M&A Runbook for Infrastructure and Operations

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  • Parent Category Name: Strategy and Organizational Design
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  • I&O is often the last to be informed of an impending M&A deal.
  • The business doesn’t understand the necessary requirements or timeline for integration.
  • It’s hard to prioritize when you’re buried under a mountain of work.
  • Documentation may be lacking or nonexistent, and members of the target organization may be uncooperative.

Our Advice

Critical Insight

  • Manage expectations. The business often expects integration in days or weeks, not months or years. You need to set them straight.
  • Open your checkbook and prepare to hire. Integration will require a temporary increase in resources.
  • Tackle organizational and cultural change. People are harder to integrate than technology. Culture change is the hardest part, and the integration plan should address it.

Impact and Result

  • Tailor your approach based on the business objectives of the merger or acquisition.
  • Separate the must-haves from the nice-to-haves.
  • Ensure adequate personnel and budget.
  • Plan for the integration into normal operations.

M&A Runbook for Infrastructure and Operations Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how to partner with the business to conquer the challenges in your next merger or acquisition.

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

1. Establish goals

Partner with the business to determine goals and establish high-level scope.

  • M&A Runbook for Infrastructure and Operations – Phase 1: Establish Goals
  • I&O M&A Project Napkin

2. Conduct discovery

Find out what the target organization’s I&O looks like.

  • M&A Runbook for Infrastructure and Operations – Phase 2: Conduct Discovery
  • I&O M&A Discovery Letter Template
  • I&O M&A Discovery Template
  • I&O M&A Workbook
  • I&O M&A Risk Assessment Tool

3. Plan short-term integration

Build a plan to achieve a day 1 MVP.

  • M&A Runbook for Infrastructure and Operations – Phase 3: Plan Short-Term Integration
  • I&O M&A Short-Term Integration Capacity Assessment Tool

4. Map long-term integration

Chart a roadmap for long-term integration.

  • M&A Runbook for Infrastructure and Operations – Phase 4: Map Long-Term Integration
  • I&O M&A Long-Term Integration Portfolio Planning Tool
[infographic]

Workshop: M&A Runbook for Infrastructure and Operations

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

1 High-Level Scope

The Purpose

Establish goals and conduct discovery.

Key Benefits Achieved

Alignment with business goals

Documentation of target organization’s current state

Activities

0.1 Consult with stakeholders.

0.2 Establish M&A business goals.

0.3 Conduct target discovery.

0.4 Document own environment.

0.5 Clarify goals.

Outputs

Stakeholder communication plan

M&A business goals

I&O M&A Discovery Template

Current state of organization

2 Target Assessment

The Purpose

Assess risk and value of target organization.

Key Benefits Achieved

Accurate scope of I&O integration

Risk mitigation plans

Value realization strategies

Activities

1.1 Scope I&O M&A project.

1.2 Assess risks.

1.3 Assess value.

Outputs

I&O M&A Project Napkin

Risk assessment

Value assessment

3 Day 1 Integration Project Plan

The Purpose

Establish day 1 integration project plan.

Key Benefits Achieved

Smoother day 1 integration

Activities

2.1 Determine Day 1 minimum viable operating model post M&A.

2.2 Identify gaps.

2.3 Build day 1 project plan.

2.4 Estimate required resources.

Outputs

Day 1 project plan

4 Long-Term Project Plan

The Purpose

Draw long-term integration roadmap.

Key Benefits Achieved

Improved alignment with M&A goals

Greater realization of the deal’s value

Activities

3.1 Set long-term future state goals.

3.2 Create a long-term project plan.

3.3 Consult with business stakeholders on the long-term plan.

Outputs

Long-term integration project plan

5 Change Management and Continual Improvement

The Purpose

Prepare for organization and culture change.

Refine M&A I&O integration process.

Key Benefits Achieved

Smoother change management

Improved M&A integration process

Activities

4.1 Complete a change management plan.

4.2 Conduct a process post-mortem.

Outputs

Change management plan

Process improvements action items

Start Making Data-Driven People Decisions

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  • Parent Category Name: Leadership Development Programs
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  • Ninety-one percent of IT leaders believe that analytics is important for talent management but 59% use no workforce analytics at all, although those who use analytics are much more effective than those who don't.
  • The higher the level of analytics used, the higher the level of effectiveness of the department as a whole.

Our Advice

Critical Insight

  • You don't need advanced metrics and analytics to see a return on people data. Begin by getting a strong foundation in place and showing the ROI on a pilot project.
  • Complex analyses will never make up for inadequate data quality. Spend the time up front to audit and improve data quality if necessary, no matter which stage of analytics proficiency you are at.
  • Ensure you collect and analyze only data that is essential to your decision making. More is not better, and excess data can detract from the overall impact of analytics.

Impact and Result

  • Build a small-scale foundational pilot, which will allow you to demonstrate feasibility, refine your costs estimate, and show the ROI on people analytics for your budgeting meeting.
  • Drive organizational change incrementally by identifying and communicating with the stakeholders for your people analytics pilot.
  • Choose basic analytics suitable for organizations of all sizes and understand the building blocks of data quality to support more further analytics down the line.

Start Making Data-Driven People Decisions Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should strategically apply people analytics to your IT talent management.

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

1. Define the problem and apply the checklist

From choosing the right data for the right problem to evaluating your progress toward data-driven people decisions, follow these steps to build your foundation to people analytics.

  • Start Making Data-Driven People Decisions – Phase 1: Define the Problem and Apply the Checklist
  • People Analytics Strategy Template
  • Talent Metrics Library
[infographic]

IT Organizational Design

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  • Parent Category Name: People and Resources
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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)

 

The First 100 Days as CISO

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  • Parent Category Name: Security Strategy & Budgeting
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  • 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
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Accelerate Digital Transformation With a Digital Factory

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  • Parent Category Name: Innovation
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  • Organizational challenges are hampering digital transformation (DX) initiatives.
  • The organization’s existing digital factory is failing to deliver value.
  • Designing a successful digital factory is a difficult process.

Our Advice

Critical Insight

To remain competitive, enterprises must deliver products and services like a startup or a digital native enterprise. This requires enterprises to:

  • Understand how digital native enterprises are designed.
  • Understand the foundations of good design: purpose, organizational support, and leadership.
  • Understand the design of the operating model: structure and organization, management practices, culture, environment, teams, technology platforms, and meaningful metrics and KPIs.

Impact and Result

Organizations that implement this project will draw benefits in the following aspects:

  • Gain awareness and understanding of various aspects that hamper DX.
  • Set the right foundations by having clarity of purpose, alignment on organizational support, and the right leadership in place.
  • Design an optimal operating model by setting up the right organizational structures, management practices, lean and optimal governance, agile teams, and an environment that promotes productivity and wellbeing.
  • Finally, set the right measures and KPIs.

Accelerate Digital Transformation With a Digital Factory Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to understand the importance of a well-designed digital factory.

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

1. Build the case

Collect data and stats that will help build a narrative for digital factory.

  • Digital Factory Playbook

2. Lay the foundation

Discuss purpose, mission, organizational support, and leadership.

3. Design the operating model

Discuss organizational structure, management, culture, teams, environment, technology, and KPIs.

[infographic]

Workshop: Accelerate Digital Transformation With a Digital Factory

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

1 Build the case

The Purpose

Understand and gather data and stats for factors impacting digital transformation.

Develop a narrative for the digital factory.

Key Benefits Achieved

Identification of key pain points and data collected

Narrative to support the digital factory

Activities

1.1 Understand the importance and urgency of digital transformation (DX).

1.2 Collect data and stats on the progress of DX initiatives.

1.3 Identify the factors that hamper DX and tie them to data/stats.

1.4 Build the narrative for the digital factory (DF) using the data/stats.

Outputs

Identification of factors that hamper DX

Data and stats on progress of DX

Narrative for the digital factory

2 Lay the foundation

The Purpose

Discuss the factors that impact the success of establishing a digital factory.

Key Benefits Achieved

A solid understanding and awareness that successful digital factories have clarity of purpose, organizational support, and sound leadership.

Activities

2.1 Discuss

2.2 Discuss what organizational support the digital factory will require and align and commit to it.

2.3 Discuss reference models to understand the dynamics and the strategic investment.

2.4 Discuss leadership for the digital age.

Outputs

DF purpose and mission statements

Alignment and commitment on organizational support

Understanding of competitive dynamics and investment spread

Develop the profile of a digital leader

3 Design the operating model (part 1)

The Purpose

Understand the fundamentals of the operating model.

Understand the gaps and formulate the strategies.

Key Benefits Achieved

Design of structure and organization

Design of culture aligned with organizational goals

Management practices aligned with the goals of the digital factory

Activities

3.1 Discuss structure and organization and associated organizational pathologies, with focus on hierarchy and silos, size and complexity, and project-centered mindset.

3.2 Discuss the importance of culture and its impact on productivity and what shifts will be required.

3.3 Discuss management for the digital factory, with focus on governance, rewards and compensation, and talent management.

Outputs

Organizational design in the context of identified pathologies

Cultural design for the DF

Management practices and governance for the digital factory

Roles/responsibilities for governance

4 Design the operating model (part 2)

The Purpose

Understand the fundamentals of the operating model.

Understand the gaps and formulate the strategies.

Key Benefits Achieved

Discuss agile teams and the roles for DF

Environment design that supports productivity

Understanding of existing and new platforms

Activities

4.1 Discuss teams and various roles for the DF.

4.2 Discuss the impact of the environment on productivity and satisfaction and discuss design factors.

4.3 Discuss technology and tools, focusing on existing and future platforms, platform components, and organization.

4.4 Discuss design of meaningful metrics and KPIs.

Outputs

Roles for DF teams

Environment design factors

Platforms and technology components

Meaningful metrics and KPIs

Take the First Steps to Embrace Open-Source Software

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  • Parent Category Name: Development
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Your organization is looking to invest in new software or a tool to solve key business and IT problems. They see open source as a viable option given the advertised opportunities and the popularity of many open-source projects, but they have concerns:

  • Despite the longevity and broad adoption of open-source software, stakeholders are hesitant about its long-term viability and the costs of ongoing support.
  • A clear direction and strategy are needed to align the expected value of open source to your stakeholders’ priorities and gain the funding required to select, implement, and support open-source software.

Our Advice

Critical Insight

  • Position open source in the same light as commercial software. The continuous improvement and evolution of popular open-source software and communities have established a reputation for reliability in the industry.
  • Consider open source as another form of outsource development. Open source is externally developed software where the code is accessible and customizable. Code quality may not align to your organization’s standards, which can require extensive testing and optimization.
  • Treat open source as any internally developed solution. Configurations, integrations, customizations, and orchestrations of open-source software are often done at the code level. While some community support is provided, most of the heavy lifting is done by the applications team.

Impact and Result

  • Outline the value you expect to gain. Discuss current business and IT priorities, use cases, and value opportunities to determine what to expect from open-source versus commercial software.
  • Define your open-source selection criteria. Clarify the driving factors in your evaluation of open-source and commercial software using your existing IT procurement practices as a starting point.
  • Assess the readiness of your team. Clarify the roles, processes, and tools needed for the implementation, use, and maintenance of open-source software.

Take the First Steps to Embrace Open-Source Software Research & Tools

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

1. Take the First Steps to Embrace Open-Source Software Storyboard – A guide to learn the fit, value, and considerations of open-source software.

This research walks you through the misconceptions about open source, factors to consider in its selection, and initiatives to prepare your teams for its adoption.

  • Take the First Steps to Embrace Open-Source Software Storyboard

2. Open-Source Readiness Assessment – A tool to help you evaluate your readiness to embrace open-source software in your environment.

Use this tool to identify key gaps in the people, processes, and technologies needed to support open source in your organization. It also contains a canvas to facilitate discussions about expectations with your stakeholders and applications teams.

  • Open-Source Readiness Assessment
[infographic]

Further reading

Take the First Steps to Embrace Open-Source Software

Begin to understand what is required to embrace open-source software in your organization.

Analyst Perspective

With great empowerment comes great responsibilities.

Open-source software promotes enticing technology and functional opportunities to any organization looking to modernize without the headaches of traditional licensing. Many organizations see the value of open source in its ability to foster innovation, be flexible to various use cases and system configurations, and give complete control to the teams who are using and managing it.

However, open source is not free. While the software is freely and easily accessible, its use and sharing are bound by its licenses, and its implementation requires technical expertise and infrastructure investments. Your organization must be motivated and capable of taking on the various services traditionally provided and managed by the vendor.

Photo of Andrew Kum-Seun

Andrew Kum-Seun
Research Director,
Application Delivery and Application Management
Info-Tech Research Group

Executive Summary

Your Challenge

Your organization is looking to invest in new software or a tool to solve key business and IT problems. They see open source as a viable option because of the advertised opportunities and the popularity of many open-source projects.

Despite the longevity and the broad adoption of open-source software, stakeholders are hesitant about its adoption, its long-term viability, and the costs of ongoing support.

A clear direction and strategy is needed to align the expected value of open source to your stakeholders’ priorities and gain the funding required to select, implement, and support open-source software.

Common Obstacles

Your stakeholders’ fears, uncertainties, and doubts about open source may be driven by misinterpretation or outdated information. This hesitancy can persist despite some projects being active longer than their proprietary counterparts.

Certain software features, support capabilities, and costs are commonly overlooked when selecting open-source software because they are often assumed in the licensing and service costs of commercial software.

Open-source software is often technically complicated and requires specific skill sets and knowledge. Unfortunately, current software delivery capability gaps impede successful adoption and scaling of open-source software.

Info-Tech’s Approach

Outline the value you expect to gain. Discuss current business and IT priorities, use cases, and value opportunities to determine what to expect from open-source versus commercial software.

Define your open-source selection criteria. Clarify the driving factors in your evaluation of open-source and commercial software using your existing IT procurement practices as a starting point.

Assess the readiness of your team. Clarify the roles, processes, and tools needed for the implementation, use, and maintenance of open-source software.

Insight Summary

Overarching Info-Tech Insight

Open source is as much about an investment in people as it is about technology. It empowers applications teams to take greater control over their technology and customize it as they see fit. However, teams need the time and funding to conduct the necessary training, management, and ongoing community engagement that open-source software and its licenses require.

  • Position open source in the same light as commercial software.
    The continuous improvement and evolution of popular open-source software and communities have established a trusting and reliable reputation in the industry. Open-source software quality and community support can rival similar vendor capabilities given the community’s maturity and contributions in the technology.
  • Consider open source another form of outsource development.
    Open source is externally developed software where the code is accessible and customizable. Code quality may not align to your organization’s standards, which can require extensive testing and optimization. A thorough analysis of change logs, code repositories, contributors, and the community is recommended – much to the same degree as one would do with prospective outsourcing partners.
  • Treat open source as any internally developed solution.
    Configurations, integrations, customizations, and orchestrations of open-source software are often done at the code level. While some community support is provided, most of the heavy lifting is done by the applications team. Teams must be properly resourced, upskilled, and equipped to meet this requirement. Otherwise, third-party partners are needed.

What is open source?

According to Synopsys, “Open source software (OSS) is software that is distributed with its source code, making it available for use, modification, and distribution with its original rights. … Programmers who have access to source code can change a program by adding to it, changing it, or fixing parts of it that aren’t working properly. OSS typically includes a license that allows programmers to modify the software to best fit their needs and control how the software can be distributed.”

What are the popular use cases?

  1. Programming languages and frameworks
  2. Databases and data technologies
  3. Operating systems
  4. Git public repos
  5. Frameworks and tools for AI/ML/DL
  6. CI/CD tooling
  7. Cloud-related tools
  8. Security tools
  9. Container technology
  10. Networking

Source: OpenLogic, 2022

Common Attributes of All Open-Source Software

  • Publicly shared repository that anyone can access to use the solution and contribute changes to the design and functionality of the project.
  • A community that is an open forum to share ideas and solution enhancements, discuss project direction and vision, and seek support from peers.
  • Project governance that sets out guidelines, rules, and requirements to participate and contribute to the project.
  • Distribution license that defines the terms of how a solution can be used, assessed, modified, and distributed.

Take the first steps to embrace open-source software

Begin to understand what is required to embrace open-source software in your organization.

A diagram of open-source community.

State the Value of Open Source: Discuss current business and IT priorities, use cases, and value opportunities to determine what to expect from open-source versus commercial software.

Select Your Open-Source Software: Clarify the driving factors in your evaluation of open-source and commercial software using your existing IT procurement practices as a starting point.

Prepare for Open Source: Clarify the roles, processes, and tools needed for the implementation, use, and maintenance of open-source software.

Step 1.1: State the Value of Open Source

Diagram of step 1.1

Activities

1.1.1 Outline the value you expect to gain from open-source software

This step involves the following participants:

  • Applications team
  • Product owner

Outcomes of this step:

  • Value proposition for open source
  • Potential open-source use cases

Use a canvas to frame your open-source evaluation

A photo of open-source canvas

This canvas is intended to provide a single pane of glass to start collecting your thoughts and framing your future conversations on open-source software selection and adoption.

Record the results in the “Open-Source Canvas” tab in the Open-Source Readiness Assessment.

Open source presents unique software and tooling opportunities

Innovation

Many leading-edge and bleeding-edge technologies are collaborated and innovated in open-source projects, especially in areas that are beyond the vision and scope of vendor products and priorities.

Niche Solutions

Open-source projects are focused. They are designed and built to solve specific business and technology problems.

Flexible & Customizable

All aspects of the open-source software are customizable, including source code and integrations. They can be used to extend, complement, or replace internally developed code. Licenses define how open-source code should be and must be used, productized, and modified.

Brand & Recognition

Open-source communities encourage contribution and collaboration among their members to add functionality and improve quality and adoption.

Cost

Open-source software is accessible to everyone, free of charge. Communities do not need be consulted prior to acquisition, but the software’s use, configurations, and modifications may be restricted by its license.

However, myths continue to challenge adoption

  • Open source is less secure or poorer quality than proprietary solutions.
  • Open source is free from risk of intellectual property (IP) infringement.
  • Open source is cheaper than proprietary solutions.

What are the top perceived barriers to using enterprise open source?

  • Concerns about the level of support
  • Compatibility concerns
  • Concerns about inherent security of the code
  • Lack of internal skills to manage and support it

Source: Red Hat, 2022

2020 Security Priorities Report

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  • Parent Category Name: Security Strategy & Budgeting
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Use this deck to learn what projects security practitioners are prioritizing for 2020. Based on a survey of 460 IT security professionals, this report explains what you need to know about the top five priorities, including:

  • Signals and drivers
  • Benefits
  • Critical uncertainties
  • Case study
  • Implications

While the priorities should in no way be read as prescriptive, this research study provides a high-level guide to understand that priorities drive the initiatives, projects, and responsibilities that make up organizations' security strategies.

Our Advice

Critical Insight

There is always more to do, and if IT leaders are to grow with the business, provide meaningful value, and ascend the ladder to achieve true business partner and innovator status, aggressive prioritization is necessary. Clearly, security has become a priority across organizations, as security budgets have continued to increase over the course of 2019. 2020’s priorities highlight that data security has become the thread that runs through all other security priorities, as data is now the currency of the modern digital economy. As a result, data security has reshaped organizations’ priorities to ensure that data is always protected.

Impact and Result

Ultimately, understanding how changes in technology and patterns of work stand to impact the day-to-day lives of IT staff across seniority and industries will allow you to evaluate what your priorities should be for 2020. Ensure that you’re spending your time right. Use data to validate. Prioritize and implement.

2020 Security Priorities Report Research & Tools

Start here – read the Executive Brief

This storyboard will help you understand what projects security practitioners are prioritizing for 2020.

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

1. Data security

Data security often rubs against other organizational priorities like data quality, but organizations need to understand that the way they store, handle, and dispose of data is now under regulatory oversight.

  • 2020 Security Priorities Report – Priority 1: Data Security

2. Cloud security

Cloud security means that organizations can take advantage of automation tools not only for patching and patch management but also to secure code throughout the SDLC. It is clear that cloud will transform how security is performed.

  • 2020 Security Priorities Report – Priority 2: Cloud Security

3. Email security

Email security is critical, since email continues to be one of the top points of ingress for cyberattacks from ransomware to business email compromise.

  • 2020 Security Priorities Report – Priority 3: Email Security

4. Security risk management

Security risk management requires organizations to make decisions based on their individual risk tolerance on such things as machine learning and IoT devices.

  • 2020 Security Priorities Report – Priority 4: Security Risk Management

5. Security awareness and training

Human error continues to be a security issue. In 2020, organizations should tailor their security awareness and training to their people so that they are more secure not only at work but also in life.

  • 2020 Security Priorities Report – Priority 5: Security Awareness and Training
[infographic]

Reimagine Learning in the Face of Crisis

  • Buy Link or Shortcode: {j2store}601|cart{/j2store}
  • member rating overall impact (scale of 10): N/A
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  • Parent Category Name: Train & Develop
  • Parent Category Link: /train-and-develop
  • 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]

Build an Application Department Strategy

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  • member rating overall impact (scale of 10): 9.2/10 Overall Impact
  • member rating average dollars saved: $220,866 Average $ Saved
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  • Parent Category Name: Architecture & Strategy
  • Parent Category Link: /architecture-and-strategy
  • Application delivery has modernized. There are increasing expectations on departments to deliver on organizational and product objectives with increasing velocity.
  • Application departments produce many diverse, divergent products, applications, and services with expectations of frequent updates and changes based on rapidly changing landscapes

Our Advice

Critical Insight

  • There is no such thing as a universal “applications department.” Unlike other domains of IT, there are no widely accepted frameworks that clearly outline universal best practices of application delivery and management.
  • Different software needs and delivery orientations demand a tailored structure and set of processes, especially when managing a mixed portfolio or multiple delivery methods.

Impact and Result

Understand what your department’s purpose is through articulating its strategy in three steps:

  • Determining your application department’s values, principles, and orientation.
  • Laying out the goals, objectives, metrics, and priorities of the department.
  • Building a communication plan to communicate your overall department strategy.

Build an Application Department Strategy Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should build an application department 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. Take stock of who you are

Consider and record your department’s values, principles, orientation, and capabilities.

  • Build an Application Department Strategy – Phase 1: Take Stock of Who You Are
  • Application Department Strategy Supporting Workbook

2. Articulate your strategy

Define your department’s strategy through your understanding of your department combined with everything that you do and are working to do.

  • Build an Application Department Strategy – Phase 2: Articulate Your Strategy
  • Application Department Strategy Template

3. Communicate your strategy

Communicate your department’s strategy to your key stakeholders.

  • Build an Application Department Strategy – Phase 3: Communicate Your Strategy

Infographic

Workshop: Build an Application Department 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 Take Stock of Who You Are

The Purpose

Understand what makes up your application department beyond the applications and services provided.

Key Benefits Achieved

Articulating your guiding principles, values, capabilities, and orientation provides a foundation for expressing your department strategy.

Activities

1.1 Identify your team’s values and guiding principles.

1.2 Define your department’s orientation.

Outputs

A summary of your department’s values and guiding principles

A clear view of your department’s orientation and supporting capabilities

2 Articulate Your Strategy

The Purpose

Lay out all the details that make up your application department strategy.

Key Benefits Achieved

A completed application department strategy canvas containing everything you need to communicate your strategy.

Activities

2.1 Write your application department vision statement.

2.2 Define your application department goals and metrics.

2.3 Specify your department capabilities and orientation.

2.4 Prioritize what is most important to your department.

Outputs

Your department vision

Your department’s goals and metrics that contribute to achieving your department’s vision

Your department’s capabilities and orientation

A prioritized roadmap for your department

3 Communicate Your Strategy

The Purpose

Lay out your strategy’s communication plan.

Key Benefits Achieved

Your application department strategy presentation ready to be presented to your stakeholders.

Activities

3.1 Identify your stakeholders.

3.2 Develop a communication plan.

3.3 Wrap-up and next steps

Outputs

List of prioritized stakeholders you want to communicate with

A plan for what to communicate to each stakeholder

Communication is only the first step – what comes next?

Drive Business Value With Off-the-Shelf AI

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  • Parent Category Name: Business Intelligence Strategy
  • Parent Category Link: /business-intelligence-strategy
  • Understanding the impact of the machine learning/AI component that is built into most of the enterprise products and tools and its role in the implementation of the solution.
  • Understanding the most important aspects that the organization needs to consider while planning the implementation of the AI-powered product.

Our Advice

Critical Insight

  • Organizations are faced with multiple challenges trying to adopt AI solutions. Challenges include data issues, ethics and compliance considerations, business process challenges, and misaligned leadership goals.
  • When choosing the right product to meet business needs, organizations need to know what questions to ask vendors to ensure they fully understand the implications of buying an AI/ML product.
  • To guarantee the success of your off-the-shelf AI implementation and ensure it delivers value, you must start with a clear definition of the business case and an understanding of your data.

Impact and Result

To guarantee success of the off-the-shelf AI implementation and deliver value, in addition to formulating a clear definition of the business case and understanding of data, organizations should also:

  • Know what questions to ask vendors while evaluating AI-powered products.
  • Measure the impact of the project on business and IT processes.

Drive Business Value With Off-the-Shelf AI Research & Tools

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

1. Drive Business Value With Off-the-Shelf AI Deck – A step-by-step approach that will help guarantee the success of your Off-the-Shelf AI implementation and ensure it delivers business value

Use this practical and actionable framework that will guide you through the planning of your Off-the-Shelf AI product implementation.

  • Drive Business Value With Off-the-Shelf AI Storyboard

2. Off-the-Shelf AI Analysis – A tool that will guide the analysis and planning of the implementation

Use this analysis tool to ensure the success of the implementation.

  • Off-the-Shelf AI Analysis

Infographic

Further reading

Drive Business Value With Off-the-Shelf AI

A practical guide to ensure return on your Off-the-Shelf AI investment

Executive Summary

Your Challenge
  • Understanding the impact of the machine learning/AI component that is built into most of the enterprise products and tools and its role in the implementation of the solution.
  • What are the most important aspects that organizations needs to consider while planning the implementation of the AI-powered product?
Common Obstacles
  • Organizations are faced with multiple challenges trying to adopt an AI solution. Challenges include data issues, ethics and compliance considerations, business process challenges, and misaligned leadership goals.
  • When choosing the right product to meet business needs, organizations need to know what questions to ask vendors to ensure they fully understand the implications of buying an AI/ML product.
Info-Tech’s Approach

Info-Tech’s approach includes a framework that will guide organizations through the process of the Off-the-Shelf AI product selection.

To guarantee success of the Off-the-Shelf AI implementation and deliver value, organization should start with clear definition of the business case and an understanding of data.

Other steps include:

  • Knowing what questions to ask vendors to evaluate AI-powered products.
  • Measuring the impact of the project on your business and IT processes.
  • Assessing impact on the organization and ensure team readiness.

Info-Tech Insight

To guarantee the success of your Off-the-Shelf AI implementation and ensure it delivers value, you must start with a clear definition of the business case and an understanding of your data.

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

Getting value out of AI and machine learning investments

92.1%

of companies say they are achieving returns on their data and AI investments

91.7%

said they were increasing investments in data and AI

26.0%

of companies have AI systems in widespread production
However, CIO Magazine identified nine main hurdles to AI adoption based on the survey results:
  • Data issues
  • Business process challenges
  • Implementation challenges and skill shortages
  • Costs of tools and development
  • Misaligned leadership goals
  • Measuring and proving business value
  • Legal and regulatory risks
  • Cybersecurity
  • Ethics
  • (Source: CIO, 2019)
“Data and AI initiatives are becoming well established, investments are paying off, and companies are getting more economic value from AI.” (Source: NewVantage, 2022.)

67% of companies are currently using machine learning, and 97% are using or planning to use it in the next year.” (Source: Deloitte, 2020)

AI vs. ML

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.

Artificial intelligence is a combination of technologies and can include machine learning. AI systems perform tasks mimicking human intelligence such as learning from experience and problem solving. Most importantly, AI is making its own decisions without human intervention.

The AI system can make assumptions, test these assumptions, and learn from the results.

(Level of decision making required increases from left to right)
Statistical Reasoning
Infer relationships between variables

Statistical models are designed to find relationships between variables and the significance of those relationships.

Machine Learning:
Making accurate predictions

Machine learning is a subset of AI that discovers patterns from data without being explicitly programmed to do so.

Artificial Intelligence
Dynamic adaptation to novelty

AI systems choose the optimal combination of methods to solve a problem. They make assumptions, reassess the model, and reevaluate the data.

“Machine learning is the study of computer algorithms that improve automatically through experience.” (Tom Mitchell, 1997)

“At its simplest form, artificial intelligence is a field, which combines computer science and robust datasets, to enable problem-solving.” (IBM, “What is artificial intelligence?”)

Types of Off-the-Shelf AI products and solutions

ML/AI-Powered Products Off-the-Shelf Pre-built and Pre-trained AI/ML Models
  • AI/ML capabilities built into the product and might require training as part of the implementation.
  • Off-the-Shelf ML/AI Models, pre-built, pre-trained, and pre-optimized for a particular task. For example, language models or image recognition models that can be used to speed up and simplify ML/AI systems development.
Examples of OTS tools/products: Examples of OTS models:

The data inputs for these models are defined, the developer has to conform to the provided schema, and the data outputs are usually fixed due to the particular task the OTS model is built to solve.

Insight summary

Overarching insight:

To guarantee the success of your Off-the-Shelf AI implementation and ensure it delivers value, you must start with a clear definition of the business case and an understanding of your data.

Business Goals

Question the value that AI adds to the tool you are evaluating. Don’t go after the tool simply because it has an AI label attached to it. AI/ML capabilities might add little value but increase implementation complexity. Define the problem you are solving and document business requirements for the tool or a model.

Data

Know your data. Determine data requirements to:

  • Train the model during the implementation and development.
  • Run the model in production.

People/Skills

Define the skills required for the implementation and assemble the team that will support the project from requirements to deployment and support, through its entire lifecycle. Don’t forget about production support and maintenance.

Choosing an AI-Powered Tool

No need to reinvent the wheel and build a product you can buy, but be prepared to work around tool limitations, and make sure you understand the data and the model the tool is built on.

Choosing an AI/ML Model

Using Off-the-Shelf-AI models enables an agile approach to system development. Faster POC and validation of ideas and approaches, but the model might not be customizable for your requirements.

Guaranteeing Off-the-Shelf AI Implementation Success

Info-Tech Insight

To guarantee the success of your Off-the-Shelf AI implementation and ensure it delivers value, you must start with a clear definition of the business case and an understanding of your data.

Why do you need AI in your toolset?
Business Goals

Clearly defined problem statement and business requirements for the tool or a model will help you select the right solution that will deliver business value even if it does not have all the latest bells and whistles.

Small chevron pointing right.
Do you know the data required for implementation?
Data

Expected business outcome defines data requirements for implementation. Do you have the right data required to train and run the model?

Large chevron pointing right.
Is your organization ready for AI?
People/Team/ Skills

New skills and expertise are required through all phases of the implementation: design, build, deployment, support, and maintenance, as well as post-production support, scaling, and adoption.

Data Architecture/ Infrastructure

New tool or model will impact your cloud and integration strategy. It will have to integrate with the existing infrastructure, in the cloud or on prem.

Large chevron pointing right.
What questions do you need to ask when choosing the solution?
Product/ Tool or Model Selection

Do you know what model powers the AI tool? What data was used to train the tool and what data is required to run it? Ask the right questions.

Small chevron pointing right.
Are you measuring impact on your processes?
Business and IT Processes

Business processes need to be defined or updated to incorporate the output of the tool back into the business processes to deliver value.

IT governance and support processes need to accommodate the new AI-powered tool.

Small chevron pointing right.
Realize and measure business value of your AI investment
Value

Do you have a clear understanding of the value that AI will bring to your organization?Optimization?Increased revenue?Operational efficiency?

Introduction of Off-the-Shelf AI Requires a Strategic Approach

Business Goals and Value Data People/Team/ Skills Infrastructure Business and IT Processes
AI/ML–powered tools
  • Define a business problem that can be solved with either an AI-powered tool or an AI/ML pre-built model that will become part of the solution.
  • Define expectations and assumptions around the value that AI can bring.
  • Document business requirements for the tool or model.
  • Define the scope for a prototype or POC.
  • Define data requirements.
  • Define data required for implementation.
  • Determine if the required data can be acquired or captured/generated.
  • Document internal and external sources of data.
  • Validate data quality (define requirements and criteria for data quality).
  • Define where and how the data is stored and will be stored. Does it have to be moved or consolidated?
  • Define all stakeholders involved in the implementation and support.
  • Define skills and expertise required through all phases of the implementation: design, build, deployment, support, and maintenance.
  • Define skills and expertise required to grow AI practice and achieve the next level of adoption, scaling, and development of the tool or model POC.
  • Define infrastructure requirements for either Cloud, Software-as-a-Service, or on-prem deployment of a tool or model.
  • Define how the tool is integrated with existing systems and into existing infrastructure.
  • Determine the cost to deploy and run the tool/model.
  • Define processes that need to be updated to accommodate new functionality.
  • Define how the outcome of the tool or a model (e.g. predictions) are incorporated back into the business processes.
  • Define new business and IT processes that need to be defined around the tool (e.g. chatbot maintenance; analysis of the data generated by the tool).
Off-the-shelf AI/ML pre-built models
  • Define the business metrics and KPIs to measure success of the implementation against.
  • Determine if there are requirements for a specific data format required for the tool or a model.
  • Determine if there is a need to classify/label the data (supervised learning).
  • Define privacy and security requirements.
  • Define requirements for employee training. This can be vendor training for a tool or platform training in the case of a pre-built model or service.
  • Define if ML/AI expertise is required.
  • Is the organization ready for ML/AI? Conduct an AI literacy survey and understand team’s concerns, fears, and misconceptions and address them.
  • Define requirements for:
    • Data migration.
    • Security.
    • AI/ML pipeline deployment and maintenance.
  • Define requirements for operation and maintenance of the tool or model.
  • Confirm infrastructure readiness.
  • How AI and its output will be used across the organization.

Define Business Goals and Objectives

Why do you need AI in your toolset? What value will AI deliver? Have a clear understanding of business benefits and the value AI delivers through the tool.

  • Define a business problem that can be solved with either an AI-powered tool or AI/ML pre-built model.
  • Define expectations and assumptions around the value that AI can bring.
  • Document business requirements for a tool or model.
  • Start with the POC or a prototype to test assumptions, architecture, and components of the solution.
  • Define business metrics and KPIs to measure success of the implementation.

Info-Tech Insight

Question the value that AI adds to the tool you are evaluating. Don’t go after the tool simply because it has an AI label attached to it. AI/ML capabilities might add little value but increase implementation complexity. Define the problem you are solving and document business requirements for the tool or a model.

Venn diagram of 'Applied Artificial Intelligence (AAI)' with a larger circle at the top, 'Machine Learning (ML)', and three smaller ovals intersecting, 'Computer Vision', 'Natural Language Processing (NLP)', and 'Robotic Process Automation (RPA)'.

AAI solutions and technologies are helping organizations make faster decisions and predict future outcomes such as:

  • Business process automation
  • Intelligent integration
  • Intelligent insights
  • Operational efficiency improvement
  • Increase revenue
  • Improvement of existing products and services
  • Product and process innovation

1. Use Info-Tech’s Off-the-Shelf AI Analysis Tool to define business drivers and document business requirements

2-3 hours
Screenshot of the Off-the-Shelf AI Analysis Tool's Business Drivers tab, a table with columns 'AI/ML Tool or Model', 'Use Case', 'Business problem / goal for AI/ML use case', 'Description', 'Business Owner (Primary Stakeholder)', 'Priority', 'Stakeholder Groups Impacted', 'Requirements Defined? Yes/No', 'Related Data Domains', and 'KPIs'. Use the Business Drivers tab to document:
  • Business objectives of the initiative that might drive the AI/ML use case.
  • The business owner or primary stakeholder who will help to define business value and requirements.
  • All stakeholders who will be involved or impacted.
  • KPIs that will be used to assess the success of the POC.
  • Data required for the implementation.
  • Use the Business Requirements tab to document high-level requirements for a tool or model.
  • These requirements will be used while defining criteria for a tool selection and to validate if the tool or model meets your business goals.
  • You can use either traditional BRD format or a user story to document requirements.
Screenshot of the Off-the-Shelf AI Analysis Tool's Business Requirements tab, a table with columns 'Requirement ID', 'Requirement Description / user story', 'Requirement Category', 'Stakeholder / User Role', 'Requirement Priority', and 'Complexity (point estimates)'.

Download the Off-the-Shelf AI Analysis Tool

1. Define business drivers and document business requirements

Input

  • Strategic plan of the organization
  • Data strategy that defines target data capabilities required to support enterprise strategic goals
  • Roadmap of business and data initiatives to support target state of data capabilities

Output

  • Prioritized list of business use cases where an AI-powered tool or AI/ML can deliver business value
  • List of high-level requirements for the selected use case

Materials

  • Whiteboard/Flip Charts
  • Off-the-Shelf-AI Analysis Tool, “Business Drivers” and “Business Requirements” tabs

Participants

  • CIO
  • Senior business and IT stakeholders
  • Data owner(s)
  • Data steward(s)
  • Enterprise Architect
  • Data Architect
  • Data scientist/Data analyst

Understand data required for implementation

Do you have the right data to implement and run the AI-powered tool or AI/ML model?

Info-Tech Insight

Know your data. Determine data requirements to:

  • Train the model during the implementation and development, and
  • Run the model in production
AvailabilityArrow pointing rightQualityArrow pointing rightPreparationArrow pointing rightBias, Privacy, SecurityArrow pointing rightData Architecture
  • Define what data is required for implementation, e.g. customer data, financial data, product sentiment.
  • If the data is not available, can it be acquired, gathered, or generated?
  • Define the volume of data required for implementation and production.
  • If the model has to be trained, do you have the data required for training (e.g. dictionary of terms)? Can it be created, gathered, or acquired?
  • Document internal and external sources of data.
  • Evaluate data quality for all data sources based on the requirements and criteria defined in the previous step.
  • For datasets with data quality issues, determine if the data issues can be resolved (e.g. missing values are inferred). If not, can this issue be resolved by using other data sources?
  • Engage a Data Governance organization to address any data quality concerns.
  • Determine if there are requirements for a specific data format required for the tool or model.
  • Determine if there is a need to classify/label or tag the data. What are the metadata requirements?
  • Define whether or not the implementation team needs to aggregate or transform the data before it can be used.
  • Define privacy requirements, as these might affect the availability of the data for ML/AI.
  • Define data bias concerns and considerations. Do you have datasheets for datasets that will be used in this project? What datasets cannot be used to prevent bias?
  • What are the security requirements and how will they affect data storage, product selection, and infrastructure requirements for the tool and overall solution?
  • Define where and how the data is currently stored and will be stored.
  • Does it have to be migrated or consolidated? Does it have to be moved to the cloud or between systems?
  • Is a data lake or data warehouse a requirement for this implementation as defined by the solution architecture?

2. Use Info-Tech’s Off-the-Shelf AI Analysis Tool to document data requirements

2-3 hours

Use the Data tab to document the following for each data source or dataset:
  • Data Domain – e.g. Customer data
  • Data Concept – e.g. Customer
  • Data Internally Accessible – Identify datasets that are required for the implementation even if the data might not be available internally. Work on determining if the data ca be acquired externally or collected internally.
  • Source System – define the primary source system for the data, e.g. Salesforce
  • Target System (if applicable) – Define if the data needs to be migrated/transferred. For example, you might use a datalake or data warehouse for the AI/ML solution or migrate data to the cloud.
  • Classification/Taxonomy/Ontology
  • Data Steward
  • Data Owner
  • Data Quality – Data quality indicator
  • Refresh Rate – Frequency of data refresh. Indicate if the data can be accessed in real time or near-real time

Screenshot of the Off-the-Shelf AI Analysis Tool's Data tab, a spreadsheet table with the columns listed to the left and below.
  • Retention – Retention policy requirements
  • Compliance Requirements – Define if data has to comply with any of the regulatory requirements, e.g. GDPR
  • Privacy, Bias, and Ethics Considerations – Privacy Act, PIPEDA, etc. Identify if the dataset contains sensitive information that should be excluded from the model, such as gender, age, race etc. Indicate fairness metrics, if applicable.

Download the Off-the-Shelf AI Analysis Tool

2. Document data requirements

Input

  • Documented business use cases from Step 1.
  • High-level business requirements from Step 1.
  • Data catalog, data dictionaries, business glossary
  • Data flows and data architecture

Output

  • High-level data requirements
  • List of data sources and datasets that can be used for the implementation
  • Datasets that need to be collected or acquired externally

Materials

  • Whiteboard/Flip Charts
  • Off-the-Shelf AI Analysis Tool, “Data” tab

Participants

  • CIO
  • Business and IT stakeholders
  • Data owner(s)
  • Data steward(s)
  • Enterprise Architect
  • Data Architect
  • Data scientist/Data analyst

Is Your Organization Ready for AI?

Assess organizational readiness and define stakeholders impacted by the implementation. Build the team with the right skillset to drive the solution.

  • Implementation of the AI/ML-powered Off-the-Shelf Tool or an AI/ML model will require a team with a combination of skills through all phases of the project, from design of the solution to build, production, deployment, and support.
  • Document the skillsets required and determine the skills gap. Before you start hiring, depending on the role, you might find talent within the organization to join the implementation team with little to no training.
  • AI/ML resources that may be needed on your team driving AI implementation (you might consider bringing part-time resources to fill the gaps or use vendor developers) are:
    • Data Scientist
    • Machine Learning Engineer
    • Data Engineer
    • Data Architect
    • AI/ML Ops engineer
  • Define training requirements. Consider vendor training for a tool or platform.
  • Plan for future scaling and the growing of the solution and AI practice. Assess the need to apply AI in other business areas. Work with the team to analyze use cases and prioritize AI initiatives. As the practice grows, grow your team expertise.
  • Identify the stakeholders who will be affected by the AI implementation.
  • Work with them to understand and address any concerns, fears, or misconceptions around the role of AI and the consequences of bringing AI into the organization.
  • Develop a communication and change management plan to educate everyone within the organization on the application and benefits of using AI and machine learning.

Info-Tech Insight:

Define the skills required for the implementation and assemble the team that will support the project through its entire lifecycle. Don’t forget about production, support, and maintenance.

3. Build your implementation team

1-2 hours

Input: Solution conceptual design, Current resource availability

Output: Roles required for the implementation of the solution, Resources gap analysis, Training and hiring plan

Materials: Whiteboard/Flip charts, Off-the-Shelf AI Analysis Tool, “People and Team” tab

Participants: Project lead, HR, Enterprise Architect

  1. Review your solution conceptual design and define implementation team roles.
  2. Document requirements for each role.
  3. Review current org chart and job descriptions and identify skillset gaps. Draft an action plan to fill in the roles.
  4. Use Info-Tech’s Off-the-Shelf AI Analysis Tool's People and Team tab to document team roles for the entire implementation, including design, build/implement, deployment, support and maintenance, and future development.

Screenshot of the Off-the-Shelf AI Analysis Tool's People and Team tab, a table with columns 'Design', 'Implement', 'Deployment', 'Support and Maintenance', and 'Future Development'.

Download the Off-the-Shelf AI Analysis Tool

Cloud, SaaS or On Prem – what are my options and what is the impact?

Depending on the architecture of the solution, define the impact on the current infrastructure, including system integration, AI/ML pipeline deployment, maintenance, and data storage

  • Data Architecture: use the current data architecture to design the architecture for an AI-powered solution. Assess changes to the data architecture with the introduction of a new tool to make sure it is scalable enough to support the change.
  • Define infrastructure requirements for either Cloud, Software-as-a-Service, or on-prem deployment of a tool or model.
  • Define how the tool will be integrated with existing systems and into existing infrastructure.
  • Define requirements for:
    • Data migration and data storage
    • Security
    • AI/ML pipeline deployment, production monitoring, and maintenance
  • Define requirements for operation and maintenance of the tool or model.
  • Work with your infrastructure architect and vendor to determine the cost of deploying and running the tool/model.
  • Make a decision on the preferred architecture of the system and confirm infrastructure readiness.

Download the Create an Architecture for AI blueprint

4. Use Info-Tech’s Off-the-Shelf AI Analysis Tool to document infrastructure decisions

2-3 hours

Input: Solution conceptual design

Output: Infrastructure requirements, Infrastructure readiness assessment

Materials: Whiteboard/Flip charts, Off-the-Shelf AI Analysis Tool, “Infrastructure” tab

Participants: Infrastructure Architect, Solution Architect, Enterprise Architect, Data Architect, ML/AI Ops Engineer

  1. Work with Infrastructure, Data, Solution, and Enterprise Architects to define your conceptual solution architecture.
  2. Define integration and storage requirements.
  3. Document security requirements for the solution in general and the data specifically.
  4. Define MLOps requirements and tools required for ML/AI pipeline deployment and production monitoring.
  5. Use Info-Tech’s Off-the-Shelf AI Analysis Tool's Infrastructure tab to document requirements and decisions around Data and Infrastructure Architecture.

Screenshot of the Off-the-Shelf AI Analysis Tool's Infrastructure tab, a table with columns 'Cloud, SaaS or On-Prem', 'Data Migration Requirements', 'Data Storage Requirements', 'Security Requirements', 'Integrations Required', and 'AI/ML Pipeline Deployment and Maintenance Requirements'.

Download the Off-the-Shelf AI Analysis Tool

What questions do you need to ask vendors when choosing the solution?

Take advantage of Info-Tech’s Rapid Application Selection Framework (RASF) to guide tool selection, but ask vendors the right questions to understand implications of having AI/ML built into the tool or a model

Data Model Implementation and Integration Deployment Security and Compliance
  • What data (attributes) were used to train the model?
  • Do you have datasheets for the data used?
  • How was data bias mitigated?
  • What are the data labeling/classification requirements for training the model?
  • What data is required for production? E.g. volume; type of data, etc.
  • Were there any open-source libraries used in the model? If yes, how were vulnerabilities and security concerns addressed?
  • What algorithms are implemented in the tool/model?
  • Can model parameters be configured?
  • What is model accuracy?
  • Level of customization required for the implementation to meet our requirements.
  • Does the model require training? If yes, can you provide details? Can you estimate the effort required?
  • Integration capabilities and requirements.
  • Data migration requirements for tool operation and development.
  • Administrator console – is this functionality available?
  • Implementation timeframe.
  • Is the model or tool deployable on premises or in the cloud? Do you support hybrid cloud and multi-cloud deployment?
  • What cloud platforms are your product/model integrated with (AWS, Azure, GCP)?
  • What are the infrastructure requirements?
  • Is the model containerized/ scalable?
  • What product support and product updates are available?
  • Regulatory compliance (GDPR, PIPEDA, HIPAA, PCI DSS, CCPA, SOX, etc.)?
  • How are data security risks addressed?

Use Info-Tech’s Off-the-Shelf AI Analysis Tool, “Vendor Questionnaire” tab to track vendor responses to these questions.

Are you measuring impact on your processes?

Make sure that you understand the impact of the new technology on the existing business and IT processes.

And make sure your business processes are ready to take advantage of the benefits and new capabilities enabled by AI/ML.

Process automation, optimization, and improvement enabled by the technology and AI/ML-powered tools allow organizations to reduce manual work, streamline existing business processes, improve customer satisfaction, and get critical insights to assist decision making.

To take full advantage of the benefits and new capabilities enabled by the technology, make sure that business and IT processes reflect these changes:

  • Processes that need to be updated.
  • How the outcome of the tool or a model (e.g. predictions) is incorporated into the existing business processes and the processes that will monitor the accuracy of the outcome and monitor performance of the tool or model.
  • New business and IT processes that need to be defined for the tool (e.g. chatbot maintenance, analysis of the data generated by the tool, etc.).

5. Document the Impact on Business and IT Processes

2-3 hours

Input: Solution design, Existing business and IT processes

Output: Documented updates to the existing processes, Documented new business and IT processes

Materials: Whiteboard/Flip charts, Off-the-Shelf AI Analysis Tool, “Business and IT Processes” tab

Participants: Project lead, Business stakeholders, Business analyst

  1. Review current business processes affected by the implementation of the AI/ML- powered tool or model. Define the changes that need to be made. The changes might include simplification of the process due to automation of some of the steps. Some processes will need to be redesigned and some processes might become obsolete.
  2. Document high-level steps for any new processes that need to be defined around the AI/ML-powered tool. An example of such a process would be defining new IT and business processes to support a new chatbot.
  3. Use Info-Tech’s Off-the-Shelf AI Analysis Tool's Business and IT Processes tab, to document process changes.

Screenshot of the Off-the-Shelf AI Analysis Tool's Business and IT Processes tab, a table with columns 'Existing business process affected', 'New business process', 'Stakeholders involved', 'Changes to be made', and 'New Process High-Level Steps'.

Download the Off-the-Shelf AI Analysis Tool

AI-powered Tools – Considerations

PROS:
  • Enhanced functionality, allows the power of AI without specialized skills (e.g., Mathematica – recognizing patterns in data).
  • Might be a cheaper option compared to building a solution in-house (chatbot, for ex.).

Info-Tech Insight:

No need to reinvent the wheel and build the product you can buy, but be prepared to work around tool limitations, and make sure you understand the data and the model the tool is built on.

CONS:
  • Dependency on the service provider.
  • The tool might not meet all the business requirements without customization.
  • Bias can be built into the tool:
    • Work with the vendor to understand what data was used to train the model.
    • From the perspective of ethics and bias, learn what model is implemented in the tool and what data attributes the model uses.

Pre-built/pre-trained models – what to keep in mind when choosing

PROS:
  • Lower cost and less time to development compared to creating and training models from scratch (e.g. using image recognition models or pre-trained language models like BERT).
  • If the pre-trained and optimized model perfectly fits your needs, the model accuracy might be high and sufficient for your scenario.
  • Off-the-Shelf AI models are useful for creating prototypes or POCs, for testing a hypothesis, and for validating ideas and requirements.
  • Usage of Off-the-Shelf models shortens the development cycle and reduces investment risks.
  • Language models are particularly useful if you don’t have data to train your own model (a “small data” scenario).
  • Infrastructure and model training cost reduction.
CONS:
  • Might be a challenge to deploy and maintain the system in production.
  • Lack of flexibility: you might not be able to configure input or output parameters to your requirements. For example, a pre-built sentiment analysis model might return four values (“positive,” “negative,” “neutral,” and “mixed”), but your solution will require only two or three values.
  • Might be a challenge to comply with security and privacy requirements.
  • Compliance with privacy and fairness requirements and considerations: what data was used to pretrain the model?
  • If open-source libraries were used to create the model, how will vulnerabilities, risks, and security concerns be addressed?

Info-Tech Insight:

Using Off-the-Shelf AI models enables an agile approach to system development – faster POC and validation of ideas and approaches, but the model might not be customizable for your requirements.

Metrics

Metrics and KPIs for this project will depend on the business goals and objectives that you will identify in Step 1 of the tool selection process.

Metrics might include:

  • Reduction of time spent on a specific business process. If the tool is used to automate certain steps of a business process, this metric will measure how much time was saved, in minutes/hours, compared to the process time before the introduction of the tool.
  • Accuracy of prediction. This metric would measure the accuracy of estimations or predictions compared to the same estimations done before the implementation of the tool. It can be measured by generating the same prediction or estimation using the AI-powered tool or using any methods used before the introduction of the tool and comparing the results.
  • Accuracy of the search results. If the AI-powered tool is a search engine, compare a) how much time it would take a user to find an article or a piece of content they were searching for using new tool vs. previous techniques, b) how many steps it took the user to locate the required article in the search results, and c) the location of the correct piece of content in the search result list (at the top of the search result list or on the tenth page).
  • Time spent on manual tasks and activities. This metric will measure how much time, in minutes/hours, is spent by the employees or users on manual tasks if the tool automates some of these tasks.
  • Reduction of business process steps (if the steps are being automated). To derive this metric, create a map of the business process before the introduction of the AI-powered tool and after, and determine if the tool helped to simplify the process by reducing the number of process steps.

Bibliography

Adryan, Boris. “Is it all machine learning?” Badryan, Oct. 20, 2015. Accessed Feb. 2022.

“AI-Powered Data Management Platform.” Informatica, N.d. Accessed Feb 2022.

Amazon Rekognition. “Automate your image and video analysis with machine learning.” AWS. N.d. Accessed Feb 2022.

“Artificial Intelligence (AI).” IBM Cloud Education, 3 June 2020. Accessed Feb 2022.

“Artificial intelligence (AI) vs machine learning (ML).” Microsoft Azure Documentation. Accessed Feb. 2022.

“Avante Garde in the Realm of AI” SearchUnify Cognitive Platform. Accessed Feb 2022.

“Azure Cognitive Services.” Microsoft. N.d. Accessed Feb 2022.

“Becoming an AI-fueled organization. State of AI in the enterprise, 4th edition,” Deloitte, 2020. Accessed Feb. 2022.

“Coveo Predictive Search.” Coveo, N.d. Accessed Feb 2022.

”Data and AI Leadership. Executive Survey 2022. Executive Summary of Findings.” NewVantage Partners. Accessed Feb 2022.

“Einstein Discovery in Tableau.” Tableau, N.d. Accessed Feb 2022.

Korolov, Maria. “9 biggest hurdles to AI adoption.” CIO, Feb 26, 2019. Accessed Feb 2022.

Meel, Vidushi. “What Is Deep Learning? An Easy to Understand Guide.” visio.ai. Accessed Feb. 2022.

Mitchell, Tom. “Machine Learning,” McGraw Hill, 1997.

Stewart, Matthew. “The Actual Difference Between Statistics and Machine Learning.” Towards Data Science, Mar 24, 2019. Accessed Feb 2022.

“Sentiment analysis with Cognitive Services.” Microsoft Azure Documentation. Accessed February 2022.

“Three Principles for Designing ML-Powered Products.” Spotify Blog. Oct 2019, Accessed Feb 2022.

“Video Intelligence API.” Google Cloud Platform. N.d. Accessed Feb 2022

Build Effective Enterprise Integration on the Back of Business Process

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  • Parent Category Name: Enterprise Integration
  • Parent Category Link: /enterprise-integration
  • Organizations undergoing growth, either organically or through M&A, tend to develop integration capabilities in a piecemeal and short-sighted fashion to preserve their view of agility.
  • Integration strategies that are focused solely on technological solutions are likely to complicate rather than simplify, as not enough consideration is given to how other systems and processes will be impacted.

Our Advice

Critical Insight

  • Define a path for your EI strategy. Establish the more pressing goal of enterprise integration: improving operational integrity or adding business intelligence/predictive analytics capability.
  • Combine multiple views of integration for a comprehensive EI strategy. Assess business process, applications, and data in tandem to understand where enterprise integration will fit in your organization.
  • Don’t start by boiling the ocean and get bogged down in mapping out the entire organization. For the purposes of the strategy, narrow your focus to a set of related high-value processes to identify ways to improve integration.

Impact and Result

  • Begin your enterprise strategy formation by identifying if your organization places emphasis on enabling operational excellence or predictive modeling/analytics.
  • Enterprise integration needs to bring together business process, applications, and data, in that order. Kick-start the process of identifying opportunities for improvement by creating business process maps that incorporate how applications and data are coordinated to support business activities.
  • Revisit the corporate drivers after integration mapping activities to identify the primary use cases for improvement.
  • Prepare for the next steps of carrying out the strategy by reviewing a variety of solution options.
  • Develop a compelling business case by consolidating the outputs of your mapping activities, establishing metrics for a specific process (or set of processes), and quantifying the benefits.

Build Effective Enterprise Integration on the Back of Business Process Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should create an enterprise integration strategy; review Info-Tech’s methodology that encompasses business process, applications, and data; 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. Position enterprise integration within the organization

Begin strategy development by assigning roles and responsibilities for the team and establishing the initial direction for the strategy.

  • Build Effective Enterprise Integration on the Back of Business Process – Phase 1: Position Enterprise Integration Within Your Organization
  • Chief Enterprise Integration Officer
  • Enterprise Integration Strategy Drivers Assessment

2. Explore the lenses of enterprise integration

Create business process maps that incorporate how applications and data are coordinated to support business activities.

  • Build Effective Enterprise Integration on the Back of Business Process – Phase 2: Explore the Lenses of Enterprise Integration
  • Enterprise Integration Process Mapping Tool

3. Develop the enterprise integration strategy

Review your integration map to identify improvement opportunities, explore integration solutions, and consolidate activity outputs into a strategy presentation.

  • Build Effective Enterprise Integration on the Back of Business Process – Phase 3: Develop the Enterprise Integration Strategy
  • Enterprise Integration Strategy Presentation Template
[infographic]

Workshop: Build Effective Enterprise Integration on the Back of Business Process

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

1 Position Enterprise Integration

The Purpose

Discuss the general approach for creating a holistic enterprise integration strategy.

Define the initial direction and drivers.

Key Benefits Achieved

Strategy development team with responsibilities identified.

Clear initial direction for the strategy based on senior stakeholder input.

Activities

1.1 Define the driving statements for your EI strategy.

1.2 Develop a RACI chart.

1.3 Discuss the current state of enterprise integration.

1.4 Establish the initial direction of your strategy by surveying senior stakeholders.

Outputs

Vision, mission, and values for enterprise integration

RACI chart for strategy development

Documentation of past integration projects

Chief Enterprise Integration Officer job description template

2 Explore the Lenses of Enterprise Integration

The Purpose

Build a comprehensive map of what integration looks like for your target business processes.

Key Benefits Achieved

Clear documentation of the integration environment, encompassing process, data, and applications.

Activities

2.1 Develop level-0 and level-1 business capability diagrams.

2.2 Identify the business processes of focus, based on relevance to overall corporate drivers.

2.3 Complete process flow diagrams.

2.4 Begin identifying the applications that are involved in each step of your process.

2.5 Detail the connections/interactions between the applications in your business processes.

2.6 Draw a current state diagram for application integration.

2.7 Identify the data elements created, used, and stored throughout the processes, as well as systems of record.

Outputs

Business capability maps

Business process flow diagrams

Current state integration diagram

Completed integration map

3 Develop the Enterprise Integration Strategy

The Purpose

Review the outputs of the integration mapping activities.

Educate strategy team on the potential integration solutions.

Consolidate the findings of the activities into a compelling strategy presentation.

Key Benefits Achieved

Integration improvement opportunities are identified.

Direction and drivers for enterprise integration are finalized.

Understanding of the benefits and limitations of some integration solutions.

Activities

3.1 Discuss the observations/challenges and opportunities for improvement.

3.2 Refine the focus of the strategy by conducting a more detailed stakeholder survey.

3.3 Review the most common integration solutions for process, applications, and data.

3.4 Create a future state integration architecture diagram.

3.5 Define the IT and business critical success factors for EI.

3.6 Articulate the risks with pursuing (and not pursuing) an EI strategy.

3.7 Quantify the monetary benefits of the EI strategy.

3.8 Discuss best practices for presenting the strategy and organize the presentation content.

Outputs

Critical success factors and risks for enterprise integration

Monetary benefits of enterprise integration

Completed enterprise integration strategy presentation

Create a Transparent and Defensible IT Budget

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  • Parent Category Name: Cost & Budget Management
  • Parent Category Link: /cost-and-budget-management
  • 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.

Build a Data Classification MVP for M365

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

Our Advice

Critical Insight

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

Impact and Result

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

Build a Data Classification MVP for M365 Research & Tools

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

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

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

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

Further reading

Build a Data Classification MVP for M365

Kickstart your governance with data classification users will actually use!

Executive Summary

Info-Tech Insight

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

Executive Summary

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

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

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

Info-Tech Insight

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

Questions you need to ask

Four key questions to kick off your MVP.

1

Know Your Data

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

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

2

Protect Your Data

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

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

3

Prevent Data Loss

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

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

4

Govern Your Data

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

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

Classification tiers

Build your schema.

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

Info-Tech Insight

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

Microsoft MIP Topology

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

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

Info-Tech Insight

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

MVP RACI Chart

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

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

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

What and where your data resides

Data types that require classification.

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

Info-Tech Insight

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

Discover and classify on- premises files using AIP

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

Info-Tech Insight

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

Understanding governance

Microsoft Information Governance

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

Arrow pointing down-right

Records Management
  • Retention labels for items
  • Disposition review

Arrow pointing down-left

Retention and Deletion

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

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

Retention and backup policy decision

Retention is not backup.

Info-Tech Insight

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

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

Understand retention policy

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

Do not confuse retention labels and policies with backup.

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

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

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

“Data retention policy tools enable a business to:

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

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

Definitions

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

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

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

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

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

Data examples for MVP classification

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

New container sensitivity labels (MIP)

New container sensitivity labels

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

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

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

Info-Tech Insights

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

Data protection and security baselines

Data Protection Baseline

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

Security Baseline

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

Info-Tech Insights

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

Prerequisite baseline

Icon of crosshairs.
Security

MFA or SSO to access from anywhere, any device

Banned password list

BYOD sync with corporate network

Icon of a group.
Users

Sign out inactive users automatically

Enable guest users

External sharing

Block client forwarding rules

Icon of a database.
Resources

Account lockout threshold

OneDrive

SharePoint

Icon of gears.
Controls

Sensitivity labels, retention labels and policies, DLP

Mobile application management policy

Building baselines

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

Microsoft 365 Collaboration Protection Profiles

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

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

Info-Tech Insights

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

MVP activities

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

CATEGORIZATION





CLASSIFICATION

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

ACME Company MVP for M/O365

PRIMARY
ACTIVITIES
Define Your Governance


Focus on ability to use legal hold and GDPR compliance.

CATEGORIZATION





CLASSIFICATION

MVP
Data Discovery and Management


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

Baseline Setup


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

Default M365 settings


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

SUPPORT
ACTIVITIES
Retention Policy


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

Sensitivity Labels


Automatically enforce policies on groups through labels; classify groups.

Workload Containers


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

Unforced Policies


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

Forced Policies


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

Related Blueprints

Govern Office 365

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

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

Migrate to Office 365 Now

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

Microsoft Teams Cookbook

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

IT Governance, Risk & Compliance

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

Bibliography

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Application Development Quality

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Apply quality assurance across your critical development process steps to secure quality to product delivery

IT Service Management Selection Guide

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  • member rating average dollars saved: $29,187 Average $ Saved
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  • Parent Category Name: Service Desk
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  • Your ITSM solution that was once good enough is no longer adequate for a rapidly evolving services culture.
  • Processes and data are disconnected with multiple workarounds and don’t allow the operations team to mature processes.
  • The workarounds, disparate systems, and integrations you’ve implemented to solve IT operations issues are no longer adequate.

Our Advice

Critical Insight

  • Accessing funding for IT solutions can be challenging when the solution isn’t obviously aligned to the business need.
  • To maximize value and stakeholder satisfaction, determine use cases early, engage the right stakeholders, and define success.
  • Choosing a solution for a single purpose and then expanding it to cover other use cases can be a very effective use of technology dollars. However, spending the time up front to determine which use cases should be included and which will need a separate best-of-breed solution will make the best use of your investment.

Impact and Result

  • Create a business case that defines use cases and requirements.
  • Shorten the list of viable vendors by matching vendors to use cases.
  • Determine which features are most important to reach your goals and select the best-matched vendor.

IT Service Management Selection Guide Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how Info-Tech’s methodology will provide a quick solution to selecting ITSM vendors and understand the ways we can support you in completing this project.

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

1. Build a business case

Create a light business case to gain buy-in and define goals, milestones, and use cases.

  • IT Service Management Business Case Template

2. Define requirements

Create your list of requirements and shortlist vendors.

  • The ITSM Vendor Evaluation Workbook
[infographic]

Design and Build an Effective Contract Lifecycle Management Process

  • Buy Link or Shortcode: {j2store}214|cart{/j2store}
  • member rating overall impact (scale of 10): 9.0/10 Overall Impact
  • member rating average dollars saved: $5,039 Average $ Saved
  • member rating average days saved: 20 Average Days Saved
  • Parent Category Name: Vendor Management
  • Parent Category Link: /vendor-management
  • Your vendor contracts are unorganized and held in various cabinets and network shares. There is no consolidated list or view of all the agreements, and some are misplaced or lost as coworkers leave.
  • The contract process takes a long time to complete. Coworkers are unsure who should be reviewing and approving them.
  • You are concerned that you are not getting favorable terms with your vendors and not complying with your agreement commitments.
  • You are unsure what risks your organization could be exposed to in your IT vendor contacts. These could be financial, legal, or security risks and/or compliance requirements.

Our Advice

Critical Insight

  • Focus on what’s best for you. There are two phases to CLM. All stages within those phases are important, but choose to improve the phase that can be most beneficial to your organization in the short term. However, be sure to include reviewing risk and monitoring compliance.
  • Educate yourself. Understand the stages of CLM and how each step can rely on the previous one, like a stepping-stone model to success.
  • Consider the overall picture. Contract lifecycle management is the sum of many processes designed to manage contracts end to end while reducing corporate risk, improving financial savings, and managing agreement obligations. It can take time to get CLM organized and working efficiently, but then it will show its ROI and continuously improve.

Impact and Result

  • Understand how to identify and mitigate risk to save the organization time and money.
  • Gain the knowledge required to implement a CLM that will be beneficial to all business units.
  • Achieve measurable savings in contract time processing, financial risk avoidance, and dollar savings.
  • Effectively review, store, manage, comply with, and renew agreements with a collaborative process

Design and Build an Effective Contract Lifecycle Management Process Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how a contract management system will save money and time and mitigate contract risk, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

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

1. Master the operational framework of contract lifecycle management.

Understand how the basic operational framework of CLM will ensure cost savings, improved collaboration, and constant CLM improvement.

  • Design and Build an Effective Contract Lifecycle Management Process – Phase 1: Master the Operational Framework of CLM
  • Existing CLM Process Worksheet
  • Contract Manager

2. Understand the ten stages of contract lifecycle management.

Understand the two phases of CLM and the ten stages that make up the entire process.

  • Design and Build an Effective Contract Lifecycle Management Process – Phase 2: Understand the Ten Stages of CLM
  • CLM Maturity Assessment Tool
  • CLM RASCI Diagram
[infographic]

Workshop: Design and Build an Effective Contract Lifecycle Management Process

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

1 Review Your CLM Process and Learn the Basics

The Purpose

Identify current CLM processes.

Learn the CLM operational framework.

Key Benefits Achieved

Documented overview of current processes and stakeholders.

Activities

1.1 Review and capture your current process.

1.2 Identify current stakeholders.

1.3 Learn the operational framework of CLM.

1.4 Identify current process gaps.

Outputs

Existing CLM Process Worksheet

2 Learn More and Plan

The Purpose

Dive into the two phases of CLM and the ten stages of a robust system.

Key Benefits Achieved

A deep understanding of the required components/stages of a CLM system.

Activities

2.1 Understand the two phases of CLM.

2.2 Learn the ten stages of CLM.

2.3 Assess your CLM maturity state.

2.4 Identify and assign stakeholders.

Outputs

CLM Maturity Assessment

CLM RASCI Diagram

Further reading

Design and Build an Effective Contract Lifecycle Management Process

Mitigate risk and drive value through robust best practices for contract lifecycle management.

Our understanding of the problem

This Research Is Designed For:

  • The CIO who depends on numerous key vendors for services
  • The CIO or Project Manager who wants to maximize the value delivered by vendors
  • The Director or Manager of an existing IT procurement or vendor management team
  • The Contracts Manager or Legal Counsel whose IT department holds responsibility for contracts, negotiation, and administration

This Research Will Help You:

  • Implement and streamline the contract management process, policies, and procedures
  • Baseline and benchmark existing contract processes
  • Understand the importance and value of contract lifecycle management (CLM)
  • Minimize risk, save time, and maximize savings with vendor contracts

This Research Will Also Assist

  • IT Service Managers
  • IT Procurement
  • Contract teams
  • Finance and Legal departments
  • Senior IT leadership

This Research Will Help Them

  • Understand the required components of a CLM
  • Establish the current CLM maturity level
  • Implement a new CLM process
  • Improve on an existing or disparate process

ANALYST PERSPECTIVE

"Contract lifecycle management (CLM) is a vital process for small and enterprise organizations alike. Research shows that all organizations can benefit from a contract management process, whether they have as few as 25 contracts or especially if they have contracts numbering in the hundreds.

A CLM system will:

  • Save valuable time in the entire cycle of contract/agreement processes.
  • Save the organization money, both hard and soft dollars.
  • Mitigate risk to the organization.
  • Avoid loss of revenue.

If you’re not managing your contracts, you aren’t capitalizing on your investment with your vendors and are potentially exposing your organization to contract and monetary risk."

- Ted Walker
Principal Research Advisor, Vendor Management Practice
Info-Tech Research Group

Executive Summary

Situation

  • Most organizations have vendor overload and even worse, no defined process to manage the associated contracts and agreements. To manage contracts, some vendor management offices (VMOs) use a shared network drive to store the contracts and a spreadsheet to catalog and manage them. Yet other less-mature VMOs may just rely on a file cabinet in Procurement and a reminder in someone’s calendar about renewals. These disparate processes likely cost your organization time spent finding, managing, and renewing contracts, not to mention potential increases in vendor costs and risk and the inability to track contract obligations.

Complication

  • Contract lifecycle management (CLM) is not an IT buzzword, and it’s rarely on the top-ten list of CIO concerns in most annual surveys. Until a VMO gets to a level of maturity that can fully develop a CLM and afford the time and costs of doing so, there can be several challenges to developing even the basic processes required to store, manage, and renew IT vendor contracts. As is always an issue in IT, budget is one of the biggest obstacles in implementing a standard CLM process. Until senior leadership realizes that a CLM process can save time, money, and risk, getting mindshare and funding commitment will remain a challenge.

Resolution

  • Understand the immediate benefits of a CLM process – even a basic CLM implementation can provide significant cost savings to the organization; reduce time spent on creating, negotiating, and renewing contracts; and help identify and mitigate risks within your vendor contracts.
  • Budgets don’t always need to be a barrier to a standard CLM process. However, a robust CLM system can provide significant savings to the organization.

Info-Tech Insight

  • If you aren’t managing your contracts, you aren’t capitalizing on your investments.
  • Even a basic CLM process with efficient procedures will provide savings and benefits.
  • Not having a CLM process may be costing your organization money, time, and exposure to unmitigated risk.

What you can gain from this blueprint

Why Create a CLM

  • Improved contract organization
  • Centralized and manageable storage/archives
  • Improved vendor compliance
  • Risk mitigation
  • Reduced potential loss of revenue

Knowledge Gained

  • Understanding of the value and importance of a CLM
  • How CLM can impact many departments within the organization
  • Who should be involved in the CLM steps and processes
  • Why a CLM is important to your organization
  • How to save time and money by maximizing IT vendor contracts
  • How basic CLM policies and procedures can be implemented without costly software expenditure

The Outcome

  • A foundation for a CLM with best-practice processes
  • Reduced exposure to potential risks within vendor contracts
  • Maximized savings with primary vendors
  • Vendor compliance and corporate governance
  • Collaboration, transparency, and integration with business units

Contract management: A case study

CASE STUDY
Industry Finance and Banking
Source Apttus

FIS Global

The Challenge

FIS’ business groups were isolated across the organization and used different agreements, making contract creation a long, difficult, and manual process.

  • Customers frustrated by slow and complicated contracting process
  • Manual contract creation and approval processes
  • Sensitive contract data that lacked secure storage
  • Multiple agreements managed across divisions
  • Lack of central repository for past contracts
  • Inconsistent and inaccessible

The Solution: Automating and Streamlining the Contract Management Process

A robust CLM system solved FIS’ various contract management needs while also providing a solution that could expand into full quote-to cash in the future.

  • Contract lifecycle management (CLM)
  • Intelligent workflow approvals (IWA)
  • X-Author for Excel

Customer Results

  • 75% cycle time reduction
  • $1M saved in admin costs per year
  • 49% increase in sales proposal volume
  • Automation on one standard platform and solution
  • 55% stronger compliance management
  • Easy maintenance for various templates
  • Ability to quickly absorb new contracts and processes via FIS’s ongoing acquisitions

Track the impact of CLM with these metrics

Dollars Saved

Upfront dollars saved

  • Potential dollars saved from avoiding unfavorable terms and conditions
  • Incentives that encourage the vendor to act in the customer’s best interest
  • Secured commitments to provide specified products and services at firm prices
  • Cost savings related to audits, penalties, and back support
  • Savings from discounts found

Time Saved

Time saved, which can be done in several areas

  • Defined and automated approval flow process
  • Preapproved contract templates with corporate terms
  • Reduced negotiation times
  • Locate contracts in minutes

Pitfalls Avoided

Number of pitfalls found and avoided, such as

  • Auto-renewal
  • Inconsistencies between sections and documents
  • Security and data not being deleted upon termination
  • Improper licensing

The numbers are compelling

71%

of companies can’t locate up to 10% of their contracts.

Source: TechnologyAdvice, 2019

9.2%

of companies’ annual revenue is lost because of poor contract management practices.

Source: IACCM, 2019

60%

still track contracts in shared drives or email folders.

Source: “State of Contract Management,” SpringCM, 2018

CLM blueprint objectives

  • To provide a best-practice process for managing IT vendor contract lifecycles through a framework that organizes from the core, analyzes each step in the cycle, has collaboration and governance attached to each step, and integrates with established vendor management practices within your organization.
  • CLM doesn’t have to be an expensive managed database system in the cloud with fancy dashboards. As long as you have a defined process that has the framework steps and is followed by the organization, this will provide basic CLM and save the organization time and money over a short period of time.
  • This blueprint will not delve into the many vendors or providers of CLM solutions and their methodologies. However, we will discuss briefly how to use our framework and contract stages in evaluating a potential solution that you may be considering.

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

DIY Toolkit

"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

Guided Implementation

“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop

"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

Consulting

"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks used throughout all four options

Design and Build an Effective CLM Process – project overview

1. Master the Operational Framework

2. Understand the Ten Stages of CLM

Best-Practice Toolkit

1.1 Understand the operational framework components.

1.2 Review your current framework.

1.3 Create a plan to implement or enhance existing processes.

2.1 Understand the ten stages of CLM.

2.2 Review and document your current processes.

2.3 Review RASCI chart and assign internal ownership.

2.4 Create an improvement plan.

2.5 Track changes for measurable ROI.

Guided Implementations
  • Review existing processes.
  • Understand what CLM is and why the framework is essential.
  • Create an implementation or improvement plan.
  • Review the ten stages of CLM.
  • Complete CLM Maturity Assessment.
  • Create a plan to target improvement.
  • Track progress to measure savings.
Onsite Workshop

Module 1: Review and Learn the Basics

  • Review and capture your current processes.
  • Learn the basic operational framework of contract management.

Module 2 Results:

  • Understand the ten stages of effective CLM.
  • Create an improvement or implementation plan.
Phase 1 Outcome:
  • A full understanding of what makes a comprehensive contract management system.
Phase 2 Outcome:
  • A full understanding of your current CLM processes and where to focus your efforts for improvement or implementation.

Workshop overview

Contact your account representative or email Workshops@InfoTech.com for more information.

Workshop Day 1 Workshop Day 2
Activities

Task – Review and Learn the Basics

Task – Learn More and Plan

1.1 Review and capture your current process.

1.2 Identify current stakeholders.

1.3 Learn the operational framework of contract lifecycle management.

1.4 Identify current process gaps.

2.1 Understand the two phases of CLM.

2.2 Learn the ten stages of CLM.

2.3 Assess your CLM maturity.

2.4 Identify and assign stakeholders.

2.5 Discuss ROI.

2.6 Summarize and next steps.

Deliverables
  1. Internal interviews with business units
  2. Existing CLM Process Worksheet
  1. CLM Maturity Assessment
  2. RASCI Diagram
  3. Improvement Action Plan

PHASE 1

Master the Operational Framework of Contract Lifecycle Management

Design and Build an Effective CLM Process

Phase 1: Master the Operational Framework of Contract Lifecycle Management

Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of
2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

Guided Implementation 1: Master the Operational Framework of Contract Lifecycle Management
Proposed Time to Completion: 1-4 weeks

Step 1.1: Document your Current CLM Process

Step 1.2: Read and Understand the Operational Framework

Step 1.3: Review Solution Options

Start with an analyst kick-off call:

  • Understand what your current process(es) is for each stage
  • Do a probative review of any current processes
  • Interview stakeholders for input

Review findings with analyst:

  • Discuss the importance of the framework as the core of your plan
  • Review the gaps in your existing process
  • Understand how to prioritize next steps towards a CLM

Finalize phase deliverable:

  • Establish ownership of the framework
  • Prioritize improvement areas or map out how your new CLM will look

Then complete these activities…

  • Document the details of your process for each stage of CLM

With these tools & templates:

  • Existing CLM Process Worksheet

Phase 1 Results:

  • A full understanding of what makes a comprehensive contract management system.

What Is Contract Lifecycle Management?

  • Every contract has a lifecycle, from creation to time and usage to expiration. Organizations using a legacy or manual contract management process usually ask, “What is contract lifecycle management and how will it benefit my business?”
  • Contract lifecycle management (CLM) creates a process that manages each contract or agreement. CLM eases the challenges of managing hundreds or even thousands of important business and IT contracts that affect the day-to-day business and could expose the organization to vendor risk.
  • Managing a few contracts is quite easy, but as the number of contracts grows, managing each step for each contract becomes increasingly difficult. Ultimately, it will get to a point where managing contracts properly becomes very difficult or seemingly impossible.

That’s where contract lifecycle management (CLM) comes in.

CLM can save money and improve revenue by:

  • Improving accuracy and decreasing errors through standardized contract templates and approved terms and conditions that will reduce repetitive tasks.
  • Securing contracts and processes through centralized software storage, minimizing risk of lost or misplaced contracts due to changes in physical assets like hard drives, network shares, and file cabinets.
  • Using policies and procedures that standardize, organize, track, and optimize IT contracts, eliminating time spent on creation, approvals, errors, and vendor compliance.
  • Reducing the organization’s exposure to risks and liability.
  • Having contracts renewed on time without penalties and with the most favorable terms for the business.

The Operational Framework of Contract Lifecycle Management

Four Components of the Operational Framework

  1. Organization
  2. Analysis
  3. Collaboration and Governance
  4. Integration/Vendor Management
  • By organizing at the core of the process and then analyzing each stage, you will maximize each step of the CLM process and ensure long-term contract management for the organization.
  • Collaboration and governance as overarching policies for the system will provide accountability to stakeholders and business units.
  • Integration and vendor management are encompassing features in a well-developed CLM that add visibility, additional value, and savings to the entire organization.

Info-Tech Best Practice

Putting a contract manager in place to manage the CLM project will accelerate the improvements and provide faster returns to the organizations. Reference Info-Tech’s Contract Manager Job Description template as needed.

The operational framework is key to the success, return on investment (ROI), cost savings, and customer satisfaction of a CLM process.

This image depicts Info-Tech's Operational Framework.  It consists of a series of five concentric circles, with each circle a different colour.  On the outer circle, is the word Integration.  The next outermost circle has the words Collaboration and Governance.  The next circle has no words, the next circle has the word Analysis, and the very centre circle has the word Organization.

1. Organization

  • Every enterprise needs to organize its contract documents and data in a central repository so that everyone knows where to find the golden source of contractual truth.
  • This includes:
    • A repository for storing and organizing contract documents.
    • A data dictionary for describing the terms and conditions in a consistent, normalized way.
    • A database for persistent data storage.
    • An object model that tracks changes to the contract and its prevailing terms over time.

Info-Tech Insight

Paper is still alive and doing very well at slowing down the many stages of the contract process.

2. Analysis

Most organizations analyze their contracts in two ways:

  • First, they use reporting, search, and analytics to reveal risky and toxic terms so that appropriate operational strategies can be implemented to eliminate, mitigate, or transfer the risk.
  • Second, they use process analytics to reveal bottlenecks and points of friction as contracts are created, approved, and negotiated.

3. Collaboration

  • Throughout the contract lifecycle, teams must collaborate on tasks both pre-execution and post-execution.
  • This includes document collaboration among several different departments across an enterprise.
  • The challenge is to make the collaboration smooth and transparent to avoid costly mistakes.
  • For some contracting tasks, especially in regulated industries, a high degree of control is required.
  • In these scenarios, the organization must implement controlled systems that restrict access to certain types of data and processes backed up with robust audit trails.

4. Integration

  • For complete visibility into operational responsibilities, relationships, and risk, an organization must integrate its golden contract data with other systems of record.
  • An enterprise contracts platform must therefore provide a rich set of APIs and connectors so that information can be pushed into or pulled from systems for enterprise resource planning (ERP), customer relationship management (CRM), supplier relationship management (SRM), document management, etc.

This is the ultimate goal of a robust contract management system!

Member Activity: Document Current CLM Processes

1.1 Completion Time: 1-5 days

Goal: Document your existing CLM processes (if any) and who owns them, who manages them, etc.

Instructions

Interview internal business unit decision makers, stakeholders, Finance, Legal, CIO, VMO, Sales, and/or Procurement to understand what’s currently in place.

  1. Use the Existing CLM Process Worksheet to capture and document current CLM processes.
  2. Establish what processes, procedures, policies, and workflows, if any, are in place for pre-execution (Phase 1) contract stages.
  3. Do the same for post-execution (Phase 2) stages.
  4. Use this worksheet as reference for assessments and as a benchmark for improvement review six to 12 months later.
This image contains a screenshot of Info-Tech's Existing CLM Process Discovery Worksheet

INPUT

  • Internal information from all CLM stakeholders

OUTPUT

  • A summary of processes and owners currently in place

Materials

  • Existing CLM processes from interviews

Participants

  • Finance, Legal, CIO, VMO, Sales, Procurement

PHASE 2

Understand the Ten Stages of Contract Lifecycle Management

Design and Build an Effective CLM Process

Phase 1: Master the Operational Framework of Contract Lifecycle Management

Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of
2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

Guided Implementation 2: Understand the Ten Stages of Contract Lifecycle Management

Proposed Time to Completion: 1-10 weeks

Step 2.1: Assess CLM Maturity

Step 2.2: Complete a RASCI Diagram

Start with an analyst kick-off call:

  • Review the importance of assessing the maturity of your current CLM processes
  • Discuss interview process for internal stakeholders
  • Use data from the Existing CLM Process Worksheet

Review findings with analyst:

  • Review your maturity results
  • Identify stages that require immediate improvement
  • Prioritize improvement or implementation of process

Then complete these activities…

  • Work through the maturity assessment process
  • Answer the questions in the assessment tool
  • Review the summary tab to learn where to focus improvement efforts

Then complete these activities…

  • Using maturity assessment and existing process data, establish ownership for each process stage
  • Fill in the RASCI Chart based on internal review or existing processes

With these tools & templates:

  • CLM Maturity Assessment Tool

With these tools & templates:

  • CLM RASCI Diagram

Phase 2 Results & Insights:

  • A full understanding of your current CLM process and where improvement is required
  • A mapping of stakeholders for each stage of the CLM process

The Ten Stages of Contract Lifecycle Management

There are ten key stages of contract lifecycle management.

The steps are divided into two phases, pre-execution and post-execution.

    Pre-Execution (Phase 1)

  1. Request
  2. Create
  3. Review Risk
  4. Approve
  5. Negotiate
  6. Sign
  7. Post-Execution (Phase 2)

  8. Capture
  9. Manage
  10. Monitor Compliance
  11. Optimize

Ten Process Stages Within the CLM Framework

This image contains the CLM framework from earlier in the presentation, with the addition of the following ten steps: 1. Request; 2. Create Contract; 3. Review Risk; 4. Approve; 5. Negotiate; 6. Sign; 7. Capture; 8. Manage; 9. Monitor Compliance; 10. Optimize.

Stage 1: Request or Initiate

Contract lifecycle management begins with the contract requesting process, where one party requests for or initiates the contracting process and subsequently uses that information for drafting or authoring the contract document. This is usually the first step in CLM.

Requests for contracts can come from various sources:

  • Business units within the organization
  • Vendors presenting their contract, including renewal agreements
  • System- or process-generated requests for renewal or extension

At this stage, you need to validate if a non-disclosure agreement (NDA) is currently in place with the other party or is required before moving forward. At times, adequate NDA components could be included within the contract or agreement to satisfy corporate confidentiality requirements.

Stage 1: Request or Initiate

Stage Input

  • Information about what the contract needs to contain, such as critical dates, term length, coverage, milestones, etc.
  • Some organizations require that justification and budget approval be provided at this stage.
  • Request could come from a vendor as a pre-created contract.
  • Best practices recommend that a contract request form or template is used to standardize all required information.

Stage Output

  • Completed request form, stored or posted with all details required to move forward to risk review and contract creation.
  • Possible audit trails.

Stage 2: Create Contract

  • At the creation or drafting stage, the document is created, generated, or provided by the vendor. The document will contain all clauses, scope, terms and conditions, and pricing as required.
  • In some cases, a vendor-presented contract that is already prepared will go through an internal review or redlining process by the business unit and/or Legal.
  • Both internal and external review and redlining are included in this stage.
  • Also at this stage, the approvers and signing authorities are identified and added to the contract. In addition, some audit trail features may be added.

Info-Tech Best Practice

For a comprehensive list of terms and conditions, see our Software Terms & Conditions Evaluation Tool within Master Contract Review and Negotiation for Software Agreements.

Stage 2: Create Contract

Stage Input

  • Contract request form, risk review/assessment.
  • Vendor- or contractor-provided contract/agreement, either soft copy, electronic form, or more frequently, “clickwrap” web-posted document.
  • Could also include a renewal notification from a vendor or from the CLM system or admin.

Stage Output

  • Completed draft contract or agreement, typically in a Microsoft Word or Adobe PDF format with audit trail or comment tracking.
  • Redlined document for additional revision and or acceptance.
  • Amendment or addendum to existing contract.

Stage 3: Review Risk 1 of 2

The importance of risk review can not be understated. The contract or agreement must be reviewed by several stakeholders who can identify risks to the organization within the contract.

Three important definitions:

  1. Risk is the potential for a negative outcome. A risk is crossing the street while wearing headphones and selecting the next track to play on your smartphone. A negative outcome is getting hit by an oncoming person who, unremarkably, was doing something similar at the same time.
  2. Risk mitigation is about taking the steps necessary to minimize both the likelihood of a risk occurring – look around both before and while crossing the street – and its impact if it does occur – fall if you must, but save the smartphone!
  3. Contract risk is about any number of situations that can cause a contract to fail, from trivially – the supplier delivers needed goods late – to catastrophically – the supplier goes out of business without having delivered your long-delayed orders.

Stage 3: Review Risk 2 of 2

  • Contracts must be reviewed for business terms and conditions, potential risk situations from a financial or legal perspective, business commitments or obligations, and any operational concerns.
  • Mitigating contract risk requires a good understanding of what contracts are in place, how important they are to the success of the organization, and what data they contain.

Collectively, this is known as contract visibility.

  • Risk avoidance and mitigation are also a key component in the ROI of a CLM system and should be tracked for analysis.
  • Risk-identifying forms or templates can be used to maintain consistency with corporate standards.

Stage 3: Review Risk

Stage Input

  • All details of the proposed contract so that a proper risk analysis can be done as well as appropriate review with stakeholders, including:
    • Finance
    • Legal
    • Procurement
    • Security
    • Line-of-business owner
    • IT stakeholders

Stage Output

  • A list of identified concerns that could expose the business unit or organization.
  • Recommendations to minimize or eliminate identified risks.

Stage 4: Approve

The approval stage can be a short process if policies and procedures are already in place. Most organizations will have defined delegation of authority or approval authority depending on risk, value of the contract, and other corporate considerations.

  • Defined approval levels should be known within the organization and can be applied to the approval workflow, expediting the approval of drafted terms, conditions, changes, and cost/spend within the contract internally.
  • Tracking and flexibility needs to considered in the approval process.
  • Gates need to be in place to ensure that a required approver has approved the contract before it moves to the next approver.
  • Flexibility is needed in some situations for ad hoc approval tasks and should include audit trail as required.
  • Approvers can include business units, Finance, Legal, Security, and C-level leaders

Stage 4: Approve

Stage Input

  • Complete draft contract with all terms and conditions (T&Cs) and approval trail.
  • Amendment or addendum to existing contract.

Stage Output

  • Approved draft contract ready to move to the next step of negotiating with the vendor.
  • Approved amendment or addendum to existing or renewal agreement.

Stage 5: Negotiate

  • At this stage, there should be an approved draft of the contract that can be presented to the other party or vendor for review.
  • Typically organizations will negotiate their larger deals for terms and conditions with the goal of balancing the contractual allocation of risk with the importance of the vendor or agreement and its value to the business.
  • Several people on either side are typically involved and will discuss legal and commercial terms of the contract. Throughout the process, negotiators may leverage a variety of tools, including playbooks with preferred and fallback positions, clause libraries, document redlines and comparisons, and issue lists.
  • Audit trails or tracking of changes and acceptances is an important part of this stage. Tracking will avoid duplication and lost or missed changes and will speed up the entire process.
  • A final, clean document is created at this point and readied for execution.

Stage 5: Negotiate

Stage Input

  • Approved draft contract ready to move to the next step of negotiating with the vendor.
  • Approved amendment or addendum to existing or renewal agreement.

Stage Output

  • A finalized and approved contract or amendment with agreed-upon terms and conditions ready for signatures.

Info-Tech Insight

Saving the different versions of a contract during negotiations will save time, provide reassurance of agreed terms as you move through the process, and provide reference for future negotiations with the vendor.

Stage 6: Sign or Execute

  • At this stage in the process, all the heavy lifting in a contract’s creation is complete. Now it’s signature time.
  • To finalize the agreement, both parties need to the sign the final document. This can be done by an in-person wet ink signature or by what is becoming more prevalent, digital signature through an e-signature process.
  • Once complete, the final executed documents are exchanged or received electronically and then retained by each party.

Stage 6: Sign or Execute

Stage Input

  • A finalized and approved contract or amendment with agreed-upon terms and conditions ready for signatures.

Stage Output

  • An executed contract or amendment ready to move to the next stage of CLM, capturing in the repository.

Info-Tech Best Practice

Process flow provisions should made for potential rejection of the contract by signatories, looping the contract back to the appropriate stage for rework or revision.

Stage 7: Capture in Database/Repository 1 of 2

  • This is one of the most important stages of a CLM process. Executed agreements need to be stored in a single manageable, searchable, reportable, and centralized repository.
  • All documents should to be captured electronically, reviewed for accuracy, and then posted to the CLM repository.
  • The repository can be in various formats depending on the maturity, robustness, and budget of the CLM program.

Most repositories are some type of database:

  • An off-the-shelf product
  • A PaaS cloud-based solution
  • A homegrown, internally developed database
  • An add-on module to your ERP system

Stage 7: Capture in Database/Repository 2 of 2

Several important features of an electronic repository should be considered:

  • Consistent metadata tagging of clauses, terms, conditions, dates, etc.
  • Centralized summary view of all contracts
  • Controlled access for those who need to review and manage the contracts

Establishing an effective repository will be key to providing measurable value to the organization and saving large amounts of time for the business unit.

Info-Tech Insight

Planning for future needs by investing a little more money into a better, more robust repository could pay bigger dividends to the VMO and organization while providing a higher ROI over time as advanced functionality is deployed.

Stage 8: Manage

  • Once an agreement is captured in the repository, it needs to be managed from both an operational and a commitment perspective.
  • Through a summary view or master list, contracts need to be operationally managed for end dates and renewals, vendor performance, discounts, and rebates.
  • Managing contracts for commitment and compliance will ensure all contract requirements, rights, service-level agreements (SLAs), and terms are fulfilled. This will eliminate the high costs of missed SLAs, potential breaches, or missed renewals.
  • Managing contracts can be improved by adding metadata to the records that allow for easier search and retrieval of contracts or even proactive notification.
  • The repository management features can and should be available to business stakeholders, or reporting from a CLM admin can also alert stakeholders to renewals, pricing, SLAs, etc.
  • Also important to this stage is reporting. This can be done by an admin or via a self-serve feature for stakeholders, or it could even be automated.

Stage 9: Monitor Compliance 1 of 2

  • At this stage, the contracts or agreements need to be monitored for the polices within them and the purpose for which they were signed.
  • This is referred to as obligation management and is a key step to providing savings to the organization and mitigating risk.
  • Many contracts contain commitments by each party. These can include but are not limited to SLAs, service uptime targets, user counts, pricing threshold discounts and rebates, renewal notices to vendors, and training requirements.
  • All of these obligations within the contracts should be summarized and monitored to ensure that all commitments are delivered on. Managing obligations will mitigate risks, maximize savings and rebates to the organization, and minimize the potential for a breach within the contract.

Stage 9: Monitor Compliance 2 of 2

  • Monitoring and measuring vendor commitments and performance will also be a key factor in maximizing the benefits of the contract through vendor accountability.
  • Also included in this stage is renewal and/or disposition of the contract. If renewal is due, it should go back to the business unit for submission to the Stage 1: Request process. If the business unit is not going to renew the contract, the contract must be tagged and archived for future reference.

Stage 10: Optimize

  • The goal of this stage is to improve the other stages of the process as well as evaluate how each stage is integrating with the core operational framework processes.
  • With more data and improved insight into contractual terms and performance, a business can optimize its portfolio for better value, greater savings, and lower-risk outcomes.
  • For high-performance contract teams, the goal is a continuous feedback loop between the contract portfolio and business performance. If, for example, the data shows that certain negotiation issues consume a large chunk of time but yield no measurable difference in risk or performance, you may tweak the playbook to remedy those issues quickly.

Additional optimization tactics:

  • Streamlining contract renewals with auto-renew
  • Predefined risk review process or template, continuous review/improvement of negotiation playbook
  • Better automation or flow of approval process
  • Better signature delegation process if required
  • Improving repository search with metadata tagging
  • Automating renewal tracking or notice process
  • Tracking the time a contract spends in each stage

Establish Your Current CLM Maturity Position

  • Sometimes organizations have a well-defined pre-execution process but have a poor post-signature process.
  • Identifying your current processes or lack thereof will provide you with a starting point in developing a plan for your CLM. It’s possible that most of the stages are there and just need some improvements, or maybe some are missing and need to be implemented.
  • It’s not unusual for organizations to have a manual pre-execution process and an automated backend repository with compliance and renewal notices features.

Info-Tech Best Practice

Use the CLM Maturity Assessment Tool to outline where your organization is at each stage of the process.

Member Activity: Assess Current CLM Maturity

2.1 Completion Time 1-2 days

Goal: Identify and measure your existing CLM processes, if any, and provide a maturity value to each stage. The resulting scores will provide a maturity assessment of your CLM.

Instructions

  1. Use the Existing CLM Process Worksheet to document current CLM processes.
  2. Using the CLM worksheet info, answer the questions in the CLM Maturity Assessment Tool.
  3. Review the results and scores on Tab 3 to see where you need to focus your initial improvements.
  4. Save the initial assessment for future reference and reassess in six to 12 months to measure progress.

This image contains a screenshot from Info-Tech's CLM Maturity Assessment Tool.

INPUT

  • Internal information from all CLM stakeholders

OUTPUT

  • A summary of processes and owners currently in place in the organization

Materials

  • Existing CLM processes from interviews

Participants

  • Finance, Legal, CIO, VMO, Sales, Procurement

Member Activity: Complete RASCI Chart

2.2 Completion Time 2-6 hours

Goal: Identify who in your organization is primarily accountable and involved in each stage of the CLM process.

Instructions

Engage internal business unit decision makers, stakeholders, Finance, Legal, CIO, VMO, Sales, and Procurement as required to validate who should be involved in each stage.

  1. Using the information collected from internal reviews, assign a level in the CLM RASCI Diagram to each team member.
  2. Use the resulting RASCI diagram to guide you through developing or improving your CLM stages.

This image contains a screenshot from Info-Tech's CLM RASCI Diagram.

INPUT

  • Internal interview information

OUTPUT

  • Understanding of who is involved in each CLM stage

Materials

  • Interview data
  • RASCI Diagram

Participants

  • Finance, Legal, CIO, VMO, Sales, Procurement

Applying CLM Framework and Stages to Your Organization

  • Understand what CLM process you currently do or do not have in place.
  • Review implementation options: automated, semi-automated, and manual solutions.
  • If you are improving an existing process, focus on one phase at a time, perfect it, and then move to the other phase. This can also be driven by budget and time.
  • Create a plan to start with and then move to automating or semi-automating the stages.
  • Building onto or enhancing an existing system or processes can be a cost-effective method to produce near-term measurable savings
  • Focus on one phase at a time, then move on to the other phase.
  • While reviewing implementation of or improvements to CLM stages, be sure to track or calculate the potential time and cost savings and risk mitigation. This will help in any required business case for a CLM.

CLM: An ROI Discussion 1 of 2

  • ROI can be easier to quantify and measure in larger organizations with larger CLM, but ROI metrics can be obtained regardless of the company or CLM size.
  • Organizations recognize their ROI through gains in efficiency across the entire business as well as within individual departments involved in the contracting process. They also do so by reducing the risk associated with decentralized and insecure storage of and access to their contracts, failure to comply with terms of their contracts, and missing deadlines associated with contracts.

Just a few of the factors to consider within your own organization include:

  • The number of people inside and outside your company that touch your contracts.
  • The number of hours spent weekly, monthly, and annually managing contracts.
  • Potential efficiencies gained in better managing those contracts.
  • The total number of contracts that exist at any given time.
  • The average value and total value of those contract types.
  • The potential risk of being in breach of any of those contracts.
  • The number of places contracts are stored.
  • The level of security that exists to prevent unauthorized access.
  • The potential impact of unauthorized access to your sensitive contract data.

CLM: An ROI Discussion 2 of 2

Decision-Maker Apprehensions

Decision-maker concerns arise from a common misunderstanding – that is, a fundamental failure to appreciate the true source of contract management value. This misunderstanding goes back many years to the time when analysts first started to take an interest in contract management and its automation. Their limited experience (primarily in retail and manufacturing sectors) led them to think of contract management as essentially an administrative function, primarily focused on procurement of goods. In such environments, the purpose of automation is focused on internal efficiency, augmented by the possibility of savings from reduced errors (e.g. failing to spot a renewal or expiry date) or compliance (ensuring use of standard terms).

Today’s CLM systems and processes can provide ROI in several areas in the business.

Info-Tech Insight

Research on ROI of CLM software shows significant hard cost savings to an organization. For example, a $10 million company with 300 contracts valued at $3 million could realize savings of $83,400 and avoid up to $460,000 in lost revenues. (Derived from: ACCDocket, 2018)

Additional Considerations 1 of 2

Who should own and/or manage the CLM process within an organization? Legal, VMO, business unit, Sales?

This is an often-discussed question. Research suggests that there is no definitive answer, as there are several variables.

Organizations needs to review what makes the best business sense for them based on several considerations and then decide where CLM belongs.

  • Business unit budgets and time management
  • Available Administration personnel and time
  • IT resources
  • Security and access concerns
  • Best fit based on organizational structure

35% of law professionals feel contract management is a legal responsibility, while 45% feel it’s a business responsibility and a final 20% are unsure where it belongs. (Source: “10 Eye-Popping Contract Management Statistics,” Apttus, 2018)

Additional Considerations 2 of 2

What type of CLM software or platform should we use?

This too is a difficult question to answer definitively. Again, there are several variables to consider. As well, several solutions are available, and this is not a one-size-fits-all scenario.

As with who should own the CLM process, organizations must review the various CLM software solutions available that will meet their current and future needs and then ask, “What do we need the system to do?”

  • Do you build a “homegrown” solution?
  • Should it be an add-on module to the current ERP or CRM system?
  • Is on-premises more suitable?
  • Is an adequate off-the-shelf (OTS) solution available?
  • What about the many cloud offerings?
  • Is there a basic system to start with that can expand as you grow?

Info-Tech Insight

When considering what type of solution to choose, prioritize what needs to been done or improved. Sometimes solutions can be deployed in phases as an “add-on” type modules.

Summary of Accomplishment

Knowledge Gained

  • Documented current CLM process
  • Core operational framework to build a CLM process on
  • Understanding of best practices required for a sustainable CLM

Processes Optimized

  • Internal RASCI process identified
  • Existing internal stage improvements
  • Internal review process for risk mitigation

Deliverables Completed

  • Existing CLM Processes Worksheet
  • CLM Maturity Assessment
  • CLM RASCI Chart
  • CLM improvement plan

Project Step Summary

Client Project: CLM Assessment and Improvement Plan

  1. Set your goals – what do you want to achieve in your CLM project?
  2. Assess your organization’s current CLM position in relation to CLM best practices and stages.
  3. Map your organization’s RASCI structure for CLM.
  4. Identify opportunities for stage improvements or target all low stage assessments.
  5. Prioritize improvement processes.
  6. Track ROI metrics.
  7. Develop a CLM implementation or improvement plan.

Info-Tech Insight

This project can fit your organization’s schedule:

  • Do-it-yourself with your team.
  • Remote delivery (Info-Tech Guided Implementation).

CLM Blueprint Summary and Conclusion

  • Contract management is a vital component of a responsible VMO that will benefit all business units in an organization, save time and money, and reduce risk exposure.
  • A basic well-deployed and well-managed CLM will provide ROI in the short term.
  • Setting an improvement plan with concise improvements and potential cost savings based on process improvements will help your business case for CLM get approval and leadership buy-in.
  • Educating and aligning all business units and stakeholders to any changes to CLM processes will ensure that cost savings and ROI are achieved.
  • When evaluating a CLM software solution, use the operational framework and the ten process stages in this blueprint as a reference guide for CLM vendor functionality and selection.

Related Info-Tech Research

Master Contract Review and Negotiation

Optimize spend with significant cost savings and negotiate from a position of strength.

Manage Your Vendors Before They Manage You

Maximize the value of vendor relationships.

Bibliography

Burla, Daniel. “The Must Know Of Transition to Dynamics 365 on Premise.” Sherweb, 14 April 2017. Web.

Anand, Vishal, “Strategic Considerations in Implementing an End-to-End Contract Lifecycle Management Solution.” DWF Mindcrest, 20 Aug. 2016. Web.

Alspaugh, Zach. “10 Eye-Popping Contract Management Statistics from the General Counsel’s Technology Report.” Apttus, 23 Nov. 2018. Web.

Bishop, Randy. “Contract Management is not just a cost center.” ContractSafe, 9 Sept. 2019. Web.

Bryce, Ian. “Contract Management KPIs - Measuring What Matters.” Gatekeeper, 2 May 2019. Web.

Busch, Jason. “Contract Lifecycle Management 101.” Determine. 4 Jan. 2018. Web.

“Contract Management Software Buyer's Guide.” TechnologyAdvice, 5 Aug. 2019. Web.

Dunne, Michael. “Analysts Predict that 2019 will be a Big Year for Contract Lifecycle Management.” Apttus, 19 Nov. 2018. Web.

“FIS Case Study.” Apttus, n.d. Web.

Gutwein, Katie. “3 Takeaways from the 2018 State of Contract Management Report.” SpringCM, 2018. Web.

“IACCM 2019 Benchmark Report.” IAACM, 4 Sept. 2019. Web.

Linsley, Rod. “How Proverbial Wisdom Can Help Improve Contract Risk Mitigation.” Gatekeeper, 2 Aug. 2019. Web.

Mars, Scott. “Contract Management Data Extraction.” Exari, 20 June 2017. Web.

Rodriquez, Elizabeth. “Global Contract Life-Cycle Management Market Statistics and Trends 2019.” Business Tech Hub, 17 June 2017. Web.

“State of Contract Management Report.” SpringCM, 2018. Web.

Teninbaum, Gabriel, and Arthur Raguette. “Realizing ROI from Contract Management Technology.” ACCDocket.com, 29 Jan. 2018. Web.

Wagner, Thomas. “Strategic Report on Contract Life cycle Management Software Market with Top Key Players- IBM Emptoris, Icertis, SAP, Apttus, CLM Matrix, Oracle, Infor, Newgen Software, Zycus, Symfact, Contract Logix, Coupa Software.” Market Research, 21 June 2019. Web.

“What is Your Contract Lifecycle Management (CLM) Persona?” Spend Matters, 19 Oct. 2017. Web.

Prepare and Defend Against a Software Audit

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  • member rating overall impact (scale of 10): 10.0/10 Overall Impact
  • member rating average dollars saved: $32,499 Average $ Saved
  • member rating average days saved: 6 Average Days Saved
  • Parent Category Name: Licensing
  • Parent Category Link: /licensing
  • Audit defense starts long before you get audited. Negotiating your vendors’ audit rights and maintaining a documented consolidated licensing position ensure that you are not blindsided by a sudden audit request.
  • Notification of an impending audit can cause panic. Don't panic. While the notification will be full of strong language, your best chance of success is to take control of the situation. Prepare a measured response that buys you enough time to get your house in order before you let the vendor in.
  • If a free software asset review sounds too good to be true, then it probably is. If a vendor or one of its partners offers up a free software asset management engagement, they aren’t doing so out of the goodness of their heart — they expect to recoup their costs (and then some) from identified license discrepancies.

Our Advice

Critical Insight

  • The amount of business disruption depends on the scope of the audit, and the size and complexity of the organization coupled with the contractual audit clause in the contract.
  • These highly visible failures can be prevented through effective software asset management practices.
  • As complexity of licensing increases, so do penalties. If the environment is highly complex, prioritize effort by likelihood of audit and spend.
  • Ensure electronic records exist for license documentation to provide fast access for audit and information requests
  • Verify accuracy of discovered data. Ensure all devices on the network are being audited. Without a complete discovery process, data will always be inaccurate.

Impact and Result

  • Being able to respond quickly with accurate data is critical. When deadlines are tight, and internal resources don’t exist, hire a third party as their experience will allow a faster response.
  • Negotiate terms of the audit such as deadlines, proof of license entitlement, and who will complete the audit.
  • Create a methodology to quickly and efficiently respond to audit requests.
  • Conduct annual internal audits.
  • Have a designated cross-functional IT audit team.
  • Prepare documentation in advance.
  • Manage audit logistics to minimize business disruption.
  • Dispute unwarranted findings.

Prepare and Defend Against a Software Audit Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should be prepared and ready to defend against a software audit, 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. Prevent an audit

Begin your proactive audit management journey and leverage value from your software asset management program.

  • Prepare and Defend Against a Software Audit – Phase 1: Prevent an Audit
  • Audit Defense Maturity Assessment Tool
  • Effective Licensing Position Tool
  • Audit Defence RACI Template

2. Prepare for an audit

Prepare for an audit by effectively scoping and consolidating organizational response.

  • Prepare and Defend Against a Software Audit – Phase 2: Prepare for an Audit
  • Software Audit Scoping Email Template
  • Audit Defense Readiness Assessment

3. Conduct the audit

Execute the audit in a way that preserves valuable relationships while accounting for vendor specific criteria.

  • Prepare and Defend Against a Software Audit – Phase 3: Conduct an Audit
  • Software Audit Launch Email Template

4. Manage post-audit activities

Conduct negotiations, settle on remuneration, and close out the audit.

  • Prepare and Defend Against a Software Audit - Phase 4: Manage Post-Audit Activities
[infographic]

Workshop: Prepare and Defend Against a Software Audit

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 Prevent an Audit

The Purpose

Kick off the project

Identify challenges and red flags

Determine maturity and outline internal audit

Clarify stakeholder responsibilities

Build and structure audit team

Key Benefits Achieved

Leverage value from your audit management program

Begin your proactive audit management journey

A documented consolidated licensing position, which ensures that you are not blindsided by a sudden audit request

Activities

1.1 Perform a maturity assessment of the current environment

1.2 Classify licensing contracts/vendors

1.3 Conduct a software inventory

1.4 Meter application usage

1.5 Manual checks

1.6 Gather software licensing data

1.7 Reconcile licenses

1.8 Create your audit team and assign accountability

Outputs

Maturity assessment

Effective license position/license reconciliation

Audit team RACI chart

2 Prepare for an Audit

The Purpose

Create a strategy for audit response

Know the types of requests

Scope the engagement

Understand scheduling challenges

Know roles and responsibilities

Understand common audit pitfalls

Define audit goals

Key Benefits Achieved

Take control of the situation and prepare a measured response

A dedicated team responsible for all audit-related activities

A formalized audit plan containing team responsibilities and audit conduct policies

Activities

2.1 Use Info-Tech’s readiness assessment template

2.2 Define the scope of the audit

Outputs

Readiness assessment

Audit scoping email template

3 Conduct the Audit

The Purpose

Overview of process conducted

Kick-off and self-assessment

Identify documentation requirements

Prepare required documentation

Data validation process

Provide resources to enable the auditor

Tailor audit management to vendor compliance position

Enforce best-practice audit behaviors

Key Benefits Achieved

A successful audit with minimal impact on IT resources

Reduced severity of audit findings

Activities

3.1 Communicate audit commencement to staff

Outputs

Audit launch email template

4 Manage Post-Audit Activities

The Purpose

Clarify auditor findings and recommendations

Access severity of audit findings

Develop a plan for refuting unwarranted findings

Disclose findings to management

Analyze opportunities for remediation

Provide remediation options and present potential solutions

Key Benefits Achieved

Ensure your audit was productive and beneficial

Improve your ability to manage audits

Come to a consensus on which findings truly necessitate organizational change

Activities

4.1 Don't accept the penalties; negotiate with vendors

4.2 Close the audit and assess the financial impact

Outputs

A consensus on which findings truly necessitate organizational change

Develop a Use Case for Smart Contracts

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  • 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: Innovation
  • Parent Category Link: /innovation
  • Organizations today continue to use traditional and often archaic methods of manual processing with physical paper documents.
  • These error-prone methods introduce cumbersome administrative work, causing businesses to struggle with payments and contract disputes.
  • The increasing scale and complexity of business processes has led to many third parties, middlemen, and paper hand-offs.
  • Companies remain bogged down by expensive and inefficient processes while losing sight of their ultimate stakeholder: the customer. A failure to focus on the customer is a failure to do business.

Our Advice

Critical Insight

  • Simplify, automate, secure. Smart contracts enable businesses to simplify, automate, and secure traditionally complex transactions.
  • Focus on the customer. Smart contracts provide a frictionless experience for customers by removing unnecessary middlemen and increasing the speed of transactions.
  • New business models. Smart contracts enable the redesign of your organization and business-to-business relationships and transactions.

Impact and Result

  • Simplify and optimize your business processes by using Info-Tech’s methodology to select processes with inefficient transactions, unnecessary middlemen, and excessive manual paperwork.
  • Use Info-Tech’s template to generate a smart contract use case customized for your business.
  • Customize Info-Tech’s stakeholder presentation template to articulate the goals and benefits of the project and get buy-in from business executives.

Develop a Use Case for Smart Contracts Research & Tools

Start here – read the Executive Brief

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

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

  • Develop a Use Case for Smart Contracts – Phases 1-2

1. Understand smart contracts

Understand the fundamental concepts of smart contract technology and get buy-in from stakeholders.

  • Develop a Use Case for Smart Contracts – Phase 1: Understand Smart Contracts
  • Smart Contracts Executive Buy-in Presentation Template

2. Develop a smart contract use case

Select a business process, create a smart contract logic diagram, and complete a smart contract use-case deliverable.

  • Develop a Use Case for Smart Contracts – Phase 2: Develop the Smart Contract Use Case
  • Smart Contracts Use-Case Template

[infographic]

Workshop: Develop a Use Case for Smart Contracts

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 Smart Contracts

The Purpose

Review blockchain basics.

Understand the fundamental concepts of smart contracts.

Develop smart contract use-case executive buy-in presentation.

Key Benefits Achieved

Understanding of blockchain basics.

Understanding the fundamentals of smart contracts.

Development of an executive buy-in presentation.

Activities

1.1 Review blockchain basics.

1.2 Understand smart contract fundamentals.

1.3 Identify business challenges and smart contract benefits.

1.4 Create executive buy-in presentation.

Outputs

Executive buy-in presentation

2 Smart Contract Logic Diagram

The Purpose

Brainstorm and select a business process to develop a smart contract use case around.

Generate a smart contract logic diagram.

Key Benefits Achieved

Selected a business process.

Developed a smart contract logic diagram for the selected business process.

Activities

2.1 Brainstorm candidate business processes.

2.2 Select a business process.

2.3 Identify phases, actors, events, and transactions.

2.4 Create the smart contract logic diagram.

Outputs

Smart contract logic diagram

3 Smart Contract Use Case

The Purpose

Develop smart contract use-case diagrams for each business process phase.

Complete a smart contract use-case deliverable.

Key Benefits Achieved

Smart contract use-case diagrams.

Smart contract use-case deliverable.

Activities

3.1 Build smart contract use-case diagrams for each phase of the business process.

3.2 Create a smart contract use-case summary diagram.

3.3 Complete smart contract use-case deliverable.

Outputs

Smart contract use case

4 Next Steps and Action Plan

The Purpose

Review workshop week and lessons learned.

Develop an action plan to follow through with next steps for the project.

Key Benefits Achieved

Reviewed workshop week with common understanding of lessons learned.

Completed an action plan for the project.

Activities

4.1 Review workshop deliverables.

4.2 Create action plan.

Outputs

Smart contract action plan

 

Portfolio Management

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  • member rating overall impact (scale of 10): 9.6/10
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  • member rating average days saved: 30
  • Parent Category Name: Applications
  • Parent Category Link: /applications

The challenge

  • Typically your business wants much more than your IT development organization can deliver with the available resources at the requested quality levels.
  • Over-damnd has a negative influence on delivery throughput. IT starts many projects (or features) but has trouble delivering most of them within the set parameters of scope, time, budget, and quality. Some requested deliverables may even be of questionable value to the business.
  • You may not have the right project portfolio management (PPM) strategy to bring order in IT's delivery activities and to maximize business value.

Our advice

Insight

  • Many in IT mix PPM and project management. Your project management playbook does not equate to the holistic view a real PPM practice gives you.
  • Some organizations also mistake PPM for a set of processes. Processes are needed, but a real strategy works towards tangible goals.
  • PPM works at the strategic level of the company; hence executive buy-in is critical. Without executive support, any effort to reconcile supply and demand will be tough to achieve.

Impact and results 

  • PPM is a coherent business-aligned strategy that maximizes business value creation across the entire portfolio, rather than in each project.
  • Our methodology tackles the most pressing challenge upfront: get executive buy-in before you start defining your goals. With senior management behind the plan, implementation will become easier.
  • Create PPM processes that are a cultural fit for your company. Define your short and long-term goals for your strategy and support them with fully embedded portfolio management processes.

The roadmap

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

Get started.

Read our executive brief to understand why you should develop a PPM strategy and understand how our methodology can help you. We show you how we can support you.

Obtain executive buy-in for your strategy

Ensure your strategy is a cultural fit or cultural-add for your company.

  • Develop a Project Portfolio Management Strategy – Phase 1: Get Executive Buy-In for Your PPM Strategy (ppt)
  • PPM High-Level Supply-Demand Calculator (xls)
  • PPM Strategic Plan Template (ppt)
  • PPM Strategy-Process Goals Translation Matrix Template (xls)

Align the PPM processes to your company's strategic goals

Use the advice and tools in this stage to align the PPM processes.

  • Develop a Project Portfolio Management Strategy – Phase 2: Align PPM Processes to Your Strategic Goals (ppt)
  • PPM Strategy Development Tool (xls)

Refine and complete your plan

Use the inputs from the previous stages and add a cost-benefit analysis and tool recommendation.

  • Streamline Application Maintenance – Phase 3: Optimize Maintenance Capabilities (ppt)

Streamline your maintenance delivery

Define quality standards in maintenance practices. Enforce these in alignment with the governance you have set up. Show a high degree of transparency and open discussions on development challenges.

  • Develop a Project Portfolio Management Strategy – Phase 3: Complete Your PPM Strategic Plan (ppt)
  • Project Portfolio Analyst / PMO Analyst (doc)

 

 

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.

Reduce Manual Repetitive Work With IT Automation

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Critical Insight

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Impact and Result

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Reduce Manual Repetitive Work With IT Automation Research & Tools

Start here – read the Executive Brief

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

1. Identify automation candidates

Select the top automation candidates to score some quick wins.

  • Reduce Manual Repetitive Work With IT Automation – Phase 1: Identify Automation Candidates
  • IT Automation Presentation
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  • IT Automation Roadmap
[infographic]

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1 Identify Automation Candidates

The Purpose

Identify top candidates for automation.

Key Benefits Achieved

Plan to achieve quick wins with automation for early value.

Activities

1.1 Identify MRW pain points.

1.2 Drill down pain points into tasks.

1.3 Estimate the MRW involved in each task.

1.4 Rank the tasks based on value and ease.

1.5 Select top candidates and define metrics.

1.6 Draft project charters.

Outputs

MRW pain points

MRW tasks

Estimate of MRW involved in each task

Ranking of tasks for suitability for automation

Top candidates for automation & success metrics

Project charter(s)

2 Map & Optimize Processes

The Purpose

Map and optimize the process flow of the top candidate(s).

Key Benefits Achieved

Requirements for automation of the top task(s).

Activities

2.1 Map process flows.

2.2 Review and optimize process flows.

2.3 Clarify logic and finalize future-state process flows.

Outputs

Current-state process flows

Optimized process flows

Future-state process flows with complete logic

3 Build a Process for Managing Automation

The Purpose

Develop a lightweight process for rolling out automation and for managing the automation program.

Key Benefits Achieved

Ability to measure and to demonstrate success of each task automation, and of the program as a whole.

Activities

3.1 Kick off your test plan for each automation.

3.2 Define process for automation rollout.

3.3 Define process to manage your automation program.

3.4 Define metrics to measure success of your automation program.

Outputs

Test plan considerations

Automation rollout process

Automation program management process

Automation program metrics

4 Build Automation Roadmap

The Purpose

Build a roadmap to enhance automation capabilities.

Key Benefits Achieved

A clear timeline of initiatives that will drive improvement in the automation program to reduce MRW.

Activities

4.1 Build a roadmap for next steps.

Outputs

IT automation roadmap

Further reading

Reduce Manual Repetitive Work With IT Automation

Free up time for value-adding jobs.

ANALYST PERSPECTIVE

Automation cuts both ways.

Automation can be very, very good, or very, very bad.
Do it right, and you can make your life a whole lot easier.
Do it wrong, and you can suffer some serious pain.
All too often, automation is deployed willy-nilly, without regard to the overall systems or business processes in which it lives.
IT professionals should follow a disciplined and consistent approach to automation to ensure that they maximize its value for their organization.

Derek Shank,
Research Analyst, Infrastructure & Operations
Info-Tech Research Group

Executive summary

Situation

  • IT staff are overwhelmed with manual repetitive work.
  • You have little time for projects.
  • You cannot move as fast as the business wants.

Complication

  • Automation is simple to say, but hard to implement.
  • Vendors claim automation will solve all your problems.
  • You have no process for managing automation.

Resolution

  • Begin by automating a few tasks with the highest value to score quick wins.
  • Define a process for rolling out automation, leveraging SDLC best practices.
  • Determine metrics and continually track the success of the automation program.

Info-Tech Insight

  1. Optimize before you automate.The current way isn’t necessarily the best way.
  2. Foster an engineering mindset.Your team members may not be process engineers, but they should learn to think like one.
  3. Build a process to iterate.Effective automation can't be a one-and-done. Define a lightweight process to manage your program.

Infrastructure & operations teams are overloaded with work

  • DevOps and digital transformation initiatives demand increased speed.
  • I&O is still tasked with security and compliance and audit.
  • I&O is often overloaded and unable to keep up with demand.

Manual repetitive work (MRW) sucks up time

  • Manual repetitive work is a fact of life in I&O.
  • DevOps circles refer to this type of work simply as “toil.”
  • Toil is like treading water: it must be done, but it consumes precious energy and effort just to stay in the same place.
  • Some amount of toil is inevitable, but it's important to measure and cap toil, so it does not end up overwhelming your team's whole capacity for engineering work.

Info-Tech Insight

Follow our methodology to focus IT automation on reducing toil.

Manual hand-offs create costly delays

  • Every time there is a hand-off, we lose efficiency and productivity.
  • In addition to the cost of performing manual work itself, we must also consider the impact of lost productivity caused by the delay of waiting for that work to be performed.

Every queue is a tire fire

Queues create waste and are extremely damaging. Like a tire fire, once you get started, they’re almost impossible to stamp out!

Increase queues if you want

  • “More overhead”
  • “Lower quality”
  • “More variability”
  • “Less motivation”
  • “Longer cycle time”
  • “Increased risk”

(Source: Edwards, citing Donald G. Reinersten: The Principles of Product Development Flow: Second Generation Lean Product Development )

Increasing complexity makes I&O’s job harder

Every additional layer of complexity multiplies points of failure. Beyond a certain level of complexity, troubleshooting can become a nightmare.

Today, Operations is responsible for the outcomes of a full stack of a very complex, software-defined, API-enabled system running on infrastructure they may or may not own.
– Edwards

Growing technical debt means an ever-rising workload

  • Enterprises naturally accumulate technical debt.
  • All technology requires care and feeding.
  • I&O cannot control how much technology it’s expected to support.
  • I&O faces a larger and larger workload as technical debt accumulates.

The systems built under each new technology paradigm never fully replace the systems built under the old paradigms. It’s not uncommon for an enterprise to have an accumulation of systems built over 10-15 years and have no budget, risk appetite, or even a viable path to replace them all. With each shift, who bares [SIC] the brunt of the responsibility for making sure the old and the new hang together? Operations, of course. With each new advance, Operations juggles more complexity and more layers of legacy technologies than ever before.
– Edwards

Most IT shops can’t have a dedicated engineering team

  • In most organizations, the team that builds things is best equipped to support them.
  • Often the knowledge to design systems and the knowledge to run those systems naturally co-exists in the same personnel resources.
  • When your I&O team is trying to do engineering work, they can end up frequently interrupted to perform operational tasks.
A Venn Diagram is depicted which compares People who build things with People who run things. the two circles are almost completely overlapping, indicating the strong connection between the two groups.

Personnel resources in most IT organizations overlap heavily between “build” and “run.”

IT operations must become an engineering practice

  • Usually you can’t double your staff or double their hours.
  • IT professionals must become engineers.
  • We do this by automating manual repetitive work and reducing toil.
Two scenarios are depicted. The first scenario is found at a hypothetical work camp, in which one employee performs the task of manually splitting firewood with an axe. In order to split twice as much firewood, the employee would need to spend twice the time. The second scenario is Engineering Operations. in this scenario, a wood processor is used to automate the task, allowing far more wood to be split in same amount of time.

Build your Sys Admin an Iron Man suit

Some CIOs see a Sys Admin and want to replace them with a Roomba. I see a Sys Admin and want to build them an Iron Man suit.
– Deepak Giridharagopal, CTO, Puppet

Two Scenarios are depicted. In one, an employee is replaced by automation, represented by a Roomba, reducing costs by laying off a single employee. In the second scenario, the single employee is given automated tools to do their job, represented by an iron-man suit, leading to a 10X boost in employee productivity.

Use automation to reduce risk

Consistency

When we automate, we can make sure we do something the same way every time and produce a consistent result.

Auditing and Compliance

We can design an automated execution that will ship logs that provide the context of the action for a detailed audit trail.

Change

  • Enterprise environments are continually changing.
  • When context changes, so does the procedure.
  • You can update your docs all you want, but you can't make people read them before executing a procedure.
  • When you update the procedure itself, you can make sure it’s executed properly.

Follow Info-Tech’s approach: Start small and snowball

  • It’s difficult for I&O to get the staffing resources it needs for engineering work.
  • Rather than trying to get buy-in for resources using a “top down” approach, Info-Tech recommends that I&O score some quick wins to build momentum.
  • Show success while giving your team the opportunity to build their engineering chops.

Because the C-suite relies on upwards communication — often filtered and sanitized by the time it reaches them — executives don’t see the bottlenecks and broken processes that are stalling progress.
– Andi Mann

Info-Tech’s methodology employs a targeted approach

  • You aren’t going to automate IT operations end-to-end overnight.
  • In fact, such a large undertaking might be more effort than it’s worth.
  • Info-Tech’s methodology employs a targeted approach to identify which candidates will score some quick wins.
  • We’ll demonstrate success, gain momentum, and then iterate for continual improvement.

Invest in automation to reap long-term rewards

  • All too often people think of automation like a vacuum cleaner you can buy once and then forget.
  • The reality is you need to perform care and feeding for automation like for any other process or program.
  • To reap the greatest rewards you must continually invest in automation – and invest wisely.

