges.
    3. Share and discuss these findings with the entire team.

    Example:

    • Lack of best-practice documentation
      • Why?
        • Knowledge siloed within teams
        • No centralized repository for best practices
          • Why?
            • No mechanisms to share between teams
              • Why? Root causes
                • Teams are not sharing localized adaptations
                • CoE is not effectively monitoring team communications
            • Access issues at team level to wiki
              • Why? Root causes
                • Administration issues with best-practice wiki
                • Lack of ACE visibility into wiki access

    Activity: Brainstorm solutions to identified issues

    3.2.3 30 Minutes per metric

    Input

    • Root causes of issues

    Output

    • Fixes and solutions to scaling Agile issues

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Development team
    1. Using the results from your root-cause analysis, brainstorm potential solutions to the identified problems. Frame your brainstorming within the following perspectives: people, process, and technology. Map these solutions using the matrix below.
    2. Synthesize your ideas to create a consolidated list of initiatives.
      1. Highlight the solutions that can address multiple issues.
      2. Collaborate on how solutions can be consolidated into a single initiative.
    3. Write your synthesized solutions on sticky notes.
    SOLUTION CATEGORY
    People Process Technology
    ISSUES Poor face-to-face communication
    Lack of best-practice documentation

    Engage those teams affected by change early to ensure they are prepared

    Strategically managing change is an essential component to ensure that the ACE achieves its desired function. If the change that comes with adopting Agile best practices is going to impact other functions and change their expected workflows, ensure they are well prepared and the benefits for said changes are clearly communicated to them.

    Necessary change may be identified proactively (dependency assessments, system integrity, SME indicates need, etc.) or reactively (through retrospectives, discussions, completing root-cause analyses, etc.), but both types need to be handled the same way – through proper planning and communication with the affected parties.

    Plan any necessary change

    Understand the points where other groups will be affected by the adoption of Agile practices and recognize the potential challenges they may face. Plan changes to accommodate interactions between these groups without roadblocks or impediments.

    Communicate the change

    Structure a communication plan based on your identified challenges and proposed changes so that groups are well prepared to make the necessary adjustments to accommodate Agile workflows.

    Review and modify your metrics and baselines to ensure they are achievable in changing environments

    Consider the possible limitations that will exist from environmental complexities when measuring your Agile teams. Dependencies and legacy policies and procedures that pose a bottleneck to desired outcomes will need to be changed before teams can be measured justifiably. Take the time to ensure the metrics you crafted earlier are plausible in your current environment and there is not a need for transitional metrics.

    Are your metrics achievable?

    Specific

    Measureable

    Achievable

    • Adopting Agile is a journey, not just a destination. Ensure that the metrics a team is measured against reflect expectations for the team’s current level of Agile adoption and consider external dependencies that may limit their ability to achieve intended results.

    Realistic

    Time-bound

    Info-Tech Insight

    Use metrics as diagnostics, not as motivation. Teams will find ways to meet metrics they are measured by making sacrifices and taking unneeded risk to do so. To avoid dysfunction in your monitoring, use metrics as analytical tools to inform decision making, not as a yardstick for judgement.

    Activity: Review your metrics program

    3.2.4 Variable time commitment

    Input

    • Identified gaps
    • Agile team interaction points

    Output

    • ACE baselines
    • Past measurements

    Materials

    • ACE Benefits Tracking Tool

    Participants

    • ACE
    1. Now that you have identified gaps in your current state, see if those will have any impact on the achievability of your current metrics program.
    2. Review your root-cause analyses and brainstormed solutions, and hypothesize whether or not they will have any downstream impact to goal attainment. It is possible that there is no impact, but as cross-functional collaboration increases, the likelihood that groups will act as bottlenecks or impediments to expected performance will increase.
    3. Consider how any changes will impact the interaction points between teams based on the results from activity 3.2.1: Assess the interaction and communication points of your Agile teams. If there are too many negative impacts it may be a sign to re-consider the hypothesized solution to the problem and consider alternatives.
    4. In any cases where a metric has been altered, adjust its goal measurement to reflect its changes in the ACE Benefits Tracking Tool.

    Case study: Agile change at the GSA

    CASE STUDY

    Industry Government

    Source Navin Vembar, Agile Government Leadership

    Challenge

    The GSA is tasked with completed management of the Integrated Award Environment (IAE).

    • The IAE manages ten federal information technology systems that enable registering, searching, and applying for federal awards, as well as tracking them.
    • The IAE also manages the Federal Service Desk.

    The IAE staff had to find a way to break down the problem of modernization into manageable chunks that would demonstrate progress, but also had to be sure to capture a wide variety of user needs with the ability to respond to those needs throughout development.

    Had to work out the logistics of executing Agile change within the GSA, an agency that relies heavily on telework. In the case of modernization, they had a product owner in Florida while the development team was spread across the metro Washington, DC area.

    Solution

    Agile provided the ability to build incremental successes that allowed teams successful releases and built enthusiasm around the potential of adopting Agile practices offered.

    • GSA put in place an organization framework that allowed for planning of change at the portfolio level to enable the change necessary to allow for teams to execute tasks at the project level.
    • A four-year plan with incremental integration points allowed for larger changes on a quarterly basis while maintaining a bi-weekly sprint cycle.
    • They adopted IBM’s RTC tool for a Scrum board and on Adobe Connect for daily Scrum sessions to ensure transparency and effectiveness of outcomes across their collocated teams.

    Create a clear, concise communication plan

    Communication is key to avoid surprises and lost productivity created by the implementation of changes.

    User groups and the business need to be given sufficient notice of an impending change. Be concise, be comprehensive, and ensure that the message is reaching the right audience so that no one is blindsided and unable to deliver what is needed. This will allow them to make appropriate plans to accept the change, minimizing the impact of the change on productivity.

    Key Aspects of a Communication Plan

    • The method of communication (email, meetings, workshops, etc.).
    • The delivery strategy (who will deliver the message?).
    • The communication responsibility structure.
    • The communication frequency.
    • A feedback mechanism that allows you to review the effectiveness of your plan.
    • The message that you need to present.

    Communicating change

    • 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?

    (Cornelius & Associates, The Qualities of Leadership: Leading Change)

    Apply the following principles to enhance the clarity of your message

    1. Be Consistent
    • "This is important because..."
      • The core message must be consistent regardless of audience, channel, or medium.
      • Test your communication and obtain feedback before delivering your message.
      • A lack of consistency can be perceived as deception.
  • Be Clear
    • "This means..."
      • Say what you mean and mean what you say.
      • Choice of language is important.
      • Don’t use jargon.
  • Be Relevant
    • "This affects you because..."
      • Talk about what matters to the audience.
      • Talk about what matters to the change initiative.
      • Tailor the details of the message to each audience’s specific concerns.
      • Communicate truthfully; do not make false promises or hide bad news.
  • Be Concise
    • "In summary..."
      • Keep communication short and to the point so key messages are not lost in the noise.
  • Activity: Create a communication plan for change

    3.2.5 1.5 Hours

    Input

    • Desired messages
    • Stakeholder list

    Output

    • Communication plan

    Materials

    • Whiteboard
    • Markers

    Participants

    • CoE
    1. Define the audience(s) for your communications. Consider who needs to be the audience of your different communication events and how it will impact them.
    2. Identify who the messenger will be to deliver the message.
    3. Identify your communication methods. Decide on the methods you will use to deliver each communication event. Your delivery method may vary depending on the audience it is targeting.
    4. Establish a timeline for communication releases. Set dates for your communication events. This can be recurring (weekly, monthly, etc.) or one-time events.
    5. Determine what the content of the message must include. Use the guidelines on the following slide to ensure the message is concise and impactful.

    Note: It is important to establish a feedback mechanism to ensure that the communication has been effective in communicating the change to the intended audiences. This can be incorporated into your ACE satisfaction surveys.

    Audience Messenger Format Timing Message
    Operations Development team Email
    • Monthly (major release)
    • Ad hoc (minor release and fixes)
    Build ready for release
    Key stakeholders CIO Meeting
    • Monthly unless dictated otherwise
    Updates on outcomes from past two sprint cycles

    Phase 3, Step 3: Conduct ongoing retrospectives of your ACE

    Phase 1

    1.1 Determine the vision of your ACE

    1.2 Define the service offerings of your ACE

    Phase 2

    2.1 Define an adoption plan for your Agile teams

    2.2 Create an ACE engagement plan

    2.3 Define metrics to measure success

    Phase 3

    3.1 Optimize the success of your ACE

    3.2 Plan change to enhance your Agile initiatives

    3.3 Conduct ongoing retrospectives of your ACE

    Activities/Tools:

    3.3.1 Use the outputs from your metrics tracking tool to communicate progress.

    3.3.2 Summarize adjustments in areas where the ACE fell short.

    3.3.3 Re-conduct satisfaction surveys and compare against your baseline.

    3.3.4 Use Info-Tech’s CoE Maturity Diagnostic Tool to baseline current practices

    3.3.5 Use Info-Tech’s ACE Communications Deck to deliver your outcomes to the key stakeholders.

    Outcomes:

    • Conduct a retrospective of your ACE to enable the continuous improvement of your Agile program.
    • Structure a communications deck to communicate with stakeholders the outcomes from introducing the ACE to the organization.

    Reflect on your ACEs performance to lead the way to enterprise agility

    After functioning for a period of time, it is imperative to review the function of your ACE to ensure its continual alignment and see in what ways it can improve.

    At the end of the year, take the time to deliberately review and discuss:

    1. The effectiveness and use of your ACEs service offerings.
    2. What went well or wrong during the ACEs operation.
    3. What can be done differently to improve reach, usability, and effectiveness.
    4. Bring together Agile teams and discuss the processes they follow and inquire about suggestions for improvement.

    What is involved?

    • Use your metrics program to diagnose areas of issue and success. The diagnostic value of your metrics can help lead conversations with your Agile teams when attempting to inquire about suggestions for improvement.
    • Leverage your satisfaction surveys from the creation of your ACE and compare them against satisfaction surveys run after a year of operation. What are the lessons learned between then and now?
    • While it is primarily conducted by the ACE team, keep in mind it is a collaborative function and should involve all members, including Agile teams, product owners, Scrum masters, etc.

    Communicating with your key influencers is vital to ensure long-term operation of the ACE

    To ensure the long-term viability of your ACE and that your key influencers will continue funding, you need to demonstrate the ROI the Center of Excellence has provided.

    The overlying purpose of your ACE is to effectively align your Agile teams with corporate objectives. This means that there have to be communicable benefits that point to the effort and resources invested being valuable to the organization. Re-visit your prioritized stakeholder list and get ready to show them the impact the ACE has had on business outcomes.

    Communication with stakeholders is the primary method of building and developing a lasting relationship. Correct messaging can build bridges and tear down barriers, as well as soften opposition and bolster support.

    This section will help you to prepare an effective communication piece that summarizes the metrics stakeholders are interested in, as well as some success stories or benefits that are not communicable through metrics to provide extra context to ongoing successes of the ACE.

    INFO-TECH RELATED RESEARCH:

    Strategy and Leadership: Manage Stakeholder Relations

    Optimize your stakeholder management process to identify, prioritize, and effectively manage key stakeholders.

    Involve key stakeholders in your retrospectives to justify the funding for your ACE

    Those who fund the ACE have a large influence on the long-term success of your ACE. If you have not yet involved your stakeholders, you need to re-visit your organizational funding model for the ACE and ensure that your key stakeholders include the key decision makers for your funding. While they may have varying levels of interest and desires for granularity of data reporting, they need to at least be informed on a high level and kept as champions of the ACE so that there are no roadblocks to the long-term viability of this program.

    Keep this in mind as the ACE begins to demonstrate success, as it is not uncommon to have additional members added to your funding model as your service scales, especially in the chargeback models.

    As new key influencers are included, the ACEs governing group must ensure that collective interests may align and that more priorities don’t lead to derailment.

    The image shows a matrix. The matrix is labelled with Involvement at the bottom, and Power on the left side, and has the upper left quadrant labelled Keep Satisfied, the upper right quadrant labelled Key players, the lower right quadrant labelled Keep informed, and the lower left quadrant labelled Minimal effort. In the matric, there are several roles shown, with roles such as CFO, Apps Director, Funding Group, and CIO highlighted in the Key players section.

    Use the outputs from your metrics tracking tool to communicate progress

    3.3.1 1 Hour

    Use the ACE Benefits Tracking Tool to track the progress of your Agile environment to monitor whether or not the ACE is having a positive impact on the business’ ability to meet its objectives. The outputs will allow you to communicate incremental benefits that have been realized and point towards positive trends that will ensure the long-term buy-in of your key influencers.

    For communication purposes, use this tool to:

    • Re-visit who the impacted or interested stakeholders are so you can tailor your communications to be as impactful as possible for each key influencer of the ACE.

    The image shows a screen capture of the Agile CoE Metrics Tracking sheet.

    • Collate the benefits of the current projects undertaken by the Center of Excellence to give an overall recap of the ACEs impact.

    The image is a screen capture of the Summary Report sheet.

    Communicate where the ACE fell short

    Part of communicating the effectiveness of your ACE is to demonstrate that it is able to remedy projects and processes when they fall short of expectations and brainstorm solutions that effectively address these challenges. Take the opportunity to summarize where results were not as expected, and the ways in which the ACE used its influence or services to drive a positive outcome from a problem diagnosis. Stakeholders do not want a sugar-coated story – they want to see tangible results based on real scenarios.

    Summarizing failures will demonstrate to key influencers that:

    • You are not cherry-picking positive metrics to report and that the ACE faced challenges that it was able to overcome to drive positive business outcomes.
    • You are being transparent with the successes and challenges faced by the ACE, fostering increased trust within your stakeholders regarding the capabilities of Agile.
    • Resolution mechanisms are working as intended, successfully building failure tolerance and trust in change management policies and procedures.

    Activity: Summarize adjustments in areas where the ACE fell short

    3.3.2 15 Minutes per metric

    Input

    • Diagnosed problems from tracking tool
    • Root-cause analyses

    Output

    • Summary of change management successes

    Materials

    • Whiteboard
    • Markers

    Participants

    • ACE
    1. Create a list of items from the ACE Benefits Tracking Tool that fell short of expectations or set goals.
    2. For each point, create a brief synopsis of the root-cause analysis completed and summarize the brainstormed solution and its success in remedying the issue. If this process is not complete, create a to-date summary of any progress.
    3. Choose two to three pointed success stories from this list that will communicate broad success to your set of stakeholders.
    Name of metric that fell short
    Baseline measurement 65% of users satisfied with ACE services.
    Goal measurement 80% of users satisfied with ACE services.
    Actual measurement 70% of users satisfied with ACE services.
    Results of root-cause analysis Onboarding was not extensive enough; teams were unaware of some of the services offered, rendering them unsatisfied.
    Proposed solution Revamp onboarding process to include capability map of service offered.
    Summary of success TBD

    Re-conduct surveys with the ACE Satisfaction Survey to review the effectiveness of your service offerings

    3.3.3 Re-conduct satisfaction surveys and compare against your baseline

    Purpose

    This satisfaction survey will give you a template to follow to monitor the effectiveness of your ACEs defined service offerings. The goal is to understand what worked, and what did not, so you can add, retract, or modify service offerings where necessary.

    Steps

    1. Re-use the satisfaction survey to measure the effectiveness of the service offerings. Add questions regarding specific service offerings where necessary.
    2. Cross-analyze your satisfaction survey with metrics tied to your service offerings to help understand the root cause of the issues.
    3. Use the root-cause analysis exercises from step 3.2 to find the root causes of issues.
    4. Create a set of recommendations to add, amend, or improve any existing service offerings.

    INFO-TECH DELIVERABLE

    Download the ACE Satisfaction Survey.

    Use Info-Tech’s CoE Maturity Diagnostic Tool to baseline current practices

    3.3.4 ACE Maturity Assessment

    Purpose

    Assess your ACEs maturity by using Info-Tech’s CoE Maturity Diagnostic Tool. Assessing your ACEs maturity lets you know where you currently are, and where to look for improvements. Note that your optimal Maturity Level will depend on organizational specifics (e.g. a small organization with a handful of Agile Teams can be less mature than a large organization with hundreds of Agile Teams).

    Steps

    1. Download the CoE Maturity Diagnostic Tool to assess the maturity of your ACE.
    2. Complete the assessment tool with all members of your ACE team to determine your current Maturity score.
    3. Document the results in the ACE Communications Deck.

    Document results in the ACE Communications Deck.

    INFO-TECH DELIVERABLE

    Download the CoE Maturity Diagnostic Tool.

    Use Info-Tech’s ACE Communications Deck to deliver your outcomes to the key stakeholders

    3.3.5 Structure communications to each of your key stakeholders

    Purpose

    The ACE Communications Deck will give you a template to follow to effectively communicate with your stakeholders and ensure the long-term viability of your Agile Center of Excellence. Fill in the slides as instructed and provide each stakeholder with a targeted view of the successes of the ACE.

    Steps

    1. Determine who your target audience is for the Communications Deck – you may desire to create one for each of your key stakeholders as they may have different sets of interests.
    2. Fill out the ACE Communications Deck with the suggested inputs from the exercises you have completed during this research set.
    3. Review communications with members of the ACE to ensure that there are no communicable benefits that have been missed or omitted in the deck.

    INFO-TECH DELIVERABLE

    Download the ACE Communications Deck.

    Summary of accomplishment

    Knowledge Gained

    • An understanding of social capital as the key driver for organizational Agile success, and how it optimizes the value delivery of your Agile teams.
    • Importance of flexible governance to balance the benefits of localized adaptation and centralized control.
    • Alignment of service offerings with both business objectives and functional expectations as critical to ensuring long-term engagement with service offerings.

    Processes Optimized

    • Knowledge management and transfer of Agile best practices to new or existing Agile teams.
    • Optimization of service offerings for Agile teams based on organizational culture and objectives.
    • Change request optimization via interfacing ACE functions with existing change management processes.
    • Communication planning to ensure transparency during cross-functional collaboration.

    Deliverables Completed

    • A set of service offerings offered by the Center of Excellence that are aligned with the business, Agile teams, and related stakeholders.
    • Engagement plans for Agile team members based on a standardized adoption model to access the ACEs service offerings.
    • A suite of Agile metrics to measure effectiveness of Agile teams, the ACE itself, and its ability to deliver positive outcomes.
    • A communications plan to help create cross-functional transparency over pending changes as Agile spreads.
    • A communications deck to communicate Agile goals, actions, and outcomes to key stakeholders to ensure long-term viability of the CoE.

    Research contributors and experts

    Paul Blaney, Technology Delivery Executive, Thought Leader and passionate Agile Advocate

    Paul has been an Agile practitioner since the manifesto emerged some 20 years ago, applying and refining his views through real life experience at several organizations from startups to large enterprises. He has recently completed the successful build out of the inaugural Agile Delivery Centre of Excellence at TD bank in Toronto.

    John Munro, President Scrum Masters Inc.

    John Munro is the President of Scrum Masters Inc., a software optimization professional services firm using Agile, Scrum, and Lean to help North American firms “up skill” their software delivery people and processes. Scrum Masters’ unique, highly collaborative “Master Mind” consulting model leverages Agile/Lean experts on a biweekly basis to solve clients’ technical and process challenges.

    Doug Birgfeld, Senior Partner Agile Wave

    Doug has been a leader in building great teams, Agile project management, and business process innovation for over 20 years. As Senior Partner and Chief Evangelist at Agile Wave, his mission is to educate and to learn from all those who care about effective government delivery, nationally.

    Related Info-Tech research

    Implement Agile Practices That Work

    Agile is a cultural shift. Don't just do Agile, be Agile.

    Enable Organization-Wide Collaboration by Scaling Agile

    Execute a disciplined approach to rolling out Agile methods in the organization.

    Improve Application Development Throughput

    Drive down your delivery time by eliminating development inefficiencies and bottlenecks while maintaining high quality.

    Implement DevOps Practices That Work

    Accelerate software deployment through Dev and Ops collaboration.

    Related Info-Tech research (continued)

    Maximize the Benefits from Enterprise Applications with a Center of Excellence

    Optimize your organization’s enterprise application capabilities with a refined and scalable methodology.

    Drive Efficiency and Agility with a Fit-for-Purpose Quality Management Program

    Be proactive; it costs exponentially more to fix a problem the longer it goes unnoticed.

    Optimize the Change Management Process

    Right-size your change management process.

    Improve Requirements Gathering

    Back to basics: great products are built on great requirements.

    Bibliography

    Ambler, Scott. “Agile Requirements Change Management.” Agile Modeling. Scott Amber + Associates, 2014. Web. 12 Apr. 2016.

    Ambler, Scott. “Center of Excellence (CoEs).” Disciplined Agile 2.0: A Process Decision Framework for Enterprise I.T. Scott Amber + Associates. Web. 01 Apr. 2016.

    Ambler, Scott. “Transforming From Traditional to Disciplined Agile Delivery.” Case Study: Disciplined Agile Delivery Adoption. Scott Amber + Associates, 2013. Web.

    Beers, Rick. “IT – Business Alignment Why We Stumble and the Path Forward.” Oracle Corporation, July 2013. Web.

    Cornelius & Associates. “The Qualities of Leadership: Leading Change.” Cornelius & Associates, n.d. Web.

    Craig, William et al. “Generalized Criteria and Evaluation Method for Center of Excellence: A Preliminary Report.” Carnegie Mellon University Research Showcase @ CMU – Software Engineering Institute. Dec. 2009. Web. 20 Apr. 2016.

    Forsgren, Dr. Nicole et al (2019), Accelerate: State of DevOps 2019, Google, https://services.google.com/fh/files/misc/state-of-devops-2019.pdf

    Gerardi, Bart (2017), Agile Centers of Excellence, PMI Projectmanagement.com, https://www.projectmanagement.com/articles/405819/Agile-Centers-of-Excellence

    Gerardi, Bart (2017), Champions of Agile Adoption, PMI Projectmanagement.com, https://www.projectmanagement.com/articles/418151/Champions-of-Agile-Adoption

    Gerardi, Bart (2017), The Roles of an Agile COE, PMI Projectmanagement.com, https://www.projectmanagement.com/articles/413346/The-Roles-of-an-Agile-COE

    Hohl, P. et al. “Back to the future: origins and directions of the ‘Agile Manifesto’ – views of the originators.” Journal of Software Engineering Research and Development, vol. 6, no. 15, 2018. https://link.springer.com/article/10.1186/s40411-0...

    Kaltenecker, Sigi and Hundermark, Peter. “What Are Self-Organising Teams?” InfoQ. 18 July 2014. Web. 14 Apr. 2016.

    Kniberg, Henrik and Anderson Ivarsson. “Scaling Agile @ Spotify with Tribes, Squads, Chapters & Guilds.” Oct. 2012. Web. 30 Apr. 2016.

    Kumar, Alok et al. “Enterprise Agile Adoption: Challenges and Considerations.” Scrum Alliance. 30 Oct. 2014. Web. 30 May 2016.

    Levison, Mark. “Questioning Servant Leadership.” InfoQ, 4 Sept. 2008. Web. https://www.infoq.com/news/2008/09/servant_leadership/

    Linders, Ben. “Don't Copy the Spotify Model.” InfoQ.com. 6 Oct. 2016.

    Loxton, Matthew (June 1, 2011), CoP vs CoE – What’s the difference, and Why Should You Care?, Wordpress.com

    McDowell, Robert, and Bill Simon. In Search of Business Value: Ensuring a Return on Your Technology Investment. SelectBooks, 2010

    Novak, Cathy. “Case Study: Agile Government and the State of Maine.” Agile Government Leadership, n.d. Web.

    Pal, Nirmal and Daniel Pantaleo. “Services are the Language and Building Blocks of an Agile Enterprise.” The Agile Enterprise: Reinventing your Organization for Success in an On-Demand World. 6 Dec. 2015. Springer Science & Business Media.

    Rigby, Darrell K. et al (2018), Agile at Scale, Harvard Business Review, https://hbr.org/2018/05/agile-at-scale

    Scaledagileframework.com, Create a Lean-Agile Center of Excellence, Scaled Agile, Inc, https://www.scaledagileframework.com/lace/

    Shepley, Joe. “8 reasons COEs fail (Part 2).” Agile Ramblings, 22 Feb. 2010. https://joeshepley.com/2010/02/22/8-reasons-coes-fail-part-2/

    Stafford, Jan. “How upper management misconceptions foster Agile failures.” TechTarget. Web. 07 Mar. 2016.

    Taulli, Tom (2020), RPA Center Of Excellence (CoE): What You Need To Know For Success, Forbes.com, https://www.forbes.com/sites/tomtaulli/2020/01/25/rpa-center-of-excellence-coe-what-you-need-to-know-for-success/#24364620287a

    Telang, Mukta. “The CMMI Agile Adoption Model.” ScrumAlliance. 29 May 2015. Web. 15 Apr. 2016.

    VersionOne. “13th Annual State of Agile Report.” VersionOne. 2019. Web.

    Vembar, Navin. “Case Study: Agile Government and the General Services Administration (Integrated Award Environment).” Agile Government Leadership, n.d. Web.

    Wenger, E., R. A. McDermott, et al. (2002), Cultivating communities of practice: A guide to managing knowledge, Harvard Business Press.

    Wenger, E., White, N., Smith, J.D. Digital Habitats; Stewarding Technology for Communities. Cpsquare (2009).

    Maintain Employee Engagement During the COVID-19 Pandemic

    • Buy Link or Shortcode: {j2store}548|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
    • member rating average dollars saved: $12,399 Average $ Saved
    • member rating average days saved: 5 Average Days Saved
    • Parent Category Name: Engage
    • Parent Category Link: /engage
    • The uncertainty of the pandemic means that employee engagement is at higher risk.
    • Organizations need to think beyond targeting traditional audiences by considering engagement of onsite, remote, and laid-off employees.

    Our Advice

    Critical Insight

    • The changing way of work triggered by this pandemic means engagement efforts must be easy to implement and targeted for relevant audiences.

    Impact and Result

    • Identify key drivers to leverage during the pandemic to boost engagement as well as at-risk drivers to focus efforts on.
    • Select quick-win tactics to sustain and boost engagement for relevant target audiences.

    Maintain Employee Engagement During the COVID-19 Pandemic Research & Tools

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

    1. Determine the scope

    Evaluate the current state, stakeholder capacity, and target audience of engagement actions.

    • Maintain Employee Engagement During the COVID-19 Pandemic Storyboard
    • Pandemic Engagement Workbook

    2. Identify engagement drivers

    Review impact to engagement drivers in order to prioritize and select tactics for addressing each.

    • Tactics Catalog: Maintain Employee Engagement During the COVID-19 Pandemic
    • Employee Engagement During COVID-19: Manager Tactics

    3. Determine ownership and communicate engagement actions

    Designate owners of tactics, select measurement tools and cadence, and communicate engagement actions.

    • Crisis Communication Guide for HR
    • Crisis Communication Guide for Leaders
    • Leadership Crisis Communication Guide Template
    • HR Action and Communication Plan
    [infographic]

    Measure and Manage Customer Satisfaction Metrics That Matter the Most

    • 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
    • Lack of understanding of what is truly driving customer satisfaction or dissatisfaction.
    • Lack of insight into who our satisfied and dissatisfied customers are.
    • Lack of a system for early detection of declines in satisfaction.
    • Lack of clarity on what to improve and how resources should be allocated.

    Our Advice

    Critical Insight

    • All software companies measure satisfaction in some way, but many lack understanding of what’s truly driving customers to stay or leave. By understanding the true drivers of satisfaction, solution providers can measure and monitor satisfaction more effectively, pull actionable insights and feedback, and make changes to products and services that customers really care about and will keep them coming back to you to have their needs met.
    • Obstacles:
      • Use of metrics that don’t provide the insight needed to make impactful changes that will boost satisfaction and ultimately, retention and profit.
      • Lack of a clear definition of what satisfaction means to customers, metric definitions and/or standard methods of measurement, and a consistent monitoring cadence.

    Impact and Result

    • Understanding of who your satisfied and dissatisfied customers are.
    • Understanding of the true drivers of satisfaction and dissatisfaction among your customer segments.
    • Establishment of a repeatable process and cadence for effective satisfaction measurement and monitoring.
    • Development of an executable customer satisfaction improvement plan that identifies customer journey pain points and areas of dissatisfaction, and outlines how to improve them.
    • Knowledge of where money, time, and other resources are needed most to improve satisfaction levels and ultimately increase retention.

    Measure and Manage Customer Satisfaction Metrics That Matter the Most Research & Tools

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

    1. Measure and Manage the Customer Satisfaction Metrics that Matter the Most Deck – An overview of how to understand what drives customer satisfaction and how to measure and manage it for improved business outcomes.

    Understand the true drivers of customer satisfaction and build a process for managing and improving customer satisfaction.

    [infographic]

    Further reading

    Measure and Manage the Customer Satisfaction Metrics that Matter the Most

    Understand what truly keeps your customer satisfied. Start to measure what matters to improve customer experience and increase satisfaction and advocacy. 

    EXECUTIVE BRIEF

    Analyst perspective

    Understanding and measuring the true drivers of satisfaction enable the delivery of real customer value

    The image contains a picture of Emily Wright.

    “Healthy customer relationships are the paramount to long-term growth. When customers are satisfied, they remain loyal, spend more, and promote your company to others in their network. The key to high satisfaction is understanding and measuring the true drivers of satisfaction to enable the delivery of real customer value.

    Most companies believe they know who their satisfied customers are and what keeps them satisfied, and 76% of B2B buyers expect that providers understand their unique needs (Salesforce Research, 2020). However, on average B2B companies have customer experience scores of less than 50% (McKinsey, 2016). This disconnect between customer expectations and provider experience indicates that businesses are not effectively measuring and monitoring satisfaction and therefore are not making meaningful enhancements to their service, offerings, and overall experience.

    By focusing on the underlying drivers of customer satisfaction, organizations develop a truly accurate picture of what is driving deep satisfaction and loyalty, ensuring that their company will achieve sustainable growth and stay competitive in a highly competitive market.”

    Emily Wright

    Senior Research Analyst, Advisory

    SoftwareReviews

    Executive summary

    Your Challenge

    Common Obstacles

    SoftwareReviews’ Approach

    Getting a truly accurate picture of satisfaction levels among customers, and where to focus efforts to improve satisfaction, is challenging. Providers often find themselves reacting to customer challenges and being blindsided when customers leave. More effective customer satisfaction measurement is possible when providers self-assess for the following challenges:

    • Lack of understanding of what is truly driving customer satisfaction or dissatisfaction.
    • Lack of insight into who our satisfied and dissatisfied customers are.
    • Lack of a system for early detection of declines in satisfaction.
    • Lack of clarity of what needs to be improved and how resources should be allocated.
    • Lack of reliable internal data for effective customer satisfaction monitoring.

    What separates customer success leaders from developing a full view of their customers are several nagging obstacles:

    • Use of metrics that don’t provide the insight needed to make impactful changes that will boost satisfaction and ultimately, retention and profit.
    • Friction from customers participating in customer satisfaction studies.
    • Lack of data, or integrated databases from which to track, pull, and analyze customer satisfaction data.
    • Lack a clear definition of what satisfaction means to customers, metric definitions, and/or standard methods of measurement and a consistent monitoring cadence.
    • Lack of time, resources, or technology to uncover and effectively measure and monitor satisfaction drivers.

    Through the SoftwareReviews’ approach, customer success leaders will:

    • Understand who your satisfied and dissatisfied customers are.
    • Understand the true drivers of satisfaction and dissatisfaction among your customer segments.
    • Establish a repeatable process and cadence for effective satisfaction measurement and monitoring.
    • Develop an executable customer satisfaction improvement plan that identifies customer journey pain points and areas of dissatisfaction, and outlines how to improve them.
    • Know where money, time, and resources are needed most to improve satisfaction levels and ultimately retention.

    Overarching SoftwareReviews Advisory Insight:

    All companies measure satisfaction in some way, but many lack understanding of what’s truly driving customers to stay or leave. By understanding the true drivers of satisfaction, solution providers can measure and monitor satisfaction more effectively, pull actionable insights and feedback, and make changes to products and services that customers really care about. This will keep them coming back to you to have their needs met.

    Healthy Customer Relationships are vital for long-term success and growth

    Measuring customer satisfaction is critical to understanding the overall health of your customer relationships and driving growth.

    Through effective customer satisfaction measurement, organizations can:

    Improve Customer Experience

    Increase Retention and CLV

    Increase Profitability

    Reduce Costs

    • Provide insight into where and how to improve.
    • Enhance experience, increase loyalty.
    • By providing strong CX, organizations can increase revenue by 10-15% (McKinsey, 2014).
    • Far easier to retain existing customers than to acquire new ones.
    • Ensuring high satisfaction among customers increases Customer Lifetime Value (CLV) through longer tenure and higher spending.
    • NPS Promoter score has a customer lifetime value that's 600%-1,400% higher than a Detractor (Bain & Company, 2015).
    • Highly satisfied customers spend more through expansions and add-ons, as well as through their long tenure with your company.
    • They also spread positive word of mouth, which brings in new customers.
    • “Studies demonstrate a strong correlation between customer satisfaction and increased profits — with companies with high customer satisfaction reporting 5.7 times more revenue than competitors.” (Matthew Loper, CEO and Co-Founder of WELLTH, 2022)
    • Measuring, monitoring, and maintaining high satisfaction levels reduces costs across the board.
    • “Providing a high-quality customer experience can save up to 33% of customer service costs” (Deloitte, 2018).
    • Satisfied customers are more likely to spread positive word of mouth which reduces acquisition / marketing costs for your company.

    “Measuring customer satisfaction is vital for growth in any organization; it provides insights into what works and offers opportunities for optimization. Customer satisfaction is essential for improving loyalty rate, reducing costs and retaining your customers.”

    -Ken Brisco, NICE, 2019

    Poor customer satisfaction measurement is costly

    Virtually all companies measure customer satisfaction, but few truly do it well. All too often, customer satisfaction measurement consists of a set of vanity metrics that do not result in actionable insight for product/service improvement. Improper measurement can result in numerous consequences:

    Direct and Indirect Costs

    Being unaware of true drivers of satisfaction that are never remedied costs your business directly through customer churn, service costs, etc.

    Tarnished Brand

    Tarnished brand through not resolving issues drives dissatisfaction; dissatisfied customers share their negative experiences, which can damage brand image and reputation.

    Waste Limited Resources

    Putting limited resources towards vanity programs and/or fixes that have little to no bearing on core satisfaction drivers wastes time and money.

    “When customer dissatisfaction goes unnoticed, it can slowly kill a company. Because of the intangible nature of customer dissatisfaction, managers regularly underestimate the magnitude of customer dissatisfaction and its impact on the bottom line.”

    - Lakshmiu Tatikonda, “The Hidden Costs of Customer Dissatisfaction”, 2013

    SoftwareReviews Advisory Insight:

    Most companies struggle to understand what’s truly driving customers to stay or leave. By understanding the true satisfaction drivers, tech providers can measure and monitor satisfaction more effectively, avoiding the numerous harmful consequences that result from average customer satisfaction measurement.

    Does your customer satisfaction measurement process need improvement?

    Getting an accurate picture of customer satisfaction is no easy task. Struggling with any of the following means you are ready for a detailed review of your customer satisfaction measurement efforts:

    • Not knowing who your most satisfied customers are.
    • Lacking early detection for declining satisfaction – either reactive, or unaware of dissatisfaction as it’s occurring.
    • Lacking a process for monitoring changes in satisfaction and lack ability to be proactive; you feel blindsided when customers leave.
    • Inability to fix the problem and wasting money on the wrong areas, like vanity metrics that don’t bring value to customers.
    • Spending money and other resources towards fixes based on a gut feeling, without quantifying the real root cause drivers and investing in their improvement.
    • Having metrics and data but lacking context; don’t know what contributed to the metrics/results, why people are dissatisfied or what contributes to satisfaction.
    • Lacking clear definition of what satisfaction means to customers / customer segments.
    • Difficulty tying satisfaction back to financial results.

    Customers are more satisfied with software vendors who understand the difference between surface level and short-term satisfaction, and deep or long-term satisfaction

    Surface-level satisfaction

    Surface-level satisfaction has immediate effects, but they are usually short-term or limited to certain groups of users. There are several factors that contribute to satisfaction including:

    • Novelty of new software
    • Ease of implementation
    • Financial savings
    • Breadth of features

    Software Leaders Drive Deep Satisfaction

    Deep satisfaction has long-term and meaningful impacts on the way that organizations work. Deep satisfaction has staying power and increases or maintains satisfaction over time, by reducing complexity and delivering exceptional quality for end-users and IT alike. This report found that the following capabilities provided the deepest levels of satisfaction:

    • Usability and intuitiveness
    • Quality of features
    • Ease of customization
    • Vendor-specific capabilities

    The above solve issues that are part of everyday problems, and each drives satisfaction in deep and meaningful ways. While surface-level satisfaction is important, deep and impactful capabilities can sustain satisfaction for a longer time.

    Deep Customer Satisfaction Among Software Buyers Correlates Highly to “Emotional Attributes”

    Vendor Capabilities and Product Features remain significant but are not the primary drivers

    The image contains a graph to demonstrate a correlation to Satisfaction, all Software Categories.
    Source: SoftwareReviews buyer reviews (based on 82,560 unique reviews).

    Driving deep satisfaction among software customers vs. surface-level measures is key

    Vendor capabilities and product features correlate significantly to buyer satisfaction

    Yet, it’s the emotional attributes – what we call the “Emotional Footprint”, that correlate more strongly

    Business-Value Created and Emotional Attributes are what drives software customer satisfaction the most

    The image contains a screenshot of a graph to demonstrate Software Buyer Satisfaction Drivers and Emotional Attributes are what drives software customer satisfaction.

    Software companies looking to improve customer satisfaction will focus on business value created and the Emotional Footprint attributes outlined here.

    The essential ingredient is understanding how each is defined by your customers.

    Leaders focus on driving improvements as described by customers.

    SoftwareReviews Insight:

    These true drivers of satisfaction should be considered in your customer satisfaction measurement and monitoring efforts. The experience customers have with your product and brand is what will differentiate your brand from competitors, and ultimately, power business growth. Talk to a SoftwareReviews Advisor to learn how users rate your product on these satisfaction drivers in the SoftwareReviews Emotional Footprint Report.

    Benefits of Effective Customer Satisfaction Measurement

    Our research provides Customer Success leaders with the following key benefits:

    • Ability to know who is satisfied, dissatisfied, and why.
    • Confidence in how to understand or uncover the factors behind customer satisfaction; understand and identify factors driving satisfaction, dissatisfaction.
    • Ability to develop a clear plan for improving customer satisfaction.
    • Knowledge of how to establish a repeatable process for customer satisfaction measurement and monitoring that allows for proactivity when declines in satisfaction are detected.
    • Understanding of what metrics to use, how to measure them, and where to find the right information/data.
    • Knowledge of where money, time, and other resources are needed most to drive tangible customer value.

    “81% of organizations cite CX as a competitive differentiator. The top factor driving digital transformation is improving CX […] with companies reporting benefits associated with improving CX including:

    • Increased customer loyalty (92%)
    • An uplift in revenue (84%)
    • Cost savings (79%).”

    – Dan Cote, “Advocacy Blooms and Business Booms When Customers and Employees Engage”, Influitive, 2021

    The image contains a screenshot of a thought model that focuses on Measure & Manage the Customer Satisfaction Metrics That Matter the Most.

    Who benefits from improving the measurement and monitoring of customer satisfaction?

    This Research Is Designed for:

    • Customer Success leaders and marketers who are:
      • Responsible for understanding how to benchmark, measure, and understand customer satisfaction to improve satisfaction, NPS, and ROI.
      • Looking to take a more proactive and structured approach to customer satisfaction measurement and monitoring.
      • Looking for a more effective and accurate way to measure and understand how to improve customer satisfaction around products and services.

    This Research Will Help You:

    • Understand the factors driving satisfaction and dissatisfaction.
    • Know which customers are satisfied/dissatisfied.
    • Know where time, money, and resources are needed the most in order to improve or maintain satisfaction levels.
    • Develop a formal plan to improve customer satisfaction.
    • Establish a repeatable process for customer satisfaction measurement and monitoring that allows for proactivity when declines in satisfaction are detected.

    This Research Will Also Assist:

    • Customer Success Leaders, Marketing and Sales Directors and Managers, Product Marketing Managers, and Advocacy Managers/Coordinators who are responsible for:
      • Product improvements and enhancements
      • Customer service and onboarding
      • Customer advocacy programs
      • Referral/VoC programs

    This Research Will Help Them:

    • Coordinate and align on customer experience efforts and actions.
    • Gather and make use of customer feedback to improve products, solutions, and services provided.
    • Provide an amazing customer experience throughout the entirety of the customer journey.

    SoftwareReviews’ methodology for measuring the customer satisfaction metrics that matter the most

    1. Identify true customer satisfaction drivers

    2. Develop metrics dashboard

    3. Develop customer satisfaction measurement and management plan

    Phase Steps

    1. Identify data sources, documenting any gaps in data
    2. Analyze all relevant data on customer experiences and outcomes
    3. Document top satisfaction drivers
    1. Identify business goals, problems to be solved / define business challenges and marketing/customer success goals
    2. Use SR diagnostic to assess current state of satisfaction measurement, assessing metric alignment to satisfaction drivers
    3. Define your metrics dashboard
    4. Develop common metric definitions, language for discussing, and standards for measuring customer satisfaction
    1. Determine committee structure to measure performance metrics over time
    2. Map out gaps in satisfaction along customer journey/common points in journey where customers are least dissatisfied
    3. Build plan that identifies weak areas and shows how to fix using SR’s emotional footprint, other measures
    4. Create plan and roadmap for CSat improvement
    5. Create communication deck

    Phase Outcomes

    1. Documented satisfaction drivers
    2. Documented data sources and gaps in data
    1. Current state customer satisfaction measurement analysis
    2. Common metric definitions and measurement standards
    3. Metrics dashboard
    1. Customer satisfaction measurement plan
    2. Customer satisfaction improvement plan
    3. Customer journey maps
    4. Customer satisfaction improvement communication deck
    5. Customer Satisfaction Committee created

    Insight summary

    Understanding and measuring the true drivers of satisfaction enable the delivery of real customer value

    All software companies measure satisfaction in some way, but many lack understanding of what’s truly driving customers to stay or leave. By understanding the true drivers of satisfaction, solution providers can measure and monitor satisfaction more effectively, pull actionable insights and feedback, and make changes to products and services that customers really care about and which will keep them coming back to you to have their needs met.

    Positive experiences drive satisfaction more so than features and cost

    According to our analysis of software buyer reviews data*, the biggest drivers of satisfaction and likeliness to recommend are the positive experiences customers have with vendors and their products. Customers want to feel that:

    1. Their productivity and performance is enhanced, and the vendor is helping them innovate and grow as a company.
    2. Their vendor inspires them and helps them to continually improve.
    3. They can rely on the vendor and the product they purchased.
    4. They are respected by the vendor.
    5. They can trust that the vendor will be on their side and save them time.
    *8 million data points across all software categories

    Measure Key Relationship KPIs to gauge satisfaction

    Key metrics to track include the Business Value Created score, Net Emotional Footprint, and the Love/Hate score (the strength of emotional connection).

    Orient the organization around customer experience excellence

    1. Arrange staff incentives around customer value instead of metrics that are unrelated to satisfaction.
    2. Embed customer experience as a core company value and integrate it into all functions.
    3. Make working with your organization easy and seamless for customers.

    Have a designated committee for customer satisfaction measurement

    Best in class organizations create customer satisfaction committees that meet regularly to measure and monitor customer satisfaction, resolve issues quickly, and work towards improved customer experience and profit outcomes.

    Use metrics that align to top satisfaction drivers

    This will give you a more accurate and fulsome view of customer satisfaction than standard satisfaction metrics alone will.

    Guided Implementation

    What is our GI on measuring and managing the customer satisfaction metrics that matter most?

    Identify True Customer Satisfaction Drivers

    Develop Metrics Dashboard Develop Customer Satisfaction Measurement and Management Plan

    Call #1: Discuss current pain points and barriers to successful customer satisfaction measurement, monitoring and maintenance. Plan next call – 1 week.

    Call #2: Discuss all available data, noting any gaps. Develop plan to fill gaps, discuss feasibility and timelines. Plan next call – 1 week.

    Call #3: Walk through SoftwareReviews reports to understand EF and satisfaction drivers. Plan next call – 3 days.

    Call #4: Segment customers and document key satisfaction drivers. Plan next call – 2 week.

    Call #5: Document business goals and align them to metrics. Plan next call – 1 week.

    Call #6: Complete the SoftwareReviews satisfaction measurement diagnostic. Plan next call – 3 days.

    Call #7: Score list of metrics that align to satisfaction drivers. Plan next call – 2 days.

    Call #8: Develop metrics dashboard and definitions. Plan next call – 2 weeks.

    Call #9: Finalize metrics dashboard and definitions. Plan next call – 1 week.

    Call #10: Discuss committee and determine governance. Plan next call – 2 weeks.

    Call #11: Map out gaps in satisfaction along customer journey as they relate to top satisfaction drivers. Plan next call –2 weeks.

    Call #12: Develop plan and roadmap for satisfaction improvement. Plan next call – 1 week.

    Call #13: Finalize plan and roadmap. Plan next call – 1 week.

    Call # 14: Review and coach on communication deck.

    A Guided Implementation (GI) is series of calls with a SoftwareReviews Advisory analyst to help implement our best practices in your organization.

    For guidance on marketing applications, we can arrange a discussion with an Info-Tech analyst.

    Your engagement managers will work with you to schedule analyst calls.

    Software Reviews 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.”
    Included within Advisory Membership Optional add-ons

    Bibliography

    “Are you experienced?” Bain & Company, Apr. 2015. Accessed 6 June. 2022.

    Brisco, Ken. “Measuring Customer Satisfaction and Why It’s So Important.” NICE, Feb. 2019. Accessed 6 June. 2022.

    CMO.com Team. “The Customer Experience Management Mandate.” Adobe Experience Cloud Blog, July 2019. Accessed 14 June. 2022.

    Cote, Dan. “Advocacy Blooms and Business Booms When Customers and Employees Engage.” Influitive, Dec. 2021. Accessed 15 June. 2022.

    Fanderl, Harald and Perrey, Jesko. “Best of both worlds: Customer experience for more revenues and lower costs.” McKinsey & Company, Apr. 2014. Accessed 15 June. 2022.

    Gallemard, Jeremy. “Why – And How – Should Customer Satisfaction Be Measured?” Smart Tribune, Feb. 2020. Accessed 6 June. 2022.

    Kumar, Swagata. “Customer Success Statistics in 2021.” Customer Success Box, 2021. Accessed 17 June. 2022.

    Lakshmiu Tatikonda, “The Hidden Costs of Customer Dissatisfaction”, Management Accounting Quarterly, vol. 14, no. 3, 2013, pp 38. Accessed 17 June. 2022.

    Loper, Matthew. “Why ‘Customer Satisfaction’ Misses the Mark – And What to Measure Instead.” Newsweek, Jan. 2022. Accessed 16 June. 2022.

    Maechler, Nicolas, et al. “Improving the business-to-business customer experience.” McKinsey & Company, Mar. 2016. Accessed 16 June.

    “New Research from Dimension Data Reveals Uncomfortable CX Truths.” CISION PR Newswire, Apr. 2017. Accessed 7 June. 2022.

    Sheth, Rohan. 75 Must-Know Customer Experience Statistics to move Your Business Forward in 2022.” SmartKarrot, Feb. 2022. Accessed 17 June. 2022.

    Smith, Mercer. “111 Customer Service Statistics and Facts You Shouldn’t Ignore.” HelpScout, May 2022. Accessed 17 June. 2022.

    “State of the Connected Customer.” Salesforce, 2020. Accessed 14 June. 2022

    “The true value of customer experiences.” Deloitte, 2018. Accessed 15 June. 2022.

    Applications Priorities 2023

    • Buy Link or Shortcode: {j2store}186|cart{/j2store}
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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.

    Identify the Components of Your Cloud Security Architecture

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    • Parent Category Name: Security Strategy & Budgeting
    • Parent Category Link: /security-strategy-and-budgeting
    • Leveraging the cloud introduces IT professionals to a new world that they are tasked with securing. Consumers do not know what security services they need and when to implement them.
    • With many cloud vendors proposing to share the security responsibility, it can be a challenge for organizations to develop a clear understanding of how they can best secure their data off premises.

    Our Advice

    Critical Insight

    • 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.

    Generative AI: Market Primer

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    • Parent Category Name: Data Management
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    • Much of the organization remains in the dark for understanding what Gen AI is, complicated by ambiguous branding from vendors claiming to provide Gen AI solutions.
    • Searching the market for a Gen AI platform is nearly impossible, owing to the sheer number of vendors.
    • The evaluative criteria for selecting a Gen AI platform are unclear.

    Our Advice

    Critical Insight

    • You cannot rush Gen AI selection and implementation. Organizations with (1) FTEs devoted to making Gen AI work (including developers and business intelligence analysts), (2) trustworthy and regularly updated data, and (3) AI governance are just now reaching PoC testing.
    • Gen AI is not a software category – it is an umbrella concept. Gen AI platforms will be built on different foundational models, be trained in different ways, and provide varying modalities. Do not expect Gen AI platforms to be compared against the same parameters in a vendor quadrant.
    • Bad data is the tip of the iceberg for Gen AI risks. While Gen AI success will be heavily reliant on the quality of data it is fine-tuned on, there are independent risks organizations must prepare for, from Gen AI hallucinations and output reliability to infrastructure feasibility and handling high-volume events.
    • Prepare for ongoing instability in the Gen AI market. If your organization is unsure about where to start with Gen AI, the secure route is to examine what your enterprise providers are offering. Use this as a learning platform to confidently navigate which specialized Gen AI provider will be viable for meeting your use cases.

    Impact and Result

    • Consensus on Gen AI scope and key Gen AI capabilities
    • Identification of your readiness to leverage Gen AI applications
    • Agreement on Gen AI evaluative criteria
    • Knowledge of vendor viability

    Generative AI: Market Primer Research & Tools

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

    1. Generative AI: Market Primer – Contextualize the marketspace and prepare for generative AI selection.

    Use Info-Tech’s best practices for setting out a selection roadmap and evaluative criteria for narrowing down vendors – both enterprise and specialized providers.

    • Generative AI: Market Primer Storyboard
    • Data Governance Policy
    • AI Governance Storyboard
    • AI Architecture Assessment and Project Planning Tool
    • AI Architecture Assessment and Project Planning Tool – Sample
    • AI Architecture Templates
    [infographic]

    Further reading

    Generative AI: Market Primer

    Cut through Gen AI buzzwords to achieve market clarity.

    Analyst Perspective

    The generative AI (Gen AI) marketspace is complex, nascent, and unstable.

    Organizations need to get clear on what Gen AI is, its infrastructural components, and the governance required for successful platform selection.

    Thomas Randall

    The urge to be fast-moving to leverage the potential benefits of Gen AI is understandable. There are plenty of opportunities for Gen AI to enrich an organization’s use cases – from commercial to R&D to entertainment. However, there are requisites an organization needs to get right before Gen AI can be effectively applied. Part of this is ensuring data and AI governance is well established and mature within the organization. The other part is contextualizing Gen AI to know what components of this market the organization needs to invest in.

    Owing to its popularity surge, OpenAI’s ChatGPT has become near synonymous with Gen AI. However, Gen AI is an umbrella concept that encompasses a variety of infrastructural architecture. Organizations need to ask themselves probing questions if they are looking to work with OpenAI: Does ChatGPT rest on the right foundational model for us? Does ChatGPT offer the right modalities to support our organization’s use cases? How much fine-tuning and prompt engineering will we need to perform? Do we require investment in on-premises infrastructure to support significant data processing and high-volume events? And do we require FTEs to enable all this infrastructure?

    Use this market primer to quickly get up to speed on the elements your organization might need to make the most of Gen AI.

    Thomas Randall

    Advisory Director, Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Much of the organization remains in the dark for understanding what Gen AI is, complicated by ambiguous branding from vendors claiming to provide Gen AI solutions.
    • Searching the market for a Gen AI platform is near impossible, owing to the sheer number of vendors.
    • The evaluative criteria for selecting a Gen AI platform is unclear.

    Common Obstacles

    • Data governance is immature within the organization. There is no source of truth or regularly updated organizational process assets.
    • AI functionality is not well understood within the organization; there is little AI governance for monitoring and controlling its use.
    • The extent of effort and resources required to make Gen AI a success remains murky.

    Info-Tech's Solution

    This market primer for Gen AI will help you:

    1. Contextualize the Gen AI market: Learn what components of Gen AI an organization should consider to make Gen AI a success.
    2. Prepare for Gen AI selection: Use Info-Tech’s best practices for setting out a selection roadmap and evaluative criteria for narrowing down vendors – both enterprise and specialized providers.

    “We are entering the era of generative AI.
    This is a unique time in our history where the benefits of AI are easily accessible and becoming pervasive with co-pilots emerging in the major business tools we use today. The disruptive capabilities that can potentially drive dramatic benefits also introduces risks that need to be planned for.”

    Bill Wong, Principal Research Director – Data and BI, Info-Tech Research Group

    Who benefits from this project?

    This research is designed for:

    • Senior IT, developers, data staff, and project managers who:
      • Have received a mandate from their executives to begin researching the Gen AI market.
      • Need to quickly get up to speed on the state of the Gen AI market, given no deep prior knowledge of the space.
      • Require an overview of the different components to Gen AI to contextualize how vendor comparisons and selections can be made.
      • Want to gain an understanding of key trends, risks, and evaluative criteria to consider in their selection process.

    This research will help you:

    • Articulate the potential business value of Gen AI to your organization.
    • Establish which high-value use cases could be enriched by Gen AI functionality.
    • Assess vendor viability for enterprise and specialized software providers in the Gen AI marketspace.
    • Collect information on the prerequisites for implementing Gen AI functionality.
    • Develop relevant evaluative criteria to assist differentiating between shortlisted contenders.

    This research will also assist:

    • Executives, business analysts, and procurement teams who are stakeholders in:
      • Contextualizing the landscape for learning opportunities.
      • Gathering and documenting requirements.
      • Building deliverables for software selection projects.
      • Managing vendors, especially managing the relationships with incumbent enterprise software providers.

    This research will help you:

    • Identify examples of how Gen AI applications could be leveraged for your organization’s core use cases.
    • Verify the extent of Gen AI functionality an incumbent enterprise provider has.
    • Validate accuracy of Gen AI language and architecture referenced in project deliverables.

    Insight Summary

    You cannot speedrun Gen AI selection and implementation.

    Organizations with (1) FTEs devoted to making Gen AI work (including developers and business intelligence analysts), (2) trustworthy and regularly updated data, and (3) AI governance are just now reaching PoC testing.

    Gen AI is not a software category – it is an umbrella concept.

    Gen AI platforms will be built on different foundational models, be trained in different ways, and provide varying modalities. Do not expect to compare Gen AI platforms to the same parameters in a vendor quadrant.

    Bad data is the tip of the iceberg for Gen AI risks.

    While Gen AI success will be heavily reliant on the quality of data it is fine-tuned on, there are independent risks organizations must prepare for: from Gen AI hallucinations and output reliability to infrastructure feasibility to handle high-volume events.

    Gen AI use may require changes to sales incentives.

    If you plan to use Gen AI in a commercial setting, review your sales team’s KPIs. They are rewarded for sales velocity; if they are the human-in-the-loop to check for hallucinations, you must change incentives to ensure quality management.

    Prepare for ongoing instability in the Gen AI market.

    If your organization is unsure about where to start with Gen AI, the secure route is to examine what your enterprise providers are offering. Use this as a learning platform to confidently navigate which specialized Gen AI provider will be viable for meeting your use cases.

    Brace for a potential return of on-premises infrastructure to power Gen AI.

    The market trend has been for organizations to move to cloud-based products. Yet, for Gen AI, effective data processing and fine-tuning may call for organizations to invest in on-premises infrastructure (such as more GPUs) to enable their Gen AI to function effectively.

    Info-Tech’s methodology for understanding the Gen AI marketspace

    Phase Steps

    1. Contextualize the Gen AI marketplace

    1. Define Gen AI and its components.
    2. Explore Gen AI trends.
    3. Begin deriving Gen AI initiatives that align with business capabilities.

    2. Prepare for and understand Gen AI platform offerings

    1. Review Gen AI selection best practices and requisites for effective procurement.
    2. Determine evaluative criteria for Gen AI solutions.
    3. Explore Gen AI offerings with enterprise and specialized providers.
    Phase Outcomes
    1. Achieve consensus on Gen AI scope and key Gen AI capabilities.
    2. Identify your readiness to leverage Gen AI applications.
    3. Hand off to Build Your Generative AI Roadmap to complete pre-requisites for selection.
    1. Determine whether deeper data and AI governance is required; if so, hand off to Create an Architecture for AI.
    2. Gain consensus on Gen AI evaluative criteria.
    3. Understand vendor viability.

    Guided Implementation

    Phase 1

    Phase 2

    • Call #1: Discover if Gen AI is right for your organization. Understand what a Gen AI platform is and discover the art of the possible.
    • Call #2: To take advantage of Gen AI, perform a business capabilities analysis to begin deriving Gen AI initiatives.
    • Call #3: Explore whether Gen AI initiatives can be achieved either with incumbent enterprise players or via procurement of specialized solutions.
    • Call #4: Evaluate vendors and perform final due diligence.

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

    The Gen AI market evaluation process should be broken into segments:

    1. Gen AI market education with this primer
    2. Structured approach to selection
    3. Evaluation and final due diligence

    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.

    Software selection engagement

    Five advisory calls over a five-week period to accelerate your selection process

    • Receive 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.
    • Get better, faster results guaranteed, included in membership.
    Software selection process timeline. Week 1: Awareness - 1 hour call, Week 2: Education & Discovery - 1 hour call, Week 3: Evaluation - 1 hour call, Week 4: Selection - 1 hour call, Week 5: Negotiation & Configuration - 1 hour call.

    Click here to book your selection engagement.

    Software selection workshops

    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; 25K standard engagement fee
    Software selection process timeline. Week 1: Awareness - 5 hours of Assistance, Week 2: Education & Discovery - 10 hours of assistance, Week 3: Evaluation - 10 hours of assistance, Week 4: Selection - 10 hours of assistance, Week 5: Negotiation & Configuration - 10 hours of assistance.

    Click here to book your workshop engagement.

    Collaborate Effectively in Microsoft Teams

    • Buy Link or Shortcode: {j2store}63|cart{/j2store}
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    • Parent Category Name: End-User Computing Applications
    • Parent Category Link: /end-user-computing-applications

    Your organization has adopted Microsoft Teams, but users are not maximizing their use of it.

    • IT needs to support the business to get the best value out of Microsoft Teams: managing Teams effectively while also enabling end users to use Teams creatively.
    • IT must follow best practices for evaluation of new functionality when integrating Microsoft and third-party apps and also communicate changes to end users.
    • Due in part to the frequent addition of new features and lack of communication and training, many organizations don’t know which apps would benefit their users.

    Our Advice

    Critical Insight

    Collaboration is as much an art as a science. IT can help users collaborate more effectively in Teams by removing friction – while still maintaining guardrails – for users attempting to build out and experiment with features and capabilities.

    Impact and Result

    Use Info-Tech’s Collaborate Effectively in Microsoft Teams to help collaboration flourish:

    • Collate key organizational collaboration use cases.
    • Prioritize the most important Teams apps and features to support use cases.
    • Implement request process for new Teams apps.
    • Communicate new Teams collaboration functionality.

    Collaborate Effectively in Microsoft Teams Research & Tools

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

    1. Collaborate Effectively in Microsoft Teams Deck – Maximize the use of your chosen collaboration software solution.

    Set up your users for Teams collaboration success. Create a process that improves their ability to access, understand, and maximize their use of your chosen collaboration software solution.

    • Collaborate Effectively in Microsoft Teams Storyboard

    2. Microsoft Teams End-User Satisfaction Survey – Capture end-user feedback on their collaborative use of Microsoft Teams.

    The survey responses will inform your organization's collaboration use cases for Teams and help you to identify which features and apps to enable.

    • Microsoft Teams End-User Satisfaction Survey

    3. Microsoft Teams Planning Tool – A tool to help prioritize features to implement.

    Use this Excel tool to help you document the organization’s key collaboration use cases and prioritize which Teams apps to implement and encourage adoption on.

    • Microsoft Teams Planning Tool
    [infographic]

    Further reading

    Collaborate Effectively in Microsoft Teams

    Empower your users to explore Teams collaboration beyond the basics.

    Analyst Perspective

    Life after Teams implementation

    You have adopted Teams, implemented it, and painted an early picture for your users on the basics. However, your organization is not yet maximizing its use of Teams' collaboration capabilities. Although web conferencing, channel-based collaboration, and chat are the most obvious ways Teams supports collaboration, users must explore Teams' functionality further to harness the application's full potential.

    You should enable your users to expand their collaboration use cases in Teams, but not at the risk of being flooded with app requests, nor user confusion or dissatisfaction. Instead, develop a process to evaluate and integrate new apps that will benefit the organization. Encourage your users to request new apps that will benefit them, while proactively planning for app integration that users should be alerted to.

    Photo of Emily Sugerman, Research Analyst, Infrastructure and Operations, Info-Tech Research Group. Emily Sugerman
    Research Analyst, Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Your organization has adopted Microsoft Teams, but users are not getting the maximum benefit.

    • IT needs to support the business to get the best value out of Microsoft Teams: managing Teams effectively while enabling end-user creativity.
    • IT must follow best practices for evaluating new functionality when integrating Microsoft and third-party apps, while communicating changes to end users.
    • Due partly to the frequent addition of new features and lack of communication and training, many organizations don't know which apps would benefit their users.

    Common Obstacles

    • Users are unenthusiastic about exploring Teams further due to negative past experiences, preference for other applications, or indifference.
    • End users are unaware of the available range of features. When they become aware and try to add unapproved or unlicensed apps, they experience the frustration of being declined.
    • Users seek support from IT who are unfamiliar with new Teams features an apps, or with supporting Teams beyond the basics.
    • IT teams have no process to raise end-user awareness of these apps and functionality.

    Info-Tech's Approach

    Use Info-Tech's Collaborate Effectively in Microsoft Teams to help collaboration flourish:

    • Collate key organizational collaboration use cases
    • Prioritize the most important Teams apps and features to support use cases
    • Implement request process for new Teams apps
    • Communicate new Teams collaboration functionality

    Info-Tech Insight

    Collaboration is as much an art as a science. IT can help users collaborate more effectively in Teams by removing friction – while still maintaining guardrails – for users attempting to build out and experiment with features and capabilities.

    Are your users in a Teams rut?

    Are users failing to maximize their use of Teams to collaborate and get work done?

    Teams can do much more than chat, video conferencing, and document sharing. A fully-deployed Teams also lets users leverage apps and advanced collaboration features.

    However, IT must create a process for evaluating and approving Microsoft and third-party apps, and for communicating changes to end users.

    In the end, IT needs to support the business to get the best value out of Microsoft Teams: managing Teams effectively while also enabling end-user creativity.

    Third-party app use in Teams is rising:

    “Within Teams, the third-party apps with 10,000 users and above rose nearly 40% year-over-year.”
    Source: UC Today, 2023.

    Collaborate effectively in Microsoft Teams

    Set up your users for Teams collaboration success. Create a process that improves their ability to access, understand, and maximize their use of your chosen collaboration software solution.

    Challenges with Teams collaboration

    • Lack of motivation to explore available features
    • Scattered information
    • Lack of comfort using Teams beyond the basics
    • Blocked apps
    • Overlapping features
    • Confusing permissions

    Empowering Collaboration in Microsoft Teams

    1. Identify current collaboration challenges and use cases in Teams
    2. Create Teams app request workflows
    3. Set up communication hubs in Teams
    4. Empower end users to customize their Teams for effective collaboration

    Solution

    • Collate key organizational collaboration use cases
    • Prioritize the most important Teams apps and features to support use cases
    • Implement request process for new Teams apps
    • Communicate new Teams collaboration functionality

    Project deliverables

    Use these tools to develop your plan to enable effective collaboration in Microsoft Teams.

    Key deliverable:

    Microsoft Teams Planning Tool

    An Excel tool for documenting the organization's key collaboration use cases and prioritizing which Teams apps to implement and encourage adoption of.

    Sample of the Microsoft Teams Planning Tool deliverable.

    Additional support:

    Microsoft Teams End-User Satisfaction Survey

    Use or adapt this survey to capture user perception of how effectively Teams supports collaboration needs.

    Sample of the End-user satisfaction survey deliverable.

    Insight Summary

    Key Insight:

    Collaboration is as much an art as a science. IT can help users collaborate more effectively in Teams by removing friction – while still maintaining guardrails – for users attempting to build out and experiment with features and capabilities.

    Additional insights:

    Insight 1

    Users can browse the Teams app store and attempt to add unapproved apps, but they may not be able to distinguish between available and blocked apps. To avoid a bad user experience, communicate which apps they can add without additional approval and which they will need to send through an approval process.

    Insight 2

    Teams lets you customize the message users see when they request unapproved apps and/or redirect their request to your own URL. Review this step in the request process to ensure users are seeing the instructions that they need to see.

    Insight 3

    A Teams hub is where users can access a service catalog of approved Teams apps and submit service requests for new ones via the Make a Request button.

    Section 1: Collaborating Effectively in Teams for IT

    Section 1

    Collaborating Effectively in Teams for IT

    Section 2

    Collaborating Effectively in Teams for End Users

    Stop: Do you need the Teams Cookbook?

    If you:

    • are at the Teams implementation stage,
    • require IT best practices for initial governance of Teams creation, or
    • require end-user best practices for basic Teams functionality …

    Consult the Microsoft Teams Cookbook first.

    Understand the Microsoft vision of Teams collaboration

    Does it work for you?

    Microsoft's vision for Teams collaboration is to enable end-user freedom. For example, out of the box, users can create their own teams and channels unless IT restricts this ability.

    Teams is meant to be more than just chats and meetings. Microsoft is pushing Teams app integration so that Teams becomes, essentially, a landing page from which users can centralize their work and org updates.

    In partnership with the business, IT must determine which guardrails are necessary to balance end-user collaboration and creativity with the need for governance and control.

    Why is it difficult to increase the caliber of collaboration in Teams?

    Because collaboration is inherently messy, complex, and creative

    Schubert & Glitsch find that enterprise collaboration systems (such as Teams) have characteristics that reflect the unstructured and creative nature of collaboration. These systems “are designed to support joint work among people in the workplace. . . [They] contain, for the most part, unstructured content such as documents, blogs, or news posts,” and their implementations “are often reported to follow a ‘bottom up' and rather experimental introduction approach.” The open-endedness of the tool requires users to be able to creatively and voluntarily apply it, which in turn requires more enterprise effort to help increase adoption over time through trial and error.

    Source: Procedia Computer Science, 2015

    Info-Tech Insight

    Collaboration is as much an art as a science. IT can help users collaborate more effectively in Teams by removing friction – while still maintaining guardrails – for users attempting to build out and experiment with features and capabilities.

    Activity 1: Identify current challenges

    Input: Team input, Survey results
    Output: List of Teams challenges experienced by the organization
    Materials: Whiteboard (digital or physical)
    Participants: Teams collaboration working group

    First, identify what works and what doesn't for your users in Teams

    • Have users reported any challenges with Teams as their primary means of channel-based collaboration? Run a short survey to capture end-user sentiment on how Teams works for them. This survey can be set up and distributed through Microsoft Forms. Distribute either to the whole organization or a specific focus group. Gather feedback from users on the following: What are the major ways they need to collaborate to do their jobs? What IT-supported tools do they need to support this collaboration? What specific aspects of Teams do they want to better exploit?
    • If you send out transactional surveys on service desk tickets, run a report on Teams-related tickets to identify common complaints.
    • Brainstorm Teams challenges IT has experienced personally or have seen reported – especially difficulties with collaboration.
    • Once you have the data, group the challenges into themes. Are the challenges specifically related to collaboration? Data issues? Support issues? Access issues? Technical issues? Document them in tab 2 of the Microsoft Teams Planning Tool.

    Download the Microsoft Teams End-User Satisfaction Survey template

    Define your organization's key collaboration scenarios

    Next, identify what users need to do in Teams

    The term collaboration scenarios has been proposed to describe the types of collaboration behavior your software – in this case, Teams – must support (Schubert & Glitsch, 2015). A successful implementation of this kind of tool requires that you “identif[y] use cases and collaboration scenarios that best suit a specific company and the people working in it” (Schubert & Glitsch, 2016).

    Teams tends to support the following kinds of collaboration and productivity goals (see list).

    What types of collaboration scenarios arise in the user feedback in the previous activity? What do users most need to do?

    Be proactive: Configure Microsoft Teams to match collaboration scenarios/use cases your users must engage in. This will help prevent an increase in shadow IT, where users attempt to bring in unapproved/unreviewed software that might duplicate your existing service catalog and/or circumvent the proper review and procurement process.

    MS Teams Use Cases

    1. Gather feedback
    2. Collaboratively create content
    3. Improve project & task management
    4. Add media content
    5. Conduct knowledge management
    6. Increase meeting effectiveness
    7. Increase employee engagement
    8. Enhance professional development
    9. Provide or access support
    10. Add third-party apps

    Activity 2: Match your collaboration scenarios to Teams capabilities

    Input: Collaboration scenarios, Teams use cases
    Output: Ranked list of Teams features to implement and/or promote
    Materials: Microsoft Teams Planning Tool
    Participants: Teams collaboration working group

    Which features support the key collaboration use cases?

    1. Using the Microsoft Teams Planning Tool, list your organization's key collaboration scenarios. Draw on the data returned in the previous activity. List them in Tab 2.
    2. See the following slide for the types of collaboration use cases Teams is designed to support. In the planning tool, select use cases that best match your organizational collaboration scenarios.
    3. Dive into more specific features on Tab 3, which are categorized by collaboration use case. Where do users' collaboration needs align with Teams' inherent capabilities? Add lines in Tab C for the third-party apps that you are considering adding to Teams.
    4. In columns B and C of Tab 3, decide and prioritize the candidates for implementation. Review the list of prioritized features on tab 4.

    NB: Microsoft has introduced a Teams Premium offering, with additional capabilities for meetings and webinars (including customized banding, meeting watermarks, and virtual webinar green rooms) and will paywall some features previously available without Premium (live caption translations, meeting data on attendee departure/arrival times) (“What is Microsoft Teams Premium?”, n.d.)

    Download the Microsoft Teams Planning Tool

    MS Teams productivity & collab features

    Teams apps & collaboration features enable the following types of work. When designing collaboration use cases, identify which types of collaboration are necessary, then explore each category in depth.

    1. Gather feedback

      Solicit feedback and comments, and provide updates
    2. Collaboratively create content

      Compose as a group, with live-synced changes
    3. Improve project & task management

      Keep track of projects and tasks
    4. Add media content

      Enrich Teams conversations with media, and keep a library of video resources
    5. Knowledge management

      Pull together document libraries and make information easier to find
    6. Increase meeting effectiveness

      Facilitate interactions and document meeting outcomes
    7. Increase employee engagement

      Use features that enhance social interaction among Teams users
    8. Enhance professional development

      Find resources to help achieve professional goals
    9. Provide or access support

      IT and user-facing resources for accessing and/or providing support
    10. Add third-party apps

      Understand the availability/restrictions of the built-in Teams app catalog

    The Teams app store

    • The lure of the app store: Your users will encounter a mix of supported and unsupported applications, some of which they can access, some for which you have no licenses, some built by your organization, some built by Microsoft or third parties. However, the distinction between these categories may not be immediately apparent to users. Microsoft does not remove blocked apps from users' view.
    • Users may attempt to add unsupported apps and then receive error messages or prompts to send a request through Teams to IT for approval.
    • App add-ins are not limited to those built by Microsoft Corporation. The Teams app store also features a plethora of third-party apps that can provide value.
    • However, their third-party status introduces another set of complications.
    • Attempting to add third-party apps may expose users to sales pitches and encourage the implementation of shadow IT, circumventing the IT request process.

    Info-Tech Insight

    Users can browse and attempt to add unapproved apps in the Teams app store, but they may have difficulty distinguishing between available and blocked apps. To avoid a bad user experience, communicate to your users which apps they can add without additional approval, and which must be sent through an approval process.

    Decide how you will evaluate requests for new Teams apps

    • As you encourage users to explore and fully utilize Teams, you may see increased requests for admin approval for apps you do not currently support.
    • To prevent disorganized response and user dissatisfaction, build out a workflow for handling new/unapproved Teams app requests. Ensure the workflow accounts for Microsoft and third-party apps.
    • What must you consider when integrating third-party tools? You must have control over what users may add. These requests should follow, or build upon, your existing process for non-standard requests, including a process for communicating the change.
    • Track the fulfillment time for Teams app requests. The longer the user must wait for a response, the more their satisfaction will decline.

    icrosoft suggests that you regularly review the app usage report in the Teams admin center as “a signal about the demand for an app within your organization.” This will help you proactively determine which apps to evaluate for approval.

    Build request workflow for unsupported Teams apps

    What are the key steps?

    1. Request comes in
    2. Review by a technical review team
    3. Review by service desk or business analyst
    4. Additional operational technical reviews if necessary
    5. Procurement and installation
    6. Communication of result to requester
    7. App added to the catalog so it can be used by others

    Example workflow of a 'Non-Standard Software Request Process'.

    Info-Tech Insight

    Teams allows you to customize the message users see when they request an unapproved app and/or redirect their request to your own URL. Review this step in the request process to ensure your users are seeing the instructions that they need to see.

    Download the Service Request Workflow library

    Incorporate new approved service requests into a service request catalog

    Follow the process in Reduce Shadow IT With a Service Request Catalog to build out a robust request management process and service catalog to continuously incorporate new non-standard requests and advertise new Teams apps:

    • Design the service
    • Design the catalog
    • Build the catalog
    • Market the service

    Sample of the 'Reduce Shadow IT With a Service Request Catalog' blueprint.

    Add a company hub to Teams

    Use Teams to help users access the company intranet for organizational information that is relevant to their roles.

    This can be done in two ways:

    1. By adding a SharePoint home site to Teams.
    2. By leveraging Viva Connections: A hub to access other apps and Viva services. The user sees a personalized dashboard, feed, and resources.

    Venn diagram with two circles 'Viva Connections - App-based employee experience where individuals get their work done' and 'Home Sites - Portal that features organizational news, events, and supplemental resources'. The overlapping middle has a list: 'News, Shared navigation, Integrates with M365, Developer platforms & management, Audience targeting, Web parts, Permissions'. (Venn diagram recreated from Microsoft Learn, 2023.)

    Info-Tech Insight

    The hub is where users can access a service catalog of approved Teams apps and submit service requests for a new one via a Make a Request button.

    Communicate changes to Teams

    Let end users know what's available and how to add new productivity tools.

    Where will users find approved Teams apps? How will you inform people about what's available? Once a new app is available, how is this communicated?

    Options:

    • Communicate new Teams features in high-visibility places (e.g. the Hub).
    • Leverage the Power Apps Bulletins app in Teams to communicate regular announcements about new features.
    • Create a company-wide Team with a channel called “What's New in Teams.” Post updates on new features and integrations, and link to more detailed knowledgebase articles on how to use the new features.
    • Aim for the sweet spot of communication frequency: not too much nor too little.

    Measure your success

    Determine how you will evaluate the success of your efforts to improve the Teams collaboration experience

    Improved satisfaction with Teams: Increased net promoter score (NPS)

    Utilization of features: Increased daily average users on key features, apps, integrations

    Timeliness: % of SLAs met for service request fulfillment

    Improved communication to end users about Teams' functionality: Satisfaction with knowledgebase articles on Teams

    Satisfaction with communication from IT

    Section 2: Collaborating Effectively in Teams for End Users

    Section 1

    Collaborating Effectively in Teams for IT

    Section 2

    Collaborating Effectively in Teams for End Users

    For IT: Use this section to help users understand Teams collaboration features

    Share the collateral in this section with your users to support their deeper exploration of Teams collaboration.

    • Use the Microsoft Teams Planning Tool to prepare a simple service catalog of the features and apps available to your users.
    • Edit Tab 2 (MS Teams Collab Features & Apps) by deleting the blocked apps/features.
    • Share this document with your users by linking to it via this image on the following slides:
    Sample of the Microsoft Teams Planning Tool deliverable.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    End-user customization of Teams

    Consider how you want to set up your Teams view. Add the apps you already use to have them at your fingertips in Teams.

    You can . . .

    1. Customize your navigation bar by pinning your preferred apps and working with them within Teams (Microsoft calls these personal apps).
    2. Customize your message bar by adding the app extensions you find most useful. Screenshot of the message bar with the 3-dot highlighted.
    3. Customize chats and Teams by adding tabs with content your group needs frequent access to. Screenshot of MS Teams tabs with the plus sign highlighted.
    4. Set up connectors to send notifications from apps to a Team and bots to answer questions and automate simple tasks. Screenshot of the 'Set up a connector' button.

    Learn more from Microsoft here

    MS Teams productivity & collab features

    The Apps catalog includes a range of apps that users may add to channels, chat, or the navigation bar. Teams also possesses other collaboration features that may be underused in your organization.

    1. Gather feedback

      Solicit feedback and comments, and provide updates
    2. Collaboratively create content

      Compose as a group, with live-synced changes
    3. Improve project & task management

      Keep track of projects and tasks
    4. Add media content

      Enrich Teams conversations with media, and keep a library of video resources
    5. Knowledge management

      Pull together document libraries and make information easier to find
    6. Increase meeting effectiveness

      Facilitate interactions and document meeting outcomes
    7. Increase employee engagement

      Use features that enhance social interaction among Teams users
    8. Enhance professional development

      Find resources to help achieve professional goals
    9. Provide or access support

      IT and user-facing resources for accessing and/or providing support
    10. Add third-party apps

      Understand the availability/restrictions of the built-in Teams app catalog

    Samples of four features: 'Prioritize with a voting table', 'Launch a live meeting poll', 'Launch a survey', and 'Request an update'.

    Download the Microsoft Teams Collaboration Tool for an expanded list of features & apps

    Use integrated Teams features to gather feedback and provide updates

    • Vote: Create a list of items for teams to brainstorm pros and cons, and then tabulate votes on. This component can be edited inline by anyone with whom the component is shared. The edits will sync anywhere the component is shared.
    • Meeting polls: Capture instant feedback from teams, chat, and call participants. Participant anonymity can be set by the poll organizer. Results can be exported.
    • Create surveys and quizzes and share the results. Results can be exported.
    • Create, track, and review updates and progress reports from teams and individuals.

    Collaboratively create content

    Samples of four features: 'Add Office suite docs', 'Brainstorm in Whiteboard', 'Add Loop components', and 'Take notes in OneNote'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Use integrated Teams features composed as a group, with live-synced changes

    • Microsoft Office documents: Add/upload files to a chat or channel discussion. Find them again in the Files tab or add the file itself as a tab to a chat or channel and edit it within Teams.
    • Brainstorm with the Whiteboard application. Add a whiteboard to a tab or to a meeting.
    • Add Loop components to a chat: Create a list, checklist, paragraph, or table that can be edited in real time by anyone in the chat.
    • Add OneNote to a chat or channel tab or use during a meeting to take notes. Pin OneNote to your app bar if it's one of your most frequently-used apps.

    Improve project & task management

    Samples of four features: 'Request approvals and updates', 'Add & track tasks', 'Create a personal notespace', and 'Manage workflows'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Keep track of projects and tasks

    • Use the Approvals and Update apps to create, track, and respond to requests for approvals and progress reports within Teams.
    • Use Tasks by Planner & To Do to track both individual and team tasks. Pin the Tasks app to the app bar, add a plan as a tab to a Team, and turn any Teams message into a task by right-clicking on it.
    • Start a chat with yourself to maintain a private space to jot down quick notes.
    • Add Lists to a Teams channel.
    • Explore automation: Add pre-built Teams workflows from the Workflows app, or build new ones in PowerAutomate
    • IT teams may leverage Teams apps like Azure Boards, Pipelines, Repos, AD notifications, and GitHub.

    Add media content

    Samples of four features: 'Share news stories', 'Share YouTube videos', 'Share Stream content', and 'Add RSS feeds'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Enrich Teams conversations with media, and keep a library of video resources

    • Search for and add specific news stories to a chat or channel. See recent news stories in search.
    • Search, share, and watch YouTube videos.
    • Share video links from Microsoft Stream.
    • Add RSS feeds.

    Knowledge management

    Samples of four features: 'SharePoint Pages', 'SharePoint document library', 'SharePoint News', and 'Who'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Pull together document libraries and make information easier to find

    • Add a page from an existing SharePoint site to a Team as a tab.
    • Add a SharePoint document library to a Team as a tab.
    • Search names of members of your organization to learn about their role, place in the organizational structure, and contact information.

    Increase meeting effectiveness

    Samples of four features: 'Take meeting notes', 'Set up a Q&A', 'Use live captions', and 'Record and transcribe meetings'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Facilitate interactions and document meeting outcomes

    • Take simple notes during a meeting.
    • Start conversations and ask and answer questions in a dedicated Q&A space during the Teams meeting.
    • Turn on live captions during the meeting.
    • Record a meeting and automatically generate a transcript of the meeting.
    • Assign attendees to breakout rooms.
    • Track the effectiveness of the meeting by producing an attendance report with the number of attendees, the meeting start/end time, a list of the attendees, and participation in activities.

    Increase employee engagement

    Samples of four features: 'Send praise', 'Build an avatar', 'Add video effects', and 'Play games during meetings'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Use features that enhance social interaction among Teams users

    • Send supportive comments to colleagues using Praise.
    • Build out digital avatars to toggle on during meetings instead of your own video.
    • Apply different visual effects, filters, and backgrounds to your screen during meetings.
    • Games for Work: Launch icebreaker games during a meeting.
    • Translate a Teams message from another language to your default language.
    • Send emojis, GIFs, and stickers in messages or as reactions to others' messages. You can also send reactions live during meetings to increase meeting engagement.

    Enhance professional development

    Samples of four features: 'Launch Viva Learning', 'Turn on Speaker Coach', 'Viva Insights', and 'Viva Goals'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    Connect with learning resources and apply data-driven feedback based on Teams usage

    • Add learning materials from various course catalogs in Viva Learning.
    • Speaker Coach: Receive AI feedback on your performance as a speaker during a meeting.
    • Receive automatically generated insights and suggestions from Viva Insights on work habits and time allocation to different work activities.
    • Viva Goals: Track organizational "objectives and key results"/manage organizational goals

    Provide or access support

    Samples of four features: 'Access MS Support', 'Manage Teams & M365', 'Deploy power virtual agents', and 'Consult MS resource center'.

    Download the Microsoft Teams Planning Tool for an expanded list of features & apps

    IT and user-facing resources for accessing or providing support

    • Admin: Carry out simple Teams management tasks (for IT).
    • Power Virtual Agents: Build out chatbots to answer user questions (can be built by IT and end users for their customers).
    • Resource Center: A combination of pre-built Microsoft resources (tips, templates) with resources provided by organizational IT.
    • Support: Access Microsoft self-serve knowledgebase articles (for IT).

    Add third-party apps

    Understand the availability/restrictions of the built-in Teams app catalog

    • App add-ins are not limited to those built by Microsoft Corporation. The Teams app store also features a plethora of third-party apps that may provide value.
    • However, being able to view an app in the app store does not necessarily mean it's supported or licensed by your organization.
    • Teams will allow users to request access to apps, which will then be evaluated by your IT support team. Follow your service desk's recommended request process for requesting and justifying the addition of a new Teams app that is not currently supported.
    • Before making the request, investigate existing Teams features to determine if the functionality is already available.

    Research contributors

    Mike Cavanagh
    Global Service Desk Manager
    Clearwater Seafoods LP

    Info-Tech contributors:

    Benedict Chang, Senior Advisory Analyst

    John Donovan, Principal Research Director

    Allison Kinnaird, Practice Lead

    P.J. Ryan, Research Director

    Natalie Sansone, Research Director

    Christine West, Managing Partner

    Related Info-Tech Research

    Sample of the 'Reduce Shadow IT with a Service Request Catalog' blueprint.

    Reduce Shadow IT With a Service Request Catalog

    Foster business relationships through sourcing-as-a-service. There is a direct correlation between service delivery dissatisfaction and increases in shadow IT. Whether the goal is to reduce shadow IT or gain control, improved customer service and fast delivery are key to making lasting changes.

    Sample of the 'Microsoft Teams Cookbook' blueprint.

    Microsoft Teams Cookbook

    Recipes for best practices and use cases for Teams. Microsoft Teams is not a standalone app. Successful utilization of Teams occurs when conceived in the broader context of how it integrates with M365. Understanding how information flows between Teams, SharePoint Online, and OneDrive for Business, for instance, will aid governance with permissions, information storage, and file sharing.

    Sample of the 'Govern Office 365 (M365)' blueprint.

    Govern Office 365

    You bought it. Use it right. Map your organizational goals to the administration features available in the Office 365/M365 console. Your governance should reflect your requirements.

    Bibliography

    Mehta, Tejas. “The Home Site App for Microsoft Teams.” Microsoft Community Hub. https://techcommunity.microsoft.com/t5/microsoft-sharepoint-blog/the-home-site-app-for-microsoft-teams/ba-p/1714255.

    Overview: Viva Connections. 7 Mar. 2023, https://learn.microsoft.com/en-us/viva/connections/viva-connections-overview.

    Rogers, Laura. “SharePoint Home Site in Teams.” Wonderlaura, 24 Jun 2021. https://wonderlaura.com/2021/06/24/sharepoint-home...

    Schubert, Petra, and Johannes H. Glitsch. “Adding Structure to Enterprise Collaboration Systems: Identification of Use Cases and Collaboration Scenarios.” Procedia Computer Science, vol. 64, Jan. 2015, pp. 161–69. ScienceDirect, https://doi.org/10.1016/j.procs.2015.08.477.

    Schubert, Petra, and Johannes Glitsch. “Use Cases and Collaboration Scenarios: How Employees Use Socially-Enabled Enterprise Collaboration Systems (ECS).” International Journal of Information Systems and Project Management, vol. 4, no. 2, Jan. 2016, pp. 41–62.

    Thompson, Mark. “User Requests for Blocked Apps in the Teams Store.” Supersimple365, 5 Apr 2022, https://supersimple365.com/user-requests-for-apps-...

    “What is Microsoft Teams Premium?” Breakwater IT, n.d., https://breakwaterit.co.uk/guides/microsoft-teams-...

    Wills, Jonny. “Microsoft Teams Monthly Users Hits 280 Million.” UC Today, 25 Jan. 2023, https://www.uctoday.com/unified-communications/microsoft-teams-monthly-users-hits-280-million/.

    2021 IT Talent Trend Report

    • Buy Link or Shortcode: {j2store}516|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
    • member rating average dollars saved: $9,919 Average $ Saved
    • member rating average days saved: 2 Average Days Saved
    • Parent Category Name: Lead
    • Parent Category Link: /lead
    • In March 2020, many organizations were forced to switch to a virtual working world. IT enabled organizations to be successful while working from home. Ultimately, this shift changed the way that we all work, and in turn, the way IT leaders manage talent.
    • Many organizations are considering long-term remote work (Kelly, 2020).
    • Change is starting but is lagging.

    Our Advice

    Critical Insight

    • Increase focus on employee experience to navigate new challenges.
    • A good employee experience is what is best for the IT department.

    Impact and Result

    • The data shows IT is changing in the area of talent management.
    • IT has a large role in enabling organizations to work from home, especially from a technological and logistics perspective. There is evidence to show that they are now expanding their role to better support employees when working from home.
    • Survey respondents identified efforts already underway for IT to improve employee experience and subsequently, IT effectiveness.

    2021 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 the employee experience and get an overview of what successful IT leaders are doing differently heading into 2021 – the five new talent management trends.

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

    1. DEI: A top talent objective

    The focus on diversity, equity, and inclusion (DEI) initiatives spans the entire organization beyond just HR. Learn which DEI efforts are underway with IT.

    • 2021 IT Talent Trend Report – Trend 1: DEI: A Top Talent Objective

    2. Remote work is here to stay

    Forced work-from-home demonstrated to organizations that employees can be productive while working away from the physical office. Learn more about how remote work is changing work.

    • 2021 IT Talent Trend Report – Trend 2: Remote Work Is Here to Stay

    3. A greater emphasis on wellbeing

    When the pandemic hit, organizations were significantly concerned about how employees were doing. Learn more about wellbeing.

    • 2021 IT Talent Trend Report – Trend 3: A Greater Emphasis on Wellbeing

    4. A shift in skills priorities

    Upskilling and finding sought after skills were challenging before the pandemic. How has it changed since? Learn more about skills priorities.

    • 2021 IT Talent Trend Report – Trend 4: A Shift in Skills Priorities

    5. Uncertainty unlocks performance

    The pandemic and remote work has affected performance. Learn about how uncertainty has impacted performance management.

    • 2021 IT Talent Trend Report – Trend 5: Uncertainty Unlocks Performance
    [infographic]

    Select and Implement a Social Media Management Platform

    • Buy Link or Shortcode: {j2store}554|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
    • The proliferation of social media networks, customer data, and use cases has made ad hoc social media management challenging.
    • Many organizations struggle with shadow IT when it comes to technology enablement for social media; SMMP fragmentation leads to increased costs and no uniformity in enterprise social media management capabilities.

    Our Advice

    Critical Insight

    • SMMP selection must be driven by your overall customer experience management strategy; link your SMMP selection to your organization’s CXM framework.
    • Shadow IT will dominate if IT does not step in. Even more so than other areas, SMMP selection is rife with shadow IT.
    • Ensure strong points of integration between SMMP and other software such as CRM. SMMPs can contribute to a unified, 360-degree customer view.

    Impact and Result

    • The value proposition of SMMPs revolves around enhancing the effectiveness and efficiency of social media. Using an SMMP to manage social media is considerably more cost effective than ad hoc (manual) management.
    • IT must partner with other departments (e.g. Marketing) to successfully evaluate, select, and implement an SMMP. Before selecting an SMMP, the organization must have a solid overall strategy for leveraging social media in place. If IT does not work as a trusted advisor to the business, shadow IT in social media management will be rampant.

    Select and Implement a Social Media Management Platform Research & Tools

    Start here – read the Executive Brief

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

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

    1. Develop a technology enablement approach

    Conduct a maturity assessment to determine whether a dedicated SMMP is right for your organization.

    • Select and Implement a Social Media Management Platform – Phase 1: Develop a Technology Enablement Approach for Social Media
    • Social Media Maturity Assessment Tool
    • Social Media Opportunity Assessment Tool
    • SMMP Use-Case Fit Assessment Tool

    2. Select an SMMP

    Use the Vendor Landscape findings and project guidance to develop requirements for your SMMP RFP, and evaluate and shortlist vendors based on your expressed requirements.

    • Select and Implement a Social Media Management Platform – Phase 2: Select an SMMP
    • SMMP Vendor Shortlist & Detailed Feature Analysis Tool
    • SMMP Vendor Demo Script
    • SMMP RFP Template
    • SMMP RFP Evaluation and Scoring Tool
    • Vendor Response Template

    3. Review implementation considerations

    Even a solution that is a perfect fit for an organization will fail to generate value if it is not properly implemented or measured. Conduct the necessary planning before implementing your SMMP.

    • Select and Implement a Social Media Management Platform – Phase 3: Review Implementation Considerations
    • Social Media Steering Committee Charter Template
    [infographic]

    Workshop: Select and Implement a Social Media Management Platform

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

    1 Launch Your SMMP Selection Project

    The Purpose

    Discuss the general project overview for the SMMP selection.

    Key Benefits Achieved

    Determine your organization’s readiness for SMMP.

    Activities

    1.1 Identify organizational fit for the technology.

    1.2 Evaluate social media opportunities within your organization.

    1.3 Determine the best use-case scenario for your organization.

    Outputs

    Organizational maturity assessment

    SMMP use-case fit assessment

    2 Plan Your Procurement and Implementation Process

    The Purpose

    Plan the procurement and implementation of the SMMP.

    Key Benefits Achieved

    Select an SMMP.

    Review implementation considerations.

    Activities

    2.1 Review use-case scenario results, identify use-case alignment

    2.2 Review the SMMP Vendor Landscape vendor profiles and performance.

    2.3 Create a custom vendor shortlist and investigate additional vendors for exploration in the marketplace.

    2.4 Meet with the project manager to discuss results and action items.

    Outputs

    Vendor shortlist

    SMMP RFP

    Vendor evaluations

    Selection of an SMMP

    Framework for SMMP deployment and integration

    Further reading

    Select and Implement a Social Media Management Platform

    Rein in social media by choosing a management platform that’s right for you.

    ANALYST PERSPECTIVE

    Enterprise use of social media for customer interaction has exploded. Select the right management platform to maximize the value of your social initiatives.

    Social media has rapidly become a ubiquitous channel for customer interaction. Organizations are using social media for use cases from targeted advertising, to sales prospecting, to proactive customer service. However, the growing footprint of social media initiatives – and the constant proliferation of new social networks – has created significant complexity in effectively capturing the value of social.

    Organizations that are serious about social manage this complexity by leveraging dedicated social media management platforms. These platforms provide comprehensive capabilities for managing multiple social media networks, creating engagement and response workflows, and providing robust social analytics. Selecting a best-fit SMMP allows for standardized, enterprise-wide capabilities for managing all aspects of social media.

    This report will help you define your requirements for social media management and select a vendor that is best fit for your needs, as well as review critical implementation considerations such as CRM integration and security.

    Ben Dickie
    Research Director, Enterprise Applications
    Info-Tech Research Group

    Executive summary

    Situation

    • Social media has reached maturity as a proven, effective channel for customer interaction across multiple use cases, from customer analytics to proactive customer service.
    • Organizations are looking to IT to provide leadership with social media technology enablement and integration with other enterprise systems.

    Complication

    • The proliferation of social media networks, customer data, and use cases has made ad hoc social media management challenging.
    • Many organizations struggle with shadow IT when it comes to technology enablement for social media; SMMP fragmentation leads to increased costs and no uniformity in enterprise social media management capabilities.

    Resolution

    • Social media management platforms (SMMPs) reduce complexity and increase the results of enterprise social media initiatives. SMMPs integrate with a variety of different social media services, including Facebook, Twitter, LinkedIn, and YouTube. The platforms offer a variety of tools for managing social media, including account management, in-band response and engagement, and social monitoring and analytics.
    • The value proposition of SMMPs revolves around enhancing the effectiveness and efficiency of social media. Using an SMMP to manage social media is considerably more cost effective than ad hoc (manual) management.
    • IT must partner with other departments (e.g. Marketing) to successfully evaluate, select, and implement an SMMP. Before selecting an SMMP, the organization must have a solid overall strategy for leveraging social media in place. If IT does not work as a trusted advisor to the business, shadow IT in social media management will be rampant.

    Info-Tech Insight

    1. SMMP selection must be driven by your overall customer experience management strategy: link your SMMP selection to your organization’s CXM framework.
    2. Shadow IT will dominate if IT does not step in: even more so than other areas, SMMP selection is rife with shadow IT.
    3. Ensure strong points of integration between SMMP and other software such as customer relationship management (CRM). SMMPs can contribute to a unified, 360-degree customer view.

    Framing the SMMP selection and implementation project

    This Research Is Designed For:
    • IT directors advising the business on how to improve the effectiveness and efficiency of social media campaigns through technology.
    • IT professionals involved in evaluating, selecting, and deploying an SMMP.
    • Business analysts tasked with collection and analysis of SMMP business requirements.
    This Research Will Help You:
    • Clearly link your business requirements to SMMP selection criteria.
    • Select an SMMP vendor that meets your organization’s needs across marketing, sales, and customer service use cases.
    • Adopt standard operating procedures for SMMP deployment that address issues such as platform security and CRM integration.
    This Research Will Also Assist:
    • Executive-level stakeholders in the following roles:
      • Vice-president of Sales, Marketing, or Customer Service.
      • Business unit managers tasked with ensuring strong end-user adoption of an SMMP.
    This Research Will Help Them
    • Understand what’s new in the SMMP market.
    • Evaluate SMMP vendors and products for your enterprise needs.
    • Determine which products are most appropriate for particular use cases and scenarios.

    Social media management platforms augment social capabilities within a broader customer experience ecosystem

    Customer Experience Management (CXM)

    'Customer Relationship Management Platform' surrounded by supporting capabilities, one of which is highlighted, 'Social Media Management Platform'.

    Social Media Management Platforms are one piece of the overall customer experience management ecosystem, alongside tools such as CRM platforms and adjacent point solutions for sales, marketing, and customer service. Review Info-Tech’s CXM blueprint to build a complete, end-to-end customer interaction solution portfolio that encompasses SMMP alongside other critical components. The CXM blueprint also allows you to develop strategic requirements for SMMP based on customer personas and external market analysis.

    SMMPs reduce complexity and increase the effectiveness of enterprise social media programs

    • SMMPs are solutions (typically cloud based) that offer a host of features for effectively monitoring the social cloud and managing your organization’s presence in the social cloud. SMMPs give businesses the tools they need to run social campaigns in a timely and cost-effective manner.
    • The typical SMMP integrates with two or more social media services (e.g. Facebook, Twitter) via the services’ API or a dedicated connector. SMMPs are not simply a revised “interface layer” for a single social media service. They provide layers for advanced management and analytics across multiple services.
    • The unique value of SMMPs comes from their ability to manage and track multiple social media services. Aggregating and managing data from multiple services gives businesses a much more holistic view of their organization’s social initiatives and reputation in the social cloud.
    Diagram with 'End Users (e.g. marketing managers)' at the top and social platforms like Facebook and Twitter at the bottom; in between them are 'SMMPs’: 'Account & Campaign Management', 'Social Engagement', and 'Social Monitoring/Analytics'.
    SMMPs mediate interactions between end users and the social cloud.

    Info-Tech Best Practice

    The increasing complexity of social media, coupled with the rising importance of social channels, has led to a market for formal management platforms. Organizations with an active presence in social media (i.e. multiple services or pages) should strongly consider selecting and deploying an SMMP.

    Failing to rein in social media initiatives leads to more work, uninformed decisions, and diminishing returns

    • The growth of social media services has made manually updating pages and feeds an ineffective and time-consuming process. The challenge is magnified when multiple brands, product lines, or geographic subsidiaries are involved.
      • Use the advanced account management features of an SMMP to reduce the amount of time spent updating social media services.
    • Engaging customers through social channels can be a delicate task – high volumes of social content can easily overwhelm marketing and service representatives, leading to missed selling opportunities and unacceptable service windows.
      • Use the in-band engagement capabilities of an SMMP to create an orderly queue for social interactions.
    • Consumer activity in the social cloud has been increasing exponentially. As the volume of content grows, separating the signal from the noise becomes increasingly difficult.
      • Use the advanced social analytics of an SMMP to ensure critical consumer insights are not overlooked.
    Ad Hoc Management vs. SMMPs:
    What’s the difference?

    Ad Hoc Social Media Management

    Social media initiatives are managed directly through the services themselves. For example, a marketing professional would log in to multiple corporate Twitter accounts to post the same content for a promotional campaign.

    Social Media Management Platform

    Social media initiatives are managed through a third-party software platform. For example, a marketing professional would update all social account simultaneously with just a couple clicks. SMMPs also provide cross-service social analytics – highly valuable for decision makers!

    Info-Tech Best Practice

    Effectively managing a social media campaign is not a straightforward exercise. If you have (or plan to have) a large social media footprint, now is the time to procure formal software tools for social media management. Continuing to manage social media in an ad hoc manner is sapping time and money.

    Review the critical success factors for SMMP across the project lifecycle, from planning to post-implementation

    Info-Tech Insight

    Executive management support is crucial. The number one overall critical success factor for an SMMP strategy is top management support. This emphasizes the importance of sales, service, and marketing and prudent corporate strategic alignment. A strategic objective in SMMP projects is to position top management as an enabler rather than a barrier.

    Planning Implementation Post-Implementation Overall
    1 Appropriate Selection Project Management Top Management Support Top Management Support
    2 Clear Project Goals Top Management Support Project Management Appropriate Selection
    3 Top Management Support Training Training Project Management
    4 Business Mission and Vision Effective Communication Effective Communication Training
    5 Project Management Supplier Supports Appropriate Selection Clear Project Goals

    (Source: Information Systems Frontiers)

    Dell uses a dedicated social media management platform to power a comprehensive social command center

    CASE STUDY

    Industry: High-Tech | Source: Dell
    With a truly global customer base, Dell gets about 22,000 mentions on the social web daily, and does not sit idly by. Having established a physical Social Media Command Center powered by Salesforce’s Social Studio, Dell was one of the companies that pioneered the command center concept for social response.

    The SMMP carries out the following activities:

    • Tracking mentions of Dell in the social cloud
    • Sentiment analysis
    • Connecting customers who need assistance with experts who can help them
    • Social media training
    • Maintenance of standards for social media interactions
    • Spreading best social media practices across the organization

    Today the company claims impressive results, including:

    • “Resolution rate” of 99% customer satisfaction
    • Boosting its customer reach with the same number of employees
    • One third of Dell’s former critics are now fans

    Logo for Dell.

    Tools:
    • Salesforce Social Studio
    • Three rows of monitors offering instant insights into customer sentiment, share of voice, and geography.
    Staff:
    • The center started with five people; today it is staffed by a team of 15 interacting with customers in 11 languages.
    • Dell values human interaction; the center is not running on autopilot, and any ambiguous activity is analyzed (and dealt with) manually on an individual basis.

    Follow Info-Tech’s methodology for selection and implementation of enterprise applications

    Prior to embarking on the vendor selection stage, ensure you have set the right building blocks and completed the necessary prerequisites.

    Diagram with 'Enterprise Applications' at the center surrounded by a cycle of 'conceptual', 'consensus', 'concrete', and 'continuous'. The outer circle has three categories with three actions each, 'Governance and Optimization: Process Optimization, Support/ Maintenance, Transition to Operations', 'Strategy and Alignment: Foundation, Assessment, Strategy/ Business Case', and 'Implementation: System Implementation, Business Process Management, Select and Implement'. Follow Info-Tech’s enterprise applications program that covers the application lifecycle from the strategy stage, through selection and implementation, and up to governance and optimization.

    The implementation and execution stage entails the following steps:

    1. Define the business case.
    2. Gather and analyze requirements.
    3. Build the RFP.
    4. Conduct detailed vendor evaluations.
    5. Finalize vendor selection.
    6. Review implementation considerations.

    Info-Tech Insight

    A critical preceding task to selecting a social media management platform is ensuring a strategy is in place for enterprise social media usage. Use our social media strategy blueprint to ensure the foundational elements are in place prior to proceeding with platform selection.

    Use this blueprint to support your SMMP selection and implementation

    Launch the SMMP Project and Collect Requirements — Phase 1

    Benefits — Use the project steps and activity instructions outlined in this blueprint to streamline your selection process and implementation planning. Save time and money, and improve the impact of your SMMP selection by leveraging Info-Tech’s research and project steps.

    Select Your SMMP Solution — Phase 2

    Use Info-Tech’s SMMP Vendor Landscape contained in Phase 2 of this project to support your vendor reviews and selection. Refer to the use-case performance results to identify vendors that align with the requirements and solution needs identified by your earlier project findings.

    Get Ready for Your SMMP Implementation — Phase 3

    Info-Tech Insight — Not everyone’s connection and integration needs are the same. Understand your own business’s integration environment and the unique technical and functional requirements that accompany them to create criteria and select a best-fit SMMP solution.

    Use Info-Tech’s use-case scenario approach to select a best-fit solution for your business needs

    Readiness

    Determine where you are right now and where your organization needs to go with a social media strategy.

    Three stages eventually leading to shapes in a house, 'Distributed Stage', 'Loosely Coupled Stage', and 'Command Center Stage'.
    Use-Case Assessment

    Identify the best-fit use-case scenario to determine requirements that best align with your strategy.

    Three blocks labelled 'Social Listening & Analytics', 'Social Customer Care', and 'Social Publishing & Campaign Management'.
    Selection

    Approach vendor selection through a use-case centric lens to balance the need for different social capabilities.

    Logos for vendors including Adobe, Hootsuite, CISION, and more.

    Info-Tech walks you through the following steps to help you to successfully select and implement your SMMP

    Steps of this blueprint represented by circles of varying colors and sizes, labelled by text of different sizes.

    Locate your starting point in the research based on the current stage of your project.

    Legend for the diagram above: lines represent Major Milestones, size of circles represent Low or High effort, size of text represents Average or Greater importance, and color of the circles represents the phase.

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

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting

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

    Diagnostics and consistent frameworks used throughout all four options

    Select and Implement a Social Media Management Platform – project overview

    1. Develop a Technology Enablement Approach 2. Select an SMMP 3. Review Implementation Considerations
    Supporting Tool icon

    Best-Practice Toolkit

    1.1 Determine if a dedicated SMMP is right for your organization

    • Social Media Maturity Assessment Tool
    • Social Media Opportunity Assessment Tool

    1.2 Use an SMMP to enable marketing, sales, and service use cases

    • SMMP Use-Case Fit Assessment Tool

    2.1 SMMP Vendor Landscape

    • CRM Suite Evaluation and RFP Scoring Tool

    2.2 Select your SMMP

    • SMMP Vendor Demo Script Template
    • SMMP RFP Template

    3.1 Establish best practices for SMMP implementation

    • Social Media Steering Committee

    3.2 Assess the measured value from the project

    Guided Implementations

    • Identify organizational fit for the technology.
    • Evaluate social media opportunities within your organization.
    • Evaluate which SMMP use-case scenario is best fit for your organization
    • Discuss the use-case fit assessment results and the Vendor Landscape.
    • Review contract.
    • Determine what is the right governance structure to overlook the SMMP implementation.
    • Identify the right deployment model for your organization.
    • Identify key performance indicators for business units using an SMMP.
    Associated Activity icon

    Onsite Workshop

    Module 1:
    Launch Your SMMP Selection Project
    Module 2:
    Plan Your Procurement and Implementation Process
    Phase 1 Outcome:
    • Social Media Maturity Assessment
    • SMMP Use-Case Assessment
    Phase 2 Outcome:
    • Selection of an SMMP
    Phase 3 Outcome:
    • A plan for implementing the selected SMMP

    SMMP selection and implementation workshop overview

    Associated Activity icon Contact your account representative or email Workshops@InfoTech.com for more information.

    Day 1

    Preparation

    Day 2

    Workshop Day

    Day 3

    Workshop Day

    Day 4

    Workshop Day

    Day 5

    Working Session

    Workshop Preparation
    • Facilitator meets with the project manager and reviews the current project plans and IT landscape of the organization.
    • A review of scheduled meetings and engaged IT and business staff is performed.
    Morning Itinerary
    • Conduct activities from Develop a technology enablement approach for social media phase, including social media maturity and readiness assessment.
    • Conduct overview of the market landscape, trends, and vendors.
    Afternoon Itinerary
    • Interview business stakeholders.
    • Prioritize SMMP requirements.
    Morning Itinerary
    • Perform a use-case scenario assessment.
    Afternoon Itinerary
    • Review use-case scenario results; identify use-case alignment.
    • Review the SMMP Vendor Landscape vendor profiles and performance.
    Morning Itinerary
    • Continue review of SMMP Vendor Landscape results and use-case performance results.
    Afternoon Itinerary
    • Create a custom vendor shortlist.
    • Investigate additional vendors for exploration in the market.
    Workshop Debrief
    • Meet with project manager to discuss results and action items.
    • Wrap up outstanding items from workshop.
    (Post-Engagement): Procurement Support
    • The facilitator will support the project team to outline the RFP contents and evaluation framework.
    • Planning of vendor demo script. Input: solution requirements and use-case results.
    Example of a light blue slide. The light blue slides at the end of each section highlight the key activities and exercises that will be completed during the engagement with our analyst team.

    Use these icons to help direct you as you navigate this research

    Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

    A small monochrome icon of a wrench and screwdriver creating an X.

    This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.

    A small monochrome icon depicting a person in front of a blank slide.

    This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members who will come onsite to facilitate a workshop for your organization.

    A small monochrome icon depicting a descending bar graph.

    This icon denotes a slide that pertains directly to the Info-Tech vendor profiles on marketing management technology. Use these slides to support and guide your evaluation of the MMS vendors included in the research.

    Select and Implement a Social Media Management Platform

    PHASE 1

    Develop a Technology Enablement Approach for Social Media

    Phase 1: Develop a technology enablement approach for social media

    Steps of this blueprint represented by circles of varying colors and sizes, labelled by text of different sizes. Only Phase 1 is highlighted.
    Estimated Timeline: 1-3 Months

    Info-Tech Insight

    Before an SMMP can be selected, the organization must have a strategy in place for enterprise social media. Implementing an SMMP before developing a social media strategy would be akin to buying a mattress without knowing the size of the bed frame.

    Major Milestones Reached
    • Project launch
    • Completion of requirements gathering and documentation

    Key Activities Completed

    • Readiness assessment
    • Project plan / timeline
    • Stakeholder buy-in
    • Technical assessment
    • Functional assessment

    Outcomes from This Phase

    Social Media Maturity Assessment

    Phase 1 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Develop a technology enablement approach for social media

    Proposed Time to Completion: 2 weeks
    Step 1.1: Determine if a dedicated SMMP is right for your organization Step 1.2: Use an SMMP to enable marketing, sales, and service use cases
    Start with an analyst kick-off call:
    • Assess your readiness for the SMMP project.
    • Evaluate social media opportunities within your organization.
    Review findings with analyst:
    • Discuss how an SMMP can assist with marketing, sales, and customer service.
    • Evaluate which SMMP use case scenario is best fit for your organization.
    Then complete these activities…
    • Assess your social media maturity.
    • Inventory social media networks to be supported by the SMMP.
    Then complete these activities…
    • Assess best-fit use-case scenario.
    • Build the metrics inventory.
    With these tools & templates:
    • Social Media Maturity Assessment Tool
    • Social Media Opportunity Assessment Tool
    With these tools & templates:
    • SMMP Use-Case Fit Assessment Tool
    Phase 1 Results & Insights:
    • Social Media Maturity Assessment
    • SMMP Use-Case Assessment

    Phase 1, Step 1: Determine if a dedicated SMMP is right for your organization

    1.1

    1.2

    Determine if a dedicated SMMP is right for your organization Use an SMMP to enable marketing, sales, and service use cases

    This step will walk you through the following activities:

    • Assess where your organization sits on the social media maturity curve.
    • Inventory the current social media networks that must be supported by the SMMP.
    • Go/no-go assessment on SMMP.

    This step involves the following participants:

    • Digital Marketing Executive
    • Digital Strategy Executive
    • Business stakeholders

    Outcomes of this step

    • Social media maturity assessment
    • Inventory of enterprise social media
    • SMMP Go/no-go decision

    Before selecting an SMMP, start with the fundamentals: build a comprehensive strategy for enterprise social media

    Why build a social media strategy?

    • Social media is neither a fad nor a phenomenon; it is simply another tool in the business process. Social channels do not necessitate a radical departure from the organization’s existing customer interaction strategy. Rather, social media should be added to your channel mix and integrated within the existing CRM strategy.
    • Social media allows organizations to form direct and indirect connections through the Friend-of-a-Friend (FOAF) model, which increases the credibility of the information in the eyes of the consumer.
    • Social media enables organizations to share, connect, and engage consumers in an environment where they are comfortable. Having a social media presence is rapidly becoming a pre-requisite for successful business-to-consumer enterprises.

    Important considerations for an enterprise social media strategy:

    • Determine how social media will complement existing customer interaction goals.
    • Assess which social media opportunities exist for your organization.
    • Consider the specific goals you want to achieve using social channels and pick your services accordingly.
    • Not all social media services (e.g. Facebook, Twitter, LinkedIn) are equal. Consider which services will be most effective for goal achievement.
    For more information on developing a strategy for enterprise social media, please refer to Info-Tech’s research on Social Media.

    Implement a social media strategy by determining where you are right now and where your organization needs to go

    Organizations pass through three main stages of social media maturity: distributed, loosely coupled, and command center. As you move along the maturity scale, the business significance of the social media program increases. Refer to Info-Tech’s Implement a Social Media Program for guidance on how to execute an ongoing social media program.
    The y-axis 'Business Significance'.

    Distributed Stage

    Shapes labelled 'Sales', 'Customer Service', and 'Marketing'.

    • Open-source or low-cost solutions are implemented informally by individual depts. for specific projects.
    • Solutions are deployed to fulfill a particular function without an organizational vision. The danger of this stage is lack of consistent customer experience and wasted resources.

    Loosely Coupled Stage

    Same shapes with the addition of 'PR' and surrounded by a dotted-line house.

    • More point solutions are implemented across the organization. There is a formal cross-departmental effort to integrate some point solutions.
    • Risks include failing to put together an effective steering committee and not including IT in the decision-making process.

    Command Center Stage

    Same shapes with a solid line house.

    • There’s enterprise-level steering committee with representation from all areas: execution of social programs is handled by a fully resourced physical (or virtual) center.
    • Risks include improper resource allocation and lack of end-user training.
    The x-axis 'Maturity Stages'.
    Optimal stages for SMMP purchase

    Assess where your organization sits on the social media maturity curve

    Associated Activity icon 1.1.1 30 Minutes

    INPUT: Social media initiatives, Current status

    OUTPUT: Current State Maturity Assessment

    MATERIALS: Whiteboard, Markers, Sticky notes

    PARTICIPANTS: Digital Strategy Executive, Business stakeholders

    Before you can move to an objective assessment of your social media program’s maturity, take an inventory of your current efforts across different departments (e.g. Marketing, PR, Sales, and Customer Service). Document the results in the Social Media Maturity Assessment Tool to determine your social media readiness score.

    Department Social Media Initiative(s) Current Status
    Marketing Branded Facebook page with updates and promotions Stalled: insufficient resources
    Sales LinkedIn prospecting campaign for lead generation, qualification, and warm open Active: however, new reps are poorly trained on LinkedIn prospect best practices
    Customer Service Twitter support initiative: mentions of our brand are paired with sentiment analysis to determine who is having problems and to reach out and offer support Active: program has been highly successful to date
    HR Recruitment campaign through LinkedIn and Branch Out Stalled: insufficient technology support for identifying leading candidates
    Product Development Defect tracking for future product iterations using social media Partially active: Tracked, but no feedback loop present
    Social Media Maturity Level Distributed

    Determine your organization’s social media maturity with Info-Tech’s Maturity Assessment Tool

    Supporting Tool icon 1.1 Social Media Maturity Assessment Tool

    Assessing where you fit on the social media maturity continuum is critical for setting the future direction of your social media program. We’ll work through a short tool that assesses the current state of your social media program, then discuss the results.

    Info-Tech’s Social Media Maturity Assessment Tool will help you determine your company’s level of maturity and recommend steps to move to the next level or optimize the status quo of your current efforts.

    INFO-TECH TOOL Sample of the Social Media Current State Assessment.

    The social cloud is a dominant point of interaction: integrate social channels with existing customer interaction channels

    • Instead of thinking of customers as an island, think of them interacting with each other and with organizations in the social cloud. As a result, the social cloud itself becomes a point of interaction, not just individual customers.
    • The social cloud is accessible with services like social networks (e.g. Facebook) and micro-blogs (Twitter).
    • Previous lessons learned from the integration of Web 1.0 e-channels should be leveraged as organizations add the social media channel into their overall customer interaction framework:
      • Do not design exclusively around a single channel. Design hybrid-channel solutions that include social channels.
      • Balance customer segment goals and attributes, product and service goals and attributes, and channel capabilities.
    The 'Web 2.0 Customer Interaction Framework' with 'Social Cloud' above, connected to the below through 'Conversations & Information'. Below are two categories with their components interconnected, 'Communication Channels: Face to Face, Phone, E-mail, Web, and Social Media' and 'Customer Experience Management: Marketing, Sales, and Service'.

    Info-Tech Best Practice

    Don’t believe that social channel integration will require an entire rebuild of your CXM strategy. Social channels are just new interaction channels that need to be integrated – as you’ve done in the past with Web 1.0 e-channels.

    Understand the different types of social media services and how they link to social media strategy and SMMP selection

    Before adopting an SMMP, it’s important to understand the underlying services they manage. Social media services facilitate the creation and dissemination of user-generated content, and can be grouped according to their purpose and functionality:
    • Social Networking: Social networking services use the Friend-of-a-Friend model to allow users to communicate with their personal networks. Users can share a wide variety of information and media with one another. Social networking sites include Facebook and LinkedIn.
    • Blogging: Blogs are websites that allow users to upload text and media entries, typically displayed in reverse-chronological order. Prominent blogging services include Blogger and WordPress.
    • Micro-Blogging: Micro-blogging is similar to blogging, with the exception that written content is limited to a set number of characters. Twitter, the most popular service, allows users to post messages up to 140 characters.
    • Social Multimedia: Social multimedia sites provide an easy way for users to upload and share multimedia content (e.g. pictures, video) with both their personal contacts as well as the wider community. YouTube is extremely popular for video sharing, while Instagram is a popular option for sharing photos and short videos.

    Info-Tech Best Practice

    In many cases, services do not fit discretely within each category. With minor exceptions, creating an account on a social media service is free, making use of these services extremely cost effective. If your organization makes extensive use of a particular service, ensure it is supported by your SMMP vendor.

    Four categories of social media company logos: 'Social multimedia', 'Micro-blogging', 'Blogging', and 'Social Networking'.

    Inventory the current social media networks that must be supported by the SMMP

    Associated Activity icon 1.1.2

    INPUT: Social media services

    OUTPUT: Inventory of enterprise social media

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project team

    1. List all existing social media networks used by your organization.
    2. For each network, enumerate all the accounts that are being used for organizational objectives.
    3. Identify the line of business that administers and manages each service.
    Network Use Case Account Ownership
    Facebook
    • Branding
    • Marketing
    • Social Monitoring
    • Facebook recruitment
    • Corporate Communications
    • Marketing
    Twitter
    • Social monitoring
    • Customer response
    • Corporate
    • Customer Service
    ... ... ...

    An explosion of social media services and functionality has made effectively managing social interactions a complex task

    • Effectively managing social channels is an increasingly complicated task. Proliferation of social media services and rapid end-user uptake has made launching social interactions a challenge for small and large organizations.
    • Using multiple social media services can be a nightmare for account management (particularly when each brand or product line has its own set of social accounts).
    • The volume of data generated by the social cloud has also created barriers for successfully responding in-band to social stakeholders (social engagement), and for carrying out social analytics.
    • There are two methods for managing social media: ad hoc management and platform-based management.
      • Ad hoc social media management is accomplished using the built-in functionality and administrative controls of each social media service. It is appropriate for small organizations with a very limited scope for social media interaction, but poses difficulties once “critical mass” has been reached.
    Comparison of 'Ad Hoc Management' with each social media platform managed directly by the user and 'Platform-Based Management' with social platforms managed by a 'SMMP' which is managed by the user.
    Ad hoc management results in a number of social media touch points. SMMPs serve as a single go-to point for all social media initiatives

    Info-Tech Best Practice

    Managing social media is becoming increasingly difficult to do through ad hoc methods, particularly for larger organizations and those with multiple brand portfolios. Ad hoc management is best suited for small organizations with an institutional client base who only need a bare bones social media presence.

    Select social media services that will achieve your specific objectives – and look for SMMPs that integrate with them

    What areas are different social media services helpful in?
    Domain Opportunity Consumer Social Networks (Facebook) Micro-Blogging (Twitter) Professional Social Networks (LinkedIn) Consumer Video Sharing Networks (YouTube)
    Marketing Building Positive Brand Image Green circle 'Proven Useful'. Green circle 'Proven Useful'. Dark Blue circle 'Potentially Useful'.
    Increase Mind Share Green circle 'Proven Useful'. Green circle 'Proven Useful'. Dark Blue circle 'Potentially Useful'.
    Gaining Customer Insights Green circle 'Proven Useful'. Green circle 'Proven Useful'. Green circle 'Proven Useful'. Dark Blue circle 'Potentially Useful'.
    Sales Gaining Sales Insights Dark Blue circle 'Potentially Useful'. Green circle 'Proven Useful'. Dark Blue circle 'Potentially Useful'.
    Increase Revenue Dark Blue circle 'Potentially Useful'. Green circle 'Proven Useful'. Dark Blue circle 'Potentially Useful'.
    Customer Acquisition Green circle 'Proven Useful'. Green circle 'Proven Useful'. Green circle 'Proven Useful'.
    Service Customer Satisfaction Green circle 'Proven Useful'. Green circle 'Proven Useful'. Green circle 'Proven Useful'. Green circle 'Proven Useful'.
    Increase Customer Retention Green circle 'Proven Useful'. Green circle 'Proven Useful'. Dark Blue circle 'Potentially Useful'.
    Reducing Cost of Service Dark Blue circle 'Potentially Useful'. Dark Blue circle 'Potentially Useful'. Dark Blue circle 'Potentially Useful'. Green circle 'Proven Useful'.

    Green circle 'Proven Useful'. Proven Useful*

    Dark Blue circle 'Potentially Useful'. Potentially Useful

    *Proven useful by Info-Tech statistical analysis carried out on a cross-section of real-world implementations.

    Social media is invaluable for marketing, sales, and customer service. Some social media services have a higher degree of efficacy than others for certain functions. Be sure to take this into account when developing a social media strategy.

    Info-Tech Best Practice

    Different social media services are more effective than others for different goals. For example, YouTube is useful as an avenue for marketing campaigns, but it’s of substantially less use for sales functions like lead generation. The services you select while planning your social media strategy must reflect concrete goals.

    Ad hoc social media management results in manual, resource-intensive processes that are challenging to measure

    • Most organizations that have pursued social media initiatives have done so in an ad hoc fashion rather than outlining a formal strategy and deploying software solutions (e.g. SMMP).
    • Social media is often a component of Customer Experience Management (CXM); Info-Tech’s research shows many organizations are handling CRM without a strategy in place, too.
    • Social media management platforms reduce the resource-intensive processes required for ongoing social media involvement and keep projects on track by providing reporting metrics.
    Social media and CRM are often being done without a defined strategy in place.

    Four-square matrix titled 'Strategy' presenting percentages with y-axis 'CRM', x-axis 'Social Media', both having two sections 'Ad hoc' and 'Defined'.
    Source: Info-Tech Survey, N=64

    Many processes related to social media are being done manually, despite the existence of SMMPs.

    Four-square matrix titled 'technology' presenting percentages with y-axis 'CRM', x-axis 'Social Media', both having two sections 'Ad hoc' and 'Defined'.

    “When we started our social media campaign, it took 34 man-hours a week. An SMMP that streamlines these efforts is absolutely an asset.” (Edie May, Johnson & Johnson Insurance Company)

    SMMPs provide functionality for robust account management, in-band customer response, and social monitoring/analytics

    • Features such as unified account management and social engagement capabilities boost the efficiency of social campaigns. These features reduce duplication of effort (e.g. manually posting the same content to multiple services). Leverage account management functionality and in-band response to “do more with less.”
    • Features such as comprehensive monitoring of the social cloud and advanced social analytics (i.e. sentiment analysis, trends and follower demographics) allow organizations to more effectively use social media. These features empower organizations with the information they need to make informed decisions around messaging and brand positioning. Use social analytics to zero in on your most important brand advocates.

    The value proposition of SMMPs revolves around enhancing the effectiveness and efficiency of social media initiatives.

    Three primary use cases for social media management:

    Social Listening & Analytics — Monitor and analyze a variety of social media services: provide demographic analysis, frequency analysis, sentiment analysis, and content-centric analysis.

    Social Publishing & Campaign Management — Executing marketing campaigns through social channels (e.g. Facebook pages).

    Social Customer Care — Track customer conversations and provide the ability to respond in-platform to social interactions.

    Info-Tech Best Practice

    SMMPs are a technology platform, but this alone is insufficient to execute a social media program. Organization and process must be integrated as well. See Info-Tech’s research on developing a social media strategy for a step-by-step guide on how to optimize your internal organization and processes.

    Social analytics vary: balance requirements among monitoring goals and social presence/property management

    Segment your requirements around common SMMP vendor product design points. Current market capabilities vary between two primary feature categories: social cloud monitoring and social presence and property management.

    Cloud-Centric

    Social Monitoring

    Content-Centric

    Social cloud monitoring enables:
    • Brand and product monitoring
    • Reputation monitoring
    • Proactive identification of service opportunities
    • Competitive intelligence
    Social presence and property management enables:
    • Monitor and manage discussions on your social properties (e.g. Twitter feeds, Facebook Pages, YouTube channels)
    • Execute marketing campaigns within your social properties

    Social Analytics

    Social analytics provide insights to both dimensions of social media monitoring.

    Some firms only need social cloud monitoring, some need to monitor their own social media properties, and others will need to do both. Some vendors do both while other vendors excel in only one feature dimension. If you are NOT prepared to act on results from social cloud monitoring, then don’t expand your reach into the social cloud for no reason. You can always add cloud monitoring services later. Likewise, if you only need to monitor the cloud and have no or few of your own social properties, don’t buy advanced management and engagement features.

    Use social analytics to gain the most value from your SMMP

    Research indicates successful organizations employ both social cloud monitoring and management of their own properties with analytical tools to enhance both or do one or the other well. Few vendors excel at both larger feature categories. But the market is segmented into vendors that organizations should be prepared to buy more than one product from to satisfy all requirements. However, we expect feature convergence over the next 1–3 years, resulting in more comprehensive vendor offerings.

    Most sought social media analytics capabilities

    Bar Chart of SM analytics capabilities, the most sought after being 'Demographic analysis', 'Geographic analysis', 'Semantic analysis', 'Automated identification of subject and content', and 'Predictive modeling'.
    (Source: The State of Social Media Analytics (2016))

    Value driven from social analytics comes in the form of:
    • Improved customer service
    • Increased revenue
    • Uncovered insights for better targeted marketing
    • A more personalized customer experience offered
    Social analytics is integral to the success of the SMMP – take advantage of this functionality!

    Cost/Benefit Scenario: A mid-sized consumer products company wins big by adopting an SMMP

    The following example shows how an SMMP at a mid-sized consumer products firm brought in $36 000 a year.

    Before: Manual Social Media Management

    • Account management: a senior marketing manager was responsible for updating all twenty of the firm’s social media pages and feeds. This activity consumed approximately 20% of her time. Her annual salary was $80,000. Allocated cost: $16,000 per year.
    • In-band response: Customer service representatives manually tracked service requests originating from social channels. Due to the use of multiple Twitter feeds, several customers were inadvertently ignored and subsequently defected to competitors. Lost annual revenue due to customer defections: $10,000.
    • Social analytics: Analytics were conducted in a crude, ad hoc fashion using scant data available from the services themselves. No useful insights were discovered. Gains from social insights: $0.

    Ad hoc management is costing this organization $26,000 a year.

    After: Social Media Management Platform

    • Account management: Centralized account controls for rapidly managing several social media services meant the amount of time spent updating social media was cut 75%. Allocated cost savings: $12,000 per year.
    • In-band response: Using an SMMP provided customer service representatives with a console for quickly and effectively responding to customer service issues. Service window times were significantly reduced, resulting in increased customer retention. Revenue no longer lost due to defections: $10,000.
    • Social analytics: The product development group used keyword-based monitoring to assist with designing a successful new product. Social feedback noticeably boosted sales. Gains from social insights: $20,000
    • Cost of SMMP: $6,000 per year.

    The net annual benefit of adopting an SMMP is $36,000.

    Go with an SMMP if your organization needs a heavy social presence; stick with ad hoc management if it doesn’t

    The value proposition of acquiring an SMMP does not resonate the same for all organizations: in some cases, it is more cost effective to forego an SMMP and stick with ad hoc social media management.

    Follow these guidelines for determining if an SMMP is a natural fit for your organization.

    Go with an SMMP if…

    • Your organization already has a large social footprint: you manage multiple feeds/pages on three or more social media services.
    • Your organization’s primary activity is B2C marketing; your target consumers are social media savvy. Example: consumer packaged goods.
    • The volume of marketing, sales and service inquiries received over social channels has seen a sharp increase in the last 12 months.
    • Your firm or industry is the topic of widespread discussion in the social cloud.

    Stick with ad hoc management if…

    • Regulatory compliance prohibits the extensive use of social media in your organization.
    • Your organization is focused on a small number of institutional clients with well-defined organizational buying behaviors.
    • Your target market is antipathetic towards using social channels to interact with your organization.
    • Your organization is in a market space where only a bare-bones social media presence is seen as a necessity (for example, only a basic informational Facebook page is maintained).

    Info-Tech Best Practice

    Using an SMMP is definitively superior to ad hoc social media management for those organizations with multiple brands and product portfolios (e.g. consumer packaged goods). Ad hoc management is best for small organizations with an institutional client base who only need a bare bones social media presence.

    Assess which social media opportunities exist for your organization with Info-Tech’s tool

    Supporting Tool icon 1.2 Social Media Opportunity Assessment Tool

    Use Info-Tech’s Social Media Opportunity Assessment Tool to determine, based on your unique criteria, where social media opportunities exist for your organization in marketing, sales, and service.

    Info-Tech Best Practice

    1. Remember that departmental goals will overlap; gaining customer insight is valuable to marketing, sales, and customer service.
    2. The social media benefits you can expect to achieve will evolve as your processes mature.
    3. Often, organizations jump into social media because they feel they have to. Use this assessment to identify early on what your drivers should be.
    Sample of the Social Media Opportunity Assessment Tool.

    Go/no-go assessment on SMMP

    Associated Activity icon 1.1.3

    INPUT: Social Media Opportunity Questionnaire

    OUTPUT: SMMP go/no-go decision

    MATERIALS: Whiteboard, Opportunity Assessment Tool

    PARTICIPANTS: Digital Strategy Executive, Business stakeholders

    Identify whether an SMMP will help you achieve your goals in sales, marketing, and customer service.

    1. Complete the questionnaire in the Social Media Opportunity Assessment Tool. Ensure all relevant stakeholders are present to answer questions pertaining to their business area.
    2. Evaluate the results to better understand whether your organization has the opportunity to achieve each established goal in marketing, sales, and customer service with an SMMP or you are not likely to benefit from investing in a social media management solution.

    Phase 1, Step 2: Use an SMMP to enable marketing, sales, and service use cases

    1.1

    1.2

    Determine if a dedicated SMMP is right for your organization Use an SMMP to enable marketing, sales, and service use cases

    This step will walk you through the following activities:

    • Profile and rank your top use cases for social media management
    • Build the metrics inventory

    This step involves the following participants:

    • Project Manager
    • Project Team

    Outcomes of this step

    • Use case suitability
    • SMMP metrics inventory

    SMMPs equip front-line sales staff with the tools they need for effective social lead generation

    • Content-centric social analytics allow sales staff to see click-through details for content posted on social networks. In many cases, these leads are warm and ready for immediate follow-up.
    • A software development firm uses an SMMP to post a whitepaper promoting its product to multiple social networks.
      • The whitepaper is subsequently downloaded by a number of potential prospects.
      • Content-centric analytics within the SMMP link the otherwise-anonymous downloads to named social media accounts.
      • Leads assigned to specific account managers, who use existing CRM software to pinpoint contact information and follow-up in a timely manner.
    • Organizations that intend to use their SMMP for sales purposes should ensure their vendor of choice offers integration with LinkedIn. LinkedIn is the business formal of social networks, and is the network with the greatest proven efficacy from a sales perspective.

    Using an SMMP to assist the sales process can…

    • Increase the number of leads generated through social channels as a result of social sharing.
    • Increase the quality of leads generated through social channels by examining influence scores.
    • Increase prospecting efficiency by finding social leads faster.
    • Keep account managers in touch with prospects and clients through social media.

    Info-Tech Best Practice

    Social media is on the rise in sales organizations. Savvy companies are using social channels at all points in the sales process, from prospecting to account management. Organizations using social channels for sales will want an SMMP to manage the volume of information and provide content-centric analytics.

    Incorporate social media into marketing workflows to gain customer insights, promote your brand, and address concerns

    While most marketing departments have used social media to some extent, few are using it to its full potential. Identify marketing workflows that can be enhanced through the use of social channel integration.
    • Large organizations must define separate workflows for each stakeholder organization if marketing’s duties are divided by company division, brand, or product lines.
    • Inquiries stemming from marketing campaigns and advertising must be handled by social media teams. For example, if a recent campaign sparks customer questions on the company’s Facebook page, be ready to respond!
    • Social media can be used to detect issues that may indicate product defects, provided defect tracking is not already incorporated into customer service workflows. If defect tracking is part of customer service processes, then such issues should be routed to the customer service organization.
    • If social listening is employed, in addition to monitoring the company's own social properties, marketing teams may elect to receive notices of major trends concerning the company's products or those of competitors.
    Word jumble of different sized buzz words around 'Brand Building'.

    I’m typically using my social media team as a proactive marketing team in the social space, whereas I’m using my consumer relations team as a reactive marketing and a reactive consumer relations taskforce. So a little bit different perspective.” (Greg Brickl, IT Director, Organic Valley)

    SMMPs allow marketers to satisfy all of their needs with one solution

    • Have a marketing manager jointly responsible for the selection of an SMMP to realize higher overall success. This will significantly improve customer acquisition approval and competitive intelligence, as well as the overall SMMP success.
    • The marketing manager should be involved in fleshing out the business requirements of the SMMP in order to select the most appropriate solution.
    • Once selected, the SMMP has multiple benefits for marketing professionals. One pivotal benefit of SMMPs for marketing is the capability for centralized account management. Multiple social pages and feeds can be rapidly managed at pre-determined times, through an easy-to-use dashboard delivered from one source.
    • Centralized account management is especially pertinent for organizations with a wide geographic client base, as they can manage wide social media campaigns within multiple time zones, delivering their messaging appropriately. (e.g. contests, product launches, etc.)
    Bar Chart comparing 'Average Success Scores' of different goals based on whether the 'Marketing Manager [was] Responsible' or not. Scores are always higher when they were.
    (Source: Info-Tech Research Group N = 37)

    Info-Tech Best Practice

    Managing multiple social media accounts on an ad hoc basis is time consuming and costs money. Lower costs and get the best results out of your social media campaigns by involving the marketing team in the SMMP selection process and knowing their functional requirements.

    Leverage SMMPs to proactively identify and respond to customer service issues occurring in the social cloud

    • SMMPs are an invaluable tool in customer service organizations. In-band response capabilities allow customer service representatives to quickly and effectively address customer service issues – either reactively or proactively.
    • Reactive customer service can be provided through SMMPs by providing response capabilities for private messages or public mentions (e.g. “@AcmeCo” on Twitter). Many SMMPs provide a queue of social media messages directed at the organization, and also give the ability to assign specific messages to an individual service representative or product expert. Responding to a high-volume of reactive social media requests can be time consuming without an SMMP.
    • Proactive customer service uses the ability of SMMPs to monitor the social cloud for specific keywords in order to identify customers having issues. Forward-thinking companies actively monitor the social cloud for customer service opportunities, to protect and improve their image.
    Illustration of reactive service where the customer initiates the process and then receives service.
    Reactive service is customer-initiated.

    Illustration of proactive service with a complaint through Twitter monitored by an SMMP allowing an associate to provide a 'Proactive Resolution'.
    SMMPs enable organizations to monitor the social cloud for service opportunities and provide proactive service in-band.

    Info-Tech Best Practice

    Historically, customer service has been “reactive” (i.e. customer initiated) and solely between the customer and supplier. Social media forces proactive service interactions between customer, supplier, and the entire social cloud. Using an SMMP significantly improves reactive and proactive service. The ability to integrate with customer service applications is essential.

    Customer service is a vital department to realize value from leveraging an SMMP

    Info-Tech’s research shows that the more departments get involved with social media implementation, the higher the success score (calculated based on respondents’ report of the positive impact of social media on business objectives). On average, each additional department involved in social media programs increases the overall social media success score by 5%. For example, organizations that leveraged social media within the customer service department, achieved a higher success score than those that did not.

    The message is clear: encourage broad participation in coordinated social media efforts to realize business goals.

    Line graph comparing 'Social Media Success Score' with the 'Number of Departments Involved'. The line trends upward on both axes.
    (Source: Info-Tech Research Group N=65)
    Bar chart comparing 'Social Media Success Scores' if 'Customer Service Involvement' was Yes or No. 'Yes' has a higher score.

    Our research indicates that the most important stakeholder to ensure steering committee success is Customer Service. This has a major impact on CRM integration requirements – more on this later.

    SMMPs are indispensable for allowing PR managers to keep tabs on the firm and its brands

    • Public relations is devoted to relationship management; as such, it is critical for savvy PR departments to have a social media presence.
    • SMMPs empower PR professionals with the ability to track the sentiment of what is said about their organization. Leverage keyword searches and heuristic analysis to proactively mitigate threats and capitalize on positive opportunities. For example, sentiment analysis can be used to identify detractors making false claims over social channels. These claims can then be countered by the Public Relations team.
    • Sentiment analysis can be especially important to the PR professional through change and crisis management situations. These tools allow an organization to track the flow of information, as well as the balance of positive and negative postings and their influence on others in the social cloud.
    • Social analytics provided by SMMPs also serve as a goldmine for competitive intelligence about rival firms and their products.

    Benefits of Sentiment Analysis for PR

    • Take the pulse of public perception of your brands (and competitors).
    • Mitigate negative comments being made and respond immediately.
    • Identify industry and consumer thought leaders to follow on social networks.

    Illustration of sentiment analysis.
    Use sentiment analysis to monitor the social cloud.

    Info-Tech Best Practice

    Leaving negative statements unaddressed can cause harm to an organization’s reputation. Use an SMMP to track what is being said about your organization; take advantage of response capabilities to quickly respond and mitigate PR risk.

    SMMPs for recruiting is an emerging talent recruitment technique and will lead to stronger candidates

    • Social media provides more direct connections between employer and applicant. It’s faster and more flexible than traditional e-channels.
    • SMMPs should be deployed to the HR silo to aid with recruiting top-quality candidates. Account management functionality can dramatically reduce the amount of time HR managers spend synchronizing content between various social media services.
    • In-band response capabilities flag relevant social conversations and allow HR managers to rapidly respond to prospective employee inquiries. Rapid response over social channels gives candidates a positive impression of the organization.
    • Analytics give HR managers insight into hiring trends and the job market at large – sentiment analysis is useful for gauging not just candidate interests, but also anonymous employee engagement.

    A social media campaign managed via SMMP can…

    • Increase the size of the applicant pool by “fishing where the fish are.”
    • Increase the quality of applicants by using monitoring to create targeted recruitment materials.
    • Increase recruiting efficiency by having a well-managed, standing presence on popular social media sites – new recruiting campaigns require less “awareness generation” time.
    • Allow HR/recruiters to be more in-touch with hiring trends via social analytics.
    Horizontal bar chart of social media platforms that recruiters use. LinkedIn is at the top with 87%. Only 4% of recruiters are NOT using social media for recruitment, while 50% of recruiters plan to increase their investment in SMR in the coming year. (Source: Jobvite, 2015)

    Collapse your drivers for SMMP and link them to Info-Tech’s Vendor Landscape use cases

    Vendor Profiles icon

    USE CASES

    Social Listening and Analytics

    What It Looks Like
    Functionality for capturing, aggregating, and analyzing social media content in order to create actionable customer or competitive insights.

    How It Works
    Social listening and analytics includes features such as sentiment and contextual analysis, workflow moderation, and data visualization.

    Social Publishing and Campaign Management

    What It Looks Like
    Functionality for publishing content to multiple networks or accounts simultaneously, and managing social media campaigns in-depth (e.g. social property management and post scheduling).

    How It Works
    Social publishing and campaign management include features such as campaign execution, social post integration, social asset management, and post time optimization.

    Social Customer Care

    What It Looks Like
    Functionality for management of the social customer service queue as well as tools for expedient resolution of customer issues.

    How It Works
    Social customer care use case primarily relies on strong social moderation and workflow management.

    Identify the organizational drivers for social media management – whether it is recruiting, public relations, customer service, marketing, or sales – and align them with the most applicable use case.

    Profile and rank your top use cases for social media management using the Use-Case Fit Assessment Tool

    Associated Activity icon 1.2.1 1 Hour

    INPUT: Project Manager, Core project team

    OUTPUT: Use-case suitability

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project Manager, Core project team

    1. Download your own version of the tool and complete the questionnaire on tab 2, Assessment.
      • Use the information gathered from your assessments and initial project scoping to respond to the prompts to identify the business and IT requirements for the tool.
      • Answer the prompts for each statement from a range of strongly disagree to strongly agree.
    2. Review the outcomes on tab 3, Results.
      • This tab provides a qualitative measure assessing the strength of your fit against the industry use-case scenarios.
    3. If not completed as a team, debrief the results and implications to your core project team.

    Use the SMMP Use-Case Fit Assessment Tool to identify which areas you should focus on

    Supporting Tool icon 1.3 Use Case Fit Assessment Tool
    Use the Use-Case Fit Assessment Tool to understand how your unique requirements map into a specific SMMP use case.

    This tool will assess your answers and determine your relative fit against the use-case scenarios.

    Fit will be assessed as “Weak,” “Moderate,” or “Strong.”

    Consider the common pitfalls, which were mentioned earlier, that can cause IT projects to fail. Plan and take clear steps to avoid or mitigate these concerns.

    Note: These use-case scenarios are not mutually exclusive. Your organization can align with one or more scenarios based on your answers. If your organization shows close alignment to multiple scenarios, consider focusing on finding a more robust solution and concentrate your review on vendors that performed strongly in those scenarios or meet the critical requirements for each.

    INFO-TECH DELIVERABLE

    Sample of the SMMP Use-Case Fit Assessment Tool.

    Identify the marketing, sales, and customer service metrics that you will target for improvement using an SMMP

    Create measurable S.M.A.R.T. goals for the project.

    Consider the following questions when building your SMMP metrics:
    1. What are the top marketing objectives for your company? For example, is building initial awareness or driving repeat customers more important?
    2. What are the corresponding social media goals for this business objective?
    3. What are some of the metrics that could be used to determine if business and social media objectives are being attained?
    Use Case Sample Metric Descriptions Target Metric
    Social Listening and Analytics Use a listening tool to flag all mentions of our brands or company on social Increase in mentions with neutral or positive sentiment, decrease in mentions with negative sentiment
    Social Publishing and Campaign Management Launch a viral video campaign showcasing product attributes to drive increased YT traffic Net increase in unaided customer recall
    Social Customer Care Create brand-specific social media pages to increase customer sentiment for individual brand extensions Net increase in positive customer sentiment (i.e. as tracked by an SMMP)

    Build the metrics inventory

    Associated Activity icon 1.2.2 45 Minutes

    INPUT: Marketing, sales, and customer service objectives

    OUTPUT: Metrics inventory

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project Manager, Core project team

    1. Identify the top marketing, sales, and customer service objectives for your company? For example, is building initial awareness or driving repeat customers more important?
    2. What are the corresponding social media goals for each business objective?
    3. What are some of the metrics that could be used to determine if business and social media objectives are being attained?
    Marketing/PR Objectives Social Media Goals Goal Attainment Metrics
    E.g. build a positive brand image
    • Create brand-specific social media pages to increase customer sentiment for individual brand extensions
    Net increase in positive customer sentiment (i.e. as tracked by an SMMP)
    E.g. increase customer mind share
    • Launch a viral video campaign showcasing product attributes to drive increased YT traffic
    Net increase in unaided customer recall
    E.g. monitor public mentions
    • Use a listening tool to flag all mentions of our brands or company on social
    Increase in mentions with neutral or positive sentiment, decrease in mentions with negative sentiment

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of an Info-Tech analyst.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.1

    Sample of activity 1.1.1 'Assess where your organization sits on the social media maturity curve'. Assess your organization’s social media maturity

    An Info-Tech analyst will facilitate a discussion to assess the maturity of your organization’s social media program and take an inventory of your current efforts across different departments (e.g. Marketing, PR, Sales, and Customer Service).

    1.1.2

    Sample of activity 1.1.2 'Inventory the current social media networks that must be supported by SMMP'. Inventory your current social media networks

    The analyst will facilitate an exercise to catalog all social media networks used in the organization.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    1.1.3

    Sample of activity 1.1.3 'Go/no-go assessment on SMMP'. Go/no go assessment on SMMP

    Based on the maturity assessment, the analyst will help identify whether an SMMP will help you achieve your goals in sales, marketing, and customer service.

    1.2.1

    Sample of activity 1.2.1 'Profile and rank your top use cases for social media management using the Use Case Fit Assessment Tool'. Rank your top use cases for social media management

    An analyst will facilitate the exercise to answer a series of questions in order to determine best-fit scenario for social media management for your organization.

    1.2.2

    Sample of activity 1.2.2 'Build the metrics inventory'. Build the metrics inventory

    An analyst will lead a whiteboarding exercise to brainstorm and generate metrics for your organization’s social media goals.

    Select and Implement a Social Media Management Platform

    PHASE 2

    Select an SMMP

    This phase also includes Info-Tech’s SMMP Vendor Landscape Title icon for vendor slides.

    Phase 2: Select an SMMP

    Steps of this blueprint represented by circles of varying colors and sizes, labelled by text of different sizes. Only Phase 2 is highlighted.
    Estimated Timeline: 1-3 Months

    Info-Tech Insight

    Taking a use-case-centric approach to vendor selection allows you to balance the need for different social capabilities between analytics, campaign management and execution, and customer service.

    Major Milestones Reached
    • Vendor Selection
    • Finalized and Approved Contract

    Key Activities Completed

    • RFP Process
    • Vendor Evaluations
    • Vendor Selection
    • Contract Negotiation

    Outcomes from This Phase

    The completed procurement of an SMMP solution.

    • Selected SMMP solution
    • Negotiated and finalized contract

    Phase 2 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Select an SMMP

    Proposed Time to Completion: 4 weeks
    Step 2.1: Analyze and shortlist SMMP vendors Step 2.2: Evaluate vendor responses
    Start with an analyst kick-off call:
    • Evaluate the SMMP marketspace.
    • Re-evaluate best-fit use case.
    Review findings with analyst:
    • Determine your SMMP procurement strategy.
    • Reach out to SMMP vendors.
    Then complete these activities…
    • Review vendor profiles and analysis.
    • Create your own evaluation framework and shortlisting criteria.
    Then complete these activities…
    • Prioritize your requirements.
    • Create an RFP for SMMP procurement.
    • Evaluate vendor responses.
    • Set up product demonstrations.
    With these tools & templates:
    • SMMP Vendor Landscape (included here)
    • SMMP Vendor Shortlist Tool
    With these tools & templates:
    • SMMP RFP Template
    • SMMP Vendor Demo Script Template
    • SMMP Evaluation and RFP Scoring Tool
    Phase 1 Results & Insights:
    • Finalize vendor and product selection

    Phase 2, Step 1: Analyze and shortlist vendors in the space

    2.1

    2.2

    Analyze and shortlist vendors in the space Select your SMMP solution

    This step will walk you through the following activities:

    • Review vendor landscape methodology
    • Shortlist SMMP vendors

    This step involves the following participants:

    • Core team
    • Representative stakeholders from Digital Marketing, Sales, and IT

    The SMMP Vendor Landscape includes the following sections:

    VENDOR LANDSCAPE

    Info-Tech's Methodology

    Vendor title icon.

    Vendor Landscape use-case scenarios are evaluated based on weightings of features and vendor/product considerations

    Vendor Profiles icon

    Use cases were scored around the features from the general scoring identified as being relevant to the functional considerations and drivers for each scenario.

    Calculation Overview
    Advanced Features Score X Vendor Multiplier = Vendor Performance for Each Scenario
    Pie Chart of Product and Vendor Weightings.
    Product and Vendor Weightings
    Pie Chart of Advanced Features Weightings.
    Advanced Features Weightings

    Please note that both advanced feature scores and vendor multipliers are based on the specific weightings calibrated for each scenario.

    Vendor performance for each use-case scenario is documented in a weighted bar graph

    Vendor Profiles icon
    Sample of the 'Vendor performance for the use-case scenario' slide. Vendor Performance

    Vendors qualify and rank in each use-case scenario based on their relative placement and scoring for the scenario.

    Vendor Ranking

    Champion: The top vendor scored in the scenario

    Leaders: The vendors who placed second and third in the scenario

    Players: Additional vendors who qualified for the scenarios based on their scoring

    Sample of the 'Value Index for the use case scenario' slide. Value ScoreTM

    Each use-case scenario also includes a Value Index that identifies the Value Score for a vendor relative to their price point. This additional framework is meant to help price-conscious organizations identify vendors who provide the best “bang for the buck.”

    VENDOR LANDSCAPE

    Review the SMMP Vendor Evaluation

    Vendor title icon.

    SMMP market overview

    Vendor Profiles icon

    How It Got Here

    • The SMMP market was created in response to the exploding popularity of social media and the realization that it can be harnessed for a wide variety of enterprise purposes (from consumer intelligence to marketing campaigns and customer service).
    • As the number of social media services has expanded, and as the volume of content generated via social networks has ballooned, it became increasingly difficult to mine insights and manage social campaigns. A number of vendors (mostly start-ups) began offering platforms that attempted to streamline and harness social media processes.
    • As usage of social media expanded beyond just the marketing and PR function, being able to successfully scale a social strategy to a large number of customer care and sales interactions became paramount: SMMPs filled a niche by offering large-scale response and workflow management capabilities.

    Where It’s Going

    • The market is segmented into two broad camps: SMMPs focused on social listening and analytics, and SMMPs focused on social engagement. Although the two have begun to converge, there continues to be a clear junction in the market between the two, with a surprising lack of vendors that are equally adept at both sides.
    • With the rise of SMMPs, the expectation was that CRM vendors would offer feature sets similar to those of standalone SMMPS. However, CRM vendors have been slow in incorporating the functionality directly into their products. While some major vendors have made ground in this direction in the last year, organizations that are serious about social will still need a best-of-breed SMMP.
    • Other major trends include using application integration to build a 360-degree view of the customer, workflow automation, and competitive benchmarking.

    Info-Tech Insight

    As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. Supporting multiple social media services and accounts has become a Table Stakes capability and should no longer be used to differentiate solutions. Instead focus on an SMMP’s social listening, campaign management, and customer care to help you find a solution that best fits your requirements.

    Review Info-Tech’s Vendor Landscape of the SMMP market to identify vendors that meet your requirements

    Vendors Evaluated

    Various logos of the vendors who were evaluated.

    Each vendor in this landscape was evaluated based on their features, product considerations, and vendor considerations. Each vendor was profiled using these evaluations and, based on their performance, qualified and placed in specific use-case scenarios.

    These vendors were included due to consideration of their market share, mind share, and platform coverage

    Vendor Profiles icon

    Vendors included in this report provide a comprehensive, innovative, and functional solution for integrating applications and automating their messaging.

    Included in this Vendor Landscape:

    Adobe: Adobe Social is a key pillar of Adobe’s ecosystem that is heavily focused on social analytics and engagement.

    Hootsuite: A freemium player with strong engagement and collaboration tools, particularly well suited for SMBs.

    Salesforce: Social Studio is a leading social media management solution and is a key channel of Salesforce Marketing Cloud.

    Sendible: A fairly new entrant to the social media management space, Sendible offers robust campaign management capability that is well suited for agencies and SMBs.

    Sprinklr: A leading solution that focuses on social customer care, offering strong ability to prioritize, route, and categorize high-volume social messaging.

    Sprout Social: A great choice for mid-sized companies looking to provide robust social engagement and customer care.

    Sysomos: Their MAP and Heartbeat products offer customers in-depth analysis of a wide array of social channels.

    Viralheat (Cision): Now a Cision product, Viralheat is an excellent option for analytics, social response workflow management, and in-band social engagement.

    Table Stakes represent the minimum standard; without these, a product doesn’t even get reviewed

    Vendor Profiles icon

    The Table Stakes

    Feature: What it is:
    Multiple Services Supported The ability to mange or analyze at least two or more social media services.
    Multiple Accounts Supported The ability to manage or analyze content from at least two or more social media accounts.
    Basic Engagement The ability to post status updates to multiple social media sites.
    Basic Analytics The ability to display inbound feeds and summary info from multiple social media sites.

    What does this mean?

    The products assessed in this Vendor Landscape meet, at the very least, the requirements outlined as Table Stakes.

    Many of the vendors go above and beyond the outlined Table Stakes, some even do so in multiple categories. This section aims to highlight the products’ capabilities in excess of the criteria listed here.

    Info-Tech Insight

    If Table Stakes are all you need from your SMMP solution, the only true differentiator for the organization is price. Otherwise, dig deeper to find the best price to value for your needs.

    Advanced Features are the capabilities that allow for granular differentiation of market players and use-case performance

    Vendor Profiles icon

    Scoring Methodology

    Info-Tech scored each vendor’s features on a cumulative four-point scale. Zero points are awarded to features that are deemed absent or unsatisfactory, one point is assigned to features that are partially present, two points are assigned to features that require an extra purchase in the vendor’s product portfolio or through a third party, three points are assigned to features that are fully present and native to the solution, and four points are assigned to the best-of-breed native feature.

    For an explanation of how Advanced Features are determined, see Information Presentation – Feature Ranks (Stoplights) in the Appendix.

    Feature: What we looked for:
    Social Media Channel Integration - Inbound Ability to monitor social media services, such as Facebook, Twitter, LinkedIn, YouTube, and more.
    Social Media Channel Integration - Outbound Ability to publish to social media services such as Facebook, Twitter, LinkedIn, YouTube, and more.
    Social Response Management Ability to respond in-band to social media posts.
    Social Moderation and Workflow Management Ability to create end-to-end routing and escalation workflows from social content.
    Campaign Execution Ability to manage social and media assets: tools for social campaign execution, reporting, and analytics.
    Social Post Archival Ability to archive social posts and platform activity to create an audit trail.
    Trend Analysis Ability to monitor trends and traffic on multiple social media sites.
    Sentiment Analysis Ability to analyze and uncover insights from attitudes and opinions expressed on social media.
    Contextual Analysis Ability to use NLP, deep learning and semantic analysis to extract meaning from social posts.
    Social Asset Management Ability to access visual asset library with access permissions and expiry dates to be used on social media.
    Post Time Optimization Ability to optimize social media posts by maximizing the level of interaction and awareness around the posts.
    Dashboards and Visualization Ability to visualize data and create analytics dashboards.

    Vendor scoring focused on overall product attributes and vendor performance in the market

    Vendor Profiles icon

    Scoring Methodology

    Info-Tech Research Group scored each vendor’s overall product attributes, capabilities, and market performance.

    Features are scored individually as mentioned in the previous slide. The scores are then modified by the individual scores of the vendor across the product and vendor performance features.

    Usability, overall affordability of the product, and the technical features of the product are considered, and scored on a five-point scale. The score for each vendor will fall between worst and best in class.

    The vendor’s performance in the market is evaluated across four dimensions on a five-point scale. Where the vendor places on the scale is determined by factual information, industry position, and information provided by customer references and/or available from public sources.

    Product Evaluation Features

    Usability The end-user and administrative interfaces are intuitive and offer streamlined workflow.
    Affordability Implementing and operating the solution is affordable given the technology.
    Architecture Multiple deployment options, platform support, and integration capabilities are available.

    Vendor Evaluation Features

    Viability Vendor is profitable, knowledgeable, and will be around for the long term.
    Focus Vendor is committed to the space and has a future product and portfolio roadmap.
    Reach Vendor offers global coverage and is able to sell and provide post-sales support.
    Sales Vendor channel partnering, sales strategies, and process allow for flexible product acquisition.

    Balance individual strengths to find the best fit for your enterprise

    Vendor Profiles icon

    A list of vendors with ratings for their 'Product: Overall, Usability, Affordability, and Architecture' and their 'Vendor: Overall, Viability, Focus, Reach, and Sales'. It uses a quarters rating system where 4 quarters of a circle is Exemplary and 0 quarters is Poor.

    For an explanation of how the Info-Tech Harvey Balls are calculated, see Information Presentation – Criteria Scores (Harvey Balls) in the Appendix.

    Balance individual strengths to find the best fit for your enterprise

    Vendor Profiles icon

    A list of vendors with ratings for their 'Evaluated Features'. Rating system uses Color coding with green being 'Feature is fully present...' and red being 'Feature is absent', and if a star is in the green then 'Feature is best in its class'.

    For an explanation of how Advanced Features are determined, see Information Presentation – Feature Ranks (Stoplights) in the Appendix.

    Vendor title icon.

    USE CASE 1

    Social Listening and Analytics

    Seeking functionality for capturing, aggregating, and analyzing social media content in order to create actionable customer or competitive insights.

    Feature weightings for the social listening and analytics use-case scenario

    Vendor Profiles icon

    Core Features

    Sentiment Analysis Uncovering attitudes and opinions expressed on social media is important for generating actionable customer insights.
    Dashboards and Visualization Capturing and aggregating social media insights is ineffective without proper data visualization and analysis.
    Trend Analysis The ability to monitor trends across multiple social media services is integral for effective social listening.
    Contextual Analysis Understanding and analyzing language and visual content on social media is important for generating actionable customer insights.

    Additional Features

    Social Media Channel Integration – Inbound

    Social Moderation and Workflow Management

    Social Post Archival

    Feature Weightings

    Pie chart of feature weightings.

    Vendor considerations for the social listening and analytics use-case scenario

    Vendor Profiles icon

    Product Evaluation Features

    Usability A clean and intuitive user interface is important for users to fully leverage the benefits of an SMMP.
    Affordability Affordability is an important consideration as the price of SMMPs can vary significantly depending on the breadth and depth of capability offered.
    Architecture SMMP is more valuable to organizations when it can integrate well with their applications, such as CRM and marketing automation software.

    Vendor Evaluation Features

    Viability Vendor viability is critical for long-term stability of an application portfolio.
    Focus The vendor is committed to the space and has a future product and portfolio roadmap.
    Reach Companies with processes that cross organizational and geographic boundaries require effective and available support.
    Sales Vendors need to demonstrate flexibility in terms of industry and technology partnerships to meet evolving customer needs.

    Pie chart for Product and Vendor Evaluation Features.

    Vendor performance for the social listening and analytics use-case scenario

    Vendor Profiles icon
    Champion badge.

    Champions for this use case:

    Salesforce: Salesforce Social Studio offers excellent trend and in-depth contextual analysis and is among the best vendors in presenting visually appealing and interactive dashboards.
    Leader badge.

    Leaders for this use case:

    Sysomos: Sysomos MAP and Heartbeat are great offerings for conducting social media health checks using in-depth contextual analytics.

    Adobe: Adobe Social is a great choice for digital marketers that need in-depth sentiment and longitudinal analysis of social data – particularly when managing social alongside other digital channels.

    Best Overall Value badge.

    Best Overall Value Award

    Sysomos: A strong analytics capability offered in Sysomos MAP and Heartbeat at a relatively low cost places Sysomos as the best bang for your buck in this use case.

    Players in the social listening and analytics scenario

    • Sprinklr
    • Hootsuite
    • Sprout Social

    Vendor performance for the social listening and analytics use-case scenario

    Vendor Profiles icon

    Stacked bar chart comparing vendors' use-case performance in multiple areas of 'Social Listening and Analytics'.

    Value Index for the social listening and analytics scenario

    Vendor Profiles icon
    What is a Value Score?

    The Value Score indexes each vendor’s product offering and business strength relative to its price point. It does not indicate vendor ranking.

    Vendors that score high offer more bang-for-the-buck (e.g. features, usability, stability) than the average vendor, while the inverse is true for those that score lower.

    Price-conscious enterprises may wish to give the Value Score more consideration than those who are more focused on specific vendor/product attributes.

    On a relative basis, Sysomos maintained the highest Info-Tech Value ScoreTM of the vendor group for this use-case scenario. Vendors were indexed against Sysomos’ performance to provide a complete, relative view of their product offerings.

    Bar chart of vendors' Value Scores in social listening and analytics. Sysomos has the highest and the Average Score is 66.8.

    For an explanation of how price is determined, see Information Presentation – Price Evaluation in the Appendix.

    For an explanation of how the Info-Tech Value Index is calculated, see Information Presentation – Value Index in the Appendix.

    Vendor title icon.

    USE CASE 2

    Social Publishing and Campaign Management

    Seeking functionality for publishing content to multiple networks or accounts simultaneously, and managing social media campaigns in-depth (e.g. social property management and post scheduling).

    Feature weightings for the social publishing and campaign management use-case scenario

    Vendor Profiles icon

    Core Features

    Campaign Execution The ability to manage multiple social media services simultaneously is integral for carrying out social media campaigns.
    Social Response Management Creating response workflows is equally important to publishing capability for managing social campaigns.

    Additional Features

    Social Media Channel Integration – Outbound

    Social Moderation and Workflow Management

    Social Post Archival

    Social Asset Management

    Post Time Optimization

    Social Media Channel Integration – Inbound

    Trend Analysis

    Sentiment Analysis

    Dashboards and Visualization

    Feature Weightings

    Pie chart of feature weightings.

    Vendor considerations for the social publishing and campaign management use-case scenario

    Vendor Profiles icon

    Product Evaluation Features

    Usability A clean and intuitive user interface is important for users to fully leverage the benefits of an SMMP.
    Affordability Affordability is an important consideration as the price of SMMPs can vary significantly depending on the breadth and depth of capability offered.
    Architecture SMMP is more valuable to organizations when it can integrate well with their applications, such as CRM and marketing automation software.

    Vendor Evaluation Features

    Viability Vendor viability is critical for long-term stability of an application portfolio.
    Focus The vendor is committed to the space and has a future product and portfolio roadmap.
    Reach Companies with processes that cross organizational and geographic boundaries require effective and available support.
    Sales Vendors need to demonstrate flexibility in terms of industry and technology partnerships to meet evolving customer needs.

    Pie chart of Product and Vendor Evaluation Features.

    Vendor performance for the social publishing and campaign management use-case scenario

    Vendor Profiles icon

    Champion badge.

    Champions for this use case:

    Adobe: Adobe has the best social campaign execution capability in the market, enabling marketers to manage and auto-track multiple campaigns. It also offers a strong asset management feature that allows users to leverage Marketing Cloud content.
    Leader badge.

    Leaders for this use case:

    Salesforce: SFDC has built a social marketing juggernaut, offering top-notch response workflows and campaign execution capability.

    Hootsuite: Hootsuite has good response capabilities backed up by a strong team collaboration feature set. It offers simplified cross-platform posting and post-time optimization capabilities.

    Best Overall Value badge.

    Best Overall Value Award

    Sendible: Sendible offers the best value for your money in this use case with good response workflows and publishing capability.

    Players in the social publishing and campaign management scenario

    • Sprout Social
    • Sprinklr
    • Sendible

    Vendor performance for the social publishing and campaign management use-case scenario

    Vendor Profiles icon

    Stacked bar chart comparing vendors' use-case performance in multiple areas of 'Social publishing and campaign management'.

    Value Index for the social publishing and campaign management scenario

    Vendor Profiles icon

    What is a Value Score?

    The Value Score indexes each vendor’s product offering and business strength relative to its price point. It does not indicate vendor ranking.

    Vendors that score high offer more bang-for-the-buck (e.g. features, usability, stability) than the average vendor, while the inverse is true for those that score lower.

    Price-conscious enterprises may wish to give the Value Score more consideration than those who are more focused on specific vendor/product attributes.

    On a relative basis, Sendible maintained the highest Info-Tech Value ScoreTM of the vendor group for this use-case scenario. Vendors were indexed against Sendible’s performance to provide a complete, relative view of their product offerings.

    Bar chart of vendors' Value Scores in social publishing and campaign management. Sendible has the highest and the Average Score is 72.9.

    For an explanation of how Price is determined, see Information Presentation – Price Evaluation in the Appendix.

    For an explanation of how the Info-Tech Value Index is calculated, see Information Presentation – Value Index in the Appendix.

    Vendor title icon.

    USE CASE 3

    Social Customer Care

    Seeking functionality for management of the social customer service queue as well as tools for expedient resolution of customer issues.

    Feature weightings for the social customer care use-case scenario

    Vendor Profiles icon

    Core Features

    Social Moderation and Workflow Management Creating escalation workflows is important for triaging customer service, managing the social customer service queue and offering expedient resolution to customer complaints.

    Additional Features

    Social Media Channel Integration – Outbound

    Social Moderation and Workflow Management

    Social Response Management

    Social Post Archival

    Sentiment Analysis

    Dashboards and Visualization

    Campaign Execution

    Trend Analysis

    Post Time Optimization

    Feature Weightings

    Pie chart with Feature Weightings.

    Vendor considerations for the social customer case use-case scenario

    Vendor Profiles icon

    Product Evaluation Features

    Usability A clean and intuitive user interface is important for users to fully leverage the benefits of an SMMP.
    Affordability Affordability is an important consideration as the price of SMMPs can vary significantly depending on the breadth and depth of capability offered.
    Architecture SMMP is more valuable to organizations when it can integrate well with their applications, such as CRM and marketing automation software.

    Vendor Evaluation Features

    Viability Vendor viability is critical for long-term stability of an application portfolio.
    Focus The vendor is committed to the space and has a future product and portfolio roadmap.
    Reach Companies with processes that cross organizational and geographic boundaries require effective and available support.
    Sales Vendors need to demonstrate flexibility in terms of industry and technology partnerships to meet evolving customer needs.

    Pie chart with Product and Vendor Evaluation Features.

    Vendor performance for the social customer care use-case scenario

    Vendor Profiles icon

    Champion badge.

    Champions for this use case:

    Salesforce: Salesforce offers exceptional end-to-end social customer care capability with strong response escalation workflows.
    Leader badge.

    Leaders for this use case:

    Sprinklr: Sprinklr’s offering gives users high flexibility to configure escalation workflows and role-based permissions for managing the social customer service queue.

    Hootsuite: Hootsuite’s strength lies in the breadth of social networks that the platform supports in offering expedient resolution to customer complaints.

    Best Overall Value badge.

    Best Overall Value Award

    Sysomos: Sysomos is the best bang for your buck in this use case, offering essential response and workflow capabilities.

    Players in the social listening and analytics scenario

    • Sendible
    • Sysomos
    • Viralheat (Cision)

    Vendor performance for the social customer care use-case scenario

    Vendor Profiles icon

    Stacked bar chart comparing vendors' use-case performance in multiple areas of 'Social customer care'.

    Value Index for the social customer care scenario

    Vendor Profiles icon

    What is a Value Score?

    The Value Score indexes each vendor’s product offering and business strength relative to its price point. It does not indicate vendor ranking.

    Vendors that score high offer more bang-for-the-buck (e.g. features, usability, stability) than the average vendor, while the inverse is true for those that score lower.

    Price-conscious enterprises may wish to give the Value Score more consideration than those who are more focused on specific vendor/product attributes.

    On a relative basis, Sendible maintained the highest Info-Tech Value ScoreTM of the vendor group for this use-case scenario. Vendors were indexed against Sendible’s performance to provide a complete, relative view of their product offerings.

    Bar chart of vendors' Value Scores in social customer care. Sysomos has the highest and the Average Score is 79.6.

    For an explanation of how Price is determined, see Information Presentation – Price Evaluation in the Appendix.

    For an explanation of how the Info-Tech Value Index is calculated, see Information Presentation – Value Index in the Appendix.

    VENDOR LANDSCAPE

    Vendor Profiles and Scoring

    Vendor title icon.

    Use the information in the SMMP Vendor Landscape analysis to streamline your own vendor analysis process

    Vendor Profiles icon

    This section of the Vendor Landscape includes the profiles and scoring for each vendor against the evaluation framework previously outlined.

    Sample of the SMMP Vendor Landscape analysis. Vendor Profiles
    • Include an overview for each company.
    • Identify the strengths and weaknesses of the product and vendor.
    • Identify the three-year TCO of the vendor’s solution (based on a ten-tiered model).
    Sample of the Vendor Landscape profiles slide.
    Vendor Scoring

    Use the Harvey Ball scoring of vendor and product considerations to assess alignment with your own requirements.

    Review the use-case scenarios relevant to your organization’s Use-Case Fit Assessment results to identify a vendor’s fit to your organization's SMMP needs. (See the following slide for further clarification on the use-case assessment scoring process.)

    Review the stoplight scoring of advanced features to identify the functional capabilities of vendors.

    Sample of the Vendor Scoring slide.

    Adobe Social is a powerhouse for digital marketers, with extremely well-developed analytics capabilities

    Vendor Profiles icon
    Product Adobe Social
    Employees 15,000+
    Headquarters San Jose, CA
    Website Adobe.com
    Founded 1982
    Presence NASDAQ: ADBE

    Logo for Adobe.

    3 year TCO for this solution falls into pricing tier 8 between $500,000 and $1,000,000.

    Pricing tier for Adobe, tier 8.
    Pricing provided by vendor

    OVERVIEW
    • Adobe Social is a strong offering included within the broader Adobe Marketing Cloud. The product is tightly focused on social analytics and social campaign execution. It’s particularly well-suited to dedicated digital marketers or social specialists.
    STRENGTHS
    • Adobe Social provides broad capabilities across social analytics and social campaign management; its integration with Adobe Analytics is a strong selling point for organizations that need a complete, end-to-end solution.
    • It boasts great archiving capabilities (up to 7 years for outbound posts), meeting the needs of compliance-centric organizations and providing for strong longitudinal analysis capabilities.
    CHALLENGES
    • The product plays well with the rest of the Adobe Marketing Cloud, but the list of third-party CRM and CSM integrations is shorter than some other players in the market.
    • While the product is unsurprisingly geared towards marketers, organizations that want a scalable platform for customer service use cases will need to augment the product due to its focus on campaigns and analytics – service-related workflow and automation capabilities are not a core focus for the company.

    Adobe Social

    Vendor Profiles icon
    'Product' and 'Vendor' scores for Adobe. Overall product is 3/4; overall vendor is 4/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Adobe earned 'Leader' in Social Listening & Analytics and 'Champion' in Social Publishing & Campaign Management.
    Info-Tech Recommends

    Adobe Social provides impressive features, especially for companies that position social media within a larger digital marketing strategy. Organizations that need powerful social analytics or social campaign execution capability should have Adobe on their shortlist, though the product may be an overbuy for social customer care use cases.

    Scores for Adobe's individual features, color-coded as they were previously.

    Hootsuite is a capable vendor that offers a flexible solution for monitoring many different social media services

    Vendor Profiles icon
    Product Hootsuite
    Employees 800
    Headquarters Vancouver, BC
    Website Hootsuite.com
    Founded 2007
    Presence Privately held

    Logo for Hootsuite.

    3 year TCO for this solution falls into pricing tier 6, between $100,000 and $250,000.

    Pricing tier for Hootsuite, tier 6.
    Pricing derived from public information

    OVERVIEW
    • In the past, Hootsuite worked on the freemium model by providing basic social account management features. The company has since expanded its offering and put a strong focus on enterprise feature sets, such as collaboration and workflow management.
    STRENGTHS
    • Hootsuite is extremely easy to use, having one of the most straightforward interfaces of vendors evaluated.
    • It has extensive monitoring capabilities for a wide variety of social networks as well as related services, which are supported through an app store built into the Hootsuite platform.
    • The product provides a comprehensive model for team-based collaboration and workflow management, demonstrated through nice cross-posting and post-time optimization capabilities.
    CHALLENGES
    • Hootsuite’s reporting and analytics capabilities are relatively basic, particularly when contrasted with more analytics-focused vendors in the market.
    • Running cross-channel campaigns is challenging without integration with third-party applications.

    Hootsuite

    Vendor Profiles icon
    'Product' and 'Vendor' scores for Hootsuite. Overall product is 3/4; overall vendor is 4/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Hootsuite earned 5th out of 6 in Social Listening & Analytics, 'Leader' in Social Publishing & Campaign Management, and 'Leader' in Social Customer Care.
    Info-Tech Recommends

    The free version of Hootsuite is useful for getting your feet wet with social management. The paid version is a great SMMP for monitoring and engaging your own social properties with good account and team management at an affordable price. This makes it ideal for SMBs. However, organizations that need deep social analytics may want to look elsewhere.

    Scores for Hootsuite's individual features, color-coded as they were previously.

    Salesforce Marketing Cloud continues to be a Cadillac solution; it’s a robust platform with a host of features

    Vendor Profiles icon
    Product Salesforce Social Studio
    Employees 24,000+
    Headquarters San Francisco, CA
    Website Salesforce.com
    Founded 1999
    Presence NASDAQ: CRM

    Logo for Salesforce.

    3 year TCO for this solution falls into pricing tier 7, between $250,000 and $500,000

    Pricing tier for Salesforce, tier 7.
    Pricing provided by vendor

    OVERVIEW
    • Social Studio is a powerful solution fueled by Salesforce’s savvy acquisitions in the marketing automation and social media management marketspace. The product has rapidly matured and is adept at both marketing and customer service use cases.
    STRENGTHS
    • Salesforce continues to excel as one of the best SMMP vendors in terms of balancing inbound analytics and outbound engagement. The recent addition of Salesforce Einstein to the platform bolsters deep learning capabilities and enhances the product’s value proposition to those that want a tool for robust customer intelligence.
    • Salesforce’s integration of Marketing Cloud, with its Sales and Service Clouds, also creates a good 360-degree customer view.
    CHALLENGES
    • Salesforce’s broad and deep feature set comes at a premium: the solution is priced materially higher than many other vendors. Before you consider Marketing Cloud, it’s important to evaluate which social media capabilities you want to develop: if you only need basic response workflows or dashboard-level analytics, purchasing Marketing Cloud runs the risk of overbuying.
    • In part due to its price point and market focus, Marketing Cloud is more suited to enterprise use cases than SMB use cases.

    Salesforce

    Vendor Profiles icon
    'Product' and 'Vendor' scores for  . Overall product is 3/4; overall vendor is 4/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Salesforce earned 'Champion' in Social Listening & Analytics, 'Leader' in Social Publishing & Campaign Management, and 'Champion' in Social Customer Care.
    Info-Tech Recommends

    Social Studio in Salesforce Marketing Cloud remains a leading solution. Organizations that need to blend processes across the enterprise that rely on social listening, deep analytics, and customer engagement should have the product on their shortlist. However, companies with more basic needs may be off-put by the solution’s price point.

    Scores for 's individual features, color-coded as they were previously.

    Sendible offers multiple social media management capabilities for SMBs and agencies

    Vendor Profiles icon
    Product Sendible
    Employees 27
    Headquarters London, UK
    Website Sendible.com
    Founded 2009
    Presence Privately held

    Logo for Sendible.

    3 year TCO for this solution falls into pricing tier 4, between $25,000 and $50,000

    Pricing tier for Sendible, tier 4.
    Pricing derived from public information

    OVERVIEW
    • Founded in 2009, Sendible is a rising player in the SMMP market. Sendible is primarily focused on the SMB space. A growing segment of its client base is digital marketing agencies and franchise companies.
    STRENGTHS
    • Sendible’s user interface is very intuitive and user friendly.
    • The product offers the ability to manage multiple social accounts simultaneously as well as schedule posts to multiple groups on different social networks, making Sendible a strong choice for social engagement and customer care.
    • Its affordability is strong given its feature set, making it an attractive option for organizations that are budget conscious.
    CHALLENGES
    • Sendible remains a smaller vendor in the market – its list of channel partners lags behind larger incumbents.
    • Sendible’s contextual and visual content analytics are lacking vis-à-vis more analytics-centric vendors.

    Sendible

    Vendor Profiles icon
    'Product' and 'Vendor' scores for Sendible. Overall product is 3/4; overall vendor is 4/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Sendible earned 6th out of 6 and 'Best Overall Value' in Social Publishing & Campaign Management and 4th out of 6 in Social Customer Care.
    Info-Tech Recommends

    Sendible offers a viable solution for small and mid-market companies, as well as social agencies with a focus on customer engagement for marketing and customer service use cases. However, organizations that need deep social analytics may want to look elsewhere.

    Scores for Sendible's individual features, color-coded as they were previously.

    Sprinklr

    Vendor Profiles icon
    Product Sprinklr
    Employees 1,100
    Headquarters New York, NY
    Website Sprinklr.com
    Founded 2009
    Presence Privately held

    Logo for Sprinklr.

    Pricing tier for Sprinklr, tier 6.
    Pricing derived from public information

    OVERVIEW
    • Sprinklr has risen rapidly as a best-of-breed player in the social media management market. It markets a solution geared towards multiple use cases, from customer intelligence and analytics to service-centric response management.
    STRENGTHS
    • Sprinklr’s breadth of capabilities are impressive: the vendor has maintained a strong focus on social-specific functionality. As a result of this market focus, they have invested prudently in advanced social analytics and moderation workflow capabilities.
    • Sprinklr’s user experience design and data visualization capabilities are top-notch, making it a solution that’s easy for end users and decision makers to get up and running with quickly.
    CHALLENGES
    • Relative to other players in the market, the breadth and scope of Sprinklr’s integrations with other customer experience management solutions is limited.
    • Based on its feature set and price point, Sprinklr is best suited for mid-to-large organizations. SMBs run the risk of an overbuy situation.

    Sprinklr

    Vendor Profiles icon

    'Product' and 'Vendor' scores for Sprinklr. Overall product is 3/4; overall vendor is 3/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Sprinklr earned 4th out of 6 in Social Listening & Analytics, 5th out of 6 in Social Publishing & Campaign Management, and 'Leader' in Social Customer Care.
    Info-Tech Recommends

    Sprinklr is a strong choice for small and mid-market organizations offering breadth of social media management capabilities that covers social analytics, engagement, and customer service.

    Scores for Sprinklr's individual features, color-coded as they were previously.

    Sprout Social provides small-to-medium enterprises with robust social response capabilities at a reasonable price

    Vendor Profiles icon
    Product Sprout Social
    Employees 200+
    Headquarters Chicago, IL
    Website Sproutsocial.com
    Founded 2010
    Presence Privately held

    Logo for Sprout Social.

    3 year TCO for this solution falls into pricing tier 6, between $100,000 and $250,000

    Pricing tier for Sprout Social, tier 6.
    Pricing derived from public information

    OVERVIEW
    • Sprout Social has built out its enterprise capabilities over the last several years. It offers strong feature sets for account management, social monitoring and analytics, and customer care – it particularly excels at the latter.
    STRENGTHS
    • Sprout’s unified inbox and response management features are some of the most intuitive we’ve seen. This makes it a natural option for providing customer service via social channels.
    • Sprout Social is priced competitively in relation to other vendors.
    • The product provides strong social asset management capabilities where users can set content permissions and expiration dates, and limit access.
    CHALLENGES
    • Deep contextual analysis is lacking: the solution clearly falls more to the engagement side of the spectrum, and is particularly suited for social customer service.
    • Sprout Social has a limited number of technology partners for integrations with applications such as CRM and marketing automation software.
    • It still has a predominantly North American market focus.

    Sprout Social

    Vendor Profiles icon
    'Product' and 'Vendor' scores for Sprout Social. Overall product is 3/4; overall vendor is 3/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Sprout Social earned 6th out of 6 in Social Listening & Analytics and 4th out of 6 in Social Publishing & Campaign Management.
    Info-Tech Recommends

    Sprout Social’s easy-to-understand benchmarking and dashboards, paired with strong response management, make it a great choice for mid-sized enterprises concerned with social engagement. However, organizations that want to do deep social analytics will need to augment the solution.

    Scores for Sprout Social's individual features, color-coded as they were previously.

    Sysomos’ prime feature is its hardy analytics built atop a plethora of inbound social channels

    Vendor Profiles icon

    Product Sysomos MAP and Heartbeat
    Employees 200+
    Headquarters Toronto, ON
    Website Sysomos.com
    Founded 2007
    Presence Privately held

    Logo for Sysomos.

    3 year TCO for this solution falls into pricing tier 4, between $25,000 and $50,000

    Pricing tier for Sysomos, tier 4.
    Pricing derived from public information

    OVERVIEW
    • Sysomos began life as a project at the University of Toronto prior to its acquisition by Marketwire in 2010.
    • It split from Marketwire in 2015 and redesigned its product to focus on social monitoring, analysis, and engagement.

    STRENGTHS

    • MAP and Heartbeat offer extensive contextual and sentiment analytics, consolidating findings through a spam-filtering process that parses out a lot of the “noise” inherent in social media data.
    • The solution provides an unlimited number of profiles, enabling more opportunities for collaboration.
    • It provides workflow summaries, documenting the actions of staff and providing an audit trail through the entire process.

    CHALLENGES

    • Sysomos has introduced a publishing tool for social campaigns. However, its outbound capabilities continue to lag, and there are currently no tools for asset management.
    • Sysomos’ application integration stack is limited relative to other vendors.

    Sysomos

    Vendor Profiles icon
    'Product' and 'Vendor' scores for Sysomos. Overall product is 3/4; overall vendor is 3/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Sysomos earned 'Leader' and 'Best Overall Value' in Social Listening & Analytics and 5th out of 6 as well as 'Best Overall Value' in Social Customer Care.
    Info-Tech Recommends

    Sysomos’ broad array of good features has made it a frequent challenger to Marketing Cloud on analytics-centric SMMP evaluation shortlists. Enterprise-scale customers specifically interested in social listening and analytics, rather than customer engagement and campaign execution, will definitely want to take a look.

    Scores for Sysomos's individual features, color-coded as they were previously.

    Viralheat offers a clean analysis of an organization’s social media activity and has beefed up response workflows

    Vendor Profiles icon

    Product Viralheat
    Employees 1,200
    Headquarters Chicago, IL
    Website Cision.com
    Founded 2015
    Presence Privately held

    Logo for Cision (Viralheat).

    3 year TCO for this solution falls into pricing tier 6, between $100,000 and $250,000

    Pricing tier for Cision (Viralheat), tier 6.
    Pricing derived from public information

    OVERVIEW
    • Viralheat has been in the social media market since 2009. It provides tools for analytics and in-band social engagement.
    • The company was acquired by Cision in 2015, a Chicago-based public relations technology company.

    STRENGTHS

    • Viralheat offers robust workflow management capabilities for social response and is particularly useful for customer service.
    • The product has strong post time optimization capability through its ViralPost scheduling feature.
    • Cision’s acquisition of Viralheat makes the product a great choice for third-party social media management, namely public relations and digital marketing agencies.

    CHALLENGES

    • Viralheat remains a smaller vendor in the market – its list of channel partners lags behind larger incumbents.
    • Contextual and sentiment analysis are lacking relative to other vendors.

    Cision (Viralheat)

    Vendor Profiles icon
    'Product' and 'Vendor' scores for Cision (Viralheat). Overall product is 3/4; overall vendor is 2/4.
    'Scenario Performance' awards and 'Value Index' in the three previous scenarios. Cision (Viralheat) earned  in Social Listening & Analytics,  in Social Publishing & Campaign Management, and  in Social Customer Care.
    Info-Tech Recommends

    Cision has upped its game in terms of social workflow and response management and it monitors an above-average number of services. It is a steadfast tool for brands that are primarily interested in outbound customer engagement for marketing and customer service use cases.

    Scores for Cision (Viralheat)'s individual features, color-coded as they were previously.