To get the full ROI on your automation, you need to treat it like an employee. When you hire an employee, you invest in that person. You spend time and resources training and nurturing new employees so they can reach their full potential. The investment in a new employee is no different than your investment in automation.– Edwards

Measure the success of your automation program

Example of How to Estimate Dollar Value Impact of Automation
Metric Timeline Target Value
Hours of manual repetitive work 12 months 20% reduction $48,000/yr.(1)
Hours of project capacity 18 months 30% increase $108,000/yr.(2)
Downtime caused by errors 6 months 50% reduction $62,500/yr.(3)

1 15 FTEs x 80k/yr.; 20% of time on MRW, reduced by 20%
2 15 FTEs x 80k/yr.; 30% project capacity, increased by 30%
3 25k/hr. of downtime.; 5 hours per year of downtime caused by errors

Automating failover for disaster recovery

CASE STUDY

Industry Financial Services
Source Interview

Challenge

An IT infrastructure manager had established DR failover procedures, but these required a lot of manual work to execute. His team lacked the expertise to build automation for the failover.

Solution

The manager hired consultants to build scripts that would execute portions of the failover and pause at certain points to report on outcomes and ask the human operator whether to proceed with the next step.

Results

The infrastructure team reduced their achievable RTOs as follows:
Tier 1: 2.5h → 0.5h
Tier 2: 4h → 1.5h
Tier 3: 8h → 2.5h
And now, anyone on the team could execute the entire failover!

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

Reduce Manual Repetitive Work With IT Automation – project overview

1. Select Candidates 2. Map Process Flows 3. Build Process 4. Build Roadmap
Best-Practice Toolkit

1.1 Identify MRW pain points

1.2 Drill down pain points into tasks

1.3 Estimate the MRW involved in each task

1.4 Rank the tasks based on value and ease

1.5 Select top candidates and define metrics

1.6 Draft project charters

2.1 Map process flows

2.2 Review and optimize process flows

2.3 Clarify logic and finalize future-state process flows

3.1 Kick off your test plan for each automation

3.2 Define process for automation rollout

3.3 Define process to manage your automation program

3.4 Define metrics to measure success of your automation program

4.1 Build automation roadmap

Guided Implementations

Introduce methodology.

Review automation candidates.

Review success metrics.

Review process flows.

Review end-to-end process flows.

Review testing considerations.

Review automation SDLC.

Review automation program metrics.

Review automation roadmap.

Onsite Workshop Module 1:
Identify Automation Candidates
Module 2:
Map and Optimize Processes
Module 3:
Build a Process for Managing Automation
Module 4:
Build Automation Roadmap
Phase 1 Results:
Automation candidates and success metrics
Phase 2 Results:
End-to-end process flows for automation
Phase 3 Results:
Automation SDLC process, and automation program management process
Phase 4 Results:
Automation roadmap

Establish a Foresight Capability

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  • Parent Category Name: Innovation
  • Parent Category Link: /innovation
  • To be recognized and validated as a forward-thinking CIO, you must establish a structured approach to innovation that considers external trends as well as internal processes.
  • The CEO is expecting an investment in IT innovation to yield either cost reduction or revenue growth, but growth cannot happen without opportunity identification.

Our Advice

Critical Insight

  • Technological innovation is disrupting business models – and it’s happening faster than organizations can react.
  • Smaller, more agile organizations have an advantage because they have less resources tied to existing operations and can move faster.

Impact and Result

  • Be the disruptor, not the disrupted. This blueprint will help you plan proactively and identify opportunities before your competitors.
  • Strategic foresight gives you the tools you need to effectively process the signals in your environment, build an understanding of relevant trends, and turn this understanding into action.

Establish a Foresight Capability Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how to effectively apply strategic foresight, 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. Signal gathering

Develop a better understanding of your external environment and build a database of signals.

  • Establish a Foresight Capability – Phase 1: Signal Gathering
  • Foresight Process Tool

2. Trends and drivers

Select and analyze trends to uncover drivers.

  • Establish a Foresight Capability – Phase 2: Trends and Drivers

3. Scenario building

Use trends and drivers to build plausible scenarios and brainstorm strategic initiatives.

  • Establish a Foresight Capability – Phase 3: Scenario Building

4. Idea selection

Apply the wind tunneling technique to assess strategic initiatives and determine which are most likely to succeed in the face of uncertainty.

  • Establish a Foresight Capability – Phase 4: Idea Selection
[infographic]

Workshop: Establish a Foresight Capability

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

1 Pre-workshop – Gather Signals and Build a Repository

The Purpose

Note: this is preparation for the workshop and is not offered onsite.

Gather relevant signals that will inform your organization about what is happening in the external competitive environment.

Key Benefits Achieved

A better understanding of the competitive landscape.

Activities

1.1 Gather relevant signals.

1.2 Store signals in a repository for quick and easy recall during the workshop.

Outputs

A set of signal items ready for analysis

2 Identify Trends and Uncover Drivers

The Purpose

Uncover trends in your environment and assess their potential impact.

Determine the causal forces behind relevant trends to inform strategic decisions.

Key Benefits Achieved

An understanding of the underlying causal forces that are influencing a trend that is affecting your organization.

Activities

2.1 Cluster signals into trends.

2.2 Analyze trend impact and select a key trend.

2.3 Perform causal analysis.

2.4 Select drivers.

Outputs

A collection of relevant trends with a key trend selected

A set of drivers influencing the key trend with primary drivers selected

3 Build Scenarios and Ideate

The Purpose

Leverage your understanding of trends and drivers to build plausible scenarios and apply them as a canvas for ideation.

Key Benefits Achieved

A set of potential responses or reactions to trends that are affecting your organization.

Activities

3.1 Build scenarios.

3.2 Brainstorm potential strategic initiatives (ideation).

Outputs

Four plausible scenarios for ideation purposes

A potential strategic initiative that addresses each scenario

4 Apply Wind Tunneling and Select Ideas

The Purpose

Assess the various ideas based on which are most likely to succeed in the face of uncertainty.

Key Benefits Achieved

An idea that you have tested in terms of risk and uncertainty.

An idea that can be developed and pitched to the business or stored for later use. 

Activities

4.1 Assign probabilities to scenarios.

4.2 Apply wind tunneling.

4.3 Select ideas.

4.4 Discuss next steps and prototyping.

Outputs

A strategic initiative (idea) that is ready to move into prototyping

Develop an Availability and Capacity Management Plan

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  • Parent Category Name: Availability & Capacity Management
  • Parent Category Link: /availability-and-capacity-management
  • It is crucial for capacity managers to provide capacity in advance of need to maximize availability.
  • In an effort to ensure maximum uptime, organizations are overprovisioning (an average of 59% for compute, and 48% for storage). With budget pressure mounting (especially on the capital side), the cost of this approach can’t be ignored.
  • Half of organizations have experienced capacity-related downtime, and almost 60% wait more than three months for additional capacity.

Our Advice

Critical Insight

  • All too often capacity management is left as an afterthought. The best capacity managers bake capacity management into their organization’s business processes, becoming drivers of value.
  • Communication is key. Build bridges between your organization’s silos, and involve business stakeholders in a dialog about capacity requirements.

Impact and Result

  • Map business metrics to infrastructure component usage, and use your organization’s own data to forecast demand.
  • Project future needs in line with your hardware lifecycle. Never suffer availability issues as a result of a lack of capacity again.
  • Establish infrastructure as a driver of business value, not a “black hole” cost center.

Develop an Availability and Capacity Management Plan Research & Tools

Start here – read the Executive Brief

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

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

  • Develop an Availability and Capacity Management Plan – Phases 1-4

1. Conduct a business impact analysis

Determine the most critical business services to ensure availability.

  • Develop an Availability and Capacity Management Plan – Phase 1: Conduct a Business Impact Analysis
  • Business Impact Analysis Tool

2. Establish visibility into core systems

Craft a monitoring strategy to gather usage data.

  • Develop an Availability and Capacity Management Plan – Phase 2: Establish Visibility into Core Systems
  • Capacity Snapshot Tool

3. Solicit and incorporate business needs

Integrate business stakeholders into the capacity management process.

  • Develop an Availability and Capacity Management Plan – Phase 3: Solicit and Incorporate Business Needs
  • Capacity Plan Template

4. Identify and mitigate risks

Identify and mitigate risks to your capacity and availability.

  • Develop an Availability and Capacity Management Plan – Phase 4: Identify and Mitigate Risks

[infographic]

Workshop: Develop an Availability and Capacity Management Plan

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

1 Conduct a Business Impact Analysis

The Purpose

Determine the most important IT services for the business.

Key Benefits Achieved

Understand which services to prioritize for ensuring availability.

Activities

1.1 Create a scale to measure different levels of impact.

1.2 Evaluate each service by its potential impact.

1.3 Assign a criticality rating based on the costs of downtime.

Outputs

RTOs/RPOs

List of gold systems

Criticality matrix

2 Establish Visibility Into Core Systems

The Purpose

Monitor and measure usage metrics of key systems.

Key Benefits Achieved

Capture and correlate data on business activity with infrastructure capacity usage.

Activities

2.1 Define your monitoring strategy.

2.2 Implement your monitoring tool/aggregator.

Outputs

RACI chart

Capacity/availability monitoring strategy

3 Develop a Plan to Project Future Needs

The Purpose

Determine how to project future capacity usage needs for your organization.

Key Benefits Achieved

Data-based, systematic projection of future capacity usage needs.

Activities

3.1 Analyze historical usage trends.

3.2 Interface with the business to determine needs.

3.3 Develop a plan to combine these two sources of truth.

Outputs

Plan for soliciting future needs

Future needs

4 Identify and Mitigate Risks

The Purpose

Identify potential risks to capacity and availability.

Develop strategies to ameliorate potential risks.

Key Benefits Achieved

Proactive approach to capacity that addresses potential risks before they impact availability.

Activities

4.1 Identify capacity and availability risks.

4.2 Determine strategies to address risks.

4.3 Populate and review completed capacity plan.

Outputs

List of risks

List of strategies to address risks

Completed capacity plan

Further reading

Develop an Availability and Capacity Management Plan

Manage capacity to increase uptime and reduce costs.

ANALYST PERSPECTIVE

The cloud changes the capacity manager’s job, but it doesn’t eliminate it.

"Nobody doubts the cloud’s transformative power. But will its ascent render “capacity manager” an archaic term to be carved into the walls of datacenters everywhere for future archaeologists to puzzle over? No. While it is true that the cloud has fundamentally changed how capacity managers do their jobs , the process is more important than ever. Managing capacity – and, by extent, availability – means minimizing costs while maximizing uptime. The cloud era is the era of unlimited capacity – and of infinite potential costs. If you put the infinity symbol on a purchase order… well, it’s probably not a good idea. Manage demand. Manage your capacity. Manage your availability. And, most importantly, keep your stakeholders happy. You won’t regret it."

Jeremy Roberts,

Consulting Analyst, Infrastructure Practice

Info-Tech Research Group

Availability and capacity management transcend IT

This Research Is Designed For:

✓ CIOs who want to increase uptime and reduce costs

✓ Infrastructure managers who want to deliver increased value to the business

✓ Enterprise architects who want to ensure stability of core IT services

✓ Dedicated capacity managers

This Research Will Help You:

✓ Develop a list of core services

✓ Establish visibility into your system

✓ Solicit business needs

✓ Project future demand

✓ Set SLAs

✓ Increase uptime

✓ Optimize spend

This Research Will Also Assist:

✓ Project managers

✓ Service desk staff

This Research Will Help Them:

✓ Plan IT projects

✓ Better manage availability incidents caused by lack of capacity

Executive summary

Situation

  • IT infrastructure leaders are responsible for ensuring that the business has access to the technology needed to keep the organization humming along. This requires managing capacity and availability.
  • Dependencies go undocumented. Services are provided on an ad hoc basis, and capacity/availability are managed reactively.

Complication

  • Organizations are overprovisioning an average of 59% for compute, and 48% for storage. This is expensive. With budget pressure mounting, the cost of this approach can’t be ignored.
  • Lead time to respond to demand is long. Half of organizations have experienced capacity-related downtime, and almost 60% wait 3+ months for additional capacity. (451 Research, 3)

Resolution

  • Conduct a business impact analysis to determine which of your services are most critical, and require active capacity management that will reap more in benefits than it produces in costs.
  • Establish visibility into your system. You can’t track what you can’t see, and you can’t see when you don’t have proper monitoring tools in place.
  • Develop an understanding of business needs. Use a combination of historical trend analyses and consultation with line of business and project managers to separate wants from needs. Overprovisioning used to be necessary, but is no longer required.
  • Project future needs in line with your hardware lifecycle. Never suffer availability issues as a result of a lack of capacity again.

Info-Tech Insight

  1. Components are critical. The business doesn’t care about components. You, however, are not so lucky…
  2. Ask what the business is working on, not what they need. If you ask them what they need, they’ll tell you – and it won’t be cheap. Find out what they’re going to do, and use your expertise to service those needs.
  3. Cloud shmoud. The role of the capacity manager is changing with the cloud, but capacity management is as important as ever.

Save money and drive efficiency with an effective availability and capacity management plan

Overprovisioning happens because of the old style of infrastructure provisioning (hardware refresh cycles) and because capacity managers don’t know how much they need (either as a result of inaccurate or nonexistent information).

According to 451 Research, 59% of enterprises have had to wait 3+ months for new capacity. It is little wonder, then, that so many opt to overprovision. Capacity management is about ensuring that IT services are available, and with lead times like that, overprovisioning can be more attractive than the alternative. Fortunately there is hope. An effective availability and capacity management plan can help you:

  • Identify your gold systems
  • Establish visibility into them
  • Project your future capacity needs

Balancing overprovisioning and spending is the capacity manager’s struggle.

Availability and capacity management go together like boots and feet

Availability and capacity are not the same, but they are related and can be effectively managed together as part of a single process.

If an IT department is unable to meet demand due to insufficient capacity, users will experience downtime or a degradation in service. To be clear, capacity is not the only factor in availability – reliability, serviceability, etc. are significant as well. But no organization can effectively manage availability without paying sufficient attention to capacity.

"Availability Management is concerned with the design, implementation, measurement and management of IT services to ensure that the stated business requirements for availability are consistently met."

– OGC, Best Practice for Service Delivery, 12

"Capacity management aims to balance supply and demand [of IT storage and computing services] cost-effectively…"

– OGC, Business Perspective, 90

Integrate the three levels of capacity management

Successful capacity management involves a holistic approach that incorporates all three levels.

Business The highest level of capacity management, business capacity management, involves predicting changes in the business’ needs and developing requirements in order to make it possible for IT to adapt to those needs. Influx of new clients from a failed competitor.
Service Service capacity management focuses on ensuring that IT services are monitored to determine if they are meeting pre-determined SLAs. The data gathered here can be used for incident and problem management. Increased website traffic.
Component Component capacity management involves tracking the functionality of specific components (servers, hard drives, etc.), and effectively tracking their utilization and performance, and making predictions about future concerns. Insufficient web server compute.

The C-suite cares about business capacity as part of the organization’s strategic planning. Service leads care about their assigned services. IT infrastructure is concerned with components, but not for their own sake. Components mean services that are ultimately designed to facilitate business.

A healthcare organization practiced poor capacity management and suffered availability issues as a result

CASE STUDY

Industry: Healthcare

Source: Interview

New functionalities require new infrastructure

There was a project to implement an elastic search feature. This had to correlate all the organization’s member data from an Oracle data source and their own data warehouse, and pool them all into an elastic search index so that it could be used by the provider portal search function. In estimating the amount of space needed, the infrastructure team assumed that all the data would be shared in a single place. They didn’t account for the architecture of elastic search in which indexes are shared across multiple nodes and shards are often split up separately.

Beware underestimating demand and hardware sourcing lead times

As a result, they vastly underestimated the amount of space that was needed and ended up short by a terabyte. The infrastructure team frantically sourced more hardware, but the rush hardware order arrived physically damaged and had to be returned to the vendor.

Sufficient budget won’t ensure success without capacity planning

The project’s budget had been more than sufficient to pay for the extra necessary capacity, but because a lack of understanding of the infrastructure impact resulted in improper forecasting, the project ended up stuck in a standstill.

Manage availability and keep your stakeholders happy

If you run out of capacity, you will inevitably encounter availability issues like downtime and performance degradation . End users do not like downtime, and neither do their managers.

There are three variables that are monitored, measured, and analyzed as part of availability management more generally (Valentic).

    1. Uptime:

The availability of a system is the percentage of time the system is “up,” (and not degraded) which can be calculated using the following formula: uptime/(uptime + downtime) x 100%. The more components there are in a system, the lower the availability, as a rule.

    1. Reliability:

The length of time a component/service can go before there is an outage that brings it down, typically measured in hours.

    1. Maintainability:

The amount of time it takes for a component/service to be restored in the event of an outage, also typically measured in hours.

Enter the cloud: changes in the capacity manager role

There can be no doubt – the rise of the public cloud has fundamentally changed the nature of capacity management.

Features of the public cloudImplications for capacity management
Instant, or near-instant, instantiation Lead times drop; capacity management is less about ensuring equipment arrives on time.
Pay-as-you go services Capacity no longer needs to be purchased in bulk. Pay only for what you use and shut down instances that are no longer necessary.
Essentially unlimited scalability Potential capacity is infinite, but so are potential costs.
Offsite hosting Redundancy, but at the price of the increasing importance of your internet connection.

Vendors will sell you the cloud as a solution to your capacity/availability problems

The image contains two graphs. The first graph on the left is titled: Reactive Management, and shows the struggling relationship between capacity and demand. The second graph on the right is titled: Cloud future (ideal), which demonstrates a manageable relationship between capacity and demand over time.

Traditionally, increases in capacity have come in bursts as a reaction to availability issues. This model inevitably results in overprovisioning, driving up costs. Access to the cloud changes the equation. On-demand capacity means that, ideally, nobody should pay for unused capacity.

Reality check: even in the cloud era, capacity management is necessary

You will likely find vendors to nurture the growth of a gap between your expectations and reality. That can be damaging.

The cloud reality does not look like the cloud ideal. Even with the ostensibly elastic cloud, vendors like the consistency that longer-term contracts offer. Enter reserved instances: in exchange for lower hourly rates, vendors offer the option to pay a fee for a reserved instance. Usage beyond the reserved will be billed at a higher hourly rate. In order to determine where that line should be drawn, you should engage in detailed capacity planning. Unfortunately, even when done right, this process will result in some overprovisioning, though it does provide convenience from an accounting perspective. The key is to use spot instances where demand is exceptional and bounded. Example: A university registration server that experiences exceptional demand at the start of term but at no other time.

The image contains an example of cloud reality not matching with the cloud ideal in the form of a graph. The graph is split horizontally, the top half is red, and there is a dotted line splitting it from the lower half. The line is labelled: Reserved instance ceiling. In the bottom half, it is the colour green and has a curving line.

Use best practices to optimize your cloud resources

The image contains two graphs. The graph on the left is labelled: Ineffective reserve capacity. At the top of the graph is a dotted line labelled: Reserved Instance ceiling. The graph is measuring capacity requirements over time. There is a curved line on the graph that suddenly spikes and comes back down. The spike is labelled unused capacity. The graph on the right is labelled: Effective reserve capacity. The reserved instance ceiling is about halfway down this graph, and it is comparing capacity requirements over time. This graph has a curved line on it, also has a spike and is labelled: spot instance.

Even in the era of elasticity, capacity planning is crucial. Spot instances – the spikes in the graph above – are more expensive, but if your capacity needs vary substantially, reserving instances for all of the space you need can cost even more money. Efficiently planning capacity will help you draw this line.

Evaluate business impact; not all systems are created equal

Limited resources are a reality. Detailed visibility into every single system is often not feasible and could be too much information.

Simple and effective. Sometimes a simple display can convey all of the information necessary to manage critical systems. In cars it is important to know your speed, how much fuel is in the tank, and whether or not you need to change your oil/check your engine.

Where to begin?! Specialized information is sometimes necessary, but it can be difficult to navigate.

Take advantage of a business impact analysis to define and understand your critical services

Ideally, downtime would be minimal. In reality, though, downtime is a part of IT life. It is important to have realistic expectations about its nature and likelihood.

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

Record applications and dependencies

Utilize your asset management records and document the applications and systems that IT is responsible for managing and recovering during a disaster.

Define impact scoring scale

Ensure an objective analysis of application criticality by establishing a business impact scale that applies to all applications.

Estimate impact of downtime

Leverage the scoring criteria from the previous step and establish an estimated impact of downtime for each application.

Identify desired RTO and RPO

Define what the RTOs/RPOs should be based on the impact of a business interruption and the tolerance for downtime and data loss.

Determine current RTO/RPO

Conduct tabletop planning and create a flowchart of your current capabilities. Compare your current state to the desired state from the previous step.

Info-Tech Insight

According to end users, every system is critical and downtime is intolerable. Of course, once they see how much totally eliminating downtime can cost, they might change their tune. It is important to have this discussion to separate the critical from the less critical – but still important – services.

Establish visibility into critical systems

You may have seen “If you can’t measure it, you can’t manage it” or a variation thereof floating around the internet. This adage is consumable and makes sense…doesn’t it?

"It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth."

– W. Edwards Deming, statistician and management consultant, author of The New Economics

While it is true that total monitoring is not absolutely necessary for management, when it comes to availability and capacity – objectively quantifiable service characteristics – a monitoring strategy is unavoidable. Capturing fluctuations in demand, and adjusting for those fluctuations, is among the most important functions of a capacity manager, even if hovering over employees with a stopwatch is poor management.

Solicit needs from line of business managers

Unless you head the world’s most involved IT department (kudos if you do) you’re going to have to determine your needs from the business.

Do

Do not

✓ Develop a positive relationship with business leaders responsible for making decisions.

✓ Make yourself aware of ongoing and upcoming projects.

✓ Develop expertise in organization-specific technology.

✓ Make the business aware of your expenses through chargebacks or showbacks.

✓ Use your understanding of business projects to predict business needs; do not rely on business leaders’ technical requests alone.

X Be reactive.

X Accept capacity/availability demands uncritically.

X Ask line of business managers for specific computing requirements unless they have the technical expertise to make informed judgments.

X Treat IT as an opaque entity where requests go in and services come out (this can lead to irresponsible requests).

Demand: manage or be managed

You might think you can get away with uncritically accepting your users’ demands, but this is not best practice. If you provide it, they will use it.

The company meeting

“I don’t need this much RAM,” the application developer said, implausibly. Titters wafted above the assembled crowd as her IT colleagues muttered their surprise. Heads shook, eyes widened. In fact, as she sat pondering her utterance, the developer wasn’t so sure she believed it herself. Noticing her consternation, the infrastructure manager cut in and offered the RAM anyway, forestalling the inevitable crisis that occurs when seismic internal shifts rock fragile self-conceptions. Until next time, he thought.

"Work expands as to fill the resources available for its completion…"

– C. Northcote Parkinson, quoted in Klimek et al.

Combine historical data with the needs you’ve solicited to holistically project your future needs

Predicting the future is difficult, but when it comes to capacity management, foresight is necessary.

Critical inputs

In order to project your future needs, the following inputs are necessary.

  1. Usage trends: While it is true that past performance is no indication of future demand, trends are still a good way to validate requests from the business.
  2. Line of business requests: An understanding of the projects the business has in the pipes is important for projecting future demand.
  3. Institutional knowledge: Read between the lines. As experts on information technology, the IT department is well-equipped to translate needs into requirements.
The image contains a graph that is labelled: Projected demand, and graphs demand over time. There is a curved line that passes through a vertical line labelled present. There is a box on top of the graph that contains the text: Note: confidence in demand estimates will very by service and by stakeholder.

Follow best practice guidelines to maximize the efficiency of your availability and capacity management process

The image contains Info-Tech's IT Management & Governance Framework. The framework displays many of Info-Tech's research to help optimize and improve core IT processes. The name of this blueprint is under the Infrastructure & Operations section, and has been circled to point out where it is in the framework.

Understand how the key frameworks relate and interact

The image contains a picture of the COBIT 5 logo.

BA104: Manage availability and capacity

  • Current state assessment
  • Forecasting based on business requirements
  • Risk assessment of planning and implementation of requirements
The image contains a picture of the ITIL logo

Availability management

  • Determine business requirements
  • Match requirements to capabilities
  • Address any mismatch between requirements and capabilities in a cost-effective manner

Capacity management

  • Monitoring services and components
  • Tuning for efficiency
  • Forecasting future requirements
  • Influencing demand
  • Producing a capacity plan
The image contains a picture of Info-Tech Research Group logo.

Availability and capacity management

  • Conduct a business impact analysis
  • Establish visibility into critical systems
  • Solicit and incorporate business needs
  • Identify and mitigate risks

Disaster recovery and business continuity planning are forms of availability management

The scope of this project is managing day-to-day availability, largely but not exclusively, in the context of capacity. For additional important information on availability, see the following Info-Tech projects.

    • Develop a Business Continuity Plan

If your focus is on ensuring process continuity in the event of a disaster.

    • Establish a Program to Enable Effective Performance Monitoring

If your focus is on flow mapping and transaction monitoring as part of a plan to engage APM vendors.

    • Create a Right-Sized Disaster Recovery Plan

If your focus is on hardening your IT systems against major events.

Info-Tech’s approach to availability and capacity management is stakeholder-centered and cloud ready

Phase 1:

Conduct a business impact analysis

Phase 2:

Establish visibility into core systems

Phase 3:

Solicit and incorporate business needs

Phase 4:

Identify and mitigate risks

1.1 Conduct a business impact analysis

1.2 Assign criticality ratings to services

2.1 Define your monitoring strategy

2.2 Implement monitoring tool/aggregator

3.1 Solicit business needs

3.2 Analyze data and project future needs

4.1 Identify and mitigate risks

Deliverables

  • Business impact analysis
  • Gold systems
  • Monitoring strategy
  • List of stakeholders
  • Business needs
  • Projected capacity needs
  • Risks and mitigations
  • Capacity management summary cards

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

DIY Toolkit

“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

Guided Implementation

“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

Workshop

“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

Consulting

“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

Diagnostics and consistent frameworks used throughout all four options

Availability & capacity management – project overview

 

Conduct a business impact analysis

Establish visibility into core systems

Solicit and incorporate business needs

Identify and
mitigate risks

Best-Practice Toolkit

1.1 Create a scale to measure different levels of impact

1.2 Assign criticality ratings to services

2.1 Define your monitoring strategy

2.2 Implement your monitoring tool/aggregator

3.1 Solicit business needs and gather data

3.2 Analyze data and project future needs

4.1 Identify and mitigate risks

Guided Implementations

Call 1: Conduct a business impact analysis Call 1: Discuss your monitoring strategy

Call 1: Develop a plan to gather historical data; set up plan to solicit business needs

Call 2: Evaluate data sources

Call 1: Discuss possible risks and strategies for risk mitigation

Call 2: Review your capacity management plan

Onsite Workshop

Module 1:

Conduct a business impact analysis

Module 2:

Establish visibility into core systems

Module 3:

Develop a plan to project future needs

Module 4:

Identify and mitigate risks

 

Phase 1 Results:

  • RTOs/RPOs
  • List of gold systems
  • Criticality matrix

Phase 2 Results:

  • Capacity/availability monitoring strategy

Phase 3 Results:

  • Plan for soliciting future needs
  • Future needs

Phase 4 Results:

  • Strategies for reducing risks
  • Capacity management plan

Workshop overview

Contact your account representative or email Workshops@InfoTech.com for more information.

 

Workshop Day 1

Workshop Day 2

Workshop Day 3

Workshop Day 4

 

Conduct a business
impact analysis

Establish visibility into
core systems

Solicit and incorporate business needs

Identify and mitigate risks

Activities

1.1 Conduct a business impact analysis

1.2 Create a list of critical dependencies

1.3 Identify critical sub-components

1.4 Develop best practices to negotiate SLAs

2.1 Determine indicators for sub-components

2.2 Establish visibility into components

2.3 Develop strategies to ameliorate visibility issues

3.1 Gather relevant business-level data

3.2 Gather relevant service-level data

3.3 Analyze historical trends

3.4 Build a list of business stakeholders

3.5 Directly solicit requirements from the business

3.6 Map business needs to technical requirements

3.7 Identify inefficiencies and compare historical data

  • 4.1 Brainstorm potential causes of availability and capacity risk
  • 4.2 Identify and mitigate capacity risks
  • 4.3 Identify and mitigate availability risks

Deliverables

  1. Business impact analysis
  2. List of gold systems
  3. SLA best practices
  1. Sub-component metrics
  2. Strategy to establish visibility into critical sub-components
  1. List of stakeholders
  2. Business requirements
  3. Technical requirements
  4. Inefficiencies
  1. Strategies for mitigating risks
  2. Completed capacity management plan template

PHASE 1

Conduct a Business Impact Analysis

Step 1.1: Conduct a business impact analysis

This step will walk you through the following activities:

  • Record applications and dependencies in the Business Impact Analysis Tool.
  • Define a scale to estimate the impact of various applications’ downtime.
  • Estimate the impact of applications’ downtime.

This involves the following participants:

  • Capacity manager
  • Infrastructure team

Outcomes of this step

  • Estimated impact of downtime for various applications

Execute a business impact analysis (BIA) as part of a broader availability plan

1.1a Business Impact Analysis Tool

Business impact analyses are an invaluable part of a broader IT strategy. Conducting a BIA benefits a variety of processes, including disaster recovery, business continuity, and availability and capacity management

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

Record applications and dependencies

Utilize your asset management records and document the applications and systems that IT is responsible for managing and recovering during a disaster.

Define impact scoring scale

Ensure an objective analysis of application criticality by establishing a business impact scale that applies to all applications.

Estimate impact of downtime

Leverage the scoring criteria from the previous step and establish an estimated impact of downtime for each application.

Identify desired RTO and RPO

Define what the RTOs/RPOs should be based on the impact of a business interruption and the tolerance for downtime and data loss.

Determine current RTO/RPO

Conduct tabletop planning and create a flowchart of your current capabilities. Compare your current state to the desired state from the previous step.

Info-Tech Insight

Engaging in detailed capacity planning for an insignificant service draws time and resources away from more critical capacity planning exercises. Time spent tracking and planning use of the ancient fax machine in the basement is time you’ll never get back.

Control the scope of your availability and capacity management planning project with a business impact analysis

Don’t avoid conducting a BIA because of a perception that it’s too onerous or not necessary. If properly managed, as described in this blueprint, the BIA does not need to be onerous and the benefits are tangible.

A BIA enables you to identify appropriate spend levels, continue to drive executive support, and prioritize disaster recovery planning for a more successful outcome. For example, an Info-Tech survey found that a BIA has a significant impact on setting appropriate recovery time objectives (RTOs) and appropriate spending.

The image contains a graph that is labelled: BIA Impact on Appropriate RTOS. With no BIA, there is 59% RTOs are appropriate. With BIA, there is 93% RTOS being appropriate. The image contains a graph that is labelled: BIA Impact on Appropriate Spending. No BIA has 59% indication that BCP is cost effective. With a BIA there is 86% indication that BCP is cost effective.

Terms

No BIA: lack of a BIA, or a BIA bases solely on the perceived importance of IT services.

BIA: based on a detailed evaluation or estimated dollar impact of downtime.

Source: Info-Tech Research Group; N=70

Select the services you wish to evaluate with the Business Impact Analysis Tool

1.1b 1 hour

In large organizations especially, collating an exhaustive list of applications and services is going to be onerous. For the purposes of this project, a subset should suffice.

Instructions

  1. Gather a diverse group of IT staff and end users in a room with a whiteboard.
  2. Solicit feedback from the group. Questions to ask:
  • What services do you regularly use? What do you see others using? (End users)
  • Which service inspires the greatest number of service calls? (IT)
  • What services are you most excited about? (Management)
  • What services are the most critical for business operations? (Everybody)
  • Record these applications in the Business Impact Analysis Tool.
  • Input

    • Applications/services

    Output

    • Candidate applications for the business impact analysis

    Materials

    • Whiteboard
    • Markers

    Participants

    • Infrastructure manager
    • Enterprise architect
    • Application owners
    • End users

    Info-Tech Insight

    Include a variety of services in your analysis. While it might be tempting to jump ahead and preselect important applications, don’t. The process is inherently valuable, and besides, it might surprise you.

    Record the applications and dependencies in the BIA tool

    1.1c Use tab 1 of the Business Impact Analysis Tool

    1. In the Application/System column, list the applications identified for this pilot as well as the Core Infrastructure category. Also indicate the Impact on the Business and Business Owner.
    2. List the dependencies for each application in the appropriate columns:
    • Hosted On-Premises (In-House) – If the physical equipment is in a facility you own, record it here, even if it is managed by a vendor.
    • Hosted by a Co-Lo/MSP – List any dependencies hosted by a co-lo/MSP vendor.
    • Cloud (includes "as a Service”) – List any dependencies hosted by a cloud vendor.

    Note: If there are no dependencies for a particular category, leave it blank.

  • If you wish to highlight specific dependencies, put an asterisk in front of them (e.g. *SAN). This will cause the dependency to be highlighted in the remaining tabs in this tool.
  • Add comments as needed in the Notes columns. For example, for equipment that you host in-house but is remotely managed by an MSP, specify this in the notes. Similarly, note any DR support services.
  • Example

    The image contains a screenshot of Info-Tech's Business Impact Analysis Tool specifically tab 1.

    ID is optional. It is a sequential number by default.

    In-House, Co-Lo/MSP, and Cloud dependencies; leave blank if not applicable.

    Add notes as applicable – e.g. critical support services.

    Define a scoring scale to estimate different levels of impact

    1.1d Use tab 2 of the Business Impact Analysis Tool

    Modify the Business Impact Scales headings and Overall Criticality Rating terminology to suit your organization. For example, if you don’t have business partners, use that column to measure a different goodwill impact or just ignore that column in this tool (i.e. leave it blank). Estimate the different levels of potential impact (where four is the highest impact and zero is no impact) and record these in the Business Impact Scales columns.

    The image contains a screenshot of Info-Tech's Business Impact Analysis Tool, specifically tab 2.

    Estimate the impact of downtime for each application

    1.1e Use tab 3 of the Business Impact Analysis Tool

    In the BIA tab columns for Direct Costs of Downtime, Impact on Goodwill, and Additional Criticality Factors, use the drop-down menu to assign a score of zero to four based on levels of impact defined in the Scoring Criteria tab. For example, if an organization’s ERP is down, and that affects call center sales operations (e.g. ability to access customer records and process orders), the impact might be as described below:

      • Loss of Revenue might score a two or three depending on the proportion of overall sales lost due to the downtime.
      • The Impact on Customers might be a one or two depending on the extent that existing customers might be using the call center to purchase new products or services, and are frustrated by the inability to process orders.
      • The Legal/Regulatory Compliance and Health or Safety Risk might be a zero.

    On the other hand, if payroll processing is down, this may not impact revenue, but it certainly impacts internal goodwill and productivity.

    Rank service criticality: gold, silver, and bronze

    Gold

    Mission critical services. An outage is catastrophic in terms of cost or public image/goodwill. Example: trading software at a financial institution.

    Silver

    Important to daily operations, but not mission critical. Example: email services at any large organization.

    Bronze

    Loss of these services is an inconvenience more than anything, though they do serve a purpose and will be missed if they are never brought back online. Example: ancient fax machines.

    Info-Tech Best Practice

    Info-Tech recommends gold, silver, and bronze because of this typology’s near universal recognition. If you would prefer a particular designation (it might help with internal comprehension), don’t hesitate to use that one instead.

    Use the results of the business impact analysis to sort systems based on their criticality

    1.1f 1 hour

    Every organization has its own rules about how to categorize service importance. For some (consumer-facing businesses, perhaps) reputational damage may trump immediate costs.

    Instructions

    1. Gather a group of key stakeholders and project the completed Business Impact Analysis Tool onto a screen for them.
    2. Share the definitions of gold, silver, and bronze services with them (if they are not familiar), and begin sorting the services by category,
    • How long would it take to notice if a particular service went out?
    • How important are the non-quantifiable damages that could come with an outage?
  • Sort the services into gold, silver, and bronze on a whiteboard, with sticky notes, or with chart paper.
  • Verify your findings and record them in section 2.1 of the Capacity Plan Template.
  • Input

    • Results of the business impact analysis exercise

    Output

    • List of gold, silver, and bronze systems

    Materials

    • Projector
    • Business Impact Analysis Tool
    • Capacity Plan Template

    Participants

    • Infrastructure manager
    • Enterprise architect

    Leverage the rest of the BIA tool as part of your disaster recovery planning

    Disaster recovery planning is a critical activity, and while it is a sort of availability management, it is beyond this project’s scope. You can complete the business impact analysis (including RTOs and RPOs) for the complete disaster recovery package.

    See Info-Tech’s Create a Right-Sized Disaster Recovery Plan blueprint for instructions on how to complete your business impact analysis.

    Step 1.2: Assign criticality ratings to services

    This step will walk you through the following activities:

    • Create a list of dependencies for your most important applications.
    • Identify important sub-components.
    • Use best practices to develop and negotiate SLAs.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team

    Outcomes of this step

    • List of dependencies of most important applications
    • List of important sub-components
    • SLAs based on best practices

    Determine the base unit of the capacity you’re looking to purchase

    Not every IT organization should approach capacity the same way. Needs scale, and larger organizations will inevitably deal in larger quantities.

    Large cloud provider

    Local traditional business

    • Thousands of servers housed in a number of datacenters around the world.
    • Dedicated capacity manager.
    • Purchases components from OEMs in bulk as part of bespoke contracts that are worth many millions of dollars over time.
    • May deal with components at a massive scale (dozens of servers at once, for example).
    • A small server room that runs non-specialized services (email, for example).
    • Barely even a dedicated IT person, let alone an IT capacity manager.
    • Purchases new components from resellers or even retail stores.
    • Deals with components at a small scale (a single switch here, a server upgrade there).

    "Cloud capacity management is not exactly the same as the ITIL version because ITIL has a focus on the component level. I actually don’t do that, because if I did I’d go crazy. There’s too many components in a cloud environment."

    – Richie Mendoza, IT Consultant, SMITS Inc.

    Consider the relationship between component capacity and service capacity

    End users’ thoughts about IT are based on what they see. They are, in other words, concerned with service availability: does the organization have the ability to provide access to needed services?

    Service

    • Email
    • CRM
    • ERP

    Component

    • Switch
    • SMTP server
    • Archive database
    • Storage

    "You don’t ask the CEO or the guy in charge ‘What kind of response time is your requirement?’ He doesn’t really care. He just wants to make sure that all his customers are happy."

    – Todd Evans, Capacity and Performance Management SME, IBM.

    One telco solved its availability issues by addressing component capacity issues

    CASE STUDY

    Industry: Telecommunications

    Source: Interview

    Coffee and Wi-Fi – a match made in heaven

    In tens of thousands of coffee shops around the world, patrons make ample use of complimentary Wi-Fi. Wi-Fi is an important part of customers’ coffee shop experience, whether they’re online to check their email, do a YouTube, or update their Googles. So when one telco that provided Wi-Fi access for thousands of coffee shops started encountering availability issues, the situation was serious.

    Wi-Fi, whack-a-mole, and web woes

    The team responsible for resolving the issue took an ad hoc approach to resolving complaints, fixing issues as they came up instead of taking a systematic approach.

    Resolution

    Looking at the network as a whole, the capacity manager took a proactive approach by using data to identify and rank the worst service areas, and then directing the team responsible to fix those areas in order of the worst first, then the next worst, and so on. Soon the availability of Wi-Fi service was restored across the network.

    Create a list of dependencies for your most important applications

    1.2a 1.5 hours

    Instructions

    1. Work your way down the list of services outlined in step 1, starting with your gold systems. During the first iteration of this exercise select only 3-5 of your most important systems.
    2. Write the name of each application on a sticky note or at the top of a whiteboard (leaving ample space below for dependency mapping).
    3. In the first tier below the application, include the specific services that the general service provides.
    • This will vary based on the service in question, but an example for email is sending, retrieving, retrieving online, etc.
  • For each of the categories identified in step 3, identify the infrastructure components that are relevant to that system. Be broad and sweeping; if the component is involved in the service, include it here. The goal is to be exhaustive.
  • Leave the final version of the map intact. Photographing or making a digital copy for posterity. It will be useful in later activities.
  • Input

    • List of important applications

    Output

    • List of critical dependencies

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Infrastructure manager
    • Enterprise architect

    Info-Tech Insight

    Dependency mapping can be difficult. Make sure you don’t waste effort creating detailed dependency maps for relatively unimportant services.

    Dependency mapping can be difficult. Make sure you don’t waste effort creating detailed dependency maps for relatively unimportant services.

    The image contains a sample dependency map on ride sharing. Ride Sharing has been split between two categories: Application and Drivers. Under drivers it branches out to: Availability, Car, and Pay. Under Application, it branches out to: Compute, Network, Edge devices, Q/A maintenance, and Storage. Compute branches out to Cloud Services. Network branches out to Cellular network and Local. Edge Devices branch out to Drivers and Users. Q/A maintenance does not have a following branch. Storage branches out to Storage (Enterprise) and Storage (local).

    Ride sharing cannot work, at least not at maximum effectiveness, without these constituent components. When one or more of these components are absent or degraded, the service will become unavailable. This example illustrates some challenges of capacity management; some of these components are necessary, but beyond the ride-sharing company’s control.

    Leverage a sample dependency tree for a common service

    The image contains a sample dependency tree for the Email service. Email branches out to: Filtering, Archiving, Retrieval, and Send/receive. Filtering branches out to security appliance which then branches out to CPU, Storage, and Network. Archiving branches to Archive server, which branches out to CPU, Storage, and Network. Retrieval branches out to IMAP/PoP which branches out to CPU, Storage, and Network. Send/receive branches out to IMAP/PoP and SMTP. SMTP branches out to CPU, Storage and Network.

    Info-Tech Best Practice

    Email is an example here not because it is necessarily a “gold system,” but because it is common across industries. This is a useful exercise for any service, but it can be quite onerous, so it should be conducted on the most important systems first.

    Separate the wheat from the chaff; identify important sub-components and separate them from unimportant ones

    1.2b 1.5 hours

    Use the bottom layer of the pyramid drawn in step 1.2a for a list of important sub-components.

    Instructions

    1. Record a list of the gold services identified in the previous activity. Leave space next to each service for sub-components.
    2. Go through each relevant sub-component. Highlight those that are critical and could reasonably be expected to cause problems.
    • Has this sub-component caused a problem in the past?
    • Is this sub-component a bottleneck?
    • What could cause this component to fail? Is it such an occurrence feasible?
  • Record the results of the exercise (and the service each sub-component is tied to) in tab 2 (columns B &C) of the Capacity Snapshot Tool.
  • Input

    • List of important applications

    Output

    • List of critical dependencies

    Materials

    • Whiteboard
    • Markers

    Participants

    • Infrastructure manager
    • Enterprise architect

    Understand availability commitments with SLAs

    With the rise of SaaS, cloud computing, and managed services, critical services and their components are increasingly external to IT.

    • IT’s lack of access to the internal working of services does not let them off the hook for performance issues (as much as that might be the dream).
    • Vendor management is availability management. Use the dependency map drawn earlier in this phase to highlight the components of critical services that rely on capacity that cannot be managed internally.
    • For each of these services ensure that an appropriate SLA is in place. When acquiring new services, ensure that the vendor SLA meets business requirements.

    The image contains a large blue circle labelled: Availability. Also in the blue circle is a small red circle labelled: Capacity.

    In terms of service provision, capacity management is a form of availability management. Not all availability issues are capacity issues, but the inverse is true.

    Info-Tech Insight

    Capacity issues will always cause availability issues, but availability issues are not inherently capacity issues. Availability problems can stem from outages unrelated to capacity (e.g. power or vendor outages).

    Use best practices to develop and negotiate SLAs

    1.2c 20 minutes per service

    When signing contracts with vendors, you will be presented with an SLA. Ensure that it meets your requirements.

    1. Use the business impact analysis conducted in this project’s first step to determine your requirements. How much downtime can you tolerate for your critical services?
    2. Once you have been presented with an SLA, be sure to scour it for tricks. Remember, just because a vendor offers “five nines” of availability doesn’t mean that you’ll actually get that much uptime. It could be that the vendor is comfortable eating the cost of downtime or that the contract includes provisions for planned maintenance. Whether or not the vendor anticipated your outage does little to mitigate the damage an outage can cause to your business, so be careful of these provisions.
    3. Ensure that the person ultimately responsible for the SLA (the approver) understands the limitations of the agreement and the implications for availability.

    Input

    • List of external component dependencies

    Output

    • SLA requirements

    Materials

    • Whiteboard
    • Markers

    Participants

    • Infrastructure manager
    • Enterprise architect

    Info-Tech Insight

    Vendors are sometimes willing to eat the cost of violating SLAs if they think it will get them a contract. Be careful with negotiation. Just because the vendor says they can do something doesn’t make it true.

    Negotiate internal SLAs using Info-Tech’s rigorous process

    Talking past each other can drive misalignment between IT and the business, inconveniencing all involved. Quantify your needs through an internal SLA as part of a comprehensive availability management plan.

    See Info-Tech’s Improve IT-Business Alignment Through an Internal SLA blueprint for instructions on why you should develop internal SLAs and the potential benefits they bring.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.2

    The image contains a screenshot of activity 1.2 as previously described above.

    Create a list of dependencies for your most important applications

    Using the results of the business impact analysis, the analyst will guide workshop participants through a dependency mapping exercise that will eventually populate the Capacity Plan Template.

    Phase 1 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Conduct a business impact analysis

    Proposed Time to Completion: 1 week

    Step 1.1: Create a scale to measure different levels of impact

    Review your findings with an analyst

    Discuss how you arrived at the rating of your critical systems and their dependencies. Consider whether your external SLAs are appropriate.

    Then complete these activities…

    • Use the results of the business impact analysis to sort systems based on their criticality

    With these tools & templates:

    Business Impact Analysis Tool

    Step 1.2: Assign criticality ratings to services

    Review your findings with an analyst

    Discuss how you arrived at the rating of your critical systems and their dependencies. Consider whether your external SLAs are appropriate.

    Then complete these activities…

    • Create a list of dependencies for your most important applications
    • Identify important sub-components
    • Use best practices to develop and negotiate SLAs

    With these tools & templates:

    Capacity Snapshot Tool

    Phase 1 Results & Insights:

    • Engaging in detailed capacity planning for an insignificant service is a waste of resources. Focus on ensuring availability for your most critical systems.
    • Carefully evaluate vendors’ service offerings. Make sure the SLA works for you, and approach pie-in-the-sky promises with skepticism.

    PHASE 2

    Establish Visibility Into Core Systems

    Step 2.1: Define your monitoring strategy

    This step will walk you through the following activities:

    • Determine the indicators you should be tracking for each sub-component.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team

    Outcomes of this step

    • List of indicators to track for each sub-component

    Data has its significance—but also its limitations

    The rise of big data can be a boon for capacity managers, but be warned: not all data is created equal. Bad data can lead to bad decisions – and unemployed capacity managers.

    Your findings are only as good as your data. Remember: garbage in, garbage out. There are three characteristics of good data:*

    1. Accuracy: is the data exact and correct? More detail and confidence is better.
    2. Reliability: is the data consistent? In other words, if you run the same test twice will you get the same results?
    3. Validity: is the information gleaned believable and relevant?

    *National College of Teaching & Leadership, “Reliability and Validity”

    "Data is king. Good data is absolutely essential to [the capacity manager] role."

    – Adrian Blant, Independent Capacity Consultant, IT Capability Solutions

    Info-Tech Best Practice

    Every organization’s data needs are different; your data needs are going to be dictated by your services, delivery model, and business requirements. Make sure you don’t confuse volume with quality, even if others in your organization make that mistake.

    Take advantage of technology to establish visibility into your systems

    Managing your availability and capacity involves important decisions about what to monitor and how thresholds should be set.

    • Use the list of critical applications developed through the business impact analysis and the list of components identified in the dependency mapping exercise to produce a plan for effectively monitoring component availability and capacity.
    • The nature of IT service provision – the multitude of vendors providing hardware and services necessary for even simple IT services to work effectively – means that it is unlikely that capacity management will be visible through a single pane of glass. In other words, “email” and “CRM” don’t have a defined capacity. It always depends.
    • Establishing visibility into systems involves identifying what needs to be tracked for each component.

    Too much monitoring can be as bad as the inverse

    In 2013, a security breach at US retailer Target compromised more than 70 million customers’ data. The company received an alert, but it was thought to be a false positive because the monitoring system produced so many false and redundant alerts. As a result of the daily deluge, staff did not respond to the breach in time.

    Info-Tech Insight

    Don’t confuse monitoring with management. While establishing visibility is a crucial step, it is only part of the battle. Move on to this project’s next phase to explore opportunities to improve your capacity/availability management process.

    Determine the indicators you should be tracking for each sub-component

    2.1a Tab 3 of the Capacity Snapshot Tool

    It is nearly impossible to overstate the importance of data to the process of availability and capacity management. But the wrong data will do you no good.

    Instructions

    1. Open the Capacity Snapshot Tool to tab 2. The tool should have been populated in step 1.2 as part of the component mapping exercise.
    2. For each service, determine which metric(s) would most accurately tell the component’s story. Consider the following questions when completing this activity (you may end up with more than one metric):
    • How would the component’s capacity be measured (storage space, RAM, bandwidth, vCPUs)?
    • Is the metric in question actionable?
  • Record each metric in the Metric column (D) of the Capacity Snapshot Tool. Use the adjacent column for any additional information on metrics.
  • Info-Tech Insight

    Bottlenecks are bad. Use the Capacity Snapshot Tool (or another tool like it) to ensure that when the capacity manager leaves (on vacation, to another role, for good) the knowledge that they have accumulated does not leave as well.

    Understand the limitations of this approach

    Although we’ve striven to make it as easy as possible, this process will inevitably be cumbersome for organizations with a complicated set of software, hardware, and cloud services.

    Tracking every single component in significant detail will produce a lot of noise for each bit of signal. The approach outlined here addresses that concern in two ways:

    • A focus on gold services
    • A focus on sub-components that have a reasonable likelihood of being problematic in the future.

    Despite this effort, however, managing capacity at the component level is a daunting task. Ultimately, tools provided by vendors like SolarWinds and AppDynamics will fill in some of the gaps. Nevertheless, an understanding of the conceptual framework underlying availability and capacity management is valuable.

    Step 2.2: Implement your monitoring tool/aggregator

    This step will walk you through the following activities:

    • Clarify visibility.
    • Determine whether or not you have sufficiently granular visibility.
    • Develop strategies to .any visibility issues.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team
    • Applications personnel

    Outcomes of this step

    • Method for measuring and monitoring critical sub-components

    Companies struggle with performance monitoring because 95% of IT shops don’t have full visibility into their environments

    CASE STUDY

    Industry: Financial Services

    Source: AppDynamics

    Challenge

    • Users are quick to provide feedback when there is downtime or application performance degradation.
    • The challenge for IT teams is that while they can feel the pain, they don’t have visibility into the production environment and thus cannot identify where the pain is coming from.
    • The most common solution that organizations rely on is leveraging the log files for issue diagnosis. However, this method is slow and often unable to pinpoint the problem areas, leading to delays in problem resolution.

    Solution

    • Application and infrastructure teams need to work together to develop infrastructure flow maps and transaction profiles.
    • These diagrams will highlight the path that each transaction travels across your infrastructure.
    • Ideally at this point, teams will also capture latency breakdowns across every tier that the business transaction flows through.
      • This will ultimately kick start the baselining process.

    Results

    • Ninety-five percent of IT departments don’t have full visibility into their production environment. As a result, a slow business transaction will often require a war-room approach where SMEs from across the organization gather to troubleshoot.
    • Having visibility into the production environment through infrastructure flow mapping and transaction profiling will help IT teams pinpoint problems.
      • At the very least, teams will be able to identify common problem areas and expedite the root-cause analysis process.

    Source: “Just how complex can a Login Transaction be? Answer: Very!,” AppDynamics

    Monitor your critical sub-components

    Establishing a monitoring plan for your capacity involves answering two questions: can I see what I need to see, and can I see it with sufficient granularity?

    • Having the right tool for the job is an important step towards effective capacity and availability management.
    • Application performance management tools (APMs) are essential to the process, but they tend to be highly specific and vertically oriented, like using a microscope.
    • Some product families can cover a wider range of capacity monitoring functions (SolarWinds, for example). It is still important, however, to codify your monitoring needs.

    "You don’t use a microscope to monitor an entire ant farm, but you might use many microscopes to monitor specific ants."

    – Fred Chagnon, Research Director, Infrastructure Practice, Info-Tech Research Group

    Monitor your sub-components: clarify visibility

    2.2a Tab 2 of the Capacity Snapshot Tool

    The next step in capacity management is establishing whether or not visibility (in the broad sense) is available into critical sub-components.

    Instructions

    1. Open the Capacity Snapshot Tool and record the list of sub-components identified in the previous step.
    2. For each sub-component answer the following question:
    • Do I have easy access to the information I need to monitor to ensure this component remains available?
  • Select “Yes” or “No” from the drop-down menus as appropriate. In the adjacent column record details about visibility into the component.
    • What tool provides the information? Where can it be found?

    The image contains a screenshot of Info-Tech's Capacity Snapshot Tool, Tab 2.

    Monitor your sub-components; determine whether or not you have sufficient granular visibility

    2.2b Tab 2 of the Capacity Snapshot Tool

    Like ideas and watches, not all types of visibility are created equal. Ensure that you have access to the right information to make capacity decisions.

    Instructions

    1. For each of the sub-components clarify the appropriate level of granularity for the visibility gained to be useful. In the case of storage, for example, is raw usage (in gigabytes) sufficient, or do you need a breakdown of what exactly is taking up the space? The network might be more complicated.
    2. Record the details of this ideation in the adjacent column.
    3. Select “Yes” or “No” from the drop-down menu to track the status of each sub-component.

    The image contains a picture of an iPhone storage screen where it breaks down the storage into the following categories: apps, media, photos, and other.

    For most mobile phone users, this breakdown is sufficient. For some, more granularity might be necessary.

    Info-Tech Insight

    Make note of monitoring tools and strategies. If anything changes, be sure to re-evaluate the visibility status. An outdated spreadsheet can lead to availability issues if management is unaware of looming problems.

    Develop strategies to ameliorate any visibility issues

    2.2c 1 hour

    The Capacity Snapshot Tool color-codes your components by status. Green – visibility and granularity are both sufficient; yellow – visibility exists, though not at sufficient granularity; and red – visibility does not exist at all.

    Instructions

    1. Write each of the yellow and red sub-components on a whiteboard or piece of chart paper.
    2. Brainstorm amelioration strategies for each of the problematic sub-components.
    • Does the current monitoring tool have sufficient functionality?
    • Does it need to be further configured/customized?
    • Do we need a whole new tool?
  • Record these strategies in the Amelioration Strategy column on tab 4 of the tool.
  • Input

    • Sub-components
    • Capacity Snapshot Tool

    Output

    • Amelioration strategies

    Materials

    • Whiteboard
    • Markers
    • Capacity Snapshot Tool

    Participants

    • Infrastructure manager

    Info-Tech Best Practice

    It might be that there is no amelioration strategy. Make note of this difficulty and highlight it as part of the risk section of the Capacity Plan Template.

    See Info-Tech’s projects on storage and network modernization for additional details

    Leverage other products for additional details on how to modernize your network and storage services.

    The process of modernizing the network is fraught with vestigial limitations. Develop a program to gather requirements and plan.

    As part of the blueprint, Modernize Enterprise Storage, the Modernize Enterprise Storage Workbook includes a section on storage capacity planning.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.2

    The image contains a screenshot of activity 2.2.

    Develop strategies to ameliorate visibility issues

    The analyst will guide workshop participants in brainstorming potential solutions to visibility issues and record them in the Capacity Snapshot Tool.

    Phase 2 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Establish visibility into core systems

    Proposed Time to Completion: 3 weeks

    Step 2.1: Define your monitoring strategy

    Review your findings with an analyst

    Discuss your monitoring strategy and ensure you have sufficient visibility for the needs of your organization.

    Then complete these activities…

    • Determine the indicators you should be tracking for each sub-component

    With these tools & templates:

    • Capacity Snapshot Tool

    Step 2.2: Implement your monitoring tool/aggregator

    Review your findings with an analyst

    Discuss your monitoring strategy and ensure you have sufficient visibility for the needs of your organization.

    Then complete these activities…

    • Clarify visibility
    • Determine whether or not you have sufficiently granular visibility
    • Develop strategies to ameliorate any visibility issues

    With these tools & templates:

    • Capacity Snapshot Tool

    Phase 2 Results & Insights:

    • Every organization’s data needs are different. Adapt data gathering, reporting, and analysis according to your services, delivery model, and business requirements.
    • Don’t confuse monitoring with management. Build a system to turn reported data into useful information that feeds into the capacity management process.

    PHASE 3

    Solicit and Incorporate Business Needs

    Step 3.1: Solicit business needs and gather data

    This step will walk you through the following activities:

    • Build relationships with business stakeholders.
    • Analyze usage data and identify trends.
    • Correlate usage trends with business needs.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team members
    • Business stakeholders

    Outcomes of this step

    • System for involving business stakeholders in the capacity planning process
    • Correlated data on business level, service level, and infrastructure level capacity usage

    Summarize your capacity planning activities in the Capacity Plan Template

    The availability and capacity management summary card pictured here is a handy way to capture the results of the activities undertaken in the following phases. Note its contents carefully, and be sure to record specific outputs where appropriate. One such card should be completed for each of the gold services identified in the project’s first phase. Make note of the results of the activities in the coming phase, and populate the Capacity Snapshot Tool. These will help you populate the tool.

    The image contains a screenshot of Info-Tech's Capacity Plan Template.

    Info-Tech Best Practice

    The Capacity Plan Template is designed to be a part of a broader mapping strategy. It is not a replacement for a dedicated monitoring tool.

    Analyze historical trends as a crucial source of data

    The first place to look for information about your organization is not industry benchmarks or your gut (though those might both prove useful).

    • Where better to look than internally? Use the data you’ve gathered from your APM tool or other sources to understand your historical capacity needs and to highlight any periods of unavailability.
    • Consider monitoring the status of the capacity of each of your crucial components. The nature of this monitoring will vary based on the component in question. It can range from a rough Excel sheet all the way to a dedicated application performance monitoring tool.

    "In all cases the very first thing to do is to look at trending…The old adage is ‘you don’t steer a boat by its wake,’ however it’s also true that if something is growing at, say, three percent a month and it has been growing at three percent a month for the last twelve months, there’s a fairly good possibility that it’s going to carry on going in that direction."

    – Mike Lynch, Consultant, CapacityIQ

    Gather relevant data at the business level

    3.1a 2 hours per service

    A holistic approach to capacity management involves peering beyond the beaded curtain partitioning IT from the rest of the organization and tracking business metrics.

    Instructions

    1. Your service/application owners know how changes in business activities impact their systems. Business level capacity management involves responding to those changes. Ask service/application owners what changes will impact their capacity. Examples include:
    • Business volume (net new customers, number of transactions)
    • Staff changes (new hires, exits, etc.)
  • For each gold service, brainstorm relevant metrics. How can you capture that change in business volume?
  • Record these metrics in the summary card of the Capacity Plan Template.
  • In the notes section of the summary card record whether or not you have access to the required business metric.
  • Input

    • Brainstorming
    • List of gold services

    Output

    • Business level data

    Materials

    • In-house solution or commercial tool

    Participants

    • Capacity manager
    • Application/service owners

    Gather relevant data at the service level

    3.1b 2 hours per service

    One level of abstraction down is the service level. Service level capacity management, recall that service level capacity management is about ensuring that IT is meeting SLAs in its service provision.

    Instructions

    1. There should be internal SLAs for each service IT offers. (If not, that’s a good place to start. See Info-Tech’s research on the subject.) Prod each of your service owners for information on the metrics that are relevant for their SLAs. Consider the following:
    • Peak hours, requests per second, etc.
    • This will usually include some APM data.
  • Record these metrics in the summary card of the Capacity Plan Template.
  • Include any visibility issues in the notes in a similar section of the Capacity Plan Template.
  • Input

    • Brainstorming
    • List of gold services

    Output

    • Service level data

    Materials

    • In-house solution or commercial tool

    Participants

    • Capacity manager
    • Application/service owners

    Leverage the visibility into your infrastructure components and compare all of your data over time

    You established visibility into your components in the second phase of this project. Use this data, and that gathered at the business and service levels, to begin analyzing your demand over time.

    • Different organizations will approach this issue differently. Those with a complicated service catalog and a dedicated capacity manager might employ a tool like TeamQuest. If your operation is small, or you need to get your availability and capacity management activities underway as quickly as possible, you might consider using a simple spreadsheet software like Excel.
    • If you choose the latter option, select a level of granularity (monthly, weekly, etc.) and produce a line graph in Excel.
    • Example: Employee count (business metric)

    Jan

    Feb

    Mar

    Apr

    May

    June

    July

    74

    80

    79

    83

    84

    100

    102

    The image contains a graph using the example of employee count described above.

    Note: the strength of this approach is that it is easy to visualize. Use the same timescale to facilitate simple comparison.

    Manage, don’t just monitor; mountains of data need to be turned into information

    Information lets you make a decision. Understand the questions you don’t need to ask, and ask the right ones.

    "Often what is really being offered by many analytics solutions is just more data or information – not insights."

    – Brent Dykes, Director of Data Strategy, Domo

    Info-Tech Best Practice

    You can have all the data in the world and absolutely nothing valuable to add. Don’t fall for this trap. Use the activities in this phase to structure your data collection operation and ensure that your organization’s availability and capacity management plan is data driven.

    Analyze historical trends and track your services’ status

    3.1c Tab 3 of the Capacity Snapshot Tool

    At-a-glance – it’s how most executives consume all but the most important information. Create a dashboard that tracks the status of your most important systems.

    Instructions

    1. Consult infrastructure leaders for information about lead times for new capacity for relevant sub-components and include that information in the tool.
    • Look to historical lead times. (How long does it traditionally take to get more storage?)
    • If you’re not sure, contact an in-house expert, or speak to your vendor
  • Use tab 3 of the tool to record whether your existing capacity will be exceeded before you can stand more hardware up (red), you have a plan to ameliorate capacity issues but new capacity is not yet in place (yellow), or if you are not slated to run out of capacity any time soon (green).
  • Repeat the activity regularly. Include notes about spikes that might present capacity challenges, and information about when capacity may run out.
  • This tool collates and presents information gathered from other sources. It is not a substitute for a performance monitoring tool.

    Build a list of key business stakeholders

    3.1d 10 minutes

    Stakeholder analysis is crucial. Lines of authority can be diffuse. Understand who needs to be involved in the capacity management process early on.

    Instructions

    1. With the infrastructure team, brainstorm a group of departments, roles, and people who may impact demand on capacity.
    2. Go through the list with your team and identify stakeholders from two groups:
    • Line of business: who in the business makes use of the service?
    • Application owner: who in IT is responsible for ensuring the service is up?
  • Insert the list into section 3 of the Capacity Plan Template, and update as needed.
  • Input

    • Gold systems
    • Personnel Information

    Output

    • List of key business stakeholders

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Best Practice

    Consider which departments are most closely aligned with the business processes that fuel demand. Prioritize those that have the greatest impact. Consider the stakeholders who will make purchasing decisions for increasing infrastructure capacity.

    Organize stakeholder meetings

    3.1e 10 hours

    Establishing a relationship with your stakeholders is a necessary step in managing your capacity and availability.

    Instructions

    1. Gather as many of the stakeholders identified in the previous activity as you can and present information on availability and capacity management
    • If you can’t get everyone in the same room, a virtual meeting or even an email blast could get the job done.
  • Explain the importance of capacity and availability management
    • Consider highlighting the trade-offs between cost and availability.
  • Field any questions the stakeholders might have about the process. Be honest. The goal of this meeting is to build trust. This will come in handy when you’re gathering business requirements.
  • Propose a schedule and seek approval from all present. Include the results in section 3 of the Capacity Plan Template.
  • Input

    • List of business stakeholders
    • Hard work

    Output

    • Working relationship, trust
    • Regular meetings

    Materials

    • Work ethic
    • Executive brief

    Participants

    • Capacity manager
    • Business stakeholders

    Info-Tech Insight

    The best capacity managers develop new business processes that more closely align their role with business stakeholders. Building these relationships takes hard work, and you must first earn the trust of the business.

    Bake stakeholders into the planning process

    3.1f Ongoing

    Convince, don’t coerce. Stakeholders want the same thing you do. Bake them into the planning process as a step towards this goal.

    1. Develop a system to involve stakeholders regularly in the capacity planning process.
    • Your system will vary depending on the structure and culture of your organization.
    • See the case study on the following slide for ideas.
    • It may be as simple as setting a recurring reminder in your own calendar to touch base with stakeholders.
  • Liaise with stakeholders regularly to keep abreast of new developments.
    • Ensure stakeholders have reasonable expectations about IT’s available resources, the costs of providing capacity, and the lead times required to source additional needed capacity.
  • Draw on these stakeholders for the step “Gather information on business requirements” later in this phase.
  • Input

    • List of business stakeholders
    • Ideas

    Output

    • Capacity planning process that involves stakeholders

    Materials

    • Meeting rooms

    Participants

    • Capacity manager
    • Business stakeholders
    • Infrastructure team

    A capacity manager in financial services wrangled stakeholders and produced results

    CASE STUDY

    Industry: Financial Services

    Source: Interview

    In financial services, availability is king

    In the world of financial services, availability is absolutely crucial. High-value trades occur at all hours, and any institution that suffers outages runs the risk of losing tens of thousands of dollars, not to mention reputational damage.

    People know what they want, but sometimes they have to be herded

    While line of business managers and application owners understand the value of capacity management, it can be difficult to establish the working relationship necessary for a fruitful partnership.

    Proactively building relationships keeps services available

    He built relationships with all the department heads on the business side, and all the application owners.

    • He met with department heads quarterly.
    • He met with application owners and business liaisons monthly.

    He established a steering committee for capacity.

    He invited stakeholders to regular capacity planning meetings.

    • The first half of each meeting was high-level outlook, such as business volume and IT capacity utilization, and included stakeholders from other departments.
    • The second half of the meeting was more technical, serving the purpose for the infrastructure team.

    He scheduled lunch and learn sessions with business analysts and project managers.

    • These are the gatekeepers of information, and should know that IT needs to be involved when things come down the pipeline.

    Step 3.2: Analyze data and project future needs

    This step will walk you through the following activities:

    • Solicit needs from the business.
    • Map business needs to technical requirements, and technical requirements to infrastructure requirements.
    • Identify inefficiencies in order to remedy them.
    • Compare the data across business, component, and service levels, and project your capacity needs.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team members
    • Business stakeholders

    Outcomes of this step

    • Model of how business processes relate to technical requirements and their demand on infrastructure
    • Method for projecting future demand for your organization’s infrastructure
    • Comparison of current capacity usage to projected demand

    “Nobody tells me anything!” – the capacity manager’s lament

    Sometimes “need to know” doesn’t register with sales or marketing. Nearly every infrastructure manager can share a story about a time when someone has made a decision that has critically impacted IT infrastructure without letting anyone in IT in on the “secret.”

    In brief

    The image contains a picture of a man appearing to be overwhelmed.

    Imagine working for a media company as an infrastructure capacity manager. Now imagine that the powers that be have decided to launch a content-focused web service. Seems like something they would do, right? Now imagine you find out about it the same way the company’s subscribers do. This actually happened – and it shouldn’t have. But a similar lack of alignment makes this a real possibility for any organization. If you don’t establish a systematic plan for soliciting and incorporating business requirements, prepare to lose a chunk of your free time. The business should never be able to say, in response to “nobody tells me anything,” “nobody asked.”

    Pictured: an artist’s rendering of the capacity manager in question.

    Directly solicit requirements from the business

    3.2a 30 minutes per stakeholder

    Once you’ve established, firmly, that everyone’s on the same team, meet individually with the stakeholders to assess capacity.

    Instructions

    1. Schedule a one-on-one meeting with each line of business manager (stakeholders identified in 3.1). Ideally this will be recurring.
    • Experienced capacity managers suggest doing this monthly.
  • In the meeting address the following questions:
    • What are some upcoming major initiatives?
    • Is the department going to expand or contract in a noticeable way?
    • Have customers taken to a particular product more than others?
  • Include the schedule in the Capacity Plan Template, and consider including details of the discussion in the notes section in tab 3 of the Capacity Snapshot Tool.
  • Input

    • Stakeholder opinions

    Output

    • Business requirements

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    Sometimes line of business managers will evade or ignore you when you come knocking. They do this because they don’t know and they don’t want to give you the wrong information. Explain that a best guess is all you can ask for and allay their fears.

    Below, you will find more details about what to look for when soliciting information from the line of business manager you’ve roped into your scheme.

    1. Consider the following:
    • Projected sales pipeline
    • Business growth
    • Seasonal cycles
    • Marketing campaigns
    • New applications and features
    • New products and services
  • Encourage business stakeholders to give you their best guess for elements such as projected sales or business growth.
  • Estimate variance and provide a range. What can you expect at the low end? The high end? Record your historical projections for an idea of how accurate you are.
  • Consider carefully the infrastructure impact of new features (and record this in the notes section of the Capacity Snapshot Tool).
  • Directly solicit requirements from the business (optional)

    3.2a 1 hour

    IT staff and line of business staff come with different skillsets. This can lead to confusion, but it doesn’t have to. Develop effective information solicitation techniques.

    Instructions

    1. Gather your IT staff in a room with a whiteboard. As a group, select a gold service/line of business manager you would like to use as a “practice dummy.”
    2. Have everyone write down a question they would ask of the line of business representative in a hypothetical business/service capacity discussion.
    3. As a group discuss the merits of the questions posed:
    • Are they likely to yield productive information?
    • Are they too vague or specific?
    • Is the person in question likely to know the answer?
    • Is the information requested a guarded trade secret?
  • Discuss the findings and include any notes in section 3 of the Capacity Plan Template.
  • Input

    • Workshop participants’ ideas

    Output

    • Interview skills

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Capacity manager
    • Infrastructure staff

    Map business needs to technical requirements, and technical requirements to infrastructure requirements

    3.2b 5 hours

    When it comes to mapping technical requirements, IT alone has the ability to effectively translate business needs.

    Instructions

    1. Use your notes from stakeholder meetings to assess the impact of any changes on gold systems.
    2. For each system brainstorm with infrastructure staff (and any technical experts as necessary) about what the information gleaned from stakeholder discussions. Consider the following discussion points:
    • How has demand for the service been trending? Does it match what the business is telling us?
    • Have we had availability issues in the past?
    • Has the business been right with their estimates in the past?
  • Estimate what a change in business/service metrics means for capacity.
    • E.g. how much RAM does a new email user require?
  • Record the output in the summary card of the Capacity Plan Template.
  • Input

    • Business needs

    Output

    • Technical and infrastructure requirements

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    Adapt the analysis to the needs of your organization. One capacity manager called the one-to-one mapping of business process to infrastructure demand the Holy Grail of capacity management. If this level of precision isn’t attainable, develop your own working estimates using the higher-level data

    Avoid putting too much faith in the cloud as a solution to your problem

    Has the rise of on-demand, functionally unlimited services eliminated the need for capacity and availability management?

    Capacity management

    The role of the capacity manager is changing, but it still has a purpose. Consider this:

    • Not everything can move to the cloud. For security/functionality reasons, on-premises infrastructure will continue to exist.
    • Cost management is more relevant than ever in the cloud age. Manage your instances.
    • While a cloud migration might render some component capacity management functions irrelevant, it could increase the relevance of others (the network, perhaps).

    Availability management

    Ensuring services are available is still IT’s wheelhouse, even if that means a shift to a brokerage model:

    • Business availability requirements (as part of the business impact analysis, potentially) are important; internal SLAs and contracts with vendors need to be managed.
    • Even in the cloud environment, availability is not guaranteed. Cloud providers have outages (unplanned, maintenance related, etc.) and someone will have to understand the limitations of cloud services and the impact on availability.

    Info-Tech Insight

    The cloud comes at the cost of detailed performance data. Sourcing a service through an SLA with a third party increases the need to perform your own performance testing of gold level applications. See performance monitoring.

    Beware Parkinson’s law

    A consequence of our infinite capacity for creativity, people have the enviable skill of making work. In 1955, C. Northcote Parkinson pointed out this fact in The Economist . What are the implications for capacity management?

    "It is a commonplace observation that work expands so as to fill the time available for its completion. Thus, an elderly lady of leisure can spend the entire day in writing and despatching a postcard to her niece at Bognor Regis. An hour will be spent in finding the postcard, another in hunting for spectacles, half-an-hour in a search for the address, an hour and a quarter in composition, and twenty minutes in deciding whether or not to take an umbrella when going to the pillar-box in the next street."

    C. Northcote Parkinson, The Economist, 1955

    Info-Tech Insight

    If you give people lots of capacity, they will use it. Most shops are overprovisioned, and in some cases that’s throwing perfectly good money away. Don’t be afraid to prod if someone requests something that doesn’t seem right.

    Optimally align demand and capacity

    When it comes to managing your capacity, look for any additional efficiencies.

    Questions to ask:

    • Are there any infrastructure services that are not being used to their full potential, sitting idle, or allocated to non-critical or zombie functions?
      • Are you managing your virtual servers? If, for example, you experience a seasonal spike in demand, are you leaving virtual machines running after the fact?
    • Do your organization’s policies and your infrastructure setup allow for the use of development resources for production during periods of peak demand?
    • Can you make organizational or process changes in order to satisfy demand more efficiently?

    In brief

    Who isn’t a sports fan? Big games mean big stakes for pool participants and armchair quarterbacks—along with pressure on the network as fans stream games from their work computers. One organization suffered from this problem, and, instead of taking a hardline and banning all streams, opted to stream the game on a large screen in a conference room where those interested could work for its duration. This alleviated strain on the network and kept staff happy.

    Shutting off an idle cloud to cut costs

    CASE STUDY

    Industry:Professional Services

    Source:Interview

    24/7 AWS = round-the-clock costs

    A senior developer realized that his development team had been leaving AWS instances running without any specific reason.

    Why?

    The development team appreciated the convenience of an always-on instance and, because the people spinning them up did not handle costs, the problem wasn’t immediately apparent.

    Resolution

    In his spare time over the course of a month, the senior developer wrote a program to manage the servers, including shutting them down during times when they were not in use and providing remote-access start-up when required. His team alone saved $30,000 in costs over the next six months, and his team lead reported that it would have been more than worth paying the team to implement such a project on company time.

    Identify inefficiencies in order to remediate them

    3.2c 20 minutes per service

    Instructions

    1. Gather the infrastructure team together and discuss existing capacity and demand. Use the inputs from your data analysis and stakeholder meetings to set the stage for your discussion.
    2. Solicit ideas about potential inefficiencies from your participants:
    • Are VMs effectively allocated? If you need 7 VMs to address a spike, are those VMs being reallocated post-spike?
    • Are developers leaving instances running in the cloud?
    • Are particular services massively overprovisioned?
    • What are the biggest infrastructure line items? Are there obvious opportunities for cost reduction there?
  • Record any potential opportunities in the summary of the Capacity Plan Template.
  • Input

    • Gold systems
    • Data inputs

    Output

    • Inefficiencies

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    The most effective capacity management takes a holistic approach and looks at the big picture in order to find ways to eliminate unnecessary infrastructure usage, or to find alternate or more efficient sources of required capacity.

    Dodging the toll troll by rerouting traffic

    CASE STUDY

    Industry:Telecommunications

    Source: Interview

    High-cost lines

    The capacity manager at a telecommunications provider mapped out his firm’s network traffic and discovered they were using a number of VP circuits (inter building cross connects) that were very expensive on the scale of their network.

    Paying the toll troll

    These VP circuits were supplying needed network services to the telecom provider’s clients, so there was no way to reduce this demand.

    Resolution

    The capacity manager analyzed where the traffic was going and compared this to the cost of the lines they were using. After performing the analysis, he found he could re-route much of the traffic away from the VP circuits and save on costs while delivering the same level of service to their users.

    Compare the data across business, component, and service levels, and project your capacity needs

    3.2d 2 hour session/meeting

    Make informed decisions about capacity. Remember: retain all documentation. It might come in handy for the justification of purchases.

    Instructions

    1. Using either a dedicated tool or generic spreadsheet software like Excel or Sheets, evaluate capacity trends. Ask the following questions:
    • Are there times when application performance degraded, and the service level was disrupted?
    • Are there times when certain components or systems neared, reached, or exceeded available capacity?
    • Are there seasonal variations in demand?
    • Are there clear trends, such as ongoing growth of business activity or the usage of certain applications?
    • What are the ramifications of trends or patterns in relation to infrastructure capacity?
  • Use the insight gathered from stakeholders during the stakeholder meetings, project required capacity for the critical components of each gold service.
  • Record the results of this activity in the summary card of the Capacity Plan Template.
  • Compare current capacity to your projections

    3.2e Section 5 of the Capacity Plan Template

    Capacity management (and, by extension, availability management) is a combination of two balancing acts: cost against capacity and supply and demand.*

    Instructions

    1. Compare your projections with your reality. You already know whether or not you have enough capacity given your lead times. But do you have too much? Compare your sub-component capacity projections to your current state.
    2. Highlight any outliers. Is there a particular service that is massively overprovisioned?
    3. Evaluate the reasons for the overprovisioning.
    • Is the component critically important?
    • Did you get a great deal on hardware?
    • Is it an oversight?
  • Record the results in the notes section of the summary card of the Capacity Plan Template.
  • *Office of Government Commerce 2001, 119.

    In brief

    The fractured nature of the capacity management space means that every organization is going to have a slightly different tooling strategy. No vendor has dominated, and every solution requires some level of customization. One capacity manager (a cloud provider, no less!) relayed a tale about a capacity management Excel sheet programmed with 5,000+ lines of code. As much work as that is, a bespoke solution is probably unavoidable.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.2

    The image contains a screenshot of activity 3.2.

    Map business needs to technical requirements and technical requirements to infrastructure requirements

    The analyst will guide workshop participants in using their organization’s data to map out the relationships between applications, technical requirements, and the underlying infrastructure usage.

    Phase 3 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Solicit and incorporate business needs

    Proposed Time to Completion: 2 weeks

    Step 3.1: Solicit business needs and gather data

    Review your findings with an analyst

    Discuss the effectiveness of your strategies to involve business stakeholders in the planning process and your methods of data collection and analysis.

    Then complete these activities…

    • Analyze historical trends and track your services’ status
    • Build a list of key business stakeholders
    • Bake stakeholders into the planning process

    With these tools & templates:

    Capacity Plan Template

    Step 3.2: Analyze data and project future needs

    Review your findings with an analyst

    Discuss the effectiveness of your strategies to involve business stakeholders in the planning process and your methods of data collection and analysis.

    Then complete these activities…

    • Map business needs to technical requirements and technical requirements to infrastructure requirements
    • Compare the data across business, component, and service levels, and project your capacity needs
    • Compare current capacity to your projections

    With these tools & templates:

    Capacity Snapshot Tool

    Capacity Plan Template

    Phase 3 Results & Insights:

    • Develop new business processes that more closely align your role with business stakeholders. Building these relationships takes hard work, and won’t happen overnight.
    • Take a holistic approach to eliminate unnecessary infrastructure usage or source capacity more efficiently.

    PHASE 4

    Identify and Mitigate Risks

    Step 4.1: Identify and mitigate risks

    This step will walk you through the following activities:

    • Identify potential risks.
    • Determine strategies to mitigate risks.
    • Complete your capacity management plan.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team members
    • Business stakeholders

    Outcomes of this step

    • Strategies for reducing risks
    • Capacity management plan

    Understand what happens when capacity/availability management fails

    1. Services become unavailable. If availability and capacity management are not constantly practiced, an inevitable consequence is downtime or a reduction in the quality of that service. Critical sub-component failures can knock out important systems on their own.
    2. Money is wasted. In response to fears about availability, it’s entirely possible to massively overprovision or switch entirely to a pay-as-you-go model. This, unfortunately, brings with it a whole host of other problems, including overspending. Remember: infinite capacity means infinite potential cost.
    3. IT remains reactive and is unable to contribute more meaningfully to the organization. If IT is constantly putting out capacity/availability-related fires, there is no room for optimization and activities to increase organizational maturity. Effective availability and capacity management will allow IT to focus on other work.

    Mitigate availability and capacity risks

    Availability: how often a service is usable (that is to say up and not too degraded to be effective). Consequences of reduced availability can include financial losses, impacted customer goodwill, and reduced faith in IT more generally.

    Causes of availability issues:

    • Poor capacity management – a service becomes unavailable when there is insufficient supply to meet demand. This is the result of poor capacity management.
    • Scheduled maintenance – services go down for maintenance with some regularity. This needs to be baked into service-level negotiations with vendors.
    • Vendor outages – sometimes vendors experience unplanned outages. There is typically a contract provision that covers unplanned outages, but that doesn’t change the fact that your service will be interrupted.

    Capacity: a particular component’s/service’s/business’ wiggle room. In other words, its usage ceiling.

    Causes of capacity issues:

    • Poor demand management – allowing users to run amok without any regard for how capacity is sourced and paid for.
    • Massive changes in legitimate demand – more usage means more demand.
    • Poor capacity planning – predictable changes in demand that go unaddressed can lead to capacity issues.

    Add additional potential causes of availability and capacity risks as needed

    4.1a 30 minutes

    Availability and capacity issues can stem from a number of different causes. Include a list in your availability and capacity management plan.

    Instructions

    1. Gather the group together. Go around the room and have participants provide examples of incidents and problems that have been the result of availability and capacity issues.
    2. Pose questions to the group about the source of those availability and capacity issues.
    • What could have been done differently to avoid these issues?
    • Was the availability/capacity issue a result of a faulty internal/external SLA?
  • Record the results of the exercise in sections 4.1 and 4.2 of the Capacity Plan Template.
  • Input

    • Capacity Snapshot Tool results

    Output

    • Additional sources of availability and capacity risks

    Materials

    • Capacity Plan Template

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    Availability and capacity problems result in incidents, critical incidents, and problems. These are addressed in a separate project (incident and problem management), but information about common causes can streamline that process.

    Identify capacity risks and mitigate them

    4.1b 30 minutes

    Based on your understanding of your capacity needs (through written SLAs and informal but regular meetings with the business) highlight major risks you foresee.

    Instructions

    1. Make a chart with two columns on a whiteboard. They should be labelled “risk” and “mitigation” respectively.
    2. Record risks to capacity you have identified in earlier activities.
    • Refer to the Capacity Snapshot Tool for components that are highlighted in red and yellow. These are specific components that present special challenges. Identify the risk(s) in as much detail as possible. Include service and business risks as well.
    • Examples: a marketing push will put pressure on the web server; a hiring push will require more Office 365 licenses; a downturn in registration will mean that fewer VMs will be required to run the service.

    Input

    • Capacity Snapshot Tool results

    Output

    • Inefficiencies

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    It’s an old adage, but it checks out: don’t come to the table armed only with problems. Be a problem solver and prove IT’s value to the organization.

    Identify capacity risks and mitigate them (cont.)

    4.1b 1.5 hours

    Instructions (cont.)

    1. Begin developing mitigation strategies. Options for responding to known capacity risks fall into one of two camps:
    • Acceptance: responding to the risk is costlier than acknowledging its existence without taking any action. For gold systems, acceptance is typically not acceptable.
    • Mitigation: limiting/reducing, eliminating, or transferring risk (Herrera) comprise the sort of mitigation discussed here.
      • Limiting/reducing: taking steps to improve the capacity situation, but accepting some level of risk (spinning up a new VM, pushing back on demands from the business, promoting efficiency).
      • Eliminating: the most comprehensive (and most expensive) mitigation strategy, elimination could involve purchasing a new server or, at the extreme end, building a new datacenter.
      • Transfer: “robbing Peter to pay Paul,” in the words of capacity manager Todd Evans, is one potential way to limit your exposure. Is there a less critical service that can be sacrificed to keep your gold service online?
  • Record the results of this exercise in section 5 of the Capacity Plan Template.
  • Input

    • Capacity Snapshot Tool results

    Output

    • Capacity risk mitigations

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    It’s an old adage, but it checks out: don’t come to the table armed only with problems. Be a problem solver and prove IT’s value to the organization.

    Identify availability risks and mitigate them

    4.1c 30 minutes

    While capacity management is a form of availability management, it is not the only form. In this activity, outline the specific nature of threats to availability.

    Instructions

    1. Make a chart with two columns on a whiteboard. They should be labelled “risk” and “mitigation” respectively.
    2. Begin brainstorming general availability risks based on the following sources of information/categories:
    • Vendor outages
    • Disaster recovery
    • Historical availability issues

    The image contains a large blue circle labelled: Availability. Also in the blue circle is a small red circle labelled: Capacity.

    Input

    • Capacity Snapshot Tool results

    Output

    • Availability risks and mitigations

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Best Practice

    A dynamic central repository is a good way to ensure that availability issues stemming from a variety of causes are captured and mitigated.

    Identify availability risks and mitigate them (cont.)

    4.1c 1.5 hours

    Although it is easier said than done, identifying potential mitigations is a crucial part of availability management as an activity.

    Instructions (cont.)

    1. Begin developing mitigation strategies. Options for responding to known capacity risks fall into one of two camps:
    • Acceptance – responding to the risk is costlier than taking it on. Some unavailability is inevitable, between maintenance and unscheduled downtime. Record this, though it may not require immediate action.
    • Mitigation strategies:
      • Limiting/reducing – taking steps to increase availability of critical systems. This could include hot spares for unreliable systems or engaging a new vendor.
      • Eliminating – the most comprehensive (and most expensive) mitigation strategy. It could include selling.
      • Transfer – “robbing Peter to pay Paul,” in the words of capacity manager Todd Evans, is one potential way to limit your exposure. Is there a less critical service that can be sacrificed to keep your gold service online?
  • Record the results of this exercise in section 5 of Capacity Plan Template.
  • Input

    • Capacity Snapshot Tool results

    Output

    • Availability risks and mitigations

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Iterate on the process and present your completed availability and capacity management plan

    The stakeholders consulted as part of the process will be interested in its results. Share them, either in person or through a collaboration tool.

    The current status of your availability and capacity management plan should be on the agenda for every stakeholder meeting. Direct the stakeholders’ attention to the parts of the document that are relevant to them, and solicit their thoughts on the document’s accuracy. Over time you should get a pretty good idea of who among your stakeholder group is skilled at projecting demand, and who over- or underestimates, and by how much. This information will improve your projections and, therefore, your management over time.

    Info-Tech Insight

    Use the experience gained and the artifacts generated to build trust with the business. The meetings should be regular, and demonstrating that you’re actually using the information for good is likely to make hesitant participants in the process more likely to open up.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    4.1

    The image contains a screenshot of activity 4.1.

    Identify capacity risks and mitigate them

    The analyst will guide workshop participants in identifying potential risks to capacity and determining strategies for mitigating them.

    Phase 4 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 4: Identify and mitigate risks

    Proposed Time to Completion: 1 week

    Step 4.1: Identify and mitigate risks

    Review your findings with an analyst

    • Discuss your potential risks and your strategies for mitigating those risks.

    Then complete these activities…

    • Identify capacity risks and mitigate them
    • Identify availability risks and mitigate them
    • Complete your capacity management plan

    With these tools & templates:

    Capacity Snapshot Tool

    Capacity Plan Template

    Phase 4 Results & Insights:

    • Be a problem solver and prove IT’s value to the organization. Capacity management allows infrastructure to drive business value.
    • Iterate and share results. Reinforce your relationships with stakeholders and continue to refine how capacity management transforms your organization’s business processes.

    Insight breakdown

    Insight 1

    Components are critical to availability and capacity management.

    The CEO doesn’t care about the SMTP server. She cares about meeting customer needs and producing profit. For IT capacity and availability managers, though, the devil is in the details. It only takes one faulty component to knock out a service. Keep track and keep the lights on.

    Insight 2

    Ask what the business is working on, not what they need.

    If you ask them what they need, they’ll tell you – and it won’t be cheap. Find out what they’re going to do, and use your expertise to service those needs. Use your IT experience to estimate the impact of business and service level changes on the components that secure the availability you need.

    Insight 3

    Cloud shmoud.

    The role of the capacity manager might be changing with the advent of the public cloud, but it has not disappeared. Capacity managers in the age of the cloud are responsible for managing vendor relationships, negotiating external SLAs, projecting costs and securing budgets, reining in prodigal divisions, and so on.

    Summary of accomplishment

    Knowledge Gained

    • Impact of downtime on the organization
    • Gold systems
    • Key dependencies and sub-components
    • Strategy for monitoring components
    • Strategy for soliciting business needs
    • Projected capacity needs
    • Availability and capacity risks and mitigations

    Processes Optimized

    • Availability management
    • Capacity management

    Deliverables Completed

    • Business Impact Analysis
    • Capacity Plan Template

    Project step summary

    Client Project: Develop an Availability and Capacity Management Plan

    1. Conduct a business impact analysis
    2. Assign criticality ratings to services
    3. Define your monitoring strategy
    4. Implement your monitoring tool/aggregator
    5. Solicit business needs and gather data
    6. Analyze data and project future needs
    7. Identify and mitigate risks

    Info-Tech Insight

    This project has the ability to fit the following formats:

    • Onsite workshop by Info-Tech Research Group consulting analysts.
    • Do-it-yourself with your team.
    • Remote delivery via Info-Tech Guided Implementation.

    Research contributors and experts

    The image contains a picture of Adrian Blant.

    Adrian Blant, Independent Capacity Consultant, IT Capability Solutions

    Adrian has over 15 years' experience in IT infrastructure. He has built capacity management business processes from the ground up, and focused on ensuring a productive dialogue between IT and the business.

    The image contains a picture of James Zhang.

    James Zhang, Senior Manager Disaster Recovery, AIG Technology

    James has over 20 years' experience in IT and 10 years' experience in capacity management. Throughout his career, he has focused on creating new business processes to deliver value and increase efficiency over the long term.

    The image contains a picture of Mayank Banerjee.

    Mayank Banerjee, CTO, Global Supply Chain Management, HelloFresh

    Mayank has over 15 years' experience across a wide range of technologies and industries. He has implemented highly automated capacity management processes as part of his role of owning and solving end-to-end business problems.

    The image contains a picture of Mike Lynch

    Mike Lynch, Consultant, CapacityIQ

    Mike has over 20 years' experience in IT infrastructure. He takes a holistic approach to capacity management to identify and solve key problems, and has developed automated processes for mapping performance data to information that can inform business decisions.

    The image contains a picture of Paul Waguespack.

    Paul Waguespack, Manager of Application Systems Engineering, Tufts Health Plan

    Paul has over 10 years' experience in IT. He has specialized in implementing new applications and functionalities throughout their entire lifecycle, and integrating with all aspects of IT operations.

    The image contains a picture of Richie Mendoza.

    Richie Mendoza, IT Consultant, SMITS Inc.

    Richie has over 10 years' experience in IT infrastructure. He has specialized in using demand forecasting to guide infrastructure capacity purchasing decisions, to provide availability while avoiding costly overprovisioning.

    The image contains a picture of Rob Thompson.

    Rob Thompson, President, IT Tools & Process

    Rob has over 30 years’ IT experience. Throughout his career he has focused on making IT a generator of business value. He now runs a boutique consulting firm.

    Todd Evans, Capacity and Performance Management SME, IBM

    Todd has over 20 years' experience in capacity and performance management. At Kaiser Permanente, he established a well-defined mapping of the businesses workflow processes to technical requirements for applications and infrastructure.

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    Office of Government Commerce . Best Practice for Service Delivery. London: Her Majesty’s Stationery Office, 2001.

    Office of Government Commerce. Best Practice for Business Perspective: The IS View on Delivering Services to the Business. London: Her Majesty’s Stationery Office, 2004.

    Parkinson, C. Northcote. “Parkinson’s Law.” The Economist. 19 Nov. 1955. Web.

    “Parkinson’s Law Is Proven Again.” Financial Times. 25 Oct. 2017. Web.

    Paul, John, and Chris Hayes. Performance Monitoring and Capacity Planning. VM Ware. 2006. Web.

    “Reliability and Validity.” UC Davis. N.d. Web.

    "Role: Capacity Manager." IBM. 2008. Web.

    Ryan, Liz. “‘If You Can’t Measure It, You Can’t Manage It’: Not True.” Forbes. 10 Feb. 2014. Web.

    S, Lalit. “Using Flexible Capacity to Lower and Manage On-Premises TCO.” HPE. 23 Nov. 2016. Web.

    Snedeker, Ben. “The Pros and Cons of Public and Private Clouds for Small Business.” Infusionsoft. September 6, 2017. Web.

    Statement of Work: IBM Enterprise Availability Management Service. IBM. Jan 2016. Web.

    “The Road to Perfect AWS Reserved Instance Planning & Management in a Nutshell.” Botmetric. 25 Oct. 2017. Web.

    Transforming the Information Infrastructure: Build, Manage, Optimize. Asigra. Aug. 2017. Web.

    Valentic, Branimir. "Three Faces of Capacity Management." ITIL/ISO 20000 Knowledge Base. Advisera. 24 Oct. 2017. Web.

    "Unify IT Performance Monitoring and Optimization." IDERA. 24 Oct. 2017. Web.

    "What is IT Capacity Management?" Villanova U. Aug. 2017. Web.

    Wolstenholme, Andrew. Final internal Audit Report: IT Availability and Capacity (IA 13 519/F). Transport For London. 23 Feb. 2015. Web.

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    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.

    Position IT to Support and Be a Leader in Open Data Initiatives

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    • Open data programs are often seen as unimportant or not worth taking up space in the budget in local government.
    • Open data programs are typically owned by a single open data evangelist who works on it as a side-of-desk project.
    • Having a single resource spend a portion of their time on open data doesn’t allow the open data program to mature to the point that local governments are realizing benefits from it.
    • It is difficult to gain buy-in for open data as it is hard to track the benefits of an open data program.

    Our Advice

    Critical Insight

    • Local government can help push the world towards being more open, unlocking economic benefits for the wider economy.
    • Cities don’t know the solutions to all of their problems often they don’t know all of the problems they have. Release data as a platform to crowdsource solutions and engage your community.
    • Build your open data policies in collaboration with the community. It’s their data, let them shape the way it’s used!

    Impact and Result

    • Level-set expectations for your open data program. Every local government is different in terms of the benefits they can achieve with open data; ensure the business understands what is realistic to achieve.
    • Create a team of open data champions from departments outside of IT. Identify potential champions for the team and use this group to help gain greater business buy-in and gather feedback on the program’s direction.
    • Follow the open data maturity model in order to assess your current state, identify a target state, and assess capability gaps that need to be improved upon.
    • Use industry best practices to develop an open data policy and processes to help improve maturity of the open data program and reach your desired target state.
    • Identify metrics that you can use to track, and communicate the success of, the open data program.

    Position IT to Support and Be a Leader in Open Data Initiatives Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop your open data 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. Set the foundation for the success of your open data program

    Identify your open data program's current state maturity, and gain buy-in from the business for the program.

    • Position IT to Support and Be a Leader in Open Data Initiatives – Phase 1: Set the Foundation for the Success of Your Open Data Program
    • Open Data Maturity Assessment
    • Open Data Program – IT Stakeholder Powermap Template
    • Open Data in Our City Stakeholder Presentation Template

    2. Grow the maturity of your open data program

    Identify a target state maturity and reach it through building a policy and processes and the use of metrics.

    • Position IT to Support and Be a Leader in Open Data Initiatives – Phase 2: Grow the Maturity of Your Open Data Program
    • Open Data Policy Template
    • Open Data Process Template
    • Open Data Process Descriptions Template
    • Open Data Process Visio Templates (Visio)
    • Open Data Process Visio Templates (PDF)
    • Open Data Metrics Template
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    Workshop: Position IT to Support and Be a Leader in Open Data Initiatives

    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 Business Drivers for Open Data Program

    The Purpose

    Ensure that the open data program is being driven out from the business in order to gain business support.

    Key Benefits Achieved

    Identify drivers for the open data program that are coming directly from the business.

    Activities

    1.1 Understand constraints for the open data program.

    1.2 Conduct interviews with the business to gain input on business drivers and level-set expectations.

    1.3 Develop list of business drivers for open data.

    Outputs

    Defined list of business drivers for the open data program

    2 Assess Current State and Define Target State of the Open Data Program

    The Purpose

    Understand the gaps between where your program currently is and where you want it to be.

    Key Benefits Achieved

    Identify top processes for improvement in order to bring the open data program to the desired target state maturity.

    Activities

    2.1 Perform current state maturity assessment.

    2.2 Define desired target state with business input.

    2.3 Highlight gaps between current and target state.

    Outputs

    Defined current state maturity

    Identified target state maturity

    List of top processes to improve in order to reach target state maturity

    3 Develop an Open Data Policy

    The Purpose

    Develop a draft open data policy that will give you a starting point when building your policy with the community.

    Key Benefits Achieved

    A draft open data policy will be developed that is based on best-practice standards.

    Activities

    3.1 Define the purpose of the open data policy.

    3.2 Establish principles for the open data program.

    3.3 Develop a rough governance outline.

    3.4 Create a draft open data policy document based on industry best-practice examples.

    Outputs

    Initial draft of open data policy

    4 Develop Open Processes and Identify Metrics

    The Purpose

    Build open data processes and identify metrics for the program in order to track benefits realization.

    Key Benefits Achieved

    Formalize processes to set in place to improve the maturity of the open data program.

    Identify metrics that can track the success of the open data program.

    Activities

    4.1 Develop the roles that will make up the open data program.

    4.2 Create processes for new dataset requests, updates of existing datasets, and the retiring of datasets.

    4.3 Identify metrics that will be used for measuring the success of the open data program.

    Outputs

    Initial draft of open data processes

    Established metrics for the open data program

    Digital Data Ethics

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    In the past two years, we've seen that we need quick technology solutions for acute issues. We quickly moved to homeworking and then to a hybrid form. We promptly moved many of our offline habits online.

    That necessitated a boost in data collection from us towards our customers and employees, and business partners.
    Are you sure how to approach this structurally? What is the right thing to do?

    Impact and Results

    • When you partner with another company, set clear expectations
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    innovation

    2021 Q3 Research Highlights

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    Our research team is a prolific bunch! Every quarter we produce lots of research to help you get the most value out of your organization. This PDF contains a selection of our most compelling research from the third quarter of 2021.

    Establish Data Governance

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    • Organizations are faced with challenges associated with changing data landscapes, evolving business models, industry disruptions, regulatory and compliance obligations, as well as changing and maturing user landscapes and demands for data.
    • Although the need for a data governance program is often evident, organizations often miss the mark.
    • Your data governance efforts should be directly aligned to delivering measurable business value by supporting key strategic initiatives, value streams, and underlying business capabilities.

    Our Advice

    Critical Insight

    • Your organization’s value streams and their associated business capabilities require effectively governed data. Without this, you may experience elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.
    • Ensure your data governance program delivers measurable business value by aligning the associated data governance initiatives with the business architecture.
    • Data governance must continuously align with the organization’s enterprise governance function. It should not be perceived as a pet project of IT, but rather as an enterprise-wide, business-driven initiative.

    Impact and Result

    Info-Tech’s approach to establishing and sustaining effective data governance is anchored in the strong alignment of organizational value streams and their business capabilities with key data governance dimensions and initiatives. Info-Tech's approach will help you:

    • Align your data governance with enterprise governance, business strategy, and the organizational value streams to ensure the program delivers measurable business value.
    • Understand your current data governance capabilities and build out a future state that is right-sized and relevant.
    • Define data governance leadership, accountability, and responsibility.
    • Ensure data governance is supported by an operating model that effectively manages change and communication and fosters a culture of data excellence.

    Establish Data Governance Research & Tools

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

    1. Data Governance Research – A step-by-step document to ensure that the people handling the data are involved in the decisions surrounding data usage, data quality, business processes, and change implementation.

    Data governance is a strategic program that will help your organization control data by managing the people, processes, and information technology needed to ensure that accurate and consistent data policies exist across varying lines of the business, enabling data-driven insight. This research will provide an overview of data governance and its importance to your organization, assist in making the case and securing buy-in for data governance, identify data governance best practices and the challenges associated with them, and provide guidance on how to implement data governance best practices for a successful launch.

    • Establish Data Governance – Phases 1-3

    2. Data Governance Planning and Roadmapping Workbook – A structured tool to assist with establishing effective data governance practices.

    This workbook will help your organization understand the business and user context by leveraging your business capability map and value streams, develop data use cases using Info-Tech's framework for building data use cases, and gauge the current state of your organization's data culture.

    • Data Governance Planning and Roadmapping Workbook

    3. Data Use Case Framework Template – An exemplar template to highlight and create relevant use cases around the organization’s data-related problems and opportunities.

    This business needs gathering activity will highlight and create relevant use cases around data-related problems or opportunities that are clear and contained and, if addressed, will deliver value to the organization. This template provides a framework for data requirements and a mapping methodology for creating use cases.

    • Data Use Case Framework Template

    4. Data Governance Initiative Planning and Roadmap Tool – A visual roadmapping tool to assist with establishing effective data governance practices.

    This tool will help your organization plan the sequence of activities, capture start dates and expected completion dates, and create a roadmap that can be effectively communicated to the organization.

    • Data Governance Initiative Planning and Roadmap Tool

    5. Business Data Catalog – A comprehensive template to help you to document the key data assets that are to be governed based on in-depth business unit interviews, data risk/value assessments, and a data flow diagram for the organization.

    Use this template to document information about key data assets such as data definition, source system, possible values, data sensitivity, data steward, and usage of the data.

    • Business Data Catalog

    6. Data Governance Program Charter Template – A program charter template to sell the importance of data governance to senior executives.

    This template will help get the backing required to get a data governance project rolling. The program charter will help communicate the project purpose, define the scope, and identify the project team, roles, and responsibilities.

    • Data Governance Program Charter Template

    7. Data Governance Policy

    This policy establishes uniform data governance standards and identifies the shared responsibilities for assuring the integrity of the data and that it efficiently and effectively serves the needs of your organization.

    • Data Governance Policy

    8. Data Governance Exemplar – An exemplar showing how you can plan and document your data governance outputs.

    Use this exemplar to understand how to establish data governance in your organization. Follow along with the sections of the blueprint Establish Data Governance and complete the document as you progress.

    • Data Governance Exemplar
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    Workshop: Establish Data Governance

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

    1 Establish Business Context and Value

    The Purpose

    Identify key business data assets that need to be governed.

    Create a unifying vision for the data governance program.

    Key Benefits Achieved

    Understand the value of data governance and how it can help the organization better leverage its data.

    Gain knowledge of how data governance can benefit both IT and the business.

    Activities

    1.1 Establish business context, value, and scope of data governance at the organization

    1.2 Introduction to Info-Tech’s data governance framework

    1.3 Discuss vision and mission for data governance

    1.4 Understand your business architecture, including your business capability map and value streams

    1.5 Build use cases aligned to core business capabilities

    Outputs

    Sample use cases (tied to the business capability map) and a repeatable use case framework

    Vision and mission for data governance

    2 Understand Current Data Governance Capabilities and Plot Target-State Levels

    The Purpose

    Assess which data contains value and/or risk and determine metrics that will determine how valuable the data is to the organization.

    Assess where the organization currently stands in data governance initiatives.

    Determine gaps between the current and future states of the data governance program.

    Key Benefits Achieved

    Gain a holistic understanding of organizational data and how it flows through business units and systems.

    Identify which data should fall under the governance umbrella.

    Determine a practical starting point for the program.

    Activities

    2.1 Understand your current data governance capabilities and maturity

    2.2 Set target-state data governance capabilities

    Outputs

    Current state of data governance maturity

    Definition of target state

    3 Build Data Domain to Data Governance Role Mapping

    The Purpose

    Determine strategic initiatives and create a roadmap outlining key steps required to get the organization to start enabling data-driven insights.

    Determine timing of the initiatives.

    Key Benefits Achieved

    Establish clear direction for the data governance program.

    Step-by-step outline of how to create effective data governance, with true business-IT collaboration.

    Activities

    3.1 Evaluate and prioritize performance gaps

    3.2 Develop and consolidate data governance target-state initiatives

    3.3 Define the role of data governance: data domain to data governance role mapping

    Outputs

    Target-state data governance initiatives

    Data domain to data governance role mapping

    4 Formulate a Plan to Get to Your Target State

    The Purpose

    Consolidate the roadmap and other strategies to determine the plan of action from Day One.

    Create the required policies, procedures, and positions for data governance to be sustainable and effective.

    Key Benefits Achieved

    Prioritized initiatives with dependencies mapped out.

    A clearly communicated plan for data governance that will have full business backing.

    Activities

    4.1 Identify and prioritize next steps

    4.2 Define roles and responsibilities and complete a high-level RACI

    4.3 Wrap-up and discuss next steps and post-workshop support

    Outputs

    Initialized roadmap

    Initialized RACI

    Further reading

    Establish Data Governance

    Deliver measurable business value.

    Executive Brief

    Analyst Perspective

    Establish a data governance program that brings value to your organization.

    Picture of analyst

    Data governance does not sit as an island on its own in the organization – it must align with and be driven by your enterprise governance. As you build out data governance in your organization, it’s important to keep in mind that this program is meant to be an enabling framework of oversight and accountabilities for managing, handling, and protecting your company’s data assets. It should never be perceived as bureaucratic or inhibiting to your data users. It should deliver agreed-upon models that are conducive to your organization’s operating culture, offering clarity on who can do what with the data and via what means. Data governance is the key enabler for bringing high-quality, trusted, secure, and discoverable data to the right users across your organization. Promote and drive the responsible and ethical use of data while helping to build and foster an organizational culture of data excellence.

    Crystal Singh

    Director, Research & Advisory, Data & Analytics Practice

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    The amount of data within organizations is growing at an exponential rate, creating a need to adopt a formal approach to governing data. However, many organizations remain uninformed on how to effectively govern their data. Comprehensive data governance should define leadership, accountability, and responsibility related to data use and handling and be supported by a well-oiled operating model and relevant policies and procedures. This will help ensure the right data gets to the right people at the right time, using the right mechanisms.

    Common Obstacles

    Organizations are faced with challenges associated with changing data landscapes, evolving business models, industry disruptions, regulatory and compliance obligations, and changing and maturing user landscape and demand for data. Although the need for a data governance program is often evident, organizations miss the mark when their data governance efforts are not directly aligned to delivering measurable business value. Initiatives should support key strategic initiatives, as well as value streams and their underlying business capabilities.

    Info-Tech’s Approach

    Info-Tech’s approach to establishing and sustaining effective data governance is anchored in the strong alignment of organizational value streams and their business capabilities with key data governance dimensions and initiatives. Organizations should:

    • Align their data governance with enterprise governance, business strategy and value streams to ensure the program delivers measurable business value.
    • Understand their current data governance capabilities so as to build out a future state that is right-sized and relevant.
    • Define data leadership, accountability, and responsibility. Support these with an operating model that effectively manages change and communication and fosters a culture of data excellence.

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face elevated operating costs, missed opportunities, eroded stakeholder satisfaction, and increased business risk.

    Your challenge

    This research is designed to help organizations build and sustain an effective data governance program.

    • Your organization has recognized the need to treat data as a corporate asset for generating business value and/or managing and mitigating risk.
    • This has brought data governance to the forefront and highlighted the need to build a performance-driven enterprise program for delivering quality, trusted, and readily consumable data to users.
    • An effective data governance program is one that defines leadership, accountability, and responsibility related to data use and handling. It’s supported by a well-oiled operating model and relevant policies and procedures, all of which help build and foster a culture of data excellence where the right users get access to the right data at the right time via the right mechanisms.

    As you embark on establishing data governance in your organization, it’s vital to ensure from the get-go that you define the drivers and business context for the program. Data governance should never be attempted without direction on how the program will yield measurable business value.

    “Data processing and cleanup can consume more than half of an analytics team’s time, including that of highly paid data scientists, which limits scalability and frustrates employees.” – Petzold, et al., 2020

    Image is a circle graph and 30% of it is coloured with the number 30% in the middle of the graph

    “The productivity of employees across the organization can suffer.” – Petzold, et al., 2020

    Respondents to McKinsey’s 2019 Global Data Transformation Survey reported that an average of 30% of their total enterprise time was spent on non-value-added tasks because of poor data quality and availability. – Petzold, et al., 2020

    Common obstacles

    Some of the barriers that make data governance difficult to address for many organizations include:

    • Gaps in communicating the strategic value of data and data governance to the organization. This is vital for securing senior leadership buy-in and support, which, in turn, is crucial for sustained success of the data governance program.
    • Misinterpretation or a lack of understanding about data governance, including what it means for the organization and the individual data user.
    • A perception that data governance is inhibiting or an added layer of bureaucracy or complication rather than an enabling and empowering framework for stakeholders in their use and handling of data.
    • Embarking on data governance without firmly substantiating and understanding the organizational drivers for doing so. How is data governance going to support the organization’s value streams and their various business capabilities?
    • Neglecting to define and measure success and performance. Just as in any other enterprise initiative, you have to be able to demonstrate an ROI for time, resources and funding. These metrics must demonstrate the measurable business value that data governance brings to the organization.
    • Failure to align data governance with enterprise governance.
    Image is a circle graph and 78% of it is coloured with the number 78% in the middle of the graph

    78% of companies (and 92% of top-tier companies) have a corporate initiative to become more data-driven. – Alation, 2020

    Image is a circle graph and 58% of it is coloured with the number 58% in the middle of the graph

    But despite these ambitions, there appears to be a “data culture disconnect” – 58% of leaders overestimate the current data culture of their enterprises, giving a grade higher than the one produced by the study. – Fregoni, 2020

    The strategic value of data

    Power intelligent and transformative organizational performance through leveraging data.

    Respond to industry disruptors

    Optimize the way you serve your stakeholders and customers

    Develop products and services to meet ever-evolving needs

    Manage operations and mitigate risk

    Harness the value of your data

    The journey to being data-driven

    The journey to declaring that you are a data-driven organization requires a pit stop at data enablement.

    The Data Economy

    Data Disengaged

    You have a low appetite for data and rarely use data for decision making.

    Data Enabled

    Technology, data architecture, and people and processes are optimized and supported by data governance.

    Data Driven

    You are differentiating and competing on data and analytics; described as a “data first” organization. You’re collaborating through data. Data is an asset.

    Data governance is essential for any organization that makes decisions about how it uses its data.

    Data governance is an enabling framework of decision rights, responsibilities, and accountabilities for data assets across the enterprise.

    Data governance is:

    • Executed according to agreed-upon models that describe who can take what actions with what information, when, and using what methods (Olavsrud, 2021).
    • True business-IT collaboration that will lead to increased consistency and confidence in data to support decision making. This, in turn, helps fuel innovation and growth.

    If done correctly, data governance is not:

    • An annoying, finger-waving roadblock in the way of getting things done.
    • Meant to solve all data-related business or IT problems in an organization.
    • An inhibitor or impediment to using and sharing data.

    Info-Tech’s Data Governance Framework

    An image of Info-Tech's Data Governance Framework

    Create impactful data governance by embedding it within enterprise governance

    A model is depicted to show the relationship between enterprise governance and data governance.

    Organizational drivers for data governance

    Data governance personas:

    Conformance: Establishing data governance to meet regulations and compliance requirements.

    Performance: Establishing data governance to fuel data-driven decision making for driving business value and managing and mitigating business risk.

    Two images are depicted that show the difference between conformance and performance.

    Data Governance is not a one-person show

    • Data governance needs a leader and a home. Define who is going to be leading, driving, and steering data governance in your organization.
    • Senior executive leaders play a crucial role in championing and bringing visibility to the value of data and data governance. This is vital for building and fostering a culture of data excellence.
    • Effective data governance comes with business and IT alignment, collaboration, and formally defined roles around data leadership, ownership, and stewardship.
    Four circles are depicted. There is one person in the circle on the left and is labelled: Data Governance Leadership. The circle beside it has two people in it and labelled: Organizational Champions. The circle beside it has three people in it and labelled: Data Owners, Stewards & Custodians. The last circle has four people in it and labelled: The Organization & Data Storytellers.

    Traditional data governance organizational structure

    A traditional structure includes committees and roles that span across strategic, tactical, and operational duties. There is no one-size-fits-all data governance structure. However, most organizations follow a similar pattern when establishing committees, councils, and cross-functional groups. Most organizations strive to identify roles and responsibilities at a strategic and operational level. Several factors will influence the structure of the program, such as the focus of the data governance project and the maturity and size of the organization.

    A triangular model is depicted and is split into three tiers to show the traditional data governance organizational structure.

    A healthy data culture is key to amplifying the power of your data.

    “Albert Einstein is said to have remarked, ‘The world cannot be changed without changing our thinking.’ What is clear is that the greatest barrier to data success today is business culture, not lagging technology. “– Randy Bean, 2020

    What does it look like?

    • Everybody knows the data.
    • Everybody trusts the data.
    • Everybody talks about the data.

    “It is not enough for companies to embrace modern data architectures, agile methodologies, and integrated business-data teams, or to establish centers of excellence to accelerate data initiatives, when only about 1 in 4 executives reported that their organization has successfully forged a data culture.”– Randy Bean, 2020

    Data literacy is an essential part of a data-driven culture

    • In a data-driven culture, decisions are made based on data evidence, not on gut instinct.
    • Data often has untapped potential. A data-driven culture builds tools and skills, builds users’ trust in the condition and sources of data, and raises the data skills and understanding among their people on the front lines.
    • Building a data culture takes an ongoing investment of time, effort, and money. This investment will not achieve the transformation you want without data literacy at the grassroots level.

    Data-driven culture = “data matters to our company”

    Despite investments in data initiative, organizations are carrying high levels of data debt

    Data debt is “the accumulated cost that is associated with the sub-optimal governance of data assets in an enterprise, like technical debt.”

    Data debt is a problem for 78% of organizations.

    40% of organizations say individuals within the business do not trust data insights.

    66% of organizations say a backlog of data debt is impacting new data management initiatives.

    33% of organizations are not able to get value from a new system or technology investment.

    30% of organizations are unable to become data-driven.

    Source: Experian, 2020

    Absent or sub-optimal data governance leads to data debt

    Only 3% of companies’ data meets basic quality standards. (Source: Nagle, et al., 2017)

    Organizations suspect 28% of their customer and prospect data is inaccurate in some way. (Source: Experian, 2020)

    Only 51% of organizations consider the current state of their CRM or ERP data to be clean, allowing them to fully leverage it. (Source: Experian, 2020)

    35% of organizations say they’re not able to see a ROI for data management initiatives. (Source: Experian, 2020)

    Embrace the technology

    Make the available data governance tools and technology work for you:

    • Data catalog
    • Business data glossary
    • Data lineage
    • Metadata management

    While data governance tools and technologies are no panacea, leverage their automated and AI-enabled capabilities to augment your data governance program.

    Logos of data governance tools and technology.

    Measure success to demonstrate tangible business value

    Put data governance into the context of the business:

    • Tie the value of data governance and its initiatives back to the business capabilities that are enabled.
    • Leverage the KPIs of those business capabilities to demonstrate tangible and measurable value. Use terms and language that will resonate with senior leadership.

    Don’t let measurement be an afterthought:

    Start substantiating early on how you are going to measure success as your data governance program evolves.

    Build a right-sized roadmap

    Formulate an actionable roadmap that is right-sized to deliver value in your organization.

    Key considerations:

    • When building your data governance roadmap, ensure you do so through an enterprise lens. Be cognizant of other initiatives that might be coming down the pipeline that may require you to align your data governance milestones accordingly.
    • Apart from doing your planning with consideration for other big projects or launches that might be in-flight and require the time and attention of your data governance partners, also be mindful of the more routine yet still demanding initiatives.
    • When doing your roadmapping, consider factors like the organization’s fiscal cycle, typical or potential year-end demands, and monthly/quarterly reporting periods and audits. Initiatives such as these are likely to monopolize the time and focus of personnel key to delivering on your data governance milestones.

    Sample milestones:

    Data Governance Leadership & Org Structure Definition

    Define the home for data governance and other key roles around ownership and stewardship, as approved by senior leadership.

    Data Governance Charter and Policies

    Create a charter for your program and build/refresh associated policies.

    Data Culture Diagnostic

    Understand the organization’s current data culture, perception of data, value of data, and knowledge gaps.

    Use Case Build and Prioritization

    Build a use case that is tied to business capabilities. Prioritize accordingly.

    Business Data Glossary

    Build and/or refresh the business’ glossary for addressing data definitions and standardization issues.

    Tools & Technology

    Explore the tools and technology offering in the data governance space that would serve as an enabler to the program. (e.g. RFI, RFP).

    Key takeaways for effective business-driven data governance

    Data governance leadership and sponsorship is key.

    Ensure strategic business alignment.

    Build and foster a culture of data excellence.

    Evolve along the data journey.

    Make data governance an enabler, not a hindrance.

    Insight summary

    Overarching insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face the impact of elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.

    Insight 1

    Data governance should not sit as an island in your organization. It must continuously align with the organization’s enterprise governance function. It shouldn’t be perceived as a pet project of IT, but rather as an enterprise-wide, business-driven initiative.

    Insight 2

    Ensure your data governance program delivers measurable business value by aligning the associated data governance initiatives with the business architecture. Leverage the measures of success or KPIs of the underlying business capabilities to demonstrate the value data governance has yielded for the organization.

    Insight 3

    Data governance remains the foundation of all forms of reporting and analytics. Advanced capabilities such as AI and machine learning require effectively governed data to fuel their success.

    Tactical insight

    Tailor your data literacy program to meet your organization’s needs, filling your range of knowledge gaps and catering to your different levels of stakeholders. When it comes to rolling out a data literacy program, there is no one-size-fits-all solution. Your data literacy program is intended to fill the knowledge gaps about data, as they exist in your organization. It should be targeted across the board – from your executive leadership and management through to the subject matter experts across different lines of the business in your organization.

    Info-Tech’s methodology for establishing data governance

    1. Build Business and User Context 2. Understand Your Current Data Governance Capabilities 3. Build a Target State Roadmap and Plan
    Phase Steps
    1. Substantiate Business Drivers
    2. Build High-Value Use Cases for Data Governance
    1. Understand the Key Components of Data Governance
    2. Gauge Your Organization’s Current Data Culture
    1. Formulate an Actionable Roadmap and Right-Sized Plan
    Phase Outcomes
    • Your organization’s business capabilities and value streams
    • A business capability map for your organization
    • Categorization of your organization’s key capabilities
    • A strategy map tied to data governance
    • High-value use cases for data governance
    • An understanding of the core components of an effective data governance program
    • An understanding your organization’s current data culture
    • A data governance roadmap and target-state plan comprising of prioritized initiatives

    Blueprint deliverables

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

    Screenshot of Info-Tech's Data Governance Planning and Roadmapping Workbook data-verified=

    Data Governance Planning and Roadmapping Workbook

    Use the Data Governance Planning and Roadmapping Workbook as you plan, build, roll-out, and scale data governance in your organization.

    Screenshot of Info-Tech's Data Use Case Framework Template

    Data Use Case Framework Template

    This template takes you through a business needs gathering activity to highlight and create relevant use cases around the organization’s data-related problems and opportunities.

    Screenshot of Info-Tech's Business Data Glossary data-verified=

    Business Data Glossary

    Use this template to document the key data assets that are to be governed and create a data flow diagram for your organization.

    Screenshot of Info-Tech's Data Culture Diagnostic and Scorecard data-verified=

    Data Culture Diagnostic and Scorecard

    Leverage Info-Tech’s Data Culture Diagnostic to understand how your organization scores across 10 areas relating to data culture.

    Key deliverable:

    Data Governance Planning and Roadmapping Workbook

    Measure the value of this blueprint

    Leverage this blueprint’s approach to ensure your data governance initiatives align and support your key value streams and their business capabilities.

    • Aligning your data governance program and its initiatives to your organization’s business capabilities is vital for tracing and demonstrating measurable business value for the program.
    • This alignment of data governance with value streams and business capabilities enables you to use business-defined KPIs and demonstrate tangible value.
    Screenshot from this blueprint on the Measurable Business Value

    In phases 1 and 2 of this blueprint, we will help you establish the business context, define your business drivers and KPIs, and understand your current data governance capabilities and strengths.

    In phase 3, we will help you develop a plan and a roadmap for addressing any gaps and improving the relevant data governance capabilities so that data is well positioned to deliver on those defined business metrics.

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

    DIY Toolkit

    "Our team, has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

    Guided Implementation

    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keeps us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks are used throughout all four options.

    Establish Data Governance project overview

    Contact your account representative for more information. workshops@infotech.com 1-888-670-8889

    1. Build Business and User context2. Understand Your Current Data Governance Capabilities3. Build a Target State Roadmap and Plan
    Best-Practice Toolkit
    1. Substantiate Business Drivers
    2. Build High-Value Use Cases for Data Governance
    1. Understand the Key Components of Data Governance
    2. Gauge Your Organization’s Current Data Culture
    1. Formulate an Actionable Roadmap and Right-Sized Plan
    Guided Implementation
    • Call 1
    • Call 2
    • Call 3
    • Call 4
    • Call 5
    • Call 6
    • Call 7
    • Call 8
    • Call 9
    Phase Outcomes
    • Your organization’s business capabilities and value streams
    • A business capability map for your organization
    • Categorization of your organization’s key capabilities
    • A strategy map tied to data governance
    • High-value use cases for data governance
    • An understanding of the core components of an effective data governance program
    • An understanding your organization’s current data culture
    • A data governance roadmap and target-state plan comprising of prioritized initiatives

    Guided Implementation

    What does a typical GI on this topic look like?

    An outline of what guided implementation looks like.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization. A typical GI is between 8 to 12 calls over the course of 4 to 6 months.

    Workshop overview

    Contact your account representative for more information. workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4
    Establish Business Context and Value Understand Current Data Governance Capabilities and Plot Target-State Levels Build Data Domain to Data Governance Role Mapping Formulate a Plan to Get to Your Target State
    Activities
    • Establish business context, value, and scope of data governance at the organization
    • Introduction to Info-Tech’s data governance framework
    • Discuss vision and mission for data governance
    • Understand your business architecture, including your business capability map and value streams
    • Build use cases aligned to core business capabilities
    • Understand your current data governance capabilities and maturity
    • Set target state data governance capabilities
    • Evaluate and prioritize performance gaps
    • Develop and consolidate data governance target-state initiatives
    • Define the role of data governance: data domain to data governance role mapping
    • Identify and prioritize next steps
    • Define roles and responsibilities and complete a high-level RACI
    • Wrap-up and discuss next steps and post-workshop support
    Deliverables
    1. Sample use cases (tied to the business capability map) and a repeatable use case framework
    2. Vision and mission for data governance
    1. Current state of data governance maturity
    2. Definition of target state
    1. Target-state data governance initiatives
    2. Data domain to data governance role mapping
    1. Initialized roadmap
    2. Initialized RACI

    Phase 1

    Build Business and User Context

    Three circles are in the image that list the three phases and the main steps. Phase 1 is highlighted.

    “When business users are invited to participate in the conversation around data with data users and IT, it adds a fundamental dimension — business context. Without a real understanding of how data ties back to the business, the value of analysis and insights can get lost.” – Jason Lim, Alation

    This phase will guide you through the following activities:

    • Identify Your Business Capabilities
    • Define your Organization’s Key Business Capabilities
    • Develop a Strategy Map that Aligns Business Capabilities to Your Strategic Focus

    This phase involves the following participants:

    • Data Governance Leader/Data Leader (CDO)
    • Senior Business Leaders
    • Business SMEs
    • Data Leadership, Data Owners, Data Stewards and Custodians

    Step 1.1

    Substantiate Business Drivers

    Activities

    1.1.1 Identify Your Business Capabilities

    1.1.2 Categorize Your Organization’s Key Business Capabilities

    1.1.3 Develop a Strategy Map Tied to Data Governance

    This step will guide you through the following activities:

    • Leverage your organization’s existing business capability map or initiate the formulation of a business capability map, guided by info-Tech’s approach
    • Determine which business capabilities are considered high priority by your organization
    • Map your organization’s strategic objectives to value streams and capabilities to communicate how objectives are realized with the support of data

    Outcomes of this step

    • A foundation for data governance initiative planning that’s aligned with the organization’s business architecture: value streams, business capability map, and strategy map

    Info-Tech Insight

    Gaining a sound understanding of your business architecture (value streams and business capabilities) is a critical foundation for establishing and sustaining a data governance program that delivers measurable business value.

    1.1.1 Identify Your Business Capabilities

    Confirm your organization's existing business capability map or initiate the formulation of a business capability map:

    • If you have an existing business capability map, meet with the relevant business owners/stakeholders to confirm that the content is accurate and up to date. Confirm the value streams (how your organization creates and captures value) and their business capabilities are reflective of the organization’s current business environment.
    • If you do not have an existing business capability map, follow this activity to initiate the formulation of a map (value streams and related business capabilities):
      1. Define the organization’s value streams. Meet with senior leadership and other key business stakeholders to define how your organization creates and captures value.
      2. Define the relevant business capabilities. Meet with senior leadership and other key business stakeholders to define the business capabilities.