    Use the SMMP Vendor Shortlist Tool to customize the vendor analysis for your organization

    Vendor Profiles icon SMMP Vendor Shortlist & Detailed Feature Analysis Tool

    Instructions

    1. Eliminate misaligned vendors with knock-out criteria
      Use the SMMP Vendor Shortlist &am; Detailed Feature Analysis Tool to eliminate vendors based on specific knock-out criteria on tab 2, Knock-Out Criteria.
    2. Create your own evaluation framework
      Tailor the vendor evaluation to include your own product and vendor considerations on tab 3, Weightings. Identify the significance of advanced features for your own procurement on a scale of Mandatory, Optional, and Not Required on tab 4, Detailed Feature Analysis.
    3. Review the results of your customized evaluation
      Review your custom vendor shortlist on tab 5, Results.
    This evaluation uses both functional and architectural considerations to eliminate vendors.

    Knock-Out Criteria

    COTS vs. Open Source
    Deployment Models

    Sample of the SMMP Vender Shortlist & Detailed Feature Analysis Tool tab 5, Results.
    Sample Vendor Shortlist from tab 5, Results

    Interpreting the Results
    Your custom shortlist will rank vendors that passed the initial knock-out criteria based on their overall score.
    The shortlist will provide broken-down scoring, as well as a custom value index based on the framework set in the tool.

    Phase 2, Step 2: Select your SMMP solution

    2.1

    2.2

    Analyze and shortlist vendors in the space Select your SMMP solution

    This step will walk you through the following activities:

    • Prioritize your solution requirements.
    • Create an RFP to submit to vendors.
    • Solicit and review vendor proposals.
    • Conduct onsite vendor demonstrations.
    • Select the right solution.

    This step involves the following participants:

    • Core Project Team
    • Procurement Manager
    • Representative Stakeholders from Digital Marketing, Sales, and IT

    Outcomes of this step:

    • SMMP Selection Strategy

    Determine your SMMP procurement strategy

    Critical Points and Checks in Your Procurement
    • Follow your own organization’s procurement procedures to ensure that you adhere to your organization’s policies.
    • Based on your organization’s policies, identify if you are going to conduct a private or public RFP process.
      • If your RFP will contain sensitive information, use a private RFP process that is directed to specific vendors in order to protect the proprietary practices of your business.

    Info-Tech Insight

    If you are still not sure of a vendor’s capabilities, we recommend sending an RFI before proceeding with an RFP.

    INFO-TECH OPPORTUNITY

    If your organization lacks a clear procurement process, refer to Info-Tech's Optimize IT Procurement research to help construct a formal process for selecting application technology.

    Info-Tech’s 15-Step Procurement Process

    Use Info-Tech's procurement process to ensure that your SMMP selection is properly planned and executed.

    1. Initiate procurement.
    2. Select procurement manager.
    3. Prepare for procurement; check that prerequisites are met.
    4. Select appropriate procurement vehicle.
    5. Assemble procurement teams.
    6. Create procurement project plan.
    7. Identify and notify vendors about procurement.
    8. Configure procurement process.
    9. Gather requirements.
    10. Prioritize requirements.
    11. Build the procurement documentation package.
    12. Issue the procurement.
    13. Evaluate proposals.
    14. Recommend a vendor.
    15. Present to management.

    Much of your procurement process should already be outlined from your charter and initial project structuring.
    In this stage of the process, focus on the successful completion of steps 7-15.

    Prioritize your solution requirements based on your business, architecture, and performance needs

    Associated Activity icon

    INPUT: Requirements Workbook and requirements gathering findings

    OUTPUT: Full documentation of requirements for the RFP and solution evaluation process

    Completed in Section 3

    1. Identify Your Requirements
      Use the findings being collected in the Requirements Workbook and related materials to define clear requirements around your organization’s desired SMMP.
    2. Prioritize Your Requirements
      • Identify the significance of each requirement for your solution evaluation.
      • Identify features and requirements as mandatory, important, or optional.
      • Control the number of mandatory requirements you document. Too many mandatory requirements could create an unrealistic framework for evaluating solutions.
    3. Create a Requirements Package
      • Consolidate your identified requirements into one list, removing redundancies and conflicts.
      • Categorize the requirements based on their priority and nature.
      • Use this requirements package as you evaluate vendors and create your RFP for shortlisted vendors.

    Info-Tech Insight

    No solution will meet 100% of your requirements. Control the number of mandatory requirements you place in your procurement process to ensure that vendors that are the best fit for your organization are not eliminated unnecessarily.

    Create an RFP to submit to vendors

    Supporting Tool icon Request for Proposal Template
    Associated Activity icon Activity: Interpreting the Results

    INPUT: Requirements package, Organization’s procurement procedures

    OUTPUT: RFP

    MATERIALS: Whiteboard and markers

    PARTICIPANTS: Project manager, Core project team

    Leverage Info-Tech’s SMMP RFP Template to convey your desired suite requirements to vendors and outline the proposal and procurement steps set by your organization.

    Build Your RFP
    1. Outline the organization's procurement instructions for vendors (Sections 1, 3, and 5).
    2. Input the requirements package created in Activity 5.2 into your RFP (Section 4).
    3. Create a scenario overview to provide vendors an opportunity to give an estimated price.

    Approval Process

    Each organization has a unique procurement process; follow your own organization’s process as you submit your RFPs to vendors.

    1. Ensure compliance with your organization's standards and gain approval for submitting your RFP.

    Info-Tech RFP
    Table of Contents

    1. Statement of Work
    2. General Information
    3. Proposal Preparation Instructions
    4. Scope of Work, Specifications, and Requirements
    5. Vendor Qualifications and References
    6. Budget and Estimated Pricing
    7. Vendor Certification

    Standardize the potential responses from vendors and streamline your evaluation with a response template

    Supporting Tool icon Vendor Response Template
    Sample of the Vendor Response Template. Adjust the scope and content of the Vendor Response Template to fit your SMMP procurement process and vendor requirements.

    Section

    Why is this section important?

    About the Vendor This is where the vendor will describe itself and prove its organizational viability.
    Understanding of the Challenge Demonstrates that understanding of the problem is the first step in being able to provide a solution.
    Methodology Shows that there is a proven methodology to approach and solve the challenge.
    Proposed Solution Describes how the vendor will address the challenge. This is a very important section as it articulates what you will receive from the vendor as a solution.
    Project Management, Plan, and Timeline Provides an overview of the project management methodology, phases of the project, what will be delivered, and when.
    Vendor Qualifications Provides evidence of prior experience with delivering similar projects for similar clients.
    References Provides contact information for individuals/organizations for which the vendor has worked and who can vouch for the experience and success of working with this vendor.
    Value Added Services Remember, this could lead to a long-term relationship. It’s not only about what you need now, but also what you may need in the future.
    Requirements Confirmation from the vendor as to which requirements it can meet and how it will meet them.

    Evaluate the RFPs you receive within a clear scoring process

    Supporting Tool icon SMMP RFP Evaluation and Scoring Tool
    Steps to follow: 'Review, Evaluate, Shortlist, Brief, Select' with the first 3 highlighted.

    Associated Activity icon Activity

    Build a fair evaluation framework that evaluates vendor solutions against a set criteria rather than relative comparisons.

    INSTRUCTIONS

    1. Have members of the SMMP evaluation team review the RFP responses given by vendors.
    2. Input vendor solution information into the SMMP RFP Evaluation and Scoring Tool.
    3. Analyze the vendors against your identified evaluation framework.
    4. Identify vendors with whom you wish to arrange vendor briefings.
    5. Contact vendors and arranging briefings.
    How to use this tool
    • Review the feature list and select where each feature is mandatory, desirable, or not applicable.
    • Select if each feature has been met by the vendor RFP response.
    • Enter the costing information provided by each vendor.
    • Determine the relative importance of the features, architecture, and support.
    Tool Output
    • Costing
    • Overall score
    • Evaluation notes and comments

    Vendor product demonstration

    Vendor Profiles icon Demo Script Template

    Demo

    Invite vendors to come onsite to demonstrate the product and to answer questions. Use a demo script to help identify how a vendor’s solution will fit your organization’s particular business capability needs.
    Make sure the solution will work for your business

    Provide the vendor with some usage patterns for the SMMP tool in preparation for the vendor demo.

    Provide the following information to vendors in your script:

    • Usage for different groups.
    • SMMP usage and [business analytics] usage.
    • The requirements for administration.
    How to challenge the vendors in the demo
    • Change visualization/presentation.
    • Change the underlying data.
    • Add additional datasets to the artifacts.
    • Collaboration capabilities.
    • Perform an investigation in terms of finding BI objects and identifying previous changes, and examine the audit trail.
    Sample of the SMMP Demo Script Template
    SMMP Demo Script Template

    INFO-TECH ACTIVITY

    INPUT: Requirements package, Use-case results

    OUTPUT: Onsite demo

    1. Create a demo script that will be sent to vendors that outlines SMMP usage patterns from your organization.
    2. Construct the demo script with your SMMP evaluation team, providing both prompts for the vendor to display the capabilities and some sample data for the vendor to model.

    Use vendor RFPs and demos to select the SMMP that best fits your organization’s needs

    Supporting Tool icon Suite Evaluation and Scoring Tool: Tab 5, Overall Score

    Don’t just choose the vendor who gave the best presentation. Instead, select the vendor who meets your functional requirements and organizational needs.

    Category Weight Vendor 1 Vendor 2 Vendor 3 Vendor 4
    SMMP Features 60% 75% 80% 80% 90%
    Architecture 25% 55% 60% 90% 90%
    Support 15% 10% 70% 60% 95%
    Total Score 100% 60% 74% 80% 91%
    Use your objective evaluation to select a vendor to recommend to management for procurement. Arrow from 'Vendor 4' to post script.

    Don’t automatically decide to go with the highest score; validate that the vendor is someone you can envision working with for the long term.

    • Select a vendor based not only on their evaluation performance, but also on your belief that you could form a lasting and supportive relationship with them.
    • Integration needs are dynamic, not static. Find an SMMP tool and vendor that have strong capabilities and will fit with the application and integration plans of the business.
    • In many cases, you will require professional services together with your SMMP purchase to make sure you have some guidance in the initial development and your own staff are trained properly.

    Following the identification of your selected suite, submit your recommendation to the organization’s management or evaluation team for final approval.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of an Info-Tech analyst.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    Sample of 'Create an RFP to submit to vendors' slide with 'Request for Proposal Template'. Create an RFP for SMMP procurement

    Our Info-Tech analyst will walk you through the RFP preparation to ensure the SMMP requirements are articulated clearly to vendors in this space.

    Sample of 'Vendor product demonstration' slide with 'Demo Script Template'. Create SMMP demo scripts

    An analyst will walk you through the demo script preparation to guide the SMMP product demonstrations and briefings offered by vendors. The analyst will ensure the demo script addresses key requirements documented earlier in the process.

    Select and Implement a Social Media Management Platform

    PHASE 3

    Review Implementation Considerations

    Phase 3: Review implementation considerations

    Steps of this blueprint represented by circles of varying colors and sizes, labelled by text of different sizes. Only Phase 3 is highlighted.
    Estimated Timeline:

    Info-Tech Insight

    Even a solution that is a perfect fit for an organization will fail to generate value if it is not properly implemented or measured. Conduct the necessary planning before implementing your SMMP.

    Major Milestones Reached
    • Plan for implementation and expected go-live date

    Key Activities Completed

    • SMMP Implementation Plan
    • Governance Plan
    • Change Control Methods

    Outcomes from This Phase

    Plans for implementing the selected SMMP tool.

    Phase 3 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Review Implementation Considerations

    Proposed Time to Completion: 2 weeks
    Step 3.1: Establish best practices for SMMP implementation Step 3.2: Assess the measured value from the project
    Start with an analyst kick-off call:
    • Determine the right governance structure to overlook the SMMP implementation.
    • Identify integrations with other applications.
    • Establish an ongoing maintenance plan.
    • Assess the different deployment models.
    Review findings with analyst:
    • Determine the key performance indicators for each department using the SMMP
    • Identify key performance indicators for business units using an SMMP
    Then complete these activities…
    • Establish a governance structure for social media.
    • Specify data linkages with CRM.
    • Identify risks and mitigation strategies
    • Determine the right deployment model for your organization.
    Then complete these activities…
    • Identify key performance indicators for business units using an SMMP
    With these tools & templates:
    • Social Media Steering Committee
    Phase 3 Results & Insights:
    • Implementation Plan
    • SMMP KPIs

    Phase 3, Step 1: Establish best practices for SMMP implementation

    3.1

    3.2

    Establish best practices for SMMP implementation Assess the measured value from the project

    This step will walk you through the following activities:

    • Establish a governance structure for social media management.
    • Specify the data linkages you will need between your CRM platform and SMMP.

    This step involves the following participants:

    • Core Project Team

    Outcomes of this step

    • Social Media Steering Committee Charter
    • SMMP data migration Inventory
    • Determination of the deployment model that works best for your organization
    • Deployment Model

    Follow these steps for effective SMMP implementation

    What to Consider

    • Creating an overall social media strategy is the critical first step in implementing an SMMP.
    • Selecting an SMMP involves gathering business requirements, then translating those requirements into specific selection criteria. Know exactly what your business needs are to ensure the right SMMP is selected.
    • Implement the platform with an eye toward creating business value: establish points of integration with the existing CRM solution, establish ongoing maintenance policies, select the right deployment model, and train end users around role-based objectives.
    Arrow pointing down.

    Plan

    • Develop a strategy for customer interaction
    • Develop a formal strategy for social media
    • Determine business requirements
    Arrow pointing down.

    Create RFP

    • Translate into functional requirements
    • Determine evaluation criteria
    Arrow pointing down.

    Evaluate

    • Evaluate vendors against criteria
    • Shortlist vendors
    • Perform in-depth vendor review

    Implement

    • Integrate with existing CRM ecosystem (if applicable)
    • Establish ongoing maintenance policies
    • Map deployment to organizational models
    • Train end-users and establish acceptable use policies
    • Designate an SMMP subject matter expert

    Before deploying the SMMP, ensure the right social media governance structures are in place to oversee implementation

    An SMMP is a tool, not a substitute, for adequate cross-departmental social media oversight. You must coordinate efforts across constituent stakeholders.

    • Successful organizations have permanent governance structures in place for managing social media. For example, mature companies leverage Social Media Steering Committees (SMSCs) to coordinate the social media initiatives of different business units and departments. Large organizations with highly complex needs may even make use of a physical command center.
    • Compared to traditional apps projects (like CRM or ERP), social media programs tend to start as grassroots initiatives. Marketing and Public Relations departments are the most likely to spearhead the initial push, often selecting their own tools without IT involvement or oversight. This causes application fragmentation and a proliferation of shadow IT.
    • This organic adoption contrasts with the top-down approach many IT leaders are accustomed to. Bottom-up growth can ensure rapid response to social media opportunities, but it also leads to insufficient coordination. A conscious effort should be made to mature your social media strategy beyond this disorganized initial state.
    • IT can help be a “cat herder” to shepherd departments into shared initiatives.

    Info-Tech Best Practice

    Before implementing the SMMP, go through the appropriate organizational governance structures to ensure they have input into the deployment. If a social media steering committee is not already in place, rolling out an SMMP is a great opportunity to get one going. See our research on social media program execution for more details.

    Establish a governance structure for social media management

    Associated Activity icon 3.1.1 60 minutes

    INPUT: Project stakeholders, SMMP mandate

    OUTPUT: Social Media Governance Structure

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project Manager, Core project team

    1. Describe the unique role that the governance team will play in social media management.
    2. Describe the overall purpose statement of the governance team.
    3. Define the roles and responsibilities of the governance team.
    4. Document the outcome in the Social Media Steering Committee Charter.

    EXAMPLE

    Executive Sponsorship
    Social Media Steering Committee
    VP Marketing VP Sales VP Customer Service VP Public Relations CIO/ IT Director
    Marketing Dept. Sales Dept. Customer Service Dept. Public Relations Dept. IT Dept.

    Use Info-Tech’s Social Media Steering Committee Charter Template to define roles and ensure value delivery

    Supporting Tool icon 3.1

    Leaders must ensure that the SMSC has a formal mandate with clear objectives, strong executive participation, and a commitment to meeting regularly. Create an SMSC Charter to formalize the committee governance capabilities.

    Developing a Social Media Steering Committee Charter:
    • Outline the committee’s structure, composition, and responsibilities using the Info-Tech Social Media Steering Committee Charter Template.
    • This template also outlines the key tasks and responsibilities for the committee:
      • Providing strategic leadership for social media
      • Leading SMMP procurement efforts
      • Providing process integration
      • Governing social media initiatives
      • Ensuring open communications between departments with ownership of social media processes
    • Keep the completed charter on file and available to all committee members. Remember to periodically update the document as organizational priorities shift to ensure the charter remains relevant.

    INFO-TECH DELIVERABLE

    Sample of the Social Media Steering Committee Charter Template.

    Integrate your social media management platform with CRM to strengthen the realization of social media goals

    • Linking social media to existing customer relationship management solutions can improve information accuracy, reduce manual effort and provide more in-depth customer insights.
      • Organizations Info-Tech surveyed, and who integrated their solutions, achieved more goals as a result.
    • Several major CRM vendors are now offering products that integrate with popular social networking services (either natively or by providing support for third-party add-ons).
      • For example, Salesforce.com now allows for native integration with Twitter, while an add-on available for Oracle gathers real-time information about prospects by pulling their extended information from publicly available LinkedIn profiles.
    • Some CRM vendors are acquiring established SMMPs outright.
      • For example, Salesforce.com acquired Radian6 for their clients that have advanced social media requirements.
    Bar chart comparing the social media goal realization of organizations that integrated their SMMP and CRM technology and those that didn't.

    Info-Tech Best Practice

    CRM vendors still lag in out-of-the-box social features, making a separate SMMP purchase a given. For companies that have not formally integrated social media with CRM, IT should develop the business case in conjunction with the applicable business-side partner (e.g. Marketing, Sales, Service, PR, etc.).

    Establish points of integration between SMMPs and CRM suites to gain a 360 degree view of the customer

    • Social media is a valuable tool from a standalone perspective, but its power is considerably magnified when it’s paired with the CRM suite.
    • Many SMMPs offer native integration with CRM platforms. IT should identify and enable these connectors to strengthen the business value of the platform.
    • An illustrated example of how an SMMP linked via CRM can provide proactive service while contributing to sales and marketing.
      An example of how an SMMP linked via CRM can provide proactive service while contributing to sales and marketing.
    • New channels do not mean they stand alone and do not need to be integrated into the rest of the customer interaction architecture.
    • Challenge SMMP vendors to demonstrate integration experience with CRM vendors and multimedia queue vendors.
    • Manual integration – adding resolved social inquiries yourself to a CRM system after closure – cannot scale given the rapid increase in customer inquiries originating in the social cloud. Integration with interaction management workflows is most desirable.

    These tools are enabling sales, and they help us serve our customers better. And anything that does that, is a good investment on our part.” Chip Meyers, (Sales Operation Manager, Insource)

    Info-Tech Best Practice

    SMMPs are a necessary single-channel evolutionary step, just like there used to be email-only and web chat-only customer service options in the late 1990s. But they are temporary. SMMPs will eventually be subsumed into the larger marketing automation ecosystem. Only a few best of breed will survive in 10 years.

    Specify the data linkages you will need between your CRM platform and SMMP

    Associated Activity icon 3.1.2 1 hour

    INPUT: SMMP data sources

    OUTPUT: SMMP data migration inventory

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project Manager, Core project team

    1. Build a list of sources of information that you’ll need to integrate with your CRM tool.
    2. Identify:
      1. Data Source
      2. Integration Direction
      3. Data Type and Use Case
    Data Source Migration/Integration Direction Data Type/Use Case
    Social Platform Bidirectional Recent Social Posts
    Customer Data Warehouse Bidirectional Contact Information, Cases, Tasks, Opportunities

    Establish a plan for ongoing platform maintenance

    • Like other enterprise applications, the SMMP will require periodic upkeep. IT must develop and codify policies around ongoing platform maintenance.
    • Platform maintenance should touch on the following areas:
      • Account access and controls – periodically, access privileges for employees no longer with the organization should be purged.
      • Platform security – cloud-based platforms will be automatically updated by the vendor to plug security holes, but on-premises solutions must be periodically updated to ensure that there are no gaps in security.
      • Pruning of old or outdated material – pages (e.g. Facebook Groups, Events, and Twitter feeds) that are no longer in use should be pruned. For example, a management console for an event that was held two years ago is unnecessary. Remove it from the platform (and the relevant service) to cut down on clutter (and reduce costs for “per-topic” priced platforms.)
    SMMP being fixed by a wrench.

    IT: SMMP Maintenance Checklist

    • Account upkeep and pruning
    • Security, privacy, and access
    • Content upkeep and pruning

    Info-Tech Best Practice

    Even cloud-based platforms like SMMPs require a certain degree of maintenance around account controls, security, and content pruning. IT should assist the business units in carrying out periodic maintenance.

    Social media is a powerful medium, but organizations must develop a prudent strategy for minimizing associated risks

    Using an SMMP can help mitigate many of the risks associated with social media. Review the risk categories on the next several slides to determine which ones can be mitigated by effective utilization of a dedicated SMMP.

    Risk Category Likelihood Risk(s) Suggested Mitigation Strategy
    Privacy and Confidentiality High
    • Risk of inappropriate exchange of information between personal and business social networks (e.g. a personal account used for company business).
    • Abuse of privacy and confidentiality laws.
    • Whenever possible, implement separate social network accounts for business, and train your employees to avoid using personal accounts at work.
    • Have a policy in place for how to treat pre-existing accounts versus newly created ones for enterprise use.
    • Use the “unified sign-on” capabilities of an SMMP to prevent employees from directly accessing the underlying social media services.

    Good governance means being proactive in mitigating the legal and compliance risks of your social media program

    Risk Category Likelihood Risk(s) Suggested Mitigation Strategy
    Trademark and Intellectual Property Medium
    • Copyrighted information could inappropriately be used for promotional and other business purposes (e.g. using a private user’s images in collateral).
    • Legal should conduct training to make sure the organization’s social media representatives only use information in the public domain, nothing privileged or confidential. This is particularly sensitive for Marketing and PR.
    Control over Brand Image and Inappropriate Content Medium
    • Employees on social media channels may post something inappropriate to the nature of your business.
    • Employees can post something that compromises industry and/or ethical standards.
    • Use SMMP outbound filtering/post approval workflows to censor certain inappropriate keywords.
    • Select the team carefully and ensure they are fully trained on both official company policy and social media etiquette.
    • Ensure strong enforcement of Social Media AUPs: take a zero tolerance approach to flagrant abuses.

    Security is a top-of-mind risk, though bandwidth is a low priority issue for most organizations

    Risk Category Likelihood Risk(s) Suggested Mitigation Strategy
    IT Security Medium Risk of employees downloading or being sent malware through social media services. Your clients are also exposed to this risk; this may undermine their trust of your brand.
    • Implement policies that outline appropriate precautions by employees, such as using effective passwords and not downloading unauthorized software.
    • Use web-filtering and anti-malware software that incorporates social media as a threat vector.
    Bandwidth Low Increase in bandwidth needs to support social media efforts, particularly when using video social media such as YouTube.
    • Plan for any bandwidth requirements with IT network staff.
    • Most social media strategies shouldn’t have a material impact on bandwidth.

    Poaching of client lists and increased costs are unlikely to occur, but address as a worst case scenario

    Risk Category Likelihood Risk(s) Suggested Mitigation Strategy
    Competitors Poaching Client Lists Low The ability for a competitor to view lists of clients that have joined your organization’s social media groups.
    • In a public social network, you cannot prevent this. Monitor your own brand as well as competitors’. If client secrecy must be maintained, then you should use a private social network (e.g. Jive, Lithium, private SharePoint site), not a public network.
    Increased Cost of Servicing Customers Low Additional resources may be allocated to social media without seeing immediate ROI.
    • Augment existing customer service responsibilities with social media requests.
    • If a dedicated resource is not available, dedicate a specific amount of time per employee to be spent addressing customer concerns via social media.

    Determine your top social media risks and develop an appropriate mitigation strategy that incorporates an SMMP

    Associated Activity icon 3.1.3 20 minutes

    INPUT: Risk assessment inventory

    OUTPUT: Top social media risks and mitigation plan

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project Manager, Core project team

    1. Based on your unique business variables, which social media risk categories are most applicable to your organization? In what order?
    2. Summarize the top risks below and identify mitigation steps (which often involve effective use of a dedicated SMMP).
    Rank Risk Category Mitigation Steps
    High Confidentiality We have strong records retention requirements, so using a rules-based SMMP like SocialVolt is a must.
    Medium Brand Image Ensure that only personnel who have undergone mandatory training can touch our social accounts via an SMMP.
    Low Competitors’ Poaching Lists Migrate our Business Services division contacts onto LinkedIn – maintain no Facebook presence for these clients.

    Determine the workflows that will be supported using your social media management platform

    Determine when, where, and how social media services should be used to augment existing workflows across (and between) the business process domains. Establish escalation rules and decide whether workflows will be reactive or proactively.

    • Fine tune your efforts in each business process domain by matching social technologies to specific business workflows. This will clearly delineate where value is created by leveraging social media.
    • Common business process domains that should be targeted include marketing, sales, and customer service. Public relations, human resources, and analyst relations are other areas to consider for social process support.
    • For each business process domain, IT should assist with technology enablement and execution.
    Target domains: 'Marketing', 'Sales', 'Customer Service', 'Public Relations', 'Human Resources'.

    Info-Tech Best Practice

    The social media governance team should have high-level supervision of process workflows. Ask to see reports from line managers on what steps they have taken to put process in place for reactive and proactive customer interactions, as well as escalations and channel switching. IT helps orchestrate these processes through knowledge and expertise with SMMP workflow capability.

    There are three primary models for SMMP deployment: the agency model uses the SMMP as a third-party offering

    There are three models for deploying an SMMP: agency, centralized, and distributed.

    Agency Model
    Visual of the Agency Model with the 'Social Cloud' attached to the 'SMMP' attached to the 'Agency (e.g. marketing or public relations agency)' attached to the 'Client Organization (Marketing, Sales, Service)'
    • In the agency model of SMMP deployment, the platform is managed on behalf of the organization by a third party – typically a marketing or public relations agency.
    • The agency serves as the primary touch point for the client organization: the client requests the types of market research it wants done, or the campaigns it wants managed. The agency uses its own SMMP(s) to execute the requests. Often, the SMMP’s results or dashboards will be rebranded by the agency.
    • Pros: The agency model is useful when large portions of marketing, service, or public relations are already being outsourced to a third-party provider. Going with an agency also splits the cost of more expensive SMMPs over multiple clients, and limits deployment costs.
    • Cons: The client organization has no direct control over the platform; going with an agency is not cost effective for firms with in-house marketing or PR capabilities.
    • Advice: Go with an agency-managed SMMP if you already use an agency for marketing or PR.

    Select the centralized deployment model when SMMP functionality rests in the hands of a single department

    Centralized Model
    Visual of the Centralized Model with the 'Social Cloud' attached to the 'SMMP' attached to 'Marketing' attached to the 'Sales' and 'Service'
    In this example, marketing owns and manages a single SMMP
    • In the centralized model, a single SMMP workspace is owned and operated predominantly by a single business unit or department. Unlike the agency model, the SMMP functionality is utilized in-house.
    • Information from the SMMP may occasionally be shared with other departments, but normally the platform is used almost exclusively by a single group in the company. Marketing or public relations are usually the groups that maintain ownership of the SMMP in the centralized model (with selection and deployment assistance from the IT department).
    • Pros: The centralized model provides small organizations with an in-house, dedicated SMMP without having to go through an agency. Having a single group own and manage the SMMP is considerably more cost effective than having SMMPs licensed to multiple business units in a small company.
    • Cons: If more and more departments start clamoring for control of SMMP resources, the centralized model will fail to meet the overall needs of the organization.
    • Advice: Small-to-medium enterprises with mid-sized topic or brand portfolios should use the centralized model.

    Go with a distributed deployment if multiple business units require advanced SMMP functionality

    Distributed Model
    Visual of the Distributed Model with the 'Social Cloud' attached to two 'SMMPs', one attached to 'Marketing' and 'Sales', the other to 'Customer Service' and 'Public Relations'.
    • In the distributed model, multiple SMMPs (sometimes from different vendors) or multiple SMMP workspaces (from a single vendor) are deployed to several groups (e.g. multiple departments or brand portfolios) in the organization.
    • Pros: The distributed model is highly effective in large organizations with multiple departments or brands that each are interested in SMMP functionality. Having separate workspaces for each business group enables customizing workspaces to satisfy different goals of the different business groups.
    • Cons: The cost of deploying multiple SMMP workspaces can be prohibitive.
    • Advice: Go with the distributed model if your organization is large and has multiple relevant departments or product marketing groups, with differing social media goals.

    Determine which deployment model works best for your organization

    Associated Activity icon 3.1.4 1 Hour

    INPUT: Deployment models

    OUTPUT: Best fit deployment model

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Project Manager, Core project team

    1. Assess and understand the three models of SMMP deployments: agency, centralized and distributed. Consider the pros and cons of each model.
    2. Understand how your organization manages enterprise social media. Consider the follow questions:
      • What is the size of your organization?
      • Who owns the management of social media in your organization?
      • Is social media managed in-house or outsourced to an agency?
      • What are the number of departments that use and rely on social media?
    3. Select the best deployment model for your organization.
    Agency Model Centralized Model Distributed Model
    Visual of the Agency Model with the 'Social Cloud' attached to the 'SMMP' attached to the 'Agency (e.g. marketing or public relations agency)' attached to the 'Client Organization (Marketing, Sales, Service)' Visual of the Centralized Model with the 'Social Cloud' attached to the 'SMMP' attached to 'Marketing' attached to the 'Sales' and 'Service' Visual of the Distributed Model with the 'Social Cloud' attached to two 'SMMPs', one attached to 'Marketing' and 'Sales', the other to 'Customer Service' and 'Public Relations'.

    Create an SMMP training matrix based on social media roles

    IT must assist the business by creating and executing a role-based training program. An SMMP expert in IT should lead training sessions for targeted groups of end users, training them only on the functions they require to perform their jobs.

    Use the table below to help identify which roles should be trained on which SMMP features.

    PR Professionals Marketing Brand, Product, and Channel Managers Customer Service Reps and Manager Product Development and Market Research IT Application Support
    Account Management Circle indicating a positive field. Circle indicating a positive field. Circle indicating a positive field. Circle indicating a positive field. Circle indicating a positive field.
    Response and Engagement Circle indicating a positive field. Circle indicating a positive field. Circle indicating a positive field.
    Social Analytics and Data Mining Circle indicating a positive field. Circle indicating a positive field. Circle indicating a positive field.
    Marketing Campaign Execution Circle indicating a positive field. Circle indicating a positive field.
    Mobile Access Circle indicating a positive field. Circle indicating a positive field. Circle indicating a positive field.
    Archiving Circle indicating a positive field.
    CRM Integration Circle indicating a positive field.

    Phase 3, Step 2: Track your metrics

    3.1

    3.2

    Establish best practices for SMMP implementation Assess the measured value from the project

    This step will walk you through the following activities:

    • Identify metrics and KPIs for business units using a dedicated SMMP

    This step involves the following participants:

    • Core Project Team
    • Representative Stakeholders from Digital Marketing, Sales, and IT

    Outcomes of this step

    • Key Performance Indicators

    Know key performance indicators (KPIs) for each department that employs a dedicated social media management platform

    Share of Voice
    How often a brand is mentioned, relative to other brands competing in a defined market.

    User Engagement
    Quantity and quality of customer interactions with a brand or with each other, either on- or offline.

    Campaign Success
    Tracking reception of campaigns and leads brought in as a result.
    Marketing KPIs Reach
    Measurement of the size of market your brand advertisements and communications reach.

    Impressions
    The number of exposures your content, ad, or social post has to people in your target audience.

    Cost per Point (CPP)
    Cost to reach one percent of your organization’s audience.

    Product Innovation
    The quantity and quality of improvements, updates, and changes to existing products.

    Time-to-Market
    Time that passes between idea generation and the product being available to consumers.

    Product Development KPIs

    New Product Launches
    A ratio of completely new product types released to brand extensions and improvements.

    Cancelled Projects
    Measure of quality of ideas generated and quality of idea assessment method.

    Use social media metrics to complement your existing departmental KPIs – not usurp them

    Cost per Lead
    The average amount an organization spends to find leads.

    Conversion Rate
    How many sales are made in relation to the number of leads.

    Quantity of Leads
    How many sales leads are in the funnel at a given time.
    Sales KPIs Average Cycle Time
    Average length of time it takes leads to progress through the sales cycle.

    Revenue by Lead
    Total revenue divided by total number of leads.

    Avg. Revenue per Rep
    Total revenue divided by number of sales reps.

    Time to Resolution
    Average amount of time it takes for customers to get a response they are satisfied with.

    First Contact Resolution
    How often customer issues are resolved on the first contact.

    Customer Service KPIs

    Contact Frequency
    The number of repeated interactions from the same customers.

    Satisfaction Scores
    Determined from customer feedback – either through surveys or gathered sporadically.

    Social analytics don’t operate alone; merge social data with traditional data to gain the deepest insights

    Employee Retention
    The level of effort an organization exerts to maintain its current staff.

    Employee Engagement
    Rating of employee satisfaction overall or with a given aspect of the workplace.

    Preferred Employer
    A company where candidates would rather work over other companies.
    Marketing KPIs Recruitment Cycle Time
    Average length of time required to recruit a new employee.

    Employee Productivity
    A comparison of employee inputs (time, effort, etc.) and outputs (work).

    Employee Referrals
    The ratio of employee referrals that complete the recruitment process.

    There are conversations going on behind your back, and if you're not participating in them, then you're either not perpetuating the positive conversation or not diffusing the negative. And that's irresponsible in today's business world.” (Lon Safko, Social Media Bible)

    Identify key performance indicators for business units using an SMMP

    Associated Activity icon 3.2.1 30 minutes

    INPUT: Social media goals

    OUTPUT: SMMP KPIs

    MATERIALS: Whiteboard, Markers

    PARTICIPANTS: Representative stakeholders from different business units

    For each listed department, identify the social media goals and departmental key performance indicators to measure the impact of the SMMP.

    DepartmentSocial Media GoalsKPI
    Marketing
    • E.g. build a positive brand image
    • Net increase in brand recognition
    Product Development
    • Launch a viral video campaign showcasing product attributes to drive increased YT traffic
    • Net increase in unaided customer recall
    Sales
    • Enhance sales lead generation through social channels
    • Net increase in sales lead generation in the social media sales funnel
    Customer Service
    • Produce more timely responses to customer enquiries and complaints
    • Reduced time to resolution
    HR
    • Enhance social media recruitment channels
    • Number of LinkedIn recruitment

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of an Info-Tech analyst.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1.1

    Sample of activity 3.1.1 'Establish a governance structure for social media management'. Establish a governance structure for social media management

    Our Info-Tech analyst will walk you through the exercise of developing roles and responsibilities to govern your social media program.

    3.1.2

    Sample of activity 3.1.2 'Specify the data linkages you will need between your CRM platform and SMMP'. Specify the data linkages you will need between your CRM and SMMP

    The analyst will help you identify the points of integration between the SMMP and your CRM platform.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    3.1.3

    Sample of activity 3.1.3 'Determine your top social media risks and develop an appropriate mitigation strategy that incorporates an SMMP'. Determine your top social media risks

    Our Info-Tech analyst will facilitate the discussion to identify the top risks associated with the SMMP and determine mitigation strategies for each risk.

    3.1.4

    Sample of activity 3.1.4 'Determine which deployment model works best for your organization'. Determine the best-fit deployment model

    An analyst will demonstrate the different SMMP deployment models and assist in determining the most suitable model for your organization.

    3.2.1

    Sample of activity 3.2.1 'Identify key performance indicators for business units using an SMMP'. Identify departmental KPIs

    An analyst will work with different stakeholders to determine the top social media goals for each department.

    Appendices

    Works Cited

    Ashja, Mojtaba, Akram Hadizadeh, and Hamid Bidram. “Comparative Study of Large Information Systems’ CSFs During Their Life Cycle.” Information Systems Frontiers. September 8, 2013.

    UBM. “The State of Social Media Analytics.” January, 2016.

    Jobvite. “2015 Recruiter Nation Survey.” September, 2015.

    Vendor Landscape Analysis Appendices

    Vendor Landscape Methodology:
    Overview

    Info-Tech’s Vendor Landscapes are research materials that review a particular IT market space, evaluating the strengths and abilities of both the products available in that space, as well as the vendors of those products. These materials are created by a team of dedicated analysts operating under the direction of a senior subject matter expert over a period of several weeks.

    Evaluations weigh selected vendors and their products (collectively “solutions”) on the following eight criteria to determine overall standing:

    • Features: The presence of advanced and market-differentiating capabilities.
    • User Interface: The intuitiveness, power, and integrated nature of administrative consoles and client software components.
    • Affordability: The three-year total cost of ownership of the solution; flexibility of the pricing and discounting structure.
    • Architecture: The degree of integration with the vendor’s other tools, flexibility of deployment, and breadth of platform applicability.
    • Viability: The stability of the company as measured by its history in the market, the size of its client base, and its percentage of growth.
    • Focus: The commitment to both the market space, as well as to the various sized clients (small, mid-sized, and enterprise clients).
    • Reach: The ability of the vendor to support its products on a global scale.
    • Sales: The structure of the sales process and the measure of the size of the vendor’s channel and industry partners.

    Evaluated solutions within scenarios are visually represented by a Pathway to Success, based off a linear graph using above scoring methods:

    • Use-case scenarios are decided upon based on analyst expertise and experience with Info-Tech clients.
    • Use-case scenarios are defined through feature requirements, predetermined by analyst expertise.
    • Placement within scenario rankings consists of features being evaluated against the other scoring criteria.

    Info-Tech’s Vendor Landscapes are researched and produced according to a strictly adhered to process that includes the following steps:

    • Vendor/product selection
    • Information gathering
    • Vendor/product scoring
    • Information presentation
    • Fact checking
    • Publication

    This document outlines how each of these steps is conducted.

    Vendor Landscape Methodology:
    Vendor/Product Selection & Information Gathering

    Info-Tech works closely with its client base to solicit guidance in terms of understanding the vendors with whom clients wish to work and the products that they wish evaluated; this demand pool forms the basis of the vendor selection process for Vendor Landscapes. Balancing this demand, Info-Tech also relies upon the deep subject matter expertise and market awareness of its Senior Analysts to ensure that appropriate solutions are included in the evaluation. As an aspect of that expertise and awareness, Info-Tech’s analysts may, at their discretion, determine the specific capabilities that are required of the products under evaluation, and include in the Vendor Landscape only those solutions that meet all specified requirements.

    Information on vendors and products is gathered in a number of ways via a number of channels.

    Initially, a request package is submitted to vendors to solicit information on a broad range of topics. The request package includes:

    • A detailed survey.
    • A pricing scenario (see Vendor Landscape Methodology: Price Evaluation and Pricing Scenario, below).
    • A request for reference clients.
    • A request for a briefing and, where applicable, guided product demonstration.

    These request packages are distributed approximately eight weeks prior to the initiation of the actual research project to allow vendors ample time to consolidate the required information and schedule appropriate resources.

    During the course of the research project, briefings and demonstrations are scheduled (generally for one hour each session, though more time is scheduled as required) to allow the analyst team to discuss the information provided in the survey, validate vendor claims, and gain direct exposure to the evaluated products. Additionally, an end-user survey is circulated to Info-Tech’s client base and vendor-supplied reference accounts are interviewed to solicit their feedback on their experiences with the evaluated solutions and with the vendors of those solutions.

    These materials are supplemented by a thorough review of all product briefs, technical manuals, and publicly available marketing materials about the product, as well as about the vendor itself.

    Refusal by a vendor to supply completed surveys or submit to participation in briefings and demonstrations does not eliminate a vendor from inclusion in the evaluation. Where analyst and client input has determined that a vendor belongs in a particular evaluation, it will be evaluated as best as possible based on publicly available materials only. As these materials are not as comprehensive as a survey, briefing, and demonstration, the possibility exists that the evaluation may not be as thorough or accurate. Since Info-Tech includes vendors regardless of vendor participation, it is always in the vendor’s best interest to participate fully.

    All information is recorded and catalogued, as required, to facilitate scoring and for future reference.

    Vendor Landscape Methodology:
    Scoring

    Once all information has been gathered and evaluated for all vendors and products, the analyst team moves to scoring. All scoring is performed at the same time so as to ensure as much consistency as possible. Each criterion is scored on a ten-point scale, though the manner of scoring for criteria differs slightly:

    • Features is scored via Cumulative Scoring.
    • Affordability is scored via Scalar Scoring.
    • All other criteria are scored via Base5 Scoring.

    Cumulative Scoring is on a four-point scale. Zero points are awarded to features that are deemed absent or unsatisfactory, one point is assigned to features that are partially present, two points are assigned to features that require an extra purchase in the vendor’s product portfolio or through a third party, three points are assigned to features that are fully present and native to the solution, and four points are assigned to the best-of-breed native feature. The assigned points are summed and normalized to a value out of ten. For example, if a particular Vendor Landscape evaluates eight specific features in the Feature Criteria, the summed score out of eight for each evaluated product would be multiplied by 1.25 to yield a value out of ten to represent in a Harvey Ball format.

    In Scalar Scoring, a score of ten is assigned to the lowest cost solution, and a score of one is assigned to the highest cost solution. All other solutions are assigned a mathematically-determined score based on their proximity to / distance from these two endpoints. For example, in an evaluation of three solutions, where the middle cost solution is closer to the low end of the pricing scale it will receive a higher score, and where it is closer to the high end of the pricing scale it will receive a lower score; depending on proximity to the high or low price it is entirely possible that it could receive either ten points (if it is very close to the lowest price) or one point (if it is very close to the highest price). Where pricing cannot be determined (vendor does not supply price and public sources do not exist), a score of 0 is automatically assigned.

    In Base5 scoring a number of sub-criteria are specified for each criterion (for example, Longevity, Market Presence, and Financials are sub-criteria of the Viability criterion), and each one is scored on the following scale:

    • 5 - The product/vendor is exemplary in this area (nothing could be done to improve the status).
    • 4 - The product/vendor is good in this area (small changes could be made that would move things to the next level).
    • 3 - The product/vendor is adequate in this area (small changes would make it good, more significant changes required to be exemplary).
    • 2 - The product/vendor is poor in this area (this is a notable weakness and significant work is required).
    • 1 - The product/vendor fails in this area (this is a glaring oversight and a serious impediment to adoption).

    The assigned points are summed and normalized to a value out of ten as explained in Cumulative Scoring above.

    Scores out of ten, known as Raw scores, are transposed as is into Info-Tech’s Vendor Landscape Shortlist Tool, which automatically determines Vendor Landscape positioning (see Vendor Landscape Methodology: Information Presentation – Vendor Landscape, below), Criteria Score (see Vendor Landscape Methodology: Information Presentation – Criteria Score, below), and Value Index (see Vendor Landscape Methodology: Information Presentation – Value Index, below).

    Vendor Landscape Methodology:
    Information Presentation – Criteria Scores (Harvey Balls)

    Info-Tech’s criteria scores are visual representations of the absolute score assigned to each individual criterion, as well as of the calculated overall vendor and product scores. The visual representation used is Harvey Balls.

    Harvey Balls are calculated as follows:

    1. Raw scores are transposed into the Info-Tech Vendor Landscape Shortlist Tool (for information on how raw scores are determined, see Vendor Landscape Methodology: Scoring, above).
    2. Each individual criterion raw score is multiplied by a pre-assigned weighting factor for the Vendor Landscape in question. Weighting factors are determined prior to the evaluation process, based on the expertise of the Senior or Lead Research Analyst, to eliminate any possibility of bias. Weighting factors are expressed as a percentage, such that the sum of the weighting factors for the vendor criteria (Viability, Strategy, Reach, Channel) is 100%, and the sum of the product criteria (Features, Usability, Affordability, Architecture) is 100%.
    3. A sum-product of the weighted vendor criteria scores and of the weighted product criteria scores is calculated to yield an overall vendor score and an overall product score.
    4. Both overall vendor score / overall product score, as well as individual criterion raw scores are converted from a scale of one to ten to Harvey Ball scores on a scale of zero to four, where exceptional performance results in a score of four and poor performance results in a score of zero.
    5. Harvey Ball scores are converted to Harvey Balls as follows:
      • A score of four becomes a full Harvey Ball.
      • A score of three becomes a three-quarter full Harvey Ball.
      • A score of two becomes a half-full Harvey Ball.
      • A score of one becomes a one-quarter full Harvey Ball.
      • A score of zero becomes an empty Harvey Ball.
    6. Harvey Balls are plotted by solution in a chart where rows represent individual solutions and columns represent overall vendor / overall product, as well as individual criteria. Solutions are ordered in the chart alphabetically by vendor name.
    Harvey Balls
    Overall Harvey Balls represent weighted aggregates. Example of Harvey Balls with 'Overall' balls at the beginning of each category followed by 'Criteria' balls for individual raw scores. Criteria Harvey Balls represent individual raw scores.

    Vendor Landscape Methodology:
    Use-Case Scoring

    Within each Vendor Landscape a set of use-case scenarios are created by the analysts by considering the different outcomes and purposes related to the technology being evaluated. To generate the custom use-case vendor performances, the feature and Harvey Ball scoring performed in the Vendor Landscapes are set with custom weighting configurations.

    Calculations

    Each product has a vendor multiplier calculated based on its weighted performance, considering the different criteria scored in the Harvey Ball evaluations.

    To calculate each vendor’s performance, the advanced feature scores are multiplied against the weighting for the feature in the use-case scenario’s configuration.

    The weighted advanced feature score is then multiplied against the vendor multiplier.

    The sum of each vendor’s total weighted advanced features is calculated. This sum is used to identify the vendor’s qualification and relative rank within the use case.

    Example pie charts.

    Each use case’s feature weightings and vendor/product weighting configurations are displayed within the body of slide deck.

    Use-Case Vendor Performance

    Example stacked bar chart of use-case vendor performance.

    Vendors who qualified for each use-case scenario are ranked from first to last in a weighted bar graph based on the features considered.

    Vendor Landscape Methodology:
    Information Presentation – Feature Ranks (Stoplights)

    Advanced features are determined by analyst expertise, leveraging information gained from conversations with clients. Advanced features chosen as part of the evaluation are representative of what Info-Tech clients have indicated are of importance to their vendor solution. Advanced features are evaluated through a series of partial marks, dedicated to whether the solution performs all aspects of the Info-Tech definition of the feature and whether the feature is provided within the solution. Analysts hold the right to determine individual, unique scoring criteria for each evaluation. If a feature does not meet the criteria, Info-Tech holds the right to score the feature accordingly.

    Use cases use features as a baseline of the inclusion and scoring criteria.

    'Stoplight Legend' with green+star 'Feature category is present: best in class', green 'Feature category is present: strong', yellow 'Feature category is present: average', orange 'Feature category is partially present: weak', and red 'Feature category is absent or near-absent'.

    Vendor Landscape Methodology:
    Information Presentation – Value Index

    Info-Tech’s Value Index is an indexed ranking of solution value per dollar as determined by the raw scores assigned to each criteria (for information on how raw scores are determined, see Vendor Landscape Methodology: Scoring, above).

    Value scores are calculated as follows:

    1. The TCO Affordability criterion is removed from the Affordability score and the remaining product score criteria (Features, Usability, Architecture). Affordability scoring is adjusted with the TCO weighting distributed in proportion to the use case’s weighting for Affordability. Weighting is adjusted as to retain the same weightings relative to one another, while still summing to 100%.
    2. An adjusted multiplier is determined for each vendor using the recalculated Affordability scoring.
    3. The multiplier vendor score and vendor’s weighted feature score (based on the use-case scenario’s weightings), are summed. This sum is multiplied by the TCO raw score to yield an interim Value Score for each solution.
    4. All interim Value Scores are then indexed to the highest performing solution by dividing each interim Value Score by the highest interim Value Score. This results in a Value Score of 100 for the top solution and an indexed Value Score relative to the 100 for each alternate solution.
    5. Solutions are plotted according to Value Score, with the highest score plotted first, and all remaining scores plotted in descending numerical order.

    Where pricing is not provided by the vendor and public sources of information cannot be found, an Affordability raw score of zero is assigned. Since multiplication by zero results in a product of zero, those solutions for which pricing cannot be determined receive a Value Score of zero. Since Info-Tech assigns a score of zero where pricing is not available, it is always in the vendor’s best interest to provide accurate and up-to-date pricing. In the event that insufficient pricing is available to accurately calculate a Value Index, Info-Tech will omit it from the Vendor Landscape.

    Value Index

    Vendors are arranged in order of Value Score. The Value Score each solution achieved is displayed, and so is the average score.

    Example bar chart indicating the 'Value Score' vs the 'Average Score'.

    Those solutions that are ranked as Champions are differentiated for point of reference.

    Vendor Landscape Methodology:
    Information Presentation – Price Evaluation: Mid-Market

    Info-Tech’s Price Evaluation is a tiered representation of the three-year Total Cost of Ownership (TCO) of a proposed solution. Info-Tech uses this method of communicating pricing information to provide high-level budgetary guidance to its end-user clients while respecting the privacy of the vendors with whom it works. The solution TCO is calculated and then represented as belonging to one of ten pricing tiers.

    Pricing tiers are as follows:

    1. Between $1 and $2,500
    2. Between $2,500 and $10,000
    3. Between $10,000 and $25,000
    4. Between $25,000 and $50,000
    5. Between $50,000 and $100,000
    6. Between $100,000 and $250,000
    7. Between $250,000 and $500,000
    8. Between $500,000 and $1,000,000
    9. Between $1,000,000 and $2,500,000
    10. Greater than $2,500,000

    Where pricing is not provided, Info-Tech makes use of publicly available sources of information to determine a price. As these sources are not official price lists, the possibility exists that they may be inaccurate or outdated, and so the source of the pricing information is provided. Since Info-Tech publishes pricing information regardless of vendor participation, it is always in the vendor’s best interest to supply accurate and up to date information.

    Info-Tech’s Price Evaluations are based on pre-defined pricing scenarios (see Product Pricing Scenario, below) to ensure a comparison that is as close as possible between evaluated solutions. Pricing scenarios describe a sample business and solicit guidance as to the appropriate product/service mix required to deliver the specified functionality, the list price for those tools/services, as well as three full years of maintenance and support.

    Price Evaluation

    Call-out bubble indicates within which price tier the three-year TCO for the solution falls, provides the brackets of that price tier, and links to the graphical representation.

    Example price evaluation with a '3 year TCO...' statement, a visual gauge of bars, and a statement on the source of the information.

    Scale along the bottom indicates that the graphic as a whole represents a price scale with a range of $1 to $2.5M+, while the notation indicates whether the pricing was supplied by the vendor or derived from public sources.

    Vendor Landscape Methodology:
    Information Presentation – Vendor Awards

    At the conclusion of all analyses, Info-Tech presents awards to exceptional solutions in three distinct categories. Award presentation is discretionary; not all awards are extended subsequent to each Vendor Landscape and it is entirely possible, though unlikely, that no awards may be presented.

    Awards categories are as follows:

    • Champion Awards are presented to the top performing solution in a particular use-case scenario. As a result, only one Champion Award is given for each use case, and the entire Vendor Landscape will have the same number of Champion Awards as the number of evaluated use cases.
    • Leader Awards are presented to top performing solutions for each use-case scenario. Depending on the use-case scenario and the number of solutions being evaluated, a variable number of leader awards will be given. This number is at the discretion of the analysts, but is generally placed at two, and given to the solutions ranking second and third respectively for the use case.
    • Best Overall Value Awards are presented to the solution for each use-case scenario that ranked the highest in the Info-Tech Value Index for each evaluated scenario (see Vendor Landscape Methodology: Information Presentation – Value Index, above). If insufficient pricing information is made available for the evaluated solutions, such that a Value Index cannot be calculated, no Best Overall Value Award will be presented. Only one Best Overall Value Award is available for each use-case scenario.

    Vendor Awards for Use-Case Performance

    Vendor Award: 'Champion'. Info-Tech’s Champion Award is presented to solutions that placed first in an use-case scenario within the Vendor Landscape.
    Vendor Award: 'Leader'. Info-Tech Leader Award is given to solutions who placed in the top segment of a use-case scenario.
    Vendor Award: 'Best Overall Value'. Info-Tech’s Best Overall Value Award is presented to the solution within each use-case scenario with the highest Value Index score.

    Vendor Landscape Methodology:
    Fact Check & Publication

    Info-Tech takes the factual accuracy of its Vendor Landscapes, and indeed of all of its published content, very seriously. To ensure the utmost accuracy in its Vendor Landscapes, we invite all vendors of evaluated solutions (whether the vendor elected to provide a survey and/or participate in a briefing or not) to participate in a process of fact check.

    Once the research project is complete and the materials are deemed to be in a publication ready state, excerpts of the material specific to each vendor’s solution are provided to the vendor. Info-Tech only provides material specific to the individual vendor’s solution for review encompassing the following:

    • All written review materials of the vendor and the vendor’s product that comprise the evaluated solution.
    • Info-Tech’s Criteria Scores / Harvey Balls detailing the individual and overall vendor / product scores assigned.
    • Info-Tech’s Feature Rank / stoplights detailing the individual feature scores of the evaluated product.
    • Info-Tech’s Raw Pricing for the vendor either as received from the vendor or as collected from publicly available sources.
    • Info-Tech’s Scenario ranking for all considered scenarios for the evaluated solution.

    Info-Tech does not provide the following:

    • Info-Tech’s Vendor Landscape placement of the evaluated solution.
    • Info-Tech’s Value Score for the evaluated solution.
    • End-user feedback gathered during the research project.
    • Info-Tech’s overall recommendation in regard to the evaluated solution.

    Info-Tech provides a one-week window for each vendor to provide written feedback. Feedback must be corroborated (be provided with supporting evidence), and where it does, feedback that addresses factual errors or omissions is adopted fully, while feedback that addresses opinions is taken under consideration. The assigned analyst team makes all appropriate edits and supplies an edited copy of the materials to the vendor within one week for final review.

    Should a vendor still have concerns or objections at that time, they are invited to a conversation, initially via email, but as required and deemed appropriate by Info-Tech, subsequently via telephone, to ensure common understanding of the concerns. Where concerns relate to ongoing factual errors or omissions, they are corrected under the supervision of Info-Tech’s Vendor Relations personnel. Where concerns relate to ongoing differences of opinion, they are again taken under consideration with neither explicit not implicit indication of adoption.

    Publication of materials is scheduled to occur within the six weeks following the completion of the research project, but does not occur until the fact check process has come to conclusion, and under no circumstances are “pre-publication” copies of any materials made available to any client.

    Pricing Scenario

    Info-Tech Research Group is providing each vendor with a common pricing scenario to enable normalized scoring of Affordability, calculation of Value Index rankings, and identification of the appropriate solution pricing tier as displayed on each vendor scorecard.

    Vendors are asked to provide list costs for SMMP software licensing to address the needs of a reference organization described in the pricing scenario. Please price out the lowest possible 3-year total cost of ownership (TCO) including list prices for software and licensing fees to meet the requirements of the following scenario.

    Three-year total acquisition costs will be normalized to produce the Affordability raw scores and calculate Value Index ratings for each solution.

    The pricing scenario:

    • Enterprise Name: Imperial Products Incorporated
    • Enterprise Size: SMB
    • Enterprise Vertical: Consumer packaged goods
    • Total Number of Sites: Three office locations
    • Total Number of Employees: 500
    • Total Number SMMP End Users: 50
      • 20 dedicated CSRs who are handling all customer service issues routed to them
      • 5 PR managers who need the ability to monitor the social cloud
      • 24 brand portfolio managers – each portfolio has 5 products (25 total)
      • Each product has its own Facebook and Twitter presence
      • 1 HR manager (using social media for recruiting)
    • Total Number of IT Staff: 20
    • Operating System Environment: Windows 7
    • Functional Requirements and Additional Information: Imperial Products Incorporated is a mid-sized consumer packaged goods firm operating in the United States. The organization is currently looking to adopt a platform for social media monitoring and management. Functional requirements include the ability to monitor and publish to Facebook, Twitter, YouTube, and blogs. The platform must have the ability to display volume trends, show follower demographics, and conduct sentiment analysis. It must also provide tools for interacting in-platform with social contacts, provide workflow management capabilities, and offer the ability to manage specific social properties (e.g. Facebook Pages). Additional features that are desirable are the ability to archive social interactions, and a dedicated mobile application for one of the major smartphone/tablet operating systems (iOS, Android etc.).

    Govern Office 365

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    • Parent Category Name: End-User Computing Applications
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    Exploring the enterprise collaboration marketspace is difficult. The difficulty in finding a suitable collaboration tool is that there are many ways to collaborate, with just as many tools to match.

    Our Advice

    Critical Insight

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

    Impact and Result

    The result is a defined plan for controlling Office 365 by leveraging hard controls to align Microsoft’s toolset with your needs and creating acceptable use policies and communication plans to highlight the impact of the transition to Office 365 on the end-user population.

    Govern Office 365 Research & Tools

    Start here – read the Executive Brief

    Understand the challenges posed by governing Office 365 and the necessity of deploying proper governance.

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

    1. Define your organizational goals

    Develop a list of organizational goals that will enable you to leverage the Office 365 toolset to its fullest extent while also implementing sensible governance.

    • Govern Office 365 – Phase 1: Define Your Organizational Goals

    2. Control your Office 365 environment

    Use Info-Tech's toolset to build out controls for OneDrive, SharePoint, and Teams that align with your organizational goals as they relate to governance.

    • Govern Office 365 – Phase 2: Control Your Office 365 Environment
    • Office 365 Control Map
    • Microsoft Teams Acceptable Use Policy
    • Microsoft SharePoint Online Acceptable Use Policy
    • Microsoft OneDrive Acceptable Use Policy

    3. Communicate your results

    Communicate the results of your Office 365 governance program using Info-Tech's toolset.

    • Govern Office 365 – Phase 3: Communicate Your Results
    • Office 365 Communication Plan Template

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    Workshop: Govern Office 365

    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 Goals

    The Purpose

    Develop a plan to assess the capabilities of the Office 365 solution and select licensing for the product.

    Key Benefits Achieved

    Office 365 capability assessment (right-size licensing)

    Acceptable Use Policies

    Mapped Office 365 controls

    Activities

    1.1 Review organizational goals.

    1.2 Evaluate Office 365 capabilities.

    1.3 Conduct the Office 365 capability assessment.

    1.4 Define user groups.

    1.5 Finalize licensing.

    Outputs

    List of organizational goals

    Targeted licensing decision

    2 Build Refined Governance Priorities

    The Purpose

    Leverage the Office 365 governance framework to develop and refined governance priorities.

    Build a SharePoint acceptable use policy and define SharePoint controls.

    Key Benefits Achieved

    Refined governance priorities

    List of SharePoint controls

    SharePoint acceptable use policy

    Activities

    2.1 Explore the Office 365 Framework.

    2.2 Conduct governance priorities refinement exercise.

    2.3 Populate the Office 365 control map (SharePoint).

    2.4 Build acceptable use policy (SharePoint).

    Outputs

    Refined governance priorities

    SharePoint control map

    Sharepoint acceptable use policy

    3 Control Office 365

    The Purpose

    Implement governance priorities for OneDrive and Teams.

    Key Benefits Achieved

    Clearly defined acceptable use policies for OneDrive and Teams

    List of OneDrive and Teams controls

    Activities

    3.1 Populate the Office 365 Control Map (OneDrive).

    3.2 Build acceptable use policy (OneDrive).

    3.3 Populate the Office 365 Control Map (Teams).

    3.4 Build acceptable use policy (Teams).

    Outputs

    OneDrive controls

    OneDrive acceptable use policy

    Teams controls

    Teams acceptable use policy

    4 SOW Walkthrough

    The Purpose

    Build a plan to communicate coming changes to the productivity environment.

    Key Benefits Achieved

    Communication plan covering SharePoint, Teams, and OneDrive

    Activities

    4.1 Build SharePoint one pager.

    4.2 Build OneDrive one pager.

    4.3 Build Teams one pager.

    4.4 Finalize communication plan.

    Outputs

    SharePoint one pager

    OneDrive one pager

    Teams one pager

    Overall finalized communication plan

    5 Communicate and Implement

    The Purpose

    Finalize deliverables and plan post-workshop communications.

    Key Benefits Achieved

    Completed Office 365 governance plan

    Finalized deliverables

    Activities

    5.1 Completed in-progress deliverables from previous four days.

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

    5.3 Validate governance with stakeholders.

    Outputs

    Completed acceptable use policies

    Completed control map

    Completed communication plan

    Completed licensing decision

    Build a Reporting and Analytics Strategy

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    • Parent Category Name: Business Intelligence Strategy
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    • In respect to business intelligence (BI) matureness, you can’t expect the whole organization to be at the same place at the same time. Your BI strategy needs to recognize this and should strive to align rather than dictate.
    • Technology is just one aspect of your BI and analytics strategy and is not a quick solution or a guarantee for long-term success.

    Our Advice

    Critical Insight

    • The BI strategy drives data warehouse and integration strategies and the data needed to support business decisions.
    • The solution to better BI often lies in improving the BI practice, not acquiring the latest and greatest tool.

    Impact and Result

    • Align BI with corporate vision, mission, goals, and strategic direction.
    • Understand the needs of business partners.
    • BI & analytics informs data warehouse and integration layers for required content, latency, and quality.

    Build a Reporting and Analytics Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create or refresh the BI Strategy and review Info-Tech’s approach to developing a BI strategy that meets business needs.

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

    1. Understand the business context and BI landscape

    Lay the foundation for the BI strategy by detailing key business information and analyzing current BI usage.

    • Build a Reporting and Analytics Strategy – Phase 1: Understand the Business Context and BI Landscape
    • BI Strategy and Roadmap Template
    • BI End-User Satisfaction Survey Framework

    2. Evaluate the current BI practice

    Assess the maturity level of the current BI practice and envision a future state.

    • Build a Reporting and Analytics Strategy – Phase 2: Evaluate the Current BI Practice
    • BI Practice Assessment Tool

    3. Create a BI roadmap for continuous improvement

    Create BI-focused initiatives to build an improvement roadmap.

    • Build a Reporting and Analytics Strategy – Phase 3: Create a BI Roadmap for Continuous Improvement
    • BI Initiatives and Roadmap Tool
    • BI Strategy and Roadmap Executive Presentation Template
    [infographic]

    Workshop: Build a Reporting and Analytics 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 Establish Business Vision and Understand the Current BI Landscape

    The Purpose

    Document overall business vision, mission, and key objectives; assemble project team.

    Collect in-depth information around current BI usage and BI user perception.

    Create requirements gathering principles and gather requirements for a BI platform.

    Key Benefits Achieved

    Increased IT–business alignment by using the business context as the project starting point

    Identified project sponsor and project team

    Detailed understanding of trends in BI usage and BI perception of consumers

    Refreshed requirements for a BI solution

    Activities

    1.1 Gather key business information (overall mission, goals, objectives, drivers).

    1.2 Establish a high-level ROI.

    1.3 Identify ideal candidates for carrying out a BI project.

    1.4 Undertake BI usage analyses, BI user perception survey, and a BI artifact inventory.

    1.5 Develop requirements gathering principles and approaches.

    1.6 Gather and organize BI requirements

    Outputs

    Articulated business context that will guide BI strategy development

    ROI for refreshing the BI strategy

    BI project team

    Comprehensive summary of current BI usage that has quantitative and qualitative perspectives

    BI requirements are confirmed

    2 Evaluate Current BI Maturity and Identify the BI Patterns for the Future State

    The Purpose

    Define current maturity level of BI practice.

    Envision the future state of your BI practice and identify desired BI patterns.

    Key Benefits Achieved

    Know the correct migration method for Exchange Online.

    Prepare user profiles for the rest of the Office 365 implementation.

    Activities

    2.1 Perform BI SWOT analyses.

    2.2 Assess current state of the BI practice and review results.

    2.3 Create guiding principles for the future BI practice.

    2.4 Identify desired BI patterns and the associated BI functionalities/requirements.

    2.5 Define the future state of the BI practice.

    2.6 Establish the critical success factors for the future BI, identify potential risks, and create a mitigation plan.

    Outputs

    Exchange migration strategy

    Current state of BI practice is documented from multiple perspectives

    Guiding principles for future BI practice are established, along with the desired BI patterns linked to functional requirements

    Future BI practice is defined

    Critical success factors, potential risks, and a risk mitigation plan are defined

    3 Build Improvement Initiatives and Create a BI Development Roadmap

    The Purpose

    Build overall BI improvement initiatives and create a BI improvement roadmap.

    Identify supplementary initiatives for enhancing your BI program.

    Key Benefits Achieved

    Defined roadmap composed of robust improvement initiatives

    Activities

    3.1 Create BI improvement initiatives based on outputs from phase 1 and 2 activities. Build an improvement roadmap.

    3.2 Build an improvement roadmap.

    3.3 Create an Excel governance policy.

    3.4 Create a plan for a BI ambassador network.

    Outputs

    Comprehensive BI initiatives placed on an improvement roadmap

    Excel governance policy is created

    Internal BI ambassadors are identified

    Further reading

    Build a Reporting and Analytics Strategy

    Deliver actionable business insights by creating a business-aligned reporting and analytics strategy.

    Terminology

    As the reporting and analytics space matured over the last decade, software suppliers used different terminology to differentiate their products from others’. This caused a great deal of confusion within the business communities.

    Following are two definitions of the term Business Intelligence:

    Business intelligence (BI) leverages software and services to transform data into actionable insights that inform an organization’s strategic and tactical business decisions. BI tools access and analyze data sets and present analytical findings in reports, summaries, dashboards, graphs, charts, and maps to provide users with detailed intelligence about the state of the business.

    The term business intelligence often also refers to a range of tools that provide quick, easy-to-digest access to insights about an organization's current state, based on available data.

    CIO Magazine

    Business intelligence (BI) comprises the strategies and technologies used by enterprises for the data analysis of business information. BI technologies provide historical, current, and predictive views of business operations.

    Common functions of business intelligence technologies include reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics, and prescriptive analytics.

    Wikipedia

    This blueprint will use the terms “BI,” “BI and Analytics,” and “Reporting and Analytics” interchangeably in different contexts, but always in compliance to the above definitions.

    ANALYST PERSPECTIVE

    A fresh analytics & reporting strategy enables new BI opportunities.

    We need data to inform the business of past and current performance and to support strategic decisions. But we can also drown in a flood of data. Without a clear strategy for business intelligence, a promising new solution will produce only noise.

    BI and Analytics teams must provide the right quantitative and qualitative insights for the business to base their decisions on.

    Your Business Intelligence and Analytics strategy must support the organization’s strategy. Your strategy for BI & Analytics provides direction and requirements for data warehousing and data integration, and further paves the way for predictive analytics, big data analytics, market/industry intelligence, and social network analytics.

    Dirk Coetsee,

    Director, Data and Analytics Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

    • A CIO or Business Unit (BU) Leader looking to improve reporting and analytics, reduce time to information, and embrace fact-based decision making with analytics, reporting, and business intelligence (BI).
    • Application Directors experiencing poor results from an initial BI tool deployment who are looking to improve the outcome.

    This Research Will Also Assist:

    • Project Managers and Business Analysts assigned to a BI project team to collect and analyze requirements.
    • Business units that have their own BI platforms and would like to partner with IT to take their BI to an enterprise level.

    This Research Will Help You:

    • Align your reporting and analytics strategy with the business’ strategic objectives before you rebuild or buy your Business Intelligence platform.
    • Identify reporting and analytics objectives to inform the data warehouse and integration requirements gathering process.
    • Avoid common pitfalls that derail BI and analytic deployments and lower their adoption.
    • Identify Business Intelligence gaps prior to deployment and incorporate remedies within your plans.

    This Research Will Help Them:

    • Recruit the right resources for the program.
    • Align BI with corporate vision, mission, goals, and strategic direction.
    • Understand the needs of business partners.
    • Assess BI maturity and plan for target state.
    • Develop a BI strategy and roadmap.
    • Track the success of the BI initiative.

    Executive summary

    Situation:

    BI drives a new reality. Uber is the world’s largest taxi company and they own no vehicles; Alibaba is the world’s most valuable retailer and they have no inventory; Airbnb is the world’s largest accommodation provider and they own no real estate. How did they disrupt their markets and get past business entry barriers? A deep understanding of their market through impeccable business intelligence!

    Complication:

    • In respect to BI matureness, you can’t expect the whole organization to be at the same place at the same time. Your BI strategy needs to recognize this and should strive to align rather than dictate.
    • Technology is just one aspect of your BI and Analytics strategy and is not a quick solution or a guarantee for long term success.

    Resolution:

    • Drive strategy development by establishing the business context upfront in order to align business intelligence providers with the most important needs of their BI consumers and the strategic priorities of the organization.
    • Revamp or create a BI strategy to update your BI program to make it fit for purpose.
    • Understand your existing BI baggage – e.g. your existing BI program, the artifacts generated from the program, and the users it supports. Those will inform the creation of the strategy and roadmap.
    • Assess current BI maturity and determine your future state BI maturity.
    • BI needs governance to ensure consistent planning, communication, and execution of the BI strategy.
    • Create a network of BI ambassadors across the organization to promote BI.
    • Plan for the future to ensure that required data will be available when the organization needs it.

    Info-Tech Insight

    1. Put the “B” back in BI. Don’t have IT doing BI for IT’s sake; ensure the voice and needs of the business are the primary drivers of your strategy.
    2. The BI strategy drives data warehouse and integration strategies and the data needs to support business decisions.
    3. Go beyond the platform. The solution to better BI often lies in improving the BI practice, not acquiring the latest and greatest tool.

    Metrics to track BI & Analytical program progress

    Goals for BI:

    • Understand business context and needs. Identify business processes that can leverage BI.
    • Define the Reporting & Analytics Roadmap. Develop data initiatives, and create a strategy and roadmap for Business Intelligence.
    • Continuous improvements. Your BI program is evolving and improving over time. The program should allow you to have faster, better, and more comprehensive information.

    Info-Tech’s Suggested Metrics for Tracking the BI Program

    Practice Improvement Metrics Data Collection and Calculation Expected Improvement
    Program Level Metrics Efficiency
    • Time to information
    • Self-service penetration
    • Derive from the ticket management system
    • Derive from the BI platform
    • 10% reduction in time to information
    • Achieve 10-15% self-service penetration
    • Effectiveness
    • BI Usage
    • Data quality
    • Derive from the BI platform
    • Data quality perception
    • Majority of the users use BI on a daily basis
    • 15% increase in data quality perception
    Comprehensiveness
    • # of integrated datasets
    • # of strategic decisions made
    • Derive from the data integration platform
    • Decision-making perception
    • Onboard 2-3 new data domains per year
    • 20% increase in decision-making perception

    Intangible Metrics:

    Tap into the results of Info-Tech’s CIO Business Vision diagnostic to monitor the changes in business-user satisfaction as you implement the initiatives in your BI improvement roadmap.

    Your Enterprise BI and Analytics Strategy is driven by your organization’s Vision and Corporate Strategy

    Formulating an Enterprise Reporting and Analytics Strategy requires the business vision and strategies to first be substantiated. Any optimization to the Data Warehouse, Integration and Source layer is in turn driven by the Enterprise Reporting and Analytics Strategy

    Flow chart showing 'Business Vision Strategies'

    The current state of your Integration and Warehouse platforms determine what data can be utilized for BI and Analytics

    Where we are, and how we got here

    How we got here

    • In the beginning was BI 1.0. Business intelligence began as an IT-driven centralized solution that was highly governed. Business users were typically the consumers of reports and dashboards created by IT, an analytics-trained minority, upon request.
    • In the last five to ten years, we have seen a fundamental shift in the business intelligence and analytics market, moving away from such large-scale, centralized IT-driven solutions focused on basic reporting and administration, towards more advanced user-friendly data discovery and visualization platforms. This has come to be known as BI 2.0.
    • Many incumbent market leaders were disrupted by the demand for more user-friendly business intelligence solutions, allowing “pure-play” BI software vendors to carve out a niche and rapidly expand into more enterprise environments.
    • BI-on-the-cloud has established itself as a solid alternative to in-house implementation and operation.

    Where we are now

    • BI 3.0 has arrived. This involves the democratization of data and analytics and a predominantly app-centric approach to BI, identifiable by an anywhere, anytime, and device-or-platform-independent collaborative methodology. Social workgroups and self-guided content creation, delivery, analysis, and management is prominent.
    • Where the need for reporting and dashboards remains, we’re seeing data discovery platforms fulfilling the needs of non-technical business users by providing easy-to-use interactive solutions to increase adoption across enterprises.
    • With more end users demanding access to data and the tools to extract business insights, IT is looking to meet these needs while continuing to maintain governance and administration over a much larger base of users. The race for governed data discovery is heated and will be a market differentiator.
    • The next kid on the block is Artificial Intelligence that put further demands on data quality and availability.

    RICOH Canada used this methodology to develop their BI strategy in consultation with their business stakeholders

    CASE STUDY

    Industry: Manufacturing and Retail

    Source: RICOH

    Ricoh Canada transforms the way people work with breakthrough technologies that help businesses innovate and grow. Its focus has always been to envision what the future will look like so that it can help its customers prepare for success. Ricoh empowers digital workplaces with a broad portfolio of services, solutions, and technologies – helping customers remove obstacles to sustained growth by optimizing the flow of information and automating antiquated processes to increase workplace productivity. In their commitment towards a customer-centric approach, Ricoh Canada recognized that BI and analytics can be used to inform business leaders in making strategic decisions.

    Enterprise BI and analytics Initiative

    Ricoh Canada enrolled in the ITRG Reporting & Analytics strategy workshop with the aim to create a BI strategy that will allow the business to harvest it strengths and build for the future. The workshop acted as a forum for the different business units to communicate, share ideas, and hear from each other what their pains are and what should be done to provide a full customer 360 view.

    Results

    “This workshop allowed us to collectively identify the various stakeholders and their unique requirements. This is a key factor in the development of an effective BI Analytics tool.” David Farrar

    The Customer 360 Initiative included the following components

    The Customer 360 Initiative includes the components shown in the image

    Improve BI Adoption Rates

    Graph showing Product Adoption Rates

    Sisense

    Reasons for low BI adoption

    • Employees that never used BI tools are slow to adopt new technology.
    • Lack of trust in data leads to lack of trust in the insights.
    • Complex data structures deter usage due to long learning curves and contained nuances.
    • Difficult to translate business requirements into tool linguistics due to lack of training or technical ineptness.
    • Business has not taken ownership of data, which affects access to data.

    How to foster BI adoption

    • Senior management proclaim data as a strategic asset and involved in the promotion of BI
    • Role Requirement that any business decision should be backed up by analytics
    • Communication of internal BI use case studies and successes
    • Exceptional data lineage to act as proof for the numbers
    • A Business Data glossary with clearly defined business terms. Use the Business Data Glossary in conjunction with data lineage and semantic layers to ensure that businesses are clearly defined and traced to sources.
    • Training in business to take ownership of data from inception to analytics.

    Why bother with analytics?

    In today’s ever-changing and global environment, organizations of every size need to effectively leverage their data assets to facilitate three key business drivers: customer intimacy, product/service innovation, and operational excellence. Plus, they need to manage their operational risk efficiently.

    Investing in a comprehensive business intelligence strategy allows for a multidimensional view of your organization’s data assets that can be operationalized to create a competitive edge:

    Historical Data

    Without a BI strategy, creating meaningful reports for business users that highlight trends in past performance and draw relationships between different data sources becomes a more complex task. Also, the ever growing need to identify and assess risks in new ways is driving many companies to BI.

    Data Democracy

    The core purpose of BI is to provide the right data, to the right users, at the right time, and in a format that is easily consumable and actionable. In developing a BI strategy, remember the driver for managed cross-functional access to data assets and features such as interactive dashboards, mobile BI, and self-service BI.

    Predictive and Big Data Analytics

    As the volume, variety, and velocity of data increases rapidly, businesses will need a strategy to outline how they plan to consume the new data in a manner that does not overwhelm their current capabilities and aligns with their desired future state. This same strategy further provides a foundation upon which organizations can transition from ad hoc reporting to using data assets in a codified BI platform for decision support.

    Business intelligence serves as the layer that translates data, information, and organizational knowledge into insights

    As executive decision making shifts to more fact-based, data-driven thinking, there is an urgent need for data assets to be organized and presented in a manner that enables immediate action.

    Typically, business decisions are based on a mix of intuition, opinion, emotion, organizational culture, and data. Though business users may be aware of its potential value in driving operational change, data is often viewed as inaccessible.

    Business intelligence bridges the gap between an organization’s data assets and consumable information that facilitates insight generation and informed decision making.

    Most organizations realize that they need a BI strategy; it’s no longer a nice-to-have, it’s a must-have.

    – Albert Hui, Principal, Data Economist

    A triangle grapg depicting the layers of business itelligence

    Business intelligence and business analytics: what is the difference and should you care

    Ask 100 people and you will get 100 answers. We like the prevailing view that BI looks at today and backward for improving who we are, while BA is forward-looking to support change decisions.

    The image depicts a chart flowing from Time Past to Future. Business Intelligence joins with Business Analytics over the Present
    • Business intelligence is concerned with looking at present and historical data.
    • Use this data to create reports/dashboards to inform a wide variety of information consumers of the past and current state of affairs.
    • Almost all organizations, regardless of size and maturity, use some level of BI even if it’s just very basic reporting.
    • Business analytics, on the other hand, is a forward-facing use of data, concerned with the present to the future.
    • Analytics uses data to both describe the present, and more importantly, predict the future, enabling strategic business decisions.
    • Although adoption is rapidly increasing, many organizations still do not utilize any advanced analytics in their environment.

    However, establishing a strong business intelligence program is a necessary precursor to an organization’s development of its business analytics capabilities.

    Organizations that successfully grow their BI capabilities are reaping the rewards

    Evidence is piling up: if planned well, BI contributes to the organization’s bottom line.

    It’s expected that there will be nearly 45 billion connected devices and a 42% increase in data volume each year posing a high business opportunity for the BI market (BERoE, 2020).

    The global business intelligence market size to grow from US$23.1 billion in 2020 to US$33.3 billion by 2025, at a compound annual growth rate (CAGR) of 7.6% (Global News Wire, 2020)

    In the coming years, 69% of companies plan on increasing their cloud business intelligence usage (BARC Research and Eckerson Group Study, 2017).

    Call to Action

    Small organizations of up to 100 employees had the highest rate of business intelligence penetration last year (Forbes, 2018).

    Graph depicting business value from 0 months to more than 24 months

    Source: IBM Business Value, 2015

    For the New England Patriots, establishing a greater level of customer intimacy was driven by a tactical analytics initiative

    CASE STUDY

    Industry: Professional Sports

    Source Target Marketing

    Problem

    Despite continued success as a franchise with a loyal fan base, the New England Patriots experienced one of their lowest season ticket renewal rates in over a decade for the 2009 season. Given the numerous email addresses that potential and current season-ticket holders used to engage with the organization, it was difficult for Kraft Sports Group to define how to effectively reach customers.

    Turning to a Tactical Analytics Approach

    Kraft Sports Group turned to the customer data that it had been collecting since 2007 and chose to leverage analytics in order to glean insight into season ticket holder behavior. By monitoring and reporting on customer activity online and in attendance at games, Kraft Sports Group was able to establish that customer engagement improved when communication from the organization was specifically tailored to customer preferences and historical behavior.

    Results

    By operationalizing their data assets with the help of analytics, the Patriots were able to achieve a record 97% renewal rate for the 2010 season. KSG was able to take their customer engagement to the next level and proactively look for signs of attrition in season-ticket renewals.

    We're very analytically focused and I consider us to be the voice of the customer within the organization… Ultimately, we should know when renewal might not happen and be able to market and communicate to change that behavior.

    – Jessica Gelman,

    VP Customer Marketing and Strategy, Kraft Sports Group

    A large percentage of all BI projects fail to meet the organization’s needs; avoid falling victim to common pitfalls

    Tool Usage Pitfalls

    • Business units are overwhelmed with the amount and type of data presented.
    • Poor data quality erodes trust, resulting in a decline in usage.
    • Analysis performed for the sake of analysis and doesn’t focus on obtaining relevant business-driven insights.

    Selection Pitfalls

    • Inadequate requirements gathering.
    • No business involvement in the selection process.
    • User experience is not considered.
    • Focus is on license fees and not total cost.

    Implementation Pitfalls

    • Absence of upfront planning
    • Lack of change management to facilitate adoption of the new platform
    • No quick wins that establish the value of the project early on
    • Inadequate initial or ongoing training

    Strategic Pitfalls

    • Poor alignment of BI goals with organization goals
    • Absence of CSFs/KPIs that can measure the qualitative and quantitative success of the project
    • No executive support during or after the project

    BI pitfalls are lurking around every corner, but a comprehensive strategy drafted upfront can help your organization overcome these obstacles. Info-Tech’s approach to BI has involvement from the business units built right into the process from the start and it equips IT to interact with key stakeholders early and often.

    Only 62% of Big Data and AI projects in 2019 provided measurable results.

    Source: NewVantage Partners LLC

    Business and IT have different priorities for a BI tool

    Business executives look for:

    • Ease of use
    • Speed and agility
    • Clear and concise information
    • Sustainability

    IT professionals are concerned about:

    • Solid security
    • Access controls on data
    • Compliance with regulations
    • Ease of integration

    Info-Tech Insight

    Combining these priorities will lead to better tool selection and more synergy.

    Elizabeth Mazenko

    The top-down BI Opportunity Analysis is a tool for senior executives to discover where Business Intelligence can provide value

    The image is of a top-down BI Opportunity Analysis.

    Example: Uncover BI opportunities with an opportunity analysis

    Industry Drivers Private label Rising input prices Retail consolidation
    Company strategies Win at supply chain execution Win at customer service Expand gross margins
    Value disciplines Strategic cost management Operational excellence Customer service
    Core processes Purchasing Inbound logistics Sales, service & distribution
    Enterprise management: Planning, budgeting, control, process improvement, HR
    BI Opportunities Customer service analysis Cost and financial analysis Demand management

    Williams (2016)

    Bridge the gap between business drivers and business intelligence features with a three-tiered framework

    Info-Tech’s approach to formulating a fit-for-purpose BI strategy is focused on making the link between factors that are the most important to the business users and the ways that BI providers can enable those consumers.

    Drivers to Establish Competitive Advantage

    • Operational Excellence
    • Client Intimacy
    • Innovation

    BI and Analytics Spectrum

    • Strategic Analytics
    • Tactical Analytics
    • Operational Analytics

    Info-Tech’s BI Patterns

    • Delivery
    • User Experience
    • Deep Analytics
    • Supporting

    This is the content for Layout H3 Tag

    Though business intelligence is primarily thought of as enabling executives, a comprehensive BI strategy involves a spectrum of analytics that can provide data-driven insight to all levels of an organization.

    Recommended

    Strategic Analytics

    • Typically focused on predictive modeling
    • Leverages data integrated from multiple sources (structured through unstructured)
    • Assists in identifying trends that may shift organizational focus and direction
    • Sample objectives:
      • Drive market share growth
      • Identify new markets, products, services, locations, and acquisitions
      • Build wider and deeper customer relationships earning more wallet share and keeping more customers

    Tactical Analytics

    • Often considered Response Analytics and used to react to situations that arise, or opportunities at a department level.
    • Sample objectives:
      • Staff productivity or cost analysis
      • Heuristics/algorithms for better risk management
      • Product bundling and packaging
      • Customer satisfaction response techniques

    Operational Analytics

    • Analytics that drive business process improvement whether internal, with external partners, or customers.
    • Sample objectives:
      • Process step elimination
      • Best opportunities for automation

    Business Intelligence Terminology

    Styles of BI New age BI New age data Functional Analytics Tools
    Reporting Agile BI Social Media data Performance management analytics Scorecarding dashboarding
    Ad hoc query SaaS BI Unstructured data Financial analytics Query & reporting
    Parameterized queries Pervasive BI Mobile data Supply chain analytics Statistics & data mining
    OLAP Cognitive Business Big data Customer analytics OLAP cubes
    Advanced analytics Self service analytics Sensor data Operations analytics ETL
    Cognitive business techniques Real-time Analytics Machine data HR Analytics Master data management
    Scorecards & dashboards Mobile Reporting & Analytics “fill in the blanks” analytics Data Governance

    Williams (2016)

    "BI can be confusing and overwhelming…"

    – Dirk Coetsee,

    Research Director,

    Info-Tech Research Group

    Business intelligence lies in the Information Dimensions layer of Info-Tech’s Data Management Framework

    The interactions between the information dimensions and overlying data management enablers such as data governance, data architecture, and data quality underscore the importance of building a robust process surrounding the other data practices in order to fully leverage your BI platform.

    Within this framework BI and analytics are grouped as one lens through which data assets at the business information level can be viewed.

    The image is the Information Dimensions layer of Info-Tech’s Data Management Framework

    Use Info-Tech’s three-phase approach to a Reporting & Analytics strategy and roadmap development

    Project Insight

    A BI program is not a static project that is created once and remains unchanged. Your strategy must be treated as a living platform to be revisited and revitalized in order to effectively enable business decision making. Develop a reporting and analytics strategy that propels your organization by building it on business goals and objectives, as well as comprehensive assessments that quantitatively and qualitatively evaluate your current reporting and analytical capabilities.

    Phase 1: Understand the Business Context and BI Landscape Phase 2: Evaluate Your Current BI Practice Phase 3: Create a BI Roadmap for Continuous Improvement
    1.1 Establish the Business Context
    • Business Vision, Goals, Key Drivers
    • Business Case Presentation
    • High-Level ROI
    2.1 Assess Your Current BI Maturity
    • BI Practice Assessment
    • Summary of Current State
    3.1 Construct a BI Initiative Roadmap
    • BI Improvement Initiatives
    • RACI
    • BI Strategy and Roadmap
    1.2 Assess Existing BI Environment
    • BI Perception Survey Framework
    • Usage Analyses
    • BI Report Inventory
    2.2 Envision BI Future State
    • BI Style Requirements
    • BI Practice Assessment
    3.2 Plan for Continuous Improvement
    • Excel/Access Governance Policy
    • BI Ambassador Network Draft
    1.3 Develop BI Solution Requirements
    • Requirements Gathering Principles
    • Overall BI Requirements

    Stand on the shoulders of Information Management giants

    As part of our research process, we leveraged the frameworks of COBIT5, Mike 2.0, and DAMA DMBOK2. Contextualizing business intelligence within these frameworks clarifies its importance and role and ensures that our assessment tool is focused on key priority areas.

    The DMBOK2 Data Management framework by the Data Asset Management Association (DAMA) provided a starting point for our classification of the components in our IM framework.

    Mike 2.0 is a data management framework that helped guide the development of our framework through its core solutions and composite solutions.

    The Cobit 5 framework and its business enablers were used as a starting point for assessing the performance capabilities of the different components of information management, including business intelligence.

    Info-Tech has a series of deliverables to facilitate the evolution of your BI strategy

    BI Strategy Roadmap Template

    BI Practice Assessment Tool

    BI Initiatives and Roadmap Tool

    BI Strategy and Roadmap Executive Presentation Template

    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

    Build a Reporting and Analytics Strategy – Project Overview

    1. Understand the Business Context and BI Landscape 2. Evaluate the Current BI Practice 3. Create a BI Roadmap for Continuous Improvement
    Best-Practice Toolkit

    1.1 Document overall business vision, mission, industry drivers, and key objectives; assemble a project team

    1.2 Collect in-depth information around current BI usage and BI user perception

    1.3 Create requirements gathering principles and gather requirements for a BI platform

    2.1 Define current maturity level of BI practice

    2.2 Envision the future state of your BI practice and identify desired BI patterns

    3.1 Build overall BI improvement initiatives and create a BI improvement roadmap

    3.2 Identify supplementary initiatives for enhancing your BI program

    Guided Implementations
    • Discuss Info-Tech’s approach for using business information to drive BI strategy formation
    • Review business context and discuss approaches for conducting BI usage and user analyses
    • Discuss strategies for BI requirements gathering
    • Discuss BI maturity model
    • Review practice capability gaps and discuss potential BI patterns for future state
    • Discuss initiative building
    • Review completed roadmap and next steps
    Onsite Workshop Module 1:

    Establish Business Vision and Understand the Current BI Landscape

    Module 2:

    Evaluate Current BI Maturity Identify the BI Patterns for the Future State

    Module 3:

    Build Improvement Initiatives and Create a BI Development Roadmap

    Phase 1 Outcome:
    • Business context
    • Project team
    • BI usage information, user perception, and new BI requirements
    Phase 2 Outcome:
    • Current and future state assessment
    • Identified BI patterns
    Phase 3 Outcome:
    • BI improvement strategy and initiative roadmap

    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

    Understand Business Context and Structure the Project

    1.1 Make the case for a BI strategy refresh.

    1.2 Understand business context.

    1.3 Determine high-level ROI.

    1.4 Structure the BI strategy refresh project.

    Understand Existing BI and Revisit Requirements

    2.1 Understand the usage of your existing BI.

    2.2 Gather perception of the current BI users.

    2.3 Document existing information artifacts.

    2.4 Develop a requirements gathering framework.

    2.5 Gather requirements.

    Revisit Requirements and Current Practice Assessment

    3.1 Gather requirements.

    3.2 Determine BI Maturity Level.

    3.3 Perform a SWOT for your existing BI program.

    3.4 Develop a current state summary.

    Roadmap Develop and Plan for Continuous Improvements

    5.1 Develop BI strategy.

    5.2 Develop a roadmap for the strategy.

    5.3 Plan for continuous improvement opportunities.

    5.4 Develop a re-strategy plan.

    Deliverables
    1. Business and BI Vision, Goals, Key Drivers
    2. Business Case Presentation
    3. High-Level ROI
    4. Project RACI
    1. BI Perception Survey
    2. BI Requirements Gathering Framework
    3. BI User Stories and Requirements
    1. BI User Stories and Requirements
    2. BI SWOT for your Current BI Program
    3. BI Maturity Level
    4. Current State Summary
    1. BI Strategy
    2. Roadmap accompanying the strategy with timeline
    3. A plan for improving BI
    4. Strategy plan

    Phase 2

    Understand the Business Context and BI Landscape

    Build a Reporting and Analytics Strategy

    Phase 1 overview

    Detailed Overview

    Step 1: Establish the business context in terms of business vision, mission, objectives, industry drivers, and business processes that can leverage Business Intelligence

    Step 2: Understand your BI Landscape

    Step 3: Understand business needs

    Outcomes

    • Clearly articulated high-level mission, vision, and key drivers from the business, as well as objectives related to business intelligence.
    • In-depth documentation regarding your organization’s BI usage, user perception, and outputs.
    • Consolidated list of requirements, existing and desired, that will direct the deployment of your BI solution.

    Benefits

    • Align business context and drivers with IT plans for BI and Analytics improvement.
    • Understand your current BI ecosystem’s performance.

    Understand your business context and BI landscape

    Phase 1 Overarching Insight

    The closer you align your new BI platform to real business interests, the stronger the buy-in, realized value, and groundswell of enthusiastic adoption will be. Get this phase right to realize a high ROI on your investment in the people, processes, and technology that will be your next generation BI platform.