    Note: A business capability defines what a business does to enable value creation. Business capabilities are business terms defined using descriptive nouns such as “Marketing” or “Research and Development.” They represent stable business functions, are unique and independent of each other, and typically will have a defined business outcome.

    Input

    • List of confirmed value streams and their related business capabilities

    Output

    • Business capability map with value streams for your organization

    Materials

    • Your existing business capability map or the template provided in the Data Governance Planning and Roadmapping Workbook accompanying this blueprint

    Participants

    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data Governance Working Group

    For more information, refer to Info-Tech’s Document Your Business Architecture.

    Define or validate the organization’s value streams

    Value streams connect business goals to the organization’s value realization activities. These value realization activities, in turn, depend on data.

    If the organization does not have a business architecture function to conduct and guide Activity 1.1.1, you can leverage the following approach:

    • Meet with key stakeholders regarding this topic, then discuss and document your findings.
    • When trying to identify the right stakeholders, consider: Who are the decision makers and key influencers? Who will impact this piece of business architecture related work? Who has the relevant skills, competencies, experience, and knowledge about the organization?
    • Engage with these stakeholders to define and validate how the organization creates value.
    • Consider:
      • Who are your main stakeholders? This will depend on the industry in which you operate. For example, customers, residents, citizens, constituents, students, patients.
      • What are your stakeholders looking to accomplish?
      • How does your organization’s products and/or services help them accomplish that?
      • What are the benefits your organization delivers to them and how does your organization deliver those benefits?
      • How do your stakeholders receive those benefits?

    Align data governance to the organization's value realization activities.

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face the possibilities of elevated operational costs, missed opportunities, eroded stakeholder satisfaction, negative impact to reputation and brand, and/or increased exposure to business risk.

    Example of value streams – Retail Banking

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Retail Banking

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for retail banking.

    For this value stream, download Info-Tech’s Info-Tech’s Industry Reference Architecture for Retail Banking.

    Example of value streams – Higher Education

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Higher Education

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for higher education

    For this value stream, download Info-Tech’s Industry Reference Architecture for Higher Education.

    Example of value streams – Local Government

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Local Government

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for local government

    For this value stream, download Info-Tech’s Industry Reference Architecture for Local Government.

    Example of value streams – Manufacturing

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Manufacturing

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    Model example of value streams for manufacturing

    For this value stream, download Info-Tech’s Industry Reference Architecture for Manufacturing.

    Example of value streams – Retail

    Value streams connect business goals to the organization’s value realization activities.

    Example value stream descriptions for: Retail

    Model example of value streams for retail

    Value streams enable the organization to create or capture value in the market in which it operates by engaging in a set of interconnected activities.

    For this value stream, download Info-Tech’s Industry Reference Architecture for Retail.

    Define the organization’s business capabilities in a business capability map

    A business capability defines what a business does to enable value creation. Business capabilities represent stable business functions and typically will have a defined business outcome.

    Business capabilities can be thought of as business terms defined using descriptive nouns such as “Marketing” or “Research and Development.”

    If your organization doesn’t already have a business capability map, you can leverage the following approach to build one. This initiative requires a good understanding of the business. By working with the right stakeholders, you can develop a business capability map that speaks a common language and accurately depicts your business.

    Working with the stakeholders as described above:

    • Analyze the value streams to identify and describe the organization’s capabilities that support them.
    • Consider: What is the objective of your value stream? (This can highlight which capabilities support which value stream.)
    • As you initiate your engagement with your stakeholders, don’t start a blank page. Leverage the examples on the next slides as a starting point for your business capability map.
    • When using these examples, consider: What are the activities that make up your particular business? Keep the ones that apply to your organization, remove the ones that don’t, and add any needed.

    Align data governance to the organization's value realization activities.

    Info-Tech Insight

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    For more information, refer to Info-Tech’s Document Your Business Architecture.

    Example business capability map – Retail Banking

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Retail Banking

    Model example business capability map for retail banking

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Retail Banking.

    Example business capability map – Higher Education

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Higher Education

    Model example business capability map for higher education

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Higher Education.

    Example business capability map – Local Government

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Local Government

    Model example business capability map for local government

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Local Government.

    Example business capability map – Manufacturing

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Manufacturing

    Model example business capability map for manufacturing

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Manufacturing.

    Example business capability map - Retail

    A business capability map can be thought of as a visual representation of your organization’s business capabilities and hence represents a view of what your data governance program must support.

    Validate your business capability map with the right stakeholders, including your executive team, business unit leaders, and/or other key stakeholders.

    Info-Tech Tip:

    Leverage your business capability map verification session with these key stakeholders as a prime opportunity to share and explain the role of data and data governance in supporting the very value realization capabilities under discussion. This will help to build awareness and visibility of the data governance program.

    Example business capability map for: Retail

    Model example business capability map for retail

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Retail.

    1.1.2 Categorize Your Organization’s Key Capabilities

    Determine which capabilities are considered high priority in your organization.

    1. Categorize or heatmap the organization’s key capabilities. Consult with senior and other key business stakeholders to categorize and prioritize the business’ capabilities. This will aid in ensuring your data governance future state planning is aligned with the mandate of the business. One approach to prioritizing capabilities with business stakeholders is to examine them through the lens of cost advantage creators, competitive advantage differentiators, and/or by high value/high risk.
    2. Identify cost advantage creators. Focus on capabilities that drive a cost advantage for your organization. Highlight these capabilities and prioritize programs that support them.
    3. Identify competitive advantage differentiators. Focus on capabilities that give your organization an edge over rivals or other players in your industry.

    This categorization/prioritization exercise helps highlight prime areas of opportunity for building use cases, determining prioritization, and the overall optimization of data and data governance.

    Input

    • Strategic insight from senior business stakeholders on the business capabilities that drive value for the organization

    Output

    • Business capabilities categorized and prioritized (e.g. cost advantage creators, competitive advantage differentiators, high value/high risk)

    Materials

    • Your existing business capability map or the business capability map derived in the previous activity

    Participants

    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data Governance Working Group

    For more information, refer to Info-Tech’s Document Your Business Architecture.

    Example of business capabilities categorization or heatmapping – Retail

    This exercise is useful in ensuring the data governance program is focused and aligned to support the priorities and direction of the business.

    • Depending on the mandate from the business, priority may be on developing cost advantage. Hence the capabilities that deliver efficiency gains are the ones considered to be cost advantage creators.
    • The business’ priority may be on maintaining or gaining a competitive advantage over its industry counterparts. Differentiation might be achieved in delivering unique or enhanced products, services, and/or experiences, and the focus will tend to be on the capabilities that are more end-stakeholder-facing (e.g. customer-, student-, patient,- and/or constituent-facing). These are the organization’s competitive advantage creators.

    Example: Retail

    Example of business capabilities categorization or heatmapping – Retail

    For this business capability map, download Info-Tech’s Industry Reference Architecture for Retail.

    1.1.3 Develop a Strategy Map Tied to Data Governance

    Identify the strategic objectives for the business. Knowing the key strategic objectives will drive business-data governance alignment. It’s important to make sure the right strategic objectives of the organization have been identified and are well understood.

    1. Meet with senior business leaders and other relevant stakeholders to help identify and document the key strategic objectives for the business.
    2. Leverage their knowledge of the organization’s business strategy and strategic priorities to visually represent how these map to value streams, business capabilities, and, ultimately, to data and data governance needs and initiatives. Tip: Your map is one way to visually communicate and link the business strategy to other levels of the organization.
    3. Confirm the strategy mapping with other relevant stakeholders.

    Guide to creating your map: Starting with strategic objectives, map the value streams that will ultimately drive them. Next, link the key capabilities that enable each value stream. Then map the data and data governance to initiatives that support those capabilities. This is one approach to help you prioritize the data initiatives that deliver the most value to the organization.

    Input

    • Strategic objectives as outlined by the organization’s business strategy and confirmed by senior leaders

    Output

    • A strategy map that maps your organizational strategic objectives to value streams, business capabilities, and, ultimately, to data program

    Materials

    Participants

    • Key business stakeholders
    • Data stewards
    • Data custodians
    • Data Governance Working Group

    Download Info-Tech’s Data Governance Planning and Roadmapping Workbook

    Example of a strategy map tied to data governance

    • Strategic objectives are the outcomes that the organization is looking to achieve.
    • Value streams enable an organization to create and capture value in the market through interconnected activities that support strategic objectives.
    • Business capabilities define what a business does to enable value creation in value streams.
    • Data capabilities and initiatives are descriptions of action items on the data and data governance roadmap and which will enable one or multiple business capabilities in its desired target state.

    Info-Tech Tip:

    Start with the strategic objectives, then map the value streams that will ultimately drive them. Next, link the key capabilities that enable each value stream. Then map the data and data governance initiatives that support those capabilities. This process will help you prioritize the data initiatives that deliver the most value to the organization.

    Example: Retail

    Example of a strategy map tied to data governance for retail

    For this strategy map, download Info-Tech’s Industry Reference Architecture for Retail.

    Step 1.2

    Build High-Value Use Cases for Data Governance

    Activities

    1.2.1 Build High-Value Use Cases

    This step will guide you through the following activities:

    • Leveraging your categorized business capability map to conduct deep-dive sessions with key business stakeholders for creating high-value uses cases
    • Discussing current challenges, risks, and opportunities associated with the use of data across the lines of business
    • Exploring which other business capabilities, stakeholder groups, and business units will be impacted

    Outcomes of this step

    • Relevant use cases that articulate the data-related challenges, needs, or opportunities that are clear and contained and, if addressed ,will deliver value to the organization

    Info-Tech Tip

    One of the most important aspects when building use cases is to ensure you include KPIs or measures of success. You have to be able to demonstrate how the use case ties back to the organizational priorities or delivers measurable business value. Leverage the KPIs and success factors of the business capabilities tied to each particular use case.

    1.2.1 Build High-Value Use Cases

    This business needs-gathering activity will highlight and create relevant use cases around data-related problems or opportunities that are clear and contained and, if addressed, will deliver value to the organization.

    1. Bring together key business stakeholders (data owner, stewards, SMEs) from a particular line of business as well as the relevant data custodian(s) to build cases for their units. Leverage the business capability map you created for facilitating this act.
    2. Leverage Info-Tech’s framework for data requirements and methodology for creating use cases, as outlined in the Data Use Case Framework Template and seen on the next slide.
    3. Have the stakeholders move through each breakout session outlined in the Use Case Worksheet. Use flip charts or a whiteboard to brainstorm and document their thoughts.
    4. Debrief and document results in the Data Use Case Framework Template
    5. Repeat this exercise with as many lines of the business as possible, leveraging your business capability map to guide your progress and align with business value.

    Tip: Don’t conclude these use case discussions without substantiating what measures of success will be used to demonstrate the business value of the effort to produce the desired future state, as relevant to each particular use case.

    Input

    • Value streams and business capabilities as defined by business leaders
    • Business stakeholders’ subject area expertise
    • Data custodian systems, integration, and data knowledge

    Output

    • Use cases that articulate data-related challenges, needs or opportunities that are tied to defined business capabilities and hence if addressed will deliver measurable value to the organization.

    Materials

    • Your business capability map from activity 1.1.1
    • Info-Tech’s Data Use Case Framework Template
    • Whiteboard or flip charts (or shared screen if working remotely)
    • Markers/pens

    Participants

    • Key business stakeholders
    • Data stewards and business SMEs
    • Data custodians
    • Data Governance Working Group

    Download Info-Tech’s Data Use Case Framework Template

    Info-Tech’s Framework for Building Use Cases

    Objective: This business needs-gathering activity will highlight and create relevant use cases around data-related problems or opportunities that are clear and contained and, if addressed, will deliver value to the organization.

    Leveraging your business capability map, build use cases that align with the organization’s key business capabilities.

    Consider:

    • Is the business capability a cost advantage creator or an industry differentiator?
    • Is the business capability currently underserved by data?
    • Does this need to be addressed? If so, is this risk- or value-driven?

    Info-Tech’s Data Requirements and Mapping Methodology for Creating Use Cases

    1. What business capability (or capabilities) is this use case tied to for your business area(s)?
    2. What are your data-related challenges in performing this today?
    3. What are the steps in this process/activity today?
    4. What are the applications/systems used at each step today?
    5. What data domains are involved, created, used, and/or transformed at each step today?
    6. What does an ideal or improved state look like?
    7. What other business units, business capabilities, activities, and/or processes will be impacted or improved if this issue was solved?
    8. Who are the stakeholders impacted by these changes? Who needs to be consulted?
    9. What are the risks to the organization (business capability, revenue, reputation, customer loyalty, etc.) if this is not addressed?
    10. What compliance, regulatory, and/or policy concerns do we need to consider in any solution?
    11. What measures of success or change should we use to prove the value of the effort (such as KPIs, ROI)? What is the measurable business value of doing this?

    The resulting use cases are to be prioritized and leveraged for informing the business case and the data governance capabilities optimization plan.

    Taken from Info-Tech’s Data Use Case Framework Template

    Phase 2

    Understand Your Current Data Governance Capabilities

    Three circles are in the image that list the three phases and the main steps. Phase 2 is highlighted.

    This phase will guide you through the following activities:

    • Understand the Key Components of Data Governance
    • Gauge Your Organization’s Current Data Culture

    This phase involves the following participants:

    • Data Leadership
    • Data Ownership & Stewardship
    • Policies & Procedures
    • Data Literacy & Culture
    • Operating Model
    • Data Management
    • Data Privacy & Security
    • Enterprise Projects & Services

    Step 2.1

    Understand the Key Components of Data Governance

    This step will guide you through the following activities:

    • Understanding the core components of an effective data governance program and determining your organization’s current capabilities in these areas:
      • Data Leadership
      • Data Ownership & Stewardship
      • Policies & Procedures
      • Data Literacy & Culture
      • Operating Model
      • Data Management
      • Data Privacy & Security
      • Enterprise Projects & Services

    Outcomes of this step

    • An understanding the core components of an effective data governance program
    • An understanding your organization’s current data governance capabilities

    Review: Info-Tech’s Data Governance Framework

    An image of Info-Tech's Data Governance Framework

    Key components of data governance

    A well-defined data governance program will deliver:

    • Defined accountability and responsibility for data.
    • Improved knowledge and common understanding of the organization’s data assets.
    • Elevated trust and confidence in traceable data.
    • Improved data ROI and reduced data debt.
    • An enabling framework for supporting the ethical use and handling of data.
    • A foundation for building and fostering a data-driven and data-literate organizational culture.

    The key components of establishing sustainable enterprise data governance, taken from Info-Tech’s Data Governance Framework:

    • Data Leadership
    • Data Ownership & Stewardship
    • Operating Model
    • Policies & Procedures
    • Data Literacy & Culture
    • Data Management
    • Data Privacy & Security
    • Enterprise Projects & Services

    Data Leadership

    • Data governance needs a dedicated head or leader to steer the organization’s data governance program.
    • For organizations that do have a chief data officer (CDO), their office is the ideal and effective home for data governance.
    • Heads of data governance also have titles such as director of data governance, director of data quality, and director of analytics.
    • The head of your data governance program works with all stakeholders and partners to ensure there is continuous enterprise governance alignment and oversight and to drive the program’s direction.
    • While key stakeholders from the business and IT will play vital data governance roles, the head of data governance steers the various components, stakeholders, and initiatives, and provides oversight of the overall program.
    • Vital data governance roles include: data owners, data stewards, data custodians, data governance steering committee (or your organization’s equivalent), and any data governance working group(s).

    The role of the CDO: the voice of data

    The office of the chief data officer (CDO):

    • Has a cross-organizational vision and strategy for data.
    • Owns and drives the data strategy; ensures it supports the overall organizational strategic direction and business goals.
    • Leads the organizational data initiatives, including data governance
    • Is accountable for the policy, strategy, data standards, and data literacy necessary for the organization to operate effectively.
    • Educates users and leaders about what it means to be “data-driven.”
    • Builds and fosters a culture of data excellence.

    “Compared to most of their C-suite colleagues, the CDO is faced with a unique set of problems. The role is still being defined. The chief data officer is bringing a new dimension and focus to the organization: ‘data.’ ”

    – Carruthers and Jackson, 2020

    Who does the CDO report to?

    Example reporting structure.
    • The CDO should be a true C- level executive.
    • Where the organization places the CDO role in the structure sends an important signal to the business about how much it values data.

    “The title matters. In my opinion, you can’t have a CDO without executive authority. Otherwise no one will listen.”

    – Anonymous European CDO

    “The reporting structure depends on who’s the ‘glue’ that ties together all these uniquely skilled individuals.”

    – John Kemp, Senior Director, Executive Services, Info-Tech Research Group

    Data Ownership & Stewardship

    Who are best suited to be data owners?

    • Wherever they may sit in your organization, data owners will typically have the highest stake in that data.
    • Data owners need to be suitably senior and have the necessary decision-making power.
    • They have the highest interest in the related business data domain, whether they are the head of a business unit or the head of a line of business that produces data or consumes data (or both).
    • If they are neither of these, it’s unlikely they will have the interest in the data (in terms of its quality, protection, ethical use, and handling, for instance) necessary to undertake and adopt the role effectively.

    Data owners are typically senior business leaders with the following characteristics:

    • Positioned to accept accountability for their data domain.
    • Hold authority and influence to affect change, including across business processes and systems, needed to improve data quality, use, handling, integration, etc.
    • Have access to a budget and resources for data initiatives such as resolving data quality issues, data cleansing initiatives, business data catalog build, related tools and technology, policy management, etc.
    • Hold the influence needed to drive change in behavior and culture.
    • Act as ambassadors of data and its value as an organizational strategic asset.

    Right-size your data governance organizational structure

    • Most organizations strive to identify roles and responsibilities at a strategic and operational level. Several factors will influence the structure of the program such as the focus of the data governance project as well as the maturity and size of the organization.
    • Your data governance structure has to work for your organization, and it has to evolve as the organization evolves.
    • Formulate your blend of data governance roles, committees, councils, and cross-functional groups, that make sense for your organization.
    • Your data governance organizational structure should not add complexity or bureaucracy to your organization’s data landscape; it should support and enable your principle of treating data as an asset.

    There is no one-size-fits-all data governance organizational structure.

    Example of a Data Governance Organizational Structure

    Critical roles and responsibilities for data governance

    Data Governance Working Groups

    Data governance working groups:

    • Are cross-functional teams
    • Deliver on data governance projects, initiatives, and ad hoc review committees.

    Data Stewards

    Traditionally, data stewards:

    • Serve on an operational level addressing issues related to adherence to standards/procedures, monitoring data quality, raising issues identified, etc.
    • Are responsible for managing access, quality, escalating issues, etc.

    Data Custodians

    • Traditionally, data custodians:
    • Serve on an operational level addressing issues related to data and database administration.
    • Support the management of access, data quality, escalating issues, etc.
    • Are SMEs from IT and database administration.

    Example: Business capabilities to data owner and data stewards mapping for a selected data domain

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.

    Enabling business capabilities with data governance role definitions

    Example: Business capabilities to data owner and data stewards mapping for a selected data domain

    Operating Model

    Your operating model is the key to designing and operationalizing a form of data governance that delivers measurable business value to your organization.

    “Generate excitement for data: When people are excited and committed to the vision of data enablement, they’re more likely to help ensure that data is high quality and safe.” – Petzold, et al., 2020

    Operating Model

    Defining your data governance operating model will help create a well-oiled program that sustainably delivers value to the organization and manages risks while building and fostering a culture of data excellence along the way. Some organizations are able to establish a formal data governance office, whether independent or attached to the office of the chief data officer. Regardless of how you are organized, data governance requires a home, a leader, and an operating model to ensure its sustainability and evolution.

    Examples of focus areas for your operating model:

    • Delivery: While there are core tenets to every data governance program, there is a level of variability in the implementation of data governance programs across organizations, sectors, and industries. Every organization has its own particular drivers and mandates, so the level and rigor applied will also vary.
    • The key is to determine what style will work best in your organization, taking into consideration your organizational culture, executive leadership support (present and ongoing), catalysts such as other enterprise-wide transformative and modernization initiatives, and/or regulatory and compliances drivers.

    • Communication: Communication is vital across all levels and stakeholder groups. For instance, there needs to be communication from the data governance office up to senior leadership, as well as communication within the data governance organization, which is typically made up of the data governance steering committee, data governance council, executive sponsor/champion, data stewards, and data custodians and working groups.
    • Furthermore, communication with the wider organization of data producers, users, and consumers is one of the core elements of the overall data governance communications plan.

    Communication is vital for ensuring acceptance of new processes, rules, guidelines, and technologies by all data producers and users as well as for sharing success stories of the program.

    Operating Model

    Tie the value of data governance and its initiatives back to the business capabilities that are enabled.

    “Leading organizations invest in change management to build data supporters and convert the skeptics. This can be the most difficult part of the program, as it requires motivating employees to use data and encouraging producers to share it (and ideally improve its quality at the source)[.]” – Petzold, et al., 2020

    Operating Model

    Examples of focus areas for your operating model (continued):

    • Change management and issue resolution: Data governance initiatives will very likely bring about a level of organizational disruption, with governance recommendations and future state requiring potentially significant business change. This may include a redesign of a substantial number of data processes affecting various business units, which will require tweaking the organization’s culture, thought processes, and procedures surrounding its data.
    • Preparing people for change well in advance will allow them to take the steps necessary to adapt and reduce potential confrontation. By planning for and efficiently communicating any changes that a data governance initiative may bring, many initial issues can be resolved from the outset.

      Attempting to implement change without an effective communications plan can result in disagreements over data control and stalemates between stakeholder units. The recommendations of the governance group must reflect the needs of all stakeholders or there will be pushback.

    • Performance measuring, monitoring and reporting: Measuring and reporting on performance, successes, and realization of tangible business value are a must for sustaining, growing, and scaling your data governance program.
    • Aligning your data governance to the organization's value realization activities enables you to leverage the KPIs of those business capabilities to demonstrate tangible and measurable value. Use terms and language that will resonate with your senior business leadership.

    Info-Tech Tip:

    Launching a data governance program will bring with it a level of disruption to the culture of the organization. That disruption doesn’t have to be detrimental if you are prepared to manage the change proactively and effectively.

    Policies, Procedures & Standards

    “Data standards are the rules by which data are described and recorded. In order to share, exchange, and understand data, we must standardize the format as well as the meaning.” – U.S. Geological Survey

    Policies, Procedures & Standards

    • When defining, updating, or refreshing your data policies, procedures, and standards, ensure they are relevant, serve a purpose, and/or support the use of data in the organization.
    • Avoid the common pitfall of building out a host of policies, procedures, and standards that are never used or followed by users and therefore don’t bring value or serve to mitigate risk for the organization.
    • Data policies can be thought of as formal statements and are typically created, approved, and updated by the organization’s data decision-making body (such as a data governance steering committee).
    • Data standards and procedures function as actions, or rules, that support the policies and their statements.
    • Standards and procedures are designed to standardize the processes during the overall data lifecycle. Procedures are instructions to achieve the objectives of the policies. The procedures are iterative and will be updated with approval from your data governance committee as needed.
    • Your organization’s data policies, standards, and procedures should not bog down or inhibit users; rather, they should enable confident data use and handling across the overall data lifecycle. They should support more effective and seamless data capture, integration, aggregation, sharing, and retention of data in the organization.

    Examples of data policies:

    • Data Classification Policy
    • Data Retention Policy
    • Data Entry Policy
    • Data Backup Policy
    • Data Provenance Policy
    • Data Management Policy

    Data Domain Documentation

    Select the correct granularity for your business need

    Diagram of data domain documentation
    Sources: Dataversity; Atlan; Analytics8

    Data Domain Documentation Examples

    Data Domain Documentation Examples

    Data Culture

    “Organizational culture can accelerate the application of analytics, amplify its power, and steer companies away from risky outcomes.” – Petzold, et al., 2020

    A healthy data culture is key to amplifying the power of your data and to building and sustaining an effective data governance program.

    What does a healthy data culture look like?

    • Everybody knows the data.
    • Everybody trusts the data.
    • Everybody talks about the data.

    Building a culture of data excellence.

    Leverage Info-Tech’s Data Culture Diagnostic to understand your organization’s culture around data.

    Screenshot of Data Culture Scorecard

    Contact your Info-Tech Account Representative for more information on the Data Culture Diagnostic

    Cultivating a data-driven culture is not easy

    “People are at the heart of every culture, and one of the biggest challenges to creating a data culture is bringing everyone into the fold.” – Lim, Alation

    It cannot be purchased or manufactured,

    It must be nurtured and developed,

    And it must evolve as the business, user, and data landscapes evolve.

    “Companies that have succeeded in their data-driven efforts understand that forging a data culture is a relentless pursuit, and magic bullets and bromides do not deliver results.” – Randy Bean, 2020

    Hallmarks of a data-driven culture

    There is a trusted, single source of data the whole company can draw from.

    There’s a business glossary and data catalog and users know what the data fields mean.

    Users have access to data and analytics tools. Employees can leverage data immediately to resolve a situation, perform an activity, or make a decision – including frontline workers.

    Data literacy, the ability to collect, manage, evaluate, and apply data in a critical manner, is high.

    Data is used for decision making. The company encourages decisions based on objective data and the intelligent application of it.

    A data-driven culture requires a number of elements:

    • High-quality data
    • Broad access and data literacy
    • Data-driven decision-making processes
    • Effective communication

    Data Literacy

    Data literacy is an essential part of a data-driven culture.

    • Building a data-driven culture takes an ongoing investment of time, effort, and money.
    • This investment will not realize its full return without building up the organization’s data literacy.
    • Data literacy is about filling data knowledge gaps across all levels of the organization.
    • It’s about ensuring all users – senior leadership right through to core users – are equipped with appropriate levels of training, skills, understanding, and awareness around the organization’s data and the use of associated tools and technologies. Data literacy ensures users have the data they need and they know how to interpret and leverage it.
    • Data literacy drives the appetite, demand, and consumption for data.
    • A data-literate culture is one where the users feel confident and skilled in their use of data, leveraging it for making informed or evidence-based decisions and generating insights for the organization.

    Data Management

    • Data governance serves as an enabler to all of the core components that make up data management:
      • Data quality management
      • Data architecture management
      • Data platform
      • Data integration
      • Data operations management
      • Data risk management
      • Reference and master data management (MDM)
      • Document and content management
      • Metadata management
      • Business intelligence (BI), reporting, analytics and advanced analytics, artificial intelligence (AI), machine learning (ML)
    • Key tools such as the business data glossary and data catalog are vital for operationalizing data governance and in supporting data management disciplines such as data quality management, metadata management, and MDM as well as BI, reporting, and analytics.

    Enterprise Projects & Services

    • Data governance serves as an enabler to enterprise projects and services that require, use, share, sell, and/or rely on data for their viability and, ultimately, their success.
    • Folding or embedding data governance into the organization’s project management function or project management office (PMO) serves to ensure that, for any initiative, suitable consideration is given to how data is treated.
    • This may include defining parameters, following standards and procedures around bringing in new sources of data, integrating that data into the organization’s data ecosystem, using and sharing that data, and retaining that data post-project completion.
    • The data governance function helps to identify and manage any ethical issues, whether at the start of the project and/or throughout.
    • It provides a foundation for asking relevant questions as it relates to the use or incorporation of data in delivering the specific project or service. Do we know where the data obtained from? Do we have rights to use that data? Are there legislations, policies, or regulations that guide or dictate how that data can be used? What are the positive effects, negative impacts, and/or risks associated with our intended use of that data? Are we positioned to mitigate those risks?
    • Mature data governance creates organizations where the above considerations around data management and the ethical use and handling of data is routinely implemented across the business and in the rollout and delivery of projects and services.

    Data Privacy & Security

    • Data governance supports the organization’s data privacy and security functions.
    • Key tools include the data classification policy and standards and defined roles around data ownership and data stewardship. These are vital for operationalizing data governance and supporting data privacy, security, and the ethical use and handling of data.
    • While some organizations may have a dedicated data security and privacy group, data governance provides an added level of oversight in this regard.
    • Some of the typical checks and balances include ensuring:
      • There are policies and procedures in place to restrict and monitor staff’s access to data (one common way this is done is according to job descriptions and responsibilities) and that these comply with relevant laws and regulations.
      • There’s a data classification scheme in place where data has been classified on a hierarchy of sensitivity (e.g. top secret, confidential, internal, limited, public).
      • The organization has a comprehensive data security framework, including administrative, physical, and technical procedures for addressing data security issues (e.g. password management and regular training).
      • Risk assessments are conducted, including an evaluation of risks and vulnerabilities related to intentional and unintentional misuse of data.
      • Policies and procedures are in place to mitigate the risks associated with incidents such as data breaches.
      • The organization regularly audits and monitors its data security.

    Ethical Use & Handling of Data

    Data governance will support your organization’s ethical use and handling of data by facilitating definition around important factors, such as:

    • What are the various data assets in the organization and what purpose(s) can they be used for? Are there any limitations?
    • Who is the related data owner? Who holds accountability for that data? Who will be answerable?
    • Where was the data obtained from? What is the intended use of that data? Do you have rights to use that data? Are there legislations, policies, or regulations that guide or dictate how that data can be used?
    • What are the positive effects, negative impacts, and/or risks associated with the use of that data?

    Ethical Use & Handling of Data

    • Data governance serves as an enabler to the ethical use and handling of an organization’s data.
    • The Open Data Institute (ODI) defines data ethics as: “A branch of ethics that evaluates data practices with the potential to adversely impact on people and society – in data collection, sharing and use.”
    • Data ethics relates to good practice around how data is collected, used and shared. It’s especially relevant when data activities have the potential to impact people and society, whether directly or indirectly (Open Data Institute, 2019).
    • A failure to handle and use data ethically can negatively impact an organization’s direct stakeholders and/or the public at large, lead to a loss of trust and confidence in the organization's products and services, lead to financial loss, and impact the organization’s brand, reputation, and legal standing.
    • Data governance plays a vital role in building and managing your data assets, knowing what data you have, and knowing the limitations of that data. Data ownership, data stewardship, and your data governance decision-making body are key tenets and foundational components of your data governance. They enable an organization to define, categorize, and confidently make decisions about its data.

    Step 2.2

    Gauge Your Organization’s Current Data Culture

    Activities

    2.2.1 Gauge Your Organization’s Current Data Culture

    This step will guide you through the following activities:

    • Conduct a data culture survey or leverage Info-Tech’s Data Culture Diagnostic to increase your understanding of your organization’s data culture

    Outcomes of this step

    • An understanding of your organizational data culture

    2.2.1 Gauge Your Organization’s Current Data Culture

    Conduct a Data Culture Survey or Diagnostic

    The objectives of conducting a data culture survey are to increase the understanding of the organization's data culture, your users’ appetite for data, and their appreciation for data in terms of governance, quality, accessibility, ownership, and stewardship. To perform a data culture survey:

    1. Identify members of the data user base, data consumers, and other key stakeholders for surveying.
    2. Conduct an information session to introduce Info-Tech’s Data Culture Diagnostic survey. Explain the objective and importance of the survey and its role in helping to understand the organization’s current data culture and inform the improvement of that culture.
    3. Roll out the Info-Tech Data Culture Diagnostic survey to the identified users and stakeholders.
    4. Debrief and document the results and scorecard in the Data Strategy Stakeholder Interview Guide and Findings document.

    Input

    • Email addresses of participants in your organization who should receive the survey

    Output

    • Your organization’s Data Culture Scorecard for understanding current data culture as it relates to the use and consumption of data
    • An understanding of whether data is currently perceived to be an asset to the organization

    Materials

    Screenshot of Data Culture Scorecard

    Participants

    • Participants include those at the senior leadership level through to middle management, as well as other business stakeholders at varying levels across the organization
    • Data owners, stewards, and custodians
    • Core data users and consumers

    Contact your Info-Tech Account Representative for details on launching a Data Culture Diagnostic.

    Phase 3

    Build a Target State Roadmap and Plan

    Three circles are in the image that list the three phases and the main steps. Phase 3 is highlighted.

    “Achieving data success is a journey, not a sprint.” Companies that set a clear course, with reasonable expectations and phased results over a period of time, get to the destination faster.” – Randy Bean, 2020

    This phase will guide you through the following activities:

    • Build your Data Governance Roadmap
    • Develop a target state plan comprising of prioritized initiatives

    This phase involves the following participants:

    • Data Governance Leadership
    • Data Owners/Data Stewards
    • Data Custodians
    • Data Governance Working Group(s)

    Step 3.1

    Formulate an Actionable Roadmap and Right-Sized Plan

    This step will guide you through the following activities:

    • Build your data governance roadmap
    • Develop a target state plan comprising of prioritized initiatives

    Outcomes of this step

    • A foundation for data governance initiative planning that’s aligned with the organization’s business architecture: value streams, business capability map, and strategy map

    Build a right-sized roadmap

    Formulate an actionable roadmap that is right sized to deliver value in your organization.

    Key considerations:

    • When building your data governance roadmap, ensure you do so through an enterprise lens. Be cognizant of other initiatives that might be coming down the pipeline that may require you to align your data governance milestones accordingly.
    • Apart from doing your planning with consideration for other big projects or launches that might be in-flight and require the time and attention of your data governance partners, also be mindful of the more routine yet still demanding initiatives.
    • When doing your roadmapping, consider factors like the organization’s fiscal cycle, typical or potential year-end demands, and monthly/quarterly reporting periods and audits. Initiatives such as these are likely to monopolize the time and focus of personnel key to delivering on your data governance milestones.

    Sample milestones:

    Data Governance Leadership & Org Structure Definition

    Define the home for data governance and other key roles around ownership and stewardship, as approved by senior leadership.

    Data Governance Charter and Policies

    Create a charter for your program and build/refresh associated policies.

    Data Culture Diagnostic

    Understand the organization’s current data culture, perception of data, value of data, and knowledge gaps.

    Use Case Build and Prioritization

    Build a use case that is tied to business capabilities. Prioritize accordingly.

    Business Data Glossary/Catalog

    Build and/or refresh the business’ glossary for addressing data definitions and standardization issues.

    Tools & Technology

    Explore the tools and technology offering in the data governance space that would serve as an enabler to the program. (e.g. RFI, RFP).

    Recall: Info-Tech’s Data Governance Framework

    An image of Info-Tech's Data Governance Framework

    Build an actionable roadmap

    Data Governance Leadership & Org Structure Division

    Define key roles for getting started.

    Use Case Build & Prioritization

    Start small and then scale – deliver early wins.

    Literacy Program

    Start understanding data knowledge gaps, building the program, and delivering.

    Tools & Technology

    Make the available data governance tools and technology work for you.

    Key components of your data governance roadmap

    By now, you have assessed current data governance environment and capabilities. Use this assessment, coupled with the driving needs of your business, to plot your data Governance roadmap accordingly.

    Sample data governance roadmap milestones:

    • Define data governance leadership.
    • Define and formalize data ownership and stewardship (as well as the role IT/data management will play as data custodians).
    • Build/confirm your business capability map and data domains.
    • Build business data use cases specific to business capabilities.
    • Define business measures/KPIs for the data governance program (i.e. metrics by use case that are relevant to business capabilities).
    • Data management:
      • Build your data glossary or catalog starting with identified and prioritized terms.
      • Define data domains.
    • Design and define the data governance operating model (oversight model definition, communication plan, internal marketing such as townhalls, formulate change management plan, RFP of data governance tool and technology options for supporting data governance and its administration).
    • Data policies and procedures:
      • Formulate, update, refresh, consolidate, rationalize, and/or retire data policies and procedures.
      • Define policy management and administration framework (i.e. roll-out, maintenance, updates, adherence, system to be used).
    • Conduct Info-Tech’s Data Culture Diagnostic or survey (across all levels of the organization).
    • Define and formalize the data literacy program (build modules, incorporate into LMS, plan lunch and learn sessions).
    • Data privacy and security: build data classification policy, define classification standards.
    • Enterprise projects and services: embed data governance in the organization’s PMO, conduct “Data Governance 101” for the PMO.

    Defining data governance roles and organizational structure at Organization

    The approach employed for defining the data governance roles and supporting organizational structure for .

    Key Considerations:

    • The data owner and data steward roles are formally defined and documented within the organization. Their involvement is clear, well-defined, and repeatable.
    • There are data owners and data stewards for each data domain within the organization. The data steward role is given to someone with a high degree of subject matter expertise.
    • Data owners and data stewards are effective in their roles by ensuring that their data domain is clean and free of errors and that they protect the organization against data loss.
    • Data owners and data stewards have the authority to make final decisions on data definitions, formats, and standard processes that apply to their respective data sets. Data owners and data stewards have authority regarding who has access to certain data.
    • Data owners and data stewards are not from the IT side of the organization. They understand the lifecycle of the data (how it is created, curated, retrieved, used, archived, and destroyed) and they are well-versed in any compliance requirements as it relates to their data.
    • The data custodian role is formally defined and is given to the relevant IT expert. This is an individual with technical administrative and/or operational responsibility over data (e.g. a DBA).
    • A data governance steering committee exists and is comprised of well-defined roles, responsibilities, executive sponsors, business representatives, and IT experts.
    • The data governance steering committee works to provide oversight and enforce policies, procedures, and standards for governing data.
    • The data governance working group has cross-functional representation. This comprises business and IT representation, as well as project management and change management where applicable: data stewards, data custodians, business subject matter experts, PM, etc.).
    • Data governance meetings are coordinated and communicated about. The meeting agenda is always clear and concise, and meetings review pressing data-related issues. Meeting minutes are consistently documented and communicated.

    Sample: Business capabilities to data owner and data stewards mapping for a selected data domain

    Info-Tech Insight

    Your organization’s value streams and the associated business capabilities require effectively governed data. Without this, you face elevated operational costs, missed opportunities, eroded stakeholder satisfaction, and exposure to increased business risk.

    Enable business capabilities with data governance role definitions.

    Sample: Business capabilities to data owner and data stewards mapping for a selected data domain

    Consider your technology options:

    Make the available data governance tools and technology work for you:

    • Data catalog
    • Business data glossary
    • Data lineage
    • Metadata management

    Logos of data governance tools and technology.

    These are some of the data governance tools and technology players. Check out SoftwareReviews for help making better software decisions.

    Make the data steward the catalyst for organizational change and driving data culture

    The data steward must be empowered and backed politically with decision-making authority, or the role becomes stale and powerless.

    Ensuring compliance can be difficult. Data stewards may experience pushback from stakeholders who must deliver on the policies, procedures, and processes that the data steward enforces.

    Because the data steward must enforce data processes and liaise with so many different people and departments within the organization, the data steward role should be their primary full-time job function – where possible.

    However, in circumstances where budget doesn’t allow a full-time data steward role, develop these skills within the organization by adding data steward responsibilities to individuals who are already managing data sets for their department or line of business.

    Info-Tech Tip

    A stewardship role is generally more about managing the cultural change that data governance brings. This requires the steward to have exceptional interpersonal skills that will assist in building relationships across departmental boundaries and ensuring that all stakeholders within the organization believe in the initiative, understand the anticipated outcomes, and take some level of responsibility for its success.

    Changes to organizational data processes are inevitable; have a communication plan in place to manage change

    Create awareness of your data governance program. Use knowledge transfer to get as many people on board as possible.

    Data governance initiatives must contain a strong organizational disruption component. A clear and concise communication strategy that conveys milestones and success stories will address the various concerns that business unit stakeholders may have.

    By planning for and efficiently communicating any changes that a data governance initiative may bring, many initial issues can be resolved from the outset.

    Governance recommendations will require significant business change. The redesign of a substantial number of data processes affecting various business units will require an overhaul of the organization’s culture, thought processes, and procedures surrounding its data. Preparing people for change well in advance will allow them to take the necessary steps to adapt and reduce potential confrontation.

    Because a data governance initiative will involve data-driven business units across the organization, the governance team must present a compelling case for data governance to ensure acceptance of new processes, rules, guidelines, and technologies by all data producers and users.

    Attempting to implement change without an effective communication plan can result in disagreements over data control and stalemates between stakeholder units. The recommendations of the governance group must reflect the needs of all stakeholders or there will be pushback.

    Info-Tech Insight

    Launching a data governance initiative is guaranteed to disrupt the culture of the organization. That disruption doesn’t have to be detrimental if you are prepared to manage the change proactively and effectively.

    Create a common data governance vision that is consistently communicated to the organization

    A data governance program should be an enterprise-wide initiative.

    To create a strong vision for data governance, there must be participation from the business and IT. A common vision will articulate the state the organization wishes to achieve and how it will reach that state. Visioning helps to develop long-term goals and direction.

    Once the vision is established, it must be effectively communicated to everyone, especially those who are involved in creating, managing, disposing, or archiving data.

    The data governance program should be periodically refined. This will ensure the organization continues to incorporate best methods and practices as the organization grows and data needs evolve.

    Info-Tech Tips

    • Use information from the stakeholder interviews to derive business goals and objectives.
    • Work to integrate different opinions and perspectives into the overall vision for data governance.
    • Brainstorm guiding principles for data and understand the overall value to the organization.

    Develop a compelling data governance communications plan to get all departmental lines of business on board

    A data governance program will impact all data-driven business units within the organization.

    A successful data governance communications plan involves making the initiative visible and promoting staff awareness. Educate the team on how data is collected, distributed, and used, what internal processes use data, and how that data is used across departmental boundaries.

    By demonstrating how data governance will affect staff directly, you create a deeper level of understanding across lines of business, and ultimately, a higher level of acceptance for new processes, rules, and guidelines.

    A clear and concise communications strategy will raise the profile of data governance within the organization, and staff will understand how the program will benefit them and how they can share in the success of the initiative. This will end up providing support for the initiative across the board.

    A proactive communications plan will:

    • Assist in overcoming issues with data control, stalemates between stakeholder units, and staff resistance.
    • Provide a formalized process for implementing new policies, rules, guidelines, and technologies, and managing organizational data.
    • Detail data ownership and accountability for decision making, and identify and resolve data issues throughout the organization.
    • Encourage acceptance and support of the initiative.

    Info-Tech Tip

    Focus on literacy and communication: include training in the communication plan. Providing training for data users on the correct procedures for updating and verifying the accuracy of data, data quality, and standardized data policies will help validate how data governance will benefit them and the organization.

    Leverage the data governance program to communicate and promote the value of data within the organization

    The data governance program is responsible for continuously promoting the value of data to the organization. The data governance program should seek a variety of ways to educate the organization and data stakeholders on the benefit of data management.

    Even if data policies and procedures are created, they will be highly ineffective if they are not properly communicated to the data producers and users alike.

    There needs to be a communication plan that highlights how the data producer and user will be affected, what their new responsibilities are, and the value of that change.

    To learn how to manage organizational change, refer to Info-Tech’s Master Organizational Change Management Practices.

    Understand what makes for an effective policy for data governance

    It can be difficult to understand what a policy is, and what it is not. Start by identifying the differences between a policy and standards, guidelines, and procedures.

    Diagram of an effective policy for data governance

    The following are key elements of a good policy:

    Heading Descriptions
    Purpose Describes the factors or circumstances that mandate the existence of the policy. Also states the policy’s basic objectives and what the policy is meant to achieve.
    Scope Defines to whom and to what systems this policy applies. Lists the employees required to comply or simply indicates “all” if all must comply. Also indicates any exclusions or exceptions, i.e. those people, elements, or situations that are not covered by this policy or where special consideration may be made.
    Definitions Define any key terms, acronyms, or concepts that will be used in the policy. A standard glossary approach is sufficient.
    Policy Statements Describe the rules that comprise the policy. This typically takes the form of a series of short prescriptive and proscriptive statements. Sub-dividing this section into sub-sections may be required depending on the length or complexity of the policy.
    Non-Compliance Clearly describe consequences (legal and/or disciplinary) for employee non-compliance with the policy. It may be pertinent to describe the escalation process for repeated non-compliance.
    Agreement Confirms understanding of the policy and provides a designated space to attest to the document.

    Leverage myPolicies, Info-Tech’s web-based application for managing your policies and procedures

    Most organizations have problems with policy management. These include:

    1. Policies are absent or out of date
    2. Employees largely unaware of policies in effect
    3. Policies are unmonitored and unenforced
    4. Policies are in multiple locations
    5. Multiple versions of the same policy exist
    6. Policies managed inconsistently across different silos
    7. Policies are written poorly by untrained authors
    8. Inadequate policy training program
    9. Draft policies stall and lose momentum
    10. Weak policy support from senior management

    Technology should be used as a means to solve these problems and effectively monitor, enforce, and communicate policies.

    Product Overview

    myPolicies is a web-based solution to create, distribute, and manage corporate policies, procedures, and forms. Our solution provides policy managers with the tools they need to mitigate the risk of sanctions and reduce the administrative burden of policy management. It also enables employees to find the documents relevant to them and build a culture of compliance.

    Some key success factors for policy management include:

    • Store policies in a central location that is well known and easy to find and access. A key way that technology can help communicate policies is by having them published on a centralized website.
    • Link this repository to other policies’ taxonomies of your organization. E.g. HR policies to provide a single interface for employees to access guidance across the organization.
    • Reassess policies annually at a minimum. myPolicies can remind you to update the organization’s policies at the appropriate time.
    • Make the repository searchable and easily navigable.
    • myPolicies helps you do all this and more.
    myPolicies logo myPolicies

    Enforce data policies to promote consistency of business processes

    Data policies are short statements that seek to manage the creation, acquisition, integrity, security, compliance, and quality of data. These policies vary amongst organizations, depending on your specific data needs.

    • Policies describe what to do, while standards and procedures describe how to do something.
    • There should be few data policies, and they should be brief and direct. Policies are living documents and should be continuously updated to respond to the organization’s data needs.
    • The data policies should highlight who is responsible for the data under various scenarios and rules around how to manage it effectively.

    Examples of Data Policies

    Trust

    • Data Cleansing and Quality Policy
    • Data Entry Policy

    Availability

    • Acceptable Use Policy
    • Data Backup Policy

    Security

    • Data Security Policy
    • Password Policy Template
    • User Authorization, Identification, and Authentication Policy Template
    • Data Protection Policy

    Compliance

    • Archiving Policy
    • Data Classification Policy
    • Data Retention Policy

    Leverage data management-related policies to standardize your data management practices

    Info-Tech’s Data Management Policy:

    This policy establishes uniform data management standards and identifies the shared responsibilities for assuring the integrity of the data and that it efficiently and effectively serves the needs of the organization. This policy applies to all critical data and to all staff who may be creators and/or users of such data.

    Info-Tech’s Data Entry Policy:

    The integrity and quality of data and evidence used to inform decision making is central to both the short-term and long-term health of an organization. It is essential that required data be sourced appropriately and entered into databases and applications in an accurate and complete manner to ensure the reliability and validity of the data and decisions made based on the data.

    Info-Tech’s Data Provenance Policy:

    Create policies to keep your data's value, such as:

    • Only allow entry of data from reliable sources.
    • Employees entering and accessing data must observe requirements for capturing/maintaining provenance metadata.
    • Provenance metadata will be used to track the lifecycle of data from creation through to disposal.

    Info-Tech’s Data Integration and Virtualization Policy:

    This policy aims to assure the organization, staff, and other interested parties that data integration, replication, and virtualization risks are taken seriously. Staff must use the policy (and supporting guidelines) when deciding whether to integrate, replicate, or virtualize data sets.

    Select the right mix of metrics to successfully supervise data policies and processes

    Policies are only as good as your level of compliance. Ensure supervision controls exist to oversee adherence to policies and procedures.

    Although they can be highly subjective, metrics are extremely important to data governance success.

    • Establishing metrics that measure the performance of a specific process or data set will:
      • Create a greater degree of ownership from data stewards and data owners.
      • Help identify underperforming individuals.
      • Allow the steering committee to easily communicate tailored objectives to individual data stewards and owners.
    • Be cautious when establishing metrics. The wrong metrics can have negative repercussions.
      • They will likely draw attention to an aspect of the process that doesn’t align with the initial strategy.
      • Employees will work hard and grow frustrated as their successes aren’t accurately captured.

    Policies are great to have from a legal perspective, but unless they are followed, they will not benefit the organization.

    • One of the most useful metrics for policies is currency. This tracks how up to date the policy is and how often employees are informed about the policy. Often, a policy will be introduced and then ignored. Policies must be continuously reviewed by management and employees.
    • Some other metrics include adherence (including performance in tests for adherence) and impacts from non-adherence.

    Review metrics on an ongoing basis with those data owners/stewards who are accountable, the data governance steering committee, and the executive sponsors.

    Establish data standards and procedures for use across all organizational lines of business

    A data governance program will impact all data-driven business units within the organization.

    • Data management procedures are the methods, techniques, and steps to accomplish a specific data objective. Creating standard data definitions should be one of the first tasks for a data governance steering committee.
    • Data moves across all departmental boundaries and lines of business within the organization. These definitions must be developed as a common set of standards that can be accepted and used enterprise wide.
    • Consistent data standards and definitions will improve data flow across departmental boundaries and between lines of business.
    • Ensure these standards and definitions are used uniformly throughout the organization to maintain reliable and useful data.

    Data standards and procedural guidelines will vary from company to company.

    Examples include:

    • Data modeling and architecture standards.
    • Metadata integration and usage procedures.
    • Data security standards and procedures.
    • Business intelligence standards and procedures.

    Info-Tech Tip

    Have a fundamental data definition model for the entire business to adhere to. Those in the positions that generate and produce data must follow the common set of standards developed by the steering committee and be accountable for the creation of valid, clean data.

    Changes to organizational data processes are inevitable; have a communications plan in place to manage change

    Create awareness of your data governance program, using knowledge transfer to get as many people on board as possible.

    By planning for and efficiently communicating any changes that a data governance initiative may bring, many initial issues can be resolved from the outset.

    Governance recommendations will require significant business change. The redesign of a substantial number of data processes affecting various business units will require an overhaul of the organization’s culture, thought processes, and procedures surrounding its data. Preparing people for change well in advance will allow them to take the necessary steps to adapt and reduce potential confrontation.

    Because a data governance initiative will involve data-driven business units across the organization, the governance team must present a compelling case for data governance to ensure acceptance of new processes, rules, guidelines, and technologies by all data producers and users.

    Attempting to implement change without an effective communications plan can result in disagreements over data control and stalemates between stakeholder units. The recommendations of the governance group must reflect the needs of all stakeholders or there will be pushback.

    Data governance initiatives will very likely bring about a level of organizational disruption. A clear and concise communications strategy that conveys milestones and success stories will address the various concerns that business unit stakeholders may have.

    Info-Tech Tip

    Launching a data governance program will bring with it a level of disruption to the culture of the organization. That disruption doesn’t have to be detrimental if you are prepared to manage the change proactively and effectively.

    Additional Support

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop.

    Picture of analyst

    Contact your account representative for more information.

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

    To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team. Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    Screenshot of example data governance strategy map.

    Build Your Business and User Context

    Work with your core team of stakeholders to build out your data governance strategy map, aligning data governance initiatives with business capabilities, value streams, and, ultimately, your strategic priorities.

    Screenshot of Data governance roadmap

    Formulate a Plan to Get to Your Target State

    Develop a data governance future state roadmap and plan based on an understanding of your current data governance capabilities, your operating environment, and the driving needs of your business.

    Related Info-Tech Research

    Build a Robust and Comprehensive Data Strategy

    Key to building and fostering a data-driven culture.

    Create a Data Management Roadmap

    Streamline your data management program with our simplified framework.

    The First 100 Days as CDO

    Be the voice of data in a time of transformation.

    Research Contributors

    Name Position Company
    David N. Weber Executive Director - Planning, Research and Effectiveness Palm Beach State College
    Izabela Edmunds Information Architect Mott MacDonald
    Andy Neill Practice Lead, Data & Analytics Info-Tech Research Group
    Dirk Coetsee Research Director, Data & Analytics Info-Tech Research Group
    Graham Price Executive Advisor, Advisory Executive Services Info-Tech Research Group
    Igor Ikonnikov Research Director, Data & Analytics Info-Tech Research Group
    Jean Bujold Senior Workshop Delivery Director Info-Tech Research Group
    Rajesh Parab Research Director, Data & Analytics Info-Tech Research Group
    Reddy Doddipalli Senior Workshop Director Info-Tech Research Group
    Valence Howden Principal Research Director, CIO Info-Tech Research Group

    Bibliography

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    Allott, Joseph, et al. “Data: The next wave in forestry productivity.” McKinsey & Company, 27 Oct. 2020. Accessed 25 June 2021.

    Bean, Randy. “Why Culture Is the Greatest Barrier to Data Success.” MIT Sloan Management Review, 30 Sept. 2020. Accessed 25 June 2021.

    Brence, Thomas. “Overcoming the Operationalization Challenge with Data Governance at New York Life.” Informatica, 18 March 2020. Accessed 25 June 2021.

    Bullmore, Simon, and Stuart Coleman. “ODI Inside Business – a checklist for leaders.” Open Data Institute, 19 Oct. 2020. Accessed 25 June 2021.

    Canadian Institute for Health Information. “Developing and implementing accurate national standards for Canadian health care information.” Canadian Institute for Health Information. Accessed 25 June 2021.

    Carruthers, Caroline, and Peter Jackson. “The Secret Ingredients of the Successful CDO.” IRM UK Connects, 23 Feb. 2017.

    Dashboards. “Useful KPIs for Healthy Hospital Quality Management.” Dashboards. Accessed 25 June 2021.

    Dashboards. “Why (and How) You Should Improve Data Literacy in Your Organization Today.” Dashboards. Accessed 25 June 2021.

    Datapine. “Healthcare Key Performance Indicators and Metrics.” Datapine. Accessed 25 June 2021.

    Datapine. “KPI Examples & Templates: Measure what matters the most and really impacts your success.” Datapine. Accessed 25 June 2021.

    Diaz, Alejandro, et al. “Why data culture matters.” McKinsey Quarterly, Sept. 2018. Accessed 25 June 2021.

    Everett, Dan. “Chief Data Officer (CDO): One Job, Four Roles.” Informatica, 9 Sept. 2020. Accessed 25 June 2021.

    Experian. “10 signs you are sitting on a pile of data debt.” Experian. Accessed 25 June 2021.

    Fregoni, Silvia. “New Research Reveals Why Some Business Leaders Still Ignore the Data.” Silicon Angle, 1 Oct. 2020.

    Informatica. Holistic Data Governance: A Framework for Competitive Advantage. Informatica, 2017. Accessed 25 June 2021.

    Knight, Michelle. “What Is a Data Catalog?” Dataversity, 28 Dec. 2017. Web.

    Lim, Jason. “Alation 2020.3: Getting Business Users in the Game.” Alation, 2020. Accessed 25 June 2021.

    McDonagh, Mariann. “Automating Data Governance.” Erwin, 29 Oct. 2020. Accessed 25 June 2021.

    NewVantage Partners. Data-Driven Business Transformation: Connecting Data/AI Investment to Business Outcomes. NewVantage Partners, 2020. Accessed 25 June 2021.

    Olavsrud, Thor. “What is data governance? A best practices framework for managing data assets.” CIO.com, 18 March 2021. Accessed 25 June 2021.

    Open Data Institute. “Introduction to data ethics and the data ethics canvas.” Open Data Institute, 2020. Accessed 25 June 2021.

    Open Data Institute. “The UK National Data Strategy 2020: doing data ethically.” Open Data Institute, 17 Nov. 2020. Accessed 25 June 2021.

    Open Data Institute. “What is the Data Ethics Canvas?” Open Data Institute, 3 July 2019. Accessed 25 June 2021.

    Pathak, Rahul. “Becoming a Data-Driven Enterprise: Meeting the Challenges, Changing the Culture.” MIT Sloan Management Review, 28 Sept. 2020. Accessed 25 June 2021.

    Redman, Thomas, et al. “Only 3% of Companies’ Data Meets Basic Quality Standards.” Harvard Business Review. 11 Sept 2017.

    Petzold, Bryan, et al. “Designing data governance that delivers value.” McKinsey & Company, 26 June 2020. Accessed 25 June 2021.

    Smaje, Kate. “How six companies are using technology and data to transform themselves.” McKinsey & Company, 12 Aug. 2020. Accessed 25 June 2021.

    Talend. “The Definitive Guide to Data Governance.” Talend. Accessed 25 June 2021.

    “The Powerfully Simple Modern Data Catalog.” Atlan, 2021. Web.

    U.S. Geological Survey. “Data Management: Data Standards.” U.S. Geological Survey. Accessed 25 June 2021.

    Waller, David. “10 Steps to Creating a Data-Driven Culture.” Harvard Business Review, 6 Feb. 2020. Accessed 25 June 2021.

    “What is the Difference Between A Business Glossary, A Data Dictionary, and A Data Catalog, and How Do They Play A Role In Modern Data Management?” Analytics8, 23 June 2021. Web.

    Wikipedia. “RFM (market research).” Wikipedia. Accessed 25 June 2021.

    Windheuser, Christoph, and Nina Wainwright. “Data in a Modern Digital Business.” Thoughtworks, 12 May 2020. Accessed 25 June 2021.

    Wright, Tom. “Digital Marketing KPIs - The 12 Key Metrics You Should Be Tracking.” Cascade, 3 March 2021. Accessed 25 June 2021.

    Embed Business Relationship Management in IT

    • Buy Link or Shortcode: {j2store}270|cart{/j2store}
    • member rating overall impact (scale of 10): 8.8/10 Overall Impact
    • member rating average dollars saved: $21,960 Average $ Saved
    • member rating average days saved: 19 Average Days Saved
    • Parent Category Name: Manage Business Relationships
    • Parent Category Link: /manage-business-relationships
    • While organizations realize they need to improve business relationships, they often don’t know how.
    • IT doesn’t know what their business needs and so can’t add as much value as they’d like.
    • They find that their partners often reach out to third parties before they connect with internal IT.

    Our Advice

    Critical Insight

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

    Impact and Result

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

    Embed Business Relationship Management in IT Research & Tools

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

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

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

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

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

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

    • Embed Business Relationship Management in IT Workbook

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

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

    • BRM Buy-In and Communication Template

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

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

    • Role Expectations Worksheet

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

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

    • BRM Stakeholder Engagement Plan Worksheet

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

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

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

    Workshop: Embed Business Relationship Management in IT

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

    1 Foundation: Assess and Situate

    The Purpose

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

    Key Benefits Achieved

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

    Activities

    1.1 Define BRM

    1.2 Analyze Satisfaction

    1.3 Assess SWOT

    1.4 Create Vision

    1.5 Create the BRM Mission

    1.6 Establish Goals

    Outputs

    BRM definition

    Identify areas to be addressed through the BRM practice

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

    2 Plan

    The Purpose

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

    Key Benefits Achieved

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

    Activities

    2.1 Establish Guiding Principles

    2.2 Determine Where BRM Fits

    2.3 Establish BRM Expectations

    2.4 Identify Roles With BRM Responsibilities

    2.5 Align Capabilities

    Outputs

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

    3 Implement

    The Purpose

    Determine how to identify and work with key stakeholders.

    Key Benefits Achieved

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

    Activities

    3.1 Brainstorm Sources of Business Value

    3.2 Identify Key Influencers

    3.3 Categorize the Stakeholders

    3.4 Create the Prioritization Map

    3.5 Create Your Engagement Plan

    Outputs

    Shared understanding of business value

    A plan to engage with stakeholders

    4 Reassess and Embed

    The Purpose

    Determine how to continuously improve the BRM practice.

    Key Benefits Achieved

    An ongoing plan for the BRM practice.

    Activities

    4.1 Create Metrics

    4.2 Prioritize Your Projects

    4.3 Create a Portfolio Investment Map

    4.4 Establish Your Annual Plan

    4.5 Build Your Transformation Roadmap

    4.6 Create Your Communication Plan

    Outputs

    Measurements of success for the BRM practice

    Prioritization of projects

    BRM plan

    Further reading

    Embed Business Relationship Management in IT

    Show that IT is worthy of Trusted Partner status.

    Executive Brief

    Analyst Perspective

    Relationships are about trust.

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

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

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

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

    Your challenge: Why focus on business relationship management?

    Is IT saying this about business partners?

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

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

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

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

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

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

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

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

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

    Common obstacles

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

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

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

    Key improvement areas identified by business leaders and IT leaders

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

    Info-Tech’s approach

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

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

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

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

    Create business value through:

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

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

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

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

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

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

    <

    Why it’s important to establish a BRM program

    IT Benefits

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

    Business Benefits

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

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

    Piggy bank labelled 'Business Value'.

    When IT understands the business, they provide better value

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

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

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

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

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

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

    A tale of two IT partners

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

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

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

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

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

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

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

    BRM success is measurable Measuring tape.

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

    Business satisfaction survey

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

    Maturing your BRM practice is a journey

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

    STRATEGIC

    Value Creator and Innovator

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

    KNOWLEDGE OF FUNCTIONS

    TACTICAL

    Influencer and Advocate

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

    TABLE STAKES:
    COMMUNICATION
    SERVICE DELIVERY
    PROJECT DELIVERY

    OPERATIONAL

    Deliver

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

    Foundation: Define and communicate the meaning and vision of BRM

    At each level, keep maturing your BRM practice

    ITPartnerWhat to do to move to the next level

    Strategic Partner

    Shared goals for maximizing value and shared risk and reward

    5

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

    Value Creator and Innovator

    See partners as integral to business success and growth

    Focus on continuous learning and improvement.

    Trusted Advisor

    Cooperation based on mutual respect and understanding

    4

    Partners understand, work with, and help improve capabilities.

    Influencer and Advocate

    Sees IT as helpful and reliable

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

    Service Provider

    Routine – innovation is a challenge

    3

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

    Priorities set but still always falling behind.

    Views IT as helpful but they don’t provide guidance

    IT needs to excel in portfolio and transition management.

    Business needs to engage IT in strategy.

    Order Taker

    Distrust, reactive

    2

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

    Delivery Service

    Engages with IT on an as-needed basis

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

    Business needs to embrace BRM role and service management.

    Ad Hoc

    Loudest in, first out

    1

    Too busy doing the basics; in firefighter mode.

    Low satisfaction (cost, duration, quality)

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

    IT needs to establish intake/demand management.


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

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

    The Info-Tech path to implement BRM

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

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

    Insight summary

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

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

    Understand your current state to determine the best direction forward.

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

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

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

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

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

    Info-Tech Insight

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

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

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting

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

    Diagnostics and consistent frameworks used throughout all four options

    Blueprint deliverables

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

    Key deliverable:

    Executive Buy-In and Communication Presentation Template

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

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

    BRM Workbook

    Capture the thinking behind your organization’s BRM program.

    Sample of Info-Tech's BRM Workbook deliverable.

    BRM Stakeholder Engagement Plan Worksheet

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

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

    BRM Role Expectations Worksheet

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

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

    Guided Implementation

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

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

    What does a typical GI on this topic look like?

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    Phase 5

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

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

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

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

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

    Call #8: Develop a communication or rollout plan.

    Workshop Overview

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

    1.1 Discuss rationale and importance of business relationship management

    1.2 Review CIO BV results

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

    1.4 Establish BRM vision and mission

    1.5 Define objectives and goals for maturing the practice

    2.1 Create your list of guiding principles (optional)

    2.2 Define business value

    2.3. Establish the operating model for the BRM practice

    2.4 Define capabilities

    3.1. Identify key stakeholders

    3.2 Map, prioritize, and categorize the stakeholders

    3.4 Create an engagement plan

    4,1 Define metrics

    4.2 Identify remaining enablers/blockers for practice implementation

    4.3 Create roadmap

    4.4 Create communication plan

    5.1 Complete in-progress deliverables from previous four days

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

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

    ASSESS

    Assess

    1.1 Define BRM

    1.2 Analyze Satisfaction

    1.3 Assess SWOT

    Situate

    2.1 Create Vision

    2.2 Create the BRM Mission

    2.3 Establish Goals

    Plan

    3.1 Establish Guiding Principles

    3.2 Determine Where BRM Fits

    3.3 Establish BRM Expectations

    3.4 Identify Roles With BRM Responsibilities

    3.5 Align Capabilities

    Implement

    4.1 Brainstorm Sources of Business Value

    4.2 Identify Key Influencers

    4.3 Categorize the Stakeholders

    4.4 Create the Prioritization Map

    4.5 Create Your Engagement Plan

    Reassess & Embed

    5.1 Create Metrics

    5.2 Prioritize Your Projects

    5.3 Create a Portfolio Investment Map

    5.4 Establish Your Annual Plan

    5.5 Build Your Transformation Roadmap

    5.6 Create Your Communication Plan

    To assess BRM, clarify what it means to you

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

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

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

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

    Determine what business relationship management is

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

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

    1.1 What is BRM?

    1 hour

    Input: Your preliminary thoughts and ideas on BRM

    Output: Themes summarizing what BRM will be at your organization

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

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

    Download the BRM Workbook

    Download the Executive Buy-In and Communication Template

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

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

    Contact your Account Representative to get started

    Sample of various scorecards from the CIO Business Vision Diagnostic.

    1.2 Use their responses to help guide your BRM program

    1 hour

    Input: CIO-Business Vision Diagnostic, Other business feedback

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

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: CIO, IT management team

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

    Use the BRM Workbook to capture ideas

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

    Perform a SWOT analysis to explore internal and external business factors

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

    Why It Is Important

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

    Key Tips/Information

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

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

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

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

    1.3 Analyze internal and external business factors using a SWOT analysis

    1 hour

    Input: IT and business stakeholder expertise

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

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: CIO, IT management team

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

    Capture in the BRM Workbook

    SITUATE

    Assess

    1.1 Define BRM

    1.2 Analyze Satisfaction

    1.3 Assess SWOT

    Situate

    2.1 Create Vision

    2.2 Create the BRM Mission

    2.3 Establish Goals

    Plan

    3.1 Establish Guiding Principles

    3.2 Determine Where BRM Fits

    3.3 Establish BRM Expectations

    3.4 Identify Roles With BRM Responsibilities

    3.5 Align Capabilities

    Implement

    4.1 Brainstorm Sources of Business Value

    4.2 Identify Key Influencers

    4.3 Categorize the Stakeholders

    4.4 Create the Prioritization Map

    4.5 Create Your Engagement Plan

    Reassess & Embed

    5.1 Create Metrics

    5.2 Prioritize Your Projects

    5.3 Create a Portfolio Investment Map

    5.4 Establish Your Annual Plan

    5.5 Build Your Transformation Roadmap

    5.6 Create Your Communication Plan

    Your strategy informs your BRM program

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

    Sample of Info-Tech's 'Build a Business-Aligned IT Strategy' blueprint.

    Vision, Mission & Principles Chevron pointing right.
    • Leverage your vision and mission statements that communicate aspirations and purpose for key information that can be turned into design principles.
    Business Goal Implications Chevron pointing right.
    • Implications are derived from your business goals and will provide important context about the way BRM needs to change to meet its overarching objectives.
    • Understand how those implications will change the way that work needs to be done – new capabilities, new roles, new modes of delivery, etc.
    Target-State Maturity Chevron pointing right.
    • Determine your target-state relationship maturity for your organization using the BRM goals that have been uncovered.

    Outline your mission and vision for your BRM practice

    If you don’t know where you’re trying to go, how do you know if you’ve arrived?

    Establish the vision of what your BRM practice will achieve.

    Your vision will paint a picture for your stakeholders, letting them know where you want to go with your BRM practice.

    Stock image of a hand painting on a large canvas.

    The vision will also help motivate and inspire your team members so they understand how they contribute to the organization.

    Your strategy must align with and support your organization’s strategy.

    Good Visions
    • Attainable – Aspirational but still within reach
    • Communicable – Easy to comprehend
    • Memorable – Not easily forgotten
    • Practical – Solid, realistic
    • Shared – Create a culture of shared ownership across the team/company
    When Visions Fail
    • Not Shared: Lack of buy-in, no alignment with stakeholders
    • Impractical: No plan or strategy to deliver on the vision
    • Unattainable: Set too far in the future
    • Forgettable: Not championed, not kept in mind
    (Source: UX Magazine, 2011)

    Derive the BRM vision statement

    Stock image of an easel with a bundle of paint brushes beside it. Begin the process of deriving the business relationship management vision statement by examining your business and user concerns. These are the problems your organization is trying to solve.
    Icon of one person asking another a question.
    Problem Statements
    First, ask what problems your organization hopes to solve.
    Icon of a magnifying glass on a box.
    Analysis
    Second, ask what success would look like when those problems were solved.
    Icon of two photos in quotes.
    Vision Statement
    Third, polish the answer into a short but meaningful phrase.

    Paint the picture for your team and stakeholders so that they align on what BRM will achieve.

    Vision statements demonstrate what your practice “aspires to be”

    Your vision statement communicates a desired future state of the BRM organization. The statement is expressed in the present tense. It seeks to articulate the desired role of business relationship management and how it will be perceived.

    Sample vision statements:

    • To be a trusted advisor and partner in enabling business innovation and growth through an engaged design practice.
    • The group will strive to become a world-class value center that is a catalyst for innovation.
    • Apple: “We believe that we are on the face of the earth to make great products and that’s not changing.” (Mission Statement Academy, May 2019.)
    • Coca-Cola: “To refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.” (Mission Statement Academy, August 2019.)

    2.1 Vision generation

    1 hour

    Input: IT and business strategies

    Output: Vision statement

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Review the goals and the sample vision statements provided on the previous slide.
    2. Brainstorm possible vision statements that can apply to your practice. Refer to the guidance provided on the previous page – ensure that it paints a picture for the reader to show the desired target state.
    3. Leverage the workbook to brainstorm the vision. Capture the refined statement in the Executive Buy-In and Communication Template.
    Strong vision statements have the following characteristics
    • Describe a desired future
    • Focus on ends, not means
    • Communicate promise
    • Concise, no unnecessary words
    • Compelling
    • Achievable
    • Inspirational
    • Memorable

    Use the BRM Workbook to capture ideas

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

    Create the mission statement from the problems and the vision statement

    Your mission demonstrates your current intent and the purpose driving you to achieve your vision.

    It reflects what the organization does for users/customers.

    The main word 'Analysis' is sandwiched between 'Goals and Problems' and 'Vision Statement', each with arrow pointing to the middle. Make sure the practice’s mission statement reflects answers to the questions below:

    The questions:

    • What does the organization do?
    • How does the organization do it?
    • For whom does the organization do it?
    • What value is the organization bringing?

    “A mission statement illustrates the purpose of the organization, what it does, and what it intends on achieving. Its main function is to provide direction to the organization and highlight what it needs to do to achieve its vision.” (Joel Klein, BizTank (in Hull, “Answer 4 questions to get a great mission statement.”))

    Sample mission statements

    To enhance the lives of our end users through our products so that our brand becomes synonymous with user-centricity.

    To enable innovative services that are seamless and enjoyable to our customers so that together we can inspire change.

    Apple’s mission statement: “To bring the best user experience to its customers through its innovative hardware, software, and services.” (Mission Statement Academy, May 2019.)

    Coca Cola’s mission statement: “To refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.” (Mission Statement Academy, August 2019.)

    Tip: Using the “To … so that” format helps to keep your mission focused on the “why.”

    2.2 Develop your own mission statement

    1 hour

    Input: IT and business strategies, Vision

    Output: Mission statement

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Review the goals and the vision statement generated in the previous activities.
    2. Brainstorm possible mission statements that can apply to your BRM practice. Capture this in your BRM workbook.
    3. Refine your mission statement. Refer to the guidance provided on the previous page – ensure that the mission provides “the why”. Document the refined mission statement in the Executive Buy-In and Communication Template.

    “People don't buy what you do; they buy why you do it and what you do simply proves what you believe.” (Sinek, Transcript of “How Great Leaders Inspire Action.”)

    Download the BRM Workbook

    Download the Executive Buy-In and Communication Template

    Areas that BRMs focus on include:

    Establish how much of these your practice will focus on.

    VALUE HARVESTING
    • Tracks and reviews performance
    • Identifies ways to increase business value
    • Provides insights on the results of business change/initiatives
    Circle bisected at many random points to create areas of different colors with four color-coded circles surrounding it. DEMAND SHAPING
    • Isn’t just demand/intake management
    • Surfaces and shapes business demand
    • Is influenced by knowledge of the overall business and external entities
    SERVICING
    • Coordinates resources
    • Manages expectations
    • Facilitates business strategy, business capability road-mapping, and portfolio and program management
    EXPLORING
    • Identifies and rationalizes demand
    • Reviews new business, technology, and industry insights
    • Identifies business value initiatives

    Establish what success means for your focus areas

    Brainstorm objectives and success areas for your BRM practice.

    Circle bisected at many random points to create areas of different colors with four color-coded circles surrounding it. VALUE HARVESTING
    Success may mean that you:
    • Understand the drivers and what the business needs to attain
    • Demonstrate focus on value in discussions
    • Ensure value is achieved, tracking it during and beyond deployment
    DEMAND SHAPING
    Success may mean that you:
    • Understand the business
    • Are engaged at business meetings (invited to the table)
    • Understand IT; communicate clarity around IT to the business
    • Help IT prioritize needs
    SERVICING
    Success may mean that you:
    • Understand IT services and service levels that are required
    • Provide clarity around services and communicate costs and risks
    EXPLORING
    Success may mean that you:
    • Surface new opportunities based on understanding of pain points and growth needs
    • Research and partner with others to further the business
    • Engage resources with a focus on the value to be delivered

    2.3 Establish BRM goals

    1 hour

    Input: Mission and vision statements

    Output: List of goals

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: CIO, IT management team, BRM team

    1. Use the previous slides as a starting point – review the focus areas and sample associated objectives.
    2. Determine if all apply to your role.
    3. Brainstorm the objectives for your BRM practice.
    4. Discuss and refine the objectives and goals until the team agrees on your starting set.
    5. Leverage the workbook to establish the goals. Capture refined goals in the Executive Buy-In and Communication Template.

    Download the BRM Workbook

    Download the Executive Buy-In and Communication Template

    PLAN

    Assess

    1.1 Define BRM

    1.2 Analyze Satisfaction

    1.3 Assess SWOT

    Situate

    2.1 Create Vision

    2.2 Create the BRM Mission

    2.3 Establish Goals

    Plan

    3.1 Establish Guiding Principles

    3.2 Determine Where BRM Fits

    3.3 Establish BRM Expectations

    3.4 Identify Roles With BRM Responsibilities

    3.5 Align Capabilities

    Implement

    4.1 Brainstorm Sources of Business Value

    4.2 Identify Key Influencers

    4.3 Categorize the Stakeholders

    4.4 Create the Prioritization Map

    4.5 Create Your Engagement Plan

    Reassess & Embed

    5.1 Create Metrics

    5.2 Prioritize Your Projects

    5.3 Create a Portfolio Investment Map

    5.4 Establish Your Annual Plan

    5.5 Build Your Transformation Roadmap

    5.6 Create Your Communication Plan

    Guiding principles help you focus the development of your practice

    Your guiding principles should define a set of loose rules that can be used to design your BRM practice to the specific needs of the organization and work that needs to be done.

    These rules will guide you through the establishment of your BRM practice and help you explain to your stakeholders the rationale behind organizing in a specific way.

    Sample Guiding Principles

    Principle Name

    Principle Statement

    Customer Focus We will prioritize internal and external customer perspectives
    External Trends We will monitor and liaise with external organizations to bring best practices and learnings into our own
    Organizational Span We embed relationship management across all levels of leadership in IT
    Role If the resource does not have a seat at the table, they are not performing the BRM role

    3.1 Establish guiding principles (optional activity)

    Input: Mission and vision statements

    Output: BRM guiding principles

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Think about strengths, weaknesses, opportunities, and threats as well as the overarching goals, mission, and vision.
    2. Identify a set of principles that the BRM practice should have. Guiding principles are shared, long-lasting beliefs that guide the use of business relationship management in your organization.

    Download the BRM Workbook

    Download the Executive Buy-In and Communication Template

    Establish the BRM partner model and alignment

    Having the right model and support is just as important as having the right people.

    Gears with different BRM model terms: 'BRM Capabilities', 'BRM & Other Roles', 'Scope (pilot)', 'Operating Unit', 'BRM Expectations Across the organization', and 'Delivery & Support'.

    Don’t boil the ocean: Start small

    It may be useful to pilot the BRM practice with a small group within the organization – this gives you the opportunity to learn from the pilot and share best practices as you expand your BRM practice.

    You can leverage the pilot business unit’s feedback to help obtain buy-in from additional groups.

    Evaluate the approaches for your pilot:
    Work With an Engaged Business Unit
    Icon of a magnifying glass over a group of people.

    This approach can allow you to find a champion group and establish quick wins.

    Target Underperforming Area(s)
    Icon of an ambulance.

    This approach can allow you to establish significant wins, providing new opportunities for value.

    Target the Area(s) Driving the Most Business Value
    Icon of an arrow in a bullseye.

    Provide the largest positive impact on your portfolio’s ability to drive business value; for large strategic or transformative goals.

    Work Across a Single Business Process
    Icon of a process tree.

    This approach addresses a single business process or operation that exists across business units, departments, or locations. This, again, will allow you to limit the number of stakeholders.

    Leverage BRM goals to determine where the role fits within the organization

    Organization tree with a strategic BRM.

    Strategic BRMs are considered IT leaders, often reporting to the CIO.


    Organization tree with an operational BRM.

    In product-aligned organizations, the product owners will own the strategic business relationship from a product perspective (often across LOB), while BRMs will own the strategic role for the line(s) of businesses (often across products) that they hold a relationship with. The BRM role may be played by a product family leader.


    Organization tree with a BRM in a product-aligned organization.

    BRMs may take on a more operational function when they are embedded within another group, such as the PMO. This manifests in:

    • Accountability for projects and programs
    • BRM conversations around projects and programs rather than overall needs
    • Often, there is less focus on stimulating need, more about managing demand
    • This structure may be useful for smaller organizations or where organizations are piloting the relationship capability

    Use the IT structure and the business structure to determine how to align BRM and business partners. Many organizations ensure that each LOB has a designated BRM, but each BRM may work with multiple LOBs. Ensure your alignment provides an even and manageable distribution of work.

    Don’t be intimidated by those who play a significant role in relationship management

    Layers representing the BRM, BA, and Product Owner. Business Relationship Manager: Portfolio View
    • Ongoing with broader organization-wide objectives
    • A BRM’s strategic perspective is focused across projects and products
    The BRM will look holistically across a portfolio, rather than on specific projects or products. Their focus is ensuring value is delivered that impacts the overall organization. Multiple BRMs may be responsible for lines of businesses and ensure that products and project enable LOBs effectively.
    Business Analyst: Product or Project View
    • Works within a project or product
    • Accomplishes specific objectives within the project/product
    The BA tends to be involved in project work – to that end, they are often brought in a bit before a project begins to better understand the context. They also often remain after the project is complete to ensure project value is delivered. However, their main focus is on delivering the objectives within the project.
    Product Owner: Product View
    • Ongoing and strategic view of entire product, with product-specific objectives
    The Product Owner bridges the gap between the business and delivery to ensure their product continuously delivers value. Their focus is on the product.

    3.2 Establish the BRM’s place in the organizational structure

    Input: BRM goals, IT organizational structure, Business organizational structure

    Output: BRM operating model

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Review the current organizational structure – both IT and overall business.
    2. Think about the maturity of the IT organization and what you and your partners will be able to support at this stage in the relationship or journey. Establish whether it is necessary to start with a pilot.
    3. Consider the reporting relationship that is required to support the desired maturity of your practice – who will your BRM function report into?
    4. Consider the distribution of work from your business partners. Establish which BRM is responsible for which partners.
    5. Document where the BRM fits in the organization in the Executive Buy-In and Communication Template.

    Download the BRM Workbook

    Download the Executive Buy-In and Communication Template

    Align your titles to your business partners and ensure it demonstrates your strategic goals

    Some titles that may reflect alignment with your partners:
    • Business Capability Manager
    • Business Information Officer
    • Business Relationship Manager
    • Director, Technology Partner
    • IT Business Relationship Manager
    • People Relationship Manager
    • Relationship and Strategy Officer
    • Strategic Partnership Director
    • Technology Partner/People Partner/Finance Partner/etc.
    • Value Management Officer

    Support BRM team members might have “analyst” or “coordinator” as part of their titles.

    Caution when using these titles:
    • Account Manager (do you see your stakeholders as accounts or as partners?)
    • Customer Relationship Manager (do you see your stakeholders as customers or as partners?)
    • People Partner (differentiate your role from HR)

    Determine the expectations for your BRM role(s)

    Below are standard expectations from BRM job descriptions. Establish whether there are changes required for your organization.

    Act as a Relationship Manager
    • Build strong, collaborative relationships with business clients
    • Build strong, collaborative relationships with IT service owners
    • Track client satisfaction with services provided
    • Continuously improve, based on feedback from clients
    Communicate With Business Stakeholders
    • Ensure that effective communication occurs related to service delivery and project delivery (e.g. planned downtime, changes, open tickets)
    • Manage expectations of multiple business stakeholders
    • Provide a clear point of contact within IT for each business stakeholder
    • Act as a bridge between IT and the business
    Service Delivery

    Service delivery breaks out into three activities: service status, changes, and service desk tickets

    • Understand at a high level the services and technologies in use
    • Work with clients to plan and make sure they understand the relevance and impact of IT changes to their operations
    • Define, agree to, and report on key service metrics
    • Act as an escalation point for major issues with any aspect of service delivery
    • Work with service owners to develop and monitor service improvement plans
    Project/Product Delivery
    • Ensure that the project teams provide regular reports regarding project status, issues, and changes
    • Work with project managers and clients to ensure project requirements are well understood and documented and approved by all stakeholders
    • Ensure that the project teams provide key project metrics on a regular basis to all relevant stakeholders

    Determine role expectations (slide 2 of 3)

    Knowledge of the Business

    Understand the main business activities for each department:

    • Understand which IT services are required to complete each business activity
    • Understand business processes and associated business activities for each user group within a department
    Advocate for Your Business Clients
    • Act as an advocate for the client – be invested in client success
    • Understand the strategies and plans of the clients and help develop an IT strategic plan/roadmap that maps to business strategies
    • Help the business understand project governance processes
    • Help clients to develop proposals and advance them through the project intake and assessment process
    Influence Business and IT Stakeholders
    • Influence business and IT stakeholders at multiple levels of the organization to help clients achieve their business objectives
    • Leverage existing relationships to convince decision makers to move forward with business and IT initiatives that will benefit the department and the organization as a whole
    • Understand and solve issues and challenges such as differing agendas, political considerations, and resistance to change
    Knowledge of the Market
    • Understand the industry – trends, competition, future direction
    • Leverage what others are doing to bring innovative ideas to the organization
    • Understand what end customers expect with regards to IT services and bring this intelligence to business leaders and decision makers

    Determine role expectations (slide 3 of 3)

    Value Creator
    • Understand how services currently offered by IT can be put to best use and create value for the business
    • Work collaboratively with clients to define and prioritize technology initiatives (new or enhanced services) that will bring the most business benefit
    • Lead initiatives that help the business achieve or exceed business goals and objectives
    • Lead initiatives that create business value (increased revenue, lower costs, increased efficiency) for the organization
    Innovator
    • Lead initiatives that result in new and better ways of doing business
    • Identify opportunities for using IT in new and innovative ways to bring value to the business and drive the business forward
    • Leverage knowledge of the business, knowledge of the industry, and knowledge of leading-edge technological solutions to transform the way the business operates and provides services to its customers

    3.3 Establish BRM expectations

    Input: BRM goals

    Output: BRM expectations

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Review the BRM expectations on the previous slides.
    2. Customize them – are they the appropriate set of expectations needed for your organization? What needs to be edited in or out?
    3. Add relevant expectations – what are the things that need to be done in the BRM practice at your organization?
    4. Leverage the workbook to brainstorm BRM expectations. Make sure you update them in the BRM Role Expectation Spreadsheet.

    Download the BRM Workbook

    Download the Executive Buy-In and Communication Template

    Various roles and levels within your organization may have a part of the BRM pie

    Where the BRM sits will impact what they are able to get done.

    The BRM role is a strategic one, but other roles in the organization have a part to play in impacting IT-partner relationship.

    Some roles may have a more strategic focus, while others may have a more tactical or operational focus.

    3.4 Identify roles with BRM responsibilities

    Input: BRM goals

    Output: BRM-aligned roles

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Various roles can play a part in the BRM practice, managing business relationships. Which ones make sense in your organization, given the BRM goals?
    2. Identify the roles and capture in the BRM Role Expectation Spreadsheet. Use the Role Expectation Alignment tab, row 1.


    Download the Role Expectations Worksheet

    Determine the focus for each role that may manage business relationships

    Icon of a telescope. STRATEGIC Sets Direction: Focus of the activities is at the holistic, enterprise business level “relating to the identification of long-term or overall aims and interests and the means of achieving them” e.g. builds overarching relationships to enable and support the organization’s strategy; has strategic conversations
    Icon of a house in a location marker. TACTICAL Figures Out the How: Focuses on the tactics required to achieve the strategic focus “skillful in devising means to ends” e.g. builds relationships specific to tactics (projects, products, etc.)
    Icon of a gear cog with a checkmark. OPERATIONAL Executes on the Direction: Day-to-day operations; how things get done “relating to the routine functioning and activities of a business or organization” e.g. builds and leverages relationships to accomplish specific goals (within a project or product)

    3.5 Align BRM capabilities to roles

    Input: Current-state model, Business value matrix, Objectives and goals

    Output: BRM-aligned roles

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Review each group of role expectations – Act as a Relationship Manager, Communicate with Business Stakeholders, etc. For each group, determine the focus each role can apply to it – strategic, tactical, or operational. Refer to the previous slide for examples.
    2. Capture on the spreadsheet:
      • S – This role is required to have a strategic view of the capabilities. They are accountable and set direction for this aspect of relationship management.
      • T – Indicate if the role is required to have a tactical view of the capabilities. This would include whether the role is required to figure out how the capabilities will be done; for example, is the role responsible for carrying out service management or are they just involved to ensure that that set of expectations are being performed?
      • O – Indicate if the role will have an operational view – are they the ones responsible for doing the work?
      • Note: In some organizations, a role may have more than one of these.
    3. The spreadsheet will highlight the cells in green if the role plays more of the strategic role, yellow for tactical, and brown for operational. This provides an overall visual of each role’s part in relationship management.
    4. (Optional) Review each detailed expectation within the group. Evaluate whether specific roles will have a different focus on the unique role expectations.

    Leverage the Role Expectations Worksheet

    Sample role expectation alignment

    Sample of a role expectation alignment table with expectation names and descriptions on the left and a matrix of which roles should have a Strategic (S), Tactical (T), or Operational (O) view of the capabilities.

    IMPLEMENT

    Assess

    1.1 Define BRM

    1.2 Analyze Satisfaction

    1.3 Assess SWOT

    Situate

    2.1 Create Vision

    2.2 Create the BRM Mission

    2.3 Establish Goals

    Plan

    3.1 Establish Guiding Principles

    3.2 Determine Where BRM Fits

    3.3 Establish BRM Expectations

    3.4 Identify Roles With BRM Responsibilities

    3.5 Align Capabilities

    Implement

    4.1 Brainstorm Sources of Business Value

    4.2 Identify Key Influencers

    4.3 Categorize the Stakeholders

    4.4 Create the Prioritization Map

    4.5 Create Your Engagement Plan

    Reassess & Embed

    5.1 Create Metrics

    5.2 Prioritize Your Projects

    5.3 Create a Portfolio Investment Map

    5.4 Establish Your Annual Plan

    5.5 Build Your Transformation Roadmap

    5.6 Create Your Communication Plan

    Speak the same language as your partners: Business Value

    Business value represents the desired outcome from achieving business priorities.

    Value is not only about revenue or reduced expenses. Use this internal-external and capability-financial business value matrix to more holistically consider what is valuable to stakeholders.

    Improved Capabilities
    Enhance Services
    Products and services that enable business capabilities and improve an organization’s ability to perform its internal operations.
    Increase Customer Satisfaction
    Products and services that enable and improve the interaction with customers or produce practical market information and insights.
    Inward Outward
    Save Money
    Products and services that reduce overhead. They typically are less related to broad strategic vision or goals and more simply limit expenses that would occur had the product or service not put in place.
    Make money
    (Return on Investment)
    Products and services that are specifically related to the impact on an organization’s ability to create a return on investment.
    Financial Benefits

    Business Value Matrix Axes:

    Financial Benefits vs. Improved Capabilities
    • Improved capabilities refers to the enhancement of business capabilities and skill sets.
    • Financial Benefits refers to the degree in which the value source can be measured through monetary metrics and is often highly tangible.
    Inward vs. Outward Orientation
    • Inward refers to value sources that have an internal impact an organization’s effectiveness and efficiency in performing its operations.
    • Outward refers to value sources that come from interactions with external factors, such as the market or your customers.

    4.1 Activity: Brainstorm sources of business value

    Input: Product and service knowledge, Business process knowledge

    Output: Understanding of different sources of business value

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Identify your key stakeholders. These individuals are the critical business strategic partners in the organization’s governing bodies.
    2. Brainstorm the different types of business value that the BRM practice can produce.
    3. Is the item more focused on improving capabilities or generating financial benefits?
    4. Is the item focused on the customers you serve or the IT team?
    5. Enter your value item into a cell on the Business Value Matrix based on where it falls on these axes.
    6. Start to think about metrics you can use to measure how effective the product or service is at generating the value source.
    Simplified version of the Business Value Matrix on the previous slide.

    Use the BRM Workbook to capture sources of business value

    Brainstorm the different sources of business value (continued)

    See appendix for more information on value drivers:
    Example:
    Enhance Services
    • Dashboards/IT Situational Awareness
    • Improve measurement of services for data-driven analytics that can improve services
    • Collaborate to support Enterprise Architecture
    • Approval for and support of new applications per customer demand
    • Provide consultation for IT issues
    Axis arrow with 'Improved Capabilities'.
    Axis arrow with 'Financial Benefits'.
    Reach Customers
    • Provide technology roadmaps for IT services and devices
    • Improved "PR" presence: websites, service catalog, etc.
    • Enhance customer experience
    • Faster Time-to-market delivering innovative technologies and current services
    Axis arrow with 'Inward'.Axis arrow with 'Outward'.
    Reduce Costs
    • Achieve better pricing through enterprise agreements for IT services that are duplicated across several orgs
    • Prioritization/ development of roadmap
    • Portfolio management / reduce duplication of services
    • Evolve resourcing strategies to integrate teams (e.g. do more with less)
    Return on Investment
    • Customer -focused dashboards
    • Encourage use of centralized services through external collaboration capabilities that fit multiple use cases
    • Devise strategies for measured/supported migration from older IT systems/software

    Implications of ineffective stakeholder management

    A stakeholder is any group or individual who is impacted by (or impacts) your objectives.

    Challenges with stakeholder management can result from a self-focused point of view. Avoid these challenges by taking on the other’s perspectives – what’s in it for them.

    The key objectives of stakeholder management are to improve outcomes, increase confidence, and enhance trust in IT.

    • Obtain commitment of executive management for IT-related objectives.
    • Enhance alignment between IT and the business.
    • Improve understanding of business requirements.
    • Improve implementation of technology to support business processes.
    • Enhance transparency of IT costs, risks, and benefits.

    Challenges

    • Stakeholders are missed or new stakeholders are identified too late.
    • IT has a tendency to only look for direct stakeholders. Indirect and hidden stakeholders are not considered.
    • Stakeholders may have conflicting priorities, different visions, and different needs. Keeping every stakeholder happy is impossible.
    • IT has a lack of business understanding and uses jargon and technical language that is not understood by stakeholders.

    Implications

    • Unanticipated stakeholders and negative changes in stakeholder sentiment can derail initiatives.
    • Direct stakeholders are identified, but unidentified indirect or hidden stakeholders cause a major impact to the initiative.
    • The CIO attempts to trade off competing agendas and ends up caught in the middle and pleasing no one.
    • There is a failure in understanding and communications, leading stakeholders to become disenchanted with IT.

    Cheat Sheet: Identify stakeholders

    Ask stakeholders “who else should I be talking to?” to discover additional stakeholders and ensure you don’t miss anyone.

    List the people who are identified through the following questions: Take a 360-degree view of potential internal and external stakeholders who might be impacted by the initiative.
    • Who will be adversely affected by potential environmental and social impacts in areas of influence that are affected by what you are doing?
    • At which stage will stakeholders be most affected (e.g. procurement, implementation, operations, decommissioning)?
    • Will other stakeholders emerge as the phases are started and completed?
    • Who is sponsoring the initiative?
    • Who benefits from the initiative?
    • Who loses from the initiative?
    • Who can make approvals?
    • Who controls resources?
    • Who has specialist skills?
    • Who implements the changes?
    • Who are the owners, governors, customers, and suppliers to impacted capabilities or functions?

    Executives

    Peers

    Direct reports

    Partners

    Customers

    Stock image of a world.

    Subcontractors

    Suppliers

    Contractors

    Lobby groups

    Regulatory agencies

    Establish your stakeholder network “map”

    Follow the trail of breadcrumbs from your direct stakeholders to their influencers to uncover hidden stakeholders.

    Your stakeholder map defines the influence landscape your BRM team operates in. It is every bit as important as the teams who enhance, support, and operate your products directly.

    Notes on the network map

    • Pay special attention to influencers who have many arrows; they are called “connectors,” and due to their diverse reach of influence, should themselves be treated as significant stakeholders.
    • Don’t forget to consider the through-lines from one influencer through intermediate stakeholders or influencers to the final stakeholder – a single influencer may have additional influence via multiple, possibly indirect paths to a single stakeholder.

    Legend for the example stakeholder network map below. 'Black arrows indicate the direction of professional influence'. 'Dashed green arrows indicate bidirectional, informal influence relationships'

    Example stakeholder network map visualizing relationships between different stakeholders.

    4.2 Visualize interrelationships among stakeholders to identify key influencers

    Input: List of stakeholders

    Output: Relationships among stakeholders and influencers

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. List direct stakeholders for your area. Ensure it includes stakeholders across the organization (both IT and business units).
    2. Determine the stakeholders of your stakeholders. Consider adding each of them to the stakeholder list: assess who has either formal or informal influence over your stakeholders; add these influencers to your stakeholder list.
    3. Create a stakeholder network map to visualize relationships.
      • (Optional) Use black arrows to indicate the direction of professional influence.
      • (Optional) Use dashed green arrows to indicate bidirectional, informal influence relationships.
    4. Capture the list or diagram of your stakeholders in your workbook.

    Use the BRM Workbook to capture stakeholders

    Categorize your stakeholders with a stakeholder prioritization map

    A stakeholder prioritization map help teams categorize their stakeholders by their level or influence and ownership.

    There are four areas in the map and the stakeholders within each area should be treated differently.

    • Players – players have a high interest in the initiative and the influence to effect change over the initiative. Their support is critical and a lack of support can cause significant impediment to the objectives.
    • Mediators – mediators have a low interest but significant influence over the initiative. They can help to provide balance and objective opinions to issues that arise.
    • Noisemakers – noisemakers have low influence but high interest. They tend to be very vocal and engaged, either positively or negatively, but have little ability to enact their wishes.
    • Spectators – generally, spectators are apathetic and have little influence over or interest in the initiative.

    Stakeholder prioritization map with axes 'Influence' and 'Ownership/Interest' splitting the map into four quadrants: 'Spectators Low/Low', 'Noisemakers Low/High', 'Mediators High/Low', and 'Players High/High'.

    4.3 Group your stakeholders into categories

    Input: Stakeholder Map

    Output: Categorization of stakeholders and influencers

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Identify your stakeholder’s interest in and influence on your BRM program.
    2. Map your results to the quadrant in your workbook to determine each stakeholder’s category.

    Stakeholder prioritization map with example 'Stakeholders' placed in or across the four quadrants.

    Level of Influence

    • Power: Ability of a stakeholder to effect change.
    • Urgency: Degree of immediacy demanded.
    • Legitimacy: Perceived validity of stakeholder’s claim.
    • Volume: How loud their “voice” is or could become.
    • Contribution: What they have that is of value to you.

    Level of Interest

    How much are the stakeholder’s individual performance and goals directly tied to the success or failure of the product?

    Use the BRM Workbook to map your stakeholders

    Define strategies for engaging stakeholders by type

    Each group of stakeholders draws attention and resources away from critical tasks.

    By properly identifying your stakeholder groups, you can develop corresponding actions to manage stakeholders in each group. This can dramatically reduce wasted effort trying to satisfy Spectators and Noisemakers while ensuring the needs of the Mediators and Players are met.

    Type Quadrant Actions
    Players High influence; high interest Actively Engage
    Keep them engaged through continuous involvement. Maintain their interest by demonstrating their value to its success.
    Mediators High influence; low interest Keep Satisfied
    They can be the game changers in groups of stakeholders. Turn them into supporters by gaining their confidence and trust, and include them in important decision-making steps. In turn, they can help you influence other stakeholders.
    Noisemakers Low influence; high interest Keep Informed
    Try to increase their influence (or decrease it if they are detractors) by providing them with key information, supporting them in meetings, and using Mediators to help them.
    Spectators Low influence; low interest Monitor
    They are followers. Keep them in the loop by providing clarity on objectives and status updates.

    Prioritize your stakeholders

    There may be too many stakeholders to be able to manage them all. Focus your attention on the stakeholders that matter most.

    Apply a third dimension for stakeholder prioritization: support.

    Support, in addition to interest and influence, is used to prioritize which stakeholders are should receive the focus of your attention. This table indicates how stakeholders are ranked:

    Table with 'Stakeholder Categories' and their 'Level of Support' for prioritizing. Support levels are 'Supporter', 'Evangelist', 'Neutral', and 'Blocker'.

    Support can be determined by rating the following question: how likely is it that your stakeholder would recommend IT at your organization/your group? Our four categories of support:

    • Blocker – beware of the blocker. These stakeholders do not support your cause and have the necessary drive to impede the achievement of your objectives.
    • Semi-Supporter – while these stakeholders are committed to your objectives, they are somewhat apathetic to advocate on your behalf. They will support you so long as it does not require much effort from them to do so.
    • Neutral – neutrals do not have much commitment to your objectives and are not willing to expend much energy to either support or detract from them.
    • Supporter – these stakeholders are committed to your initiative and are willing to whole-heartedly provide you with support.

    4.4 Update your stakeholder quadrant to include the three dimensions

    Input: Stakeholder Map

    Output: Categorization of stakeholders and influencers

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Identify the level of support of each stakeholder by answering the following question: how likely is it that your stakeholder would support your initiative/endeavor?
    2. Map your results to the model in your workbook to determine each stakeholder’s category.
    Stakeholder prioritization map with example 'Persons' placed in or across the four quadrants. with The third dimension, 'Level of Support', is color-coded.

    Use the BRM Workbook to map your stakeholders

    Leverage your map to think about how to engage with your stakeholders

    Not all stakeholders are equal, nor can they all be treated the same. Your stakeholder quadrant highlights areas where you may need to engage differently.

    Blockers

    Pay attention to your “blockers,” especially those that appear in the high influence and high interest part of the quadrant. Consider how your engagement with them varies from supporters in this quadrant. Consider what is valuable to these stakeholders and focus your conversations on “what’s in this for them.”

    Neutral & Evangelists

    Stakeholders that are neutral or evangelists do not require as much attention as blockers and supporters, but they still can’t be ignored – especially those who are players (high influence and engagement). Focus on what’s in it for them to move them to become supporters.

    Supporters

    Do not neglect supporters – continue to engage with them to ensure that they remain supporters. Focus on the supporters that are influential and impacted, rather than the “spectators.”

    4.5 Create your engagement plan

    Input: Stakeholder Map/list of stakeholders

    Output: Categorization of stakeholders and influencers

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Leverage the BRM Stakeholder Engagement Plan spreadsheet. List your key stakeholders.
    2. Consider: how do you show value at your current maturity level so that you can gain trust and your relationship can mature? Establish where your relationship lacks maturity, and consider whether you need to engage with them on a more strategic, tactical, or even operational manner.
      • At lower levels of maturity (Table Stakes), focus on service delivery, project delivery, and communication.
      • At mid-level maturity (Influencer/Advocate), focus on business pain points and a deeper knowledge of the business.
      • At higher maturity levels (Value Creator/Innovator), focus on creating value by leading innovative initiatives that drive the business forward.
    3. Review the stakeholder quadrant. Update the frequency of your communication accordingly.
    4. Capture the agenda for your engagements with them.

    Download and use the BRM Stakeholder Engagement Plan

    Your agenda should vary with the maturity of your relationship

    Agenda
    Stakeholder Information Type Meeting Frequency Lower Maturity Mid-Level Maturity Higher Maturity
    VP Strategic Quarterly
    • Summary of current and upcoming projects and initiatives
    • Business pain points for the department
    • Proposed solutions to address business pain points
    • Innovative solutions to improve business processes and drive value for the department and the organization
    Director Strategic, Tactical Monthly
    • Summary of recent and upcoming changes
    • Summary of current and upcoming projects and initiatives
    • Business pain points for the department
    • Proposed business process improvements
    • Current and upcoming project proposals to address business pain points
    • Innovative solutions to help the department achieve its business goals and objectives
    Manager Tactical Monthly
    • Summary of service desk tickets
    • Summary of recent and upcoming changes
    • Summary of current and upcoming projects and initiatives
    • Business pain points for the team
    • Proposed business activity improvements
    • Current and upcoming projects to address business pain points
    • Innovative solutions to help business users perform their daily business activities more effectively and efficiently

    Lower Maturity – Focus on service delivery, project delivery, and communication

    Mid-Level Maturity – Focus on business pain points and a deeper knowledge of the business

    Higher Maturity – Focus on creating value by leading innovative initiatives that drive the business forward

    Stakeholder – Include both IT and business stakeholders at appropriate levels

    Agenda – Manage stakeholders expectations, and clarify how your agenda will progress as the partnership matures

    REASSESS & EMBED

    Assess

    1.1 Define BRM

    1.2 Analyze Satisfaction

    1.3 Assess SWOT

    Situate

    2.1 Create Vision

    2.2 Create the BRM Mission

    2.3 Establish Goals

    Plan

    3.1 Establish Guiding Principles

    3.2 Determine Where BRM Fits

    3.3 Establish BRM Expectations

    3.4 Identify Roles With BRM Responsibilities

    3.5 Align Capabilities

    Implement

    4.1 Brainstorm Sources of Business Value

    4.2 Identify Key Influencers

    4.3 Categorize the Stakeholders

    4.4 Create the Prioritization Map

    4.5 Create Your Engagement Plan

    Reassess & Embed

    5.1 Create Metrics

    5.2 Prioritize Your Projects

    5.3 Create a Portfolio Investment Map

    5.4 Establish Your Annual Plan

    5.5 Build Your Transformation Roadmap

    5.6 Create Your Communication Plan

    Measure your BRM practice success

    • Metrics are powerful because they drive behavior.
    • Metrics are also dangerous because they often lead to unintended negative outcomes.
    • Metrics should be chosen carefully to avoid getting “what you asked for” instead of “what you intended.”

    Stock image of multiple business people running off the end of a pointed finger like lemmings.

    Questions to ask Are your metrics achievable?
    1. What are the leading indicators of BRM effectively supporting the business’ strategic direction?
    2. How are success metrics aligned with the objectives of other functional groups?

    S pecific

    M easurable

    A chievable

    R ealistic

    T ime-bound

    Embedding the BRM practice within your organization must be grounded in achievable outcomes.

    Ensure that the metrics your practice is measured against reflect realistic and tangible business expectations. Overpromising the impact the practice will have can lead to long-term implementation challenges.

    Determine whether your business is satisfied with IT

    Measuring tape.

    1

    Survey your stakeholders to measure improvements in customer satisfaction.

    Leverage the CIO Business Vision on a regular interval – most find that annual assessments drive success.

    Evaluate whether the addition or increased maturity of your BRM practice has improved satisfaction with IT.

    Business satisfaction survey

    • Audience: Business leaders
    • Frequency: Annual
    • Metrics:
      • Overall Satisfaction score
      • Overall Value score
      • Relationship Satisfaction:
        • Understand needs
        • Meet needs
        • Communication
    Two small tables showing example 'Value' and 'Satisfaction' scores.
    Table with a breakdown of the example 'Satisfaction' score, with individual scores for 'Needs', 'Execution', and 'Communication'.

    Check if you’ve met the BRM goals you set out to achieve

    Measuring tape.

    2

    Measure BRM success against the goals for the practice.

    Evaluate whether the BRM practice has helped IT to meet the goals that you’ve established.

    For each of your goals, create metrics to establish how you will know if you’ve been successful. This might be how many or what type of interactions you have with your stakeholders, and/or it could be new connections with internal or external partners.

    Ensure you have established metrics to measure success at your goals.

    Dart board with five darts, each representing a goal, 'Demand Shaping', 'Value Realization', 'Servicing', 'Exploring', and 'Other Goal(s)'.

    5.1 Create metrics

    Input: Goals, The attributes which can align to goal success

    Output: Measurements of success

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Start with a consideration of your goals and objectives.
    2. Identify key aspects that can support confirming if the goal was successful.
    3. For each aspect, develop a method to measure success with a specific measurement.
    4. When creating the KPI consider:
      • How you know if you are achieving your objective (performance)?
      • How frequently will you be measuring this?
      • Are you looking for an increase, decrease, or maintenance of the metric?
    Table with columns 'BRM Goals', 'Measurement', 'KPI', and 'Frequency'.

    Use the BRM Workbook

    Don’t wait all year to find out if you’re on track

    Leverage the below questions to quickly poll your business partners on a more frequent basis.

    Partner instructions:

    Please indicate how much you agree with each of the following statements. Use a scale of 1-5, where 1 is low agreement and 5 indicates strong agreement:

    Demand Shaping: My BRM is at the table and seeks to understand my business. They help me understand IT and helps IT prioritize my needs.

    Exploring: My BRM surfaces new opportunities based on their understanding of my pain points and growth needs. They engage resources with a focus on the value to be delivered.

    Servicing: The BRM obtains an understanding of the services and service levels that are required, clarifies them, and communicates costs and risks.

    Value Harvesting: Focus on value is evident in discussions – the BRM supports IT in ensuring value realization is achieved and tracks value during and beyond deployment.

    Embedding the BRM practice also includes acknowledging the BRM’s part in balancing the IT portfolio

    IT needs to juggle “keeping the lights on” initiatives with those required to add value to the organization.

    Partner with the appropriate resources (Project Management Office, Product Owners, System Owners, and/or others as appropriate within your organization) to ensure that all initiatives focus on value.

    Info-Tech Insight

    Not every organization will balance their portfolio in the same way. Some organizations have higher risk tolerance and so their higher priority goals may require that they accept more risk to potentially reap more returns.

    Stock image of a man juggling business symbols.

    80% of organizations feel their portfolios are dominated by low-value initiatives that do not deliver value to the business. (Source: Stage-Gate International and Product Development Institute, March/April 2009)

    All new requests are not the same; establish a process for intake and manage expectations and IT’s capacity to deliver value.

    Ensure you communicate your process to support new ideas with your stakeholders. They’ll be clear on the steps to bring new initiatives into IT and will understand and be engaged in the process to demonstrate value.

    Flowchart for an example intake process.

    For support creating your intake process, go to Optimize Project Intake, Approval and Prioritization Sample of Info-Tech's Optimize Project Intake, Approval and Prioritization.

    Use value as your criteria to evaluate initiatives

    Work with project managers to ensure that all projects are executed in a way that meets business expectations.

    Sample of Info-Tech’s Project Value Scorecard Development Tool.

    Download Info-Tech’s Project Value Scorecard Development Tool.

    Enter risk/compliance criteria under operational alignment: projects must be aligned with the operational goals of the business and IT.

    Business value matrix.

    Enter these criteria under strategic alignment: projects must be aligned with the strategic goals of the business, customer, and IT.
    Enter financial criteria under financial: projects must realize monetary benefits, in increased revenue or decreased costs, while posing as little risk of cost overrun as possible.
    And don’t forget about feasibility: practical considerations for projects must be taken into account in selecting projects.

    5.2 Prioritize your investments/ projects (optional activity)

    Input: Value criteria

    Output: Prioritized project listing

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Review and edit (if necessary) the criteria on tab 2 the Project Value Scorecard Development Tool.
      Screenshot from tab 2 of Info-Tech’s Project Value Scorecard Development Tool.
    2. Score initiatives and investments on tab 3 using your criteria.
      Screenshot from tab 3 of Info-Tech’s Project Value Scorecard Development Tool.
    Download Info-Tech’s Project Value Scorecard Development Tool.

    Visualize where investments add value through an initiative portfolio map

    An initiative portfolio map is a graphic visualization of strategic initiatives overlaid on a business capability map.

    Leverage the initiative portfolio map to communicate the value of what IT is working on to your stakeholders.

    Info-Tech Insight

    Projects will often impact one or more capabilities. As such, your portfolio map will help you identify cross-dependencies when scaling up or scaling down initiatives.

    Example initiative portfolio map


    Example initiative portfolio map with initiatives in categories like 'Marketing Strategy' and 'Brand Mgmt.'. Certain groups of initiatives have labels detailing when they achieve collectively.

    5.3 Create a portfolio investment map (optional activity)

    Input: Business capability map

    Output: Portfolio investment map

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Build a capability map, outlining the value streams that support your organization’s goals and the high-level capabilities (level 1) that support the value stream (and goals).
      For more support in establishing the capability map, see Document Your Business Architecture.
      Example table for outlining 'Value Streams' and 'Level 1 Capabilities' through 'Goals'.
    2. Identify high-value capabilities for the organization.
    3. What are the projects and initiatives that will address the critical capabilities? Add these under the high-value capabilities.
    4. This process will help you demonstrate how projects align to business goals. Enter your capabilities and projects in Info-Tech’s Initiative Portfolio Map Template.
    Download Info-Tech’s Initiative Portfolio Map Template.

    Establish your annual BRM plan

    To support the BRM capability at your organization, you’ll want to communicate your plan. This will include:
    • Business Feedback and Engagement
      • Engaging with your partners includes meeting with them on a regular basis. Establish this frequency and capture it in your plan. This engagement must include an understanding of their goals and challenges.
      • As Bill Gates said, “We all need people who will give us feedback. That’s how we improve” (Inc.com, 2013). There are various points in the year which will provide you with the opportunity to understand your business partners’ views of IT or the BRM role. List the opportunities to reflect on this feedback in your plan.
    • Business-IT Alignment
      • Bring together the views and perspectives of IT and the business.
      • List the activities that will be required to reflect business goals in IT. These include IT goals, budget, and planning.
    • BRM Improvement
      • The practices put in place to support the BRM practice need to continuously evolve to support a maturing organization. The feedback from stakeholders throughout the organization will provide input into this. Ensure there are activities and time put aside to evaluate the improvements required.
    Stock image of someone discovering a calendar in a jungle with a magnifying glass.

    5.4 Establish your year-in-the-life plan

    Input: Engagement plan, BRM goals

    Output: Annual BRM plan

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Start with your business planning activities – what will you as a BRM be doing as your business establishes their plans and strategies? These could include:
      • Listening and feedback sessions
      • Third-party explorations
    2. Then look at your activities required to integrate within IT – what activities are required to align business directives within your IT groups? Examples can include:
      • Business strategy review
      • Capability map creation
      • Input into the Business-aligned IT strategy
      • IT budget input
    3. What activities are required to continuously improve the BRM role? This may consist of:
      • Feedback discussions with business partners
      • Roadshow with colleagues to communicate and refine the practice
    4. Map these on your annual calendar that can be shared with your colleagues.
    Capture in the BRM Workbook

    Communicate using the Executive Buy-In and Communication Template

    Sample of a slide titled 'BRM Annual Cycle'.

    Sample BRM annual cycle

    Sample BRM annual cycle with row headers 'Business Feedback and Engagement', 'Business-IT Alignment', and 'BRM Improvement' mapped across a Q1 to Q4 timeline with individual tasks in each category.

    5.5 Build your transformation roadmap

    Input: SWOT analysis

    Output: Transformation roadmap

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. Brainstorm and discuss the key enablers that are needed to help promote and ease your BRM program.
    2. Brainstorm and discuss the key blockers (or risks) that may interrupt or derail your BRM program.
    3. Brainstorm mitigation activities for each blocker.
    4. Enablers and mitigation activities can be listed on your transformation roadmap.

    Example:

    Enablers

    • High business engagement and buy-in
    • Supportive BRM leadership
    • Organizational acceptance for change
    • Development process awareness by development teams
    • Collaborative culture
    • Existing tools can be customized for BRM

    Blockers

    • Pockets of management resistance
    • Significant time is required to implement BRM and train resources
    • Geographically distributed resources
    • Difficulty injecting customers in demos

    Mitigation

    • BRM workshop training with all teams and stakeholders to level set expectations
    • Limit the scope for pilot project to allow time to learn
    • Temporarily collocate all resources and acquire virtual communication technology

    Capture in the BRM Workbook

    5.5 Build your transformation roadmap (cont’d)

    1. Roadmap Elements:
      • List the artifacts, changes, or actions needed to implement the new BRM program.
      • For each item, identify how long it will take to implement or change by moving it into the appropriate swim lane. Use timing that makes sense for your organization: Quick Wins, Short Term, and Long Term; Now, Next, and Later; or Q1, Q2, Q3, and Q4.

    Example transformation roadmap with BRM programs arranged in columns 'Now', 'Next (3-6 months)', 'Later (6+ months)', and 'Deferred'.

    Communicate the BRM changes to set your practice up for success

    Leaders of successful change spend considerable time developing a powerful change message, i.e. a compelling narrative that articulates the desired end state, and that makes the change concrete and meaningful to staff.

    The change message should:

    • Explain why the change is needed.
    • Summarize what will stay the same.
    • Highlight what will be left behind.
    • Emphasize what is being changed.
    • Explain how change will be implemented.
    • Address how change will affect various roles in the organization.
    • Discuss the staff’s role in making the change successful.
    Five elements of communicating change
    Diagram titled 'COMMUNICATING THE CHANGE' surrounded by useful questions: 'What is the change?', 'What will the role be for each department and individual?', 'Why are we doing it?', 'How long will it take us to do it?', and 'How are we going to go about it?'.
    (Source: The Qualities of Leadership: Leading Change)

    Apply the following communication principles to make your BRM changes relevant to stakeholders

    “We tend to use a lot of jargon in our discussions, and that is a sure fire way to turn people away. We realized the message wasn’t getting out because the audience wasn’t speaking the same language. You have to take it down to the next level and help them understand where the needs are.” (Jeremy Clement, Director of Finance, College of Charleston, Info-Tech Interview, 2018)

    Be Relevant

    • Talk about what matters to the stakeholder. Think: “what’s in it for them?
    • Tailor the details of the message to each stakeholder’s specific concerns.
    • Often we think in processes but stakeholders only care about results: talk in terms of results.

    Be Clear

    • Don’t use jargon.
    • Choice of language is important: “Do you think this is a good idea? I think we could really benefit from your insights and experience here.” Or do you mean: “I think we should do this. I need you to do this to make it happen.”

    Be Concise

    • Keep communication short and to the point so key messages are not lost in the noise.
    • There is a risk of diluting your key message if you include too many other details.

    Be Consistent

    • The core message must be consistent regardless of audience, channel, or medium. A lack of consistency can be interpreted as an attempt at deception. This can hurt credibility and trust.
    • Test your communication with your team or colleagues to obtain feedback before delivering to a broader audience.

    5.6 Create a communications plan tailored to each of your stakeholders

    Input: Prioritized list of stakeholders

    Output: Communication Plan

    Materials: Whiteboard/flip charts (physical or electronic)

    Participants: Team

    1. List stakeholders in order of importance in the first column.
    2. Identify the frequency with which you will communicate to each group.
    3. Determine the scope of the communication:
      • What key information needs to be included in the message to ensure they are informed and on board?
      • Which medium(s) will you use to communicate to that specific group?
    4. Develop a concrete timeline that will be followed to ensure that support is maintained from the key stakeholders.

    Audience

    All BRM Staff

    Purpose

    • Introduce and explain operating model
    • Communicate structural changes

    Communication Type

    • Team Meeting

    Communicator

    CIO

    Timing

    • Sept 1 – Introduce new structure
    • Sept 15 – TBD
    • Sept 29 – TBD

    Related Blueprints

    Business Value
    Service Catalog
    Intake Management
    Sample of Info-Tech's 'Document Your Business Architecture' blueprint.
    Sample of Info-Tech's 'Design and Build a User-Facing Service Catalog' blueprint.
    Sample of Info-Tech's 'Manage Stakeholder Relations' blueprint.
    Sample of Info-Tech's 'Document Business Goals and Capabilities for Your IT Strategy' blueprint.
    Sample of Info-Tech's 'Fix Your IT Culture' blueprint.

    Selected Bibliography

    “Apple Mission and Vision Analysis.” Mission Statement Academy, 23 May 2019. Accessed 5 November 2020.

    Barnes, Aaron. “Business Relationship Manager and Plan Build Run.” BRM Institute, 8 April 2014.

    Barnes, Aaron. “Starting a BRM Team - Business Relationship Management Institute.” BRM Institute, 5 June 2013. Web.

    BRM Institute. “Business Partner Maturity Model.” Member Templates and Examples, Online Campus, n.d. Accessed 3 December 2021.

    BRM Institute. “BRM Assessment Templates and Examples.” Member Templates and Examples, Online Campus, n.d. Accessed 24 November 2021.

    Brusnahan, Jim, et al. “A Perfect Union: BRM and Agile Development and Delivery.” BRM Institute, 8 December 2020. Web.

    Business Relationship Management: The BRMP Guide to the BRM Body of Knowledge. Second printing ed., BRM Institute, 2014.

    Chapman, Chuck. “Building a Culture of Trust - Remote Leadership Institute.” Remote Leadership Institute, 10 August 2021. Accessed 27 January 2022.

    “Coca Cola Mission and Vision Analysis.” Mission Statement Academy, 4 August 2019. Accessed 5 November 2020.

    Colville, Alan. “Shared Vision.” UX Magazine, 31 October 2011. Web.

    Cooper, Robert, G. “Effective Gating: Make product innovation more productive by using gates with teeth.” Stage-Gate International and Product Development Institute, March/April 2009. Web.

    Heller, Martha. “How CIOs Can Make Business Relationship Management (BRM) Work.” CIO, 1 November 2016. Accessed 27 January 2022.

    “How Many Business Relationship Managers Should You Have.” BRM Institute, 20 March 2013. Web.

    Hull, Patrick. “Answer 4 Questions to Get a Great Mission Statement.” Forbes, 10 January 2013. Web.

    Kasperkevic, Jana. “Bill Gates: Good Feedback Is the Key to Improvement.” Inc.com, 17 May 2013. Web.

    Merlyn, Vaughan. “Relationships That Matter to the BRM.” BRM Institute, 19 October 2016. Web.

    “Modernizing IT’s Business Relationship Manager Role.” The Hackett Group, 22 November 2019. Web.

    Monroe, Aaron. “BRMs in a SAFe World...That Is, a Scaled Agile Framework Model.” BRM Institute, 5 January 2021. Web.

    Selected Bibliography

    “Operational, adj." OED Online, Oxford University Press, December 2021. Accessed 29 January 2022.

    Sinek, Simon. “Transcript of ‘How Great Leaders Inspire Action.’” TEDxPuget Sound, September 2009. Accessed 7 November 2020.

    “Strategic, Adj. and n.” OED Online, Oxford University Press, December 2016. Accessed 27 January 2022.

    “Tactical, Adj.” OED Online, Oxford University Press, September 2018. Accessed 27 January 2022.

    “The Qualities of Leadership: Leading Change.” Cornelius & Associates, 23 September 2013. Web.

    “Twice the Business Value in Half the Time: When Agile Methods Meet the Business Relationship Management Role.” BRM Institute, 10 April 2015. Web.

    “Value Streams.” Scaled Agile Framework, 30 June 2020. Web.

    Ward, John. “Delivering Value from Information Systems and Technology Investments: Learning from Success.” Information Systems Research Centre, August 2006. Web.

    Appendix

    • Business Value Drivers
    • Service Blueprint
    • Stakeholder Communications
    • Job Descriptions

    Understand business value drivers for ROI and cost

    Make Money

    This value driver is specifically related to the impact a product or service has on your organization’s ability to show value for the investments. This is usually linked to the value for money for an organization.

    Return on Investment can be derived from:

    • Sustaining or increasing funding.
    • Enabling data monetization.
    • Improving the revenue generation of an existing service.
    • Preventing the loss of a funding stream.

    Be aware of the difference among your products and services that enable a revenue source and those which facilitate the flow of funding.

    Save Money

    This value driver relates to the impact of a product or service on cost and budgetary constraints.

    Reduce costs value can be derived from:

    • Reducing the cost to provide an existing product or service.
    • Replacing a costly product or service with a less costly alternative.
    • Bundling and reusing products or services to reduce overhead.
    • Expanding the use of shared services to generate more value for the cost of existing investment.
    • Reducing costs through improved effectiveness and reduction of waste.

    Budgetary pressures tied to critical strategic priorities may defer or delay implementation of initiatives and revision of existing products and services.

    Understand Business Value Drivers that Enhance Your Services

    Operations

    Some products and services are in place to facilitate and support the structure of the organization. These vary depending on what is important to your organization, but should be assessed in relation to the organizational culture and structure you have identified.

    • Adds or improves effectiveness for a particular service or the process and technology enabling its success.

    Risk and Compliance

    A product or service may be required in order to meet a regulatory requirement. In these cases, you need to be aware of the organizational risk of NOT implementing or maintaining a service in relation to those risks.

    In this case, the product or service is required in order to:

    • Prevent fines.
    • Allow the organization to operate within a specific jurisdiction.
    • Remediate audit gaps.
    • Provide information required to validate compliance.

    Internal Information

    Understanding internal operations is also critical for many organizations. Data captured through your operations provides critical insights that support efficiency, productivity, and many other strategic goals.

    Internal information value can be derived by:

    • Identifying areas of improvement in the development of core offerings.
    • Monitoring and tracking employee behavior and productivity.
    • Monitoring resource levels.
    • Monitoring inventory levels.

    Collaboration and Knowledge Transfer

    Communication is integral and products and services can be the link that ties your organization together.

    In this case, the value generated from products and services can be to:

    • Align different departments and multiple locations.
    • Enable collaboration.
    • Capture trade secrets and facilitate organizational learning.

    Understand Business Value Drivers that Connect the Business to Your Customers

    Policy

    Products and services can also be assessed in relation to whether they enable and support the required policies of the organization. Policies identify and reinforce required processes, organizational culture, and core values.

    Policy value can be derived from:

    • The service or initiative will produce outcomes in line with our core organizational values.
    • It will enable or improve adherence and/or compliance to policies within the organization.

    Customer Relations

    Products and services are often designed to facilitate goals of customer relations; specifically, improve satisfaction, retention, loyalty, etc. This value type is most closely linked to brand management and how a product or service can help execute brand strategy. Customers, in this sense, can also include any stakeholders who consume core offerings.

    Customer satisfaction value can be derived from:

    • Improving the customer experience.
    • Resolving a customer issue or identified pain point.
    • Providing a competitive advantage for your customers.
    • Helping to retain customers or prevent them from leaving.

    Market Information

    Understanding demand and market trends is a core driver for all organizations. Data provided through understanding the ways, times, and reasons that consumers use your services is a key driver for growth and stability.

    Market information value can be achieved when an app:

    • Addresses strategic opportunities or threats identified through analyzing trends.
    • Prevents failures due to lack of capacity to meet demand.
    • Connects resources to external sources to enable learning and growth within the organization.

    Market Share

    Market share represents the percentage of a market or market segment that your business controls. In essence, market share can be viewed as the potential for more or new revenue sources.

    Assess the impact on market share. Does the product or service:

    • Increase your market share?
    • Open access to a new market?
    • Help you maintain your market share?

    Service Blueprint

    Service design involves an examination of the people, process and technology involved in delivering a service to your customers.

    Service blueprinting provides a visual of how these are connected together. It enables you to identify and collaborate on improvements to an existing service.

    The main components of a service blueprint are:

    Customer actions – this anchors the service in the experiences of the customer

    Front-stage – this shows the parts of the service that are visible to the customer

    Back-stage – this is the behind-the-scenes actions necessary to deliver the experience to the customer

    Support processes – this is what’s necessary to deliver the back-stage (and front-stage/customer experience), but is not aligned from a timing perspective (e.g. it doesn’t matter if the fridge is stocked when the order is put in, as long as the supplies are available for the chef to use)

    Example service blueprint with the main components listed above as row headers.

    Physical Evidence and Time are blueprint components can be added in to provide additional context & support

    Example service blueprint with the main components plus added components 'Physical Evidence' and 'Time'.