    Understand the Business Context to Rationalize Your BI Landscape Evaluate Your Current BI Practice Create a BI Roadmap for Continuous Improvement
    Establish the Business Context
    • Business Vision, Goals, Key Drivers
    • Business Case Presentation
    • High-Level ROI
    Assess Your Current BI Maturity
    • SWOT Analysis
    • BI Practice Assessment
    • Summary of Current State
    Construct a BI Initiative Roadmap
    • BI Improvement Initiatives
    • BI Strategy and Roadmap
    Access Existing BI Environment
    • BI Perception Survey Framework
    • Usage Analyses
    • BI Report Inventory
    Envision BI Future State
    • BI Patterns
    • BI Practice Assessment
    • List of Functions
    Plan for Continuous Improvement
    • Excel Governance Policy
    • BI Ambassador Network Draft
    Undergo Requirements Gathering
    • Requirements Gathering Principles
    • Overall BI Requirements

    Track these metrics to measure your progress through Phase 1

    Goals for Phase 1:

    • Understand the business context. Determine if BI can be used to improve business outcomes by identifying benefits, costs, opportunities, and gaps.
    • Understand your existing BI. Plan your next generation BI based on a solid understanding of your existing BI.
    • Identify business needs. Determine the business processes that can leverage BI and Analytics.

    Info-Tech’s Suggested Metrics for Tracking Phase 1 Goals

    Practice Improvement Metrics Data Collection and Calculation Expected Improvement
    Monetary ROI
    • Quality of the ROI
    • # of user cases, benefits, and costs quantified
    Derive the number of the use cases, benefits, and costs in the scoping. Ask business SMEs to verify the quality. High-quality ROI studies are created for at least three use cases
    Response Rate of the BI Perception Survey Sourced from your survey delivery system Aim for 40% response rate
    # of BI Reworks Sourced from your project management system Reduction of 10% in BI reworks

    Intangible Metrics:

    1. Executives’ understanding of the BI program and what BI can do for the organization.
    2. Improved trust between IT and the business by re-opening the dialogue.
    3. Closer alignment with the organization strategy and business plan leading to higher value delivered.
    4. Increased business engagement and input into the Analytics strategy.

    Use advisory support to accelerate your completion of Phase 1 activities

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of two to three advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Understand the Business Context and BI Landscape

    Proposed Time to Completion: 2-4 weeks

    Step 1.0: Assemble Your Project Team

    Start with an analyst kick-off call:

    • Discuss Info-Tech’s viewpoint and definitions of business intelligence.
    • Discuss the project sponsorship, ideal team members and compositions.

    Then complete these activities…

    • Identify a project sponsor and the project team members.

    Step 1.1: Understand Your Business Context

    Start with an analyst kick-off call:

    • Discuss Info-Tech’s approach to BI strategy development around using business information as the key driver.

    Then complete these activities…

    • Detail the business context (vision, mission, goals, objectives, etc.).
    • Establish business–IT alignment for your BI strategy by detailing the business context.

    Step 1.2: Establish the Current BI Landscape

    Review findings with analyst:

    • Review the business context outputs from Step 1.1 activities.
    • Review Info-Tech’s approach for documenting your current BI landscape.
    • Review the findings of your BI landscape.

    Then complete these activities…

    • Gather information on current BI usage and perform a BI artifact inventory.
    • Construct and conduct a user perception survey.

    With these tools & templates:

    BI Strategy and Roadmap Template

    Step 1.0

    Assemble the Project Team

    Select a BI project sponsor

    Info-Tech recommends you select a senior executive with close ties to BI be the sponsor for this project (e.g. CDO, CFO or CMO). To maximize the chance of success, Info-Tech recommends you start with the CDO, CMO, CFO, or a business unit (BU) leader who represents strategic enterprise portfolios.

    Initial Sponsor

    CFO or Chief Risk Officer (CRO)

    • The CFO is responsible for key business metrics and cost control. BI is on the CFO’s radar as it can be used for both cost optimization and elimination of low-value activity costs.
    • The CRO is tasked with the need to identify, address, and when possible, exploit risk for business security and benefit.
    • Both of these roles are good initial sponsors but aren’t ideal for the long term.

    CDO or a Business Unit (BU) Leader

    • The CDO (Chief Data Officer) is responsible for enterprise-wide governance and utilization of information as an asset via data processing, analysis, data mining, information trading, and other means, and is the ideal sponsor.
    • BU leaders who represent a growth engine for a company look for ways to mine BI to help set direction.

    Ultimate Sponsor

    CEO

    • As a the primary driver of enterprise-wide strategy, the CEO is the ideal evangelist and project sponsor for your BI strategy.
    • Establishing a CEO–CIO partnership helps elevate IT to the level of a strategic partner, as opposed to the traditional view that IT’s only job is to “keep the lights on.”
    • An endorsement from the CEO may make other C-level executives more inclined to work with IT and have their business unit be the starting point for growing a BI program organically.

    "In the energy sector, achieving production KPIs are the key to financial success. The CFO is motivated to work with IT to create BI applications that drive higher revenue, identify operational bottlenecks, and maintain gross margin."

    – Yogi Schulz, Partner, Corvelle Consulting

    Select a BI project team

    Create a project team with the right skills, experience, and perspectives to develop a comprehensive strategy aligned to business needs.

    You may need to involve external experts as well as individuals within the organization who have the needed skills.

    A detailed understanding of what to look for in potential candidates is essential before moving forward with your BI project.

    Leverage several of Info-Tech’s Job Description Templates to aid in the process of selecting the right people to involve in constructing your BI strategy.

    Roles to Consider

    Business Stakeholders

    Business Intelligence Specialist

    Business Analyst

    Data Mining Specialist

    Data Warehouse Architect

    Enterprise Data Architect

    Data Steward

    "In developing the ideal BI team, your key person to have is a strong data architect, but you also need buy-in from the highest levels of the organization. Buy-in from different levels of the organization are indicators of success more than anything else."

    – Rob Anderson, Database Administrator and BI Manager, IT Research and Advisory Firm

    Create a RACI matrix to clearly define the roles and responsibilities for the parties involved

    A common project management pitfall for any endeavour is unclear definition of responsibilities amongst the individuals involved.

    As a business intelligence project requires a significant amount of back and forth between business and IT – bridged by the BI Steering Committee – clear guidelines at the project outset with a RACI chart provide a basic framework for assigning tasks and lines of communication for the later stages.

    Responsible Accountable Consulted Informed

    Obtaining Buy-in Project Charter Requirements Design Development Program Creation
    BI Steering Committee A C I I I C
    Project Sponsor - C I I I C
    Project Manager - R A I I C
    VP of BI R I I I I A
    CIO A I I I I R
    Business Analyst I I R C C C
    Solution Architect - - C A C C
    Data Architect - - C A C C
    BI Developer - - C C R C
    Data Steward - - C R C C
    Business SME C C C C C C

    Note: This RACI is an example of how role expectations would be broken down across the different steps of the project. Develop your own RACI based on project scope and participants.

    STEP 1.1

    Understand Your Business Context and Structure the Project

    Establish business–IT alignment for your BI strategy by detailing the business context

    Step Objectives

    • Engage the business units to find out where users need BI enablement.
    • Ideate preliminary points for improvement that will further business goals and calculate their value.

    Step Activities

    1.1.1 Craft the vision and mission statements for the Analytics program using the vision, mission, and strategies of your organization as basis.

    1.1.2 Articulate program goals and objectives

    1.1.3 Determine business differentiators and key drivers

    1.1.4 Brainstorm BI-specific constraints and improvement objectives

    Outcomes

    • Clearly articulated business context that will provide a starting point for formulating a BI strategy
    • High-level improvement objectives and ROI for the overall project
    • Vision, mission, and objectives of the analytics program

    Research Support

    • Info-Tech’s BI Strategy and Roadmap Template

    Proposed Participants in this Step

    • Project Manager
    • Project Team
    • Relevant Business Stakeholders and Subject Matter Experts

    Transform the way the business makes decisions

    Your BI strategy should enable the business to make fast, effective, and comprehensive decisions.

    Fast Effective Comprehensive
    Reduce time spent on decision-making by designing a BI strategy around information needs of key decision makers. Make the right data available to key decision makers. Make strategic high-value, impactful decisions as well as operational decisions.

    "We can improve BI environments in several ways. First, we can improve the speed with which we create BI objects by insisting that the environments are designed with flexibility and adaptability in mind. Second, we can produce higher quality deliverables by ensuring that IT collaborate with the business on every deliverable. Finally, we can reduce the costs of BI by giving access to the environment to knowledgeable business users and encouraging a self-service function."

    – Claudia Imhoff, Founder, Boulder BI Brain Trust, Intelligent Solutions Inc.

    Assess needs of various stakeholders using personas

    User groups/user personas

    Different users have different consumption and usage patterns. Categorize users into user groups and visualize the usage patterns. The user groups are the connection between the BI capabilities and the users.

    User groups Mindset Usage Pattern Requirements
    Front-line workers Get my job done; perform my job quickly. Reports (standard reports, prompted reports, etc.) Examples:
    • Report bursting
    • Prompted reports
    Analysts I have some ideas; I need data to validate and support my ideas. Dashboards, self-service BI, forecasting/budgeting, collaboration Examples:
    • Self-service datasets
    • Data mashup capability
    Management I need a big-picture view and yet I need to play around with the data to find trends to drive my business. Dashboards, scorecards, mobile BI, forecasting/budgeting Examples:
    • Multi-tab dashboards
    • Scorecard capability
    Data scientists I need to combine existing data, as well as external or new, unexplored data sources and types to find nuggets in the data. Data mashup, connections to data sources Examples:
    • Connectivity to big data
    • Social media analyses

    The pains of inadequate BI are felt across the entire organization – and land squarely on the shoulders of the CIO

    Organization:

    • Insufficient information to make decisions.
    • Unable to measure internal performance.
    • Losses incurred from bad decisions or delayed decisions.
    • Canned reports fail to uncover key insights.
    • Multiple versions of information exist in silos.

    IT Department

    • End users are completely dependent on IT for reports.
    • Ad hoc BI requests take time away from core duties.
    • Spreadsheet-driven BI is overly manual.
    • Business losing trust in IT.

    CIO

    • Under great pressure and has a strong desire to improve BI.
    • Ad hoc BI requests are consuming IT resources and funds.
    • My organization finds value in using data and having decision support to make informed decisions.

    The overarching question that needs to be continually asked to create an effective BI strategy is:

    How do I create an environment that makes information accessible and consumable to users, and facilitates a collaborative dialogue between the business and IT?

    Pre-requisites for success

    Prerequisite #1: Secure Executive Sponsorship

    Sponsorship of BI that is outside of IT and at the highest levels of the organization is essential to the success of your BI strategy. Without it, there is a high chance that your BI program will fail. Note that it may not be an epic fail, but it is a subtle drying out in many cases.

    Prerequisite #2: Understand Business Context

    Providing the right tools for business decision making doesn’t need to be a guessing game if the business context is laid as the project foundation and the most pressing decisions serve as starting points. And business is engaged in formulating and executing the strategy.

    Prerequisite #3: Deliver insights that lead to action

    Start with understanding the business processes and where analytics can improve outcomes. “Think business backwards, not data forward.” (McKinsey)

    11 reasons BI projects fail

    Lack of Executive support

    Old Technology

    Lack of business support

    Too many KPIs

    No methodology for gathering requirements

    Overly long project timeframes

    Bad user experience

    Lack of user adoption

    Bad data

    Lack of proper human resources

    No upfront definition of true ROI

    Mico Yuk, 2019

    Make it clear to the business that IT is committed to building and supporting a BI platform that is intimately tied to enabling changing business objectives.

    Leverage Info-Tech’s BI Strategy and Roadmap Template to accelerate BI planning

    How to accelerate BI planning using the template

    1. Prepopulated text that you can use for your strategy formulation:
    2. Prepopulated text that can be used for your strategy formulation
    3. Sample bullet points that you can pick and choose from:
    4. Sample bullet points to pick and choose from

    Document the BI program planning in Info-Tech’s

    BI Strategy and Roadmap Template.

    Activity: Describe your organization’s vision and mission

    1.1.1

    30-40 minutes

    Compelling vision and mission statements will help guide your internal members toward your company’s target state. These will drive your business intelligence strategy.

    1. Your vision clearly represents where your organization aspires to be in the future and aligns the entire organization. Write down a future-looking, inspirational, and realizable vision in one concise statement. Consider:
    • “Five years from now, our business will be _______.”
    • What do we want to do tomorrow? For whom? What is the benefit?
  • Your mission tells why your organization currently exists and clearly expresses how it will achieve your vision for the future. Write down a mission statement in one clear and concise paragraph consisting of, at most, five sentences. Consider:
    • Why does the business exist? What problems does it solve? Who are its customers?
    • How does the business accomplish strategic tasks or reach its target?
  • Reconvene stakeholders to share ideas and develop one concise vision statement and mission statement. Focus on clarity and message over wording.
  • Input

    • Business vision and mission statements

    Output

    • Alignment and understanding on business vision

    Materials

    Participants

    • BI project lead
    • Executive business stakeholders

    Info-Tech Insight

    Adjust your statements until you feel that you can elicit a firm understanding of both your vision and mission in three minutes or less.

    Formulating an Enterprise BI and Analytics Strategy: Top-down BI Opportunity analysis

    Top-down BI Opportunity analysis

    Example of deriving BI opportunities using BI Opportunity Analysis

    Industry Drivers Private label Rising input prices Retail consolidation
    Company strategies Win at supply chain execution Win at customer service Expand gross margins
    Value disciplines Strategic cost management Operational excellence Customer service
    Core processes Purchasing Inbound logistics Sales, service & distribution
    Enterprise management: Planning, budgeting, control, process improvement, HR
    BI Opportunities Customer service analysis Cost and financial analysis Demand management

    Williams 2016

    Get your organization buzzing about BI – leverage Info-Tech’s Executive Brief as an internal marketing tool

    Two key tasks of a project sponsor are to:

    1. Evangelize the realizable benefits of investing in a business intelligence strategy.
    2. Help to shift the corporate culture to one that places emphasis on data-driven insight.

    Arm your project sponsor with our Executive Brief for this blueprint as a quick way to convey the value of this project to potential stakeholders.

    Bolster this presentation by adding use cases and metrics that are most relevant to your organization.

    Develop a business framework

    Identifying organizational goals and how data can support those goals is key to creating a successful BI & Analytical strategy. Rounding out the business model with technology drivers, environmental factors (as described in previous steps), and internal barriers and enablers creates a holistic view of Business Intelligence within the context of the organization as a whole.

    Through business engagement and contribution, the following holistic model can be created to understand the needs of the business.

    business framework holistic model

    Activity: Describe the Industry Drivers and Organization strategy to mitigate the risk

    1.1.2

    30-45 minutes

    Industry drivers are external influencers that has an effect on a business such as economic conditions, competitor actions, trade relations, climate etc. These drivers can differ significantly by industry and even organizations within the same industry.

    1. List the industry drivers that influences your organization:
    • Public sentiment in regards to energy source
    • Rising cost of raw materials due to increase demand
  • List the company strategies, goals, objectives to counteract the external influencers:
    • Change production process to become more energy efficient
    • Win at customer service
  • Identify the value disciplines :
    • Strategic cost management
    • Operational Excellence
  • List the core process that implements the value disciplines :
    • Purchasing
    • Sales
  • Identify the BI Opportunities:
    • Cost and financial analysis
    • Customer service analysis

    Input

    • Industry drivers

    Output

    • BI Opportunities that business can leverage

    Materials

    • Industry driver section in the BI Strategy and Roadmap Template

    Participants

    • BI project lead
    • Executive business stakeholders

    Understand BI and analytics drivers and organizational objectives

    Environmental Factors Organizational Goals Business Needs Technology Drivers
    Definition External considerations are factors taking place outside the organization that are impacting the way business is conducted inside the organization. These are often outside the control of the business. Organizational drivers can be thought of as business-level metrics. These are tangible benefits the business can measure, such as customer retention, operation excellence, and/or financial performance. A requirement that specifies the behavior and the functions of a system. Technology drivers are technological changes that have created the need for a new BI solution. Many organizations turn to technology systems to help them obtain a competitive edge.
    Examples
    • Economy and politics
    • Laws and regulations
    • Competitive influencers
    • Time to market
    • Quality
    • Delivery reliability
    • Audit tracking
    • Authorization levels
    • Business rules
    • Deployment in the cloud
    • Integration
    • Reporting capabilities

    Activity: Discuss BI/Analytics drivers and organizational objectives

    1.1.3

    30-45 minutes

    1. Use the industry drivers and business goals identified in activity 1.1.2 as a starting point.
    2. Understand how the company runs today and what the organization’s future will look like. Try to identify the purpose for becoming an integrated organization. Use a whiteboard and markers to capture key findings.
    3. Take into account External Considerations, Organizational Drivers, Technology Drivers, and Key Functional Requirements.
    External Considerations Organizational Drivers Technology Considerations Functional Requirements
    • Funding Constraints
    • Regulations
    • Compliance
    • Scalability
    • Operational Efficiency
    • Data Accuracy
    • Data Quality
    • Better Reporting
    • Information Availability
    • Integration Between Systems
    • Secure Data

    Identify challenges and barriers to the BI project

    There are several factors that may stifle the success of a BI implementation. Scan the current environment to identify internal barriers and challenges to identify potential challenges so you can meet them head-on.

    Common Internal Barriers

    Management Support
    Organizational Culture
    Organizational Structure
    IT Readiness
    Definition The degree of management understanding and acceptance towards BI solutions. The collective shared values and beliefs. The functional relationships between people and departments in an organization. The degree to which the organization’s people and processes are prepared for a new BI solution.
    Questions
    • Is a BI project recognized as a top priority?
    • Will management commit time to the project?
    • Are employees resistant to change?
    • Is the organization highly individualized?
    • Is the organization centralized?
    • Is the organization highly formalized?
    • Is there strong technical expertise?
    • Is there strong infrastructure?
    Impact
    • Funding
    • Resources
    • Knowledge sharing
    • User acceptance
    • Flow of knowledge
    • Poor implementation
    • Reliance on consultants

    Activity: Discuss BI/Analytics challenges and pain points

    1.1.4

    30-45 minutes

    1. Identify challenges with the process identified in step 1.1.2.
    2. Brainstorm potential barriers to successful BI implementation and adoption. Use a whiteboard and marker to capture key findings.
    3. Consider Functional Gaps, Technical Gaps, Process Gaps, and Barriers to BI Success.
    Functional Gaps Technical Gaps Process Gaps Barriers to Success
    • No online purchase order requisition
    • Inconsistent reporting – data quality concerns
    • Duplication of data
    • Lack of system integration
    • Cultural mindset
    • Resistance to change
    • Lack of training
    • Funding

    Activity: Discuss opportunities and benefits

    1.1.5

    30-45 minutes

    1. Identify opportunities and benefits from an integrated system.
    2. Brainstorm potential enablers for successful BI implementation and adoption. Use a whiteboard and markers to capture key findings.
    3. Consider Business Benefits, IT Benefits, Organizational Benefits, and Enablers of BI success.
    Business Benefits IT Benefits Organizational Benefits Enablers of Success
    • Business-IT alignment
    • Compliance
    • Scalability
    • Operational Efficiency
    • Data Accuracy
    • Data Quality
    • Better Reporting
    • Change management
    • Training
    • Alignment to strategic objectives

    Your organization’s framework for Business Intelligence Strategy

    Blank organization framework for Business Intelligence Strategy

    Example: Business Framework for Data & Analytics Strategy

    The following diagram represents [Client]’s business model for BI and data. This holistic view of [Client]’s current environment serves as the basis for the generation of the business-aligned Data & Analytics Strategy.

    The image is an example of Business Framework for Data & Analytics Strategy.

    Info-Tech recommends balancing a top-down approach with bottom up for building your BI strateg

    Taking a top-down approach will ensure senior management’s involvement and support throughout the project. This ensures that the most critical decisions are supported by the right data/information, aligning the entire organization with the BI strategy. Furthermore, the gains from BI will be much more significant and visible to the rest of the organization.

    Two charts showing the top-down and bottom-up approach.

    Far too often, organizations taking a bottom-up approach to BI will fail to generate sufficient buy-in and awareness from senior management. Not only does a lack of senior involvement result in lower adoption from the tactical and operational levels, but more importantly, it also means that the strategic decision makers aren’t taking advantage of BI.

    Estimate the ROI of your BI and analytics strategy to secure executive support

    The value of creating a new strategy – or revamping an existing one – needs to be conveyed effectively to a high-level stakeholder, ideally a C-level executive. That executive buy-in is more likely to be acquired when effort has been made to determine the return on investment for the overall initiative.

    1. Business Impacts
      New revenue
      Cost savings
      Time to market
      Internal Benefits
      Productivity gain
      Process optimization
      Investment
      People – employees’ time, external resources
      Data – cost for new datasets
      Technology – cost for new technologies
    2. QuantifyCan you put a number or a percentage to the impacts and benefits? QuantifyCan you estimate the investments you need to put in?
    3. TranslateTranslate the quantities into dollar value
    4. The image depicts an equation for ROI estimate

    Example

    One percent increase in revenue; three more employees $225,000/yr, $150,000/yr 50%

    Activity: Establish a high-level ROI as part of an overall use case for developing a fit-for-purpose BI strategy

    1.1.6

    1.5 hours

    Communicating an ROI that is impactful and reasonable is essential for locking in executive-level support for any initiative. Use this activity as an initial touchpoint to bring business and IT perspectives as part of building a robust business case for developing your BI strategy.

    1. Revisit the business context detailed in the previous sections of this phase. Use priority objectives to identify use case(s), ideally where there are easily defined revenue generators/cost reductions (e.g. streamlining the process of mailing physical marketing materials to customers).
    2. Assign research tasks around establishing concrete numbers and dollar values.
    • Have a subject matter expert weigh in to validate your figures.
    • When calculating ROI, consider how you might leverage BI to create opportunities for upsell, cross-sell, or increased customer retention.
  • Reconvene the stakeholder group and discuss your findings.
    • This is the point where expectation management is important. Separate the need-to-haves from the nice-to-haves.

    Emphasize that ROI is not fully realized after the first implementation, but comes as the platform is built upon iteratively and in an integrated fashion to mature capabilities over time.

    Input

    • Vision statement
    • Mission statement

    Output

    • Business differentiators and key drivers

    Materials

    • Benefit Cost Analysis section of the BI Strategy and Roadmap Template

    Participants

    • BI project lead
    • Executive IT & business stakeholders

    An effective BI strategy positions business intelligence in the larger data lifecycle

    In an effort to keep users satisfied, many organizations rush into implementing a BI platform and generating reports for their business users. BI is, first and foremost, a presentation layer; there are several stages in the data lifecycle where the data that BI visualizes can be compromised.

    Without paying the appropriate amount of attention to the underlying data architecture and application integration, even the most sophisticated BI platforms will fall short of providing business users with a holistic view of company information.

    Example

    In moving away from single application-level reporting, a strategy around data integration practices and technology is necessary before the resultant data can be passed to the BI platform for additional analyses and visualization.

    BI doesn’t exist in a vacuum – develop an awareness of other key data management practices

    As business intelligence is primarily a presentation layer that allows business users to visualize data and turn information into actionable decisions, there are a number of data management practices that precede BI in the flow of data.

    Data Warehousing

    The data warehouse structures source data in a manner that is more operationally focused. The Reporting & Analytics Strategy must inform the warehouse strategy on data needs and building a data warehouse to meet those needs.

    Data Integration, MDM & RDM

    The data warehouse is built from different sources that must be integrated and normalized to enable Business Intelligence. The Info-Tech integration and MDM blueprints will guide with their implementation.

    Data Quality

    A major roadblock to building an effective BI solution is a lack of accurate, timely, consistent, and relevant data. Use Info-Tech’s blueprint to refine your approach to data quality management.

    Data quality, poor integration/P2P integration, poor data architecture are the primary barriers to truly leveraging BI, and a lot of companies haven’t gotten better in these areas.

    – Shari Lava, Associate Vice-President, IT Research and Advisory Firm

    Building consensus around data definitions across business units is a critical step in carrying out a BI strategy

    Business intelligence is heavily reliant on the ability of an organization to mesh data from different sources together and create a holistic and accurate source of truth for users.

    Useful analytics cannot be conducted if your business units define key business terms differently.

    Example

    Finance may label customers as those who have transactional records with the organization, but Marketing includes leads who have not yet had any transactions as customers. Neglecting to note these seemingly small discrepancies in data definition will undermine efforts to combine data assets from traditionally siloed functional units.

    In the stages prior to implementing any kind of BI platform, a top priority should be establishing common definitions for key business terms (customers, products, accounts, prospects, contacts, product groups, etc.).

    As a preliminary step, document different definitions for the same business terms so that business users are aware of these differences before attempting to combine data to create custom reports.

    Self-Assessment

    Do you have common definitions of business terms?

    • If not, identify common business terms.
    • At the very least, document different definitions of the same business terms so the corporate can compare and contrast them.

    STEP 1.2

    Assess the Current BI Landscape

    Establish an in-depth understanding of your current BI landscape

    Step Objectives

    • Inventory and assess the state of your current BI landscape
    • Document the artifacts of your BI environment

    Step Activities

    1.2.1 Analyze the usage levels of your current BI programs/platform

    1.2.2 Perform a survey to gather user perception of your current BI environment

    1.2.3 Take an inventory of your current BI artifacts

    Outcomes

    • Summarize the qualitative and quantitative performance of your existing BI environment
    • Understand the outputs coming from your BI sources

    Research Support

    • Info-Tech’s BI Strategy and Roadmap Template

    Project Manager

    Data Architect(s) or Enterprise Architect

    Project Team

    Understand your current BI landscape before you rationalize

    Relying too heavily on technology as the sole way to solve BI problems results in a more complex environment that will ultimately frustrate business users. Take the time to thoroughly assess the current state of your business intelligence landscape using a qualitative (user perception) and quantitative (usage statistics) approach. The insights and gaps identified in this step will serve as building blocks for strategy and roadmap development in later phases.

    Phase 1

    Current State Summary of BI Landscape

    1.2.1 1.2.2 1.2.3 1.2.4
    Usage Insights Perception Insights BI Inventory Insights Requirements Insights

    PHASE 2

    Strategy and Roadmap Formulation

    Gather usage insights to pinpoint the hot spots for BI usage amongst your users

    Usage data reflects the consumption patterns of end users. By reviewing usage data, you can identify aspects of your BI program that are popular and those that are underutilized. It may present some opportunities for trimming some of the underutilized content.

    Benefits of analyzing usage data:

    • Usage is a proxy for popularity and usability of the BI artifacts. The popular content should be kept and improved in your next generation BI.
    • Usage information provides insight on what, when, where, and how much users are consuming BI artifacts.
    • Unlike methods such as user interviews and focus groups, usage information is fact based and is not subject to peer pressure or “toning down.”

    Sample Sources of Usage Data:

    1. Usage reports from your BI platform Many BI platforms have out-of-the-box usage reports that log and summarize usage data. This is your ideal source for usage data.
    2. Administrator console in your BI platformBI platforms usually have an administrator console that allows BI administrators to configure settings and to monitor activities that include usage. You may obtain some usage data in the console. Note that the usage data is usually real-time in nature, and you may not have access to a historical view of the BI usage.

    Info-Tech Insight

    Don’t forget some of the power users. They may perform analytics by accessing datasets directly or with the help of a query tool (even straight SQL statements). Their usage information is important. The next generation BI should provide consumption options for them.

    Accelerate the process of gathering user feedback with Info-Tech’s Application Portfolio Assessment (APA)

    In an environment where multiple BI tools are being used, discovering what works for users and what doesn’t is an important first step to rationalizing the BI landscape.

    Info-Tech’s Application Portfolio Assessment allows you to create a custom survey based on your current applications, generate a custom report that will help you visualize user satisfaction levels, and pinpoint areas for improvement.

    Activity: Review and analyze usage data

    1.2.1

    2 hours

    This activity helps you to locate usage data in your existing environment. It also helps you to review and analyze usage data to come up with a few findings.

    1. Get to the usage source. You may obtain usage data from one of the below options. Usage reports are your ideal choice, followed by some alternative options:
    2. a. Administrator console – limited to real-time or daily usage data. You may need to track usage data over for several days to identify patterns.

      b. Info-Tech’s Application Portfolio Assessment (APA).

      c. Other – be creative. Some may use an IT usage monitoring system or web analytics to track time users spent on the BI portal.

    3. Develop categories for classifying the different sources of usage data in your current BI environment. Use the following table as starting point for creating these groups:

    This is the content for Layout H4 Tag

    By Frequency Real Time Daily Weekly Yearly
    By Presentation Format Report Dashboard Alert Scorecard
    By Delivery Web portal Excel PDF Mobile application

    INPUT

    • Usage reports
    • Usage statistics

    OUTPUT

    • Insights pertaining to usage patterns

    Materials

    • Usage Insights of the BI Strategy and Roadmap Template

    Participants

    • BA
    • BI Administrator
    • PM

    Activity: Review and analyze usage (cont.)

    1.2.1

    2 hours

    3. Sort your collection of BI artifacts by usage. Discuss some of the reasons why some content is popular whereas some has no usage at all.

    Popular BI Artifacts – Discuss improvements, opportunities and new artifacts

    Unpopular BI Artifacts – Discuss retirement, improvements, and realigning information needs

    4. Summarize your findings in the Usage Insights section of the BI Strategy and Roadmap Template.

    INPUT

    • Usage reports
    • Usage statistics

    OUTPUT

    • Insights pertaining to usage patterns

    Materials

    • Usage Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA
    • BI Administrator
    • PM

    Gather perception to understand the existing BI users

    In 1.2.1, we gathered the statistics for BI usage; it’s the hard data telling who uses what. However, it does not tell you the rationale, or the why, behind the usage. Gathering user perception and having conversations with your BI consumers is the key to bridging the gap.

    User Perception Survey

    Helps you to:

    1. Get general insights on user perception
    2. Narrow down to selected areas

    User Interviews

    Perception can be gathered by user interviews and surveys. Conducting user interviews takes time so it is a good practice to get some primary insights via survey before doing in-depth interviews in selected areas.

    – Shari Lava, Associate Vice-President, IT Research and Advisory Firm

    Define problem statements to create proof-of-concept initiatives

    Info-Tech’s Four Column Model of Data Flow

    Find a data-related problem or opportunity

    Ask open-ended discovery questions about stakeholder fears, hopes, and frustrations to identify a data-related problem that is clear, contained, and fixable. This is then to be written as a problem/opportunity statement.

    1. Fear: What is the number one risk you need to alleviate?
    2. Hope: What is the number one opportunity you wish to realize?
    3. Frustration: What is the number one annoying pet peeve you wish to scratch?
    4. Next, gather information to support a problem/opportunity statement:

    5. What are your challenges in performing the activity or process today?
    6. What does amazing look like if we solve this perfectly?
    7. What other business activities/processes will be impacted/improved if we solve this?
    8. What compliance/regulatory/policy concerns do we need to consider in any solution?
    9. What measures of success/change should we use to prove value of the effort (KPIs/ROI)?
    10. What are the steps in the process/activity?
    11. What are the applications/systems used at each step and from step to step?
    12. What data elements are created, used, and/or transformed at each step?

    Leverage Info-Tech’s BI survey framework to initiate a 360° perception survey

    Info-Tech has developed a BI survey framework to help existing BI practices gather user perception via survey. The framework is built upon best practices developed by McLean & Company.

    1. Communicate the survey
    2. Create a survey
    3. Conduct the survey
    4. Collect and clean survey data
    5. Analyze survey data
    6. Conduct follow-up interviews
    7. Identify and prioritize improvement initiatives

    The survey takes a comprehensive approach by examining your existing BI practices through the following lenses:

    360° Perception

    Demographics Who are the users? From which department?
    Usage How is the current BI being used?
    People Web portal
    Process How good is your BI team from a user perspective?
    Data How good is the BI data in terms of quality and usability?
    Technology How good are your existing BI/reporting tools?
    Textual Feedback The sky’s the limit. Tell us your comments and ideas via open-ended questions.

    Use Info-Tech’s BI End-User Satisfaction Survey Framework to develop a comprehensive BI survey tailored to your organization.

    Activity: Develop a plan to gather user perception of your current BI program

    1.2.2

    2 hours

    This activity helps you to plan for a BI perception survey and subsequent interviews.

    1. Proper communication while conducting surveys helps to boost response rate. The project team should have a meeting with business executives to decide:
    • The survey goals
    • Which areas to cover
    • Which trends and hypotheses you want to confirm
    • Which pre-, during, and post-survey communications should be sent out
  • Have the project team create the first draft of the survey for subsequent review by select business stakeholders. Several iterations may be needed before finalizing.
  • In planning for the conclusion of the survey, the project team should engage a data analyst to:
    1. Organize the data in a useful format
    2. Clean up the survey data when there are gaps
    3. Summarize the data into a presentable/distributable format

    Collectively, the project team and the BI consuming departments should review the presentation and discuss these items:

    Misalignment

    Opportunities

    Inefficiencies

    Trends

    Need detailed interviews?

    INPUT

    • Usage information and analyses

    OUTPUT

    • User-perception survey

    Materials

    • Perception Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA
    • BI Administrator
    • PM
    • Business SMEs

    Create a comprehensive inventory of your BI artifacts

    Taking an inventory of your BI artifacts allows you to understand what deliverables have been developed over the years. Inventory taking should go beyond the BI content. You may want to include additional information products such as Excel spreadsheets, reports that are coming out of an Access database, and reports that are generated from front-end applications (e.g. Salesforce).

    1. Existing Reports from BI platform

    2. If you are currently using a BI platform, you have some BI artifacts (reports, scorecards, dashboards) that are developed within the platform itself.

    • BI Usage Reports (refer to step 2.1) – if you are getting a comprehensive BI usage reports for all your BI artifacts, there is your inventory report too.
    • BI Inventory Reports – Your BI platform may provide out-of-the-box inventory reports. You can use them as your inventory.
    • If the above options are not feasible, you may need to manually create the BI inventory. You may build that from some of your existing BI documentations to save time.
  • Excel and Access

    • Work with the business units to identify if Excel and Access are used to generate reports.
  • Application Reports

    • Data applications such as Salesforce, CRM, and ERP often provide reports as an out-of-the-box feature.
    • Those reports only include data within their respective applications. However, this may present opportunities for integrating application data with additional data sources.

    Activity: Inventory your BI artifacts

    1.2.3

    2+ hours

    This activity helps you to inventory your BI information artifacts and other related information artifacts.

    1. Define the scope of your inventory. Work with the project sponsor and CIO to define which sources should be captured in the inventory process. Consider: BI inventory, Excel spreadsheets, Access reports, and application reporting.
    2. Define the depth of your inventory. Work with the project sponsor and CIO to define the level of granularity. In some settings, the artifact name and a short description may be sufficient. In other cases, you may need to document users and business logic of the artifacts.
    3. Review the inventory results. Discuss findings and opportunities around the following areas:

    Interpret your Inventory

    Duplicated reports/ dashboards Similar reports/ dashboards that may be able to merge Excel and Access reports that are using undocumented, unconventional business logics Application reports that need to be enhanced by additional data Classify artifacts by BI Type

    INPUT

    • Current BI artifacts and documents
    • BI Type classification

    OUTPUT

    • Summary of BI artifacts

    Materials

    • BI Inventory Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA
    • Data analyst
    • PM
    • Project sponsor

    Project sponsor

    1.2.4

    2+ hours

    This activity helps you to inventory your BI by report type.

    1. Classify BI artifacts by type. Use the BI Type tool to classify Work with the project sponsor and CIO to define which sources should be captured in the inventory process. Consider: BI inventory, Excel spreadsheets, Access reports, and application reporting.
    2. Define the depth of your inventory. Work with the project sponsor and CIO to define the level of granularity. In some settings, the artifact name and a short description may be sufficient. In other cases, you may need to document users and business logic of the artifacts.
    3. Review the inventory results. Discuss findings and opportunities around the following areas:

    Interpretation of your Inventory

    Duplicated reports/dashboards Similar reports/dashboards that may be able to merge Excel and Access reports that are using undocumented, unconventional business logics Application reports that need to be enhanced by additional data

    INPUT

    • The BI Type as used by different business units
    • Business BI requirements

    OUTPUT

    • Summary of BI type usage across the organization

    Materials

    • BI Inventory Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA
    • Data analyst
    • PM
    • Project sponsor

    STEP 1.3

    Undergo BI Requirements Gathering

    Perform requirements gathering for revamping your BI environment

    Step Objectives

    • Create principles that will direct effective requirements gathering
    • Create a list of existing and desired BI requirements

    Step Activities

    1.3.1 Create requirements gathering principles

    1.3.2 Gather appropriate requirements

    1.3.3 Organize and consolidate the outputs of requirements gathering activities

    Outcomes

    • Requirements gathering principles that are flexible and repeatable
    • List of BI requirements

    Research Support

    • Info-Tech’s BI Strategy and Roadmap Template

    Proposed Participants in this Step

    Project Manager

    Data Architect(s) or Enterprise Architect

    Project Team

    Business Users

    Don’t let your new BI platform become a victim of poor requirements gathering

    The challenges in requirements management often have underlying causes; find and eliminate the root causes rather than focusing on the symptoms.

    Root Causes of Poor Requirements Gathering:

    • Requirements gathering procedures exist but aren’t followed.
    • There isn't enough time allocated to the requirements gathering phase.
    • There isn't enough involvement or investment secured from business partners.
    • There is no senior leadership involvement or mandate to fix requirements gathering.
    • There are inadequate efforts put towards obtaining and enforcing sign off.

    Outcomes of Poor Requirements Gathering:

    • Rework due to poor requirements leads to costly overruns.
    • Final deliverables are of poor quality and are implemented late.
    • Predicted gains from deployed applications are not realized.
    • There are low feature utilization rates by end users.
    • Teams are frustrated within IT and the business.

    Info-Tech Insight

    Requirements gathering is the number one failure point for most development or procurement projects that don’t deliver value. This has been, and continues to be, the case as most organizations still don't get requirements gathering right. Overcoming organizational cynicism can be a major obstacle to clear when it is time to optimize the requirements gathering process.

    Define the attributes of a good requirement to help shape your requirements gathering principles

    A good requirement has the following attributes:

    Verifiable It is stated in a way that can be tested.
    Unambiguous It is free of subjective terms and can only be interpreted in one way.
    Complete It contains all relevant information.
    Consistent It does not conflict with other requirements.
    Achievable It is possible to accomplish given the budgetary and technological constraints.
    Traceable It can be tracked from inception to testing.
    Unitary It addresses only one thing and cannot be deconstructed into multiple requirements.
    Accurate It is based on proven facts and correct information.

    Other Considerations

    Organizations can also track a requirement owner, rationale, priority level (must have vs. nice to have), and current status (approved, tested, etc.).

    Info-Tech Insight

    Requirements must be solution agnostic – they should focus on the underlying need rather than the technology required to satisfy the need.

    Activity: Define requirements gathering principles

    1.3.1

    1 hour

    1. Invite representatives from the project management office, project management team, and BA team, as well as some key business stakeholders.
    2. Use the sample categories and principles in the table below as starting points for creating your own requirements gathering principles.
    3. Document the requirements gathering principles in the BI Strategy and Roadmap Template.
    4. Communicate the requirements gathering principles to the affected BI stakeholders.

    Sample Principles to Start With

    Effectiveness Face-to-face interviews are preferred over phone interviews.
    Alignment Clarify any misalignments, even the tiniest ones.
    Validation Rephrase requirements at the end to validate requirements.
    Ideation Use drawings and charts to explain ideas.
    Demonstration Make use of Joint Application Development (JAD) sessions.

    INPUT

    • Existing requirement principles (if any)

    OUTPUT

    • Requirements gathering principles that can be revisited and reused

    Materials

    • Requirements Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA Team
    • PM
    • Business stakeholders
    • PMO

    Info-Tech Insight

    Turn requirements gathering principles into house rules. The house rules should be available in every single requirements gathering session and the participants should revisit them when there are disagreements, confusion, or silence.

    Right-size your approach to BI requirements management

    Info-Tech suggests four requirements management approaches based on project complexity and business significance. BI projects usually require the Strategic Approach in requirements management.

    Requirements Management Process Explanations

    Approach Definition Recommended Strategy
    Strategic Approach High business significance and high project complexity merits a significant investment of time and resources in requirements gathering. Treat the requirements gathering phase as a project within a project. A large amount of time should be dedicated to elicitation, business process mapping, and solution design.
    Fundamental Approach High business significance and low project complexity merits a heavy emphasis on the elicitation phase to ensure that the project bases are covered and business value is realized. Look to achieve quick wins and try to survey a broad cross-section of stakeholders during elicitation and validation. The elicitation phase should be highly iterative. Do not over-complicate the analysis and validation of a straightforward project.
    Calculated Approach Low business significance and high project complexity merits a heavy emphasis on the analysis and validation phases to ensure that the solution meets the needs of users. Allocate a significant amount of time to business process modeling, requirements categorization, prioritization, and solution modeling.
    Elementary Approach Low business significance and low project complexity does not merit a high amount of rigor for requirements gathering. Do not rush or skip steps, but aim to be efficient. Focus on basic elicitation techniques (e.g. unstructured interviews, open-ended surveys) and consider capturing requirements as user stories. Focus on efficiency to prevent project delays and avoid squandering resources.

    Vary the modes used in eliciting requirements from your user base

    Requirements Gathering Modes

    Info-Tech has identified four effective requirements gathering modes. During the requirements gathering process, you may need to switch between the four gathering modes to establish a thorough understanding of the information needs.

    Dream Mode

    • Mentality: Let users’ imaginations go wild. The sky’s the limit.
    • How it works: Ask users to dream up the ideal future state and ask how analytics can support those dreams.
    • Limitations: Not all dreams can be fulfilled. A variety of constraints (budget, personnel, technical skills) may prevent the dreams from becoming reality.

    Pain Mode

    • Mentality: Users are currently experiencing pains related to information needs.
    • How it works: Vent the pains. Allow end users to share their information pains, ask them how their pains can be relieved, then convert those pains to requirements.
    • Limitations: Users are limited by the current situation and aren’t looking to innovate.

    Decode Mode

    • Mentality: Read the hidden messages from users. Speculate as to what the users really want.
    • How it works: Decode the underlying messages. Be innovative to develop hypotheses and then validate with the users.
    • Limitations: Speculations and hypothesis could be invalid. They may direct the users into some pre-determined directions.

    Profile Mode

    • Mentality: “I think you may want XYZ because you fall into that profile.”
    • How it works: The information user may fall into some existing user group profile or their information needs may be similar to some existing users.
    • Limitations: This mode doesn’t address very specific needs.

    Supplement BI requirements with user stories and prototyping to ensure BI is fit for purpose

    BI is a continually evolving program. BI artifacts that were developed in the past may not be relevant to the business anymore due to changes in the business and information usage. Revamping your BI program entails revisiting some of the BI requirements and/or gathering new BI requirements.

    Three-Step Process for Gathering Requirements

    Requirements User Stories Rapid Prototyping
    Gather requirements. Most importantly, understand the business needs and wants. Leverage user stories to organize and make sense of the requirements. Use a prototype to confirm requirements and show the initial draft to end users.

    Pain Mode: “I can’t access and manipulate data on my own...”

    Decode Mode: Dig deeper: could this hint at a self-service use case?

    Dream Mode: E.g. a sandbox area where I can play around with clean, integrated, well-represented data.

    Profile Mode: E.g. another marketing analyst is currently using something similar.

    ExampleMary has a spreadmart that keeps track of all campaigns. Maintaining and executing that spreadmart is time consuming.

    Mary is asking for a mash-up data set that she can pivot on her own…

    Upon reviewing the data and the prototype, Mary decided to use a heat map and included two more data points – tenure and lifetime value.

    Identify which BI styles best meet user requirements

    A spectrum of Business Intelligence solutions styles are available. Use Info-Tech’s BI Styles Tool to assess which business stakeholder will be best served by which style.

    Style Description Strategic Importance (1-5) Popularity (1-5) Effort (1-5)
    Standards Preformatted reports Standard, preformatted information for backward-looking analysis. 5 5 1
    User-defined analyses Pre-staged information where “pick lists” enable business users to filter (select) the information they wish to analyze, such as sales for a selected region during a selected previous timeframe. 5 4 2
    Ad-hoc analyses Power users write their own queries to extract self-selected pre-staged information and then use the information to perform a user-created analysis. 5 4 3
    Scorecards and dashboards Predefined business performance metrics about performance variables that are important to the organization, presented in a tabular or graphical format that enables business users to see at a glance how the organization is performing. 4 4 3
    Multidimensional analysis (OLAP) Multidimensional analysis (also known as on-line analytical processing): Flexible tool-based, user-defined analysis of business performance and the underlying drivers or root causes of that performance. 4 3 3
    Alerts Predefined analyses of key business performance variables, comparison to a performance standard or range, and communication to designated businesspeople when performance is outside the predefined performance standard or range. 4 3 3
    Advanced Analytics Application of long-established statistical and/or operations research methods to historical business information to look backward and characterize a relevant aspect of business performance, typically by using descriptive statistics. 5 3 4
    Predictive Analytics Application of long-established statistical and/or operations research methods and historical business information to predict, model, or simulate future business and/or economic performance and potentially prescribe a favored course of action for the future. 5 3 5

    Activity: Gather BI requirements

    1.3.2

    2-6 hours

    Using the approaches discussed on previous slides, start a dialogue with business users to confirm existing requirements and develop new ones.

    1. Invite business stakeholders to a requirements gathering session.
    2. For existing BI artifacts – Invite existing users of those artifacts.

      For new BI development – Invite stakeholders at the executive level to understand the business operation and their needs and wants. This is especially important if their department is new to BI.

    3. Discuss the business requirements. Systematically switch between the four requirements gathering modes to get a holistic view of the requirements.
    4. Once requirements are gathered, organize them to tell a story. A story usually has these components:
    The Setting The Characters The Venues The Activities The Future
    Example Customers are asking for a bundle discount. CMO and the marketing analysts want to… …the information should be available in the portal, mobile, and Excel. …information is then used in the bi-weekly pricing meeting to discuss… …bundle information should contain historical data in a graphical format to help executives.

    INPUT

    • Existing documentations on BI artifacts

    OUTPUT

    • Preliminary, uncategorized list of BI requirements

    Materials

    • Requirements Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA team
    • Business stakeholders
    • Business SMEs
    • BI developers

    Clarify consumer needs by categorizing BI requirements

    Requirements are too broad in some situations and too detailed in others. In the previous step we developed user stories to provide context. Now you need to define requirement categories and gather detailed requirements.

    Considerations for Requirement Categories

    Category Subcategory Sample Requirements
    Data Granularity Individual transaction
    Transformation Transform activation date to YYYY-MM format
    Selection Criteria Client type: consumer. Exclude SMB and business clients. US only. Recent three years
    Fields Required Consumer band, Region, Submarket…
    Functionality Filters Filters required on the dashboard: date range filter, region filter…
    Drill Down Path Drill down from a summary report to individual transactions
    Analysis Required Cross-tab, time series, pie chart
    Visual Requirements Mock-up See attached drawing
    Section The dashboard will be presented using three sections
    Conditional Formatting Below-average numbers are highlighted
    Security Mobile The dashboard needs to be accessed from mobile devices
    Role Regional managers will get a subset of the dashboard according to the region
    Users John, Mary, Tom, Bob, and Dave
    Export Dashboard data cannot be exported into PDF, text, or Excel formats
    Performance Speed A BI artifact must be loaded in three seconds
    Latency Two seconds response time when a filter is changed
    Capacity Be able to serve 50 concurrent users with the performance expected
    Control Governance Govern by the corporate BI standards
    Regulations Meet HIPPA requirements
    Compliance Meet ISO requirements

    Prioritize requirements to assist with solution modeling

    Prioritization ensures that the development team focuses on the right requirements.

    The MoSCoW Model of Prioritization

    Must Have Requirements that mustbe implemented for the solution to be considered successful.
    Should Have Requirements that are high priority and should be included in the solution if possible.
    Could Have Requirements that are desirable but not necessary and could be included if resources are available.
    Won't Have Requirements that won’t be in the next release but will be considered for the future releases.

    The MoSCoW model was introduced by Dai Clegg of Oracle UK in 1994.

    Prioritization is the process of ranking each requirement based on its importance to project success. Hold a separate meeting for the domain SMEs, implementation SMEs, project managers, and project sponsors to prioritize the requirements list. At the conclusion of the meeting, each requirement should be assigned a priority level. The implementation SMEs will use these priority levels to ensure that efforts are targeted towards the proper requirements and the plan features available on each release. Use the MoSCoW Model of Prioritization to effectively order requirements.

    Activity: Finalize the list of BI requirements

    1.3.3

    1-4 hours

    Requirement Category Framework

    Category Subcategory
    Data Granularity
    Transformation
    Selection Criteria
    Fields Required
    Functionality Filters
    Drill Down Path
    Analysis Required
    Visual Requirements Mock-up
    Section
    Conditional Formatting
    Security Mobile
    Role
    Users
    Export
    Performance Speed
    Latency
    Capacity
    Control Governance
    Regulations
    Compliance

    Create requirement buckets and classify requirements.

    1. Define requirement categories according to the framework.
    2. Review the user story and requirements you collected in Step 1.3.2. Classify the requirements within requirement categories.
    3. Review the preliminary list of categorized requirements and look for gaps in this detailed view. You may need to gather additional requirements to fill the gaps.
    4. Prioritize the requirements according to the MoSCoW framework.
    5. Document your final list of requirements in the BI Strategy and Roadmap Template.

    INPUT

    • Existing requirements and new requirements from step 1.3.2

    OUTPUT

    • Prioritized and categorized requirements

    Materials

    • Requirements Insights section of the BI Strategy and Roadmap Template

    Participants

    • BA
    • Business stakeholders
    • PMO

    Translate your findings and ideas into actions that will be integrated into the BI Strategy and Roadmap Template

    As you progress through each phase, document findings and ideas as they arise. At phase end, hold a brainstorming session with the project team focused on documenting findings and ideas and substantiating them into improvement actions.

    Translating findings and ideas into actions that will be integrated into the BI Strategy and Roadmap Template

    Ask yourself how BI or analytics can be used to address the gaps and explore opportunities uncovered in each phase. For example, in Phase 1, how do current BI capabilities impede the realization of the business vision?

    Document and prioritize Phase 1 findings, ideas, and action items

    1.3.4

    1-2 hours

    1. Reconvene as a group to review findings, ideas, and actions harvested in Phase 1. Write the findings, ideas, and actions on sticky notes.
    2. Prioritize the sticky notes to yield those with high business value and low implementation effort. View some sample findings below:
    3. High Business Value, Low Effort High Business Value, High Effort
      Low Business Value, High Effort Low Business Value, High Effort

      Phase 1

      Sample Phase 1 Findings Found two business objectives that are not supported by BI/analytics
      Some executives still think BI is reporting
      Some confusion around operational reporting and BI
      Data quality plays a big role in BI
      Many executives are not sure about the BI ROI or asking for one
    4. Select the top findings and document them in the “Other Phase 1 Findings” section of the BI Strategy and Roadmap Template. The findings will be used again in Phase 3.

    INPUT

    • Phase 1 activities
    • Business context (vision, mission, goals, etc.

    OUTPUT

    • Other Phase 1 Findings section of the BI Strategy and Roadmap Template

    Materials

    • Whiteboard
    • Sticky notes

    Participants

    • Project manger
    • Project team
    • Business stakeholders

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.1-1.1.5

    Establish the business context

    To begin the workshop, your project team will be taken through a series of activities to establish the overall business vision, mission, objectives, goals, and key drivers. This information will serve as the foundation for discerning how the revamped BI strategy needs to enable business users.

    1.2.1- 1.2.3

    Create a comprehensive documentation of your current BI environment

    Our analysts will take your project team through a series of activities that will facilitate an assessment of current BI usage and artifacts, and help you design an end-user interview survey to elicit context around BI usage patterns.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-tech analysts

    1.3.1-1.3.3

    Establish new BI requirements

    Our analysts will guide your project team through frameworks for eliciting and organizing requirements from business users, and then use those frameworks in exercises to gather some actual requirements from business stakeholders.

    Phase 2

    Evaluate Your Current BI Practice

    Build a Reporting and Analytics Strategy

    Revisit project metrics to track phase progress

    Goals for Phase 2:

    • Assess your current BI practice. Determine the maturity of your current BI practice from different viewpoints.
    • Develop your BI target state. Plan your next generation BI with Info-Tech’s BI patterns and best practices.
    • Safeguard your target state. Avoid BI pitfalls by proactively monitoring BI risks.

    Info-Tech’s Suggested Metrics for Tracking Phase 2 Goals

    Practice Improvement Metrics Data Collection and Calculation Expected Improvement
    # of groups participated in the current state assessment The number of groups joined the current assessment using Info-Tech’s BI Practice Assessment Tool Varies; the tool can accommodate up to five groups
    # of risks mitigated Derive from your risk register At least two to five risks will be identified and mitigated

    Intangible Metrics:

    • Prototyping approach allows the BI group to understand more about business requirements, and in the meantime, allows the business to understand how to partner with the BI group.
    • The BI group and the business have more confidence in the BI program as risks are monitored and mitigated on an ad hoc basis.

    Evaluate your current BI practice

    Phase 2 Overarching Insight

    BI success is not based solely on the technology it runs on; technology cannot mask gaps in capabilities. You must be capable in your environment, and data management, data quality, and related data practices must be strong. Otherwise, the usefulness of the intelligence suffers. The best BI solution does not only provide a technology platform, but also addresses the elements that surround the platform. Look beyond tools and holistically assess the maturity of your BI practice with input from both the BI consumer and provider perspectives.

    Understand the Business Context to Rationalize Your BI Landscape Evaluate Your Current BI Practice Create a BI Roadmap for Continuous Improvement
    Establish the Business Context
    • Business Vision, Goals, Key Drivers
    • Business Case Presentation
    • High-Level ROI
    Assess Your Current BI Maturity
    • SWOT Analysis
    • BI Practice Assessment
    • Summary of Current State
    Construct a BI Initiative Roadmap
    • BI Improvement Initiatives
    • BI Strategy and Roadmap
    Access Existing BI Environment
    • BI Perception Survey Framework
    • Usage Analyses
    • BI Report Inventory
    Envision BI Future State
    • BI Patterns
    • BI Practice Assessment
    • List of Functions
    Plan for Continuous Improvement
    • Excel Governance Policy
    • BI Ambassador Network Draft
    Undergo Requirements Gathering
    • Requirements Gathering Principles
    • Overall BI Requirements

    Phase 2 overview

    Detailed Overview

    Step 1: Assess Your Current BI Practice

    Step 2: Envision a Future State for Your BI Practice

    Outcomes

    • A comprehensive assessment of current BI practice maturity and capabilities.
    • Articulation of your future BI practice.
    • Improvement objectives and activities for developing your current BI program.

    Benefits

    • Identification of clear gaps in BI practice maturity.
    • A current state assessment that includes the perspectives of both BI providers and consumers to highlight alignment and/or discrepancies.
    • A future state is defined to provide a benchmark for your BI program.
    • Gaps between the future and current states are identified; recommendations for the gaps are defined.

    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: Evaluate Your Current BI Practice

    Proposed Time to Completion: 1-2 weeks

    Step 2.1: Assess Your Current BI Practice

    Start with an analyst kick-off call:

    • Detail the benefits of conducting multidimensional assessments that involve BI providers as well as consumers.
    • Review Info-Tech’s BI Maturity Model.

    Then complete these activities…

    • SWOT analyses
    • Identification of BI maturity level through a current state assessment

    With these tools & templates:

    BI Practice Assessment Tool

    BI Strategy and Roadmap Template

    Step 2.2: Envision a Future State for Your BI Practice

    Review findings with an analyst:

    • Discuss overall maturity gaps and patterns in BI perception amongst different units of your organization.
    • Discuss how to translate activity findings into robust initiatives, defining critical success factors for BI development and risk mitigation.

    Then complete these activities…

    • Identify your desired BI patterns and functionalities.
    • Complete a target state assessment for your BI practice.
    • Review capability practice gaps and phase-level metrics.

    With these tools & templates:

    BI Practice Assessment Tool

    BI Strategy and Roadmap Template

    Phase 2 Results & Insights:

    • A comprehensive assessment of the organization’s current BI practice capabilities and gaps
    • Visualization of BI perception from a variety of business users as well as IT
    • A list of tasks and initiatives for constructing a strategic BI improvement roadmap

    STEP 2.1

    Assess the Current State of Your BI Practice

    Assess your organization’s current BI capabilities

    Step Objectives

    • Understand the definitions and roles of each component of BI.
    • Contextualize BI components to your organization’s environment and current practices.

    Step Activities

    2.1.1 Perform multidimensional SWOT analyses

    2.1.2 Assess current BI and analytical capabilities, Document challenges, constraints, opportunities

    2.1.3 Review the results of your current state assessment

    Outcomes

    • Holistic perspective of current BI strengths and weaknesses according to BI users and providers
    • Current maturity in BI and related data management practices

    Research Support

    • Info-Tech’s Data Management Framework
    • Info-Tech’s BI Practice Assessment Tool
    • Info-Tech’s BI Strategy and Roadmap Template

    Proposed Participants in this Step

    Project Manager

    Data Architect(s) or Enterprise Architect

    Project Team

    Gather multiple BI perspectives with comprehensive SWOT analyses

    SWOT analysis is an effective tool that helps establish a high-level context for where your practice stands, where it can improve, and the factors that will influence development.

    Strengths

    Best practices, what is working well

    Weaknesses

    Inefficiencies, errors, gaps, shortcomings

    Opportunities

    Review internal and external drivers

    Threats

    Market trends, disruptive forces

    While SWOT is not a new concept, you can add value to SWOT by:

    • Conducting a multi-dimensional SWOT to diversify perspectives – involve the existing BI team, BI management, business executives and other business users.
    • SWOT analyses traditionally provide a retrospective view of your environment. Add a future-looking element by creating improvement tasks/activities at the same time as you detail historical and current performance.

    Info-Tech Insight

    Consider a SWOT with two formats: a private SWOT worksheet and a public SWOT session. Participants will be providing suggestions anonymously while solicited suggestions will be discussed in the public SWOT session to further the discussion.

    Activity: Perform a SWOT analysis in groups to get a holistic view

    2.1.1

    1-2 hours

    This activity will take your project team through a holistic SWOT analysis to gather a variety of stakeholder perception of the current BI practice.

    1. Identify individuals to involve in the SWOT activity. Aim for a diverse pool of participants that are part of the BI practice in different capacities and roles. Solution architects, application managers, business analysts, and business functional unit leaders are a good starting point.
    2. Review the findings summary from Phase 1. You may opt to facilitate this activity with insights from the business context. Each group will be performing the SWOT individually.
    3. The group results will be collected and consolidated to pinpoint common ideas and opinions. Individual group results should be represented by a different color. The core program team will be reviewing the consolidated result as a group.
    4. Document the results of these SWOT activities in the appropriate section of the BI Strategy and Roadmap Template.

    SWOT

    Group 1 Provider Group E.g. The BI Team

    Group 2 Consumer Group E.g. Business End Users

    INPUT

    • IT and business stakeholder perception

    OUTPUT

    • Multi-faceted SWOT analyses
    • Potential BI improvement activities/objectives

    Materials

    • SWOT Analysis section of the BI Strategy and Roadmap Template

    Participants

    • Selected individuals in the enterprise (variable)

    Your organization’s BI maturity is determined by several factors and the degree of immersion into your enterprise

    BI Maturity Level

    A way to categorize your analytics maturity to understand where you are currently and what next steps would be best to increase your BI maturity.

    There are several factors used to determine BI maturity:

    Buy-in and Data Culture

    Determines if there is enterprise-wide buy-in for developing business intelligence and if a data-driven culture exists.

    Business–IT Alignment

    Examines if current BI and analytics operations are appropriately enabling the business objectives.

    Governance Structure

    Focuses on whether or not there is adequate governance in place to provide guidance and structure for BI activities.

    Organization Structure and Talent

    Pertains to how BI operations are distributed across the overall organizational structure and the capabilities of the individuals involved.

    Process

    Reviews analytics-related processes and policies and how they are created and enforced throughout the organization.

    Data

    Deals with analytical data in terms of the level of integration, data quality, and usability.

    Technology

    Explores the opportunities in building a fit-for-purpose analytics platform and consolidation opportunities.

    Evaluate Your Current BI Practice with the CMMI model

    To assess BI, Info-Tech uses the CMMI model for rating capabilities in each of the function areas on a scale of 1-5. (“0” and “0.5” values are used for non-existent or emerging capabilities.)

    The image shows an example of a CMMI model

    Use Info-Tech’s BI Maturity Model as a guide for identifying your current analytics competence

    Leverage a BI strategy to revamp your BI program to strive for a high analytics maturity level. In the future you should be doing more than just traditional BI. You will perform self-service BI, predictive analytics, and data science.

    Ad Hoc Developing Defined Managed Trend Setting
    Questions What’s wrong? What happened? What is happening? What happened, is happening, and will happen? What if? So what?
    Scope One business problem at a time One particular functional area Multiple functional areas Multiple functional areas in an integrated fashion Internal plus internet scale data
    Toolset Excel, Access, primitive query tools Reporting tools or BI BI BI, business analytics tools Plus predictive platforms, data science tools
    Delivery Model IT delivers ad hoc reports IT delivers BI reports IT delivers BI reports and some self-service BI Self-service BI and report creation at the business units Plus predictive models and data science projects
    Mindset Firefighting using data Manage using data Analyze using data; shared tooling Data is an asset, shared data Data driven
    BI Org. Structure Data analysts in IT BI BI program BI CoE Data Innovation CoE

    Leverage Info-Tech’s BI Practice Assessment Tool to define your BI current state

    BI Practice Assessment Tool

    1. Assess Current State
    • Eight BI practice areas to assess maturity.
    • Based on CMMI maturity scale.
  • Visualize Current State Results
    • Determine your BI maturity level.
    • Identify areas with outstanding maturity.
    • Uncover areas with low maturity.
    • Visualize the presence of misalignments.
  • Target State
    • Tackle target state from two views: business and IT.
    • Calculate gaps between target and current state.
  • Visualize Target State and Gaps
    • A heat map diagram to compare the target state and the current state.
    • Show both current and target maturity levels.
    • Detailed charts to show results for each area.
    • Detailed list of recommendations.

    Purposes:

    • Assess your BI maturity.
    • Visualize maturity assessment to quickly spot misalignments, gaps, and opportunities.
    • Provide right-sized recommendations.

    Info-Tech Insight

    Assessing current and target states is only the beginning. The real value comes from the interpretation and analysis of the results. Use visualizations of multiple viewpoints and discuss the results in groups to come up with the most effective ideas for your strategy and roadmap.

    Activity: Conduct a current state assessment of your BI practice maturity

    2.1.2

    2-3 hours

    Use the BI Practice Assessment Tool to establish a baseline for your current BI capabilities and maturity.

    1. Navigate to Tab 2. Current State Assessment in the BI Practice Assessment Tool and complete the current state assessment together or in small groups. If running a series of assessments, do not star or scratch every time. Use the previous group’s results to start the conversation with the users.
    2. Info-Tech suggests the following groups participate in the completion of the assessment to holistically assess BI and to uncover misalignment:

      Providers Consumers
      CIO & BI Management BI Work Groups (developers, analysts, modelers) Business Unit #1 Business Unit #2 Business Unit #3
    3. For each assessment question, answer the current level of maturity in terms of:
      1. Initial/Ad hoc – the starting point for use of a new or undocumented repeat process
      2. Developing – the process is documented such that it is repeatable
      3. Defined – the process is defined/confirmed as a standard business process
      4. Managed and Measurable – the process is quantitatively managed in accordance with agreed-upon metrics.
      5. Optimized – the process includes process optimization/improvement.

    INPUT

    • Observations of current maturity

    OUTPUT

    • Comprehensive current state assessment

    Materials

    • BI Practice Assessment Tool
    • Current State Assessment section of the BI Strategy and Roadmap Template

    Participants

    • Selected individuals as suggested by the assessment tool

    Info-Tech Insight

    Discuss the rationale for your answers as a group. Document the comments and observations as they may be helpful in formulating the final strategy and roadmap.

    Activity: Review and analyze the results of the current state assessment

    2.1.3

    2-3 hours

    1. Navigate to Tab 3. Current State Results in the BI Practice Assessment Tool and review the findings:

    The tool provides a brief synopsis of your current BI state. Review the details of your maturity level and see where this description fits your organization and where there may be some discrepancies. Add additional comments to your current state summary in the BI Strategy and Roadmap Document.

    In addition to reviewing the attributes of your maturity level, consider the following:

    1. What are the knowns – The knowns confirm your understanding on the current landscape.
  • What are the unknowns – The unknowns show you the blind spots. They are very important to give you an alternative view of the your current state. The group should discuss those blind spots and determine what to do with them.
  • Activity: Review and analyze the results of the current state assessment (cont.)

    2.1.3

    2-3 hours

    2. Tab 3 will also visualize a breakdown of your maturity by BI practice dimension. Use this graphic as a preliminary method to identify where your organization is excelling and where it may need improvement.

    Better Practices

    Consider: What have you done in the areas where you perform well?

    Candidates for Improvement

    Consider: What can you do to improve these areas? What are potential barriers to improvement?

    STEP 2.2

    Envision a Future State for Your Organization’s BI Practice

    Detail the capabilities of your next generation BI practice

    Step Objectives

    • Create guiding principles that will shape your organization’s ideal BI program.
    • Pinpoint where your organization needs to improve across several BI practice dimensions.
    • Develop approaches to remedy current impediments to BI evolution.
    • Step Activities

      2.2.1 Define guiding principles for the future state

      2.2.2 Define the target state of your BI practice

      2.2.3 Confirm requirements for BI Styles by management group

      2.2.4 Analyze gaps in your BI practice and generate improvement activities and objectives

      2.2.5 Define the critical success factors for future BI

      2.2.6 Identify potential risks for your future state and create a mitigation plan

    Outcomes

    • Defined landscape for future BI capabilities, including desired BI functionalities.
    • Identification of crucial gaps and improvement points to include in a BI roadmap.
    • Updated BI Styles Usage sheet.

    Research Support

    • Info-Tech’s Data Management Framework
    • Info-Tech’s BI Practice Assessment Tool
    • Info-Tech’s BI Strategy and Roadmap Template

    Proposed Participants in this Step

    Project Manager

    Data Architect(s) or Enterprise Architect

    Project Team

    Define guiding principles to drive your future state envisioning

    Envisioning a BI future state is essentially architecting the future for your BI program. It is very similar to enterprise architecture (EA). Guiding principles are widely used in enterprise architecture. This best practice should also be used in BI envisioning.

    Benefits of Guiding Principles in a BI Context

    • BI planning involves a number of business units. Defining high-level future state principles helps to establish a common ground for those different business units.
    • Ensure the next generation BI aligns with the corporate enterprise architecture and data architecture principles.
    • Provide high-level guidance without depicting detailed solutioning by leaving room for innovation.

    Sample Principles for BI Future State

    1. BI should be fit for purpose. BI is a business technology that helps business users.
    2. Business–IT collaboration should be encouraged to ensure deliverables are relevant to the business.
    3. Focus on continuous improvement on data quality.
    4. Explore opportunities to onboard and integrate new datasets to create a holistic view of your data.
    5. Organize and present data in an easy-to-consume, easy-to-digest fashion.
    6. BI should be accessible to everything, as soon as they have a business case.
    7. Do not train just on using the platform. Train on the underlying data and business model as well.
    8. Develop a training platform where trainees can play around with the data without worrying about messing it up.

    Activity: Define future state guiding principles for your BI practice

    2.2.1

    1-2 hours

    Guiding principles are broad statements that are fundamental to how your organization will go about its activities. Use this as an opportunity to gather relevant stakeholders and solidify how your BI practice should perform moving forward.

    1. To ensure holistic and comprehensive future state principles, invite participants from the business, the data management team, and the enterprise architecture team. If you do not have an enterprise architecture practice, invite people that are involved in building the enterprise architecture. Five to ten people is ideal.
    2. BI Future State

      Awareness Buy-in Business-IT Alignment Governance Org. Structure; People Process; Policies; Standards Data Technology
    3. Once the group has some high-level ideas on what the future state looks like, brainstorm guiding principles that will facilitate the achievement of the future state (see above).
    4. Document the future state principles in the Future State Principles for BI section of the BI Strategy and Roadmap Template

    INPUT

    • Existing enterprise architecture guiding principles
    • High-level concept of future state BI

    OUTPUT

    • Guiding principles for prospective BI practice

    Materials

    • Future State Principles section of the BI Strategy and Roadmap Template

    Participants

    • Business representatives
    • IT representatives
    • The EA group

    Leverage prototypes to facilitate a continuous dialogue with end users en route to creating the final deliverable

    At the end of the day, BI makes data and information available to the business communities. It has to be fit for purpose and relevant to the business. Prototypes are an effective way to ensure relevant deliverables are provided to the necessary users. Prototyping makes your future state a lot closer and a lot more business friendly.

    Simple Prototypes

    • Simple paper-based, whiteboard-based prototypes with same notes.
    • The most basic communication tool that facilitates the exchange of ideas.
    • Often used in Joint Application Development (JAD) sessions.
    • Improve business and IT collaboration.
    • Can be used to amend requirements documents.

    Discussion Possibilities

    • Initial ideation at the beginning
    • Align everyone on the same page
    • Explain complex ideas/layouts
    • Improve collaboration

    Elaborated Prototypes

    • Demonstrates the possibilities of BI in a risk-free environment.
    • Creates initial business value with your new BI platform.
    • Validates the benefits of BI to the organization.
    • Generates interest and support for BI from senior management.
    • Prepares BI team for the eventual enterprise-wide deployment.

    Discussion Possibilities

    • Validate and refine requirements
    • Fail fast, succeed fast
    • Acts as checkpoints
    • Proxy for the final working deliverable

    Leverage Info-Tech’s BI Practice Assessment Tool to define your BI target state and visualize capability gaps

    BI Practice Assessment Tool

    1. Assess Current State
    • Eight BI practice areas to assess maturity.
    • Based on CMMI maturity scale.
  • Visualize Current State Results
    • Determine your BI maturity level.
    • Identify areas with outstanding maturity.
    • Uncover areas with low maturity.
    • Visualize the presence of misalignments.
  • Target State
    • Tackle target state from two views: business and IT.
    • Calculate gaps between target and current state.
  • Visualize Target State and Gaps
    • A heat map diagram to compare the target state and the current state.
    • Show both current and target maturity levels.
    • Detailed charts to show results for each area.
    • Detailed list of recommendations.

    Purposes:

    • Assess your BI maturity.
    • Visualize maturity assessment to quickly spot misalignments, gaps, and opportunities.
    • Provide right-sized recommendations.

    Document essential findings in Info-Tech’s BI Strategy and Roadmap Template.

    Info-Tech Insight

    Assessing current and target states is only the beginning. The real value comes from the interpretation and analyses of the results. Use visualizations of multiple viewpoints and discuss the results in groups to come up with the most effective ideas for your strategy and roadmap.

    Activity: Define the target state for your BI practice

    2.2.2

    2 hours

    This exercise takes your team through establishing the future maturity of your BI practice across several dimensions.

    1. Envisioning of the future state will involve input from the business side as well as the IT department.
    2. The business and IT groups should get together separately and determine the target state maturity of each of the BI practice components:

    The image is a screenshot of Tab 4: Target State Evaluation of the BI Practice Assessment Tool

    INPUT

    • Desired future practice capabilities

    OUTPUT

    • Target state assessment

    Materials

    • Tab 4 of the BI Practice Assessment Tool

    Participants

    • Business representatives
    • IT representatives

    Activity: Define the target state for your BI practice (cont.)

    2.2.2

    2 hours

    2. The target state levels from the two groups will be averaged in the column “Target State Level.” The assessment tool will automatically calculate the gaps between future state value and the current state maturity determined in Step 2.1. Significant gaps in practice maturity will be highlighted in red; smaller or non-existent gaps will appear green.

    The image is a screenshot of Tab 4: Target State Evaluation of the BI Practice Assessment Tool with Gap highlighted.

    INPUT

    • Desired future practice capabilities

    OUTPUT

    • Target state assessment

    Materials

    • Tab 4 of the BI Practice Assessment Tool

    Participants

    • Business representatives
    • IT representatives

    Activity: Revisit the BI Style Analysis sheet to define new report and analytical requirements by C-Level

    2.2.3

    1-2 hours

    The information needs for each executive is unique to their requirements and management style. During this exercise you will determine the reporting and analytical needs for an executive in regards to content, presentation and cadence and then select the BI style that suite them best.

    1. To ensure a holistic and comprehensive need assessment, invite participants from the business and BI team. Discuss what data the executive currently use to base decisions on and explore how the different BI styles may assist. Sample reports or mock-ups can be used for this purpose.
    2. Document the type of report and required content using the BI Style Tool.
    3. The BI Style Tool will then guide the BI team in the type of reporting to develop and the level of Self-Service BI that is required. The tool can also be used for product selection.

    INPUT

    • Information requirements for C-Level Executives

    OUTPUT

    • BI style(s) that are appropriate for an executive’s needs

    Materials

    • BI Style Usage sheet from BI Strategy and Roadmap Template
    • Sample Reports

    Participants

    • Business representatives
    • BI representatives

    Visualization tools facilitate a more comprehensive understanding of gaps in your existing BI practice

    Having completed both current and target state assessments, the BI Practice Assessment Tool allows you to compare the results from multiple angles.

    At a higher level, you can look at your maturity level:

    At a detailed level, you can drill down to the dimensional level and item level.

    The image is a screenshots from Tab 4: Target State Evaluation of the BI Practice Assessment Tool

    At a detailed level, you can drill down to the dimensional level and item level.

    Activity: Analyze gaps in BI practice capabilities and generate improvement objectives/activities

    2.2.4

    2 hours

    This interpretation exercise helps you to make sense of the BI practice assessment results to provide valuable inputs for subsequent strategy and roadmap formulation.

    1. IT management and the BI team should be involved in this exercise. Business SMEs should be consulted frequently to obtain clarifications on what their ideal future state entails.
    2. Begin this exercise by reviewing the heat map and identifying:

    • Areas with very large gaps
    • Areas with small gaps

    Areas with large gaps

    Consider: Is the target state feasible and achievable? What are ways we can improve incrementally in this area? What is the priority for addressing this gap?

    Areas with small/no gaps

    Consider: Can we learn from those areas? Are we setting the bar too low for our capabilities?

    INPUT

    • Current and target state visualizations

    OUTPUT

    • Gap analysis (Tab 5)

    Materials

    • Tab 5 of the BI Practice Assessment Tool
    • Future State Assessment Results section of the BI Strategy and Roadmap Template

    Participants

    • Business representatives
    • IT representatives

    Activity: Analyze gaps in BI practice capabilities and generate improvement objectives/activities (cont.)

    2.2.4

    2 hours

    2. Discuss the differences in the current and target state maturity level descriptions. Questions to ask include:

    • What are the prerequisites before we can begin to build the future state?
    • Is the organization ready for that future state? If not, how do we set expectations and vision for the future state?
    • Do we have the necessary competencies, time, and support to achieve our BI vision?

    INPUT

    • Current and target state visualizations

    OUTPUT

    • Gap analysis (Tab 5)

    Materials

    • Tab 5 of the BI Practice Assessment Tool
    • Future State Assessment Results section of the BI Strategy and Roadmap Template

    Participants

    • Business representatives
    • IT representatives

    Activity: Analyze gaps in BI practice capabilities and generate improvement objectives/activities (cont.)

    2.2.4

    2 hours

    3. Have the same group members reconvene and discuss the recommendations at the BI practice dimension level on Tab 5. of the BI Practice Assessment Tool. These recommendations can be used as improvement actions or translated into objectives for building your BI capabilities.

    Example

    The heat map displayed the largest gap between target state and current state in the technology dimension. The detailed drill-down chart will further illustrate which aspect(s) of the technology dimension is/are showing the most room for improvement in order to better direct your objective and initiative creation.

    The image is of an example and recommendations.

    Considerations:

    • What dimension parameters have the largest gaps? And why?
    • Is there a different set of expectations for the future state?

    Define critical success factors to direct your future state

    Critical success factors (CSFs) are the essential factors or elements required for ensuring the success of your BI program. They are used to inform organizations with things they should focus on to be successful.

    Common Provider (IT Department) CSFs

    • BI governance structure and organization is created.
    • Training is provided for the BI users and the BI team.
    • BI standards are in place.
    • BI artifacts rely on quality data.
    • Data is organized and presented in a usable fashion.
    • A hybrid BI delivery model is established.
    • BI on BI; a measuring plan has to be in place.

    Common Consumer (Business) CSFs

    • Measurable business results have been improved.
    • Business targets met/exceeded.
    • Growth plans accelerated.
    • World-class training to empower BI users.
    • Continuous promotion of a data-driven culture.
    • IT–business partnership is established.
    • Collaborative requirements gathering processes.
    • Different BI use cases are supported.

    …a data culture is essential to the success of analytics. Being involved in a lot of Bay Area start-ups has shown me that those entrepreneurs that are born with the data DNA, adopt the data culture and BI naturally. Other companies should learn from these start-ups and grow the data culture to ensure BI adoption.

    – Cameran Hetrick, Senior Director of Data Science & Analytics, thredUP

    Activity: Define provider and consumer critical success factors for your future BI capabilities

    2.2.5

    2 hours

    Create critical success factors that are important to both BI providers and BI consumers.

    1. Divide relevant stakeholders into two groups:
    2. BI Provider (aka IT) BI Consumer (aka Business)
    3. Write two headings on the board: Objective and Critical Success Factors. Write down each of the objectives created in Phase 1.
    4. Divide the group into small teams and assign each team an objective. For each objective, ask the following question:
    5. What needs to be put in place to ensure that this objective is achieved?

      The answer to the question is your candidate CSF. Write CSFs on sticky notes and stick them by the relevant objective.

    6. Rationalize and consolidate CSFs. Evaluate the list of candidate CSFs to find the essential elements for achieving success.
    7. For each CSF, identify at least one key performance indicator that will serve as an appropriate metric for tracking achievement.

    As you evaluate candidate CSFs, you may uncover new objectives for achieving your future state BI.

    INPUT

    • Business objectives

    OUTPUT

    • A list of critical success factors mapped to business objectives

    Materials

    • Whiteboard and colored sticky notes
    • CSFs for the Future State section of the BI Strategy and Roadmap Template

    Participants

    • Business and IT representatives
    • CIO
    • Head of BI

    Round out your strategy for BI growth by evaluating risks and developing mitigation plans

    A risk matrix is a useful tool that allows you to track risks on two dimensions: probability and impact. Use this matrix to help organize and prioritize risk, as well as develop mitigation strategies and contingency plans appropriately.

    Example of a risk matrix using colour coding

    Info-Tech Insight

    Tackling risk mitigation is essentially purchasing insurance. You cannot insure everything – focus your investments on mitigating risks with a reasonably high impact and high probability.

    Be aware of some common barriers that arise in the process of implementing a BI strategy

    These are some of the most common BI risks based on Info-Tech’s research:

    Low Impact Medium Impact High Impact
    High Probability
    • Users revert back to Microsoft Excel to analyze data.
    • BI solution does not satisfy the business need.
    • BI tools become out of sync with new strategic direction.
    • Poor documentation creates confusion and reduces user adoption.
    • Fail to address data issues: quality, integration, definition.
    • Inadequate communication with stakeholders throughout the project.
    • Users find the BI tool interface too confusing.
    Medium Probability
    • Fail to define and monitor KPIs.
    • Poor training results in low user adoption.
    • Organization culture is resistant to the change.
    • Lack of support from the sponsors.
    • No governance over BI.
    • Poor training results in misinformed users.
    Low Probability
    • Business units independently invest in BI as silos.

    Activity: Identify potential risks for your future state and create a mitigation plan

    2.2.6

    1 hour

    As part of developing your improvement actions, use this activity to brainstorm some high-level plans for mitigating risks associated with those actions.

    Example:

    Users find the BI tool interface too confusing.

    1. Use the probability-impact matrix to identify risks systematically. Collectively vote on the probability and impact for each risk.
    2. Risk mitigation. Risk can be mitigated by three approaches:
    3. A. Reducing its probability

      B. Reducing its impact

      C. Reducing both

      Option A: Brainstorm ways to reduce risk probability

      E.g. The probability of the above risk may be reduced by user training. With training, the probability of confused end users will be reduced.

      Option B: Brainstorm ways to reduce risk impact

      E.g. The impact can be reduced by ensuring having two end users validate each other’s reports before making a major decision.

    4. Document your high-level mitigation strategies in the BI Strategy and Roadmap Template.

    INPUT

    • Step 2.2 outputs

    OUTPUT

    • High-level risk mitigation plans

    Materials

    • Risks and Mitigation section of the BI Strategy and Roadmap Template

    Participants

    • BI sponsor
    • CIO
    • Head of BI

    Translate your findings and ideas into actions that will be integrated into the BI strategy and roadmap

    As you progress through each phase, document findings and ideas as they arise. By phase end, hold a brainstorming session with the project team focused on documenting findings and ideas and substantiating them into improvement actions.

    Translated findings and ideas into actions that will be integrated into the BI strategy and roadmap.

    Ask yourself how BI or analytics can be used to address the gaps and explore opportunities uncovered in each phase. For example, in Phase 1, how do current BI capabilities impede the realization of the business vision?

    Document and prioritize Phase 2 findings, ideas, and action items

    2.2.7

    1-2 hours

    1. Reconvene as a group to review the findings, ideas, and actions harvested in Phase 2. Write the findings, ideas, and actions on sticky notes.
    2. Prioritize the sticky notes to yield those with high business value and low implementation effort. View some sample findings below:
    3. High Business Value, Low Effort High Business Value, High Effort
      Low Business Value, High Effort Low Business Value, High Effort

      Phase 2

      Sample Phase 2 Findings Found a gap between the business expectation and the existing BI content they are getting.
      Our current maturity level is “Level 2 – Operational.” Almost everyone thinks we should be at least “Level 3 – Tactical” with some level 4 elements.
      Found an error in a sales report. A quick fix is identified.
      The current BI program is not able to keep up with the demand.
    4. Select the top items and document the findings in the BI Strategy Roadmap Template. The findings will be used to build a Roadmap in Phase 3.

    INPUT

    • Phase 2 activities

    OUTPUT

    • Other Phase 2 Findings section of the BI Strategy and Roadmap Template

    Materials

    • Whiteboard
    • Sticky notes

    Participants

    • Project manger
    • Project team
    • Business stakeholders

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.1

    Determine your current BI maturity level

    The analyst will take your project team through Info-Tech’s BI Practice Assessment Tool, which collects perspectives from BI consumer and provider groups on multiple facets of your BI practice in order to establish a current maturity level.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts

    2.2.1

    Define guiding principles for your target BI state

    Using enterprise architecture principles as a starting point, our analyst will facilitate exercises to help your team establish high-level standards for your future BI practice.

    2.2.2-2.2.3

    Establish your desired BI patterns and matching functionalities

    In developing your BI practice, your project team will have to decide what BI-specific capabilities are most important to your organization. Our analyst will take your team through several BI patterns that Info-Tech has identified and discuss how to bridge the gap between these patterns, linking them to specific functional requirements in a BI solution.

    2.2.4-2.2.5

    Analyze the gaps in your BI practice capabilities

    Our analyst will guide your project team through a number of visualizations and explanations produced by our assessment tool in order to pinpoint the problem areas and generate improvement ideas.

    Phase 3

    Create a BI Roadmap for Continuous Improvement

    Build a Reporting and Analytics Strategy

    Create a BI roadmap for continuous improvement

    Phase 3 Overarching Insight

    The benefit of creating a comprehensive and actionable roadmap is twofold: not only does it keep BI providers accountable and focused on creating incremental improvement, but a roadmap helps to build momentum around the overall project, provides a continuous delivery of success stories, and garners grassroots-level support throughout the organization for BI as a key strategic imperative.

    Understand the Business Context to Rationalize Your BI Landscape Evaluate Your Current BI Practice Create a BI Roadmap for Continuous Improvement
    Establish the Business Context
    • Business Vision, Goals, Key Drivers
    • Business Case Presentation
    • High-Level ROI
    Assess Your Current BI Maturity
    • SWOT Analysis
    • BI Practice Assessment
    • Summary of Current State
    Construct a BI Initiative Roadmap
    • BI Improvement Initiatives
    • BI Strategy and Roadmap
    Access Existing BI Environment
    • BI Perception Survey Framework
    • Usage Analyses
    • BI Report Inventory
    Envision BI Future State
    • BI Patterns
    • BI Practice Assessment
    • List of Functions
    Plan for Continuous Improvement
    • Excel Governance Policy
    • BI Ambassador Network Draft
    Undergo Requirements Gathering
    • Requirements Gathering Principles
    • Overall BI Requirements

    Phase 3 overview

    Detailed Overview

    Step 1: Establish Your BI Initiative Roadmap

    Step 2: Identify Opportunities to Enhance Your BI Practice

    Step 3: Create Analytics Strategy

    Step 4: Define CSF and metrics to monitor success of BI and analytics

    Outcomes

    • Consolidate business intelligence improvement objectives into robust initiatives.
    • Prioritize improvement initiatives by cost, effort, and urgency.
    • Create a one-year, two-year, or three-year timeline for completion of your BI improvement initiatives.
    • Identify supplementary programs that will facilitate the smooth execution of road-mapped initiatives.

    Benefits

    • Clear characterization of comprehensive initiatives with a detailed timeline to keep team members accountable.

    Revisit project metrics to track phase progress

    Goals for Phase 3:

    • Put everything together. Findings and observations from Phase 1 and 2 are rationalized in this phase to develop data initiatives and create a strategy and roadmap for BI.
    • Continuous improvements. Your BI program is evolving and improving over time. The program should allow you to have faster, better, and more comprehensive information.

    Info-Tech’s Suggested Metrics for Tracking Phase 3 Goals

    Practice Improvement Metrics Data Collection and Calculation Expected Improvement
    Program Level Metrics Efficiency
    • Time to information
    • Self-service penetration
    • Derive from the ticket management system
    • Derive from the BI platform
    • 10% reduction in time to information
    • Achieve 10-15% self-service penetration
    • Effectiveness
    • BI Usage
    • Data quality
    • Derive from the BI platform
    • Data quality perception
    • Majority of the users use BI on a daily basis
    • 15% increase in data quality perception
    Comprehensiveness
    • # of integrated datasets
    • # of strategic decisions made
    • Derive from the data integration platform
    • Decision-making perception
    • Onboard 2-3 new data domains per year
    • 20% increase in decision-making perception

    Learn more about the CIO Business Vision program.

    Intangible Metrics:

    Tap into the results of Info-Tech’s CIO Business Vision diagnostic to monitor the changes in business-user satisfaction as you implement the initiatives in your BI improvement roadmap.

    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 helps you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Create a BI Roadmap for Continuous Improvement

    Proposed Time to Completion: 1-2 weeks

    Step 3.1: Construct a BI Improvement Initiative Roadmap

    Start with an analyst kick off call:

    • Review findings and insights from completion of activities pertaining to current and future state assessments
    • Discuss challenges around consolidating activities into initiatives

    Then complete these activities…

    • Collect improvement objectives/tasks from previous phases
    • Develop comprehensive improvement initiatives
    • Leverage value-effort matrix activities to prioritize these initiatives and place them along an improvement roadmap

    With these tools & templates:

    BI Initiatives and Roadmap Tool

    BI Strategy and Roadmap Template

    Step 3.2: Continuous Improvement Opportunities for BI

    Review findings with analyst:

    • Review completed BI improvement initiatives and roadmap
    • Discuss guidelines presenting a finalized improvement to the relevant committee or stakeholders
    • Discuss additional policies and programs that can serve to enhance your established BI improvement roadmap

    Then complete these activities…

    • Present BI improvement roadmap to relevant stakeholders
    • Develop Info-Tech’s recommended supplementary policies and programs for BI

    With these tools & templates:

    BI Strategy and Roadmap Executive Presentation Template

    Phase 3 Results & Insights:

    • Comprehensive initiatives with associated tasks/activities consolidated and prioritized in an improvement roadmap

    STEP 3.1

    Construct a BI Improvement Initiative Roadmap

    Build an improvement initiative roadmap to solidify your revamped BI strategy

    Step Objectives

    • Bring together activities and objectives for BI improvement to form initiatives
    • Develop a fit-for-purpose roadmap aligned with your BI strategy

    Step Activities

    3.1.1 Characterize individual improvement objectives and activities ideated in previous phases.

    3.1.2 Synthesize and detail overall BI improvement initiatives.

    3.1.3 Create a plan of action by placing initiatives on a roadmap.

    Outcomes

    • Detailed BI improvement initiatives, prioritized by value and effort
    • Defined roadmap for completion of tasks associated with each initiative and accountability

    Research Support

    • Info-Tech’s BI Initiatives and Roadmap Tool

    Proposed Participants in this Step

    Project Manager

    Project Team

    Create detailed BI strategy initiatives by bringing together the objectives listed in the previous phases

    When developing initiatives, all components of the initiative need to be considered, from its objectives and goals to its benefits, risks, costs, effort required, and relevant stakeholders.

    Use outputs from previous project steps as inputs to the initiative and roadmap building:

    The image shows the previous project steps as inputs to the initiative and roadmap building, with arrow pointing from one to the next.

    Determining the dependencies that exist between objectives will enable the creation of unique initiatives with associated to-do items or tasks.

    • Group objectives into similar buckets with dependencies
    • Select one overarching initiative
    • Adapt remaining objectives into tasks of the main initiative
    • Add any additional tasks

    Leverage Info-Tech’s BI Initiatives and Roadmap Tool to build a fit-for-purpose improvement roadmap

    BI Initiatives and Roadmap Tool

    Overview

    Use the BI Initiatives and Roadmap Tool to develop comprehensive improvement initiatives and add them to a BI strategy improvement roadmap.

    Recommended Participants

    • BI project team

    Tool Guideline

    Tab 1. Instructions Use this tab to get an understanding as to how the tool works.
    Tab 2. Inputs Use this tab to customize the inputs used in the tool.
    Tab 3. Activities Repository Use this tab to list and prioritize activities, to determine dependencies between them, and build comprehensive initiatives with them.
    Tab 4. Improvement Initiatives Use this tab to develop detailed improvement initiatives that will form the basis of the roadmap. Map these initiatives to activities from Tab 3.
    Tab 5. Improvement Roadmap Use this tab to create your BI strategy improvement roadmap, assigning timelines and accountability to initiatives and tasks, and to monitor your project performance over time.

    Activity: Consolidate BI activities into the tool and assign dependencies and priorities

    3.1.1

  • 2 hours
    1. Have one person from the BI project team populate Tab 3. Activities Repository with the BI strategy activities that were compiled in Phases 1 and 2. Use drop-downs to indicate in which phase the objective was originally ideated.
    2. With BI project team executives, discuss and assign dependencies between activities in the Dependencies columns. A dependency exists if:
    • An activity requires consideration of another activity.
    • An activity requires the completion of another activity.
    • Two activities should be part of the same initiative.
    • Two activities are very similar in nature.
  • Then discuss and assign priorities to each activity in the Priority column using input from previous Phases. For example, if an activity was previously indicated as critical to the business, if a similar activity appears multiple times, or if an activity has several dependencies, it should be higher priority.
  • Inputs

    • BI improvement activities created in Phases 1 and 2

    Output

    • Activities with dependencies and priorities

    Materials

    • BI Initiatives and Roadmap Tool

    Participants

    • BI project team

    Activity: Consolidate BI activities into the tool and assign dependencies and priorities (cont’d.)

    3.1.1

    2 hours

    Screenshot of Tab 3. BI Activities Repository, with samples improvement activities, dependencies, statuses, and priorities

    The image is of a screenshot of Tab 3. BI Activities Repository, with samples improvement activities, dependencies, statuses, and priorities.

    Revisit the outputs of your current state assessment and note which activities have already been completed in the “Status” column, to avoid duplication of your efforts.

    When classifying the status of items in your activity repository, distinguish between broader activities (potential initiatives) and granular activities (tasks).

    Activity: Customize project inputs and build out detailed improvement initiatives

    3.1.2

    1.5 hours

    1. Follow instructions on Tab 2. Inputs to customize inputs you would like to use for your project.
    2. Review the activities repository and select up to 12 overarching initiatives based on the activities with extreme or highest priority and your own considerations.
    • Rewording where necessary, transfer the names of your initiatives in the banners provided on Tab 4. Improvement Initiatives.
    • On Tab 3, indicate these activities as “Selected (initiatives)” in the Status column.
  • In Tab 4, develop detailed improvement initiatives by indicating the owner, taxonomy, start and end periods, cost and effort estimates, goal, benefit/value, and risks of each initiative.
  • Use drop-downs to list “Related activities,” which will become tasks under each initiative.
    • activities with dependency to the initiative
    • activities that lead to the same goal or benefit/value of the main initiative

    Screenshot of the Improvement Initiative template, to be used for developing comprehensive initiatives

    <p data-verified=The image is a screenshot of the Improvement Initiative template, to be used for developing comprehensive initiatives.">

    Inputs

    • Tab 3. Activities Repository

    Output

    • Unique and detailed improvement initiatives

    Materials

    • BI Initiatives and Roadmap Tool
    • BI Initiatives section of the BI Strategy and Roadmap Template

    Participants

    • BI project team

    Visual representations of your initiative landscape can aid in prioritizing tasks and executing the roadmap

    Building a comprehensive BI program will be a gradual process involving a variety of stakeholders. Different initiatives in your roadmap will either be completed sequentially or in parallel to one another, given dependencies and available resources. The improvement roadmap should capture and represent this information.

    To determine the order in which main initiatives should be completed, exercises such as a value–effort map can be very useful.

    Example: Value–Effort Map for a BI Project

    Initiatives that are high value–low effort are found in the upper left quadrant and are bolded; These may be your four primary initiatives. In addition, initiative five is valuable to the business and critical to the project’s success, so it too is a priority despite requiring high effort. Note that you need to consider dependencies to prioritize these key initiatives.

    Value–Effort Map for a BI Project
    1. Data profiling techniques training
    2. Improve usage metrics
    3. Communication plan for BI
    4. Staff competency evaluation
    5. Formalize practice capabilities
    6. Competency improvement plan program
    7. Metadata architecture improvements
    8. EDW capability improvements
    9. Formalize oversight for data manipulation

    This exercise is best performed using a white board and sticky notes, and axes can be customized to fit your needs (E.g. cost, risk, time, etc.).

    Activity: Build an overall BI strategy improvement roadmap for the entire project

    3.1.3

    45 minutes

    The BI Strategy Improvement Roadmap (Tab 5 of the BI Initiatives and Roadmap Tool) has been populated with your primary initiatives and related tasks. Read the instructions provided at the top of Tab 5.

    1. Use drop-downs to assign a Start Period and End Period to each initiative (already known) and each task (determined here). As you do so, the roadmap will automatically fill itself in. This is where the value–effort map or other prioritization exercises may help.
    2. Assign Task Owners reporting Managers.
    3. Update the Status and Notes columns on an ongoing basis. Hold meetings with task owners and managers about blocked or overdue items.
    • Updating status should also be an ongoing maintenance requirement for Tab 3 in order to stay up to date on which activities have been selected as initiatives or tasks, are completed, or are not yet acted upon.

    Screenshot of the BI Improvement Roadmap (Gantt chart) showing an example initiative with tasks, and assigned timeframes, owners, and status updates.

    INPUTS

    • Tab 3. Activities Repository
    • Tab 4. Improvement Initiatives

    OUTPUT

    • BI roadmap

    Materials

    • BI Initiatives and Roadmap Tool
    • Roadmap section of the BI Strategy and Roadmap Template

    Participants

    • BI project team

    Obtain approval for your BI strategy roadmap by organizing and presenting project findings

    Use a proprietary presentation template

    Recommended Participants

    • Project sponsor
    • Relevant IT & business executives
    • CIO
    • BI project team

    Materials & Requirements

    Develop your proprietary presentation template with:

    • Results from Phases 1 and 2 and Step 3.1
    • Information from:
      • Info-Tech’s Build a Reporting and Analytics Strategy
    • Screen shots of outputs from the:
      • BI Practice Assessment Tool
      • BI Initiatives and Roadmap Tool

    Next Steps

    Following the approval of your roadmap, begin to plan the implementation of your first initiatives.

    Overall Guidelines

    • Invite recommended participants to an approval meeting.
    • Present your project’s findings with the goal of gaining key stakeholder support for implementing the roadmap.
    1. Set the scene using BI vision & objectives.
    2. Present the results and roadmap next.
    3. Dig deeper into specific issues by touching on the important components of this blueprint to generate a succinct and cohesive presentation.
  • Make the necessary changes and updates stemming from discussion notes during this meeting.
  • Submit a formal summary of findings and roadmap to your governing body for review and approval (e.g. BI steering committee, BI CoE).
  • Info-Tech Insight

    At this point, it is likely that you already have the support to implement a data quality improvement roadmap. This meeting is about the specifics and the ROI.

    Maximize support by articulating the value of the data quality improvement strategy for the organization’s greater information management capabilities. Emphasize the business requirements and objectives that will be enhanced as a result of tackling the recommended initiatives, and note any additional ramifications of not doing so.

    Leverage Info-Tech’s presentation template to present your BI strategy to the executives

    Use the BI Strategy and Roadmap Executive Presentation Template to present your most important findings and brilliant ideas to the business executives and ensure your BI program is endorsed. Business executives can also learn about how the BI strategy empowers them and how they can help in the BI journey.

    Important Messages to Convey

    • Executive summary of the presentation
    • Current challenges faced by the business
    • BI benefits and associated opportunities
    • SWOT analyses of the current BI
    • BI end-user satisfaction survey
    • BI vision, mission, and goals
    • BI initiatives that take you to the future state
    • (Updated) Analytical Strategy
    • Roadmap that depicts the timeline

    STEP 3.2

    Continuous Improvement Opportunities for BI

    Create supplementary policies and programs to augment your BI strategy

    Step Objectives

    • Develop a plan for encouraging users to continue to use Excel, but in a way that does not compromise overall BI effectiveness.
    • Take steps to establish a positive organizational culture around BI.

    Step Activities

    3.2.1 Construct a concrete policy to integrate Excel use with your new BI strategy.

    3.2.2 Map out the foundation for a BI Ambassador network.

    Outcomes

    • Business user understanding of where Excel manipulation should and should not occur
    • Foundation for recognizing exceptional BI users and encouraging development of enterprise-wide business intelligence

    Research Support

    • Info-Tech’s BI Initiatives and Roadmap Tool
    • Info-Tech’s BI Strategy and Roadmap Template

    Proposed Participants in this Step

    Project Manager

    Project Team

    Additional Business Users

    Establish Excel governance to better serve Excel users while making sure they comply with policies

    Excel is the number one BI tool

    • BI applications are developed to support information needs.
    • The reality is that you will never migrate all Excel users to BI. Some Excel users will continue to use it. The key is to support them while imposing governance.
    • The goal is to direct them to use the data in BI or in the data warehouse instead of extracting their own data from various source systems.

    The Tactic: Centralize data extraction and customize delivery

    • Excel users formerly extracted data directly from the production system, cleaned up the data, manipulated the data by including their own business logic, and presented the data in graphs and pivot tables.
    • With BI, the Excel users can still use Excel to look at the information. The only difference is that BI or data warehouse will be the data source of their Excel workbook.

    Top-Down Approach

    • An Excel policy should be created at the enterprise level to outline which Excel use cases are allowed, and which are not.
    • Excel use cases that involve extracting data from source systems and transforming that data using undisclosed business rules should be banned.
    • Excel should be a tool for manipulating, filtering, and presenting data, not a tool for extracting data and running business rules.

    Excel

    Bottom-Up Approach

    • Show empathy to your users. They just want information to get their work done.
    • A sub-optimal information landscape is the root cause, and they are the victims. Excel spreadmarts are the by-products.
    • Make the Excel users aware of the risks associated with Excel, train them in BI, and provide them with better information in the BI platform.

    Activity: Create an Excel governance policy

    3.2.1

    4 hours

    Construct a policy around Excel use to ensure that Excel documents are created and shared in a manner that does not compromise the integrity of your overall BI program.

    1. Review the information artifact list harvested from Step 2.1 and identify all existing Excel-related use cases.
    2. Categorize the Excel use cases into “allowed,” “not allowed,” and “not sure.” For each category define:
    3. Category To Do: Policy Context
      Allowed Discuss what makes these use cases ideal for BI. Document use cases, scenarios, examples, and reasons that allow Excel as an information artifact.
      Not Allowed Discuss why these cases should be avoided. Document forbidden use cases, scenarios, examples, and reasons that use Excel to generate information artifacts.
      Not Sure Discuss the confusions; clarify the gray area. Document clarifications and advise how end users can get help in those “gray area” cases.
    4. Document the findings in the BI Strategy and Roadmap Template in the Manage and Sustain BI Strategy section, or a proprietary template. You may also need to create a separate Excel policy to communicate the Dos and Don’ts.

    Inputs

    • Step 2.1 – A list of information artifacts

    Output

    • Excel-for-BI Use Policy

    Materials

    • BI Strategy Roadmap and Template, or proprietary document

    Participants

    • Business executives
    • CIO
    • Head of BI
    • BI team

    Build a network of ambassadors to promote BI and report to IT with end-user feedback and requests

    The Building of an Insider Network: The BI Ambassador Network

    BI ambassadors are influential individuals in the organization that may be proficient at using BI tools but are passionate about analytics. The network of ambassadors will be IT’s eyes, ears, and even mouth on the frontline with users. Ambassadors will promote BI, communicate any messages IT may have, and keep tabs on user satisfaction.

    Ideal candidate:

    • A good relationship with IT.
    • A large breadth of experience with BI, not just one dashboard.
    • Approachable and well-respected amongst peers.
    • Has a passion for driving organizational change using BI and continually looking for opportunities to innovate.

    Push

    • Key BI Messages
    • Best Practices
    • Training Materials

    Pull

    • Feedback
    • Complaints
    • Thoughts and New Ideas

    Motivate BI ambassadors with perks

    You need to motivate ambassadors to take on this additional responsibility. Make sure the BI ambassadors are recognized in their business units when they go above and beyond in promoting BI.

    Reward Approach Reward Type Description
    Privileges High Priority Requests Given their high usage and high visibility, ambassadors’ BI information requests should be given a higher priority.
    First Look at New BI Development Share the latest BI updates with ambassadors before introducing them to the organization. Ambassadors may even be excited to test out new functionality.
    Recognition Featured in Communications BI ambassadors’ use cases and testimonials can be featured in BI communications. Be sure to create a formal announcement introducing the ambassadors to the organization.
    BI Ambassador Certificate A certificate is a formal way to recognize their efforts. They can also publicly display the certificate in their workspace.
    Rewards Appointed by Senior Executives Have the initial request to be a BI ambassador come from a senior executive to flatter the ambassador and position the role as a reward or an opportunity for success.
    BI Ambassador Awards Award an outstanding BI ambassador for the year. The award should be given by the CEO in a major corporate event.

    Activity: Plan for a BI ambassador network

    3.2.2

    2 hours

    Identify individuals within your organization to act as ambassadors for BI and a bridge between IT and business users.

    1. Obtain a copy of your latest organizational chart. Review your most up-to-date organizational chart and identify key BI consumers across a variety of functional units. In selecting potential BI ambassadors, reflect on the following questions:
    • Does this individual have a good relationship with IT?
    • What is the depth of their experience with developing/consuming business intelligence?
    • Is this individual respected and influential amongst their respective business units?
    • Has this individual shown a passion for innovating within their role?
  • Create a mandate and collateral detailing the roles and responsibilities for the ambassador role, e.g.:
    • Promote BI to members of your group
    • Represent the “voice of the data consumers”
  • Approach the ambassador candidates and explain the responsibilities and perks of the role, with the goal of enlisting about 10-15 ambassadors
  • Inputs

    • An updated organizational chart
    • A list of BI users

    Output

    • Draft framework for BI ambassador network

    Materials

    • BI Strategy and Roadmap Template or proprietary document

    Participants

    • Business executives
    • CIO
    • Head of BI
    • BI team

    Keeping tabs on metadata is essential to creating a data democracy with BI

    A next generation BI not only provides a platform that mirrors business requirements, but also creates a flexible environment that empowers business users to explore data assets without having to go back and forth with IT to complete queries.

    Business users are generally not interested in the underlying architecture or the exact data lineages; they want access to the data that matters most for decision-making purposes.

    Metadata is data about data

    It comes in the form of structural metadata (information about the spaces that contain data) and descriptive metadata (information pertaining to the data elements themselves), in order to answer questions such as:

    • What is the intended purpose of this data?
    • How up-to-date is this information?
    • Who owns this data?
    • Where is this data coming from?
    • How have these data elements been transformed?

    By creating effective metadata, business users are able to make connections between and bring together data sources from multiple areas, creating the opportunity for holistic insight generation.

    Like BI, metadata lies in the Information Dimension layer of our data management framework.

    The metadata needs to be understood before building anything. You need to identify fundamentals of the data, who owns not only that data, but also its metadata. You need to understand where the consolidation is happening and who owns it. Metadata is the core driver and cost saver for building warehouses and requirements gathering.

    – Albert Hui, Principal, Data Economist

    Deliver timely, high quality, and affordable information to enable fast and effective business decisions

    In order to maximize your ROI on business intelligence, it needs to be treated less like a one-time endeavor and more like a practice to be continually improved upon.

    Though the BI strategy provides the overall direction, the BI operating model – which encompasses organization structure, processes, people, and application functionality – is the primary determinant of efficacy with respect to information delivery. The alterations made to the operating model occur in the short term to improve the final deliverables for business users.

    An optimal BI operating model satisfies three core requirements:

    Timeliness

    Effectiveness

  • Affordability
  • Bring tangible benefits of your revamped BI strategy to business users by critically assessing how your organization delivers business intelligence and identifying opportunities for increased operational efficiency.

    Assess and Optimize BI Operations

    Focus on delivering timely, quality, and affordable information to enable fast and effective business decisions

    Implement a fit-for-purpose BI and analytics solution to augment your next generation BI strategy

    Organizations new to business intelligence or with immature BI capabilities are under the impression that simply getting the latest-and-greatest tool will provide the insights business users are looking for.

    BI technology can only be as effective as the processes surrounding it and the people leveraging it. Organizations need to take the time to select and implement a BI suite that aligns with business goals and fosters end-user adoption.

    As an increasing number of companies turn to business intelligence technology, vendors are responding by providing BI and analytics platforms with more and more features.

    Our vendor landscape will simplify the process of selecting a BI and analytics solution by:

    Differentiating between the platforms and features vendors are offering.

    Detailing a robust framework for requirements gathering to pinpoint your organization’s needs.

    Developing a high-level plan for implementation.

    Select and Implement a Business Intelligence and Analytics Solution

    Find the diamond in your data-rough using the right BI & Analytics solution

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-tech analysts with your team:

    3.1.1-3.1.3

    Construct a BI improvement initiative roadmap

    During these activities, your team will consolidate the list of BI initiatives generated from the assessments conducted in previous phases, assign timelines to each action, prioritize them using a value–effort matrix, and finally produce a roadmap for implementing your organization’s BI improvement strategy.

    3.2

    Identify continuous improvement opportunities for BI

    Our analyst team will work with your organization to ideate supplementary programs to support your BI strategy. Defining Excel use cases that are permitted and prohibited in conjunction with your BI strategy, as well as structuring an internal BI ambassador network, are a few extra initiatives that can enhance your BI improvement plans.

    Insight breakdown

    Your BI platform is not a one-and-done initiative.

    A BI program is not a static project that is created once and remains unchanged. Your strategy must be treated as a living platform to be revisited and revitalized in order to provide effective enablement of business decision making. Develop a BI strategy that propels your organization by building it on business goals and objectives, as well as comprehensive assessments that quantitatively and qualitatively evaluate your current BI capabilities.

    Put the “B” back in “BI.”

    The closer you align your new BI platform to real business interests, the stronger will be the buy-in, realized value, and groundswell of enthusiastic adoption. Ultimately, getting this phase right sets the stage to best realize a strong ROI for your investment in the people, processes, and technology that will be your next generation BI platform.

    Go beyond the platform.

    BI success is not based solely on the technology it runs on; technology cannot mask gaps in capabilities. You must be capable in your environment – data management, data quality, and related data practices must be strong, otherwise the usefulness of the intelligence suffers. The best BI solution does not only provide a technology platform, but also addresses the elements that surround the platform. Look beyond tools and holistically assess the maturity of your BI practice with input from both the BI consumer and provider perspectives.

    Appendix

    Detailed list of BI Types

    Style Description Strategic Importance (1-5) Popularity (1-5) Effort (1-5)
    Standards Preformatted reports Standard, preformatted information for backward-looking analysis. 5 5 1
    User-defined analyses Pre-staged information where “pick lists” enable business users to filter (select) the information they wish to analyze, such as sales for a selected region during a selected previous timeframe. 5 4 2
    Ad-hoc analyses Power users write their own queries to extract self-selected pre-staged information and then use the information to perform a user-created analysis. 5 4 3
    Scorecards and dashboards Predefined business performance metrics about performance variables that are important to the organization, presented in a tabular or graphical format that enables business users to see at a glance how the organization is performing. 4 4 3
    Multidimensional analysis (OLAP) Multidimensional analysis (also known as On-line analytical processing): Flexible tool-based user-defined analysis of business performance and the underlying drivers or root causes of that performance. 4 3 3
    Alerts Predefined analyses of key business performance variables, comparison to a performance standard or range, and communication to designated businesspeople when performance is outside the predefined performance standard or range. 4 3 3
    Advanced Analytics Application of long-established statistical and/or operations research methods to historical business information to look backward and characterize a relevant aspect of business performance, typically by using descriptive statistics 5 3 4
    Predictive Analytics Application of long-established statistical and/or operations research methods to historical business information to predict, model, or simulate future business and/or economic performance and potentially prescribe a favored course of action for the future 5 3 5

    Our BI strategy approach follows Info-Tech’s popular IT Strategy Framework

    A comprehensive BI strategy needs to be developed under the umbrella of an overall IT strategy. Specifically, creating a BI strategy is contributing to helping IT mature from a firefighter to a strategic partner that has close ties with business units.

    1. Determine mandate and scope 2. Assess drivers and constraints 3. Evaluate current state of IT 4. Develop a target state vision 5. Analyze gaps and define initiatives 6. Build a roadmap 8. Revamp 7. Execute
    Mandate Business drivers Holistic assessments Vision and mission Initiatives Business-driven priorities
    Scope External drivers Focus-area specific assessments Guiding principles Risks
    Project charter Opportunities to innovate Target state vision Execution schedule
    Implications Objectives and measures

    This BI strategy blueprint is rooted in our road-tested and proven IT strategy framework as a systematic method of tackling strategy development.

    Research contributors

    Internal Contributors

    • Andy Woyzbun, Executive Advisor
    • Natalia Nygren Modjeska, Director, Data & Analytics
    • Crystal Singh, Director, Data & Analytic
    • Andrea Malick, Director, Data & Analytics
    • Raj Parab, Director, Data & Analytics
    • Igor Ikonnikov, Director, Data & Analytics
    • Andy Neill, Practice Lead, Data & Analytics
    • Rob Anderson, Manager Sales Operations
    • Shari Lava, Associate Vice-President, Vendor Advisory Practice

    External Contributors

    • Albert Hui, Principal, DataEconomist
    • Cameran Hetrick, Senior Director of Data Science & Analytics, thredUP
    • David Farrar, Director – Marketing Planning & Operations, Ricoh Canada Inc
    • Emilie Harrington, Manager of Analytics Operations Development, Lowe’s
    • Sharon Blanton, VP and CIO, The College of New Jersey
    • Raul Vomisescu, Independent Consultant

    Research contributors and experts

    Albert Hui

    Consultant, Data Economist

    Albert Hui is a cofounder of Data Economist, a data-consulting firm based in Toronto, Canada. His current assignment is to redesign Scotiabank’s Asset Liability Management for its Basel III liquidity compliance using Big Data technology. Passionate about technology and problem solving, Albert is an entrepreneur and result-oriented IT technology leader with 18 years of experience in consulting and software industry. His area of focus is on data management, specializing in Big Data, business intelligence, and data warehousing. Beside his day job, he also contributes to the IT community by writing blogs and whitepapers, book editing, and speaking at technology conferences. His recent research and speaking engagement is on machine learning on Big Data.

    Albert holds an MBA from the University of Toronto and a master’s degree in Industrial Engineering. He has twin boys and enjoys camping and cycling with them in his spare time.

    Albert Hui Consultant, Data Economist

    Cameran Hetrick

    Senior Director of Analytics and Data Science, thredUP

    Cameran is the Senior Director of Analytics and Data Science at thredUP, a startup inspiring a new generation to think second hand first. There she helps drives top line growth through advanced and predictive analytics. Previously, she served as the Director of Data Science at VMware where she built and led the data team for End User Computing. Before moving to the tech industry, she spent five years at The Disneyland Resort setting ticket and hotel prices and building models to forecast attendance. Cameran holds an undergraduate degree in Economics/Mathematics from UC Santa Barbara and graduated with honors from UC Irvine's MBA program.

    Cameran Hetrick Senior Director of Analytics and Data Science, thredUP

    Bibliography

    Bange, Carsten and Wayne Eckerson. “BI and Data Management in the Cloud: Issues and Trends.” BARC and Eckerson Group, January 2017. Web.

    Business Intelligence: The Strategy Imperative for CIOs. Tech. Information Builders. 2007. Web. 1 Dec. 2015.

    COBIT 5: Enabling Information. Rolling Meadows, IL: ISACA, 2013. Web.

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    “DAMA Guide to the Data Management Body of Knowledge (DAMA-DMBOK Guide).” First Edition. DAMA International. 2009. Digital. April 2014.

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    Improve Requirements Gathering

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    • Parent Category Name: Requirements & Design
    • Parent Category Link: /requirements-and-design
    • Poor requirements are the number one reason that projects fail. Requirements gathering and management has been an ongoing issue for IT professionals for decades.
    • If proper due diligence for requirements gathering is not conducted, then the applications that IT is deploying won’t meet business objectives and will fail to deliver adequate business value.
    • Inaccurate requirements definition can lead to significant amounts of project rework and hurt the organization’s financial performance. It will also create significant damage to the working relationship between IT and the business.
    • Often, business analysts haven’t developed the right competencies to successfully execute requirements gathering processes, even when they are in place.

    Our Advice

    Critical Insight

    • To avoid makeshift solutions, an organization needs to gather requirements with the desired future state in mind.
    • Creating a unified set of standard operating procedures is essential for effectively gathering requirements, but many organizations fail to do it.
    • Centralizing governance of requirements processes with a requirements gathering steering committee or requirements gathering center of excellence can bring greater uniformity and cohesion when gathering requirements across projects.
    • Business analysts must be targeted for competency development to ensure that the processes developed above are being successfully executed and the right questions are being asked of project sponsors and stakeholders.

    Impact and Result

    • Enhanced requirements analysis will lead to tangible reductions in cycle time and reduced project overhead.
    • An improvement in requirements analysis will strengthen the relationship between business and IT, as more and more applications satisfy stakeholder needs.
    • More importantly, the applications delivered by IT will meet all of the must-have and at least some of the nice-to-have requirements, allowing end users to successfully execute their day-to-day responsibilities.

    Improve Requirements Gathering Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should invest in optimizing your requirements gathering processes.

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

    1. Build the target state for the requirements gathering process

    Capture a clear understanding of the target needs for the requirements process.

    • Build a Strong Approach to Business Requirements Gathering – Phase 1: Build the Target State for the Requirements Gathering Process
    • Requirements Gathering SOP and BA Playbook
    • Requirements Gathering Maturity Assessment
    • Project Level Selection Tool
    • Business Requirements Analyst
    • Requirements Gathering Communication Tracking Template

    2. Define the elicitation process

    Develop best practices for conducting and structuring elicitation of business requirements.

    • Build a Strong Approach to Business Requirements Gathering – Phase 2: Define the Elicitation Process
    • Business Requirements Document Template
    • Scrum Documentation Template

    3. Analyze and validate requirements

    Standardize frameworks for analysis and validation of business requirements.

    • Build a Strong Approach to Business Requirements Gathering – Phase 3: Analyze and Validate Requirements
    • Requirements Gathering Documentation Tool
    • Requirements Gathering Testing Checklist

    4. Create a requirements governance action plan

    Formalize change control and governance processes for requirements gathering.

    • Build a Strong Approach to Business Requirements Gathering – Phase 4: Create a Requirements Governance Action Plan
    • Requirements Traceability Matrix
    [infographic]

    Workshop: Improve Requirements Gathering

    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 Current State and Target State for Requirements Gathering

    The Purpose

    Create a clear understanding of the target needs for the requirements gathering process.

    Key Benefits Achieved

    A comprehensive review of the current state for requirements gathering across people, processes, and technology.

    Identification of major challenges (and opportunity areas) that should be improved via the requirements gathering optimization project.

    Activities

    1.1 Understand current state and document existing requirement process steps.

    1.2 Identify stakeholder, process, outcome, and training challenges.

    1.3 Conduct target state analysis.

    1.4 Establish requirements gathering metrics.

    1.5 Identify project levels 1/2/3/4.

    1.6 Match control points to project levels 1/2/3/4.

    1.7 Conduct project scoping and identify stakeholders.

    Outputs

    Requirements Gathering Maturity Assessment

    Project Level Selection Tool

    Requirements Gathering Documentation Tool

    2 Define the Elicitation Process

    The Purpose

    Create best practices for conducting and structuring elicitation of business requirements.

    Key Benefits Achieved

    A repeatable framework for initial elicitation of requirements.

    Prescribed, project-specific elicitation techniques.

    Activities

    2.1 Understand elicitation techniques and which ones to use.

    2.2 Document and confirm elicitation techniques.

    2.3 Create a requirements gathering elicitation plan for your project.

    2.4 Build the operating model for your project.

    2.5 Define SIPOC-MC for your selected project.

    2.6 Practice using interviews with business stakeholders to build use case models.

    2.7 Practice using table-top testing with business stakeholders to build use case models.

    Outputs

    Project Elicitation Schedule

    Project Operating Model

    Project SIPOC-MC Sub-Processes

    Project Use Cases

    3 Analyze and Validate Requirements

    The Purpose

    Build a standardized framework for analysis and validation of business requirements.

    Key Benefits Achieved

    Policies for requirements categorization, prioritization, and validation.

    Improved project value as a result of better prioritization using the MOSCOW model.

    Activities

    3.1 Categorize gathered requirements for use.

    3.2 Consolidate similar requirements and eliminate redundancies.

    3.3 Practice prioritizing requirements.

    3.4 Build the business process model for the project.

    3.5 Rightsize the requirements documentation template.

    3.6 Present the business requirements document to business stakeholders.

    3.7 Identify testing opportunities.

    Outputs

    Requirements Gathering Documentation Tool

    Requirements Gathering Testing Checklist

    4 Establish Change Control Processes

    The Purpose

    Create formalized change control processes for requirements gathering.

    Key Benefits Achieved

    Reduced interjections and rework – strengthened formal evaluation and control of change requests to project requirements.

    Activities

    4.1 Review existing CR process.

    4.2 Review change control process best practices and optimization opportunities.

    4.3 Build guidelines for escalating changes.

    4.4 Confirm your requirements gathering process for project levels 1/2/3/4.

    Outputs

    Requirements Traceability Matrix

    Requirements Gathering Communication Tracking Template

    5 Establish Ongoing Governance for Requirements Gathering

    The Purpose

    Establish governance structures and ongoing oversight for business requirements gathering.

    Key Benefits Achieved

    Consistent governance and oversight of the requirements gathering process, resulting in fewer “wild west” scenarios.

    Better repeatability for the new requirements gathering process, resulting in less wasted time and effort at the outset of projects.

    Activities

    5.1 Define RACI for the requirements gathering process.

    5.2 Define the requirements gathering steering committee purpose.

    5.3 Define RACI for requirements gathering steering committee.

    5.4 Define the agenda and cadence for the requirements gathering steering committee.

    5.5 Identify and analyze stakeholders for communication plan.

    5.6 Create communication management plan.

    5.7 Build the action plan.

    Outputs

    Requirements Gathering Action Plan

    Further reading

    Improve Requirements Gathering

    Back to basics: great products are built on great requirements.

    Analyst Perspective

    A strong process for business requirements gathering is essential for application project success. However, most organizations do not take a strategic approach to optimizing how they conduct business analysis and requirements definition.

    "Robust business requirements are the basis of a successful project. Without requirements that correctly articulate the underlying needs of your business stakeholders, projects will fail to deliver value and involve significant rework. In fact, an Info-Tech study found that of projects that fail over two-thirds fail due to poorly defined business requirements.

    Despite the importance of good business requirements to project success, many organizations struggle to define a consistent and repeatable process for requirements gathering. This results in wasted time and effort from both IT and the business, and generates requirements that are incomplete and of dubious value. Additionally, many business analysts lack the competencies and analytical techniques needed to properly execute the requirements gathering process.

    This research will help you get requirements gathering right by developing a set of standard operating procedures across requirements elicitation, analysis, and validation. It will also help you identify and fine-tune the business analyst competencies necessary to make requirements gathering a success."

    – Ben Dickie, Director, Enterprise Applications, Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

    • The IT applications director who has accountability for ensuring that requirements gathering procedures are both effective and efficient.
    • The designated business analyst or requirements gathering professional who needs a concrete understanding of how to execute upon requirements gathering SOPs.

    This Research Will Help You:

    • Diagnose your current state and identify (and prioritize) gaps that exist between your target requirements gathering needs and your current capabilities and processes.
    • Build a requirements gathering SOP that prescribes a framework for requirements governance and technology usage, as well as techniques for elicitation, analysis, and validation.

    This Research Will Also Assist:

    • The business partner/stakeholder who is interested in ways to work with IT to improve upon existing procedures for requirements gathering.
    • Systems analysts and developers who need to understand how business requirements are effectively gathered upstream.

    This Research Will Help Them:

    • Understand the significance and importance of business requirements gathering on overall project success and value alignment.
    • Create rules of engagement for assisting IT with the collection of requirements from the right stakeholders in a timely fashion.

    Executive summary

    Situation

    • Strong business requirements are essential to project success – inadequate requirements are the number one reason that projects fail.
    • Organizations need a consistent, repeatable, and prescriptive set of standard operating procedures (SOPs) that dictate how business requirements gathering should be conducted.

    Complication

    • If proper due diligence for requirements gathering is not conducted, then the applications that IT is deploying won’t meet business objectives, and they will fail to deliver adequate business value.
    • Inaccurate requirements definition can lead to significant amounts of project rework and hurt the organization’s financial performance. It will also damage the relationship between IT and the business.

    Resolution

    • To avoid delivering makeshift solutions (paving the cow path), organizations need to gather requirements with the desired future state in mind. Organizations need to keep an open mind when gathering requirements.
    • Creating a unified set of SOPs is essential for effectively gathering requirements; these procedures should cover not just elicitation, analysis, and validation, but also include process governance and documentation.
    • BAs who conduct requirements gathering must demonstrate proven competencies for stakeholder management, analytical techniques, and the ability to speak the language of both the business and IT.
    • An improvement in requirements analysis will strengthen the relationship between business and IT, as more and more applications satisfy stakeholder needs. More importantly, the applications delivered by IT will meet all of the must-have and at least some of the nice-to-have requirements, allowing end users to execute their day-to-day responsibilities.

    Info-Tech Insight

    1. Requirements gathering SOPs should be prescriptive based on project complexity. Complex projects will require more analytical rigor. Simpler projects can be served by more straightforward techniques like user story development.
    2. Business analysts (BA) can make or break the execution of the requirements gathering process. A strong process still needs to be executed well by BAs with the right blend of skills and knowledge.

    Understand what constitutes a strong business requirement

    A business 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 at in requirements:

    Verifiable
    Stated in a way that can be easily tested

    Unambiguous
    Free of subjective terms and can only be interpreted in one way

    Complete
    Contains all relevant information

    Consistent
    Does not conflict with other requirements

    Achievable
    Possible to accomplish with budgetary and technological constraints

    Traceable
    Trackable from inception through to testing

    Unitary
    Addresses only one thing and cannot be decomposed into multiple requirements

    Agnostic
    Doesn’t pre-suppose a specific vendor or product

    Not all requirements will meet all of the attributes.

    In some situations, an insight will reveal new requirements. This requirement will not follow all of the attributes listed above and that’s okay. If a new insight changes the direction of the project, re-evaluate the scope of the project.

    Attributes are context specific.

    Depending on the scope of the project, certain attributes will carry more weight than others. Weigh the value of each attribute before elicitation and adjust as required. For example, verifiable will be a less-valued attribute when developing a client-facing website with no established measuring method/software.

    Build a firm foundation: requirements gathering is an essential step in any project, but many organizations struggle

    Proper requirements gathering is critical for delivering business value from IT projects, but it remains an elusive and perplexing task for most organizations. You need to have a strategy for end-to-end requirements gathering, or your projects will consistently fail to meet business expectations.

    50% of project rework is attributable to problems with requirements. (Info-Tech Research Group)

    45% of delivered features are utilized by end users. (The Standish Group)

    78% of IT professionals believe the business is “usually” or “always” out of sync with project requirements. (Blueprint Software Systems)

    45% of IT professionals admit to being “fuzzy” about the details of a project’s business objectives. (Blueprint Software Systems)

    Requirements gathering is truly an organization-spanning issue, and it falls directly on the IT directors who oversee projects to put prudent SOPs in place for managing the requirements gathering process. Despite its importance, the majority of organizations have challenges with requirements gathering.

    What happens when requirements are no longer effective?

    • Poor requirements can have a very visible and negative impact on deployed apps.
    • IT receives the blame for any project shortcomings or failures.
    • IT loses its credibility and ability to champion future projects.
    • Late projects use IT resources longer than planned.

    Requirements gathering is a core component of the overall project lifecycle that must be given its due diligence

    PMBOK’s Five Phase Project Lifecycle

    Initiate – Plan: Requirements Gathering Lives Here – Execute – Control – Close

    Inaccurate requirements is the 2nd most common cause of project failure (Project Management Institute ‒ Smartsheet).

    Requirements gathering is a critical stage of project planning.

    Depending on whether you take an Agile or Waterfall project management approach, it can be extended into the initiate and execute phases of the project lifecycle.

    Strong stakeholder satisfaction with requirements gathering results in higher satisfaction in other areas

    Organizations that had high satisfaction with requirements gathering were more likely to be highly satisfied with the other areas of IT. In fact, 72% of organizations that had high satisfaction with requirements gathering were also highly satisfied with the availability of IT capacity to complete projects.

    A bar graph measuring % High Satisfaction when projects have High Requirements Gathering vs. Not High Requirements Gathering. The graph shows a substantially higher percentage of high satisfaction on projects with High Requirements Gathering

    Note: High satisfaction was classified as organizations with a score greater or equal to 8. Not high satisfaction was every other organization that scored below 8 on the area questions.

    N=395 organizations from Info-Tech’s CIO Business Vision diagnostic

    Requirements gathering efforts are filled with challenges; review these pitfalls to avoid in your optimization efforts

    The challenges that afflict requirements gathering are multifaceted and often systemic in nature. There isn’t a single cure that will fix all of your requirements gathering problems, but an awareness of frequently encountered challenges will give you a basis for where to consider establishing better SOPs. Commonly encountered challenges include:

    Process Challenges

    • Requirements may be poorly documented, or not documented at all.
    • Elicitation methods may be inappropriate (e.g. using a survey when collaborative whiteboarding is needed).
    • Elicitation methods may be poorly executed.
    • IT and business units may not be communicating requirements in the same terms/language.
    • Requirements that conflict with one another may not be identified during analysis.
    • Requirements cannot be traced from origin to testing.

    Stakeholder Challenges

    • Stakeholders may be unaware of the requirements needed for the ideal solution.
    • Stakeholders may have difficulty properly articulating their desired requirements.
    • Stakeholders may have difficulty gaining consensus on the ideal solution.
    • Relevant stakeholders may not be consulted on requirements.
    • Sign-off may not be received from the proper stakeholders.

    70% of projects fail due to poor requirements. (Info-Tech Research Group)

    Address the root cause of poor requirements to increase project success

    Root Causes of Poor Requirements Gathering:

    • Requirements gathering procedures don’t exist.
    • Requirements gathering procedures exist but aren’t followed.
    • There isn't enough time allocated to the requirements gathering phase.
    • There isn't enough involvement or investment secured from business partners.
    • There is no senior leadership involvement or mandate to fix requirements gathering.
    • There are inadequate efforts put towards obtaining and enforcing sign-off.

    Outcomes of Poor Requirements Gathering:

    • Rework due to poor requirements leads to costly overruns.
    • Final deliverables are of poor quality.
    • Final deliverables are implemented late.
    • Predicted gains from deployed applications are not realized.
    • There are low feature utilization rates by end users.
    • There are high levels of end-user dissatisfaction.
    • There are high levels of project sponsor dissatisfaction.

    Info-Tech Insight

    Requirements gathering is the number one failure point for most development or procurement projects that don’t deliver value. This has been and continues to be the case as most organizations still don't get requirements gathering right. Overcoming organizational cynicism can be a major obstacle when it is time to optimize the requirements gathering process.

    Reduce wasted project work with clarity of business goals and analysis of requirements

    You can reduce the amount of wasted work by making sure you have clear business goals. In fact, you could see an improvement of as much as 50% by going from a low level of satisfaction with clarity of business goals (<2) to a high level of satisfaction (≥5).

    A line graph demonstrating that as the amount of wasted work increases, clarity of business goals satisfaction decreases.

    Likewise, you could see an improvement of as much as 43% by going from a low level of satisfaction with analysis of requirements (less than 2) to a high level of satisfaction (greater than or equal to 5).

    A line graph demonstrating that as the Amount of Wasted Work decreases, the level of satisfaction with analysis of requirements shifts from low to high.

    Note: Waste is measured by the amount of cancelled projects; suboptimal assignment of resources; analyzing, fixing, and re-deploying; inefficiency, and unassigned resources.

    N=200 teams from the Project Portfolio Management diagnostic

    Effective requirements gathering supports other critical elements of project management success

    Good intentions and hard work aren’t enough to make a project successful. As you proceed with a project, step back and assess the critical success factors. Make sure that the important inputs and critical activities of requirements gathering are supporting, not inhibiting, project success.

    1. Streamlined Project Intake
    2. Strong Stakeholder Management
    3. Defined Project Scope
    4. Effective Project Management
    5. Environmental Analysis

    Don’t improvise: have a structured, end-to-end approach for successfully gathering useful requirements

    Creating a unified SOP guide for requirements elicitation, analysis, and validation is a critical step for requirements optimization; it gives your BAs a common frame of reference for conducting requirements gathering.

    • The key to requirements optimization is to establish a strong set of SOPs that provide direction on how your organization should be executing requirements gathering processes. This SOP guide should be a holistic document that walks your BAs through a requirements gathering project from beginning to end.
    • An SOP that is put aside is useless; it must be well communicated to BAs. It should be treated as the veritable manifesto of requirements management in your organization.

    Info-Tech Insight

    Having a standardized approach to requirements management is critical, and SOPs should be the responsibility of a group. The SOP guide should cover all of the major bases of requirements management. In addition to providing a walk-through of the process, an SOP also clarifies requirements governance.

    Leverage Info-Tech’s proven Requirements Gathering Framework as the basis for building requirements processes

    A graphic with APPLICATIONS THAT DELIVER BUSINESS VALUE written in the middle. Three steps are named: Elicit; Analyze; Validate. Around the outer part of the graphic are 4 arrows arranged in a circle, with the labels: Plan; Monitor; Communicate; Manage.

    Info-Tech’s Requirements Gathering Framework is a comprehensive approach to requirements management that can be scaled to any size of project or organization. This framework has been extensively road-tested with our clients to ensure that it balances the needs of IT and business stakeholders to give a holistic, end-to-end approach for requirements gathering. It covers the foundational issues (elicitation, analysis, and validation) and prescribes techniques for planning, monitoring, communicating, and managing the requirements gathering process.

    Don’t forget resourcing: the best requirements gathering process will still fail if you don’t develop BA competencies

    When creating the process for requirements gathering, think about how it will be executed by your BAs, and what the composition of your BA team should look like. A strong BA needs to serve as an effective translator, being able to speak the language of both the business and IT.

    1. To ensure alignment of your BAs to the requirements gathering process, undertake a formal skills assessment to identify areas where analysts are strong, and areas that should be targeted for training and skills development.
    2. Training of BAs on the requirements gathering process and development of intimate familiarity with SOPs is essential; you need to get BAs on the same page to ensure consistency and repeatability of the requirements process.
    3. Consider implementing a formal mentorship and/or job shadowing program between senior and junior BAs. Many of our members report that leveraging senior BAs to bootstrap the competencies of more junior team members is a proven approach to building skillsets for requirements gathering.

    What are some core competencies of a good BA?

    • Strong stakeholder management.
    • Proven track record in facilitating elicitation sessions.
    • Ability to bridge the gulf between IT and the business by speaking both languages.
    • Ability to ask relevant probing questions to uncover latent needs.
    • Experience with creating project operating models and business process diagrams.
    • Ability to set and manage expectations throughout the process.

    Throughout this blueprint, look for the “BA Insight” box to learn how steps in the requirements gathering process relate to the skills needed by BAs to facilitate the process effectively.

    A mid-sized local government overhauls its requirements gathering approach and sees strong results

    CASE STUDY

    Industry

    Government

    Source

    Info-Tech Research Group Workshop

    The Client

    The organization was a local government responsible for providing services to approximately 600,000 citizens in the southern US. Its IT department is tasked with deploying applications and systems (such as HRIS) that support the various initiatives and mandate of the local government.

    The Requirements Gathering Challenge

    The IT department recognized that a strong requirements gathering process was essential to delivering value to its stakeholders. However, there was no codified process in place – each BA unilaterally decided how they would conduct requirements gathering at the start of each project. IT recognized that to enhance both the effectiveness and efficiency of requirements gathering, it needed to put in place a strong, prescriptive set of SOPs.

    The Improvement

    Working with a team from Info-Tech, the IT leadership and BA team conducted a workshop to develop a new set of SOPs that provided clear guidance for each stage of the requirements process: elicitation, analysis, and validation. As a result, business satisfaction and value alignment increased.

    The Requirements Gathering SOP and BA Playbook offers a codified set of SOPs for requirements gathering gave BAs a clear 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

    Build a Strong Approach to Business Requirements Gathering – project overview

    1. Build the Target State for Requirements Gathering 2. Define the Elicitation Process 3. Analyze and Validate Requirements 4. Create a Requirements Governance Action Plan
    Best-Practice Toolkit

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    Guided Implementations
    • Review Info-Tech’s requirements gathering methodology.
    • Assess current state for requirements gathering – pains and challenges.
    • Determine target state for business requirements gathering – areas of opportunity.
    • Assess elicitation techniques and determine best fit to projects and business environment.
    • Review options for structuring the output of requirements elicitation (i.e. SIPOC).
    • Create policies for requirements categorization and prioritization.
    • Establish best practices for validating the BRD with project stakeholders.
    • Discuss how to handle changes to requirements, and establish a formal change control process.
    • Review options for ongoing governance of the requirements gathering process.
    Onsite Workshop Module 1: Define the Current and Target State Module 2: Define the Elicitation Process Module 3: Analyze and Validate Requirements Module 4: Governance and Continuous Improvement Process
    Phase 1 Results: Clear understanding of target needs for the requirements process. Phase 2 Results: Best practices for conducting and structuring elicitation. Phase 3 Results: Standardized frameworks for analysis and validation of business requirements. Phase 4 Results: Formalized change control and governance processes for requirements.

    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

    Define Current State and Target State for Requirements Gathering

    • Understand current state and document existing requirement process steps.
    • Identify stakeholder, process, outcome, and reigning challenges.
    • Conduct target state analysis.
    • Establish requirements gathering metrics.
    • Identify project levels 1/2/3/4.
    • Match control points to project levels 1/2/3/4.
    • Conduct project scoping and identify stakeholders.

    Define the Elicitation Process

    • Understand elicitation techniques and which ones to use.
    • Document and confirm elicitation techniques.
    • Create a requirements gathering elicitation plan for your project.
    • Practice using interviews with business stakeholders to build use case models.
    • Practice using table-top testing with business stakeholders to build use case models.
    • Build the operating model for your project

    Analyze and Validate Requirements

    • Categorize gathered requirements for use.
    • Consolidate similar requirements and eliminate redundancies.
    • Practice prioritizing requirements.
    • Rightsize the requirements documentation template.
    • Present the business requirements document (BRD) to business stakeholders.
    • Identify testing opportunities.

    Establish Change Control Processes

    • Review existing CR process.
    • Review change control process best practices & optimization opportunities.
    • Build guidelines for escalating changes.
    • Confirm your requirements gathering process for project levels 1/2/3/4.

    Establish Ongoing Governance for Requirements Gathering

    • Define RACI for the requirements gathering process.
    • Define the requirements gathering governance process.
    • Define RACI for requirements gathering governance.
    • Define the agenda and cadence for requirements gathering governance.
    • Identify and analyze stakeholders for communication plan.
    • Create communication management plan.
    • Build the action plan.
    Deliverables
    • Requirements gathering maturity assessment
    • Project level selection tool
    • Requirements gathering documentation tool
    • Project elicitation schedule
    • Project operating model
    • Project use cases
    • Requirements gathering documentation tool
    • Requirements gathering testing checklist
    • Requirements traceability matrix
    • Requirements gathering communication tracking template
    • Requirements gathering action plan

    Phase 1: Build the Target State for the Requirements Gathering 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: Build the Target State

    Proposed Time to Completion: 2 weeks

    Step 1.1: Understand the Benefits of Requirements Optimization

    Start with an analyst kick off call:

    • Review Info-Tech’s requirements gathering methodology.

    Then complete these activities…

    • Hold a fireside chat.

    With these tools & templates:

    Requirements Gathering SOP and BA Playbook

    Step 1.2: Determine Your Target State for Requirements Gathering

    Review findings with analyst:

    • Assess current state for requirements gathering – pains and challenges.
    • Determine target state for business requirements gathering – areas of opportunity.

    Then complete these activities…

    • Identify your business process model.
    • Define project levels.
    • Match control points to project level.
    • Identify and analyze stakeholders.

    With these tools & templates:

    • Requirements Gathering Maturity Assessment
    • Project Level Selection Tool
    • Business Requirements Analyst job description
    • Requirements Gathering Communication Tracking Template

    Phase 1 Results & Insights:

    Clear understanding of target needs for the requirements process.

    Step 1.1: Understand the Benefits of Requirements Optimization

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:
    • Identifying challenges with requirements gathering and identifying objectives for the workshop.
    This step involves the following participants:
    • Business stakeholders
    • BAs
    Outcomes of this step
    • Stakeholder objectives identified.

    Requirements optimization is powerful, but it’s not free; gauge the organizational capital you’ll need to make it a success

    Optimizing requirements management is not something that can be done in isolation, and it’s not necessarily going to be easy. Improving your requirements will translate into better value delivery, but it takes real commitment from IT and its business partners.

    There are four “pillars of commitment” that will be necessary to succeed with requirements optimization:

    1. Senior Management Organizational Capital
      • Before organizations can establish revised SOPs for requirements gathering, they’ll need a strong champion in senior management to ensure that updated elicitation and sign-off techniques do not offend people. A powerful sponsor can lead to success, especially if they are in the business.
    2. End-User Organizational Capital
      • To overcome cynicism, you need to focus on convincing end users that there is something to be gained from participating in requirements gathering (and the broader process of requirements optimization). Frame the value by focusing on how good requirements mean better apps (e.g. faster, cheaper, fewer errors, less frustration).
    3. Staff Resourcing
      • You can have a great SOP, but if you don’t have the right resources to execute on it you’re going to have difficulty. Requirements gathering needs dedicated BAs (or equivalent staff) who are trained in best practices and can handle elicitation, analysis, and validation successfully.
    4. Dedicated Cycle Time
      • IT and the business both need to be willing to demonstrate the value of requirements optimization by giving requirements gathering the time it needs to succeed. If these parties are convinced by the concept in theory, but still try to rush moving to the development phase, they’re destined for failure.

    Rethink your approach to requirements gathering: start by examining the business process, then tackle technology

    When gathering business requirements, it’s critical not to assume that layering on technology to a process will automatically solve your problems.

    Proper requirements gathering views projects holistically (i.e. not just as an attempt to deploy an application or technology, but as an endeavor to enable new or re-engineered business processes). Neglecting to see requirements gathering in the context of business process enablement leads to failure.

    • Far too often, organizations automate an existing process without putting much thought into finding a better way to do things.
    • Most organizations focus on identifying a series of small improvements to make to a process and realize limited gains.
    • The best way to generate transformational gains is to reinvent how the process should be performed and work backwards from there.
    • You should take a top-down approach and begin by speaking with senior management about the business case for the project and their vision for the target state.
    • You should elicit requirements from the rank-and-file employees while centering the discussion and requirements around senior management’s target state. Don’t turn requirements gathering into a griping session about deficiencies with a current application.

    Leverage Info-Tech’s proven Requirements Gathering Framework as the basis for building requirements processes

    A graphic with APPLICATIONS THAT DELIVER BUSINESS VALUE written in the middle. Three steps are named: Elicit; Analyze; Validate. Around the outer part of the graphic are 4 arrows arranged in a circle, with the labels: Plan; Monitor; Communicate; Manage.

    Info-Tech’s Requirements Gathering Framework is a comprehensive approach to requirements management that can be scaled to any size of project or organization. This framework has been extensively road-tested with our clients to ensure that it balances the needs of IT and business stakeholders to give a holistic, end-to-end approach for requirements gathering. It covers both the foundational issues (elicitation, analysis, and validation) as well as prescribing techniques for planning, monitoring, communicating, and managing the requirements gathering process.

    Requirements gathering fireside chat

    1.1.1 – 45 minutes

    Output
    • Stakeholder objectives
    Materials
    • Whiteboard, markers, sticky notes
    Participants
    • BAs

    Identify the challenges you’re experiencing with requirements gathering, and identify objectives.

    1. Hand out sticky notes to participants, and ask the group to work independently to think of challenges that exist with regards to requirements gathering. (Hint: consider stakeholder challenges, process challenges, outcome challenges, and training challenges.) Ask participants to write their current challenges on sticky notes, and place them on the whiteboard.
    2. As a group, review all sticky notes and group challenges into themes.
    3. For each theme you uncover, work as a group to determine the objective that will overcome these challenges throughout the workshop and write this on the whiteboard.
    4. Discuss how these challenges will be addressed in the workshop.

    Don’t improvise: have a structured, prescriptive end-to-end approach for successfully gathering useful requirements

    Creating a unified SOP guide for requirements elicitation, analysis, and validation is a critical step for requirements optimization; it gives your BAs a common frame of reference for conducting requirements gathering.

    • The key to requirements optimization is to establish a strong set of SOPs that provide direction on how your organization should be executing requirements gathering processes. This SOP guide should be a holistic document that walks your BAs through a requirements gathering project from beginning to end.
    • An SOP that is put aside is useless; it must be well communicated to BAs. It should be treated as the veritable manifesto of requirements management in your organization.

    Info-Tech Insight

    Having a standardized approach to requirements management is critical, and SOPs should be the responsibility of a group. The SOP guide should cover all of the major bases of requirements management. In addition to providing a walk-through of the process, an SOP also clarifies requirements governance.

    Use Info-Tech’s Requirements Gathering SOP and BA Playbook to assist with requirements gathering optimization

    Info-Tech’s Requirements Gathering SOP and BA Playbook template forms the basis of this blueprint. It’s a structured document that you can fill out with defined procedures for how requirements should be gathered at your organization.

    Info-Tech’s Requirements Gathering SOP and BA Playbook template provides a number of sections that you can populate to provide direction for requirements gathering practitioners. Sections provided include: Organizational Context Governance Procedures Resourcing Model Technology Strategy Knowledge Management Elicitation SOPs Analysis SOPs Validation SOPs.

    The template has been pre-populated with an example of requirements management procedures. Feel free to customize it to fit your specific needs.

    Download the Requirements Gathering SOP and BA Playbook template.

    Step 1.2: Determine Your Target State for Requirements Gathering

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:
    • Conduct a current and target state analysis.
    • Identify requirements gathering business process model.
    • Establish requirements gathering performance metrics.
    • Define project levels – level 1/2/3/4.
    • Match control points to project level.
    • Conduct initial brainstorming on the project.
    This step involves the following participants:
    • BAs
    Outcomes of this step:
    • Requirements gathering maturity summary.
    • Requirements gathering business process model.
    • Identification of project levels.
    • Identification of control points.

    Plan for requirements gathering

    The image is the Requirements Gathering Framework from earlier slides, but with all parts of the graphic grey-out, except for the arrows containing Plan and Monitor, at the top.

    Establishing an overarching plan for requirements governance is the first step in building an SOP. You must also decide who will actually execute the requirements gathering processes, and what technology they will use to accomplish this. Planning for governance, resourcing, and technology is something that should be done repeatedly and at a higher strategic level than the more sequential steps of elicitation, analysis, and validation.

    Establish your target state for requirements gathering processes to have a cogent roadmap of what needs to be done

    Visualize how you want requirements to be gathered in your organization. Do not let elements of the current process restrict your thinking.

    • First, articulate the impetus for optimizing requirements management and establish clear goals.
    • Use these goals to drive the target state.

    For example:

    • If the goal is to improve the accuracy of requirements, then restructure the validation process.
    • If the goal is to improve the consistency of requirements gathering, then create SOPs or use electronic templates and tools.

    Refrain from only making small changes to improve the existing process. Think about the optimal way to structure the requirements gathering process.

    Define the attributes of a good requirement to help benchmark the type of outputs that you’re looking for

    Attributes of Good Requirements

    Verifiable – It is stated in a way that can be tested.

    Unambiguous – It is free of subjective terms and can only be interpreted in one way.

    Complete – It contains all relevant information.

    Consistent – It does not conflict with other requirements.

    Achievable – It is possible to accomplish given the budgetary and technological constraints.

    Traceable – It can tracked from inception to testing.

    Unitary – It addresses only one thing and cannot be decomposed into multiple requirements.

    Accurate – It is based on proven facts and correct information.

    Other Considerations:

    Organizations can also track a requirement owner, rationale, priority level (must have vs. nice to have), and current status (approved, tested, etc.).

    Info-Tech Insight

    Requirements must be solution agnostic – they should focus on the underlying need rather than the technology required to satisfy the need as it can be really easy to fall into the technology solution trap.

    Use Info-Tech’s Requirements Gathering Maturity Assessment tool to help conduct current and target state analysis

    Use the Requirements Gathering Maturity Assessment tool to help assess the maturity of your requirements gathering function in your organization, and identify the gaps between the current state and the target state. This will help focus your organization's efforts in closing the gaps that represent high-value opportunities.

    • On tab 2. Current State, use the drop-down responses to provide the answer that best matches your organization, where 1= Strongly disagree and 5 = Strongly agree. On tab 3. Target State, answer the same questions in relation to where your organization would like to be.
    • Based on your responses, tab 4. Maturity Summary will display a visual of the gap between the current and target state.

    Conduct a current and target state analysis

    1.2.1 – 1 hour

    Complete the Requirements Gathering Maturity Assessment tool to define your target state, and identify the gaps in your current state.

    Input
    • Current and target state maturity rating
    Output
    • Requirements gathering maturity summary
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs
    1. For each component of requirements gathering, write out a series of questions to evaluate your current requirements gathering practices. Use the Requirements Gathering Maturity Assessment tool to assist you in drafting questions.
    2. Review the questions in each category, and agree on a rating from 1-5 on their current maturity: 1= Strongly disagree and 5 = Strongly agree. (Note: it will likely be very rare that they would score a 5 in any category, even for the target state.)
    3. Once the assigned categories have been completed, have groups present their assessment to all, and ensure that there is consensus. Once consensus has been reached, input the information into the Current State tab of the tool to reveal the overall current state of maturity score for each category.
    4. Now that the current state is complete, go through each category and define the target state goals.
    5. Document any gaps or action items that need to be addressed.

    Example: Conduct a current and target state analysis

    The Requirements Gathering Maturity Assessment - Target State, with example data inputted.

    Select the project-specific KPIs that will be used to track the value of requirements gathering optimization

    You need to ensure your requirements gathering procedures are having the desired effect and adjust course when necessary. Establishing an upfront list of key performance indicators that will be benchmarked and tracked is a crucial step.

    • Without following up on requirements gathering by tracking project metrics and KPIs, organizations will not be able to accurately gauge if the requirements process re-engineering is having a tangible, measurable effect. They will also not be able to determine what changes (if any) need to be made to SOPs based on project performance.
    • This is a crucial step that many organizations overlook. Creating a retroactive list of KPIs is inadequate, since you must benchmark pre-optimization project metrics in order to assess and isolate the value generated by reducing errors and cycle time and increasing value of deployed applications.

    Establish requirements gathering performance metrics

    1.2.2 – 30 minutes

    Input
    • Historical metrics
    Output
    • Target performance metrics
    Materials
    • Whiteboard
    • Markers
    • Paper
    Participants
    • BAs
    1. Identify the following information for the last six months to one year:
      1. Average number of reworks to requirements.
      2. Number of change requests.
      3. Percent of feature utilization by end users.
      4. User adoption rate.
      5. Number of breaches in regulatory requirements.
      6. Percent of final deliverables implemented on time.
      7. End-user satisfaction score (if possible).
    2. As a group, look at each metric in turn and set your target metrics for six months to one year for each of these categories.

    Document the output from this exercise in section 2.2 of the Requirements Gathering SOP and BA Playbook.

    Visualize your current and target state process for requirements gathering with a business process model

    A business process model (BPM) is a simplified depiction of a complex process. These visual representations allow all types of stakeholders to quickly understand a process, how it affects them, and enables more effective decision making. Consider these areas for your model:

    Stakeholder Analysis

    • Identify who the right stakeholders are
    • Plan communication
    • Document stakeholder responsibilities in a RACI

    Elicitation Techniques

    • Get the right information from stakeholders
    • Document it in the appropriate format
    • Define business need
    • Enterprise analysis

    Documentation

    • How are outputs built?
    • Process flows
    • Use cases
    • Business rules
    • Traceability matrix
    • System requirements

    Validation & Traceability

    • Make sure requirements are accurate and complete
    • Trace business needs to requirements

    Managing Requirements

    • Organizing and prioritizing
    • Gap analysis
    • Managing scope
    • Communicating
    • Managing changes

    Supporting Tools

    • Templates to standardize
    • Checklists
    • Software to automate the process

    Your requirements gathering process will vary based on the project level

    It’s important to determine the project levels up front, as each project level will have a specific degree of elicitation, analysis, and validation that will need to be completed. That being said, not all organizations will have four levels.

    Level 4

    • Very high risk and complexity.
    • Projects that result in a transformative change in the way you do business. Level 4 projects affect all lines of business, multiple technology areas, and have significant costs and/or risks.
    • Example: Implement ERP

    Level 3

    • High risk and complexity.
    • Projects that affect multiple lines of business and have significant costs and/or risks.
    • Example: Implement CRM

    Level 2

    • Medium risk and complexity.
    • Projects with broader exposure to the business that present a moderate level of risk to business operations.
    • Example: Deploy Office 365

    Level 1

    • Low risk and complexity.
    • Routine/straightforward projects with limited exposure to the business and low risk of negative business impact.
    • Example: SharePoint Update

    Use Info-Tech’s Project Level Selection Tool to classify your project level and complexity

    1.3 Project Level Selection Tool

    The Project Level Selection Tool will classify your projects into four levels, enabling you to evaluate the risk and complexity of a particular project and match it with an appropriate requirements gathering process.

    Project Level Input

    • Consider the weighting criteria for each question and make any needed adjustments to better reflect how your organization values each of the criterion.
    • Review the option levels 1-4 for each of the six questions, and make any modifications necessary to better suit your organization.
    • Review the points assigned to each of the four buckets for each of the six questions, and make any modifications needed.

    Project Level Selection

    • Use this tab to evaluate the project level of each new project.
    • To do so, answer each of the questions in the tool.

    Define project levels – Level 1/2/3/4

    1.2.3 – 1 hour

    Input
    • Project level assessment criteria
    Output
    • Identification of project levels
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs

    Define the project levels to determine the appropriate requirements gathering process for each.

    1. Begin by asking participants to review the six criteria for assessing project levels as identified in the Project Level Selection Tool. Have participants review the list and ensure agreement around the factors. Create a chart on the board using Level 1, Level 2, Level 3, and Level 4 as column headings.
    2. Create a row for each of the chosen factors. Begin by filling in the chart with criteria for a level 4 project: What constitutes a level 4 project according to these six factors?
    3. Repeat the exercise for Level 3, Level 2, and Level 1. When complete, you should have a chart that defines the four project levels at your organization.
    4. Input this information into the tool, and ask participants to review the weighting factors and point allocations and make modifications where necessary.
    5. Input the details from one of the projects participants had selected prior to the workshop beginning and determine its project level. Discuss whether this level is accurate, and make any changes needed.

    Document the output from this exercise in section 2.3 of the Requirements Gathering SOP and BA Playbook.

    Define project levels

    1.2.3 – 1 hour

    Category Level 4 Level 3 Level 2 Level 1
    Scope of Change Full system update Full system update Multiple modules Minor change
    Expected Duration 12 months + 6 months + 3-6 months 0-3 months
    Impact Enterprise-wide, globally dispersed Enterprise-wide Department-wide Low users/single division
    Budget $1,000,000+ $500,000-1,000,000 $100,000-500,000 $0-100,000
    Services Affected Mission critical, revenue impacting Mission critical, revenue impacting Pervasive but not mission critical Isolated, non-essential
    Confidentiality Yes Yes No No

    Define project levels

    1.2.3 – 1 hour

    The tool is comprised of six questions, each of which is linked to at least one type of project risk.

    Using the answers provided, the tool will calculate a level for each risk category. Overall project level is a weighted average of the individual risk levels, based on the importance weighting of each type of risk set by the project manager.

    This tool is an excerpt from Info-Tech’s exhaustive Project Level Assessment Tool.

    The image shows the Project Level Tool, with example data filled in.

    Build your initial requirements gathering business process models: create different models based on project complexity

    1.2.4 – 30 minutes

    Input
    • Current requirements gathering process flow
    Output
    • Requirements gathering business process model
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs

    Brainstorm the ideal target business process flows for your requirements gathering process (by project level).

    1. As a group, create a process flow on the whiteboard that covers the entire requirements gathering lifecycle, incorporating the feedback from exercise 1.2.1. Draw the process with input from the entire group.
    2. After the process flow is complete, compare it to the best practice process flow on the following slide. You may want to create different process flows based on project level (i.e. a process model for Level 1 and 2 requirements gathering, and a process model for how to collect requirements for Level 3 and 4). As you work through the blueprint, revisit and refine these models – this is the initial brainstorming!

    Document the output from this exercise in section 2.4 of the Requirements Gathering SOP and BA Playbook.

    Example: requirements gathering business process model

    An example of the requirements gathering business process model. The model depicts the various stages of the requirements gathering process.

    Develop your BA team to accelerate collecting, analyzing, and translating requirements

    Having an SOP is important, but it should be the basis for training the people who will actually execute the requirements gathering process. Your BA team is critical for requirements gathering – they need to know the SOPs in detail, and you need to have a plan for recruiting those with an excellent skill set.

    • The designated BA(s) for the project have responsibility for end-to-end requirements management – they are responsible for executing the SOPs outlined in this blueprint, including elicitation, analysis, and validation of requirements during the project.
    • Designated BAs must work collaboratively with their counterparts in the business and IT (e.g. developer teams or procurement professionals) to ensure that the approved requirements are met in a timely and cost-effective manner.

    The ideal candidates for requirements gathering are technically savvy analysts (but not necessarily computer science majors) from the business who are already fluent with the business’ language and cognizant of the day-to-day challenges that take place. Organizationally, these BAs should be in a group that bridges IT and the business (such as an RGCOE or PMO) and be specialists rather than generalists in the requirements management space.

    A BA resourcing strategy is included in the SOP. Customize it to suit your needs.

    "Make sure your people understand the business they are trying to provide the solution for as well if not better than the business folks themselves." – Ken Piddington, CIO, MRE Consulting

    Use Info-Tech’s Business Requirements Analyst job description template for sourcing the right talent

    1.4 Business Requirements Analyst

    If you don’t have a trained group of in-house BAs who can execute your requirements gathering process, consider sourcing the talent from internal candidates or calling for qualified applicants. Our Business Requirements Analyst job description template can help you quickly get the word out.

    • Sometimes, you will have a dedicated set of BAs, and sometimes you won’t. In the latter case, the template covers:
      • Job Title
      • Description of Role
      • Responsibilities
      • Target Job Skills
      • Target Job Qualifications
    • The template is primarily designed for external hiring, but can also be used to find qualified internal candidates.

    Info-Tech Deliverable
    Download the Business Requirements Analyst job description template.

    Standardizing process begins with establishing expectations

    CASE STUDY

    Industry Government

    Source Info-Tech Workshop

    Challenge

    A mid-sized US municipality was challenged with managing stakeholder expectations for projects, including the collection and analysis of business requirements.

    The lack of a consistent approach to requirements gathering was causing the IT department to lose credibility with department level executives, impacting the ability of the team to engage project stakeholders in defining project needs.

    Solution

    The City contracted Info-Tech to help build an SOP to govern and train all BAs on a consistent requirements gathering process.

    The teams first set about establishing a consistent approach to defining project levels, defining six questions to be asked for each project. This framework would be used to assess the complexity, risk, and scope of each project, thereby defining the appropriate level of rigor and documentation required for each initiative.

    Results

    Once the project levels were defined, the team established a formalized set of steps, tools, and artifacts to be created for each phase of the project. These tools helped the team present a consistent approach to each project to the stakeholders, helping improve credibility and engagement for eliciting requirements.

    The project level should set the level of control

    Choose a level of control that facilitates success without slowing progress.

    No control Right-sized control Over-engineered control
    Final deliverable may not satisfy business or user requirements. Control points and communication are set at appropriate stage-gates to allow for deliverables to be evaluated and assessed before proceeding to the next phase. Excessive controls can result in too much time spent on stage-gates and approvals, which creates delays in the schedule and causes milestones to be missed.

    Info-Tech Insight

    Throughout the requirements gathering process, you need checks and balances to ensure that the projects are going according to plan. Now that we know our stakeholder, elicitation, and prioritization processes, we will set up the control points for each project level.

    Plan your communication with stakeholders

    Determine how you want to receive and distribute messages to stakeholders.

    Communication Milestones Audience Artifact Final Goal
    Project Initiation Project Sponsor Project Charter Communicate Goals and Scope of Project
    Elicitation Scheduling Selected Stakeholders (SMEs, Power Users) Proposed Solution Schedule Elicitation Sessions
    Elicitation Follow-Up Selected Stakeholders Elicitation Notes Confirm Accuracy of Notes
    First Pass Validation Selected Stakeholders Consolidated Requirements Validate Aggregated Requirements
    Second Pass Validation Selected Stakeholders Prioritized Requirements Validate Requirements Priority
    Eliminated Requirements Affected Stakeholders Out of Scope Requirements Affected Stakeholders Understand Impact of Eliminated Requirements
    Solution Selection High Authority/Expertise Stakeholders Modeled Solutions Select Solution
    Selected Solution High Authority/Expertise Stakeholders and Project Sponsor Requirements Package Communicate Solution
    Requirements Sign-Off Project Sponsor Requirements Package Obtain Sign-Off

    Setting control points – approvals and sign-offs

    # – Control Point: A decision requiring specific approval or sign-off from defined stakeholders involved with the project. Control points result in accepted or rejected deliverables/documents.

    A – Plan Approval: This control point requires a review of the requirements gathering plan, stakeholders, and elicitation techniques.

    B – Requirements Validation: This control point requires a review of the requirements documentation that indicates project and product requirements.

    C – Prioritization Sign-Off: This requires sign-off from the business and/or user groups. This might be sign-off to approve a document, prioritization, or confirm that testing is complete.

    D – IT or Peer Sign-Off: This requires sign-off from IT to approve technical requirements or confirm that IT is ready to accept a change.

    Match control points to project level and identify these in your requirements business process models

    1.2.5 – 45 minutes

    Input
    • Activity 1.2.4 business process diagram
    Output
    • Identify control points
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • Business stakeholders
    • BAs

    Define all of the key control points, required documentation, and involved stakeholders.

    1. On the board, post the initial business process diagram built in exercise 1.2.4. Have participants suggest appropriate control points. Write the control point number on a sticky note and place it where the control point should be.
    2. Now that we have identified the control points, consider each control point and define who will be involved in each one, who provides the approval to move forward, the documentation required, and the overall goal.

    Document the output from this exercise in section 6.1 of the Requirements Gathering SOP and BA Playbook.

    A savvy BA should clarify and confirm project scope prior to embarking on requirements elicitation

    Before commencing requirements gathering, it’s critical that your practitioners have a clear understanding of the initial business case and rationale for the project that they’re supporting. This is vital for providing the business context that elicitation activities must be geared towards.

    • Prior to commencing the requirements gathering phase, the designated BA should obtain a clear statement of scope or initial project charter from the project sponsor. It’s also advisable for the BA to have an in-person meeting with the project sponsor(s) to understand the overarching strategic or tactical impetus for the project. This initial meeting should be less about eliciting requirements and more about understanding why the project is moving forward, and the business processes it seeks to enable or re-engineer (the target state).
    • During this meeting, the BA should seek to develop a clear understanding of the strategic rationale for why the project is being undertaken (the anticipated business benefits) and why it is being undertaken at this time. If the sponsor has any business process models they can share, this would be a good time to review them.

    During requirements gathering, BAs should steer clear of solutions and focus on capturing requirements. Focus on traceable, hierarchical, and testable requirements. Focusing on solution design means you are out of requirements mode.

    Identify constraints early and often, and ensure that they are adequately communicated to project sponsors and end users

    Constraints come in many forms (i.e. financial, regulatory, and technological). Identifying these constraints prior to entering requirements gathering enables you to remain alert; you can separate what is possible from what is impossible, and set stakeholder expectations accordingly.

    • Most organizations don’t inventory their constraints until after they’ve gathered requirements. This is dangerous, as clients may inadvertently signal to end users or stakeholders that an infeasible requirement is something they will pursue. As a result, stakeholders are disappointed when they don’t see it materialize.
    • Organizations need to put advanced effort into constraint identification and management. Too much time is wasted pursuing requirements that aren't feasible given existing internal (e.g. budgets and system) and external (e.g. legislative or regulatory) constraints.
    • Organizations need to manage diverse stakeholders for requirements analysis. Communication will not always be solely with internal teams, but also with suppliers, customers, vendors, and system integrators.

    Stakeholder management is a critical aspect of the BA’s role. Part of the BA’s responsibility is prioritizing solutions and demonstrating to stakeholders the level of effort required and the value attained.

    A graphic, with an arrow running down the left side, pointing downward, which is labelled Constraint Malleability. On the right side of the arrow are three rounded arrows, stacked. The top arrow is labelled Legal/Regulatory Constraints, the second is labelled System/Technical Constraints and the third is labelled Stakeholder Constraints

    Conduct initial brainstorming on the scope of a selected enterprise application project (real or a sample of your choice)

    1.2.6 – 30 minutes

    Input
    • Project details
    Output
    • Initial project scoping
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders

    Begin the requirements gathering process by conducting some initial scoping on why we are doing the project, the goals, and the constraints.

    1. Share the project intake form/charter with each member of the group, and give them a few minutes to read over the project details.
    2. On the board write the project topic and three sub-topics:
      • Why does the business want this?
      • What do you want customers (end users) to be able to do?
      • What are the constraints?
    3. As a group, brainstorm answers to each of these questions and write them on the board.

    Example: Conduct initial brainstorming on the project

    Image shows an example for initial brainstorming on a project. The image shows the overall idea, Implement CRM, with question bubbles emerging out of it, and space left blank to brainstorm the answers to those questions.

    Identify stakeholders that must be consulted during the elicitation part of the process; get a good spectrum of subject matter experts (SMEs)

    Before you can dive into most elicitation techniques, you need to know who you’re going to speak with – not all stakeholders hold the same value.

    There are two broad categories of stakeholders:

    Customers: Those who ask for a system/project/change but do not necessarily use it. These are typically executive sponsors, project managers, or interested stakeholders. They are customers in the sense that they may provide the funding or budget for a project, and may have requests for features and functionality, but they won’t have to use it in their own workflows.

    Users: Those who may not ask for a system but must use it in their routine workflows. These are your end users, those who will actually interact with the system. Users don’t necessarily have to be people – they can also be other systems that will require inputs or outputs from the proposed solution. Understand their needs to best drive more granular functional requirements.

    "The people you need to make happy at the end of the day are the people who are going to help you identify and prioritize requirements." – Director of IT, Municipal Utilities Provider

    Need a hand with stakeholder identification? Leverage Info-Tech’s Stakeholder Planning Tool to catalog and prioritize the stakeholders your BAs will need to contact during the elicitation phase.

    Exercise: Identify and analyze stakeholders for the application project prior to beginning formal elicitation

    1.2.7 – 45 minutes

    Input
    • List of stakeholders
    Output
    • Stakeholder analysis
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • BAs

    Practice the process for identifying and analyzing key stakeholders for requirements gathering.

    1. As a group, generate a complete list of the project stakeholders. Consider who is involved in the problem and who will be impacted by the solution, and record the names of these stakeholders/stakeholder groups on a sticky note. Categories include:
      1. Who is the project sponsor?
      2. Who are the user groups?
      3. Who are the project architects?
      4. Who are the specialty stakeholders (SMEs)?
      5. Who is your project team?
    2. Now that you’ve compiled a complete list, review each user group and indicate their level of influence against their level of involvement in the project to create a stakeholder power map by placing their sticky on a 2X2 grid.
    3. At the end of the day, record this list in the Requirements Gathering Communication Tracking Template.

    Use Info-Tech’s Requirements Gathering Communication Tracking Template

    1.5 Requirements Gathering Communication Tracking Template

    Use the Requirements Gathering Communication Tracking Template for structuring and managing ongoing communications among key requirements gathering implementation stakeholders.

    An illustration of the Stakeholder Power Map Template tab of the Requirements Gathering Communication Tracking Template

    Use the Stakeholder Power Map tab to:

    • Identify the stakeholder's name and role.
    • Identify their position on the power map using the drop-down menu.
    • Identify their level of support.
    • Identify resisters' reasons for resisting as: unwilling, unable, and/or unknowing.
    • Identify which committees they currently sit on, and which they will sit on in the future state.
    • Identify any key objections the stakeholder may have.

    Use the Communication Management Plan tab to:

    • Identify the vehicle/communication medium (status update, meeting, training, etc.).
    • Identify the audience for the communication.
    • Identify the purpose for communication.
    • Identify the frequency.
    • Identify who is responsible for the communication.
    • Identify how the communication will be distributed, and the level of detail.

    Right-size your investments in requirements management technology; sometimes the “suite spot” isn’t necessary

    Recording and analyzing requirements needs some kind of tool, but don’t overinvest in a dedicated suite if you can manage with a more inexpensive solution (such as Word, Excel, and/or Visio). Top-tier solutions may be necessary for an enterprise ERP deployment, but you can use a low-cost solution for low-level productivity application.

    • Many companies do things in the wrong order. Organizations need to right-size the approach that they take to recording and analyzing requirements. Taking the suite approach isn’t always better – often, inputting the requirements into Word or Excel will suffice. An RM suite won’t solve your problems by itself.
    • If you’re dealing with strategic approach or calculated approach projects, their complexity likely warrants a dedicated RM suite that can trace system dependencies. If you’re dealing with primarily elementary or fundamental approach projects, use a more basic tool.

    Your SOP guide should specify the technology platform that your analysts are expected to use for initial elicitation as well as analysis and validation. You don’t want them to use Word if you’ve invested in a full-out IBM RM solution.

    The graphic shows a pyramid shape next to an arrow, pointing up. The arrow is labelled Project Complexity. The pyramid includes three text boxes, reading (from top to bottom) Dedicated RM Suite; RM Module in PM Software; and Productivity APP (Word/Excel/Visio)

    If you need to opt for a dedicated suite, these vendors should be strong contenders in your consideration set

    Dedicated requirements management suites are a great (although pricey) way to have full control over recording, analysis, and hierarchical categorization of requirements. Consider some of the major vendors in the space if Word, Excel, and Visio aren’t suitable for you.

    • Before you purchase a full-scale suite or module for requirements management, ensure that the following contenders have been evaluated for your requirements gathering technology strategy:
      • Micro Focus Requirements Management
      • IBM Requisite Pro
      • IBM Rational DOORS
      • Blueprint Requirements Management
      • Jama Software
      • Polarion Software (a Siemens Company)

    A mid-sized consulting company overhauls its requirement gathering software to better understand stakeholder needs

    CASE STUDY

    Industry Consulting

    Source Jama Software

    Challenge

    ArcherPoint is a leading Microsoft Partner responsible for providing business solutions to its clients. Its varied customer base now requires a more sophisticated requirements gathering software.

    Its process was centered around emailing Word documents, creating versions, and merging issues. ArcherPoint recognized the need to enhance effectiveness, efficiency, and accuracy of requirements gathering through a prescriptive set of elicitation procedures.

    Solution

    The IT department at ArcherPoint recognized that a strong requirements gathering process was essential to delivering value to stakeholders. It needed more scalable and flexible requirements gathering software to enhance requirements traceability. The company implemented SaaS solutions that included traceability and seamless integration features.

    These features reduced the incidences of repetition, allowed for tracing of requirements relationships, and ultimately led to an exhaustive understanding of stakeholders’ needs.

    Results

    Projects are now vetted upon an understanding of the business client’s needs with a thorough requirements gathering collection and analysis.

    A deeper understanding of the business needs also allows ArcherPoint to better understand the roles and responsibilities of stakeholders. This allows for the implementation of structures and policies which makes the requirements gathering process rigorous.

    There are different types of requirements that need to be gathered throughout the elicitation phase

    Business Requirements

    • Higher-level statements of the goals, objectives, or needs of the enterprise.
    • Describe the reasons why a project has been initiated, the objectives that the project will achieve, and the metrics that will be used to measure its success.
    • Business requirements focus on the needs of the organization as a whole, not stakeholders within it.
    • Business requirements provide the foundation on which all further requirements analysis is based:
      • Ultimately, any detailed requirements must map to business requirements. If not, what business need does the detailed requirement fulfill?

    Stakeholder Requirements

    • Statements of the needs of a particular stakeholder or class of stakeholders, and how that stakeholder will interact with a solution.
    • Stakeholder requirements serve as a bridge between business requirements and the various classes of solution requirements.
    • When eliciting stakeholder requirements, other types of detailed requirements may be identified. Record these for future use, but keep the focus on capturing the stakeholders’ needs over detailing solution requirements.

    Solution options or preferences are not requirements. Be sure to identify these quickly to avoid being forced into untimely discussions and sub-optimal solution decisions.

    Requirement types – a quick overview (continued)

    Solution Requirements: Describe the characteristics of a solution that meet business requirements and stakeholder requirements. They are frequently divided into sub-categories, particularly when the requirements describe a software solution:

    Functional Requirements

    • Describe 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, i.e. specific information technology application actions or responses.
    • Functional requirements are not detailed solution specifications; rather, they are the basis from which specifications will be developed.

    Non-Functional Requirements

    • Capture conditions that do not directly relate to the behavior or functionality of the solution, but rather describe environmental conditions under which the solution must remain effective or qualities that the systems must have. These can include requirements related to capacity, speed, security, availability, and the information architecture and presentation of the user interface.
    • Non-functional requirements often represent constraints on the ultimate solution. They tend to be less negotiable than functional requirements.
    • For IT solutions, technical requirements would fit in this category.
    Info-Tech Insight

    Remember that solution requirements are distinct from solution specifications; in time, specifications will be developed from the requirements. Don’t get ahead of the process.

    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:

    1.2.1 Conduct current and target state analysis

    An analyst will facilitate a discussion to assess the maturity of your requirements gathering process and identify any gaps in the current state.

    1.2.2 Establish requirements gathering performance metrics

    Speak to an analyst to discuss and determine key metrics for measuring the effectiveness of your requirements gathering processes.

    1.2.4 Identify your requirements gathering business process model

    An analyst will facilitate a discussion to determine the ideal target business process flow for your requirements gathering.

    1.2.3; 1.2.5 Define control levels and match control points

    An analyst will assist you with determining the appropriate requirements gathering approach for different project levels. The discussion will highlight key control points and define stakeholders who will be involved in each one.

    1.2.6; 1.2.7 Conduct initial scoping and identify key stakeholders

    An analyst will facilitate a discussion to highlight the scope of the requirements gathering optimization project as well as identify and analyze key stakeholders in the process.

    Phase 2: Define the Elicitation 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: Define the Elicitation Process

    Proposed Time to Completion: 2 weeks

    Step 2.1: Determine Elicitation Techniques

    Start with an analyst kick off call:

    • Understand and assess elicitation techniques.
    • Determine best fit to projects and business environment.

    Then complete these activities…

    • Understand different elicitation techniques.
    • Record the approved elicitation techniques.
    Step 2.2: Structure Elicitation Output

    Review findings with analyst:

    • Review options for structuring the output of requirements elicitation.
    • Build the requirements gathering operating model.

    Then complete these activities…

    • Build use case model.
    • Use table-top testing to build use case models.
    • Build the operating model.

    With these tools & templates:

    • Business Requirements Document Template
    • Scrum Documentation Template
    Phase 2 Results & Insights:
    • Best practices for conducting and structuring elicitation.

    Step 2.1: Determine Elicitation Techniques

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:

    • Understand requirements elicitation techniques.

    This step involves the following participants:

    • BAs
    • Business stakeholders

    Outcomes of this step

    • Select and record best-fit elicitation techniques.

    Eliciting requirements is all about effectively creating the initial shortlist of needs the business has for an application

    The image is the Requirements Gathering Framework, shown earlier. All parts of the framework are greyed-out, except for the arrow containing the word Elicit in the center of the image, with three bullet points beneath it that read: Prepare; Conduct; Confirm.

    The elicitation phase is where the BAs actually meet with project stakeholders and uncover the requirements for the application. Major tasks within this phase include stakeholder identification, selecting elicitation techniques, and conducting the elicitation sessions. This phase involves the most information gathering and therefore requires a significant amount of time to be done properly.

    Good requirements elicitation leverages a strong elicitation framework and executes the right elicitation techniques

    A mediocre requirements practitioner takes an order taker approach to elicitation: they elicit requirements by showing up to a meeting with the stakeholder and asking, “What do you want?” This approach frequently results in gaps in requirements, as most stakeholders cannot free-form spit out an accurate inventory of their needs.

    A strong requirements practitioner first decides on an elicitation framework – a mechanism to anchor the discussion about the business requirements. Info-Tech recommends using business process modelling (BPM) as the most effective framework. The BA can now work through several key questions:

    • What processes will this application need to support?
    • What does the current process look like?
    • How could we improve the process?
    • In a target state process map, what are the key functional requirements necessary to support this?

    The second key element to elicitation is using the right blend of elicitation techniques: the tactical approach used to actually collect the requirements. Interviews are the most popular means, but focus groups, JAD sessions, and observational techniques can often yield better results – faster. This section will touch on BPM/BPI as an elicitation framework, then do deep dive on different elicitation techniques.

    The elicitation phase of most enterprise application projects follows a similar four-step approach

    Prepare

    Stakeholders must be identified, and elicitation frameworks and techniques selected. Each technique requires different preparation. For example, brainstorming requires ground rules; focus groups require invitations, specific focus areas, and meeting rooms (perhaps even cameras). Look at each of these techniques and discuss how you would prepare.

    Conduct

    A good elicitor has the following underlying competencies: analytical thinking, problem solving, behavioral characteristics, business knowledge, communication skills, interaction skills, and proficiency in BA tools. In both group and individual elicitation techniques, interpersonal proficiency and strong facilitation is a must. A good BA has an intuitive sense of how to manage the flow of conversations, keep them results-oriented, and prevent stakeholder tangents or gripe sessions.

    Document

    How you document will depend on the technique you use. For example, recording and transcribing a focus group is probably a good idea, but you still need to analyze the results and determine the actual requirements. Use cases demand a software tool – without one, they become cumbersome and unwieldy. Consider how you would document the results before you choose the technique. Some analysts prefer to use solutions like OneNote or Evernote for capturing the raw initial notes, others prefer pen and paper: it’s what works best for the BA at hand.

    Confirm

    Review the documentation with your stakeholder and confirm the understanding of each requirement via active listening skills. Revise requirements as necessary. Circulating the initial notes of a requirements interview or focus group is a great practice to get into – it ensures jargon and acronyms are correctly captured, and that nothing has been lost in the initial translation.

    BPM is an extremely useful framework for framing your requirements elicitation discussions

    What is BPM? (Source: BPMInstitute.org)

    BPMs can take multiple forms, but they are created as visual process flows that depict a series of events. They can be customized at the discretion of the requirements gathering team (swim lanes, legends, etc.) based on the level of detail needed from the input.

    When to use them?

    BPMs can be used as the basis for further process improvement or re-engineering efforts for IT and applications projects. When the requirements gathering process owner needs to validate whether or not a specific step involved in the process is necessary, BPM provides the necessary breakdown.

    What’s the benefit?

    Different individuals absorb information in a variety of ways. Visual representations of a process or set of steps tend to be well received by a large sub-set of individuals, making BPMs an effective analysis technique.

    This related Info-Tech blueprint provides an extremely thorough overview of how to leverage BPM and process improvement approaches.

    Use a SIPOC table to assist with zooming into a step in a BPM to help define requirements

    Build a Sales Report
    • Salesforce
    • Daily sales results
    • Sales by product
    • Sales by account rep
    • Receive customer orders
    • Process invoices
    • GL roll-up
    • Sales by region
    • Sales by rep
    • Director of Sales
    • CEO
    • Report is accurate
    • Report is timely
    • Balance to GL
    • Automated email notification

    Source: iSixSigma

    Example: Extract requirements from a BPM for a customer service solution

    Look at an example for a claims process, and focus on the Record Claim task (event).

    Task Input Output Risks Opportunities Condition Sample Requirements
    Record Claim Customer Email Case Record
    • An agent accidentally misses the email and the case is not submitted.
    • The contents of the email are not properly ported over into the case for the claim.
    • The claim is routed to the wrong recipient within the claims department.
    • There is translation risk when the claim is entered in another language from which it is received.
    • Reduce the time to populate a customer’s claim information into the case.
    • Automate the data capture and routing.
    • Pre-population of the case with the email contents.
    • Suggested routing based on the nature of the case.
    • Multi-language support.

    Business:

    • The system requires email-to-case functionality.

    Non-Functional:

    • The cases must be supported in multiple languages.
    • Case management requires Outlook integration.

    Functional:

    • The case must support the following information:
    • Title; Customer; Subject; Case Origin; Case Type; Owner; Status; Priority
    • The system must pre-populate the claims agent based on the nature of the case.

    The image is an excerpt from a table, with the title Claims Process at the top. The top row is labelled Customer Service, and includes a textbox that reads Record Claim. The bottom row is labelled Claims, and includes a textbox that reads Manage Claim. A downward-pointing arrow connects the two textboxes.

    Identify the preferred elicitation techniques in your requirements gathering SOP: outline order of operations

    Conducting elicitation typically takes the greatest part of the requirements management process. During elicitation, the designated BA(s) should be reviewing documentation, and conducting individual and group sessions with key stakeholders.

    • When eliciting requirements, it’s critical that your designated BAs use multiple techniques; relying only on stakeholder interviews while neglecting to conduct focus groups and joint whiteboarding sessions will lead to trouble.
    • Avoid makeshift solutions by focusing on target state requirements, but don’t forget about the basic user needs. These can often be neglected because one party assumes that the other already knows about them.
    • The SOP guide should provide your BAs with a shortlist of recommended/mandated elicitation techniques based on business scenarios (examples in this section). Your SOP should also suggest the order in which BAs use the techniques for initial elicitation. Generally, document review comes first, followed by group, individual, and observational techniques.

    Elicitation is an iterative process – requirements should be refined in successive steps. If you need more information in the analysis phases, don’t be afraid to go back and conduct more elicitation.

    Understand different elicitation techniques

    2.1.1 – 1 hour

    Input
    • Elicitation techniques
    Output
    • Elicitation technique assessment
    Materials
    • Whiteboard
    • Markers
    • Paper
    Participants
    • BAs
    1. For this exercise, review the following elicitation techniques: observation, document review, surveys, focus groups, and interviews. Use the material in the next slides to brainstorm around the following questions:
      1. What types of information can the technique be used to collect?
      2. Why would you use this technique over others?
      3. How will you prepare to use the technique?
      4. How will you document the technique?
      5. Is this technique suitable for all projects?
      6. When wouldn’t you use it?
    2. Have each group present their findings from the brainstorming to the group.

    Document any changes to the elicitation techniques in section 4.0 of the Requirements Gathering SOP and BA Playbook.

    Understand different elicitation techniques – Interviews

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Structured One-on-One Interview In a structured one-on-one interview, the BA has a fixed list of questions to ask the stakeholder and follows up where necessary. Structured interviews provide the opportunity to quickly home in on areas of concern that were identified during process mapping or group elicitation techniques. They should be employed with purpose, i.e. to receive specific stakeholder feedback on proposed requirements or to help identify systemic constraints. Generally speaking, they should be 30 minutes or less. Low Medium
    Unstructured One-on-One Interview In an unstructured one-on-one interview, the BA allows the conversation to flow free form. The BA may have broad themes to touch on but does not run down a specific question list. Unstructured interviews are most useful for initial elicitation, when brainstorming a draft list of potential requirements is paramount. Unstructured interviews work best with senior stakeholders (sponsors or power users), since they can be time consuming if they’re applied to a large sample size. It’s important for BAs not to stifle open dialogue and allow the participants to speak openly. They should be 60 minutes or less. Medium Low
    Info-Tech Insight

    Interviews should be used with high-value targets. Those who receive one-on-one face time can help generate good requirements, as well as allow effective communication around requirements at a later point (i.e. during the analysis and validation phases).

    Understand the diverse approaches for interviews

    Use a clear interview approach to guide the preparation, facilitation styles, participants, and interview schedules you manage for a specific project.

    Depending on your stakeholder audience and interview objectives, apply one or more of the following approaches to interviews.

    Interview Approaches

    • Unstructured
    • Semi-structured
    • Structured

    The Benefits of Interviews

    Fosters direct engagement

    IT is able to hear directly from stakeholders about what they are looking to do with a solution and the level of functionality that they expect from it.

    Offers greater detail

    With interviews, a greater degree of insight can be gained by leveraging information that wouldn’t be collected through traditional surveys. Face-to-face interactions provide thorough answers and context that helps inform requirements.

    Removes ambiguity

    Face-to-face interactions allow opportunities for follow-up around ambiguous answers. Clarify what stakeholders are looking for and expect in a project.

    Enables stakeholder management

    Interviews are a direct line of communication with a project stakeholder. They provide input and insight, and help to maintain alignment, plan next steps, and increase awareness within the IT organization.

    Select an interview structure based on project objectives and staff types

    Consider stakeholder types and characteristics, in conjunction with the best way to maximize time, when selecting which of the three interview structures to leverage during the elicitation phase of requirements gathering.