    Stakeholder Communications

    Personalize
    • “What’s in it for me” & Persona development – understanding what the concerns are from the community that you will want to communicate about
    • Get to know the cultures of each persona to identify how they communicate. For the faculty, Teams might not be the answer, but faculty meetings might be, or sending messages via email. Each persona group may have unique/different needs
    • Meet them “where they are”: Be prepared to provide 5-minute updates (with “what’s in it for me” and personas in mind) at department meetings in cases where other communications (Teams etc.) aren’t reaching the community
    • Review the business vision diagnostic report to understand what’s important to each community group and what their concerns are with IT. Definitely review the comments that users have written.
    Show Proof
    • Share success stories tailored to users needs – e.g. if they have a concern with security, and IT implemented a new secure system to better meet their needs, then telling them about the success is helpful – shows that you’re listening and have responded to meet their concerns. Demonstrates how interacting with IT has led to positive results. People can more easily relate to stories

    Reference
    • Consider establishing a repository (private/unlisted YouTube channel, Teams, etc.) so that the community can search to view the tip/trick they need
    • Short videos are great to provide a snippet of the information you want to share
    Responses
    • Engage in 2-way communications – it’s about the messages IT wants to convey AND the messages you want them to convey to you. This helps to ensure that your messages aren’t just heard but are understood/resonate.
    • Let people know how they should communicate with IT – whether it’s engaging through Teams, via email to a particular address, or through in person sessions
    Test & Learn
    • Be prepared to experiment with the content and mediums, and use analytics to assess the results. For example if videos are posted on a site like SharePoint that already has analytics functionality, you can capture the number of views to determine how much they are viewed
    Multiple Mediums
    • Use a combination of one-on-one interviews/meetings and focus groups to obtain feedback. You may want to start with some of the respondents who provided comments on surveys/diagnostics

    BRM Job Descriptions

    Download the Job Descriptions:

    Minimize the Damage of IT Cost Cuts

    • Buy Link or Shortcode: {j2store}53|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: Cost & Budget Management
    • Parent Category Link: /cost-and-budget-management
    • Average growth rates for Opex and Capex budgets are expected to continue to decline over the next fiscal year.
    • Common “quick-win” cost-cutting initiatives are not enough to satisfy the organization’s mandate.
    • Cost-cutting initiatives often take longer than expected, failing to provide cost savings before the organization’s deadline.
    • Cost-optimization projects often have unanticipated consequences that offset potential cost savings and result in business dissatisfaction.

    Our Advice

    Critical Insight

    • IT costs affect the entire business, not just IT. For this reason, IT must work with the business collaboratively to convey the full implications of IT cost cuts.
    • Avoid making all your cuts at once; phase your cuts by taking into account the magnitude and urgency of your cuts and avoid unintended consequences.
    • Don’t be afraid to completely cut a service if it should not be delivered in the first place.

    Impact and Result

    • Take a value-based approach to cost optimization.
    • Reduce IT spend while continuing to deliver the most important services.
    • Involve the business in the cost-cutting process.
    • Develop a plan for cost cutting that avoids unintended interruptions to the business.

    Minimize the Damage of IT Cost Cuts Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should take a value-based approach to cutting IT 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. Understand the mandate and take immediate action

    Determine your approach for cutting costs.

    • Minimize the Damage of IT Cost Cuts – Phase 1: Understand the Mandate and Take Immediate Action
    • Cost-Cutting Plan
    • Cost-Cutting Planning Tool

    2. Select cost-cutting initiatives

    Identify the cost-cutting initiatives and design your roadmap.

    • Minimize the Damage of IT Cost Cuts – Phase 2: Select Cost-Cutting Initiatives

    3. Get approval for your cost-cutting plan and adopt change management best practices

    Communicate your roadmap to the business and attain approval.

    • Minimize the Damage of IT Cost Cuts – Phase 3: Get Approval for Your Cost-Cutting Plan and Adopt Change Management Best Practices
    • IT Personnel Engagement Plan
    • Stakeholder Communication Planning Tool
    [infographic]

    Workshop: Minimize the Damage of IT Cost Cuts

    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 Mandate and Take Immediate Action

    The Purpose

    Determine your cost-optimization stance.

    Build momentum with quick wins.

    Key Benefits Achieved

    Understand the internal and external drivers behind your cost-cutting mandate and the types of initiatives that align with it.

    Activities

    1.1 Develop SMART project metrics.

    1.2 Dissect the mandate.

    1.3 Identify your cost-cutting stance.

    1.4 Select and implement quick wins.

    1.5 Plan to report progress to Finance.

    Outputs

    Project metrics and mandate documentation

    List of quick-win initiatives

    2 Select Cost-Cutting Initiatives

    The Purpose

    Create the plan for your cost-cutting initiatives.

    Key Benefits Achieved

    Choose the correct initiatives for your roadmap.

    Create a sensible and intelligent roadmap for the cost-cutting initiatives.

    Activities

    2.1 Identify cost-cutting initiatives.

    2.2 Select initiatives.

    2.3 Build a roadmap.

    Outputs

    High-level cost-cutting initiatives

    Cost-cutting roadmap

    3 Get Approval for Your Cost-Cutting Plan and Adopt Change Management Best Practices

    The Purpose

    Finalize the cost-cutting plan and present it to the business.

    Key Benefits Achieved

    Attain engagement with key stakeholders.

    Activities

    3.1 Customize your cost-cutting plan.

    3.2 Create stakeholder engagement plans.

    3.3 Monitor cost savings.

    Outputs

    Cost-cutting plan

    Stakeholder engagement plan

    Cost-monitoring plan

    Assess Infrastructure Readiness for Digital Transformation

    • Buy Link or Shortcode: {j2store}300|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: Strategy and Organizational Design
    • Parent Category Link: /strategy-and-organizational-design

    There are many challenges for I&O when it comes to digital transformation, including:

    • Legacy infrastructure technical debt
    • Skills and talent in the IT team
    • A culture that resists change
    • Fear of job loss

    These and many more will hinder your progress, which demonstrates the need to invest in modernizing your infrastructure, investing in training and hiring talent, and cultivating a culture that supports digital transformation.

    Our Advice

    Critical Insight

    By using the framework of culture, competencies, collaboration and capabilities, organizations can create dimensions in their I&O structure in order to shift from traditional infrastructure management to becoming a strategic enabler, driving agility, innovation, and operational excellence though the effective integration of people, process, and technology.

    Impact and Result

    By driving a customer-centric approach, delivering a successful transformation can be tailored to the business goals and drive adoption and engagement. Refining your roadmap through data and analytics will drive this change. Use third-party expertise to guide your transformation and help build that vision of the future.

    Assess Infrastructure Readiness for Digital Transformation Research & Tools

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

    1. Assess Infrastructure Readiness for Digital Transformation – Unlock the full potential of your infrastructure with a digital transformation strategy and clear the barriers for success.

  • Be customer centric as opposed to being technology driven.
  • Understanding business needs and pain points is key to delivering solutions.
  • Approach infrastructure digital transformation in iterations and look at this as a journey.
    • Assess Infrastructure Readiness for Digital Transformation Storyboard
    • I&O Digital Transformation Maturity Assessment Tool

    Infographic

    Further reading

    Assess Infrastructure Readiness for Digital Transformation

    Unlock the full potential of your infrastructure with a digital transformation strategy and clear the barriers to success.

    Analyst Perspective

    It’s not just about the technology!

    Many businesses fail in their endeavors to complete a digital transformation, but the reasons are complex, and there are many ways to fail, whether it is people, process, or technology. In fact, according to many surveys, 70% of digital transformations fail, and it’s mainly down to strategy – or the lack thereof.

    A lot of organizations think of digital transformation as just an investment in technology, with no vision of what they are trying to achieve or transform. So, out of the gate, many organizations fail to undergo a meaningful transformation, change their business model, or bring about a culture of digital transformation needed to be seriously competitive in their given market.

    When it comes to I&O leaders who have been given a mandate to drive digital transformation projects, they still must align to the vision and mission of the organization; they must still train and hire staff that will be experts in their field; they must still drive process improvements and align the right technology to meet the needs of a digital transformation.

    John Donovan

    John Donovan

    Principal Research Director, I&O
    Info-Tech Research Group

    Insight summary

    Overarching insight

    Digital transformation requires I&O teams to shift from traditional infrastructure management to becoming a strategic enabler, driving agility, innovation, and operational excellence through effective integration of people, process, and technology.

    Insight 1

    Collaboration is a key component of I&O – Promote strong collaboration between I&O and other business functions. When doing a digital transformation, it is clear that this is a cross-functional effort. Business leaders and IT teams need to align their objectives, prioritize initiatives, and ensure that you are seamlessly integrating technologies with the new business functions.

    Insight 2

    Embrace agility and adaptability as core principles – As the digital landscape continues to evolve, it is paramount that I&O leaders are agile and adaptable to changing business needs, adopting new technology and implementing new innovative solutions. The culture of continuous improvement and openness to experimentation and learning will assist the I&O leaders in their journey.

    Insight 3

    Future-proof your infrastructure and operations – By anticipating emerging technologies and trends, you can proactively plan and organize your team for future needs. By investing in scalable, flexible infrastructure such as cloud services, automation, AI technologies, and continuously upskilling the IT staff, you can stay relevant and forward-looking in the digital space.

    Tactical insight

    An IT infrastructure maturity assessment is a foundational step in the journey of digital transformation. The demand will be on performance, resilience, and scalability. IT infrastructure must be able to support innovation and rapid deployment of services.

    Tactical insight

    Having a clear strategy, with leadership commitment along with hiring and training the right people, monitoring and measuring your progress, and ensuring it is a business-led journey will increase your chances of success.

    Executive Summary

    Your Challenge

    There are a lot of challenges for I&O when it comes to digital transformation, including:

    • Legacy infrastructure technical debt.
    • Skills and talent in the IT team.
    • A culture that resists change.
    • Fear of job loss.

    These and many more will hinder your progress, which demonstrates the need to invest in modernizing your infrastructure, investing in training and hiring talent, and cultivating a culture that supports digital transformation.

    Common Obstacles

    Many obstacles to digital transformation begin with non-I&O activities, including:

    • Lack of a clear vision and strategy.
    • Siloed organizational structure.
    • Lack of governance and data management.
    • Limited budget and resources.

    By addressing these obstacles, I&O will have a better chance of a successful transformation and delivering the full potential of digital technologies.

    Info-Tech's Approach

    Building a culture of innovation by developing clear goals and creating a vision will be key.

    • Be customer centric as opposed to being technology driven.
    • Understand the business needs and pain points in order to effectively deliver solutions.
    • Approach infrastructure digital transformation in iterations and look at it as a journey.

    By completing the Info-Tech digital readiness questionnaire, you will see where you are in terms of maturity and areas you need to concentrate on.

    Info-Tech Insight

    By driving a customer-centric approach, delivering a successful transformation can be tailored to the business goals and drive adoption and engagement. Refining your roadmap through data and analytics will drive this change. Use third-party expertise to guide your transformation and help build that vision of the future.

    The cost of digital transformation

    The challenges that stand in the way of your success, and what is needed to reverse the risk

    What CIOs are saying about their challenges

    26% of those CIOs surveyed cite resistance to change, with entrenched viewpoints demonstrating a real need for a cultural shift to enhance the digital transformation journey.

    Source: Prophet, 2019.

    70% of digital transformation projects fall short of their objectives – even when their leadership is aligned, often with serious consequences.

    Source: BCG, 2020.

    Having a clear strategy and commitment from leadership, hiring and training the right people, monitoring and measuring your progress, and ensuring it is a business-led journey will increase your chances of success.

    Info-Tech Insight

    Cultural change, business alignment, skills training, and setting a clear strategy with KPIs to demonstrate success are all key to being successful in your digital journey.

    Small and medium-sized enterprises

    What business owners and CEOs are saying about their digital transformation

    57% of small business owners feel they must improve their IT infrastructure to optimize their operations.

    Source: SMB Story, 2023.

    64% of CEOs believe driving digital transformation at a rapid pace is critical to attracting and retaining talent and customers.

    Source: KPMG, 2022.

    Info-Tech Insight

    An IT infrastructure maturity assessment is a foundational step in the journey of digital transformation. The demand will be on performance, resilience, and scalability. IT infrastructure must be able to support innovation and rapid deployments.

    Master the Public Cloud IaaS Acquisition Models

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

    Understanding the differences in IaaS platform agreements, purchasing options, associated value, and risks. What are your options for:

    • Upfront or monthly payments
    • Commitment discounts
    • Support options
    • Migration planning and support

    Our Advice

    Critical Insight

    IaaS platforms offer similar technical features, but they vary widely on their procurement model. By fully understanding the procurement differences and options, you will be able to purchase wisely, save money both long and short term, and mitigate investment risk.

    Most vendors have similar processes and options to buy. Finding a transparent explanation and summary of each platform in a side-by-side review is difficult.

    • Are vendor reps being straight forward?
    • What are the licensing requirements?
    • What discounts or incentives can I negotiate?
    • How much do I have to commit to and for how long?

    Impact and Result

    This project will provide several benefits for both IT and the business. It includes:

    • Best IaaS platform to support current and future procurement requirements.
    • Right-sized cloud commitment tailored to the organization’s budget.
    • Predictable and controllable spend model.
    • Flexible and reliable IT infrastructure that supports the lines of business.
    • Reduced financial and legal risk.

    Master the Public Cloud IaaS Acquisition Models Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to learn how the public cloud IaaS procurement models compare. Review Info-Tech’s methodology and understand the top three platforms, features, and benefits to support and inform the IaaS vendor choice.

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

    1. Educate

    Learn the IaaS basics, terminologies, purchasing options, licensing requirements, hybrid options, support, and organization requirements through a checklist process.

    • Master the Public Cloud IaaS Acquisition Models – Phase 1: Educate
    • Public Cloud Procurement Checklist
    • Microsoft Public Cloud Licensing Guide

    2. Evaluate

    Review and understand the features, downsides, and differences between the big three players.

    • Master the Public Cloud IaaS Acquisition Models – Phase 2: Evaluate
    • Public Cloud Procurement Comparison Summary

    3. Execute

    Decide on a primary vendor that meets requirements, engage with a reseller, negotiate pricing incentives, migration costs, review, and execute the agreement.

    • Master the Public Cloud IaaS Acquisition Models – Phase 3: Execute
    • Public Cloud Acquisition Executive Summary Template

    Infographic

    Agile Readiness Assessment Survey

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    • Parent Category Name: Development
    • Parent Category Link: /development
    • Today’s realities are driving organizations to digitize faster and become more Agile.
    • Agile transformations are difficult and frequently fail for a variety of reasons.
    • To achieve the benefits of Agile, organizations need to be ready for the significant changes that Agile demands.
    • Challenges to your Agile transformation can come from a variety of sources.

    Our Advice

    Critical Insight

    • Use Info-Tech’s CLAIM+G model to examine potential roadblocks to Agile on six different organizational dimensions.
    • Use survey results to identify and address the issues that are most likely to derail your Agile transformation.

    Impact and Result

    • Better understand where and how your organization needs to change to support your Agile transformation.
    • Focus your attention on your organization’s biggest roadblocks to Agile.
    • Improve your organization’s chances of a successful Agile transformation.

    Agile Readiness Assessment Survey Research & Tools

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

    1. Agile Readiness Assessment Deck – A guide to help your organization survey its Agile readiness.

    Read this deck to see how an Agile Readiness Assessment can help your organization understand its readiness for Agile transformation. The storyboard guides you through how to collect, consolidate, and examine survey responses and create an actionable list of improvements to make your organization more Agile ready.

    • Agile Readiness Assessment Storyboard

    2. Survey Templates (Excel or MS Forms, available in English and French) – Use these templates to create and distribute the survey broadly within your organization.

    The Agile Readiness Assessment template is available in either Excel or Microsoft Forms (both English and French versions are available). Download the Excel templates here or use the links in the above deck to access the online versions of the survey.

    • Agile Readiness Survey – English
    • Agile Readiness Survey – French

    3. Agile Readiness Assessment Consolidated Results Tool – Use this tool to consolidate and analyze survey responses.

    The Agile Readiness Assessment Consolidated Results Tool allows you to consolidate survey responses by team/role and produces your heatmap for analysis.

    • Agile Readiness Assessment Consolidated Results Tool
    [infographic]

    Further reading

    Agile Readiness Assessment

    Understand how ready your organization is for an Agile transformation.

    Info-Tech Research Group Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.

    Analyst Perspective

    Use the wisdom of crowds to understand how ready you are for Agile transformation.

    Photo of Alex Ciraco, Principal Research Director, Application Delivery and Management, Info-Tech Research Group

    Agile transformations can be difficult and complex to implement. That’s because they require fundamental changes in the way an organization thinks and behaves (and many organizations are not ready for these changes).

    Use Info-Tech’s Agile Readiness Assessment to broadly survey the organization’s readiness for Agile along six dimensions:

    • Culture
    • Learning
    • Automation
    • Integrated teams
    • Metrics
    • Governance

    The survey results will help you to examine and address those areas that are most likely to hinder your move to Agile.

    Alex Ciraco
    Principal Research Director, Application Delivery and Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Your organization wants to shorten delivery time and improve quality by adopting Agile practices.
    • Your organization has not yet used Agile successfully.
    • You know that Agile transformations are complex and difficult to implement.
    • You want to maximize your Agile transformation’s chances of success.

    Common Obstacles

    • Risks to your Agile transformation can come from a variety of sources, including:
      • Organizational culture
      • Learning practices
      • Use of automation
      • Ability to create integrated teams
      • Use of metrics
      • Governance practices

    Info-Tech’s Approach

    • Use Info-Tech’s Agile Readiness Assessment to broadly survey your organization’s readiness for Agile.
    • Examine the consolidated results of this survey to identify challenges that are most likely to hinder Agile success.
    • Discuss and address these challenges to increase your chances of success.

    Info-Tech Insight

    By first understanding the numerous challenges to Agile transformations and then broadly surveying your organization to identify and address the challenges that are at play, you are more likely to have a successful Agile transformation.

    Info-Tech’s methodology

    1. Distribute Survey 2. Consolidate Survey Results 3. Examine Results and Problem Solve
    Phase Steps

    1.1 Identify the teams/roles you will survey.

    1.2 Configure the survey to reflect your teams/roles.

    1.3 Distribute the Agile Readiness Assessment Survey broadly in the organization.

    2.1 Collect survey responses from all participants.

    2.2 Consolidate the results using the template provided.

    3.1 Examine the consolidated results (both OVERALL and DETAILED Heatmaps)

    3.2 Identify key challenge areas (those which are most “red”) and discuss these challenges with participants

    3.3 Brainstorm, select and refine potential solutions to these challenges

    Phase Outcomes An appreciation for the numerous challenges associated with Agile transformations Identified challenges to Agile within your organization (both team-specific and organization-wide challenges) An actionable list of solutions/actions to address your organization’s Agile challenges.

    Blueprint deliverables

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

    Agile Readiness Assessment Survey

    Survey the organization to understand your readiness for an Agile transformation on six dimensions.

    Sample of the Agile Readiness Assessment Survey blueprint deliverable.

    Agile Readiness Assessment Consolidated Results

    Examine your readiness for Agile and identify team-specific and organization-wide challenges.

    Sample of the Agile Readiness Assessment Consolidated Results blueprint deliverable.

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

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting

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

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

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

    A typical GI is between 6 to 8 calls over the course of 1 to 2 months.

    What does a typical GI on this topic look like?

      Phase 1: Distribute Survey

    • Call #1: Scope requirements, objectives, and your specific challenges (identify potential participants).
    • Call #2: First call with participants (introduce Phase 1 and assign survey for completion).
    • Call #3: Gather survey responses (prep for Phase 2 calls).
    • Phase 2: Consolidate Survey Results

    • Call #4: Consolidate all survey responses using the template.
    • Call #5: Conduct initial review of consolidated results (prep for Phase 3 calls).
    • Phase 3: Examine Results and Problem Solve

    • Call #6: Present consolidated results to participants and agree on most pressing challenges.
    • Call #7: Brainstorm, identify, and refine potential solutions to most pressing challenges.
    • Call #8: Conduct closing and communication call.

    Phase 1 — Phase 1 of 3, 'Distribute Survey'.

    Customize and distribute the survey

    Decide which teams/roles will participate in the survey.

    Decide which format and language(s) you will use for your Agile Readiness Assessment Survey.

    Configure the survey templates to reflect your selected teams/roles.

    Distribute the survey for participants to complete.

    • 1.1 The Agile Readiness Assessment Survey will help you to identify both team-specific and organization-wide challenges to your Agile transformation. It is best to distribute the survey broadly across the organization and include several teams and roles. Identify and make note of the teams/roles that will be participating in the survey.
    • 1.2 Select which format of survey you will be using (Excel or online), along with the language(s) you will use (links to the survey templates can be found in the table below). Then configure the survey templates to reflect your list of teams/roles from Step 1.1.
    • Format Language Download Survey Template
      Excel English Agile Readiness Assessment Excel Survey Template – EN and FR
      Excel French
      Online English Agile Readiness Assessment Online Survey Template – EN
      Online French Agile Readiness Assessment Online Survey Template – FR

    • 1.3 Distribute your Agile Readiness Assessment Survey broadly in the organization. Give all participants a deadline date for completion of the survey.

    Phase 2 — Phase 2 of 3, 'Consolidate Results'.

    Consolidate Survey Results

    Collect and consolidate all survey responses using the template provided.

    Review the OVERALL and DETAILED Heatmaps generated by the template.

    • 2.1 Collect the survey responses from all participants. All responses completed using the online form will be anonymous (for responses returned using the Excel form, assign each a unique identifier so that anonymity of responses is maintained).
    • 2.2 Consolidate the survey responses using the template below. Follow the instructions in the template to incorporate all survey responses.
    • Download the Agile Readiness Assessment Consolidated Results Tool

      Sample of the Agile Readiness Assessment Consolidated Results Tool, ranking maturity scores in 'Culture', 'Learning', 'Automation', 'Integrated Teams', 'Metrics', and 'Governance'.

    Phase 3 — Phase 3 of 3, 'Examine Results'.

    Examine Survey Results and Problem Solve

    Review the consolidated survey results as a team.

    Identify the challenges that need the most attention.

    Brainstorm potential solutions. Decide which are most promising and create a plan to implement them.

    • 3.1 Examine the consolidated results (both OVERALL and DETAILED Heatmaps) and look at both team-specific and organization-wide challenge areas.
    • 3.2 Identify which challenge areas need the most attention (typically those that are most red in the heatmap) and discuss these challenges with survey participants.
    • 3.3 As a team, brainstorm potential solutions to these challenges. Select from and refine the solutions that are most promising, then create a plan to implement them.

    3.1 Exercise: Collaborative Problem Solving — Phase 3 of 3, 'Examine Results'.

    60 Mins

    Input: Consolidated survey results

    Output: List of actions to address your most pressing challenges along with a timeline to implement them

    Materials: Agile Readiness Assessment Consolidated Results Tool, Whiteboard and markers

    Participants: Survey participants, Other interested parties

    This exercise will create a plan for addressing your most pressing Agile-related challenges.

    • As a team, agree on which survey challenges are most important to address (typically the most red in the heatmap).
    • Brainstorm potential solutions/actions to address these challenges.
    • Assign solutions/actions to individuals and set a timeline for completion.
    Challenge Proposed Solution Owner Timeline
    Enrichment
    lack of a CoE
    Establish a service-oriented Agile Center of Excellence (CoE) staffed with experienced Agile practitioners who can directly help new-to-Agile teams be successful. Bill W. 6 Months
    Tool Chain
    (lack of Agile tools)
    Select a standard Agile work management tool (e.g. Jira, Rally, ADO) that will be used by all Agile teams. Cindy K. 2 Months

    Related Info-Tech Research

    Sample of an Info-Tech blueprint. Modernize Your SDLC
    • Strategically adopt today’s SDLC good practices to streamline value delivery.
    Sample of an Info-Tech blueprint. Implement Agile Practices That Work
    • Guide your organization through its Agile transformation journey.
    Sample of an Info-Tech blueprint. Implement DevOps Practices That Work
    • Streamline business value delivery through the strategic adoption of DevOps practices.
    Sample of an Info-Tech blueprint. Mentoring for Agile Teams
    • Leverage an experience Agile Mentor to give your in-flight Agile project a helping hand.

    Research Contributors and Experts

    • Columbus Brown, Senior Principal – Practice Lead – Business Alignment, Daugherty Business Solutions
    • Saeed Khan, Founder, Transformation Labs
    • Brenda Peshak, Product Owner/Scrum Master/Program Manager, John Deere/Source Allies/Widget Industries LLC
    • Vincent Mirabelli, Principal, Global Project Synergy Group
    • Len O'Neill, Sr. Vice President and Chief Information Officer, The Suddath Companies
    • Shameka A. Jones, MPM, CSM, Lead Business Management Consultant, Mainspring Business Group, LLC
    • Ryland Leyton, Lead Business Analyst, Aptos Retail
    • Ashish Nangia, Lead Business System Analyst, Ashley Furniture Industries
    • Barbara Carkenord, CBAP, IIBA-AAC, PMI-PBA, PMP, SAFe POPM, President, Carkenord Consulting
    • Danelkis Serra, CBAP, Chapter Operations Manager, Regions & Chapters, IIBA (International Institute of Business Analysis)
    • Lorrie Staples-Ellis, CyberSecurity Integration Strategist, Wealth Management, Truist Bank
    • Ginger Sundberg, Independent Consultant
    • Kham Raven, Project Manager, Fraud Strategy & Execution, Truist Bank
    • Sarah Vollett, PMP, Business Analyst, Operations, College of Physicians and Surgeons of British Columbia
    • Nicole J Coyle, ICP-ACC, CEAC, SPC4, SASM, POPM, CSM, ECM, CCMP, CAPM, Team Agile Coach and Team Facilitator, HCQIS Foundational Components
    • Joe Glower, IT Director, Jet Support Services, Inc. (JSSI)
    • Harsh Daharwal, Senior Director, Application Delivery, J.R. Simplot
    • Hans Eckman, Principal Research Director, Info-Tech Research Group
    • Valence Howden, Principal Research Director, Info-Tech Research Group

    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.

    Build a Winning Business Process Automation Playbook

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    • Parent Category Name: Business Analysis
    • Parent Category Link: /business-analysis
    • Organizations often have many business processes that rely on manual, routine, and repetitive data collection and processing work. These processes need to be automated to meet strategic priorities.
    • Your stakeholders may have decided to invest in process automation solutions. They may be ready to begin the planning and delivery of their first automated processes.
    • However, if your processes are costly, slow, defective, and do not generate the value end users want, automation will only magnify these inefficiencies.

    Our Advice

    Critical Insight

    • Put the user front and center. Aim to better understand the end user and their operational environment. Use cases, data models, and quality factors allow you to visualize the human-computer interactions from an end-user perspective and initiate a discussion on how technology and process improvements can be better positioned to help your end users.
    • Build for the future. Automation sets the technology foundations and process governance and management building blocks in your organization. Expect that more automation will be done using earlier investments.
    • Manage automations as part of your application portfolio. Automations are add-ons to your application portfolio. Unmanaged automations, like applications, will sprawl and reduce in value over time. A collaborative rationalization practice pinpoints where automation is required and identifies which business inefficiencies should be automated next.

    Impact and Result

    • Clarify the problem being solved. Gain a grounded understanding of your stakeholders’ drivers for business process automation. Discuss current business operations and systems to identify automation candidates.
    • Optimate your processes. Apply good practices to first optimize (opti-) and then automate (-mate) key business processes. Take a user-centric perspective to understand how users interact with technology to complete their tasks.
    • Deliver minimum viable automations (MVAs). Maximize the learning of automation solutions and business operational changes through small, strategic automation use cases. This sets the foundations for a broader automation practice.

    Build a Winning Business Process Automation Playbook Research & Tools

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

    1. Business Process Automation Deck – A step-by-step document that walks you through how to optimize and automate your business processes.

    This blueprint helps you develop a repeatable approach to understand your process challenges and to optimize and automate strategic business processes.

    • Build a Winning Business Process Automation Playbook – Phases 1-3

    2. Business Process Automation Playbook – A repeatable set of practices to assess, optimize, and automate your business processes.

    This playbook template gives your teams a step-by-step guide to build a repeatable and standardized framework to optimize and automate your processes.

    • Business Process Automation Playbook

    3. Process Interview Template – A structured approach to interviewing stakeholders about their business processes.

    Info-Tech's Process Interview Template provides a number of sections that you can populate to help facilitate and document your stakeholder interviews.

    • Process Interview Template

    4. Process Mapping Guide – A guide to mapping business processes using BPMN standards.

    Info-Tech's Process Mapping Guide provides a thorough framework for process mapping, including the purpose and benefits, the best practices for facilitation, step-by-step process mapping instructions, and process mapping naming conventions.

    • Process Mapping Guide

    Infographic

    Workshop: Build a Winning Business Process Automation Playbook

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

    1 Identify Automation Opportunities

    The Purpose

    Understand the goals and visions of business process automation.

    Develop your guiding principles.

    Build a backlog of automation opportunities

    Key Benefits Achieved

    Business process automation vision, expectations, and objectives.

    High-priority automation opportunities identified to focus on.

    Activities

    1.1 State your objectives and metrics.

    1.2 Build your backlog.

    Outputs

    Business process automation vision and objectives

    Business process automation guiding principles

    Process automation opportunity backlog

    2 Define Your MVAs

    The Purpose

    Assess and optimize high-strategic-importance business process automation use cases from the end user’s perspective.

    Shortlist your automation solutions.

    Build and plan to deliver minimum viable automations (MVAs).

    Key Benefits Achieved

    Repeatable framework to assess and optimize your business process.

    Selection of the possible solutions that best fit the business process use case.

    Maximized learning with a low-risk minimum viable automation.

    Activities

    2.1 Optimize your processes.

    2.2 Automate your processes.

    2.3 Define and roadmap your MVAs.

    Outputs

    Assessed and optimized business processes with a repeatable framework

    Fit assessment of use cases to automation solutions

    MVA definition and roadmap

    3 Deliver Your MVAs

    The Purpose

    Modernize your SDLC to support business process automation delivery.

    Key Benefits Achieved

    An SDLC that best supports the nuances and complexities of business process automation delivery.

    Activities

    3.1 Deliver your MVAs

    Outputs

    Refined and enhanced SDLC

    It wasn't me

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    • Parent Category Name: Security and Risk
    • Parent Category Link: /security-and-risk

    You heard the message before, and yet....  and yet it does not sink in.

    In july 2019 already, according to retruster:

    • The average financial cost of a data breach is $3.86m (IBM)
    • Phishing accounts for 90% of data breaches
    • 15% of people successfully phished will be targeted at least one more time within the year
    • BEC scams accounted for over $12 billion in losses (FBI)
    • Phishing attempts have grown 65% in the last year
    • Around 1.5m new phishing sites are created each month (Webroot)
    • 76% of businesses reported being a victim of a phishing attack in the last year
    • 30% of phishing messages get opened by targeted users (Verizon)

    This is ... this means we, as risk professionals may be delivering our messsage the wrong way. So, I really enjoyed my colleague Nick Felix (who got it from Alison Francis) sending me the URL of this video: Enjoy, but mostly: learn, because we want our children to enjoy the fruits of our work.

    Register to read more …

    Prepare Your Organization to Successfully Embrace the “New Normal”

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    • member rating overall impact (scale of 10): 9.3/10 Overall Impact
    • member rating average dollars saved: $61,749 Average $ Saved
    • member rating average days saved: 2 Average Days Saved
    • Parent Category Name: DR and Business Continuity
    • Parent Category Link: /business-continuity
    • The COVID-19 pandemic is creating significant challenges across every sector, but even the deepest crisis will eventually pass. However, many of the changes it has brought to how organizations function are here to stay.
    • As an IT leader, it can be challenging to envision what this future state will look like and how to position IT as a trusted partner to the business to help steer the ship as the crisis abates.

    Our Advice

    Critical Insight

    • Organizations need to cast their gaze into the “New Normal” and determine an appropriate strategy to stabilize their operations, mitigate ongoing challenges, and seize new opportunities that will be presented in a post-COVID-19 world.
    • IT needs to understand the key trends and permanent changes that will exist following the crisis and develop a proactive roadmap for rapidly adapting their technology stack, processes, and resourcing to adjust to the new normal.

    Impact and Result

    • Info-Tech recommends a three-step approach for adapting to the new normal: begin by surveying crucial changes that will occur as a result of the COVID-19 pandemic, assess their relevance to your organization’s unique situation, and create an initiatives roadmap to support the new normal.
    • This mini-blueprint will examine five key themes: changing paradigms for remote work, new product delivery models, more self-service options for customers, greater decentralization and agility for organizational decision making, and a renewed emphasis on security architecture.

    Prepare Your Organization to Successfully Embrace the “New Normal” Research & Tools

    Read the Research

    Understand the five key trends that will persist after the pandemic has passed and create a roadmap of initiatives to help your organization adapt to the "New Normal."

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

    • Prepare Your Organization to Successfully Embrace the “New Normal” Storyboard
    [infographic]

    Take Control of Infrastructure and Operations Metrics

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    • member rating overall impact (scale of 10): 8.5/10 Overall Impact
    • member rating average dollars saved: $7,199 Average $ Saved
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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Measuring the business value provided by IT is very challenging.
    • You have a number of metrics, but they may not be truly meaningful, contextual, or actionable.
    • You know you need more than a single metric to tell the whole story. You also suspect that metrics from different systems combined will tell an even fuller story.
    • You are being asked to provide information from different levels of management, for different audiences, conveying different information.

    Our Advice

    Critical Insight

    • Many organizations collect metrics to validate they are keeping the lights on. But the Infrastructure and Operations managers who are benefitting the most are taking steps to ensure they are getting the right metrics to help them make decisions, manage costs, and plan for change.
    • Complaints about metrics are often rooted in managers wading through too many individual metrics, wrong metrics, or data that they simply can’t trust.
    • Info-Tech surveyed and interviewed a number of Infrastructure managers, CIOs, and IT leaders to understand how they are leveraging metrics. Successful organizations are using metrics for everything from capacity planning to solving customer service issues to troubleshooting system failures.

    Impact and Result

    • Manage metrics so they don’t become time wasters and instead provide real value.
    • Identify the types of metrics you need to focus on.
    • Build a metrics process to ensure you are collecting the right metrics and getting data you can use to save time and make better decisions.

    Take Control of Infrastructure and Operations Metrics Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement a metrics program in your Infrastructure and Operations practice, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

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

    1. Gap analysis

    This phase will help you identify challenges that you want to avoid by implementing a metrics program, discover the main IT goals, and determine your core metrics.

    • Take Control of Infrastructure and Operations Metrics – Phase 1: Gap Analysis
    • Infra & Ops Metrics Executive Presentation

    2. Build strategy

    This phase will help you make an actionable plan to implement your metrics program, define roles and responsibilities, and communicate your metrics project across your organization and with the business division.

    • Take Control of Infrastructure and Operations Metrics – Phase 2: Build Strategy
    • Infra & Ops Metrics Definition Template
    • Infra & Ops Metrics Tracking and Reporting Tool
    • Infra & Ops Metrics Program Roles & Responsibilities Guide
    • Weekly Metrics Review With Your Staff
    • Quarterly Metrics Review With the CIO
    [infographic]

    Advisory Call Outline: Software Selection Engagement

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    • Parent Category Name: Selection & Implementation
    • Parent Category Link: /selection-and-implementation
    • Selection takes forever. Traditional software selection drags on for years, sometimes in perpetuity.
    • IT is viewed as a bottleneck and the business has taken control of software selection.
    • “Gut feel” decisions rule the day. Intuition, not hard data, guides selection, leading to poor outcomes.
    • Negotiations are a losing battle. Money is left on the table by inexperienced negotiators.
    • Overall: Poor selection processes lead to wasted time, wasted effort, and applications that continually disappoint.

    Our Advice

    Critical Insight

    • Adopt a formal methodology to accelerate and improve software selection results.
    • Improve business satisfaction by including the right stakeholders and delivering new applications on a truly timely basis.
    • Kill the “sacred cow” requirements that only exist because “it’s how we’ve always done it.”
    • Forget about “RFP” overload and hone in on the features that matter to your organization.
    • Skip the guesswork and validate decisions with real data.
    • Take control of vendor “dog and pony shows” with single-day, high-value, low-effort, rapid-fire investigative interviews.
    • Master vendor negotiations and never leave money on the table.

    Impact and Result

    • Improving software selection is a critical project that will deliver huge value.
    • Hit a home run with your business stakeholders: use a data-driven approach to select the right application vendor for their needs – fast.
    • Shatter stakeholder expectations with truly rapid application selections.
    • Boost collaboration and crush the broken telephone with concise and effective stakeholder meetings.
    • Lock in hard savings and do not pay list price by using data-driven tactics.

    Advisory Call Outline: Software Selection Engagement Research & Tools

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

    1. Advisory Call Outline

    Info-Tech's expert analyst guidance will help you save money, align stakeholders, and speed up the application selection process.

    • Advisory Call Outline: Software Selection Engagement Deck

    2. Workshop Overview

    Info-Tech's workshop will help you implement a repeatable, data-driven approach that accelerates software selection efforts.

    • Rapid Software Selection Workshop Overview
    [infographic]

    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

    2025 is the DORA year for any company in contact with the financial services industry in Europe.

    DORA became enforcible on january 17, 2025. The changes that you were or are ready for this date are slim.

    But you are not alone. According to the NBB, the Belgian oversight authority for financial institutions, in an email sent in early december 2024, many companies were overly optimistic in their DORA compliance estimates.

    The NBB indicated they will not immediately impose sanction, but they will become gradually more strict in their audits.  I've been with DORA since its inception in 2020.

    TY DORA advisory services

    How can Tymans Group help you?

    It's very simple. You need someone who has hard experience.  Anyone can create a spreadsheet with to-do lists and talk about how resilience laws like DORA and NIS2 need to be implemented. It's not the talk that counts, it's the walk. 

    Ask the consulting firm: did you actually bring back a company from disaster? Did you actually bring services back to life after they failed completely? Did you lead teams to ensure that our customers could get what they needed, when they needed it? In other words, did you advise your clients on what they needed to do, before bad things happened?

    Do you have experience based on real-life issues, to ensure my teams can learn from this and prevent issues from crippling my company? Can you teach them how to address issues pro-actively? Can you teach my business based on true return on investment?

     If they can, you have a great partner (ask them for proof.) If they cannot prove it, ask me. Resilience is in my blood. 

    • 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 relations tell us

    • Citigroup Manager

      As a technical consultant, Gert is an All-Star performer...  He has got many wins under his belt... His willingness to work hard, knowledge of regional systems (especially Tokyo) and Microsoft Office is well respected within the Group 

    • Sandra

      Tx for all the efforts done! Great Job! And good luck for the ones amongst you that still need to work tomorrow Grtz Sandra VB
    • Patrick A.

      Hi Gert, I'm busy documenting .... Thanks for your real friendly and careful, yet effective support :-) Patrick A.
    • Lucie VH

      During my vacation, Gert took over the management of a number of ongoing problems. Even before I actually left for my trip, he took action and proposed a number of improvements. Gert coordinated between the different stakeholders and PTA's and resolved a number of acute issues. And he did this in a very pleasant, yet effective way.
    • Dawn

      No worries. It only freaked me out for a few minutes, then I saw that the system had blocked them from doing any real damage. Thanks for the cleanup and extra measures, though! As always, you rock!
    • After a successful DRP

      Thanks for all the efforts done ans special Tx Gert for Coordinating this again!
    • A CIO

      Yet again Gert, Thanks for handling this in such a top way!
    • A Sales Manager

      Awesome Gert, I will let the team know we can close this issue!
    • Investment bank manager

      Flexibility, Adaptability, problem Solving are Gert's strong points, Exceptionally beneficial in "crisis." I can attest that Gert will always see a problem through. if he needs to hand it off, it will aways have good handoff notes. His business knowledge is good and will part of the next project.

    • Wall Street Performance Review

      As with the classes for SFC, Gert organised formal classes for all of the Research IT teams.... I would class this job as well done, given everything that was going on with Rsearch IT. 

    • Stuart B on Gert Taeymans

      Excellent technical resource. Quick help on issues and provide explanations to regional teams. Often covers for us in the evenings or when things get particularly busy.

    • Asia support to roll out global system

      Gert time in Japan was a great success. He really helped the IT group through a really difficult tume during the roll out of {the global research publishing system} and had to cover all the bases that had not been properly coverd by the previous person in Japan. Gert's visit also coincided with Stuart's joining into the Asia IT Research group. Gert was very flexible  in the hours that he worked and the lenght of time he was out in Tokyo (in the end more than 4 weeks.)

      The feedback from both the users and the IT group was VERY positive on Gertt's contribution. He was more than capabable to put across technical points to the IT team, in their language.

    • IT Director

      Gert is a knowledgeable individual who takes on additional responsibility... rapidly addressng end-user issues and developing custom solutions when needed.

    Benefits of working with Tymans Group

    • We focus on actual deliverables

      TY delivers on the IT resilience what and how. Get actionable IT, management, governance, and productivity research, insights, blueprints with templates, easy-to-use tools, and clear instructions to help you execute effectively and become IT resilient.

    • Get insights from top IT professionals

      Our TY network base constantly informs us about our IT resilience research and validates it through client experiences. TY adds to that by applying this research to real-world situations in Belgium, the Netherlands, Germany, Europe and the US.

    • Data-driven insights

      It is tempting to use your gut instinct. Don't. Everything TY does, is data-driven. From our research to our interactions with you, we use an analytical approach to help you move forward with your key IT resilience projects.

    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.

    • I'm a small business owner, can I do all this by myself?

      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.

    • Do you provide refunds?

      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. 

    • I bought the wrong item

      If you bought the wrong item, please contact me and we'll be happy to provide an alternative item.

    • I want more assistance

      Yes, more assistance is available.  Tymans Group can provide you with per-guide assistance or work with you on an overall strategy.

      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

    Requirements Gathering

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    • Parent Category Name: Project Portfolio Management and Projects
    • Parent Category Link: /ppm-and-projects

    The challenge

    • The number reason projects fail because from the outset, what people wanted was not clear.
    • Without proper due diligence, IT will deliver projects that fail to meet business expectations and fail to provide business value.
    • If you failed to accurately capture the needs and desires, your projects are set up for costly rework. That will hurt your business's financial performance and result in damage to your relationship with your business partners.
    • Even with requirements gathering processes in place, your business analysts may not have the required competencies to execute them.

    Our advice

    Insight

    • You need to gather requirements with your organizations' end-state in mind. That requires IT and business alignment.
    • You would be good to create a set of standard operating procedures around requirements gathering. But many companies fail to do so.
    • Bring standardization and conformity to your requirements gathering processes via a centralized center of excellence. That brings cohesion and uniformity to your practice.
    • It is critical that your business analysts have the necessary competencies to execute your processes and that they ask the right questions.

    Impact and results 

    • Better requirements analysis will result in shorter cycle timed and reduced project rework and overhead.
    • You will enjoy better relationships with your business partners, greater stakeholder satisfaction, and gradually a better standing of IT.
    • Most importantly, the applications and systems you deliver will contain all must-haves and some nice-to-haves. Your minimal viable deliverable will start to create business value immediately.

    The roadmap

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

    Get started.

    Read our executive brief to understand why you should invest in optimizing requirements gathering in your company. We show you how we can support you.

    Build the target state

    Fully understand the target needs of the requirements gathering process.

    • Build a Strong Approach to Business Requirements Gathering – Phase 1: Build the Target State for the Requirements Gathering Process (ppt)
    • Requirements Gathering SOP and BA Playbook (doc)
    • Requirements Gathering Maturity Assessment (xls)
    • Project Level Selection Tool (xls)
    • Business Requirements Analyst (doc)
    • Requirements Gathering Communication Tracking Template (xls)

    Develop best practices to gather business requirements

    • Build a Strong Approach to Business Requirements Gathering – Phase 2: Define the Elicitation Process (ppt)
    • Business Requirements Document Template (xls)
    • Scrum Documentation Template (doc)

    Analyze and validate requirements

    Standardize your frameworks for analysis and validation of the business requirements

    • Build a Strong Approach to Business Requirements Gathering – Phase 3: Analyze and Validate Requirements (ppt)
    • Requirements Gathering Documentation Tool (xls)
    • Requirements Gathering Testing Checklist (doc)

    Build your requirements gathering governance action plan

    Formalize governance.

    • Build a Strong Approach to Business Requirements Gathering – Phase 4: Create a Requirements Governance Action Plan (ppt)
    • Requirements Traceability Matrix (xls)

     

     

    Master Contract Review and Negotiation for Software Agreements

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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

    Optimize the Current Testing Process for Enterprise Mobile Applications

    • Buy Link or Shortcode: {j2store}404|cart{/j2store}
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    • member rating average days saved: N/A
    • 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

    Endpoint Management Selection Guide

    • Buy Link or Shortcode: {j2store}65|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: End-User Computing Applications
    • Parent Category Link: /end-user-computing-applications

    Endpoint management solutions are becoming an essential solution: Deploying the right devices and applications to the right user and the need for zero-touch provisioning are indispensable parts of a holistic strategy for improving customer experience. However, selecting the right-sized platform that aligns with your requirements is a big challenge.

    Following improvements in end-user computation strategies, selection of the right endpoint management solution is a crucial next step in delivering a concrete business value.

    Our Advice

    Critical Insight

    Investigate vendors’ roadmaps to figure out which of the candidate platforms can fulfill your long-term requirements, without any unnecessary investment in features that are not currently useful for you. Make sure you don’t purchase capabilities that you will never use.

    Impact and Result

    • Determine what you require from an endpoint management solution.
    • Review the market space and product offerings, and compare capabilities of key players.
    • Create a use case and use top-level requirements to determine use cases and shortlist vendors.
    • Conduct a formal process for interviewing vendors using Info-Tech’s templates to select the best platform for your requirements.

    Endpoint Management Selection Guide Research & Tools

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

    1. Endpoint Management Selection Guide Storyboard – A structured guide to walk you through the endpoint management market.

    This storyboard will help you understand endpoint management solution core capabilities and prepare you to select an appropriate tool.

    • Endpoint Management Selection Guide Storyboard

    2. UEM Requirements Workbook – A template to help you build your first draft of requirements for UEM selection.

    Use this spreadsheet to brainstorm use cases and features to satisfy your requirements. This document will be help you score solutions and narrow down the field to a list of candidates who can meet your requirements.

    • UEM Requirements Workbook
    [infographic]

    Further reading

    Endpoint Management Selection Guide

    Streamline your organizational approach to selecting a right-sized endpoint management platform.

    Endpoint Management Selection Guide

    Streamline your organizational approach toward the selection of a right-sized endpoint management platform.

    EXECUTIVE BRIEF

    Analyst Perspective

    Revolutionize your endpoint management with a proper tool selection approach

    The endpoint management market has an ever-expanding and highly competitive landscape. The market has undergone tremendous evolution in past years, from device management to application deployments and security management. The COVID-19 pandemic forced organizations to service employees and end users remotely while making sure corporate data is safe and user satisfaction doesn't get negatively affected. In the meantime, vendors were forced to leverage technology enhancements to satisfy such requirements.

    That being said, endpoint management solutions have become more complex, with many options to manage operating systems and run applications for relevant user groups. With the work-from-anywhere model, customer support is even more important than before, as a remote workforce may face more issues than before, or enterprises may want to ensure more compliance with policies.

    Moreover, the market has become more complex, with lots of added capabilities. Some features may not be beneficial to corporations, and with a poor market validation, businesses may end up paying for some capabilities that are not useful.

    In this blueprint, we help you quickly define your requirements for endpoint management and narrow down a list to find the solutions that fulfill your use cases.

    An image of Mahmoud Ramin, PhD

    Mahmoud Ramin, PhD
    Senior Research Analyst, Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Endpoint management solutions are becoming increasingly essential – deploying the right devices and applications to the right users and zero-touch provisioning are indispensable parts of a holistic strategy for improving customers' experience. However, selecting the right-sized platform that aligns with your requirements is a big challenge.

    Following improvements in end-user computation strategies, selection of the right endpoint management solution is a crucial next step in delivering concrete business value.

    Common Obstacles

    Despite the importance of selecting the right endpoint management platform, many organizations struggle to define an approach to picking the most appropriate vendor and rolling out the solution in an effective and cost-efficient manner. There are many options available, which can cause business and IT leaders to feel lost.

    The endpoint management market is evolving quickly, making the selection process tedious. On top of that, IT has a hard time defining their needs and aligning solution features with their requirements.

    Info-Tech's Approach

    Determine what you require from an endpoint management solution.

    Review the market space and product offerings, and compare the capabilities of key players.

    Create a use case – use top-level requirements to determine use cases and short-list vendors.

    Conduct a formal process for interviewing vendors, using Info-Tech's templates to select the best platform for your requirements.

    Info-Tech Insight

    Investigate vendors' roadmaps to figure out which of the candidate platforms can fulfill your long-term requirements without any unnecessary investment in features that are not currently useful for you. Make sure you don't purchase capabilities that you will never use.

    What are endpoint management platforms?

    Our definition: Endpoint management solutions are platforms that enable IT with appropriate provisioning, security, monitoring, and updating endpoints to ensure that they are in good health. Typical examples of endpoints are laptops, computers, wearable devices, tablets, smart phones, servers, and the Internet of Things (IoT).

    First, understand differences between mobile management solutions

    • Endpoint management solutions monitor and control the status of endpoints. They help IT manage and control their environment and provide top-notch customer service.
    • These solutions ensure a seamless and efficient problem management, software updates and remediations in a secure environment.
    • Endpoint management solutions have evolved very quickly to satisfy IT and user needs:
    • Mobile Device Management (MDM) helps with controlling features of a device.
    • Enterprise Mobile Management (EMM) controls everything in a device.
    • Unified Endpoint Management (UEM) manages all endpoints.

    Endpoint management includes:

    • Device management
    • Device configuration
    • Device monitoring
    • Device security

    Info-Tech Insight

    As endpoint management encompasses a broad range of solution categories including MDM, EMM, and UEM, look for your real requirements. Don't pay for something that you won't end up using.

    As UEM covers all of MDM and EMM capabilities, we overview market trends of UEM in this blueprint to give you an overall view of market in this space.

    Your challenge: Endpoint management has evolved significantly over the past few years, which makes software selection overwhelming

    An mage showing endpoint management visualzed as positions on an iceberg. at the top is UEM, at the midpoint above the waterline is Enterprise Mobile Management, and below the water is Mobile Device Management.

    Additional challenges occur in securing endpoints

    A rise in the number of attacks on cloud services creates a need to leverage endpoint management solutions

    MarketsandMarkets predicted that global cloud infrastructure services would increase from US$73 billion in 2019 to US$166.6 billion in 2024 (2019).

    A study by the Ponemon Institute showed that 68% of respondents believe that security attacks increased over the past 12 months (2020).

    The study reveals that over half of IT security professionals who participated in the survey believe that organizations are not very efficient in securing their endpoints, mainly because they're not efficient in detecting attacks.

    IT professionals would like to link endpoint management and security platforms to unify visibility and control, to determine potential risks to endpoints, and to manage them in a single solution.

    Businesses will continue to be compromised by the vulnerabilities of cloud services, which pose a challenge to organizations trying to maintain control of their data.

    Trends in endpoint management have been undergoing a tremendous change

    In 2020, about 5.2 million users subscribed to mobile services, and smartphones accounted for 65% of connections. This will increase to 80% by 2025.
    Source: Fortune Business Insights, 2021

    Info-Tech's methodology for selecting a right-sized endpoint management platform

    1. Understand Core Features and Build Your Use Case

    2. Discover the Endpoint Management Market Space and Select the Right Vendor

    Phase Steps

    1. Define endpoint management platforms
    2. Explore endpoint management trends
    3. Classify table stakes & differentiating capabilities
    4. Streamline the requirements elicitation process for a new endpoint management platform
    1. Discover key players across the vendor landscape
    2. Engage the shortlist and select finalists
    3. Prepare for implementation

    Phase Outcomes

    1. Consensus on scope of endpoint management and key endpoint management platform capabilities
    2. Top-level use cases and requirements
    1. Overview of shortlisted vendors
    2. Prioritized list of UEM features

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2

    Call #1: Understand what an endpoint management platform is and learn how it evolved. Discuss core capabilities and key trends.
    Call #2: Build a use case and define features to fulfill the use case.

    Call #3: Define your core endpoint management platform requirements.
    Call #4: Evaluate the endpoint management platform vendor landscape and shortlist viable options.
    Review implementation considerations.

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

    The endpoint management purchase process should be broken into segments:

    1. Endpoint management vendor shortlisting with this buyer's guide
    2. Structured approach to selection
    3. Contract review

    Info-Tech's approach

    The Info-Tech difference:
    Analyze needs

    Evaluate solutions

    Determine where you need to improve the tools and processes used to support the company.

    Determine the best fit for your needs by scoring against features.

    Assess existing solution

    Features

    Determine if your solution can be upgraded or easily updated to meet your needs.

    Determine which features will be key to your success

    Create a business case for change

    Use Cases

    A two-part business case will focus on a need to change and use cases and requirements to bring stakeholders onboard.

    Create use cases to ensure your needs are met as you evaluate features

    Improve existing

    High-Level Requirements

    Work with Info-Tech's analysts to determine next steps to improve your process and make better use of the features you have available.

    Use the high-level requirements to determine use cases and shortlist vendors

    Complementary research:

    Create a quick business case and requirements document to align stakeholders to your vision with Info-Tech's Rapid Application Selection Framework.
    See what your peers are saying about these vendors at SoftwareReviews.com.

    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

    Phase 1

    Understand core features and build your business case

    Phase 1

    Phase 2

    Define endpoint management platforms

    Explore endpoint management trends

    Classify table stakes & differentiating capabilities

    Streamline the requirements elicitation process for a new endpoint management platform

    Discover key players across the vendor landscape

    Engage the shortlist and select finalist

    Prepare for implementation

    This phase will walk you through the following activity:

    Define use cases and core features for meeting business and technical goals

    This phase involves the following participants:

    • CIO
    • IT manager
    • Infrastructure & Applications directors
    Mobile Device Management

    Enterprise Mobile Management

    MDM applies security over corporate-owned devices.

    What is MDM and what can you do with it?

    1. MDM helps manage and control corporate owned devices.
    2. You can enforce company policies, track, monitor, and lock device remotely by an MDM.
    3. MDM helps with remote wiping of the device when it is lost or stolen.
    4. You can avoid unsecure Wi-Fi connections via MDM.

    EMM solutions solve the restrictions arose with BYOD (Bring Your Own Device) and COPE (Corporate Owned, Personally Enabled) provisioning models.

    • IT needs to secure corporate-owned data without compromising personal and private data. MDM cannot fulfill this requirement. This led to the development of EMM solutions.
    • EMM tools allow you to manage multiple device platforms through MDM protocols. These tools enforce security settings, allow you to push apps to managed devices, and monitor patch compliance through reporting.

    MDM solutions function at the level of corporate devices. Something else was needed to enable personal device management.

    Major components of EMM solutions

    Mobile Application Management (MAM)

    Allows organizations to control individual applications and their associated data. It restricts malicious apps and enables in-depth application management, configuration, and removal.

    Containerization

    Enables separation of work-related data from private data. It provides encrypted containers on personal devices to separate the data, providing security on personal devices while maintaining users' personal data.

    Mobile Content Management (MCM)

    Helps remote distribution, control, management, and access to corporate data.

    Mobile Security Management (MSM)

    Provides application and data security on devices. It enables application analysis and auditing. IT can use MSM to provide strong passwords to applications, restrict unwanted applications, and protect devices from unsecure websites by blacklisting them.

    Mobile Expense Management (MEM)

    Enables mobile data communication expenses auditing. It can also set data limits and restrict network connections on devices.

    Identity Management

    Sets role-based access to corporate data. It also controls how different roles can use data, improving application and data security. Multifactor authentication can be enforced through the identity management featured of an EMM solution.

    Unified endpoint management: Control all endpoints in a single pane of glass

    IT admins used to provide customer service such as installation, upgrades, patches, and account administration via desktop support. IT support is not on physical assistance over end users' desktops anymore.

    The rise of BYOD enhanced the need to be able to control sensitive data outside corporate network connection on all endpoints, which was beyond the capability of MDM and EMM solutions.

    • It's now almost impossible for IT to be everywhere to support customers.
    • This created a need to conduct tasks simultaneously from one single place.
    • UEM enables IT to run, manage, and control endpoints from one place, while ensuring that device health and security remain uncompromised.
    • UEM combines features of MDM and EMM while extending EMM's capabilities to all endpoints, including computers, laptops, tablets, phones, printers, wearables, and IoT.

    Info-Tech Insight

    Organizations once needed to worry about company connectivity assets such as computers and laptops. To manage them, traditional client management tools like Microsoft Configuration Manager would be enough.

    With the increase in the work-from-anywhere model, it is very hard to control, manage, and monitor devices that are not connected to a VPN. UEM solutions enable IT to tackle this challenge and have full visibility into and management of any device.

    UEM platforms help with saving costs and increasing efficiency

    UEM helps corporates save on their investments as it consolidates use-case management in a single console. Businesses don't need to invest in different device and application management solutions.

    From the employee perspective, UEM enables them to work on their own devices while enforcing security on their personal data.

    • Security and privacy are very important criteria for organizations. With the rapid growth of the work-from-anywhere model, corporate security is a huge concern for companies.
    • Working from home has forced companies to invest a lot in data security, which has led to high UEM demand. UEM solutions streamline security management by consolidating device management in a single platform.
    • With the fourth-generation industrial revolution, we're experiencing a significant rise in the use of IoT devices. UEM solutions are very critical for managing, configuring, and securing these devices.
    • There will be a huge increase in cyber threats due to automation, IoT, and cloud services. The pandemic has sped up the adoption of such services, forcing businesses to rethink their enterprise mobility strategies. They are now more cautious about security risks and remediations. Businesses need UEM to simplify device management on multiple endpoints.
    • With UEM, IT environment management gets more granular, while giving IT better visibility on devices and applications.

    UEM streamlines mundane admin tasks and simplifies user issues.

    Even with a COPE or COBO provisioning model, without any IT intervention, users can decide on when to install relevant updates. It also may lead to shadow IT.

    Endpoint management, and UEM more specifically, enables IT to enforce administration over user devices, whether they are corporate or personally owned. This is enabled without interfering with private/personal data.

    Where it's going: The future state of UEM

    Despite the fast evolution of the UEM market, many organizations do not move as fast as technological capabilities. Although over half of all organizations have at least one UEM solution, they may not have a good strategy or policies to maximize the value of technology (Tech Orchard, 2022). As opposed to such organizations, there are others that use UEM to transform their endpoint management strategy and move service management to the next level. That integration between endpoint management and service management is a developing trend (Ivanti, 2021).

    • SaaS tools like Office 365 are built to be used on multiple devices, including multiple computers. Further, the pandemic saw 47% of organizations significantly increase their use of BYOD (Cybersecurity Insiders, 2021).
    • Over 2022, 78% of people worked remotely for at least some amount of time during the week (Tech Orchard, 2022).
    • 84% of organizations believe that cybersecurity threat alarms are becoming very overwhelming, and almost half of companies believe that the best way to tackle this is through consolidating platforms so that everything will be visible and manageable through a single pane of glass (Cybersecurity Insiders, 2022).
    • The UEM market was worth $3.39 billion in 2020. It is expected to reach $53.65 billion by 2030, with an annual growth rate of 31.7% (Datamation, 2022). This demonstrates how dependent IT is becoming on endpoint management solutions.

    An image of a donut chart showing the current state of UEM Strategy.

    Only 27% of organizations have "fully deployed" UEM "with easy management across all endpoints"
    Source: IT Pro Today, 2018.

    Endpoint Management Key Trends

    • Commoditization of endpoint management features. Although their focus is the same, some UEM solutions have unique features.
    • New endpoint management paradigms have emerged. Endpoint management has evolved from client management tools (CMT) and MDM into UEM, also known as "modern management" (Ivanti, 2022).
    • One pane of glass for the entire end-user experience. Endpoint management vendors are integrating their solution into their ITSM, ITOM, digital workspace, and security products.
    • AI-powered insights. UEM tools collect data on endpoints and user behavior. Vendors are using their data to differentiate themselves: Products offer threat reports, automated compliance workflows, and user experience insights. The UEM market is ultimately working toward autonomous endpoint management (Microsoft, 2022).
    • Web apps and cloud storage are the new normal. Less data is stored locally. Fewer apps need to be patched on the device. Apps can be accessed on different devices more easily. However, data can more easily be accessed on BYOD and on new operating systems like Chrome OS.
    • Lighter device provisioning tools. Instead of managing thick images, UEM tools use lighter provisioning packages. Once set up, Autopilot and UEM device enrollment should take less time to manage than thick images.
    • UEM controls built around SaaS. Web apps and the cloud allow access from any device, even unmanaged BYOD. UEM tools allow IT to apply the right level of control for the situation – mobile application management, mobile content management, or mobile device management.
    • Work-from-anywhere and 5G result in more devices outside of your firewalls. Cloud-based management tools are not limited by your VPN connection and can scale up more easily than traditional, on-prem tools.

    Understand endpoint management table stakes features

    Determine high-level use cases to help you narrow down to specific features

    Support the organization's operating systems:
    Many UEM vendors support the most dominant operating systems, Windows and Mac; however, they are usually stronger in one particular OS than the other. For instance, Intune supports both Windows and Mac, although there are some drawbacks with MacOS management by Intune. Conversely, Jamf is mainly for MacOS and iOS management. Enterprises look to satisfy their end users' needs. The more UEM vendors support different systems, the more likely enterprises will pick them. Although, as mentioned, in some instances, enterprises may need to select more than one option, depending on their requirements.

    Support BYOD and remote environments:
    With the impact of the pandemic on work model, 60-70% of workforce would like to have more flexibility for working remotely (Ivanti, 2022). BYOD is becoming the default, and SaaS tools like Office 365 are built to be used on multiple devices, including multiple computers. As BYOD can boost productivity (Samsung Insights, 2016), you may be interested in how your prospective UEM solution will enable this capability with remote wipe (corporate wipe capability vs. wiping the whole device), data and device tracking, and user activity auditing.

    Understand endpoint management table stakes features

    Determine high-level use cases to help you narrow down to specific features

    Integration with the enterprise's IT products:
    To get everything in a single platform and to generate better metrics and dashboards, vendors provide integrations with ticketing and monitoring solutions. Many large vendors have strong integrations with multiple ITSM and ITAM platforms to streamline incident management, request management, asset management, and patch management.

    Support security and compliance policies:
    With the significant boost in work-from-anywhere, companies would like to enable endpoint security more than ever. This includes device threat detection, malware detection, anti-phishing, and more. All UEMs provide these, although the big difference between them is how well they enable security and compliance, and how flexible they are when it comes to giving conditional access to certain data.

    Provide a fully automated vs manual deployment:
    Employees want to get their devices faster, IT wants to deploy devices faster, and businesses want to enable employees faster to get them onboard sooner. UEMs have the capability to provide automated and manual deployment. However, the choice of solution depends on enterprise's infrastructure and policies. Full automation of deployment is very applicable for corporate devices, while it may not be a good option for personally owned devices. Define your user groups and provisioning models, and make sure your candidate vendors satisfy requirements.

    Plan a proper UEM selection according to your requirements

    1. Identify IT governance, policy, and process maturity
      Tools cannot compensate for your bad processes. You should improve deploying and provisioning processes before rolling out a UEM. Automation of a bad process only wraps the process in a nicer package – it does not fix the problem.
      Refer to InfoTech's Modernize and Transform Your End-User Computing Strategy for more information on improving endpoint management procedures.
    2. Consider supported operating systems, cloud services, and network infrastructure in your organization
      Most UEMs support all dominant operating systems, but some solutions have stronger capability for managing a certain OS over the other.
    3. Define enterprise security requirements
      Investigate security levels, policies, and requirements to align with the security features you're expecting in a UEM.
    4. Selection and implementation of a UEM depends on use case. Select a vendor that supports your use cases
      Identify use cases specific to your industry.
      For example, UEM use cases in Healthcare:
      • Secure EMR
      • Enforce HIPAA compliance
      • Secure communications
      • Enable shared device deployment

    Activity: Define use cases and core features for meeting business and technical goals

    1-2 hours

    1. Brainstorm with your colleagues to discuss your challenges with endpoint management.
    2. Identify how these challenges are impacting your ability to meet your goals for managing and controlling endpoints.
    3. Define high-level goals you wish to achieve in the first year and in the longer term.
    4. Identify the use cases that will support your overall goals.
    5. Document use cases in the UEM Requirements Workbook.

    Input

    • List of challenges and goals

    Output

    • Use cases to be used for determining requirements

    Materials

    • Whiteboard/flip charts
    • Laptop to record output

    Participants

    • CIO
    • IT manager
    • Infrastructure & Applications directors

    Download the UEM Requirements Workbook

    Phase 2

    Discover the endpoint management market space and select the right vendor

    Phase 1

    Phase 2

    Define endpoint management platforms

    Explore endpoint management trends

    Classify table stakes & differentiating capabilities

    Streamline the requirements elicitation process for a new endpoint management platform

    Discover key players across the vendor landscape

    Engage the shortlist and select finalist

    Prepare for implementation

    This phase will walk you through the following activity:
    Define top-level features for meeting business and technical goals
    This phase involves the following participants:

    • CIO
    • IT manager
    • Infrastructure & Applications directors
    • Project managers

    Elicit and prioritize granular requirements for your endpoint management platform

    Understanding business needs through requirements gathering is the key to defining everything about what is
    being purchased. However, it is an area where people often make critical mistakes.

    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 confusing and inconsistent detail in the requirements.
    • Drill down all the way to 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.

    Review Info-Tech's blueprint Improve Requirements Gathering to improve your requirements gathering process.

    Consider the perspective of each stakeholder to ensure functionality needs are met

    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 of implementation and all use cases of:
      • Buying an all-in-one solution.
      • Integration of multiple best-of-breed solutions.
      • 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 endpoint management solutions.

    Pros and Cons

    An image showing the pros and cons of building vs buying

    Evaluate software category leaders through vendor rankings and awards

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    • 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.
    • 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

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    • 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.

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    With the insight of our expert analysts, our members receive unparalleled support in their buying journey.

    Get to Know the Key Players in the Endpoint Management Landscape

    The following slides provide a top-level overview of the popular players you will encounter in the endpoint management shortlisting process in alphabetical order.

    A screenshot showing a series of logos for the companies addressed later in this blueprint. It includes: Ciso; Meraki; Citrix; IBM MaaS360; Ivanti; Jamf|Pro; ManageEngine Endpoint Central; Microsoft Endpoint Manager, and VMWARE.

    Vendor scores are driven by real-world practitioner reviews via SoftwareReviews. Composite, CX, EF, and NPS scores are pulled from live data as of January 2023.

    Secure business units and enhance connection by simplifying the digital workplace

    A good option for enterprises that want a single-pane-of-glass UEM that is easy to use, with a modern-looking dashboard, high threat-management capability, and high-quality customer support.

    CISCO Meraki

    Est. 1984 | CA, USA | NASDAQ: CSCO

    8.8

    9.1

    +92

    91%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    This is a Screenshot of CISCO Meraki's dashboard.

    Screenshot of CISCO Meraki's dashboard. Source: Cisco

    Strengths:

    Areas to improve:

    • Cisco Meraki offers granular control over what users can and cannot use.
    • The system is user friendly and intuitive, with a variety of features.
    • The anti-malware capability enhances security.
    • Users are very satisfied with being able to control everything in a single platform.
    • System configuration is easy.
    • Vendor relationship is very high with a rate of 96%.
    • System setup is easy, and users don't need much experience for initial configuration of devices.
    • Users are also mostly satisfied with the platform design.
    • Monitoring within the tool is easy.
    • According to SoftwareReviews' survey report, the primary reason for leaving Cisco Meraki and switching over to another vendor is functionality.
    • Regardless of the top-notch offerings and high-quality features, the product is relatively expensive. The quality and price factors make the solution a better fit for large enterprises. However, SoftwareReviews' scorecard for Cisco Meraki shows that small organizations are the most satisfied compared to the medium and large enterprises, with a net promoter score of 81%.

    Transform work experience and support every endpoint with a unified view to ensure users are productive

    A tool that enables you to access corporate resources on personal devices. It is adaptable to your budget. SoftwareReviews reports that 75% of organizations have received a discount at initial purchase or renewal, which makes it a good candidate if looking for a negotiable option.

    Citrix Endpoint Management

    Est. 1989 | TX, USA | Private

    7.9

    8.0

    8.0

    83%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of Citrix Endpoint Management's dashboard.

    Screenshot of Citrix Endpoint Management's dashboard. Source: Citrix

    Strengths:

    Areas to improve:

    • Citrix Endpoint Management is a cloud-centric, easy-to-use UEM with an upgradable interface.
    • The solution simplifies endpoint management and provides real-time visibility and notifications.
    • Citrix allows deployments on different operating systems to meet organizations' infrastructure requirements.
    • The vendor offers different licenses and pricing models, allowing businesses of different sizes to use the tool based on their budgets and requirements.
    • Some users believe that integration with external applications should be improved.
    • Deployment is not very intuitive, making implementation process challenging.
    • User may experience some lagging while opening applications on Citrix. Application is even a bit slower when using a mobile device.

    Scale remote users, enable BYOD, and drive a zero-trust strategy with IBM's modern UEM solution

    A perfect option to boost cybersecurity. Remote administration and installation are made very easy and intuitive on the platform. It is very user friendly, making implementation straightforward. It comes with four licensing options: Essential, Deluxe, Premier, and Enterprise. Check IBM's website for information on pricing and offerings.

    IBM MaaS360

    Est. 1911 | NY, USA | NYSE: IBM

    7.7

    8.4

    +86

    76%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of IBM MaaS360's dashboard.

    Screenshot of IBM MaaS360's dashboard. Source: IBM

    Strengths:

    Areas to improve:

    • IBM MaaS360 is easy to install and implement.
    • It has different pricing models to fit enterprises' needs.
    • MaaS360 is compatible with different operating systems.
    • Security management is one of the strongest features, making the tool perfect for organizations that want to improve cybersecurity.
    • Vendor support is very effective, and users find knowledge articles very helpful.
    • It has a very intuitive dashboard.
    • The tool can control organizational data, allowing you to apply BYOD policy.
    • AI Advisor with Watson provides AI-driven reporting and insights.
    • Working with iOS may not be as intuitive as other operating systems.
    • Adding or removing users in a user group is not very straightforward.
    • Some capabilities are limited to particular Android or iOS devices.
    • Deploying application packages may be a bit difficult.
    • Hardware deployment may need some manual work and is not fully automated.

    Get complete device visibility from asset discovery to lifecycle management and remediation

    A powerful tool for patch management with a great user interface. You can automate patching and improve cybersecurity, while having complete visibility into devices. According to SoftwareReviews, 100% of survey participants plan to renew their contract with Ivanti.

    Ivanti Neurons

    Est. 1985 | CA, USA | Private

    8.0

    8.0

    +81

    83%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of Ivanti Neurons UEM's dashboard.

    Screenshot of Ivanti Neurons UEM's dashboard. Source: Ivanti

    Strengths:

    Areas to improve:

    • The tool is intuitive and user friendly.
    • It's a powerful security management platform, supporting multiple operating systems.
    • Ivanti Neurons is very strong in patch management and inventory management. It helps a seamless application deployment.
    • Users can install their applications via Ivanti's portal.
    • The user interface is very powerful and easy to use.
    • AI-augmented process management automates protocols, streamlining device management and application updates.
    • Vendor is very efficient in training and provides free webinars.
    • Data integration is very easy. According to SoftwareReviews, it had a satisfaction score for ease of data integration of 86%, which makes Ivanti the top solution for this capability.
    • Data analytics is powerful but complicated.
    • Setup is easy for some teams but not as easy for others, which may cause delays for implementation.
    • Software monitoring is not as good as other competitors.

    Improve your end-user productivity and transform enterprise Apple devices

    An Apple-focused UEM with a great interface. Jamf can manage and control macOS and iOS, and it is one of the best options for Apple products, according to users' sentiments. However, it may not be a one-stop solution if you want to manage non-Apple products as well. In this case, you can use Jamf in addition to another UEM. Jamf has some integrations with Microsoft, but it may not be sufficient if you want to fully manage Windows endpoints.

    Jamf PRO

    Est. 2002 | MN, USA | NASDAQ: JAMF

    8.8

    8.7

    +87

    95%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of Jamf PRO's dashboard.

    Screenshot of Jamf PRO's dashboard. Source: Jamf

    Strengths:

    Areas to improve:

    • Jamf Pro is a unique product with an easy implementation that enables IT with minimum admin intervention.
    • It can create smart groups (based on MDM profile and user group) to automatically assign users to their pertinent apps and updates.
    • It's a very user-friendly tool, conducting device management in fewer steps than other competitors.
    • Reports are totally customizable and dynamic.
    • Notifications are easy to navigate and monitor.
    • Self-service feature enables end users to download their predefined categories of applications in the App Store.
    • It can apply single sign-on integrations to streamline user access to applications.
    • Businesses can personalize the tool with corporate logos.
    • Vendor does great for customer service when problems arise.
    • It is a costly tool relative to other competitors, pushing prospects to consider other products.
    • The learning process may be long and not easy, especially if admins do not script, or it's their first time using a UEM.

    Apply automation of traditional desktop management, software deployment, endpoint security, and patch management

    A strong choice for patch management, software deployment, asset management, and security management. There is a free version of the tool available to try get an understanding of the platform before purchasing a higher tier of the product.

    ManageEngine Endpoint Central

    Est. 1996 | India | Private

    8.3

    8.3

    +81

    88%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of ME Endpoint Central's dashboard.

    Screenshot of ME Endpoint Central's dashboard. Source: ManageEngine

    Strengths:

    Areas to improve:

    • It supports several operating systems including Windows, Mac, Linux, Android, and iOS.
    • Endpoint Central provides end-to-end monitoring, asset management, and security in a single platform.
    • Setup is simple and intuitive, and it's easy to learn and configure.
    • The reporting feature is very useful and gives you clear visibility into dashboard.
    • Combined with ME Service Desk Plus, we can call Endpoint Central an all-in-one solution.
    • The tool provides a real-time report on devices and tracks their health status.
    • It has multiple integrations with third-party solutions.
    • Tool does not automate updates, making application updates time-consuming.
    • Sometimes, patches and software deployments fail, and the tool doesn't provide any information on the reason for the failure.
    • There is no single point of contact/account manager for the clients when they have trouble with the tool.
    • Remote connection to Android devices can sometimes get a little tedious.

    Get device management and security in a single platform with a combination of Microsoft Intune and Configuration Manager

    A solution that combines Intune and ConfigMgr's capabilities into a single endpoint management suite for enrolling, managing, monitoring, and securing endpoints. It's a very cost-effective solution for enterprises in the Microsoft ecosystem, but it also supports other operating systems.

    Microsoft Endpoint Manager

    Est. 1975 | NM, USA | NASDAQ: MSFT

    8.0

    8.5

    +83

    85%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of MS Endpoint Manager's dashboard.

    Screenshot of MS Endpoint Manager's dashboard. Source: Microsoft

    Strengths:

    Areas to improve:

    • Licensing for the enterprises that use Windows as their primary operating system is more efficient and cost effective.
    • Endpoint Manager is very customizable, with the ability to assign personas to device groups.
    • Besides Windows, it manages other operating systems, such as Linux, Android, and iOS.
    • It creates endpoint security and compliance policies for BitLocker that streamlines data protection and security. It also provides SSO.
    • It provides very strong documentation and knowledgebase.
    • User interface is not as good as competitors. It's a bit clunky and complex to use.
    • The process of changing configurations on devices can be time consuming.
    • Sometimes there are service outages such as Autopilot failure, which push IT to deploy manually.
    • Location tracking is not very accurate.

    Simplify and consolidate endpoint management into a single solution and secure all devices with real-time, "over-the-air" modern management across all use cases

    A strong tool for managing and controlling mobile devices. It can access all profiles through Google and Apple, and it integrates with various IT management solutions.

    VMware Workspace ONE

    Est. 1998 | CA, USA | NYSE: VMW

    7.5

    7.4

    +71

    75%

    COMPOSITE SCORE

    CX SCORE

    EMOTIONAL FOOTPRINT

    LIKELINESS TO RECOMMEND

    DOWNLOAD REPORT

    Screenshot of Workspace ONE's dashboard.

    Screenshot of Workspace ONE's dashboard. Source: VMware

    Strengths:

    Areas to improve:

    • Workspace ONE provides lots of information about devices.
    • It provides a large list of integrations.
    • The solution supports various operating systems.
    • The platform has many out-of-the-box features and helps with security management, asset management, and application management.
    • The vendor has a community forum which users find helpful for resolving issues or asking questions about the solution.
    • It is very simple to use and provides SSO capability.
    • Implementation is relatively easy and straightforward.
    • Customization may be tricky and require expertise.
    • The solution can be more user friendly with a better UI.
    • Because of intensive processing, updates to applications take a long time.
    • The tool may sometimes be very sensitive and lock devices.
    • Analytics and reporting may need improvement.

    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!

    Activity: Define high-level features for meeting business and technical goals

    Input

    • List of endpoint management use cases
    • List of prioritized features

    Output

    • Vendor evaluation
    • Final list of candidate vendors

    Materials

    • Whiteboard/flip charts
    • Laptop
    • UEM Requirements Workbook

    Participants

    • CIO
    • IT manager
    • Infrastructure & Applications directors
    • Project managers

    Activity: Define top-level features for meeting business and technical goals

    As there are many solutions in the market that share capabilities, it is imperative to closely evaluate how well they fulfill your endpoint management requirements.
    Use the UEM Requirements Workbook to identify your desired endpoint solution features and compare vendor solution functionality based on your desired features.

    1. Refer to the output of the previous activity, the identified use cases in the spreadsheet.
    2. List the features you want in an endpoint solution for your devices that will fulfill these use cases. Record those features in the second column ("Detailed Feature").
    3. Prioritize each feature (must have, should have, nice to have, not required).
    4. Send this list to candidate vendors.
    5. When you finish your investigation, review the spreadsheet to compare the various offerings and pros and cons of each solution.

    Info-Tech Insight

    The output of this activity can be used for a detailed evaluation of UEM vendors. The next steps will be vendor briefing and having further discussion on technical capabilities and conducting demos of solutions. Info-Tech's blueprint, The Rapid Application Selection Framework, takes you to these next steps.

    This is a screenshot showing the high value use cases table from The Rapid Application Selection Framework.

    Download the UEM Requirements Workbook

    Leverage Info-Tech's research to plan and execute your endpoint management selection and implementation

    Use Info-Tech Research Group's blueprints for selection and implementation processes to guide your own planning.

    • Assess
    • Prepare
    • Govern & Course Correct

    This is a screenshot of the title pages from INfo-tech's Governance and management of enterprise Software Implementaton; and The Rapid Applicaton Selection Framework.

    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 because communication can break down more easily. 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.

    Implementation with a partner typically results in higher satisfaction

    Align your implementation plans with both the complexity of the solution and internal skill levels

    Be clear and realistic in your requirements to the vendor about the level of involvement you need to be successful.

    Primary reasons to use a vendor:

    • Lack of skilled resources: For solutions with little configuration change happening after the initial installation, the ramp-up time for an individual to build skills for a single event is not practical.
    • Complexity of solution: Multiple integrations, configurations, modules, and even acquisitions that haven't been fully integrated in the solution you choose can make it difficult to complete the installation and rollout on time and on budget. Troubleshooting becomes even more complex if multiple vendors are involved.
    • Data migration: Decide what information will be valuable to transfer to the new solution and which will not benefit your organization. Data structure and residency can both be factors in the complexity of this exercise.

    This is an image of a bar graph showing the Satisfaction Net Promotor Score by Implementation type and Organization Size.

    Source: SoftwareReviews, January 2020 to January 2023, N= 20,024 unique reviews

    To ensure your SOW is mutually beneficial, download the blueprint Improve Your Statements of Work to Hold Your Vendors Accountable.

    Consider running a proof of concept if concerns are expressed about the feasibility of the chosen solution

    Proofs of concept (PoCs) can be time consuming, so make good choices on where to spend the effort

    Create a PoC charter that will enable a quick evaluation of the defined use cases and functions. These key dimensions should form the PoC.

    1. Objective – Giving an overview of the planned PoC will help to focus and clarify the rest of this section. What must the PoC achieve? Objectives should be specific, measurable, attainable, relevant, and time bound. Outline and track key performance indicators.
    2. Key Success Factors – These are conditions that will positively impact the PoC's success.
    3. Scope – High-level statement of scope. More specifically, state what is in scope and what is out of scope.
    4. Project Team – Identify the team's structure, e.g. sponsors, subject matter experts.
    5. Resource Estimation – Identify what resources (time, materials, space, tools, expertise, etc.) will be needed to build and socialize your prototype. How will they be secured?

    An image of two screenshots from Info-Tech Research Group showing documentaton used to generate effective proof of concepts.

    To create a full proof of concept plan, download the Proof of Concept Template and see the instructions in Phase 3 of the blueprint Exploit Disruptive Infrastructure Technology.

    Selecting a right-sized endpoint management platform

    This selection guide allows organizations to execute a structured methodology for picking a UEM platform that aligns with their needs. This includes:

    • Identifying and prioritizing key business and technology drivers for an endpoint management selection business case.
    • Defining key use cases and requirements for a right-sized UEM platform.
    • Reviewing a comprehensive market scan of key players in the UEM marketspace.

    This formal UEM selection initiative will map out requirements and identify technology capabilities to fill the gap for better endpoint management. It also allows a formal roll-out of a UEM platform that is 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

    Summary of Accomplishment

    Knowledge Gained

    • What endpoint management is
    • Historical origins and evolution of endpoint management platforms
    • Current trends and future state of endpoint management platforms

    Processes Optimized

    • Identifying use cases
    • Gathering requirements
    • Reviewing market key players and their capabilities
    • Selecting a UEM tool that fulfills your requirements

    UEM Solutions Analyzed

    • CISCO Meraki
    • Citrix Endpoint Management
    • IBM MaaS360
    • Ivanti Neurons UEM
    • Jamf Pro
    • ManageEngine Endpoint Central
    • Microsoft Endpoint Manager
    • VMware Workspace ONE

    Related Info-Tech Research

    Modernize and Transform Your End-User Computing Strategy

    This project helps support the workforce of the future by answering the following questions: What types of computing devices, provisioning models, and operating systems should be offered to end users? How will IT support devices? What are the policies and governance surrounding how devices are used? What actions are we taking and when? How do end-user devices support larger corporate priorities and strategies?

    Best Unified Endpoint Management (UEM) Software | SoftwareReviews

    Compare and evaluate Unified Endpoint Management vendors using the most in-depth and unbiased buyer reports available. Download free comprehensive 40+ page reports to select the best Unified Endpoint Management software for your organization.

    The Rapid Application Selection Framework

    This blueprint walks you through a process for a fast and efficient selection of your prospective application. You will be enabled to use a data-driven approach to select the right application vendor for your needs, shatter stakeholder expectations with truly rapid application selections, boost collaboration and crush the broken telephone with concise and effective stakeholder meetings, and lock in hard savings.

    Bibliography

    "BYOD Security Report." Cybersecurity Insiders, 2021. Accessed January 2023.
    "Cloud Infrastructure Services Market." MarketsAnd Markets, 2019. Accessed December 2022.
    Evans, Alma. "Mastering Mobility Management: MDM Vs. EMM Vs. UEM." Hexnode, 2019. Accessed November 2022.
    "Evercore-ISI Quarterly Enterprise Technology Spending Survey." Evercore-ISI, 2022. Accessed January 2023.
    "5G Service Revenue to Reach $315 Billion Globally in 2023." Jupiter Research, 2022. Accessed January 2023.
    Hein, Daniel. "5 Common Unified Endpoint Management Use Cases You Need to Know." Solutions Review, 2020. Accessed January 2023.
    "Mobile Device Management Market Size, Share & COVID-19 Impact Analysis." Fortune Business Insights, 2021. Accessed December 2022.
    Ot, Anina. "The Unified Endpoint Management (UEM) Market." Datamation, 14 Apr. 2022. Accessed Jan. 2023.
    Poje, Phil. "CEO Corner: 4 Trends in Unified Endpoint Management for 2023." Tech Orchard, 2022. Accessed January 2023.
    "The Future of UEM November 2021 Webinar." Ivanti, 2021. Accessed January 2023.
    "The Third Annual Study on the State of Endpoint Security Risk." Ponemon Institute, 2020. Accessed December 2022.
    "The Ultimate Guide to Unified Endpoint Management (UEM)." MobileIron. Accessed January 2023.
    "Trends in Unified Endpoint Management." It Pro Today, 2018. Accessed January 2023.
    Turek, Melanie. "Employees Say Smartphones Boost Productivity by 34 Percent: Frost & Sullivan Research." Samsung Insights, 3 Aug. 2016.
    "2023 State of Security Report." Cybersecurity Insiders, 2022. Accessed January 2023.
    Violino, Bob. "Enterprise Mobility 2022: UEM Adds User Experience, AI, Automation." Computerworld, 2022. Accessed January 2023.
    Violino, Bob. "How to Choose the Right UEM Platform." Computerworld, 2021. Accessed January 2023.
    Violino, Bob. "UEM Vendor Comparison Chart 2022." Computerworld, 2022. Accessed January 2023.
    Wallent, Michael. "5 Endpoint Management Predictions for 2023." Microsoft, 2022. Accessed January 2023.
    "What Is the Difference Between MDM, EMM, and UEM?" 42Gears, 2017. Accessed November 2022.

    Select and Prioritize Digital Initiatives

    • Buy Link or Shortcode: {j2store}102|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: Innovation
    • Parent Category Link: /innovation

    The business has embarked on its digital transformation journey. As CIO, you are being relied on to help triage what is most important – initiatives that will move the needle to achieve and fulfill the digital goals and ambitions of the organization.

    • If selection criteria are not identified and well defined, then digital initiatives risk being misprioritized or, worse yet, incorrectly labelled as having high ROI.
    • Like any other project, net-new digital initiatives must be triaged according to the value they bring to the organization.
    • Just as importantly, the complexity of each initiative must also be weighed as a critical factor of success.

    Our Advice

    Critical Insight

    Once the scope of the digital strategy and its goals are finalized, the heavy lifting begins. CIOs must prepare for this change by evaluating opportunities and prioritizing which will become digital initiatives.

    Impact and Result

    By using an appropriate selection process, CIOs can prioritize the digital initiatives that will matter most to the organization and drive business value.

    Select and Prioritize Digital Initiatives Research & Tools

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

    1. Select and Prioritize Digital Initiatives Storyboard – A step-by-step document that walks you through how to prepare an IT department to embrace innovation and support the organization’s digital initiatives.

    Part of Info-Tech’s seven-phase approach for aligning IT with the business’ digital strategy, this deck focuses the core and enabling initiatives that define IT’s innovation goals. By the end of this deck, the IT leader will have a roadmap of prioritized initiatives that enable the organization’s digital business initiatives.

    • Select and Prioritize Digital Initiatives Storyboard
    [infographic]

    Further reading

    Select and Prioritize Digital Initiatives

    Build your digital investment business case.

    Info-Tech Research Group

    Info-Tech is a provider of best-practice IT research advisory services that make every IT leader’s job easier.
    35,000 members sharing best practices you can leverage. Millions spent annually developing tools and templates. Leverage direct access to over 100 analysts as an extension of your team. Use our massive database of benchmarks and vendor assessments. Get up to speed in a fraction of the time.

    Key Concepts

    Digital initiative

    A project – or a group of interdependent projects – whose primary purpose is to enable digital technologies and/or digital business models. These technologies and models may be net new to the organization, or they may be existing ones that are optimized and improved by the initiative itself.

    The feasibility of any initiative is gauged by answering:

    • What amount of return on investment (ROI) or value does it bring to the organization?
    • What level of complexity does it pose to project execution?
    • To what extent does it solve a problem or leverage an opportunity?
    • To what degree is it aligned with digital business goals?

    Digital strategy

    The plan to deploy existing/emerging technologies to look at developing new products and services, new business models, and operational efficiency to meet or exceed performance targets.

    IT strategy

    The plan for deploying and maintaining applications, hardware, infrastructure, and IT services that support the business goals in a secure/regulatory-compliant manner to ensure reliability.

    Digital transformation

    Digital transformation is an at-scale change program – planned and executed over a finite time period – with the aspiration of creating material and sustainable improvement in the performance of an organization. Techniques include deploying a programmatic approach to innovation along with enabling technologies, capabilities, and practices that drive efficiency and create new products, markets, and business models.

    Your Challenge

    • Once the scope of the digital strategy and its goals are finalized, the heavy lifting begins.
    • The CIO must prepare for this change by evaluating opportunities and prioritizing which will become digital initiatives.
    • But where to start with prioritization? What should the selection criteria be?
    • To answer these all-important questions, the CIO must identify what success actually looks like.

    Common Obstacles

    • If selection criteria are not identified and well-defined, then digital initiatives risk being neglected or worse yet, incorrectly labelled as having high ROI.
    • Like any other project, net-new digital initiatives must be triaged according to the value they bring to the organization.
    • Just as importantly, the complexity of each initiative must also be weighed as a critical factor of success.

    Solution

    • Determine and set your selection criteria by leveraging the matrix provided in this deck.
    • Evaluate each proposed initiative against this repeatable process in order to test your assumptions.
    • Develop a business case for each high priority digital initiative that captures its benefits and business value.
    • Assemble your prioritized list of digital initiatives to present to stakeholders.

    Info-Tech Insight

    The business has embarked on its digital transformation journey. As CIO, you are being relied on to help triage what is most important – initiatives that will move the needle to achieve and fulfill the digital goals and ambitions of the organization.

    Analyst Perspective

    Prioritization follows ideation, and it’s not always easy.

    Ross Armstrong

    Your stakeholders have spent considerable time and effort identifying and articulating a digital business strategy. Now that ideas have turned into opportunities, the CIO must prioritize those opportunities as actual initiatives. Where to begin?

    Your first task is to identify the criteria that will be used to conduct prioritization activities. These criteria should be immutable and rigorously applied.

    Your second task will be to develop business cases for each opportunity that passes muster. But don’t worry, you won’t need an MBA to get the job done properly.

    Ross Armstrong

    Principal Research Director
    Info-Tech Research Group

    Info-Tech’s digital transformation journey

    Info-Tech’s digital transformation journey: 1 - Visualize the art of the digitally possible, 2 - Evolve your digital business strategy, 3 - Execute with confidence

    Info-Tech's digital transformation journey for industry members. Table shows the stakeholders, advisory support and deliverables for each industry members

    By now, you have established your current strategic context

    You have reviewed trends to reimagine the future of your industry and undertaken a digital maturity assessment to validate your business objectives and innovation goals. Now you need to evolve the current scope of your digital vision and opportunities.

    • Phase 1.1: Industry Trends Report

    • Phase 1.2: Digital Maturity Assessment

    • Phase 2.1: Zero In on Business Objectives

    By this point you have leveraged industry roundtables to better understand the art of the possible – exploring global trends, shifts in market forces or industry, customer needs, emerging technologies, and economic forecasts and creating opportunities out of these disruptions.

    In Phase 2.1, you identified your business and innovation goals and documented your current capabilities, prioritized for transformation.

    Business and innovation goals have been established through stakeholder interviews and business document review.

    Current capabilities have been prioritized for transformation and heat mapped.

    You have also formalized your digital strategy

    Throughout the course of Phase 2.2, you identified new digital opportunities, identified the business capabilities required to capitalize those opportunities, and updated the digital goals of your organization, accordingly.

    An example of a formalized digital strategy from Phase 2.2.

    The end result of this exercise is a new goals cascade that aligns digital goals and capabilities with those of the business. Digital initiatives were also identified but not yet selected or prioritized for execution at the project level.

    Now you will select and prioritize digital initiatives

    The goal of this phase is to ensure that initiatives that are green-lit for execution have been successfully assessed against your chosen criteria and that the business case for each initiative is firmly established and documented.

    Info-Tech’s digital transformation journey for industry members.

    There are three key activities outlined here that describe the actions that can be undertaken by industry members to help select and prioritize digital initiatives for the business.

    1. Identify your selection criteria

    2. Evaluate initiatives against criteria

    3. Determine a prioritized list of initiatives

    Info-Tech’s approach

    1

    Identify your selection criteria

    • Define what viability actually looks like.
    • Conduct an evaluation session to test your assumptions
    2

    Evaluate initiatives against criteria

    • Evaluate and validate an initiative to determine its viability.
    • Map the benefits and value proposition for each initiative.
    • Build a business case and profile for each selected initiative.
    3

    Determine a prioritized list of initiatives

    • Finalize your initiatives list and compile all relevant information.
    • Communicate the list to stakeholders.

    Step 1: Identify Your Selection Criteria

    Understand which conditions must be met in order to turn an opportunity into a digital initiative.

    Step 1: Identify Your Selection Criteria

    Step 1

    Identify Your Selection Criteria

    1.1

    Define what "viable" looks like

    Set criteria types and thresholds.

    It is impossible to gauge whether or not an opportunity is worthwhile if you don’t have a yardstick to measure it by. However, what is viable for one organization in a particular industry may not be viable for a company elsewhere.

    Consider:
    • Use the criteria already set forth in this deck.
    • If for any reason you cannot use these criteria, work with stakeholders to establish viability factors that suit both the business and IT.
    Avoid:
    • Vague language when establishing your own criteria.
    • Ambiguity in both measures and their definitions. Be crystal clear.

    1.2

    Conduct an evaluation session

    Test your assumptions by piloting prioritization.

    Select an initiative from one of the opportunity profiles from Phase 2.2 and run it through the selection criteria. From there, determine if your assumptions are sound. If not, tweak the criteria and test again until all stakeholders have confidence in the process.

    Consider:
    • Most if not all projects must go through the IT project management office (PMO) or project management leader, so why not create a “digital-only” track for digital business initiatives?
    • Which digital initiatives also represent a sound strategic fit to the organization?
    • Have we undertaken previous projects that are similar? Were those successful? Why or why not?
    Avoid:
    • Making too many initiatives high priority. IT resources are limited, so be ruthless.
    • Taking on too many initiatives at once. Most IT organizations can only work on a small number at any given time.

    Use these selection criteria to prioritize initiatives

    Ideas matter, but not all ideas are created equal. Now that you have elicited ideas and identified opportunities, discuss the assumptions, risks, and benefits associated with each proposed digital business initiative.

    Complexity versus Impact. Shows initiatives that have a business Must Prioritize (High value/low complexity), Should Plan (High value/high complexity), Could Have (Low Value/ Low complexity), and Don't need (Low value/high complexity)

    Prioritize opportunities into initiatives

    Recall that the opportunities identified in Phase 2.2 also became proposed digital initiatives demonstrated in your goals cascade.

    In your discussion, evaluate each opportunity through a matrix to create tension between value and complexity or other dimensions. Capture the information based on measurable business benefits-realization; risks or considerations; assumptions; and competencies, talent, and assets needed to deliver.

    Prioritize opportunities into Initiatives. For example: new digital products and services, intelligent fleet management via automation, ERP automation etc.

    Leverage opportunity profiles from your digital strategy

    To start, take one of the opportunity profiles you created in Phase 2.2, Build Your Digital Vision and Strategy, and use it throughout the following steps. Once done, repeat with the next opportunity profile until all have been vetted against criteria. If you did not use Info-Tech’s approach, simply use whatever list of digital business opportunities provided to you from stakeholders.

    Robotic process automation Template.

    Prioritization Criteria

    Run each initiative through the following evaluation criteria. When finished, any opportunities that appear in the top left quadrant (high value/low complexity) are now your highest priority digital initiatives.

    Instructions:

    Assign each initiative a letter. As you decide on each one, move a copy of the circled letter to its appropriate place on the 2x2 selection matrix.

    List of digital opportunities.

    Complexity versus Impact. Shows initiatives that have a business Must Prioritize (High value/low complexity), Should Plan (High value/high complexity), Could Have (Low Value/ Low complexity), and Don't need (Low value/high complexity)

    Info-Tech Insight

    Evaluation should be based on the insights from analysis across all criteria. Leverage group discussion to help contextualize and challenge assumptions when validating opportunities.

    Digital initiative ≠ IT project

    Every idea is a good one, unless you need one that works. What “works” as a digital initiative is not the same thing as a straightforward IT project that would be typically managed by a project manager or PMO. These latter projects will be addressed in Phase 3.1 of the digital journey.

    Opportunities and business needs > Business model > Impact > Mandatory > Innovation path forward

    Digital Track

    Focus: Transform the business and operations

    1. Problem may not be well defined.
    2. “Initiative” is not clear.
    3. Based on market research, customer needs, trend analysis, and economic forecast, risk to the business if fit-for-purpose initiative is not identified.
    4. Previous delivery results not as expected, or uncertain how to continue the project.
    5. Highly complex with significant impact to transform the business or operations.
    6. Execution approach is not clear.
    7. Capabilities may not exist within IT.

    IT PMO

    1. Emerging technology trends create opportunities to modernize IT, not transform business.
    2. Problem is well defined and understood.
    3. Initiative is clearly identified.
    4. New IT project.
    5. Can be complex but does not transform the business.
    6. Standard PMP approach is a good fit.
    7. Capabilities exist to execute within IT.
    8. Software vendor or systems integrator is initiative provider.

    Step 2: Evaluate Initiatives Against Criteria

    Ruthlessly prioritize which opportunities will deliver the greatest business value and pose the best chance of success.

    Step 2: Evaluate initiatives against criteria.

    Step 2

    Evaluate Initiatives Against Criteria

    2.1

    Evaluate and validate

    Evaluate and validate (or invalidate) opportunities.

    Now that you have tested and refined the selection criteria, take each opportunity profile from Phase 2.2 and run it through its paces. Once plotted on the 2x2 matrix, you will have a clear and concise view of high priority digital initiatives.

    Consider:
    • What are the timing, relevance, and impact of each initiative being evaluated?
    • What are the merits of each opportunity?
    • What are the extent and reach of their impacts?
    Avoid:
    • Guesswork. Stick with what you know based on the available information and data at hand.

    2.2

    Determine benefits

    Document benefits and value proposition.

    Identify and determine the benefits of each high priority initiative, including the benefit type (e.g. observable, financial, etc.). In addition, discuss and articulate the value proposition for each high priority initiative.

    Consider:
    • Tangible and intangible benefits.
    • Creating a vision statement for each initiative selected as high priority.
    Avoid:
    • Don’t reach too much when identifying benefits. Be realistic.

    2.3

    Make your case

    Build a business case for each initiative.

    Once you have enunciated the value and benefits of each high priority initiative, create a business case and profile for each one that includes known costs, risks, and so on. These materials will be crucial for project execution and IT capability planning in Phase 2.3 of your digital journey.

    Consider:
    • All forms of costs, both in terms of time, labor, and physical assets and resources.
    • Stick with a short-form business case for now to save time. You can always expand it into full-form business case later on, if necessary.
    Avoid:
    • Generalities. Be conservative in your estimates and keep them grounded in what has transpired in past initiatives at the organization.

    Exemplar: Prioritization criteria

    Your prioritization matrix should look something like this. Initiatives B and C will now have short-form business cases developed for them. Initiatives in the “Should Plan” quadrant can be dealt with later.

    List of initiatives for digital opportunities. Complexity versus Impact. Shows initiatives that have a business Must Prioritize (High value/low complexity), Should Plan (High value/high complexity), Could Have (Low Value/ Low complexity), and Don't need (Low value/high complexity)

    Draw information from the opportunity profiles

    You created opportunity profiles in Phase 2.2 to clarify, validate and evaluate specific ideas for digital initiatives. In these profiles, you considered the timing, relevance, and impact of those opportunities.

    Some prioritized initiatives will have an immediate and significant impact on your business. Some may have a significant impact, but on a longer timeline. Understanding this is important context for your overall digital business strategy.

    Above all, you must be able to communicate to stakeholders how the newly prioritized digital initiatives are relevant to driving the strategic growth of the business.

    Start by elucidating further on initiative benefits and business value as outlined in the opportunity profile. This will become crucial for completing your next step – building a short-form business case for each prioritized initiative.

    Robotics Process Automation Template. Benefits and outcomes as well as incremental value are highlighted. The next slide is a template for the short-form business case, while the slides after that contain instructions on how to fill out each section of the business case.

    Short-Form Business Case Template

    Short form business case template. Shows value proposition, initiative benefits and initiative roadmap.

    Prepare your business case for each initiative

    Tasks:

    1. On a whiteboard, draw the visual initiative canvas supplied below.
    2. For each prioritized initiative, leverage its opportunity profile (if used) to list the resulting customer or stakeholder products/services and its pain relievers and gain creators in the associated sections of the canvas.
    3. Ensure that the top pains, gains, and jobs are addressed by products/services, pain relievers, and gain creators.
    4. Use this information as a basis for further exercises in this section, such as defining benefits, articulating value proposition and vision, and cost estimates.
    Initiative canvas example.

    Input

    • The initiative’s opportunity profile from Phase 2.2 of the Digital Journey series (if used)

    Output

    • Short-form initiative business case

    Materials

    • Whiteboard and markers

    Participants

    • Opportunity owner
    • Opportunity group/team

    Expand on the key benefits of each initiative

    Business cases are not just a vehicle with which to acquire resources for investments, they are a mechanism that helps ensure the benefits of an investment are realized. To accomplish this, a business case must have a set of clearly defined benefits, combined with an understanding of how they will be measured and an explicitly stated beneficiary who can corroborate that the benefit has been realized.

    What is a benefit?

    Benefits are the advantages, or outcomes, that specific groups or individuals realize as a result of the proposed initiative’s implementation.

    Initiative inputs

    Initiative inputs are the time, resources, and scope dedicated to the endeavor of implementing an initiative.

    Benefits of initiative and initiative inputs diagram.

    Identify how to measure benefit achievement

    Benefits are realized when an organization either starts doing something new, stops doing something, or improves the way something is already being done. The impact of these changes must be measured in order to determine whether the change is positive and if the case warrants more resources in order to scale.

    Types of benefits

    • Observable: These are measured by opinion or judgement.
    • Measurable: These can be identified when there is an existing measure in place for the benefit (or when one can be easily created).
    • Quantifiable: Similar to measurable benefits; however, these benefits additionally feature size or magnitude (if it can be reliably estimated).
    • Financial: These are benefits that can be communicated in monetary terms. A benefit should only be classified as financial when sufficient evidence is available to show that the stated value is likely to be achieved.

    Benefit owners and responsibilities

    1. Each benefit should have assigned to it an explicit owner who gains an advantage as a result of the initiative’s implementation.
    2. For most benefits, the owner will be the primary beneficiary of the initiative.
    3. These individuals are the ones who must corroborate that a benefit has been realized.
    4. Assigning an owner to each benefit will foster a sense of accountability in terms of benefits realization and will also create a traceable path that helps track the success of the initiative.

    Complete the benefits section of the business case

    Tasks:

    1. Use the Short-Form Business Case Template included in this deck.
    2. Arrange a meeting with the key beneficiary or beneficiaries of your initiative. Refer back to the benefits and outcomes section of the initiative’s opportunity profile (if used) as a starting point.
    3. Clearly define what the key benefits of your initiative will be and list them in the Short-Form Business Case Template.
    4. Assign an owner to each benefit – the individual who will corroborate that the benefit has accrued.
    5. Come to a mutual agreement with the beneficiaries as to whether each benefit is:
      • Financial
      • Quantifiable
      • Measurable
      • Observable
    6. Discuss and list the methods that will be used to measure each benefit and list them in the Short-Form Business Case Template.

    Input

    • Key benefits of the initiative, how they will be measured, and who owns the benefits

    Output

    • Completed benefits section of the Short-Form Business Case Template

    Materials

    • Short-Form Business Case Template

    Participants

    • Opportunity owner
    • Key beneficiary

    Craft value proposition and vision statements

    The way one articulates the value an initiative provides is just as important as the initiative itself. Use the previous exercises as inputs to craft a statement that reflects the value your initiative will provide, but also describes how the initiative will create value. Specifically, a value proposition should answer the following questions:

    1. Who is the initiative for?
    2. What is the initiative?
    3. What does the initiative do?
    4. How is the initiative different from others?

    Complete value prop and vision statement sections of the business case

    Tasks:

    1. Having already completed the benefits section of the Short-Form Business Case Template, turn your attention to the value proposition section.
    2. Using your problem and initiative canvases, in addition to the benefits section, craft a value proposition statement that answers the following questions in one or two sentences:
      • Who is the initiative for?
      • What is the initiative?
      • What does the initiative do?
      • How is the initiative different?
    3. Input the value proposition statement into the value proposition section of the Short-Form Business Case Template.

    Input

    • Initiative canvas
    • Benefits section of the Short-Form Business Case Template

    Output

    • Completed value proposition section of the Short-Form Business Case Template

    Materials

    • Short-Form Business Case Template

    Participants

    • Opportunity owner
    • Opportunity group/team

    Identify initiative steps and add to business case

    Tasks:

    Turn your attention to the roadmap section of the Short-Form Business Case Template and fill it in through the following steps:

    1. Select which scope, resource, and/or time reduction tactics to apply given the context of the project.
    2. Use the test, run, gauge, and collect framework supplied, unless you elect to generate your own project phases. If that is the case, ensure that phases are mutually exclusive and completely exhaustive (MECE).
    3. For each phase, supply a brief description of the activities to be undertaken for that phase.
    4. Map the benefits to be accrued within each phase.
    5. For each phase, supply a set of two to three potential factors that create risk toward the benefits listed.
    6. For each risk, supply a mitigation tactic that could be employed to diffuse the risk or to mitigate it completely.

    Input

    • Project benefits
    • Scope, resource, and time reduction tactics

    Output

    • Roadmap section of the Short-Form Business Case Template

    Materials

    • Short-Form Business Case Template

    Participants

    • Opportunity owner

    Fill out the cost section of the business case

    Tasks:

    1. Having already completed the roadmap part of the Short-Form Business Case Template, turn your attention to the cost section.
    2. Use the scope, resource, and time reduction tactics and roadmap to estimate the cost necessary to execute the project. Remember that costs are a factor of the resources required and the cost type.
      • Resources:
        • Hardware
        • Software
        • Human
        • Network and communications
        • Facilities
      • Cost Types:
        • Acquisition
        • Operation
        • Growth and change
    3. Complete the cost section of the Short-Form Business Case Template with the cost estimate for the project.

    Input

    • Roadmap
    • Scope, resource, and time reduction tactics

    Output

    • Cost section of the Short-Form Business Case Template

    Materials

    • Short-Form Business Case Template

    Participants

    • Opportunity owner
    • Opportunity group/team

    Exemplar: Short-Form Business Case

    Short form business case template. Shows value proposition, initiative benefits and initiative roadmap.

    Step 3: Determine a Prioritized List of Initiatives

    Green-light opportunities for digital investment and create your list of high-priority digital initiatives.

    Step 3: Determine a prioritized list of initiatives.

    Step 3

    Determine a Prioritized List of Initiatives

    3.1

    Compile information

    Finalize your list of high priority initiatives.

    This list should also include the short-form business cases that you completed in the previous step. This compilation of initiative information will be used in the next phase of your digital journey and is critical for its successful completion.

    Consider:
    • Checking your work. Does it ring true? Does it create excitement? People will be working on these initiatives in the near future, so it’s ideal if they feel good about the outcomes.
    • Integrating with your IT strategy, if you have one. These digital initiatives will figure prominently in the fiscal quarters to come.
    Avoid:
    • Dramatic effect. While you want stakeholders and IT staff to be enthusiastic about the work ahead, don’t dress up the initiatives as something they’re not.

    3.2

    Communicate

    It’s time to communicate with stakeholders.

    By now you should have a relatively short yet potent list of digital business initiatives – plus a business case for each – that has been thoroughly vetted and prioritized. Stakeholders are eager to learn more about these initiatives, though the details that matter most may differ from stakeholder to stakeholder.

    Consider:
    • Socializing the business cases before formally presenting to stakeholders for approval.
    • You will want to first elicit feedback and make any recommended changes to messaging.
    • Tailoring your message depending on stakeholder type, their priorities and concerns, and so on.
    Avoid:
    • Sugar coating. Many, if not all, of these stakeholders have the authority to invalidate or disapprove any business case that fails to pass muster. Give it to them straight.

    Compile your prioritized initiatives

    There are two follow-up actions to do with your newly prioritized list of digital initiative business cases: present them to stakeholders for approval and then add them to your IT strategic roadmap.

    Compile prioritized initiatives. Present to stakeholders and then add them to your IT strategic roadmap.

    Present business cases to stakeholders

    For most high-profile digital business initiatives, the short-form business case will not be the first time stakeholders hear about them. By this point, securing approval should only be a formality if the initiative has been effectively socialized beforehand. If this is not the case, one must build an adequate understanding of the stakeholder landscape and then use this understanding to effectively present business cases for digital initiative and receive approval to proceed with them.

    Gauge the importance of various stakeholders and tailor your message according to their concerns and the requirements of their role. Consider the following important questions about each stakeholder:

    • Authority: How much influence does the stakeholder have? Enough to drive the initiative forward?
    • Involvement: How interested is the stakeholder? How involved is the stakeholder in the initiative 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 initiative? Neutral? A resistor?

    Develop a stakeholder map

    A stakeholder map helps visualize the importance of various stakeholders and their concerns so you can prioritize your time according to those stakeholders who are most impacted by a digital initiative, as well as those who have the authority to green-light them.

    1. Evaluate each stakeholder in terms of authority, involvement, impact, and support, as discussed in the previous slide.
    2. Map each stakeholder to an area on the right template (slide four) based upon the level of their authority and involvement (high or low).
      • Vary the size of the circle to distinguish stakeholders that are highly impacted by the IT strategy from those who are not. Color each circle to show each stakeholder’s estimated or gauged level of support for the project.
    3. Ask yourself if the stakeholder map looks accurate. Is there someone who has no involvement in digital initiatives, but should?
      • A) For example, if a CFO who has the authority to disapprove project funding is heavily impacted and not involved, the success of the business cases will be put at risk.
    4. Draw a dotted circle to show where that stakeholder needs to be located (increased involvement and support), and an arrow with a dotted line to signify the needed change. Some stakeholders may have influence over others.
      • B) For example, a COO who highly values the opinion of the director of operations would be influenced by that director. Draw an arrow from one stakeholder to another to signify this relationship.

    Focus on key players: Relevant stakeholders who have high power are highly impacted and should have high involvement. Engage the stakeholders that are impacted most and have the authority to influence digital initiatives and approve business cases.

    Stakeholder map. Authority versus involvement of key players.

    Summary of key insights

    By now, you should have a firm understanding of the principles and desired actions, behaviors, and outcomes that have been presented in this methodology. Furthermore:

    1. Prioritization of digital opportunities can be a relatively straightforward task as long as the correct stakeholders are involved and use a common and agreed upon set of criteria.
    2. Developing a business case for a digital initiative in an agile manner need not be a grueling exercise provided that a vetted and repeatable process is used.
    3. Above all, remember that this is a journey. Going from an intangible (macro-trend, problem, or opportunity) to a tangible (actual project or initiative) does not happen all at once.

    Related Info-Tech Research

    Understand Industry Trends

    Assess how the external environment presents opportunities or threats to your organization.

    Build a Business-Aligned IT Strategy

    Align with the business by creating an IT strategy that documents the business context, key initiatives, and a strategic roadmap.

    Define Your Digital Business Strategy

    Design a strategy that applies innovation to your business model, streamlines and transforms processes, and makes use of technologies to enhance interactions with customers and employees.

    Research Contributors and Experts

    Ross Armstrong

    Ross Armstrong

    Principal Research Director, CIO Advisory
    Info-Tech Research Group

    Ross Armstrong is a Principal Research Director in the CIO Advisory practice at Info-Tech Research Group, covering the areas of IT strategic planning, digital strategy, digital transformation, and IT innovation.

    Ross has worked in a variety of public and private sector industries including automotive, IT, mobile/telecom, and higher education. All of his roles over the years have centered around data-driven market research – in pursuit of insightful and successful product development and product management – at their core.

    In addition to his long tenure as an Info-Tech Research Group analyst, Ross has worked in research and product innovation positions at Autodata initiatives (J.D. Power), BlackBerry, and Ivey Business School (Western University).

    Ross holds a Master of Arts degree in English Language and Literature from Western University (UWO) and has served as an advisory board member for a number of not-for-profit and educational institutions.

    Joanne Lee

    Joanne Lee

    Principal Research Director, CIO Advisory
    Info-Tech Research Group

    Joanne is an executive with over 25 years of experience providing leadership in digital technology and management consulting across both public and private entities from initiative delivery to organizational redesign across BC, Ontario, and Globally.

    A Director within KPMG’s CIO Advisory Management Consulting services and practice lead for Digital Health in BC, Joanne has led various client engagements from ERP Cloud Strategy, IT Operating Models, Data and Analytics maturity, to process redesign. More recently, Joanne was the Chief Program Officer and Executive Director responsible for leading the implementation of a $450M technology and business transformation initiative across 13 hospitals and community services for one of the largest health authorities in BC.

    A former clinician, Joanne has held progressive leadership roles in healthcare with accountabilities across IT operations and service management, data analytics, project management office (PMO), clinical informatics, and privacy and contract management. Joanne is passionate about connecting people, concepts, and capital.

    Bibliography

    “AI: From Data to ROI.” Cognizant, September 2020. Accessed November 2022.

    Bughin, Jacques, et al. “The Case for Digital Reinvention.” McKinsey Quarterly, February 2017. Accessed November 2022.

    “The Business Case for Digital Transformation.” CPA Canada, June 2021. Accessed November 2022.

    “The Case for Digital Transformation.” The National Center for the Middle Market, Ohio State University, 2020. Accessed October 2022.

    “Digital Transformation in Government Case Study.” Ionology, April 2020. Accessed October 2022.

    Louis, Peter, et al. “Internet of Things – From Buzzword to Business Case.” Siemens, 11 January 2021. Accessed December 2022.

    Miesen, Nick. “Case Studies of Digital Transformations in Process and Aerospace Industries.” Jugaad, 2018. Accessed November 2022.

    Proff, Harald, and Claudia Bittrich. “The Digital Business Case - Done Right!” Deloitte, August 2019. Accessed October 2022.

    “Propelling an Aerospace Innovator.” Accenture, 2021. Accessed October 2022.

    Schmidt-Subramanian, Maxie. “The ROI of CX Transformation.” Forrester, 15 August 2019. Accessed November 2022.

    Ward, John, et al. “Building Better Business Cases for IT Investments.” California Management Review, Sept. 2007. Web.

    Estimate Software Delivery With Confidence

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    • Estimation and planning practices set and reinforce the expectations of product delivery, which is a key driver of IT satisfaction.
    • However, today’s rapidly scaling and increasingly complex products and business needs create mounting pressure for teams to make accurate estimates with little knowledge of the problem or solution to it, risking poor-quality products.
    • Many organizations lack the critical foundations involved in making acceptable estimates in collaboration with the various perspectives and estimation stakeholders.

    Our Advice

    Critical Insight

    • Estimation reflects your culture and operating model. The accuracy of your estimates is dependent on the roles involved, which is not encouraged in traditional and top-down methodologies. Stakeholders must respect and support the team’s estimates.
    • Estimates support value delivery. IT satisfaction is driven by the delivery of valuable products and services. Estimates set the appropriate stakeholder expectations to ensure successful delivery and make the right decisions.
    • Estimates are more than just guesses. They are tools used to make critical business, product, and technical decisions and inform how to best utilize resources and funding.

    Impact and Result

    • Establish the right expectations. Gain a grounded understanding of estimation value and limitations. Discuss estimation challenges to determine if poor practices and tactics are the root causes or symptoms.
    • Strengthen analysis and estimation practices. Obtain a thorough view of the product backlog item (PBI) through good analysis tactics. Incorporate multiple analysis and estimation tactics to verify and validate assumptions.
    • Incorporate estimates into your delivery lifecycle. Review and benchmark estimates, and update expectations as more is learned.

    Estimate Software Delivery With Confidence Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should optimize your estimation practice, 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. Justify estimation optimization

    Set the right stakeholder expectations for your delivery estimates and plans.

    • Estimate Software Delivery With Confidence – Phase 1: Justify Estimation Optimization
    • Estimation Quick Reference Template

    2. Commit to achievable delivery

    Adopt the analysis, estimation, commitment, and communication tactics to successfully develop your delivery plan.

    • Estimate Software Delivery With Confidence – Phase 2: Commit to Achievable Delivery

    3. Mature your estimation practice

    Build your estimation optimization roadmap.

    • Estimate Software Delivery With Confidence – Phase 3: Mature Your Estimation Practice
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    Workshop: Estimate Software Delivery With Confidence

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

    1 Set the Context

    The Purpose

    Discuss the decisions that estimates will help make.

    Level set estimation expectations by clarifying what they can and cannot do.

    Review the current state of your estimation practice.

    Key Benefits Achieved

    Grounded understanding of estimation that is accepted by all audiences and stakeholders.

    Identification of whether estimation practices are the root cause of estimation challenges or a symptom of a different issue.

    Activities

    1.1 Define estimation expectations.

    1.2 Reveal your root cause challenges.

    Outputs

    Estimation expectations

    Root causes of estimation challenges

    2 Build Your Estimation Practice

    The Purpose

    Discuss the estimation and planning practices used in the industry.

    Define the appropriate tactics to use to make key business and delivery decisions.

    Simulate the tactics to verify and validate their fit with your teams.

    Key Benefits Achieved

    Knowledge of good practices that can improve the effectiveness of your estimates and plans.

    Practice using new tactics.

    Activities

    2.1 Ground estimation fundamentals.

    2.2 Strengthen your analysis tactics.

    2.3 Strengthen your estimation tactics.

    2.4 Commit and communicate delivery.

    2.5 Simulate your target state planning and estimation tactics.

    Outputs

    Estimation glossary and guiding principles

    Defined analysis tactics

    Defined estimation and consensus-building tactics

    Defined commitment and communication tactics

    Lessons learned

    3 Define Your Optimization Roadmap

    The Purpose

    Review the scope and achievability of your improved estimation and planning practice.

    Key Benefits Achieved

    Realistic and achievable estimation optimization roadmap.

    Activities

    3.1 Mature your estimation practice.

    Outputs

    Estimation optimization roadmap

    2021 IT Talent Trend Report

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    • 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]

    CIO Priorities 2022

    • Buy Link or Shortcode: {j2store}328|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
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    • Parent Category Name: Innovation
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    • Understand how to respond to trends affecting your organization.
    • Determine your priorities based on current state and relevant internal factors.
    • Assign the right amount of resources to accomplish your vision.
    • Consider what new challenges outside of your control will demand a response.

    Our Advice

    Critical Insight

    A priority is created when external factors hold strong synergy with internal goals and an organization responds by committing resources to either avert risk or seize opportunity. These are the priorities identified in the report:

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Impact and Result

    Update your strategic roadmap to include priorities that are critical and relevant for your organization based on a balance of external and internal factors.

    CIO Priorities 2022 Research & Tools

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

    1. CIO Priorities 2022 – A report on the key priorities for competing in the digital economy.

    Discover Info-Tech’s five priorities for CIOs in 2022.

    • CIO Priorities Report for 2022

    2. Listen to the podcast series

    Hear directly from our contributing experts as they discuss their case studies with Brian Jackson.

    • Frictionless hybrid working: How the Harvard Business School did it
    • Close call with ransomware: A CIO recounts a near security nightmare
    • How a financial services company dodged "The Great Resignation"
    • How Allianz took a blockchain platform from pilot to 1 million transactions
    • CVS Health chairman David Dorman on healthcare's hybrid future

    Infographic

    Further reading

    CIO Priorities 2022

    A jumble of business-related words. Info-Tech’s 2022 Tech Trends survey asked CIOs for their top three priorities. Cluster analysis of their open-ended responses shows four key themes:
    1. Business process improvements
    2. Digital transformation or modernization
    3. Security
    4. Supporting revenue growth or recovery

    Info-Tech’s annual CIO priorities are formed from proprietary primary data and consultation with our internal experts with CIO stature

    2022 Tech Trends Survey CIO Demographic N=123

    Info-Tech’s Tech Trends 2022 survey was conducted between August and September 2021 and collected a total of 475 responses from IT decision makers, 123 of which were at the C-level. Fourteen countries and 16 industries are represented in the survey.

    2022 IT Talent Trends Survey CIO Demographic N=44

    Info-Tech’s IT Talent Trends 2022 survey was conducted between September and October 2021 and collected a total of 245 responses from IT decision makers, 44 of which were at the C-level. A broad range of countries from around the world are represented in the survey.

    Internal CIO Panels’ 125 Years Of Combined C-Level IT Experience

    Panels of former CIOs at Info-Tech focused on interpreting tech trends data and relating it to client experiences. Panels were conducted between November 2021 and January 2022.

    CEO-CIO Alignment Survey Benchmark Completed By 107 Different Organizations

    Info-Tech’s CEO-CIO Alignment program helps CIOs align with their supervisors by asking the right questions to ensure that IT stays on the right path. It determines how IT can best support the business’ top priorities and address the gaps in your strategy. In 2021, the benchmark was formed by 107 different organizations.

    Build IT alignment

    IT Management & Governance Diagnostic Benchmark Completed By 320 Different Organizations

    Info-Tech’s Management and Governance Diagnostic helps IT departments assess their strengths and weaknesses, prioritize their processes and build an improvement roadmap, and establish clear ownership of IT processes. In 2021, the benchmark was formed by data from 320 different organizations.

    Assess your IT processes

    The CIO priorities are informed by Info-Tech’s trends research reports and surveys

    Priority: “The fact or condition of being regarded or treated as more important than others.” (Lexico/Oxford)

    Trend: “A general direction in which something is developing or changing.” (Lexico/Oxford)

    A sequence of processes beginning with 'Sensing', 'Hypothesis', 'Validation', and ending with 'Trends, 'Priorities'. Under Sensing is Technology Research, Interviews & Insights, Gathering, and PESTLE. Under Hypothesis is Near-Future Probabilities, Identify Patterns, Identify Uncertainties, and Identify Human Benefits. Under Validation is Test Hypothesis, Case Studies, and Data-Driven Insights. Under Trends is Technology, Talent, and Industry. Under Priorities is CIO, Applications, Infrastructure, and Security.

    Visit Info-Tech’s Trends & Priorities Research Center

    Image called 'Defining the CIO Priorities for 2022'. Image shows 4 columns, Implications, Resource Investment, Amplifiers, and Actions and Outcomes, with 2 dotted lines, labeled External Context and Internal Context, running through all 4 columns and leading to bottom-right label called CIO Priorities Formed

    The Five Priorities

    Priorities to compete in the digital economy

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Reduce friction in the hybrid operating model

    Priority 01 | APO07 Human Resources Management

    Deliver solutions that create equity between remote workers and office workers and make collaboration a joy.

    Hybrid work is here to stay

    CIOs must deal with new pain points related to friction of collaboration

    In 2020, CIOs adapted to the pandemic’s disruption to offices by investing in capabilities to enable remote work. With restrictions on gathering in offices, even digital laggards had to shift to an all-remote work model for non-essential workers.

    Most popular technologies already invested in to facilitate better collaboration

    • 24% Web Conferencing
    • 23% Instant Messaging
    • 20% Document Collaboration

    In 2022, the focus shifts to solving problems created by the new hybrid operating model where some employees are in the office and some are working remotely. Without the ease of collaborating in a central hub, technology can play a role in reducing friction in several areas:

    • Foster more connections between employees. Remote workers are less likely to collaborate with people outside of their department and less likely to spontaneously collaborate with their peers. CIOs should provide a digital employee experience that fosters collaboration habits and keeps workers engaged.
    • Prevent employee attrition. With more workers reevaluating their careers and leaving their jobs, CIOs can help employees feel connected to the overall purpose of the organization. Finding a way to maintain culture in the new context will require new solutions. While conference room technology can be a bane to IT departments, making hybrid meetings effortless to facilitate will be more important.
    • Provide new standards for mediated collaboration. Meeting isn’t as easy as simply gathering around the same table anymore. CIOs need to provide structure around how hybrid meetings are conducted to create equity between all participants. Business continuity processes must also consider potential outages for collaboration services so employees can continue the work despite a major outage.

    Three in four organizations have a “hybrid” approach to work. (Tech Trends 2022 Survey)

    In most organizations, a hybrid model is being implemented. Only 14.9% of organizations are planning for almost everyone to return to the office, and only 9.9% for almost everyone to work remotely.

    Elizabeth Clark

    CIO, Harvard Business School

    "I want to create experiences that are sticky. That keep people coming back and engaging with their colleagues."

    Photo of Elizabeth Clark, CIO, Harvard Business School.