    Structured Interviews

    • Interviews conducted using this structure are modelled after the typical Q&A session.
    • The interviewer asks the participant a variety of closed-ended questions.
    • The participant’s response is limited to the scope of the question.

    Semi-Structured Interviews

    • The interviewer may prepare a guide, but it acts as more of an outline.
    • The goal of the interview is to foster and develop conversation.
    • Participants have the ability to answer questions on broad topics without compromising the initial guide.

    Unstructured Interviews

    • The interviewer may have a general interview guide filled with open-ended questions.
    • The objective of the questions is to promote discussion.
    • Participants may discuss broader themes and topics.

    Select the best interview approach

    Review the following questions to determine what interview structure you should utilize. If you answer the question with “Yes,” then follow the corresponding recommendations for the interview elements.

    Question Structure Type Facilitation Technique # of Participants
    Do you have to interview multiple participants at once because of time constraints? Semi-structured Discussion 1+
    Does the business or stakeholders want you to ask specific questions? Structured Q&A 1
    Have you already tried an unsuccessful survey to gather information? Semi-structured Discussion 1+
    Are you utilizing interviews to understand the area? Unstructured Discussion 1+
    Do you need to gather requirements for an immediate project? Structured Q&A 1+

    Decisions to make for interviews

    Interviews should be used with high-value targets. Those who receive one-on-one face time can help generate good requirements and allow for effective communication around requirements during the analysis and validation stages.

    Who to engage?

    • Individuals with an understanding of the project scope, constraints and considerations, and high-level objectives.
    • Project stakeholders from across different functional units to solicit a varied set of requirement inputs.

    How to engage?

    • Approach selected interview candidate(s) with a verbal invitation to participate in the requirements gathering process for [Project X].
    • Take the initiative to book time in the candidate’s calendar. Include in your calendar invitation a description of the preparation required for the interview, the anticipated outputs, and a brief timeline agenda for the interview itself.

    How to drive participant engagement?

    • Use introductory interview questions to better familiarize yourself with the interviewee and to create an environment in which the individual feels welcome and at ease.
    • Once acclimatized, ensure that you hold the attention of the interviewee by providing further probing, yet applicable, interview questions.

    Manage each point of the interaction in the interview process

    Interviews generally follow the same workflow regardless of which structure you select. You must manage the process to ensure that the interview runs smoothly and results in an effective gathering requirements process.

    1. Prep Schedule
      • Recommended Actions
        • Send an email with a proposed date and time for the meeting.
        • Include an overview of what you will be discussing.
        • Mention if other people will be joining (if group interview).
    2. Meeting Opening
      • Recommended Actions
        • Provide context around the meeting’s purpose and primary focal points.
        • Let interviewee(s) know how long the interview will last.
        • Ask if they have any blockers that may cause the meeting to end early.
    3. Meeting Discussion
      • Recommended Actions
        • Ask questions and facilitate discussion in accordance with the structure you have selected.
        • Ensure that the meeting’s dialogue is being either recorded using written notes (if possible) or a voice recorder.
    4. Meeting Wrap-Up
      • Recommended Actions
        • Provide a summary of the big findings and what was agreed upon.
        • Outline next steps or anything else you will require from the participant.
        • Let the interviewee(s) know that you will follow up with interview notes, and will require feedback from them.
    5. Meeting Follow-Up
      • Recommended Actions
        • Send an overview of what was covered and agreed upon during the interview.
        • Show the mock-ups of your work based on the interview, and solicit feedback.
        • Give the interviewee(s) the opportunity to review your notes or recording and add value where needed.

    Solve the problem before it occurs with interview troubleshooting techniques

    The interview process may grind to a halt due to challenging situations. Below are common scenarios and corresponding troubleshooting techniques to get your interview back on track.

    Scenario Technique
    Quiet interviewee Begin all interviews by asking courteous and welcoming questions. This technique will warm the interviewee up and make them feel more comfortable. Ask prompting questions during periods of silence in the interview. Take note of the answers provided by the interviewee in your interview guide, along with observations and impact statements that occur throughout the duration of the interview process.
    Disgruntled interviewee Avoid creating a hostile environment by eliminating the interviewee’s perception that you are choosing to focus on issues that the interviewee feels will not be resolved. Ask questions to contextualize the issue. For example, ask why they feel a particular way about the issue, and determine whether they have valid concerns that you can resolve.
    Interviewee has issues articulating their answer Encourage the interviewee to use a whiteboard or pen and paper to kick start their thought process. Make sure you book a room with these resources readily available.

    Understand different elicitation techniques – Observation

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Casual Observation The process of observing stakeholders performing tasks where the stakeholders are unaware they are being observed. Capture true behavior through observation of stakeholders performing tasks without informing them they are being observed. This information can be valuable for mapping business process; however, it is difficult to isolate the core business activities from unnecessary actions. Low Medium
    Formal Observation The process of observing stakeholders performing tasks where the stakeholders are aware they are being observed. Formal observation allows BAs to isolate and study the core activities in a business process because the stakeholder is aware they are being observed. Stakeholders may become distrusting of the BA and modify their behavior if they feel their job responsibilities or job security are at risk Low Medium

    Info-Tech Insight

    Observing stakeholders does not uncover any information about the target state. Be sure to use contextual observation in conjunction with other techniques to discover the target state.

    Understand different elicitation techniques – Surveys

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Closed-Response Survey A survey that has fixed responses for each answer. A Likert-scale (or similar measures) can be used to have respondents evaluate and prioritize possible requirements. Closed response surveys can be sent to large groups and used to quickly gauge user interest in different functional areas. They are easy for users to fill out and don’t require a high investment of time. However, their main deficit is that they are likely to miss novel requirements not listed. As such, closed response surveys are best used after initial elicitation or brainstorming to validate feature groups. Low Medium
    Open-Response Survey A survey that has open-ended response fields. Questions are fixed, but respondents are free to populate the field in their own words. Open-response surveys take longer to fill out than closed, but can garner deeper insights. Open-response surveys are a useful supplement (and occasionally replacement) for group elicitation techniques, like focus groups, when you need to receive an initial list of requirements from a broad cross-section of stakeholders. Their primary shortcoming is the analyst can’t immediately follow up on interesting points. However, they are particularly useful for reaching stakeholders who are unavailable for individual one-on-ones or group meetings. Low Medium

    Info-Tech Insight

    Surveys can be useful mechanisms for initial drafting of raw requirements (open-response) and gauging user interest in proposed requirements or feature sets (closed-response). However, they should not be the sole focus of your elicitation program due to lack of interactivity and two-way dialogue with the BA.

    Be aware: Know the implications of leveraging surveys

    What are surveys?

    Surveys take a sample population’s written responses for data collection. Survey respondents can identify themselves or choose to remain anonymous. Anonymity removes the fear of repercussions for giving critical responses to sensitive topics.

    Who needs to be involved?

    Participants of a survey include the survey writer, respondent(s), and results compiler. There is a moderate amount of work that comes from both the writer and compiler, with little work involved on the end of the respondent.

    What are the benefits?

    The main benefit of surveys is their ability to reach large population groups and segments without requiring personal interaction, thus saving money. Surveys are also very responsive and can be created and modified rapidly to address needs as they arise on an on-going basis.

    When is it best to employ a survey method?

    Surveys are most valuable when completed early in the requirements gathering stage.

    Intake and Scoping → Requirements Gathering → Solution Design → Development/ Procurement → Implementation/ Deployment

    When a project is announced, develop surveys to gauge what users consider must-have, should-have, and could-have requirements.

    Use surveys to profile the demand for specific requirements.

    It is often difficult to determine if requirements are must haves or should haves. Surveys are a strong method to assist in narrowing down a wide range of requirements.

    • If all survey respondents list the same requirement, then that requirement is a must have.
    • If no participants mention a requirement, then that requirement is not likely to be important to project success.
    • If the results are scattered, it could be that the organization is unsure of what is needed.

    Are surveys worth the time and effort? Most of the time.

    Surveys can generate insights. However, there are potential barriers:

    • Well-constructed surveys are difficult to make – asking the right questions without being too long.
    • Participants may not take surveys seriously, giving non-truthful or half-hearted answers.

    Surveys should only be done if the above barriers can easily be overcome.

    Scenario: Survey used to gather potential requirements

    Scenario

    There is an unclear picture of the business needs and functional requirements for a solution.

    Survey Approach

    Use open-ended questions to allow respondents to propose requirements they see as necessary.

    Sample questions

    • What do you believe _______ (project) should include to be successful?
    • How can _______ (project) be best made for you?
    • What do you like/dislike about ________ (process that the project will address)?

    What to do with your results

    Take a step back

    If you are using surveys to elicit a large number of requirements, there is probably a lack of clear scope and vision. Focus on scope clarification. Joint development sessions are a great technique for defining your scope with SMEs.

    Moving ahead

    • Create additional surveys. Additional surveys can help narrow down the large list of requirements. This process can be reiterated until there is a manageable number of requirements.
    • Move onto interviews. Speak directly with the users to get a grasp of the importance of the requirements taken from surveys.

    Employ survey design best practices

    Proper survey design determines how valuable the responses will be. Review survey principles released by the University of Wisconsin-Madison.

    Provide context

    Include enough detail to contextualize questions to the employee’s job duties.

    Where necessary:

    • Include conditions
    • Timeline considerations
    • Additional pertinent details

    Give clear instructions

    When introducing a question identify if it should be answered by giving one answer, multiple answers, or a ranking of answers.

    Avoid IT jargon

    Ensure the survey’s language is easily understood.

    When surveying colleagues from the business use their own terms, not IT’s.

    E.g. laptops vs. hardware

    Saying “laptops” is more detailed and is a universal term.

    Use ranges

    Recommended:

    In a month your Outlook fails:

    • 1-3 times
    • 4-7 times
    • 7+ times

    Not Recommended:

    Your Outlook fails:

    • Almost never
    • Infrequently
    • Frequently
    • Almost always

    Keep surveys short

    Improve responses and maintain stakeholder interest by only including relevant questions that have corresponding actions.

    Recommended: Keep surveys to ten or less prompts.

    Scenario: Survey used to narrow down requirements

    Scenario

    There is a large list of requirements and the business is unsure of which ones to further pursue.

    Survey Approach

    Use closed-ended questions to give degrees of importance and rank requirements.

    Sample questions

    • How often do you need _____ (requirement)?
      • 1-3 times a week; 4-6 times a week; 7+ times a week
    • Given the five listed requirements below, rank each requirement in order of importance, with 1 being the most important and 5 being the least important.
    • On a scale from 1-5, how important is ________ (requirement)?
      • 1 – Not important at all; 2 – Would provide minimal benefit; 3 – Would be nice to have; 4 – Would provide substantial benefit; 5 – Crucial to success

    What to do with your results

    Determine which requirements to further explore

    Avoid simply aggregating average importance and using the highest average as the number-one priority. Group the highest average importance requirements to be further explored with other elicitation techniques.

    Moving ahead

    The group of highly important requirements needs to be further explored during interviews, joint development sessions, and rapid development sessions.

    Scenario: Survey used to discover crucial hidden requirements

    Scenario

    The business wanted a closer look into a specific process to determine if the project could be improved to better address process issues.

    Survey Approach

    Use open-ended questions to allow employees to articulate very specific details of a process.

    Sample questions

    • While doing ________ (process/activity), what part is the most frustrating to accomplish? Why?
    • Is there any part of ________ (process/activity) that you feel does not add value? Why?
    • How would you improve _________ (process/activity)?

    What to do with your results

    Set up prototyping

    Prototype a portion with the new requirement to see if it meets the user’s needs. Joint application development and rapid development sessions pair developers and users together to collaboratively build a solution.

    Next steps

    • Use interviews to begin solution mapping. Speak to SMEs and the users that the requirement would affect. Understand how to properly incorporate the discovered requirement(s) into the solution.
    • Create user stories. User stories allow developers to step into the shoes of the users. Document the user’s requirement desires and their reason for wanting it. Give those user stories to the developers.

    Explore mediums for survey delivery

    Online

    Free online surveys offer quick survey templates but may lack customization. Paid options include customizable features. Studies show that most participants find web-based surveys more appealing, as web surveys tend to have a higher rate of completion.

    Potential Services (Not a comprehensive list)

    SurveyMonkey – free and paid options

    Good Forms – free options

    Ideal for:

    • Low complexity surveys
    • High complexity surveys
    • Quick responses
    • Low cost (free survey options)

    Paper

    Paper surveys offer complete customizability. However, paper surveys take longer to distribute and record, and are also more expensive to administer.

    Ideal for:

    • Low complexity surveys
    • High complexity surveys
    • Quick responses
    • Low cost

    Internally-developed

    Internally-developed surveys can be distributed via the intranet or email. Internal surveys offer the most customization. Cost is the creator’s time, but cost can be saved on distribution versus paper and paid online surveys.

    Ideal for:

    • Low complexity surveys
    • High complexity surveys
    • Quick responses
    • Low cost (if created quickly)

    Understand different elicitation techniques – Focus Groups

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Focus Group Focus groups are sessions held between a small group (typically ten individuals or less) and an experienced facilitator who leads the conversation in a productive direction. Focus groups are highly effective for initial requirements brainstorming. The best practice is to structure them in a cross-functional manner to ensure multiple viewpoints are represented, and the conversation doesn’t become dominated by one particular individual. Facilitators must be wary of groupthink in these meetings (i.e. the tendency to converge on a single POV). Medium Medium
    Workshop Workshops are larger sessions (typically ten people or more) that are led by a facilitator, and are dependent on targeted exercises. Workshops may be occasionally decomposed into smaller group sessions. Workshops are highly versatile: they can be used for initial brainstorming, requirement prioritization, constraint identification, and business process mapping. Typically, the facilitator will use exercises or activities (such as whiteboarding, sticky note prioritization, role-playing, etc.) to get participants to share and evaluate sets of requirements. The main downside to workshops is a high time commitment from both stakeholders and the BA. Medium High

    Info-Tech Insight

    Group elicitation techniques are most useful for gathering a wide spectrum of requirements from a broad group of stakeholders. Individual or observational techniques are typically needed for further follow-up and in-depth analysis with critical power users or sponsors.

    Conduct focus groups and workshops

    There are two specific types of group interviews that can be utilized to elicit requirements: focus groups and workshops. Understand each type’s strengths and weaknesses to determine which is better to use in certain situations.

    Focus Groups Workshops
    Description
    • Small groups are encouraged to speak openly about topics with guidance from a facilitator.
    • Larger groups are led by a facilitator to complete target exercises that promote hands-on learning.
    Strengths
    • Highly effective for initial requirements brainstorming.
    • Insights can be explored in depth.
    • Any part of the requirements gathering process can be done in a workshop.
    • Use of activities can increase the learning beyond simple discussions.
    Weaknesses
    • Loudest voice in the room can induce groupthink.
    • Discussion can easily veer off topic.
    • Extremely difficult to bring together such a large group for extended periods of time.
    Facilitation Guidance
    • Make sure the group is structured in a cross-functional manner to ensure multiple viewpoints are represented.
    • If the group is too large, break the members into smaller groups. Try putting together members who would not usually interact.

    Solution mapping and joint review sessions should be used for high-touch, high-rigor BPM-centric projects

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Solution Mapping Session A one-on-one session to outline business processes. BPM methods are used to write possible target states for the solution on a whiteboard and to engineer requirements based on steps in the model. Solution mapping should be done with technically savvy stakeholders with a firm understanding of BPM methodologies and nomenclature. Generally, this type of elicitation method should be done with stakeholders who participated in tier one elicitation techniques who can assist with reverse-engineering business models into requirement lists. Medium Medium
    Joint Requirements Review Session This elicitation method is sometimes used as a last step prior to moving to formal requirements analysis. During the review session, the rough list of requirements is vetted and confirmed with stakeholders. A one-on-one (or small group) requirements review session gives your BAs the opportunity to ensure that what was recorded/transcribed during previous one-on-ones (or group elicitation sessions) is materially accurate and representative of the intent of the stakeholder. This elicitation step allows you to do a preliminary clean up of the requirements list before entering the formal analysis phase. Low Low

    Info-Tech Insight

    Solution mapping and joint requirements review sessions are more advanced elicitation techniques that should be employed after preliminary techniques have been utilized. They should be reserved for technically sophisticated, high-value stakeholders.

    Interactive whiteboarding and joint development sessions should be leveraged for high-rigor BPM-based projects

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Interactive White- boarding A group session where either a) requirements are converted to BPM diagrams and process flows, or b) these flows are reverse engineered to distil requirement sets. While the focus of workshops and focus groups is more on direct requirements elicitation, interactive whiteboarding sessions are used to assist with creating initial solution maps (or reverse engineering proposed solutions into requirements). By bringing stakeholders into the process, the BA benefits from a greater depth of experience and access to SMEs. Medium Medium
    Joint Application Development (JAD) JAD sessions pair end-user teams together with developers (and BA facilitators) to collect requirements and begin mapping and developing prototypes directly on the spot. JAD sessions fit well with organizations that use Agile processes. They are particularly useful when the overall project scope is ambiguous; they can be used for project scoping, requirements definition, and initial prototyping. JAD techniques are heavily dependent on having SMEs in the room – they should preference knowledge power users over the “rank and file.” High High

    Info-Tech Insight

    Interactive whiteboarding should be heavily BPM-centric, creating models that link requirements to specific workflow activities. Joint development sessions are time-consuming but create greater cohesion and understanding between BAs, developers, and SMEs.

    Rapid application development sessions add some Agile aspects to requirements elicitation

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Rapid Application Development A form of prototyping, RAD sessions are akin to joint development sessions but with greater emphasis on back-and-forth mock-ups of the proposed solution. RAD sessions are highly iterative – requirements are gathered in sessions, developers create prototypes offline, and the results are validated by stakeholders in the next meeting. This approach should only be employed in highly Agile-centric environments. High High

    For more information specific to using the Agile development methodology, refer to the project blueprint Implement Agile Practices That Work.

    The role of the BA differs with an Agile approach to requirements gathering. A traditional BA is a subset of the Agile BA, who typically serves as product owner. Agile BAs have elevated responsibilities that include bridging communication between stakeholders and developers, prioritizing and detailing the requirements, and testing solutions.

    Overview of JAD and RDS techniques (Part 1)

    Use the following slides to gain a thorough understanding of both JAD and rapid development sessions (RDS) to decide which fits your project best.

    Joint Application Development Rapid Development Sessions
    Description JAD pairs end users and developers with a facilitator to collect requirements and begin solution mapping to create an initial prototype. RDS is an advanced approach to JAD. After an initial meeting, prototypes are developed and validated by stakeholders. Improvements are suggested by stakeholders and another prototype is created. This process is iterated until a complete solution is created.
    Who is involved? End users, SMEs, developers, and a facilitator (you).
    Who should use this technique? JAD is best employed in an Agile organization. Agile organizations can take advantage of the high amount of collaboration involved. RDS requires a more Agile organization that can effectively and efficiently handle impromptu meetings to improve iterations.
    Time/effort versus value JAD is a time/effort-intensive activity, requiring different parties at the same time. However, the value is well worth it. JAD provides clarity for the project’s scope, justifies the requirements gathered, and could result in an initial prototype. RDS is even more time/effort intensive than JAD. While it is more resource intensive, the reward is a more quickly developed full solution that is more customized with fewer bugs.

    Overview of JAD and RDS techniques (Part 2)

    Joint Application Development

    Timeline

    Projects that use JAD should not expect dramatically quicker solution development. JAD is a thorough look at the elicitation process to make sure that the right requirements are found for the final solution’s needs. If done well, JAD eliminates rework.

    Engagement

    Employees vary in their project engagement. Certain employees leverage JAD because they care about the solution. Others are asked for their expertise (SMEs) or because they perform the process often and understand it well.

    Implications

    JAD’s thorough process guarantees that requirements gathering is done well.

    • All requirements map back to the scope.
    • SMEs are consulted throughout the duration of the process.
    • Prototyping is only done after final solution mapping is complete.

    Rapid Development Sessions

    Timeline

    Projects that use RDS can either expect quicker or slower requirements gathering depending on the quality of iteration. If each iteration solves a requirement issue, then one can expect that the solution will be developed fairly rapidly. If the iterations fail to meet requirements the process will be quite lengthy.

    Engagement

    Employees doing RDS are typically very engaged in the project and play a large role in helping to create the solution.

    Implications

    RDS success is tied to the organization’s ability to collaborate. Strong collaboration will lead to:

    • Fewer bugs as they are eliminated in each iteration.
    • A solution that is highly customized to meet the user’s needs.

    Poor collaboration will lead to RDS losing its full value.

    When is it best to use JAD?

    JAD is best employed in an Agile organization for application development and selection. This technique best serves relatively complicated, large-scale projects that require rapid or sequential iterations on a prototype or solution as a part of requirements gathering elicitation. JAD effectuates each step in the elicitation process well, from initial elicitation to narrowing down requirements.

    When tackling a project type you’ve never attempted

    Most requirement gathering professionals will use their experience with project type standards to establish key requirements. Avoid only relying on standards when tackling a new project type. Apply JAD’s structured approach to a new project type to be thorough during the elicitation phase.

    In tandem with other elicitation techniques

    While JAD is an overarching requirements elicitation technique, it should not be the only one used. Combine the strengths of other elicitation techniques for the best results.

    When is it best to use RDS?

    RDS is best utilized when one, but preferably both, of the below criteria is met.

    When the scope of the project is small to medium sized

    RDS’ strengths lie in being able to tailor-make certain aspects of the solution. If the solution is too large, tailor-made sections are impossible as multiple user groups have different needs or there is insufficient resources. When a project is small to medium sized, developers can take the time to custom make sections for a specific user group.

    When most development resources are readily available

    RDS requires developers spending a large amount of time with users, leaving less time for development. Having developers at the ready to take on users’ improvement maintains the effectiveness of RDS. If the same developer who speaks to users develops the entire iteration, the process would be slowed down dramatically, losing effectiveness.

    Techniques to compliment JAD/RDS

    1. Unstructured conversations

    JAD relies on unstructured conversations to clarify scope, gain insights, and discuss prototyping. However, a structure must exist to guarantee that all topics are discussed and meetings are not wasted.

    2. Solution mapping and interactive white-boarding

    JAD often involves visually illustrating how high-level concepts connect as well as prototypes. Use solution mapping and interactive whiteboarding to help users and participants better understand the solution.

    3. Focus groups

    Having a group development session provides all the benefits of focus groups while reducing time spent in the typically time-intensive JAD process.

    Plan how you will execute JAD

    Before the meeting

    1. Prepare for the meeting

    Email all parties a meeting overview of topics that will be discussed.

    During the meeting

    2. Discussion

    • Facilitate the conversation according to what is needed (e.g. skip scope clarification if it is already well defined).
    • Leverage solution mapping and other visual aids to appeal to all users.
    • Confirm with SMEs that requirements will meet the users’ needs.
    • Discuss initial prototyping.

    After the meeting

    3. Wrap-up

    • Provide a key findings summary and set of agreements.
    • Outline next steps for all parties.

    4. Follow-up

    • Send the mock-up of any agreed upon prototype(s).
    • Schedule future meetings to continue prototyping.

    JAD provides a detail-oriented view into the elicitation process. As a facilitator, take detailed notes to maximize the outputs of JAD.

    Plan how you will execute RDS

    Before the meeting

    1. Prepare for the meeting

    • Email all parties a meeting overview.
    • Ask employees and developers to bring their vision of the solution, regardless of its level of detail.

    During the meeting

    2. Hold the discussion

    • Facilitate the conversation according to what is needed (e.g. skip scope clarification if already well defined).
    • Have both parties explain their visions for the solution.
    • Talk about initial prototype and current iteration.

    After the meeting

    3. Wrap-up

    • Provide a key findings summary and agreements.
    • Outline next steps for all parties.

    4. Follow-up

    • Send the mock-up of any agreed upon prototype(s).
    • Schedule future meeting to continue prototyping.

    RDS is best done in quick succession. Keep in constant contact with both employees and developers to maintain positive momentum from a successful iteration improvement.

    Develop a tailored facilitation guide for JAD and RDS

    JAD/RDS are both collaborative activities, and as with all group activities, issues are bound to arise. Be proactive and resolve issues using the following guidelines.

    Scenario Technique
    Employee and developer visions for the solution don’t match up Focus on what both solutions have in common first to dissolve any tension. Next, understand the reason why both parties have differences. Was it a difference in assumptions? Difference in what is a requirement? Once the answer has been determined, work on bridging the gaps. If there is no resolution, appoint a credible authority (or yourself) to become the final decision maker.
    Employee has difficulty understanding the technical aspect of the developer’s solution Translate the developer’s technical terms into a language that the employee understands. Encourage the employee to ask questions to further their understanding.
    Employee was told that their requirement or proposed solution is not feasible Have a high-level member of the development team explain how the requirement/solution is not feasible. If it’s possible, tell the employee that the requirement can be done in a future release and keep them updated.

    Harvest documentation from past projects to uncover reusable requirements

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Legacy System Manuals The process of reviewing documentation and manuals associated with legacy systems to identify constraints and exact requirements for reuse. Reviewing legacy systems and accompanying documentation is an excellent way to gain a preliminary understanding of the requirements for the upcoming application. Be careful not to overly rely on requirements from legacy systems; if legacy systems have a feature set up one way, this does not mean it should be set up the same way on the upcoming application. If an upcoming application must interact with other systems, it is ideal to understand the integration points early. None High
    Historical Projects The process of reviewing documentation from historical projects to extract reusable requirements. Previous project documentation can be a great source of information and historical lessons learned. Unfortunately, historical projects may not be well documented. Historical mining can save a great deal of time; however, the fact that it was done historically does not mean that it was done properly. None High

    Info-Tech Insight

    Document mining is a laborious process, and as the term “mining” suggests the yield will vary. Regardless of the outcome, document mining must be performed and should be viewed as an investment in the requirements gathering process.

    Extract internal and external constraints from business rules, policies, and glossaries

    Technique Description Assessment and Best Practices Stakeholder Effort BA Effort
    Rules The process of extracting business logic from pre-existing business rules (e.g. explicit or implied workflows). Stakeholders may not be fully aware of all of the business rules or the underlying rationale for the rules. Unfortunately, business rule documents can be lengthy and the number of rules relevant to the project will vary. None High
    Glossary The process of extracting terminology and definitions from glossaries. Terminology and definitions do not directly lead to the generation of requirements. However, reviewing glossaries will allow BAs to better understand domain SMEs and interpret their requirements. None High
    Policy The process of extracting business logic from business policy documents (e.g. security policy and acceptable use). Stakeholders may not be fully aware of the different policies or the underlying rationale for why they were created. Going directly to the source is an excellent way to identify constraints and requirements. Unfortunately, policies can be lengthy and the number of items relevant to the project will vary. None High

    Info-Tech Insight

    Document mining should be the first type of elicitation activity that is conducted because it allows the BA to become familiar with organizational terminology and processes. As a result, the stakeholder facing elicitation sessions will be more productive.

    Review the different types of formal documentation (Part 1)

    1. Glossary

    Extract terminology and definitions from glossaries. A glossary is an excellent source to understand the terminology that SMEs will use.

    2. Policy

    Pull business logic from policy documents (e.g. security policy and acceptable use). Policies generally have mandatory requirements for projects, such as standard compliance requirements.

    3. Rules

    Review and reuse business logic that comes from pre-existing rules (e.g. explicit or implied workflows). Like policies, rules often have mandatory requirements or at least will require significant change for something to no longer be a requirement.

    Review the different types of formal documentation (Part 2)

    4. Legacy System

    Review documents and manuals of legacy systems, and identify reusable constraints and requirements. Benefits include:

    • Gain a preliminary understanding of general organizational requirements.
    • Ease of solution integration with the legacy system if needed.

    Remember to not use all of the basic requirements of a legacy system. Always strive to find a better, more productive solution.

    5. Historical Projects

    Review documents from historical projects to extract reusable requirements. Lessons learned from the company’s previous projects are more applicable than case studies. While historical projects can be of great use, consider that previous projects may not be well documented.

    Drive business alignment as an output from documentation review

    Project managers frequently state that aligning projects to the business goals is a key objective of effective project management; however, it is rarely carried out throughout the project itself. This gap is often due to a lack of understanding around how to create true alignment between individual projects and the business needs.

    Use company-released statements and reports

    Extract business wants and needs from official statements and reports (e.g. press releases, yearly reports). Statements and reports outline where the organization wants to go which helps to unearth relevant project requirements.

    Ask yourself, does the project align to the business?

    Documented requirements should always align with the scope of the project and the business objectives. Refer back frequently to your set of gathered requirements to check if they are properly aligned and ensure the project is not veering away from the original scope and business objectives.

    Don’t just read for the sake of reading

    The largest problem with documentation review is that requirements gathering professionals do it for the sake of saying they did it. As a result, projects often go off course due to not aligning to business objectives following the review sessions.

    • When reading a document, take notes to avoid projects going over time and budget and business dissatisfaction. Document your notes and schedule time to review the set of complete notes with your team following the individual documentation review.

    Select elicitation techniques that match the elicitation scenario

    There is a time and place for each technique. Don’t become too reliant on the same ones. Diversify your approach based on the elicitation goal.

    A chart showing Elicitation Scenarios and Techniques, with each marked for their efficacy.

    This table shows the relative strengths and weaknesses of each elicitation technique compared against the five basic elicitation scenarios.

    A typical project will encounter most of the elicitation scenarios. Therefore, it is important to utilize a healthy mix of techniques to optimize effectiveness.

    Very Strong = Very Effective

    Strong = Effective

    Medium = Somewhat Effective

    Weak = Minimally Effective

    Very Weak = Not Effective

    Record the approved elicitation techniques that your BAs should use

    2.1.2 – 30 minutes

    Input
    • Approved elicitation techniques
    Output
    • Execution procedure
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders
    • BAs

    Record the approved elicitation methods and best practices for each technique in the SOP.

    Identify which techniques should be utilized with the different stakeholder classes.

    Segment the different techniques based by project complexity level.

    Use the following chart to record the approved techniques.

    Stakeholder L1 Projects L2 Projects L3 Projects L4 Projects
    Senior Management Structured Interviews
    Project Sponsor Unstructured Interviews
    SME (Business) Focus Groups Unstructured Interviews
    Functional Manager Focus Groups Structured Interviews
    End Users Surveys; Focus Groups; Follow-Up Interviews; Observational Techniques

    Document the output from this exercise in section 4.0 of the Requirements Gathering SOP and BA Playbook.

    Confirm initial elicitation notes with stakeholders

    Open lines of communication with stakeholders and keep them involved in the requirements gathering process; confirm the initial elicitation before proceeding.

    Confirming the notes from the elicitation session with stakeholders will result in three benefits:

    1. Simple miscommunications can compound and result in costly rework if they aren’t caught early. Providing stakeholders with a copy of notes from the elicitation session will eliminate issues before they manifest themselves in the project.
    2. Stakeholders often require an absorption period after elicitation sessions to reflect on the meeting. Following up with stakeholders gives them an opportunity to clarify, enhance, or change their responses.
    3. Stakeholders will become disinterested in the project (and potentially the finished application) if their involvement in the project ends after elicitation. Confirming the notes from elicitation keeps them involved in the process and transitions stakeholders into the analysis phase.

    This is the Confirm stage of the Confirm, Verify, Approve process.

    “Are these notes accurate and complete?”

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.1 Understand the different elicitation techniques

    An analyst will walk you through the different elicitation techniques including observations, document reviews, surveys, focus groups, and interviews, and highlight the level of effort required for each.

    2.1.2 Select and record the approved elicitation techniques

    An analyst will facilitate the discussion to determine which techniques should be utilized with the different stakeholder classes.

    Step 2.2: Structure Elicitation Output

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:
    • Build use-case models.
    • Practice using elicitation techniques with business stakeholders to build use-case models.
    • Practice leveraging user stories to convey requirements.
    This step involves the following participants:
    • BAs
    • Business stakeholders
    Outcomes of this step
    • Understand the value of use-case models for requirements gathering.
    • Practice different techniques for building use-case models with stakeholders.

    Record and capture requirements in solution-oriented formats

    Unstructured notes for each requirement are difficult to manage and create ambiguity. Using solution-oriented formats during elicitation sessions ensures that the content can be digested by IT and business users.

    This table shows common solution-oriented formats for recording requirements. Determine which formats the development team and BAs are comfortable using and create a list of acceptable formats to use in projects.

    Format Description Examples
    Behavior Diagrams These diagrams describe what must happen in the system. Business Process Models, Swim Lane Diagram, Use Case Diagram
    Interaction Diagrams These diagrams describe the flow and control of data within a system. Sequence Diagrams, Entity Diagrams
    Stories These text-based representations take the perspective of a user and describe the activities and benefits of a process. Scenarios, User Stories

    Info-Tech Insight

    Business process modeling is an excellent way to visually represent intricate processes for both IT and business users. For complex projects with high business significance, business process modeling is the best way to capture requirements and create transformational gains.

    Use cases give projects direction and guidance from the business perspective

    Use Case Creation Process

    Define Use Cases for Each Stakeholder

    • Each stakeholder may have different uses for the same solution. Identify all possible use cases attributed to the stakeholders.
    • All use cases are possible test case scenarios.

    Define Applications for Each Use Case

    • Applications are the engines behind the use cases. Defining the applications to satisfy use cases will pinpoint the areas where development or procurement is necessary.

    Consider the following guidelines:

    1. Don’t involve systems in the use cases. Use cases just identify the key end-user interaction points that the proposed solution is supposed to cover.
    2. Some use cases are dependent on other use cases or multiple stakeholders may be involved in a single use case. Depending on the availability of these use cases, they can either be all identified up front (Waterfall) or created at various iterations (Agile).
    3. Consider the enterprise architecture perspective. Existing enterprise architecture designs can provide a foundation of current requirement mappings and system structure. Reuse these resources to reduce efforts.
    4. Avoid developing use cases in isolation. Reusability is key in reducing designing efforts. By involving multiple departments, requirement clashes can be avoided and the likelihood of reusability increases.

    Develop practical use cases to help drive the development effort in the right direction

    Evaluating the practicality and likelihood of use cases is just as important as developing them.

    Use cases can conflict with each other. In certain situations, specific requirements of these use cases may clash with one another even though they are functionally sound. Evaluate use-case requirements and determine how they satisfy the overall business need.

    Use cases are not necessarily isolated; they can be nested. Certain functionalities are dependent on the results of another action, often in a hierarchical fashion. By mapping out the expected workflows, BAs can determine the most appropriate way to implement.

    Use cases can be functionally implemented in many ways. There could be multiple ways to accomplish the same use case. Each of these needs to be documented so that functional testing and user documentation can be based on them.

    Nested Use Case Examples:

    Log Into Account ← Depends on (Nested) Ordering Products Online
    Enter username and password Complete order form
    Verify user is a real person Process order
    Send user forgotten password message Check user’s account
    Send order confirmation to user

    Build a use-case model

    2.2.1 – 45 minutes

    Input
    • Sub processes
    Output
    • Use case model
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders
    • BAs
    Demonstrate how to use elicitation techniques to build use cases for the project.
    1. Identify a sub-process to build the use-case model. Begin the exercise by giving a brief description of the purpose of the meeting.
    2. For each stakeholder, draw a stick figure on the board. Pose the question “If you need to do X, what is your first step?” Go through the process until the end goal and draw each step. Ensure that you capture triggers, causes, decision points, outcomes, tools, and interactions.
    3. Starting at the beginning of the diagram, go through each step again and check with stakeholders if the step can be broken down into more granular steps.
    4. Ask the stakeholder if there are any alternative flows that people use, or any exceptions to process steps. If there are, map these out on the board.
    5. Go back through each step and ask the stakeholder where the current process is causing them grief, and where modification should be made.
    6. Record this information in the Business Requirements Document Template.

    Build a use-case model

    2.2.1

    Example: Generate Letters

    Inspector: Log into system → Search for case → Identify recipient → Determine letter type → Print letter

    Admin: Receive letter from inspector → Package and mail letter

    Citizen: Receive letter from inspector

    Understand user stories and profiles

    What are they?

    User stories describe what requirement a user wants in the solution and why they want it. The end goal of a user story is to create a simple description of a requirement for developers.

    When to use them

    User stories should always be used in requirements gathering. User stories should be collected throughout the elicitation process. Try to recapture user stories as new project information is released to capture any changes in end-customer needs.

    What’s the benefit?

    User stories help capture target users, customers, and stakeholders. They also create a “face” for individual user requirements by providing user context. This detail enables IT leaders to associate goals and end objectives with each persona.

    Takeaway

    To better understand the characteristics driving user requirements, begin to map objectives to separate user personas that represent each of the project stakeholders.

    Are user stories worth the time and effort?

    Absolutely.

    A user’s wants and needs serve as a constant reminder to developers. Developers can use this information to focus on how a solution needs to accomplish a goal instead of only focusing on what goals need to be completed.

    Create customized user stories to guide or structure your elicitation output

    Instructions

    1. During surveys, interviews, and development sessions, ask participants the following questions:
      • What do you want from the solution?
      • Why do you want that?
    2. Separate the answer into an “I want to” and “So that” format.
      • For users who give multiple “I want to” and “So that” statements, separate them into their respective pairs.
    3. Place each story on a small card that can easily be given to developers.
    As a I want to So that Size Priority
    Developer Learn network and system constraints The churn between Operations and I will be reduced. 1 point Low

    Team member

    Increase the number of demonstrations I can achieve greater alignment with business stakeholders. 3 points High
    Product owner Implement a user story prioritization technique I can delegate stories in my product backlog to multiple Agile teams. 3 points Medium

    How to make an effective and compelling user story

    Keep your user stories short and impactful to ensure that they retain their impact.

    Follow a simple formula:

    As a [stakeholder title], I want to [one requirement] so that [reason for wanting that requirement].

    Use this template for all user stories. Other formats will undermine the point of a user story. Multiple requirements from a single user must be made into multiple stories and given to the appropriate developer. User stories should fit onto a sticky note or small card.

    Example

    As an: I want to: So that:
    Administrator Integrate with Excel File transfer won’t possibly lose information
    X Administrator Integrate with Excel and Word File transfer won’t possibly lose information

    While the difference between the two may be small, it would still undermine the effectiveness of a user story. Different developers may work on the integration of Excel or Word and may not receive this user story.

    Assign user stories a size and priority level

    Designate a size to user stories

    Size is an estimate of how many resources must be dedicated to accomplish the want. Assign a size to each user story to help determine resource allocation.

    Assign business priority to user stories

    Based on how important the requirement is to project success, assign each user story a rating of high, medium, or low. The priority given will dictate which requirements are completed first.

    Example:

    Scope: Design software to simplify financial reporting

    User Story Estimated Size Priority
    As an administrator, I want to integrate with Excel so that file transfer won’t possibly lose information. Low High
    As an administrator, I want to simplify graph construction so that I can more easily display information for stakeholders. High Medium

    Combine both size and priority to decide resource allocation. Low-size, high-priority tasks should always be done first.

    Group similar user stories together to create greater impact

    Group user stories that have the same requirement

    When collecting user stories, many will be centered around the same requirement. Group similar user stories together to show the need for that requirement’s inclusion in the solution.

    Even if it isn’t a must-have requirement, if the number of similar user stories is high enough, it would become the most important should-have requirement.

    Group together user stories such as these:
    As an I want So that
    Administrator To be able to create bar graphs Information can be more easily illustrated
    Accountant To be able to make pie charts Budget information can be visually represented

    Both user stories are about creating charts and would be developed similarly.

    Leave these user stories separate
    As an I want So that
    Administrator The program to auto-save Information won’t be lost during power outages
    Accountant To be able to save to SharePoint My colleagues can easily view and edit my work

    While both stories are about saving documents, the development of each feature is vastly different.

    Create customized user profiles

    User profiles are a way of grouping users based on a significant shared details (e.g. in the finance department, website user).

    Go beyond the user profile

    When creating the profile, consider more than the group’s name. Ask yourself the following questions:

    • What level of knowledge and expertise does this user profile have with this type of software?
    • How much will this user profile interact with the solution?
    • What degree of dependency will this user profile have on the solution?

    For example, if a user profile has low expertise but interacts and depends heavily on the program, a more thorough tutorial of the FAQ section is needed.

    Profiles put developers in user’s shoes

    Grouping users together helps developers put a face to the name. Developers can then more easily empathize with users and develop an end solution that is directly catered to their needs.

    Leverage group activities to break down user-story sizing techniques

    Work in groups to run through the following story-sizing activities.

    Planning Poker: This approach uses the Delphi method where members estimate the size of each user story by revealing numbered cards. These estimates are then discussed and agreed upon as a group.

    • Planning poker generates discussion about variances in estimates but dominant personalities may lead to biased results or groupthink.

    Team Sort: This approach can assist in expediting estimation when you are handling numerous user stories.

    • Bucket your user stories into sizes (e.g. extra-small, small, medium, large, and extra-large) based on an acceptable benchmark that may change from project to project.
    • Collaborate as a team to conclude the final size.
    • Next, translate these sizes into points.

    The graphic shows the two activities described, Planning Poker and Team Sort. In the Planning Poker image, 3 sets of cards are shown, with the numbers 13, 5, and 1 on the top of each set. At the bottom of the image are 7 cards, labelled with: 1, 2, 3, 5, 8, 13, 21. In the Team Sort section, there is an arrow pointing in both directions, representing a spectrum from XS to XL. Each size is assigned a point value: XS is 1; S is 3; M is 5; L is 10; and XL is 20. Cards with User Story # written on them are arranged along the spectrum.

    Create a product backlog to communicate business needs to development teams

    Use the product backlog to capture expected work and create a roadmap for the project by showing what requirements need to be delivered.

    How is the product owner involved?

    • The product owner is responsible for keeping in close contact with the end customer and making the appropriate changes to the product backlog as new ideas, insights, and impediments arise.
    • The product owner should have good communication with the team to make accurate changes to the product backlog depending on technical difficulties and needs for clarification.

    How do I create a product backlog?

    • Write requirements in user stories. Use the format: “As a (user role), I want (function) so that (benefit).” Identify end users and understand their needs.
    • Assign each requirement a priority. Decide which requirements are the most important to deliver. Ask yourself, “Which user story will create the most value?”

    What are the approaches to generate my backlog?

    • Team Brainstorming – The product owner, team, and scrum master work together to write and prioritize user stories in a single or a series of meetings.
    • Business Case – The product owner translates business cases into user stories as per the definition of “development ready.”

    Epics and Themes

    As you begin to take on larger projects, it may be advantageous to organize and group your user stories to simplify your release plan:

    • Epics are collections of similar user stories and are used to describe significant and large development initiatives.
    • Themes are collections of similar epics and are normally used to define high-level business objectives.

    To avoid confusion, the pilot product backlog will be solely composed of user stories.

    Example:

    Theme: Increase user exposure to corporate services through mobile devices
    Epic: Access corporate services through a mobile application Epic: Access corporate services through mobile website
    User Story: As a user, I want to find the closest office so that I can minimize travel time As a user, I want to find the closest office so that I can minimize travel time User Story: As a user, I want to submit a complaint so that I can improve company processes

    Simulate product backlog creation

    Overview

    Leverage Info-Tech’s Scrum Documentation Template, using the Backlog and Planning tab, to help walk you through this activity.

    Instructions

    1. Have your product owner describe the business objectives of the pilot project.
    2. Write the key business requirements as user stories.
    3. Based on your business value drivers, identify the business value of your user stories (high, medium, low).
    4. Have your team review the user stories and question the story’s value, priority, goal, and meaning.
    5. Break down the user stories if the feature or business goal is unclear or too large.
    6. Document the perceived business value of each user story, as well as the priority, goal, and meaning.

    Examples:

    As a citizen, I want to know about road construction so that I can save time when driving. Business Value: High

    As a customer, I want to find the nearest government office so that I can register for benefits. Business Value: Medium

    As a voter, I want to know what each candidate believes in so that I can make an informed decision. Business Value: High

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.2.1 Build use-case models

    An analyst will assist in demonstrating how to use elicitation techniques to build use-case models. The analyst will walk you through the table testing to visually map out and design process flows for each use case.

    Phase 3: Analyze and Validate Requirements

    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: Analyze and Validate Requirements

    Proposed Time to Completion: 1 week
    Step 3.1: Create Analysis Framework

    Start with an analyst kick off call:

    • Create policies for requirements categorization and prioritization.

    Then complete these activities…

    • Create functional requirements categories.
    • Consolidate similar requirements and eliminate redundancies.
    • Prioritize requirements.

    With these tools & templates:

    • Requirements Gathering Documentation Tool
    Step 3.2: Validate Business Requirements

    Review findings with analyst:

    • Establish best practices for validating the BRD with project stakeholders.

    Then complete these activities…

    • Right-size the BRD.
    • Present the BRD to business stakeholders.
    • Translate business requirements into technical requirements.
    • Identify testing opportunities.

    With these tools & templates:

    • Business Requirements Document Template
    • Requirements Gathering Testing Checklist

    Phase 3 Results & Insights:

    • Standardized frameworks for analysis and validation of business requirements

    Step 3.1: Create Analysis Framework

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:
    • Categorize requirements.
    • Eliminate redundant requirements.
    This step involves the following participants:
    • BAs
    Outcomes of this step
    • Prioritized requirements list.

    Analyze requirements to de-duplicate them, consolidate them – and most importantly – prioritize them!

    he image is the Requirements Gathering Framework, shown earlier. All parts of the framework are greyed-out, except for the arrow containing the word Analyze in the center of the image, with three bullet points beneath it that read: Organize; Prioritize; Verify

    The analysis phase is where requirements are compiled, categorized, and prioritized to make managing large volumes easier. Many organizations prematurely celebrate being finished the elicitation phase and do not perform adequate diligence in this phase; however, the analysis phase is crucial for a smooth transition into validation and application development or procurement.

    Categorize requirements to identify and highlight requirement relationships and dependencies

    Eliciting requirements is an important step in the process, but turning endless pages of notes into something meaningful to all stakeholders is the major challenge.

    Begin the analysis phase by categorizing requirements to make locating, reconciling, and managing them much easier. There are often complex relationships and dependencies among requirements that do not get noted or emphasized to the development team and as a result get overlooked.

    Typically, requirements are classified as functional and non-functional at the high level. Functional requirements specify WHAT the system or component needs to do and non-functional requirements explain HOW the system must behave.

    Examples

    Functional Requirement: The application must produce a sales report at the end of the month.

    Non-Functional Requirement: The report must be available within one minute after midnight (EST) of the last day of the month. The report will be available for five years after the report is produced. All numbers in the report will be displayed to two decimal places.

    Categorize requirements to identify and highlight requirement relationships and dependencies

    Further sub-categorization of requirements is necessary to realize the full benefit of categorization. Proficient BAs will even work backwards from the categories to drive the elicitation sessions. The categories used will depend on the type of project, but for categorizing non-functional requirements, the Volere Requirements Resources has created an exhaustive list of sub-categories.

    Requirements Category Elements

    Example

    Look & Feel Appearance, Style

    User Experience

    Usability & Humanity Ease of Use, Personalization, Internationalization, Learning, Understandability, Accessibility Language Support
    Performance Speed, Latency, Safety, Precision, Reliability, Availability, Robustness, Capacity, Scalability, Longevity Bandwidth
    Operational & Environmental Expected Physical Environment, Interfacing With Adjacent Systems, Productization, Release Heating and Cooling
    Maintainability & Support Maintenance, Supportability, Adaptability Warranty SLAs

    Security

    Access, Integrity, Privacy, Audit, Immunity Intrusion Prevention
    Cultural & Political Global Differentiation Different Statutory Holidays
    Legal Compliance, Standards Hosting Regulations

    What constitutes good requirements

    Complete – Expressed a whole idea or statement.

    Correct – Technically and legally possible.

    Clear – Unambiguous and not confusing.

    Verifiable – It can be determined that the system meets the requirement.

    Necessary – Should support one of the project goals.

    Feasible – Can be accomplished within cost and schedule.

    Prioritized – Tracked according to business need levels.

    Consistent – Not in conflict with other requirements.

    Traceable – Uniquely identified and tracked.

    Modular – Can be changed without excessive impact.

    Design-independent – Does not pose specific solutions on design.

    Create functional requirement categories

    3.1.1 – 1 hour

    Input
    • Activity 2.2.1
    Output
    • Requirements categories
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • BAs
    Practice the techniques for categorizing requirements.
    1. Divide the list of requirements that were elicited for the identified sub-process in exercise 2.2.1 among smaller groups.
    2. Have groups write the requirements on red, yellow, or green sticky notes, depending on the stakeholder’s level of influence.
    3. Along the top of the whiteboard, write the eight requirements categories, and have each group place the sticky notes under the category where they believe they should fit.
    4. Once each group has posted the requirements, review the board and discuss any requirements that should be placed in another category.

    Document any changes to the requirements categories in section 5.1 of the Requirements Gathering SOP and BA Playbook.

    Create functional requirement categories

    The image depicts a whiteboard with different colored post-it notes grouped into the following categories: Look & Feel; Usability & Humanity; Legal; Maintainability & Support; Operational & Environmental; Security; Cultural & Political; and Performance.

    Consolidate similar requirements and eliminate redundancies

    Clean up requirements and make everyone’s life simpler!

    After elicitation, it is very common for an organization to end up with redundant, complementary, and conflicting requirements. Consolidation will make managing a large volume of requirements much easier.

    Redundant Requirements Owner Priority
    1. The application shall feed employee information into the payroll system. Payroll High
    2. The application shall feed employee information into the payroll system. HR Low
    Result The application shall feed employee information into the payroll system. Payroll & HR High
    Complementary Requirements Owner Priority
    1. The application shall export reports in XLS and PDF format. Marketing High
    2. The application shall export reports in CSV and PDF format. Finance High
    Result The application shall export reports in XLS, CSV, and PDF format. Marketing & Finance High

    Info-Tech Insight

    When collapsing redundant or complementary requirements, it is imperative that the ownership and priority metadata be preserved for future reference. Avoid consolidating complementary requirements with drastically different priority levels.

    Identify and eliminate conflict between requirements

    Conflicting requirements are unavoidable; identify and resolve them as early as possible to minimize rework and grief.

    Conflicting requirements occur when stakeholders have requirements that either partially or fully contradict one another, and as a result, it is not possible or practical to implement all of the requirements.

    Steps to Resolving Conflict:

    1. Notify the relevant stakeholders of the conflict and search for a basic solution or compromise.
    2. If the stakeholders remain in a deadlock, appoint a final decision maker.
    3. Schedule a meeting to resolve the conflict with the relevant stakeholders and the decision maker. If multiple conflicts exist between the same stakeholder groups, try to resolve as many as possible at once to save time and encourage reciprocation.
    4. Give all parties the opportunity to voice their rationale and objectively rate the priority of the requirement. Attempt to reach an agreement, consensus, or compromise.
    5. If the parties remain in a deadlock, encourage the final decision maker to weigh in. Their decision should be based on which party has the greater need for the requirement, the difficulty to implement the requirement, and which requirement better aligns with the project goals.

    Info-Tech Insight

    Resolve conflicts whenever possible during the elicitation phase by using cross-functional workshops to facilitate discussions that address and settle conflicts in the room.

    Consolidate similar requirements and eliminate redundancies

    3.1.2 – 30 minutes

    Input
    • Activity 3.1.1
    Output
    • Requirements categories
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • BAs

    Review the outputs from the last exercise and ensure that the list is mutually exclusive by consolidating similar requirements and eliminating redundancies.

    1. Looking at each category in turn, review the sticky notes and group similar, complementary, and conflicting notes together. Put a red dot on any conflicting requirements to be used in a later exercise.
    2. Have the group start by eliminating the redundant requirements.
    3. Have the group look at the complementary requirements, and consolidate each into a single requirement. Discard originals.
    4. Record this information in the Requirements Gathering Documentation Tool.

    Prioritize requirements to assist with solution modeling

    Prioritization is the process of ranking each requirement based on its importance to project success. Hold a separate meeting for the domain SMEs, implementation SMEs, project managers, and project sponsors to prioritize the requirements list. At the conclusion of the meeting, each requirement should be assigned a priority level. The implementation SMEs will use these priority levels to ensure efforts are targeted towards the proper requirements as well as to plan features available on each release. Use the MoSCoW Model of Prioritization to effectively order requirements.

    The MoSCoW Model of Prioritization

    The image shows the MoSCoW Model of Prioritization, which is shaped like a pyramid. The sections, from top to bottom (becoming incrementally larger) are: Must Have; Should Have; Could Have; and Won't Have. There is additional text next to each category, as follows: Must have - Requirements must be implemented for the solution to be considered successful.; Should have: Requirements are high priority that should be included in the solution if possible.; Could Have: Requirements are desirable but not necessary and could be included if resources are available.; Won't Have: Requirements won’t be in the next release, but will be considered for the future releases.

    The MoSCoW model was introduced by Dai Clegg of Oracle UK in 1994 (Source: ProductPlan).

    Base your prioritization on the right set of criteria

    Effective Prioritization Criteria

    Criteria

    Description

    Regulatory & 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.

    Use the Requirements Gathering Documentation Tool to steer your requirements gathering approach during a project

    3.1 Requirements Gathering Documentation Tool

    Use the Requirements Gathering Documentation Tool to identify and track stakeholder involvement, elicitation techniques, and scheduling, as well as to track categorization and prioritization of requirements.

    • Use the Identify Stakeholders tab to:
      • Identify the stakeholder's name and role.
      • Identify their influence and involvement.
      • Identify the elicitation techniques that you will be using.
      • Identify who will be conducting the elicitation sessions.
      • Identify if requirements were validated post elicitation session.
      • Identify when the elicitation will take place.
    • Use the Categorize & Prioritize tab to:
      • Identify the stakeholder.
      • Identify the core function.
      • Identify the business requirement.
      • Describe the requirement.
      • Identify the categorization of the requirement.
      • Identify the level of priority of the requirement.

    Prioritize requirements

    3.1.3 – 30 minutes

    Input
    • Requirements list
    • Prioritization criteria
    Output
    • Prioritized requirements
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • BAs
    • Business stakeholders

    Using the output from the MoSCoW model, prioritize the requirements according to those you must have, should have, could have, and won’t have.

    1. As a group, review each requirement and decide if the requirement is:
      1. Must have
      2. Should have
      3. Could have
      4. Won’t have
    2. Beginning with the must-have requirements, determine if each has any dependencies. Ensure that each of the dependencies are moved to the must-have category. Group and circle the dependent requirements.
    3. Continue the same exercise with the should-have and could-have options.
    4. Record the results in the Requirements Gathering Documentation Tool.

    Step 1 – Prioritize requirements

    3.1.3

    The image shows a whiteboard, with four categories listed at the top: Must Have; Should Have; Could Have; Won't Have. There are yellow post-it notes under each category.

    Step 2-3 – Prioritize requirements

    This image is the same as the previous image, but with the additions of two dotted line squares under the Must Have category, with arrows pointing to them from post-its in the Should have category.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    3.1.1 Create functional requirements categories

    An analyst will facilitate the discussion to brainstorm and determine criteria for requirements categories.

    3.1.2 Consolidate similar requirements and eliminate redundancies

    An analyst will facilitate a session to review the requirements categories to ensure the list is mutually exclusive by consolidating similar requirements and eliminating redundancies.

    3.1.3 Prioritize requirements

    An analyst will facilitate the discussion on how to prioritize requirements according to the MoSCoW prioritization framework. The analyst will also walk you through the exercise of determining dependencies for each requirement.

    Step 3.2: Validate Business Requirements

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:
    • Build the BRD.
    • Translate functional requirements to technical requirements.
    • Identify testing opportunities.

    This step involves the following participants:

    • BAs

    Outcomes of this step

    • Finalized BRD.

    Validate requirements to ensure that they meet stakeholder needs – getting sign-off is essential

    The image is the Requirements Gathering Framework shown previously. In this instance, all aspects of the graphic are greyed out with the exception of the Validate arrow, right of center. Below the arrow are three bullet points: Translate; Allocate; Approve.

    The validation phase involves translating the requirements, modeling the solutions, allocating features across the phased deployment plan, preparing the requirements package, and getting requirement sign-off. This is the last step in the Info-Tech Requirements Gathering Framework.

    Prepare a user-friendly requirements package

    Before going for final sign-off, ensure that you have pulled together all of the relevant documentation.

    The requirements package is a compilation of all of the business analysis and requirements gathering that occurred. The document will be distributed among major stakeholders for review and sign-off.

    Some may argue that the biggest challenge in the validation phase is getting the stakeholders to sign off on the requirements package; however, the real challenge is getting them to actually read it. Often, stakeholders sign the requirements document without fully understanding the scope of the application, details of deployment, and how it affects them.

    Remember, this document is not for the BAs; it’s for the stakeholders. Make the package with the stakeholders in mind. Create multiple versions of the requirements package where the length and level of technical details is tailored to the audience. Consider creating a supplementary PowerPoint version of the requirements package to present to senior management.

    Contents of Requirements Package:

    • Project Charter (if available)
    • Overarching Project Goals
    • Categorized Business Requirements
    • Selected Solution Proposal
    • Rationale for Solution Selection
    • Phased Roll-Out Plan
    • Proposed Schedule/Timeline
    • Signatures Page

    "Sit down with your stakeholders, read them the document line by line, and have them paraphrase it back to you so you’re on the same page." – Anonymous City Manager of IT Project Planning Info-Tech Interview

    Capture requirements in a dedicated BRD

    The BRD captures the original business objectives and high-level business requirements for the system/process. The system requirements document (SRD) captures the more detailed functional and technical requirements.

    The graphic is grouped into two sections, indicated by brackets on the right side, the top section labelled BRD and the lower section labelled as SRD. In the BRD section, a box reads Needs Identified in the Business Case. An arrow points from the bottom of the box down to another box labelled Use Cases. In the SRD section, there are three arrows pointing from the Use Cases box to three boxes in a row. They are labelled Functionality; Usability; and Constraints. Each of these boxes has a plus sign between it and the next in the line. At the bottom of the SRD section is a box with text that reads: Quality of Service Reliability, Supportability, and Performance

    Use Info-Tech’s Business Requirements Document Template to specify the business needs and expectations

    3.2 Business Requirements Document Template

    The Business Requirements Document Template can be used to record the functional, quality, and usability requirements into formats that are easily consumable for future analysis, architectural and design activities, and most importantly in a format that is understandable by all business partners.

    The BRD is designed to take the reader from a high-level understanding of the business processes down to the detailed automation requirements. It should capture the following:

    • Project summary and background
    • Operating model
    • Business process model
    • Use cases
    • Requirements elicitation techniques
    • Prioritized requirements
    • Assumptions and constraints

    Rightsize the BRD

    3.2.1 – 30 minutes

    Input
    • Project levels
    • BRD categories
    Output
    • BRD
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs
    • Business stakeholders

    Build the required documentation for requirements gathering.

    1. On the board, write out the components of the BRD. As a group, review the headings and decide if all sections are needed for level 1 & 2 and level 3 & 4 projects. Your level 3-4 project business cases will have the most detailed business cases; consider your level 1-2 projects, and remove any categories you don’t believe are necessary for the project level.
    2. Now that you have a right-sized template, break the team into two groups and have each group complete one section of the template for your selected project.
      1. Project overview
      2. Implementation considerations
    3. Once complete, have each group present its section, and allow the group to make additions and modifications to each section.

    Document the output from this exercise in section 6 of the Requirements Gathering SOP and BA Playbook.

    Present the BRD to business stakeholders

    3.2.2 – 1 hour

    Input
    • Activity 3.2.1
    Output
    • BRD presentation
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders

    Practice presenting the requirements document to business stakeholders.

    1. Hold a meeting with a group of selected stakeholders, and have a representative present each section of the BRD for your project.
    2. Instruct participants that they should spend the majority of their time on the requirements section, in particular the operating model and the requirements prioritization.
    3. At the end of the meeting, have the business stakeholders validate the requirements, and approve moving forward with the project or indicate where further requirements gathering must take place.

    Example:

    Typical Requirements Gathering Validation Meeting Agenda
    Project overview 5 minutes
    Project operating model 10 minutes
    Prioritized requirements list 5 minutes
    Business process model 30 minutes
    Implementation considerations 5 minutes

    Translate business requirements into technical requirements

    3.2.3 – 30 minutes

    Input
    • Business requirements
    Output
    • BRD presentation
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders
    • BAs
    • Developers

    Practice translating business requirements into system requirements.

    1. Bring in representatives from the development team, and have a representative walk them through the business process model.
    2. Present a detailed account of each business requirement, and work with the IT team to build out the system requirements for each.
    3. Document the system requirements in the Requirements Gathering Documentation Tool.

    For requirements traceability, ensure you’re linking your requirements management back to your test strategy

    After a solution has been fully deployed, it’s critical to create a strong link between your software testing strategy and the requirements that were collected. User acceptance testing (UAT) is a good approach for requirement verification.

    • Many organizations fail to create an explicit connection between their requirements gathering and software testing strategies. Don’t follow their example!
    • When conducting UAT, structure exercises in the context of the requirements; run through the signed-off list and ask users whether or not the deployed functionality was in line with the expectations outlined in the finalized requirements documentation.
    • If not – determine whether it was a miscommunication on the requirements management side or a failure of the developers (or procurement team) to meet the agreed-upon requirements.

    Download the Requirements Gathering Testing Checklist template.

    Identify the testing opportunities

    3.2.4 – 30 minutes

    Input
    • List of requirements
    Output
    • Requirements testing process
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs
    • Developers

    Identify how to test the effectiveness of different requirements.

    1. Ask the group to review the list of requirements and identify:
      1. Which kinds of requirements enable constructive testing efforts?
      2. Which kinds of requirements enable destructive testing efforts?
      3. Which kinds of requirements support end-user acceptance testing?
      4. What do these validation-enabling objectives mean in terms of requirement specificity?
    2. For each, identify who will do the testing and at what stage.

    Verify that the requirements still meet the stakeholders’ needs

    Keep the stakeholders involved in the process in between elicitation and sign-off to ensure that nothing gets lost in transition.

    After an organization’s requirements have been aggregated, categorized, and consolidated, the business requirements package will begin to take shape. However, there is still a great deal of work to complete. Prior to proceeding with the process, requirements should be verified by domain SMEs to ensure that the analyzed requirements continue to meet their needs. This step is often overlooked because it is laborious and can create additional work; however, the workload associated with verification is much less than the eventual rework stemming from poor requirements.

    All errors in the requirements gathering process eventually surface; it is only a matter of time. Control when these errors appear and minimize costs by soliciting feedback from stakeholders early and often.

    This is the Verify stage of the Confirm, Verify, Approve process.

    “Do these requirements still meet your needs?”

    Put it all together: obtain final requirements sign-off

    Use the sign-off process as one last opportunity to manage expectations, obtain commitment from the stakeholders, and minimize change requests.

    Development or procurement of the application cannot begin until the requirements package has been approved by all of the key stakeholders. This will be the third time that the stakeholders are asked to review the requirements; however, this will be the first time that the stakeholders are asked to sign off on them.

    It is important that the stakeholders understand the significance of their signatures. This is their last opportunity to see exactly what the solution will look like and to make change requests. Ensure that the stakeholders also recognize which requirements were omitted from the solution that may affect them.

    The sign-off process needs to mean something to the stakeholders. Once a signature is given, that stakeholder must be accountable for it and should not be able to make change requests. Note that there are some requests from senior stakeholders that can’t be refused; use discretion when declining requests.

    This is the Approve stage of the Confirm, Verify, Approve process.

    "Once requirements are signed off, stay firm on them!" – Anonymous Hospital Business Systems Analyst Info-Tech Interview

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with out Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.2.1; 3.2.2 Rightsize the BRD and present it to business stakeholders

    An analyst will facilitate the discussion to gather the required documentation for building the BRD. The analyst will also assist with practicing the presenting of each section of the document to business stakeholders.

    3.2.3; 3.2.4 Translate business requirements into technical requirements and identify testing opportunities

    An analyst will facilitate the session to practice translating business requirements into testing requirements and assist in determining how to test the effectiveness of different requirements.

    Phase 4: Create a Requirements Governance Action Plan

    Phase 4 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: Create a Requirements Governance Action Plan

    Proposed Time to Completion: 3 weeks

    Step 4.1: Create Control Processes for Requirements Changes

    Start with an analyst kick off call:

    • Discuss how to handle changes to requirements and establish a formal change control process.

    Then complete these activities…

    • Develop a change control process.
    • Build the guidelines for escalating changes.
    • Confirm your requirements gathering process.
    • Define RACI for the requirements gathering process.

    With these tools & templates:

    • Requirements Traceability Matrix
    Step 4.2: Build Requirements Governance and Communication Plan

    Review findings with analyst:

    • Review options for ongoing governance of the requirements gathering process.

    Then complete these activities…

    • Define the requirements gathering steering committee purpose.
    • Define the RACI for the RGSC.
    • Define procedures, cadence, and agenda for the RGSC.
    • Identify and analyze stakeholders.
    • Create a communications management plan.
    • Build the requirements gathering process implementation timeline.

    With these tools & templates:

    Requirements Gathering Communication Tracking Template

    Phase 4 Results & Insights:
    • Formalized change control and governance processes for requirements.

    Step 4.1: Create Control Processes for Requirements Changes

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:
    • Develop change control process.
    • Develop change escalation process.
    This step involves the following participants:
    • BAs
    • Business stakeholders
    Outcomes of this step
    • Requirements gathering process validation.
    • RACI completed.

    Manage, communicate, and test requirements

    The image is the Requirement Gathering Framework graphic from previous sections. In this instance, all parts of the image are greyed out, with the exception of the arrows labelled Communicate and Manage, located at the bottom of the image.

    Although the manage, communicate, and test requirements section chronologically falls as the last section of this blueprint, that does not imply that this section is to be performed only at the end. These tasks are meant to be completed iteratively throughout the project to support the core requirements gathering tasks.

    Prevent requirements scope creep

    Once the stakeholders sign off on the requirements document, any changes need to be tracked and managed. To do that, you need a change control process.

    Thoroughly validating requirements should reduce the amount of change requests you receive. However, eliminating all changes is unavoidable.

    The BAs, sponsor, and stakeholders should have agreed upon a clearly defined scope for the project during the planning phase, but there will almost always be requests for change as the project progresses. Even a high number of small changes can negatively impact the project schedule and budget.

    To avoid scope creep, route all changes, including small ones, through a formal change control process that will be adapted depending on the level of project and impact of the change.

    Linking change requests to requirements is essential to understanding relevance and potential impact

    1. Receive project change request.
    2. Refer to requirements document to identify requirements associated with the change.
      • Matching requirement is found: The change is relevant to the project.
      • Multiple requirements are associated with the proposed change: The change has wider implications for the project and will require closer analysis.
      • The request involves a change or new business requirements: Even if the change is within scope, time, and budget, return to the stakeholder who submitted the request to identify the potentially new requirements that relate to this change. If the sponsor agrees to the new requirements, you may be able to approve the change.
    3. Findings influence decision to escalate/approve/reject change request.

    Develop a change control process

    4.1.1 – 45 minutes

    Input
    • Current change control process
    Output
    • Updated change control process
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs
    • Developers
    1. Ask the team to consider their current change control process. It might be helpful to discuss a project that is currently underway, or already completed, to provide context. Draw the process on the whiteboard through discussion with the team.
    2. If necessary, provide some cues. Below are some change control process activities:
      • Submit project change request form.
      • PM assesses change.
      • Project sponsor assesses change.
      • Bring request to project steering committee to assess change.
      • Approve/reject change.
    3. Ask participants to brainstorm a potential separate process for dealing with small changes. Add a new branch for minor changes, which will allow you to make decisions on when to bundle the changes versus implementing directly.

    Document any changes from this exercise in section 7.1 of the Requirements Gathering SOP and BA Playbook.

    Example change control process

    The image is an example of a change control process, depicted via a flowchart.

    Build guidelines for escalating changes

    4.1.2 – 1 hour

    Input
    • Current change control process
    Output
    • Updated change control process
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs
    • Developers

    Determine how changes will be escalated for level 1/2/3/4 projects.

    1. Write down the escalation options for level 3 & 4 projects on the whiteboard:
      • Final decision rests with project manager.
      • Escalate to sponsor.
      • Escalate to project steering committee.
      • Escalate to change control board.
    2. Brainstorm categories for assessing the impact of a change and begin creating a chart on the whiteboard by listing these categories in the far left column. Across the top, list the escalation options for level 3 & 4 projects.
    3. Ask the team to agree on escalation conditions for each escalation option. For example, for the final decision to rest with the project manager one condition might be:
      • Change is within original project scope.
    4. Review the output from exercise 4.1.1 and tailor the process model to meet level 3 & 4 escalation models.
    5. Repeat steps 1-4 for level 1 & 2 projects.

    Document any changes from this exercise in section 7.2 of the Requirements Gathering SOP and BA Playbook.

    Example: Change control process – Level 3 & 4

    Impact Category Final Decision Rests With Project Manager If: Escalate to Steering Committee If: Escalate to Change Control Board If: Escalate to Sponsor If:
    Scope
    • Change is within original project scope.
    • Change is out of scope.
    Budget
    • Change can be absorbed into current project budget.
    • Change will require additional funds exceeding any contingency reserves.
    • Change will require the release of contingency reserves.
    Schedule
    • Change can be absorbed into current project schedule.
    • Change will require the final project close date to be delayed.
    • Change will require a delay in key milestone dates.
    Requirements
    • Change can be linked to an existing business requirement.
    • Change will require a change to business requirements, or a new business requirement.

    Example: Change control process – Level 1 & 2

    Impact CategoryFinal Decision Rests With Project Manager If:Escalate to Steering Committee If:Escalate to Sponsor If:
    Scope
    • Change is within original project scope.
    • Change is out of scope.
    Budget
    • Change can be absorbed into current project budget, even if this means releasing contingency funds.
    • Change will require additional funds exceeding any contingency reserves.
    Schedule
    • Change can be absorbed into current project schedule, even if this means moving milestone dates.
    • Change will require the final project close date to be delayed.
    Requirements
    • Change can be linked to an existing business requirement.
    • Change will require a change to business requirements, or a new business requirement.

    Leverage Info-Tech’s Requirements Traceability Matrix to help create end-to-end traceability of your requirements

    4.1 Requirements Traceability Matrix

    Even if you’re not using a dedicated requirements management suite, you still need a way to trace requirements from inception to closure.
    • Ensuring traceability of requirements is key. If you don’t have a dedicated suite, Info-Tech’s Requirements Traceability Matrix can be used as a form of documentation.
    • The traceability matrix covers:
      • Association ID
      • Technical Assumptions and Needs
      • Functional Requirement
      • Status
      • Architectural Documentation
      • Software Modules
      • Test Case Number

    Info-Tech Deliverable
    Take advantage of Info-Tech’s Requirements Traceability Matrix to track requirements from inception through to testing.

    You can’t fully validate what you don’t test; link your requirements management back to your test strategy

    Create a repository to store requirements for reuse on future projects.

    • Reuse previously documented requirements on future projects to save the organization time, money, and grief. Well-documented requirements discovered early can even be reused in the same project.
    • If every module of the application must be able to save or print, then the requirement only needs to be written once. The key is to be able to identify and isolate requirements with a high likelihood of reuse. Typically, requirements pertaining to regulatory and business rule compliance are prime candidates for reuse.
    • Build and share a repository to store historical requirement documentation. The repository must be intuitive and easy to navigate, or users will not take advantage of it. Plan the information hierarchy in advance. Requirements management software suites have the ability to create a repository and easily migrate requirements over from past projects.
    • Assign one person to manage the repository to create consistency and accountability. This person will maintain the master requirements document and ensure the changes that take place during development are reflected in the requirements.

    Confirm your requirements gathering process

    4.1.3 – 45 minutes

    Input
    • Activity 1.2.4
    Output
    • Requirements gathering process model
    Materials
    • Whiteboard
    • Markers
    Participants
    • BAs

    Review the requirements gathering process and control levels for project levels 1/2/3/4 and add as much detail as possible to each process.

    1. Draw out the requirements gathering process for a level 4 project as created in exercise 1.2.4 on a whiteboard.
    2. Review each process step as a group, and break down each step so that it is at its most granular. Be sure to include each decision point, key documentation, and approvals.
    3. Once complete, review the process for level 3, 2 & 1. Reduce steps as necessary. Note: there may not be a lot of differentiation between your project level 4 & 3 or level 2 & 1 processes. You should see differentiation in your process between 2 and 3.

    Document the output from this exercise in section 2.4 of the Requirements Gathering SOP and BA Playbook.

    Example: Confirm your requirements gathering process

    The image is an example of a requirements gathering process, representing in the format of a flowchart.

    Define RACI for the requirements gathering process

    4.1.4 – 45 minutes

    Input
    • List of stakeholders
    Output
    • RACI matrix
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders

    Understand who is responsible, accountable, consulted, and informed for key elements of the requirements gathering process for project levels 1/2/3/4.

    1. As a group, identify the key stakeholders for requirements gathering and place those names along the top of the board.
    2. On the left side of the board, list the process steps and control points for a level 4 project.
    3. For each process step, identify who is responsible, accountable, informed, and consulted.
    4. Repeat this process for project levels 3, 2 & 1.

    Example: RACI for requirements gathering

    Project Requestor Project Sponsor Customers Suppliers Subject Matter Experts Vendors Executives Project Management IT Management Developer/ Business Analyst Network Services Support
    Intake Form A C C I R
    High-Level Business Case R A C C C C I I C
    Project Classification I I C I R A R
    Project Approval R R I I I I I I A I I
    Project Charter R C R R C R I A I R C C
    Develop BRD R I R C C C R A C C
    Sign-Off on BRD/ Project Charter R A R R R R
    Develop System Requirements C C C R I C A R R
    Sign-Off on SRD R R R I A R R
    Testing/Validation A I R C R C R I R R
    Change Requests R R C C A I R C
    Sign-Off on Change Request R A R R R R
    Final Acceptance R A R I I I I R R R I I

    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:

    4.1.1; 4.1.2 Develop a change control process and guidelines for escalating changes

    An analyst will facilitate the discussion on how to improve upon your organization’s change control processes and how changes will be escalated to ensure effective tracking and management of changes.

    4.1.3 Confirm your requirements gathering process

    With the group, an analyst will review the requirements gathering process and control levels for the different project levels.

    4.1.4 Define the RACI for the requirements gathering process

    An analyst will facilitate a whiteboard exercise to understand who is responsible, accountable, informed, and consulted for key elements of the requirements gathering process.

    Step 4.2: Build Requirements Governance and Communication Plan

    Phase 1

    1.1 Understand the Benefits of Requirements Optimization

    1.2 Determine Your Target State for Requirements Gathering

    Phase 2

    2.1 Determine Elicitation Techniques

    2.2 Structure Elicitation Output

    Phase 3

    3.1 Create Analysis Framework

    3.2 Validate Business Requirements

    Phase 4

    4.1 Create Control Processes for Requirements Changes

    4.2 Build Requirements Governance and Communication Plan

    This step will walk you through the following activities:

    • Developing a requirements gathering steering committee.
    • Identifying and analyzing stakeholders for requirements governance.
    • Creating a communication management plan.

    This step involves the following participants:

    • Business stakeholders
    • BAs

    Outcomes of this step

    • Requirements governance framework.
    • Communication management plan.

    Establish proper governance for requirements gathering that effectively creates and communicates guiding principles

    If appropriate governance oversight doesn’t exist to create and enforce operating procedures, analysts and developers will run amok with their own processes.

    • One of the best ways to properly govern your requirements gathering process is to establish a working committee within the framework of your existing IT steering committee. This working group should be given the responsibility of policy formulation and oversight for requirements gathering operating procedures. The governance group should be comprised of both business and IT sponsors (e.g. a director, BA, and “voice of the business” line manager).
    • The governance team will not actually be executing the requirements gathering process, but it will be deciding upon which policies to adopt for elicitation, analysis, and validation. The team will also be responsible for ensuring – either directly or indirectly through designated managers – that BAs or other requirements gathering processionals are following the approved steps.

    Requirements Governance Responsibilities

    1. Provide oversight and review of SOPs pertaining to requirements elicitation, analysis, and validation.

    2. Establish corporate policies with respect to requirements gathering SOP training and education of analysts.

    3. Prioritize efforts for requirements optimization.

    4. Determine and track metrics that will be used to gauge the success (or failure) of requirements optimization efforts and make process and policy changes as needed.

    Right-size your governance structure to your organization’s complexity and breadth of capabilities

    Not all organizations will be best served by a formal steering committee for requirements gathering. Assess the complexity of your projects and the number of requirements gathering practitioners to match the right governance structure.

    Level 1: Working Committee
    • A working committee is convened temporarily as required to do periodic reviews of the requirements process (often annually, or when issues are surfaced by practitioners). This governance mechanism works best in small organizations with an ad hoc culture, low complexity projects, and a small number of practitioners.
    Level 2: IT Steering Committee Sub-Group
    • For organizations that already have a formal IT steering committee, a sub-group dedicated to managing the requirements gathering process is desirable to a full committee if most projects are complexity level 1 or 2, and/or there are fewer than ten requirements gathering practitioners.
    Level 3: Requirements Gathering Steering Committee
    • If your requirements gathering process has more than ten practitioners and routinely deals with high-complexity projects (like ERP or CRM), a standing formal committee responsible for oversight of SOPs will provide stronger governance than the first two options.
    Level 4: Requirements Gathering Center of Excellence
    • For large organizations with multiple business units, matrix organizations for BAs, and a very large number of requirements gathering practitioners, a formal center of excellence can provide both governance as well as onboarding and training for requirements gathering.

    Identify and analyze stakeholders

    4.2.1A – 1 hour

    Input
    • Number of practitioners, project complexity levels
    Output
    • Governance structure selection
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders

    Use a power map to determine which governance model best fits your organization.

    The image is a square, split into four equal sections, labelled as follows from top left: Requirements Steering Committee; Requirements Center of Excellence; IT Steering Committee Sub-Group; Working Committee. The left and bottom edges of the square are labelled as follows: on the left, with an arrow pointing upwards, Project Complexity; on the bottom, with arrow pointing right, # of Requirements Practitioners.

    Define your requirements gathering governance structure(s) and purpose

    4.2.1B – 30 minutes

    Input
    • Requirements gathering elicitation, analysis, and validation policies
    Output
    • Governance mandate
    Materials
    • Whiteboard
    • Markers
    Participants
    • Business stakeholders

    This exercise will help to define the purpose statement for the applicable requirements gathering governance team.

    1. As a group, brainstorm key words that describe the unique role the governance team will play. Consider value, decisions, and authority.
    2. Using the themes, come up with a set of statements that describe the overall purpose statement.
    3. Document the outcome for the final deliverable.

    Example:

    The requirements gathering governance team oversees the procedures that are employed by BAs and other requirements gathering practitioners for [insert company name]. Members of the team are appointed by [insert role] and are accountable to [typically the chair of the committee].

    Day-to-day operations of the requirements gathering team are expected to be at the practitioner (i.e. BA) level. The team is not responsible for conducting elicitation on its own, although members of the team may be involved from a project perspective.

    Document the output from this exercise in section 3.1 of the Requirements Gathering SOP and BA Playbook.

    A benefits provider established a steering committee to provide consistency and standardization in requirements gathering

    CASE STUDY

    Industry Not-for-Profit

    Source Info-Tech Workshop

    Challenge

    This organization is a not-for-profit benefits provider that offers dental coverage to more than 1.5 million people across three states.

    With a wide ranging application portfolio that includes in-house, custom developed applications as well as commercial off-the-shelf solutions, the company had no consistent method of gathering requirements.

    Solution

    The organization contracted Info-Tech to help build an SOP to put in place a rigorous and efficient methodology for requirements elicitation, analysis, and validation.

    One of the key realizations in the workshop was the need for governance and oversight over the requirements gathering process. As a result, the organization developed a Requirements Management Steering Committee to provide strategic oversight and governance over requirements gathering processes.

    Results

    The Requirements Management Steering Committee introduced accountability and oversight into the procedures that are employed by BAs. The Committee’s mandate included:

    • Provide oversight and review SOPs pertaining to requirements elicitation, analysis, and validation.
    • Establish corporate policies with respect to training and education of analysts on requirements gathering SOPs.
    • Prioritize efforts for requirements optimization.
    • Determine metrics that can be used to gauge the success of requirements optimization efforts.

    Authority matrix – RACI

    There needs to be a clear understanding of who is accountable, responsible, consulted, and informed about matters brought to the attention of the requirements gathering governance team.

    • An authority matrix is often used within organizations to indicate roles and responsibilities in relation to processes and activities.
    • Using the RACI model as an example, there is only one person accountable for an activity, although several people may be responsible for executing parts of the activity.
    • In this model, accountable means end-to-end accountability for the process. Accountability should remain with the same person for all activities of a process.

    RResponsible

    The one responsible for getting the job done.

    A – Accountable

    Only one person can be accountable for each task.

    C – Consulted

    Involvement through input of knowledge and information.

    I – Informed

    Receiving information about process execution and quality.

    Define the RACI for effective requirements gathering governance

    4.2.2 – 30 minutes

    Input
    • Members’ list
    Output
    • Governance RACI
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • Governance team members

    Build the participation list and authority matrix for the requirements gathering governance team.

    1. Have each participant individually consider the responsibilities of the governance team, and write five participant roles they believe should be members of the governance team.
    2. Have each participant place the roles on the whiteboard, group participants, and agree to five participants who should be members.
    3. On the whiteboard, write the responsibilities of the governance team in a column on the left, and place the sticky notes of the participant roles along the top of the board.
    4. Under the appropriate column for each activity, identify who is the “accountable,” “responsible,” “consulted,” and “informed” role for each activity.
    5. Agree to a governance chair.

    Document any changes from this exercise in section 3.1 of the Requirements Gathering SOP and BA Playbook.

    Example: Steps 2-5: Build the governance RACI

    The image shows an example governance RACI, with the top of the chart labelled with Committee Participants, and the left hand column labelled Committee Responsibilities. Some of the boxes have been filled in.

    Define your requirements gathering governance team procedures, cadence, and agenda

    4.2.3 – 30 minutes

    Input
    • Governance responsibilities
    Output
    • Governance procedures and agenda
    Materials
    • Whiteboard
    • Markers
    Participants
    • Steering committee members

    Define your governance team procedures, cadence, and agenda.

    1. Review the format of a typical agenda as well as the list of responsibilities for the governance team.
    2. Consider how you will address each of these responsibilities in the meeting, who needs to present, and how long each presentation should be.
    3. Add up the times to define the meeting duration.
    4. Consider how often you need to meet to discuss the information: monthly, quarterly, or annually? Are there different actions that need to be taken at different points in the year?
    5. As a group, decide how the governance team will approve changes and document any voting standards that should be included in the charter. Will a vote be taken during or prior to the meeting? Who will have the authority to break a tie?
    6. As a group, decide how the committee will review information and documentation. Will members commit to reviewing associated documents before the meeting? Can associated documentation be stored in a knowledge repository and/or be distributed to members prior to the meeting? Who will be responsible for this? Can a short meeting/conference call be held with relevant reviewers to discuss documentation before the official committee meeting?

    Review the format of a typical agenda

    4.2.3 – 30 minutes

    Meeting call to order [Committee Chair] [Time]
    Roll call [Committee Chair] [Time]
    Review of SOPs
    A. Requirements gathering dashboard review [Presenters, department] [Time]
    B. Review targets [Presenters, department] [Time]
    C. Policy Review [Presenters, department] [Time]

    Define the governance procedures and cadence

    4.2.3 – 30 minutes

    • The governance team or committee will be chaired by [insert role].
    • The team shall meet on a [insert time frame (e.g. monthly, semi-annual, annual)] basis. These meetings will be scheduled by the team or committee chair or designated proxy.
    • Approval for all SOP changes will be reached through a [insert vote consensus criteria (majority, uncontested, etc.)] vote of the governance team. The vote will be administered by the governance chair. Each member of the committee shall be entitled to one vote, excepting [insert exceptions].
    • The governance team has the authority to reject any requirements gathering proposal which it deems not to have made a sufficient case or which does not significantly contribute to the strategic objectives of [insert company name].
    • [Name of individual] will record and distribute the meeting minutes and documentation of business to be discussed in the meeting.

    Document any changes from this exercise in section 3.1 of the Requirements Gathering SOP and BA Playbook.

    Changing the requirements gathering process can be disruptive – be successful by gaining business support

    A successful communication plan involves making the initiative visible and creating staff awareness around it. Educate the organization on how the requirements gathering process will differ.

    People can be adverse to change and may be unreceptive to being told they must “comply” to new policies and procedures. Demonstrate the value in requirements gathering and show how it will assist people in their day-to-day activities.

    By demonstrating how an improved requirements gathering process will impact 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 proactive communication plan will:
    • Assist in overcoming issues with prioritization, alignment resourcing, and staff resistance.
    • Provide a formalized process for implementing new policies, rules, and guidelines.
    • Detail requirements gathering ownership and accountability for the entirety of the process.
    • Encourage acceptance and support of the initiative.

    Identify and analyze stakeholders to communicate the change process

    Who are the requirements gathering stakeholders?

    Stakeholder:

    • A stakeholder is any person, group, or organization who is the end user, owner, sponsor, or consumer of an IT project, change, or application.
    • When assessing an individual or group, ask whether they can impact or be impacted by any decision, change, or activity executed as part of the project. This might include individuals outside of the organization.

    Key Stakeholder:

    • Someone in a management role or someone with decision-making power who will be able to influence requirements and/or be impacted by project outcomes.

    User Group Representatives:

    • For impacted user groups, follow best practice and engage an individual to act as a representative. This individual will become the primary point of contact when making decisions that impact the group.

    Identify the reasons for resistance to change

    Stakeholders may resist change for a variety of reasons, and different strategies are necessary to address each.

    Unwilling – Individuals who are unwilling to change may need additional encouragement. For these individuals, you’ll need to reframe the situation and emphasize how the change will benefit them specifically.

    Unable – All involved requirements gathering will need some form of training on the process, committee roles, and responsibilities. Be sure to have training and support available for employees who need it and communicate this to staff.

    Unaware – Until people understand exactly what is going on, they will not be able to conform to the process. Communicate change regularly at the appropriate detail to encourage stakeholder support.

    Info-Tech Insight

    Resisters who have influence present a high risk to the implementation as they may encourage others to resist as well. Know where and why each stakeholder is likely to resist to mitigate risk. A detailed plan will ensure you have the needed documentation and communications to successfully manage stakeholder resistance.

    Identify and analyze stakeholders

    4.2.4 – 1 hour

    Input
    • Requirements gathering stakeholders list
    Output
    • Stakeholder power map
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • RGSC members

    Identify the impact and level of resistance of all stakeholders to come up with the right communication plan.

    1. Through discussion, generate a complete list of stakeholders for requirements gathering and record the names on the whiteboard or flip chart. Group related stakeholders together.
    2. Using the template on the next slide, draw the stakeholder power map.
    3. Evaluate each stakeholder on the list based on:
      1. Influence: To what degree can this stakeholder impact progress?
      2. Involvement: How involved is the stakeholder already?
      3. Support: Label supporters with green sticky notes, resisters with red notes, and the rest with a third color.
    4. Based on the assessment, write the stakeholder’s name on a green, red, or other colored sticky note, and place the sticky note in the appropriate place on the power map.
    5. For each of the stakeholders identified as resisters, determine why you think they would be resistant. Is it because they are unwilling, unable, and/or unknowing?
    6. Document changes to the stakeholder analysis in the Requirements Gathering Communication Tracking Template.

    Identify and analyze stakeholders

    4.2.4 – 1 hour

    Use a power map to plot key stakeholders according to influence and involvement.

    The image shows a power map, which is a square divided into 4 equally-sized sections, labelled from top left: Focused Engagement; Key Players; Keep Informed; Minimal Engagement. On the left side of the square, there is an arrow pointing upwards labelled Influence; at the bottom of the square, there is an arrow pointing right labelled Involvement. On the right side of the image, there is a legend indicating that a green dot indicates a Supporter; a grey dot indicated Neutral; and a red dot indicates a Resister.

    Example: Identify and analyze stakeholders

    Use a power map to plot key stakeholders according to influence and involvement.

    The image is the same power map image from the previous section, with some additions. A red dot is located at the top left, with a note: High influence with low involvement? You need a strategy to increase engagement. A green dot is located mid-high on the right hand side. Grey dots are located left and right in the bottom of the map. The bottom right grey dot has the note: High involvement with lower influence? Make sure to keep these stakeholders informed at regular intervals and monitor engagement.

    Stakeholder analysis: Reading the power map

    High Risk:

    Stakeholders with high influence who are not as involved in the project or are heavily impacted by the project are less likely to give feedback throughout the project lifecycle and need to be engaged. They are not as involved but have the ability to impact project success, so stay one step ahead.

    Do not limit your engagement to kick-off and close – you need to continue seeking input and support at all stages of the project.

    Mid Risk:

    Key players have high influence, but they are also more involved with the project or impacted by its outcomes and are thus easier to engage.

    Stakeholders who are heavily impacted by project outcomes will be essential to your organizational change management strategy. Do not wait until implementation to engage them in preparing the organization to accept the project – make them change champions.

    Low Risk:

    Stakeholders with low influence who are not impacted by the project do not pose as great of a risk, but you need to keep them consistently informed of the project and involve them at the appropriate control points to collect feedback and approval.

    Inputs to the communications plan

    Stakeholder analysis should drive communications planning.

    Identify Stakeholders
    • Who is impacted by this project?
    • Who can affect project outcomes?
    Assess Stakeholders
    • Influence
    • Involvement
    • Support
    Stakeholder Change Impact Assessment
    • Identify change supporters/resistors and craft change messages to foster acceptance.
    Stakeholder Register
    • Record assessment results and preferred methods of communication.
    The Communications Management Plan:
    • Who will receive information?
    • What information will be distributed?
    • How will information be distributed?
    • What is the frequency of communication?
    • What will the level of detail be?
    • Who is responsible for distributing information?

    Communicate the reason for the change 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:

    COMMUNICATING THE CHANGE

    What is the change?

    Why are we doing it?

    How are we going to go about it?

    How long will it take us?

    What will the role be for each department and individual?

    Create a communications management plan

    4.2.5 – 45 minutes

    Input
    • Exercise 4.1.1
    Output
    • Communications management plan
    Materials
    • Whiteboard
    • Markers
    Participants
    • RGSC members

    Build the communications management plan around your stakeholders’ needs.

    1. Build a chart on the board using the template on the next slide.
    2. Using the list from exercise 4.1.1, brainstorm a list of communication vehicles that will need to be used as part of the rollout plan (e.g. status updates, training).
    3. Through group discussion, fill in all these columns for at least three communication vehicles:
      • (Target) audience
      • Purpose (description)
      • Frequency (of the communication)
        • The method, frequency, and content of communication vehicles will change depending on the stakeholder involved. This needs to be reflected by your plan. For example, you may have several rows for “Status Report” to cover the different stakeholders who will be receiving it.
      • Owner (of the message)
      • Distribution (method)
      • (Level of) details
        • High/medium/low + headings
    4. Document your stakeholder analysis in the Requirements Gathering Communication Tracking Template.

    Communications plan template

    4.2.5 – 45 minutes

    Sample communications plan: Status reports

    Vehicle Audience Purpose Frequency Owner Distribution Level of Detail
    Communications Guidelines
    • Regardless of complexity, it is important not to overwhelm stakeholders with information that is not relevant to them. Sending more detailed information than is necessary might mean that it does not get read.
    • Distributing reports too widely may lead to people assuming that someone else is reading it, causing them to neglect reading it themselves.
    • Only distribute reports to the stakeholders who need the information. Think about what information that stakeholder requires to feel comfortable.

    Example: Identify and analyze stakeholders

    Sample communications plan: Status reports

    Vehicle Audience Purpose Frequency Owner Distribution Level of Detail
    Status Report Sponsor Project progress and deliverable status Weekly Project Manager Email

    Details for

    • Milestones
    • Deliverables
    • Budget
    • Schedule
    • Issues
    Status Report Line of Business VP Project progress Monthly Project Manager Email

    High Level for

    • Major milestone update

    Build your requirements gathering process implementation timeline

    4.2.6 – 45 minutes

    Input
    • Parking lot items
    Output
    • Implementation timeline
    Materials
    • Whiteboard
    • Markers
    • Sticky notes
    Participants
    • RGSC members

    Build a high-level timeline for the implementation.

    1. Collect the action items identified throughout the week in the “parking lot.”
    2. Individually or in groups, brainstorm any additional action items. Consider communication, additional training required, approvals, etc.
      • Write these on sticky notes and add them to the parking lot with the others.
    3. As a group, start organizing these notes into logical groupings.
    4. Assign each of the tasks to a person or group.
    5. Identify any risks or dependencies.
    6. Assign each of the tasks to a timeline.
    7. Following the exercise, the facilitator will convert this into a Gantt chart using the roadmap for requirements gathering action plan.

    Step 3: Organize the action items into logical groupings

    4.2.6 – 45 minutes

    The image shows a board with 5 categories: Documentation, Approval, Communication, Process, and Training. There are groups of post-it notes under each category title.

    Steps 4-6: Organize the action items into logical groupings

    4.2.6 – 45 minutes

    This image shows a chart with Action Items to be listed in the left-most column, Person or Group Responsible in the next column, Risks/Dependencies in the next columns, and periods of time (i.e. 1-3 months, 2-6 months, etc.) in the following columns. The chart has been partially filled in as an exemplar.

    Recalculate the selected requirements gathering metrics

    Measure and monitor the benefits of requirements gathering optimization.

    • Reassess the list of selected and captured requirements management metrics.
    • Recalculate the metrics and analyze any changes. Don’t expect a substantial result after the first attempt. It will take a while for BAs to adjust to the Info-Tech Requirements Gathering Framework. After the third project, results will begin to materialize.
    • Understand that the project complexity and business significance will also affect how long it takes to see results. The ideal projects to beta the process on would be of low complexity and high business significance.
    • Realize that poor requirements gathering can have negative effects on the morale of BAs, IT, and project managers. Don’t forget to capture the impact of these through surveys.

    Major KPIs typically used for benchmarking include:

    • Number of application bugs/defects (for internally developed applications).
    • Number of support requests or help desk tickets for the application, controlled for user deployment levels.
    • Overall project cycle time.
    • Overall project cost.
    • Requirements gathering as a percentage of project time.

    Revisit the requirements gathering metrics selected in the planning phase and recalculate them after requirements gathering optimization has been attempted.

    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:

    4.2.1; 4.2.2; 4.2.3 – Build a requirements gathering steering committee

    The analyst will facilitate the discussion to define the purpose statement of the steering committee, build the participation list and authority matrix for its members, and define the procedures and agenda.

    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:

    4.2.4 Identify and analyze stakeholders

    An analyst will facilitate the discussion on how to identify the impact and level of resistance of all stakeholders to come up with the communication plan.

    4.2.5 Create a communications management plan

    An analyst will assist the team in building the communications management plan based on the stakeholders’ needs that were outlined in the stakeholder analysis exercise.

    4.2.6 Build a requirements gathering implementation timeline

    An analyst will facilitate a session to brainstorm and document any action items and build a high-level timeline for implementation.

    Insight breakdown

    Requirements gathering SOPs should be prescriptive based on project complexity.

    • Complex projects will require more analytical rigor. Simpler projects can be served by more straightforward techniques such as user stories.

    Requirements gathering management tools can be pricy, but they can also be beneficial.

    • Requirements gathering management tools are a great way to have full control over recording, analyzing, and categorizing requirements over complex projects.

    BAs can make or break the execution of the requirements gathering process.

    • A strong process still needs to be executed well by BAs with the right blend of skills and knowledge.

    Summary of accomplishment

    Knowledge Gained

    • Best practices for each stage of the requirements gathering framework:
      • Elicitation
      • Analysis
      • Validation
    • A clear understanding of BA competencies and skill sets necessary to successfully execute the requirements gathering process.

    Processes Optimized

    • Stakeholder identification and management.
    • Requirements elicitation, analysis, and validation.
    • Requirements gathering governance.
    • Change control processes for new requirements.
    • Communication processes for requirements gathering.

    Deliverables Completed

    • SOPs for requirements gathering.
    • Project level selection framework.
    • Communications framework for requirements gathering.
    • Requirements documentation standards.

    Organizations and experts who contributed to this research

    Interviews

    • Douglas Van Gelder, IT Manager, Community Development Commission of the County of Los Angeles
    • Michael Lyons, Transit Management Analyst, Metropolitan Transit Authority
    • Ken Piddington, CIO, MRE Consulting
    • Thomas Dong, Enterprise Software Manager, City of Waterloo
    • Chad Evans, Director of IT, Ontario Northland
    • Three anonymous contributors

    Note: This research also incorporates extensive insights and feedback from our advisory service and related research projects.

    Bibliography

    “10 Ways Requirements Can Sabotage Your Projects Right From the Start.” Blueprint Software Systems, 2012. Web.

    “BPM Definition.” BPMInstitute.org, n.d. Web.

    “Capturing the Value of Project Management.” PMI’s Pulse of the Profession, 2015. Web.

    Eby, Kate. “Demystifying the 5 Phases of Project Management.” Smartsheet, 29 May 2019. Web.

    “Product Management: MoSCoW Prioritization.” ProductPlan, n.d. Web.

    “Projects Delivered on Time & on Budget Result in Larger Market Opportunities.” Jama Software, 2015. Web.

    “SIPOC Table.” iSixSigma, n.d. Web.

    “Survey Principles.” University of Wisconsin-Madison, n.d. Web.

    “The Standish Group 2015 Chaos Report.” The Standish Group, 2015. Web.

    Establish an Effective IT Steering Committee

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    • Parent Category Name: IT Governance, Risk & Compliance
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    • Unfortunately, when CIOs implement IT steering committees, they often lack the appropriate structure and processes to be effective.
    • Due to the high profile of the IT steering committee membership, CIOs need to get this right – or their reputation is at risk.

    Our Advice

    Critical Insight

    • 88% of IT steering committees fail. The organizations that succeed have clearly defined responsibilities that are based on business needs.
    • Without a documented process your committee can’t execute on its responsibilities. Clearly define the flow of information to make your committee actionable.
    • Limit your headaches by holding your IT steering committee accountable for defining project prioritization criteria.

    Impact and Result

    Leverage Info-Tech’s process and deliverables to see dramatic improvements in your business satisfaction through an effective IT steering committee. This blueprint will provide three core customizable deliverables that you can use to launch or optimize your IT steering committee:

    • IT Steering Committee Charter: Use this template in combination with this blueprint to form a highly tailored committee.
    • IT Steering Committee Stakeholder Presentation: Build understanding around the goals and purpose of the IT steering committee, and generate support from your leadership team.
    • IT Steering Committee Project Prioritization Tool: Engage your IT steering committee participants in defining project prioritization criteria. Track project prioritization and assess your portfolio.

    Establish an Effective IT Steering Committee Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should establish an IT steering committee, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

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

    1. Build the steering committee charter

    Build your IT steering committee charter using results from the stakeholder survey.

    • Establish an Effective IT Steering Committee – Phase 1: Build the Steering Committee Charter
    • IT Steering Committee Stakeholder Survey
    • IT Steering Committee Charter

    2. Define IT steering commitee processes

    Define your high level steering committee processes using SIPOC, and select your steering committee metrics.

    • Establish an Effective IT Steering Committee – Phase 2: Define ITSC Processes

    3. Build the stakeholder presentation

    Customize Info-Tech’s stakeholder presentation template to gain buy-in from your key IT steering committee stakeholders.

    • Establish an Effective IT Steering Committee – Phase 3: Build the Stakeholder Presentation
    • IT Steering Committee Stakeholder Presentation

    4. Define the prioritization criteria

    Build the new project intake and prioritization process for your new IT steering committee.

    • Establish an Effective IT Steering Committee – Phase 4: Define the Prioritization Criteria
    • IT Steering Committee Project Prioritization Tool
    • IT Project Intake Form
    [infographic]

    Workshop: Establish an Effective IT Steering Committee

    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 IT Steering Committee

    The Purpose

    Lay the foundation for your IT steering committee (ITSC) by surveying your stakeholders and identifying the opportunities and threats to implementing your ITSC.

    Key Benefits Achieved

     An understanding of the business environment affecting your future ITSC and identification of strategies for engaging with stakeholders

    Activities

    1.1 Launch stakeholder survey for business leaders.

    1.2 Analyze results with an Info-Tech advisor.

    1.3 Identify opportunities and threats to successful IT steering committee implementation.

    1.4 Develop the fit-for-purpose approach.

    Outputs

    Report on business leader governance priorities and awareness

    Refined workshop agenda

    2 Define the ITSC Goals

    The Purpose

    Define the goals and roles of your IT steering committee.

    Plan the responsibilities of your future committee members.

    Key Benefits Achieved

     Groundwork for completing the steering committee charter

    Activities

    2.1 Review the role of the IT steering committee.

    2.2 Identify IT steering committee goals and objectives.

    2.3 Conduct a SWOT analysis on the five governance areas

    2.4 Define the key responsibilities of the ITSC.

    2.5 Define ITSC participation.

    Outputs

    IT steering committee key responsibilities and participants identified

    IT steering committee priorities identified

    3 Define the ITSC Charter

    The Purpose

    Document the information required to create an effective ITSC Charter.

    Create the procedures required for your IT steering committee.

    Key Benefits Achieved

    Clearly defined roles and responsibilities for your steering committee

    Completed IT Steering Committee Charter document

    Activities

    3.1 Build IT steering committee participant RACI.

    3.2 Define your responsibility cadence and agendas.

    3.3 Develop IT steering committee procedures.

    3.4 Define your IT steering committee purpose statement and goals.

    Outputs

    IT steering committee charter: procedures, agenda, and RACI

    Defined purpose statement and goals

    4 Define the ITSC Process

    The Purpose

    Define and test your IT steering committee processes.

    Get buy-in from your key stakeholders through your stakeholder presentation.

    Key Benefits Achieved

    Stakeholder understanding of the purpose and procedures of IT steering committee membership

    Activities

    4.1 Define your high-level IT steering committee processes.

    4.2 Conduct scenario testing on key processes, establish ITSC metrics.

    4.3 Build your ITSC stakeholder presentation.

    4.4 Manage potential objections.

    Outputs

    IT steering committee SIPOC maps

    Refined stakeholder presentation

    5 Define Project Prioritization Criteria

    The Purpose

    Key Benefits Achieved

    Activities

    5.1 Create prioritization criteria

    5.2 Customize the project prioritization tool

    5.3 Pilot test the tool

    5.4 Define action plan and next steps

    Outputs

    IT Steering Committee Project Prioritization Tool

    Action plan

    Further reading

    Establish an Effective IT Steering Committee

    Have the right people making the right decisions to drive IT success.

    Our understanding of the problem

    This Research Is Designed For:

    • CIOs
    • IT Leaders

    This Research Will Also Assist:

    • Business Partners

    This Research Will Help You:

    • Structure an IT steering committee with the appropriate membership and responsibilities
    • Define appropriate cadence around business involvement in IT decision making
    • Define your IT steering committee processes, metrics, and timelines
    • Obtain buy-in for IT steering committee participations
    • Define the project prioritization criteria

    This Research Will Help Them:

    • Understand the importance of IT governance and their role
    • Identify and build the investment prioritization criteria

    Executive Summary

    Situation

    • An effective IT steering committee (ITSC) is one of the top predictors of value generated by IT, yet only 11% of CIOs believe their committees are effective.
    • An effective steering committee ensures that the right people are involved in critical decision making to drive organizational value.

    Complication

    • Unfortunately, when CIOs do implement IT steering committees, they often lack the appropriate structure and processes to be effective.
    • Due to the high profile of the IT steering committee membership, CIOs need to get this right – or their reputation is at risk.

    Resolution

    Leverage Info-Tech’s process and deliverables to see dramatic improvements in your business satisfaction through an effective IT steering committee. This blueprint will provide three core customizable deliverables that you can use to launch or optimize your IT steering committee. These include:

    1. IT Steering Committee Charter: Customizable charter complete with example purpose, goals, responsibilities, procedures, RACI, and processes. Use this template in combination with this blueprint to get a highly tailored committee.
    2. IT Stakeholder Presentation: Use our customizable presentation guide to build understanding around the goals and purpose of the IT steering committee and generate support from your leadership team.
    3. IT Steering Committee Project Prioritization Tool: Engage your IT steering committee participants in defining the project prioritization criteria. Use our template to track project prioritization and assess your portfolio.

    Info-Tech Insight

    1. 88% of IT steering committees fail. The organizations that succeed have clearly defined responsibilities that are based on business needs.
    2. Without a documented process your committee can’t execute on its responsibilities. Clearly define the flow of information to make your committee actionable.
    3. Limit your headaches by holding your IT steering committee accountable for defining project prioritization criteria.

    IT Steering Committee

    Effective IT governance critical in driving business satisfaction with IT. Yet 88% of CIOs believe that their governance structure and processes are not effective. The IT steering committee (ITSC) is the heart of the governance body and brings together critical organizational stakeholders to enable effective decision making (Info-Tech Research Group Webinar Survey).

    IT STEERING COMMITTEES HAVE 3 PRIMARY OBJECTIVES – TO IMPROVE:

    1. Alignment: IT steering committees drive IT and business strategy alignment by having business partners jointly accountable for the prioritization and selection of projects and investments within the context of IT capacity.
    2. Accountability: The ITSC facilitates the involvement and commitment of executive management through clearly defined roles and accountabilities for IT decisions in five critical areas: investments, projects, risk, services, and data.
    3. Value Generation: The ITSC is responsible for the ongoing evaluation of IT value and performance of IT services. The committee should define these standards and approve remediation plans when there is non-achievement.

    "Everyone needs good IT, but no one wants to talk about it. Most CFOs would rather spend time with their in-laws than in an IT steering-committee meeting. But companies with good governance consistently outperform companies with bad. Which group do you want to be in?"

    – Martha Heller, President, Heller Search Associates

    An effective IT steering committee improves IT and business alignment and increases support for IT across the organization

    CEOs’ PERCEPTION OF IT AND BUSINESS ALIGNMENT

    67% of CIOs/CEOs are misaligned on the target role for IT.

    47% of CEOs believe that business goals are going unsupported by IT.

    64% of CEOs believe that improvement is required around IT’s understanding of business goals.

    28% of business leaders are supporters of their IT departments.

    A well devised IT steering committee ensures that core business partners are involved in critical decision making and that decisions are based on business goals – not who shouts the loudest. Leading to faster decision-making time, and better-quality decisions and outcomes.

    Source: Info-Tech CIO/CEO Alignment data

    Despite the benefits, 9 out of 10 steering committees are unsuccessful

    WHY DO IT STEERING COMMITTEES FAIL?

    1. A lack of appetite for an IT steering committee from business partners
    2. An effective ITSC requires participation from core members of the organization’s leadership team. The challenge is that most business partners don’t understand the benefits of an ITSC and the responsibilities aren’t tailored to participants’ needs or interests. It’s the CIOs responsibility to make this case to stakeholders and right-size the committee responsibilities and membership.
    3. IT steering committees are given inappropriate responsibilities
    4. The IT steering committee is fundamentally about decision making; it’s not a working committee. CIOs struggle with clarifying these responsibilities on two fronts: either the responsibilities are too vague and there is no clear way to execute on them within a meeting, or responsibilities are too tactical and require knowledge that participants do not have. Responsibilities should determine who is on the ITSC, not the other way around.
    5. Lack of process around execution
    6. An ITSC is only valuable if members are able to successfully execute on the responsibilities. Without well defined processes it becomes nearly impossible for the ITSC to be actionable. As a result, participants lack the information they need to make critical decisions, agendas are unmet, and meetings are seen as a waste of time.

    GOVERNANCE and ITSC and IT Management

    Organizations often blur the line between governance and management, resulting in the business having say over the wrong things. Understand the differences and make sure both groups understand their role.

    The ITSC is the most senior body within the IT governance structure, involving key business executives and focusing on critical strategic decisions impacting the whole organization.

    Within a holistic governance structure, organizations may have additional committees that evaluate, direct, and monitor key decisions at a more tactical level and report into the ITSC.

    These committees require specialized knowledge and are implemented to meet specific organizational needs. Those operational committees may spark a tactical task force to act on specific needs.

    IT management is responsible for executing on, running, and monitoring strategic activities as determined by IT governance.

    RELATIONSHIP BETWEEN STRATEGIC, TACTICAL, AND OPERATIONAL GROUPS

    Strategic IT Steering Committee
    Tactical

    Project Governance Service Governance

    Risk Governance Information Governance

    IT Management
    Operational Risk Task Force

    This blueprint focuses exclusively on building the IT steering committee. For more information on IT governance see Info-Tech’s blueprint Tailor an IT Governance Plan to Fit Organizational Needs.

    1. Governance of the IT Portfolio & Investments: ensures that funding and resources are systematically allocated to the priority projects that deliver value
    2. Governance of Projects: ensures that IT projects deliver the expected value, and that the PM methodology is measured and effective.
    3. Governance of Risks: ensures the organization’s ability to assess and deliver IT projects and services with acceptable risk.
    4. Governance of Services: ensures that IT delivers the required services at the acceptable performance levels.
    5. Governance of Information and Data: ensures the appropriate classification and retention of data based on business need.

    If these symptoms resonate with you, it might be time to invest in building an IT steering committee

    SIGNS YOU MAY NEED TO BUILD AN IT STEERING COMMITTEE

    As CIO I find that there is a lack of alignment between business and IT strategies.
    I’ve noticed that projects are thrown over the fence by stakeholders and IT is expected to comply.
    I’ve noticed that IT projects are not meeting target project metrics.
    I’ve struggled with a lack of accountability for decision making, especially by the business.
    I’ve noticed that the business does not understand the full cost of initiatives and projects.
    I don’t have the authority to say “no” when business requests come our way.
    We lack a standardized approach for prioritizing projects.
    IT has a bad reputation within the organization, and I need a way to improve relationships.
    Business partners are unaware of how decisions are made around IT risks.
    Business partners don’t understand the full scope of IT responsibilities.
    There are no SLAs in place and no way to measure stakeholder satisfaction with IT.

    Info-Tech’s approach to implementing an IT steering committee

    Info-Tech’s IT steering committee development blueprint will provide you with the required tools, templates, and deliverables to implement a right-sized committee that’s effective the first time.

    • Measure your business partner level of awareness and interest in the five IT governance areas, and target specific responsibilities for your steering committee based on need.
    • Customize Info-Tech’s IT Steering Committee Charter Template to define and document the steering committee purpose, responsibilities, participation, and cadence.
    • Build critical steering committee processes to enable information to flow into and out of the committee to ensure that the committee is able to execute on responsibilities.
    • Customize Info-Tech’s IT Steering Committee Stakeholder Presentation template to make your first meeting a breeze, providing stakeholders with the information they need, with less than two hours of preparation time.
    • Leverage our workshop guide and prioritization tools to facilitate a meeting with IT steering committee members to define the prioritization criteria for projects and investments and roll out a streamlined process.

    Info-Tech’s Four-Phase Process

    Key Deliverables:
    1 2 3 4
    Build the Steering Committee Charter Define ITSC Processes Build the Stakeholder Presentation Define the Prioritization Criteria
    • IT Steering Committee Stakeholder Survey
    • IT Steering Committee Charter
      • Purpose
      • Responsibilities
      • RACI
      • Procedures
    • IT Steering Committee SIPOC (Suppliers, Inputs, Process, Outputs, Customers)
    • Defined process frequency
    • Defined governance metrics
    • IT Steering Committee Stakeholder Presentation template
      • Introduction
      • Survey outcomes
      • Responsibilities
      • Next steps
      • ITSC goals
    • IT project prioritization facilitation guide
    • IT Steering Committee Project Prioritization Tool
    • Project Intake Form

    Leverage both COBIT and Info-Tech-defined metrics to evaluate the success of your program or project

    COBIT METRICS Alignment
    • Percent of enterprise strategic goals and requirements supported by strategic goals.
    • Level of stakeholder satisfaction with scope of the planned portfolio of programs and services.
    Accountability
    • Percent of executive management roles with clearly defined accountabilities for IT decisions.
    • Rate of execution of executive IT-related decisions.
    Value Generation
    • Level of stakeholder satisfaction and perceived value.
    • Number of business disruptions due to IT service incidents.
    INFO-TECH METRICS Survey Metrics:
    • Percent of business leaders who believe they understand how decisions are made in the five governance areas.
    • Percentage of business leaders who believe decision making involved the right people.
    Value of Customizable Deliverables:
    • Estimated time to build IT steering committee charter independently X cost of employee
    • Estimated time to build and generate customer stakeholder survey and generate reports X cost of employee
    • # of project interruptions due to new or unplanned projects

    CASE STUDY

    Industry: Consumer Goods

    Source: Interview

    Situation

    A newly hired CIO at a large consumer goods company inherited an IT department with low maturity from her predecessor. Satisfaction with IT was very low across all business units, and IT faced a lot of capacity constraints. The business saw IT as a bottleneck or red tape in terms of getting their projects approved and completed.

    The previous CIO had established a steering committee for a short time, but it had a poorly established charter that did not involve all of the business units. Also the role and responsibilities of the steering committee were not clearly defined. This led the committee to be bogged down in politics.

    Due to the previous issues, the business was wary of being involved in a new steering committee. In order to establish a new steering committee, the new CIO needed to navigate the bad reputation of the previous CIO.

    Solution

    The CIO established a new steering committee engaging senior members of each business unit. The roles of the committee members were clearly established in the new steering committee charter and business stakeholders were informed of the changes through presentations.

    The importance of the committee was demonstrated through the new intake and prioritization process for projects. Business stakeholders were impressed with the new process and its transparency and IT was no longer seen as a bottleneck.

    Results

    • Satisfaction with IT increased by 12% after establishing the committee and IT was no longer seen as red tape for completing projects
    • IT received approval to hire two more staff members to increase capacity
    • IT was able to augment service levels, allowing them to reinvest in innovative projects
    • Project prioritization process was streamlined

    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

    Establish an Effective IT Steering Committee

    Build the Steering Committee Charter Define ITSC Processes Build the Stakeholder Presentation Define the Prioritization Criteria
    Best-Practice Toolkit

    1.1 Survey Your Steering Committee Stakeholders

    1.2 Build Your ITSC Charter

    2.1 Build a SIPOC

    2.2 Define Your ITSC Process

    3.1 Customize the Stakeholder Presentation

    4.1 Establish your Prioritization Criteria

    4.2 Customize the Project Prioritization Tool

    4.3 Pilot Test Your New Prioritization Criteria

    Guided Implementations
    • Launch your stakeholder survey
    • Analyze the results of the survey
    • Build your new ITSC charter
    • Review your completed charter
    • Build and review your SIPOC
    • Review your high-level steering committee processes
    • Customize the presentation
    • Build a script for the presentation
    • Practice the presentation
    • Review and select prioritization criteria
    • Review the Project Prioritization Tool
    • Review the results of the tool pilot test
    Onsite Workshop

    Module 1:

    Build a New ITSC Charter

    Module 2:

    Design Steering Committee Processes

    Module 3:

    Present the New Steering Committee to Stakeholders

    Module 4:

    Establish Project Prioritization Criteria

    Phase 1 Results:
    • Customized ITSC charter

    Phase 2 Results:

    • Completed SIPOC and steering committee processes
    Phase 3 Results:
    • Customized presentation deck and script
    Phase 4 Results:
    • Customized project prioritization tool

    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

    Build the IT Steering Committee

    1.1 Launch stakeholder survey for business leaders

    1.2 Analyze results with an Info-Tech Advisor

    1.3 Identify opportunities and threats to successful IT steering committee implementation.

    1.4 Develop the fit-for-purpose approach

    Define the ITSC Goals

    2.1 Review the role of the IT steering committee

    2.2 Identify IT steering committee goals and objectives

    2.3 Conduct a SWOT analysis on the five governance areas

    2.4 Define the key responsibilities of the ITSC 2.5 Define ITSC participation

    Define the ITSC Charter

    3.1 Build IT steering committee participant RACI

    3.2 Define your responsibility cadence and agendas

    3.3 Develop IT steering committee procedures

    3.4 Define your IT steering committee purpose statement and goals

    Define the ITSC Process

    4.1 Define your high-level IT steering committee processes

    4.2 Conduct scenario testing on key processes, establish ITSC metrics

    4.3 Build your ITSC stakeholder presentation

    4.4 Manage potential objections

    Define Project Prioritization Criteria

    5.1 Create prioritization criteria

    5.2 Customize the Project Prioritization Tool

    5.3 Pilot test the tool

    5.4 Define action plan and next steps

    Deliverables
    1. Report on business leader governance priorities and awareness
    2. Refined workshop agenda
    1. IT steering committee priorities identified
    2. IT steering committee key responsibilities and participants identified
    1. IT steering committee charter: procedures, agenda, and RACI
    2. Defined purpose statement and goals
    1. IT steering committee SIPOC maps
    2. Refined stakeholder presentation
    1. Project Prioritization Tool
    2. Action plan

    Phase 1

    Build the IT Steering Committee Charter

    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: Formalize the Security Policy Program

    Proposed Time to Completion: 1-2 weeks

    Select Your ITSC Members

    Start with an analyst kick-off call:

    • Launch your stakeholder survey

    Then complete these activities…

    • Tailor the survey questions
    • Identify participants and tailor email templates

    With these tools & templates:

    • ITSC Stakeholder Survey
    • ITSC Charter Template

    Review Stakeholder Survey Results

    Review findings with analyst:

    • Review the results of the Stakeholder Survey

    Then complete these activities…

    • Customize the ITSC Charter Template

    With these tools & templates:

    • ITSC Charter Template

    Finalize the ITSC Charter

    Finalize phase deliverable:

    • Review the finalized ITSC charter with an Info-Tech analyst

    Then complete these activities…

    • Finalize any changes to the ITSC Charter
    • Present it to ITSC Members

    With these tools & templates:

    • ITSC Charter Template

    Build the IT Steering Committee Charter

    This step will walk you through the following activities:

    • Launch and analyze the stakeholder survey
    • Define your ITSC goals and purpose statement
    • Determine ITSC responsibilities and participants
    • Determine ITSC procedures

    This step involves the following participants:

    • CIO
    • IT Steering Committee
    • IT Leadership Team
    • PMO

    Key Insight:

    Be exclusive with your IT steering committee membership. Determine committee participation based on committee responsibilities. Select only those who are key decision makers for the activities the committee is responsible for and, wherever possible, keep membership to 5-8 people.

    Tailor Info-Tech’s IT Steering Committee Charter Template to define terms of reference for the ITSC

    1.1

    A charter is the organizational mandate that outlines the purpose, scope, and authority of the ITSC. Without a charter, the steering committee’s value, scope, and success criteria are unclear to participants, resulting in unrealistic stakeholder expectations and poor organizational acceptance.

    Start by reviewing Info-Tech’s template. Throughout this section we will help you to tailor its contents.

    Committee Purpose: The rationale, benefits of, and overall function of the committee.

    Responsibilities: What tasks/decisions the accountable committee is making.

    Participation: Who is on the committee

    RACI: Who is accountable, responsible, consulted, and informed regarding each responsibility.

    Committee Procedures and Agendas: Includes how the committee will be organized and how the committee will interact and communicate with business units.

    A screenshot of Info-Tech's <em data-verified=IT Steering Committee Charter Template.">

    IT Steering Committee Charter

    Take a data-driven approach to build your IT steering committee based on business priorities

    1.2

    Leverage Info-Tech’s IT Steering Committee Stakeholder Surveyand reports to quickly identify business priorities and level of understanding of how decisions are made around the five governance areas.

    Use these insights to drive the IT steering committee responsibilities, participation, and communication strategy.

    The Stakeholder Survey consists of 17 questions on:

    • Priority governance areas
    • Desired level of involvement in decision making in the five governance areas
    • Knowledge of how decisions are made
    • Five open-ended questions on improvement opportunities

    To simplify your data collection and reporting, Info-Tech can launch a web-based survey, compile the report data and assist in the data interpretation through one of our guided implementations.

    Also included is a Word document with recommended questions, if you prefer to manage the survey logistics internally.

    A screenshot of Info-Tech's first page of the <em data-verified=IT Steering Committee Stakeholder Survey "> A screenshot of Info-Tech's survey.

    Leverage governance reports to define responsibilities and participants, and in your presentation to stakeholders

    1.3

    A screenshot is displayed. It advises that 72% of stakeholders do <strong data-verified= understand how decisions around IT services are made (quality, availability, etc.). Two graphs are included in the screenshot. One of the bar graphs shows the satisfaction with the quality of decisions and transparency around IT services. The other bar graph displays IT decisions around service delivery and quality that involve the right people.">

    OVERALL PRIORITIES

    You get:

    • A clear breakdown of stakeholders’ level of understanding on how IT decisions are made in the five governance areas
    • Stakeholder perceptions on the level of IT and business involvement in decision making
    • Identification of priority areas

    So you can:

    • Get an overall pulse check for understanding
    • Make the case for changes in decision-making accountability
    • Identify which areas the IT steering committee should focus on
    A screenshot is displayed. It advises that 80% of stakeholders do <strong data-verified=not understand how decisions around IT investments or project and service resourcing are made. Two bar graphs are displayed. One of the bar graphs shows the satisfaction with the quality of decisions made around IT investments. The other graph display IT decisions around spending priorities involving the right people.">

    GOVERNANCE AREA REPORTS

    You get:

    • Satisfaction score for decision quality in each governance area
    • Breakdown of decision-making accountability effectiveness
    • Identified level of understanding around decision making
    • Open-ended comments

    So you can:

    • Identify the highest priority areas to change.
    • To validate changes in decision-making accountability
    • To understand business perspectives on decision making.

    Conduct a SWOT analysis of the five governance areas

    1.4

    1. Hold a meeting with your IT leadership team to conduct a SWOT analysis on each of the five governance areas. Start by printing off the following five slides to provide participants with examples of the role of governance and the symptoms of poor governance in each area.
    2. In groups of 1-2 people, have each group complete a SWOT analysis for one of the governance areas. For each consider:
    • Strengths: What is currently working well in this area?
    • Weaknesses: What could you improve? What are some of the challenges you’re experiencing?
    • Opportunities: What are some organizational trends that you can leverage? Consider whether your strengths or weaknesses that could create opportunities?
    • Threats: What are some key obstacles across people, process, and technology?
  • Have each team or individual rotate until each person has contributed to each SWOT. Add comments from the stakeholder survey to the SWOT.
  • As a group rank each of the five areas in terms of importance for a phase one IT steering committee implementation, and highlight the top 10 challenges, and the top 10 opportunities you see for improvement.
  • Document the top 10 lists for use in the stakeholder presentation.
  • INPUT

    • Survey outcomes
    • Governance overview handouts

    OUTPUT

    • SWOT analysis
    • Ranked 5 areas
    • Top 10 challenges and opportunities identified.

    Materials

    • Governance handouts
    • Flip chart paper, pens

    Participants

    • IT leadership team

    Governance of RISK

    Governance of risk establishes the risk framework, establishes policies and standards, and monitors risks.

    Governance of risk ensures that IT is mitigating all relevant risks associated with IT investments, projects, and services.

    GOVERNANCE ROLES:

    1. Defines responsibility and accountability for IT risk identification and mitigation.
    2. Ensures the consideration of all elements of IT risk, including value, change, availability, security, project, and recovery
    3. Enables senior management to make better IT decisions based on the evaluation of the risks involved
    4. Facilitates the identification and analysis of IT risk and ensures the organization’s informed response to that risk.

    Symptoms of poor governance of risk

    • Opportunities for value creation are missed by not considering or assessing IT risk, or by completely avoiding all risk.
    • No formal risk management process or accountabilities exist.
    • There is no business continuity strategy.
    • Frequent security breaches occur.
    • System downtime occurs due to failed IT changes.

    Governance of PPM

    Governance of the IT portfolio achieves optimum ROI through prioritization, funding, and resourcing.

    PPM practices create value if they maximize the throughput of high-value IT projects at the lowest possible cost. They destroy value when they foster needlessly sophisticated and costly processes.

    GOVERNANCE ROLES:

    1. Ensures that the projects that deliver greater business value get a higher priority.
    2. Provides adequate funding for the priority projects and ensures adequate resourcing and funding balanced across the entire portfolio of projects.
    3. Makes the business and IT jointly accountable for setting project priorities.
    4. Evaluate, direct, and monitor IT value metrics and endorse the IT strategy and monitor progress.

    Symptoms of poor governance of PPM/investments

    • The IT investment mix is determined solely by Finance and IT.
    • It is difficult to get important projects approved.
    • Projects are started then halted, and resources are moved to other projects.
    • Senior management has no idea what projects are in the backlog.
    • Projects are approved without a valid business case.

    Governance of PROJECTS

    Governance of projects improves the quality and speed of decision making for project issues.

    Don’t confuse project governance and management. Governance makes the decisions regarding allocation of funding and resources and reviews the overall project portfolio metrics and process methodology.

    Management ensures the project deliverables are completed within the constraints of time, budget, scope, and quality.

    GOVERNANCE ROLES:

    1. Monitors and evaluates the project management process and critical project methodology metrics.
    2. Ensures review and mitigation of project issue and that management is aware of projects in crisis.
    3. Ensures that projects beginning to show characteristics of failure cannot proceed until issues are resolved.
    4. Endorses the project risk criteria, and monitors major risks to project completion.
    5. Approves the launch and execution of projects.

    Symptoms of poor governance of projects

    • Projects frequently fail or get cancelled.
    • Project risks and issues are not identified or addressed.
    • There is no formal project management process.
    • There is no senior stakeholder responsible for making project decisions.
    • There is no formal project reporting.

    Governance of SERVICES

    Governance of services ensures delivery of a highly reliable set of IT services.

    Effective governance of services enables the business to achieve the organization’s goals and strategies through the provision of reliable and cost-effective services.

    GOVERNANCE ROLES:

    1. Ensures the satisfactory performance of those services critical to achieving business objectives.
    2. Monitors and directs changes in service levels.
    3. Ensures operational and performance objectives for IT services are met.
    4. Approves policy and standards on the service portfolio.

    Symptoms of poor governance of service

    • There is a misalignment of business needs and expectations with IT capability.
    • No metrics are reported for IT services.
    • The business is unaware of the IT services available to them.
    • There is no accountability for service level performance.
    • There is no continuous improvement plan for IT services.
    • IT services or systems are frequently unavailable.
    • Business satisfaction with IT scores are low.

    Governance of INFORMATION

    Governance of information ensures the proper handling of data and information.

    Effective governance of information ensures the appropriate classification, retention, confidentiality, integrity, and availability of data in line with the needs of the business.

    GOVERNANCE ROLES:

    1. Ensures the information lifecycle owner and process are defined and endorse by business leadership.
    2. Ensures the controlled access to a comprehensive information management system.
    3. Ensures knowledge, information, and data are gathered, analyzed, stored, shared, used, and maintained.
    4. Ensures that external regulations are identified and met.

    Symptoms of poor governance of information

    • There is a lack of clarity around data ownership, and data quality standards.
    • There is insufficient understanding of what knowledge, information, and data are needed by the organization.
    • There is too much effort spent on knowledge capture as opposed to knowledge transfer and re-use.
    • There is too much focus on storing and sharing knowledge and information that is not up to date or relevant.
    • Personnel see information management as interfering with their work.

    Identify the responsibilities of the IT steering committee

    1.5

    1. With your IT leadership team, review the typical responsibilities of the IT steering committee on the following slide.
    2. Print off the following slide, and in your teams of 1-2 have each group identify which responsibilities they believe the IT steering committee should have, brainstorm any additional responsibilities, and document their reasoning.
    3. Note: The bolded responsibilities are the ones that are most common to IT steering committees, and greyed out responsibilities are typical of a larger governance structure. Depending on their level of importance to your organization, you may choose to include the responsibility.

    4. Have each team present to the larger group, track the similarities and differences between each of the groups, and come to consensus on the list of responsibilities.
    5. Complete a sanity check – review your swot analysis and survey results. Do the responsibilities you’ve identified resolve the critical challenges or weaknesses?
    6. As a group, consider the responsibilities and consider whether you can reasonably implement those in one year, or if there are any that will need to wait until year two of the IT steering committee.
    7. Modify the list of responsibilities in Info-Tech’s IT Steering Committee Charter by deleting the responsibilities you do not need and adding any that you identified in the process.

    INPUT

    • SWOT analysis
    • Survey reports

    OUTPUT

    • Defined ITSC responsibilities documented in the ITSC Charter

    Materials

    • Responsibilities handout
    • Voting dots

    Participants

    • IT leadership team

    Typical IT steering committee and governance responsibilities

    The bolded responsibilities are those that are most common to IT steering committees, and responsibilities listed in grey are typical of a larger governance structure.

    INVESTMENTS / PPM

    • Establish the target investment mix
    • Evaluate and select programs/projects to fund
    • Monitor IT value metrics
    • Endorse the IT budget
    • Monitor and report on program/project outcomes
    • Direct the governance optimization
    • Endorse the IT strategy

    PROJECTS

    • Monitor project management metrics
    • Approve launch of projects
    • Review major obstacles to project completion
    • Monitor a standard approach to project management
    • Monitor and direct project risk
    • Monitor requirements gathering process effectiveness
    • Review feasibility studies and formulate alternative solutions for high risk/high investment projects

    SERVICE

    • Monitor stakeholder satisfaction with services
    • Monitor service metrics
    • Approve plans for new or changed service requirements
    • Monitor and direct changes in service levels
    • Endorse the enterprise architecture
    • Approve policy and standards on the service portfolio
    • Monitor performance and capacity

    RISK

    • Monitor risk management metrics
    • Review the prioritized list of risks
    • Monitor changes in external regulations
    • Maintain risk profiles
    • Approve the risk management emergency action process
    • Maintain a mitigation plan to minimize risk impact and likelihood
    • Evaluate risk management
    • Direct risk management

    INFORMATION / DATA

    • Define information lifecycle process ownership
    • Monitor information lifecycle metrics
    • Define and monitor information risk
    • Approve classification categories of information
    • Approve information lifecycle process
    • Set policies on retirement of information

    Determine committee membership based on the committee’s responsibilities

    • One of the biggest benefits to an IT steering committee is it involves key leadership from the various lines of business across the organization.
    • However, in most cases, more people get involved than is required, and all the committee ends up accomplishing is a lot of theorizing. Participants should be selected based on the identified responsibilities of the IT steering committee.
    • If the responsibilities don’t match the participants, this will negatively impact committee effectiveness as leaders become disengaged in the process and don’t feel like it applies to them or accomplishes the desired goals. Once participants begin dissenting, it’s significantly more difficult to get results.
    • Be careful! When you have more than one individual in a specific role, select only the people whose attendance is absolutely critical. Don’t let your governance collapse under committee overload!

    LIKELY PARTICIPANT EXAMPLES:

    MUNICIPALITY

    • City Manager
    • CIO/IT Leader
    • CCO
    • CFO
    • Division Heads

    EDUCATION

    • Provost
    • Vice Provost
    • VP Academic
    • VP Research
    • VP Public Affairs
    • VP Operations
    • VP Development
    • Etc.

    HEALTHCARE

    • President/CEO
    • CAO
    • EVP/ EDOs
    • VPs
    • CIO
    • CMO

    PRIVATE ORGANIZATIONS

    • CEO
    • CFO
    • COO
    • VP Marketing
    • VP Sales
    • VP HR
    • VP Product Development
    • VP Engineering
    • Etc.

    Identify committee participants and responsibility cadence

    1.6

    1. In a meeting with your IT leadership team, review the list of committee responsibilities and document them on a whiteboard.
    2. For each responsibility, identify the individuals whom you would want to be either responsible or accountable for that decision.
    3. Repeat this until you’ve completed the exercise for each responsibility.
    4. Group the responsibilities with the same participants and highlight groupings with less than four participants. Consider the responsibility and determine whether you need to change the wording to make it more applicable or if you should remove the responsibility.
    5. Review the grouping, the responsibilities within them, and their participants, and assess how frequently you would like to meet about them – annually, quarterly, or monthly. (Note: suggested frequency can be found in the IT Steering Committee Charter.)
    6. Subdivide the responsibilities for the groupings to determine your annual, quarterly, and monthly meeting schedule.
    7. Validate that one steering committee is all that is needed, or divide the responsibilities into multiple committees.
    8. Document the committee participants in the IT Steering Committee Charter and remove any unneeded responsibilities identified in the previous exercise.

    INPUT

    • List of responsibilities

    OUTPUT

    • ITSC participants list
    • Meeting schedule

    Materials

    • Whiteboard
    • Markers

    Participants

    • IT leadership team

    Committees can only be effective if they have clear and documented authority

    It is not enough to participate in committee meetings; there needs to be a clear understanding of who is accountable, responsible, consulted, and informed about matters brought to the attention of the committee.

    Each committee responsibility should have one person who is accountable, and at least one person who is responsible. This is the best way to ensure that committee work gets done.

    An authority matrix is often used within organizations to indicate roles and responsibilities in relation to processes and activities. Using the RACI model as an example, there is only one person accountable for an activity, although several people may be responsible for executing parts of the activity. In this model, accountable means end-to-end accountability for the process.

    RESPONSIBLE: The one responsible for getting the job done.

    ACCOUNTABLE: Only one person can be accountable for each task.

    CONSULTED: Involvement through input of knowledge and information.

    INFORMED: Receiving information about process execution and quality.

    A chart is depicted to show an example of the authority matrix using the RACI model.

    Define IT steering committee participant RACI for each of the responsibilities

    1.7

    1. Use the table provided in the IT Steering Committee Charter and edit he list of responsibilities to reflect the chosen responsibilities of your ITSC.
    2. Along the top of the chart list the participant names, and in the right hand column of the table document the agreed upon timing from the previous exercise.
    3. For each of the responsibilities identify whether participants are Responsible, Accountable, Consulted, or Informed by denoting an R, A, C, I, or N/A in the table. Use N/A if this is a responsibility that the participant has no involvement in.
    4. Review your finalized RACI chart. If there are participants who are only consulted or informed about the majority of responsibilities, consider removing them from the IT steering committee. You only want the decision makers on the committee.

    INPUT

    • Responsibilities
    • Participants

    OUTPUT

    • RACI documented in the ITSC Charter

    Materials

    • ITSC RACI template
    • Projector

    Participants

    • IT leadership

    Building the agenda may seem trivial, but it is key for running effective meetings

    49% of people consider unfocused meetings as the biggest workplace time waster.*

    63% of the time meetings do not have prepared agendas.*

    80% Reduction of time spent in meetings by following a detailed agenda and starting on time.*

    *(Source: http://visual.ly/fail-plan-plan-fail).

    EFFECTIVE MEETING AGENDAS:

    1. Have clearly defined meeting objectives.
    2. Effectively time-boxed based on priority items.
    3. Defined at least two weeks prior to the meetings.
    4. Evaluated regularly – are not static.
    5. Leave time at the end for new business, thus minimizing interruptions.

    BUILDING A CONSENT AGENDA

    A consent agenda is a tool to free up time at meetings by combining previously discussed or simple items into a single item. Items that can be added to the consent agenda are those that are routine, noncontroversial, or provided for information’s sake only. It is expected that participants read this information and, if it is not pulled out, that they are in agreement with the details.

    Members have the option to pull items out of the consent agenda for discussion if they have questions. Otherwise these are given no time on the agenda.

    Define the IT steering committee meeting agendas and procedures

    1.8

    Agendas

    1. Review the listed responsibilities, participants, and timing as identified in a previous exercise.
    2. Annual meeting: Identify if all of the responsibilities will be included in the annual meeting agenda (likely all governance responsibilities).
    3. Quarterly Meeting Agenda: Remove the meeting responsibilities from the annual meeting agenda that are not required and create a list of responsibilities for the quarterly meetings.
    4. Monthly Meeting Agenda: Remove all responsibilities from the list that are only annual or quarterly and compile a list of monthly meeting responsibilities.
    5. Review each responsibility, and estimate the amount of time each task will take within the meeting. We recommend giving yourself at least an extra 10-20% more time for each agenda item for your first meeting. It’s better to have more time than to run out.
    6. Complete the Agenda Template in the IT Steering Committee Charter.

    Procedures:

    1. Review the list of IT steering committee procedures, and replace the grey text with the information appropriate for your organization.

    INPUT

    • Responsibility cadence

    OUTPUT

    • ITSC annual, quarterly, monthly meeting agendas & procedures

    Materials

    • ITSC Charter

    Participants

    • IT leadership team

    Draft your IT steering committee purpose statement and goals

    1.9

    1. In a meeting with your IT leadership team – and considering the defined responsibilities, participants, and opportunities and threats identified – review the example goal statement in the IT Steering Committee Charter, and first identify whether any of these statements apply to your organization. Select the statements that apply and collaboratively make any changes needed.
    2. Define unique goal statements by considering the following questions:
      1. What three things would you realistically list for the ITSC to achieve.
      2. If you were to accomplish three things in the next year, what would those be?
    3. Document those goals in the IT Steering Committee Charter.
    4. With those goal statements in mind, consider the overall purpose of the committee. The purpose statement should be a reflection of what the committee does, why it does it, and the goals.
    5. Have each individual review the example purpose statement, and draft what they think a good purpose statement would be.
    6. Present each statement, and work together to determine a best of breed statement.
    7. Document this in the IT Steering Committee Charter.

    INPUT

    • Responsibilities, participants, top 10 lists of challenges and opportunities.

    OUTPUT

    • ITSC goals and purpose statement

    Materials

    • ITSC Charter

    Participants

    • IT leadership team

    CASE STUDY

    "Clearly defined Committee Charter allows CIO to escape the bad reputation of previous committee."

    Industry: Consumer Goods

    Source: Interview

    CHALLENGE

    The new CIO at a large consumer goods company had difficulty generating interest in creating a new IT steering committee. The previous CIO had created a steering committee that was poorly organized and did not involve all of the pertinent members. This led to a committee focused on politics that would often devolve into gossip. Also, many members were dissatisfied with the irregular meetings that would often go over their allotted time.

    In order to create a new committee, the new CIO needed to dispel the misgivings of the business leadership.

    SOLUTION

    The new CIO decided to build the new steering committee from the ground up in a systematic way.

    She collected information from relevant stakeholders about what they know/how they feel about IT and used this information to build a detailed charter.

    Using this info she outlined the new steering committee charter and included in it the:

    1. Purpose
    2. Responsibilities
    3. RACI Chart
    4. Procedures

    OUTCOME

    The new steering committee included all the key members of business units, and each member was clear on their roles in the meetings. Meetings were streamlined and effective. The adjustments in the charter and the improvement in meeting quality played a role in improving the satisfaction scores of business leaders with IT by 21%.

    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

    A screenshot of activity 1.1 is displayed. 1.1 is about surveying your ITSC stakeholders.

    Survey your ITSC stakeholders

    Prior to the workshop, Info-Tech’s advisors will work with you to launch the IT Steering Committee Stakeholder Survey to understand business priorities and level of understanding of how decisions are made. Using this data, we will create the IT steering committee responsibilities, participation, and communication strategy.

    1.7

    A screenshot of activity 1.7 is displayed. 1.7 is about defining a participant RACI for each of the responsibilities.

    Define a participant RACI for each of the responsibilities

    The analyst will facilitate several exercises to help you and your stakeholders create an authority matrix. The output will be defined responsibilities and authorities for members.

    Phase 2

    Build the IT Steering Committee 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: Define your ITSC Processes
    Proposed Time to Completion: 2 weeks

    Review SIPOCs and Process Creation

    Start with an analyst kick-off call:

    • Review the purpose of the SIPOC and how to build one

    Then complete these activities…

    • Build a draft SIPOC for your organization

    With these tools & templates:

    Phase 2 of the Establish an Effective IT Steering Committee blueprint

    Finalize the SIPOC

    Review Draft SIPOC:

    • Review and make changes to the SIPOC
    • Discuss potential metrics

    Then complete these activities…

    • Test survey link
    • Info-Tech launches survey

    With these tools & templates:

    Phase 2 of the Establish an Effective IT Steering Committee blueprint

    Finalize Metrics

    Finalize phase deliverable:

    • Finalize metrics

    Then complete these activities…

    • Establish ITSC metric triggers

    With these tools & templates:

    Phase 2 of the Establish an Effective IT Steering Committee blueprint

    Build the IT Steering Committee Process

    This step will walk you through the following activities:

    • Define high-level steering committee processes using SIPOC
    • Select steering committee metrics

    This step involves the following participants:

    • CIO
    • IT Steering Committee
    • IT Leadership Team
    • PMO

    Key Insight:

    Building high-level IT steering committee processes brings your committee to life. Having a clear process will ensure that you have the right information from the right sources so that committees can operate and deliver the appropriate output to the customers who need it.

    Build your high-level IT steering committee processes to enable committee functionality

    The IT steering committee is only valuable if members are able to successfully execute on responsibilities.

    One of the most common mistakes organizations make is that they build their committee charters and launch into their first meeting. Without defined inputs and outputs, a committee does not have the needed information to be able to effectively execute on responsibilities and is unable to meet its stated goals.

    The arrows in this picture represent the flow of information between the IT steering committee, other committees, and IT management.

    Building high-level processes will define how that information flows within and between committees and will enable more rapid decision making. Participants will have the information they need to be confident in their decisions.

    Strategic IT Steering Committee
    Tactical

    Project Governance Service Governance

    Risk Governance Information Governance

    IT Management
    Operational Risk Task Force

    Define the high-level process for each of the IT steering committee responsibilities

    Info-Tech recommends using SIPOC as a way of defining how the IT steering committee will operate.

    Derived from the core methodologies of Six Sigma process management, SIPOC – a model of Suppliers, Inputs, Processes, Outputs, Customers – is one of several tools that organizations can use to build high level processes. SIPOC is especially effective when determining process scope and boundaries and to gain consensus on a process.

    By doing so you’ll ensure that:

    1. Information and documentation required to complete each responsibility is identified.
    2. That the results of committee meetings are distributed to those customers who need the information.
    3. Inputs and outputs are identified and that there is defined accountability for providing these.

    Remember: Your IT steering committee is not a working committee. Enable effective decision making by ensuring participants have the necessary information and appropriate recommendations from key stakeholders to make decisions.

    Supplier Input
    Who provides the inputs to the governance responsibility. The documented information, data, or policy required to effectively respond to the responsibility.
    Process
    In this case this represents the IT steering committee responsibility defined in terms of the activity the ITSC is performing.
    Output Customer
    The outcome of the meeting: can be approval, rejection, recommendation, request for additional information, endorsement, etc. Receiver of the outputs from the committee responsibility.

    Define your SIPOC model for each of the IT steering committee responsibilities

    2.1

    1. In a meeting with your IT leadership, draw the SIPOC model on a whiteboard or flip-chart paper. Either review the examples on the following slides or start from scratch.
    2. If you are adjusting the following slides, consider the templates you already have which would be appropriate inputs and make adjustments as needed.

    For atypical responsibilities:

    1. Start with the governance responsibility and identify what specifically it is that the IT steering committee is doing with regards to that responsibility. Write that in the center of the model.
    2. As a group, consider what information or documentation would be required by the participants to effectively execute on the responsibility.
    3. Identify which individual will supply each piece of documentation. This person will be accountable for this moving forward.
    4. Outputs: Once the committee has met about the responsibility, what information or documentation will be produced. List all of those documents.
    5. Identify the individuals who need to receive the outputs of the information.
    6. Repeat this for all of the responsibilities.
    7. Once complete, document the SIPOC models in the IT Steering Committee Charter.

    INPUT

    • List of responsibilities
    • Example SIPOCs

    OUTPUT

    • SIPOC model for all responsibilities.

    Materials

    • Whiteboard
    • Markers
    • ITSC Charter

    Participants

    • IT leadership team

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Establish the target investment mix
    Supplier Input
    CIO
    • Target investment mix and rationale
    Process
    Responsibility: The IT steering committee shall review and approve the target investment mix.
    Output Customer
    • Approval of target investment mix
    • Rejection of target investment mix
    • Request for additional information
    • CFO
    • CIO
    • IT leadership
    SIPOC: Endorse the IT budget
    Supplier Input
    CIO
    • Recommendations

    See Info-Tech’s blueprint IT Budget Presentation

    Process

    Responsibility: Review the proposed IT budget as defined by the CIO and CFO.

    Output Customer
    • Signed endorsement of the IT budget
    • Request for additional information
    • Recommendation for changes to the IT budget.
    • CFO
    • CIO
    • IT leadership

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Monitor IT value metrics
    Supplier Input
    CIO
    • IT value dashboard
    • Key metric takeaways
    • Recommendations
    CIO Business Vision
    Process

    Responsibility: Review recommendations and either accept or reject recommendations. Refine go-forward metrics.

    Output Customer
    • Launch corrective task force
    • Accept recommendations
    • Define target metrics
    • CEO
    • CFO
    • Business executives
    • CIO
    • IT leadership
    SIPOC: Evaluate and select programs/projects to fund
    Supplier Input
    PMO
    • Recommended project list
    • Project intake documents
    • Prioritization criteria
    • Capacity metrics
    • IT budget

    See Info-Tech’s blueprint

    Grow Your Own PPM Solution
    Process

    Responsibility: The ITSC will approve the list of projects to fund based on defined prioritization criteria – in line with capacity and IT budget.

    It is also responsible for identifying the prioritization criteria in line with organizational priorities.

    Output Customer
    • Approved project list
    • Request for additional information
    • Recommendation for increased resources
    • PMO
    • CIO
    • Project sponsors

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Endorse the IT strategy
    Supplier Input
    CIO
    • IT strategy presentation

    See Info-Tech’s blueprint

    IT Strategy and Roadmap
    Process

    Responsibility: Review, understand, and endorse the IT strategy.

    Output Customer
    • Signed endorsement of the IT strategy
    • Recommendations for adjustments
    • CEO
    • CFO
    • Business executives
    • IT leadership
    SIPOC: Monitor project management metrics
    Supplier Input
    PMO
    • Project metrics report with recommendations
    Process

    Responsibility: Review recommendations around PM metrics and define target metrics. Endorse current effectiveness levels or determine corrective action.

    Output Customer
    • Accept project metrics performance
    • Accept recommendations
    • Launch corrective task force
    • Define target metrics
    • PMO
    • Business executives
    • IT leadership

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Approve launch of planned and unplanned project
    Supplier Input
    CIO
    • Project list and recommendations
    • Resourcing report
    • Project intake document

    See Info-Tech’s Blueprint:

    Grow Your Own PPM Solution
    Process

    Responsibility: Review the list of projects and approve the launch or reprioritization of projects.

    Output Customer
    • Approved launch of projects
    • Recommendations for changes to project list
    • CFO
    • CIO
    • IT leadership
    SIPOC: Monitor stakeholder satisfaction with services and other service metrics
    Supplier Input
    Service Manager
    • Service metrics report with recommendations
    Info-Tech End User Satisfaction Report
    Process

    Responsibility: Review recommendations around service metrics and define target metrics. Endorse current effectiveness levels or determine corrective action.

    Output Customer
    • Accept service level performance
    • Accept recommendations
    • Launch corrective task force
    • Define target metrics
    • Service manager
    • Business executives
    • IT leadership

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Approve plans for new or changed service requirements
    Supplier Input
    Service Manager
    • Service change request
    • Project request and change plan
    Process

    Responsibility: Review IT recommendations, approve changes, and communicate those to staff.

    Output Customer
    • Approved service changes
    • Rejected service changes
    • Service manager
    • Organizational staff
    SIPOC: Monitor risk management metrics
    Supplier Input
    CIO
    • Risk metrics report with recommendations
    Process

    Responsibility: Review recommendations around risk metrics and define target metrics. Endorse current effectiveness levels or determine corrective action.

    Output Customer
    • Accept risk register and mitigation strategy
    • Launch corrective task force to address risks
    • Risk manager
    • Business executives
    • IT leadership

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Review the prioritized list of risks
    Supplier Input
    Risk Manager
    • Risk register
    • Mitigation strategies
    See Info-Tech’s risk management research to build a holistic risk strategy.
    Process

    Responsibility: Accept the risk registrar and define any additional action required.

    Output Customer
    • Accept risk register and mitigation strategy
    • Launch corrective task force to address risks
    • Risk manager
    • IT leadership
    • CRO
    SIPOC: Define information lifecycle process ownership
    Supplier Input
    CIO
    • List of risk owner options with recommendations
    See Info-Tech’s related blueprint: Information Lifecycle Management
    Process

    Responsibility: Define responsibility and accountability for information lifecycle ownership.

    Output Customer
    • Defined information lifecycle owner
    • Organization wide.

    SIPOC examples for typical ITSC responsibilities

    SIPOC: Monitor information lifecycle metrics
    Supplier Input
    Information lifecycle owner
    • Information metrics report with recommendations
    Process

    Responsibility: Review recommendations around information management metrics and define target metrics. Endorse current effectiveness levels or determine corrective action.

    Output Customer
    • Accept information management performance
    • Accept recommendations
    • Launch corrective task force to address challenges
    • Define target metrics
    • IT leadership

    Define which metrics you will report to the IT steering committee

    2.2

    1. Consider your IT steering committee goals and the five IT governance areas.
    2. For each governance area, identify which metrics you are currently tracking and determine whether these metrics are valuable to IT, to the business, or both. For metrics that are valuable to business stakeholders determine whether you have an identified target metric.

    New Metrics:

    1. For each of the five IT governance areas review your SWOT analysis and document your key opportunities and weaknesses.
    2. For each, brainstorm hypotheses around why the opportunity was weak or was a success. For each hypothesis identify if there are any clear ways to measure and test the hypothesis.
    3. Review the list of metrics and select 5-7 metrics to track for each prioritized governance area.

    INPUT

    • List of responsibilities
    • Example SIPOCs

    OUTPUT

    • SIPOC model for all responsibilities

    Materials

    • Whiteboard
    • Markers

    Participants

    • IT leadership team

    IT steering committee metric triggers to consider

    RISK

    • Risk profile % increase
    • # of actionable risks outstanding
    • # of issues arising not identified prior
    • # of security breaches

    SERVICE

    • Number of business disruptions due to IT service incidents
    • Number of service requests by department
    • Number of service requests that are actually projects
    • Causes of tickets overall and by department
    • Percentage of duration attributed to waiting for client response

    PROJECTS

    • Projects completed within budget
    • Percentage of projects delivered on time
    • Project completion rate
    • IT completed assigned portion to scope
    • Project status and trend dashboard

    INFORMATION / DATA

    • % of data properly classified
    • # of incidents locating data
    • # of report requests by complexity
    • # of open data sets

    PPM /INVESTMENTS

    • CIO Business Vision (an Info-Tech diagnostic survey that helps align IT strategy with business goals)
    • Level of stakeholder satisfaction and perceived value
    • Percentage of ON vs. OFF cycle projects by area/silo
    • Realized benefit to business units based on investment mix
    • Percent of enterprise strategic goals and requirements supported by strategic goals
    • Target vs. actual budget
    • Reasons for off-cycle projects causing delays to planned projects

    CASE STUDY

    Industry: Consumer Goods

    Source: Interview

    "IT steering committee’s reputation greatly improved by clearly defining its process."

    CHALLENGE

    One of the major failings of the previous steering committee was its poorly drafted procedures. Members of the committee were unclear on the overall process and the meeting schedule was not well established.

    This led to low attendance at the meetings and ineffective meetings overall. Since the meeting procedures weren’t well understood, some members of the leadership team took advantage of this to get their projects pushed through.

    SOLUTION

    The first step the new CIO took was to clearly outline the meeting procedures in her new steering committee charter. The meeting agenda, meeting goals, length of time, and outcomes were outlined, and the stakeholders signed off on their participation.

    She also gave the participants a SIPOC, which helped members who were unfamiliar with the process a high-level overview. It also reacquainted previous members with the process and outlined changes to the previous, out-of-date processes.

    OUTCOME

    The participation rate in the committee meetings improved from the previous rate of approximately 40% to 90%. The committee members were much more satisfied with the new process and felt like their contributions were appreciated more than before.

    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:

    An image of an Info-Tech analyst is depicted.

    • 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

    A screenshot of activity 2.1 is depicted. Activity 2.1 is about defining a SIPOC for each of the ITSC responsibilities.

    Define a SIPOC for each of the ITSC responsibilities

    Create SIPOCs for each of the governance responsibilities with the help of an Info-Tech advisor.

    2.2

    A screenshot of activity 2.2 is depicted. Activity 2.2 is about establishing the reporting metrics for the ITSC.

    Establish the reporting metrics for the ITSC

    The analyst will facilitate several exercises to help you and your stakeholders define the reporting metrics for the ITSC.

    Phase 3

    Build the Stakeholder Presentation

    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: Build the Stakeholder Presentation
    Proposed Time to Completion: 1 week

    Customize the Presentation

    Start with an analyst kick-off call:

    • Review the IT Steering Committee Stakeholder Presentation with an analyst

    Then complete these activities…

    • Schedule the first meeting and invite the ITSC members
    • Customize the presentation template

    With these tools & templates:

    IT Steering Committee Stakeholder Presentation


    Review and Practice the Presentation

    Review findings with analyst:

    • Review the changes made to the template
    • Practice the presentation and create a script

    Then complete these activities…

    • Hold the ITSC meeting

    With these tools & templates:

    • IT Steering Committee Stakeholder Presentation
    Review the First ITSC Meeting

    Finalize phase deliverable:

    • Review the outcomes of the first ITSC meeting and plan out the next steps

    Then complete these activities…

    • Review the discussion and plan next steps

    With these tools & templates:

    Establish an Effective IT Steering Committee blueprint

    Build the Stakeholder Presentation

    This step will walk you through the following activities:

    • Organizing the first ITSC meeting
    • Customizing an ITSC stakeholder presentation
    • Determine ITSC responsibilities and participants
    • Determine ITSC procedures

    This step involves the following participants:

    • CIO
    • IT Steering Committee
    • IT Leadership Team
    • PMO

    Key Insight:

    Stakeholder engagement will be critical to your ITSC success, don't just focus on what is changing. Ensure stakeholders know why you are engaging them and how it will help them in their role.

    Hold a kick-off meeting with your IT steering committee members to explain the process, responsibilities, and goals

    3.1

    Don’t take on too much in your first IT steering committee meeting. Many participants may not have participated in an IT steering committee before, or some may have had poor experiences in the past.

    Use this meeting to explain the role of the IT steering committee and why you are implementing one, and help participants to understand their role in the process.

    Quickly customize Info-Tech’s IT Steering Committee Stakeholder Presentation template to explain the goals and benefits of the IT steering committee, and use your own data to make the case for governance.

    At the end of the meeting, ask committee members to sign the committee charter to signify their agreement to participate in the IT steering committee.

    A screenshot of IT Steering Committee: Meeting 1 is depicted. A screenshot of the IT Steering Committee Challenges and Opportunities for the organization.

    Tailor the IT Steering Committee Stakeholder Presentation template: slides 1-5

    3.2 Estimated Time: 10 minutes

    Review the IT Steering Committee Stakeholder Presentation template. This document should be presented at the first IT steering committee meeting by the assigned Committee Chair.

    Customization Options

    Overall: Decide if you would like to change the presentation template. You can change the color scheme easily by copying the slides in the presentation deck and pasting them into your company’s standard template. Once you’ve pasted them in, scan through the slides and make any additional changes needed to formatting.

    Slide 2-3: Review the text on each of the slides and see if any wording should be changed to better suite your organization.

    Slide 4: Review your list of the top 10 challenges and opportunities as defined in section 2 of this blueprint. Document those in the appropriate sections. (Note: be careful that the language is business-facing; challenges and opportunities should be professionally worded.)

    Slide 5: Review the language on slide 5 to make any necessary changes to suite your organization. Changes here should be minimal.

    INPUT

    • Top 10 list
    • Survey report
    • ITSC Charter

    OUTPUT

    • Ready-to-present presentation for defined stakeholders

    Materials

    • IT Steering Committee Stakeholder Presentation

    Participants

    • IT Steering Committee Chair/CIO

    Tailor the IT Steering Committee Stakeholder Presentation template: slides 6-10

    3.2 Estimated Time: 10 minutes

    Customization Options

    Slide 6: The goal of this slide is to document and share the names of the participants on the IT steering committee. Document the names in the right-hand side based on your IT Steering Committee Charter.

    Slides 7-9:

    • Review the agenda items as listed in your IT Steering Committee Charter. Document the annual, quarterly, and monthly meeting responsibilities on the left-hand side of slides 7-9.
    • Meeting Participants: For each slide, list the members who are required for that meeting.
    • Document the key required reading materials as identified in the SIPOC charts under “inputs.”
    • Document the key meeting outcomes as identified in the SIPOC chart under “outputs.”

    Slide 10: Review and understand the rollout timeline. Make any changes needed to the timeline.

    INPUT

    • Top 10 list
    • Survey report
    • ITSC Charter

    OUTPUT

    • Ready-to-present presentation for defined stakeholders

    Materials

    • IT Steering Committee Stakeholder Presentation

    Participants

    • IT Steering Committee Chair/CIO

    Present the information to the IT leadership team to increase your comfort with the material

    3.3 Estimated Time: 1-2 hours

    1. Once you have finished customizing the IT Steering Committee Stakeholder Presentation, practice presenting the material by meeting with your IT leadership team. This will help you become more comfortable with the dialog and anticipate any questions that might arise.
    2. The ITSC chair will present the meeting deck, and all parties should discuss what they think went well and opportunities for improvement.
    3. Each business relationship manager should document the needed changes in preparation for their first meeting.

    INPUT

    • IT Steering Committee Stakeholder Presentation - Meeting 1

    Participants

    • IT leadership team

    Schedule your first meeting of the IT steering committee

    3.4

    By this point, you should have customized the meeting presentation deck and be ready to meet with your IT steering committee participants.

    The meeting should be one hour in duration and completed in person.

    Before holding the meeting, identify who you think is going to be most supportive and who will be least. Consider meeting with those individuals independently prior to the group meeting to elicit support or minimize negative impacts on the meeting.

    Customize this calendar invite script to invite business partners to participate in the meeting.

    Hello [Name],

    As you may have heard, we recently went through an exercise to develop an IT steering committee. I’d like to take some time to discuss the results of this work with you, and discuss ways in which we can work together in the future to better enable corporate goals.

    The goals of the meeting are:

    1. Discuss the benefits of an IT steering committee
    2. Review the results of the organizational survey
    3. Introduce you to our new IT steering committee

    I look forward to starting this discussion with you and working with you more closely in the future.

    Warm regards,

    CASE STUDY

    Industry:Consumer Goods

    Source: Interview

    "CIO gains buy-in from the company by presenting the new committee to its stakeholders."

    CHALLENGE

    Communication was one of the biggest steering committee challenges that the new CIO inherited.

    Members were resistant to joining/rejoining the committee because of its previous failures. When the new CIO was building the steering committee, she surveyed the members on their knowledge of IT as well as what they felt their role in the committee entailed.

    She found that member understanding was lacking and that their knowledge surrounding their roles was very inconsistent.

    SOLUTION

    The CIO dedicated their first steering committee meeting to presenting the results of that survey to align member knowledge.

    She outlined the new charter and discussed the roles of each member, the goals of the committee, and the overarching process.

    OUTCOME

    Members of the new committee were now aligned in terms of the steering committee’s goals. Taking time to thoroughly outline the procedures during the first meeting led to much higher member engagement. It also built accountability within the committee since all members were present and all members had the same level of knowledge surrounding the roles of the ITSC.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1

    A screenshot of Activity 3.1 is depicted. Activity 3.1 is about creating a presentation for ITSC stakeholders to be presented at the first ITSC meeting.

    Create a presentation for ITSC stakeholders to be presented at the first ITSC meeting

    Work with an Info-Tech advisor to customize our IT Steering Committee Stakeholder Presentation template. Use this presentation to gain stakeholder buy-in by making the case for an ITSC.

    Phase 4

    Define the Prioritization Criteria

    Phase 4 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 : Define the Prioritization Criteria
    Proposed Time to Completion: 4 weeks

    Discuss Prioritization Criteria

    Start with an analyst kick-off call:

    • Review sample project prioritization criteria and discuss criteria unique to your organization

    Then complete these activities...

    • Select the criteria that would be most effective for your organization
    • Input these into the tool

    With these tools & templates:

    IT Steering Committee Project Prioritization Tool

    Customize the IT Steering Committee Project Prioritization Tool

    Review findings with analyst:

    • Review changes made to the tool
    • Finalize criteria weighting

    Then complete these activities…

    • Pilot test the tool using projects from the previous year

    With these tools & templates:

    IT Steering Committee Project Prioritization Tool

    Review Results of the Pilot Test

    Finalize phase deliverable:

    • Review the results of the pilot test
    • Make changes to the tool

    Then complete these activities…

    • Input your current project portfolio into the prioritization tool

    With these tools & templates:

    IT Steering Committee Project Prioritization Tool

    Define the Project Prioritization Criteria

    This step will walk you through the following activities:

    • Selecting the appropriate project prioritization criteria for your organization
    • Developing weightings for the prioritization criteria
    • Filling in Info-Tech’s IT Steering Committee Project Prioritization Tool

    This step involves the following participants:

    • CIO
    • IT Steering Committee
    • IT Leadership Team
    • PMO

    Key Insight:

    The steering committee sets and agrees to principles that guide prioritization decisions. The agreed upon principles will affect business unit expectations and justify the deferral of requests that are low priority. In some cases, we have seen the number of requests drop substantially because business units are reluctant to propose initiatives that do not fit high prioritization criteria.

    Understand the role of the IT steering committee in project prioritization

    One of the key roles of the IT steering committee is to review and prioritize the portfolio of IT projects.

    What is the prioritization based on? Info-Tech recommends selecting four broad criteria with two dimensions under each to evaluate the value of the projects. The criteria are aligned with how the project generates value for the organization and the execution of the project.

    What is the role of the steering committee in prioritizing projects? The steering committee is responsible for reviewing project criteria scores and making decisions about where projects rank on the priority list. Planning, resourcing, and project management are the responsibility of the PMO or the project owner.

    Info-Tech’s Sample Criteria

    Value

    Strategic Alignment: How much a project supports the strategic goals of the organization.

    Customer Satisfaction: The impact of the project on customers and how visible a project will be with customers.

    Operational Alignment: Whether the project will address operational issues or compliance.

    Execution

    Financial: Predicted ROI and cost containment strategies.

    Risk: Involved with not completing projects and strategies to mitigate it.

    Feasibility: How easy the project is to complete and whether staffing resources exist.

    Use Info-Tech’s IT Steering Committee Project Prioritization Tool to catalog and prioritize your project portfolio

    4.1

    • Use Info-Tech’s IT Steering Committee Project Prioritization Tool in conjunction with the following activities to catalog and prioritize all of the current IT projects in your portfolio.
    • Assign weightings to your selected criteria to prioritize projects based on objective scores assigned during the intake process and adjust these weightings on an annual basis to align with changing organizational priorities and goals.
    • Use this tool at steering committee meetings to streamline the prioritization process and create alignment with the PMO and project managers.
    • Monitor ongoing project status and build a communication channel between the PMO and project managers and the IT steering committee.
    • Adjusting the titles in the Settings tab will automatically adjust the titles in the Project Data tab.
    • Note: To customize titles in the document you must unprotect the content under the View tab. Be sure to change the content back to protected after making the changes.
    A screenshot of Info-Tech's IT Steering Committee Project Prioritization Tool is depicted. The first page of the tool is shown. A screenshot of Info-Tech's IT Steering Committee Project Prioritization Tool is depicted. The page depicted is on the Intake and Prioritization Tool Settings.

    Establish project prioritization criteria and build the matrix

    4.2 Estimated Time: 1 hour

    1. During the second steering committee meeting, discuss the criteria you will be basing your project prioritization scoring on.
    2. Review Info-Tech’s prioritization criteria matrix, located in the Prioritization Criteria List tab of the IT Steering Committee Project Prioritization Tool, to gain ideas for what criteria would best suit your organization.
    3. Write these main criteria on the whiteboard and brainstorm criteria that are more specific for your organization; include these on the list as well.
    4. Discuss the criteria. Eliminate criteria that won’t contribute strongly to the prioritization process and vote on the remaining. Select four main criteria from the list.
    5. After selecting the four main criteria, write these on the whiteboard and brainstorm the dimensions that fall under the criteria. These should be more specific/measurable aspects of the criteria. These will be the statements that values are assigned to for prioritizing projects so they should be clear. Use the Prioritization Criteria List in the tool to help generate ideas.
    6. After creating the dimensions, determine what the scoring statements will be. These are the statements that will be used to determine the score out of 10 that the different dimensions will receive.
    7. Adjust the Settings and Project Data tabs in the IT Steering Committee Project Prioritization Tool to reflect your selections.
    8. Edit Info-Tech’s IT Project Intake Form or the intake form that you currently use to contain these criteria and scoring parameters.

    INPUT

    • Group input
    • IT Steering Committee Project Prioritization Tool

    OUTPUT

    • Project prioritization criteria to be used for current and future projects

    Materials

    • Whiteboard and markers

    Participants

    • IT steering committee
    • CIO
    • IT leadership

    Adjust prioritization criteria weightings to reflect organizational needs

    4.3 Estimated Time: 1 hour

    1. In the second steering committee meeting, after deciding what the project prioritization criteria will be, you need to determine how much weight (the importance) each criteria will receive.
    2. Use the four agreed upon criteria with two dimensions each, determined in the previous activity.
    3. Perform a $100 test to assign proportions to each of the criteria dimensions.
      1. Divide the committee into pairs.
      2. Tell each pair that they have $100 divide among the 4 major criteria based on how important they feel the criteria is.
      3. After dividing the initial $100, ask them to divide the amount they allocated to each criteria into the two sub-dimensions.
      4. Next, ask them to present their reasoning for the allocations to the rest of the committee.
      5. Discuss the weighting allotments and vote on the best one (or combination).
      6. Input the weightings in the Settings tab of the IT Steering Committee Project Prioritization Tool and document the discussion.
    4. After customizing the chart establish the owner of the document. This person should be a member of the PMO or the most suitable IT leader if a PMO doesn’t exist.
    5. Only perform this adjustment annually or if a major strategic change happens within the organization.

    INPUT

    • Group discussion

    OUTPUT

    • Agreed upon criteria weighting
    • Complete prioritization tool

    Materials

    • IT Steering Committee Project Prioritization Tool
    • Whiteboard and sticky notes

    Participants

    • IT steering committee
    • IT leadership

    Document the prioritization criteria weightings in Info-Tech’s IT Steering Committee Project Prioritization Tool.

    Configure the prioritization tool to align your portfolio with business strategy

    4.4 Estimated Time: 60 minutes

    Download Info-Tech’s Project Intake and Prioritization Tool.

    A screenshot of Info-Tech's Project Intake and Prioritization Tool.

    Rank: Project ranking will dynamically update relative to your portfolio capacity (established in Settings tab) and the Size, Scoring Progress, Remove from Ranking, and Overall Score columns. The projects in green represent top priorities based on these inputs, while yellow projects warrant additional consideration should capacity permit.

    Scoring Progress: You will be able to determine some items on the scorecard earlier in the scoring progress (such as strategic and operational alignment). As you fill in scoring columns on the Project Data tab, the Scoring Progress column will dynamically update to track progress.

    The Overall Score will update automatically as you complete the scoring columns (refer to Activity 4.2).

    Days in Backlog: This column will help with backlog management, automatically tracking the number of days since an item was added to the list based on day added and current date.

    Validate your new prioritization criteria using previous projects

    4.5 Estimated Time: 2 hours

    1. After deciding on the prioritization criteria, you need to test their validity.
    2. Look at the portfolio of projects that were completed in the previous year.
    3. Go through each project and score it according to the criteria that were determined in the previous exercise.
    4. Enter the scores and appropriate weighting (according to goals/strategy of the previous year) into the IT Steering Committee Project Prioritization Tool.
    5. Look at the prioritization given to the projects in reference to how they were previously prioritized.
    6. Adjust the criteria and weighting to either align the new prioritization criteria with previous criteria or to align with desired outcomes.
    7. After scoring the old projects, pilot test the tool with upcoming projects.

    INPUT

    • Information on previous year’s projects
    • Group discussion

    OUTPUT

    • Pilot tested project prioritization criteria

    Materials

    • IT Steering Committee Project Prioritization Tool

    Participants

    • IT steering committee
    • IT leadership
    • PMO

    Pilot the scorecard to validate criteria and weightings

    4.6 Estimated Time: 60 minutes

    1. Pilot your criteria and weightings in the IT Steering Committee Project Prioritization Tool using project data from one or two projects currently going through approval process.
    2. For most projects, you will be able to determine strategic and operational alignment early in the scoring process, while the feasibility and financial requirements will come later during business case development. Score each column as you can. The tool will automatically track your progress in the Scoring Progress column on the Project Data tab.

    Projects that are scored but not prioritized will populate the portfolio backlog. Items in the backlog will need to be rescored periodically, as circumstances can change, impacting scores. Factors necessitating rescoring can include:

    • Assumptions in business case have changed.
    • Organizational change – e.g. a new CEO or a change in strategic objectives.
    • Major emergencies or disruptions – e.g. a security breach.

    Score projects using the Project Data tab in Info-Tech’s IT Steering Committee Project Prioritization Tool

    A screenshot of Info-Tech's <em data-verified=IT Steering Committee Project Prioritization Tool is depicted. The Data Tab is shown.">

    Use Info-Tech’s IT Project Intake Form to streamline the project prioritization and approval process

    4.7

    • Use Info-Tech’s IT Project Intake Form template to streamline the project intake and prioritization process.
    • Customize the chart on page 2 to include the prioritization criteria that were selected during this phase of the blueprint.
    • Including the prioritization criteria at the project intake phase will free up a lot of time for the steering committee. It will be their job to verify that the criteria scores are accurate.
    A screenshot of Info-Tech's IT Project Intake Form is depicted.

    After prioritizing and selecting your projects, determine how they will be resourced

    Consult these Info-Tech blueprints on project portfolio management to create effective portfolio project management resourcing processes.

    A Screenshot of Info-Tech's Create Project Management Success Blueprint is depicted. Create Project Management Success A Screenshot of Info-Tech's Develop a Project Portfolio Management Strategy Blueprint is depicted. Develop a Project Portfolio Management Strategy

    CASE STUDY

    Industry: Consumer Goods

    Source: Interview

    "Clear project intake and prioritization criteria allow for the new committee to make objective priority decisions."

    CHALLENGE

    One of the biggest problems that the previous steering committee at the company had was that their project intake and prioritization process was not consistent. Projects were being prioritized based on politics and managers taking advantage of the system.

    The procedure was not formalized so there were no objective criteria on which to weigh the value of proposed projects. In addition to poor meeting attendance, this led to the overall process being very inconsistent.

    SOLUTION

    The new CIO, with consultation from the newly formed committee, drafted a set of criteria that focused on the value and execution of their project portfolio. These criteria were included on their intake forms to streamline the rating process.

    All of the project scores are now reviewed by the steering committee, and they are able to facilitate the prioritization process more easily.

    The objective criteria process also helped to prevent managers from taking advantage of the prioritization process to push self-serving projects through.

    OUTCOME

    This was seen as a contributor to the increase in satisfaction scores for IT, which improved by 12% overall.

    The new streamlined process helped to reduce capacity constraints on IT, and it alerted the company to the need for more IT employees to help reduce these constraints further. The IT department was given permission to hire two new additional staff members.

    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:

    4.1

    A screenshot of activity 4.1 is depicted. Activity 4.1 was about defining your prioritization criteria and customize our <em data-verified=IT Steering Committee Project Prioritization Tool.">

    Define your prioritization criteria and customize our IT Steering Committee Project Prioritization Tool

    With the help of Info-Tech advisors, create criteria for determining a project’s priority. Customize the tool to reflect the criteria and their weighting. Run pilot tests of the tool to verify the criteria and enter your current project portfolio.

    Research contributors and experts

    • Andy Lomasky, Manager, Technology & Management Consulting, McGladrey LLP
    • Angie Embree, CIO, Best Friends Animal Society
    • Corinne Bell, CTO and Director of IT Services, Landmark College
    • John Hanskenecht, Director of Technology, University of Detroit Jesuit High School and Academy
    • Lori Baker, CIO, Village of Northbrook
    • Lynne Allard, IT Supervisor, Nipissing Parry Sound Catholic School Board
    • Norman Allen, Senior IT Manager, Baker Tilly
    • Paul Martinello, VP, IT Services, Cambridge and North Dumfries Hydro Inc.
    • Renee Martinez, IT Director/CIO, City of Santa Fe
    • Sam Wong, Director, IT, Seneca College
    • Suzanne Barnes, Director, Information Systems, Pathfinder International
    • Walt Joyce, CTO, Peoples Bank

    Appendices

    GOVERNANCE & ITSC & IT Management

    Organizations often blur the line between governance and management, resulting in the business having say over the wrong things. Understand the differences and make sure both groups understand their role.

    The ITSC is the most senior body within the IT governance structure, involving key business executives and focusing on critical strategic decisions impacting the whole organization.

    Within a holistic governance structure, organizations may have additional committees that evaluate, direct, and monitor key decisions at a more tactical level and report into the ITSC.

    These committees require specialized knowledge and are implemented to meet specific organizational needs. Those operational committees may spark a tactical task force to act on specific needs.

    IT management is responsible for executing on, running, and monitoring strategic activities as determined by IT governance.

    Strategic IT Steering Committee
    Tactical

    Project Governance Service Governance

    Risk Governance Information Governance

    IT Management
    Operational Risk Task Force

    This blueprint focuses exclusively on building the IT Steering committee. For more information on IT governance see Info-Tech’s related blueprint: Tailor an IT Governance Plan to Fit Organizational Needs.

    IT steering committees play an important role in IT governance

    By bucketing responsibilities into these areas, you’ll be able to account for most key IT decisions and help the business to understand their role in governance, fostering ownership and joint accountability.

    The five governance areas are:

    Governance of the IT Portfolio and Investments: Ensures that funding and resources are systematically allocated to the priority projects that deliver value.

    Governance of Projects: Ensures that IT projects deliver the expected value, and that the PM methodology is measured and effective.

    Governance of Risks: Ensures the organization’s ability to assess and deliver IT projects and services with acceptable risk.

    Governance of Services: Ensures that IT delivers the required services at the acceptable performance levels.

    Governance of Information and Data: Ensures the appropriate classification and retention of data based on business need.

    A survey of stakeholders identified a need for increased stakeholder involvement and transparency in decision making

    A bar graph is depicted. The title is: I understand how decisions are made in the following areas. The areas include risk, services, projects, portfolio, and information. A circle graph is depicted. The title is: Do IT decisions involve the right people?

    Overall, survey respondents indicated a lack of understanding about how decisions are made around risk, services, projects, and investments, and that business involvement in decision making was too minimal.

    Satisfaction with decision quality around investments and PPM are uneven and largely not well understood

    72% of stakeholders do not understand how decisions around IT services are made (quality, availability, etc.).

    A bar graph is depicted. The title is: How satisfied are you with the quality of decisions and transparency around IT services? A bar graph is depicted. Title of the graph: IT decisions around service delivery and quality involve the right people?

    Overall, services were ranked #1 in importance of the 5 areas

    62% of stakeholders do not understand how decisions around IT services are made (quality, availability, etc.).

    A bar graph is depicted. The title is: How satisfied are you with the quality of decisions and transparency around IT services? A bar graph is depicted. Title of the graph: IT decisions around service delivery and quality involve the right people?

    Projects ranked as one of the areas with which participants are most satisfied with the quality of decisions

    70% of stakeholders do not understand how decisions around projects selection, success, and changes are made.

    A bar graph is depicted. The title is: How satisfied are you with the quality of decisions and transparency around IT services? A bar graph is depicted. The title is: IT decisions around project changes, delays, and metrics involve the right people?

    Stakeholders are largely unaware of how decisions around risk are made and believe business participation needs to increase

    78% of stakeholders do not understand how decisions around risk are made

    A bar graph is depicted. The title is: How satisfied are you with the quality of decisions made around risk? A bar graph is depicted. The title is: IT decisions around acceptable risk involve the right people?

    The majority of stakeholders believe that they are aware of how decisions around information are made

    67% of stakeholders believe they do understand how decisions around information (data) retention and classification are made.

    A bar graph is depicted. The title is: How satisfied are you with the quality of decisions around information governance? A bar graph is depicted. The title is: IT decisions around information retention and classification involve the right people?

    Enterprise Architecture

    • Buy Link or Shortcode: {j2store}43|cart{/j2store}
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    • Parent Category Name: Service Planning and Architecture
    • Parent Category Link: service-planning-and-architecture
    Demystify enterprise architecture value with key metrics.

    Get the Best Discount Possible With a Data-Driven Negotiation Approach

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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]

    Make the Case for Product Delivery

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    • Parent Category Name: Architecture & Strategy
    • Parent Category Link: /architecture-and-strategy
    • 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

    Bibliography – Product Ownership

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    Cagan, Martin. “Behind Every Great Product.” Silicon Valley Product Group, 2005. Web.

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    Connellan, Thomas K. Inside the Magic Kingdom. Bard Press, 1997. Print.

    Curphey, Mark, “Product Definition.” slideshare.net, 25 Feb. 2007. Web

    Eringa, Ron. “Evolution of the Product Owner.” RonEringa.com, 12 June 2016. Web.

    Fernandes, Thaisa. “Spotify Squad Framework - Part I.” Medium.com, 6 March 2017. Web.

    Galen, Robert. “Measuring Product Ownership – What Does ‘Good’ Look Like?” RGalen Consulting, 5 Aug. 2015. Web.

    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.

    Kendis Team. “Exploring Key Elements of Spotify’s Agile Scaling Model.” Medium.com, 23 July 2018. Web.

    Lindstrom, Lowell. “7 Skills You Need to Be a Great Product Owner.” Scrum Alliance, n.d. Web.

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    McCloskey, Heather. “Scaling Product Management: Secrets to Defeating Common Challenges.” ProductPlan, 12 July 2019. Web.

    Bibliography – Product Ownership

    McCloskey, Heather. “When and How to Scale Your Product Team.” UserVoice, 21 Feb. 2017. Web.

    Mironov, Rich. “Scaling Up Product Manager/Owner Teams: Rich Mironov's Product Bytes.” Rich Mironov's Product Bytes, Mironov Consulting, 12 April 2014 . Web.

    Overeem, Barry. “A Product Owner Self-Assessment.” Barry Overeem, 6 March 2017. Web.

    Overeem, Barry. “Retrospective: Using the Team Radar.” Barry Overeem, 27 Feb. 2017. Web.

    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.

    Pichler, Roman. “Sprint Planning Tips for Product Owners.” LinkedIn, 4 Sept. 2018. Web.

    Pichler, Roman. “What Is Product Management?” Pichler Consulting Limited, 26 Nov. 2014. Web.

    Radigan, Dan. “Putting the ‘Flow' Back in Workflow With WIP Limits.” Atlassian, n.d. Web.

    Schuurman, Robbin. “10 Tips for Product Owners on Agile Product Management.” Scrum.org, 28 Nov. 2017. Web.

    Schuurman, Robbin. “10 Tips for Product Owners on (Business) Value.” Scrum.org, 30 Nov. 2017. Web.

    Schuurman, Robbin. “10 Tips for Product Owners on Product Backlog Management.” Scrum.org, 5 Dec. 2017. Web.

    Schuurman, Robbin. “10 Tips for Product Owners on the Product Vision.” Scrum.org, 29 Nov. 2017. Web.

    Schuurman, Robbin. “Tips for Starting Product Owners.” Scrum.org, 27 Nov. 2017. Web.

    Sharma, Rohit. “Scaling Product Teams the Structured Way.” Monetary Musings, 28 Nov. 2016. Web.

    Bibliography – Product Ownership

    Steiner, Anne. “Start to Scale Your Product Management: Multiple Teams Working on Single Product.” Cprime, 6 Aug. 2019. Web.

    Shirazi, Reza. “Betsy Stockdale of Seilevel: Product Managers Are Not Afraid To Be Wrong.” Austin VOP #50, 2 Oct. 2018. Web.

    “The Standish Group 2015 Chaos Report.” The Standish Group, 2015. Web.

    Theus, Andre. “When Should You Scale the Product Management Team?” ProductPlan, 7 May 2019. Web.

    Tolonen, Arto. “Scaling Product Management in a Single Product Company.” Smartly.io, 26 Apr. 2018. Web.

    Ulrich, Catherine. “The 6 Types of Product Managers. Which One Do You Need?” Medium.com, 19 Dec. 2017. Web.

    VersionOne. “12th Annual State of Agile Report.” VersionOne, 9 April 2018. Web.

    Verwijs, Christiaan. “Retrospective: Do The Team Radar.” Medium.com, 10 Feb. 2017. Web.

    “How do you define a product?” Scrum.org, 4 April 2017, Web.

    “Product Definition.” TechTarget, Sept. 2005. Web

    Bibliography – Product Roadmap

    Ambysoft. “2018 IT Project Success Rates Survey Results.” Ambysoft. 2018. Web.

    Bastow, Janna. “Creating Agile Product roadmaps Everyone Understands.” ProdPad, 22 Mar. 2017. Accessed Sept. 2018.

    Bastow, Janna. “The Product Tree Game: Our Favorite Way To Prioritize Features.” ProdPad, 21 Feb. 2016. Accessed Sept. 2018.

    Chernak, Yuri. “Requirements Reuse: The State of the Practice.” 2012, Herzlia, Israel, 2012 IEEE International Conference on Software Science, Technology and Engineering, 12 June 2012. Web.

    Fowler, Martin. “Application Boundary.” MartinFowler.com, 11 Sept. 2003. Accessed 20 Nov. 2017.

    Harrin, Elizabeth. “Learn What a Project Milestone Is.” The Balance Careers, 10 May 2018. Accessed Sept. 2018.

    “How to create a product roadmap.” Roadmunk, n.d. Accessed Sept. 2018.

    Johnson, Steve. “How to Master the 3 Horizons of Product Strategy.” Aha!, 24 Sept. 2015. Accessed Sept. 2018.

    Johnson, Steve. “The Product Roadmap vs. the Technology Roadmap.” Aha!, 23 June 2016. Accessed Sept. 2018

    Juncal, Shaun. “How Should You Set Your Product Roadmap Timeframes?” ProductPlan, n.d. Accessed Sept. 2018.

    Leffingwell, Dean. “SAFe 4.0.” Scaled Agile, Inc., 2017. Web.

    Maurya, Ash. “What is a Minimum Viable Product (MVP)?” LEANSTACK, 12 June 2017. Accessed Sept. 2018.

    Pichler, Roman. “10 Tips for Creating an Agile Product Roadmap.” Roman Pichler, 20 July 2016. Accessed Sept. 2018.

    Pichler, Roman. Strategize: Product Strategy and Product Roadmap Practices for the Digital Age. Pichler Consulting, 2016.

    “Product Roadmap Contents: What Should You Include?” ProductPlan, n.d. Accessed 20 Nov. 2017.

    Saez, Andrea. “Why Your Roadmap Is Not a Release Plan.” ProdPad, 23 Oct. 2015. Accessed Sept. 2018.

    Schuurman, Robbin. “Tips for Agile product roadmaps & product roadmap examples.” Scrum.org, 7 Dec. 2017. Accessed Sept. 2018

    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.