    Listen to the Tech Insights podcast:
    Frictionless hybrid working: How the Harvard Business School did it

    Internal interpretation: Harvard Business School

    • March 2020
      The pandemic disrupts in-class education at Harvard Business School. Their case study method of instruction that depends on in-person, high-quality student engagement is at risk. While students and faculty completed the winter semester remotely, the Dean and administration make the goal to restore the integrity of the classroom experience with equity for both remote and in-person students.
    • May 2020
      A cross-functional task force of about 100 people work intensively, conducting seven formal experiments, 80 smaller tests, and hundreds of polling data points, and a technology and facilities solution is designed: two 4K video cameras capturing both the faculty and the in-class students, new ceiling mics, three 85-inch TV screens, and students joining the videoconference from their laptops. A custom Zoom room, combining three separate rooms, integrated all the elements in one place and integrated with the lecture capture system and learning management system.
    • October 2020
      Sixteen classrooms are renovated to install the new solution. Students return to the classroom but in lower numbers due to limits on in-room capacity, but students rotate between the in-person and remote experience.
    • September 2021
      Renovations for the hybrid solution are complete in 26 classrooms and HBS has determined this will be its standard model for the classroom. The case method of teaching is kept alive and faculty and students are thrilled with the results.
    • November 2021
      HBS is adapting its solution for the classroom to its conference rooms and has built out eight different rooms for a hybrid experience. The 4K cameras and TV screens capture all participants in high fidelity as well as the blackboard.

    Photo of a renovated classroom with Zoom participants integrated with the in-person students.
    The renovated classrooms integrate all students, whether they are participating remotely or in person. (Image courtesy of Harvard Business School.)

    Implications: Organization, Process, Technology

    External

    • Organization – About half of IT practitioners in the Tech Trends 2022 survey feel that IT leaders, infrastructure and operations teams, and security teams were “very busy” in 2021. Capacity to adapt to hybrid work could be constrained by these factors.
    • Process – Organizations that want employees to benefit from being back in the office will have to rethink how workers can get more value out of in-person meetings that also require videoconference participation with remote workers.
    • Technology – Fifty-four percent of surveyed IT practitioners say the pandemic raised IT spending compared to the projections they made in 2020. Much of that investment went into adapting to a remote work environment.

    Internal

    • Organization – HBS added 30 people to its IT staff on term appointments to develop and implement its hybrid classroom solutions. Hires included instructional designers, support technicians, coordinators, and project managers.
    • Process – Only 25 students out of the full capacity of 95 could be in the classroom due to COVID-19 regulations. On-campus students rotated through the classroom seats. An app was created to post last-minute seat availability to keep the class full.
    • Technology – A Zoom room was created that combines three rooms to provide the full classroom experience: a view of the instructor, a clear view of each student that enlarges when they are speaking, and a view of the blackboard.

    Resources Applied

    Appetite for Technology

    CIOs and their direct supervisors both ranked internal collaboration tools as being a “critical need to adopt” in 2021, according to Info-Tech’s CEO-CIO Alignment Benchmark Report.

    Intent to Invest

    Ninety-seven percent of IT practitioners plan to invest in technology to facilitate better collaboration between employees in the office and outside the office by the end of 2022, according to Info-Tech’s 2022 Tech Trends survey.

    “We got so many nice compliments, which you don’t get in IT all the time. You get all the complaints, but it’s a rare case when people are enthusiastic about something that was delivered.” (Elizabeth Clark, CIO, Harvard Business School)

    Harvard Business School

    • IT staff were reassigned from other projects to prioritize building a hybrid classroom solution. A cloud migration and other portfolio projects were put on pause.
    • The annual capital A/V investment was doubled. The amount of spend on conference rooms was tripled.
    • Employees were hired to the media services team at a time when other areas of the organization were frozen.

    Outcomes at Harvard Business School

    The new normal at Harvard Business School

    New normal: HBS has found its new default operating model for the classroom and is extending its solution to its operating environment.

    Improved CX: The high-quality experience for students has helped avoid attrition despite the challenges of the pandemic.

    Engaged employees: The IT team is also engaged and feels connected to the mission of the school.

    Photo of a custom Zoom room bringing together multiple view of the classroom as well as all remote students.
    A custom Zoom room brings together multiple different views of the classroom into one single experience for remote students. (Image courtesy of Harvard Business School.)

    From Priorities to Action

    Make hybrid collaboration a joy

    Align with your organization’s goals for collaboration and customer interaction, with the target of high satisfaction for both customers and employees. Invest in capital projects to improve the fidelity of conference rooms, develop and test a new way of working, and increase IT capacity to alleviate pressure points.

    Foster both asynchronous and synchronous collaboration approaches to avoid calendars filling up with videoconference meetings to get things done and to accommodate workers contributing from across different time zones.

    “We’ll always have hybrid now. It’s opened people’s eyes and now we’re thinking about the future state. What new markets could we explore?” (Elizabeth Clark, CIO, Harvard Business School)

    Take the next step

    Run Better Meetings
    Hybrid, virtual, or in person – set meeting best practices that support your desired meeting norms.

    Prepare People Leaders for the Hybrid Work Environment
    Set hybrid work up for success by providing people leaders with the tools they need to lead within the new model.

    Hoteling and Hot-Desking: A Primer
    What you need to know regarding facilities, IT infrastructure, maintenance, security, and vendor solutions for desk hoteling and hot-desking.

    “Human Resources Management” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the Human Resources Management gap between importance and effectiveness. The difference is marked as Delta 2.3.

    Improve your ransomware readiness

    Priority 02 | APO13 Security Strategy

    Mitigate the damage of successful ransomware intrusions and make recovery as painless as possible.

    The ransomware crisis threatens every organization

    Prevention alone won’t be enough against the forces behind ransomware.

    Cybersecurity is always top of mind for CIOs but tends to be deprioritized due to other demands related to digital transformation or due to cost pressures. That’s the case when we examine our data for this report.

    Cybersecurity ranked as the fourth-most important priority by CIOs in Info-Tech’s 2022 Tech Trends survey, behind business process improvement, digital transformation, and modernization. Popular ways to prepare for a successful attack include creating offline backups, purchasing insurance, and deploying new solutions to eradicate ransomware.

    CIOs and their direct supervisors ranked “Manage IT-Related Security” as the third-most important top IT priority on Info-Tech’s CEO-CIO Alignment Benchmark for 2021, in support of business goals to manage risk, comply with external regulation, and ensure service continuity.

    Most popular ways for organizations to prepare for the event of a successful ransomware attack:

    • 25% Created offline backups
    • 18% Purchased cyberinsurance
    • 19% New tech to eradicate ransomware

    Whatever priority an organization places on cybersecurity, when ransomware strikes, it quickly becomes a red alert scenario that disrupts normal operations and requires all hands on deck to respond. Sophisticated attacks executed at wide scale demonstrate that security can be bypassed without creating an alert. After that’s accomplished, the perpetrators build their leverage by exfiltrating data and encrypting critical systems.

    CIOs can plan to mitigate ransomware attacks in several constructive ways:

    • Business impact analysis. Determine the costs of an outage for specific periods and the system and data recovery points in time.
    • Engage a partner for 24/7 monitoring. Gain real-time awareness of your critical systems.
    • Review your identity access management (IAM) policies. Use of multi-factor authentication and limiting access to only the roles that need it reduces ransomware risk.

    50% of all organizations spent time and money specifically to prevent ransomware in the past year. (Info-Tech Tech Trends 2022 Survey)

    John Doe

    CIO, mid-sized manufacturing firm in the US

    "I want to create experiences that are sticky. That keep people coming back and engaging with their colleagues."

    Blank photo.

    Listen to the Tech Insights podcast:
    Close call with ransomware: a CIO recounts a near security nightmare

    Internal interpretation: US-based, mid-sized manufacturing firm

    • May 1, 2021
      A mid-sized manufacturing firm (“The Firm”) CIO gets a call from his head of security about odd things happening on the network. A call is made to Microsoft for support. Later that night, the report is that an unwanted crypto-mining application is the culprit. But a couple of hours later, that assessment is proven wrong when it’s realized that hundreds of systems are staged for a ransomware attack. All the attacker has to do is push the button.
    • May 2, 2021
      The Firm disconnects all its global sites to cut off new pathways for the malware to infect. All normal operations cease for 24 hours. It launches its cybersecurity insurance process. The CIO engages a new security vendor, CrowdStrike, to help respond. Employees begin working from home if they can so they can make use of their own internet service. The Firm has cut off its public internet connectivity and is severed from cloud services such as Azure storage and collaboration software.
    • May 4, 2021
      The hackers behind the attack are revealed by security forensics experts. A state-sponsored agency in Russia set up the ransomware and left it ready to execute. It sold the staged attack to a cybercriminal group, Doppel Spider. According to CrowdStrike, the group uses malware to run “big game hunting operations” and targets 18 different countries including the US and multiple industries, including manufacturing.
    • May 10, 2021
      The Firm has totally recovered from the ransomware incident and avoided any serious breach or paying a ransom. The CIO worked more hours than at any other point in his career, logging an estimated 130 hours over the two weeks.
    • November 2021
      The Firm never previously considered itself a ransomware target but has now reevaluated that stance. It has hired a service provider to run a security operations center on a 24/7 basis. It's implemented a more sophisticated detection and response model and implemented multi-factor authentication. It’s doubled its security spend in 2021 and will invest more in 2022.

    “Now we take the approach that if someone does get in, we're going to find them out.” (John Doe, CIO, “The Firm”)

    Implications: Organization, Process, Technology

    External

    • Organization – Organizations must consider how their employees play a role in preventing ransomware and plan for training to recognize phishing and other common traps. They must make plans for employees to continue their work if systems are disrupted by ransomware.
    • Process – Backup processes across multiple systems should be harmonized to have both recent and common points to recover from. Work with the understanding IT will have to take systems offline if ransomware is discovered and there is no time to ask for permission.
    • Technology – Organizations can benefit from security services provided by a forensics-focused vendor. Putting cybersecurity insurance in place not only provides financial protection but also guidance in what to do and which vendors to work with to prevent and recover from ransomware.

    Internal

    • Organization – The Firm was prepared with a business continuity plan to allow many of its employees to work remotely, which was necessary because the office network was incapacitated for ten days during recovery.
    • Process – Executives didn’t seek to assign blame for the security incident but took it as a signal there were some new costs involved to stay in business. It initiated new outsource relationships and hired one more full-time employee to shore up security resources.
    • Technology – New ransomware eradication software was deployed to 2,000 computers. Scripted processes automated much of the work, but in some cases full system rebuilds were required. Backup systems were disconnected from the network as soon as the malware was discovered.

    Resources Applied

    Consider the Alternative

    Organizations should consider how much a ransomware attack on critical systems would cost them if they were down for a minimum of 24-48 hours. Plan to invest an amount at least equal to the costs of that downtime.

    Ask for ID

    Implementing across-the-board multi-factor authentication reduces chances of infection and is cheap, with enterprise solutions ranging from $2 to $5 per user on average. Be strict and deny access when connections don’t authenticate.

    “You'll never stop everything from getting into the network. You can still focus on stopping the bad actors, but then if they do make it in, make sure they don't get far.” (John Doe, CIO, “The Firm”)

    “The Firm” (Mid-Sized Manufacturer)

    • During the crisis, The Firm paused all activities and focused solely on isolating and eliminating the ransomware threat.
    • New outsourcing relationship with a vendor provides a 24/7 Security Operations Center.
    • One more full-time employee on the security team.
    • Doubled investment in security in 2021 and will spend more in 2022.

    Outcomes at “The Firm” (Mid-Sized Manufacturer)

    The new cost of doing business

    Real-time security: While The Firm is still investing in prevention-based security, it is also developing its real-time detection and response capabilities. When ransomware makes it through the cracks, it wants to know as soon as possible and stop it.

    Leadership commitment: The C-suite is taking the experience as a wake-up call that more investment is required in today’s threat landscape. The Firm rates security more highly as an overall organizational goal, not just something for IT to worry about.

    Stock photo of someone using their phone while sitting at a computer, implying multi-factor authentication.
    The Firm now uses multi-factor authentication as part of its employee sign-on process. For employees, authenticating is commonly achieved by using a mobile app that receives a secret code from the issuer.

    From Priorities to Action

    Cybersecurity is everyone’s responsibility

    In Info-Tech’s CEO-CIO Alignment Benchmark for 2021, the business goal of “Manage Risk” was the single biggest point of disagreement between CIOs and their direct supervisors. CIOs rank it as the second-most important business goal, while CEOs rank it as sixth-most important.

    Organizations should align on managing risk as a top priority given the severity of the ransomware threat. The threat actors and nature of the attacks are such that top leadership must prepare for when ransomware hits. This includes halting operations quickly to contain damage, engaging third-party security forensics experts, and coordinating with government regulators.

    Cybersecurity strategies may be challenged to be effective without creating some friction for users. Organizations should look beyond multi-layer prevention strategies and lean toward quick detection and response, spending evenly across prevention, detection, and response solutions.

    Take the next step

    Create a Ransomware Incident Response Plan
    Don’t be the next headline. Determine your current readiness, response plan, and projects to close gaps.

    Simplify Identity and Access Management
    Select and implement IAM and produce vendor RFPs that will contain the capabilities you need, including multi-factor authentication.

    Cybersecurity Series Featuring Sandy Silk
    More from Info-Tech’s Senior Workshop Director Sandy Silk in this video series created while she was still at Harvard University.

    Gap between CIOs and CEOs in points allocated to “Manage risk” as a top business goal

    A bar chart illustrating the gap between CIOs and CEOs in points allocated to 'Manage risk' as a top business goal. The difference is marked as Delta 1.5.

    Support an employee-centric retention strategy

    Priority 03 | ITRG02 Leadership, Culture & Values

    Avoid being a victim of “The Great Resignation” by putting employees at the center of an experience that will engage them with clear career path development, purposeful work, and transparent feedback.

    Defining an employee-first culture that improves retention

    The Great resignation isn’t good for firms

    In 2021, many workers decided to leave their jobs. Working contexts were disrupted by the pandemic and that saw non-essential workers sent home to work, while essential workers were asked to continue to come into work despite the risks of COVID-19. These disruptions may have contributed to many workers reevaluating their professional goals and weighing their values differently. At the same time, 2021 saw a surging economy and many new job opportunities to create a talent-hungry market. Many workers could have been motivated to take a new opportunity to increase their salary or receive other benefits such as more flexibility.

    Annual turnover rate for all us employees on the rise

    • 20% – Jan.-Aug. 2020, Dipped from 22% in 2019
    • 25% Jan.-Aug. 2021, New record high
    • Data from Visier Inc.

    When you can’t pay them, develop them

    IT may be less affected than other departments by this trend. Info-Tech’s 2022 IT Talent Trends Report shows that on average, estimated turnover rate in IT is lower than the rest of the organization. Almost half of respondents estimated their organization’s voluntary turnover rate was 10% or higher. Only 30% of respondents estimate that IT’s voluntary turnover rate is in the same range. However, CIOs working in industries with the highest turnover rates will have to work to keep their workers engaged and satisfied, as IT skills are easily transferred to other industries.

    49% ranked “enabling learning & development within IT” as high priority, more than any other single challenge. (IT Talent Trends 2022 Survey, N=227)

    A bar chart of 'Industries with highest turnover rates (%)' with 'Leisure and Hospitality' at 6.4%, 'Trade, Transportation & Utilities' at 3.6%, 'Professional and Business' at 3.3%, and 'Other Services' at 3.1%. U.S. Bureau of Labor Statistics, 2022.

    Jeff Previte

    Executive Vice-President of IT, CrossCountry Mortgage

    “We have to get to know the individual at a personal level … Not just talking about the business, but getting to know the person."

    Photo of Jeff Previte, Executive Vice-President of IT, CrossCountry Mortgage.

    Listen to the Tech Insights podcast:
    How a financial services company dodged ‘The Great Resignation’

    Internal interpretation: CrossCountry Mortgage

    • May 2019
      Jeff Previte joins Cleveland, Ohio-based CrossCountry Mortgage in the CIO role. The company faces a challenge with employee turnover, particularly in IT. The firm is a sales-focused organization and saw its turnover rate reach as high as 60%. Yet Previte recognized that IT had some meaningful goals to achieve and would need to attract – and retain – some higher caliber talent. His first objective in his new role was to meet with IT employees and business leadership to set priorities.
    • July 2019
      Previte takes a “people-first” approach to leadership and meets his staff face-to-face to understand their personal situations. He sets to work on defining roles and responsibilities in the organization, spending about a fifth of his time on defining the strategy.
    • June 2020
      Previte assigned his leadership team to McLean & Company’s Design an Impactful Employee Development Program. From there, the team developed a Salesforce tool called the Career Development Workbook. “We had some very passionate developers and admins that wanted to build a home-grown tool,” he says. It turns McLean & Company’s process into a digital tool employees can use to reflect on their careers and explore their next steps. It helps facilitate development conversations with managers.
    • January 2021
      CrossCountry Mortgage changes its approach to career development activities. Going to external conferences and training courses is reduced to just 30% of that effort. The rest is by doing hands-on work at the company. Previte aligned with his executives and road-mapped IT projects annually. Based on employee’s interests, opportunities are found to carve out time from usual day-to-day activities to spend time on a project in a new area. When there’s a business need, someone internally can be ready to transition roles.
    • June 2021
      In the two years since joining the company, Previte has reduced the turnover rate to just 12%. The IT department has grown to more adequately meet the needs of the business and employees are engaged with more opportunities to develop their careers. Instead of focusing on compensation, Previte focused more on engaging employees with a developmentally dedicated environment and continuous hands-on learning.

    “It’s come down to a culture shift. Folks have an idea of where we’re headed as an organization, where we’re headed as an IT team, and how their role contributes to that.” (Jeff Previte, EVP of IT, CrossCountry Mortgage)

    Implications: Organization, Process, Technology

    External

    • Organization – A high priority is being placed on improving IT’s maturity through its talent. Enabling learning and development in IT, enabling departmental innovation, and recruiting are the top three highest priorities according to IT Talent Trends 2022 survey responses.
    • Process – Recruiting is more challenging for industries that operate primarily onsite, according to McLean & Company's 2022 HR Trends Report. They face more challenges attracting applications, more rejected offers, and more candidate ghosting compared to remote-capable industries.
    • Technology – Providing a great employee experience through digital tools is more important as many organizations see a mix of workers in the office and at home. These tools can help connect colleagues, foster professional development, and improve the candidate experience.

    Internal

    • Organization – CrossCountry Mortgage faced a situation where IT employees did not have clarity on their roles and responsibilities. In terms of salary, it wasn’t offering at the high end compared to other employers in Cleveland.
    • Process – To foster a culture of growth and development, CrossCountry Mortgage put in place a performance assessment system that encouraged reflection and goal setting, aided by collaboration with a manager.
    • Technology – The high turnover rate was limiting CrossCountry Mortgage from achieving the level of maturity it needed to support the company’s goals. It ingrained its new PA process with a custom build of a Salesforce tool.

    Resources Applied

    Show me the money

    Almost six in ten Talent Trends survey respondents identified salary and compensation as the reason that employees resigned in the past year. Organizations looking to engage employees must first pay a fair salary according to market and industry conditions.

    Build me up

    Professional development and opportunity for innovative work are the next two most common reasons for resignations. Organizations must ensure they create enough capacity to allow workers time to spend on development.

    “Building our own solution created an element of engagement. There was a sense of ownership that the team had in thinking through this.” (Jeff Previte, CrossCountry Mortgage)

    CrossCountry Mortgage

    • Executive time: CIO spends 10-20% of his time on activities related to designing the approach.
    • Leveraged memberships with Info-Tech Research Group and McLean & Company to define professional development process.
    • Internal IT develops automated workflow in Salesforce.
    • Hired additional IT staff to build out overall capacity and create time for development activities.

    Outcomes at CrossCountry Mortgage

    Engaged IT workforce

    The Great Maturation: IT staff turnover rate dropped to 10-12% and IT talent is developing on the job to improve the department’s overall skill level. More IT staff on hand and more engaged workers mean IT can deliver higher maturity level results.

    Alignment achieved: Connecting IT’s initiatives to the vision of the C-suite creates a clear purpose for IT in its initiatives. Staff understand what they need to achieve to progress their careers and can grow while they work.

    Photo of employees from CrossCountry Mortgage assisting with a distribution event.
    Employees from CrossCountry Mortgage headquarters assist with a drive-thru distribution event for the Cleveland Food Bank on Dec. 17, 2021. (Image courtesy of CrossCountry Mortgage.)

    From Priorities to Action

    Staff retention is a leadership priority

    The Great Resignation trend is bringing attention to employee engagement and staff retention. IT departments are busier than ever during the pandemic as they work overtime to keep up with a remote workforce and new security threats. At the same time, IT talent is among the most coveted on the market.

    CIOs need to develop a people-first approach to improve the employee experience. Beyond compensation, IT workers need clarity in terms of their career paths, a direct connection between their work and the goals of the organization, and time set aside for professional development.

    Info-Tech’s 2021 benchmark for “Leadership, Culture & Values” shows that most organizations rate this capability very highly (9) but see room to improve on their effectiveness (6.9).

    Take the next step

    IT Talent Trends 2022
    See how IT talent trends are shifting through the pandemic and understand how themes like The Great Resignation has impacted IT.

    McLean & Company’s Modernize Performance Management
    Customize the building blocks of performance management to best fit organizational needs to impact individual and organizational performance, productivity, and engagement.

    Redesign Your IT Organizational Structure
    Define future-state work units, roles, and responsibilities that will enable the IT organization to complete the work that needs to be done.

    “Leadership, Culture & Values” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'Leadership, Culture & Values' gap between importance and effectiveness. The difference is marked as Delta 2.1.

    Design an automation platform

    Priority 04 | APO04 Innovation

    Position yourself to buy or build a platform that will enable new automation opportunities through seamless integration.

    Build it or buy it, but platform integration can yield great benefits

    Necessity is the mother of innovation

    When it’s said that digital transformation accelerated during the pandemic, what’s really meant is that processes that were formerly done manually became automated through software. In responses to the Tech Trends survey, CIOs say digital transformation was more of a focus during the pandemic, and eight in ten CIOs also say they shifted more than 20% of their organization’s processes to digital during the pandemic. Automating tasks through software can be called digitalization.

    Most organizations became more digitalized during the pandemic. But how they pursued it depends on their IT maturity. For digital laggards, partnering with a technology services platform is the path of least resistance. For sophisticated innovators, they can consider building a platform to address the specific needs of their business process. Doing so requires the foundation of an existing “digital factory” or innovation arm where new technologies can be tested, proofs of concept developed, and external partnerships formed. Patience is key with these efforts, as not every investment will yield immediate returns and some will fail outright.

    Build it or buy it, platform participants integrate with their existing systems through application programming interfaces (APIs). Organizations should determine their platform strategies based on maturity, then look to integrate the business processes that will yield the most gains.

    What role should you play in the platform ecosystem?

    A table with levels on the maturity ladder laid out as a sprint. Column headers are maturity levels 'Struggle', 'Support', 'Optimize', 'Expand', and 'Transform', row headers are 'Maturity' and 'Role'. Roles are assigned to one or many levels. 'Improve' is solely under Struggle. 'Integrate' spans from Support to Transform. 'Buy' spans Support to Expand. 'Build' begins midway through Expand and all of Transform. 'Partner' spans from Optimize to halfway through Transform.

    68% of CIOs say digital transformation became much more of a focus for their organization during the pandemic (Info-Tech Tech Trends 2022 Survey)

    Bob Crozier

    Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE

    "Smart contracts are really just workflows between counterparties."

    Photo of Bob Crozier, Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE.

    Listen to the Tech Insights podcast:
    How Allianz took a blockchain platform from pilot to 1 million transactions

    Internal interpretation: Allianz Technology

    • 2015
      After smart contracts are demonstrated on the Ethereum blockchain, Allianz and other insurers recognize the business value. There is potential to use the capability to administer a complex, multi-party contract where the presence of the reinsurer in the risk transfer ecosystem is required. Manual contracts could be turned into code and automated. Allianz organized an early proof of concept around a theoretical pandemic excessive loss contract.
    • 2018
      Allianz Chief Architect Bob Crozier is leading the Global Blockchain Center of Competence for Allianz. They educate Allianz on the value of blockchain for business. They also partner with a joint venture between the Technology University of Munich and the state of Bavaria. A cohort of Masters students is looking for real business problems to solve with open-source distributed ledger technology. Allianz puts its problem statement in front of the group. A student team presents a proof of concept for an international motor insurance claims settlement and it comes in second place at a pitch day competition.
    • 2019
      Allianz brings the concept back in-house, and its business leaders return to the concept. Startup Luther Systems is engaged to build a minimum-viable product for the solution, with the goal being a pilot involving three or four subsidiaries in different countries. The Blockchain Center begins communicating with 25 Allianz subsidiaries that will eventually deploy the platform.
    • 2020
      Allianz is in build mode on its international motor insurance claims platform. It leverages its internal Dev/SecOps teams based in Munich and in India.
    • May 2021
      Allianz goes live with its new platform on May 17, decommissioning its old system and migrating all live claims data onto the new blockchain platform. It sees 400 concurrent users go live across Europe.
    • January 2022
      Allianz mines its one-millionth block to its ledger on Jan. 19, with each block representing a peer-to-peer transaction across its 25 subsidiaries in different countries. The platform has settled hundreds of millions of dollars.

    Stock photo of two people arguing over a car crash.

    Implications: Organization, Process, Technology

    External

    • Organization – To explore emerging technologies like blockchain, organizations need staff that are accountable for innovation and have leeway to develop proofs of concept. External partners are often required to bring in fresh ideas and move quickly towards an MVP.
    • Process – According to the Tech Trends 2022 survey, 84% of CIOs consider automation a high-value digital capability, and 77% say identity verification is a high-value capability. A blockchain platform using smart contracts can deliver those.
    • Technology – The Linux Foundation’s Hyperledger Fabric is an open-source blockchain technology that’s become popular in the financial industry for its method of forming consensus and its modular architecture. It’s been adopted by USAA, MasterCard, and PayPal. It also underpins the IBM Blockchain Platform and is supported by Azure Blockchain.

    Internal

    • Organization – Allianz is a holding company that owns Allianz Technology and 25 operating entities across Europe. It uses the technology arm to innovate on the business process and creates shared platforms that its entities can integrate with to automate across the value chain.
    • Process – Initial interest in smart contracts on blockchain were funneled into a student competition, where a proof of concept was developed. Allianz partnered with a startup to develop an MVP, then developed the platform while aligning with its business units ahead of launch.
    • Technology – Allianz built its blockchain platform on Hyperledger Fabric because it was a permissioned system, unlike other public permissionless blockchains such as Ethereum, and because its mining mechanism was much more energy efficient compared to other blockchains using Proof of Work consensus models.

    Resources Applied

    Time to innovate

    Exploring emerging technology for potential use cases is difficult for staff tasked with running day-to-day operations. Organizations serious about innovation create a separate team that can focus on “moonshot” projects and connect with external partners.

    Long-term ROI

    Automation of new business processes often requires a high upfront initial investment for a long-term efficiency gain. A proof of concept should demonstrate clear business value that can be repeated often and for a long period.

    “My next project has to deliver in the tens of millions of value in return. The bar is high and that’s what it should be for a business of our size.” (Bob Crozier, Allianz)

    Allianz

    • Several operating entities from different countries supplied subject matter expertise and helped with the testing process.
    • Allianz Technology team has eight staff members. It is augmented by Luther Systems and the team at industry group B3i.
    • Funding of less than $5 million to develop. Dev team continues to add improvements.
    • Operating requires just one full-time employee plus infrastructure costs, mostly for public cloud hosting.

    Outcomes at Allianz

    From insurer to platform provider

    Deliver your own SaaS: Allianz Technology built its blockchain-based claims settlement platform and its subsidiaries consume it as software as a service. The platform runs on a distributed architecture across Europe, with each node running the same version of the software. Operating entities can also integrate their own systems to the platform via APIs and further automate business processes such as billing.

    Ready to scale: After processing one million transactions, the international claims settlement platform is proven and ready to add more participants. Crozier sees auto repair shops and auto manufacturers as the next logical users.

    Stock photo of Blockchain.
    Allianz is a shareholder of the Blockchain Insurance Industry Initiative (B3i). It is providing a platform used by a group of insurance companies in the commercial and reinsurance space.

    When should we use blockchain? THREE key criteria:

    • Redundant processes
      Different entities follow the same process to achieve the desired outcome.
    • Audit trail
      Accountability in the decision making must be documented.
    • Reconciliation
      Parties need to be able to resolve disputes by tracing back to the truth.

    From Priorities to Action

    It’s a build vs. buy question for platforms

    Allianz was able to build a platform for its group of European subsidiaries because of its established digital factory and commitment to innovation. Allianz Technology is at the “innovate” level of IT maturity, allowing it to create a platform that subsidiaries can integrate with via APIs. For firms that are lower on the IT maturity scale, buying a platform solution is the better path to automation. These firms will be concerned with integrating their legacy systems to platforms that can reduce the friction of their operating environments and introduce modern new capabilities.

    From Info-Tech’s Build a Winning Business Process Automation Playbook

    An infographic comparing pros and cons of Build versus Buy. On the 'Build: High Delivery Capacity & Capability' side is 'Custom Development', 'Data Integration', 'AI/ML', 'Configuration', 'Native Workflow', and 'Low & No Code'. On the 'Buy: Low Delivery Capacity & Capability' side is 'Outsource Development', 'iPaaS', 'Chatbots', 'iBPMS & Rules Engines', 'RPA', and 'Point Solutions'.

    Take the next step

    Accelerate Your Automation Processes
    Integrate automation solutions and take the first steps to building an automation suite.

    Build Effective Enterprise Integration on the Back of Business Process
    From the backend to the frontlines – let enterprise integration help your business processes fly.

    Evolve Your Business Through Innovation
    Innovation teams are tasked with the responsibility of ensuring that their organizations are in the best position to succeed while the world is in a period of turmoil, chaos, and uncertainty.

    “Innovation” gap between importance and effectiveness Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'Innovation' gap between importance and effectiveness. The difference is marked as Delta 2.1.

    Prepare to report on new environmental, social, and governance (ESG) metrics

    Priority 05 | ITRG06 Business Intelligence and Reporting

    Be ready to either lead or support initiatives to meet the criteria of new ESG reporting mandates and work toward disclosure reporting solutions.

    Time to get serious about ESG

    What does CSR or ESG mean to a CIO?

    Humans are putting increasing pressure on the planet’s natural environment and creating catastrophic risks as a result. Efforts to mitigate these risks have been underway for the past 30 years, but in the decade ahead regulators are likely to impose more strict requirements that will be linked to the financial value of an organization. Various voluntary frameworks exist for reporting on environmental, social, and governance (ESG) or corporate social responsibility (CSR) metrics. But now there are efforts underway to unify and clarify those standards.

    The most advanced effort toward a global set of standards is in the environmental area. At the United Nations’ COP26 summit in Scotland last November, the International Sustainability Standards Board (ISSB) announced its headquarters (Frankfurt) and three other international office locations (Montreal, San Francisco, and London) and its roadmap for public consultations. It is working with an array of voluntary standards groups toward a consensus.

    In Info-Tech’s 2022 Tech Trends survey, two-thirds of CIOs say their organization is committed to reducing greenhouse gas emissions, yet only 40% say their organizational leadership is very concerned with reducing those emissions. CIOs will need to consider how to align organizational concern with internal commitments and new regulatory pressures. They may investigate new real-time reporting solutions that could serve as a competitive differentiator on ESG.

    Standards informing the ISSB’s global set of climate standards

    A row of logos of organizations that inform ISSB's global set of climate standards.

    67% of CIOs say their organization is committed to reducing greenhouse gases, with one-third saying that commitment is public. (Info-Tech Tech Trends 2022 Survey)

    40% of CIOs say their organizational leadership is very concerned with reducing greenhouse gas emissions.

    David W. Dorman

    Chairman of the board, CVS Health

    “ESG is a question of what you do in the microcosm of your company to make sure there is a clear, level playing field – that there is a color-blind, gender-blind meritocracy available – that you are aware that not in every case can you achieve that without really focusing on it. It’s not going to happen on its own. That’s why our commitments have real dollars behind them and real focus behind them because we want to be the very best at doing them.”

    Photo of David W. Dorman, Chairman of the Board, CVS Health.

    Listen to the Tech Insights podcast:
    CVS Health chairman David Dorman on healthcare's hybrid future

    Internal interpretation: CVS Health

    CVS Health established a new steering committee of senior leaders in 2020 to oversee ESG commitments. It designs its corporate social responsibility strategy, Transform Health 2030, by aligning company activities in four key areas: healthy people, healthy business, healthy planet, and healthy community. The strategy aligns with the United Nations’ Sustainable Development Goals. In alignment with these goals, CVS identifies material topics where the company has the most ability to make an impact. In 2020, its top three topics were:

    1. Access to quality health care
    2. Patient and customer safety
    3. Data protection and privacy
    Material Topic
    Access to quality health care
    Material Topic
    Patient and customer safety
    Material Topic
    Data protection and privacy
    Technology Initiative
    MinuteClinic’s Virtual Collaboration for Nurses

    CVS provided Apple iPads compliant with the Health Insurance Portability and Accountability Act (HIPAA) to clinics in a phased approach, providing training to more than 700 providers in 26 states by February 2021. Nurses could use the iPads to attend virtual morning huddles and access clinical education. Nurses could connect virtually with other healthcare experts to collaborate on delivering patient care in real-time. The project was able to scale across the country through a $50,000 American Nurses Credentialing Center Pathway Award. (Wolters Kluwer Health, Inc.)

    Technology Initiative
    MinuteClinic’s E-Clinic

    MinuteClinics launched this telehealth solution in response to the pandemic, rolling it out in three weeks. The solution complemented video visits delivered in partnership with the Teladoc platform. Visits cost $59 and are covered by Aetna insurance plans, a subsidiary of CVS Health. It hosted more than 20,000 E-Clinic visits through the end of 2020. CVS connected its HealthHUBs to the solution to increase capacity in place of walk-in appointments and managed patients via phone for medication adherence and care plans. CVS also helped behavioral health providers transition patients to virtual visits. (CVS Health)

    Technology Initiative
    Next Generation Authentication Platform

    CVS patented this solution to authenticate customers accessing digital channels. It makes use of the available biometrics data and contextual information to validate identity without the need for a password. CVS planned to extend the platform to voice channels as well, using voiceprint technology. The solution prevents unauthorized access to sensitive health data while providing seamless access for customers. (LinkedIn)

    Implications: Organization, Process, Technology

    External

    • Organization – Since the mid-2010s, younger investors have demonstrated reliance on ESG data when making investment decisions, resulting in the creation of voluntary standards that offered varied approaches. Organizations in ESG exchange-traded funds are outperforming the overall S&P 500 (S&P Global Market Intelligence).
    • Process – Organizations are issuing ESG reports today despite the absence of clear rules to follow for reporting results. With regulators expected to step in to establish more rigid guidelines, many organizations will need to revisit their approach to ESG reports.
    • Technology – Real-time reporting of ESG metrics will become a competitive advantage before 2030. Engineering a solution that can alert organizations to poor performance on ESG measures and allow them to respond could avert losing market value.

    Internal

    • Organization – CVS Health established an ESG Steering Committee in 2020 composed of senior leaders including its chief governance officers, chief sustainability officer, chief risk officer, and controller and SVP of investor relations. It is supported by the ESG Operating Committee.
    • Process – CVS conducts a materiality assessment in accordance with Global Reporting Initiative standards to determine the most significant ESG impacts it can make and what topics most influence the decisions of stakeholders. It engages with various stakeholder groups on CSR topics.
    • Technology – CVS technology initiatives during the pandemic focused on supporting patients and employees in collaborating on health care delivery using virtual solutions, providing rich digital experiences that are easily accessible while upholding high security and privacy standards.

    Resources Applied

    Lack of commitment

    While 83% of businesses state support for the Sustainable Development Goals outlined by the Global Reporting Initiative (GRI), only 40% make measurable commitments to their goals.

    Show your work

    The GRI recommends organizations not only align their activities with sustainable development goals but also demonstrate contributions to specific targets in reporting on the positive actions they carry out. (GRI, “State of Progress: Business Contributions to the SDGS.”)

    “We end up with a longstanding commitment to diversity because that’s what our customer base looks like.” (David Dorman, CVS Health)

    CVS Health

    • The MinuteClinic Virtual Collaboration solution was piloted in Houston, demonstrated success, and won additional $50,000 funding from the Pathway to Excellence Award to scale the program across the country (Wolters Kluwer Health, Inc.).
    • The Next-Gen Authentication solution is provided by the vendor HYPR. It is deployed to ten million users and looking to scale to 30 million more. Pricing for enterprises is quoted at $1 per user, but volume pricing would apply to CVS (HYPR).

    Outcomes at CVS Health

    Delivering on hybrid healthcare solutions

    iPads for collaboration: Healthcare practitioners in the MinuteClinic Virtual Collaboration initiative agreed that it improved the use of interprofessional teams, working well virtually with others, and improved access to professional resources (Wolters Kluwer Health, Inc.)

    Remote healthcare: Saw a 400% increase in MinuteClinic virtual visits in 2020 (CVS Health).

    Verified ID: The Next Generation Authentication platform allowed customers to register for a COVID-19 vaccination appointment. CVS has delivered more than 50 million vaccines (LinkedIn).

    Stock photo of a doctor with an iPad.
    CVS Health is making use of digital channels to connect its customers and health practitioners to a services platform that can supplement visits to a retail or clinic location to receive diagnostics and first-hand care.

    From Priorities to Action

    Become your organization’s ESG Expert

    The risks posed to organizations and wider society are becoming more severe, driving a transition from voluntary frameworks for ESG goals to a mandatory one that’s enforced by investors and governments. Organizations will be expected to tie their core activities to a defined set of ESG goals and maintain a balance sheet of their positive and negative impacts. CIOs should become experts in ESG disclosure requirements and recommend the steps needed to meet or exceed competitors’ efforts. If a leadership vacuum for ESG accountability exists, CIOs can either seek to support their peers that are likely to become accountable or take a leadership role in overseeing the area. CIOs should start working toward solutions that deliver real-time reporting on ESG goals to make reporting frictionless.

    “If you don’t have ESG oversight at the highest levels of the company, it won’t wind up getting the focus. That’s why we review it at the Board multiple times per year. We have an annual report, we compare how we did, what we intended to do, where did we fall short, where did we exceed, and where we can run for daylight to do more.” (David Dorman, CVS Health)

    Take the next step

    ESG Disclosures: How Will We Record Status Updates on the World We Are Creating?
    Prepare for the era of mandated environmental, social, and governance disclosures.

    Private Equity and Venture Capital Growing Impact of ESG Report
    Learn about how the growing impact of ESG affects both your organization and IT specifically, including challenges and opportunities, with expert assistance.

    “Business Intelligence and Reporting” gap between importance and effectiveness
    Info-Tech Research Group Management and Governance Diagnostic Benchmark 2021

    A bar chart illustrating the 'BI and Reporting' gap between importance and effectiveness. The difference is marked as Delta 2.4.

    The Five Priorities

    Priorities to compete in the digital economy

    1. Reduce Friction in the Hybrid Operating Model
    2. Improve Your Ransomware Readiness
    3. Support an Employee-Centric Retention Strategy
    4. Design an Automation Platform
    5. Prepare to Report on New Environmental, Social, and Governance Metrics

    Contributing Experts

    Elizabeth Clark

    CIO, Harvard Business School
    Photo of Elizabeth Clark, CIO, Harvard Business School.

    Jeff Previte

    Executive Vice-President of IT, CrossCountry Mortgage
    Photo of Jeff Previte, Executive Vice-President of IT, CrossCountry Mortgage.

    Bob Crozier

    Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE
    Photo of Bob Crozier, Chief Architect, Allianz Technology & Global Head of Blockchain, Allianz Technology SE.

    David W. Dorman

    Chairman of the Board, CVS Health
    Photo of David W. Dorman, Chairman of the Board, CVS Health.

    Info-Tech’s internal CIO panel contributors

    • Bryan Tutor
    • John Kemp
    • Mike Schembri
    • Janice Clatterbuck
    • Sandy Silk
    • Sallie Wright
    • David Wallace
    • Ken McGee
    • Mike Tweedie
    • Cole Cioran
    • Kevin Tucker
    • Angelina Atkins
    • Yakov Kofner
    Photo of an internal CIO panel contributor. Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.
    Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.
    Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.Photo of an internal CIO panel contributor.

    Thank you for your support

    Logo for the Blockchain Research Institute.
    Blockchain Research Institute

    Bibliography – CIO Priorities 2022

    “2020 Corporate Social Responsibility Report.” CVS Health, 2020, p. 127. Web.

    “Adversary: Doppel Spider - Threat Actor.” Crowdstrike Adversary Universe, 2021. Accessed 29 Dec. 2021.

    “Aetna CVS Health Success Story.” HYPR, n.d. Accessed 6 Feb. 2022.

    Baig, Aamer. “The CIO agenda for the next 12 months: Six make-or-break priorities.” McKinsey Digital, 1 Nov. 2021. Web.

    Ball, Sarah, Kristene Diggins, Nairobi Martindale, Angela Patterson, Anne M. Pohnert, Jacinta Thomas, Tammy Todd, and Melissa Bates. “2020 ANCC Pathway Award® winner.” Wolters Kluwer Health, Inc., 2021. Accessed 6 Feb. 2022.

    “Canadian Universities Propose Designs for a Central Bank Digital Currency.” Bank of Canada, 11 Feb. 2021. Accessed 14 Dec. 2021.

    “Carbon Sequestration in Wetlands.” MN Board of Water and Soil Resources, n.d. Accessed 15 Nov. 2021.

    “CCM Honored as a NorthCoast 99 Award Winner.” CrossCountry Mortgage, 1 Dec. 2021. Web.

    Cheek, Catherine. “Four Things We Learned About the Resignation Wave–and What to Do Next.” Visier Inc. (blog), 5 Oct. 2021. Web.

    “Companies Using Hyperledger Fabric, Market Share, Customers and Competitors.” HG Insights, 2022. Accessed 25 Jan. 2022.

    “IFRS Foundation Announces International Sustainability Standards Board, Consolidation with CDSB and VRF, and Publication of Prototype Disclosure Requirements.” IFRS, 3 Nov. 2021. Web.

    “IT Priorities for 2022: A CIO Report.” Mindsight, 28 Oct. 2021. Web.

    “Job Openings and Labor Turnover Survey.” Databases, Tables & Calculators by Subject, U.S. Bureau of Labor Statistics, 2022. Accessed 9 Feb. 2022.

    Kumar, Rashmi, and Michael Krigsman. “CIO Planning and Investment Strategy 2022.” CXOTalk, 13 Sept. 2021. Web.

    Leonhardt, Megan. “The Great Resignation Is Hitting These Industries Hardest.” Fortune, 16 Nov. 2021. Accessed 7 Jan. 2022.

    “Most companies align with SDGs – but more to do on assessing progress.” Global Reporting Initiative (GRI), 17 Jan. 2022. Web.

    Navagamuwa, Roshan. “Beyond Passwords: Enhancing Data Protection and Consumer Experience.” LinkedIn, 15 Dec. 2020.

    Ojo, Oluwaseyi. “Achieving Digital Business Transformation Using COBIT 2019.” ISACA, 19 Aug. 2019. Web.

    “Priority.” Lexico.com, Oxford University Press, 2021. Web.

    Riebold, Jan, and Yannick Bartens. “Reinventing the Digital IT Operating Model for the ‘New Normal.’” Capgemini Worldwide, 3 Nov. 2020. Web.

    Samuels, Mark. “The CIO’s next priority: Using the tech budget for growth.” ZDNet, 1 Sept. 2021. Accessed 1 Nov. 2021.

    Sayer, Peter. “Exclusive Survey: CIOs Outline Tech Priorities for 2021-22.” CIO, 5 Oct. 2021. Web.

    Shacklett, Mary E. “Where IT Leaders Are Likely to Spend Budget in 2022.” InformationWeek, 10 Aug. 2021. Web.

    “Table 4. Quits Levels and Rates by Industry and Region, Seasonally Adjusted - 2021 M11 Results.” U.S. Bureau of Labor Statistics, Economic News Release, 1 Jan. 2022. Accessed 7 Jan. 2022.

    “Technology Priorities CIOs Must Address in 2022.” Gartner, 19 Oct. 2021. Accessed 1 Nov. 2021.

    Thomson, Joel. Technology, Talent, and the Future Workplace: Canadian CIO Outlook 2021. The Conference Board of Canada, 7 Dec. 2021. Web.

    “Trend.” Lexico.com, Oxford University Press, 2021. Web.

    Vellante, Dave. “CIOs signal hybrid work will power tech spending through 2022.” SiliconANGLE, 25 Sept. 2021. Web.

    Whieldon, Esther, and Robert Clark. “ESG funds beat out S&P 500 in 1st year of COVID-19; how 1 fund shot to the top.” S&P Global Market Intelligence, April 2021. Accessed Dec. 2021.

    State of Hybrid Work in IT

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    Hybrid work is here, but there is no consensus among industry leaders on how to do it right. IT faces the dual challenge of supporting its own employees while enabling the success of the broader organization. In the absence of a single best practice to adopt, how can IT departments make the right decisions when it comes to the new world of hybrid?

    Our Advice

    Critical Insight

    • Don’t make the mistake of emulating the tech giants, unless they are your direct competition. Instead, look to organizations that have walked your path in terms of scope, organizational goals, industry, and organizational structure. Remember, your competitors are not just those who compete for the same customers but also those who compete for your employees.
    • Hybrid and remote teams require more attention, connection, and leadership from managers. The shift from doing the day-to-day to effectively leading is critical for the success of nontraditional work models. As hybrid and remote work become engrained in society, organizations must ensure that the concept of the “working manager” is as obsolete as the rotary telephone.

    Impact and Result

    Read this concise report to learn:

    • What other IT organizations are doing in the new hybrid world.
    • How hybrid has impacted infrastructure, operations, and business relations.
    • How to succeed at building a highly effective hybrid team.
    • How Info-Tech can help you make hybrid an asset for your IT department.

    State of Hybrid Work in IT Research & Tools

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

    1. State of Hybrid Work in IT: A Trend Report – A walkthrough of the latest data on the impact of the hybrid work revolution in IT.

    Read this report to learn how IT departments are using the latest trends in hybrid work for greater IT effectiveness. Understand what work models are best for IT, how IT can support a remote organization, and how hybrid work changes team dynamics.

    • State of Hybrid Work in IT: A Trends Report

    Infographic

    Further reading

    State of Hybrid Work in IT: A Trend Report

    When tech giants can’t agree and best practices change by the minute, forge your own path to your next normal.

    Hybrid is here. Now how do we do this?

    The pandemic has catapulted hybrid work to the forefront of strategic decisions an organization needs to make. According to our State of Hybrid Work in IT survey conducted in July of 2022, nearly all organizations across all industries are continuing some form of hybrid or remote work long-term (n=518). Flexible work location options are the single greatest concern for employees seeking a new job. IT departments are tasked with not only solving hybrid work questions for their own personnel but also supporting a hybrid-first organization, which means significant changes to technology and operations.

    Faced with decisions that alter the very foundation of how an organization functions, IT leaders are looking for best practices and coming up empty. The world of work has changed quickly and unexpectedly. If you feel you are “winging it” in the new normal, you are not alone.

    95% of organizations are continuing some form of hybrid or remote work.

    n=518

    47% of respondents look at hybrid work options when evaluating a new employer, vs. 46% who look at salary.

    n=518

    Hybrid work model decision tree

    Your organization, your employees, your goals – your hybrid work

    The days of a “typical” workplace have passed. When it comes to the new world of hybrid work, there is no best-of-breed example to follow.

    Among the flood of contradictory decisions made by industry leaders, your IT organization must forge its own path, informed by the needs of your employees and your organizational goals.

    All IT work models can support the broader organization. However, IT is more effective in a hybrid work mode.

    Stay informed on where your industry is headed, but learn from, rather than follow, industry leaders.

    All industries reported primarily using partial, balanced & full hybrid work models.

    All industries reported some fully remote work, ranging from 2-10% of organizations surveyed.

    Construction and healthcare & life sciences did not require any fully in-office work. Other industries, between 1-12% required fully in-office work.

    The image contains a screenshot of the Enablement of Organizational Goals.

    Move beyond following tech giants

    The uncomfortable truth about hybrid work is that there are many viable models, and the “best of breed” depends on who you ask. In the post-pandemic workspace, for every work location model there is an industry leader that has made it functional. And yet this doesn’t mean that every model will be viable for your organization.

    In the absence of a single best practice, rely on an individualized cost-benefit assessment rooted in objective feasibility criteria. Every work model – whether it continues your status quo or overhauls the working environment – introduces risk. Only in the context of your particular organization does that risk become quantifiable.

    Don’t make the mistake of emulating the tech giants, unless they are your direct competition. Instead, look to organizations that have walked your path in terms of scope, organizational goals, industry, and organizational structure.

    External

    Internal

    Political

    Economic

    Social

    Technological

    Legal

    Environmental

    Operations

    Culture

    Resources

    Risk

    Benefit

    Employee Preferences

    Comparative

    Your competitors

    Info-Tech Insight

    Remember, your competitors are not just those who compete for the same customers but also those who compete for your employees.

    IT must balance commitments to both the organization and its employees

    IT has two roles: to effectively support the broader organization and to function effectively within the department. It therefore has two main stakeholder relationships: the organization it supports and the employees it houses. Hybrid work impacts both. Don't make the mistake of overweighting one relationship at the expense of the other. IT will only function effectively when it addresses both.

    Track your progress with the right metrics

    IT and the organization

    • Business satisfaction with IT
    • Perception of IT value

    Diagnostic tool: Business Vision

    IT and its employees

    • Employee engagement

    Diagnostic tool:
    Employee Engagement Surveys

    This report contains:

    1. IT and the Organization
      1. IT Effectiveness
        in a Hybrid World
      2. The Impact of Hybrid on Infrastructure & Operations
    2. IT and Its Employees
      1. What Hybrid Means for the IT Workforce
      2. Leadership for Hybrid IT Teams

    This report is based on organizations like yours

    The image contains graphs that demonstrate demographics of organizations.

    This report is based on organizations like yours

    The image contains two graphs that demonstrate a breakdown of departments in an organization.

    This report is based on organizations like yours

    The image contains two graphs that demonstrate the workforce type and operating budget.


    This report is based on organizations like yours

    The image contains two graphs that demonstrate organization maturity and effectiveness score.

    At a high level, hybrid work in IT is everywhere

    INDUSTRY

    • Arts & Entertainment (including sports)
    • Retail & Wholesale
    • Utilities
    • Transportation & Warehousing
    • Not-for-Profit (incl. professional associations)
    • Education
    • Professional Services
    • Manufacturing
    • Media, Information, Telecom & Technology
    • Construction
    • Gaming & Hospitality
    • Government
    • Healthcare & Life Sciences
    • Financial Services (incl. banking & insurance)

    ORGANIZATIONAL SIZE

    Small

    <100

    Medium

    101-5,000

    Large

    >5,000

    Employees

    POSITION LEVEL

    • Executive
    • Director
    • Supervisor/Manager
    • Student/Contractor/Team Member

    100% of industries, organizational sizes, and position levels reported some form of hybrid or remote work.

    Work model breakdown at the respondent level

    5% 21% 30% 39% 5%

    No Remote
    Work

    Partial Hybrid

    Balanced Hybrid

    Full Hybrid

    Full Remote

    Work

    n=516

    Industry lens: Work location model

    The image contains a screenshot of a graph that demonstrates the work location model with the work model breakdown at the respondent level.

    Percentage of IT roles currently in a hybrid or remote work arrangement

    The image contains a screenshot of two graphs that demonstrate the percentage of IT roles currently in a hybrid or remote work arrangement.

    Work location model by organization size

    The image contains a screenshot of a graph that demonstrates work location model by organization size.

    Hybrid work options

    The image contains a screenshot of two pie graphs that demonstrate hybrid work options.

    Expense reimbursement

    28% 27% 22% 26% 13% 4%

    None

    Internet/home phone

    Just internet

    Home office setup

    Home utilities

    Other

    NOTES

    n=518

    Home office setup: One-time lump-sum payment

    Home utilities: Gas, electricity, lights, etc.

    Other: Office supplies, portion of home rent/mortgage payments, etc.

    01 TECHNOLOGY

    IT and the Organization

    Section 1

    The promise of hybrid work for IT department effectiveness and the costs of making it happen

    In this section:

    1. IT Effectiveness in a Hybrid World
    2. The Impact of Hybrid on Infrastructure & Operations

    Hybrid work models in IT bolster effectiveness

    IT’s effectiveness, meaning its ability to enable organizational goal attainment, is its ultimate success metric. In the post-pandemic world, this indicator is intimately tied to IT’s work location model, as well as IT’s ability to support the work location model used by the broader organization.

    In 2022, 90% of organizations have embraced some form of hybrid work (n=516). And only a small contingent of IT departments have more than 90% of roles still working completely in office, with no remote work offered (n=515).

    This outcome was not unexpected, given the unprecedented success of remote work during the pandemic. However, the implications of this work model were far less certain. Would productivity remain once the threat of layoffs had passed? Would hybrid work be viable in the long term, once the novelty wore off? Would teams be able to function collaboratively without meeting face to face? Would hybrid allow a great culture
    to continue?

    All signs point to yes. For most IT departments, the benefits of hybrid work outweigh its costs. IT is significantly more effective when some degree of remote or hybrid work is present.

    The image contains a screenshot of a graph on how hybrid work models in IT bolster effectiveness.

    n=518

    Remote Work Effectiveness Paradox

    When IT itself works fully onsite, lower effectiveness is reported (6.2). When IT is tasked with supporting fully, 100% remote organizations (as opposed to being fully remote only within IT), lower effectiveness is reported then as well (5.9). A fully remote organization means 100% virtual communication, so the expectations placed on IT increase, as do the stakes of any errors. Of note, hybrid work models yield consistent effectiveness scores when implemented at both the IT and organizational levels.

    IT has risen to the challenge of hybrid

    Despite the challenges initially posed by hybrid and remote organizations, IT has thrived through the pandemic and into this newly common workplace.

    Most organizations have experienced an unchanged or increased level of service requests and incidents. However, for the majority of organizations, service desk support has maintained (58%) or improved (35%). Only 7% of IT organizations report decreased service desk support.

    Is your service desk able to offer the same level of support compared to the pre-pandemic/pre-hybrid work model?

    The image contains a screenshot of a graph that demonstrates service desk levels.

    How has the volume of your service requests/incidents changed?

    The image contains a screenshot of a graph that demonstrates volume of service requests/incidents changed.

    Has hybrid work impacted your customer satisfaction scores?

    The image contains a graph that demonstrates if hybrid work impacted customer satisfaction scores.

    Industry lens: Volume of service requests

    It is interesting to note that service request volumes have evolved similarly across industries, mirroring the remarkable consistency with which hybrid work has been adopted across disparate fields, from construction to government.

    Of note are two industries where the volume of service requests mostly increased: government and media, information, telecom & technology.

    With the global expansion of digital products and services through the pandemic, it’s no surprise to see volumes increase for media, information, telecom & technology. With government, the shift from on premises to rapid and large-scale hybrid or remote work for administrative and knowledge worker roles likely meant additional support from IT to equip employees and end users with the necessary tools to carry out work offsite.

    How has the volume of your service requests/incidents changed?

    The image contains a screenshot of a graph that demonstrates the volume of service requests/incidents changed.

    The transition to hybrid was worth the effort

    Hybrid and remote work have been associated with greater productivity and organizational benefits since before the pandemic. During emergency remote work, doubts arose about whether productivity would be maintained under such extreme circumstances and were quickly dispelled. The promise of remote productivity held up.

    Now, cautiously entering a “new normal,” the question has emerged again. Will long-term hybrid work bring the same benefits?

    The expectations have held up, with hybrid work benefits ranging from reduced facilities costs to greater employee performance.

    Organizational hybrid work may place additional strain on IT,
    but it is clear IT can handle the challenge. And when it does,
    the organizational benefits are tremendous.

    88% of respondents reported increased or consistent Infrastructure & Operations customer satisfaction scores.

    What benefits has the organization achieved as a result of moving to a hybrid work model?

    The image contains a bar graph that demonstrates the benefits of a hybrid work model.

    n=487

    Hybrid has sped up modernization of IT processes and infrastructure

    Of the organizations surveyed, the vast majority reported significant changes to both the process and the technology side of IT operations. Four key processes affected by the move to hybrid were:

    • Incident management
    • Service request support
    • Asset management
    • Change management

    Within Infrastructure & Operations, the area with the greatest degree
    of change was network architecture (reported by 44% of respondents), followed closely by service desk (41%) and recovery workspaces and mitigations (40%).

    63% of respondents reported changes to conference room technology to support hybrid meetings.

    n=496

    IT Infrastructure & Operations changes, upgrades, and modernization

    The image contains a screenshot of a bar graph that demonstrates IT Infrastructure & Operations Changes, Upgrades, and Modernizations.

    What process(es) had the highest degree of change in response to supporting hybrid work?

    The image contains a screenshot of a bar graph that demonstrates the highest degree of change in response to supporting hybrid work.

    Hybrid has permanently changed deployment strategy

    Forty-five percent of respondents reported significant changes to deployment as a result of hybrid work, with an additional 42% reporting minor changes. Only 13% of respondents stated that their deployment processes remained unchanged following the shift to hybrid work.

    With the ever-increasing globalization of business, deployment modernization practices such as the shift to zero touch are no longer optional or a bonus. They are a critical part of business operation that bring efficiency benefits beyond just supporting hybrid work.

    The deployment changes brought on by hybrid span across industries. Even in manufacturing, with the greatest proportion of respondents reporting “no change” to deployment practices (33%), most organizations experienced some degree of change.

    Has a hybrid work model led you to make any changes to your deployment, such as zero touch, to get equipment to end users?

    The image contains a graph to demonstrate if change was possible with hybrid models.

    Industry lens: Deployment changes

    Has a hybrid work model led you to make any changes to your deployment, such as zero touch, to get equipment to end users?

    The image contains a screenshot of a graph that demonstrates deployment changes at an industry lens.

    Hybrid work has accelerated organizational digitization

    Over half of respondents reported significantly decreased reliance on printed copies as a result of hybrid. While these changes were on the horizon for many organizations even before the pandemic, the necessity of keeping business operations running during lockdowns meant that critical resources could be invested in these processes. As a result, digitization has leapt forward.

    This represents an opportunity for businesses to re-evaluate their relationships with printing vendors. Resources spent on printing can be reduced or reallocated, representing additional savings as a result of moving to hybrid. Additionally, many respondents report a willingness – and ability – from vendors to partner with organizations in driving innovation and enabling digitization.

    With respect to changes pertaining to hard copies/printers as a result of your hybrid work model:

    The image contains a screenshot of a bar graph that demonstrates how hybrid work has accelerated organizational digitization.

    Hybrid work necessitates network and communications modernization

    The majority (63%) of respondents reported making significant changes to conference room technology as a result of hybrid work. A significant proportion (30%) report that such changes were not needed, but this includes organizations who had already set up remote communication.

    An important group is the remaining 8% of respondents, who cite budgetary restrictions as a key barrier in making the necessary technology upgrades. Ensure the business case for communication technology appropriately reflects the impact of these upgrades, and reduce the impact of legacy technology where possible:

    • Recognize not just meeting efficiency but also the impact on culture, engagement, morale, and external and internal clients.
    • Connect conference room tech modernization to the overall business goals and work it into the IT strategy.
    • Leverage the scheduling flexibility available in hybrid work arrangements to reduce reliance on inadequate conference technology by scheduling in-person meetings where possible and necessary.

    Have you made changes/upgrades
    to the conference room technology to support hybrid meetings?
    (E.g. Some participants joining remotely, some participants present in a conference room)

    The image contains a screenshot of a graph that demonstrates if network and communications modernization was needed.

    How we can help

    Metrics

    Resources

    Create a Work-From-Anywhere IT Strategy

    Stabilize Infrastructure & Operations During Work-From-Anywhere

    Sustain Work-From-Home in the New Normal

    Establish a Communication & Collaboration Systems Strategy

    Modernize the Network

    Simplify Remote Deployment With Zero-Touch Provisioning

    For a comprehensive list of resources, visit
    Info-Tech’s Hybrid Workplace Research Center

    02 PEOPLE

    IT and Its Employees

    Section 2

    Cultivate the dream team in a newly hybrid world

    In this section:

    1. What Hybrid Means for the IT Workforce
    2. Leadership for IT Hybrid Teams

    Hybrid means permanent change to how IT hires

    Since before the pandemic, the intangibles of having a job that works with your lifestyle have been steadily growing in importance. Considerations like flexible work options, work-life balance, and culture are more important to employees now than they were two years ago, and employers must adapt.

    Salary alone is no longer enough to recruit the best talent, nor is it the key to keeping employees engaged and productive. Hybrid work options are the single biggest concern for IT professionals seeking new employment, just edging out salary. This means employers must not offer just some work flexibility but truly embrace a hybrid environment.

    The image contains a screenshot of several graphs that compare results from 2019 to 2021 on what is important to employees.

    What are you considering when looking at a potential employer?

    The image contains a screenshot of a bar graph that demonstrates what needs to be considered when looking at a potential employer.

    A recession may not significantly impact hybrid work decisions overall

    Declining economic conditions suggest that a talent market shift may be imminent. Moving toward a recession may mean less competition for top talent, but this doesn't mean hybrid will be left behind as a recruitment tactic.

    Just over half of IT organizations surveyed are considering expanding hybrid work or moving to fully remote work even in a recession. Hybrid work is a critical enabler of organizational success when resources are scarce, due to the productivity benefits and cost savings it has demonstrated. Organizations that recognize this and adequately invest in hybrid tools now will have equipped themselves with an invaluable tool for weathering a recession storm, should one come.

    What impact could a potential recession in the coming year have on your decisions around your work location?

    The image contains a screenshot of a graph that demonstrates the potential impact of a recession.

    Hybrid work may help small organizations in a declining economy

    The potential for a recession has a greater impact on the workforce decisions of small organizations. They likely face greater financial pressures than medium and large-sized organizations, pressures that could necessitate halting recruitment efforts or holding firm on current salaries and health benefits.

    A reliance on intangible benefits, like the continuation of hybrid work, may help offset some of negative effects of such freezes, including the risk of lower employee engagement and productivity. Survey respondents indicated that hybrid work options (47%) were slightly more important to them than salary/compensation (46%) and significantly more important than benefits (29%), which could work in favor of small organizations in keeping the critical employees needed to survive an economic downturn.

    Small

    Medium Large
    90% 82% 66%

    Currently considering some form of hiring/salary freeze or cutbacks, if a recession occurs

    NOTES

    n=520

    Small: <101 employees

    Medium: 101-5000 employees

    Large: >5,000 employees

    Hybrid mitigates the main challenge of remote work

    One advantage of hybrid over remote work is the ability to maintain an in-office presence, which provides a failsafe should technology or other barriers stand in the way of effective distance communication. To take full advantage of this, teams should coordinate tasks with location, so that employees get the most out of the unique benefits of working in office and remotely.

    Activities to prioritize for in-office work:

    • Collaboration and brainstorming
    • Team-building activities
    • Introductions and onboarding

    Activities to prioritize for remote work:

    • Individual focus time

    As a leader, what are your greatest concerns with hybrid work?

    The image contains a bar graph that demonstrates concerns about hybrid work as an employer.

    Hybrid necessitates additional effort by managers

    When it comes to leading a hybrid team, there is no ignoring the impact of distance on communication and team cohesion. Among leaders’ top concerns are employee wellbeing and the ability to pick up on signs of demotivation among team members.

    The top two tactics used by managers to mitigate these concerns center on increasing communication:

    • Staying available through instant messaging.
    • Increasing team meetings.

    Tactics most used by highly effective IT departments

    The image contains a screenshot of tactics most used by highly effective IT departments.

    Team success is linked to the number of tools at the manager’s disposal

    The most effective hybrid team management tools focus on overcoming the greatest obstacle introduced by remote work: barriers to communication and connection.

    The most effective IT organizations use a variety of tactics. For managers looking to improve hybrid team effectiveness, the critical factor is less the tactic used and more the ability to adapt their approach to their team’s needs and incorporate team feedback. As such, IT effectiveness is linked to the total number of tactics used by managers.

    IT department effectiveness

    The image contains a screenshot of a graph that demonstrates IT department effectiveness.

    Autonomy is key to hybrid team success

    Not all hybrid work models are created equal. IT leaders working with hybrid teams have many decisions to make, from how many days will be spent in and out of office to how much control employees get over which days they work remotely.

    Employee and manager preferences are largely aligned regarding the number of days spent working remotely or onsite: Two to three days in office is the most selected option for both groups, although overall manager preferences lean slightly toward more time spent in office.

    Comparison of leader and employee preference for days in-office

    The image contains a screenshot of a graph that compares leader and employee preference for days in-office.

    Do employees have a choice in the days they work in office/offsite?

    The image contains a screenshot of a graph that demonstrates if employees have a choice in the days they work in office or offsite.

    For most organizations, employees get a choice of which days they spend working remotely. This autonomy can range from complete freedom to a choice between several pre-approved days depending on team scheduling needs.

    Work is still needed to increase autonomy in hybrid teams

    Organizations’ success in establishing hybrid team autonomy varies greatly post pandemic. Responses are roughly equally split between staff feeling more, less, or the same level of autonomy as before the pandemic. Evaluated in the context of most organizations continuing a hybrid approach, this leads to the conclusion that not all hybrid implementations are being conducted equally effectively when it comes to employee empowerment.

    As an employee, how much control do you have over the decisions related to where, when, and how you work currently?

    The image contains a screenshot of a graph that demonstrates autonomy in hybrid teams.

    Connectedness in hybrid teams lags behind

    A strong case can be made for fostering autonomy and empowerment on hybrid teams. Employees who report lower levels of control than before the pandemic also report lower engagement indicators, such as trust in senior leadership, motivation, and intention to stay with the organization. On the other hand, employees experiencing increased levels of control report gains in these areas.

    The only exception to these gains is the sense of team connectedness, which employees experiencing more control report as lower than before the pandemic. A greater sense of connectedness among employees reporting decreased control may be related to more mandatory in-office time or a sense of connection over shared team-level disengagement.

    These findings reinforce the need for hybrid teams to invest in team building and communication practices and confirm that significant benefits are to be had when a sense of autonomy can be successfully instilled.

    Employees who experience less control than before the pandemic report lowered engagement indicators ... except sense of connectedness

    The image contains a screenshot of a graph that demonstrates less control, means lowered engagement.

    Employees who experience more control than before the pandemic report increased engagement indicators ... except sense of connectedness

    The image contains a screenshot of a graph that demonstrates more control, means increased engagement.

    Case study: Hybrid work at Microsoft Canada

    The Power of Intentionality

    When the pandemic hit, technology was not in question. Flexible work options had been available and widely used, and the technology to support them was in place.

    The leadership team turned their focus to ensuring their culture survived and thrived. They developed a laser-focused approach for engaging their employees by giving their leaders tools to hold conversations. The dialogue was ongoing to allow the organization to adapt to the fast pace of changing conditions.

    Every tactic, plan, and communication started with the question, “What outcome are we striving for?”

    With a clear outcome, tools were created and leaders supported to drive the desired outcome.

    “We knew we had the technology in place. Our concern was around maintaining our strong culture and ensuring continued engagement and connection with our employees.”

    Lisa Gibson, Chief of Staff, Microsoft Canada

    How we can help

    Metrics

    Resources

    Webinar: Effectively Manage Remote Teams

    Build a Better Manager: Manage Your People

    Info-Tech Leadership Training

    Adapt Your Onboarding Process to a Virtual Environment

    Virtual Meeting Primer

    For a comprehensive list of resources, visit
    Info-Tech’s Hybrid Workplace Research Center

    Recommendations

    The last two years have been a great experiment, but it’s not over.

    BE INTENTIONAL

    • Build a team charter on how and when to communicate.
    • Create necessary tools/templates.

    INVOLVE EMPLOYEES

    • Conduct surveys and focus groups.
      Have conversations to understand sentiment.

    ALLOW CHOICE

    • Provide freedom for employees to have some level of choice in hybrid arrangements.

    BE TRANSPARENT

    • Disclose the rationale.
    • Share criteria and decision making.

    Info-Tech Insight

    Hybrid and remote teams require more attention, connection, and leadership from managers. The shift from doing the day-to-day to effectively leading is critical for the success of nontraditional work models. As hybrid and remote work become engrained in society, organizations must ensure that the concept of the “working manager” is as obsolete as the rotary telephone.

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    Integrate IT Risk Into Enterprise Risk

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

    Our Advice

    Critical Insight

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

    Impact and Result

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

    Integrate IT Risk Into Enterprise Risk Research & Tools

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

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

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

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

    Infographic

    Further reading

    Integrate IT Risk Into Enterprise Risk

    Don’t fear IT risks, integrate them.

    EXECUTIVE BRIEF

    Analyst Perspective

    Having siloed risks is risky business for any enterprise.

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

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

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

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

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

    Executive Summary

    Your Challenge

    Most organizations fail to integrate IT risks into enterprise risks:

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

    Common Obstacles

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

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

    Info-Tech’s Approach

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

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

    Info-Tech Insight

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

    What is integrated risk management?

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

    Enterprise Risk Management (ERM)

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

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

    IT risk is enterprise risk

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

    Your challenge

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

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

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

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

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

    Common obstacles

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

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

    Integrating risks has its challenges

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

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

    Integrate Risk and Use It to Your Advantage

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

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

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

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

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

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

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

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

    Integrated Risk Mapping — Downside Risk Focus

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

    Integrated Risk Mapping — Downside and Upside Risk

    Third-Party Risk Example

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

    Insight Summary

    Overarching insight

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

    Govern risk strategically

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

    Assess risk maturity

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

    Manage risk

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

    Implement risk management

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

    Tactical insight

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

    Integrated risk benefits

    IT Benefits

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

    Business Benefits

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

    Measure the value of integrating risk

    • Reduce Operating Costs

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

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

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

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

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

    Make integrated risk management sustainable

    58%

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

    70%

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

    54%

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

    63%

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

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

    Assessment

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

    Assessing the organization’s risk maturity

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

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

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

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

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

    Integrated Risk Maturity Categories

    Semi-circle with colored points indicating four categories.

    1

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

    2

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

    3

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

    4

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

    Maturity should inform your approach to risk management

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

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

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

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

    Integrated Risk Maturity Assessment

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

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

    Integrated Risk Maturity Assessment

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

    Sample of the Integrated Risk Maturity Assessment deliverable.

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

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

    Document Business Goals and Capabilities for Your IT Strategy

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    • Parent Category Name: IT Strategy
    • Parent Category Link: /it-strategy
    • As a strategic driver, IT needs to work with the business. Yet, traditionally IT has not worked hand-in-hand with the business. IT does not know what information it needs from the business to execute on its initiatives.
    • A faster time to new investment decisions mean that IT needs a repeatable and efficient process to understand what the business needs.
    • CIOs must execute strategic initiatives to create an IT function that can support the business. Most CIOs fail because of low business support.

    Our Advice

    Critical Insight

    • Understanding the business context is a must for all strategic IT initiatives. At its core, each strategic IT project requires answers to a specific set of questions regarding the business.
    • An effective CIO understands which part of the business context applies to which strategic IT project and, in turn, what questions to ask to uncover those insights.

    Impact and Result

    • Uncover what IT knows and needs to know about the business context. This is a necessary first step to begin each of Info-Tech’s strategic IT initiatives, which any CIO should complete.
    • Conduct efficient and repeatable business context discovery activities to uncover business context gaps.
    • Document the business context you have uncovered and streamline the process for executing on Info-Tech’s strategic CIO blueprints.

    Document Business Goals and Capabilities for Your IT Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should define the business context, review Info-Tech’s methodology, and understand how we can support you in completing key CIO strategic initiatives.

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

    1. Identify and document the business needs of the organization

    Define the business context needed to complete strategic IT initiatives.

    • Document Business Goals and Capabilities for Your IT Strategy – Storyboard
    • Business Context Discovery Tool
    • Business Context Discovery Record Template
    • PESTLE Analysis Template
    • Strategy Alignment Map Template
    [infographic]

    Workshop: Document Business Goals and Capabilities for Your IT 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 Identify the Missing Business Context (pre-work)

    The Purpose

    Conduct analysis and facilitate discussions to uncover business needs for IT.

    Key Benefits Achieved

    A baseline understanding of what business needs mean for IT

    Activities

    1.1 Define the strategic CIO initiatives our organization will pursue.

    1.2 Complete the Business Context Discovery Tool.

    1.3 Schedule relevant interviews.

    1.4 Select relevant Info-Tech diagnostics to conduct.

    Outputs

    Business context scope

    Completed Business Context Discovery Tool

    Completed Info-Tech diagnostics

    2 Uncover and Document the Missing Context

    The Purpose

    Analyze the outputs from step 1 and uncover the business context gaps.

    Key Benefits Achieved

    A thorough understanding of business needs and why IT should pursue certain initiatives

    Activities

    2.1 Conduct group or one-on-one interviews to identify the missing pieces of the business context.

    Outputs

    Documentation of answers to business context gaps

    3 Uncover and Document the Missing Context

    The Purpose

    Analyze the outputs from step 1 and uncover the business context gaps.

    Key Benefits Achieved

    A thorough understanding of business needs and why IT should pursue certain initiatives

    Activities

    3.1 Conduct group or one-on-one interviews to identify the missing pieces of the business context.

    Outputs

    Documentation of answers to business context gaps

    4 Review Business Context and Next Steps

    The Purpose

    Review findings and implications for IT’s strategic initiative.

    Key Benefits Achieved

    A thorough understanding of business needs and how IT’s strategic initiatives addresses those needs

    Activities

    4.1 Review documented business context with IT team.

    4.2 Discuss next steps for strategic CIO initiative execution.

    Outputs

    Finalized version of the business context

    Develop Infrastructure & Operations Policies and Procedures

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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Time and money are wasted dealing with mistakes or missteps that should have been addressed by procedures or policies.
    • Standard operating procedures are less effective without a policy to provide a clear mandate and direction.
    • Adhering to policies is rarely a priority, as compliance often feels like an impediment to getting work done.
    • Processes aren’t measured or audited to assess policy compliance, which makes enforcing the policies next to impossible.

    Our Advice

    Critical Insight

    • Document what you need to document and forget the rest. Always check to see if you can use a previously approved policy before you create a new one. You may only need to create new guidelines or standards rather than approve a new policy.

    Impact and Result

    • Start with a comprehensive policy framework to help you identify policy gaps. Prioritize and address those policy gaps.
    • Create effective policies that are reasonable, measurable, auditable, and enforceable.
    • Create and document procedures to support policy changes.

    Develop Infrastructure & Operations Policies and Procedures Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should change your approach to developing Infrastructure & Operations policies and procedures, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

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

    1. Identify policy and procedure gaps

    Create a prioritized action plan for documentation based on business need.

    • Develop Infrastructure & Operations Policies and Procedures – Phase 1: Identify Policy and Procedure Gaps

    2. Develop policies

    Adapt policy templates to meet your business requirements.

    • Develop Infrastructure & Operations Policies and Procedures – Phase 2: Develop Policies
    • Availability and Capacity Management Policy
    • Business Continuity Management Policy
    • Change Control – Freezes & Risk Evaluation Policy
    • Change Management Policy
    • Configuration Management Policy
    • Firewall Policy
    • Hardware Asset Management Policy
    • IT Triage and Support Policy
    • Release Management Policy
    • Software Asset Management Policy
    • System Maintenance Policy – NIST
    • Internet Acceptable Use Policy

    3. Document effective procedures

    Improve policy adherence and service effectiveness through procedure standardization and documentation.

    • Develop Infrastructure & Operations Policies and Procedures – Phase 3: Document Effective Procedures
    • Capacity Plan Template
    • Change Management Standard Operating Procedure
    • Configuration Management Standard Operation Procedures
    • Incident Management and Service Desk SOP
    • DRP Summary Template
    • Service Desk Standard Operating Procedure
    • HAM Standard Operating Procedures
    • SAM Standard Operating Procedures
    [infographic]

    Further reading

    Develop Infrastructure & Operations Policies and Procedures

    Document what you need to document and forget the rest.

    Table of contents

    Project Rationale

    Project Outlines

    • Phase 1: Identify Policy and Procedure Gaps
    • Phase 2: Develop Policies
    • Phase 3: Document Effective Procedures

    Bibliography

    ANALYST PERSPECTIVE

    Document what you need to document now and forget the rest.

    "Most IT organizations struggle to create and maintain effective policies and procedures, despite known improvements to consistency, compliance, knowledge transfer, and transparency.

    The numbers are staggering. Fully three-quarters of IT professionals believe their policies need improvement, and the same proportion of organizations don’t update procedures as required.

    At the same time, organizations that over-document and under-document perform equally poorly on key measures such as policy quality and policy adherence. Take a practical, step-by-step approach that prioritizes the documentation you need now. Leave the rest for later."

    (Andrew Sharp, Research Manager, Infrastructure & Operations Practice, Info-Tech Research Group)

    Our understanding of the problem

    This Research Is Designed For:

    • Infrastructure Managers
    • Chief Technology Officers
    • IT Security Managers

    This Research Will Help You:

    • Address policy gaps
    • Develop effective procedures and procedure documentation to support policy compliance

    This Research Will Also Assist:

    • Chief Information Officers
    • Enterprise Risk and Compliance Officers
    • Chief Human Resources Officers
    • Systems Administrators and Engineers

    This Research Will Help Them:

    • Understand the importance of a coherent approach to policy development
    • Understand the importance of Infrastructure & Operations policies
    • Support Infrastructure & Operations policy development and enforcement

    Info-Tech Best Practice

    This blueprint supports templates for key policies and procedures that help Infrastructure & Operations teams to govern and manage internal operations. For security policies, see the NIST SP 800-171 aligned Info-Tech blueprint, Develop and Deploy Security Policies.

    Executive Summary

    Situation

    • Time and money are wasted dealing with mistakes or missteps that should have been addressed by procedures or policies.
    • Standard operating procedures are less effective without a policy to provide a clear mandate and direction.

    Complication

    • Existing policies were written, approved, signed – and forgotten for years because no one has time to maintain them.
    • Adhering to policies is rarely a priority, as compliance often feels like an impediment to getting work done.
    • Processes aren’t measured or audited to assess policy compliance, which makes enforcing the policies next to impossible.

    Resolution

    • Start with a comprehensive policy framework to help you identify policy gaps. Prioritize and address those policy gaps.
    • Create effective policies that are reasonable, measurable, auditable, and enforceable.
    • Create and document procedures to support policy changes.

    Info-Tech Insight

    1. Document what you need to document and forget the rest.
      Always check if a previously approved policy exists before you create a new one. You may only need to create new guidelines or standards rather than approve a new policy.
    2. Support policies with documented procedures.
      Build procedures that embed policy adherence in daily operations. Find opportunities to automate policy adherence (e.g. removing local admin rights from user computers).

    What are policies, procedures, and processes?

    A policy is a governing document that states the long-term goals of the organization and in broad strokes outlines how they will be achieved (e.g. a Data Protection Policy).

    In the context of policies, a procedure is composed of the steps required to complete a task (e.g. a Backup and Restore Procedure). Procedures are informed by required standards and recommended guidelines. Processes, guidelines, and standards are three pillars that support the achievement of policy goals.

    A process is higher level than a procedure – a set of tasks that deliver on an organizational goal.

    Better policies and procedures reduce organizational risk and, by strengthening the ability to execute processes, enhance the organization’s ability to execute on its goals.

    Visualization of policies, procedures, and processes using pillars. Two separate structures, 'Policy A' and 'Policy B', are each held up by three pillars labelled 'Standards', 'Procedures', and 'Guidelines'. Two lines pass through the pillars of both structures and are each labelled 'Value-creating process'.

    Document to improve governance and operational processes

    Deliver value

    Build, deliver, and support Infrastructure assets in a consistent way, which ultimately reduces costs associated with downtime, errors, and rework. A good manual process is the foundation for a good automated process.

    Simplify Training

    Use documentation for knowledge transfer. Routine tasks can be delegated to less-experienced staff.

    Maintain compliance

    Comply with laws and regulations. Policies are often required for compliance, and formally documented and enforced policies help the organization maintain compliance by mandating required due diligence, risk reduction, and reporting activities.

    Provide transparency

    Build an open kitchen. Other areas of the organization may not understand how Infra & Ops works. Your documentation can provide the answer to the perennial question: “Why does that take so long?”

    Info-Tech Best Practice

    Governance goals must be supported with effective, well-aligned procedures and processes. Use Info-Tech’s research to support the key Infrastructure & Operations processes that enable your business to create value.

    Document what you need to document – and forget the rest

    Half of all organizations believe their policy suite is insufficient. (Info-Tech myPolicies Survey Data (N=59))

    Pie chart with three sections labelled 'Too Many Policies and Procedures 14%', 'Adequate Policies and Procedures 37%', 'Insufficient Policies and Procedures 49%'

    Too much documentation and a lack of documentation are both ineffective. (Info-Tech myPolicies Survey Data (N=59))

    Two bar charts labelled 'Policy Adherence' and 'Policy Quality' each with three bars representing 'Too Many Policies and Procedures', 'Insufficient Policies and Procedures', and 'Adequate Policies and Procedures'. The values shown are an average score out of 5. For Policy Adherence: Too Many is 2.4, Insufficient is 2.1, and Adequate is 3.2. For Policy Quality: Too Many is 2.9, Insufficient is 2.6, and Adequate is 4.1.

    77% of IT professionals believe their policies require improvement. (Kaspersky Lab)

    Presenting: A COBIT-aligned policy suite

    We’ve developed a suite of effective policy templates for every Infra & Ops manager based on Info-Tech’s IT Management & Governance Framework.

    Policy templates and the related aspects of Info-Tech's IT Management & Governance Framework

    Info-Tech Best Practice

    Look for these symbols as you work through the deck. Prioritize and focus on the policies you work on first based on the value of the policy to the enterprise and the existing gaps in your governance structure.

    Project outline

    Phases

    1. Identify policy and procedure gaps 2. Develop policies 3. Document effective procedures

    Steps

    • Review and right-size the existing policy set
    • Create an action plan to address policy gaps
    • Modify policy templates and gather feedback
    • Implement, enforce, measure, and maintain new policies
    • Scope and outline procedures
    • Document and maintain procedures

    Outcomes

    Action list of policy and procedure gaps New or updated Infrastructure & Operations policies Procedure documentation

    Use these icons to help direct you as you navigate this research

    Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

    A small monochrome icon of a wrench and screwdriver creating an X.

    This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.

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    This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.

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

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting

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

    Diagnostics and consistent frameworks used throughout all four options

    Accelerate policy development with a Guided Implementation

    Your trusted advisor is just a call away.

    • Identify Policy and Procedure Gaps (Calls 1-2)
      Assess current policies, operational challenges, and gaps. Mitigate significant risks first.
    • Create and Review Policies (Calls 2-4)
      Modify and review policy templates with an Info-Tech analyst.
    • Create and Review Procedures (Calls 4-6)
      Workflow procedures, using templates wherever possible. Review documentation best practices.

    Contact Info-Tech to set up a Guided Implementation with a dedicated advisor who will walk you through every stage of your policy development project.

    Develop Infrastructure & Operations Policies and Procedures

    Phase 1

    Identify Policy and Procedure Gaps

    PHASE 1: Identify Policy and Procedure Gaps

    Step 1.1: Review and right-size the existing policy set

    This step will walk you through the following activities:

    • Identify gaps in your existing policy suite
    • Document challenges to core Infrastructure & Operations processes
    • Identify documentation that can close gaps
    • Prioritize your documentation effort

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Infrastructure Supervisors

    Results & Insights

    • Results: A review of the existing policy suite and identification of opportunities for improvement.
    • Insights: Not all gaps necessarily require a fresh policy. Repurpose, refresh, or supplement existing documentation wherever appropriate.

    Conduct a policy review

    Associated Activity icon 1(a) 30 minutes per policy

    You’ve got time to review your policy suite. Make the most of it.

    1. Start with organizational requirements.
      • What initiatives are on the go? What policies or procedures do you have a mandate to create?
    2. Weed out expired and dated policies.
      • Gather your existing policies. Identify when each one was published or last reviewed.
      • Decide whether to retire, merge, or update expired or obviously dated policy.
    3. Review policy statements.
      • Check that the organization is adequately supporting policy statements with SOPs, standards, and guidelines. Ensure role-related information is up to date.
    4. Document and bring any gaps forward to the next activity. If no action is required, indicate that you have completed a review and submit the findings for approval.

    But they just want one policy...

    A review of your policy suite is good practice, especially when it hasn’t been done for a while. Why?
    • Existing policies may address what you’re trying to do with a new policy. Using or modifying an existing policy avoids overlap and contradiction and saves you the effort required to create, communicate, approve, and maintain a new policy.
    • Review the suite to validate that you’re addressing the most important challenges first.

    Brainstorm improvements for core Infrastructure & Operations processes

    Associated Activity icon 1(b) 1 hour

    Supplement the list of gaps from your policy review with process challenges.

    1. Write out key Infra & Ops–related processes – one piece of flipchart paper per process. You can work through all of these processes or cherry-pick the processes you want to improve first.
    2. With participants, write out in point form how you currently execute on these processes (e.g. for Asset Management, you might be tagging hardware, tracking licenses, etc.)
    3. Work through a “Start – Stop – Continue” exercise. Ask participants: What should we start doing? What must we stop doing? What do we do currently that’s valuable and must continue? Write ideas on sticky notes.
    4. Once you’ve worked through the “Start – Stop – Continue” exercise for all processes, group similar suggestions for improvements.

    Asset Management: Manage hardware and software assets across their lifecycle to protect assets and manage costs.

    Availability and Capacity Management: Balance current and future availability, capacity, and performance needs with cost-to-serve.

    Business Continuity Management: Continue operation of critical business processes and IT services.

    Change Management: Deliver technical changes in a controlled manner.

    Configuration Management: Define and maintain relationships between technical components.

    Problem Management: Identify incident root cause.

    Operations Management: Coordinate operations.

    Release and Patch Management: Deliver updates and manage vulnerabilities in a controlled manner.

    Service Desk: Respond to user requests and all incidents.

    PHASE 1: Identify Policy and Procedure Gaps

    Step 1.2: Create an action plan to address policy gaps

    This step will walk you through the following activities:

    • Identify challenges and gaps that can be addressed via documentation
    • Prioritize high-value, high-risk gaps

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Infrastructure Supervisors

    Results & Insights

    • Results: An action plan to tackle policy and procedures gaps, aligned with business requirements and business value.
    • Insights: Not all documentation is equally valuable. Prioritize documentation that delivers value and mitigates risk.

    Support policies with procedures, standards, and guidelines

    Use a working definition for each type of document.

    Policy: Directives, rules, and mandates that support the overarching, long-term goals of the organization.

    • Standards: Prescriptive, uniform requirements.
    • Procedures: Specific, detailed, step-by-step instructions for completing a task.
    • Guidelines: Non-enforceable, recommended best practices.

    Info-Tech Best Practice

    Take advantage of your Info-Tech advisory membership by scheduling review sessions with an analyst. We provide high-level feedback to ensure your documentation is clear, concise, and consistent and aligns with the governance objectives you’ve identified.

    Answer the following questions to decide if governance documentation can help close gaps

    Associated Activity icon 1(c) 30 minutes

    Documentation supports knowledge sharing, process consistency, compliance, and transparency. Ask the following questions:

    1. What is the purpose of the documentation?
      Procedures support task completion. Policies set direction and manage organizational risk.
    2. Should it be enforceable?
      Policies and standards are enforceable; guidelines are not. Procedures are enforceable in that they should support policy enforcement.
    3. What is the scope?
      To document a task, create a procedure. Set overarching rules with policies. Use standards and guidelines to set detailed rules and best practices.
    4. What’s the expected cadence for updates?
      Policies should be revisited and revised less frequently than procedures.

    Info-Tech Best Practice

    Reinvent the wheel? I don’t think so!

    Always check to see if a gap can be addressed with existing tools before drafting a new policy

    • Is there an existing policy that could be supported with new or updated procedures, technical standards, or guidelines?
    • Is there a technical control you can deploy that would enforce the terms of an existing, approved policy?
    • It may be simpler to amend an existing policy instead of creating a new one.

    Some problems can’t be solved by better documentation (or by documentation alone). Consider additional strategies that address people, process, and technology.

    Tackle high-value, high-risk gaps first

    Associated Activity icon 1(d) 30 minutes

    Prioritize your documentation effort.

    1. List each proposed piece of documentation on the board.
    2. Assign a score to the risk posed to the business by the lack of documentation and to the expected benefit of completing the documentation. Use a scoring scale between 1 and 3 such as the one on the right.
    3. Prioritize documentation that mitigates risks and maximizes benefits.
    4. If you need to break ties, consider effort required to develop, implement, and enforce policies or procedures.

    Example Scoring Scale

    Score Business risk of missing documentation Business benefit of value of documentation

    1

    Low: Affects ad hoc activities or non-critical data. Low: Minimal impact.

    2

    Moderate: Impacts productivity or internal goodwill. Moderate: Required periodically; some cross-training opportunities.

    3

    High: Impacts revenue, safety, or external goodwill. High: Save time for common or ongoing processes; extensive improvement to training/knowledge transfer.

    Info-Tech Insight

    Documentation pulls resources away from other important programs and projects, so ultimately it must be a demonstrably higher priority than other work. This exercise is designed to align documentation efforts with business goals.

    Phase 1: Review accomplishments

    Policy pillars: Standards, Procedures, Guidelines

    Summary of Accomplishments

    • Identified gaps in the existing policy suite and identified pain points in existing Infra & Ops processes.
    • Developed a list of policies and procedures that can address existing gaps and prioritized the documentation effort.

    Develop Infrastructure & Operations Policies and Procedures

    Phase 2

    Develop Policies

    PHASE 2: Develop Policies

    Step 2.1: Modify policy templates and gather feedback

    This step will walk you through the following activities:

    • Modify policy templates

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Technical Writer

    Results & Insights

    • Results: Your own COBIT-aligned policies built by modifying Info-Tech templates.
    • Insights: Effective policies are easy to read and navigate.

    Write Good-er: Be Clear, Consistent, and Concise

    Effective policies adhere to the three Cs of documentation.

    1. Be clear. Make it as easy as possible for a user to learn how to comply with your policy.
    2. Be consistent. Write policies that complement each other, not contradict each other.
    3. Be concise. Make it as quick and easy as possible to read and understand your policy.

    Info-Tech Best Practice

    To download the full suite of templates all at once, click the “Download Research” button on the research landing page on the website.

    Use the three Cs: Be Clear

    Understanding makes compliance possible. Create policy with the goal of making compliance as easy as possible. Use positive, simple language to convey your intentions and rationale to your audience. Staff will make an effort adhere to your policy when they understand the need and are able to comply with the terms.

    1. Choose a skilled writer. Select a writer who can write clearly and succinctly.
    2. Default to simple language and define key terms. Define scope and key terms upfront. Avoid using technical terms outside of technical documentation; if they’re necessary be sure to define them as well.
    3. Use active, positive language. Where possible, tell people what they can do, not what they can’t.
    4. Keep the structure simple. Complicated documents are less likely to be understood and read. Use short sentences and paragraphs. Lists are a helpful way to summarize important information. Guide your reader through the document with appropriately named section headers, tables of contents, and numeration.
    5. Add a process for handling exceptions. Refer to procedures, standards, and guidelines documentation. Try to keep these links as static as possible. Also, refer to a process for handling exceptions.
    6. Manage the integrity of electronic documents. When published electronically, the policy should have restricted editing access or should be published in a non-editable format. Access to the procedure and policy storage database for employees should be read-only.

    Info-Tech Insight

    Highly effective policies are easy to navigate. Your policies should be “skimmable.” Very few people will fully read a policy before accepting it. Make it easy to navigate so the reader can easily find the policy statements that apply to them.

    Use the three Cs: Be Consistent

    Ensure that policies are aligned with other organizational policies and procedures. It detracts from compliance if different policies prescribe different behavior in the same situation. Moreover, your policies should reflect the corporate culture and other company standards. Use your policies to communicate rules and get employees aligned with how your company works.

    1. Use standard sentences and paragraphs. Policies are usually expressed in short, standard sentences. Lists should also be used when necessary or appropriate.
    2. Remember the three Ws. When writing a policy, always be sure to clearly state what the rule is, when it should be applied, and who needs to follow it. Policies should clearly define their scope of application and whether directives are mandatory or recommended.
    3. Use an outline format. Using a numbered or outline format will make a document easier to read and will make content easier to look up when referring back to the document at a later time.
    4. Avoid amendments. Avoid the use of information that is quickly outdated and requires regular amendment (e.g. names of people).
    5. Reference a set of supplementary documents. Codify your tactics outside of the policy document, but make reference to them within the text. This makes it easier to ensure consistency in the behavior prescribed by your policies.

    "One of the issues is the perception that policies are rules and regulations. Instead, your policies should be used to say ‘this is the way we do things around here.’" (Mike Hughes CISA CGEIT CRISC, Principal Director, Haines-Watts GRC)

    Use the three Cs: Be Concise

    Reading and understanding policies shouldn’t be challenging, and it shouldn’t significantly detract from productive time. Long policies are more difficult to read and understand, increasing the work required for employees to comply with them. Put it this way: How often do you read the Terms and Conditions of software you’ve installed before accepting them?

    1. Be direct. The quicker you get to the point, the easier it is for the reader to interpret and comply with your policy.
    2. Your policy is a rule, not a recipe. Your policy should outline what needs to be accomplished and why – your standards, guidelines, and SOPs address the how.
    3. Keep policies short. Nobody wants to read a huge policy book, so keep your policies short.
    4. Use additional documentation where needed. In addition to making consistency easier, this shortens the length of your policies, making them easier to read.
    5. Policy still too large? Modularize it. If you have an extremely large policy, it’s likely that it’s too widely scoped or that you’re including statements that should be part of procedure documentation. Consider breaking your policy into smaller, focused, more digestible documents.

    "If the policy’s too large, people aren’t going to read it. Why read something that doesn’t apply to me?" (Carole Fennelly, Owner and Principal, cFennelly Consulting)

    "I always try to strike a good balance between length and prescriptiveness when writing policy. Your policies … should be short and describe the problem and your approach to solving it. Below policies, you write standards, guidelines, and SOPs." (Michael Deskin, Policy and Technical Writer, Canadian Nuclear Safety Commission)

    Customize policy documents

    Associated Activity icon 2(a) 1-2 hours per policy

    Use the policies templates to support key Infrastructure & Operations programs.

    INPUT: List of prioritized policies

    OUTPUT: Written policy drafts ready for review

    Materials: Policy templates

    Participants: Policy writer, Signing authority

    No policy template will be a perfect fit for your organization. Use Info-Tech’s research to develop your organization’s program requirements. Customize the policy templates to support those requirements.

    1. Work through policies from highest to lowest priority as defined in Phase 1.
    2. Follow the instructions written in grey text to customize the policy. Follow the three Cs when you write your policy.
    3. When your draft is finished, prepare to request signoff from your signing authority by reviewing the draft with an Info-Tech analyst.
    4. Complete the highest ranked three or four draft policies. Review all these policies with relevant stakeholders and include all relevant signing authorities in the signoff process.
    5. Rinse and repeat. Iterate until all relevant polices are complete.

    Request, Incident, and Problem Management

    An effective, timely service desk correlates with higher overall end-user satisfaction across all other IT services. (Info-Tech Research Group, 2016 (N=25,998))

    An icon for the 'DSS02 Service Desk' template. An icon for the 'DSS03 Incident and Problem Management' template.

    Use the following template to create a policy that outlines the goals and mandate for your service and support organization:

    • IT Triage and Support Policy

    Support the program and associated policy statements using Info-Tech’s research:

    • Standardize the Service Desk
    • Incident and Problem Management
    • Design & Build a User-Facing Service Catalog

    Embrace Standardization

    • Outline the support and service mandate with the policy. Support the policy with the methodology in Info-Tech’s research.
    • Over time, organizations without standardized processes face confusion, redundancies, and cost overruns. Standardization avoids wasting energy and effort building new solutions to solved issues.
    • Standard processes for IT services define repeatable approaches to work and sandbox creative activities.
    • Create tickets for every task and categorize them using a standard classification system. Use the resulting data to support root-cause analysis and long-term trend management.
    • Create a single point of contact for users for all incidents and requests. Escalate and resolve tickets faster.
    • Empower end users and technicians with knowledge bases that help them solve problems without intervention.

    Change, Release, and Patch Management

    Slow turnaround, unauthorized changes, and change-related incidents are all too familiar to many managers.

    An icon for the 'BAI06 Change Management' template. An icon for the 'BAI07 Release Management' template.

    Use the following templates to create policies that define effective patch, release, and change management:

    • Change Management Policy
    • Release and Patch Management Policy
    • Change Control – Freezes & Risk Evaluation Policy

    Ensure the policy is supported by using the following Info-Tech research:

    • Optimize Change Management

    Embrace Change

    • IT system owners resist change management when they see it as slow and bureaucratic.
    • At the same time, an increasingly interlinked technical environment may cause issues to appear in unexpected places. Configuration management systems are often not kept up to date, so preventable conflicts get missed.
    • No process exists to support the identification and deployment of critical security patches. Tracking down users to find a maintenance window takes significant, dedicated effort and intervention from the management team.
    • Create a unified change management process that reduces risk and is balanced in its approach toward deploying changes, while also maintaining throughput of patches, fixes, enhancements, and innovation.

    IT Asset Management (ITAM)

    A proactive, dynamic ITAM program will pay dividends in support, contract management, appropriate provisioning, and more.

    An icon for the 'BAI09 Asset Management' template.

    Start by outlining the requirements for effective asset management:

    • Hardware Asset Management Policy
    • Software Asset Management Policy

    Support ITAM policies with the following Info-Tech research:

    • Implement IT Asset Management

    Leverage Asset Data

    • Create effective, directional policies for your asset management program that provide a mandate for action. Support the policies with robust procedures, capable staff, and right-fit technology solutions.
    • Poor management of assets generally leads to higher costs due to duplicated purchases, early replacement, loss, and so on.
    • Visibility into asset location and ownership improves security and accountability.
    • A centralized repository of asset data supports request fulfilment and incident management.
    • Asset management is an ongoing program, not a one-off project, and must be resourced accordingly. Organizations often implement an asset management program and let it stagnate.

    "Many of the large data breaches you hear about… nobody told the sysadmin the client data was on that server. So they weren’t protecting and monitoring it." (Carole Fennelly, Owner and Principal, cFennelly Consulting)

    Business Continuity Management (BCM)

    Streamline the traditional approach to make BCM practical and repeatable.

    An icon for the 'DSS04 DR and Business Continuity' template.

    Set the direction and requirements for effective BCM:

    • Business Continuity Management Policy

    Support the BCM policy with the following Info-Tech research:

    • Create a Right-Sized Disaster Recovery Plan
    • Develop a Business Continuity Plan

    Build Organizational Resilience

    • Evidence of disaster recovery and business continuity planning is increasingly required to comply with regulations, mitigate business risk, and meet customer demands.
    • IT leaders are often asked to take the lead on business continuity, but overall accountability for business continuity rests with the board of directors, and each business unit must create and maintain its business continuity plan.
    • Set an organizational mandate for BCM with the policy.
    • Divide the business continuity mandate into manageable parcels of work. Follow Info-Tech’s practical methodology to tackle key disaster recovery and business continuity planning activities one at a time.

    Info-Tech Best Practice

    Governance goals must be supported with effective, well-aligned procedures and processes. Use Info-Tech’s research to support the key Infrastructure & Operations processes that enable your business to create value.

    Availability, Capacity, and Operations Management

    What was old is new again. Use time-tested techniques to manage and plan cloud capacity and costs.

    An icon for the 'BAI04 Availability and Capacity Management' template. An icon for the 'DSS01 Operations Management' template. An icon for the 'BAI10 Configuration Management' template.

    Set the direction and requirements for effective availability and capacity management:

    • Availability and Capacity Management Policy
    • System Maintenance Policy – NIST

    Support the policy with the following Info-Tech research:

    • Develop an Availability and Capacity Management Plan
    • Improve IT Operations Management
    • Develop an IT Infrastructure Services Playbook

    Mature Service Delivery

    • Hybrid IT deployments – managing multiple locations, delivery models, and service providers – are the future of IT. Hybrid deployments significantly complicate capacity planning and operations management.
    • Effective operations management practices develop structured processes to automate activities and increase process consistency across the IT organization, ultimately improving IT efficiency.
    • Trying to add mature service delivery can feel like playing whack-a-mole. Systematically improve your service capabilities using the tactical, iterative approach outlined in Improve IT Operations Management.

    Enhance your overall security posture with a defensible, prescriptive policy suite

    Align your security policy suite with NIST Special Publication 800-171.

    Security policies support the organization’s larger security program. We’ve created a dedicated research blueprint and a set of templates that will help you build security policies around a robust framework.

    • Start with a security charter that aligns the security program with organizational objectives.
    • Prioritize security policies that address significant risks.
    • Work with technical and business stakeholders to adapt Info-Tech’s NIST SP 800-171–aligned policy templates (at right) to reflect your organizational objectives.

    A diagram listing all the different elements in a 'Security Charter': 'Access Control', 'Audit & Acc.', 'Awareness and Training', 'Config. Mgmt.', 'Identification and Auth.', 'Incident Response', 'Maintenance', 'Media Protection', 'Personnel Security', 'Physical Protection', 'Risk Assessment', 'Security Assessment', 'System and Comm. Protection', and 'System and Information Integrity'.

    Review and download Info-Tech's blueprint Develop and Deploy Security Policies.

    Info-Tech Best Practice

    Customize Info-Tech’s policy framework to align your policy suite to NIST SP 800-171. Given NIST’s requirements for the control of confidential information, organizations that align their policies to NIST standards will be in a strong governance position.

    PHASE 2: Develop Policies

    Step 2.2: Implement, enforce, measure, and maintain new policies

    This step will walk you through the following activities:

    • Gather stakeholder feedback
    • Identify preventive and detective controls
    • Identify required supports
    • Seek policy approval
    • Establish roles and responsibilities for policy maintenance

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Infrastructure Supervisors
    • Technical Writer
    • Policy Stakeholders

    Results & Insights

    • Results: Well-supported policies that have received signoff.
    • Insights: If you’re not prepared to enforce the policy, you might not actually need a policy. Use the policy statements as guidelines or standards, create and implement procedures, and build a culture of compliance. Once you can confidently execute on required controls, seek signoff.

    Gather feedback from users to assess the feasibility of the new policies

    Associated Activity icon 2(b) Review period: 1-2 weeks

    Once the policies are drafted, roundtable the drafts with stakeholders.

    INPUT: Draft policies

    OUTPUT: Reviewed policy drafts ready for approval

    Materials: Policy drafts

    Participants: Policy stakeholders

    1. Form a test group of users who will be affected by the policy in different ways. Keep the group to around five staff.
    2. Present new policies to the testers. Allow them to read the documents and attempt to comply with the new policies in their daily routines.
    3. Collect feedback from the group.
      • Consider using interviews, email surveys, chat channels, or group discussions.
      • Solicit ideas on how policy statements could be improved or streamlined.
    4. Make reasonable changes to the first draft of the policies before submitting them for approval. Policies will only be followed if they’re realistic and user friendly.

    Info-Tech Best Practice

    Allow staff the opportunity to provide input on policy development. Giving employees a say in policy development helps avoid obstacles down the road. This is especially true if you’re trying to change behavior rather than lock it in.

    Develop mechanisms for monitoring and enforcement

    Associated Activity icon 2(c) 20 minutes per policy

    Brainstorm preventive and detective controls.

    INPUT: Draft policies

    OUTPUT: Reviewed policy drafts ready for approval

    Materials: Policy drafts

    Participants: Policy stakeholders

    Preventive controls are designed to discourage or pre-empt policy breaches before they occur. Training, approvals processes, and segregation of duties are examples of preventive controls. (Ohio University)

    Detective controls help enforce the policy by identifying breaches after they occur. Forensic analysis and event log auditing are examples of detective controls. (Ohio University)

    Not all policies require the same level of enforcement. Policies that are required by law or regulation generally require stricter enforcement than policies that outline best practices or organizational values.

    Identify controls and enforcement mechanisms that are in line with policy requirements. Build control and enforcement into procedure documentation as needed.

    Suggestions:

    1. Have staff sign off on policies. Disclose any monitoring/surveillance.
    2. Ensure consequences match the severity of the infraction. Document infractions and ensure that enforcement is applied consistently across all infractions.
    3. Automatic controls shouldn’t get in the way of people’s ability to do their jobs. Test controls with users before you roll them out widely.

    Support the policy before seeking approval

    A policy is only as strong as its supporting pillars.

    Create Standards

    Standards are requirements that support policy adherence. Server builds and images, purchase approval criteria, and vulnerability severity definitions can all be examples of standards that improve policy adherence.

    Where reasonable, use automated controls to enforce standards. If you automate the control, consider how you’ll handle exceptions.

    Create Guidelines

    If no standards exist – or best practices can’t be monitored and enforced, as standards require – write guidelines to help users remain in compliance with the policy.

    Create Procedures: We’ll cover procedure development and documentation in Phase 3.

    Info-Tech Insight

    In general, failing to follow or strictly enforce a policy creates a risk for the business. If you’re not confident a policy will be followed or enforced, consider using policy statements as guidelines or standards as an interim measure as you update procedures and communicate and roll out changes that support adherence and enforcement.

    Seek approval and communicate the policy

    Policies ultimately need to be accepted by the business.

    • Once the drafts are completed, identify who is in charge of approving the policies.
    • Ensure all stakeholders understand the importance, context, and repercussions of the policies.
    • The approvals process is about appropriate oversight of the drafted policies. For example:
      • Do the policies satisfy compliance and regulatory requirements?
      • Do the policies work with the corporate culture?
      • Do the policies address the underlying need?

    If the draft is rejected:

    • Acquire feedback and make revisions.
    • Resubmit for approval.

    If the draft is approved:

    • Set the effective date and a review date.
    • Begin communication, training, and implementation.
    • Employees must know that there are new policies and understand the steps they must take to comply with the policies in their work.
    • Employees must be able to interpret, understand, and know how to act upon the information they find in the policies.
    • Employees must be informed on where to get help or ask questions and from whom to request policy exceptions.

    "A lot of board members and executive management teams… don’t understand the technology and the risks posed by it." (Carole Fennelly, Owner and Principal, cFennelly Consulting)

    Identify policy management roles and responsibilities

    Associated Activity icon 2(d) 30 minutes

    Discuss and assign roles and responsibilities for ongoing policy management.

    Role

    Responsibilities

    Executive sponsor

  • Supports the program at the highest levels of the business, as needed
  • Program lead

  • Leads the Infrastructure & Operations policy management program
  • Identifies and communicates status updates to the executive sponsor and the project team
  • Coordinates business demands and interviews and organizes stakeholders to identify requirements
  • Manages the work team and coordinates policy rollout
  • Policy writer

  • Authors and updates policies based on requirements
  • Coordinates with outsourced editor for completion of written documents
  • IT infrastructure SMEs

  • Provide technical insight into capabilities and limitations of infrastructure systems
  • Provide advice on possible controls that can aid policy rollout, monitoring, and enforcement
  • Legal expert

  • Provides legal advice on the policy’s legal terms and enforceability
  • "Whether at the level of a government, a department, or a sub-organization: technology and policy expertise complement one another and must be part of the conversation." (Peter Sheingold, Portfolio Manager, Cybersecurity, MITRE Corporation)

    Phase 2: Review accomplishments

    Effective Policies: Clear, Consistent, and Concise

    An icon for the 'DSS02 Service Desk' template.

    An icon for the 'DSS03 Incident and Problem Management' template.

    An icon for the 'BAI06 Change Management' template.

    An icon for the 'BAI07 Release Management' template.

    An icon for the 'BAI09 Asset Management' template.

    An icon for the 'DSS04 DR and Business Continuity' template.

    An icon for the 'BAI04 Availability and Capacity Management' template.

    An icon for the 'DSS01 Operations Management' template.

    An icon for the 'BAI10 Configuration Management' template.

    Summary of Accomplishments

    • Built priority policies based on templates aligned with the IT Management & Governance Framework and COBIT 5.
    • Reviewed controls and policy supports.
    • Assigned roles and responsibilities for ongoing policy maintenance.

    Develop Infrastructure & Operations Policies and Procedures

    Phase 3

    Document Effective Procedures

    PHASE 3: Document Effective Procedures

    Step 3.1: Scope and outline procedures

    This step will walk you through the following activities:

    • Prioritize SOP documentation
    • Draft workflows using a tabletop exercise
    • Modify templates, as applicable

    This step involves the following participants:

    • Infrastructure & Operations Manager
    • Technical Writer
    • Infrastructure Supervisors

    Results & Insights

    • Results: An action plan for SOP documentation and an outline of procedure workflows.
    • Insights: Don’t let tools get in the way of documentation – low-tech solutions are often the most effective way to build and analyze workflows.

    Prioritize your SOP documentation effort

    Associated Activity icon 3(a) 1-2 hours

    Build SOP documentation that gets used and doesn’t just check a box.

    1. Review the list of procedure gaps from Phase 1. Are any other procedures needed? Are some of the procedures now redundant?
    2. Establish the scope of the proposed procedures. Who are the stakeholders? What policies do they support?
    3. Run a basic prioritization exercise using a three-point scale. Higher scores mean greater risks or greater benefits. Score the risk of the undocumented procedure to the business (e.g. potential effect on data, productivity, goodwill, health and safety, or compliance). Score the benefit to the business of documenting the procedure (e.g. throughput improvements or knowledge transfer).
    4. Different procedures require different formats. Decide on one or more formats that can help you effectively document the procedure:
      • Flowcharts: Depict workflows and decision points. Provide an at-a-glance view that is easy to follow. Can be supported by checklists and diagrams where more detail is required.
      • Checklists: A reminder of what to do, rather than how to do it. Keep instructions brief.
      • Diagrams: Visualize objects, topologies, and connections for reference purposes.
      • Tables: Establish relationships between related categories.
      • Prose: Use full-text instructions where other documentation strategies are insufficient.

    Modify the following Info-Tech templates for larger SOPs

    Support these processes...

    ...with these blueprints...

    ...to create SOPs using these templates.

    An icon for the 'DSS04 DR and Business Continuity' template. Create a Right-Sized Disaster Recovery Plan DRP Summary
    An icon for the 'BAI09 Asset Management' template. Implement IT Asset Management HAM SOP and SAM SOP
    An icon for the 'BAI06 Change Management' template. An icon for the 'BAI07 Release Management' template. Optimize Change Management Change Management SOP
    An icon for the 'DSS02 Service Desk' template. An icon for the 'DSS03 Incident and Problem Management' template. Standardize the Service Desk Service Desk SOP

    Use tabletop planning or whiteboards to draft workflows

    Associated Activity icon 3(b) 30 minutes

    Tabletop planning is a paper-based exercise in which your team walks through a particular process and maps out what happens at each stage.

    OUTPUT: Steps in the current process for one SOP

    Materials: Tabletop, pen, and cue cards

    Participants: Process owners, SMEs

    1. For this exercise, choose one particular process to document.
    2. Document each step of the process on cue cards, which can be arranged on the table in sequence.
    3. Be sure to include task ownership in your steps.
    4. Map out the process as it currently happens – we’ll think about how to improve it later.
    5. Keep focused. Stay on task and on time.

    Example:

    • Step 3: PM reviews new defects daily
    • Step 4: PM assigns defects to tech leads
    • Step 5: Assigned resource updates status – frequency is based on ticket priority

    Info-Tech Insight

    Don’t get weighed down by tools. Relying on software or other technological tools can detract from the exercise. Use simple tools such as cue cards to record steps so that you can easily rearrange steps or insert steps based on input from the group.

    Collaborate to optimize the SOP

    Associated Activity icon 3(c) 30 minutes

    Review the tabletop exercise. What gaps exist in current processes?
    How can the processes be made better? What are the outputs and checkpoints?

    OUTPUT: Identify steps to optimize the SOP

    Materials: Tabletop, pen, and cue cards

    Participants: Process owners, SMEs

    Example:

    • Step 3: PM reviews new defects daily
    • NEW STEP: Schedule 10-minute daily defect reviews with PM and tech leads to evaluate ticket priority
    • Step 4: PM assigns defects to tech leads
    • Step 5: Assigned resource updates status – frequency is based on ticket priority
      • Step 5 Subprocess: Ticket status update
      • Step 5 Output: Ticket status moved to OPEN by assigned resource – acknowledges receipt by assigned resource

    A note on colors: Use white cards to record steps. Record gaps on yellow cards (e.g. a process step not documented) and risks on red cards (e.g. only one person knows how to execute a step) to highlight your gaps/to-dos and risks to be mitigated or accepted.

    If it’s necessary to clarify complex process flows during the exercise, you can also use green cards for decision diamonds, purple for document/report outputs, and blue for subprocesses.

    PHASE 3: Document Effective Procedures

    Step 3.2: Document effective procedures

    This step will walk you through the following activities:

    • Document workflows, checklists, and diagrams
    • Establish a cadence for document review and updates

    This step involves the following participants:

    • Infrastructure Manager
    • Technical Writer

    Results & Insights

    • Results: Improved SOP documentation and document management practices.
    • Insights: It’s possible to keep up with changes if you put the right cues and accountabilities in place. Include document review in project and change management procedures and hold staff accountable for completion.

    Document workflows with flowcharting software

    Suggestions for workflow documentation

    • Whether you draft the workflow on a whiteboard or using cue cards, the first iteration is usually messy. Clean up the flow as you document the results of the exercise.
    • Make the workflow as simple as possible and no simpler. Eliminate any decision points that aren’t strictly necessary to complete the procedure.
    • Use standard flowchart shapes (see next slide).
    • Use links to connect to related documentation.
    • Review the documented workflow with participants.

    Download the following workflow examples:

    Establish flowcharting standards

    If you don’t have existing flowchart standards, then keep it simple and stick to basic flowcharting conventions as described below.

    Basic flowcharting convention: a circle can be used for 'Start, End, and Connector'. Start, End, and Connector: Traditional flowcharting standards reserve this shape for connectors to other flowcharts or other points in the existing flowchart. Unified Modeling Language (UML) also uses the circle for start and end points.
    Basic flowcharting convention: a rounded rectangle can be used for 'Start and End'. Start and End: Traditional flowcharting standards use this for start and end. However, Info-Tech recommends using the circle shape to reduce the number of shapes and avoid confusion with other similar shapes.
    Basic flowcharting convention: a rectangle can be used for 'Process Step'. Process Step: Individual process steps or activities (e.g. create ticket or escalate ticket). If it’s a series of steps, then use the subprocess symbol and flowchart the subprocess separately.
    Basic flowcharting convention: a rectangle with double-line on the ends can be used for 'Subprocess'. Subprocess: A series of steps. For example, a critical incident SOP might reference a recovery process as one of the possible actions. Marking it as a subprocess, rather than listing each step within the critical incident SOP, streamlines the flowchart and avoids overlap with other flowcharts (e.g. the recovery process).
    Basic flowcharting convention: a diamond can be used for 'Decision'. Decision: Represents decision points, typically with Yes/No branches, but you could have other branches depending on the question (e.g. a “Priority?” question could branch into separate streams for Priority 1, 2, 3, 4, and 5 issues).
    Basic flowcharting convention: a rectangle with a wavy bottom can be used for 'Document/Report Output'. Document/Report Output: For example, the output from a backup process might include an error log.

    Support workflows with checklists and diagrams

    Diagrams

    • Diagrams are a visual representation of real-world phenomena and the connections between them.
    • Be sure to use standard shapes. Clearly label elements of the diagram. Use standard practices, including titles, dates, authorship, and versioning.
    • IT systems and interconnections are layered. Include physical, logical, protocol, and data flow connections.

    Examples:

    • XMPL Recovery Workflows
    • Workflow Library

    Checklists

    • Checklists are best used as short-form reminders on how to complete a particular task.
    • Remember the audience. If the process will be carried out by technical staff, there’s technical background material you won’t need to spell out in detail.

    Examples:

    • Employee Termination Process Checklist
    • XMPL Systems Recovery Playbook

    Establish a cadence for documentation review and maintenance

    Lock-in the work with strong document management practices.

    • Identify documentation requirements as part of project planning.
    • Require a manager or supervisor to review and approve SOPs.
    • Check documentation status as part of change management.
    • Hold staff accountable for documentation.

    "It isn’t unusual for us to see infrastructure or operations documentation that is wildly out of date. We’re talking months, even years. Often it was produced as one big effort and then not reliably maintained." (Gary Patterson, Consultant, Quorum Resources)

    Only a quarter of organizations update SOPs as needed

    A bar chart representing how often organizations update SOPs. Each option has two bars, one representing 'North America', the other representing 'Europe and Asia'. 'Never or rarely' is 11% in North America and 3% in Europe and Asia. 'Ad-hoc approach' is 38% in North America and 28% in Europe and Asia. 'For audits/annual reviews' is 33% in North America and 45% in Europe and Asia. 'As needed/via change management' is 18% in North America and 25% in Europe and Asia. Source: Info-Tech Research Group (N=104)

    Info-Tech Best Practice

    Use Info-Tech’s research Create Visual SOP Documents to further evaluate document management practices and toolsets.

    Phase 3: Review accomplishments

    Workflow documentation: Cue cards into flowcharts

    Summary of Accomplishments

    • Identified priority procedures for documentation activities.
    • Created procedure documentation in the appropriate format and level of granularity to support Infra & Ops policies.
    • Published and maintained procedure documentation.

    Research contributors and experts

    Carole Fennelly, Owner
    cFennelly Consulting

    Picture of Carole Fennelly, Owner, cFennelly Consulting.

    Carole Fennelly provides pragmatic cyber security expertise to help organizations bridge the gap between technical and business requirements. She authored the Center for Internet Security (CIS) Solaris and Red Hat benchmarks, which are used globally as configuration standards to secure IT systems. As a consultant, Carole has defined security strategies, and developed policies and procedures to implement them, at numerous Fortune 500 clients. Carole is a Certified Information Security Manager (CISM), Certified Security Compliance Specialist (CSCS), and Certified HIPAA Professional (CHP).

    Marko Diepold, IT Audit Manager
    audit2advise

    Picture of Marko Diepold, IT Audit Manager, audit2advise.

    Marko is an IT Audit Manager at audit2advise, where he delivers audit, risk advisory, and project management services. He has worked as a Security Officer, Quality Manager, and Consultant at some of Germany’s largest companies. He is a CISA and is ITIL v3 Intermediate and ITGCP certified.

    Research contributors and experts

    Martin Andenmatten, Founder & Managing Director
    Glenfis AG

    Picture of Martin Andenmatten, Founder and Managing Director, Glenfis AG.

    Martin is a digital transformation enabler who has been involved in various fields of IT for more than 30 years. At Glenfis, he leads large Governance and Service Management projects for various customers. Since 2002, he has been the course manager for ITIL® Foundation, ITIL® Service Management, and COBIT training. He has published two books on ISO 20000 and ITIL.

    Myles F. Suer, CIO Chat Facilitator
    CIO.com/Dell Boomi

    Picture of Myles F. Suer, CIO Chat Facilitator, CIO.com/Dell Boomi.

    Myles Suer, according to LeadTails, is the number 9 influencer of CIOs. He is also the facilitator for the CIOChat, which has executive-level participants from around the world in such industries as banking, insurance, education, and government. Myles is also the Industry Solutions Marketing Manager at Dell Boomi.

    Research contributors and experts

    Peter Sheingold, Portfolio Manager
    Cybersecurity, Homeland Security Center, The MITRE Corporation

    Picture of Peter Sheingold, Portfolio Manager, Cybersecurity, Homeland Security Center, The MITRE Corporation.

    Peter leads tasks that involve collaboration with the Department of Homeland Security (DHS) sponsors and MITRE colleagues and connect strategy, policy, organization, and technology. He brings a deep background in homeland security and strategic analysis to his work with DHS in the immigration, border security, and cyber mission spaces. Peter came to MITRE in 2005 but has worked with DHS from its inception.

    Robert D. Austin, Professor
    Ivey Business School

    Picture of Robert D. Austin, Professor, Ivey Business School.

    Dr. Austin is a professor of Information Systems at Ivey Business School and an affiliated faculty member at Harvard Medical School. Before his appointment at Ivey, he was a professor of Innovation and Digital Transformation at Copenhagen Business School, and, before that, a professor of Technology and Operations Management at the Harvard Business School.

    Research contributors and experts

    Ron Jones, Director of IT Infrastructure and Service Management
    DATA Communications

    Picture of Ron Jones, Director of IT Infrastructure and Service Management, DATA Communications.

    Ron is a senior IT leader with over 20 years of management experiences from engineering to IT Service Management and operations support. He is known for joining organizations and leading enhanced process efficiency and has improved software, hardware, infrastructure, and operations solution delivery and support. Ron has worked for global and Canadian firms including BlackBerry, DoubleClick, Cogeco, Infusion, Info-Tech Research Group, and Data Communications Management.

    Scott Genung, Executive Director of Networking, Infrastructure, and Service Operations
    University of Chicago

    Picture of Scott Genung, Executive Director of Networking, Infrastructure, and Service Operations, University of Chicago.

    Scott is an accomplished IT executive with 26 years of experience in technical and leadership roles. In his current role, Scott provides strategic leadership, vision, and oversight for an IT portfolio supporting 31,000 users consisting of services utilized by campuses located in North America, Asia, and Europe; oversees the University’s Command Center; and chairs the UC Cyberinfrastructure Alliance (UCCA), a group of research IT providers that collectively deliver services to the campus and partners.

    Research contributors and experts

    Steve Weil, CISSP, CISM, CRISC, Information Security Director, Cybersecurity Principal Consultant
    Point B

    Picture of Steve Weil, CISSP, CISM, CRISC, Information Security Director, Cybersecurity Principal Consultant, Point B.

    Steve has 20 years of experience in information security design, implementation, and assessment. He has provided information security services to a wide variety of organizations, including government agencies, hospitals, universities, small businesses, and large enterprises. With his background as a systems administrator, security consultant, security architect, and information security director, Steve has a strong understanding of both the strategic and tactical aspects of information security. Steve has significant hands-on experience with security controls, operating systems, and applications. Steve has a master's degree in Information Science from the University of Washington.

    Tony J. Read, Senior Program/Project Lead & Interim IT Executive
    Read & Associates

    Picture of Tony J. Read, Senior Program/Project Lead and Interim IT Executive, Read and Associates.

    Tony has over 25 years of international IT leadership experience, within high tech, computing, telecommunications, finance, banking, government, and retail industries. Throughout his career, Tony has led and successfully implemented key corporate initiatives, contributing millions of dollars to the top and bottom line. He established Read & Associates in 2002, an international IT management and program/project delivery consultancy practice whose aim is to provide IT value-based solutions, realizing stakeholder economic value and network advantage. These key concepts are presented in his new book: The IT Value Network: From IT Investment to Stakeholder Value, published by J. Wiley, NJ.

    Related Info-Tech research

    • Develop and Deploy Security Policies
    • Develop an Availability and Capacity Management Plan
    • Improve IT Operations Management
    • Develop an IT Infrastructure Services Playbook
    • Create a Right-Sized Disaster Recovery Plan
    • Develop a Business Continuity Plan
    • Implement IT Asset Management
    • Optimize Change Management
    • Standardize the Service Desk
    • Incident and Problem Management
    • Design & Build a User-Facing Service Catalog

    Bibliography

    “About Controls.” Ohio University, ND. Web. 2 Feb 2018.

    England, Rob. “How to implement ITIL for a client?” The IT Skeptic. Two Hills Ltd, 4 Feb. 2010. Web. 2018.

    “Global Corporate IT Security Risks: 2013.” Kaspersky Lab, May 2013. Web. 2018.

    “Information Security and Technology Policies.” City of Chicago, Department of Innovation and Technology, Oct. 2014. Web. 2018.

    ISACA. COBIT 5: Enabling Processes. International Systems Audit and Control Association. Rolling Meadows, IL.: 2012.

    “IT Policy & Governance.” NYC Information Technology & Telecommunications, ND. Web. 2018.

    King, Paula and Kent Wada. “IT Policy: An Essential Element of IT Infrastructure”. EDUCAUSE Review. May-June 2001. Web. 2018.

    Luebbe, Max. “Simplicity.” Site Reliability Engineering. O’Reilly Media. 2017. Web. 2018.

    Swartout, Shawn. “Risk assessment, acceptance, and exception with a process view.” ISACA Charlotte Chapter September Event, 2013. Web. 2018.