    Enable Omnichannel Commerce That Delights Your Customers

    • Buy Link or Shortcode: {j2store}534|cart{/j2store}
    • member rating overall impact (scale of 10): 9.5/10 Overall Impact
    • member rating average dollars saved: $17,249 Average $ Saved
    • member rating average days saved: 7 Average Days Saved
    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Today’s customers expect to be able to transact with you in the channels of their choice. The proliferation of e-commerce, innovations in brick-and-mortar retail, and developments in mobile commerce and social media selling mean that IT organizations are managing added complexity in drafting a strategy for commerce enablement.
    • The right technology stack is critical in order to support world-class e-commerce and brick-and-mortar interactions with customers.

    Our Advice

    Critical Insight

    • Support the right transactional channels for the right customers: there is no “one-size-fits-all” approach to commerce enablement – understand your customers to drive selection of the right transactional channels.
    • Don’t assume that “traditional” commerce channels have stagnated: IoT, customer analytics, and blended retail are reinvigorating brick-and-mortar selling.
    • Don’t buy best-of-breed; buy best-for-you. Base commerce vendor selection on your requirements and use cases, not on the vendor’s overall performance.

    Impact and Result

    • Leverage Info-Tech’s proven, road-tested approach to using personas and scenarios to build strong business drivers for your commerce strategy.
    • Before selecting and deploying technology solutions, create a cohesive channel matrix outlining which channels your organization will support with transactional capabilities.
    • Understand evolving trends in the commerce solution space, such as AI-driven product recommendations and integration with other essential enterprise applications (i.e. CRM and marketing automation platforms).
    • Understand and apply operational best practices such as content optimization and dynamic personalization to improve the conversion rate via your e-commerce channels.

    Enable Omnichannel Commerce That Delights Your Customers Research & Tools

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

    1. Enable Omnichannel Commerce Deck – A deck outlining the importance of creating a cohesive omnichannel framework to improve your customer experience.

    E-commerce channels have proliferated, and traditional brick-and-mortar commerce is undergoing reinvention. In order to provide your customers with a strong experience, it's imperative to create a strategy – and to deploy the right enabling technologies – that allow for robust multi-channel commerce. This storyboard provides a concise overview of how to do just that.

    • Enable Omnichannel Commerce That Delights Your Customers – Phases 1-2

    2. Create Personas to Drive Omnichannel Requirements Template – A template to identify key customer personas for e-commerce and other channels.

    Customer personas are archetypal representations of your key audience segments. This template (and populated examples) will help you construct personas for your omnichannel commerce project.

    • Create Personas to Drive Omnichannel Requirements Template
    [infographic]

    Further reading

    Enable Omnichannel Commerce That Delights Your Customers

    Create a cohesive, omnichannel framework that supports the right transactions through the right channels for the right customers.

    Analyst Perspective

    A clearly outlined commerce strategy is a necessary component of a broader customer experience strategy.

    This is a picture of Ben Dickie, Research Lead, Research – Applications at Info-Tech Research Group

    Ben Dickie
    Research Lead, Research – Applications
    Info-Tech Research Group

    “Your commerce strategy is where the rubber hits the road, converting your prospects into paying customers. To maximize revenue (and provide a great customer experience), it’s essential to have a clearly defined commerce strategy in place.

    A strong commerce strategy seeks to understand your target customer personas and commerce journey maps and pair these with the right channels and enabling technologies. There is not a “one-size-fits-all” approach to selecting the right commerce channels: while many organizations are making a heavy push into e-commerce and mobile commerce, others are seeking to differentiate themselves by innovating in traditional brick-and-mortar sales. Hybrid channel design now dominates many commerce strategies – using a blend of e-commerce and other channels to deliver the best-possible customer experience.

    IT leaders must work with the business to create a succinct commerce strategy that defines personas and scenarios, outlines the right channel matrix, and puts in place the right enabling technologies (for example, point-of-sale and e-commerce platforms).”

    Stop! Are you ready for this project?

    This Research Is Designed For:

    • IT leaders and business analysts supporting their commercial and marketing organizations in developing and executing a technology enablement strategy for e-commerce or brick-and-mortar commerce.
    • Any organization looking to develop a persona-based approach to identifying the right channels for their commerce strategy.

    This Research Will Help You:

    • Identify key personas and customer journeys for a brick-and-mortar and/or e-commerce strategy.
    • Select the right channels for your commerce strategy and build a commerce channel matrix to codify the results.
    • Review the “art of the possible” and new developments in brick-and-mortar and e-commerce execution.

    This Research Will Also Assist:

    • Sales managers, brand managers, and any marketing professional looking to build a cohesive commerce strategy.
    • E-commerce or POS project teams or working groups tasked with managing an RFP process for vendor selection.

    This Research Will Help Them:

    • Build a persona-centric commerce strategy.
    • Understand key technology trends in the brick-and-mortar and e-commerce space.

    Executive Summary

    Your Challenge

    Today’s customers expect to be able to transact with you in the channels of their choice.

    The proliferation of e-commerce, innovations in brick-and-mortar retail, and developments in mobile commerce and social media selling mean that IT organizations are managing added complexity in drafting a strategy for commerce enablement.

    The right technology stack is critical to support world-class e-commerce and brick-and-mortar interactions with customers.

    Common Obstacles

    Many organizations do not define strong, customer-centric drivers for dictating which channels they should be investing in for transactional capabilities.

    As many retailers look to move shopping experiences online during the pandemic, the impetus for having a strong e-commerce suite has markedly increased. The proliferation of commerce vendors has made it difficult to identify and shortlist the right solution, while the pandemic has also highlighted the importance of adopting new vendors quickly and efficiently: companies need to understand the top players in different commerce market landscapes.

    IT is receiving a growing number of commerce platform requests and must be prepared to speak intelligently about requirements and the “art of the possible.”

    Info-Tech’s Approach

    • Leverage Info-Tech’s proven, road-tested approach to using personas and scenarios to build strong business drivers for your commerce strategy.
    • Before selecting and deploying technology solutions, create a cohesive channel matrix outlining which channels your organization will support with transactional capabilities.
    • Understand evolving trends in the commerce solution space, such as AI-driven product recommendations and integration with other essential enterprise applications (i.e. customer relationship management [CRM] and marketing automation platforms).
    • Understand and apply operational best practices such as content optimization and dynamic personalization to improve the conversion rate via your e-commerce channels.

    Info-Tech Insight

    • Support the right transactional channels for the right customers: there is no “one-size-fits-all” approach to commerce enablement – understand your customers to drive selection of the right transactional channels.
    • Don’t assume that “traditional” commerce channels have stagnated: IoT, customer analytics, and blended retail are reinvigorating brick-and-mortar selling.
    • Don’t buy best-of-breed; buy best-for-you: base commerce vendor selection on your requirements and use cases, not on the vendor’s overall performance.

    A strong commerce strategy is an essential component of a savvy approach to customer experience management

    A commerce strategy outlines an organization’s approach to selling its products and services. A strong commerce strategy identifies target customers’ personas, commerce journeys that the organization wants to support, and the channels that the organization will use to transact with customers.

    Many commerce strategies encompass two distinct but complementary branches: a commerce strategy for transacting through traditional channels and an e-commerce strategy. While the latter often receives more attention from IT, it still falls on IT leaders to provide the appropriate enabling technologies to support traditional brick-and-mortar channels as well. Traditional channels have also undergone a digital renaissance in recent years, with forward-looking companies capitalizing on new technology to enhance customer experiences in their stores.

    Traditional Channels

    • Physical Stores (Brick and Mortar)
    • Kiosks or Pop-Up Stores
    • Telesales
    • Mail Orders
    • EDI Transactions

    E-Commerce Channels

    • E-Commerce Websites
    • Mobile Commerce Apps
    • Embedded Social Shopping
    • Customer Portals
    • Configure Price Quote Tool Sets (CPQ)
    • Hybrid Retail

    Info-Tech Insight

    To better serve their customers, many companies position themselves as “click-and-mortar” shops – allowing customers to transact at a store or online.

    Customers’ expectations are on the rise: meet them!

    Today’s consumers expect speed, convenience, and tailored experiences at every stage of the customer lifecycle. Successful organizations strive to support these expectations.

    58%
    of retail customers admitted that their expectations now are higher than they were a year ago (FinancesOnline).

    70%
    of consumers between the ages of 18 and 34 have increasing customer expectations year after year (FinancesOnline).

    69%
    of consumers now expect store associates to be armed with a mobile device to deliver value-added services, such as looking up product information and checking inventory (V12).

    73%
    of support leaders agree that customer expectations are increasing, but only…

    42%
    of support leaders are confident that they’re actually meeting those expectations.

    How can you be sure that you are meeting your customers’ expectations?

    1. Offer more personalization throughout the entire customer journey
    2. Practice quality customer service – ensure staff have up-to-date knowledge and offer quick resolution time for complaints
    3. Focus on offering low-effort experiences and easy-to-use platforms (i.e. “one-click buying”)
    4. Ensure your products and services perform well and do what they’re meant to do
    5. Ensure omnichannel availability – 9 in 10 consumers want a seamless omnichannel experience

    Info-Tech Insight

    Customers expect to interact with organizations through the channels of their choice. Now more than ever, you must enable your organization to provide tailored commerce and transactional experiences.

    Omnichannel commerce is the way of the future

    Create a strategy that embraces this reality with the right tools!

    Get ahead of the competition by doing omnichannel right! Devise a strategy that allows you to create and maintain a consistent, seamless commerce experience by optimizing operations with an omnichannel framework. Customers want to interact with you on their own terms, and it falls to IT to ensure that applications are in place to support and manage both traditional and e-commerce channels. There must also be consistency of copy, collateral, offers, and pricing between commerce channels.

    71%
    of consumers want a consistent experience across all channels, but only…

    29%
    say that they actually get it.

    (Source: Business 2 Community, 2020)

    Omnichannel is a “multichannel approach that aims to provide customers with a personalized, integrated, and seamless shopping experience across diverse touchpoints and devices.”
    Source: RingCentral, 2021

    IT is responsible for providing technology enablement of the commerce strategy: e-commerce platforms are a cornerstone

    An e-commerce platform is an enterprise application that provides end-to-end capabilities for allowing customers to purchase products or services from your company via an online channel (e.g. a traditional website, a mobile application, or an embedded link in a social media post). Modern e-commerce platforms are essential for delivering a frictionless customer journey when it comes to purchasing online.

    $6.388
    trillion dollars worth of sales will be conducted online by 2024 (eMarketer, 14 Jan. 2021).

    44%
    of all e-commerce transactions are expected to be completed via a mobile device by 2024 (Insider).

    21.8%
    of all sales will be made from online purchases by 2024 (eMarketer, 14 Jan. 2021).

    Strong E-Commerce Platforms Enable a Wide Range of Functional Areas:

    • Product Catalog Management
    • Web Content Delivery
    • Product Search Engine
    • Inventory Management
    • Shopping Cart Management
    • Discount and Coupon Management
    • Return Management and Reverse Logistics
    • Dynamic Personalization
    • Dynamic Promotions
    • Predictive Re-Targeting
    • Predictive Product Recommendations
    • Transaction Processing
    • Compliance Management
    • Commerce Workflow Management
    • Loyalty Program Management
    • Reporting and Analytics

    An e-commerce solution boosts the effectiveness and efficiency of your operations and drives top-line growth

    Take time to learn the capabilities of modern e-commerce applications. Understanding the “art of the possible” will help you to get the most out of your e-commerce platform.

    An e-commerce platform helps marketers and sales staff in three primary ways:

    1. It allows the organization to effectively and efficiently operate e-commerce operations at scale.
    2. It allows commercial staff to have a single system for managing and monitoring all commercial activity through online channels.
    3. It allows the organization to improve the customer-facing e-commerce experience, boosting conversions and top-line sales.

    A dedicated e-commerce platform improves the efficiency of customer-commerce operations

    • Workflow automation reduces the amount of time spent executing dynamic e-commerce campaigns.
    • The use of internal or third-party data increases conversion effectiveness from customer databases across the organization.

    Info-Tech Insight

    A strong e-commerce provides marketers with the data they need to produce actionable insights about their customers.

    Case Study

    INDUSTRY - Retail
    SOURCE - Salesforce (a)

    PetSmart improves customer experience by leveraging a new commerce platform in the Salesforce ecosystem

    PetSmart

    PetSmart is a leading retailer of pet products, with a heavy footprint across North America. Historically, PetSmart was a brick-and-mortar retailer, but it has placed a heavy emphasis on being a true multi-channel “click-and-mortar” retailer to ensure it maintains relevance against competitors like Amazon.

    E-Commerce Overhaul Initiative

    To improve its e-commerce capabilities, PetSmart recognized that it needed to consolidate to a single, unified e-commerce platform to realize a 360-degree view of its customers. A new platform was also required to power dynamic and engaging experiences, with appropriate product recommendations and tailored content. To pursue this initiative, the company settled on Salesforce.com’s Commerce Cloud product after an exhaustive requirements definition effort and rigorous vendor selection approach.

    Results

    After platform implementation, PetSmart was able to effortlessly handle the massive transaction volumes associated with Black Friday and Cyber Monday and deliver 1:1 experiences that boosted conversion rates.

    PetSmart standardized on the Commerce Cloud from Salesforce to great effect.

    This is an image of the journey from Discover & Engage to Retain & Advocate.

    Case Study

    Icebreaker exceeds customer expectations by using AI to power product recommendations

    INDUSTRY - Retail
    SOURCE - Salesforce (b)

    Icebreaker

    Icebreaker is a leading outerwear and lifestyle clothing company, operating six global websites and owning over 5,000 stores across 50 countries. Icebreaker is focused on providing its shoppers with accurate, real-time product suggestions to ensure it remains relevant in an increasingly competitive online market.

    E-Commerce Overhaul Initiative

    To improve its e-commerce capabilities, Icebreaker recognized that it needed to adopt a predictive recommendation engine that would offer its customers a more personalized shopping experience. This new system would need to leverage relevant data to provide both known and anonymous shoppers with product suggestions that are of interest to them. To pursue this initiative, Icebreaker settled on using Salesforce.com’s Commerce Cloud Einstein, a fully integrated AI.

    Results

    After integrating Commerce Cloud Einstein on all its global sites, Icebreaker was able to cross-sell and up-sell its merchandise more effectively by providing its shoppers with accurate product recommendations, ultimately increasing average order value.

    IT must also provide technology enablement for other channels, such as point-of-sale systems for brick-and-mortar

    Point-of-sale systems are the “real world” complement to e-commerce platforms. They provide functional capabilities for selling products in a physical store, including basic inventory management, cash register management, payment processing, and retail analytics. Many firms struggle with legacy POS environments that inhibit a modern customer experience.

    $27.338
    trillion dollars in retail sales are expected to be made globally in 2022 (eMarketer, 2022).

    84%
    of consumers believe that retailers should be doing more to integrate their online and offline channels (Invoca).

    39%
    of consumers are unlikely or very unlikely to visit a retailer’s store if the online store doesn’t provide physical store inventory information (V12).

    Strong Point-of-Sale Platforms Enable a Wide Range of Functional Areas:

    • Product Catalog Management
    • Discount Management
    • Coupon Management and Administration
    • Cash Management
    • Cash Register Reconciliation
    • Product Identification (Barcode Management)
    • Payment Processing
    • Compliance Management
    • Basic Inventory Management
    • Commerce Workflow Management
    • Exception Reporting and Overrides
    • Loyalty Program Management
    • Reporting and Analytics

    E-commerce and POS don’t live in isolation

    They’re key components of a well-oiled customer experience ecosystem!

    Integrate commerce solutions with other customer experience applications – and with ERP or logistics systems – to handoff transactions for order fulfilment.

    Having a customer master database – the central place where all up-to-the-minute data on a customer profile is stored – is essential for traditional and e-commerce success. Typically, the POS or e-commerce platform is not the system of record for the master customer profile: this information lives in a CRM platform or customer data warehouse. Conceptually, this system is at the center of the customer-experience ecosystem.

    Strong POS and e-commerce solutions orchestrate transactions but typically do not do the heavy lifting in terms of order fulfilment, shipping logistics, economic inventory management, and reverse logistics (returns). In an enterprise-grade environment, these activities are executed by an enterprise resource planning (ERP) solution – integrating your commerce systems with a back-end ERP solution is a crucial step from an application architecture point of view.

    This is an example of a customer experience ecosystem.  Core Apps (CRM, ERP): MMS Suite; E-Commerce; POS; Web CMS; Data Marts/BI Tools; Social Media Platforms

    Case Study

    INDUSTRY - Retail
    SOURCES - Amazon, n.d. CNET, 2020

    Amazon is creating a hybrid omnichannel experience for retail by introducing innovative brick-and-mortar stores

    Amazon

    Amazon began as an online retailer of books in the mid-1990s, and rapidly expanded its product portfolio to nearly every category imaginable. Often hailed as the foremost success story in online commerce, the firm has driven customer loyalty via consistently strong product recommendations and a well-designed site.

    Bringing Physical Retail Into the Digital Age

    Beginning in 2016 (and expanding in 2018), Amazon introduced Amazon Go, a next-generation grocery retailer, to the Seattle market. While most firms that pursue an e-commerce strategy traditionally come from a brick-and-mortar background, Amazon upended the usual narrative: the world’s largest online retailer opening physical stores to become a true omnichannel, “click-and-mortar” vendor. From the get-go, Amazon Go focused on innovating the physical retail experience – using cameras, IoT capabilities, and mobile technologies to offer “checkout-free” virtual shopping carts that automatically know what products customers take off the shelves and bill their Amazon accounts accordingly.

    Results

    Amazon received a variety of industry and press accolades for re-inventing the physical store experience and it now owns and operates seven separate store brands, with more still on the horizon.

    Case Study

    INDUSTRY - Retail
    SOURCES - Glossy, 2020

    Old Navy

    Old Navy is a clothing and accessories retail company that owns and operates over 1,200 stores across North America and China. Typically, Old Navy has relied on using traditional marketing approaches, but recently it has shifted to producing more digitally focused campaigns to drive revenue.

    Bringing Physical Retail Into the Digital Age

    To overcome pandemic-related difficulties, including temporary store closures, Old Navy knew that it had to have strong holiday sales in 2020. With the goal of stimulating retail sales growth and maximizing its pre-existing omnichannel capabilities, Old Navy decided to focus more of its holiday campaign efforts online than in years past. With this campaign centered on connected TV platforms, such as Hulu, and social media channels including Facebook, Instagram, and TikTok, Old Navy was able to take a more unique, fun, and good-humored approach to marketing.

    Results

    Old Navy’s digitally focused campaign was a success. When compared with third quarter sales figures from 2019, third quarter net sales for 2020 increased by 15% and comparable sales increased by 17%.

    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 Phase 5

    Call #1: Scope requirements, objectives, and your specific challenges.

    Call #2: Assess current maturity.

    Call #4: Identify relationship between current initiatives and capabilities.

    Call #6: Identify strategy risks.

    Call #8: Identify and prioritize improvements.

    Call #3: Identify target-state capabilities.

    Call #5: Create initiative profiles.

    Call #7: Identify required budget.

    Call #9: Summarize results and plan next steps.

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

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

    Enable Omnichannel Commerce That Delights Your Customers – Project Overview

    1. Identify Critical Drivers for Your Omnichannel Commerce Strategy 2. Map Drivers to the Right Channels and Technologies
    Best Practice Toolkit

    1.1 Assess Personas and Scenarios

    1.2 Create Key Drivers and Metrics

    2.1 Build the Commerce Channel Matrix

    2.2 Review Technology and Trends Primer

    Guided Implementations
    • Validate customer personas.
    • Validate commerce scenarios.
    • Review key drivers and metrics.
    • Build the channel matrix.
    • Discuss technology and trends.
    Onsite Workshop

    Module 1:

    Module 2:

    Identify Critical Drivers for Your Omnichannel Commerce Strategy

    Map Drivers to the Right Channels and Technologies

    Phase 1 Outcome:

    Phase 2 Outcome:

    An initial shortlist of customer-centric drivers for your channel strategy and supporting metrics.

    A completed commerce channel matrix tailored to your organization, and a snapshot of enabling technologies and trends.

    Phase 1

    Identify Critical Drivers for Your Omnichannel Commerce Strategy

    1.1 Assess Personas and Scenarios

    1.2 Create Key Drivers and Metrics

    Enable Omnichannel Commerce That Delights Your Customers

    Step 1.1

    Assess Personas and Scenarios

    This step will walk you through the following activities:

    1.1.1 Build key customer personas for your commerce strategy.

    1.1.2 Create commerce scenarios (journey maps) that you need to enable.

    Identify Critical Drivers for Your Omnichannel Commerce Strategy

    This step involves the following participants:

    • Business stakeholders (Sales, Marketing)
    • IT project team

    Outcomes of this step:

    • Critical customer personas
    • Key traditional and e-commerce scenarios

    Use customer personas to picture who will be using your commerce channels and guide scenario design and key drivers

    What Are Personas?

    Personas are detailed descriptions of the targeted audience of your e-commerce presence. Effective personas:

    • Express and focus on the major needs and expectations of the most important user groups.
    • Give a clear picture of the typical user’s behavior.
    • Aid in uncovering universal features and functionality.
    • Describe real people with backgrounds, goals, and values.

    Source: Usability.gov, n.d.

    Why Are Personas Important?

    Personas help:

    • Focus the development of commerce platform features on the immediate needs of the intended audience.
    • Detail the level of customization needed to ensure content is valuable to the user.
    • Describe how users may behave when certain audio and visual stimulus are triggered from the website.
    • Outline the special design considerations required to meet user accessibility needs.

    Key Elements of a Persona:

    • Persona Group (e.g. executives)
    • Demographics (e.g. nationality, age, language spoken)
    • Purpose of Using Commerce Channels (e.g. product search versus ready to transact)
    • Typical Behaviors and Tendencies (e.g. goes to different websites when cannot find products in 20 seconds)
    • Technological Environment of User (e.g. devices, browsers, network connection)
    • Professional and Technical Skills and Experiences (e.g. knowledge of websites, area of expertise)

    Use Info-Tech’s guidelines to assist in the creation of personas

    How many personas should I create?

    The number of personas that should be created is based on the organizational coverage of your commerce strategy. Here are some questions you should ask:

    • Do the personas cover a majority of your revenues or product lines?
    • Is the number manageable for your project team to map out?

    How do I prioritize which personas to create?

    The identified personas should generate the most revenue – or provide a significant opportunity – for your business. Here are some questions that you should ask:

    • Are the personas prioritized based on the revenue they generate for the business?
    • Is the persona prioritization process considering both the present and future revenues the persona is generating?

    Sample: persona for e-commerce platform

    Example

    Persona quote: “After I call the company about the widget, I would usually go onto the company’s website and look at further details about the product. How am I supposed to do so when it is so hard to find the company’s website on everyday search engines, such as Google, Yahoo, or Bing?”

    Michael is a middle-aged manager working in the financial district. He wants to buy the company’s widgets for use in his home, but since he is distrusting of online shopping, he prefers to call the company’s call center first. Afterwards, if Michael is convinced by the call center representative, he will look at the company’s website for further research before making his purchase.

    Michael does not have a lot of free time on his hands, and tries to make his free time as relaxing as possible. Due to most of his work being client-facing, he is not in front of a computer most of the time during his work. As such, Michael does not consider himself to be skilled with technology. Once he makes the decision to purchase, Michael will conduct online transactions and pay most delivery costs due to his shortage of time.

    Needs:

    • Easy-to-find website and widget information.
    • Online purchasing and delivery services.
    • Answer to his questions about the widget.
    • To maintain contact post-purchase for easy future transactions.

    Info-Tech Tip

    The quote attached to a persona should be from actual quotes that your customers have used when you reviewed your voice of the customer (VoC) surveys or focus groups to drive home the impact of their issues with your company.

    1.1.1 Activity: Build personas for your key customers that you’ll need to support via traditional and e-commerce channels

    1 hour

    1. In two to four groups, list all the major, target customer personas that need to be built. In doing so, consider the people who interact with your e-commerce site (or other channels) most often.
    2. Build a demographic profile for each customer persona. Include information such as age, geographic location, occupation, and annual income.
    3. Augment the persona with a psychographic profile. Consider the goals and objectives of each customer persona and how these might inform buyer behaviors.
    4. Introduce your group’s personas to the entire group, in a round-robin fashion, as if you are introducing your persona at a party.
    5. Summarize the personas in a persona map. Rank your personas according to importance and remove any duplicates.
    6. Use Info-Tech’s Create Personas to Drive Omnichannel Requirements Template to assist.

    Info-Tech Insight

    Persona building is typically used for understanding the external customer; however, if you need to gain a better understanding of the organization’s internal customers (those who will be interacting with the e-commerce platform), personas can also be built for this purpose. Examples of useful internal personas are sales managers, brand managers, and customer service directors.

    1.1.1 Activity: Build personas for your key customers that you’ll need to support via traditional and e-commerce channels (continued)

    Input

    • Customer demographics and psychographics

    Output

    • List of prioritized customer personas

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project team

    Build use-case scenarios to model the transactional customer journey and inform drivers for your commerce strategy

    A use-case scenario is a story or narrative that helps explore the set of interactions that a customer has with an organization. Scenario mapping will help identify key business and technology drivers as well as more granular functional requirements for POS or e-commerce platform selection.

    A GOOD SCENARIO…

    • Describes specific task(s) that need to be accomplished.
    • Describes user goals and motivations.
    • Describes interactions with a compelling but not overwhelming amount of detail.
    • Can be rough, as long as it provokes ideas and discussion.

    SCENARIOS ARE USED TO...

    • Provide a shared understanding about what a user might want to do and how they might want to do it.
    • Help construct the sequence of events that are necessary to address in your user interface(s).

    TO CREATE GOOD SCENARIOS…

    • Keep scenarios high level, not granular, in nature.
    • Identify as many scenarios as possible. If you’re time constrained, try to develop two to three key scenarios per persona.
    • Sketch each scenario out so that stakeholders understand the goal of the scenario.

    1.1.2 Exercise: Build commerce user scenarios to understand what you want your customers to do from a transactional viewpoint

    1 hour

    Example

    Simplified E-Commerce Workflow Purchase Products

    This image contains an example of a Simplified E-Commerce Workflow Purchase Products

    Step 1.2

    Create Key Drivers and Metrics

    This step will walk you through the following activities:

    • Create the business drivers you need to enable with your commerce strategy.
    • Enumerate metrics to track the efficacy of your commerce strategy.

    Identify Critical Drivers for Your Omnichannel Commerce Strategy

    This step involves the following participants:

    • Business stakeholders (Sales, Marketing)
    • IT project team

    Outcomes of this step:

    • Business drivers for the commerce strategy
    • Metrics and key performance indicators for the commerce strategy

    1.2 Finish elaboration of your scenarios and map them to your personas: identify core business drivers for commerce

    1.5 hours

    1. List all commerce scenarios required to satisfy the immediate needs of your personas.
      1. Does the use-case scenario address commonly felt user challenges?
      2. Can the scenario be used by those with changing behaviors and tendencies?
    2. Look for recurring themes in use-case scenarios (for example, increasing average transaction cost through better product recommendations) and identify business drivers: drivers are common thematic elements that can be found across multiple scenarios. These are the key principles for your commerce strategy.
    3. Prioritize your use cases by leveraging the priorities of your business drivers.

    Example

    This is an example of how step 1.2 can help you identify business drivers

    1.2 Finish elaboration of your scenarios and map them to your personas: identify core business drivers for commerce (continuation)

    Input

    • User personas

    Output

    • List of use cases
    • Alignment of use cases to business objectives

    Materials

    • Whiteboard
    • Markers

    Participants

    • Business Analyst
    • Developer
    • Designer

    Show the benefits of commerce solution deployment with metrics aimed at both overall efficacy and platform adoption

    The ROI and perceived value of the organization’s e-commerce and POS solutions will be a critical indication of the success of the suite’s selection and implementation.

    Commerce Strategy and Technology Adoption Metrics

    EXAMPLE METRICS

    Commerce Performance Metrics

    Average revenue per unique transaction

    Quantity and quality of commerce insights

    Aggregate revenue by channel

    Unique customers per channel

    Savings from automated processes

    Repeat customers per channel

    User Adoption and Business Feedback Metrics

    User satisfaction feedback

    User satisfaction survey with technology

    Business adoption rates

    Application overhead cost reduction

    Info-Tech Insight

    Even if e-commerce metrics are difficult to track right now, the implementation of a dedicated e-commerce platform brings access to valuable customer intelligence from data that was once kept in silos.

    Phase 2

    Map Drivers to the Right Channels and Technologies

    2.1 Build the Commerce Channel Matrix

    2.2 Review Technology and Trends Primer

    Enable Omnichannel Commerce That Delights Your Customers

    Step 2.1

    Build the Commerce Channel Matrix

    This step will walk you through the following activities:

    • Based on your business drivers, create a blended mix of e-commerce channels that will suit your organization’s and customers’ needs.

    Map Drivers to the Right Channels and Technologies

    This step involves the following participants:

    • Business stakeholders (Sales, Marketing)
    • IT project team

    Outcomes of this step:

    • Commerce channel map

    Pick the transactional channels that align with your customer personas and enable your target scenarios and drivers

    Traditional Channels

    E-Commerce Channels

    Hybrid Channels

    Physical stores (brick and mortar) are the mainstay of retailers selling tangible goods – some now also offer intangible service delivery.

    E-commerce websites as exemplified by services like Amazon are accessible by a browser and deliver both goods and services.

    Online ordering/in-store fulfilment is a model whereby customers can place orders online but pick the product up in store.

    Telesales allows customers to place orders over the phone. This channel has declined in favor of mobile commerce via smartphone apps.

    Mobile commerce allows customers to shop through a dedicated, native mobile application on a smartphone or tablet.

    IoT-enabled smart carts/bags allow customers to shop in store, but check-out payments are handled by a mobile application.

    Mail order allows customers to send (”snail”) mail orders. A related channel is fax orders. Both have diminished in favor of e-commerce.

    Social media embedded shopping allows customers to order products directly through services such as Facebook.

    Info-Tech Insight

    Your channel selections should be driven by customer personas and scenarios. For example, social media may be extensively employed by some persona types (i.e. millennials) but see limited adoption in other demographics or use cases (i.e. B2B).

    2.1 Activity: Build your commerce channel matrix

    30 minutes

    1. Inventory which transactional channels are currently used by your firm (segment by product lines if variation exists).
    2. Interview product leaders, sales leaders, and marketing managers to determine if channels support transactional capabilities or are used for marketing and service delivery.
    3. Review your customer personas, scenarios, and drivers and assess which of the channels you will use in the future to sell products and services. Document below.

    Example: Commerce Channel Map

    Product Line A Product Line B Product Line C
    Currently Used? Future Use? Currently Used? Future Use? Currently Used? Future Use?
    Store Yes Yes No No No No
    Kiosk Yes No No No No No
    E-Commerce Site/Portal No Yes Yes Yes Yes Yes
    Mobile App No No Yes Yes No Yes
    Embedded Social Yes Yes Yes Yes Yes Yes

    Input

    • Personas, scenarios, and driver

    Output

    • Channel map

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project team

    Step 2.2

    Review Technology and Trends Primer

    This step will walk you through the following activities:

    • Review the scope of e-commerce and POS solutions and understand key drivers impacting e-commerce and traditional commerce.

    Map Drivers to the Right Channels and Technologies

    This step involves the following participants:

    • Business stakeholders (Sales, Marketing)
    • IT project team

    Outcomes of this step:

    • Understanding of key technologies
    • Understanding of key trends

    Application spotlight: e-commerce platforms

    How It Enables Your Strategy

    • Modern e-commerce platforms provide capabilities for end-to-end orchestration of online commerce experiences, from product site deployment to payment processing.
    • Some e-commerce platforms are purpose-built for business-to-business (B2B) commerce, emphasizing customer portals and EDI features. Other e-commerce vendors place more emphasis on business-to-consumer (B2C) capabilities, such as product catalog management and executing transactions at scale.
    • There has been an increasing degree of overlap between traditional web experience management solutions and the e-commerce market; for example, in 2018, Adobe acquired Magento to augment its overall web experience offering within Adobe Experience Manager.
    • E-commerce platforms typically fall short when it comes to order fulfilment and logistics; this piece of the puzzle is typically orchestrated via an ERP system or logistics management module.
    • This research provides a starting place for defining e-commerce requirements and selection artefacts.

    Key Trends

    • E-commerce vendors are rapidly supporting a variety of form factors and integration with other channels such as social media. Mobile is sufficiently popular that some vendors and industry commentators refer to it as “m-commerce” to differentiate app-based shopping experiences from those accessed through a traditional browser.
    • Hybrid commerce is driving more interplay between e-commerce solutions and POS.

    E-Commerce KPIs

    Strong e-commerce applications can improve:

    • Bounce Rates
    • Exit Rates
    • Lead Conversion Rates
    • Cart Abandonment Rates
    • Re-Targeting Efficacy
    • Average Cart Size
    • Average Cart Value
    • Customer Lifetime Value
    • Aggregate Reach/Impressions

    Familiarize yourself with the e-commerce market

    How it got here

    Initial Traction as the Dot-Com Era Came to Fruition

    Unlike some enterprise application markets, such as CRM, the e-commerce market appeared almost overnight during the mid-to-late nineties as the dot-com explosion fueled the need to have reliable solutions for executing transactions online.

    Early e-commerce solutions were less full-fledged suites than they were mediums for payment processing and basic product list management. PayPal and other services like Digital River were pioneers in the space, but their functionality was limited vis-à-vis tools such as web content management platforms, and their ability to amalgamate and analyze the data necessary for dynamic personalization and re-targeting was virtually non-existent.

    Rapidly Expanding Scope of Functional Capabilities as the Market Matured

    As marketers became more sophisticated and companies put an increased focus on customer experience and omnichannel interaction, the need arose for platforms that were significantly more feature rich than their early contemporaries. In this context, vendors such as Shopify and Demandware stepped into the limelight, offering far richer functionality and analytics than previous offerings, such as asset management, dynamic personalization, and the ability to re-target customers who abandoned their carts.

    As the market has matured, there has also been a series of acquisitions of some players (for example, Demandware by Salesforce) and IPOs of others (i.e. Shopify). Traditional payment-oriented services like PayPal still fill an important niche, while newer entrants like Square seek to disrupt both the e-commerce market and point-of-sale solutions to boot.

    Familiarize yourself with the e-commerce market

    Where it’s going

    Support for a Proliferation of Form Factors and Channels

    Modern e-commerce solutions are expanding the number of form factors (smartphones, tablets) they support via both responsive design and in-app capabilities. Many platforms now also support embedded purchasing options in non-owned channels (for example, social media). With the pandemic leading to a heightened affinity for online shopping, the importance of fully using these capabilities has been further emphasized.

    AI and Machine Learning

    E-commerce is another customer experience domain ripe for transformation via the potential of artificial intelligence. Machine learning algorithms are being used to enhance the effectiveness of dynamic personalization of product collateral, improve the accuracy of product recommendations, and allow for more effective re-targeting campaigns of customers who did not make a purchase.

    Merger of Online Commerce and Traditional Point-of-Sale

    Many e-commerce vendors – particularly the large players – are now going beyond traditional e-commerce and making plays into brick-and-mortar environments, offering point-of-sale capabilities and the ability to display product assets and customizations via augmented reality – truly blending the physical and virtual shopping experience.

    Emphasis on Integration with the Broader Customer Experience Ecosystem

    The big names in e-commerce recognize they don’t live on an island: out-of-the-box integrations with popular CRM, web experience, and marketing automation platforms have been increasing at a breakneck pace. Support for digital wallets has also become increasingly popular, with many vendors integrating contactless payment technology (i.e. Apple Pay) directly into their applications.

    E-Commerce Vendor Snapshot: Part 1

    Mid-Market E-Commerce Solutions

    This image contains the logos for the following Companies: Magento; Spryker; Bigcommerce; Woo Commerce; Shopify

    E-Commerce Vendor Snapshot: Part 2

    Large Enterprise and Full-Suite E-Commerce Platforms

    This image contains the logos for the following Companies: Salesforce commerce cloud; Oracle Commerce Cloud; Adobe Commerce Cloud; Sitecore; Sap Hybris Commerce

    Speak with category experts to dive deeper into the vendor landscape

    • Fact-based reviews of business software from IT professionals.
    • Product and category reports with state-of-the-art data visualization.
    • Top-tier data quality backed by a rigorous quality assurance process.
    • User-experience insight that reveals the intangibles of working with a vendor.

    Software Reviews is powered by Info-Tech

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    We collect and analyze the most detailed reviews on enterprise software from real users to give you an unprecedented view into the product and vendor before you buy.

    Evaluate software category leaders through vendor rankings and awards

    SoftwareReviews

    This is an image of the data quarant report

    The Data Quadrant is a thorough evaluation and ranking of all software in an individual category to compare platforms across multiple dimensions.

    This is an image of the data quarant report chart

    Vendors are ranked by their Composite Score, based on individual feature evaluations, user satisfaction rankings, vendor capability comparisons, and likeliness to recommend the platform.

    This is a image of the Emotional Footprint Report

    The Emotional Footprint is a powerful indicator of overall user sentiment toward the relationship with the vendor, capturing data across five dimensions.

    This is a image of the Emotional Footprint Report chart

    Vendors are ranked by their Customer Experience (CX) Score, which combines the overall Emotional Footprint rating with a measure of the value delivered by the solution.

    Leading B2B E-Commerce Platforms

    As of February 2022

    Data Quadrant

    This image contains a screenshot of the Data Quadrant chart for B2B E-commerce

    Emotional Footprint

    This image contains a screenshot of the Emotional Footprint chart for B2B E-commerce

    Leading B2C E-Commerce Platforms

    As of February 2022

    Data Quadrant

    This image contains a screenshot of the Data Quadrant chart for B2C E-commerce

    Emotional Footprint

    This image contains a screenshot of the Emotional Footprint chart for B2C E-commerce

    Application spotlight: point-of-sale solutions

    How It Enables Your Strategy

    • Point-of-sale solutions provide capabilities for cash register/terminal management, transaction processing, and lightweight inventory management.
    • Many POS vendors also offer products that have the ability to create orders from EDI, phone, or fax channels.
    • An increasing emphasis has been placed on retail analytics by POS vendors – providing reporting and analysis tools to help with inventory planning, promotion management, and product recommendations.
    • Integration of POS systems with a central customer data warehouse or other system of record for customer information allows for the ability to build richer customer profiles and compare shopping habits in physical stores against other transactional channels that are offered.
    • POS vendors often offer (or integrate with) loyalty management solutions to track, manage, and redeem loyalty points. See this note on loyalty management systems.
    • Legacy and/or homegrown POS systems tend to be an area of frustration for customer experience management modernization.

    Key Trends

    • POS solutions are moving from “cash-register-only” solutions to encompass mobile POS form factors like smartphones and tablets. Vendors such as Square have experienced tremendous growth in opening up the market via “mPOS” platforms that have lower costs to entry than the traditional hardware needed to support full-fledged POS solutions.
    • This development puts robust POS toolsets in the hands of small and medium businesses that otherwise would be priced out of the market.

    POS KPIs

    Strong POS applications can improve:

    • Customer Data Collection
    • Inventory or Cash Shrinkage
    • Cost per Transaction
    • Loyalty Program Administration Costs
    • Cycle Time for Transaction Execution

    Point-of-Sales Vendor Snapshot: Part 1

    Mid-Market POS Solutions

    This image contains the following company Logos: Square; Shopify; Vend; Heartland|Retail

    Point-of-Sales Vendor Snapshot: Part 2

    Large Enterprise POS Platforms

    This image contains the following Logos: Clover; Oracle Netsuite; RQ Retail Management; Salesforce Commerce Cloud; Korona

    Leading Retail POS Systems

    As of February 2022

    Data Quadrant

    This is an image of the Data Quadrant Chart for the Leading Retail Pos Systems

    Emotional Footprint

    This is an image of the Emotional Footprint chart for the Leading Retail POS Systems

    Summary of Accomplishment

    Knowledge Gained

    • Commerce channel framework
    • Customer affinities
    • Commerce channel overview
    • Commerce-enabling technologies

    Processes Optimized

    • Persona definition for commerce strategy
    • Persona channel shortlist

    Deliverables Completed

    • Customer personas
    • Commerce user scenarios
    • Business drivers for traditional commerce and e-commerce
    • Channel matrix for omnichannel commerce

    Bibliography

    “25 Amazing Omnichannel Statistics Every Marketer Should Know (Updated for 2021).” V12, 29 June 2021. Accessed 12 Jan. 2022.

    “Amazon Go.” Amazon, n.d. Web.

    Andersen, Derek. “33 Statistics Retail Marketers Need to Know in 2021.” Invoca, 19 July 2021. Accessed 12 Jan. 2022.

    Andre, Louie. “115 Critical Customer Support Software Statistics: 2022 Market Share Analysis & Data.” FinancesOnline, 14 Jan. 2022. Accessed 25 Jan. 2022.

    Chuang, Courtney. “The future of support: 5 key trends that will shape customer care in 2022.” Intercom, 10 Jan. 2022. Accessed 11 Jan. 2022.

    Cramer-Flood, Ethan. “Global Ecommerce Update 2021.” eMarketer, 13 Jan. 2021. Accessed 12 Jan. 2022.

    Cramer-Flood, Ethan. “Spotlight on total global retail: Brick-and-mortar returns with a vengeance.” eMarketer, 3 Feb. 2022. Accessed 12 Apr. 2022.

    Fox Rubin, Ben. “Amazon now operates seven different kinds of physical stores. Here's why.” CNET, 28 Feb. 2020. Accessed 12 Jan. 2022.

    Krajewski, Laura. “16 Statistics on Why Omnichannel is the Future of Your Contact Center and the Foundation for a Top-Notch Competitive Customer Experience.” Business 2 Community, 10 July 2020. Accessed 11 Jan. 2022.

    Manoff, Jill. “Fun and convenience: CEO Nany Green on Old Navy’s priorities for holiday.” Glossy, 8 Dec. 2020. Accessed 12 Jan. 2022.

    Meola, Andrew. “Rise of M-Commerce: Mobile Ecommerce Shopping Stats & Trends in 2021.” Insider, 30 Dec. 2020. Accessed 12 Jan. 2022.

    “Outdoor apparel retailer Icebreaker uses AI to exceed shopper expectations.” Salesforce, n.d.(a). Accessed 20 Jan. 2022.

    “Personas.” Usability.gov., n.d. Web. 28 Aug. 2018.

    “PetSmart – Why Commerce Cloud?” Salesforce, n.d.(b). Web. 30 April 2018.

    Toor, Meena. “Customer expectations: 7 Types all exceptional researchers must understand.” Qualtrics, 3 Dec. 2020. Accessed 11 Jan. 2022.

    Westfall, Leigh. “Omnichannel vs. multichannel: What's the difference?” RingCentral, 10 Sept. 2021. Accessed 11 Jan. 2022.

    “Worldwide ecommerce will approach $5 trillion this year.” eMarketer, 14 Jan. 2021. Accessed 12 Jan. 2022.

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    Build a Service-Based Security Resourcing Plan

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    • Parent Category Name: Security Processes & Operations
    • Parent Category Link: /security-processes-and-operations
    • IT and security leaders across all industries must determine what and how many resources are needed to support the information security program.
    • Estimating current usage and future demand for security resources can be a difficult and time-consuming exercise.

    Our Advice

    Critical Insight

    Not all security programs need to be the same. A service-aligned security resourcing strategy will put organizations in the best position to respond to current and future service demands and address business needs as they evolve over time.

    Impact and Result

    • Info-Tech’s approach to resource planning focuses less on benchmarks and more on estimating actual demand for security services to ensure that there are enough resources to deliver them.
    • A well-designed security services portfolio is the first step towards determining resourcing needs.
    • When planning resource allocations, plan for both mandatory and discretionary demand to optimize utilization.

    Build a Service-Based Security Resourcing Plan Research & Tools

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

    1. Build a Service-Based Security Resourcing Plan – A blueprint to help you define security roles, build a service portfolio, estimate demand, and determine resourcing needs.

    This storyboard will help you to determine your security resourcing needs using a service-based approach.

    • Build a Service-Based Security Resourcing Plan – Phases 1-3

    2. Security Resources Planning Workbook – This tool will result in a defined security service portfolio and a three-year resourcing plan.

    Use this tool to build your security service portfolio and to determine resourcing needs to meet your service demand.

    • Security Resources Planning Workbook

    Infographic

    Workshop: Build a Service-Based Security Resourcing 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 Define Roles and Select Services

    The Purpose

    Identify the roles needed to implement and deliver your organization’s security services.

    Key Benefits Achieved

    A security services portfolio allows you to assign job roles to each service, which is the first step towards determining resourcing needs. Improve employee engagement and satisfaction with clearly defined job roles, responsibilities, and service levels.

    Activities

    1.1 Assess security needs and business pressures.

    1.2 Define security job roles.

    1.3 Define security services and assign ownership.

    Outputs

    Security Roles Definition

    Security Services Portfolio

    2 Estimate Current and Future Demand

    The Purpose

    Estimate the actual demand for security resources and determine how to allocate resources accordingly.

    Key Benefits Achieved

    Allocate resources more effectively across your Security and Risk teams.

    Raise the profile of your security team by aligning security service offerings with the demands of the business.

    Activities

    2.1 Estimate current and future demand.

    2.2 Review demand summary.

    2.3 Allocate resources where they are needed the most.

    Outputs

    Demand Estimates

    Resourcing Plan

    3 Identify Required Skills

    The Purpose

    When defining roles, consider the competencies needed to deliver your security services. Make sure to account for this need in your resource planning.

    Key Benefits Achieved

    Leverage the NCWF to establish the building blocks of a capable and ready cybersecurity workforce to effectively identify, recruit, develop and maintain cybersecurity talent.

    Activities

    3.1 Identify skills needed for planned initiatives.

    3.2 Prioritize your skill requirements.

    3.3 Assign work roles to the needs of your target environment.

    3.4 Discuss the NICE cybersecurity workforce framework.

    3.5 Develop technical skill requirements for current and future work roles.

    Outputs

    Prioritized Skill Requirements and Associated Roles

    4 Future Planning

    The Purpose

    Create a development plan to train and upskill your employees to address current and future service requirements.

    Key Benefits Achieved

    Skill needs are based on the strategic requirements of a business-aligned security program.

    Activities

    4.1 Continue developing technical skill requirements for current and future work roles.

    4.2 Conduct current workforce skills assessment.

    4.3 Develop a plan to acquire skills.

    4.4 Discuss training and certification opportunities for staff.

    4.5 Discuss next steps for closing the skills gap.

    4.6 Debrief.

    Outputs

    Role-Based Skills Gaps

    Workforce Development Plan

    Further reading

    Build a Service-Based Security Resourcing Plan

    Every security program is unique; resourcing allocations should reflect this.

    Analyst Perspective

    Start by looking inward.

    The image is a picture of Logan Rohde.The image is a picture of Isabelle Hertanto.

    Organizations have a critical need for skilled cybersecurity resources as the cyberthreat landscape becomes more complex. This has put a strain on many security teams who must continue to meet demand for an increasing number of security services. To deliver services well, we first need to determine what are the organization’s key security requirements. While benchmarks can be useful for quick peer-to-peer comparisons to determine if we are within the average range, they tend to make all security programs seem the same. This can lead to misguided investments in security services and personnel that might be better used elsewhere.

    Security teams will be most successful when organizations take a personalized approach to security, considering what must be done to lower risk and operate more efficiently and effectively.

    Logan Rohde

    Senior Research Analyst, Security

    Info-Tech Research Group

    Isabelle Hertanto

    Principal Research Director, Security

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    • IT and Security leaders across all industries must determine what and how many resources are needed to support the information security program.
    • Estimating current usage, the right allocations, and future demand for security resources can be a difficult and time-consuming exercise.
    • Needing to provide a benchmark to justify increasing headcount.
    • Absence of formally defined security service offerings and service owners.
    • Lack of skills needed to provide necessary security services.
    • Info-Tech’s approach to resource planning focuses less on benchmarks and more on estimating actual demand for security services to ensure that there are enough resources to deliver them.
    • A well-designed security services portfolio is the first step toward determining resourcing needs.
    • When allocating resources, plan for both mandatory and discretionary demand to position yourself for greatest success.

    Info-Tech Insight

    Not all security programs need to be the same. A service-aligned security resourcing strategy will put organizations in the best position to respond to current and future service demands and address business needs as they evolve over time.

    Your challenge

    This research is designed to help organizations who are looking to:

    • Determine what and how many resources are needed to support the information security program.
    • Identify the organization's key service offerings and the required resourcing to support delivery of such services.
    • Estimate current staff utilization and required allocations to satisfy future demand for services.

    Every organization is unique and will need different security research allocations aligned with their business needs.

    “The number of priorities that CISOs have continues to grow, but if everything is a priority, nothing is. It’s important to focus on the ones that deliver the most value to your organization and that are synchronized with the overall business strategy.”

    Paige H. Adams

    Global CISO at Zurich

    Insurance

    Source: Proofpoint, 2021

    Common obstacles

    These barriers make this challenge difficult to address for many organizations:

    • Security leaders sometimes try to cut to the chase and lean on staffing benchmarks to justify their requests for resources. However, while staffing benchmarks are useful for quick peer-to-peer validation and decision making, they tend to reduce security programs down to a set of averages, which can be misleading when used out of context.
    • A more effective approach is to determine what security services need to be provided, the level of demand, and what it will take to meet that demand currently and in the coming years.
    • With these details available, it becomes much easier to predict what roles need to be hired, what skills need to be developed, and whether outsourcing is an option.

    Hiring delays and skills gaps can fuel resourcing challenges

    59% of organizations report taking 3-6+ months to fill a vacant cybersecurity position.

    Source: ISACA, 2020

    30% report IT knowledge as the most prevalent skills gap in today’s cybersecurity professionals.

    Source: ISACA, 2020

    Info-Tech’s methodology for Building a Service-Based Security Resourcing Plan

    1. Determine Security Service Portfolio Offerings

    2. Plan for Mandatory Versus Discretionary Demand

    3. Define Your Resourcing Model

    Phase Steps

    1 Gather Requirements and Define Roles

    1.2 Choose Security Service Offerings

    2.1 Assess Demand

    3.1 Review Demand Summary

    3.2 Develop an Action Plan

    Phase Outcomes

    Security requirements

    Security service portfolio

    Service demand estimates

    Service hour estimates

    Three-year resourcing plan

    Stay on top of resourcing demands with a security service portfolio

    Security programs should be designed to address unique business needs.

    A service-aligned security resourcing strategy will put organizations in the best position to respond to current and future service demands and address business needs as they evolve over time.

    Watch out for role creep.

    It may be tempting to assign tasks to the people who already know how to do them, but we should consider which role is most appropriate for each task. If all services are assigned to one or two people, we’ll quickly use up all their time.

    Time estimates will improve with practice.

    It may be difficult to estimate exactly how long it takes to carry out each service at first. But making the effort to time your activities each quarter will help you to improve the accuracy of your estimates incrementally.

    Start recruiting well in advance of need.

    Security talent can be difficult to come by, so make sure to begin your search for a new hire three to six months before your demand estimates indicate the need will arise.

    People and skills are both important.

    As the services in your portfolio mature and become more complex, remember to consider the skills you will need to be able to provide that service. Make sure to account for this need in your resource planning and keep in mind that we can only expect so much from one role. Therefore, hiring may be necessary to keep up with the diverse skills your services may require.

    Make sure your portfolio reflects reality.

    There’s nothing wrong with planning for future state, but we should avoid using the portfolio as a list of goals.

    Blueprint deliverable

    Use this tool to build your security services portfolio, estimate demand and hours needed, and determine FTE requirements.

    The image contains screenshots of the Security Resources Planning Workbook.

    Key deliverable:

    Security Resources Planning Workbook

    The Security Resources Planning Workbook will be used to:

    • Build a security services portfolio.
    • Estimate demand for security services and the efforts to deliver them.
    • Determine full-time equivalent (FTE) requirements for each service.
    The image contains a thought model to demonstrate the benchmarks that lead to a one-size-fits-all approach to security.

    Blueprint benefits

    IT Benefits

    Business Benefits

    • Allocate resources more effectively across your security and risk teams.
    • Improve employee engagement and satisfaction with clearly defined job roles, responsibilities, and service levels.
    • Raise the profile of your security team by aligning security service offerings with the demands of the business.
    • Ensure that people, financial, knowledge, and technology resources are appropriately allocated and leveraged across the organization.
    • Improve your organization’s ability to satisfy compliance obligations and reduce information security risk.
    • Increase customer and business stakeholder satisfaction through reliable service delivery.

    Measure the value of this blueprint

    Use these metrics to realize the value of completing this blueprint.

    Metric

    Expected Improvement

    Level of business satisfaction with IT security

    You can expect to see a 20% improvement in your IT Security Business Satisfaction Diagnostic.

    Reports on key performance indicators and service level objectives

    Expect to see a 40% improvement in security service-related key performance indicators and service level objectives.

    Employee engagement scores

    You can expect to see approximately a 10% improvement in employee engagement scores.

    Changes in rates of voluntary turnover

    Anticipating demand and planning resources accordingly will help lower employee turnover rates due to burnout or stress leave by as much as 10%.

    47% of cybersecurity professionals said that stress and burnout has become a major issue due to overwork, with most working over 41 hours a week, and some working up to 90.

    Source: Security Boulevard, 2021

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

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting

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

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2 Phase 3

    Call #1: Scope requirements, objectives, and your specific drivers.

    Call #2: Discuss roles and duties.

    Call #3: Build service portfolio and assign ownership.

    Call #4: Estimate required service hours.

    Call #5: Review service demand and plan for future state.

    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 4 to 6 calls over the course of 2 to 3 months.

    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

    Define Roles and Select Services

    Estimate Current and Future Demand

    Identify Required Skills

    Future Planning

    Next Steps and
    Wrap-Up (offsite)

    Activities

    1.1 Assess Security Needs and Business Pressures.

    1.2 Define Security Job Roles.

    1.3 Define Security Services and Assign Ownership.

    2.1 Estimate Current and Future Demand.

    2.2 Review Demand Summary.

    2.3 Allocate Resources Where They Are Needed the Most.

    3.1 Identify Skills Needed Skills for Planned Initiatives.

    3.2 Prioritize Your Skill Requirements.

    3.3 Assign Work Roles to the Needs of Your Target Environment.

    3.4 Discuss the NICE Cybersecurity Workforce Framework.

    3.5 Develop Technical Skill Requirements for Current and Future Work Roles.

    4.1 Continue Developing Technical Skill Requirements for Current and Future Work Roles.

    4.2 Conduct Current Workforce Skills Assessment.

    4.3 Develop a Plan to Acquire Skills.

    4.4 Discuss Training and Certification Opportunities for Staff.

    4.5 Discuss Next Steps for Closing the Skills Gap.

    4.6 Debrief.

    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. FTE-Hours Calculation
    2. Security Roles Definition
    3. Security Services Portfolio
    1. Demand Estimates
    2. Resourcing Plan
    1. Skills Gap Prioritization Tool
    2. Technical Skills Tool
    1. Technical Skills Tool
    2. Current Workforce Skills Assessment
    3. Skills Development Plan

    Phase 1

    Determine Security Service Portfolio Offerings

    Phase 1

    Phase 2

    Phase 3

    1.1 Gather Requirements and Define Roles

    1.2 Choose Security Service Offerings

    2.1 Assess Demand

    3.1 Determine Resourcing Status

    This phase involves the following participants:

    • CISO
    • Core Security Team
    • Business Representative (optional)

    Step 1.1

    Gather Requirements and Define Roles

    Activities

    1.1.1 Assess Business Needs and Pressures

    1.1.2 Define Security Roles

    This step involves the following participants:

    • CISO
    • Core Security Team
    • Business Representative (optional)

    Outcomes of this step

    • Security program requirements
    • Security roles definitions

    1.1.1 Assess security needs and pressures

    1 hour

    1. As a group, brainstorm the security requirements for your organization and any business pressures that exist within your industry (e.g. compliance obligations).
    • To get started, consider examples of typical business pressures on the next slides. Determine how your organization must respond to these points (note: this is not an exhaustive list).
    • You will likely notice that these requirements have already influenced the direction of your security program and the kinds of services it needs to provide to the business side of the organization.
  • There may be some that have not been well addressed by current service offerings (e.g. current service maturity, under/over definition of a service). Be sure to make a note of these areas and what the current challenge is and use these details in Step 1.2.
  • Document the results for future use in Step 1.2.1.
  • Input Output
    • List of key business requirements and industry pressures
    • Prioritized list of security program requirements
    Materials Participants
    • Whiteboard
    • Sticky notes
    • CISO
    • Core Security Team
    • Business Representative (optional)

    Typical business pressures examples

    The security services you will provide to the organization should be based on its unique business requirements and pressures, which will make certain services more applicable than others. Use this exercise to get an idea of what those business drivers might be.

    The image contains a screenshot of Typical business pressures examples.

    1.1.2 Define security roles

    1-2 hours

    1. Using the link below, download the Security Resources Planning Workbook and review the examples provided on the next slide.
    2. On tab 1 (Roles), review the example roles and identify which roles you have within your security team.
    • If necessary, customize the roles and descriptions to match your security team’s current make up.
    • If you have roles within your security team that do not appear in the examples, you can add them to the bottom of the table.
  • For each role, use columns D-F to indicate how many people (headcount) you have, or plan to have, in that role.
  • Use columns H-J to indicate how many hours per year each role has available to deliver the services within your service catalog.
  • Input Output
    • Full-time hours worked per week Weeks worked per year Existing job descriptions/roles
    • Calculated full-time equivalents (FTE) Defined security roles
    Materials Participants
    • Security Resources Planning Workbook
    • CISO
    • Core Security Team

    Download the Security Resources Planning Workbook

    Calculating FTEs and defining security roles

    The image contains a screenshot of the workbook demonstrating calculating FTEs and defining security roles.

    1. Start by entering the current and planned headcount for each role
    2. Then enter number of hours each role works per week
    3. Estimate the number of administrative hours (e.g. team meetings, training) per week
    4. Enter the average number of weeks per year that each role is available for service delivery
    5. The tool uses the data from steps 2-4 to calculate the average number of hours each role has for service delivery per year (FTE)

    Info-Tech Insight

    Watch out for role creep. It may be tempting to assign tasks to the people who already know how to do them, but we should consider which role is most appropriate for each task. If all services are assigned to one or two people, we’ll quickly use up all their time.

    Other considerations

    Address your skills gap.

    Cybersecurity is a rapidly evolving discipline and security teams from all over are reporting challenges related to training and upskilling needed to keep pace with the developments of the threat landscape.

    95% Security leaders who agree the cybersecurity skills gap has not improved over the last few years.*

    44% Security leaders who say the skills gap situation has only gotten worse.*

    When defining roles, consider the competencies needed to deliver your security services. Use Info-Tech’s blueprint Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan to help you determine the required skillsets for each role.

    * Source: ISSA, 2021

    Info-Tech Insight

    As the services in your portfolio mature and become more complex, remember to consider the skills you need and will need to be able to provide that service. Make sure to account for this need in your resource planning and keep in mind that we can only expect so much from one role. Therefore, hiring may be necessary to keep up with the diverse skills your services may require.

    Download blueprint Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan

    Step 1.2

    Choose Security Service Offerings

    Activities

    1.2.1 Define Security Services and Role Assignments

    This step involves the following participants:

    • CISO
    • Core Security Team

    Outcomes of this step

    • Service portfolio
    • Service pipeline status
    • Service ownership

    1.2.1 Define security services and role assignments

    2-4 hours

    1. As a group, review the outputs from Step 1.1.1. These requirements will serve as the basis to prioritize the service offerings of your security portfolio.
    2. Take these outputs, as well as any additional notes you’ve made, and put them side by side with the example service offerings on tab 3 of the Security Resources Planning Workbook so each service can be considered alongside these requirements (i.e. to determine if that service should be included in the security service portfolio at this time).
    3. Using the following slides as a guide, work your way down the list of example services and choose the services for your portfolio. For each service selected, be sure to customize the definition of the service and state its outcome (i.e. what time is spent when providing this service, indicate if it is outsourced, which role is responsible for delivering it, and the service pipeline status (in use, plan to use, plan to retire)).
    InputOutput
    • Business and security requirements gathered in Step 1.1.1
    • Defined security service portfolio
    • Service ownership assigned to role
    MaterialsParticipants
    • Security Resources Planning Workbook
    • CISO
    • Core Security Team

    Download the Security Resources Planning Workbook

    Service needs aligned with your control framework

    Use Info-Tech's best-of-breed Security Framework to develop a comprehensive baseline set of security service areas.

    The image contains a screenshot of the Security Framework.

    Prioritize your security services

    Example of a custom security services portfolio definition

    Security Strategy and Governance Model

    • Aligned Business Goals
    • Security Program Objectives
    • Centralized vs. Decentralized Governance Model

    Compliance Obligations

    • Penetration testing
    • Annual security audits
    • Data privacy and protection laws

    CISO Accountabilities

    • Security Policy
    • Risk Management
    • Application & Infrastructure Security
    • Program Metrics and Reporting

    Consider each of the requirement categories developed in Step 1.1.1 against the taxonomy and service domain here. If there is a clear need to add this service, use the drop-down list in the “Include in Catalog” column to indicate “Yes.” Mark un-needed services as “No.”

    The image contains a screenshot of the security services portfolio definition.

    Assigning roles to services

    The image contains an example of assigning roles to services.

    1. If the service is being outsourced, use the drop-down list to select “Yes.” This will cause the formatting to change in the neighboring cell (Role), as this cell does not need to be completed.
    2. For all in-sourced services, indicate the role assigned to perform the service.
    3. Indicate the service-pipeline status for each of the services you include. The selection you make will affect the conditional formatting on the next tab, similar to what is described in step 1.

    Info-Tech Insight

    Make sure your portfolio reflects current state and approved plans. There’s nothing wrong with planning for the future, but we should avoid using the portfolio as a list of goals.

    Phase 2

    Plan for Mandatory Versus Discretionary Demand

    Phase 1

    Phase 2

    Phase 3

    1.1 Gather Requirements and Define Roles

    1.2 Choose Security Service Offerings

    2.1 Assess Demand

    3.1 Determine Resourcing Status

    This phase involves the following participants:

    • CISO
    • Core Security Team

    Step 2.1

    Assess Demand

    Activities

    2.1.1 Estimate Current and Future Demand

    This step involves the following participants:

    • CISO
    • Core Security Team

    Outcomes of this step

    • Service demand estimates
    • Total service hours required
    • FTEs required per service

    2.1.1 Estimate current and future demand

    2-4 hours

    1. Estimate the number of hours required to complete each of the services in your portfolio and how frequently it is performed. Remember the service-hour estimates should be based on the outcome of the service (see examples on the next slide).
    • To do this effectively, think back over the last quarter and count how many times the members of your team performed each service and how many hours it took to complete.
    • Then, think back over the last year and consider if the last quarter represents typical demand (i.e. you may notice that certain services have a greater demand at different parts of the year, such as annual audit) and arrive at your best estimate for both service hours and demand.
    • See examples on next slide.

    Note: For continuous services (i.e. 24/7 security log monitoring), use the length of the work shift for estimating the Hours to Complete and the corresponding number of shifts per year for Mandatory Demand estimates. Example: For an 8-hour shift, there are 3 shifts per day at 365 days/year, resulting in 1,095 total shifts per year.

    Download the Security Resources Planning Workbook

    InputOutput
    • Service-hour estimations
    • Expected demand for service
    • Discretionary demand for service
    • Total hours required for service
    • FTEs required for service
    MaterialsParticipants
    • Security Resources Planning Workbook
    • CISO
    • Core Security Team

    Info-Tech Insight

    Time estimates will improve over time. It may be difficult to estimate exactly how long it takes to carry out each service at first. But making the effort to time your activities each quarter will help you to improve the accuracy of your estimates incrementally.

    Understanding mandatory versus discretionary demand

    Every service may have a mix of mandatory and discretionary demands. Understanding and differentiating between these types of demand is critical to developing an efficient resourcing plan.

    The image contains a picture used to represent mandatory demand.

    Mandatory Demand

    Mandatory demand refers to the amount of work that your team must perform to meet compliance obligations and critical business and risk mitigation requirements.

    Failure to meet mandatory demand levels will have serious consequences, such as regulatory fines or the introduction of risks that far exceed risk tolerances. This is work you cannot refuse.

    The image contains a diagram to demonstrate the relationship between Mandatory and Discretionary demand.

    The image contains a picture used to represent discretionary demand.

    Discretionary Demand

    Discretionary demand refers to the amount of work the security team is asked to perform that goes above and beyond your mandatory demand. Discretionary demand often comes in the form of ad hoc requests from business units or the IT department.

    Failure to meet discretionary demand levels usually has limited consequences, allowing you more flexibility to decide how much of this type of work you can accept.

    Mandatory versus discretionary demand examples

    Service Name

    Mandatory Demand Example

    Discretionary Demand Example

    Penetration Testing

    PCI compliance requires penetration testing against all systems within the cardholder data environment annually (currently 2 systems per year).

    Business units request ad hoc penetration testing against non-payment systems (expected 2-3 systems per year).

    Vendor Risk Assessments

    GDPR compliance requires vendor security assessments against all third parties that process personal information on our behalf (expected 1-2 per quarter).

    IT department has requested that the security team conduct vendor security assessments for all cloud services, regardless of whether they store personal information (expected 2-3 assessments per quarter).

    e-Discovery and Evidence Handling

    There is no mandatory demand for this service.

    The legal department occasionally asks the security team to assist with e-Discovery requests (expected demand 1-2 investigations per quarter).

    Example of service demand estimations

    The image contains a screenshot example of service demand estimations.

    1. For each service, describe the specific outcome or deliverable that the service produces. Modify the example deliverables as required.
    2. Enter the number of hours required to produce one instance of the service deliverable. For example, if the deliverable for your security training service is an awareness campaign, it may require 40 person hours to develop and deliver.
    3. Enter the number of mandatory and discretionary demands expected for each service within a given year. For instance, if you are delivering quarterly security awareness campaigns, enter 4 as the demand.

    Phase 3

    Build Your Resourcing Plan

    Phase 1

    Phase 2

    Phase 3

    1.1 Gather Requirements and Define Roles

    1.2 Choose Security Service Offerings

    2.1 Assess Demand

    3.1 Determine Resourcing Status

    This phase involves the following participants:

    • CISO
    • Security Manager

    Step 3.1

    Determine Resourcing Status

    Activities

    3.1.1 Review Demand Summary

    3.1.2 Fill Resource Gaps

    This step involves the following participants:

    • CISO
    • Security Manager

    Outcomes of this step

    • The number of FTEs required to meet demand
    • Resourcing gaps

    3.1.1 Review demand summary

    1-2 hours

    1. On tab 5 of the Security Resourcing Planning Tool (Demand Summary), review the results. This tab will show you if you have enough FTE hours per role to meet the demand level for each service.
    • Green indicates that there is a surplus of FTEs and the number displayed shows how many extra FTEs there are.
    • Yellow text that you have adequate FTEs to meet all of your mandatory demand but may not have enough to meet all of your discretionary demand.
    • Red text indicates that there are too few FTEs available, and the number displayed shows how many additional FTEs you will require.
  • Take note of how many FTEs you will need to meet expected and discretionary demand in each of the years you’ve planned for.
  • Input Output
    • Current staffing
    • Resourcing model
    Materials Participants
    • Security Resources Planning Workbook
    • CISO
    • HR Representative

    Download the Security Resources Planning Workbook

    Info-Tech Insight

    Start recruiting well in advance of need. Security talent can be difficult to come by, so make sure to begin your search for a new hire three to six months before your demand estimates indicate the need will arise.

    Example of demand planning summary (1/2)

    The image contains a screenshot of an example of demand planning summary.

    Example of demand planning summary (2/2)

    The image contains a screenshot of an example of demand planning. This image has a screenshot of the dashboard.

    3.1.2 Fill resource gaps

    2-4 hours

    1. Now that you have a resourcing model for your security services, you will need to plan to close the gaps between available FTEs and required service hours. For each role that has been under/over committed to service delivery, review the services assignments on tab 3 and determine the viability of the following gap closure actions:
      1. Reassign service responsibility to another role with fewer commitments
      2. Create efficiencies to reduce required hours
      3. Hire to meet the service demand
      4. Outsource the service
    2. Your resourcing shortages may not all be apparent at once. Therefore, build a roadmap to determine which needs must be addressed immediately and which can be scheduled for years two and three.

    Consider outsourcing

    Outsourcing provides access to tools and talent that would otherwise be prohibitively expensive. Typical reasons for outsourcing security operations include:

    • Difficulty finding or retaining security staff with advanced and often highly specialized skillsets.
    • The desire to transfer liability for high-risk operational activities such as 24/7 security monitoring.
    • Workforce scalability to accommodate irregular or infrequent events such as incident response and incident-related forensic investigations.

    Given the above, three different models have emerged for the operational security organization:

    1. Outsourced SecOps

    A fully outsourced Security Operations Center, managed and governed by a smaller in-house team

    2. Balanced Hybrid

    In-house operational security staff with some reliance on managed services

    3. In-House SecOps

    A predominantly in-house security team, augmented by a small managed services contract

    Once you have determined that further outsourcing is needed, go back and adjust the status in your service portfolio. Use Info-Tech's blueprint Develop Your Security Outsourcing Strategy to determine the right approach for your business needs.

    “The workforce of the future needs to be agile and adaptable, enabled by strong partnerships with third-party providers of managed security services. I believe these hybrid models really are the security workforce of the future.”

    – Senior Manager, Cybersecurity at EY

    Download blueprint Develop Your Security Outsourcing Strategy

    Info-Tech Insight

    Choose the right model for your organization’s size, risk tolerance, and process maturity level. For example, it might make more sense for larger enterprises with low risk tolerance to grow their internal teams and build in-house capability.

    Create efficiencies

    Resourcing challenges are often addressed more directly by increased spending. However, for a lot of organizations, this just isn’t possible. While there is no magic solution to resolve resource constraints and small budgets, the following tactics should be considered as a means to reduce the hours required for the services your team provides.

    Upskill Your Staff

    If full-scale training is not an option, see if there are individual skills that could be improved to help improve time to completion for your services. Use Info-Tech's blueprint Close the InfoSec Skills Gap to determine which skills are needed for your security team.

    Improve Process Familiarity

    In some organizations, especially low-maturity ones, problems can arise simply because there is a lack of familiarity with what needs to be done. Review the process, socialize it, and make sure your staff can execute in within the target time allotment.

    Add Technology

    Resourcing crunch or not, technology can help us do things better. Investigate whether automation software might help to shave a few hours off a given service. Use Info-Tech's blueprint Build a Winning Business Process Automation Playbook to optimize and automate your business processes with a user-centric approach.

    Download the blueprint Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan

    Download the blueprint Build a Winning Business Process Automation Playbook

    Info-Tech Insight

    Every minute counts. While using these strategies may not solve every resourcing crunch you have, they can help put you in the best position possible to deliver on your commitments for each service.

    Plan for employee turnover

    Cybersecurity skills are in high demand; practitioners are few. The reality is that experienced security personnel have a lot of opportunities. While we cannot control for the personal reasons employees leave jobs, we can address the professional reasons that cause them to leave.

    Fair wage

    Reasonable expectations

    Provide training

    Defined career path

    It’s a sellers’ market for cybersecurity skills these days. Higher-paying offers are one of the major reasons security leaders leave their jobs (ISSA, 2021).

    Many teams lose out on good talent simply because they have unrealistic expectations, seeking 5+ years experience for an entry-level position, due to misalignment with HR (TECHNATION, 2021).

    Technology is changing (and being adopted) faster than security professionals can train on it. Ongoing training is needed to close these gaps (ISO, 2021).

    People want to see where they are now, visualize where they will be in the future, and understand what takes to get there. This helps to determine what types of training and specialization are necessary (DigitalGuardian, 2020).

    Use Info-Tech’s blueprint Build a Strategic IT Workforce Plan to help staff your security organization for success.

    The image contains a screenshot of the Build a Strategic IT Workforce Plan.

    Download blueprint Build a Strategic IT Workforce Plan

    Summary of Accomplishment

    Problem Solved

    You have now successfully identified your business and security drivers, determined what services your security program will provide, and determined your resourcing plan to meet these demands over the next three years.

    As needs change at your organization, don’t forget to re-evaluate the decisions you’ve made. Don’t forget that outsourcing a service may be the most reliable way to provide and resource it. However, this is just one tool among many that should be considered, along with upskilling, process improvement/familiarity, and process automation.

    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 and Experts

    The image contains a picture of George Al-Koura.

    George Al-Koura

    CISO

    Ruby Life

    The image contains a picture of Brian Barniner.

    Brian Barniner

    Head of Decision Science and Analytics

    ValueBridge Advisors

    The image contains a picture of Tracy Dallaire.

    Tracy Dallaire

    CISO / Director of Information Security

    McMaster University

    The image contains a picture of Ricardo Johnson.

    Ricardo Johnson

    Chief Information Security Officer

    Citrix

    Research Contributors and Experts

    The image contains a picture of Ryan Rodriguez.

    Ryan Rodriguez

    Senior Manager, Cyber Threat Management

    EY

    The image contains a picture of Paul Townley.

    Paul Townley

    VP Information Security and Personal Technology

    Owens Corning

    13 Anonymous Contributors

    Related Info-Tech Research

    Cost-Optimize Your Security Budget

    Develop Your Security Outsourcing Strategy

    Close the InfoSec Skills Gap: Develop a Technical Skills Sourcing Plan

    Bibliography

    2021 Voice of the CISO Report.” Proofpoint, 2021. Web.

    “2022 Voice of the CISO.” Proofpoint, 2022. Web.

    Brook, Chris. “How to Find and Retain Skilled Cybersecurity Talent.” DigitalGuardian, 17 Sep. 2020. Web.

    “Canadian Cybersecurity Skills Framework” TECHNATION Canada, April 2020. Web.

    “Cybersecurity Skills Crisis Continues for Fifth Year, Perpetuated by Lack of Business Investment.” ISSA, 28 July 2021. Web.

    “Cybersecurity Workforce, National Occupational Standard.” TECHNATION Canada, April 2020. Web.

    Naden, Clare. “The Cybersecurity Skills Gap: Why Education Is Our Best Weapon against Cybercrime.” ISO, 15 April 2021. Web.

    Purse, Randy. “Four Challenges in Finding Cybersecurity Talent And What Companies Can Do About It.” TECHNATION Canada, 29 March 2021. Web.

    Social-Engineer. “Burnout in the Cybersecurity Community.” Security Boulevard, 8 Dec. 2021. Web.

    “State of Cybersecurity 2020.” ISACA, 2020. Web.

    What is resilience?

    Aside from the fact that operational resilience is mandated by law as of January 2025 (yes, next year), having your systems and applications available to your customers whenever they need your services is always a good idea. Customers, both existing and new ones, typically prefer smooth operations over new functionality. If you have any roadblocks in your current customer journey, then solving those is also part of operational resilience (and excellence).

    Does this mean you should not market new products or services? Of course not! Solving a customer journey roadblock is ensuring that your company is resilient. The Happy Meal is a prime example: it solved a product roadblock for small children and a profits roadblock for the company. For more info, just google it. But before you bring a new service online, be sure that it can withstand the punches that will be thrown at it. 

    What is resilience? 

    Resilience is the art of making sure your services are available to your customers whenever they can use them. Note I did not say 24/7/365. Your business may require that, but perhaps your systems need "only" to be available during "normal" business hours.

    Resilient systems can withstand adverse events that impair their ability to perform normal functions, and, like in the case the Happy Meals, increased peak demands. Events can include simple breakdowns (like a storage device, an internet connection that fails, or a file that fails to load) or something worse, like a cyber attack or a larger failure in your data center.

    Your client does not care what the cause is; what counts for the client is, "Can I access your service? (or buy that meal for my kid.)"

    Resilience entails several aspects:

    • availability
    • performance
    • right-sizing
    • hardening
    • restore-ability
    • testing
    • monitoring
    • management and governance

    It is now tempting to apply these aspects only to your organization's IT or technical parts. That is insufficient. Your operations, management, and even e.g. sales must ensure that services rendered result in happy clients and happy shareholders/owners. The reason is that resilient operations are a symphony. Not one single department or set of actions will achieve this. When you have product development working with the technical teams to develop a resilient flow at the right level for its earning potential, then you maximize profits.

    This synergy ensures that you invest exactly the right level of resources. There are no exaggerated technical or operational elements for ancillary services. That frees resources to ensure your main services receive the full attention they deserve.

    Resilience, in other words, is the result of a mindset and a way of operating that helps your business remain at the top of its game and provides a top service to clients while keeping the bottom line in the black. 

    Why do we need to spend on this?

    I mean, if it ain't broke, don't fix it. That old adage is true, and yet not. Services can remain up and running for a long time with single points of failure. But can you afford to have them break at any time? If yes, and your customers don't mind waiting for you to patch things up, then you can "risk-accept" that situation. But how realistic is that these days? If I cannot buy it at your shop today, I'll more than likely get it from another. If I'm in a contract with you, yet you cannot deliver, we will have a conversation, or at the very least, a moment of disappointment. If you have enough "disappointments," you will lose the customer. Lose enough customers, and you will have a reputational problem or worse.

    We don't like to spend resources on something that "may"go wrong. We do risk assessments to determine the true cost of non-delivery and the likelihood of that happening. And there are different ways to deal with that assessment's outcome. Not everything needs to have double the number of people working on it, just in case one resignes. Not every system needs an availability of 99,999%.

    But sometimes, we do not have a choice. When lives are at stake, like in medical or aviation services, being sorry is not a good starting point. The same goes for financial services. the DORA and NIS2 legislation in the EU, the CEA, FISMA, and GLBA in the US, and ESPA in Japan, to name a few, are legislations that require your company, if active in the relevant regulated sectors, to comply and ensure that your services continue to perform.

    Most of these elements have one thing in common: we need to know what is important for our service delivery and what is not.

    Business service

    That brings us to the core subject of what needs to be resilient. The answer is very short and very complex at the same time. It is the service that you offer to your customers which must meet reliance levels.

    Take the example of a hospital. When there is a power outage, the most critical systems must continue operating for a given period. That also means that sufficient capable staff must be present to operate said equipment; it even means that the paths leading to said hospital should remain available; if not by road, then, e.g., by helicopter. If these inroads are unavailable, an alternate hospital should be able to take on the workload. 

    Not everything here in this example is the responsibility of the hospital administrators! This is why the management and governance parts of the resilience ecosystem are so important in the bigger picture. 

    If we look at the financial sector, the EU DORA (Digital Operational Resilience Act) specifically states that you must start with your business services. Like many others, the financial sector can no longer function without its digital landscape. If a bank is unexpectedly disconnected from its payment network, especially SWIFT, it will not be long before there are existential issues. A trading department stands to lose millions if the trading system fails. 

    Look in your own environment; you will see many such points. What if your internet connection goes down, and you rely on it for most of your business? How long can you afford to be out? How long before your clients notice and take action? Do you supply a small but critical service to an institution? Then, you may fall under the aforementioned laws (it's called third-party requirements, and your client may be liable to follow them.)

    But also, outside of the technology, we see points in the supply chain that require resilience. Do you still rely on a single person or provider for a critical function? Do you have backup procedures if the tech stops working, yet your clients require you to continue to service them? 

    In all these and other cases, you must know what your critical services are so that you can analyze the requirements and put the right measures in place.

    Once you have defined your critical business services and have analyzed their operational requirements, you can start to look at what you need to implement the aforementioned areas of availability, monitoring, hardening, and others. Remember we're still at the level of business service. The tech comes later and will require a deeper analysis. 

    In conclusion.

    Resilient operations ensure that you continue to function, at the right price, in the face of adverse events. If you can, resilience starts at the business level from the moment of product conception. If the products have long been developed, look at how they are delivered to the client and upgrade operations, resources, and tech where needed.

    In some cases, you are legally required to undertake this exercise. But in all cases, it is important that you understand your business services and the needs of your clients and put sufficient resources in the right places of your delivery chain. 

    If you want to discuss this further, please contact me for a free talk.

     

    Reimagine Learning in the Face of Crisis

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    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • As organizations re-evaluate their priorities and shift to new ways of working, leaders and employees are challenged to navigate unchartered territory and to adjust quickly to ever-evolving priorities.
    • Learning how to perform effectively through the crisis and deliver on new priorities is crucial to the success of all employees and the organization.

    Our Advice

    Critical Insight

    The most successful organizations recognize that learning is critical to adjusting quickly and effectively to their new reality. This requires L&D to reimagine their approach to deliver learning that enables the organization’s immediate and evolving priorities.

    Impact and Result

    • L&D teams should focus on how to support employees and managers to develop the critical competencies they need to successfully perform through the crisis, enabling organizations to survive and thrive during and beyond the crisis.
    • Ensure learning needs align closely with evolving organizational priorities, collaborate cross-functionally, and curate content to provide the learning employees and leaders need most, when they need it.

    Reimagine Learning in the Face of Crisis Research & Tools

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

    1. Prioritize

    Involve key stakeholders, identify immediate priorities, and conduct high-level triage of L&D.

    • Reimagine Learning in the Face of Crisis Storyboard
    • Reimagine Learning in the Face of Crisis Workbook

    2. Reimagine

    Determine learning needs and ability to realistically deliver learning. Leverage existing or curate learning content that can support learning needs.

    3. Transform

    Identify technical requirements for the chosen delivery method and draft a four- to six-week action plan.

    • How to Curate Guide
    • Tips for Building an Online Learning Community
    • Ten Tips for Adapting In-Person Training During a Crisis
    • Tips for Remote Learning in the Face of Crisis
    [infographic]

    Integrate Threat Intelligence Into Your Security Operations

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    • Parent Category Name: Threat Intelligence & Incident Response
    • Parent Category Link: /threat-intelligence-incident-response
    • Organizations have limited visibility into their threat landscape, and as such are vulnerable to the latest attacks, hindering business practices, workflow, revenue generation, and damaging their public image.
    • Organizations are developing ad hoc intelligence capabilities that result in operational inefficiencies, the misalignment of resources, and the misuse of their security technology investments.
    • It is difficult to communicate the value of a threat intelligence solution when trying to secure organizational buy-in and the appropriate resourcing.
    • There is a vast array of “intelligence” in varying formats, often resulting in information overload.

    Our Advice

    Critical Insight

    1. Information alone is not actionable. A successful threat intelligence program contextualizes threat data, aligns intelligence with business objectives, and then builds processes to satisfy those objectives.
    2. Your security controls are diminishing in value (if they haven’t already). As technology in the industry evolves, threat actors will inevitably adopt new tools, tactics, and procedures; a threat intelligence program can provide relevant situational awareness to stay on top of the rapidly-evolving threat landscape.
    3. Your organization might not be the final target, but it could be a primary path for attackers. If you exist as a third-party partner to another organization, your responsibility in your technology ecosystem extends beyond your own product/service offerings. Threat intelligence provides visibility into the latest threats, which can help you avoid becoming a backdoor in the next big data breach.

    Impact and Result

    • Assess the needs and intelligence requirements of key stakeholders.
    • Garner organizational buy-in from senior management.
    • Identify organizational intelligence gaps and structure your efforts accordingly.
    • Understand the different collection solutions to identify which best supports your needs.
    • Optimize the analysis process by leveraging automation and industry best practices.
    • Establish a comprehensive threat knowledge portal.
    • Define critical threat escalation protocol.
    • Produce and share actionable intelligence with your constituency.
    • Create a deployment strategy to roll out the threat intelligence program.
    • Integrate threat intelligence within your security operations.

    Integrate Threat Intelligence Into Your Security Operations Research & Tools

    Start here – read the Executive Brief

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

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

    1. Plan for a threat intelligence program

    Assess current capabilities and define an ideal target state.

    • Integrate Threat Intelligence Into Your Security Operations – Phase 1: Plan for a Threat Intelligence Program
    • Security Pressure Posture Analysis Tool
    • Threat Intelligence Maturity Assessment Tool
    • Threat Intelligence Project Charter Template
    • Threat Intelligence RACI Tool
    • Threat Intelligence Management Plan Template
    • Threat Intelligence Policy Template

    2. Design an intelligence collection strategy

    Understand the different collection solutions to identify which best supports needs.

    • Integrate Threat Intelligence Into Your Security Operations – Phase 2: Design an Intelligence Collection Strategy
    • Threat Intelligence Prioritization Tool
    • Threat Intelligence RFP MSSP Template

    3. Optimize the intelligence analysis process

    Begin analyzing and acting on gathered intelligence.

    • Integrate Threat Intelligence Into Your Security Operations – Phase 3: Optimize the Intelligence Analysis Process
    • Threat Intelligence Malware Runbook Template

    4. Design a collaboration and feedback program

    Stand up an intelligence dissemination program.

    • Integrate Threat Intelligence Into Your Security Operations – Phase 4: Design a Collaboration and Feedback Program
    • Threat Intelligence Alert Template
    • Threat Intelligence Alert and Briefing Cadence Schedule Template
    [infographic]

    Ensure Cloud Security in IaaS, PaaS, and SaaS Environments

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    • Parent Category Name: Secure Cloud & Network Architecture
    • Parent Category Link: /secure-cloud-network-architecture
    • Security remains a large impediment to realizing cloud benefits. Numerous concerns still exist around the ability for data privacy, confidentiality, and integrity to be maintained in a cloud environment.
    • Even if adoption is agreed upon, it becomes hard to evaluate vendors that have strong security offerings and even harder to utilize security controls that are internally deployed in the cloud environment.

    Our Advice

    Critical Insight

    • The cloud can be secure despite unique security threats.
    • Securing a cloud environment is a balancing act of who is responsible for meeting specific security requirements.
    • Most security challenges and concerns can be minimized through our structured process (CAGI) of selecting a trusted cloud security provider (CSP) partner.

    Impact and Result

    • The business is adopting a cloud environment and it must be secured, which includes:
      • Ensuring business data cannot be leaked or stolen.
      • Maintaining privacy of data and other information.
      • Securing the network connection points.
    • Determine your balancing act between yourself and your CSP; through contractual and configuration requirements, determine what security requirements your CSP can meet and cover the rest through internal deployment.
    • This blueprint and associated tools are scalable for all types of organizations within various industry sectors.

    Ensure Cloud Security in IaaS, PaaS, and SaaS Environments Research & Tools

    Start here – read the Executive Brief

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

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

    1. Determine your cloud risk profile

    Determine your organization’s rationale for cloud adoption and what that means for your security obligations.

    • Ensure Cloud Security in IaaS, PaaS, and SaaS Environments – Phase 1: Determine Your Cloud Risk Profile
    • Secure Cloud Usage Policy

    2. Identify your cloud security requirements

    Use the Cloud Security CAGI Tool to perform four unique assessments that will be used to identify secure cloud vendors.

    • Ensure Cloud Security in IaaS, PaaS, and SaaS Environments – Phase 2: Identify Your Cloud Security Requirements
    • Cloud Security CAGI Tool

    3. Evaluate vendors from a security perspective

    Learn how to assess and communicate with cloud vendors with security in mind.

    • Ensure Cloud Security in IaaS, PaaS, and SaaS Environments – Phase 3: Evaluate Vendors From a Security Perspective
    • IaaS and PaaS Service Level Agreement Template
    • SaaS Service Level Agreement Template
    • Cloud Security Communication Deck

    4. Implement your secure cloud program

    Turn your security requirements into specific tasks and develop your implementation roadmap.

    • Ensure Cloud Security in IaaS, PaaS, and SaaS Environments – Phase 4: Implement Your Secure Cloud Program
    • Cloud Security Roadmap Tool

    5. Build a cloud security governance program

    Build the organizational structure of your cloud security governance program.

    • Ensure Cloud Security in IaaS, PaaS, and SaaS Environments – Phase 5: Build a Cloud Security Governance Program
    • Cloud Security Governance Program Template
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    Cost-Optimize Your Security Budget

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    • Parent Category Name: Security Strategy & Budgeting
    • Parent Category Link: /security-strategy-and-budgeting
    • The security budget has been slashed and the team needs to do more with less.
    • Mitigating risk is still the top priority, only now we need to reassess effectiveness and efficiency to ensure we are getting the greatest level of protection for the least amount of money.

    Our Advice

    Critical Insight

    A cost-optimized security budget is one that has the greatest impact on risk for the least amount of money spent.

    Impact and Result

    • Focus on business needs and related risks. Review the risk-reduction efficacy of your people, processes, and technology and justify what can be cut and what must stay.
    • Info-Tech will guide you through this process, and by the end of this blueprint you will have a cost-optimized security budget and an executive presentation to explain your revised spending.

    Cost-Optimize Your Security Budget Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should cost-optimize your security budget, 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. Cost-optimize your technology and managed services

    This phase will help you assess the efficacy of your current technology and service providers.

    • Threat and Risk Assessment Tool
    • In-House vs. Outsourcing Decision-Making Tool

    2. Cost-optimize your staffing

    This phase will help you assess if layoffs are necessary.

    • Security Employee Layoff Selection Tool

    3. Cost-optimize your security strategy

    This phase will help you revise the pending process-based initiatives in your security strategy.

    • Security Cost Optimization Workbook
    • Security Cost Optimization Executive Presentation
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    Pandemic Preparation – The People Playbook

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    • Parent Category Name: Lead
    • Parent Category Link: /lead
    • Keeping employees safe – limiting exposure of employees to the virus and supporting them in the event they become ill.
    • Reducing potential disruption to business operations through employee absenteeism and travel restrictions.

    Our Advice

    Critical Insight

    • Communication of facts and definitive action plans from credible leaders is the key to maintaining some stability during a time of uncertainty.
    • Remote work is no longer a remote possibility – implementing alternative temporary work arrangements that keep large groups of employees from congregating reduce risk of employee exposure and operational downtime.
    • Pandemic travel protocols are necessary to support staff and their continuation of work while traveling for business and/or if stuck in a high-risk, restricted area.

    Impact and Result

    • Assign accountability of key planning decisions to members of a pandemic response team.
    • Craft key messages in preparation for communicating to employees.
    • Cascade communications from credible sources in a way that will establish pandemic travel protocols.

    Pandemic Preparation – The People Playbook Research & Tools

    Start here. Read the Pandemic Preparation: The People Playbook

    Read our concise Playbook to find out how you can immediately prepare for the people side of pandemic planning.

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

    • Pandemic Preparation: The People Playbook
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    Cut Cost Through Effective IT Category Planning

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • IT departments typically approach sourcing a new vendor or negotiating a contract renewal as an ad hoc event.
    • There is a lack of understanding on how category planning governance can save money.
    • IT vendor “go to market” or sourcing activities are typically not planned and are a reaction to internal client demands or vendor contract expiration.

    Our Advice

    Critical Insight

    • Lack of knowledge of the benefits and features of category management, including the perception that the sourcing process takes too long, are two of the most common challenges that prevent IT from category planning.
    • Other challenges include the traditional view of contract renegotiation and vendor acquisition as a transactional event vs. an ongoing strategic process.
    • Finally, allocating resources and time to collect the data, vendor information, and marketing analysis prevents us from creating category plans.

    Impact and Result

    • An IT category plan establishes a consistent and proactive methodology or process to sourcing activities such as request for information (RFI), request for proposals, (RFPs), and direct negotiations with a specific vendor or“targeted negotiations” such as renewals.
    • The goal of an IT category plan is to leverage a strategic approach to vendor selection while identify cost optimizing opportunities that are aligned with IT strategy and budget objectives.

    Cut Cost Through Effective IT Category Planning Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create an IT category plan to reduce your IT cost, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

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

    1. Create an IT category plan

    Use our three-step approach of Organize, Design, and Execute an IT Category Plan to get the most out of your IT budget while proactively planning your vendor negotiations.

    • IT Category Plan
    • IT Category Plan Metrics
    • IT Category Plan Review Presentation
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