    “User Guide to Writing Policies.” Office of Policy and Efficiency, University of Colorado, ND. Web. 2018.

    “The Value of Policies and Procedures.” New Mexico Municipal League, ND. Web. 2018.

    Present Security to Executive Stakeholders

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    • There is a disconnect between security leaders and executive stakeholders on what information is important to present.
    • Security leaders find it challenging to convey the necessary information to obtain support for security objectives.
    • Changes to the threat landscape and shifts in organizational goals exacerbate the issue, as they impact security leaders' ability to prioritize topics to be communicated.
    • Security leaders struggle to communicate the importance of security to a non-technical audience.

    Our Advice

    Critical Insight

    Security presentations are not a one-way street. The key to a successful executive security presentation is having a goal for the presentation and ensuring that you have met your goal.

    Impact and Result

    • Developing a thorough understanding of the security communication goals.
    • Understanding the importance of leveraging highly relevant and understandable data.
    • Developing and delivering presentations that will keep your audience engaged and build trust with your executive stakeholders.

    Present Security to Executive Stakeholders Research & Tools

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

    1. Present Security to Executive Stakeholders – A step-by-step guide to communicating security effectively to obtain support from decision makers.

    Use this as a guideline to assist you in presenting security to executive stakeholders.

    • Present Security to Executive Stakeholders Storyboard

    2. Security Presentation Templates – A set of security presentation templates to assist you in communicating security to executive stakeholders.

    The security presentation templates are a set of customizable templates for various types of security presentation including:

    • Present Security to Executive Stakeholders Templates

    Infographic

    Further reading

    Present Security to Executive Stakeholders

    Learn how to communicate security effectively to obtain support from decision makers.

    Analyst Perspective

    Build and deliver an effective security communication to your executive stakeholders.

    Ahmad Jowhar

    As a security leader, you’re tasked with various responsibilities to ensure your organization can achieve its goals while its most important assets are being protected.

    However, when communicating security to executive stakeholders, challenges can arise in determining what topics are pertinent to present. Changes in the security threat landscape coupled with different business goals make identifying how to present security more challenging.

    Having a communication framework for presenting security to executive stakeholders will enable you to effectively identify, develop, and deliver your communication goals while obtaining the support you need to achieve your objectives.

    Ahmad Jowhar
    Research Specialist, Security & Privacy

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    • Many security leaders struggle to decide what to present and how to present security to executive stakeholders.
    • Constant changes in the security threat landscape impacts a security leader’s ability to prioritize topics to be communicated.
    • There is a disconnect between security leaders and executive stakeholders on what information is important to present.
    • Security leaders struggle to communicate the importance of security to a non-technical audience.
    • Developing a thorough understanding of security communication goals.
    • Understanding the importance of leveraging highly relevant and understandable data.
    • Developing and delivering presentations that will keep your audience engaged and build trust with your executive stakeholders.

    Info-Tech Insight

    Security presentations are not a one-way street. The key to a successful executive security presentation is having a goal for the presentation and verifying that you have met your goal.

    Your challenge

    As a security leader, you need to communicate security effectively to executive stakeholders in order to obtain support for your security objectives.

    • When it comes to presenting security to executive stakeholders, many security leaders find it challenging to convey the necessary information in order to obtain support for security objectives.
    • This is attributed to various factors, such as an increase in the threat landscape, changes to industry regulations and standards, and new organizational goals that security has to align with.
    • Furthermore, with the limited time to communicate with executive stakeholders, both in frequency and duration, identifying the most important information to address can be challenging.

    76% of security leaders struggle in conveying the effectiveness of a cybersecurity program.

    62% find it difficult to balance the risk of too much detail and need-to-know information.

    41% find it challenging to communicate effectively with a mixed technical and non-technical audience.

    Source: Deloitte, 2022

    Common obstacles

    There is a disconnect between security leaders and executive stakeholders when it comes to the security posture of the organization:

    • Executive stakeholders are not confident that their security leaders are doing enough to mitigate security risks.
    • The issue has been amplified, with security threats constantly increasing across all industries.
    • However, security leaders don’t feel that they are in a position to make themselves heard.
    • The lack of organizational security awareness and support from cross-functional departments has made it difficult to achieve security objectives (e.g. education, investments).
    • Defining an approach to remove that disconnect with executive stakeholders is of utmost importance for security leaders, in order to improve their organization’s security posture.

    9% of boards are extremely confident in their organization’s cybersecurity risk mitigation measures.

    77% of organizations have seen an increase in the number of attacks in 2021.

    56% of security leaders claimed their team is not involved when leadership makes urgent security decisions.

    Source: EY, 2021
    The image contains a screenshot of an Info-Tech Thoughtmodel titled: Presenting Security to Executive Stakeholders.

    Info-Tech’s methodology for presenting security to executive stakeholders

    1. Identify communication goals

    2. Collect information to support goals

    3. Develop communication

    4. Deliver communication

    Phase steps

    1. Identify drivers for communicating to executives
    2. Define your goals for communicating to executives
    1. Identify data to collect
    2. Plan how to retrieve data
    1. Plan communication
    2. Build a compelling communication document
    1. Deliver a captivating presentation
    2. Obtain/verify goals

    Phase outcomes

    A defined list of drivers and goals to help you develop your security presentations

    A list of data sources to include in your communication

    A completed communication template

    A solidified understanding of how to effectively communicate security to your stakeholders

    Develop a structured process for communicating security to your stakeholders

    Security presentations are not a one-way street
    The key to a successful executive security presentation is having a goal for the presentation and verifying that you have met your goal.

    Identifying your goals is the foundation of an effective presentation
    Defining your drivers and goals for communicating security will enable you to better prepare and deliver your presentation, which will help you obtain your desired outcome.

    Harness the power of data
    Leveraging data and analytics will help you provide quantitative-based communication, which will result in a more meaningful and effective presentation.

    Take your audience on a journey
    Developing a storytelling approach will help engage with your audience.

    Win your audience by building a rapport
    Establishing credibility and trust with executive stakeholders will enable you to obtain their support for security objectives.

    Tactical insight
    Conduct background research on audience members (i.e. professional background) to help understand how best to communicate with them and overcome potential objections.

    Tactical insight
    Verifying your objectives at the end of the communication is important, as it ensures you have successfully communicated to executive stakeholders.

    Project deliverables

    This blueprint is accompanied by a supporting deliverable which includes five security presentation templates.

    Report on Security Initiatives
    Template showing how to inform executive stakeholders of security initiatives.

    Report on Security Initiatives.

    Security Metrics
    Template showing how to inform executive stakeholders of current security metrics that would help drive future initiatives.

    Security Metrics.

    Security Incident Response & Recovery
    Template showing how to inform executive stakeholders of security incidents, their impact, and the response plan.

    Security Incident Response & Recovery

    Security Funding Request
    Template showing how to inform executive stakeholders of security incidents, their impact, and the response plan.

    Security Funding Request

    Key template:

    Security and Risk Update

    Template showing how to inform executive stakeholders of proactive security and risk initiatives.

    Blueprint benefits

    IT/InfoSec benefits

    Business benefits

    • Reduce effort and time spent preparing cybersecurity presentations for executive stakeholders by having templates to use.
    • Enable security leaders to better prepare what to present and how to present it to their executive stakeholders, as well as driving the required outcomes from those presentations.
    • Establish a best practice for communicating security and IT to executive stakeholders.
    • Gain increased awareness of cybersecurity and the impact executive stakeholders can have on improving an organization’s security posture.
    • Understand how security’s alignment with the business will enable the strategic growth of the organization.
    • Gain a better understanding of how security and IT objectives are developed and justified.

    Measure the value of this blueprint

    Phase

    Measured Value (Yearly)

    Phase 1: Identify communication goals

    Cost to define drivers and goals for communicating security to executives:

    16 FTE hours @ $233K* =$1,940

    Phase 2: Collect information to support goals

    Cost to collect and synthesize necessary data to support communication goals:

    16 FTE hours @ $233K = $1,940

    Phase 3: Develop communication

    Cost to develop communication material that will contextualize information being shown:

    16 FTE hours @ $233K = $1,940

    Phase 4: Deliver communication

    Potential Savings:

    Total estimated effort = $5,820

    Our blueprint will help you save $5,820 and over 40 FTE hours

    * The financial figure depicts the annual salary of a CISO in 2022

    Source: Chief Information Security Officer Salary.” Salary.com, 2022

    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

    Phase 1

    Identify communication goals

    Phase 1 Phase 2 Phase 3 Phase 4

    1.1 Identify drivers for communicating to executives

    1.2 Define your goals for communicating to executives

    2.1 Identify data to collect

    2.2 Plan how to retrieve data

    3.1 Plan communication

    3.2 Build a compelling communication document

    4.1 Deliver a captivating presentation

    4.2 Obtain/verify support for security goals

    This phase will walk you through the following activities:

    • Understanding the different drivers for communicating security to executive stakeholders
    • Identifying different communication goals

    This phase involves the following participants:

    • Security leader

    1.1. Identify drivers for communicating to executive stakeholders

    As a security leader, you meet with executives and stakeholders with diverse backgrounds, and you aim to showcase your organization’s security posture along with its alignment with the business’ goals.

    However, with the constant changes in the security threat landscape, demands and drivers for security could change. Thus, understanding potential drivers that will influence your communication will assist you in developing and delivering an effective security presentation.

    39% of organizations had cybersecurity on the agenda of their board’s quarterly meeting.

    Source: EY, 2021.

    Info-Tech Insight

    Not all security presentations are the same. Keep your communication strategy and processes agile.

    Know your drivers for security presentations

    By understanding the influences for your security presentations, you will be able to better plan what to present to executive stakeholders.

    • These meetings, which are usually held once per quarter, provide you with less than one hour of presentation time.
    • Hence, it is crucial to know why you need to present security and whether these drivers are similar across the other presentations.

    Understanding drivers will also help you understand how to present security to executive stakeholders.

    • These drivers will shape the structure of your presentation and help determine your approach to communicating your goals.
    • For example, financial-based presentations that are driven by budget requests might create a sense of urgency or assurance about investment in a security initiative.

    Identify your communication drivers, which can stem from various initiatives and programs, including:

    • Results from internal or external audit reports.
    • Upcoming budget meetings.
    • Briefing newly elected executive stakeholders on security.

    When it comes to identifying your communication drivers, you can collaborate with subject matter experts, like your corporate secretary or steering committees, to ensure the material being communicated will align with some of the organizational goals.

    Examples of drivers for security presentations

    Audit
    Upcoming internal or external audits might require updates on the organization’s compliance

    Organizational restructuring
    Restructuring within an organization could require security updates

    Merger & Acquisition
    An M&A would trigger presentations on organization’s current and future security posture

    Cyber incident
    A cyberattack would require an immediate presentation on its impact and the incident response plan

    Ad hoc
    Provide security information requested by stakeholders

    1.2. Define your goals for communicating to executives

    After identifying drivers for your communication, it’s important to determine what your goals are for the presentation.

    • Communication drivers are mainly triggers for why you want to present security.
    • Communication goals are the potential outcomes you are hoping to obtain from the presentation.
    • Your communication goals would help identify what data and metrics to include in your presentation, the structure of your communication deck, and how you deliver your communication to executive stakeholders.

    Identifying your communication goals could require the participation of the security team, IT leadership, and other business stakeholders.

    • As a group, brainstorm the security goals that align with your business goals for the coming year.
      • Aim to have at least two business goals that align with each security goal.
    • Identify what benefits and value the executive stakeholders will gain from the security goal being presented.
      • E.g. Increased security awareness, updates on organization's security posture.
    • Identify what the ask is for this presentation.
      • E.g. Approval for increasing budget to support security initiatives, executive support to implement internal security programs.

    Info-Tech Insight

    There can be different reasons to communicate security to executive stakeholders. You need to understand what you want to get out of your presentation.

    Examples of security presentation goals

    Educate
    Educate the board on security trends and/or latest risks in the industry

    Update
    Provide updates on security initiatives, relevant security metrics, and compliance posture

    Inform
    Provide an incident response plan due to a security incident or deliver updates on current threats and risks

    Investment
    Request funding for security investments or financial updates on past security initiatives

    Ad hoc
    Provide security information requested by stakeholders

    Phase 2

    Collect information to support goals

    Phase 1Phase 2Phase 3Phase 4

    1.1 Identify drivers for communicating to executives

    1.2 Define your goals for communicating to executives

    2.1 Identify data to collect

    2.2 Plan how to retrieve data

    3.1 Plan communication

    3.2 Build a compelling communication document

    4.1 Deliver a captivating presentation

    4.2 Obtain/verify support for security goals

    This phase will walk you through the following activities:

    • Understanding what types of data to include in your security presentations
    • Defining where and how to retrieve data

    This phase involves the following participants:

    • Security leader
    • Network/security analyst

    2.1 Identify data to collect

    After identifying drivers and goals for your communication, it’s important to include the necessary data to justify the information being communicated.

    • Leveraging data and analytics will assist in providing quantitative-based communication, which will result in a more meaningful and effective presentation.
    • The data presented will showcase the visibility of an organization’s security posture along with potential risks and figures on how to mitigate those risks.
    • Providing analysis of the quantitative data presented will also showcase further insights on the figures, allow the audience to better understand the data, and show its relevance to the communication goals.

    Identifying data to collect doesn’t need to be a rigorous task; you can follow these steps to help you get started:

    • Work with your security team to identify the main type of data applicable to the communication goals.
      • E.g. Financial data would be meaningful to use when communicating a budget presentation.
    • Identify supporting data linked to the main data defined.
      • E.g. If a financial investment is made to implement a security initiative, then metrics on improvements to the security posture will be relevant.
    • Show how both the main and supporting data align with the communication goals.
      • E.g. Improvement in security posture would increase alignment with regulation standards, which would result in additional contracts being awarded and increased revenue.

    Info-Tech Insight

    Understand how to present your information in a way that will be meaningful to your audience, for instance by quantifying security risks in financial terms.

    Examples of data to present

    Educate
    Number of organizations in industry impacted by data breaches during past year; top threats and risks affecting the industries

    Update
    Degree of compliance with standards (e.g. ISO-27001); metrics on improvement of security posture due to security initiatives

    Inform
    Percentage of impacted clients and disrupted business functions; downtime; security risk likelihood and financial impact

    Investment
    Capital and operating expenditure for investment; ROI on past and future security initiatives

    Ad hoc
    Number of security initiatives that went over budget; phishing test campaign results

    2.2 Plan how to retrieve the data

    Once the data that is going to be used for the presentation has been identified, it is important to plan how the data can be retrieved, processed, and shared.

    • Most of the data leveraged for security presentations are structured data, which are highly organized data that are often stored in a relational and easily searchable database.
      • This includes security log reports or expenditures for ongoing and future security investments.
    • Retrieving the data, however, would require collaboration and cooperation from different team members.
    • You would need to work with the security team and other appropriate stakeholders to identify where the data is stored and who the data owner is.

    Once the data source and owner has been identified, you need to plan how the data would be processed and leveraged for your presentation

    • This could include using queries to retrieve the relevant information needed (e.g. SQL, Microsoft Excel).
    • Verify the accuracy and relevance of the data with other stakeholders to ensure it is the most appropriate data to be presented to the executive stakeholders.

    Info-Tech Insight

    Using a data-driven approach to help support your objectives is key to engaging with your audience.

    Plan where to retrieve the data

    Identifying the relevant data sources to retrieve your data and the appropriate data owner enables efficient collaboration between departments collecting, processing, and communicating the data and graphics to the audience.

    Examples of where to retrieve your data

    Data Source

    Data

    Data Owner

    Communication Goal

    Audit & Compliance Reports

    Percentage of controls completed to be certified with ISO 27001; Number of security threats & risks identified.

    Audit Manager;

    Compliance Manager;

    Security Leader

    Ad hoc, Educate, Inform

    Identity & Access Management (IAM) Applications

    Number of privileged accounts/department; Percentage of user accounts with MFA applied

    Network/Security Analyst

    Ad hoc, Inform, Update

    Security Information & Event Management (SIEM)

    Number of attacks detected and blocked before & after implementing endpoint security; Percentage of firewall rules that triggered a false positive

    Network/Security Analyst

    Ad hoc, Inform, Update

    Vulnerability Management Applications

    Percentage of critical vulnerabilities patched; Number of endpoints encrypted

    Network/Security Analyst

    Ad hoc, Inform, Update

    Financial & Accounting Software

    Capital & operating expenditure for future security investments; Return on investment (ROI) on past and current security investments

    Financial and/or Accounting Manager

    Ad hoc, Educate, Investments

    Phase 3

    Develop communication

    Phase 1Phase 2Phase 3Phase 4

    1.1 Identify drivers for communicating to executives

    1.2 Define your goals for communicating to executives

    2.1 Identify data to collect

    2.2 Plan how to retrieve data

    3.1 Plan communication

    3.2 Build a compelling communication document

    4.1 Deliver a captivating presentation

    4.2 Obtain/verify support for security goals

    This phase will walk you through the following activities:

    • Identifying a communication strategy for presenting security
    • Identifying security templates that are applicable to your presentation

    This phase involves the following participants:

    • Security leader

    3.1 Plan communication: Know who your audience is

    • When preparing your communication, it's important to understand who your target audience is and to conduct background research on them.
    • This will help develop your communication style and ensure your presentation caters to the expected audience in the room.

    Examples of two profiles in a boardroom

    Formal board of directors

    The executive team

    • In the private sector, this will include an appointed board of shareholders and subcommittees external to the organization.
    • In the public sector, this can include councils, commissions, or the executive team itself.
    • In government, this can include mayors, ministers, and governors.
    • The board’s overall responsibility is governance.
    • This audience will include your boss and your peers internal to the organization.
    • This category is primarily involved in the day-to-day operations of the organization and is responsible for carrying out the strategic direction set by the board.
    • The executive team’s overall responsibility is operations.

    3.1.1 Know what your audience cares about

    • Understanding what your executive stakeholders value will equip you with the right information to include in your presentations.
    • Ensure you conduct background research on your audience to assist you in knowing what their potential interests are.
    • Your background research could include:
      • Researching the audience’s professional background through LinkedIn.
      • Reviewing their comments from past executive meetings.
      • Researching current security trends that align with organizational goals.
    • Once the values and risks have been identified, you can document them in notes and share the notes with subject matter experts to verify if these values and risks should be shared in the coming meetings.

    A board’s purpose can include the following:

    • Sustaining and expanding the organization’s purpose and ability to execute in a competitive market.
    • Determining and funding the organization’s future and direction.
    • Protecting and increasing shareholder value.
    • Protecting the company’s exposure to risks.

    Examples of potential values and risks

    • Business impact
    • Financial impact
    • Security and incidents

    Info-Tech Insight
    Conduct background research on audience members (e.g. professional background on LinkedIn) to help understand how best to communicate to them and overcome potential objections.

    Understand your audience’s concerns

    • Along with knowing what your audience values and cares about, understanding their main concerns will allow you to address those items or align them with your communication.
    • By treating your executive stakeholders as your project sponsors, you would build a level of trust and confidence with your peers as the first step to tackling their concerns.
    • These concerns can be derived from past stakeholder meetings, recent trends in the industry, or strategic business alignments.
    • After capturing their concerns, you’ll be equipped with the necessary understanding on what material to include and prioritize during your presentations.

    Examples of potential concerns for each profile of executive stakeholders

    Formal board of directors

    The executive team

    • Business impact (What is the impact of IT in solving business challenges?)
    • Investments (How will it impact organization’s finances and efficiency?)
    • Cybersecurity and risk (What are the top cybersecurity risks, and how is IT mitigating those risks to the business?)
    • Business alignment (How do IT priorities align to the business strategy and goals?)
    • IT operational efficiency (How is IT set up for success with foundational elements of IT’s operational strategy?)
    • Innovation & transformation priorities (How is IT enabling the organization’s competitive advantage and supporting transformation efforts as a strategic business partner?)

    Build your presentation to tackle their main concerns

    Your presentation should be well-rounded and compelling when it addresses the board’s main concerns about security.

    Checklist:

    • Research your target audience (their backgrounds, board composition, dynamics, executive team vs. external group).
    • Include value and risk language in your presentation to appeal to your audience.
    • Ensure your content focuses on one or more of the board’s main concerns with security (e.g. business impact, investments, or risk).
    • Include information about what is in it for them and the organization.
    • Research your board’s composition and skillsets to determine their level of technical knowledge and expertise. This helps craft your presentation with the right amount of technology vs. business-facing information.

    Info-Tech Insight
    The executive stakeholder’s main concerns will always boil down to one important outcome: providing a level of confidence to do business through IT products, services, and systems – including security.

    3.1.2 Take your audience through a security journey

    • Once you have defined your intended target and their potential concerns, developing the communication through a storytelling approach will be the next step to help build a compelling presentation.
    • You need to help your executive stakeholders make sense of the information being conveyed and allow them to understand the importance of cybersecurity.
    • Taking your audience through a story will allow them to see the value of the information being presented and better resonate with its message.
    • You can derive insights for your storytelling presentation by doing the following:
      • Provide a business case scenario on the topic you are presenting.
      • Identify and communicate the business problem up front and answer the three questions (why, what, how).
      • Quantify the problems in terms of business impact (money, risk, value).

    Info-Tech Insight
    Developing a storytelling approach will help keep your audience engaged and allow the information to resonate with them, which will add further value to the communication.

    Identify the purpose of your presentation

    You should be clear about your bottom line and the intent behind your presentation. However, regardless of your bottom line, your presentation must focus on what business problems you are solving and why security can assist in solving the problem.

    Examples of communication goals

    To inform or educate

    To reach a decision

    • In this presentation type, it is easy for IT leaders to overwhelm a board with excessive or irrelevant information.
    • Focus your content on the business problem and the solution proposed.
    • Refrain from too much detail about the technology – focus on business impact and risk mitigated. Ask for feedback if applicable.
    • In this presentation type, there is a clear ask and an action required from the board of directors.
    • Be clear about what this decision is. Once again, don’t lead with the technology solution: Start with the business problem you are solving, and only talk about technology as the solution if time permits.
    • Ensure you know who votes and how to garner their support.

    Info-Tech Insight
    Nobody likes surprises. Communicate early and often. The board should be pre-briefed, especially if it is a difficult subject. This also ensures you have support when you deliver a difficult message.

    Gather the right information to include in your boardroom presentation

    Once you understand your target audience, it’s important to tailor your presentation material to what they will care about.

    Typical IT boardroom presentations include:

    • Communicating the value of ongoing business technology initiatives.
    • Requesting funds or approval for a business initiative that IT is spearheading.
    • Security incident response/Risk/DRP.
    • Developing a business program or an investment update for an ongoing program.
    • Business technology strategy highlights and impacts.
    • Digital transformation initiatives (value, ROI, risk).

    Info-Tech Insight
    You must always have a clear goal or objective for delivering a presentation in front of your board of directors. What is the purpose of your board presentation? Identify your objective and outcome up front and tailor your presentation’s story and contents to fit this purpose.

    Info-Tech Insight
    Telling a good story is not about the message you want to deliver but the one the executive stakeholders want to hear. Articulate what you want them to think and what you want them to take away, and be explicit about it in your presentation. Make your story logically flow by identifying the business problem, complication, the solution, and how to close the gap. Most importantly, communicate the business impacts the board will care about.

    Structure your presentation to tell a logical story

    To build a strong story for your presentation, ensure you answer these three questions:

    WHY

    Why is this a business issue, or why should the executive stakeholders care?

    WHAT

    What is the impact of solving the problem and driving value for the company?

    HOW

    How will we leverage our resources (technology, finances) to solve the problem?

    Examples:

    Scenario 1: The company has experienced a security incident.

    Intent: To inform/educate the board about the security incident.

    WHY

    The data breach has resulted in a loss of customer confidence, negative brand impact, and a reduction in revenue of 30%.

    WHAT

    Financial, legal, and reputational risks identified, and mitigation strategies implemented. IT is working with the PR team on communications. Incident management playbook executed.

    HOW

    An analysis of vulnerabilities was conducted and steps to address are in effect. Recovery steps are 90% completed. Incident management program reviewed for future incidents.

    Scenario 2: Security is recommending investments based on strategic priorities.

    Intent: To reach a decision with the board – approve investment proposal.

    WHY

    The new security strategy outlines two key initiatives to improve an organization’s security culture and overall risk posture.

    WHAT

    Security proposed an investment to implement a security training & phishing test campaign, which will assist in reducing data breach risks.

    HOW

    Use 5% of security’s budget to implement security training and phishing test campaigns.

    Time plays a key role in delivering an effective presentation

    What you include in your story will often depend on how much time you have available to deliver the message.

    Consider the following:

    • Presenting to executive stakeholders often means you have a short window of time to deliver your message. The average executive stakeholder presentation is 15 minutes, and this could be cut short due to other unexpected factors.
    • If your presentation is too long, you risk overwhelming or losing your audience. You must factor in the time constraints when building your board presentation.
    • Your executive stakeholders have a wealth of experience and knowledge, which means they could jump to conclusions quickly based on their own experiences. Ensure you give them plenty of background information in advance. Provide your presentation material, a brief, or any other supporting documentation before the meeting to show you are well prepared.
    • Be prepared to have deep conversations about the topic, but respect that the executive stakeholders might not be interested in hearing the tactical information. Build an elevator pitch, a one-pager, back-up slides that support your ask and the story, and be prepared to answer questions within your allotted presentation time to dive deeper.

    Navigating through Q&A

    Use the Q&A portion to build credibility with the board.

    • It is always better to say, “I’m not certain about the answer but will follow up,” than to provide false or inaccurate information on the spot.
    • When asked challenging or irrelevant questions, ensure you have an approach to deflect them. Questions can often be out of scope or difficult to answer in a group. Find what works for you to successfully navigate through these questions:
      • “Let’s work with the sub-committee to find you an answer.”
      • “Let’s take that offline to address in more detail.”
      • “I have some follow-up material I can provide you to discuss that further after our meeting.”
    • And ensure you follow up! Make sure to follow through on your promise to provide information or answers after the meeting. This helps build trust and credibility with the board.

    Info-Tech Insight
    The average board presentation is 15 minutes long. Build no more than three or four slides of content to identify the business problem, the business impacts, and the solution. Leave five minutes for questions at the end, and be prepared with back-up slides to support your answers.

    Storytelling checklist

    Checklist:

    • Tailor your presentation based on how much time you have.
    • Find out ahead of time how much time you have.
    • Identify if your presentation is to inform/educate or reach a decision.
    • Identify and communicate the business problem up front and answer the three questions (why, what, how).
    • Express the problem in terms of business impact (risk, value, money).
    • Prepare and send pre-meeting collateral to the members of the board and executive team.
    • Include no more than 5-6 slides for your presentation.
    • Factor in Q&A time at the end of your presentation window.
    • Articulate what you want them to think and what you want them to take away – put it right up front and remind them at the end.
    • Have an elevator speech handy – one or two sentences and a one-pager version of your story.
    • Consider how you will build your relationship with the members outside the boardroom.

    3.1.3 Build a compelling communication document

    Once you’ve identified your communication goals, data, and plan to present to your stakeholders, it’s important to build the compelling communication document that will attract all audiences.

    A good slide design increases the likelihood that the audience will read the content carefully.

    • Bad slide structure (flow) = Audience loses focus
      • You can have great content on a slide, but if a busy audience gets confused, they’ll just close the file or lose focus. Structure encompasses horizontal and vertical logic.
    • Good visual design = Audience might read more
      • Readers will probably skim the slides first. If the slides look ugly, they will already have a negative impression. If the slides are visually appealing, they will be more inclined to read carefully. They may even use some slides to show others.
    • Good content + Good structure + Visual appeal = Good presentation
      • A presentation is like a house. Good content is the foundation of the house. Good structure keeps the house strong. Visual appeal differentiates houses.

    Slide design best practices

    Leverage these slide design best practices to assist you in developing eye-catching presentations.

    • Easy to read: Assume reader is tight on time. If a slide looks overwhelming, the reader will close the document.
    • Concise and clear: Fewer words = more skim-able.
    • Memorable: Use graphics and visuals or pithy quotes whenever you can do so appropriately.
    • Horizontal logic: Good horizontal logic will have slide titles that cascade into a story with no holes or gaps.
    • Vertical logic: People usually read from left to right, top to bottom, or in a Z pattern. Make sure your slide has an intuitive flow of content.
    • Aesthetics: People like looking at visually appealing slides, but make sure your attempts to create visual appeal do not detract from the content.

    Your presentation must have a logical flow

    Horizontal logic

    Vertical logic

    • Horizontal logic should tell a story.
    • When slide titles are read in a cascading manner, they will tell a logical and smooth story.
    • Title & tagline = thesis (best insight).
    • Vertical logic should be intuitive.
    • Each step must support the title.
    • The content you intend to include within each slide is directly applicable to the slide title.
    • One main point per slide.

    Vertical logic should be intuitive

    The image contains a screenshot example of a bad design layout for a slide. The image contains a screenshot example of a good design layout for a slide.

    The audience is unsure where to look and in what order.

    The audience knows to read the heading first. Then look within the pie chart. Then look within the white boxes to the right.

    Horizontal and vertical logic checklists

    Horizontal logic

    Vertical logic

    • List your slide titles in order and read through them.
    • Good horizontal logic should feel like a story. Incomplete horizontal logic will make you pause or frown.
    • After a self-test, get someone else to do the same exercise with you observing them.
    • Note at which points they pause or frown. Discuss how those points can be improved.
    • Now consider each slide title proposed and the content within it.
    • Identify if there is a disconnect in title vs. content.
    • If there is a disconnect, consider changing the title of the slide to appropriately reflect the content within it, or consider changing the content if the slide title is an intended path in the story.

    Make it easy to read

    The image contains a screenshot that demonstrates an uneasy to read slide. The image contains a screenshot that demonstrates an easy to read slide.
    • Unnecessary coloring makes it hard on the eyes
    • Margins for title at top is too small
    • Content is not skim-able (best to break up the slide)

    Increase skim-ability:

    • Emphasize the subheadings
    • Bold important words

    Make it easier on the eyes:

    • Declutter and add sections
    • Have more white space

    Be concise and clear

    1. Write your thoughts down
      • This gets your content documented.
      • Don’t worry about clarity or concision yet.
    2. Edit for clarity
      • Make sure the key message is very clear.
      • Find your thesis statement.
    3. Edit for concision
      • Remove unnecessary words.
      • Use the active voice, not passive voice (see below for examples).

    Passive voice

    Active voice

    “There are three things to look out for” (8 words)

    “Network security was compromised by hackers” (6 words)

    “Look for these three things” (5 words)

    “Hackers compromised network security” (4 words)

    Be memorable

    The image contains a screenshot of an example that demonstrates a bad example of how to be memorable. The image contains a screenshot of an example that demonstrates a good example of how to be memorable.

    Easy to read, but hard to remember the stats.

    The visuals make it easier to see the size of the problem and make it much more memorable.

    Remember to:

    • Have some kind of visual (e.g. graphs, icons, tables).
    • Divide the content into sections.
    • Have a bit of color on the page.

    Aesthetics

    The image contains a screenshot of an example of bad aesthetics. The image contains a screenshot of an example of good aesthetics.

    This draft slide is just content from the outline document on a slide with no design applied yet.

    • Have some kind of visual (e.g. graphs, icons, tables) as long as it’s appropriate.
    • Divide the content into sections.
    • Have a bit of color on the page.
    • Bold or italicize important text.

    Why use visuals?

    How graphics affect us

    Cognitively

    • Engage our imagination
    • Stimulate the brain
    • Heighten creative thinking
    • Enhance or affect emotions

    Emotionally

    • Enhance comprehension
    • Increase recollection
    • Elevate communication
    • Improve retention

    Visual clues

    • Help decode text
    • Attract attention
    • Increase memory

    Persuasion

    • 43% more effective than text alone
    Source: Management Information Systems Research Center

    Presentation format

    Often stakeholders prefer to receive content in a specific format. Make sure you know what you require so that you are not scrambling at the last minute.

    • Is there a standard presentation template?
    • Is a hard-copy handout required?
    • Is there a deadline for draft submission?
    • Is there a deadline for final submission?
    • Will the presentation be circulated ahead of time?
    • Do you know what technology you will be using?
    • Have you done a dry run in the meeting room?
    • Do you know the meeting organizer?

    Checklist to build compelling visuals in your presentation

    Leverage this checklist to ensure you are creating the perfect visuals and graphs for your presentation.

    Checklist:

    • Do the visuals grab the audience’s attention?
    • Will the visuals mislead the audience/confuse them?
    • Do the visuals facilitate data comparison or highlight trends and differences in a more effective manner than words?
    • Do the visuals present information simply, cleanly, and accurately?
    • Do the visuals display the information/data in a concentrated way?
    • Do the visuals illustrate messages and themes from the accompanying text?

    3.2 Security communication templates

    Once you have identified your communication goals and plans for building your communication document, you can start building your presentation deck.

    These presentation templates highlight different security topics depending on your communication drivers, goals, and available data.

    Info-Tech has created five security templates to assist you in building a compelling presentation.

    These templates provide support for presentations on the following five topics:

    • Security Initiatives
    • Security & Risk Update
    • Security Metrics
    • Security Incident Response & Recovery
    • Security Funding Request

    Each template provides instructions on how to use it and tips on ensuring the right information is being presented.

    All the templates are customizable, which enables you to leverage the sections you need while also editing any sections to your liking.

    The image contains screenshots of the Security Presentation Templates.

    Download the Security Presentation Templates

    Security template example

    It’s important to know that not all security presentations for an organization are alike. However, these templates would provide a guideline on what the best practices are when communicating security to executive stakeholders.

    Below is an example of instructions to complete the “Security Risk & Update” template. Please note that the security template will have instructions to complete each of its sections.

    The image contains a screenshot of the Executive Summary slide. The image contains a screenshot of the Security Goals & Objectives slide.

    The first slide following the title slide includes a brief executive summary on what would be discussed in the presentation. This includes the main security threats that would be addressed and the associated risk mitigation strategies.

    This slide depicts a holistic overview of the organization’s security posture in different areas along with the main business goals that security is aligning with. Ensure visualizations you include align with the goals highlighted.

    Security template example (continued)

    The image contains a screenshot example of the Top Threats & Risks. The image contains a screenshot example of the Top Threats & Risks.

    This slide displays any top threats and risks an organization is facing. Each threat consists of 2-3 risks and is prioritized based on the negative impact it could have on the organization (i.e. red bar = high priority; green bar = low priority). Include risks that have been addressed in the past quarter, and showcase any prioritization changes to those risks.

    This slide follows the “Top Threats & Risks” slide and focuses on the risks that had medium or high priority. You will need to work with subject matter experts to identify risk figures (likelihood, financial impact) that will enable you to quantify the risks (Likelihood x Financial Impact). Develop a threshold for each of the three columns to identify which risks require further prioritization, and apply color coding to group the risks.

    Security template example (continued)

    The image contains a screenshot example of the slide, Risk Analysis. The image contains a screenshot example of the slide, Risk Mitigation Strategies & Roadmap.

    This slide showcases further details on the top risks along with their business impact. Be sure to include recommendations for the risks and indicate whether further action is required from the executive stakeholders.

    The last slide of the “Security Risk & Update” template presents a timeline of when the different initiatives to mitigate security risks would begin. It depicts what initiatives will be completed within each fiscal year and the total number of months required. As there could be many factors to a project’s timeline, ensure you communicate to your executive stakeholders any changes to the project.

    Phase 4

    Deliver communication

    Phase 1Phase 2Phase 3Phase 4

    1.1 Identify drivers for communicating to executives

    1.2 Define your goals for communicating to executives

    2.1 Identify data to collect

    2.2 Plan how to retrieve data

    3.1 Plan communication

    3.2 Build a compelling communication document

    4.1 Deliver a captivating presentation

    4.2 Obtain/verify support for security goals

    This phase will walk you through the following activities:

    • Identifying a strategy to deliver compelling presentations
    • Ensuring you follow best practices for communicating and obtaining your security goals

    This phase involves the following participants:

    • Security leader

    4.1 Deliver a captivating presentation

    You’ve gathered all your data, you understand what your audience is expecting, and you are clear on the outcomes you require. Now, it’s time to deliver a presentation that both engages and builds confidence.

    Follow these tips to assist you in developing an engaging presentation:

    • Start strong: Give your audience confidence that this will be a good investment of their time. Establish a clear direction for what’s going to be covered and what the desired outcome is.
    • Use your time wisely: Odds are, your audience is busy, and they have many other things on their minds. Be prepared to cover your content in the time allotted and leave sufficient time for discussion and questions.
    • Be flexible while presenting: Do not expect that your presentation will follow the path you have laid out. Anticipate jumping around and spending more or less time than you had planned on a given slide.

    Keep your audience engaged with these steps

    • Be ready with supporting data. Don’t make the mistake of not knowing your content intimately. Be prepared to answer questions on any part of it. Senior executives are experts at finding holes in your data.
    • Know your audience. Who are you presenting to? What are their specific expectations? Are there sensitive topics to be avoided? You can’t be too prepared when it comes to understanding your audience.
    • Keep it simple. Don’t assume that your audience wants to learn the details of your content. Most just want to understand the bottom line, the impact on them, and how they can help. More is not always better.
    • Focus on solving issues. Your audience members have many of their own problems and issues to worry about. If you show them how you can help make their lives easier, you’ll win them over.

    Info-Tech Insight
    Establishing credibility and trust with executive stakeholders is important to obtaining their support for security objectives.

    Be honest and straightforward with your communication

    • Be prepared. Being properly prepared means not only that your update will deliver the value that you expect, but also that you will have confidence and the flexibility you require when you’re taken off track.
    • Don’t sugarcoat it. These are smart, driven people that you are presenting to. It is neither beneficial nor wise to try to fool them. Be open and transparent about problems and issues. Ask for help.
    • No surprises. An executive stakeholder presentation is not the time or the place for a surprise. Issues seen as unexpected or contentious should always be dealt with prior to the meeting with those most impacted.

    Hone presentation skills before meeting with the executive stakeholders

    Know your environment

    Be professional but not boring

    Connect with your audience

    • Your organization has standards for how people are expected to dress at work. Make sure that your attire meets this standard – don’t be underdressed.
    • Think about your audience – would they appreciate you starting with a joke, or do they want you to get to the point as quickly as possible?
    • 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 with lots of energy, smile, and use hand gestures to support your speech.
    • 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 on you.
    • Never read from your slides. If there is text on a slide, paraphrase it while maintaining eye contact.

    Checklist for presentation logistics

    Optimize the timing of your presentation:

    • Less is more: Long presentations are detrimental to your cause – they lead to your main points being diluted. Keep your presentation short and concise.
    • Keep information relevant: Only present information that is important to your audience. This includes the information that they are expecting to see and information that connects to the business.
    • Expect delays: Your audience will likely have questions. While it is important to answer each question fully, it will take away from the precious time given to you for your presentation. Expect that you will not get through all the information you have to present.

    Script your presentation:

    • Use a script to stay on track: Script your presentation before the meeting. A script will help you present your information in a concise and structured manner.
    • Develop a second script: Create a script that is about half the length of the first script but still contains the most important points. This will help you prepare for any delays that may arise during the presentation.
    • Prepare for questions: Consider questions that may be asked and script clear and concise answers to each.
    • Practice, practice, practice: Practice your presentation until you no longer need the script in front of you.

    Checklist for presentation logistics (continued)

    Other considerations:

    • After the introduction of your presentation, clearly state the objective – don’t keep people guessing and consequently lose focus on your message.
    • After the presentation is over, document important information that came up. Write it down or you may forget it soon after.
    • Rather than create a long presentation deck full of detailed slides that you plan to skip over during the presentation, create a second, compact deck that contains only the slides you plan to present. Send out the longer deck after the presentation.

    Checklist for delivering a captivating presentation

    Leverage this checklist to ensure you are prepared to develop and deliver an engaging presentation.

    Checklist:

    • Start with a story or something memorable to break the ice.
    • Go in with the end state in mind (focus on the outcome/end goal and work back from there) – What’s your call to action?
    • Content must compliment your end goal, filter out any content that doesn’t compliment the end goal.
    • Be prepared to have less time to speak. Be prepared with shorter versions of your presentation.
    • Include an appendix with supporting data, but don’t be data heavy in your presentation. Integrate the data into a story. The story should be your focus.

    Checklist for delivering a captivating presentation (continued)

    • Be deliberate in what you want to show your audience.
    • Ensure you have clean slides so the audience can focus on what you’re saying.
    • Practice delivering your content multiple times alone and in front of team members or your Info-Tech counselor, who can provide feedback.
    • How will you handle being derailed? Be prepared with a way to get back on track if you are derailed.
    • Ask for feedback.
    • Record yourself presenting.

    4.2 Obtain and verify support on security goals

    Once you’ve delivered your captivating presentation, it’s imperative to communicate with your executive stakeholders.

    • This is your opportunity to open the floor for questions and clarify any information that was conveyed to your audience.
    • Leverage your appendix and other supporting documents to justify your goals.
    • Different approaches to obtaining and verifying your goals could include:
      • Acknowledgment from the audience that information communicated aligns with the business’s goals.
      • Approval of funding requests for security initiatives.
      • Written and verbal support for implementation of security initiatives.
      • Identifying next steps for information to communicate at the next executive stakeholder meeting.

    Info-Tech Insight
    Verifying your objectives at the end of the presentation is important, as it ensures you have successfully communicated to executive stakeholders.

    Checklist for obtaining and verify support on security goals

    Follow this checklist to assist you in obtaining and verifying your communication goals.

    Checklist:

    • Be clear about follow-up and next steps if applicable.
    • Present before you present: Meet with your executive stakeholders before the meeting to review and discuss your presentation and other supporting material and ensure you have executive/CEO buy-in.
    • “Be humble, but don’t crumble” – demonstrate to the executive stakeholders that you are an expert while admitting you don’t know everything. However, don’t be afraid to provide your POV and defend it if need be. Strike the right balance to ensure the board has confidence in you while building a strong relationship.
    • Prioritize a discussion over a formal presentation. Create an environment where they feel like they are part of the solution.

    Summary of Accomplishment

    Problem Solved

    A better understanding of security communication drivers and goals

    • Understanding the difference between communication drivers and goals
    • Identifying your drivers and goals for security presentation

    A developed a plan for how and where to retrieve data for communication

    • Insights on what type of data can be leveraged to support your communication goals
    • Understanding who you can collaborate with and potential data sources to retrieve data from

    A solidified communication plan with security templates to assist in better presenting to your audience

    • A guideline on how to prepare security presentations to executive stakeholders
    • A list of security templates that can be customized and used for various security presentations

    A defined guideline on how to deliver a captivating presentation to achieve your desired objectives

    • Clear message on best practices for delivering security presentations to executive stakeholders
    • Understanding how to verify your communication goals have been obtained

    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

    Build an Information Security Strategy
    This blueprint will walk you through the steps of tailoring best practices to effectively manage information security.

    Build a Security Metrics Program to Drive Maturity
    This blueprint will assist you in identifying security metrics that can tie to your organizational goals and build those metrics to achieve your desired maturity level.

    Bibliography

    Bhadauriya, Amit S. “Communicating Cybersecurity Effectively to the Board.” Metricstream. Web.
    Booth, Steven, et al. “The Biggest Mistakes Made When Presenting Cyber Security to Senior Leadership or the Board, and How to Fix Them.” Mandiant, May 2019. Web.
    Bradford, Nate. “6 Slides Every CISO Should Use in Their Board Presentation.” Security Boulevard, 9 July 2020. Web.
    Buckalew, Lauren, et al. “Get the Board on Board: Leading Cybersecurity from the Top Down.” Newsroom, 2 Dec. 2019. Web.
    Burg, Dave, et al. “Cybersecurity: How Do You Rise above the Waves of a Perfect Storm?” EY US - Home, EY, 22 July 2021. Web.
    Carnegie Endowment for International Peace. Web.
    “Chief Information Security Officer Salary.” Salary.com, 2022. Web.
    “CISO's Guide to Reporting to the Board - Apex Assembly.” CISO's Guide To Reporting to the Board. Web.
    “Cyber Security Oversight in the Boardroom” KPMG, Jan. 2016. Web.
    “Cybersecurity CEO: My 3 Tips for Presenting in the Boardroom.” Cybercrime Magazine, 31 Mar. 2020. Web.
    Dacri , Bryana. Do's & Don'ts for Security Professionals Presenting to Executives. Feb. 2018. Web.
    Froehlich, Andrew. “7 Cybersecurity Metrics for the Board and How to Present Them: TechTarget.” Security, TechTarget, 19 Aug. 2022. Web.
    “Global Board Risk Survey.” EY. Web.
    “Guidance for CISOs Presenting to the C-Suite.” IANS, June 2021. Web.
    “How to Communicate Cybersecurity to the Board of Directors.” Cybersecurity Conferences & News, Seguro Group, 12 Mar. 2020. Web.
    Ide, R. William, and Amanda Leech. “A Cybersecurity Guide for Directors” Dentons. Web.
    Lindberg, Randy. “3 Tips for Communicating Cybersecurity to the Board.” Cybersecurity Software, Rivial Data Security, 8 Mar. 2022. Web.
    McLeod, Scott, et al. “How to Present Cybersecurity to Your Board of Directors.” Cybersecurity & Compliance Simplified, Apptega Inc, 9 Aug. 2021. Web.
    Mickle, Jirah. “A Recipe for Success: CISOs Share Top Tips for Successful Board Presentations.” Tenable®, 28 Nov. 2022. Web.
    Middlesworth, Jeff. “Top-down: Mitigating Cybersecurity Risks Starts with the Board.” Spiceworks, 13 Sept. 2022. Web.
    Mishra, Ruchika. “4 Things Every CISO Must Include in Their Board Presentation.” Security Boulevard, 17 Nov. 2020. Web.
    O’Donnell-Welch, Lindsey. “CISOs, Board Members and the Search for Cybersecurity Common Ground.” Decipher, 20 Oct. 2022. Web.

    Bibliography

    “Overseeing Cyber Risk: The Board's Role.” PwC, Jan. 2022. Web.
    Pearlson, Keri, and Nelson Novaes Neto. “7 Pressing Cybersecurity Questions Boards Need to Ask.” Harvard Business Review, 7 Mar. 2022. Web.
    “Reporting Cybersecurity Risk to the Board of Directors.” Web.
    “Reporting Cybersecurity to Your Board - Steps to Prepare.” Pondurance ,12 July 2022. Web.
    Staynings, Richard. “Presenting Cybersecurity to the Board.” Resource Library. Web.
    “The Future of Cyber Survey.” Deloitte, 29 Aug. 2022. Web.
    “Top Cybersecurity Metrics to Share with Your Board.” Packetlabs, 10 May 2022. Web.
    Unni, Ajay. “Reporting Cyber Security to the Board? How to Get It Right.” Cybersecurity Services Company in Australia & NZ, 10 Nov. 2022. Web.
    Vogel, Douglas, et al. “Persuasion and the Role of Visual Presentation Support.” Management Information Systems Research Center, 1986.
    “Welcome to the Cyber Security Toolkit for Boards.” NCSC. Web.

    Research Contributors

    • Fred Donatucci, New-Indy Containerboard, VP, Information Technology
    • Christian Rasmussen, St John Ambulance, Chief Information Officer
    • Stephen Rondeau, ZimVie, SVP, Chief Information Officer

    Customer Value Contribution

    I'm proud to announce our new Customer Value Contribution Calculator©, or CVCC© in short.

    It enhances and possibly replaces the BIA (Business Impact Analysis) process with a much simpler way.

    More info to follow shortly.

    Switching Software Vendors Overwhelmingly Drives Increased Satisfaction

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    • Parent Category Name: Selection & Implementation
    • Parent Category Link: /selection-and-implementation

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

    Our Advice

    Critical Insight

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

    Impact and Result

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

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

    Switching Software Vendors Overwhelmingly Drives Increased Satisfaction Research & Tools

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

    1. Why you should consider switching software vendors

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

    • Switching Existing Software Vendors Overwhelmingly Drives Increased Satisfaction Storyboard

    2. How to optimize your software vendor switching process

    Optimize your software vendor switching processes with five action steps.

    [infographic]

    Asset Management

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    • Download01-Title: Asset Management Executive Brief
    • Download-01: Visit Link
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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

    Gain Control of Cloud Integration Strategies Before they Float Away

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    • Parent Category Name: Enterprise Integration
    • Parent Category Link: /enterprise-integration
    • IT is typically backlogged with tasks while the business waits to implement key solutions to remain competitive. In this competitive space, Cloud solutions offer attractive benefits to business stakeholders especially around agility and cost.
    • Moving to the Cloud involves more than outsourcing a component of the technology stack. Roles, processes, and authentication technologies need to be redefined to fit a distributed stack where parts of the IT solution space reside on-premise while the rest are in the Cloud.
    • Cloud integration means accepting loss of control in product development. A Cloud vendor will address the needs of most constituents and any high degree of customization which counteracts their business model. This makes integration a complex initiative involving two separate parties trying to align.

    Our Advice

    Critical Insight

    • Cloud integration is a fundamental commitment to change within the organization as it deeply impacts roles, processes, and technologies.
    • Be prepared to lose some degree of control of SLA management. IT will have to manage multiple Cloud SLAs and deliver a lowest common approach to the business. This may mean lowering the SLA standards previously set with on-premise solutions.
    • Cloud integration isn’t just about the technology. It is a dedication to establish solid relationships with the Cloud vendor. Understanding where the cloud solution is moving and what issues are being addressed are critical to creating an organizational road map for the future.

    Impact and Result

    • Develop a Cloud integration strategy by proactively understanding the impact of Cloud integration efforts to the organization.
    • Realize that Cloud integration will be an ongoing process of collaboration with the business, and that the initial implementation does not constitute an end.
    • Implement an integrated support structure that includes on-premise and cloud stacks.

    Gain Control of Cloud Integration Strategies Before they Float Away Research & Tools

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

    1. Understand the impacts of Cloud computing on Data, Application, Access, and Service Level Agreement integration

    Assess your current level of Cloud adoption and integration, focusing on solutions that are emerging in the market and the applicability to your IT environment.

    • Storyboard: Gain Control of Cloud Integration Strategies Before they Float Away
    • Cloud Integration Checklist
    • None
    [infographic]

    Select Your Data Platform

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    • Parent Category Name: Data Management
    • Parent Category Link: /data-management

    Every organization needs a data management (DM) platform that enables the DM capabilities required. This could be a daunting task because:

    • Every organization has a unique set of requirements for the DM platform.
    • Software products are difficult to compare because every vendor provides a unique set of features.
    • Software vendors are interested in getting as large a footprint as possible.
    • Some products from different categories offer the same functionalities.
    • Some products are just not compatible.

    Our Advice

    Critical Insight

    • Technology requirements start with the business goals.
    • Data platform selection should be based on common best practices and, at the same time, be optimized for the organization’s specific needs and goals and support an evolutionary platform development.
    • What is best for one organization may be totally unacceptable for another – all for very valid reasons.

    Impact and Result

    Understand your current environment and use proven reference architecture patterns to expedite building the data management platform that matches your needs.

    • Use a holistic approach.
    • Understand your goals and priorities.
    • Picture your target-state architecture.
    • Identify your current technology coverage.
    • Select the software covering the gaps in technology enablement based on feature/functional enablement descriptions as well as vendor and deployment preferences.

    Select Your Data Platform Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out what challenges are typically in the way of designing a data platform, 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. Select your data platform

    Assess your current environment, find the right reference architecture pattern, and match identified capabilities with software features.

    • Data Platform Design Assessment
    • Reference Architecture Pattern

    Infographic

    Activate Your Augmented Reality Initiative

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    • member rating average days saved: Read what our members are saying
    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Augmented reality is a new technology and use cases are still emerging. Organizations have to work hard to stay ahead of the curve and predict how they will be impacted.
    • There are limited off-the-shelf augmented reality solutions in terms of business applications. IT not only needs to understand the emerging augmented reality hardware, but also the plethora of development platforms.

    Our Advice

    Critical Insight

    • Augmented reality presents a new avenue to solve problems that cannot be addressed efficiently with existing technology. It is a new tool that will impact the way you work.
    • Beyond addressing existing problems, augmented reality will provide the ability to differently execute business processes. Current processes have been designed with existing systems and capabilities in mind. Augmented reality impacts organizational design processes that are more complex.
    • As a technology with an evolving set of use cases, IT and the business must anticipate some of the challenges that may arise with the use of augmented reality (e.g. health and safety, application development, regulatory).

    Impact and Result

    • Our methodology addresses the possible issues by using a case-study approach to demonstrate the “art of the possible” for augmented reality.
    • With an understanding of augmented reality, it is possible to find applicable use cases for this emerging technology and get a leg up on competitors.
    • By utilizing Info-Tech’s Augmented Reality Use Case Picklist and the Augmented Reality Stakeholder Presentation Template, the IT team and their business stakeholders can confidently approach augmented reality adoption.

    Activate Your Augmented Reality Initiative Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why your organization should care about augmented reality’s potential to transform the workplace and how Info-Tech will support you as you identify and build your augmented reality use case.

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

    1. Understand augmented reality

    Analyze the four key benefits of augmented reality to understand how the technology can resolve industry issues.

    • Activate Your Augmented Reality Initiative – Phase 1: Understand Augmented Reality
    • Augmented Reality Glossary

    2. Finding space for augmented reality

    Develop and prioritize use cases for augmented reality using Info-Tech’s AR Initiative Framework.

    • Activate Your Augmented Reality Initiative – Phase 2: Finding Space for Augmented Reality
    • Augmented Reality Use Case Picklist

    3. Communicate project decisions to stakeholders

    Present the augmented reality initiative to stakeholders and understand the way forward for the AR initiative.

    • Activate Your Augmented Reality Initiative – Phase 3: Communicate Project Decisions to Stakeholders
    • Augmented Reality Stakeholder Presentation Template
    [infographic]

    Workshop: Activate Your Augmented Reality Initiative

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

    1 Understand Augmented Reality and Its Use Cases

    The Purpose

    Understand the fundamentals of augmented reality technology and its real-world business applications.

    Key Benefits Achieved

    A prioritized list of augmented reality use cases.

    Activities

    1.1 Introduce augmented reality technology.

    1.2 Understand augmented reality use cases.

    1.3 Review augmented reality case studies.

    Outputs

    An understanding of the history and current state of augmented reality technology.

    An understanding of “the art of the possible” for augmented reality.

    An enhanced understanding of augmented reality.

    2 Conduct an Environmental Scan and Internal Review

    The Purpose

    Examine where the organization stands in the current competitive environment.

    Key Benefits Achieved

    Understanding of what is needed from an augmented reality initiative to differentiate your organization from its competitors.

    Activities

    2.1 Environmental analysis (PEST+SWOT).

    2.2 Competitive analysis.

    2.3 Listing of interaction channels and disposition.

    Outputs

    An understanding of the internal and external propensity for augmented reality.

    An understanding of comparable organizations’ approach to augmented reality.

    A chart with the disposition of each interaction channel and its applicability to augmented reality.

    3 Parse Critical Technology Drivers

    The Purpose

    Determine which business processes will be affected by augmented reality.

    Key Benefits Achieved

    Understanding of critical technology drivers and their KPIs.

    Activities

    3.1 Identify affected process domains.

    3.2 Brainstorm impacts of augmented reality on workflow enablement.

    3.3 Distill critical technology drivers.

    3.4 Identify KPIs for each driver.

    Outputs

    A list of affected process domains.

    An awareness of critical technology drivers for the augmented reality initiative.

    Get the Best Discount Possible With a Data-Driven Negotiation Approach

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    • 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]

    Develop an IT Strategy to Support Customer Service

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    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Customer expectations regarding service are rapidly evolving. As your current IT systems may be viewed as ineffective at delivering upon these expectations, a transformation is called for.
    • It is unclear whether IT has the system architecture/infrastructure to support modern Customer Service channels and technologies.
    • The relationship between Customer Service and IT is strained. Strategic system-related decisions are being made without the inclusions of IT, and IT is only engaged post-purchase to address integration or issues as they arise.
    • Scope: An ABPM-centric approach is taken to model the desired future state, and retrospectively look into the current state to derive gaps and sequential requirements. The requirements are bundled into logical IT initiatives to be plotted on a roadmap and strategy document.
    • Challenge: The extent to which business processes can be mapped down to task-based Level 5 can be challenging depending on the maturity of the organization.
    • Pain/Risk: The health of the relationship between IT and Customer Service may determine project viability. Poor collaboration and execution may strain the relationship further.

    Our Advice

    Critical Insight

    • When transformation is called for, start with future state visioning. Current state analysis can impede your ability to see future needs and possibilities.
    • Solve your own problems by enhancing core or “traditional” Customer Service functionality first, and then move on to more ambitious business enabling functionality.
    • The more rapidly businesses can launch applications in today’s market, the better positioned they are to improve customer experience and reap the associated benefits. Ensure that technology is implemented with a solid strategy to support the initiative.

    Impact and Result

    • The right technology is established to support current and future Customer Service needs.
    • Streamlined and optimized Customer Service processes that drive efficiency and improve Customer Service quality are established.
    • The IT and Customer Service functions are both transformed from a cost center into a competitive advantage.

    Develop an IT Strategy to Support Customer Service Research & Tools

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

    1. Structure the project

    Identify project stakeholders, define roles, and create the project charter.

    • Develop an IT Strategy to Support Customer Service Storyboard
    • Project RACI Chart
    • Project Charter

    2. Define vision for future state

    Identify and model the future state of key business processes.

    • Customer Service Business Process Shortlisting Tool
    • Customer Service Systems Strategy Tool

    3. Document current state and assess gaps

    Model the current state of key business processes and assess gaps.

    4. Evaluate solution options

    Review the outputs of the current state architecture health assessment and adopt a preliminary posture on architecture.

    5. Evaluate application options

    Evaluate the marketplace applications to understand the “art of the possible.”

    6. Frame desired state and develop roadmap

    Compile and score a list of initiatives to bridge the gaps, and plot the initiatives on a strategic roadmap.

    • Customer Service Initiative Scoring and Roadmap
    [infographic]

    Workshop: Develop an IT Strategy to Support Customer Service

    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 Vision for Future State

    The Purpose

    Discuss Customer Service-related organizational goals and align goals with potential strategies for implementation.

    Score level 5 Customer Service business processes against organizational goals to come up with a shortlist for modeling.

    Create a future state model for one of the shortlisted business processes.

    Draft the requirements as they relate to the business process.

    Key Benefits Achieved

    Preliminary list of Customer Service-related business goals

    List of Customer Service business processes (Task Level 5)

    Pre-selected Customer Service business process for modeling

    Activities

    1.1 Outline and prioritize your customer goals and link their relevance and value to your Customer Service processes with the Customer Service Business Process Shortlisting Tool.

    1.2 Score customer service business processes against organizational goals with the Customer Service Systems Strategy Tool.

    Outputs

    Initial position on viable Customer Service strategies

    Shortlist of key business processes

    Documented future state business process model

    Business/functional/non-functional requirements

    2 Document Current State and Assess Gaps

    The Purpose

    Create a current state model for the shortlisted business processes.

    Score the functionality and integration of current supporting applications.

    Revise future state model and business requirements.

    Key Benefits Achieved

    Inventory of Customer Service supporting applications

    Inventory of related system interfaces

    Activities

    2.1 Holistically assess multiple aspects of Customer Service-related IT assets with the Customer Service Systems Strategy Tool.

    Outputs

    Documented current state business process model

    Customer Service systems health assessment

    3 Adopt an Architectural Posture

    The Purpose

    Review the Customer Service systems health assessment results.

    Discuss options.

    Key Benefits Achieved

    Completed Customer Service systems health assessment

    Application options

    Activities

    3.1 Analyze CS Systems Strategy and review results with the Customer Service Systems Strategy Tool

    Outputs

    Posture on system architecture

    4 Frame Desired State and Develop Roadmap

    The Purpose

    Draft a list of initiatives based on requirements.

    Score and prioritize the initiatives.

    Plot the initiatives on a roadmap.

    Key Benefits Achieved

    Business/functional/non-functional requirements

    Activities

    4.1 Help project and management stakeholders visualize the implementation of Customer Service IT initiatives with the Customer Service Initiative Scoring and Roadmap Tool.

    Outputs

    Scored and prioritized list of initiatives

    Customer Service implementation roadmap

    Further reading

    Develop an IT Strategy to Support Customer Service

    E-commerce is accelerating, and with it, customer expectations for exceptional digital service.

    Analyst Perspective

    The future of Customer Service is digital. Your organization needs an IT strategy to meet this demand.

    The image contains a picture of Thomas E. Randall.

    As the pandemic closed brick-and-mortar stores, the acceleration of ecommerce has cemented Customer Service’s digital future. However, the pandemic also revealed severe cracks in the IT strategy of organizations’ Customer Service – no matter the industry. These cracks may include low resolution and high wait times through the contact center, or a lack of analytics that fuel a reactive environment. Unfortunately, organizations have no time to waste in resolving these issues. Customer patience for poor digital service has only decreased since March 2020, leaving organizations with little to no runway for ramping up their IT strategy.

    Organizations that quickly mature their digital Customer Service will come out the other side of COVID-19 more competitive and with a stronger reputation. This move necessitates a concrete IT strategy for coordinating what the organization’s future state should look like and agreeing on the technologies and software required to meet this state across the entire organization.

    Thomas E. Randall, Ph.D.

    Senior Research Analyst, Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Solution

    • COVID-19 has accelerated ecommerce, rapidly evolving customer expectations about the service they should receive. Without a robust IT strategy for enabling remote, contactless points of service, your organization will quickly fall behind.
    • The organization would like to use modern channels and technologies to enhance customer service, but it is unclear whether IT has the infrastructure to support them.
    • The relationship between Customer Service and IT is strained. Strategic system-related decisions are being made without the inclusion of IT.
    • IT is in a permanent reactive state, only engaged post-purchase to fix issues as they arise and to offer workarounds.
    • Use Info-Tech’s methodology to produce an IT strategy for Customer Service:
      • Phase 1: Define Project and Future State
      • Phase 2: Evaluate Current State
      • Phase 3: Build a Roadmap to Future State
    • Each phase contributes toward this blueprint’s key deliverable: the Strategic Roadmap.

    Info-Tech Insight

    IT must proactively engage with the organization to define what good customer service should look like. This ensures IT has a fair say in what kinds of architectural solutions are feasible for any projected future state. In this proactive scenario, IT can help build the roadmap for implementing and maintaining customer service infrastructure and operations, reducing the time and resources spent on putting out preventable fires or trying to achieve an unworkable goal set by the organization.

    Key insights

    Develop an IT Strategy to Support Customer Service

    Ecommerce growth has increased customer expectations

    Despite the huge obstacles that organizations are having to overcome to meet accelerating ecommerce from the pandemic, customers have not increased their tolerance for organizations with poor service. Indeed, customer expectations for excellent digital service have only increased since March 2020. If organizations cannot meet these demands, they will become uncompetitive.

    The future of customer service is tied up in analytics

    Without a coordinated IT strategy for leveraging technology and data to improve Customer Service, the organization will quickly be left behind. Analytics and reporting are crucial for proactively engaging with customers, planning marketing campaigns, and building customer profiles. Failing to do so leaves the organization blind to customer needs and will constantly be in firefighting mode.

    Meet the customer wherever they are – no matter the channel

    Providing an omnichannel experience is fast becoming a table stakes offering for customers. To maximize customer engagement and service, the organization must connect with the customer on whatever channel the customer prefers – be it social media, SMS, or by phone. While voice will continue to dominate how Customer Service connects with customers, demographics are shifting toward a digital-first generation. Organizations must be ready to capture this rapidly expanding audience.

    This blueprint will achieve:

    Increased customer satisfaction

    • An IT strategy for Customer Service that proactively meets customer demand, improving overall customer satisfaction with the organization’s services.
    • A process for identifying the organization’s future state of Customer Service and developing a concrete gap analysis.

    Time saved

    • Ready-to-use deliverables that analyze and provide a roadmap toward the organization’s desired future state.
    • Market analyses and rapid application selection through SoftwareReviews to streamline project time-to-completion.

    Increased ROI

    • A modernization process that aids Customer Service digital transformation, with a view to achieve high ROI.
    • Save costs through an effective requirements gathering method.
    • Building and expanding the organization’s customer base to increase revenues by meeting the customers where they are – no matter what channel.

    An IT strategy for customer service is imperative for a post-COVID world

    COVID-19 has accelerated ecommerce, rapidly evolving customer expectations for remote, contactless service.

    59% Of customers agree that the pandemic has raised their standards for service (Salesforce, 2020).

    • With COVID-19, most customer demand and employment moved online and turned remote.
    • Retailers had to rapidly respond, meeting customer demand through ecommerce. This not only entailed a complete shift in how customers could buy their goods but how retailers could provide a remote customer journey from discovery to post-purchase support.

    Info-Tech Insight

    The pandemic did not improve customer tolerance for bad service – instead, the demand for good service increased dramatically. Organizations need an IT strategy to meet customer support demands wherever the customer is located.

    The technology to provide remote customer support is surging

    IT needs to be at the forefront of learning about and suggesting new technologies, working with Customer Service to deliver a consistent, business-driven approach.

    78%

    Of decision makers say they’ve invested in new technology as a result of the pandemic (Salesforce, 2020).

    OMNICHANNEL SUPPORT

    Rapidly changing demographics and modes of communications require an evolution toward omnichannel engagement. Agents need customer information synced across each channel they use, meeting the customer’s needs where they are.

    78%

    Of customers have increased their use of self-service during the pandemic (Salesforce, 2020).

    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.

    90%

    Of global executives who use data analytics report that they improved their ability to deliver a great customer experience (Gottlieb, 2019).

    LEVERAGING ANALYTICS

    The future of customer service is tied up with analytics: from AI-driven capabilities that include agent assist and using biometric data (e.g., speech) for security, to feeding real insights about how customers and agents are doing and performing.

    Executive Brief – Case Study

    Self-service options improve quality of service and boost organization’s competitiveness in a digital marketspace.

    INDUSTRY: Financial Services

    SOURCE: TSB

    Situation

    Solution

    Results

    • The pandemic increased pressure on TSB’s Customer Service, with higher call loads from their five million customers who were anxious about their financial situation.
    • TSB needed to speed up its processing times to ensure loan programs and other assistances were provided as quickly as possible.
    • As meeting in-person became impossible due to the lockdown, TSB had to step up its digital abilities to serve their customers.
    • TSB sought to boost its competitiveness by shifting as far as possible to digital services.
    • TSB launched government loan programs in 36 hours, ahead of its competitors.
    • TSB created and released 21 digital self-service forms for customers to complete without needing to interact with bank staff.
    • TSB processed 140,000 forms in three months, replacing 15,000 branch visits.
    • TSB increased digital self-service rate by nine percent.

    IT can demonstrate its value to business by enhancing remote customer service

    IT must engage with Customer Service – otherwise, IT risks being perennially reactive and dictated to as remote customer service needs increase.

    IT benefits

    Customer Service benefits

    • The right technology is established to support Customer Service.
    • IT is viewed as a strategic partner and innovator, not just a cost center and support function.
    • Streamlined and optimized Customer Service processes that drive efficiency and improve Customer Service quality.
    • Transformation of the Customer Service function into a competitive advantage.

    Info-Tech Insight

    Change to how Customer Service will operate is inevitable. This is an opportunity for IT to establish their value to the business and improve their autonomy in how new technologies should be onboarded and utilized.

    Customer Service and IT need to work together to mitigate their pain points

    IT and Customer Service have an opportunity to reinforce and build their organization’s customer base by working together to streamline operations.

    IT pain points

    Customer Service pain points

    • IT lacks understanding of Customer Service challenges and pain points.
    • IT has technical debt or constrained technology funding.
    • The IT department is viewed as a cost center and support organization, not an engine of innovation, growth, and service delivery performance.
    • Processes supporting Customer Service delivery may be sub-optimal.
    • The existing technology cannot support the increasingly advanced needs of Customer Service functions.
    • Customer Service isn’t fully aware of what your customers think of your service quality. There is little to no monitoring of customer sentiment.
    • There is a lack of value-based segmentation of customers and information on their channel usage and preferences.
    • Competitor actions are not actively monitored.

    IT often cannot spark a debate with Customer Service on whether a decision made without IT is misaligned with corporate direction. It’s almost always an uphill battle for IT.

    Sahri Lava, Research Director, IDC

    Develop an IT Strategy to Support Customer Service

    DON’T FALL BEHIND

    70% of companies either have a digital transformation strategy in place or are working on one (Tech Pro Research, 2018). Unless IT can enable technology that meets the customer where they are, the organization will quickly fall behind in an age of accelerating ecommerce.

    DEVELOP FUTURE STATES

    Many customer journeys are now exclusively digital – 63% of customers expect to receive service over social media (Ringshall, 2020). Organization’s need an IT strategy to develop the future of their customer service – from leveraging analytics to self-service AI portals.

    BUILD GAP ANALYSIS

    73% of customers prefer to shop across multiple channels (Sopadjieva et al., 2017). Assess your current state’s application integrations and functionality to ensure your future state can accurately sync customer information across each channel.

    SHORTLIST SOLUTIONS

    Customer relationship management software is one of the world's fastest growing industries (Kuligowski, 2022). Choosing a best-fit solution requires an intricate analysis of the market, future trends, and your organization’s requirements.

    ADVANCE CHANGE

    95% of customers cite service as key to their brand loyalty (Microsoft, 2019). Build out your roadmap for the future state to retain and build your customer base moving forward.

    Use Info-Tech’s method to produce an IT strategy for Customer Service:

    PHASE 1: Define Project and Future State

    Output: Project Charter and Future State Business Processes

    1.1 Structure the Project

    1.2 Define a Vision for Future State

    1.3 Document Preliminary Requirements

    KEY DELIVERABLE:

    Strategic Roadmap

    The image contains a screenshot of the strategic roadmap.

    PHASE 2: Evaluate Current State

    Output: Requirements Identified to Bridge Current to Future State

    2.1 Document Current State Business Processes

    2.2 Assess Current State Architecture

    2.3 Review and Finalize Requirements for Future State

    PHASE 3: Build a Roadmap to Future State

    Output: Initiatives and Strategic Roadmap

    3.1 Evaluate Architectural and Application Options

    3.2 Understand the Marketplace

    3.3 Score and Plot Initiatives Along Your Strategic Roadmap

    Key deliverable and tools outline

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

    Project RACI Chart

    Activity 1.1a Organize roles and responsibilities for carrying out project steps.

    The image contains a screenshot of the Project RACI Chart.

    Key Deliverable:

    Strategic Roadmap

    Develop, prioritize, and implement key initiatives for your customer service IT strategy, plotting and tracking them on an easy-to-read timeline.

    The image contains a screenshot of the Strategic Roadmap.

    Business Process Shortlisting Tool

    Activities 1.2a, 1.2b, and 2.1aOutline and prioritize customer service goals.

    The image contains a screenshot of the Business Process Shortlisting Tool.

    Project Charter Template

    Activity 1.1b Define the project, its key deliverables, and metrics for success.

    The image contains a screenshot of the Project Charter Template.

    Systems Strategy Tool

    Activities 1.3a, Phase 2, 3.1a Prioritize requirements, assess current state customer service functions, and decide what to do with your current systems going forward.

    .The image contains a screenshot of the Systems Strategy Tool.

    Looking ahead: defining metrics for success

    Phase 1 of this blueprint will help solidify how to measure this project’s success. Start looking ahead now.

    For example, the metrics below show the potential business benefits for several stakeholders through building an IT strategy for Customer Service. These stakeholders include agents, customers, senior leadership, and IT. The benefits of this project are listed to the right.

    Metric Description

    Current Metric

    Future Goal

    Number of channels for customer contact

    1

    6

    Customer self-service resolution

    0%

    50%

    % ROI

    - 4%

    11%

    Agent satisfaction

    42%

    75%

    As this project nears completion:

    1. Customers will have more opportunities for self-service resolution.
    2. Agents will experience higher satisfaction, improving attrition rates.
    3. The organization will experience higher ROI from its digital Customer Service investments.
    4. Customers can engage the contact center via a communication channel that suits them.

    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 Guided Implementation on this topic look like?

    Define Project and Future StateDocument and Assess Current StateEvaluate Architectural and Application OptionsBuild Roadmap to Future State

    Call #1: Introduce project, defining its vision and metrics of success.

    Call #2: Review environmental scan to define future state vision.

    Call #3: Examine future state business processes to compile initial requirements.

    Call #4: Document current state business processes.

    Call #5: Assess current customer service IT architecture.

    Call #6: Refine and prioritize list of requirements for future state.

    Call #7: Evaluate architectural options.

    Call #8: Evaluate application options.

    Call #9:Develop and score initiatives to future state.

    Call #10: Develop timeline and roadmap.

    Call #11: Review progress and wrap-up project.

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

    A typical Guided Implementation is two to 12 calls over the course of four to six months.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Day 1Day 2Day 3Day 4Day 5

    Define Your Vision for Future State

    Document Current State and Assess Gaps

    Adopt an Architectural Posture

    Frame Desired State and Develop Roadmap

    Communicate and Implement

    Activities

    1.1 Outline and prioritize your customer goals.

    1.2 Link customer service goals’ relevance and value to your Customer Service processes.

    1.3 Score Customer Service business processes against organizational goals.

    2.1 Holistically assess multiple aspects of Customer Service-related IT assets with Customer Service Systems Strategy Tool.

    3.1 Analyze Customer Service Systems Strategy and review results with the Customer Service Systems Strategy Tool.

    4.1 Help project management stakeholders visualize implementation of Customer Service IT initiatives.

    4.2 Build strategic roadmap and plot initiatives.

    5.1 Finalize deliverables.

    5.2 Support communication efforts.

    5.3 Identify resources in support of priority initiatives.

    Deliverables

    1. Initial position on viable Customer Service strategies.
    2. Shortlist of key business processes.
    3. Documented future-state business process model.
    4. Business/functional/non-functional requirements.
    1. Documented current state business process model.
    2. Customer Service systems health assessment.
    3. Inventory of Customer Service supporting applications.
    4. Inventory of related system interfaces.
    1. Posture on system architecture.
    2. Completed Customer Service systems health assessment.
    3. List of application options.
    1. Scored and prioritized list of initiatives.
    2. Customer Service implementation roadmap.
    1. Customer Service IT Strategy Roadmap.
    2. Mapping of Info-Tech resources against individual initiatives.

    Phase 1

    Define Project and Future State

    Phase 1

    Phase 2

    Phase 3

    1.1 Structure the Project

    1.2 Define Vision for Future State

    1.3 Document Preliminary Requirements

    2.1 Document Current State Business Processes

    2.2 Assess Current State Architecture

    2.3 Review and Finalize Requirements for Future State

    3.1 Evaluate Architectural and Application Options

    3.2 Understand the Marketplace

    3.3 Score and Plot Initiatives Along Strategic Roadmap

    This phase will guide you through the following activities:

    1.1a Create your project’s RACI chart to establish key roles throughout the timeline of the project.

    1.1b Finalize your project charter that captures the key goals of the project, ready to communicate to stakeholders for approval.

    1.2a Begin documenting business processes to establish potential future states.

    1.2b Model future state business processes for looking beyond current constraints and building the ideal scenario.

    1.3a Document your preliminary requirements for concretizing a future state and performing a gap analysis.

    Participants required for Phase 1:

    • Applications Director
    • Customer Service Director
    • IT and Customer Service Representatives

    1.1 Identify process owners early for successful project execution

    IT and Customer Service must work in tandem throughout the project. Both teams’ involvement ensures all stakeholders are heard and support the final decision.

    Customer Service Perspective

    IT Perspective

    • Customer Service is the victim of pain points resulting from suboptimal systems and it stands to gain the most benefits from a well-planned systems strategy.
    • Looking to reduce pain points, Customer Service will likely initiate, own, and participate heavily in the project.
    • Customer Service must avoid the tendency to make IT-independent decisions. This could lead to disparate systems that contribute little to the overall organizational goals.
    • IT owns the application and back-end support of all Customer Service business processes. Any technological aspect of processes will need IT involvement.
    • IT may or may not have the mandate to run the Customer Service strategy project. Responsibility for systems decisions remains with IT.
    • IT should own the task of filtering out unnecessary or infeasible application and technology decisions. IT capabilities to support such acquisitions and post-purchase maintenance must be considered.

    Info-Tech Insight

    While involving management is important for high-level strategic decisions, input from those who interact day-to-day with the systems is a crucial component to a well-planned strategy.

    1.1 Define project roles and responsibilities to improve progress tracking

    Assign responsibilities, accountabilities, and other project involvement roles using a RACI chart.

    • IT should involve Customer Service from the beginning of project planning to implementation and execution. The project requires input and knowledge from both functions to succeed.
    • Do not let the tasks be forgotten within inter-functional communication. Define roles and responsibilities for the project as early as possible.
    • Each member of the project team should be given a RACI designation, which will vary for each task to ensure clear ownership, execution, and progress tracking.
    • Assigning RACI early can:
      • Improve project quality by assigning the right people to the right tasks.
      • Improve chances of project task completion by assigning clear accountabilities.
      • Improve project buy-in by ensuring that stakeholders are kept informed of project progress, risks, and successes.

    R – Responsibility

    A – Accountability

    C – Consulted

    I – Informed

    1.1 Use Info-Tech’s recommended process owners and roles for this blueprint

    Customer Service Head

    Customer Service Director

    CIO

    Applications Director*

    CEO/COO

    Marketing Head

    Sales Head

    Determine Project Suitability

    ARCCCII

    Phase 1.1

    CCARIII

    Phases 1.2 – 1.3

    ARCCICC

    Phase 2

    ARICIII

    Phase 3.1

    (Architectural options)

    CCARIII

    Phase 3.1

    (Application options)

    ACIRICC

    Phases 3.2 – 3.3

    CCARCII

    * The Applications Director is to compile a list of Customer Service systems; the Customer Service Director is responsible for vetting a list and mapping it to Customer Service functions.

    ** The Applications Director is responsible for technology-related decisions (e.g. SaaS or on-premise, integration issues); the Customer Service Director is responsible for functionality-related decisions.

    1.1a Create your project’s RACI chart

    1 hour

    1. The Applications Director and Customer Service Head should identify key participants and stakeholders of the project.
    2. Use Info-Tech’s Project RACI Chart to identify ownership of tasks.
    3. Record roles in the Project RACI Chart.
    The image contains a screenshot of the project RACI chart.
    InputOutput
    • Identification of key project participants and stakeholders.
    • Identification of key project participants and stakeholders.

    Materials

    Participants

    • Project RACI Chart
    • Applications Director
    • Customer Service Director

    Download the Project RACI Chart

    1.1 Start developing the project charter

    A project charter should address the following:

    • Executive Summary and Project Overview
      • Goals
      • Benefits
      • Critical Success Factors
    • Scope
    • Key Deliverables
    • Stakeholders and RACI
    • Risk Assessment
      • What are some risks you may encounter during project execution?
    • Projected Timeline and Key Milestones
    • Review and Approval Process

    What is a project charter?

    • The project charter defines the project and lays the foundation for all subsequent project planning.
    • Once approved by the business, the charter gives the project lead formal authority to initiate the project.

    Why create a project charter?

    • The project charter allows all parties involved to reach an agreement and document major aspects of the project.
    • It also supports the decision-making process and can be used as a communication tool.

    Stakeholders must:

    • Understand and agree on the objectives and important characteristics of the project charter before the project is initiated.
    • Be given the opportunity to adjust the project charter to better address their needs and concerns.

    1.1b Finalize the project charter

    1-2 hours

    1. Request relevant individuals and parties to complete sections of Info-Tech’s Project Charter Template.
    2. Input the simplified RACI output from tab 3 in Info-Tech’s Project RACI Chart tool into the RACI section of the charter.
    3. Send the completed template to the CIO and Customer Service Head for approval.
    4. Communicate the document to stakeholders for changes and finalization.
    The image contains a screenshot of the Project Charter Template.

    Input

    Output

    • Customer Service and IT strategies
    • Justification of impetus to begin this project
    • Timeline estimates
    • A completed project charter that captures the key goals of the project, ready to communicate to stakeholders for approval.

    Materials

    Participants

    • Project RACI Chart
    • Project Charter Template
    • Applications Director
    • Customer Service Director

    Download the Project Charter Template

    1.2 IT must play a role shaping Customer Service’s future vision

    IT is only one or two degrees of separation from the end customer – their involvement can significantly impact the customer experience.

    IT

    Customer Service

    Customer

    Customer Service-Facing Application

    Customer-Facing Application

    • IT enables, supports, and maintains the applications used by the Customer Service organization to service customers. IT provides the infrastructural and technical foundation to operate the function.
    • IT supports customer-facing interfaces and channels for Customer Service interaction.
    • Channel examples include web pages, mobile device applications and optimization, and interactive voice response for callers.

    1.2 Establish a vision for Customer Service excellence

    Info-Tech has identified three prominent Customer Service strategic patterns. Evaluate which fits best with your situation and organization.

    Retention

    Efficiency

    Cross-Sell/Up-Sell

    Ensuring customers remain customers by providing proactive customer service and a seamless omnichannel strategy.

    Reducing costs by diverting customers to lower cost channels and empowering agents to solve problems quickly.

    Maximizing the value of existing customers by capitalizing on cross-sell and up-sell opportunities.

    1.2 Let profitability goals help reveal which strategy to pursue

    Profitability goals are tied to the enabling of customer service strategies.

    • If looking to drive cost decreases across the organization, pursue cost efficiency strategies such as customer volume diversion in order to lower cost channels and avoid costly escalations for customer complaints and inquiries.
    • Ongoing Contribution Margin is positive only once customer acquisition costs (CAC) have been paid back. For every customer lost, another customer has to be acquired in order to experience no loss. In this way, customer retention strategies help decrease your overall costs.
    • Once cost reduction and customer retention measures are in place, look to increase overall revenue through cross-selling and up-selling activities with your customers.
    The image contains a screenshot of a diagram to demonstrate the relationship between goals and enabling strategies.

    Info-Tech Insight

    Purely driving efficiency is not the goal. Create a balance that does not compromise customer satisfaction.

    Customer Service strategies: Case studies

    Efficiency

    • Volume diversion to lower cost channels
    • Agent empowerment

    MISS DIG 811 – a utility notification system – sought to make their customer service more efficient by moving to softphones. Using the Cisco Customer Journey Platform, Miss Dig saw a 9% YoY increase in agent productivity and 83% reduction in phone equipment costs. Source: (Cisco, 2018).

    Retention

    • Proactive Customer Service
    • Seamless omnichannel strategy

    VoiceSage worked with Home Retail Group – a general merchandise retailer – to proactively increase customer outreach, reducing the number of routine customer order and delivery queries received. In four weeks, Home Retail Group increased their 30-40% answer rate from customers to 100%, with 90% of incoming calls answered and 60% of contacts made via SMS. Source: (VoiceSage, 2018)

    Cross-Sell/

    Up-Sell

    • Cross-Sell and Up-Sell opportunities

    A global brand selling language-learning software utilized Callzilla to help improve their call conversion rate of 2%. After six months of agent and supervisor training, this company increased their call conversion rate to 16% and their upsell rate to 40%. Their average order value increased from < $300 to $465. Source: (Callzilla, n.d.)

    1.2 Performing an environmental scan can help IT optimize Customer Service support

    Though typically executed by Customer Service, IT can gain valuable insights for best supporting infrastructure, applications, and operations from an environmental scan.

    An environmental scan seeks to understand your organization’s customers from multiple directions. It considers:

    • Customers’ value-based segmentations.
    • The interaction channels customers prefer to use.
    • Customers’ likes and dislikes.
    • The general sentiment of your customer service quality.
    • What your competitors are doing in this space.
    The image contains a screenshot of a diagram to demonstrate how performing an environmental scan can help IT optimize Customer Service support.

    Info-Tech Insight

    Business processes must directly relate to customer service. Failing to correlate customer experience with business performance outcomes overlooks the enormous cost of negative sentiment.

    1.2 The environmental scan results should drive IT’s strategy and resource spend

    Insights derived from this scan can help frame IT’s contributions to Customer Service’s future vision.

    Why IT should care:

    Implications:

    Each customer experience, from product/service selection to post-transaction support, can have a significant impact on business performance.

    It is not just IT or Customer Service that should care; rather, it should be an organizational responsibility to care about what customers say.

    Customers have little tolerance for mediocrity or poor service and simply switch their allegiances to those that can satisfy their expectations.

    Do not ignore your competitors; they may be doing something well in Customer Service technology which may serve as your organization’s benchmark.

    With maturing mobile and social technologies, customers want to be treated as individuals rather than as a series of disconnected accounts

    Do not ignore your customers’ plea for individuality through mobile and social. Assess your customers’ technology channel preferences.

    Customer service’s perception of service quality may be drastically different than what is expected by the customers.

    Prevent your organization from investing in technology that will have no positive impact on your customer experience.

    Some customers may not provide your organization the business value that surpasses your cost to serve them.

    Focus on enhancing the technology and customer service experience for your high-value customers.

    1.2 Have Customer Service examine feedback across channels for a holistic view

    Your method of listening needs to evolve to include active listening on social and mobile channels.

    Insights and Implications for Customer Service

    Limitations of conventional listening:

    • Solicited customer feedback, such as surveys, do not provide an accurate feedback method since customers only have one channel to express their views.
    • Sentiment, voice, and text analytics within social media channels provide the most accurate and timely intelligence.

    How IT Can Help

    IT can help facilitate the customer feedback process by:

    • Conducting customer feedback with voice recognition software.
    • Monitoring customer sentiment on mobile and social channels.
    • Utilizing customer data analytic engines on social media management platforms.
    • Referring Customer Service to customer advisory councils and their databases.

    1.2 Benchmark IT assets by examining your competitors’ Customer Service capabilities

    The availability of the internet means almost complete transparency between your products and services, and those of your competitors.

    Insights and implications from Customer Service

    How IT can help

    Competitor actions are crucial. Watch your competitors to learn how they use Customer Service as a competitive differentiator and a customer acquisition tool.

    Do not learn about a competitor’s actions because your customers are already switching to them. Track your competitors before getting a harsh surprise from your customers.

    View the customer service experience from the outside in. Assessing from the inside out gives an internal perspective on how good the service is, rather than what customers are experiencing.

    Take a data and analytics-driven approach to mine insights on what customers are saying about your competitors. Negative sentiment and specific complaints can be used as reference for IT and Customer Service to:

    • Avoid repeating the competitor’s mistakes.
    • Utilize sentiment as a benchmark for goal setting and improvements.
    • Duplicate successful technology initiatives to realize business value.

    Info-Tech Insight

    Look to your competitors for comparative models but do not pursue to solely replicate what they currently have. Aim higher and attempt to surpass their capabilities and brand value.

    1.2 Collaborate with Customer Service to understand customer value segments

    Let segmentation help you gain intelligence on customers’ expectations.

    Insights and implications from customer service

    • Segment your customers based on their value relative to the cost to serve. The easiest way to do so is with channel preference categorization.
    • If the cost for retention attempts are higher than the value that those customers provide, there is little business case to pursue retention action.

    How IT can help

    • Couple value-based segmentation with channel preference and satisfaction levels of your most-valued customers to effectively target IT investments in channels that maximize service customization and quality.
    • Correlate the customers’ channel and technology usage with their business value to see which IT assets are delivering on their investments.

    The image contains a screenshot of a graph to demonstrate the relationship between cost of retention and value.

    “If you're developing a Customer Service strategy, it has to start with who your clients are, what [they are] trying to do, and through what channels […] and then your decision around processes have to fall out of that. If IT is trying to lead the conversation, or bring people together to lead the conversation, then marketing and whoever does segmentation has to be at the table as a huge component of this.”

    Lisa Woznica, Director of Client Experience, BMO Financial Group

    1.2 Be mindful of trends in the consumer and technology landscape

    Building a future vision of customer service requires knowing what upcoming technologies can aid the organization.

    OMNICHANNEL SUPPORT

    Rapidly changing demographics and modes of communication requires an evolution toward omnichannel engagement. 63% of customers now expect to communicate with contact centers over their social media (Ringshall 2020). 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. 60% of contact centers are using or plan to use AI in the next 12 months to improve their customer (Canam Research 2020).

    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, but it finds skills-based routing and uses 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.

    Phase 1 – Case Study

    Omnichannel support delivers a financial services firm immediate customer service results.

    INDUSTRY: Financial Services

    SOURCE: Mattsen Kumar

    Situation

    Solution

    Results

    • A financial services firm’s fast growth began to show cracks in their legacy customer service system.
    • Costs to support the number of customer queries increased.
    • There was a lack of visibility into incoming customer communications and their resolutions.
    • Business opportunities were lost due to a lack of information on customers’ preferences and challenges. Customer satisfaction was decreasing, negatively impacting the firm’s brand.
    • Mattsen Kumar diagnosed that the firm’s major issue was that their customer service processes required a high percentage of manual interventions.
    • Mattsen Kumar developed an omnichannel strategy, including a mix of social channels joined together by a CRM.
    • A key aspect of this omnichannel experience was designing automated processes with minimal manual intervention.
    • 25% reduction in callbacks from customers.
    • $50,000 reduction in operational costs.
    • Two minutes wait time reduction for chat process.
    • 14% decrease in average handle time.
    • Scaled up from 6000 to 50,000 monthly calls that could be handled by the current team.
    • Enabled more than 10,000 customer queries over chats.

    1.2 Construct your future state using a business process management approach

    Documenting and evaluating your business processes serves as a good starting point for defining the overall Customer Service strategy.

    • Examining key Customer Service business processes can unlock clues around the following:
      • Driving operational effectiveness.
      • Identifying, implementing, and maintaining reusable enterprise systems.
      • Identifying gaps that can be addressed by acquisition of additional systems.
    • Business process modeling facilitates the collaboration between business and IT, recording the sequence of events, tasks performed, by whom they are performed, and the levels of interaction with the various supporting applications.
    • By identifying the events and decision points in the process, and overlaying the people that perform the functions and technologies that support them, organizations are better positioned to identify gaps that need to be bridged.
    • Encourage the analysis by compiling the inventory of Customer Service business processes that are relevant to the organization.

    Info-Tech Insight

    A process-oriented approach helps organizations see the complete view of the system by linking strategic requirements to business requirements, and business requirements to system requirements.

    1.2 Use the APQC Framework to define your Customer Service-related processes

    • APQC’s Process Classification Framework (PCF) is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.
    • Section 5 of the PCF details various levels of Customer Service business processes, useful for mapping on to your own organization’s current state.
    • The APQC Framework can be accessed through the following link: APQC’s Process Classification Framework.

    The APQC Framework serves as a high-level, industry-neutral enterprise model that allows organizations to see activities from a cross-industry process perspective.

    The image contains a screenshot example of the APQC Process Classification Framework.
    Source: (Ziemba and Eisenbardt 2015)

    Info-Tech Caution

    The APQC framework does not list all processes within a specific organization, nor are the processes which are listed in the framework present in every organization. It is designed as a framework and global standard to be customized for use in any organization.

    1.2 Each APQC process has five levels that represent its logical components

    The image contains a screenshot of the APQC five levels. The levels include: category, process group, process, and activity.

    The PCF provides L1 through 4 for the Customer Service Framework.

    L5 processes are task- and industry-specific and need to be defined by the organization.

    Source: (APQC 2020)
    This Industry Process Classification Framework was jointly developed by APQC and IBM to facilitate improvement through process management and benchmarking. ©2018 APQC and IBM. ALL RIGHTS RESERVED.

    1.2a Begin documenting business processes

    4 hours

    1. Using Info-Tech’s Customer Service Business Process Shortlisting Tool, list the Customer Service goals and rank them by importance.
    2. Score the APQC L4 processes by relevance to the defined goals and perceived satisfaction index.
    3. Define the L5 processes for the top scoring L4 process.
    4. Leave Tab 5, Columns G – I for now. These columns will be revisited in activities 1.2b and 2.1a.
    The image contains a screenshot of the Customer Service Process Shortlisting Tool.

    Input

    Output

    • List of Customer Service goals
    • A detailed prioritization of Customer Service business processes to model for future states

    Materials

    Participants

    • Whiteboard
    • Writing materials
    • Customer Service Business Process Shortlisting Tool
    • Applications Director
    • Customer Service Director
    • IT and Customer Service Representatives

    Download the Customer Service Business Process Shortlisting Tool

    1.2 Start designing the future state of key business processes

    If Customer Service transformation is called for, start with your future-state vision. Don’t get stuck in current state and the “art of the possible” within its context.

    Future-State Analysis

    Start by designing your future state business processes (based on the key processes shortlisting exercise). Design these processes as they would exist as your “ideal scenario.” Next, analyze your current state to help better your understanding of:

    • The gaps that exist and must be bridged to achieve the future-state vision.
    • Whether or not any critical functions that support your business were omitted accidentally from the future-state processes.
    • Whether or not any of the supporting applications or architecture can be salvaged and used toward delivery of your future-state vision.

    Though it’s a commonly used approach, documenting your current-state business processes first can have several drawbacks:

    • Current-state analysis can impede your ability to see future possibility.
    • Teams will spend a great deal of time and effort on documenting current state and inevitably succumb to “analysis paralysis.”
    • Current state assessment, when done first, limits the development of the future (or target) state, constraining thinking to the limitations of the current environment rather than the requirements of the business strategy.

    Current-State Analysis

    “If you're fairly immature and looking for a paradigm shift or different approach [because] you recognize you're totally doing it wrong today, then starting with documenting current state doesn't do a lot except make you sad. You don't want to get stuck in [the mindset of] ‘Here's the current state, and here’s the art of the possible.’”

    Trevor Timbeck, Executive Coach, Parachute Executive Coaching

    1.2 Start modeling future-state processes

    Build buy-in and accountability in process owners through workshops and whiteboarding – either in-person or remotely.

    Getting consensus on the process definition (who does what, when, where, why, and how) is one of the hardest parts of BPM.

    Gathering process owners for a process-defining workshop isn’t easy. Getting them to cooperate can be even harder. To help manage these difficulties during the workshop, make sure to:

    • Keep the scope contained to the processes being defined in order to make best use of everyone’s time, as taking time away from employees is a cost too.
    • Prior to the workshop, gather information about the processes with interviews, questionnaires, and/or system data gathering and analysis.
    • Use the information gathered to have real-life examples of the processes in question so that time isn’t wasted.

    Info-Tech Insight

    Keep meetings short and on task as tangents are inevitable. Set ground rules at the beginning of any brainstorming or whiteboarding session to ensure that all participants are aligned.

    1.2 Use the five W’s to help map out your future-state processes

    Define the “who, what, why, where, when, and how” of the process to gain a better understanding of individual activities.

    Owner

    Who

    What

    When

    Where

    Why

    How

    Record Claim

    Customer Service

    Customer Service Rep.

    Claim

    Accident

    Claims system

    Customer notification

    Agent enters claim into the system and notifies claims department

    Manage Claim

    Claims Department

    Claims Clerk

    Claim

    Agent submitted the claim

    Claims system

    Agent notification

    Clerk enters claim into the claims system

    Investigate Claim

    Claims Investigation

    Adjuster

    Claim

    Claim notification

    Property where claim is being made

    Assess damage

    Evaluation and expert input

    Settle Claim

    Claims Department

    Claim Approver

    Claim and Adjuster’s evaluation

    Receipt of Adjuster’s report

    Claims system

    Evaluation

    Approval or denial

    Administer Claim

    Finance Department

    Finance Clerk

    Claim amount

    Claim approval notification

    Finance system

    Payment required

    Create payment voucher and cut check

    Close Claim

    Claims Department

    Claims Clerk

    Claim and all supporting documentation

    Payment issued

    Claims system

    Claim processed

    Close the claim in the system

    Info-Tech Insight

    It’s not just about your internal processes. To achieve higher customer retention and satisfaction, it’s also useful to map the customer service process from the customer perspective to identify customer pain points and disconnects.

    1.2 Use existing in-house software as a simplistic entry point to process modeling

    A diagramming tool like Visio enables you to plot process participants and actions using dedicated symbols and connectors that indicate causality.

    • Models can use a stick-figure format, a cross-functional workflow format, or BPMN notation.
    • Plot the key activities and decision points in the process using standard flowcharting shapes. Identify the data that belongs to each step in a separate document or as call-outs on the diagram.
    • Document the flow control between steps, i.e., what causes one step to finish and another to start?

    The image contains a screenshot of the sample cross-functional diagram using the claims process.

    Info-Tech Best Practice

    Diagramming tools can force the process designer into a specific layout: linear or cross-functional/swim lane.

    • A linear format is recommended for single function and system processes.
    • A swim lane format is recommended for cross-functional and cross-departmental processes.

    1.2 Introduce low investment alternatives for process modeling for modeling disciplines

    SaaS and low-cost modeling tools are emerging to help organizations with low to medium BPM maturity visualize their processes.

    • Formal modeling tools allow a designer to model in any view and easily switch to other views to gain new perspectives on the process.
    • Subscription-based, best-of-breed SaaS tools provide scalable and flexible process modeling capabilities.
    • Open source and lower cost tools also exist to help distribute BPM modeling discipline and standards.
    • BPMS suites incorporate advanced modeling tools with process execution engines for end-to-end business process management. Integrate process discovery with modeling, process simulation, and analysis. Deploy, monitor, and measure process models in process automation engines.

    The image contains a screenshot of a diagram of the claims process.

    Explore SoftwareReviews’ Business Process Management market analysis by clicking here.

    1.2b Model future state business processes

    4 hours

    1. Model the future state of the most critical business processes.
    2. Use Tab 5, Columns G – H of Info-Tech’s Customer Service Business Process Shortlisting Tool to keep stock of what processes are targeted for modeling, and whether the models have been completed.
    The image contains a screenshot of the Customer Service Business Process Shortlisting Tool.

    Input

    Output

    • Modeled future Customer Service business processes
    • An inventory of modeled future states for critical Customer Service business processes

    Materials

    Participants

    • Whiteboard
    • Writing materials
    • Customer Service Business Process Shortlisting Tool
    • Applications Director
    • Customer Service Director

    Download the Customer Service Business Process Shortlisting Tool

    1.3 Start a preliminary inventory of your requirements

    Use the future state business process models as a source for software requirements.

    • Business process modeling deals with business requirements that can be used as the foundation for elicitation of system (functional and non-functional) requirements.
    • Modeling creates an understanding of the various steps and transfers in each business process, as well as the inputs and outputs of the process.
    • The future state models form an understanding of what information is needed and how it flows from one point to another in each process.
    • Understand what technologies are (or can be) leveraged to facilitate the exchange of information and facilitate the process.

    For each task or event in the process, ask the following questions:

    • What is the input?
    • What is the output?
    • What are the underlying risks and how can they be mitigated?
    • What conditions should be met to mitigate or eliminate each risk?
    • What are the improvement opportunities?
    • What conditions should be met to enable these opportunities?

    Info-Tech Insight

    Incorporate future considerations into the requirements. How will the system need to adapt over time to accommodate additional processes, process variations, introduction of additional channels and capabilities, etc. Do not overreach by identifying system capabilities that cannot possibly be met.

    1.3 Understand the four different requirements to document

    Have a holistic view for capturing the various requirements the organization has for a Customer Service strategy.

    Business requirements

    High-level requirements that management would typically understand.

    User requirements

    High-level requirements on how the tool should empower users’ lives.

    Non-functional requirements

    Criteria that can be used to judge the operation of a contact center. It defines how the system should perform for the organization.

    Functional requirements

    Outline the technical requirements for the desired contact center.

    1.3 Extract requirements from the business process models

    To see how, let us examine our earlier example for the Claims Process, extracting requirements from the “Record Claim” task.

    The image contains an example of the claims process, and focuses on the record claim task.

    1.3a Document your preliminary requirements

    4 hours

    1. The Applications Director and Customer Service Head are to identify participants based on the business processes that will be reviewed.
    2. They are to conduct a workshop to gather all requirements that can be taken from the business process models.
    3. Use Tab 4 of Info-Tech’s Customer Service Systems Strategy Tool to document your preliminary requirements.
    The image contains a screenshot of the Customer Service Systems Strategy Tool.
    InputOutput
    • Half-day workshop to review the proposed future-state diagrams and distill from them the business, functional, and non-functional requirements
    • Future state business process models from activities 1.2a and 1.2b
    • An inventory of preliminary requirements for modeled future states
    MaterialsParticipants
    • Whiteboard
    • Writing materials
    • Customer Service Systems Strategy Tool
    • Results of activities 1.2a and 1.2b
    • Applications Director
    • Customer Service Director
    • IT and Customer Service Representatives

    Download the Customer Service Systems Strategy Tool

    Phase 2

    Evaluate Current State

    Phase 1

    Phase 2

    Phase 3

    1.1 Structure the Project

    1.2 Define Vision for Future State

    1.3 Document Preliminary Requirements

    2.1 Document Current State Business Processes

    2.2 Assess Current State Architecture

    2.3 Review and Finalize Requirements for Future State

    3.1 Evaluate Architectural and Application Options

    3.2 Understand the Marketplace

    3.3 Score and Plot Initiatives Along Strategic Roadmap

    This phase will guide you through the following activities:

    2.1a Model current-state business processes for an inventory to compare against future-state models.

    2.1b Compare future and current business states for a preliminary gap analysis.

    2.1c Begin compiling an inventory of CS Systems by function for an overview of your current state map.

    2.2a Rate your functional and integration quality to assess the performance of your application portfolio.

    2.3a Compare states and propose action to bridge current business processes with viable future alternatives.

    2.3b Document finalized requirements, ready to enact change.

    Participants required for Phase 2:

    • Applications Director
    • Customer Service Director
    • IT and Customer Service Representatives
    • IT Managers

    2.1 Document the current state of your key business processes

    Doing so will solidify your understanding of the gaps, help identify any accidental omissions from the future state vision, and provide clues as to what can be salvaged.

    • Analysis of the current state is important in the context of gap analysis. It aids in understanding the discrepancies between your baseline and the future-state vision, and ensuring that these gaps are recorded as part of the overall requirements.
    • By analyzing the current state of key business processes, you may identify critical functions that are in place today that were not taken into consideration during the future-state business process visioning exercise.
    • By overlaying the current state process models with the applications that support them, the current state models will indicate what systems and interfaces can be salvaged.
    • The baseline feeds the business case, allowing the team to establish proposed benefits and improvements from implementing the future-state vision. Seek to understand the following:
      • The volumes of work
      • Major exceptions
      • Number of employees involved
      • Amount of time spent in each area of the process

    2.1 Assess the current state to drive the gap analysis

    Before you choose any solution, identify what needs to be done to your current state in order to achieve the vision you have defined.

    • By beginning with the future state in mind, you have likely already envisioned some potential solutions.
    • By reviewing your current situation in contrast with your desired future state, you can deliberate what needs to be done to bridge the gap. The differences between the models allow you to define a set of changes that must be enacted in sequence or in parallel. These represent the gaps.
    • The gaps, once identified, translate themselves into additional requirements.

    Assessment Example

    Future State

    Current Situation

    Next Actions/ Proposals

    Incorporate social channels for responding to customer inquiries.

    No social media monitoring or channels for interaction exist at present.

    1. Implement a social media monitoring platform tool and integrate it with the current CSM.
    2. Recruit additional Customer Service representatives to monitor and respond to inquiries via social channels.
    3. Develop report(s) for analyzing volumes of inquiries received through social channels.

    Info-Tech Insight

    It is important to allot time for the current-state analysis, confine it to the minimum effort required to understand the gaps, and identify any missing pieces from your future-state vision. Make sure the work expended is proportional to the benefit derived from this exercise.

    2.1a Model current-state business processes

    2 hours

    1. Model the current state of the most critical business processes, using the work done in activities 1.2a and 1.2b to help identify these processes.
    2. Use Tab 5, Column I of Info-Tech’s Customer Service Business Process Shortlisting Tool to keep stock of what models have been completed.
    3. This tool is now complete.
    The image contains a screenshot of the Customer Service Business Process Shortlisting Tool.
    InputOutput
    • Modeled current-state Customer Service business processes
    • An inventory of modeled current states for critical Customer Service business processes
    MaterialsParticipants
    • Whiteboard
    • Writing materials
    • Customer Service Business Process Shortlisting Tool
    • Results of activities 1.2a and 1.2b.
    • Applications Director
    • Customer Service Director

    Download the Customer Service Business Process Shortlisting Tool

    2.1b Compare future and current business states

    2 hours

    1. Use Tab 9 of Info-Tech’s Customer Service Systems Strategy Tool to record a summary of the future state, current state, and actions proposed in order to bridge the gaps.
      • Fill out the desired future state of the business processes and IT architecture.
      • Fill out the current state of the business processes and IT architecture.
      • Fill out the actions required to mitigate the gaps between the future and current state.
    The image contains a screenshot of thr Customer Service Systems Strategy Tool.
    InputOutput
    • The results of activities 1.2a, 1.2b, and 2.1a.
    • Modeled future- and current-state business processes
    • An overview and analysis of how to reach certain future states from the current state.
    • A preliminary list of next steps through bridging the gap between current and future states.
    MaterialsParticipants
    • Whiteboard
    • Writing materials
    • Customer Service Business Process Shortlisting Tool
    • Applications Director
    • Customer Service Director

    Download the Customer Service Systems Strategy Tool

    2.1 Assess whether Customer Service architecture can meet future-state vision

    Approach your CS systems holistically to identify opportunities for system architecture optimization.

    • Organizations often do not have a holistic view of their Customer Service systems. These systems are often cobbled together from disparate parts, such as:
      • Point solutions (both SaaS and on-premise).
      • Custom interfaces between applications and databases.
      • Spreadsheets and other manual workarounds.
    • A high degree of interaction between multiple systems can cause distention in the application portfolio and databases, creating room for error and more work for CS and IT staff. Mapping your systems and architectural landscape can help you:
      • Identify the number of manual processes you currently employ.
      • Eliminate redundancies.
      • Allow for consolidation and/or integration.

    Consider the following metrics when tracking your CS systems:

    Time needed to perform core tasks (i.e., resolving a customer complaint)

    Accuracy of basic information (customer history, customer product portfolio)

    CSR time spent on manual process/workarounds

    Info-Tech Insight

    There is a two-step process to document the current state of your Customer Service systems:

    1. Compile an inventory of systems by function
    2. Identify points of integration across systems

    2.1c Begin compiling an inventory of CS systems by function

    2 hours

    1. Using Tab 2 of Info-Tech’s Customer Service Systems Strategy Tool, request that the CS managers fill in the application inventory template with all the CS systems that they use.
    2. Questions to trigger exercise:
      • Which applications am I using?
      • Which CS function does the application support?
      • How many applications support the same function?
      • What spreadsheets or manual workarounds do I use to fill in system gaps?
    3. Send the filled-in template to IT Managers to validate and fill in missing system information.
    InputOutput
    • Applications Directors’ knowledge of the current state
    • IT Managers’ validation of this state
    • A corroborated inventory of the current state for Customer Service systems
    MaterialsParticipants
    • Customer Service Systems Strategy Tool
    • Applications Director
    • IT managers

    Download the Customer Service Systems Strategy Tool

    2.1 Use activity 2.1c for an overview of your current state map

    The image contains a screenshot of activity 2.1.

    Info-Tech Insight

    A current-state map of CS systems can offer insight on:

    • Coverage, i.e. whether all functional areas are supported by systems.
    • Redundancies, i.e. functional areas with multiple systems. If a customer’s records are spread across multiple systems, it may be difficult to obtain a single source of truth.

    2.2 Assess current state with user interface architecture diagrams

    Understand a high-level overview of how your current state integrates together to rate its overall quality.

    • If IT already has an architecture diagram, use this in conjunction with your application inventory for the basis of current state discussions.
    • If your organization does not already have an architecture diagram for review and discussion, consider creating one in its most simplistic form using the following guidelines (see illustrative example on next slide):

    Represent each of your systems as a labelled shape with a unique number (this number can be referenced in other artifacts that can provide more detail).

    Color coding can also be applied to differentiate these objects, e.g., to indicate an internal system (where development is owned by your organization) vs. an external system (where development is outside of your organization’s control).

    2.2 Example: Current state with user interface architecture diagrams

    The image contains a screenshot of an example of current state with user interface architecture diagrams.

    2.2 Evaluate application functionality and functional coverage

    Use this documentation of the current state as an opportunity to spot areas for rationalizing your application portfolio.

    If an application is well-received by the organization and is an overall good platform, consider acquiring more modules from the same vendor application.

    The image contains a screenshot of a diagram to demonstrate functionality and functional coverage.

    If you have more than one application for a function, consider why that is and how you might consolidate into a single application.

    Measure the effectiveness of applications under consideration. For example, consider the number of failures when an application attempts a function (by ticket numbers), and overall satisfaction/ease of use.

    The above steps will reveal capability overlaps and application pain points and show how the overall portfolio could be made more efficient.

    2.2 Determine the degree of integration between systems

    Data and system integration are key components of an effective CS system portfolio.

    The needed level of integration will depend on three major factors:

    Integration between systems helps facilitate reporting. The required reports will vary from organization to organization:

    How many other systems benefit from the data of the application?

    Large workforces will benefit from more detailed WFM reports for optimizing workforce planning and talent acquisition.

    Will automating the integration between systems alleviate a significant amount of manual effort?

    Organizations with competitive sales and incentives will want to strategize around talent management and compensation.

    What kind of reports will your organization require in order to perform core and business-enabling functions?

    Aging workforces or organizations with highly specialized skills can benefit from detailed analysis around succession planning.

    Phase 2 – Case Study

    Integrating customer relationship information streamlines customer service and increases ROI for the organization.

    INDUSTRY: Retail and Wholesale

    SOURCE: inContact

    Situation

    Solution

    Results

    • Hall Automotive – a group of 14 multi-franchise auto dealerships located throughout Virginia and North Carolina – had customer information segmented throughout their CRM system at each dealership.
    • Call center agents lacked the technology to synthesize this information, leading customers to receive multiple and unrelated service calls.
    • Hall Automotive wanted to avoid embarrassing information gaps, integrate multiple CRM systems, and help agents focus on customers.
    • Hall Automotive utilized an inContact solution that included Automated Call Distributor, Computer Telephony Integration, and IVR technologies.
    • This created a complete customer-centric system that interfaced with multiple CRM and back-office systems.
    • The inContact solution simplified intelligent call flows, routed contacts to the right agent, and provided comprehensive customer information.
    • Call time decreased from five minutes to one minute and 23 seconds.
    • 350% increase in production.
    • Market response time down from three months to one day.
    • Cost per call cut from 83 cents to 23 cents.
    • Increased agents’ calls-per-hour from 12 to 43.
    • Scalability matched seasonal fluctuations in sales.

    2.2a Rate your functional and integration quality

    2 hours

    1. Using Tab 5 of Info-Tech’s Customer Service Systems Strategy Tool, evaluate the functionality of your applications.
    2. Then, use Tab 6 of the Customer Service Systems Strategy Tool to evaluate the integration of your applications.
    The image contains screenshots of the Customer Service Systems Strategy Tool.
    InputOutput
    • Applications Directors’ knowledge of the current state
    • IT Managers’ validation of this state
    • A documented evaluation of the organization’s application portfolio regarding functional and integration quality
    MaterialsParticipants
    • Customer Service Systems Strategy Tool
    • Applications Director
    • IT managers

    Download the Customer Service Systems Strategy Tool

    2.3 Revisit and refine the future-state business processes and list of requirements

    With a better understanding of the current state, determine whether the future-state models hold up. Ensure that the requirements are updated accordingly to reflect the full set of gaps identified.

    • Future-state versus current-state modeling is an iterative process.
    • By assessing the gaps between target state and current state, you may decide that:
      • The future state model was overly ambitious for what can reasonably be delivered in the near-term.
      • Core functions that exist today were accidentally omitted from the future state models and need to be incorporated.
      • There are systems or processes that your organization would like to salvage, and they must be worked into the future-state model.
    • Once the future state vision is stabilized, ensure that all gaps have been translated into business requirements.
      • If possible, categorize all gaps by functional and non-functional requirements.

    2.3a Compare states and propose action

    3 hours

    • Revisit Tab 9 of Info-Tech’s Customer Service Systems Strategy Tool to more accurately compare your organization’s current- and future-state business processes.
    • Ensure that gaps in the system architecture have been captured.
    The image contains a screenshot of the Customer Service Systems Strategy Tool.
    InputOutput
    • Modeled future- and current-state business processes
    • Refined and prioritized list of requirements
    • An accurate list of action steps for bridging current and future state business processes
    MaterialsParticipants
    • Whiteboard
    • Writing materials
    • Customer Service Systems Strategy Tool
    • Applications Director
    • IT managers

    Download the Customer Service Systems Strategy Tool

    2.3 Prioritize and finalize the requirements

    Prioritizing requirements will help to itemize initiatives and the timing with which they need to occur.

    Requirements are to be prioritized based on relative important and the timing of the respective initiatives.

    Prioritize the full set of requirements by assigning a priority to each:

    1. High/Critical: A critical requirement; without it, the product is not acceptable to the stakeholders.
    2. Medium/Important: A necessary but deferrable requirement that makes the product less usable but still functional.
    3. Low/Desirable: A nice feature to have if there are resources, but the product can function well without it.

    Requirements prioritization must be completed in collaboration with all key stakeholders (business and IT).

    Consider the following criteria when assigning the priority:

    • Business value
    • Business or technical risk
    • Implementation difficulty
    • Likelihood of success
    • Regulatory compliance
    • Relationship to other requirements
    • Urgency
    • Unified stakeholder agreement

    Stakeholders must ask themselves:

    • What are the consequences to the business objectives if this requirement is omitted?
    • Is there an existing system or manual process/workaround that could compensate for it?
    • Why can’t this requirement be deferred to the next release?
    • What business risk is being introduced if a particular requirement cannot be implemented right away?

    2.3b Document finalized requirements

    4 hours

    1. Using Tab 4 of Info-Tech’s Customer Service Systems Strategy Tool, evaluate your applications’ functionality, review, refine, prioritize, and finalize your requirements.
    2. Review the proposed future state diagrams in activity 2.3a and distill from them the business, functional, and non-functional requirements.
    3. The Applications Director and Customer Service Head are to identify participants based on the business processes that will be reviewed. They are to conduct a workshop to gather all the requirements that can be taken from the business process models.
    The image contains a screenshot of the Customer Service Systems Strategy Tool.
    InputOutput
    • Modeled future- and current-state business processes
    • Refined and prioritized list of requirements
    • A documented finalized list of requirements to achieve future state business processes
    MaterialsParticipants
    • Whiteboard
    • Writing materials
    • Customer Service Systems Strategy Tool
    • IT Applications Director
    • Customer Service Director
    • IT and Customer Service Representatives

    Download the Customer Service Systems Strategy Tool

    Phase 3

    Build Roadmap to Future State

    Phase 1

    Phase 2

    Phase 3

    1.1 Structure the Project

    1.2 Define Vision for Future State

    1.3 Document Preliminary Requirements

    2.1 Document Current State Business Processes

    2.2 Assess Current State Architecture

    2.3 Review and Finalize Requirements for Future State

    3.1 Evaluate Architectural and Application Options

    3.2 Understand the Marketplace

    3.3 Score and Plot Initiatives Along Strategic Roadmap

    This phase will guide you through the following activities:

    3.1a Analyze future architectural posture to understand how applications within the organization ought to be arranged.

    3.3a Develop a Customer Service IT Systems initiative roadmap to reach your future state.

    Participants required for Phase 3:

    • Applications Director
    • CIO
    • Customer Service Director
    • Customer Service Head
    • IT and Customer Service Representatives
    • IT Applications Director

    3.1a Analyze future architectural posture

    1 hour

    Review Tab 8 of the Customer Service Systems Strategy Tool.

    This tab plots each system that supports Customer Service on a 2x2 framework based on its functionality and integration scores. Where these systems plot on each 2x2 provides clues as to whether they should be considered for retention, functional enhancement (upgrade), increased system integration, or replacement.

    • Integrate: The application is functionally rich, so integrate it with other modules by building or enhancing interfaces.
    • Retain: The application satisfies both functionality and integration requirements, so it should be considered for retention.
    • Replace: The application neither offers the functionality sought, nor is it integrated with other modules.
    • Replace/Enhance: The module offers poor functionality but is well integrated with other modules. If enhancing for functionality is easy (e.g., through configuration or custom development), consider enhancement or replace it altogether.
    The image contains a screenshot of tab 8 of the Customer Service Systems Strategy Tool.
    InputOutput
    • Review Tab 8 of the Customer Service Systems Strategy Tool
    • An overview of how different applications in the organization ought to be assessed
    MaterialsParticipants
    • Customer Service Systems Strategy Tool
    • IT Applications Director
    • Customer Service Director
    • IT and Customer Service Representatives

    Download the Customer Service Systems Strategy Tool

    3.1 Interpret 3.1a’s results for next steps

    Involving both sales and marketing in these discussions will provide a 360-degree view on what the modifications should accomplish.

    If the majority of applications are plotted in the “Integrate” quadrant:

    The applications are performing well in terms of functionality but have poor integration. Determine what improvements can be made to enhance integration between the systems where required (e.g. re-working existing interfaces to accommodate additional data elements, automating interfaces, or creating brand new custom interfaces where warranted).

    If the applications are spread across “Integrate,” “Retain,” and “Replace/Enhance”:

    There is no clear recommended direction in this case. Weigh the effort required to replace/enhance/integrate specific applications critical for supporting processes. If resource usage for piecemeal solutions is too high, consider replacement with suite.

    If the majority of applications are plotted in the “Retain” quadrant:

    All applications satisfy both functionality and integration requirements. There is no evidence that significant action is required.

    If the application placements are split between the “Retain” and “Replace/Enhance” quadrants:

    Consider whether or not IT has the capabilities to execute application replacement procedures. If considering replacement, consider the downstream impact on applications that the system in question is currently integrated with. Enhancing an application usually implies upgrading or adding a module to an existing application. Consider the current satisfaction with the application vendor and whether the upgrade or additional module will satisfy your customer service needs.

    3.1 Work through architectural considerations to narrow future states

    Best-of-breeds vs. suite

    Integration and consolidation

    Deployment

    Does the organization only need a point solution or an entire platform of solutions?

    Does the current state enable interoperability between software? Is there room for rationalization?

    Should any new software be SaaS-based, on-premises, or a hybrid?

    Info-Tech Insight

    Decommissioning and replacing entire applications can put well-functioning modules at risk. Make sure to drill down into the granular features to assess if the feature level performance prompts change. The goal is to make the architecture more efficient for Customer Service and easier to manage for IT. If integration has been chosen as a course of action, make sure that the spend on resources and effort is less than that on system replacement. Also make sure that the intended architecture streamlines usability for agents.

    3.1 Considerations: Best-of-breeds vs. suite

    If requirements extend beyond the capabilities of a best-of-breed solution, a suite of tools may be required.

    Best-of-breed

    Suite

    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.

    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.

    3.1 Considerations: Integration and consolidation

    Use Tab 7 of Info-Tech’s Customer Service Systems Strategy Tool to gauge the need for consolidation.

    IT benefits

    • Decreased spend on infrastructure, application acquisition, and development.
    • Reduced complexity in vendor management.
    • Less resources and effort spent on internal integration and functional customization.

    Customer Service benefits

    • Reduced user confusion and application usage efficiency.
    • Increased operational visibility and ease process mapping.
    • Improved data management and integrity.

    Theoretical scenarios and recommendations

    The image contains a screenshot of an example of a customer service functional purpose.

    Problem:

    • Large Redundancy – multiple applications address the same function, but one application performs better than others.

    Recommendation:

    • Consolidate the functions into Application 1 and consider decommissioning Applications 2 to 4.
    The image contains a screenshot of an example of a customer service functional purpose.

    Problem:

    • Large Redundancy – multiple applications address the same function, but none of them do it well.

    Recommendation:

    • None of the applications perform well in functional support. Consider replacing with suite or leveraging the Application 3 vendor for functional module expansion, if feasible.

    3.1 Considerations: Deployment

    SaaS is typically recommended as it reduces IT support needs. However, customization limitations and higher long-term TCO values continue to be a challenge for SaaS.

    On-premises deployment

    Hybrid deployment

    Public cloud deployment

    Benefits

    • Solution and deployment are highly customizable.
    • There are fewer compliance and security risks because customer data is kept on premises.

    Challenges

    • There is slower physical deployment.
    • Physical hardware and software are required.
    • There are higher upfront costs.

    Benefits

    • Pick-and-mix which aspects to keep on premises and which to outsource.
    • Benefits of scaling and flexibility for outsourced solution.

    Challenges

    • Expensive to maintain.
    • Requires in-house skillset for on-premises option.
    • Some control is lost over outsourced customization.

    Benefits

    • Physical hardware is not required.
    • There is rapid deployment, vendor managed product updates, and server maintenance.
    • There are lower upfront costs.

    Challenges

    • There is higher TCO over time.
    • There are perceived security risks.
    • There are service availability and reliability risks.
    • There is limited customization.

    3.1 Considerations: Public cloud deployment

    Functionality is only one aspect of a broader range of issues to narrow down the viability of a cloud-based architecture.

    Security/Privacy Concerns:

    Whether the data is stored on premise or in the cloud, it is never 100% safe. The risk increases with a multi-tenant cloud solution where a single vendor manages the data of multiple clients. If your data is particularly sensitive, heavily scrutinize the security infrastructure of potential vendors or store the data internally if internal security is deemed stronger than that of a vendor.

    Location:

    If there are individuals that need to access the system database and work in different locations, centralizing the system and its database in the cloud may be an effective approach.

    Compatibility:

    Assess the compatibility of the cloud solutions with your internal IT systems. Cloud solutions should be well-integrated with internal systems for data flow to ensure efficiency in service operations.

    Cost/Budget Constraints:

    SaaS allows conversion of up-front CapEx to periodic OpEx. It assists in bolstering a business case as costs in the short-run are much more manageable. On-premise solutions have a much higher upfront TCO than cloud solutions. However, the TCO for the long-term usage of cloud solutions under the licensing model will exceed that of an on-premise solution, especially with a growing business and user base.

    Functionality/Customization:

    Ensure that the function or feature that you need is available on the cloud solution market and that the feature is robust enough to meet service quality standards. If the available cloud solution does not support the processes that fit your future-state vision and gaps, it has little business value. If high levels of customization are required to meet functionality, the amount of effort and cost in dealing with the cloud vendor may outweigh the benefits.

    Maintenance/Downtime:

    For most organizations, lapses in cloud-service availability can become disastrous for customer satisfaction and service quality. Organizations should be prepared for potential outages since customers require constant access to customer support.

    3.2 Explore the customer service technology marketplace

    Your requirements, gap analysis, and assessment of current applications architecture may have prompted the need for a new solutions purchase.

    • Customer service technology has come a long way since PABX in 1960s call centers. Let Info-Tech give you a quick overview of the market and the major systems that revolve around Customer Service.
    • The image contains a screenshot of a timeline of the market and major systems that revolve  around customer service.

    Info-Tech Insight

    While Customer Relationships Management systems interlock several aspects of the customer journey, best-of-breed software for specific aspects of this journey could provide a better ROI if the organization’s coverage of these aspects are only “good enough” and need boosting.

    3.2 The CRM software market will continue to grow at an aggressive rate

    • In recent years, CRM suite solutions have matured significantly in their customer support capabilities. Much of this can be attributed to their acquisitions of smaller best-of-breed Customer Service vendors.
    • Many of the larger CRM solutions (like those offered by Salesforce) have now added social media engagement, knowledge bases, and multi-channel capabilities into their foundational offering.
    • CRM systems are capable of huge sophistication and integration with the core ERP, but they also have heavy license and implementation costs, and therefore may not be for everyone.
    • In some cases, customers are looking to augment upon very specific capabilities that are lacking from their customer service foundation. In these cases, best-of-breed solutions ought to be integrated with a CRM, ERP, or with one another through API integration.
    The image contains a screenshot of a graph that demonstrates the CRM global market growth, 2019-2027.

    3.2 Utilize SoftwareReviews to focus on which CS area needs enhancing

    Contact Center as a Service (CCaaS)

    Cloud-based customer experience solution that allows organizations to utilize a provider’s software to administer incoming support or inquiries from consumers in a hosted, subscription model.

    Customer Service Management (CSM)

    Supports an organization's interaction with current and potential customers. It uses data-driven tools designed to help organizations drive sales and deliver exceptional customer experiences.

    Customer Intelligence Platform

    Gather and analyze data from both structured and unstructured sources regarding your customers, including their demographic/firmographic details and activities, to build deeper and more effective customer relationships and improve business outcomes.

    Enterprise Social Media Management

    Software for monitoring social media activity with the goal of gaining insight into user opinion and optimizing social media campaigns.

    Customer Relationship Management (CRM)

    Consists of applications designed to automate and manage the customer life cycle. CRM software optimizes customer data management, lead tracking, communication logging, and marketing campaigns.

    Virtual Assistants and Chatbots

    interactive applications that use Artificial Intelligence (AI) to engage in conversation via speech or text. These applications simulate human interaction by employing natural language input and feedback.

    3.2 SoftwareReviews’ data accelerates and improves the software selection process

    SoftwareReviews collects and analyzes detailed reviews on enterprise software from real users to give you an unprecedented view into the product and vendor before you buy.

    With SoftwareReviews:

    • Access premium reports to understand the marketspace of 193 software categories.
    • Compare vendors with SoftwareReviews’ Data Quadrant Reports.
    • Discover which vendors have better customer relations management with SoftwareReviews’ Emotional Footprint Reports.
    • Explore the Product Scorecards of single vendors for a detailed analysis of their software offerings.
    The image contains a screenshot of the Software Reviews offerings.

    3.2 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.

    CLICK HERE to access SoftwareReviews

    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.

    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. The insights of our expert analysts provide unparalleled support to our members at every step of their buying journey.

    3.2 Leverage Info-Tech’s Rapid Application Selection Framework

    Improve your key software selection metrics for best-of-breed customer service software.

    The image contains a screenshot of an example of Info-Tech's Rapid Application Selection Framework.

    A simple measurement of the number of days from intake to decision.

    Use our Project Satisfaction Tool to measure stakeholder project satisfaction.

    Use our Application Portfolio Assessment Tool annually to measure application satisfaction.

    Use our Contract Review Service to benchmark and optimize your technology spending.

    Learn more about Info-Tech’s The Rapid Application Selection Framework

    The Rapid Application Selection Framework (RASF) is best geared toward commodity and mid-tier enterprise applications

    Not all software selection projects are created equal – some are very small, some span the entire enterprise. To ensure that IT is using the right framework, understand the cost and complexity profile of the application you’re looking to select. The RASF approach is best for commodity and mid-tier enterprise applications; selecting complex applications is better handled by the methodology described in Implement a Proactive and Consistent Vendor Selection Process.

    RASF Methodology

    Commodity & Personal Applications

    • Simple, straightforward applications (think OneNote vs. Evernote)
    • Total application spend of up to $10,000; limited risk and complexity
    • Selection done as a single, rigorous, one-day session

    Complex Mid-Tier Applications

    • More differentiated, department-wide applications (Marketo vs. Pardot)
    • Total application spend of up to $100,000; medium risk and complexity
    • RASF approach done over the course of an intensive 40-hour engagement

    Consulting Engagement

    Enterprise Applications

    Sophisticated, enterprise-wide applications (Salesforce vs. Dynamics)

    Total application spend of over $100,000; high risk and complexity

    Info-Tech can assist with tailored, custom engagements

    3.3 Translate gathered requirements and gaps into project-based initiatives

    Identify initiatives that can address multiple requirements simultaneously.

    The Process

    • You now have a list of requirements from assessing business processes and the current Customer Service IT systems architecture.
    • With a viable architecture and application posture, you can now begin scoring and plotting key initiatives along a roadmap.
    • Group similar requirements into categories of need and formulate logical initiatives to fulfill the requirements.
    • Ensure that all requirements are related to business needs, measurable, sufficiently detailed, and prioritized, and identify initiatives that meet the requirements.

    Consider this case:

    Paul’s organization, a midsize consumer packaged goods retailer, needs to monitor social media for sentiment, use social analytics to gain intelligence, and receive and respond to inquiries made over Twitter.

    The initiative:

    Implement a social media management platform (SMMP): A SMMP is able to deliver on all of the above requirements. SMMPs are highly capable platforms that have social listening modules and allow costumer service representatives to post to and monitor social media.

    3.3 Prioritize your initiatives and plan the order of rollout

    Initiatives should not and cannot be tackled all at once. There are three key factors that dictate the prioritization of initiatives.

    1. Value
      • What is the monetary value/perceived business value?
      • Are there regulatory or security related impacts if the initiative is not undertaken?
      • What is the time to market and is it an easily achievable goal?
      • How well does it align with the strategic direction?
    2. Risk
      • How technically complex is it?
      • Does it impact existing business processes?
      • Are there ample resources and right skillsets to support it?
    3. Dependencies
      • What initiatives must be undertaken first?
      • Which subsequent initiatives will it support?

    Example scenario using Info-Tech’s Initiative Scoring and Roadmap Tool

    An electronics distributor wants to implement social media monitoring and response. Its existing CRM does not have robust channel management functions. The organization plans to replace its CRM in the future, but because of project size and impact and budgetary constraints, the replacement project has been scheduled to occur two years from now.

    • The SMMP solution proposed for implementation has a high perceived value and is low risk.
    • The CRM replacement has higher value, but also carries significantly more risk.
    • Option 1: Complete the CRM replacement first, and overlay the social media monitoring component afterward (as the SMMP must be integrated with the CRM).
    • Option 2: Seize the easily achievable nature of the SMMP initiative. Implement it now and plan to re-work the CRM integration later.
    The image contains a screenshot of an example scenario using Info-Tech's Initiative Scoring and Roadmap Tool.

    3.3a Develop a Customer Service IT Systems initiative roadmap

    1 hour

    • Complete the tool as a team during a one-hour meeting to collaborate and agree on criteria and weighting.
      1. Input initiative information.
      2. Determine value and risk evaluation criteria.
      3. Evaluate each initiative to determine its priority.
      4. Create a roadmap of prioritized initiatives.
    The image contains a screenshot of the Customer Service Initiative Scoring and Roadmap Tool.
    InputOutput
    • Input the initiative information including the start date, end date, owner, and dependencies
    • Adjust the evaluation criteria, i.e., the value and risk factors
    • A list of initiatives and a roadmap toward the organization’s future state of Customer Service IT Systems
    MaterialsParticipants
    • Customer Service Initiative Scoring and Roadmap Tool
    • Applications Director
    • CIO
    • Customer Service Head

    Download the Customer Service Initiative Scoring and Roadmap Tool

    Document and communicate the strategy

    Leverage the artifacts of this blueprint to summarize your findings and communicate the outcomes of the strategy project to the necessary stakeholders.

    Document Section

    Proposed Content

    Leverage the Following Artifacts

    Executive Summary

    • Introduction
    • The opportunity
    • The scope
    • The stakeholders
    • Project success measures

    Project Charter section:

    • 1.1 Project Overview
    • 1.2 Project Objectives
    • 1.3 Project Benefits
    • 2.0 Scope

    Project RACI Chart Tool:

    • Tab 3. Simplified Output
    The image contains screenshots from the Project Charter, and the RACI Chart Tool.

    Background

    • The project approach
    • Current situation overview
    • Results of the environmental scan

    Blueprint slides:

    • Info-Tech’s methodology to develop your IT Strategy for CS Systems
    The image contains a screenshot from the blueprint slides.

    Future-State Vision

    • Customer service goals
    • Future-state modeling findings

    Customer Service Business Process Shortlisting Tool:

    • Tab 2. Customer Service Goals
    • Tab 5. Level 5 Process Inventory

    Future State Business Process Models

    The image contains screenshots from the Customer Service Business Process Shortlisting Tool.

    Current Situation

    • Current-state modeling findings
    • Current-state architecture findings
    • Gap assessment
    • Requirements

    Customer Service Systems Strategy Tool:

    • Tab 2. Inventory of Applications
    • Tab 7. Systems Health Heat Map
    • Tab 8. Systems Health Dashboard
    • Tab 9. Future vs. Current State
    • Tab 4. Requirements Collection
    The image contains screenshots from the Customer Service Systems Strategy Tool.

    Summary of Recommendations

    • Optimization opportunities
    • New capabilities

    N/A

    IT Strategy Implementation Plan

    • Implementation plan
    • Business case

    Customer Service Initiative Scoring and Roadmap Tool:

    • Tab 2. CS Initiative Definition
    • Tab 4. CS Technology Roadmap
    The image contains screenshots from the Customer Service Initiative Scoring and Roadmap Tool.

    Summary of Accomplishment

    Develop an IT Strategy to Support Customer Service

    With ecommerce accelerating and customer expectations rising with it, organizations must have an IT strategy to support Customer Service.

    The deliverable you have produced from this blueprint provides a solution to this problem: a roadmap to a desired future state for how IT can ground an effective customer service engagement. From omnichannel to self-service, IT will be critical to enabling the tools required to digitally meet customer needs.

    Begin implementing your roadmap!

    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

    Deliver a Customer Service Training Program to Your IT Department

    • 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.

    Build a Chatbot Proof of Concept

    • When implemented effectively, chatbots can help save costs, generate new revenue, and ultimately increase customer satisfaction for both external- and internal-facing customers.

    The Rapid Application Selection Framework

    • Application selection is a critical activity for IT departments. Implement a repeatable, data-driven approach that accelerates application selection efforts.

    Bibliography (1/2)

    • Callzilla. "Software Maker Compares Call Center Companies, Switches to Callzilla After 6 Months of Results." Callzilla. N.d. Accessed: 4 Jul. 2022.
    • Cisco. “Transforming Customer Service.” Cisco. 2018. Accessed: 8 Feb. 2021.
    • Gottlieb, Giorgina. “The Importance of Data for Superior Customer Experience and Business Success.” Medium. 23 May 2019. Accessed: 8 Feb. 2021.
    • Grand View Research. “Customer Relationship Management Market Size, Share & Trends Analysis Report By Solution, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2020 – 2027.” Grand View Research. April 2020. Accessed: 17 Feb. 2021.
    • inContact. “Hall Automotive Accelerates Customer Relations with inContact.” inContact. N.d. Accessed: 8 Feb. 2021.
    • Kulbyte, Toma. “37 Customer Experience Statistics to Know in 2021.” Super Office. 4 Jan. 2021. Accessed: 5 Feb. 2021.
    • Kuligowski, Kiely. "11 Benefits of CRM Systems." Business News Daily. 29 Jun. 2022. Accessed: 4 Jul. 2022.
    • Mattsen Kumar. “Ominchannel Support Transforms Customer Experience for Leading Fintech Player in India.” Mattsen Kumar. 4 Apr. 2020. Accessed: 8 Feb. 2021.
    • Microsoft. “State of Global Customer Service Report.” Microsoft. Mar. 2019. Accessed: 8 Feb. 2021.
    • Ringshall, Ben. “Contact Center Trends 2020: A New Age for the Contact Center.” Fonolo. 20 Oct. 2020. Accessed 2 Nov. 2020.
    • Salesforce. “State of Service.” Salesforce. 4th ed. 2020. Accessed: 8 Feb. 2021.
    • Sopadjieva, Emma, Utpal M. Dholakia, and Beth Benjamin. “A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works.” Harvard Business Review. 3 Jan. 2017. Accessed: 8 Feb. 2021.

    Bibliography (2/2)

    • Tech Pro Research. “Digital Transformation Research Report 2018: Strategy, Returns on Investment, and Challenges.” Tech Pro Research. 29 Jul. 2018. Accessed: 5 Feb. 2021.
    • TSB. “TSB Bank Self-Serve Banking Increases 9% with Adobe Sign.” TSB. N.d. Accessed: 8 Feb. 2021.
    • VoiceSage. “VoiceSage Helps Home Retail Group Transform Customer Experience.” VoiceSage. 4 May 2018. Accessed: 8 Feb. 2021.

    Identify and Reduce Agile Contract Risk

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    • member rating overall impact (scale of 10): 8.0/10 Overall Impact
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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Customer maturity levels with Agile are low, with 67% of organizations using Agile for less than five years.
    • Customer competency levels with Agile are also low, with 84% of organizations stating they are below a high level of competency.
    • Contract disputes are the number one or two types of disputes faced by organizations across all industries.

    Our Advice

    Critical Insight

    • Agile contracts require different wording and protections than traditional or waterfall contracts.
    • Agile buzzwords by themselves do not create an Agile contract.
    • There is a delicate balance between being overly prescriptive in an Agile contract and too lax.

    Impact and Result

    • Identify options for Agile contract provisions.
    • Manage Agile contract risk by selecting the appropriate level of protections for an Agile project.
    • Harness the power of Agile development and collaboration with the vendor while preserving contractual flexibility.
    • Focus on the correct contract clauses to manage Agile risk.

    Identify and Reduce Agile Contract Risk Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should treat Agile contracts differently from traditional or waterfall contracts, and review Info-Tech’s methodology, and understand the twelve contract clauses that are different for Agile contracts.

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

    1. Identify and evaluate options

    Use the information in this blueprint and Info-Tech’s Agile Contract Playbook-Checklist to review and assess your Agile contracts, ensuring that the provisions and protections are suitable for Agile contracts specifically.

    • Agile Contracts Playbook-Checklist
    [infographic]

    Workshop: Identify and Reduce Agile Contract Risk

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

    1 Identify and Evaluate Options

    The Purpose

    To understand Agile-specific contract clauses, to improve risk identification, and to be more effective at negotiating Agile contract terms.

    Key Benefits Achieved

    Increased awareness of how Agile contract provisions are different from traditional or waterfall contracts in 12 key areas.

    Understanding available options.

    Understanding the impact of being too prescriptive.

    Activities

    1.1 Review the Agile Contract Playbook-Checklist.

    1.2 Review 12 contract provisions and reinforce key learnings with exercises.

    Outputs

    Configured Playbook-Checklist as applicable

    Exercise results and debrief

    Project Management

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    • Parent Category Name: Project Portfolio Management and Projects
    • Parent Category Link: /ppm-and-projects

    The challenge

    • Ill-defined or even lack of upfront project planning will increase the perception that your IT department cannot deliver value because most projects will go over time and budget.
    • The perception is those traditional ways of delivering projects via the PMBOK only increase overhead and do not have value. This is less due to the methodology and more to do with organizations trying to implement best-practices that far exceed their current capabilities.
    • Typical best-practices are too clinical in their approach and place unrealistic burdens on IT departments. They fail to address the daily difficulties faces by staff and are not sized to fit your organization.
    • Take a flexible approach and ensure that your management process is a cultural and capacity fit for your organization. Take what fits from these frameworks and embed them tailored into your company.

    Our advice

    Insight

    • The feather-touch is often the right touch. Ensure that you have a lightweight approach for most of your projects while applying more rigor to the more complex and high-risk developments.
    • Pick the right tools. Your new project management processes need the right tooling to be successful. Pick a tool that is flexible enough o accommodate projects of all sizes without imposing undue governance onto smaller projects.
    • Yes, take what fits within your company from frameworks, but there is no cherry-picking. Ensure your processes stay in context: If you do not inform for effective decision-making, all will be in vain. Develop your methods such that guide the way to big-picture decision taking and support effective portfolio management.

    Impact and results 

    • The right amount of upfront planning is a function of the type of projects you have and your company. The proper levels enable better scope statements, better requirements gathering, and increased business satisfaction.
    • An investment in a formal methodology is critical to projects of all sizes. An effective process results in more successful projects with excellent business value delivery.
    • When you have a repeatable and consistent approach to project planning and execution, you can better communicate between the IT project managers and decision-makers.
    • Better communication improves the visibility of the overall project activity within your company.

    The roadmap

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

    Get started.

    Read our executive brief to understand why you should tailor project management practices to the type of projects you do and your company and review our methodology. We show you how we can support you.

    Lay the groundwork for project management success

    Assess your current capabilities to set the right level of governance.

    • Tailor Project Management Processes to Fit Your Projects – Phase 1: Lay the Groundwork for PM Success (ppt)
    • Project Management Triage Tool (xls)
    • COBIT BAI01 (Manage Programs and Projects) Alignment Workbook (xls)
    • Project Level Definition Matrix (xls)
    • Project Level Selection Tool (xls)
    • Project Level Assessment Tool (xls)
    • Project Management SOP Template (doc)

    Small project require a lightweight framework

    Increase small project's throughput.

    • Tailor Project Management Processes to Fit Your Projects – Phase 2: Build a Lightweight PM Process for Small Initiatives (ppt)
    • Level 1 Project Charter Template (doc)
    • Level 1 Project Status Report Template (doc)
    • Level 1 Project Closure Checklist Template (doc)

    Build the standard process medium and large-scale projects

    The standard process contains fully featured initiation and planning.

    • Tailor Project Management Processes to Fit Your Projects – Phase 3: Establish Initiation and Planning Protocols for Medium-to-Large Projects (ppt)
    • Project Stakeholder and Impact Assessment Tool (xls)
    • Level 2 Project Charter Template (doc)
    • Level 3 Project Charter Template (doc)
    • Kick-Off Meeting Agenda Template (doc)
    • Scope Statement Template (doc)
    • Project Staffing Plan(xls)
    • Communications Management Plan Template (doc)
    • Customer/Sponsor Project Status Meeting Template (doc)
    • Level 2 Project Status Report Template (doc)
    • Level 3 Project Status Report Template (doc)
    • Quality Management Workbook (xls)
    • Benefits Management Plan Template (xls)
    • Risk Management Workbook (xls)

    Build a standard process for the execution and closure of medium to large scale projects

    • Tailor Project Management Processes to Fit Your Projects – Phase 4: Develop Execution and Closing Procedures for Medium-to-Large Projects (ppt)
    • Project Team Meeting Agenda Template (doc)
    • Light Project Change Request Form Template (doc)
    • Detailed Project Change Request Form Template (doc)
    • Light Recommendation and Decision Tracking Log Template (xls)
    • Detailed Recommendation and Decision Tracking Log Template (xls)
    • Deliverable Acceptance Form Template (doc)
    • Handover to Operations Template (doc)
    • Post-Mortem Review Template (doc)
    • Final Sign-Off and Acceptance Form Template (doc)

    Implement your project management standard operating procedures (SOP)

    Develop roll-out and training plans, implement your new process and track metrics.

    • Tailor Project Management Processes to Fit Your Projects – Phase 5: Implement Your PM SOP (ppt)
    • Level 2 Project Management Plan Template (doc)
    • Project Management Process Costing Tool (xls)
    • Project Management Process Training Plan Template (doc)
    • Project Management Training Monitoring Tool (xls)
    • Project Management Process Implementation Timeline Tool (MS Project)
    • Project Management Process Implementation Timeline Tool (xls)

     

     

    Build a Strategic Infrastructure Roadmap

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    • Parent Category Name: Strategy and Organizational Design
    • Parent Category Link: /strategy-and-organizational-design

    Getting a seat at the table is your first objective in building a strategic roadmap. Knowing what the business wants to do and understanding what it will need in the future is a challenge for most IT departments.

    This could be a challenge such as:

    • Understanding the business vision
    • Clear communications on business planning
    • Insight into what the future state should look like
    • Understanding what the IT team is spending its time on day to day

    Our Advice

    Critical Insight

    • Having a clear vision of what the future state is and knowing that creating an IT Infrastructure roadmap is never finished will give your IT team an understanding of priorities, goals, business vision, and risks associated with not planning.
    • Understand what you are currently paying for and why.

    Impact and Result

    • Understanding of the business priorities, and vision of the future
    • Know what your budget is spent on: running the business, growth, or innovation
    • Increased communication with the right stakeholders
    • Better planning based on analysis of time study, priorities, and business goals

    Build a Strategic Infrastructure Roadmap Research & Tools

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

    1. Build a Strategic Infrastructure Roadmap Storyboard – Improve and align goals and strategy.

    In this section you will develop a vision and mission statement and set goals that align with the business vision and goals. The outcome will deliver your guiding principles and a list of goals that will determine your initiatives and their priorities.

    • Build Your Infrastructure Roadmap Storyboard
    • Strategic Infrastructure Roadmap Tool

    2. Financial Spend Analysis Template – Envision future and analyze constraints.

    Consider your future state by looking at technology that will help the business in the future. Complete an analysis of your past spending to determine your future spend. Complete a SWOT analysis to determine suitability.

    • Financial Spend Analysis Template

    3. Strategic Roadmap Initiative Template – Align and build the roadmap.

    Develop a risk framework that may slow or hinder your strategic initiatives from progressing and evaluate your technical debt. What is the current state of your infrastructure? Generate and prioritize your initiatives, and set dates for completion.

    • Strategic Roadmap Initiative Template

    4. Infrastructure and Strategy Executive Brief Template – Communicate and improve the process.

    After creating your roadmap, communicate it to your audience. Identify who needs to be informed and create an executive brief with the template download. Finally, create KPIs to measure what success looks like.

    • Infrastructure Strategy and Roadmap Executive Presentation Template
    • Infrastructure Strategy and Roadmap Report Template

    Infographic

    Further reading

    Build a Strategic Infrastructure Roadmap

    Align infrastructure investment to business-driven goals.

    Analysts' Perspectives

    Infrastructure roadmaps are an absolute necessity for all organizations. An organization's size often dictates the degree of complexity of the roadmap, but they all strive to paint the future picture of the organization's IT infrastructure.

    Infrastructure roadmaps typically start with the current state of infrastructure and work on how to improve. That thinking must change! Start with the future vision, an unimpeded vision, as if there were no constraints. Now you can see where you want to be.

    Look at your past to determine how you have been spending your infrastructure budget. If your past shows a trend of increased operational expenditures, that trend will likely continue. The same is true for capital spending and staffing numbers.

    Now that you know where you want to go, and how you ended up where you are, look at the constraints you must deal with and make a plan. It's not as difficult as it may seem, and even the longest journey begins with one step.

    Speaking of that first step, it should be to understand the business goals and align your roadmap with those same goals. Now you have a solid plan to develop a strategic infrastructure roadmap; enjoy the journey!

    There are many reasons why you need to build a strategic IT infrastructure roadmap, but your primary objectives are to set the long-term direction, build a framework for decision making, create a foundation for operational planning, and be able to explain to the business what you are planning. It is a basis for accountability and sets out goals and priorities for the future.

    Other than knowing where you are going there are four key benefits to building the roadmap.

    1. It allows you to be strategic and transformative rather than tactical and reactive.
    2. It gives you the ability to prioritize your tasks and projects in order to get them going.
    3. It gives you the ability to align your projects to business outcomes.
    4. Additionally, you can leverage your roadmap to justify your budget for resources and infrastructure.

    When complete, you will be able to communicate to your fellow IT teams what you are doing and get an understanding of possible business- or IT-related roadblocks, but overall executing on your roadmap will demonstrate to the business your competencies and ability to succeed.

    PJ Ryan

    PJ Ryan
    Research Director
    Infrastructure & Operations Practice
    Info-Tech Research Group

    John Donovan

    John Donovan
    Principal Research Director
    Infrastructure & Operations Practice
    Info-Tech Research Group

    Build a Strategic Infrastructure Roadmap

    Align infrastructure investment to business-driven goals.

    EXECUTIVE BRIEF

    Executive Summary

    Your Challenge

    When it comes to building a strategic roadmap, getting a seat at the table is your first objective. Knowing what the business wants to do and understanding its future needs is a challenge for most IT organizations.

    Challenges such as:

    • Understanding the business vision
    • Clear communications on business planning
    • Insight into what the future state should look like

    Common Obstacles

    Fighting fires, keeping the lights on, patching, and overseeing legacy debt maintenance – these activities prevent your IT team from thinking strategically and looking beyond day-to-day operations. Issues include:

    • Managing time well
    • Building the right teams
    • Setting priorities

    Procrastinating when it comes to thinking about your future state will get you nowhere in a hurry.

    Info-Tech's Approach

    Look into your past IT spend and resources that are being utilized.

    • Analyze all aspects of the operation, and resources required.
    • Be realistic with your timelines.
    • Work from the future state backward.

    Build your roadmap by setting priorities, understanding risk and gaps both in finance and resources. Overall, your roadmap is never done, so don't worry if you get it wrong on the first pass.

    Info-Tech Insight

    Have a clear vision of what the future state is, and know that when creating an IT infrastructure roadmap, it is never done. This will give your IT team an understanding of priorities, goals, business vision, and risks associated with not planning. Understand what you are currently paying for and why.

    Insight Summary

    "Planning is bringing the future into the present so that you can do something about it now."
    Source: Alan Lakein, Libquotes

    Your strategic objectives are key to building a roadmap

    Many organizations' day-to-day IT operations are tactical and reactive. This needs to change; the IT team needs to become strategic and proactive in its planning and execution. Forward thinking bridges the gap from your current state, to what the organization is, to what it wants to achieve. Your strategic objectives need to align to the business vision and goals and keep it running.

    Your future state will determine your roadmap priorities

    Identify what the business needs to meet its goals; this should be reflected in your roadmap priorities. Then identify the tasks and projects that can get you there. Business alignment is key, as these projects require prioritization. Strategic initiatives that align to business outcomes will be your foundation for planning on those priorities. If you do not align your initiatives, you will end up spinning your wheels. A good strategic roadmap will have all the elements of forward thinking and planning to execute with the right resources, right priorities, and right funding to make it happen.

    Understand what you have been paying for the last few years

    Measure the cost of "keeping the lights on" as a baseline for your budget that is earmarked and already spent. Determine if your current spend is holding back innovation due to:

    1. The high cost of maintenance
    2. Resources in operations doing low-value work due to the effort required to do tasks related to break/fix on aging hardware and software

    A successful strategic roadmap will be determined when you have a good handle on your current spending patterns and planning for future needs that include resources, budget, and know-how. Without a plan and roadmap, that plan will not get business buy-in or funding.

    Top challenges reported by Info-Tech members

    Lack of strategic direction

    • Infrastructure leadership must discover the business goals.

    Time seepage

    • Project time is constantly being tracked incorrectly.

    Technical debt

    • Aging equipment is not proactively cycled out with newer enabling technologies.

    Case Study

    The strategic IT roadmap allows Dura to stay at the forefront of automotive manufacturing.

    INDUSTRY: Manufacturing
    SOURCE: Performance Improvement Partners

    Challenge

    Following the acquisition of Dura, MiddleGround aimed to position Dura as a leader in the automotive industry, leveraging the company's established success spanning over a century.

    However, prior limited investments in technology necessitated significant improvements for Dura to optimize its processes and take advantage of digital advancements.

    Solution

    MiddleGround joined forces with PIP to assess technology risks, expenses, and prospects, and develop a practical IT plan with solutions that fit MiddleGround's value-creation timeline.

    By selecting the top 15 most important IT projects, the companies put together a feasible technology roadmap aimed at advancing Dura in the manufacturing sector.

    Results

    Armed with due diligence reports and a well-defined IT plan, MiddleGround and Dura have a strategic approach to maximizing value creation.

    By focusing on key areas such as analysis, applications, infrastructure and the IT organization, Dura is effectively transforming its operations and shaping the future of the automotive manufacturing industry.

    How well do you know your business strategy?

    A mere 25% of managers
    can list three of the company's
    top five priorities.

    Based on a study from MIT Sloan, shared understanding of strategic directives barely exists beyond the top tiers of leadership.

    An image of a bar graph showing the percentage of leaders able to correctly list a majority of their strategic priorities.

    Take your time back

    Unplanned incident response is a leading cause of the infrastructure time crunch, but so too are nonstandard service requests and service requests that should be projects.

    29%

    Less than one-third of all IT projects finish on time.

    200%

    85% of IT projects average cost overruns of 200% and time overruns of 70%.

    70%

    70% of IT workers feel as though they have too much work and not enough time to do it.

    Source: MIT Sloan

    Inventory Assessment

    Lifecycle

    Refresh strategies are still based on truisms (every three years for servers, every seven years for LAN, etc.) more than risk-based approaches.

    Opportunity Cost

    Assets that were suitable to enable business goals need to be re-evaluated as those goals change.

    See Info-Tech's Manage Your Technical Debt blueprint

    an image of info-tech's Manage your technical debt.

    Key IT strategy initiatives can be categorized in three ways

    IT key initiative plan

    Initiatives collectively support the business goals and corporate initiatives, and improve the delivery of IT services.

    1. Business support
      • Support major business initiatives
      • Each corporate initiative is supported by a major IT project and each project has unique IT challenges that require IT support.
    2. IT excellence
      • Reduce risk and improve IT operational excellence
      • These projects will increase IT process maturity and will systematically improve IT.
    3. Innovation
      • Drive technology innovation
      • These projects will improve future innovation capabilities and decrease risk by increasing technology maturity.

    Info-Tech Insight

    A CIO has three roles: enable business productivity, run an effective IT shop, and drive technology innovation. Your key initiative plan must reflect these three mandates and how IT strives to fulfill them.

    IT must accomplish many things

    Manage
    the lifecycle of aging equipment against current capacity and capability demands.

    Curate
    a portfolio of enabling technologies to meet future capacity and capability demands.

    Initiate
    a realistic schedule of initiatives that supports a diverse range of business goals.

    Adapt
    to executive feedback and changing business goals.

    an image of Info-Tech's Build your strategic roadmap

    Primary and secondary infrastructure drivers

    • Primary driver – The infrastructure component that is directly responsible for enabling change in the business metric.
    • Secondary driver – The infrastructure component(s) that primary drivers rely on.

    (Source: BMC)

    Sample primary and secondary drivers

    Business metric Source(s) Primary infrastructure drivers Secondary infrastructure drivers

    Sales revenue

    Online store

    Website/Server (for digital businesses)

    • Network
    • Data center facilities

    # of new customers

    Call center

    Physical plant cabling in the call center

    • PBX/VOIP server
    • Network
    • Data center facilities

    Info-Tech Insight

    You may not be able to directly influence the primary drivers of the business, but your infrastructure can have a major impact as a secondary driver.

    Info-Tech's approach

    1. Align strategy and goals
    • Establish the scope of your IT strategy by defining IT's mission and vision statements and guiding principles.
  • Envision future and analyze constraints
    • Envision and define your future infrastructure and analyze what is holding you back.
  • Align and build the roadmap
    • Establish a risk framework, identify initiatives, and build your strategic infrastructure roadmap.
  • Communicate and improve the process
    • Communicate the results of your hard work to the right people and establish the groundwork for continual improvement of the process.
  • Blueprint deliverables

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

    Mission and Vision Statement
    Goal Alignment (Slide 28)

    Construct your vision and mission aligned to the business.

    Mission and Vision Statement

    Strategic Infrastructure Roadmap tool

    Build initiatives and prioritize them. Build the roadmap.

    Strategic Infrastructure Roadmap tool

    Infrastructure Domain Study

    What is stealing your time from getting projects done?

    Infrastructure Domain Study

    Initiative Templates Process Maps & Strategy

    Build templates for initiates, build process map, and develop strategies.

    Initiative Templates Process Maps & Strategy

    Key Deliverable

    it infrastructure roadmap template

    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

    Info-Tech's methodology for an infrastructure strategy and roadmap

    1. Align Strategy and Goals

    2. Envision Future and Analyze Constraints

    3. Align and Build the Roadmap

    4. Communicate and Improve the Process

    Phase steps

    1.1 Develop the infrastructure strategy

    1.2 Define the goals

    2.1 Define the future state

    2.2 Analyze constraints

    3.1 Align the roadmap

    3.2 Build the roadmap

    4.1 Identify the audience

    4.2 Improve the process

    Phase Outcomes

    • Vision statement
    • Mission statement
    • Guiding principles
    • List of goals
    • Financial spend analysis
    • Domain time study
    • Prioritized list of roadblocks
    • Future-state vision document
    • IT and business risk frameworks
    • Technical debt assessment
    • New technology analysis
    • Initiative templates
    • Initiative candidates
    • Roadmap visualization
    • Process schedule
    • Communications strategy
    • process map
    • Infrastructure roadmap report

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

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

    Call #2: Define mission and vision statements and guiding principles to discuss strategy scope.
    Call #3: Brainstorm goals and definition.

    Call #4: Conduct a spend analysis and a time resource study.
    Call #5: Identify roadblocks.

    Call #6: Develop a risk framework and address technical debt.
    Call #7: Identify new initiatives and SWOT analysis.
    Call #8: Visualize and identify initiatives.
    Call #9: Complete shadow IT and initiative finalization.

    Call #10: Identify your audience and communicate.
    Call #11: Improve the process.

    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

    Session 0 (Pre-workshop)

    Session 1

    Session 2

    Session 3

    Session 4

    Session 5 (Post-workshop)

    Elicit business context Align Strategy and Goals Envision Future and Analyze Constraints Align and Build the Roadmap Communicate and Improve the Process Wrap-up (offsite)

    0.1 Complete recommended diagnostic programs.
    0.2 Interview key business stakeholders, as needed, to identify business context: business goals, initiatives, and the organization's mission and vision.
    0.3 (Optional) CIO to compile and prioritize IT success stories.

    1.1 Infrastructure strategy.
    1.1.1 Review/validate the business context.
    1.1.2 Construct your mission and vision statements.
    1.1.3 Elicit your guiding principles and finalize IT strategy scope.

    1.2 Business goal alignment
    1.2.1 Intake identification and analysis.
    1.2.2 Survey results analysis.
    1.2.3 Brainstorm goals.
    1.2.4 Perform goal association and analysis.

    2.1 Define the future state.
    2.1.1 Conduct an emerging technology discussion.
    2.1.2 Document desired future state.
    2.1.3 Develop a new technology identification process.
    2.1.4 Compete SWOT analysis.

    2.2 Analyze your constraints
    2.2.1 Perform a historical spend analysis.
    2.2.2 Conduct a time study.
    2.2.3 Identify roadblocks.
    .

    3.1 Align the roadmap
    3.1.1 Develop a risk framework.
    3.1.2 Evaluate technical debt.

    3.2 Build the roadmap.
    3.2.1 Build effective initiative templates.
    3.2.2 Visualize.
    3.2.3 Generate new initiatives.
    3.2.4 Repatriate shadow IT initiatives.
    3.2.5 Finalize initiative candidates.

    4.2 Identify the audience
    4.1.1 Identify required authors and target audiences.
    4.1.2 Plan the process.
    4.1.2 Identify supporters and blockers.

    4.2 Improve the process
    4.2.1 Evaluate the value of each process output.
    4.2.2 Brainstorm improvements.
    4.2.3 Set realistic measures.

    5.1 Complete in-progress deliverables from previous four days.
    5.2 Set up time to review workshop deliverables and discuss next steps.

    1. SWOT analysis of current state
    2. Goals cascade
    3. Persona analysis
    1. Vision statement, mission statement, and guiding principles
    2. List of goals
    1. Spend analysis document
    2. Domain time study
    3. Prioritized list of roadblocks
    4. Future state vision document
    1. IT and business risk frameworks
    2. Technical debt assessment
    3. New technology analysis
    4. Initiative templates
    5. Initiative candidates
    1. Roadmap visualization
    2. Process schedule
    3. Communications strategy
    4. Process map
    1. Strategic Infrastructure Roadmap Report

    Phase 1

    Align Strategy and Goals

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    1.1 Infrastructure strategy

    1.2 Goal alignment

    2.1 Define your future

    2.2 Conduct constraints analysis

    3.1 Drive business alignment

    3.2. Build the roadmap

    4.1 Identify the audience

    4.2 Process improvement

    and measurements

    This phase will walk you through the following activities:

    • How to build IT mission and vision statements
    • How to elicit IT guiding principles
    • How to finalize and communicate your IT strategy scope

    This phase involves the following participants:

    • CIO
    • Senior IT Team

    Step 1.1

    Develop the Infrastructure Strategy

    Activities

    1.1.1 Review/validate the business context

    1.1.2 Construct your mission and vision statements

    1.1.3 Elicit your guiding principles and finalize IT strategy scope

    This step requires the following inputs:

    • Business Mission Statement
    • Business Vision Statement
    • Business Goals

    This step involves the following participants:

    • Roadmap team

    Outcomes of this step

    • IT mission statement
    • IT vision statement
    • Guiding principles

    To complete this phase, you will need:

    Infrastructure Strategy and Roadmap Report Template

    Infrastructure Strategy and Roadmap Report Template

    Use the IT Infrastructure Strategy and Roadmap Report Template to document the results from the following activities:

    • Mission and Vision Statements
    • Business impact
    • Roadmap

    IT must aim to support the organization's mission and vision

    A mission statement

    • Focuses on today and what an organization does to achieve the mission.
    • Drives the company.
    • Answers: What do we do? Who do we serve? How do we service them?

    "A mission statement focuses on the purpose of the brand; the vision statement looks to the fulfillment of that purpose."

    A vision statement

    • Focuses on tomorrow and what an organization ultimately wants to become.
    • Gives the company direction.
    • Answers: What problems are we solving? Who and what are we changing?

    "A vision statement provides a concrete way for stakeholders, especially employees, to understand the meaning and purpose of your business. However, unlike a mission statement – which describes the who, what, and why of your business – a vision statement describes the desired long-term results of your company's efforts."
    Source: Business News Daily, 2020

    Characteristics of mission and vision statements

    A strong mission statement has the following characteristics:

    • Articulates the IT function's purpose and reason for existence.
    • Describes what the IT function does to achieve its vision.
    • Defines the customers of the IT function.
    • Is:
      • Compelling
      • Easy to grasp
      • Sharply focused
      • Concise

    A strong vision statement has the following characteristics:

    • Describes a desired future achievement.
    • Focuses on ends, not means.
    • Communicates promise.
    • Is:
      • Concise; no unnecessary words
      • Compelling
      • Achievable
      • Measurable

    Derive the IT mission and vision statements from the business

    Begin the process by identifying and locating the business mission and vision statements.

    • Corporate websites
    • Business strategy documents
    • Business executives

    Ensure there is alignment between the business and IT statements.

    Note: Mission statements may remain the same unless the IT department's mandate is changing.

    an image showing Business mission, IT mission, Business Vision, and IT Vison.

    1.1.2 Construct mission and vision statements

    1 hour

    Objective: Help teams define their purpose (why they exist) to build a mission statement (if one doesn't already exist).

    Step 1:

    1. Gather the IT strategy creation team and revisit your business context inputs, specifically the corporate mission statement.
    2. Begin by asking the participants:
        1. What is our job as a team?
        2. What's our goal? How do we align IT to our corporate mission?
        3. What benefit are we bringing to the company and the world?
      1. Ask them to share general thoughts in a check-in.

    Step 2:

    1. Share some examples of IT mission statements.
    2. Example: IT provides innovative product solutions and leadership that drives growth and
      success.
    3. Provide each participant with some time to write their own version of an IT mission statement.

    Download the ITRG IT Infrastructure Strategy and Roadmap Report Template and document your mission and vision statements in Section 1.

    Input

    • Business vision statement
    • Business mission statement

    Output

    • IT mission statement
    • IT vision statement

    Materials

    • Sticky notes
    • Markers
    • Whiteboard
    • Paper
    • Collaboration/brain-storming tool (whiteboard, flip chart, digital equivalent)

    Participants

    • CIO
    • Senior IT Team

    1.1.2 Construct mission and vision statements (cont'd)

    1 hour

    Objective: Help teams define their purpose (why they exist) to build a mission statement (if one doesn't already exist).

    Step 3:

    This step involves reviewing individual mission statements, combining them, and building one collective mission statement for the team.

    1. Consider the following approach to build a unified mission statement:

    Use the 20x20 rule for group decision-making. Give the group no more than 20 minutes to craft a collective team purpose with no more than 20 words.

    1. As a facilitator, provide guidelines on how to write for the intended audience. Business stakeholders need business language.
    2. Refer to the corporate mission statement periodically and ensure there is alignment.
    3. Document your final mission statement in your ITRG Infrastructure Strategy and Roadmap Report Template.

    Download the ITRG IT Infrastructure Strategy and Roadmap Report Template and document your mission and vision statements in Section 1.

    Input

    • Business vision statement
    • Business mission statement

    Output

    • IT mission statement
    • IT vision statement

    Materials

    • Sticky notes
    • Markers
    • Whiteboard
    • Paper
    • Collaboration/brain-storming tool (whiteboard, flip chart, digital equivalent)

    Participants

    • CIO
    • Senior IT Team

    1.1.2 Construct mission and vision statements (cont'd)

    1 hour

    Objective: Help teams define their purpose (why they exist) to build a mission statement (if one doesn't already exist).

    Step 4:

    1. Gather the IT strategy creation team and revisit your business context inputs, specifically the corporate vision statement.
    2. Share one or more examples of vision statements.
    3. Provide participants with sticky notes and writing materials and ask them to work individually for this step.
    4. Ask participants to brainstorm:
      1. What is the desired future state of the IT organization?
      2. How should we work to attain the desired state?
      3. How do we want IT to be perceived in the desired state?
    5. Provide participants with guidelines to build descriptive, compelling, and achievable statements regarding their desired future state.
    6. Regroup as a team and review participant answers.

    Download the ITRG IT Infrastructure Strategy and Roadmap Report Template and document your mission and vision statements in Section 1.

    Input

    • Business vision statement
    • Business mission statement

    Output

    • IT mission statement
    • IT vision statement

    Materials

    • Sticky notes
    • Markers
    • Whiteboard
    • Paper
    • Collaboration/brain-storming tool (whiteboard, flip chart, digital equivalent)

    Participants

    • CIO
    • Senior IT Team

    1.1.2 Construct mission and vision statements (cont'd)

    1 hour

    Objective: Help teams define their purpose (why they exist) to build a mission statement (if one doesn't already exist).

    Step 5:

    1. Ask the team to post their notes on the wall.
    2. Have the team group the words that have a similar meaning or feeling behind them; this will create themes.
    3. When the group is done categorizing the statements into themes, ask if there's anything missing. Did they ensure alignment to the corporate vision statement? Are there any elements missing when considering alignment back to the corporate vision statement?

    Step 6:

    1. Consider each category as a component of your vision statement.
    2. Review each category with participants; define what the behavior looks like when it is being met and what it looks like when it isn't.
    3. As a facilitator, provide guidelines on word-smithing and finessing the language.
    4. Refer to the corporate vision statement periodically and ensure there is alignment.
    5. Document your final mission statement in your IT Strategy Presentation Template.

    Download the ITRG IT Infrastructure Strategy and Roadmap Report Template and document your mission and vision statements in Section 1.

    Input

    • Business vision statement
    • Business mission statement

    Output

    • IT mission statement
    • IT vision statement

    Materials

    • Sticky notes
    • Markers
    • Whiteboard
    • Paper
    • Collaboration/brain-storming tool (whiteboard, flip chart, digital equivalent)

    Participants

    • CIO
    • Senior IT Team

    1.1.2 Construct mission and vision statements (cont'd)

    Tips for online facilitation:

    • Pick an online whiteboard tool that allows participants to use a large, zoomable canvas.
    • Set up each topic at a different area of the board; spread them out just like you would do on the walls of a room.
    • Invite participants to zoom in and visit each section and add their ideas as sticky notes once you reach that section of the exercise.
    • If you're not using an online whiteboard, we'd recommend using a collaboration tool such as Google Docs or Teams Whiteboard to collect the information for each step under a separate heading. Invite everyone into the document but be very clear regarding editing rights.
    • Pre-create your screen deck and screen share this with your participants through your videoconferencing software. We'd also recommend sharing this so participants can go through the deck again during the reflection steps.
    • When facilitating group discussion, we'd recommend that participants use non-verbal means to indicate they'd like to speak. You can use tools like Teams' hand-raising tool, a reaction emoji, or have people put their hands up. The facilitator can then invite that person to talk.

    Source: Hyper Island

    Input

    • Business vision statement
    • Business mission statement

    Output

    • IT mission statement
    • IT vision statement

    Materials

    • Sticky notes
    • Markers
    • Whiteboard
    • Paper
    • Collaboration/brainstorming tool (whiteboard, flip chart, digital equivalent)

    Participants

    • CIO
    • Senior IT Team

    IT mission statements demonstrate IT's purpose

    The IT mission statement specifies the function's purpose or reason for being. The mission should guide each day's activities and decisions. The mission statements use simple and concise terminology and speak loudly and clearly, generating enthusiasm for the organization.

    Strong IT mission statements have the following characteristics:

    • Articulate the IT function's purpose and reason for existence
    • Describe what the IT function does to achieve its vision
    • Define the customers of the IT function
    • Are:
      • Compelling
      • Easy to grasp
      • Sharply focused
      • Inspirational
      • Memorable
      • Concise

    Sample IT Mission Statements:

    • To provide infrastructure, support, and innovation in the delivery of secure, enterprise-grade information technology products and services that enable and empower the workforce at [Company Name].
    • To help fulfill organizational goals, the IT department is committed to empowering business stakeholders with technology and services that facilitate effective processes, collaboration, and communication.
    • The mission of the information technology (IT) department is to build a solid, comprehensive technology infrastructure; to maintain an efficient, effective operations environment; and to deliver high-quality, timely services that support the business goals and objectives of ABC Inc.
    • The IT department has operational, strategic, and fiscal responsibility for the innovation, implementation, and advancement of technology at ABC Inc. in three main areas: network administration and end-user support, instructional services, and information systems. The IT department provides leadership in long-range planning, implementation, and maintenance of information technology across the organization.
    • The IT group is customer-centered and driven by its commitment to management and staff. It oversees services in computing, telecommunications, networking, administrative computing, and technology training.

    Sample mission statements (cont'd)

    • To collaborate and empower our stakeholders through an engaged team and operational agility and deliver innovative technology and services.
    • To empower our stakeholders with innovative technology and services, through collaboration and agility.
    • To collaborate and empower our stakeholder, by delivering innovative technology and services, with an engaged team and operational agility.
    • To partner with departments and be technology leaders that will deliver innovative, secure, efficient, and cost-effective services for our citizens.
    • As a client-centric strategic partner, provide excellence in IM and IT services through flexible business solutions for achieving positive user experience and satisfaction.
    • Develop a high-performing global team that will plan and build a scalable, stable operating environment.
    • Through communication and collaboration, empower stakeholders with innovative technology and services.
    • Build a robust portfolio of technology services and solutions, enabling science-lead and business-driven success.
    • Guided by value-driven decision making, high-performing teams and trusted partners deliver and continually improve secure, reliable, scalable, and reusable services that exceed customer expectations.
    • Engage the business to grow capabilities and securely deliver efficient services to our users and clients.
    • Engage the business to securely deliver efficient services and grow capabilities for our users and clients.

    IT vision statements demonstrate what the IT organization aspires to be

    The IT vision statement communicates a desired future state of the IT organization. The 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:

    • Describe a desired future
    • Focus on ends, not means
    • Communicate promise
    • Are:
      • Concise; no unnecessary words
      • Compelling
      • Achievable
      • Inspirational
      • Memorable

    Sample IT vision statements:

    • To be a trusted advisor and partner in enabling business innovation and growth through an engaged IT workforce.
    • The IT organization will strive to become a world-class value center that is a catalyst for innovation.
    • IT is a cohesive, proactive, and disciplined team that delivers innovative technology solutions while demonstrating a strong customer-oriented mindset.
    • Develop and maintain IT and an IT support environment that is secure, stable, and reliable within a dynamic environment.

    Sample vision statements (cont'd)

    • Alignment: To ensure that the IT organizational model and all related operational services and duties are properly aligned with all underlying business goals and objectives. Alignment reflects an IT operation "that makes sense," considering the business served, its interests and its operational imperatives.
    • Engagement: To ensure that all IT vision stakeholders are fully engaged in technology-related planning and the operational parameters of the IT service portfolio. IT stakeholders include the IT performing organization (IT Department), company executives and end-users.
    • Best Practices: To ensure that IT operates in a standardized fashion, relying on practical management standards and strategies properly sized to technology needs and organizational capabilities.
    • Commitment to Customer Service: To ensure that IT services are provided in a timely, high-quality manner, designed to fill the operational needs of the front-line end-users, working within the boundaries established by business interests and technology best practices.

    Quoted From ITtoolkit, 2020

    Case Study

    Acme Corp. was able to construct its IT mission and vison statements by aligning to its corporate mission and vision.

    INDUSTRY: Professional Services
    COMPANY: This case study is based on a real company but was anonymized for use in this research.

    Business

    IT

    Mission

    Vision

    Mission

    Vision

    We help IT leaders achieve measurable results by systematically improving core IT processes, governance, and critical technology projects.

    Acme Corp. will grow to become the largest research firm across the industry by providing unprecedented value to our clients.

    IT provides innovative product solutions and leadership that drives growth and success.

    We will relentlessly drive value to our customers through unprecedented innovation.

    IT guiding principles set the boundaries for your strategy

    Strategic guiding principles advise the IT organization on the boundaries of the strategy.

    Guiding principles are a priori decisions that limit the scope of strategic thinking to what is acceptable organizationally, from budgetary, people, and partnership standpoints. Guiding principles can cover other dimensions, as well.

    Organizational stakeholders are more likely to follow IT principles when a rationale is provided.

    After defining the set of IT principles, ensure that they are all expanded upon with a rationale. The rationale ensures principles are more likely to be followed because they communicate why the principles are important and how they are to be used. Develop the rationale for each IT principle your organization has chosen.

    IT guiding principles = IT strategy boundaries

    Consider these four components when brainstorming guiding principles

    Breadth

    of the IT strategy can span across the eight perspectives: people, process, technology, data, process, sourcing, location, and timing.

    Defining which of the eight perspectives is in scope for the IT strategy is crucial to ensuring the IT strategy will be comprehensive, relevant, and actionable.

    Depth

    of coverage refers to the level of detail the IT strategy will go into for each perspective. Info-Tech recommends that depth should go to the initiative level (i.e. individual projects).

    Organizational coverage

    will determine which part of the organization the IT strategy will cover.

    Planning horizon

    of the IT strategy will dictate when the target state should be reached and the length of the roadmap.

    Consider these criteria when brainstorming guiding principle statements

    Approach focused IT principles are focused on the approach, i.e. how the organization is built, transformed, and operated, as opposed to what needs to be built, which is defined by both functional and non-functional requirements.
    Business relevant Create IT principles that are specific to the organization. Tie IT principles to the organization's priorities and strategic aspirations.
    Long lasting Build IT principles that will withstand the test of time.
    Prescriptive Inform and direct decision-making with IT principles that are actionable. Avoid truisms, general statements, and observations.
    Verifiable If compliance can't be verified, the principle is less likely to be followed.
    Easily digestible IT principles must be clearly understood by everyone in IT and by business stakeholders. IT principles aren't a secret manuscript of the IT team. IT principles should be succinct; wordy principles are hard to understand and remember.
    Followed

    Successful IT principles represent a collection of beliefs shared among enterprise stakeholders. IT principles must be continuously reinforced to all stakeholders to achieve and maintain buy-in.

    In organizations where formal policy enforcement works well, IT principles should be enforced through appropriate governance processes.

    Review ten universal IT principles to determine if your organization wishes to adopt them

    IT principle name

    IT principle statement

    1. Enterprise value focus We aim to provide maximum long-term benefits to the enterprise as a whole while optimizing total costs of ownership and risks.
    2. Fit for purpose We maintain capability levels and create solutions that are fit for purpose without over engineering them.
    3. Simplicity We choose the simplest solutions and aim to reduce operational complexity of the enterprise.
    4. Reuse > buy > build We maximize reuse of existing assets. If we can't reuse, we procure externally. As a last resort, we build custom solutions.
    5. Managed data We handle data creation, modification, and use enterprise-wide in compliance with our data governance policy.
    6. Controlled technical diversity We control the variety of technology platforms we use.
    7. Managed security We manage security enterprise-wide in compliance with our security governance policy.
    8. Compliance to laws and regulations We operate in compliance with all applicable laws and regulations.
    9. Innovation We seek innovative ways to use technology for business advantage.
    10. Customer centricity We deliver best experiences to our customers with our services and products.

    1.1.3 Elicit guiding principles

    1 hour

    Objective: Generate ideas for guiding principle statements with silent sticky note writing.

    1. Gather the IT strategy creation team and revisit your mission and vision statements.
    2. Ask the group to brainstorm answers individually, silently writing their ideas on separate sticky notes. Provide the brainstorming criteria from the previous slide to all team members. Allow the team to put items on separate notes that can later be shuffled and sorted as distinct thoughts.
    3. After a set amount of time, ask the members of the group to stick their notes to the whiteboard and quickly present them. Categorize all ideas into four major buckets: breadth, depth, organizational coverage, and planning horizon. Ideally, you want one guiding principle to describe each of the four components.
    4. If there are missing guiding principles in any category or anyone's items inspire others to write more, they can stick those up on the wall too, after everyone has presented.
    5. Discuss and finalize your IT guiding principles.
    6. Document your guiding principles in the IT Strategy Presentation Template in Section 1.

    Source: Hyper Island

    Download the ITRG IT Infrastructure Strategy and Roadmap Report Template and document your mission and vision statements in Section 1.

    Input

    • Four components for eliciting guiding principles
    • Mission and vision statements

    Output

    • IT guiding principles
    • IT strategy scope

    Materials

    • Sticky notes
    • Whiteboard
    • Paper
    • Collaboration/brain-storming tool (whiteboard, flip chart, digital equivalent)

    Participants

    • CIO
    • Senior IT Team

    Guiding principle examples

    • Alignment: Our IT decisions will align with [our organization's] strategic plan.
    • Resources: We will allocate cyber-infrastructure resources based on providing the greatest value and benefit for [the community].
    • User Focus: User needs will be a key component in all IT decisions.
    • Collaboration: We will work within and across organizational structures to meet strategic goals and identify opportunities for innovation and improvement.
    • Transparency: We will be transparent in our decision making and resource use.
    • Innovation: We will value innovative and creative thinking.
    • Data Stewardship: We will provide a secure but accessible data environment.
    • IT Knowledge and Skills: We will value technology skills development for the IT community.
    • Drive reduced costs and improved services
    • Deploy packaged apps – do not develop – retain business process knowledge expertise – reduce apps portfolio
    • Standardize/Consolidate infrastructure with key partners
    • Use what we sell, and help sell
    • Drive high-availability goals: No blunders
    • Ensure hardened security and disaster recovery
    • Broaden skills (hard and soft) across the workforce
    • Improve business alignment and IT governance

    Quoted From: Office of Information Technology, 2014; Future of CIO, 2013

    Case Study

    Acme Corp. elicited guiding principles that set the scope of its IT strategy for FY21.

    INDUSTRY: Professional Services
    COMPANY: Acme Corp.

    The following guiding principles define the values that drive IT's strategy in FY23 and provide the criteria for our 12-month planning horizon.

    • We will focus on big-ticket items during the next 12 months.
    • We will keep the budget within 5%+/- YOY.
    • We will insource over outsource.
    • We will develop a cloud-first technology stack.

    Finalize your IT strategy scope

    Your mission and vision statements and your guiding principles should be the first things you communicate on your IT strategy document.

    Why is this important?

    • Communicating these elements shows how IT supports the corporate direction.
    • The vision and mission statements will clearly articulate IT's aspirations and purpose.
    • The guiding principles will clearly articulate how IT plans to support the business strategically.
    • These elements set expectations with stakeholders for the rest of your strategy.

    Input information into the IT Strategy Presentation Template.

    an image showing the IT Strategy Scope.

    Summary of Accomplishment

    Established the scope of your IT strategy

    • Constructed the IT mission statement to communicate the IT organization's reason for being.
    • Constructed the IT vision statement to communicate the desired future state of the IT organization.
    • Elicited IT's guiding principles to communicate the overall scope and time horizon for the strategy.

    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

    Step 1.2

    Business Goal Alignment

    Activities

    1.2.1 Intake identification and analysis

    1.2.2 Survey results analysis

    1.2.3 Goal brainstorming

    1.2.4 Goal association and analysis

    This step requires the following inputs:

    • Last year's accomplished project list
    • Business unit input source list
    • Goal list
    • In-flight initiatives list

    This step involves the following participants:

    • Business leadership
    • Project Management Office
    • Service Desk
    • Business Relationship Management
    • Solution or Enterprise Architecture
    • Roadmap team

    Outcomes of this step

    • Intake analysis
    • Goal list
    • Initiative-to-goal map

    Identify who is expecting what from the infrastructure

    "Typically, IT thinks in an IT first, business second, way: 'I have a list of problems and if I solve them, the business will benefit.' This is the wrong way of thinking. The business needs to be thought of first, then IT."

    – Fred Chagnon, Infrastructure Director,
    Info-Tech Research Group

    Info-Tech Insight

    If you're not soliciting input from or delivering on the needs of the various departments in your company, then who is? Be explicit and track how you communicate with each individual unit within your company.

    Mature project portfolio management and enterprise architecture practices are no substitute for understanding your business clientele.

    It may not be a democracy, but listening to everyone's voice is an essential step toward generating a useful roadmap.

    Building good infrastructure requires an understanding of how it will be used. Explicit consultation with stakeholders maximizes a roadmap's usefulness and holds the enterprise accountable in future roadmap iterations as goals change.

    Who are the customers for infrastructure?

    Internal customer examples:

    • Network Operations manager
    • IT Systems manager
    • Webmaster
    • Security manager

    External customer examples:

    • Director of Sales
    • Operations manager
    • Applications manager
    • Clients
    • Partners and consultants
    • Regulators/government

    1.2.1 Intake identification and analysis

    1 hour

    The humble checklist is the single most effective tool to ensure we don't forget someone or something:

    1. Have everyone write down their top five completed projects from last year – one project per sticky note.
    2. Organize everyone's sticky notes on a whiteboard according to input source – did these projects come from the PMO? Directly from a BRM? Service request? VP or LoB management?
    3. Make a MECE list of these sources on the left-hand side of a whiteboard.
    4. On the right-hand side list all the departments or functional business units within the company.
    5. Draw lines from right to left indicating which business units use which input source to request work.
    6. Optional: Rate the efficacy of each input channel – what is the success rate of projects per channel in terms of time, budget, and functionality?

    Discussion:

    1. How clearly do projects and initiatives arrive at infrastructure to be acted on? Do they follow the predictable formal process with all the needed information or is it more ad hoc?
    2. Can we validate that business units are using the correct input channel to request the appropriate work? Does infrastructure have to spend more time validating the requests of any one channel?
    3. Can we identify business units that are underserved? How about overserved? Infrastructure initiatives tend to be near universal in effect – are we forgetting anyone?
    4. Are all these methods passive (order taking), or is there a process for infrastructure to suggest an initiative or project?

    Input

    • Last year's accomplished project list

    Output

    • Work requested workflow and map

    Materials

    • Sticky notes
    • Whiteboard & markers

    Participants

    • Roadmap team

    Case Study

    Building IT governance and digital infrastructure for tech-enabled student experiences

    INDUSTRY: Education
    COMPANY: Collegis Education

    Challenge

    In 2019, Saint Francis University decided to expand its online program offering to reach students outside of its market.

    It had to first transform its operations to deliver a high-quality, technology-enabled student experience on and off campus. The remote location of the campus posed power outages, Wi-Fi issues, and challenges in attracting and retaining the right staff to help the university achieve its goals.

    It began working with an IT consulting firm to build a long-term strategic roadmap.

    Solution

    The consultant designed a strategic multi-year roadmap for digital transformation that would prioritize developing infrastructure to immediately improve the student experience and ultimately enable the university to scale its online programs. The consultant worked with school leadership to establish a virtual CIO to oversee the IT department's strategy and operations. The virtual CIO quickly became a key advisor to the president and board, identifying gaps between technology initiatives and enrollment and revenue targets. St. Francis staff also transitioned to the consultant's technology team, allowing the university to alleviate its talent acquisition and retention challenges.

    Results

    • $200,000 in funds reallocated to help with upgrades due to streamlined technology infrastructure
    • Updated card access system for campus staff and students
    • Active directory implementation for a secure and strong authentication technology
    • An uninterruptible power supply (UPS) backup is installed to ensure power continues in the event of a power outage
    • Upgrade to a reliable, campus-wide Wi-Fi network
    • Behind-the-scenes upgrades like state-of-the-art data centers to stabilize aging technology for greater reliability

    Track your annual activity by business unit – not by input source

    A simple graph showing the breakdown of projects by business unit is an excellent visualization of who is getting the most from infrastructure services.

    Show everyone in the organization that the best way to get anything done is by availing themselves of the roadmap process.

    An image of two bar graphs, # of initiatives requested
by customer; # of initiatives proposed to customer.

    Enable technology staff to engage in business storytelling by documenting known goals in a framework

    Without a goal framework

    Technology-focused IT staff are notoriously disconnected from the business process and are therefore often unable to explain the outcomes of their projects in terms that are meaningful to the business.

    With a goal framework

    When business, IT, and infrastructure goals are aligned, the business story writes itself as you follow the path of cascading goals upward.

    Info-Tech Best Practice

    So many organizations we speak with don't have goals written down. This rarely means that the goals aren't known, rather that they're not clearly communicated.

    When goals aren't clear, personal agendas can take precedence. This is what often leads to the disconnect between what the business wants and what IT is delivering.

    1.2.2 Survey and results analysis

    1 hour

    Infrastructure succeeds by effectively scaling shared resources for the common good. Sometimes that is a matter of aggregating similarities, sometimes by recognizing where specialization is required.

    1. Have every business unit provide their top three to five current goals or objectives for their department. Emphasize that you are requesting their operational objectives, not just the ones they think IT may be able to help them with.
    2. Put each goal on a sticky note (optional: use a unique sticky note or marker color for each department) and place them on a whiteboard.
    3. Group the sticky notes according to common themes.
    4. Rank each grouping according to number of occurrences.

    Discussion:

    1. This is very democratic. Do certain departments' goals carry more weight more than others?
    2. What is the current business prioritization process? Do the results of our activity match with the current published output of this process?
    3. Consider each business goal in the context of infrastructure activity or technology feature or capability. As infrastructure is a lift function existing only to serve the business, it is important to understand our world in context.

    Examples: The VP of Operations is looking to reduce office rental costs over the next three years. The VP of Sales is focused on increasing the number of face-to-face customer interactions. Both can potentially be served by IT activities and technologies that increase mobility.

    Input

    • Business unit input source list

    Output

    • Prioritized list of business goals

    Materials

    • Sticky notes
    • Whiteboard & markers

    Participants

    • Roadmap team

    1.2.3 Goal brainstorming – Affinity diagramming exercise

    1 hour

    Clarify how well you understand what the business wants.

    1. Ask each participant to consider: "What are the top three priorities of the company [this period]?" They should consider not what they think the priorities should be, but their understanding of what business leadership's priorities actually are.
    2. Have each participant write down their three priorities on sticky notes – one per note.
    3. Select a moderator from the group – not the infrastructure leader or the CIO. The moderator will begin by placing (and explaining) their sticky notes on the whiteboard.
    4. Have each participant place and explain their sticky notes on the whiteboard.
    5. The moderator will assist each participant in grouping sticky notes together based on theme.
    6. Groups that become overly large may be broken into smaller, more precise themes.
    7. Once everyone has placed their sticky notes, and the groups have been arranged and rearranged, you should have a visual representation of infrastructure's understanding of the business' priorities.
    8. Let the infrastructure leader and/or CIO place their sticky notes last.

    Discussion:

    Is there a lot of agreement within the group? What does it mean if there are 10 or 15 groups with equal numbers of sticky notes? What does it mean if there are a few top groups and dozens of small outliers?

    How does the group's understanding compare with that of the Director and/or CIO?

    What mechanisms are in place for the business to communicate their goals to infrastructure? Are they effective? Does the team take the time to reimagine those goals and internalize them?

    What does it mean if infrastructure's understanding differs from the business?

    Input

    • Business unit input source list

    Output

    • Prioritized list of business goals

    Materials

    • Sticky notes
    • Whiteboard & markers

    Participants

    • Roadmap team

    Additional Activity

    Now that infrastructure has a consensus on what it thinks the business' goals are, suggest a meeting with leadership to validate this understanding. Once the first picture is drawn, a 30-minute meeting can help clear up any misconceptions.

    Build your own framework or start with these three root value drivers

    With a framework of cascading goals in place, a roadmap is a Rosetta Stone. Being able to map activities back to governance objectives allows you to demonstrate value regardless of the audience you are addressing.

    An image of the framework for developing a roadmap using three root value drivers.

    (Info-Tech, Build a Business-Aligned IT Strategy 2022)

    1.2.4 Goal association exercise and analysis

    1 hour

    Wherever possible use the language of your customers to avoid confusion, but at least ensure that everyone in infrastructure is using a common language.

    1. Take your business strategy or IT strategy or survey response (Activity 1.2.3) or Info-Tech's fundamental goals list (strategic agility, improved cash flow, innovate product, safety, standardize end-user experience) and write them across the top of a whiteboard.
    2. Have everyone write, on a sticky note, their current in-flight initiatives – one per sticky note.
    3. Have each participant then place each of their sticky notes on the whiteboard and draw a line from the initiative to the goal it supports.
    4. The rest of the group should challenge any relationships that seem unsupported or questionable.

    Discussion:

    1. How many goals are you supporting? Are there too many? Are you doing enough to support the right goals?
    2. Is there a shared understanding of the business goals among the infrastructure staff? Or, do questions about meaning keep coming up?
    3. Do you have initiatives that are difficult to express in terms of business goals? Do you have a lot of them or just a few?

    Input

    • Goal list
    • In-flight initiatives list

    Output

    • Initiatives-to-goals map

    Materials

    • Whiteboard & markers

    Participants

    • Roadmap team

    Summary of Accomplishment

    Review performance from last fiscal year.

    • Analyzed and communicated the benefits and value realized from IT's strategic initiatives in the past fiscal year.
    • Analyzed and prioritized diagnostic data insights to communicate IT success stories.
    • Elicited important retrospective information such as KPIs, financials, etc. to build IT's credibility as a strategic business partner.

    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

    Phase 2

    Envision Future and Analyze Constraints

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    1.1 Infrastructure strategy

    1.2 Goal alignment

    2.1 Define your future

    2.2 Conduct constraints analysis

    3.1 Drive business alignment

    3.2. Build the roadmap

    4.1 Identify the audience

    4.2 Process improvement

    and measurements

    This phase will walk you through the following activities:

    • Determine from a greenfield perspective what the future state looks like.
    • Do SWOT analysis on technology you may plan to use in the future.
    • Complete a time study.

    This phase involves the following participants:

    • Roadmap team

    Step 2.1

    Define the future state

    Activities

    2.1.1 Define your future infrastructure vision

    2.1.2 Document desired future state

    2.1.3 Develop a new technology identification process

    2.1.4 Conduct a SWOT analysis

    This step requires the following inputs:

    • Emerging technology interest

    This step involves the following participants:

    • Roadmap team
    • External SMEs

    Outcomes of this step

    • Technology discovery process
    • Technology assessment process
    • Future state vision document

    Future state discussion

    "Very few of us are lucky enough to be one of the first few employees in a new organization. Those of you who get to plan the infrastructure with a blank slate and can focus all of your efforts on doing things right the first time."

    BMC, 2018

    "A company's future state is ultimately defined as the greater vision for the business. It's where you want to be, your long-term goal in terms of the ever-changing state of technology and how that applies to your present-day business."
    "Without a definitive future state, a company will often find themselves lacking direction, making it harder to make pivotal decisions, causing misalignment amongst executives, and ultimately hindering the progression and growth of a company's mission."
    Source: Third Stage Consulting

    "When working with digital technologies, it is imperative to consider how such technologies can enhance the solution. The future state should communicate the vision of how digital technologies will enhance the solutions, deliver value, and enable further development toward even greater value creation."
    Source: F. Milani

    Info-Tech Insight

    Define your infrastructure roadmap as if you had a blank slate – no constraints, no technical debt, and no financial limitations. Imagine your future infrastructure and let that vision drive your roadmap.

    Expertise is not innate; it requires effort and research

    Evaluating new enterprise technology is a process of defining it, analyzing it, and sourcing it.

    • Understand what a technology is in order to have a common frame of reference for discussion. Just as important, understand what it is not.
    • Conduct an internal and external analysis of the technology including an adoption case study.
    • Provide an overview of the vendor landscape, identifying the leading players in the market and how they differentiate their offerings.

    This is not intended to be a thesis grade research project, nor an onerous duty. Most infrastructure practitioners came to the field because of an innate excitement about technology! Harness that excitement and give them four to eight hours to indulge themselves.

    An output of approximately four slides per technology candidate should be sufficient to decided if moving to PoC or pilot is warranted.

    Including this material in the roadmap helps you control the technology conversation with your audience.

    Info-Tech Best Practices

    Don't start from scratch. Recall the original sources from your technology watchlist. Leverage vendors and analyst firms (such as Info-Tech) to give the broad context, letting you focus instead on the specifics relevant to your business.

    Channel emerging technologies to ensure the rising tide floats all boats rather than capsizing your business

    Adopting the wrong new technology can be even more dangerous than failing to adopt any new technology.

    Implementing every new promising technology would cost prodigious amounts of money and time. Know the costs before choosing what to invest in.

    The risk of a new technology failing is acceptable. The risk of that failure disrupting adjacent core functions is unacceptable. Vet potential technologies to ensure they can be safely integrated.

    Best practices for new technologies are nonexistent, standards are in flux, and use cases are fuzzy. Be aware of the unforeseen that will negatively affect your chances of a successful implementation.

    "Like early pioneers crossing the American plains, first movers have to create their own wagon trails, but later movers can follow in the ruts."
    Harper Business, 2014

    Info-Tech Insight

    The right technology for someone else can easily be the wrong technology for your business.

    Even with a mature Enterprise Architecture practice, wrong technology bets can happen. Minimize the chance of this occurrence by making selection an infrastructure-wide activity. Leverage the practical knowledge of the day-to-day operators.

    First Mover

    47% failure rate

    Fast Follower

    8% failure rate

    2.1.1 Create your future infrastructure vision

    1 hour

    Objective: Help teams define their future infrastructure state (assuming zero constraints or limitations).

    1. Ask each participant to ponder the question: "How would the infrastructure look if there were no limitations?" They should consider all aspects of their infrastructure but keep in mind the infrastructure vision and mission statements from phase one, as well as the business goals.
    2. Have each participant write down their ideas on sticky notes – one per note.
    3. Select a moderator and a scribe from the group – not the infrastructure leader or the CIO. The moderator will begin by placing (and explaining) their sticky notes on the whiteboard. The scribe will summarize the results in short statements at the end.
    4. Have each participant place and explain their sticky notes on the whiteboard.
    5. The moderator will assist each participant in grouping sticky notes together based on theme.
    6. Once everyone has placed their sticky notes and groups have been arranged and rearranged, you should have a visual representation of infrastructure's understanding of the business' priorities.
    7. Let the infrastructure leader and/or CIO place their sticky notes last.

    Discussion:

    1. Assume a blank slate as a starting point. No technical debt or financial constraints; nothing holding you back.
    2. Can SaaS, PaaS, or other cloud-based offerings play a role in this future utopia?
    3. Do vendors play a larger or smaller role in your future infrastructure vision?

    Download the IT Infrastructure Strategy and Roadmap Report Template and document your mission and vision statements in Section 1.

    Input

    • Thoughts and ideas about how the future infrastructure should look.

    Output

    • Future state vision

    Materials

    • Sticky notes
    • Whiteboard & markers

    Participants

    • Roadmap team

    2.1.1 Document your future state vision (cont'd)

    Objective: Help teams define their future infrastructure state (assuming zero constraints or limitations).

    1 hour

    Steps:

    1. The scribe will take the groups of suggestions and summarize them in a statement or two, briefly describing the infrastructure in that group.
    2. The statements should be recorded on Tab 2 of the Infrastructure Strategy and Roadmap Tool.

    Discussion:

    • Should the points be listed in any specific order?
    • Include all suggestions in the summary. Remember this is a blank slate with no constraints, and no idea is higher or lower in weight at this stage.
    Infrastructure Future State Vision
    Item Focus Area Future Vision
    1 Email Residing on Microsoft 365
    2 Servers Hosted in cloud - nothing on prem.
    3 Endpoints virtual desktops on Microsoft Azure
    4 Endpoint hardware Chromebooks
    5 Network internet only
    6 Backups cloud based but stored in multiple cloud services
    7

    Download Info-Tech's Infrastructure Strategy and Roadmap Tool and document your future state vision in the Infrastructure Future State tab.

    Input

    • Thoughts and ideas about how the future infrastructure should look.

    Output

    • Future state vision

    Materials

    • Sticky notes
    • Whiteboard & markers

    Participants

    • Roadmap team

    2.1.2 Identification and association exercise

    1 hour

    Formalize what is likely an ad hoc process.

    1. Brainstorm with the group a list of external sources they are currently using to stay abreast of the market.
    2. Organize this list on the left-hand side of a whiteboard, in vendor and vendor-neutral groups.
      1. For each item in the list ask a series of questions:
      2. Is this a push or pull source?
      3. Is this source suited to individual or group consumption?
      4. What is the frequency of this source?
    3. What is the cost of this source to the company?
    4. On the right-hand side of the whiteboard brainstorm a list of internal mechanisms for sharing new technology information. Ask about the audience, distribution mode, and frequency for each of those mechanisms.
    5. Map which of the external sources make it over to internal distribution.

    Discussion:

    1. Are we getting the most value out of our high-cost conferences? Does that information make it from the attendees to the rest of the team?
    2. Do we share information only within our domains? Or across the whole infrastructure practice?
    3. Do we have sufficient diversity of sources? Are we in danger of believing one vendor's particular market interpretation?
    4. How do we select new technologies to explore further? Make it fun – upvotes, for example.

    Input

    • Team knowledge
    • Conference notes
    • Expense reports

    Output

    • Internal socialization process
    • Tech briefings & repository

    Materials

    • Whiteboard & markers

    Participants

    • Roadmap team

    Info-Tech Best Practices

    It is impractical for everyone to present their tech briefing at the monthly meeting. But you want to avoid a one-to-many exercise. Keep the presenter a secret until called on. Those who do not present live can still contribute their material to the technology watchlist database.

    Analyze new technologies for your future state

    Four to eight hours of research per technology can uncover a wealth of relevant information and prepare the infrastructure team for a robust discussion. Key research elements include:

    • Précis: A single page or slide that describes the technology, outlines some of the vendors, and explores the value proposition.
    • SWOT Analysis:
      • Strengths and weaknesses: What does the technology inherently do well (e.g. lots of features) and what does it do poorly (e.g. steep learning curve)?
      • Opportunities and threats: What capabilities can the technology enable (e.g. build PCs faster, remote sensing)? Why would we not want to exploit this technology (e.g. market volatility, M&As)

    a series of four screenshots from the IT Infrastructure Strategy and Roadmap Report Template

    Download the IT Infrastructure Strategy and Roadmap Report Template slides 21, 22, 23 for sample output.

    Position infrastructure as the go-to source for information about new technology

    One way or another, tech always seems to finds its way into infrastructure's lap. Better to stay in front and act as stewards rather than cleanup crew.

    Beware airline magazine syndrome!

    Symptoms

    Pathology
    • Leadership speaking in tech buzzwords
    • Urgent meetings to discuss vaguely defined topics
    • Fervent exclamations of "I don't care how – just get it done!"
    • Management showing up on at your doorstep needing help with their new toy

    Outbreaks tend to occur in close proximity to

    • Industry trade shows
    • Excessive executive travel
    • Vendor BRM luncheons or retreats with leadership
    • Executive golf outings with old college roommates

    Effective treatment options

    1. Targeted regular communication with a technology portfolio analysis customized to the specific goals of the business.
    2. Ongoing PoC and piloting efforts with detailed results reporting.

    While no permanent cure exists, regular treatment makes this chronic syndrome manageable.

    Keep your roadmap horizon in mind

    Technology doesn't have to be bleeding edge. New-to-you can have plenty of value.

    You want to present a curated landscape of technologies, demonstrating that you are actively maintaining expertise in your chosen field.

    Most enterprise IT shops buy rather than develop their technology, which means they want to focus effort on what is market available. The outcome is that infrastructure sponsors and delivers new technologies whose capabilities and features will help the business achieve its goals on this roadmap.

    If you want to think more like a business disruptor or innovator, we suggest working through the blueprint Exploit Disruptive Infrastructure Technology.
    Explore technology five to ten years into the future!

    a quadrant analysis comparing innovation and transformation, as well as two images from Exploit Disruptive Infrastructure Technology.

    Info-Tech Insight

    The ROI of any individual effort is difficult to justify – in aggregate, however, the enterprise always wins!
    Money spent on Google Glass in 2013 seemed like vanity. Certainly, this wasn't enterprise-ready technology. But those early experiences positioned some visionary firms to quickly take advantage of augmented reality in 2018. Creative research tends to pay off in unexpected and unpredictable ways.
    .

    2.1.3 Working session, presentation, and feedback

    1 hour

    Complete a SWOT analysis with future state technology.

    The best research hasn't been done in isolation since the days of da Vinci.

    1. Divide the participants into small groups of at least four people.
    2. Further split those groups into two teams – the red team and the white team.
    3. Assign a technology candidate from the last exercise to each group. Ideally the group should have some initial familiarity with the technology and/or space.
    4. The red team from each group will focus on the weaknesses and threats of the technology. The white team will focus on the strengths and opportunities of the technology.
    5. Set a timer and spend the next 30-40 minutes completing the SWOT analysis.
    6. Have each group present their analysis to the larger team. Encourage conversation and debate. Capture and refine the understanding of the analysis.
    7. Reset with the next technology candidate. Have the participants switch teams within their groups.
    8. Continue until you've exhausted your technology candidates.

    Discussion:

    1. Does working in a group make for better research? Why?
    2. Do you need specific expertise in order to evaluate a technology? Is an outsider (non-expert) view sometimes valuable?
    3. Is it easier to think of the positive or the negative qualities of a technology? What about the internal or external implications?

    Input

    • Technology candidates

    Output

    • Technology analysis including SWOT

    Materials

    • Projector
    • Templates
    • Laptops & internet

    Participants

    • Roadmap team

    Step 2.2

    Constraints analysis

    Activities

    2.2.1 Historical spend analysis

    2.2.2 Conduct a time study

    2.2.3 Identify roadblocks

    This step requires the following inputs:

    • Historical spend and staff numbers
    • Organizational design identification and thought experiment
    • Time study
    • Roadblock brainstorming session
    • Prioritization exercise

    This step involves the following participants:

    • Financial leader
    • HR Leader
    • Roadmap team

    Outcomes of this step

    • OpEx, CapEx, and staffing trends
    • Domain time study
    • Prioritized roadblock list

    2.2.1 Historical spend analysis

    "A Budget is telling your money where to go, instead of wondering where it went."
    -David Ramsay

    "Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are"
    -James Frick, Due.com

    Annual IT budgeting aligns with business goals
    a circle showing 68%, broken down into 50% and 18%

    50% of businesses surveyed see that improvements are necessary for IT budgets to align to business goals, while 18% feel they require significant improvements to align to business goals
    Source: ITRG Diagnostics 2022

    Challenges in IT spend visibility

    68%

    Visibility of all spend data for on-prem, SaaS and cloud environments
    Source: Flexera

    The challenges that keep IT leaders up at night

    47%

    Lack of visibility in resource usage and cost
    Source: BMC, 2021

    2.2.1 Build a picture of your financial spending and staffing trends

    Follow the steps below to generate a visualization so you can start the conversation:

    1 hour

    1. Open the Info-Tech Infrastructure Roadmap Financial Spend Analysis Tool.
    2. The Instructions tab will provide guidance, or you can follow the instructions below.
    3. Insert values into the appropriate uncolored blocks in the first 4 rows of the Spend Record Entry tab to reflect the amount spent on IT OpEx, IT CapEx, or staff numbers for the present year (budgeted) as well as the previous five years.
    4. Data input populates cells in subsequent rows to quickly reveal spending ratios.

    an image of the timeline table from the Infrastructure Roadmap Financial Analysis Tool

    Download the Infrastructure Roadmap Financial Analysis Tool
    ( additional Deep Dive available if required)

    Input

    • Historical spend and staff numbers

    Output

    • OpEx, CapEx, and staffing trends for your organization

    Materials

    • Info-Tech's Infrastructure Roadmap Financial Spend Analysis Tool

    Participants

    • Infrastructure leader
    • Financial leader
    • HR leader

    2.2.1 Build a picture of your financial spending and staffing trends (cont'd)

    Continue with the steps below to generate a visualization so you can start the conversation.

    1 hour

    1. Select tab 3 (Results) to reveal a graphical analysis of your data.
    2. Trends are shown in graphs for OpEx, CapEx, and staffing levels as well as comparative graphs to show broader trends between multiple spend and staffing areas.
    3. Some observations worth noting may include the following:
      • Is OpEx spending increasing over time or decreasing?
      • Is CapEx increasing or decreasing?
      • Are OpEx and CapEx moving in the same directions?
      • Are IT staff to total staff ratios increasing or decreasing?
      • Trends will continue in the same direction unless changes are made.

    Download the Infrastructure Roadmap Financial Analysis Tool
    ( additional Deep Dive available if required)

    Input

    • Historical spend and staff numbers

    Output

    • OpEx, CapEx, and staffing trends for your organization

    Materials

    • Info-Tech's Infrastructure Roadmap Financial Spend Analysis Tool

    Participants

    • Infrastructure leader
    • Financial leader
    • HR leader

    Consider perceptions held by the enterprise when dividing infrastructure into domains

    2.2.2 Conduct a time study

    Internal divisions that seem important to infrastructure may have little or even negative value when it comes to users accessing their services.

    Domains are the logical divisions of work within an infrastructure practice. Historically, the organization was based around physical assets: servers, storage, networking, and end-user devices. Staff had skills they applied according to specific best practices using physical objects that provided functionality (computing power, persistence, connectivity, and interface).

    Modern enterprises may find it more effective to divide according to activity (analytics, programming, operations, and security) or function (customer relations, learning platform, content management, and core IT). As a rule, look to your organizational chart; managers responsible for buying, building, deploying, or supporting technologies should each be responsible for their own domain.

    Regardless of structure, poor organization leads to silos of marginally interoperable efforts working against each other, without focus on a common goal. Clearly defined domains ensure responsibility and allow for rapid, accurate, and confident decision making.

    • Server
    • Network
    • Storage
    • End User
    • DevOps
    • Analytics
    • Core IT
    • Security

    Info-Tech Insight

    The medium is the message. Do stakeholders talk about switches or storage or services? Organizing infrastructure to match its external perception can increase communication effectiveness and improve alignment.

    Case Study

    IT infrastructure that makes employees happier

    INDUSTRY: Services
    SOURCE: Network Doctor

    Challenge

    Atlas Electric's IT infrastructure was very old and urgently needed to be refreshed. Its existing server hardware was about nine years old and was becoming unstable. The server was running Windows 2008 R2 server operating systems that was no longer supported by Microsoft; security updates and patches were no longer available. They also experienced slowdowns on many older PCs.

    Recommendations for an upgrade were not approved due to budgetary constraints. Recommendations for upgrading to virtual servers were approved following a harmful phishing attack.

    Solution

    The following improvements to their infrastructure were implemented.

    • Installing a new physical host server running VMWare ESXi virtualization software and hosting four virtual servers.
    • Migration of data and applications to new virtual servers.
    • Upgrading networking equipment and deploying new relays, switches, battery backups, and network management.
    • New server racks to host new hardware.

    Results

    Virtualization, consolidating servers, and desktops have made assets more flexible and simpler to manage.

    Improved levels of efficiency, reliability, and productivity.

    Enhanced security level.

    An upgraded backup and disaster recovery system has improved risk management.

    Optimize where you spend your time by doing a time study

    Infrastructure activity is limited generally by only two variables: money and time. Money is in the hands of the CFO, which leaves us a single variable to optimize.

    Not all time is spent equally, nor is it equally valuable. Analysis lets us communicate with others and gives us a shared framework to decide where our priorities lie.

    There are lots of frameworks to help categorize our activities. Stephen Covey (Seven Habits of Highly Effective People) describes a four-quadrant system along the axes of importance and urgency. Gene Kim, through his character Erik in The Phoenix Project,speaks instead of business projects, internal IT projects, changes, and unplanned work.

    We propose a similar four-category system.

    Project Maintenance

    Administrative

    Reactive

    Planned activity spent pursuing a business objective

    Planned activity spent on the upkeep of existing IT systems

    Planned activity required as a condition of employment

    Unplanned activity requiring immediate response

    This is why we are valuable to our company

    We have it in our power to work to reduce these three in order to maximize our time available for projects

    Survey and analysis

    Perform a quick time study.

    Verifiable data sources are always preferred but large groups can hold each other's inherent biases in check to get a reasonable estimate.

    1 hour

    1. Organize the participants into the domain groups established earlier.
    2. On an index card have each participant independently write down the percentage of time they think their entire domain (not themselves personally) spends during the average month, quarter, or year on:
      1. Admin
      2. Reactive work
      3. Maintenance
    3. Draw a matrix on the whiteboard; collect the index cards and transcribe the results from participants into the matrix.
    4. Add up the three reported time estimates and subtract from 100 – the result is the percentage of time available for/spent on project work.

    Discussion

    1. Certain domains should have higher percentages of reactive work (think Service Desk and Network Operations Center) – can we shift work around to optimize resources?
    2. Why is reactive work the least desirable type? Could we reduce our reactive work by increasing our maintenance work?
    3. From a planning perspective, what are the implications of only having x% of time available for project work?
    4. Does it feel like backing into the project work from adding the other three together provides a reasonable assessment?

    Input

    • Domain groups

    Output

    • Time study

    Materials

    • Whiteboard & markers
    • Index cards

    Participants

    • Roadmap team

    Quickly and easily evaluate all your infrastructure

    Strategic Infrastructure Roadmap Tool, Tab 2, Capacity Analysis

    In order to quickly and easily build some visualizations for the eventual final report, Info-Tech has developed the Strategic Infrastructure Roadmap Tool.

    • Up to five infrastructure domains are supported.
      • For practices that cannot be reasonably collapsed into five domains, multiple copies of the tool can be used and manually stitched together.
    • The tool can be used in either an absolute (total number) or relative mode (percentage of available).
    • By design we specifically don't ask for a project work figure but rather calculate it based on other values.
    • For everything but miscellaneous duties, hard data sources can (and where appropriate should) be leveraged.
      • Reactive work – service desk tool
      • Project work – project management tool
      • Maintenance work – logs or ITSM tool
    • Individual domains' values are calculated, as well as the overall breakdown for the infrastructure practice.
    • Even these rough estimates will be useful during the planning steps throughout the rest of the roadmap process.

    an image of the source capacity analysis page from tab 2 of the Strategic Infrastructure Roadmap Tool

    Please note that this tool requires Microsoft's Power Pivot add-in to be installed if you are using Excel 2010 or 2013. The scatter plot labels on tabs 5 and 8 may not function correctly in Excel 2010.

    Build your roadmap from both the top and the bottom for best results

    Strong IT strategy favors top-down: activities enabling clearly dictated goals. The bottom-up approach aggregates ongoing activities into goals.

    Systematic approach

    External stakeholders prioritize a list of goals requiring IT initiatives to achieve.

    Roadblocks:

    • Multitudes of goals easily overwhelm scant IT resources.
    • Unglamorous yet vital maintenance activities get overlooked.
    • Goals are set without awareness of IT capacity or capabilities.

    Organic approach

    Practitioners aggregate initiatives into logical groups and seek to align them to one or more business goals.

    Roadblocks:

    • Pet initiatives can be perpetuated based on cult of personality rather than alignment to business goals.
    • Funding requests can fall flat when competing against other business units for executive support.

    A successful roadmap respects both approaches.

    an image of two arrows, intersecting with the words Infrastructure Roadmap with the top arrow labeled Systematic, and the bottom arrow being labeled Organic.

    Info-Tech Insight

    Perfection is anathema to practicality. Draw the first picture and not only expect but welcome conflicting feedback! Socialize it and drive the conversation forward to a consensus.

    2.2.3 Brainstorming – Affinity diagramming

    Identify the systemic roadblocks to executing infrastructure projects

    1 hour

    Affinity diagramming is a form of structured brainstorming that works well with larger groups and provokes discussion.

    1. Have each participant write down their top five impediments to executing their projects from last year – one roadblock per sticky note.
    2. Once everyone has written their top five, select a moderator from the group. The moderator will begin by placing (and explaining) their five sticky notes on the whiteboard.
    3. Have each participant then place and explain their sticky notes on the whiteboard.
    4. The moderator will assist participants in grouping sticky notes together based on theme.
    5. Groups that have become overly large may be broken into smaller, more precise themes.
    6. Once everyone has placed their sticky notes, you should be able to visually identify the greatest or most common roadblocks the group perceives.

    Discussion

    Categorize each roadblock identified as either internal or external to infrastructure's control.

    Attempt to understand the root cause of each roadblock. What would you need to ask for in order to remove the roadblock?

    Additional Research

    Also called the KJ Method (after its inventor, Jiro Kawakita, a 1960s Japanese anthropologist), this activity helps organize large amounts of data into groupings based on natural relationships while reducing many social biases.

    Input

    • Last years initiatives and their roadblocks

    Output

    • List of refined Roadblocks

    Materials

    • Sticky notes
    • Whiteboard & markers

    Participants

    • Roadmap team

    2.2.4 Prioritization exercise – Card sorting

    Choose your priorities wisely.

    Which roadblocks do you need to work on? How do you establish a group sense of these priorities? This exercise helps establish priorities while reducing individual bias.

    1 hour

    1. Distribute index cards that have been prepopulated with the roadblocks identified in the previous activity – one full set of cards to each participant.
    2. Have each participant sort their set-in order of perceived priority, highest on top.
    3. Where n=number of cards in the stack, take the n-3 lowest priority cards and put a tick mark in the upper-right-hand corner. Pass these cards to the person on the left, who should incorporate them into their pile (if you start with eight cards you're ticking and passing five cards). Variation: On the first pass, allow everyone to take the most important and least important cards, write "0th" and "NIL" on them, respectively, and set them aside.
    4. Repeat steps 2 and 3 for a total of n times. Treat duplicates as a single card in your hand.
    5. After the final pass, ask each participant to write the priority in the upper-left-hand corner of their top three cards.
    6. Collect all the cards, group by roadblock, count the number of ticks, and take note of the final priority.

    Discussion

    Total the number of passes (ticks) for each roadblock. A large number indicates a notionally low priority. No passes indicates a high priority.

    Are the internal or external roadblocks of highest priority? Were there similarities among participants' 0th and NILs compared to each other or to the final results?

    Input

    • Roadblock list

    Output

    • Prioritized roadblocks

    Materials

    • Index cards

    Participants

    • Roadmap team

    Summary of Accomplishment

    Review performance from last fiscal year

    • Analyzed and communicated the benefits and value realized from IT's strategic initiatives in the past fiscal year.
    • Analyzed and prioritized diagnostic data insights to communicate IT success stories.
    • Elicited important retrospective information such as KPIs, financials, etc. to build IT's credibility as a strategic business partner.

    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

    Phase 3

    Align and Build the Roadmap

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    1.1 Infrastructure strategy

    1.2 Goal alignment

    2.1 Define your future

    2.2 Conduct constraints analysis

    3.1 Drive business alignment

    3.2. Build the roadmap

    4.1 Identify the audience

    4.2 Process improvement

    and measurements

    This phase will walk you through the following activities:

    • Elicit business context from the CIO & IT team
    • Identify key initiatives that support the business
    • Identify key initiatives that enable IT excellence
    • Identify initiatives that drive technology innovation
    • Build initiative profiles
    • Construct your strategy roadmap

    This phase involves the following participants:

    • Roadmap Team

    Step 3.1

    Drive business alignment

    Activities

    3.1.1 Develop a risk framework

    3.1.2 Evaluate technical debt

    This step requires the following inputs:

    • Intake identification and analysis
    • Survey results analysis
    • Goal brainstorming
    • Goal association and analysis

    This step involves the following participants:

    • Business leadership
    • Project Management Office
    • Service Desk
    • Business Relationship Management
    • Solution or Enterprise Architecture
    • Roadmap team

    Outcomes of this step

    • Intake analysis
    • Goal list
    • Initiative-to-goal map

    Speak for those with no voice – regularly review your existing portfolio of IT assets and services

    A chain is only as strong as its weakest link; while you'll receive no accolades for keeping the lights on, you'll certainly hear about it if you don't!

    Time has been a traditional method for assessing the fitness of infrastructure assets – servers are replaced every five years, core switches every seven, laptops and desktops every three. While quick, this framework of assessment is overly simplistic for most modern organizations.

    Building one that is instead based on the likelihood of asset failure plotted against the business impact of that failure is not overly burdensome and yields more practical results. Infrastructure focuses on its strength (assessing IT risk) and validates an understanding with the business regarding the criticality of the service(s) enabled by any given asset.

    Rather than fight on every asset individually, agree on a framework with the business that enables data-driven decision making.

    IT Risk Factors
    Age, Reliability, Serviceability, Conformity, Skill Set

    Business Risk Factors
    Suitability, Capacity, Safety, Criticality

    Info-Tech Insight

    Infrastructure in a cloud-enabled world: As infrastructure operations evolve it is important to keep current with the definition of an asset. Software platforms such as hypervisors and server OS are just as much an asset under the care and control of infrastructure as are cloud services, managed services from third-party providers, and traditional racks and switches.

    3.1.1 Develop a risk framework – Classification exercise

    While it's not necessary for each infrastructure domain to view IT risk identically, any differences should be intensely scrutinized.

    1 hour

    1. Divide the whiteboard along the axes of IT Risk and
      Business Risk (criticality) into quadrants:
      1. High IT Risk & High Biz Risk (upper right)
      2. Low IT Risk & Low Biz Risk (bottom left)
      3. Low IT Risk & High Biz Risk (bottom right)
      4. High IT Risk & Low Biz Risk (upper left)
    2. Have each participant write the names of two or three infrastructure assets or services they are responsible or accountable for – one name per sticky note.
    3. Have each participant come one-at-a-time and place their sticky notes in one quadrant.
    4. As each additional sticky note is placed, verify with the group that the relative positioning of the others is still accurate.

    Discussion:

    1. Most assets should end up in the lower-right quadrant, indicating that IT has lowered the risk of failure commensurate to the business consequences of a failure. What does this imply about assets in the other three quadrants?
    2. Infrastructure is foundational; do we properly document and communicate all dependencies for business-critical services?
    3. What actions can infrastructure take to adjust the risk profile of any given asset?

    Input

    • List of infrastructure assets

    Output

    • Notional risk analysis

    Materials

    • Whiteboard & markers
    • Sticky notes

    Participants

    • Roadmap team

    3.1.2 Brainstorming and prioritization exercise

    Identify the key elements that make up risk in order to refine your framework.

    A shared notional understanding is good, but in order to bring the business onside a documented defensible framework is better.

    1 hour

    1. Brainstorm (possibly using the affinity diagramming technique) the component elements of IT risk.
    2. Ensure you have a non-overlapping set of risk elements. Ensure that all the participants are comfortable with the definitions of each element. Write them on a whiteboard.
    3. Give each participant an equal number (three to five) of voting dots.
    4. As a group have the participants go the whiteboard and use their dots to cast their votes for what they consider to be the most important risk element(s). Participants are free to place any number of their dots on a single element.
    5. Based on the votes cast select a reasonable number of elements with which to proceed.
    6. For each element selected, brainstorm up to six tiers of the risk scale. You can use numbers or words, whichever is most compelling.
      • E.g. Reliability: no failures, >1 incident per year, >1 incident per quarter, >1 incident per month, frequent issues, unreliable.
    7. Repeat the above except with the components of business risk. Alternately, rely on existing business risk documentation, possibly from a disaster recovery or business continuity plan.

    Discussion
    How difficult was it to agree on the definitions of the IT risk elements? What about selecting the scale? What was the voting distribution like? Were there tiers of popular elements or did most of the dots end up on a limited number of elements? What are the implications of having more elements in the analysis?

    Input

    • Notional risk analysis

    Output

    • Risk elements
    • Scale dimensions

    Materials

    • Whiteboard & markers
    • Voting dots

    Participants

    • Roadmap team

    3.1.3 Forced ranking exercise

    Alternate: Identify the key elements that make up risk in order to refine your framework

    A shared notional understanding is good, but in order to bring the business onside a documented defensible framework is better.

    1 hour

    1. Brainstorm (possibly using the affinity diagramming technique) the component elements of IT risk.
    2. Ensure you have a non-overlapping set of risk elements. Ensure that all the participants are comfortable with the definitions of each element. Write them on a whiteboard.
    3. Distribute index cards (one per participant) with the risk elements written down one side.
    4. Ask the participants to rank the elements in order of importance, with 1 being the most important.
    5. Collect the cards and write the ranking results on the whiteboard.
    6. Look for elements with high variability. Also look for the distribution of 1, 2, and 3 ranks.
    7. Based on the results select a reasonable number of elements with which to proceed.
    8. Follow the rest of the procedure from the previous activity.

    Discussion:

    What was the total number of elements required in order to contain the full set of every participant's first-, second-, and third-ranked risks? Does this seem a reasonable number?

    Why did some elements contain both the lowest and highest rankings? Was one (or more) participant thinking consistently different from the rest of the group? Are they seeing something the rest of the group is overlooking?

    This technique automatically puts the focus on a smaller number of elements – is this effective? Or is it overly simplistic and reductionist?

    Input

    • Notional risk analysis

    Output

    • Risk elements

    Materials

    • Whiteboard & markers
    • Index cards

    Participants

    • Roadmap team

    3.1.4 Consensus weighting

    Use your previous notional assessment to inform your risk weightings:

    1 hour

    1. Distribute index cards that have been prepopulated with the risk elements from the previous activity.
    2. Have the participants independently assign a weighting to each element. The assigned weights must add up to 100.
    3. Collect the cards and transcribe the results into a matrix on the whiteboard.
    4. Look for elements with high variability in the responses.
    5. Discuss and come to a consensus figure for each element's weighting.
    6. Select a variety of assets and services from the notional assessment exercise. Ensure that you have representation from all four quadrants.
    7. Using your newly defined risk elements and associated scales, evaluate as a group the values you'd suggest for each asset. Aim for a plurality of opinion rather than full consensus.
    8. Use Info-Tech's Strategic Infrastructure Roadmap Tool to document the elements, weightings, scales, and asset analysis.
    9. Compare the output generated by the tool (Tab 4) with the initial notional assessment.

    Discussion:

    How much framework is too much? Complexity and granularity do not guarantee accuracy. What is the right balance between effort and result?

    Does your granular assessment match your notional assessment? Why or why not? Do you need to go back and change weightings? Or reduce complexity?

    Is this a more reasonable and valuable way of periodically evaluating your infrastructure?

    Input

    • Notional risk analysis

    Output

    • Weighted risk framework

    Materials

    • Whiteboard & markers
    • Index cards
    • Strategic Infrastructure Roadmap Tool

    Participants

    • Roadmap team

    3.1.5 Platform assessment set-up

    Hard work up front allows for year-over-year comparisons

    The value of a risk framework is that once the heavy lifting work of building it is done, the analysis and assessment can proceed very quickly. Once built, the framework can be tweaked as necessary, rather than recreated every year.

    • Open Info-Tech's Strategic Infrastructure Roadmap Tool, Tab 3.
    • Up to eight elements each of IT and business risk can be captured.
      • IT risk elements of end-of-life and dependencies are mandatory and do not count against the eight customizable elements.
    • Every element can have up to six scale descriptors. Populate them from left to right in increasing magnitude of risk.
      • Scale descriptors must be input as string values and not numeric.
    • Each element's scale can be customized from linear to a risk-adverse or risk-seeking curve. We recommend linear.

    an image of the Platform Assessment Setup Page from Info-Tech's Strategic Infrastructure Roadmap Tool,

    IT platform assessment

    Quickly and easily evaluate all your infrastructure.

    Once configured, individual domain teams can spend surprisingly little time answering reasonably simple questions to assess their assets. The common framework lets results be compared between teams and produces a valuable visualization to communication with the business.

    • Open the Strategic Infrastructure Roadmap Tool, Tab 4.
    • The tool has been tested successfully with up to 2,000 asset items. Don't necessarily list every asset; rather, think of the logical groups of assets you'd cycle in or out of your environment.
    • Each asset must be associated with one and only one infrastructure domain and have a defined End of Service Life date.
    • With extreme numbers of assets an additional filter can be useful – the Grouping field allows you to set any number of additional tags to make sorting and filtering easier.
    • Drop-down menus for each risk element are prepopulated with the scale descriptors from Tab 3. Unused elements are greyed out.
    • Each asset can be deemed dependent on up to four additional assets or services. Use this to highlight obscure or undervalued relationships between assets. It is generally not useful to be reminded that everything relies on Cat 6 cabling.

    A series of screenshots from the IT Platform Assessment.

    Prioritized upgrades

    Validate and tweak your framework with the business

    Once the grunt work of inputting all the assets and the associated risk data has been completed, you can tweak the risk profile and sort the data to whatever the business may require.

    • Open Info-Tech's Strategic Infrastructure Roadmap Tool, Tab 5.
    • IT platforms in the upper-right quadrant have an abundance of IT risk and are critical to the business.
    • The visualization can be sorted by selecting the slicers on the left. Sort by:
      • Infrastructure domain
      • Customized grouping tag
      • Top overall risk platforms
    • With extreme numbers of assets an additional filter can be useful. The Grouping field allows you to set any number of additional tags to make sorting and filtering easier.
    • Risk weightings can be individually adjusted to reflect changing business priorities or shared infrastructure understanding of predictive power.
      • In order to make year-over-year comparisons valuable it is recommended that changing IT risk elements should be avoided unless absolutely necessary.

    An image of a scatter plot graph titled Prioritized Upgrades.

    Step 3.2

    Build the roadmap

    Activities

    3.2.1 Build templates and visualize

    3.2.2 Generate new initiatives

    3.2.3 Repatriate shadow IT initiatives

    3.2.4 Finalize initiative candidates

    This step requires the following inputs:

    • Develop an initiative template
    • Restate the existing initiatives with the template
    • Visualize the existing initiatives
    • Brainstorm new initiatives
    • Initiative ranking
    • Solicit, evaluate, and refine shadow IT initiatives
    • Resource estimation

    This step involves the following participants:

    • Roadmap team

    Outcomes of this step

    • Initiative communication template
    • Roadmap visualization diagram

    Tell them what they really need to know

    Templates transform many disparate sources of data into easy-to-produce, easy-to-consume, business-ready documents.

    Develop a high-level document that travels with the initiative from inception through executive inquiry and project management, and finally to execution. Understand an initiative's key elements that both IT and the business need defined and that are relatively static over its lifecycle.

    Initiatives are the waypoints along a roadmap leading to the eventual destination, each bringing you one step closer. Like steps, initiatives need to be discrete: able to be conceptualized and discussed as a single largely independent item. Each initiative must have two characteristics:

    • Specific outcome: Describe an explicit change in the people, processes, or technology of the enterprise.
    • Target end date: When the described outcome will be in effect.

    "Learn a new skill"– not an effective initiative statement.

    "Be proficient in the new skill by the end of the year" – better.

    "Use the new skill to complete a project and present it at a conference by Dec 15" – best!

    Info-Tech Insight

    Bundle your initiatives for clarity and manageability.
    Ruthlessly evaluate if an initiative should stand alone or can be rolled up with another. Fewer initiatives increases focus and alignment, allowing for better communication.

    3.2.1 Develop impactful templates to sell your initiative upstream

    Step 1: Open Info-Tech's Strategic Roadmap Initiative Template. Determine and describe the goals that the initiative is enabling or supporting.
    Step 2: State the current pain points from the end-user or business perspective. Do not list IT-specific pain points here, such as management complexity.
    Step 3: List both the tangible (quantitative) and ancillary (qualitative) benefits of executing the project. These can be pain relievers derived from the pain points, or any IT-specific benefit not captured in Step 1.
    Step 4: List any enabled capability that will come as an output of the project. Avoid technical capabilities like "Application-aware network monitoring." Instead, shoot for business outcomes like "Ability to filter network traffic based on application type."

    An image of the Move to Office 365, with the numbers 1-4 superimposed over the image.  These correspond to steps 1-4 above.

    Info-Tech Insight

    Sell the project to the mailroom clerk! You need to be able to explain the outcome of the project in terms that non-IT workers can appreciate. This is done by walking as far up the goals cascade as you have defined, which gets to the underlying business outcome that the initiative supports.

    Develop impactful templates to sell your initiative upstream (cont'd)

    Strategic Roadmap Initiative Template, p. 2

    Step 5: State the risks to the business for not executing the project (and avoid restating the pain points).
    Step 6: List any known or anticipated roadblocks that may come before, during, or after executing the project. Consider all aspects of people, process, and technology.
    Step 7: List any measurable objectives that can be used to gauge the success of the projects. Avoid technical metrics like "number of IOPS." Instead think of business metrics such as "increased orders per hour."
    Step 8: The abstract is a short 50-word project description. Best to leave it as the final step after all the other aspects of the project (risks and rewards) have been fully fleshed out. The abstract acts as an executive summary – written last, read first.

    An image of the Move to Office 365, with the numbers 5-8 superimposed over the image.  These correspond to steps 5-8 above.

    Info-Tech Insight

    Every piece of information that is not directly relevant to the interests of the audience is a distraction from the value proposition.

    Working session, presentation, and feedback

    Rewrite your in-flight initiatives to ensure you're capturing all the required information:

    1 hour

    1. Have each participant select an initiative they are responsible or accountable for.
    2. Introduce the template and discuss any immediate questions they might have.
    3. Take 15-20 minutes and have each participant attempt to fill out the template for their initiative.
    4. Have each participant present their initiative to the group.
    5. The group should imagine themselves business leaders and push back with questions or clarification when IT jargon is used.
    6. Look to IT leadership in the room for cues as to what hot button items they've encountered from the business executives.
    7. Debate the merits of each section in the template. Adjust and customize as appropriate.

    Discussion:
    Did everyone use the goal framework adopted earlier? Why not?
    Are there recurring topics or issues that business leaders always seem concerned about?
    Of all the information available, what consistently seems to be the talking points when discussing an initiative?

    Input

    • In-flight initiatives

    Output

    • Completed initiatives templates

    Materials

    • Templates
    • Laptops & internet

    Participants

    • Roadmap team

    3.2.2 Visual representations are more compelling than text alone

    Being able to quickly sort and filter data allows you to customize the visualization and focus on what matters to your audience. Any data that is not immediately relevant to them risks becoming a distraction.

    1. Open the Strategic Infrastructure Roadmap Tool, Tabs 6 and 7.
    2. Up to ten goals can be supported. Input the goals into column F of the tool. Be explicit but brief.
    3. Initiatives and Obstacles can be independently defined, and the tool supports up to five subdivisions of each. Initiative by origin source makes for an interesting analysis but initially we recommend simplicity.
    4. Every Initiative and Obstacle must be given a unique name in column H. Context-sensitive drop-downs let you define the subtype and responsible infrastructure domain.
    5. Three pieces of data are captured for each initiative: Business Impact is the qualitative value to the business; Risk is the qualitative likelihood of failure – entirely or partially (e.g. significantly over budget or delayed); and Effort is a relative measure of magnitude ($ or time). Only the value for Effort must be specified.
    6. Every initiative can claim to support one or many goals by placing an "x" in the appropriate column(s).
    7. On Tab 7 you must select the initiative end date (go-live date). You can also document start date, owner, and manager if required. Remember, though, that the tool does not replace proper project management tools.

    A series of screenshots of tables, labeled A-F

    Decoding your visualization

    Strategic Infrastructure Roadmap Tool, Tab 8, "Roadmap"

    Visuals aren't always as clear as we assume them to be.

    An example of a roadmap visualization found in the Strategic Infrastructure Roadmap Tool

    If you could suggest one thing, what would it be?

    The roadmap is likely the best and most direct way to showcase our ideas to business leadership – take advantage of it.

    We've spent an awful lot of time setting the stage, deciding on frameworks so we agree on what is important. We know how to have an effective conversation – now what do we want to say?

    an image of a roadmap, including inputs passing through infrastructure & Operations; to the Move to Office 365 images found earlier in this blueprint.

    Creative thinking, presentation, and feedback

    Since we're so smart – how could we do it better?

    1 hour

    1. Introduce the Roadmap Initiative Template and discuss any immediate questions the participants might have.
    2. Take 15-20 minutes and have each participant attempt to fill out the template for their initiative candidate.
    3. Have each author present their initiative to the group.
    4. The group should imagine themselves business leaders and push back with questions or clarification when IT jargon is used.
    5. Look to IT leadership in the room for cues as to what hot button items they've encountered from the business executives
    6. Debate the merits of each section in the template. Adjust and customize as appropriate.

    Discussion:
    Did everyone use the goal framework adopted earlier? Why not?
    Do we think we can find business buy-in or sponsorship? Why or why not?
    Are our initiatives at odds with or complementary to the ones proposed through the normal channels?

    Input

    • Everything we know

    Output

    • Initiative candidates

    Materials

    • Info-Tech's Infrastructure Roadmap Initiatives Template
    • Laptops & internet

    Participants

    • Roadmap team

    Forced Ranking Exercise

    Showcase only your best and brightest ideas:

    1 hour

    1. Write the initiative titles from the previous exercise across the top of a whiteboard.
    2. Distribute index cards (one per participant) with the initiative titles written down one side.
    3. Ask each participant to rank the initiatives in order of importance, with 1 being the most important.
    4. Collect the cards and write the ranking results on the whiteboard.
    5. Look at the results with an eye toward high variability. Also look for the distribution of 1, 2, and 3 ranks.
    6. Based on the results, select (through democratic vote or authoritarian fiat – Director or CIO) a reasonable number of initiatives.
    7. Refine the selected initiative templates for inclusion in the roadmap.

    Discussion:
    Do participants tend to think their idea is the best and rank it accordingly?
    If so, then is it better to look at the second, third, and fourth rankings for consensus instead?
    What is a reasonable number of initiatives to suggest? How do we limit ourselves?

    Input

    • Infrastructure initiative candidates

    Output

    • Infrastructure initiatives

    Materials

    • Index cards

    Participants

    • Roadmap team

    Who else might be using technology to solve business problems?

    Shadow IT operates outside of the governance and control structure of Enterprise IT and so is, by definition, a problem. an opportunity!

    Except for that one thing they do wrong, that one small technicality, they may well do everything else right.

    Consider:

    1. Shadow IT evolves to solve a problem or enable an activity for a specific group of users.
    2. This infers that because stakeholders spend their own resources resolving a problem or enabling an action, it is a priority.
    3. The technology choices they've made have been based solely on functionality for value, unrestrained by any legacy of previous decisions.
    4. Staffing demands and procedural issues must be modest or nonexistent.
    5. The users must be engaged, receptive to change, and tolerant of stutter steps toward a goal.

    In short, shadow IT can provide fully vetted infrastructure initiatives that with a little effort can be turned into easy wins on the roadmap.

    Info-Tech Insight

    Shadow IT can include business-ready initiatives, needing only minor tweaking to align with infrastructure's best practices.

    3.2.3 Survey and hack-a-thon

    Negotiate amnesty with shadow IT by evaluating their "hacks" for inclusion on the roadmap.

    1 hour

    1. Put out an open call for submissions across the enterprise. Ask "How do you think technology could help you solve one of your pain points?" Be specific.
    2. Gather the responses into a presentable format and assemble the roadmap team.
    3. Use voting dots (three per person) to filter out a shortlist.
    4. Invite the original author to come in and work with a roadmap team member to complete the template.
    5. Reassemble the roadmap team and use the forced ranking exercise to select initiatives to move forward.

    Discussion:
    Did you learn anything from working directly with in-the-trenches staff? Can those learnings be used elsewhere in infrastructure? Or in larger IT?

    Input

    • End-user ideas

    Output

    • Roadmap initiatives

    Materials

    • Whiteboard & markers
    • Voting dots
    • Index cards
    • Templates

    Participants

    • Enthusiastic end users
    • Roadmap team
    • Infrastructure leader

    3.2.4 Consensus estimation

    Exploit the wisdom of groups to develop reasonable estimates.

    1 hour

    Also called scrum poker (in Agile software circles), this method reduces anchoring bias by requiring all participants to formulate and submit their estimates independently and simultaneously.

    Equipment: A typical scrum deck shows the Fibonacci sequence of numbers, or similar progression, with the added values of ∞ (project too big and needs to be subdivided), and a coffee cup (need a break). Use of the (mostly) Fibonacci sequence helps capture the notional uncertainty in estimating larger values.

    1. The infrastructure leader, who will not play, moderates the activity. A "currency" of estimation is selected. This could be person, days, or weeks, or a dollar value in the thousands or tens of thousands – whatever the group feels they can speak to authoritatively.
    2. The author of each initiative gives a short overview, and the participants are given the chance to ask questions and clarify assumptions and risks.
    3. Participants lay a card representing their estimate face down on the table. Estimates are revealed simultaneously.
    4. Participants with the highest and lowest estimates are given a soapbox to offer justification. The author is expected to provide clarifications. The moderator drives the conversation.
    5. The process is repeated until consensus is reached (decided by the moderator).
    6. To structure discussion, the moderator can impose time limits between rounds.

    Discussion:

    How often was the story unclear? How often did participants have to ask for additional information to make their estimate? How many rounds were required to reach consensus?
    Does number of person, days, or weeks, make more sense than dollars? Should we estimate both independently?
    Source: Scrum Poker

    Input

    • Initiative candidates from previous activity

    Output

    • Resourcing estimates

    Materials

    • Scrum poker deck

    Participants

    • Roadmap team

    Hard work up front allows for year-over-year comparisons

    Open the Strategic Infrastructure Roadmap Tool, Tab 6, "Initiatives & Goals" and Tab 7, "Timeline"

    Add your ideas to the visualization.

    • An initiative subtype can be useful here to differentiate infrastructure-sponsored initiatives from traditional ones.
    • Goal alignment is as important as always – ideally you want your sponsored initiatives to fill gaps or support the highest-priority business goals.
    • The longer-term roadmap is an excellent parking lot for ideas, especially ones the business didn't even know they wanted. Make sure to pull those ideas forward, though, as you repeat the process periodically.

    An image containing three screenshots of timeline tables from the Strategic Infrastructure Roadmap Tool

    Pulling it all together – the published report

    We started with eight simple questions. Logically, the answers suggest sections for a published report. Developing those answers in didactic method is effective and popular among technologists as answers build upon each other. Business leaders and journalists, however, know never to bury the lead.

    Report Section Title Roadmap Activity or Step
    Sunshine diagram Visualization
    Priorities Understand business goals
    Who we help Evaluate intake process
    How we can help Create initiatives
    What we're working on Review initiatives
    How you can help us Assess roadblocks
    What is new Assess new technology
    How we spend our day Conduct a time study
    What we have Assess IT platform
    We can do better! Identify process optimizations

    Summary of Accomplishment

    Review performance from last fiscal year

    • Analyzed and communicated the benefits and value realized from IT's strategic initiatives in the past fiscal year.
    • Analyzed and prioritized diagnostic data insights to communicate IT success stories.
    • Elicited important retrospective information such as KPIs, financials, etc. to build IT's credibility as a strategic business partner.

    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

    Phase 4

    Communicate and Improve the Process

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    1.1 Infrastructure strategy

    1.2 Goal alignment

    2.1 Define your future

    2.2 Conduct constraints analysis

    3.1 Drive business alignment

    3.2. Build the roadmap

    4.1 Identify the audience

    4.2 Process improvement

    and measurements

    This phase will walk you through the following activities:

    • Identify authors and target audiences
    • Understand the planning process
    • Identify if the process outputs have value
    • Set up realistic KPIs

    This phase involves the following participants:

    • CIO
    • Roadmap team

    Step 4.1

    Identify the audience

    Activities

    4.1.1 Identify required authors and target audiences

    4.1.2 Planning the process

    4.1.3 Identifying supporters and blockers

    This step requires the following inputs:

    • Identify required authors and target audiences
    • Plan the process
    • Identify supporters and blockers

    This step involves the following participants:

    • CIO
    • Roadmap team

    Outcomes of this step

    • Process schedule
    • Communication strategy

    Again! Again!

    And you thought we were done. The roadmap is a process. Set a schedule and pattern to the individual steps.

    Publishing an infrastructure roadmap once a year as a lead into budget discussion is common practice. But this is just the last in a long series of steps and activities. Balance the effort of each activity against its results to decide on a frequency. Ensure that the frequency is sufficient to allow you to act on the results if required. Work backwards from publication to develop the schedule.

    an image of a circle of questions around the Infrastructure roadmap.

    A lot of work has gone into creating this final document. Does a single audience make sense? Who else may be interested in your promises to the business? Look back at the people you've asked for input. They probably want to know what this has all been about. Publish your roadmap broadly to ensure greater participation in subsequent years.

    4.1.1 Identify required authors and target audiences

    1 hour

    Identification and association

    Who needs to hear (and more importantly believe) your message? Who do you need to hear from? Build a communications plan to get the most from your roadmap effort.

    1. Write your eight roadmap section titles in the middle of a whiteboard.
    2. Make a list of everyone who answered your questions during the creation of this roadmap. Write these names on a single color of sticky notes and place them on the left side.
    3. Make a list of everyone who would be (or should be) interested in what you have to say. Write these names on a different single color of sticky notes and place them on the right side.
    4. Draw lines between the stickies and the relevant section of the roadmap. Solid lines indicate a must have communication while dashed lines indicate a nice-to-have communication.
    5. Come to a consensus.

    Discussion:

    How many people appear in both lists? What are the implications of that?

    Input

    • Roadmap sections

    Output

    • Roadmap audience and contributors list

    Materials

    • Whiteboard & markers
    • Sticky notes

    Participants

    • Roadmap team

    4.1.2 Planning the process and scheduling

    The right conversation at the right time

    Due Date (t) Freq Mode Participants Infrastructure Owner
    Update & Publish

    Start of Budget Planning

    Once

    Report

    IT Steering Committee

    Infrastructure Leader or CIO

    Evaluate Intakes

    (t) - 2 months

    (t) - 8 months

    Biannually

    Review

    PMO

    Service Desk

    Domain Heads

    Assess Roadblocks

    (t) - 2 months

    (t) - 5 months

    (t) - 8 months

    (t) - 11 months

    Quarterly

    Brainstorming & Consensus

    Domain Heads

    Infrastructure Leader

    Time Study

    (t) - 1 month

    (t) - 4 months

    (t) - 7 months

    (t) - 10 months

    Quarterly

    Assessment

    Domain Staff

    Domain Heads

    Inventory Assessment

    (t) - 2 months

    Annually

    Assessment

    Domain Staff

    Domain Heads

    Business Goals

    (t) - 1 month

    Annually

    Survey

    Line of Business Managers

    Infrastructure Leader or CIO

    New Technology Assessment

    monthly

    (t) - 2 months

    Monthly/Annually

    Process

    Domain Staff

    Infrastructure Leader

    Initiative Review

    (t) - 1 month

    (t) - 4 months

    (t) - 7 months

    (t) - 10 months

    Quarterly

    Review

    PMO

    Domain Heads

    Infrastructure Leader

    Initiative Creation

    (t) - 1 month

    Annually

    Brainstorming & Consensus

    Roadmap Team

    Infrastructure Leader

    The roadmap report is just a point-in-time snapshot, but to be most valuable it needs to come at the end of a full process cycle. Know your due date, work backwards, and assign responsibility.

    Discussion:

    1. Do each of the steps make sense? Is the outcome clear and does it flow naturally to where it will be useful?
    2. Is the effort required for each step commensurate with its value? Are we doing to much for not enough return?
    3. Are we acting on the information we're gathering? Is it informing or changing decisions throughout the year or period?

    Input

    • Roadmap sections

    Output

    • Roadmap process milestones

    Materials

    • Whiteboard & markers
    • Template

    Participants

    • Roadmap team

    Tailor your messaging to secure stakeholders' involvement and support

    If your stakeholders aren't on board, you're in serious trouble.

    Certain stakeholders will not only be highly involved and accountable in the process but may also be responsible for approving the roadmap and budget, so it's essential that you get their buy-in upfront.

    an image of a quadrant analysis, comparing levels of influence and support.

    an image of a quadrant analysis, comparing levels of influence and support.

    4.1.3 Identifying supporters and blockers

    Classification and Strategy

    1 hour

    You may want to restrict participation to senior members of the roadmap team only.

    This activity requires a considerable degree of candor in order to be effective. It is effectively a political conversation and as such can be sensitive.

    Steps:

    1. Review your sticky notes from the earlier activity (list of input and output names).
    2. Place each name in the corresponding quadrant of a 2x2 matrix like the one on the right.
    3. Come to a consensus on the placement of each sticky note.

    Input

    • Roadmap audience and contributors list

    Output

    • Communications strategy & plan

    Materials

    • Whiteboard & markers
    • Sticky notes

    Participants

    • Senior roadmap team

    Step 4.2

    Process improvement

    Activities

    4.2.1 Evaluating the value of each process output

    4.2.2 Brainstorming improvements

    4.2.3 Setting realistic measures

    This step requires the following inputs:

    • Evaluating the efficacy of each process output
    • Brainstorming improvements
    • Setting realistic measures

    This step involves the following participants:

    • Roadmap team

    Outcomes of this step

    • Process map
    • Process improvement plan

    Continual improvement

    Not just for the DevOps hipsters!

    You started with a desire – greater satisfaction with infrastructure from the business. All of the inputs, processes, and outputs exist only, and are designed solely, to serve the attainment of that outcome.

    The process outlined is not dogma; no element is sacrosanct. Ruthlessly evaluate the effectiveness of your efforts so you can do better next time.

    You would do no less after a server migration, network upgrade, or EUC rollout.

    Consider these four factors to help make your infrastructure roadmap effort more successful.

    Leadership
    If infrastructure leaders aren't committed, then this will quickly become an exercise of box-checking rather than candid communication.

    Data
    Quantitative or qualitative – always try to go where the data leads. Reduce unconscious bias and be surprised by the insight uncovered.

    Metrics
    Measurement allows management but if you measure the wrong thing you can game the system, cheating yourself out of the ultimate prize.

    Focus
    Less is sometimes more.

    4.2.1 Evaluating the value of each process output

    Understanding why and how individual steps are effective (or not) is how we improve the outcome of any process.

    1 hour

    1. List each of the nine roadmap steps on the left-hand side of a whiteboard.
    2. Ask the participants "Why was this step included? Did it accomplish its objective?" Consider using a reduced scale affinity diagramming exercise for this step.
    3. Consider the priority characteristics of each step; try to be as universal as possible (every characteristic will ideally apply to each step).
    4. Include two columns at the far right: "Improvement" and "Expected Change."
    5. Populate the table. If this is your first time, brainstorm reasonable objectives for your left-hand columns. Otherwise, document the reality of last year and focus on brainstorming the right-hand columns.
    6. Optional: Conduct a thought experiment and brainstorm tension metrics to establish whether the process is driving the outcomes we desire.
    7. Optional: Consider Info-Tech's assertion about the four things a roadmap can do. Brainstorm KPIs that you can measure yearly. What else would you want the roadmap to be able to do?

    Discussion:

    Did the group agree on the intended outcome of each step? Did the group think the step was effective? Was the outcome clear and did it flow naturally to where it was useful?
    Is the effort required for each step commensurate with its value? Are we doing too much for not enough return?
    Are we acting on the information we're gathering? Is it informing or changing decisions throughout the year or period?

    Input

    • Roadmap process steps

    Output

    • Process map
    • Improvement targets & metrics

    Materials

    • Whiteboard & markers
    • Sticky notes
    • Process Map Template (see next slide)

    Participants

    • Roadmap team

    Process map template

    Replace the included example text with your inputs.

    Freq.MethodMeasuresSuccess criteria

    Areas for improvement

    Expected change

    Evaluate intakesBiannuallyPMO Intake & Service RequestsProjects or Initiatives% of departments engaged

    Actively reach out to underrepresented depts.

    +10% engagement

    Assess roadblocksQuarterlyIT All-Staff MeetingRoadblocks% of identified that have been resolved

    Define expected outcomes of removing roadblock

    Measurable improvements

    Time studyQuarterly IT All-Staff MeetingTimeConfidence value of data

    Real data sources (time sheets, tools, etc.)

    85% of sources defensible

    Legacy asset assessmentAnnuallyDomain effortAsset Inventory Completeness of Inventory
    • Compare against Asset Management database
    • Track business activity by enabling asset(s)
    • > 95% accuracy/
      completeness
    • Easier business risk framework conversations
    Understand business goalsAnnuallyRoadmap MeetingGoal listGoal specificity

    Survey or interview leadership directly

    66% directly attributable participation

    New technology assessmentMonthly/AnnuallyTeam/Roadmap MeetingTechnologies Reviewed IT staff participation/# SWOTs

    Increase participation from junior members

    50% presentations from junior members

    Initiative review

    Quarterly

    IT All-Staff Meeting

    • Status Review
    • Template usage
    • Action taken upon review
    • Template uptake
    • Identify predictive factors
    • Improve template
    • 25% of yellow lights to green
    • -50% requests for additional info

    Initiative creation

    Annually Roadmap MeetingInitiatives# of initiatives proposedBusiness uptake+25% sponsorship in 6 months (biz)

    Update and publish

    AnnuallyPDF reportRoadmap Final ReportLeadership engagement Improve audience reach+15% of LoB managers have read the report

    Establish baseline metrics

    Baseline metrics will improve through:

    1. Increased communication. More information being shared to more people who need it.
    2. Better planning. More accurate information being shared.
    3. Reduced lead times. Less due diligence or discovery work required as part of project implementations.
    4. Faster delivery times. Less less-valuable work, freeing up more time to project work.
    Metric description Current metric Future goal
    # of critical incidents resulting from equipment failure per month
    # of service provisioning delays due to resource (non-labor) shortages
    # of projects that involve standing up untested (no prior infrastructure PoC) technologies
    # of PoCs conducted each year
    # of initiatives proposed by infrastructure
    # of initiatives proposed that find business sponsorship in >1yr
    % of long-term projects reviewed as per goal framework
    # of initiatives proposed that are the only ones supporting a business goal
    # of technologies deployed being used by more than the original business sponsor
    # of PMO delays due to resource contention

    Insight Summary

    Insight 1

    Draw the first picture.

    Highly engaged and effective team members are proactive rather than reactive. Instead of waiting for clear inputs from the higher ups, take what you do know, make some educated guesses about the rest, and present that to leadership. Where thinking diverges will be crystal clear and the necessary adjustments will be obvious.

    Insight 2

    Infrastructure must position itself as the broker for new technologies.

    No man is an island; no technology is a silo. Infrastructure's must ensure that everyone in the company benefits from what can be shared, ensure those benefits are delivered securely and reliably, and prevent the uninitiated from making costly technological mistakes. It is easier to lead from the front, so infrastructure must stay on top of available technology.

    Insight 3

    The roadmap is a process that is business driven and not a document.

    In an ever-changing world the process of change itself changes. We know the value of any specific roadmap output diminishes quickly over time, but don't forget to challenge the process itself from time to time. Striving for perfection is a fool's game; embrace constant updates and incremental improvement.

    Insight 4

    Focus on the framework, not the output.

    There usually is no one right answer. Instead make sure both the business and infrastructure are considering common relevant elements and are working from a shared set of priorities. Data then, rather than hierarchical positioning or a d20 Charisma roll, becomes the most compelling factor in making a decision. But since your audience is in hierarchical ascendency over you, make the effort to become familiar with their language.

    4.2.3 Track metrics throughout the project to keep stakeholders informed

    An effective strategic infrastructure roadmap should help to:

    1. Initiate a schedule of infrastructure projects to achieve business goals.
    2. Adapt to feedback from executives on changing business priorities.
    3. Curate a portfolio of enabling technologies that align to the business whether growing or stabilizing.
    4. Manage the lifecycle of aging equipment in order to meet capacity demands.
    Metric description

    Metric goal

    Checkpoint 1

    Checkpoint 2

    Checkpoint 3

    # of critical incidents resulting from equipment failure per month >1
    # of service provisioning delays due to resource (non-labor) shortages >5
    # of projects that involve standing up untested (no prior infrastructure PoC) technologies >10%
    # of PoCs conducted each year 4
    # of initiatives proposed by infrastructure 4
    # of initiatives proposed that find business sponsorship in >1 year 1
    # of initiatives proposed that are the only ones supporting a business goal 1
    % of long-term projects reviewed as per goal framework 100%

    Summary of Accomplishment

    Review performance from last fiscal year

    • Analyzed and communicated the benefits and value realized from IT's strategic initiatives in the past fiscal year.
    • Analyzed and prioritized diagnostic data insights to communicate IT success stories.
    • Elicited important retrospective information such as KPIs, financials, etc. to build IT's credibility as a strategic business partner.

    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

    Build a Business-Aligned IT Strategy
    Success depends on IT initiatives clearly aligned to business goals, IT excellence, and driving technology innovation.

    Document your Cloud Strategy
    A cloud strategy might seem like a big project, but it's just a series of smaller conversations. The methodology presented here is designed to facilitate those conversations using a curated list of topics, prompts, participant lists, and sample outcomes. We have divided the strategy into four key areas.

    Develop an IT Asset Management Strategy
    ITAM is a foundational IT service that provides accurate, accessible, actionable data on IT assets. But there's no value in data for data's sake. Enable collaboration between IT asset managers, business leaders, and IT leaders to develop an ITAM strategy that maximizes the value they can deliver as service provider.

    Infrastructure & Operations Research Center
    Practical insights, tools, and methodologies to systematically improve IT Infrastructure & Operations.

    Summary of Accomplishment

    Knowledge gained

    • Deeper understanding of business goals and priorities
    • Key data the business requires for any given initiative
    • Quantification of risk
    • Leading criteria for successful technology adoption

    Processes optimized

    • Infrastructure roadmap
    • Initiative creation, estimation, evaluation, and prioritization
    • Inventory assessment for legacy infrastructure debt
    • Technology adoption

    Deliverables completed

    • Domain time study
    • Initiative intake analysis
    • Prioritized roadblock list
    • Goal listing
    • IT and business risk frameworks
    • Infrastructure inventory assessment
    • New technology analyzes
    • Initiative templates
    • Initiative candidates
    • Roadmap visualization
    • Process schedule
    • Communications strategy
    • Process map
    • Roadmap report

    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

    "10 Essential KPIs for the IT Strategic Planning Process." Apptio Inc, Dec. 2021. Accessed Nov. 2022.
    Amos, Justin. "8 areas your 2022 IT Infrastructure roadmap should cover." Soma, 24 Jan 2022 Accessed Nov. 2022
    Ahmed, Anam. "Importance of Mission Vision in Organizational Strategy." Chron, 14 March 2019. Accessed 10 May 2021. ."
    Barker, Joel A. "Joel A Barker Quote about Vision." Joel A Barker.com. Accessed 10 Nov 2022
    Bhagwat, Swapnil ."Top IT Infrastructure Management Strategies For 2023 , Atlas Systems, 23 Oct 2022. Accessed Nov. 2022.
    Blank, Steve. "You're Better Off Being A Fast Follower Than An Originator." Business Insider. 5 Oct. 2010. Web.
    Bridges, Jennifer . "IT Risk Management Strategies and Best Practices." Project Manager, 6 Dec 2019. Accessed Nov. 2022.
    "Building a Technology Roadmap That Stabilizes and Transforms." Collegis Education. Accessed Dec 2022.
    Collins, Gavin. "WHY AN IT INFRASTRUCTURE ROAD MAP?." Fifth Step, Date unknown. Accessed Nov. 2022.
    "Define the Business Context Needed to Complete Strategic IT Initiatives: 2018 Blueprint - ResearchAndMarkets.com." Business Wire, 1 Feb. 2018. Accessed 9 June 2021.
    De Vos, Colton. “Well-Developed IT Strategic Plan Example." Resolute Tech Solutions, 6 Jan 2020. Accessed Nov. 2022.
    Gray, Dave. "Post-Up." Gamestorming, 15 Oct. 2010. Accessed 10 Nov 2022
    Helm, Clay. "Majority of Surveyed Companies are Not Prepared for IT Needs of the Future." IBM Study, 4 Jan 2021. Accessed Nov. 2022.
    Hertvik, Joe. "8 Components of A Great IT Strategy, BMC Blogs, 29 May. 2020. Accessed Nov. 2022.
    ISACA, "Effective governance at your Fingertips". COBIT Framework, Accessed Dec 2022
    "IT Guiding Principles." Office of Information Technology, NC State University, 2014-2020. Accessed 9 Nov 2022.
    ""IT Infrastructure That Makes Employees Happier." Network Doctor, 2021. Accessed Dec 2022
    "IT Road mapping Helps Dura Remain at the Forefront of Auto Manufacturing." Performance Improvement Partners, ND. Accessed Dec 2022.
    ITtoolkit.com. "The IT Vision: A Strategic Path to Lasting IT Business Alignment." ITtoolkit Magazine, 2020. Accessed 9 June 2021.
    Kark, Khalid. "Survey: CIOs Are CEOs' Top Strategic Partner." CIO Journal, The Wall Street Journal, 22 May 2020. Accessed 11 May 2021.
    Kimberling, Eric. "What is "Future State" and Why is it Important?" Third Stage Consulting, 11 June 2021. Accessed Nov. 2022.
    Kishore. "The True Cost of Keeping the Lights On." Optanix, 1 Feb. 2017. Accessed Nov. 2022.
    Lakein, Alan. Libquotes.
    Mindsight. "THE ULTIMATE GUIDE TO CREATING A TECHNOLOGY ROADMAP" Mind sight, 12 Dec 2021. Accessed Nov. 2022.
    Milani, F. (2019). Future State Analysis. In: Digital Business Analysis. Springer, Cham. https://doi.org/10.1007/978-3-030-05719-0_13
    Newberry, Dennis. "Meeting the Challenges of Optimizing IT Cost and Capacity Management." BMC, 2021, Accessed 12 Nov 2022.
    Peek, Sean. "What Is a Vision Statement?" Business News Daily, 7 May 2020. Accessed 10 Nov 2022.
    Ramos, Diana. "Infrastructure Management 101: A Beginner's Guide to IT Infrastructure Management." Smartsheet.com. 30 Nov 2021. Accessed 09 Dec 2022.
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    Richards-Gustafson, Flora. "5 Core Operational Strategies." Chron, 8 Mar 2019. Accessed 9 June 2021.
    Richardson, Nigel. "What are the differences between current and future state maps?." Nexus, 18 Oct 2022. Accessed Nov. 2022.
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    Wei, Jessica. "Don't Tell Me Where Your Priorities Are – James W. Frick." Due.com, 21 Mar 2022. Accessed 23 Nov 2022.
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    Configuration management

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    • Download01-Title: Harness the power of Configuration Management Executive Brief
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    • Parent Category Name: Infra and Operations
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    Configuration management is all about being able to manage your assets within the support processes. That means to record what you need. Not less than that, and not more either.

    Asset Management, Configuration Management, Lifecycle Management

    Develop a Plan to Pilot Enterprise Service Management

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    • Parent Category Name: Service Management
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    • Many business groups in the organization are siloed and have disjointed services that lead to a less than ideal customer experience.
    • Service management is too often process-driven and is implemented without a holistic view of customer value.
    • Businesses get caught up in the legacy of their old systems and find it difficult to move with the evolving market.

    Our Advice

    Critical Insight

    • Customer experience is the new battleground. Parity between products is creating the need to differentiate via customer experience.
    • Don’t forget your employees! Enterprise service management (ESM) is also about delivering exceptional experiences to your employees so they can deliver exceptional services to your customers.
    • ESM is not driven by tools and processes. Rather, ESM is about pushing exceptional services to customers by pulling from organizational capabilities.

    Impact and Result

    • Understand ESM concepts and how they can improve customer service.
    • Use Info-Tech’s advice and tools to perform an assessment of your organization’s state for ESM, identify the gaps, and create an action plan to move towards an ESM pilot.
    • Increase business and customer satisfaction by delivering services more efficiently.

    Develop a Plan to Pilot Enterprise Service Management Research & Tools

    Start here – read the Executive Brief

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

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

    1. Understand ESM and get buy-in

    Understand the concepts of ESM, determine the scope of the ESM program, and get buy-in.

    • Develop a Plan to Pilot Enterprise Service Management – Phase 1: Understand ESM and Get Buy-in
    • Enterprise Service Management Executive Buy-in Presentation Template
    • Enterprise Service Management General Communications Presentation Template

    2. Assess the current state for ESM

    Determine the current state for ESM and identify the gaps.

    • Develop a Plan to Pilot Enterprise Service Management – Phase 2: Assess the Current State for ESM
    • Enterprise Service Management Assessment Tool
    • Enterprise Service Management Assessment Tool Action Plan Guide
    • Enterprise Service Management Action Plan Tool

    3. Identify ESM pilot and finalize action plan

    Create customer journey maps, identify an ESM pilot, and finalize the action plan for the pilot.

    • Develop a Plan to Pilot Enterprise Service Management – Phase 3: Identify ESM Pilot and Finalize Action Plan
    • Enterprise Service Management Customer Journey Map Template
    [infographic]

    Workshop: Develop a Plan to Pilot Enterprise Service Management

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

    1 Understand ESM and Get Buy-In

    The Purpose

    Understand what ESM is and how it can improve customer service.

    Determine the scope of your ESM initiative and identify who the stakeholders are for this program.

    Key Benefits Achieved

    Understanding of ESM concepts.

    Understanding of the scope and stakeholders for your ESM initiative.

    Plan for getting buy-in for the ESM program.

    Activities

    1.1 Understand the concepts and benefits of ESM.

    1.2 Determine the scope of your ESM program.

    1.3 Identify your stakeholders.

    1.4 Develop an executive buy-in presentation.

    1.5 Develop a general communications presentation.

    Outputs

    Executive buy-in presentation

    General communications presentation

    2 Assess the Current State for ESM

    The Purpose

    Assess your current state with respect to culture, governance, skills, and tools.

    Identify your strengths and weaknesses from the ESM assessment scores.

    Key Benefits Achieved

    Understanding of your organization’s current enablers and constraints for ESM.

    Determination and analysis of data needed to identify strengths or weaknesses in culture, governance, skills, and tools.

    Activities

    2.1 Understand your organization’s mission and vision.

    2.2 Assess your organization’s culture, governance, skills, and tools.

    2.3 Identify the gaps and determine the necessary foundational action items.

    Outputs

    ESM assessment score

    Foundational action items

    3 Define Services and Create Custom Journey Maps

    The Purpose

    Define and choose the top services at the organization.

    Create customer journey maps for the chosen services.

    Key Benefits Achieved

    List of prioritized services.

    Customer journey maps for the prioritized services.

    Activities

    3.1 Make a list of your services.

    3.2 Prioritize your services.

    3.3 Build customer journey maps.

    Outputs

    List of services

    Customer journey maps

    Build and Deliver an Optimized IT Update Presentation

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    • Parent Category Name: Manage Business Relationships
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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
    [infographic]

    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

    Demystify Blockchain: How Can It Bring Value to Your Organization?

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    • Parent Category Name: Innovation
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    • Most leaders have an ambiguous understanding of blockchain and its benefits, let alone how it impacts their organization.
    • At the same time, with bitcoin drawing most of the media attention, organizations are finding it difficult to translate cryptocurrency usage to business case.

    Our Advice

    Critical Insight

    • Cut through the hype associated with blockchain by focusing on what is relevant to your organization. You have been hearing about blockchain for some time now and want to better understand it. While it is complex, you can beat the learning curve by analyzing its key benefits and purpose. Features such as transparency, efficiency, and security differentiate blockchain from existing technologies and help explain why it has transformative potential.
    • Ensure your use case is actually useful by first determining whether blockchain aligns with your organization. CIOs must take a practical approach to blockchain in order to avoid wasting resources (both time and money) and hurting IT’s image in the eyes of the business. While is easy to get excited and invest in a new technology to help maintain your image as a thought leader, you must ensure that your use case is fully developed prior to doing so.

    Impact and Result

    • Follow Info-Tech’s methodology for simplifying an otherwise complex concept. By focusing on its benefits and how they directly relate to a use case, blockchain technology is made easy to understand for business and IT professionals.
    • Our program will help you understand if blockchain is the optimal solution for your organization by mapping its key benefits (i.e. transparency, integrity, efficiency, and security) to your needs and capabilities.
    • Leverage a repeatable framework for brainstorming blockchain use case ideas and communicate your findings to business stakeholders who may otherwise be confused about the transformative potential of blockchain.

    Demystify Blockchain: How Can It Bring Value to Your Organization? Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why your organization should care about determining whether blockchain aligns with your organization, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

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

    1. What exactly is blockchain?

    Understand blockchain’s unique feature, benefits, and business use cases.

    • Demystify Blockchain – Phase 1: What Is Blockchain?
    • Blockchain Glossary

    2. What can blockchain do for your organization?

    Envision blockchain’s transformative potential for your organization by brainstorming and validating a use case.

    • Demystify Blockchain – Phase 2: What Can Blockchain Do for Your Organization?
    • Blockchain Alignment Tool
    • Blockchain Alignment Presentation
    [infographic]

    Establish an Analytics Operating Model

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    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • Organizations are struggling to understand what's involved in the analytics developer lifecycle to generate reusable insights faster.
    • Discover what it takes to become a citizen analytics developer. Identify the proper way to enable self-serve analytics.
    • Self-serve business intelligence/analytics is misunderstood and confusing to the business, especially with regards to the roles and responsibilities of IT and the business.
    • End users are dissatisfied due to a lack of access to the data and the absence of a single source of truth.

    Our Advice

    Critical Insight

    Organizations that take data seriously should:

    • Decouple processes in which data is separated from business processes and elevate the visibility of the organization's data assets.
    • Leverage a secure platform where data can be easily exchanged for insights generation.
    • Create density for analytics where resources are mobilized around analytics ideas to generate value.

    Analytics is a journey, not a destination. This journey can eventually result in some level of sophisticated AI/machine learning in your organization. Every organization needs to mobilize its resources and enhance its analytics capabilities to quickly and incrementally add value to data products and services. However, most organizations fail to mobilize their resources in this way.

    Impact and Result

    • Firms become more agile when they realize efficiencies in their analytics operating models and can quickly implement reusable analytics.
    • IT becomes more flexible and efficient in understanding the business' data needs and eliminates redundant processes.
    • Trust in data-driven decision making goes up with collaboration, engagement, and transparency.
    • There is a clear path to continuous improvement in analytics.

    Establish an Analytics Operating Model Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief that outlines Info-Tech’s methodology for assessing the business' analytics needs and aligning your data governance, capabilities, and organizational structure to deliver analytics faster.

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

    1. Define your analytics needs

    This phase helps you understand your organization's data landscape and current analytics environment so you gain a deeper understanding of your future analytics needs.

    • Establish an Analytics Operating Model – Phase 1: Define Your Analytics Needs

    2. Establish an analytics operating model

    This phase introduces you to data operating model frameworks and provides a step-by-step guide on how to capture the right analytics operating model for your organization.

    • Establish an Analytics Operating Model – Phase 2: Establish an Analytics Operating Model
    • Analytics Operating Model Building Tool

    3. Implement your operating model

    This phase helps you implement your chosen analytics operating model, as well as establish an engagement model and communications plan.

    • Establish an Analytics Operating Model – Phase 3: Implement Your Analytics Operating Model
    [infographic]

    Workshop: Establish an Analytics Operating Model

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

    1 Define Your Analytics Needs

    The Purpose

    Achieve a clear understanding and case for data analytics.

    Key Benefits Achieved

    A successful analytics operating model starts with a good understanding of your analytical needs.

    Activities

    1.1 Review the business context.

    1.2 Understand your analytics needs.

    1.3 Draft analytics ideas and use cases.

    1.4 Capture minimum viable analytics.

    Outputs

    Documentation of analytics products and services

    2 Perform an Analytics Capability Assessment

    The Purpose

    Achieve a clear understanding of your organization's analytics capability and mapping across organizational functions.

    Key Benefits Achieved

    Understand your organization's data landscape and current analytics environment to gain a deeper understanding of your future analytics needs.

    Activities

    2.1 Capture your analytics capabilities.

    2.2 Map capabilities to a hub-and-spoke model.

    2.3 Document operating model results.

    Outputs

    Capability assessment results

    3 Establish an Analytics Operating Model

    The Purpose

    Capture the right analytics operating model for your organization.

    Key Benefits Achieved

    Explore data operating model frameworks.

    Capture the right analytics operating model for your organization using a step-by-step guide.

    Activities

    3.1 Discuss your operating model results.

    3.2 Review your organizational structure’s pros and cons.

    3.3 Map resources to target structure.

    3.4 Brainstorm initiatives to develop your analytics capabilities.

    Outputs

    Target operating model

    4 Implement Your Analytics Operating Model

    The Purpose

    Formalize your analytics organizational structure and prepare to implement your chosen analytics operating model.

    Key Benefits Achieved

    Implement your chosen analytics operating model.

    Establish an engagement model and communications plan.

    Activities

    4.1 Document your target organizational structure and RACI.

    4.2 Establish an analytics engagement model.

    4.3 Develop an analytics communications plan.

    Outputs

    Reporting and analytics responsibility matrix (RACI)

    Analytics engagement model

    Analytics communications plan

    Analytics organizational chart

    Build a Security Compliance Program

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    • Parent Category Name: Governance, Risk & Compliance
    • Parent Category Link: /governance-risk-compliance
    • Most organizations spend between 25 and 40 percent of their security budget on compliance-related activities.
    • Despite this growing investment in compliance, only 28% of organizations believe that government regulations help them improve cybersecurity.
    • The cost of complying with cybersecurity and data protection requirements has risen to the point where 58% of companies see compliance costs as barriers to entering new markets.
    • However, recent reports suggest that while the costs of complying are higher, the costs of non-compliance are almost three times greater.

    Our Advice

    Critical Insight

    • Test once, attest many. Having a control framework allows you to satisfy multiple compliance requirements by testing a single control.
    • Choose your own conformance adventure. Conformance levels allow your organization to make informed business decisions on how compliance resources will be allocated.
    • Put the horse before the cart. Take charge of your audit costs by preparing test scripts and evidence repositories in advance.

    Impact and Result

    • Reduce complexity within the control environment by using a single framework to align multiple compliance regimes.
    • Provide senior management with a structured framework for making business decisions on allocating costs and efforts related to cybersecurity and data protection compliance obligations.
    • Reduces costs and efforts related to managing IT audits through planning and preparation.
    • This blueprint can help you comply with NIST, ISO, CMMC, SOC2, PCI, CIS, and other cybersecurity and data protection requirements.

    Build a Security Compliance Program Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should manage your security compliance obligations, 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:

    Infographic

    Workshop: Build a Security Compliance 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 Program

    The Purpose

    Establish the security compliance management program.

    Key Benefits Achieved

    Reviewing and adopting an information security control framework.

    Understanding and establishing roles and responsibilities for security compliance management.

    Identifying and scoping operational environments for applicable compliance obligations.

    Activities

    1.1 Review the business context.

    1.2 Review the Info-Tech security control framework.

    1.3 Establish roles and responsibilities.

    1.4 Define operational environments.

    Outputs

    RACI matrix

    Environments list and definitions

    2 Identify Obligations

    The Purpose

    Identify security and data protection compliance obligations.

    Key Benefits Achieved

    Identifying the security compliance obligations that apply to your organization.

    Documenting obligations and obtaining direction from management on conformance levels.

    Mapping compliance obligation requirements into your control framework.

    Activities

    2.1 Identify relevant security and data protection compliance obligations.

    2.2 Develop conformance level recommendations.

    2.3 Map compliance obligations into control framework.

    2.4 Develop process for operationalizing identification activities.

    Outputs

    List of compliance obligations

    Completed Conformance Level Approval forms

    (Optional) Mapped compliance obligation

    (Optional) Identification process diagram

    3 Implement Compliance Strategy

    The Purpose

    Understand how to build a compliance strategy.

    Key Benefits Achieved

    Updating security policies and other control design documents to reflect required controls.

    Aligning your compliance obligations with your information security strategy.

    Activities

    3.1 Review state of information security policies.

    3.2 Recommend updates to policies to address control requirements.

    3.3 Review information security strategy.

    3.4 Identify alignment points between compliance obligations and information security strategy.

    3.5 Develop compliance exception process and forms.

    Outputs

    Recommendations and plan for updates to information security policies

    Compliance exception forms

    4 Track and Report

    The Purpose

    Track the status of your compliance program.

    Key Benefits Achieved

    Tracking the status of your compliance obligations.

    Managing exceptions to compliance requirements.

    Reporting on the compliance management program to senior stakeholders.

    Activities

    4.1 Define process and forms for self-attestation.

    4.2 Develop audit test scripts for selected controls.

    4.3 Review process and entity control types.

    4.4 Develop self-assessment process.

    4.5 Integrate compliance management with risk register.

    4.6 Develop metrics and reporting process.

    Outputs

    Self-attestation forms

    Completed test scripts for selected controls

    Self-assessment process

    Reporting process

    Recommended metrics

    Strengthen the SSDLC for Enterprise Mobile Applications

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    • Parent Category Name: Mobile Development
    • Parent Category Link: /mobile-development
    • CEOs see mobile for employees as their top mandate for upcoming technology innovation initiatives, making security a key competency for development.
    • Unsecure mobile applications can cause your employees to question the mobile applications’ integrity for handling sensitive data, limiting uptake.
    • Secure mobile development tends to be an afterthought, where vulnerabilities are tested for post-production rather than during the build process.
    • Developers lack the expertise, processes, and proper tools to effectively enhance applications for mobile security.

    Our Advice

    Critical Insight

    • Organizations currently react to security issues. Info-Tech recommends a proactive approach to ensure a secure software development life cycle (SSDLC) end-to-end.
    • Organizations currently lack the secure development practices to provide highly secure mobile applications that end users can trust.
    • Enable your developers with five key secure development techniques from Info-Tech’s development toolkit.

    Impact and Result

    • Embed secure development techniques into your SDLC.
    • Create a repeatable process for your developers to continually evaluate and optimize mobile application security for new threats and corresponding mitigation steps.
    • Build capabilities within your team based on Info-Tech’s framework by supporting ongoing security improvements through monitoring and metric analysis.

    Strengthen the SSDLC for Enterprise Mobile Applications Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should adopt secure development techniques for mobile application development, 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 secure mobile development processes

    Determine the current security landscape of mobile application development.

    • Strengthen the SSDLC for Enterprise Mobile Applications – Phase 1: Assess Secure Mobile Development Practices
    • Systems Architecture Template
    • Mobile Application High-Level Design Requirements Template

    2. Implement and test secure mobile techniques

    Incorporate the various secure development techniques into current development practices.

    • Strengthen the SSDLC for Enterprise Mobile Applications – Phase 2: Implement and Test Secure Mobile Techniques

    3. Monitor and support secure mobile applications

    Create a roadmap for mobile optimization initiatives.

    • Strengthen the SSDLC for Enterprise Mobile Applications – Phase 3: Monitor and Support Secure Mobile Applications
    • Mobile Optimization Roadmap
    [infographic]

    Workshop: Strengthen the SSDLC 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 Your Secure Mobile Development Practices

    The Purpose

    Identification of the triggers of your secure mobile development initiatives.

    Assessment of the security vulnerabilities in your mobile applications from an end-user perspective.

    Identification of the execution of your mobile environment.

    Assessment of the mobile threats and vulnerabilities to your systems architecture.

    Prioritization of your mobile threats.

    Creation of your risk register.

    Key Benefits Achieved

    Key opportunity areas where a secure development optimization initiative can provide tangible benefits.

    Identification of security requirements.

    Prioritized list of security threats.

    Initial mobile security risk register created. 

    Activities

    1.1 Establish the triggers of your secure mobile development initiatives.

    1.2 Assess the security vulnerabilities in your mobile applications from an end-user perspective.

    1.3 Understand the execution of your mobile environment with a systems architecture.

    1.4 Assess the mobile threats and vulnerabilities to your systems architecture.

    1.5 Prioritize your mobile threats.

    1.6 Begin building your risk register.

    Outputs

    Mobile Application High-Level Design Requirements Document

    Systems Architecture Diagram

    2 Implement and Test Your Secure Mobile Techniques

    The Purpose

    Discovery of secure development techniques to apply to current development practices.

    Discovery of new user stories from applying secure development techniques.

    Discovery of new test cases from applying secure development techniques.

    Key Benefits Achieved

    Areas within your code that can be optimized for improving mobile application security.

    New user stories created in relation to mitigation steps.

    New test cases created in relation to mitigation steps.

    Activities

    2.1 Gauge the state of your secure mobile development practices.

    2.2 Identify the appropriate techniques to fill gaps.

    2.3 Develop user stories from security development gaps identified.

    2.4 Develop test cases from user story gaps identified.

    Outputs

    Mobile Application High-Level Design Requirements Document

    3 Monitor and Support Your Secure Mobile Applications

    The Purpose

    Identification of key metrics used to measure mobile application security issues.

    Identification of secure mobile application and development process optimization initiatives.

    Identification of enablers and blockers of your mobile security optimization.

    Key Benefits Achieved

    Metrics for measuring application security.

    Modified triaging process for addressing security issues.

    Initiatives for development optimization.

    Enablers and blockers identified for mobile security optimization initiatives.

    Process for developing your mobile optimization roadmap.

    Activities

    3.1 List the metrics that would be gathered to assess the success of your mobile security optimization.

    3.2 Adjust and modify your triaging process to enhance handling of security issues.

    3.3 Brainstorm secure mobile application and development process optimization initiatives.

    3.4 Identify the enablers and blockers of your mobile security optimization.

    3.5 Define your mobile security optimization roadmap.

    Outputs

    Mobile Optimization Roadmap

    Prepare to Successfully Deploy PPM Software

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    • Parent Category Name: Portfolio Management
    • Parent Category Link: /portfolio-management
    • PPM suite deployments are complicated and challenging. Vendors and consultants can provide much needed expertise and assistance to organizations deploying new PPM suites.
    • While functional requirements are often defined during the procurement stage (for example, in an RFP), the level of detail during this stage is likely insufficient for actually configuring the solution to your specific PPM needs. Too many organizations fail to further develop these functional requirements between signing their contracts and the official start of their professional implementation engagement.
    • Many organizations fail to organize and record the PPM data they will need to populate the new PPM suite. In almost all cases, customers have the expertise and are in the best position to collect and organize their own data. Leaving this until the vendor or consultant arrives to help with the deployment can result in using your professional services in a suboptimal way.
    • Vendors and consultants want you to prepare for their implementation engagements so that you can make the best use of their expertise and assistance. They want you to deploy a PPM suite that can be sustainably adopted in the long term. All too often, however, they arrive onsite to find customers that are disorganized and underprepared.

    Our Advice

    Critical Insight

    • Preparing for a professional implementation engagement allows you to make the best use of your professional services, as well as helping to ensure that the PPM suite is deployed according to your specific PPM needs.
    • Involving your internal resources in the preparation of data and in fully defining functional requirements for the PPM suite helps to establish stakeholder buy-in early on, helping to build internal ownership of the solution from the beginning. This avoids the solution being perceived as something the vendor/consultant “forced upon us.”
    • Vendors and consultants are happy when organizations are organized and prepared for their professional implementation engagements. Preparation ensures these engagements are positive experiences for everyone involved.

    Impact and Result

    • Ensure that the data necessary to deploy the new PPM suite is recorded and organized.
    • Make your functional requirements detailed enough to ensure that the new PPM suite can be configured/customized during the deployment engagement in a way that best fits the organization’s actual PPM needs.
    • Through carefully preparing data and fully defining functional requirements, you help the solution become sustainably adopted in the long term.

    Prepare to Successfully Deploy PPM Software Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand why preparing for PPM deployment will ensure that organizations get the most value out of the implementation professional services they purchased and will help drive long-term sustainable adoption of the new PPM suite.

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

    1. Create a preparation team and plan

    Engage in purposeful and effective PPM deployment planning by clearly defining what to prepare and when exactly it is time to move from planning to execution.

    • Prepare to Successfully Deploy PPM Software – Phase 1: Create a Preparation Team and Plan
    • Prepare to Deploy PPM Suite Project Charter Template
    • PPM Suite Functional Requirements Document Template
    • PPM Suite Deployment Timeline Template (Excel)
    • PPM Suite Deployment Timeline Template (Project)
    • PPM Suite Deployment Communication Plan Template

    2. Prepare project-related requirements and deliverables

    Provide clearer definition to specific project-related functional requirements and collect the appropriate PPM data needed for an effective PPM suite deployment facilitated by vendors/consultants.

    • Prepare to Successfully Deploy PPM Software – Phase 2: Prepare Project-Related Requirements and Deliverables
    • PPM Deployment Data Workbook
    • PPM Deployment Dashboard and Report Requirements Workbook

    3. Prepare PPM resource requirements and deliverables

    Provide clearer definition to specific resource management functional requirements and data and create a communication and training plan.

    • Prepare to Successfully Deploy PPM Software – Phase 3: Prepare PPM Resource Requirements and Deliverables
    • PPM Suite Transition Plan Template
    • PPM Suite Training Plan Template
    • PPM Suite Training Management Tool

    4. Provide preparation materials to the vendor and implementation professionals

    Plan how to engage vendors/consultants by communicating functional requirements to them and evaluating changes to those requirements proposed by them.

    • Prepare to Successfully Deploy PPM Software – Phase 4: Provide Preparation Materials to the Vendor and Implementation Professionals
    [infographic]

    Workshop: Prepare to Successfully Deploy PPM Software

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

    1 Plan the Preparation Project

    The Purpose

    Select a preparation team and establish clear assignments and accountabilities.

    Establish clear deliverables, milestones, and metrics to ensure it is clear when the preparation phase is complete.

    Key Benefits Achieved

    Preparation activities will be organized and purposeful, ensuring that you do not threaten deployment success by being underprepared or waste resources by overpreparing.

    Activities

    1.1 Overview: Determine appropriate functional requirements to define and data to record in preparation for the deployment.

    1.2 Create a timeline.

    1.3 Create a charter for the PPM deployment preparation project: record lessons learned, establish metrics, etc.

    Outputs

    PPM Suite Deployment Timeline

    Charter for the PPM Suite Preparation Project Team

    2 Prepare Project-Related Requirements and Deliverables

    The Purpose

    Collect and organize relevant project-related data so that you are ready to populate the new PPM suite when the vendor/consultant begins their professional implementation engagement with you.

    Clearly define project-related functional requirements to aid in the configuration/customization of the tool.

    Key Benefits Achieved

    An up-to-date and complete record of all relevant PPM data.

    Avoidance of scrambling to find data at the last minute, risking importing out-of-date or irrelevant information into the new software.

    Clearly defined functional requirements that will ensure the suite is configured in a way that can be adoption in the long term.

    Activities

    2.1 Define project phases and categories.

    2.2 Create a list of all projects in progress.

    2.3 Record functional requirements for project requests, project charters, and business cases.

    2.4 Create a list of all existing project requests.

    2.5 Record the current project intake processes.

    2.6 Define PPM dashboard and reporting requirements.

    Outputs

    Project List (basic)

    Project Request Form Requirements (basic)

    Scoring/Requirements (basic)

    Business Case Requirements (advanced)

    Project Request List (basic)

    Project Intake Workflows (advanced)

    PPM Reporting Requirements (basic)

    3 Prepare PPM Resource Requirements and Deliverables

    The Purpose

    Collect and organize relevant resource-related data.

    Clearly define resource-related functional requirements.

    Create a purposeful transition, communication, and training plan for the deployment period.

    Key Benefits Achieved

    An up-to-date and complete record of all relevant PPM data that allows your vendor/consultant to get right to work at the start of the implementation engagement.

    Improved buy-in and adoption through transition, training, and communication activities that are tailored to the actual needs of your specific organization and users.

    Activities

    3.1 Create a portfolio-wide roster of project resources (and record their competencies and skills, if appropriate).

    3.2 Record resource management processes and workflows.

    3.3 Create a transition plan from existing PPM tools and processes to the new PPM suite.

    3.4 Identify training needs and resources to be leveraged during the deployment.

    3.5 Define training requirements.

    3.6 Create a PPM deployment training plan.

    Outputs

    Resource Roster and Competency Profile (basic)

    User Roles and Permissions (basic)

    Resource Management Workflows (advanced)

    Transition Approach and Plan (basic)

    Data Archiving Requirements (advanced)

    List of Training Modules and Attendees (basic)

    Internal Training Capabilities (advanced)

    Training Milestones and Deadlines (basic)

    4 Provide Preparation Materials to the Vendor and Implementation Professionals

    The Purpose

    Compile the data collected and the functional requirements defined so that they can be provided to the vendor and/or consultant before the implementation engagement.

    Key Benefits Achieved

    Deliverables that record the outputs of your preparation and can be provided to vendors/consultants before the implementation engagement.

    Ensures that the customer is an active and equal partner during the deployment by having the customer prepare their material and initiate communication.

    Vendors and/or consultants have a clear understanding of the customer’s needs and expectations from the beginning.

    Activities

    4.1 Collect, review, and finalize the functional requirements.

    4.2 Compile a functional requirements and data package to provide to the vendor and/or consultants.

    4.3 Discuss how proposed changes to the functional requirements will be reviewed and decided.

    Outputs

    PPM Suite Functional Requirements Documents

    PPM Deployment Data Workbook

    Transform Your Field Technical Support Services

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    • Parent Category Name: Strategy and Organizational Design
    • Parent Category Link: /strategy-and-organizational-design
    • Redefine the role of deskside or field technicians as demand for service evolves and service teams are restructured.
    • Redefine the role of onsite technicians when the help desk is outsourced.
    • Define requirements when supplementing with outsourced field services teams.
    • Identify barriers to streamlining processes.
    • Look for opportunities to streamline processes and better use technical teams.
    • Communicate and manage change to support roles.

    Our Advice

    Critical Insight

    • Service needs to be defined in a way that considers the organizational need for local, hands-on technicians, the need for customer service, and the need to make the best use of resources that you have.
    • Service level agreements will need to be refined and metrics will need to be analyzed for capacity and skilled planning.
    • Organizational change management will be key to persuade users to engage with the technical team in a way that supports the new structure.

    Impact and Result

    • Many IT teams are struggling to keep up with demand while trying to refocus on customer service. With more remote workers than ever, organizations who have traditionally provided desktop and field services have been revaluating the role of the field service technicians. Add in the price of fuel, and there is even more reason to assess the support model.
    • Often changes to the way IT does support, especially if moving centralized support to an outsourcer, is met with resistance by end users who don’t see the value of phoning someone else when their local technician is still available to problem solve. This speaks to the need to ensure the central group is providing value to end users as well as the technical team.
    • With the challenges of finding the right number of technicians with the right skills, it’s time to rethink remote support and how that can be used to train and upskill the people you have. And it’s time to think about how to use field services tools to make the best use of your technician’s time.

    Transform Your Field Technical Support Services Research & Tools

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

    1. Transform Field Services Guide – A brief deck that outlines key migration steps to improve our remote client support services.

    This blueprint will help you:

    • Transform Your Field Technical Services Storyboard

    2. Transform Field Services Template – A template to create a transformation proposal.

    This template will help you to build your proposal to transform your field services.

    • Proposal to Transform Field Technical Services Template
    [infographic]

    Further reading

    Transform Your Field Technical Support Services

    Improve service and reduce costs through digital transformation.

    Analyst Perspective

    Improve staffing challenges through digital transformation.

    Many IT teams are struggling to keep up with demand while trying to refocus on customer service. With more remote workers than ever, organizations who have traditionally provided desktop and field services have been revaluating the role of the field service technicians. Add in the price of fuel, and there is even more reason to assess the support model. Often changes to the way IT does support, especially if moving centralized support to an outsourcer, is met with resistance by end users who don’t see the value of phoning someone else when their local technician is still available to problem solve. This speaks to the need to ensure the central group is providing value to end users as well as the technical team. With the challenges of finding the right number of technicians with the right skills, it’s time to rethink remote support and how that can be used to train and upskill the people you have. And it’s time to think about how to use field services tools to make the best use of your technician’s time.

    The image contains a picture of Sandi Conrad.

    Sandi Conrad

    Principal Research Director

    Infrastructure & Operations Practice

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    With remote work becoming a normal employee offering for many organizations, self-serve/self-solve becoming more prominent, and a common call out to improve customer service, there is a need to re-examine the way many organizations are supplying onsite support. For organizations with a small number of offices, a central desk with remote tools may be enough or can be combined with a concierge service or technical center, but for organizations with multiple offices it becomes difficult to provide a consistent level of service for all customers unless there is a team onsite for each location. This may not be financially possible if there isn’t enough work to keep a technical team busy full-time.

    Common Obstacles

    Where people have a choice between calling a central phone number or talking to the technician down the hall, the in-person experience often wins out. End users may resist changes to in-person support as work is rerouted to a centralized group by choosing to wait for their favorite technician to show up onsite rather than reporting issues centrally. This can make the job of the onsite technician more challenging as they need to schedule time in every visit for unplanned work. And where technicians need to support multiple locations, travel needs to be calculated into lost technician time and costs.

    Info-Tech’s Approach

    • Service needs to be defined in a way that considers the organizational need for local, hands-on technicians, the need for customer service, and the need to make the best use of resources that you have.
    • Service-level agreements will need to be refined and metrics will need to be analyzed for capacity and skilled planning.
    • Organizational change management will be key to persuade users to engage with the technical team in a way that supports the new structure.

    Info-Tech Insight

    Improving process will be helpful for smaller teams, but as teams expand or work gets more complicated, investment in appropriate tools to support field services technicians will enable them to be more efficient, reduce costs, and improve outcomes when visits are warranted.

    Your challenge

    This research is designed to help organizations who are looking to:

    • Redefine the role of deskside or field technicians as demand for service evolves and service teams are restructured.
    • Redefine the role of onsite technicians when the help desk is outsourced.
    • Define requirements when supplementing with outsourced field services teams.
    • Identify barriers to streamlining processes.
    • Look for opportunities to streamline processes and better use technical teams.
    • Communicate and manage change to support roles.

    With many companies having new work arrangements for users, where remote work may be a permanent offering or if your digital transformation is well underway, this provides an opportunity to rethink how field support needs to be done.

    What is field services?

    Field services is in-person support delivered onsite at one or more locations. Management of field service technicians may include queue management, scheduling service and maintenance requests, triaging incidents, dispatching technicians, ordering parts, tracking job status, and billing.

    The image contains a diagram to demonstrate what may be supported by field services and what should be supported by field services.

    What challenges are you trying to solve within your field services offering?

    Focus on the reasons for the change to ensure the outcome can be met. Common goals include improved customer service, better technician utilization, and increased response time and stability.

    • Discuss specific challenges the team feels are contributing to less-than-ideal customer service.
    • Does the team have the skills, knowledge, and tools they need to be successful? Technicians may be solving issues with the customer looking over their shoulder. Having quick access to knowledge articles or to subject matter experts who can provide deeper expertise remotely may be the difference between a single visit to resolve or multiple or extended visits.
    • What percentage of tickets would benefit from triage and troubleshooting done remotely before sending a technician onsite? Where there are a high number of no-fault-found visits, this may be imperative to improving technician availability.
    • Review method for distribution of tickets, including batching criteria and dispatching of technicians. Are tickets being dispatched efficiently? By location and/or priority? Is there an attempt to solve more tickets centrally? Should there be? What SLA adjustment is reasonable for onsite visits?
    • Has the support value been defined?
    The image contains a graph to demonstrate Case Casuals in Field Services, where the highest at 55% is break/fix.

    Field services will see the biggest improvements through technology updates

    Customer Intake

    Provide tools for scheduling technicians, self-serve and self- or assisted-solve through ITSM or CRM-based portal and visual remote tools.

    The image contains a picture to demonstrate the different field services.

    Triage and Troubleshoot

    Upgrade remote tools to visual remote solutions to troubleshoot equipment as well as software. Eliminate no-fault-found visits and improve first-time fix rate by visually inspecting equipment before technician deployments.

    Improve Communications

    FSM GPS and SMS updates can be set to notify customers when a technician is close by and can be used for customer sign-off to immediately update service records and launch survey or customer billing where applicable.

    Schedule Technicians

    Field service management (FSM) ITSM modules will allow skills-based scheduling for remote technicians and determine best route for multi-site visits.

    Enable Work From Anywhere

    FSM mobile applications can provide technicians with daily schedules, turn-by-turn directions, access to inventory, knowledge articles, maintenance, and warranty and asset records. Visual remote captures service records and enables access to SMEs.

    Manage Expectations

    Know where technicians are for routing to emergency calls and managing workload using field service management solutions with GPS.

    Digital transformation can dramatically improve customer and technician experience

    The image contains an arrown that dips and rises dramatically to demonstrate how digital transformation can dramatically increase customer and technician experience.
    Sources: 1 - TechSee, 2019; 2 - Glartek; 3 - Geoforce; 4 - TechSee, 2020

    Improve technician utilization and scheduling with field services management software

    Field services management (FSM) software is designed to improve scheduling of technicians by skills and location while reducing travel time and mileage. When integrated with ITSM software, the service record is transferred to the field technician for continuity and to prepare for the job. FSM mobile apps will enable technicians to receive schedule updates through the day and through GPS update the dispatcher as technicians move from site to site.

    FSM solutions are designed to manage large teams of technicians, providing automated dispatch recommendations based on skills matching and proximity.

    Routes can be mapped to reduce travel time and mileage and adjusted to respond to emergency requests by technician skills or proximity. Automation will provide suggestions for work allocation.

    Spare parts management may be part of a field services solution, enabling technicians to easily identify parts needed and update real-time inventory as parts are deployed.

    Push notifications in real-time streamline communications from the field to the office, and enable technicians to close service records while in the field.

    Dispatchers can easily view availability, assign work orders, attach notes to work orders, and immediately receive updates if technicians acknowledge or reject a job.

    Maintenance work can be built into online checklists and forms to provide a technician with step-by-step instructions and to ensure a complete review.

    Skills and location-based routing allow dispatchers to be able to see closest tech for emergency deployments.

    Improve time to resolve while cutting costs by using visual remote support tools

    Visual remote support tools enable live video sessions to clearly see what the client or field service technician sees, enabling the experts to provide real-time assistance where the experts will provide guidance to the onsite person. Getting a view of the technology will reduce issues with getting the right parts, tools, and technicians onsite and dramatically reduce second visits.

    Visual remote tools can provide secure connections through any smartphone, with no need for the client to install an application.

    The technicians can take control of the camera to zoom in, turn on the flashlight for extra lighting, take photos, and save video directly to the tickets.

    Optical character recognition allows automatic text capture to streamline process to check warranty, recalls, and asset history.

    Visual, interactive workflows enhance break/fix and inspections, providing step-by-step guidance visual evidence and using AI and augmented reality to assess the images, and can provide next steps by connecting to a visual knowledgebase.

    Integration with field service management tools will allow information to easily be captured and uploaded immediately into the service record.

    Self-serve is available through many of these tools, providing step-by-step instructions using visual cues. These solutions are designed to work in low-bandwidth environments, using Wi-Fi or cellular service, and sessions can be started with a simple link sent through SMS.

    Implement Lean Management Practices That Work

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    • Parent Category Name: Performance Measurement
    • Parent Category Link: /performance-measurement
    • Service delivery teams do not measure, or have difficulty demonstrating, the value they provide.
    • There is a lack of continuous improvement.
    • There is low morale within the IT teams leading to low productivity.

    Our Advice

    Critical Insight

    • Create a problem-solving culture. Frequent problem solving is the differentiator between sustaining Lean or falling back to old management methods.
    • Commit to employee growth. Empower teams to problem solve and multiply your organizational effectiveness.

    Impact and Result

    • Apply Lean management principles to IT to create alignment and transparency and drive continuous improvement and customer value.
    • Implement huddles and visual management.
    • Build team capabilities.
    • Focus on customer value.
    • Use metrics and data to make better decisions.
    • Systematically solve problems and improve performance.
    • Develop an operating rhythm to promote adherence to Lean.

    Implement Lean Management Practices That Work Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how a Lean management system can help you increase transparency, demonstrate value, engage your teams and customers, continuously improve, and create alignment.

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

    1. Understand Lean concepts

    Understand what a Lean management system is, review Lean philosophies, and examine simple Lean tools and activities.

    • Implement Lean Management Practices That Work – Phase 1: Understand Lean Concepts
    • Lean Management Education Deck

    2. Determine the scope of your implementation

    Understand the implications of the scope of your Lean management program.

    • Implement Lean Management Practices That Work – Phase 2: Determine the Scope of Your Implementation
    • Lean Management Scoping Tool

    3. Design huddle board

    Examine the sections and content to include in your huddle board design.

    • Implement Lean Management Practices That Work – Phase 3: Design Huddle Board
    • Lean Management Huddle Board Template

    4. Design Leader Standard Work and operating rhythm

    Determine the actions required by leaders and the operating rhythm.

    • Implement Lean Management Practices That Work – Phase 4: Design Leader Standard Work and Operating Rhythm
    • Leader Standard Work Tracking Template
    [infographic]

    Workshop: Implement Lean Management Practices That Work

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

    1 Understand Lean Concepts

    The Purpose

    Understand Lean management.

    Key Benefits Achieved

    Gain a common understanding of Lean management, the Lean management thought model, Lean philosophies, huddles, visual management, team growth, and voice of customer.

    Activities

    1.1 Define Lean management in your organization.

    1.2 Create training materials.

    Outputs

    Lean management definition

    Customized training materials

    2 Understand Lean Concepts (Continued) and Determine Scope

    The Purpose

    Understand Lean management.

    Determine the scope of your program.

    Key Benefits Achieved

    Understand metrics and performance review.

    Understand problem identification and continuous improvement.

    Understand Kanban.

    Understand Leader Standard Work.

    Define the scope of the Lean management program.

    Activities

    2.1 Develop example operational metrics

    2.2 Simulate problem section.

    2.3 Simulate Kanban.

    2.4 Build scoping tool.

    Outputs

    Understand how to use operational metrics

    Understand problem identification

    Understand Kanban/daily tasks section

    Defined scope for your program

    3 Huddle Board Design and Huddle Facilitation Coaching

    The Purpose

    Design the sections and content for your huddle board.

    Key Benefits Achieved

    Initial huddle board design.

    Activities

    3.1 Design and build each section in your huddle board.

    3.2 Simulate coaching conversations.

    Outputs

    Initial huddle board design

    Understanding of how to conduct a huddle

    4 Design and Build Leader Standard Work

    The Purpose

    Design your Leader Standard Work activities.

    Develop a schedule for executing Leader Standard Work.

    Key Benefits Achieved

    Standard activities identified and documented.

    Sample schedule developed.

    Activities

    4.1 Identify standard activities for leaders.

    4.2 Develop a schedule for executing Leader Standard Work.

    Outputs

    Leader Standard Work activities documented

    Initial schedule for Leader Standard Work activities

    Transition Projects Over to the Service Desk

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    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk
    • IT suffers from a lack of strategy and plan for transitioning support processes to the service desk.
    • Lack of effective communication between the project delivery team and the service desk, leads to an inefficient knowledge transfer to the service desk.
    • New service is not prioritized and categorized, negatively impacting service levels and end-user satisfaction.

    Our Advice

    Critical Insight

    Make sure to build a strong knowledge management strategy to identify, capture, and transfer knowledge from project delivery to the service desk.

    Impact and Result

    • Build touchpoints between the service desk and project delivery team and make strategic points in the project lifecycles to ensure service support is done effectively following the product launch.
    • Develop a checklist of action items on the initiatives that should be done following project delivery.
    • Build a training plan into the strategy to make sure service desk agents can handle tickets independently.

    Transition Projects Over to the Service Desk Research & Tools

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

    1. Transition Projects Over to the Service Desk – A guideline to walk you through transferring project support to the service desk.

    This storyboard will help you craft a project support plan to document information to streamline service support.

    • Transition Projects Over to the Service Desk Storyboard

    2. Project Handover and Checklist – A structured document to help you record information on the project and steps to take to transfer support.

    Use these two templates as a means of collaboration with the service desk to provide information on the application/product, and steps to take to make sure there are efficient service processes and knowledge is appropriately transferred to the service desk to support the service.

    • Project Handover Template
    • Service Support Transitioning Checklist
    [infographic]

    Further reading

    Transition Projects Over to the Service Desk

    Increase the success of project support by aligning your service desk and project team.

    Analyst Perspective

    Formalize your project support plan to shift customer service to the service desk.

    Photo of Mahmoud Ramin, Senior Research Analyst, Infrastructure and Operations, Info-Tech Research Group

    As a service support team member, you receive a ticket from an end user about an issue they’re facing with a new application. You are aware of the application release, but you don’t know how to handle the issue. So, you will need to either spend a long time investigating the issue via peer discussion and research or escalate it to the project team.

    Newly developed or improved services should be transitioned appropriately to the support team. Service transitioning should include planning, coordination, and communication. This helps project and support teams ensure that upon a service failure, affected end users receive timely and efficient customer support.

    At the first level, the project team and service desk should build a strategy around transitioning service support to the service desk by defining tasks, service levels, standards, and success criteria.

    In the second step, they should check the service readiness to shift support from the project team to the service desk.

    The next step is training on the new services via efficient communication and coordination between the two parties. The project team should allocate some time, according to the designed strategy, to train the service desk on the new/updated service. This will enable the service desk to provide independent service handling.

    This research walks you through the above steps in more detail and helps you build a checklist of action items to streamline shifting service support to the service desk.

    Mahmoud Ramin, PhD

    Senior Research Analyst
    Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • IT suffers from a lack of strategy and planning for transitioning support processes to the service desk.
    • Lack of effective communication between the project delivery team and the service desk leads to an inefficient knowledge transfer to the service desk.
    • New service is not prioritized and categorized, negatively impacting service levels and end-user satisfaction.

    Common Obstacles

    • Building the right relationship between the service desk and project team is challenging, making support transition tedious.
    • The service desk is siloed; tasks and activities are loosely defined. Service delivery is inconsistent, which impacts customer satisfaction.
    • Lack of training on new services forces the service desk to unnecessarily escalate tickets to other levels and delays service delivery.

    Info-Tech’s Approach

    • Build touchpoints between the service desk and project delivery team and make strategic points in the project lifecycles to ensure service support is done effectively following the product launch.
    • Develop a checklist of action items on the initiatives that should be done following project delivery.
    • Build a training plan into the strategy to make sure service desk agents can handle tickets independently.

    Info-Tech Insight

    Make sure to build a strong knowledge management strategy to identify, capture, and transfer knowledge from project delivery to the service desk.

    A lack of formal service transition process presents additional challenges

    When there is no formal transition process following a project delivery, it will negatively impact project success and customer satisfaction.

    Service desk team:

    • You receive a request from an end user to handle an issue with an application or service that was recently released. You are aware of the features but don’t know how to solve this issue particularly.
    • You know someone in the project group who is familiar with the service, as he was involved in the project. You reach out to him, but he is very busy with another project.
    • You get back to the user to let them know that this will be done as soon as the specialist is available. But because there is no clarity on the scope of the issue, you cannot tell them when this will be resolved.
    • Lack of visibility and commitment to the service recovery will negatively impact end-user satisfaction with the service desk.

    Project delivery team:

    • You are working on an exciting project, approaching the deadline. Suddenly, you receive a ticket from a service desk agent asking you to solve an incident on a product that was released three months ago.
    • Given the deadline on the current project, you are stressed, thinking about just focusing on the projects. On the other hand, the issue with the other service is impacting multiple users and requires much attention.
    • You spend extra time handling the issue and get back to your project. But a few days later the same agent gets back to you to take care of the same issue.
    • This is negatively impacting your work quality and causing some friction between the project team and the service desk.

    Link how improvement in project transitioning to the service desk can help service support

    A successful launch can still be a failure if the support team isn't fully informed and prepared.

    • In such a situation, the project team sends impacted users a mass notification without a solid plan for training and no proper documentation.
    • To provide proper customer service, organizations should involve several stakeholder groups to collaborate for a seamless transition of projects to the service desk.
    • This shift in service support takes time and effort; however, via proper planning there will be less confusion around customer service, and it will be done much faster.
      • For instance, if AppDev is customizing an ERP solution without considering knowledge transfer to the service desk, relevant tickets will be unnecessarily escalated to the project team.
    • On the other hand, the service desk should update configuration items (CIs) and the service catalog and related requests, incidents, problems, and workarounds to the relevant assets and configurations.
    • In this transition process, knowledge transfer plays a key role. Users, the service desk, and other service support teams need to know how the new application or service works and how to manage it when an issue arises.
    • Without a knowledge transfer, service support will be forced to either reinvent the wheel or escalate the ticket to the development team. This will unnecessarily increase the time for ticket handling, increase cost per ticket, and reduce end-user satisfaction.

    Info-Tech Insight

    Involve the service desk in the transition process via clear communication, knowledge transfer, and staff training.

    Integrate the service desk into the project management lifecycle for a smooth transition of service support

    Service desk involvement in the development, testing, and maintenance/change activity steps of your project lifecycle will help you logically define the category and priority level of the service and enable service level improvement accordingly after the project goes live.

    Project management lifecycle

    As some of the support and project processes can be integrated, responsibility silos should be broken

    Processes are done by different roles. Determine roles and responsibilities for the overlapping processes to streamline service support transition to the service desk.

    The project team is dedicated to projects, while the support team focuses on customer service for several products.

    Siloed responsibilities:

    • Project team transfers the service fully to the service desk and leaves technicians alone for support without a good knowledge transfer.
    • Specialists who were involved in the project have deep knowledge about the product, but they are not involved in incident or problem management.
    • Service desk was not involved in the planning and execution processes, which leads to lack of knowledge about the product. This leaves the support team with some vague knowledge about the service, which negatively impacts the quality of incident and problem management.

    How to break the silos:

    Develop a tiered model for the service desk and include project delivery in the specialist tier.

    • Use tier 1 (service desk) as a single point of contact to support all IT services.
    • Have tier 2/3 as experts in technology. These agents are a part of the project team. They are also involved in incident management, root-cause analysis, and change management.

    Determine the interfaces

    At the project level, get a clear understanding of support capabilities and demands, and communicate them to the service desk to proactively bring them into the planning step.

    The following questions help you with an efficient plan for support transition

    Questions for support transition

    Clear responsibilities help you define the level of involvement in the overlapping processes

    Conduct a stakeholder analysis to identify the people that can help ensure the success of the transition.

    Goal: Create a prioritized list of people who are affected by the new service and will provide support.

    Why is stakeholder analysis essential?

    Why is stakeholder analysis essential

    Identify the tasks that are required for a successful project handover

    Embed the tasks that the project team should deliver before handing support to the service desk.

    Task/Activity Example

    Conduct administrative work in the application

    • New user setup
    • Password reset

    Update documentation

    • Prepare for knowledge transfer>
    Service request fulfillment/incident management
    • Assess potential bugs
    Technical support for systems troubleshooting
    • Configure a module in ITSM solution

    End-user training

    • FAQs
    • How-to questions
    Service desk training
    • Train technicians for troubleshooting

    Support management (monitoring, meeting SLAs)

    • Monitoring
    • Meeting SLAs

    Report on the service transitioning

    • Transition effectiveness
    • Four-week warranty period
    Ensure all policies follow the transition activities
    • The final week of transition, the service desk will be called to a meeting for final handover of incidents and problems

    Integrate project description and service priority throughout development phase

    Include the service desk in discussions about project description, so it will be enabled to define service priority level.

    • Project description will be useful for bringing the project forward to the change advisory board (CAB) for approval and setting up the service in the CMDB.
    • Service priority is used for adding the next layer of attributes to the CMDB for the service and ensuring the I&O department can set up systems monitoring.
    • This should be done early in the process in conjunction with the project manager and business sponsors.
    • It should be done as the project gets underway and the team can work on specifically where that milestone will be in each project.
    • What to include in the project description:
      • Name
      • Purpose
      • Publisher
      • Departments that will use the service
      • Service information
      • Regulatory constrains
    • What to include in the service priority information:
      • Main users
      • Number of users
      • Service requirements
      • System interdependencies
      • Criticality of the dependent systems
      • Service category
      • Service SME and support backup
      • System monitoring resources
      • Alert description and flow

    Document project description and service priority in the Project Handover Template.

    Embed service levels and maintenance information

    Include the service desk in discussions about project description, so it will be enabled to define service priority level.

    • Service level objectives (SLOs) will be added to CMDB to ensure the product is reviewed for business continuity and disaster recovery and that the service team knows what is coming.
    • This step will be good to start thinking about training agents and documenting knowledgebase (KB) articles.
    • What to include in SLO:
      • Response time
      • Resolution time
      • Escalation time
      • Business owner
      • Service owner
      • Vendor(s)
      • Vendor warranties
      • Data archiving/purging
      • Availability list
      • Business continuity/recovery objectives
      • Scheduled reports
      • Problem description
    • Maintenance and change requirements: You should add maintenance windows to the change calendar and ensure the maintenance checklist is added to KB articles and technician schedules.
    • What to include in maintenance and change requirements:
      • Scheduled events for the launch
      • Maintenance windows
      • Module release
      • Planned upgrades
      • Anticipated intervals for changes and trigger points
      • Scheduled batches

    Document service level objectives and maintenance in the Project Handover Template.

    Enhance communication between the project team and the service desk

    Communicating with the service desk early and often will ensure that agents fully get a deep knowledge of the new technology.

    Transition of a project to the service desk includes both knowledge transfer and execution transfer.

    01

    Provide training and mentoring to ensure technical knowledge is passed on.

    02

    Transfer leadership responsibilities by appointing the right people.

    03

    Transfer support by strategically assigning workers with the right technical and interpersonal skills.

    04

    Transfer admin rights to ensure technicians have access rights for troubleshooting.

    05

    Create support and a system to transfer work process. For example, using an online platform to store knowledge assets is a great way for support to access project information.

    Info-Tech Insight

    A communication plan and executive presentation will help project managers outline recommendations and communicate their benefits.

    Communicate reasons for projects and how they will be implemented

    Proactive communication of the project to affected stakeholders will help get their buy-in for the new technology and feedback for better support.

    Leaders of successful change spend considerable time developing a powerful change message, i.e. a compelling narrative that articulates the desired end state, that makes the change concrete and meaningful to staff.

    The message should:

    • Explain why the change or new application is needed.
    • Summarize what will stay the same.
    • Highlight what will be left behind.
    • Emphasize what is being changed due to the new or updated product.
    • Explain how the application will be implemented.
    • Address how this will affect various roles in the organization.
    • Discuss the staff’s role in making the project successful.
    • Communicate the supporting roles in the early implementation stages and later on.

    Five elements of communicating change

    Implement knowledge transfer to the service desk to ensure tickets won’t be unnecessarily escalated

    The support team usually uses an ITSM solution, while the project team mostly uses a project management solution. End users’ support is done and documented in the ITSM tool.

    Even terminologies used by these teams are different. For instance, service desk’s “incident” is equivalent to a project manager’s “defect.” Without proper integration of the development and support processes, the contents get siloed and outdated over time.

    Potential ways to deal with this challenge:

    Use the same platform for both project and service support

    This helps you document information in a single platform and provides better visibility of the project status to the support team as well. It also helps project team find out change-related incidents for a faster rollback.

    Note: This is not always feasible because of the high costs incurred in purchasing a new application with both ITSM and PM capabilities and the long time it takes for implementing such a solution.

    Integrate the PM and ITSM tools to improve transition efficiency

    Note: Consider the processes that should be integrated. Don’t integrate unnecessary steps in the development stage, such as design, which will not be helpful for support transition.

    Build a training plan for the new service

    When a new system is introduced or significant changes are applied, describe the steps and timeline for training.

    Training the service desk has two-fold benefits:
    Improve support:
    • Support team gets involved in user acceptance testing, which will provide feedback on potential bugs or failures in the technology.
    • Collaboration between specialists and tier 1 technicians will allow the service desk to gather information for handling potential incidents on the application.
    Shift-left enablement:
    • At the specialist level, agents will be more focused on other projects and spend less time on application issues, as they are mostly handled by the service desk.
    • As you shift service support left:
      • Cost per ticket decreases as more of the less costly resources are doing the work.
      • Average time to resolve decreases as the ticket is handled by the service desk.
      • End-user satisfaction increases as they don’t need to wait long for resolution.

    Who resolves the incident

    For more information about shift-left enablement, refer to InfoTech’s blueprint Optimize the Service Desk With a Shift-Left Strategy.

    Integrate knowledge management in the transition plan

    Build a knowledge transfer process to streamline service support for the newly developed technology.

    Use the following steps to ensure the service desk gets trained on the new project.

    1. Identify learning opportunities.
    2. Prioritize the identified opportunities based on:
    • Risk of lost knowledge
    • Impact of knowledge on support improvement
  • Define ways to transfer knowledge from the project team to the service desk. These could be:
    • One-on-one meetings
    • Mentoring sessions
    • Knowledgebase articles
    • Product road test
    • Potential incident management shadowing
  • Capture and transfer knowledge (via the identified means).
  • Support the service desk with further training if the requirement arises.
  • Info-Tech Insight

    Allocate knowledge transfer within ticket handling workflows. When incident is resolved by a specialist, they will assess if it is a good candidate for technician training and/or a knowledgebase article. If so, the knowledge manager will be notified of the opportunity to assign it to a SME for training and documentation of an article.

    For more information about knowledge transfer, refer to phase 3 of Info-Tech’s blueprint Standardize the Service Desk.

    Focus on the big picture first

    Identify training functions and plan for a formal knowledge transfer

    1. Brainstorm training functions for each group.
    2. Determine the timeline needed to conduct training for the identified training topics.
    RoleTraining FunctionTimeline

    Developer/Technical Support

    • Coach the service desk on the new application
    • Document relevant KB articles
    Business Analysts
    • Conduct informational interviews for new business requirements

    Service Desk Agents

    • Conduct informational interviews
    • Shadow incident management procedures
    • Document lessons learned
    Vendor
    • Provide cross-training to support team

    Document your knowledge transfer plan in the Project Handover Template.

    Build a checklist of the transition action items

    At this stage, the project is ready to go live and support needs to be independently done by the service desk.

    Checklist of the transition action items

    Info-Tech Insight

    No matter how well training is done, specialists may need to work on critical incidents and handle emergency changes. With effective service support and transition planning, you can make an agreement between the incident manager, change manager, and project manager on a timeline to balance critical incident or emergency change management and project management and define your SLA.

    Activity: Prepare a checklist of initiatives before support transition

    2-3 hours

    Document project support information and check off each support transition initiative as you shift service support to the service desk.

    1. As a group, review the Project Handover Template that you filled out in the previous steps.
    2. Download the Service Support Transitioning Checklist, and review the items that need to be done throughout the development, testing, and deployment steps of your project.
    3. Brainstorm at what step service desk needs to be involved.
    4. As you go through each initiative and complete it, check it off to make sure you are following the agreed document for a smooth transition of service support.
    Input Output
    • Project information
    • Support information for developed application/service
    • List of transitioning initiatives
    MaterialsParticipants
    • Project Handover Template
    • Service Support Transitioning Checklist
    • Project Team
    • Service Desk Manager
    • IT Lead

    Download the Project Handover Template

    Download the Service Support Transitioning Checklist

    Define metrics to track the success of project transition

    Consider key metrics to speak the language of targeted end users.

    You won’t know if transitioning support processes are successful unless you measure their impact. Find out your objectives for project transition and then track metrics that will allow you to fulfill these goals.

    Determine critical success factors to help you find out key metrics:

    High quality of the service

    Effectiveness of communication of the transition

    Manage risk of failure to help find out activities that will mitigate risk of service disruption

    Smooth and timely transition of support to the service desk

    Efficient utilization of the shared services and resources to mitigate conflicts and streamline service transitioning

    Suggested metrics:

    • Time to fulfill requests and resolve incidents for the new project
    • Time spent training the service desk
    • Number of knowledgebase articles created by the project team
    • Percentage of articles used by the service desk that prevented ticket escalation
    • First-level resolution
    • Ratio of escalated tickets for the new project
    • Problem ticket volume for the new project
    • Average customer satisfaction with the new project support
    • SLA breach rate

    Summary of Accomplishment

    Problem Solved

    Following the steps outlined in this research has helped you build a strategy to shift service support from the project team to the service desk, resulting in an improvement in customer service and agent satisfaction.

    You have also developed a plan to break the silo between the service desk and specialists and enable knowledge transfer so the service desk will not need to unnecessarily escalate tickets to developers. In the meantime, specialists are also responsible for service desk training on the new application.

    Efficient communication of service levels has helped the project team set clear expectations for managers to create a balance between their projects and service support.

    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

    Standardize the Service Desk

    Improve customer service by driving consistency in your support approach and meeting SLAs.

    Optimize the Service Desk With a Shift-Left Strategy

    The best type of service desk ticket is the one that doesn’t exist.

    Tailor IT Project Management Processes to Fit Your Projects

    Right-size PMBOK for all of your IT projects.

    Works Cited

    Brown, Josh. “Knowledge Transfer: What it is & How to Use it Effectively.” Helpjuice, 2021. Accessed November 2022.

    Magowan, Kirstie. “Top ITSM Metrics & KPIs: Measuring for Success, Aiming for Improvement.” BMC Blogs, 2020. Accessed November 2022.

    “The Complete Blueprint for Aligning Your Service Desk and Development Teams (Process Integration and Best Practices).” Exalate, 2021. Accessed October 2022.

    “The Qualities of Leadership: Leading Change.” Cornelius & Associates, 2010. Web.

    Lead Staff through Change

    • Buy Link or Shortcode: {j2store}510|cart{/j2store}
    • member rating overall impact (scale of 10): N/A
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    • Parent Category Name: High Impact Leadership
    • Parent Category Link: /lead
    • Sixty to ninety percent of change initiatives fail, costing organizations dollars off the bottom line and lost productivity.
    • Seventy percent of change initiatives fail because of people-related issues, which place a major burden on managers to drive change initiatives successfully.
    • Managers are often too busy focusing on the process elements of change; as a result, they neglect major opportunities to leverage and mitigate staff behaviors that affect the entire team.

    Our Advice

    Critical Insight

    • Change is costly, but failed change is extremely costly. Managing change right the first time is worth the time and effort.
    • Staff pose the biggest opportunity and risk when implementing a change – managers must focus on their teams in order to maintain positive change momentum.
    • Large and small changes require the same change process to be followed but at different scales.
    • The size of a change must be measured according to the level of impact the change will have on staff, not how executives and managers perceive the change.
    • To effectively lead their staff through change, managers must anticipate staff reaction to change, develop a communication plan, introduce the change well, help their staff let go of old behaviors while learning new ones, and motivate their staff to adopt the change.

    Impact and Result

    • 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.

    Lead Staff through Change Research & Tools

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

    1. Learn how to manage people throughout the change process

    Set up a successful change adoption.

    • Storyboard: Lead Staff through Change

    2. Learn the intricacies of the change personas

    Correctly identify which persona most closely resembles individual staff members.

    • None

    3. Assess the impact of change on staff

    Ensure enough time and effort is allocated in advance to people change management.

    • Change Impact Assessment Tool

    4. Organize change communications messages for a small change

    Ensure consistency and clarity in change messages to staff.

    • Basic Business Change Communication Worksheet

    5. Organize change communications messages for a large change

    Ensure consistency and clarity in change messages to staff.

    • Advanced Business Change Description Form

    6. Evaluate leadership of the change process with the team

    Improve people change management for future change initiatives.

    • Change Debrief Questionnaire
    [infographic]

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

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

    Our Advice

    Critical Insight

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

    Impact and Result

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

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

    Start here – read the Executive Brief

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

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

    1. Manage your Adobe agreements

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

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

    Further reading

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

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

    ANALYST PERSPECTIVE

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

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

    Scott Bickley

    Research Lead, Vendor Practice

    Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

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

    This Research Will Help You:

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

    This Research Will Also Assist:

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

    This Research Will Help Them:

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

    Executive summary

    Situation

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

    Complication

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

    Resolution

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

    Info-Tech Insight

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

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

    Why Adobe

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

    What to know

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

    The Future

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

    Info-Tech Insight

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

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

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

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

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

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

    Source: Adobe, 2017

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

    – Omid Razavi, Global Head of Success, ServiceNow

    Consider your route forward

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

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

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

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

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

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

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

    Info-Tech Insight

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

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

    Establish Licensing Requirements

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

    Evaluate Licensing Options

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

    Evaluate Agreement Options

    • Price
    • Discounts
    • Price protection
    • Terms and conditions

    Purchase and Manage Licenses

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

    Preventive practices can help find measured value ($)

    Time and resource disruption to business if audited

    Lost estimated synergies in M&A

    Cost of new licensing

    Cost of software audit, penalties, and back support

    Lost resource allocation and time

    Third party, legal/SAM partners

    Cost of poor negotiation tactics

    Lost discount percentage

    Terms and conditions improved

    Explore Adobe licensing and optimize spend – project overview

    Establish Licensing Requirements

    Evaluate Licensing Options

    Evaluate Agreement Options

    Purchase and Manage Licenses

    Best-Practice Toolkit

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

    Guided Implementations

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

    PHASE 1

    Manage Your Adobe Agreements

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Managing Adobe Contracts

    Proposed Time to Completion: 3-6 weeks

    Step 1.1: Establish Licensing Requirements

    Start with a kick-off call:

    • Assess the current state.
    • Determine licensing position.

    Then complete these activities…

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

    With these tools & templates:

    Adobe ETLA Deployment Forecast

    Step 1.2: Determine Licensing Options

    Review findings with analyst:

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

    Then complete these activities…

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

    With these tools & templates:

    Adobe ETLA vs. VIP Pricing Table

    Adobe ETLA Forecasted Costs and Benefits

    Step 1.3: Purchase and Manage Licenses

    Review findings with analyst:

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

    Then complete these activities…

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

    With these tools & templates:

    Adobe ETLA Deployment Forecast

    Adobe’s Cloud – Snapshot of what has changed

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

    Info-Tech Insight

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

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

    ETLA

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

    Adobe Cloud Bundling

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

    Custom Bundling

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

    Higher and Public Education

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

    Info-Tech Insight

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

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

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

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

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

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

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

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

    Is the ETLA or VIP option better for your organization?

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

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

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

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

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

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

    Why subscription model?

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

    Key Characteristics:

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

    Key things to know:

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

    Which products are in the Creative Cloud bundle?

    Adobe Acrobat® XI Pro

    Adobe After Effects® CC

    Adobe Audition® CC

    Adobe Digital Publishing Suite, Single Edition

    Adobe InDesign® CC

    Adobe Dreamweaver® CC

    Adobe Edge Animate

    Adobe Edge Code preview

    Adobe Edge Inspect

    Adobe Photoshop CC

    Adobe Edge Reflow preview

    Adobe Edge Web Fonts

    Adobe Extension Manager

    ExtendScript Toolkit

    Adobe Fireworks® CS6

    Adobe Flash® Builder® 4.7 Premium Edition

    Adobe Flash Professional CC

    Adobe Illustrator® CC

    Adobe Prelude® CC

    Adobe Premiere® Pro CC

    Adobe Scout

    Adobe SpeedGrade® CC

    Adobe Muse CC

    Adobe Photoshop Lightroom 6

    Adobe offers different solutions for teams vs. enterprise licensing

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

    Bundle Name

    Target Customer

    Included Applications

    Features

    CC (for Individuals)

    Individual users

    The individual chooses

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

    CC for Teams (CCT)

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

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

    Everything that CC (for individuals) does, plus

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

    CC for Enterprise (CCE)

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

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

    Everything that CCT does, plus

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

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

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

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

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

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

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

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

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

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

    Follow these steps in your transition to Creative Cloud.

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

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

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

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

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

    Source: The ITAM Review

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

    Acquiring Adobe Software

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

    Most common purchasing models

    Points for consideration

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

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

    B-lay

    CLP and TLP

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

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

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

    VIP and ETLA

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

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

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

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

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

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

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

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

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

    ☑ Technical support is included in the ETLA.

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

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

    B-lay

    ETLA recommendations

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

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

    Prepare for Adobe’s true-up process

    How the true-up process works

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

    Higher-education specific

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

    Info-Tech Insight

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

    Audits and software asset management with Adobe

    Watch out for:

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

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

    Determine License Entitlements

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

    Gather Deployment Information

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

    Determine Effective License Position

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

    Plan Changes to License Position

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

    Adobe Genuine Software Integrity Service

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

    Detailed list of Adobe licensing contract types

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

    Option

    What is it?

    What’s included?

    For

    Term

    CLP (Cumulative Licensing Program)

    10,000 plus points, support and maintenance optional

    Select Adobe perpetual desktop products

    Business

    2 years

    EA (Adobe Enterprise Agreement)

    100 licenses plus maintenance and support for eligible Adobe products

    All applications

    100+ users requirement

    3 years

    EEA (Adobe Enterprise Education Agreement)

    Creative Cloud enterprise agreement for education establishments

    Creative Cloud applications without services

    Education

    1 or 2 years

    ETLA (Enterprise Term License Agreement)

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

    All Creative Cloud applications

    Large enterprise companies

    3 years

    K-12 – Enterprise Agreement

    Enterprise agreement for primary and secondary schools

    Creative Cloud applications without services

    Education

    1 year

    K-12 – School Site License

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

    Creative Cloud applications without services

    Education

    1 year

    TLP (Transactional Licensing Program)

    Agreement for SMBs that want volume licensing bonuses

    Perpetual desktop products only

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

    N/A

    Upgrade Plan

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

    Dependent on the existing perpetual estate

    Anyone

    N/A

    VIP (Value Incentive Plan)

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

    Creative Cloud of teams

    Business, government, and education

    Insight breakdown

    Insight 1

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

    Insight 2

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

    Insight 3

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

    Summary of accomplishment

    Knowledge Gained

    • The key pieces of licensing information that should be gathered about the current state of your own organization.
    • An in-depth understanding of the required licenses across all of your products.
    • Clear methodology for selecting the most effective contract type.
    • Development of measurable, relevant metrics to help track future project success and identify areas of strength and weakness within your licensing program.

    Processes Optimized

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

    Deliverables Completed

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

    Related Info-Tech Research

    Take Control of Microsoft Licensing and Optimize Spend

    Create an Effective Plan to Implement IT Asset Management

    Establish an Effective System of Internal IT Controls to Mitigate Risks

    Optimize Software Asset Management

    Take Control of Compliance Improvement to Conquer Every Audit

    Cut PCI Compliance and Audit Costs in Half

    Bibliography

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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    • 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

    Build a Better Manager

    • Buy Link or Shortcode: {j2store}603|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: Train & Develop
    • Parent Category Link: /train-and-develop
    • Management skills training is needed, but organizations are struggling to provide training that makes a long-term difference in the skills managers actually use in their day to day.
    • Many training programs are ineffective because they offer the wrong content, deliver it in a way that is not memorable, and are not aligned with the IT department’s business objectives.

    Our Advice

    Critical Insight

    • More of the typical manager training is not enough to solve the problem of underprepared first-time IT managers.
    • You must overcome the key pitfalls of ineffective training to deliver training that is better than the norm.
    • Offer tailored training that focuses on skill building and is aligned with measurable business goals to make your manager training a tangible success.

    Impact and Result

    Use Info-Tech’s tactical, practical training materials to deliver training that is:

    • Specifically tailored to first-time IT managers.
    • Designed around practical application of new skills.
    • Aligned with your department’s business goals.

    Build a Better Manager Research & Tools

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

    1. Build a Better Manager Capstone Deck – This deck will guide you through identifying the critical skills your managers need to succeed and planning out a training program tailored to your team and organization.

    This deck presents a behind-the-scenes explanation for the training materials, enabling a facilitator to deliver the training.

    • Build a Better Manager – Phases 1-3

    2. Facilitation Guides – These ready-to-deliver presentation decks span 8 modules. Each module covers a key management skill. The modules can be delivered independently or as a series.

    The modules are complete with presentation slides, speaker’s notes, and accompanying participant workbooks and provide everything you need to deliver the training to your team.

    • Accountability Facilitation Guide
    • Coaching and Feedback Facilitation Guide
    • Communicate Effectively Facilitation Guide
    • Manage Conflict Constructively Facilitation Guide
    • Your Role in Decision Making Facilitation Guide
    • Master Time Facilitation Guide
    • Performance Management Facilitation Guide
    • Your Role in the Organization Facilitation Guide

    3. Participant Workbooks and Supporting Materials – Each training module comes with a corresponding participant workbook to help trainees record insights and formulate individual skill development plans.

    Each workbook is tailored to the presentation slides in its corresponding facilitation guide. Some workbooks have additional materials, such as role play scenarios, to aid in practice. Every workbook comes with example entries to help participants make the most of their training.

    • Communicate Effectively Participant Workbook
    • Performance Management Participant Workbook
    • Coaching and Feedback Participant Workbook
    • Effective Feedback Training Role Play Scenarios
    • Your Role in the Organization Participant Workbook
    • Your Role in Decision Making Participant Workbook
    • Decision Making Case Study
    • Manage Conflict Constructively Participant Workbook
    • Conflict Resolution Role Play Scenarios
    • Master Time Participant Workbook
    • Accountability Participant Workbook
    [infographic]

    Workshop: Build a Better Manager

    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 Better Manager

    The Purpose

    Attend training on the specific topics necessary for each individual management team.

    Each workshop consists of four days, one 3-hour training session per day. One module is delivered per day, selecting from the following pool of topics:

    Master Time

    Accountability

    Your Role in the Organization

    Your Role in Decision Making

    Manage Conflict Constructively

    Effective Communication

    Performance Management

    Coaching & Feedback

    Key Benefits Achieved

    Managers learn about best practices, practice their application, and formulate individual skill development plans.

    Activities

    1.1 Training on one topic per day, for four days (selected from a pool of eight possible topics)

    Outputs

    Completed workbook and action plan

    Further reading

    Build a Better Manager

    Support IT success with a solid management foundation.

    Analyst Perspective

    Training that delivers results.

    Jane Koupstova.

    Ninety-eight percent of managers say they need more training, but 93% of managers already receive some level of manager training. Unfortunately, the training typically provided, although copious, is not working. More of the same will never get you better outcomes.

    How many times have you sat through training that was so long, you had no hope of implementing half of it?

    How many times have you been taught best practices, with zero guidance on how to apply them?

    To truly support our managers, we need to rethink manager training. Move from fulfilling an HR mandate to providing truly trainee-centric instruction. Teach only the right skills – no fluff – and encourage and enable their application in the day to day.

    Jane Kouptsova
    Research Director, People & Leadership
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    IT departments often promote staff based on technical skill, resulting in new managers feeling unprepared for their new responsibilities in leading people.

    The success of your organization hinges on managers’ ability to lead their staff; by failing to equip new managers adequately, you are risking the productivity of your entire department.

    Despite the fact that $14 billion is spent annually on leadership training in the US alone (Freedman, 2016), only one in ten CIOs believe their department is very effective at leadership, culture, and values (Info-Tech, 2019).

    Training programs do not deliver results due to trainee overwhelm, ineffective skill development, and a lack of business alignment.

    Use Info-Tech’s tactical, practical approach to management training to deliver training that:

    • Is specifically tailored to first-time IT managers.
    • Is designed around practical application of new skills.
    • Is aligned with your department’s business goals.
    • Equips your new managers with essential skills and foundational competencies

    Info-Tech Insight

    When it comes to manager training, more is not more. Attending training is not equal to being trained. Even good information is useless when it doesn’t get applied. If your role hasn’t required you to use your training within 48 hours, you were not trained on the most relevant skills.

    Effective managers drive effective departments by engaging their teams

    The image contains a screenshot to demonstrate effective managers.

    Engaged teams are:

    • 52% more willing to innovate*
    • 70% more likely to be at the organization a year from now**
    • 57% more likely to exceed their role’s expectations**

    Engaged teams are driven by managers:

    • 70% of team-level engagement is accounted for by managers***
    *McLean & Company; N=3,395; **McLean & Company; N=5,902; ***Gallup, 2018

    Despite the criticality of their role, IT organizations are failing at supporting new managers

    87% of middle managers wish they had more training when they were first promoted

    98% of managers say they need more training

    Source: Grovo, 2016

    IT must take notice:

    IT as an industry tends to promote staff on the basis of technical skill. As a result, new managers find themselves suddenly out of their comfort zone, tasked with leading teams using management skills they have not been trained in and, more often than not, having to learn on the job. This is further complicated because many new IT managers must go from a position of team member to leader, which can be a very complex transition.

    The truth is, many organizations do try and provide some degree of manager training, it just is not effective

    99% of companies offer management training*

    93% of managers attend it*

    $14 billion spent annually in the US on leadership training**

    Fewer than one in ten CIOs believe their IT department is highly effective at leadership, culture, and values.

    The image contains a screenshot of a pie chart that demonstrates the effectiveness of the IT department at leadership, culture, and values.

    *Grovo, 2016; **Chief Executive, 2016
    Info-Tech’s Management & Governance Diagnostic, N=337 CIOs

    There are three key reasons why manager training fails

    1. Information Overload

    Seventy-five percent of managers report that their training was too long to remember or to apply in their day to day (Grovo, 2016). Trying to cover too much useful information results in overwhelm and does not deliver on key training objectives.

    2. Limited Implementation

    Thirty-three percent of managers find that their training had insufficient follow-up to help them apply it on the job (Grovo, 2016). Learning is only the beginning. The real results are obtained when learning is followed by practice, which turns new knowledge into reliable habits.

    3. Lack of departmental alignment

    Implementing training without a clear link to departmental and organizational objectives leaves you unable to clearly communicate its value, undermines your ability to secure buy-in from attendees and executives, and leaves you unable to verify that the training is actually improving departmental effectiveness.

    Overcome those common training pitfalls with tactical solutions

    MOVE FROM

    TO

    1. Information Overload

    Timely, tailored topics

    The more training managers attend, the less likely they are to apply any particular element of it. Combat trainee overwhelm by offering highly tactical, practical training that presents only the essential skills needed at the managers’ current stage of development.

    2. Limited Implementation

    Skills-focused framework

    Many training programs end when the last manager walks out of the last training session. Ensure managers apply their new knowledge in the months and years after the training by relying on a research-based framework that supports long-term skill building.

    3. Lack of Departmental Alignment

    Outcome-based measurement

    Setting organizational goals and accompanying metrics ahead of time enables you to communicate the value of the training to attendees and stakeholders, track whether the training is delivering a return on your investment, and course correct if necessary.

    This research combats common training challenges by focusing on building habits, not just learning ideas

    Manager training is only useful if the skills it builds are implemented in the day-to-day.

    Research supports three drivers of successful skill building from training:

    Habits

    Organizational Support

    The training modules include committing to implementing new skills on the job and scheduling opportunities for feedback.

    Learning Structure

    Training activities are customizable, flexible, and accompanied by continuous learning self-evaluation.

    Personal Commitment

    Info-Tech’s methodology builds in activities that foster accountability and an attitude of continuous improvement.

    Learning

    Info-Tech Insight

    When it comes to manager training, stop thinking about learning, and start thinking about practice. In difficult situations, we fall back on habits, not theoretical knowledge. If a manager is only as good as their habits, we need to support them in translating knowledge into practice.

    This research focuses on building good management habits to drive enterprise success

    Set up your first-time managers for success by leveraging Info-Tech’s training to focus on three key areas of management:

    • Managing people as a team
    • Managing people as individuals
    • Managing yourself as a developing leader

    Each of these areas:

    • Is immediately important for a first-time manager
    • Includes practical, tactical skills that can be implemented quickly
    • Translates to departmental and organizational benefits

    Info-Tech Insight

    There is no such thing as “effective management training.” Various topics will be effective at different times for different roles. Delivering only the highest-impact learning at strategic points in your leadership development program will ensure the learning is retained and translates to results.

    This blueprint covers foundational training in three key domains of effective management

    Effective Managers

    • Self
      • Conflict & Difficult Conversations
      • Your Role in the Organization
      • Your Role in Decisions
    • Team
      • Communication
      • Feedback & Coaching
      • Performance Management
    • People
      • Master Time
      • Delegate
      • Accountability

    Each topic corresponds to a module, which can be used individually or as a series in any order.

    Choose topics that resonate with your managers and relate directly to their day-to-day tasks. Training on topics that may be useful in the future, while interesting, is less likely to generate lasting skill development.

    Info-Tech Best Practice

    This blueprint is not a replacement for formal leadership or management certification. It is designed as a practical, tactical, and foundational introduction to key management capabilities.

    Info-Tech’s training tools guide participants through successful skill building

    Practical facilitation guides equip you with the information, activities, and speaker’s notes necessary to deliver focused, tactical training to your management team.

    The participant’s workbook guides trainees through applying the three drivers of skill building to solidify their training into habits.

    Measure the effectiveness of your manager training with outcomes-focused metrics

    Linking manager training with measurable outcomes allows you to verify that the program is achieving the intended benefits, course correct as needed, and secure buy-in from stakeholders and participants by articulating and documenting value.

    Use the metrics suggested below to monitor your training program’s effectiveness at three key stages:

    Program Metric

    Calculation

    Program enrolment and attendance

    Attendance at each session / Total number enrolled in session

    First-time manager (FTM) turnover rate

    Turnover rate: Number of FTM departures / Total number of FTMs

    FTM turnover cost

    Number of departing FTMs this year * Cost of replacing an employee

    Manager Effectiveness Metric

    Calculation

    Engagement scores of FTM's direct reports

    Use Info-Tech's Employee Engagement surveys to monitor scores

    Departures as a result of poor management

    Number of times "manager relationships" is selected as a reason for leaving on an exit survey / Total number of departures

    Cost of departures due to poor management

    Number of times "manager relationships" is selected as a reason for leaving on an exit survey * Cost associated with replacing an employee

    Organizational Outcome Metric

    Calculation

    On-target delivery

    % projects completed on-target = (Projects successfully completed on time and on budget / Total number of projects started) * 100

    Business stakeholder satisfaction with IT

    Use Info-Tech’s business satisfaction surveys to monitor scores

    High-performer turnover rate

    Number of permanent, high-performing employee departures / Average number of permanent, high-performing employees

    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 challenges.

    Call #2: Review selected modules and discuss training delivery.

    Call #3: Review training delivery, discuss lessons learned. Review long-term skill development plan.

    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 1 to 3 calls over the course of several months, depending on training schedule.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4

    3-Hour Training Session

    3-Hour Training Session

    3-Hour Training Session

    3-Hour Training Session

    Activities

    Training on topic 1 (selected from a pool of 8 possible topics)

    Training on topic 2 (selected from a pool of 8 possible topics)

    Training on topic 3 (selected from a pool of 8 possible topics)

    Training on topic 4 (selected from a pool of 8 possible topics)

    Deliverables

    Completed workbook and action plan

    Completed workbook and action plan

    Completed workbook and action plan

    Completed workbook and action plan

    Pool of topics:

    • Master Time
    • Accountability
    • Your Role in the Organization
    • Your Role in Decision Making
    • Manage Conflict Constructively
    • Effective Communication
    • Performance Management
    • Coaching & Feedback

    Phase 1

    Prepare to facilitate training

    Phase 1 Phase 2 Phase 3
    • Select training topics
    • Customize the training facilitation guide for your organization
    • Deliver training modules
    • Confirm skill development action plan with trainees
    • Secure organizational support from trainees' supervisors

    Outcomes of this phase:

    • Training facilitation deck customized to organizational norms
    • Training workbook distributed to participants
    • Training dates and facilitator finalized

    1.1 Select training modules

    1-3 hours

    1. Review the module descriptions on the following slides.
    2. Identify modules that will address managers’ most pressing development needs.
      To help make this decision, consult the following:
      • Trainees’ development plans
      • Trainees’ supervisors
    Input Output
    • Module descriptions
    • Trainees’ development goals and needs
    • Prioritized list of training modules
    Materials Participants
    • Prioritized list of training modules
    • Training sponsor
    • Trainees’ supervisors

    Effective Communication

    Effective communication is the cornerstone of good management

    Effective communication can make or break your IT team’s effectiveness and engagement and a manager’s reputation in the organization. Effective stakeholder management and communication has a myriad of benefits – yet this is a key area where IT leaders continue to struggle.


    There are multiple ways in which you communicate with your staff. The tactics you will learn in this section will help you to:

    1. Understand communication styles. Every staff member has a predisposition in terms of how they give, receive, and digest information. To drive effective communication new managers need to understand the profiles of each of their team members and adjust their communicate style to suit.
    2. Understand what your team members want communicated to them and how. Communication is highly personal, and a good manager needs to clearly understand what their team wants to be informed about, their desired interactions, and when they need to be involved in decision making. They also must determine the appropriate channels for communication exchanges.
    3. Make meetings matter. Many new managers never receive training on what differentiates a good and bad meeting. Effective meetings have a myriad of benefits, but more often than not meetings are ineffective, wasting both the participants’ and organizer’s time. This training will help you to ensure that every team meeting drives a solid outcome and gets results.

    Benefits:

    • Better buy-in, understanding, and communication.
    • Improved IT reputation with the organization.
    • Improved team engagement.
    • Improved stakeholder satisfaction.
    • Better-quality decision making.
    • Improved transparency, trust, and credibility.
    • Less waste and rework.
    • Greater ability to secure support and execute the agenda.
    • More effective cooperation on activities, better quality information, and greater value from stakeholder input.
    • Better understanding of IT performance and contribution.

    Effective Communication

    Effective manager communication has a direct impact on employee engagement

    35% Of organizations say they have lost an employee due to poor internal communication (project.co, 2021).

    59% Of business leaders lose work time to mistakes caused by poor communication (Grammarly, 2022).

    $1.2 trillion Lost to US organizations as a result of poor communication (Grammarly, 2022).

    Effective Communication

    Effective communication is crucial to all parts of the business

    Operations

    Human Resources

    Finance

    Marketing

    Increases production by boosting revenue.

    Reduces the cost of litigation and increases revenue through productivity improvements.

    Reduces the cost of failing to comply with regulations.

    Increases attraction and retention of key talent.

    Effective Communication

    The Communicate Effectively Facilitation Guide covers the following topics:

    • Understand Communication Styles
    • Tailor Communication Methods to Activities
    • Make Meetings Matter

    Learning outcomes:

    Main goal: Become a better communicator across a variety of personal styles and work contexts.

    Key objectives:

    • Reaffirm why effective communication matters.
    • Work with people with different communication styles.
    • Communicate clearly and effectively within a team.
    • Make meetings more effective.

    Info-Tech Insight

    First-time IT managers face specific communication challenges that come with managing people for the first time: learning to communicate a greater variety of information to different kinds of people, in a variety of venues. Tailored training in these areas helps managers focus and fast-track critical skill development.

    Performance Management

    Meaningful performance measures drive employee engagement, which in turn drives business success

    Meaningful performance measures help employees understand the rationale behind business decisions, help managers guide their staff, and clarify expectations for employees. These factors are all strong predictors of team engagement:

    The image contains a screenshot to demonstrate the relationship and success between performance measures and employee engagement.

    Performance Management

    Clear performance measures benefit employees and the organization

    Talent Management Outcomes

    Organizational Outcomes

    Performance measure are key throughout the talent management process.

    Candidates:

    • Want to know how they will be assessed
    • Rely on measures to become productive as soon as possible

    Employees:

    • Benefit from training centered on measures that are aligned with business outcomes
    • Are rewarded, recognized, and compensated based on measurable guidelines

    Promotions and Evaluations:

    • Are more effective when informed by meaningful performance measures that align with what leadership believes is important

    Performance measures benefit the organization by:

    • Helping employees know the steps to take to improve their performance
    • Ensuring alignment between team objectives and organizational goals
    • Providing a standardized way to support decision making related to compensation, promotions, and succession planning
    • Reducing “gaming” of metrics, when properly structured, thereby reducing risk to the organization
    • Affording legal defensibility by providing an objective basis for decision making

    Performance Management

    The Performance Management Facilitation Guide covers the following topics:

    • Develop Meaningful Goals
    • Set Meaningful Metrics

    Learning outcomes:

    Main goal: Become proficient in setting, tracking, and communicating around performance management goals.

    Key objectives:

    • Understand the role of managers and employees in the performance management process.
    • Learn to set SMART, business-aligned goals for your team.
    • Learn to help employees set useful individual goals.
    • Learn to set meaningful, holistic metrics to track goal progression.
    • Understand the relationship between goals, metrics, and feedback.

    Info-Tech Insight

    Goal and metric development holds special significance for first-time IT managers because it now impacts not only their personal performance, but that of their employees and their team collectively. Training on these topics with a practical team- and employee-development approach is a focused way to build these skills.

    Coaching & Feedback

    Coaching and feedback are effective methods to influence employees and drive business outcomes

    COACHING is a conversation in which a manager asks an employee questions to guide them to solve problems themselves, instead of just telling them the answer.

    Coaching increases employee happiness, and decreases turnover.1

    Coaching promotes innovation.2

    Coaching increases employee engagement, effort and performance.3

    FEEDBACK is information about the past, given in the present, with the goal of influencing behavior or performance for the future. It includes information given for reinforcement and redirection.

    Honest feedback enhances team psychological safety.4

    Feedback increases employee engagement.5

    Feedback boosts feelings of autonomy and drives innovation.6

    1. Administrative Sciences, 2022
    2. International Review of Management and Marketing, 2020
    3. Current Psychology, 2021
    4. Quantum Workplace, 2021
    5. Issues and Perspectives in Business and Social Sciences, 2022
    6. Sustainability, 2021

    Coaching & Feedback

    The Coaching & Feedback Facilitation Guide covers the following topics:

    • The 4 A’s of Coaching
    • Effective Feedback

    Learning outcomes:

    Main goal: Get prepared to coach and offer feedback to your staff as appropriate.

    Key objectives:

    • Understand the difference between coaching and feedback and when to apply each one.
    • Learn the importance of a coaching mindset.
    • Learn effective coaching via the 4 A’s framework.
    • Understand the actions that make up feedback and the factors that make it successful.
    • Learn to deal with resistance to feedback.

    Info-Tech Insight

    First-time managers often shy away from giving coaching and feedback, stalling their team’s performance. A focused and practical approach to building these skills equips new managers with the tools and confidence to tackle these challenges as soon as they arise.

    Your Role in the Organization

    IT managers who understand the business context provide more value to the organization

    Managers who don’t understand the business cannot effect positive change. The greater understanding that IT managers have of business context, the more value they provide to the organization as seen by the positive relationship between IT’s understanding of business needs and the business’ perception of IT value.

    The image contains a screenshot of a scatter plot grid demonstrating business satisfaction with IT Understanding of Needs across Overall IT Value.

    Source: Info-Tech Research Group

    Your Role in the Organization

    Knowing your stakeholders is key to understanding your role in the business and providing value to the organization

    To understand your role in the business, you need to know who your stakeholders are and what value you and your team provide to the organization. Knowing how you help each stakeholder meet their wants needs and goals means that you have the know-how to balance experience and outcome-based behaviors. This is the key to being an attentive leader.


    The tactics you will learn in this section will help you to:

    1. Know your stakeholders. There are five key stakeholders the majority of IT managers have: management, peers, direct reports, internal users, and external users or customers. Managers need to understand the goals, needs, and wants of each of these groups to successfully provide value to the organization.
    2. Understand the value you provide to each stakeholder. Stakeholder relationship management requires IT managers to exhibit drive and support behaviors based on the situation. By knowing how you drive and support each stakeholder, you understand how you provide value to the organization and support its mission, vision, and values.
    3. Communicate the value your team provides to the organization to your team. Employees need to understand the impact of their work. As an IT manager, you are responsible for communicating how your team provides value to the organization. Mission statements on how you provide value to each stakeholder is an easy way to clearly communicate purpose to your team.

    Benefits:

    • Faster and higher growth.
    • Improved team engagement.
    • Improved stakeholder satisfaction.
    • Better quality decision making.
    • More innovation and motivation to complete goals and tasks.
    • Greater ability to secure support and execute on goals and tasks.
    • More effective cooperation on activities, better quality information, and greater value from stakeholder input.
    • Better understanding of IT performance and contribution.

    Your Role in the Organization

    The Your Role in the Organization Facilitation Guide covers the following topics:

    • Know Your Stakeholders
    • Understand the Value You Provide to the Organization
    • Develop Learnings Into Habits

    Learning outcomes:

    Main goal: Understand how your role and the role of your team serves the business.

    Key objectives:

    • Learn who your stakeholders are.
    • Understand how you drive and support different stakeholder relationships.
    • Relate your team’s tasks back to the mission, vision, and values of the organization.
    • Create a mission statement for each stakeholder to bring back to your team.

    Info-Tech Insight

    Before training first-time IT managers, take some time as the facilitator to review how you will serve the wants and needs of those you are training and your stakeholders in the organization.

    Decision Making

    Bad decisions have tangible costs, so managers must be trained in how to make effective decisions

    To understand your role in the decision-making process, you need to know what is expected of you and you must understand what goes into making a good decision. The majority of managers report they have no trouble making decisions and that they are good decision makers, but the statistics say otherwise. This ease at decision making is due to being overly confident in their expertise and an inability to recognize their own ignorance.1


    The tactics you will learn in this section will help you to:

    1. Effectively communicate decisions. Often, first-time managers are either sharing their decision recommendations with their manager or they are communicating a decision down to their team. Managers need to understand how to have these conversations so their recommendations provide value to management and top-down decisions are successfully implemented.
    2. Provide valuable feedback on decisions. Evaluating decisions is just as critical as making decisions. If decisions aren’t reviewed, there is no data or feedback to discover why a decision was a success or failure. Having a plan in place before the decision is made facilitates the decision review process and makes it easier to provide valuable feedback.
    3. Avoid common decision-making mistakes. Heuristics and bias are common decision pitfalls even senior leaders are susceptible to. By learning what the common decision-making mistakes are and being able to recognize them when they appear in their decision-making process, first-time managers can improve their decision-making ability.

    20% Of respondents say their organizations excel at decision making (McKinsey, 2018).

    87% “Diverse teams are 87% better at making decisions” (Upskillist, 2022).

    86% of employees in leadership positions blame the lack of collaboration as the top reason for workplace failures (Upskillist, 2022).

    Decision Making

    A decision-making process is imperative, even though most managers don’t have a formal one

    1. Identify the Problem and Define Objectives
    2. Establish Decision Criteria
    3. Generate and Evaluate Alternatives
    4. Select an Alternative and Implement
    5. Evaluate the Decision

    Managers tend to rely on their own intuition which is often colored by heuristics and biases. By using a formal decision-making process, these pitfalls of intuition can be mitigated or avoided. This leads to better decisions.

    First-time managers are able to apply this framework when making decision recommendations to management to increase their likelihood of success, and having a process will improve their decisions throughout their career and the financial returns correlated with them.

    Decision Making

    Recognizing personal heuristics and bias in the decision-making process improves more than just decision results

    Employees are able to recognize bias in the workplace, even when management can’t. This affects everything from how involved they are in the decision-making process to their level of effort and productivity in implementing decisions. Without employee support, even good decisions are less likely to have positive results. Employees who perceive bias:

    Innovation

    • Hold back ideas and solutions
    • Intentionally fail to follow through on important projects and tasks

    Brand Reputation

    • Speak negatively about the company on social media
    • Do not refer open positions to qualified persons in their network

    Engagement

    • Feel alienated
    • Actively seek new employment
    • Say they are not proud to work for the company

    Decision Making

    The Decision Making Facilitation Guide covers the following topics:

    • Effectively Communicate Decisions
    • Provide Valuable Feedback on Decisions
    • Avoid Common Decision-Making Mistakes

    Learning outcomes:

    Main goal: Understand how to successfully perform your role in the decision process.

    Key objectives:

    • Understand the decision-making process and how to assess decisions.
    • Learn how to communicate with your manager regarding your decision recommendations.
    • Learn how to effectively communicate decisions to your team.
    • Understand how to avoid common decision-making errors.

    Info-Tech Insight

    Before training a decision-making framework, ensure it is in alignment with how decisions are made in your organization. Alternatively, make sure leadership is on board with making a change.

    Manage Conflict Constructively

    Enable leaders to resolve conflicts while minimizing costs

    If you are successful in your talent acquisition, you likely have a variety of personalities and diverse individuals within your IT organization and in the business, which means that conflict is inevitable. However, conflict does not have to be negative – it can take on many forms. The presence of conflict in an organization can actually be a very positive thing: the ability to freely express opinions and openly debate can lead to better, more strategic decisions being made.

    The effect that the conflict is having on individuals and the work environment will determine whether the conflict is positive or counterproductive.

    As a new manager you need to know how to manage potential negative outcomes of conflict by managing difficult conversations and understanding how to respond to conflict in the workplace.


    The tactics you will learn in this section will help you to:

    1. Apply strategies to prepare for and navigate through difficult conversations.
    2. Expand your comfort level when handling conflict, and engage in constructive conflict resolution approaches.

    Benefits:

    • Relieve stress for yourself and your co-workers.
    • Save yourself time and energy.
    • Positively impact relationships with your employees.
    • Improve your team dynamic.
    • Remove roadblocks to your work and get things done.
    • Save the organization money.
    • Improve performance.
    • Prevent negative issues from reoccurring.

    Manage Conflict Constructively

    Addressing difficult conversations is beneficial to you, your people, and the organization

    When you face a difficult conversation you…

    • Relieve stress on you and your co-workers.
    • Save yourself time and energy.
    • Positively impact relationships with your employees.
    • Improve your team dynamic.
    • Remove roadblocks to your work
    • Save the organization money.
    • Improve performance.
    • Prevent negative issues from reoccurring.

    40% Of employees who experience conflict report being less motivated as a result (Acas, 2021).

    30.6% Of employees report coming off as aggressive when trying to resolve a conflict
    (Niagara Institute, 2022).

    Manage Conflict Constructively

    The Manage Conflict Constructively Facilitation Guide covers the following topics:

    • Know Your Ideal Time Mix
    • Calendar Diligence
    • Effective Delegation
    • Limit Interruptions

    Learning outcomes:

    Main goal: Effectively manage your time and know which tasks are your priority and which tasks to delegate.

    Key objectives:

    • Understand common reasons for difficult conversations.
    • Learn Info-Tech’s six-step process to best to prepare for difficult conversations.
    • Follow best practices to approach difficult conversations.
    • Learn the five approaches to conflict management.
    • Practice conflict management skills.

    Info-Tech Insight

    Conflict does not have to be negative. The presence of conflict in an organization can actually be a very positive thing: the ability to freely express opinions and openly debate can lead to better, more strategic decisions being made.

    Master Time

    Effective leaders spend their time in specific ways

    How effective leaders average their time spent across the six key roles:

    Leaders with effective time management skills spend their time across six key manager roles: strategy, projects, management, operations, innovation, and personal. While there is no magic formula, providing more value to the business starts with little practices like:

    • Spending time with the right stakeholders and focusing on the right priorities.
    • Evaluating which meetings are important and productive.
    • Benchmarking yourself against your peers in the industry so you constantly learn from them and improve yourself.


    The keys to providing this value is time management and delegation. The tactics in this section will help first-time managers to:

    1. Discover your ideal time. By analyzing how you currently spend your time, you can see which roles you are under/over using and, using your job description and performance metrics, discover your ideal time mix.
    2. Practice calendar diligence. Time blocking is an effective way to use your time, see your week, and quickly understand what roles you are spending your time in. Scheduling priority tasks first gives insight into which tasks should be delegated.
    3. Effectively delegation. Clear expectations and knowing the strengths of your team are the cornerstone to effective delegation. By understanding the information you need to communicate and identifying the best person on your team to delegate to, tasks and goals will be successfully completed.
    4. Limit interruptions. By learning how to limit interruptions from your team and your manager, you are better able to control your time and make sure your tasks and goals get completed.

    Strategy

    23%

    Projects

    23%

    Management

    19%

    Operations

    19%

    Innovation

    13%

    Personal

    4%

    Source: Info-Tech, N=85

    Master Time

    Signs you struggle with time management

    Too many interruptions in a day to stay focused.

    Too busy to focus on strategic initiatives.

    Spending time on the wrong things.

    The image contains a screenshot of a bar graph that demonstrates struggle with time management.

    Master Time

    The Master Time Facilitation Guide covers the following topics:

    • Understand Communication Styles
    • Tailor Communication Methods to Activities
    • Make Meetings Matter

    Learning outcomes:

    Main goal: Become a better communicator across a variety of personal styles and work contexts.

    Key objectives:

    • Understand how you spend your time.
    • Learn how to use your calendar effectively.
    • Understand the actions to take to successfully delegate.
    • Learn how to successfully limit interruptions.

    Info-Tech Insight

    There is a right and wrong way to manage your calendar as a first-time manager and it has nothing to do with your personal preference.

    Accountability

    Accountability creates organizational and team benefits

    Improves culture and innovation

    Improves individual performance

    Increases employee engagement

    Increases profitability

    Increases trust and productivity

    Enables employees to see how they contribute

    Increases ownership employees feel over their work and outcomes

    Enables employees to focus on activities that drive the business forward

    Source: Forbes, 2019

    Accountability

    Accountability increases employee empowerment

    Employee empowerment is the number one driver of employee engagement. The extent to which you can hold employees accountable for their own actions and decisions is closely related to how empowered they are and how empowered they feel; accountability and empowerment go hand in hand. To feel empowered, employees must understand what is expected of them, have input into decisions that affect their work, and have the tools they need to demonstrate their talents.

    The image contains a screenshot to demonstrate how accountability increases employee empowerment.

    Source: McLean & Company Engagement Database, 2018; N=71,794

    Accountability

    The Accountability Facilitation Guide covers the following topics:

    • Create Clarity and Transparency
    • Articulate Expectations and Evaluation
    • Help Your Team Remove Roadblocks
    • Clearly Introduce Accountability to Your Team

    Learning outcomes:

    Main goal: Create a personal accountability plan and learn how to hold yourself and your team accountable.

    Key objectives:

    • Understand why accountability matters.
    • Learn how to create clarity and transparency.
    • Understand how to successfully hold people accountable through clearly articulating expectations and evaluation.
    • Know how to remove roadblocks to accountability for your team.

    Info-Tech Insight

    Accountability is about focusing on the results of a task, rather than just completing the task. Create team accountability by keeping the team focused on the result and not “doing their jobs.” First-time managers need to clearly communicate expectations and evaluation to successfully develop team accountability.

    Use the Build a Better Manager Participant Workbooks to help participants set accountabilities and track their progress

    A key feature of this blueprint is built-in guidance on transferring your managers’ new knowledge into practical skills and habits they can fall back on when their job requires it.

    The Participant Workbooks, one for each module, are structured around the three key principles of learning transfer to help participants optimally structure their own learning:

    • Track your learning. This section guides participants through conducting self-assessments, setting learning goals, recording key insights, and brainstorming relapse-prevention strategies
    • Establish your personal commitment. This section helps participants record the actions they personally commit to taking to continually practice their new skills
    • Secure organizational support. This section guides participants in recording the steps they will take to seek out support from their supervisor and peers.

    The image contains a screenshot of the Build a Better Manager Participant Workbooks.

    Info-Tech Insight

    Participants should use this workbook throughout their training and continue to review it for at least three months after. Practical skills take an extended amount of time to solidify, and using the workbook for several months will ensure that participants stay on track with regular practice and check-ins.

    Set your trainees up for success by reviewing these training best practices

    Cultural alignment

    It is critical that the department leadership team understand and agree with the best practices being presented. Senior team leads should be comfortable coaching first-time managers in implementing the skills developed through the training. If there is any question about alignment with departmental culture or if senior team leads would benefit from a refresher course, conduct a training session for them as well.

    Structured training

    Ensure the facilitator takes a structured approach to the training. It is important to complete all the activities and record the outputs in the workbook where appropriate. The activities are structured to ensure participants successfully use the knowledge gained during the workshop to build practical skills.

    Attendees

    Who should attend the training? Although this training is designed for first-time IT managers, you may find it helpful to run the training for the entire management team as a refresher and to get everyone on the same page about best practices. It is also helpful for senior leadership to be aware of the training because the attendees may come to their supervisors with requests to discuss the material or coaching around it.

    Info-Tech Insight

    Participants should use this workbook throughout their training and continue to review it for at least three months after. Practical skills take an extended amount of time to solidify, and using the workbook for several months will ensure that participants stay on track with regular practice and check-ins.

    1.2 Customize the facilitation guides

    1-3 hours

    Prior to facilitating your first session, ensure you complete the following steps:

    1. Read through all the module content, including the speaker’s notes, to familiarize yourself with the material and ensure the tactics presented align with your department’s culture and established best practices.
    2. Customize the slides with a pencil icon with information relevant to your organization.
    3. Ensure you are comfortable with all material to be presented and are prepared to answer questions. If you require clarification on any of the material, book a call with your Info-Tech analyst for guidance.
    4. Ensure you do not delete or heavily customize the self-assessment activities and the activities in the Review and Action Plan section of the module. These activities are structured around a skill building framework and designed to aid your trainees in applying their new knowledge in their day to day. If you have any concerns about activities in these sections, book a call with your Info-Tech analyst for guidance.
    Input Output
    • List of selected modules
    • Customized facilitation guides
    Materials Participants
    • Facilitation guides from selected modules
    • Training facilitator

    1.3 Prepare to deliver training

    1-3 hours

    Complete these steps in preparation for delivering the training to your first-time managers:

    1. Select a facilitator.
      • The right person to facilitate the meeting depends on the dynamics within your department. Having a senior IT leader can lend additional weight to the training best practices but may not be feasible in a large department. In these cases, an HR partner or external third party can be asked to facilitate.
    2. Distribute the workbooks to attendees before the first training session.
      • Change the header on the workbook templates to your own organization’s, if desired.
      • Email the workbooks to attendees prior to the first session. There is no pre-work to be completed.
    Input Output
    • List of selected modules
    • Facilitator selected
    • Workbook distributed
    Materials Participants
    • Workbooks from selected modules
    • Training sponsor
    • Training facilitator

    Phase 2

    Deliver training

    Phase 1 Phase 2 Phase 3
    • Select training topics
    • Customize the training facilitation guide for your organization
    • Deliver training modules
    • Confirm skill development action plan with trainees
    • Secure organizational support from trainees' supervisors

    Outcomes of this phase:

    • Training delivered
    • Development goals set by attendees
    • Action plan created by attendees

    2.1 Deliver training

    3 hours

    When you are ready, deliver the training. Ensure you complete all activities and that participants record the outcomes in their workbooks.

    Tips for activity facilitation:

    • Encourage and support participation from everyone. And be sure no one on the team dismisses anyone’s thoughts or opinions – they present the opportunity for further discussion and deeper insight.
    • Debrief after each activity, outlining any lessons learned, action items, and next steps.
    • Encourage participants to record all outcomes, key insights, and action plans in their workbooks.
    Input Output
    • Facilitation guides and workbooks for selected modules
    • Training delivered
    • Workbooks completed
    Materials Participants
    • Facilitation guides and workbooks for selected modules
    • Training facilitator
    • Trainees

    Phase 3

    Enable long-term skill development

    Phase 1Phase 2Phase 3
    • Select training topics
    • Customize the training facilitation guide for your organization
    • Deliver training modules
    • Confirm skill development action plan with trainees
    • Secure organizational support from trainees' supervisors

    Outcomes of this phase:

    • Attendees reminded of action plan and personal commitment
    • Supervisors reminded of the need to support trainees' development

    3.1 Email trainees with action steps

    0.5 hours

    After the training, send an email to attendees thanking them for participating and summarizing key next steps for the group. Use the template below, or write your own:

    “Hi team,

    I want to thank you personally for attending the Communicate Effectively training module. Our group led some great discussion.

    A reminder that the next time you will reconvene as a group will be on [Date] to discuss your progress and challenges to date.

    Additionally, your manager is aware and supportive of the training program, so be sure to follow through on the commitments you’ve made to secure the support you need from them to build your new skills.

    I am always open for questions if you run into any challenges.

    Regards,

    [Your name]”

    InputOutput
    • The date of participants’ next discussion meeting
    • Attendees reminded of next meeting date and encouraged to follow through on action plan
    MaterialsParticipants
    • Training facilitator

    3.2 Secure support from trainees’ supervisors

    0.5 hours

    An important part of the training is securing organizational support, which includes support from your trainees’ supervisors. After the trainees have committed to some action items to seek support from their supervisors, it is important to express your support for this and remind the supervisors of their role in guiding your first-time managers. Use the template below, or write your own, to remind your trainees’ supervisors of this at the end of training (if you are going through all three modules in a short period of time, you may want to wait until the end of the entire training to send this email):

    “Hi team,

    We have just completed Info-Tech’s first-time manager training with our new manager team. The trainees will be seeking your support in developing their new skills. This could be in the form of coaching, feedback on their progress, reviewing their development plan, etc.

    Supervisor support is a crucial component of skill building, so I hope I can count on all of you to support our new managers in their learning. If you are not sure how to handle these requests, or would like a refresher of the material our trainees covered, please let me know.

    I am always open for questions if you run into any challenges.

    Regards,

    [Your name]”

    InputOutput
    • List of trainees’ direct supervisors
    • Supervisors reminded to support trainees’ skill practice
    MaterialsParticipants
    • Training facilitator

    Contributors

    Brad Armstrong

    Brad Armstrong, Senior Engineering Manager, Code42 Software

    I am a pragmatic engineering leader with a deep technical background, now focused on building great teams. I'm energized by difficult, high-impact problems at scale and with the cloud technologies and emerging architectures that we can use to solve them. But it's the power of people and organizations that ultimately lead to our success, and the complex challenge of bringing all that together is the work I find most rewarding.

    We thank the expert contributors who chose to keep their contributions anonymous.

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    Kirwan, Cyril. Improving Learning Transfer. Routledge, 2016.

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    Lee, W.R.; Choi, S.B.; Kang, S.-W. How Leaders’ Positive Feedback Influences Employees’ Innovative Behavior: The Mediating Role of Voice Behavior and Job Autonomy. Sustainability, vol. 13, no. 4, 2021, pp. 1901. https://doi.org/10.3390/su13041901

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    Levy, Dan. “How to Build a Culture That Embraces Feedback.” Inc. Magazine, March 2014. Web.

    Lighthouse Research & Advisory. “Insights from the CHRO Panel at Workhuman 2017.” Lighthouse Research & Advisory, June 2017. Web.

    Lipman, Victor. “For New Managers, Boundaries Matter (A Lot).” Forbes, 19 March 2018. Web.

    Lipman, Victor. “The Hardest Thing For New Managers.” Forbes, 1 June 2016. Web.

    Lipman, Victor. “The Move To New Manager May Be The Hardest Transition In Business.” Forbes, 2 Jan. 2018. Web.

    Lyons, Rich. “Feedback: You Need To Lead It.” Forbes, 10 July 2017. Web.

    “Managing Email Effectively.” MindTools, n.d. Web.

    Managing Performance Workbook. Trainer Bubble, 16 Feb. 2013. Web.

    Mayfield, Clifton, et al. “Psychological Collectivism and Team Effectiveness: Moderating Effects of Trust and Psychological Safety.” Journal of Organizational Culture, Communications and Conflict, vol. 20, no. 1, Jan. 2016, pp. 78-94. Web.

    McAlpin, Kevin and Hans Vaagenes. “Critical Decision Making.” Performance Coaching International. 17 Nov. 2017. Web.

    McCoy, Jim. “How to Align Employee Performance with Business Strategy.” Workforce Management, vol. 86, no. 12, 2007, pp. S5. Proquest. Web.

    “Measuring Time-To-Full Productivity.” FeverBee, n.d. Web.

    Meister, Jeanne. The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow's Employees Today. HarperBusiness, 2010. Print.

    Meyer, Erin. “The Four Keys To Success With Virtual Teams.” Forbes Magazine, 19 Aug. 2010. Web.

    Morris, Donna. “Death to the Performance Review: How Adobe Reinvented Performance Management and Transformed Its Business.” WorldatWork, 2016, p. 10. Web.

    Myers-Briggs Company. “New Research: Time Spent on Workplace Conflict Has Doubled Since 2008.” Yahoo! Finance, 18 Oct. 2022. Web.

    Murdoch, Elisabeth. “Elisabeth Murdoch's MacTaggart lecture: full text.” The Guardian, 23 Aug. 2012. Web.

    NASA Governance and Strategic Management Handbook (NPD 1000.0B). NASA, June 2014. Web.

    NASA Space Flight Program and Project Management Handbook (NASA/SP-2014-3705). NASA, Sept. 2014. Web.

    New Manager Training: Management & Leadership Skills. Schulich School of Business, n.d. Web.

    O’Hanlon, Margaret. “It’s a Scandal! Manager Training Exposed! [Implementation Part 4].” Compensation Cafe, 16 Feb. 2012. Web.

    Ordonez, Lisa D., et al. “Goals Gone Wild: The Systematic Side Effects of Over-Prescribing Goal Setting.” Social Science Research Network. Harvard Business School, 11 Feb. 2009. Web.

    Paczka, Nina. “Meeting in the Workplace | 2023 Statistics.” LiveCareer, 25 July 2022. Web.

    Pavlou, Christina. “How to Calculate Employee Turnover Rate | Workable.” Recruiting Resources: How to Recruit and Hire Better, 13 July 2016. Web.

    Performance Management 101 Workbook. Halogen Software, 2015. Web.

    Personal Development and Review. Oxford Learning Institute, n.d. Web.

    Personal Development Plan. MindTools, 2014. Web.

    Porath, Christine, et al. “The Effects of Civility on Advice, Leadership, and Performance.” Journal of Applied Psychology, vol. 44, no. 5, Sept. 2015, pp. 1527-1541. Web.

    Project Management Institute. “PMI’s Pulse of The Profession: In-Depth Report.” PMI, May 2013. Web. June 2015.

    Quay, C. C., and A. Yusof. “The influence of employee participation, rewards and recognition, job security, and performance feedback on employee engagement.” Issues and Perspectives in Business and Social Sciences, vol. 2, no. 1, 2022, pp. 20. https://doi.org/10.33093/ipbss.2022.2.1.3

    Quinn, R. E., and J. Rohrbaugh. “A spatial model of effectiveness criteria: Towards a competing values approach to organizational analysis.” Management Science, vol. 29, 1983, pp. 363–377.

    Re:Work Guide: Develop and Support Managers. re:Work with Google, n.d. Web.

    Reardon, Kathleen Kelley. “7 Things to Say When a Conversation Turns Negative.” Harvard Business Review, 11 May 2016. Web.

    Reh, F. John. “Here Is a List of Mistakes New Managers Make and How to Avoid Them.” The Balance Careers, 30 Dec. 2018. Web.

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    Romão, Soraia, Neuza Ribeiro, Daniel Roque Gomes, and Sharda Singh. “The Impact of Leaders’ Coaching Skills on Employees’ Happiness and Turnover Intention.” Administrative Sciences, vol. 12, no. 84, 2022. https://doi.org/10.3390/ admsci12030084

    Romero, Joseluis. “Yes - you can build a feedback culture.” Skills 2 Lead, Aug. 2014. Web.

    Runde, Craig E., and Tim A. Flanagan. “Conflict Competent Leadership.” Leader to Leader, Executive Forum, Winter 2008. PDF.

    Saks, Alan M., and Lisa A. Burke-Smalley. “Is Transfer of Training Related to Firm Performance?: Transfer and Firm Performance.” International Journal of Training and Development, vol. 18, no. 2, June 2014, pp. 104–15. Crossref, doi:10.1111/ijtd.12029.

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    Salomonsen, Summer. Grovo’s First-Time Manager Microlearning® Program Will Help Your New Managers Thrive in 2018. Grovo, 2018. Web.

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    Release management

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    Today's world requires frequent and fast deployments. Stay in control with release management.

    Plan Your Digital Transformation on a Page

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    • Parent Category Name: IT Strategy
    • Parent Category Link: /it-strategy
    • Digital investments often under deliver on expectations of return, and there is no cohesive approach to managing the flow of capital into digital.
    • The focus of the business has historically been to survive technological disruption rather than to thrive in it.
    • Strategy is based mostly on opinion rather than an objective analysis of the outcomes customers want from the organization.
    • Digital is considered a buzzword – nobody has a clear understanding of what it is and what it means in the organization’s context.

    Our Advice

    Critical Insight

    • The purpose of going digital is getting one step closer to the customer. The mark of a digital organization lies in how they answer the question, “How does what we’re doing contribute to what the customer wants from us?”
    • The goal of digital strategy is digital enablement. An organization that is digitally enabled no longer needs a digital strategy, it’s just “the strategy.”

    Impact and Result

    • Focus strategy making on delivering the digital outcomes that customers want.
      • Leverage the talent, expertise, and perspectives within the organization to build a customer-centric digital strategy.
    • Design a balanced digital strategy that creates value across the five digital value pools:
      • Digital marketing, digital channels, digital products, digital supporting capabilities, and business model innovation.
    • Ask how disruption can be leveraged, or even become the disruptor.
      • Manage disruption through quick-win approaches and empowering staff to innovate.
    • Use a Digital Strategy-on-a-Page to spark the digital transformation.
      • Drive awareness and alignment on the digital vision and spark your organization’s imagination around digital.

    Plan Your Digital Transformation on a Page Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to understand how digital disruption is driving the need for transformation, and how Info-Tech’s methodology can help.

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

    1. Scope the digital transformation

    Learn how to apply the Digital Value Pools thought model and scope strategy around them.

    • Plan Your Digital Transformation on a Page – Phase 1: Scope the Digital Transformation

    2. Design the digital future state vision

    Identify business imperatives, define digital outcomes, and define the strategy’s guiding principles.

    • Plan Your Digital Transformation on a Page – Phase 2: Design the Digital Future State Vision
    • Digital Strategy on a Page

    3. Define the digital roadmap

    Define, prioritize, and roadmap digital initiatives and plan contingencies.

    • Plan Your Digital Transformation on a Page – Phase 3: Define the Digital Roadmap

    4. Sustain digital transformation

    Create, polish, and socialize the Digital Strategy-on-a-Page.

    • Plan Your Digital Transformation on a Page – Phase 4: Sustain Digital Transformation
    [infographic]

    Workshop: Plan Your Digital Transformation on a Page

    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 the Digital Transformation

    The Purpose

    Identify the need for and use of digital strategy and determine a realistic scope for the digital strategy.

    Key Benefits Achieved

    The digital strategy project is planned and scoped around a subset of the five digital value pools.

    Activities

    1.1 Introduction to digital strategy.

    1.2 Establish motivation for digital.

    1.3 Discuss in-flight digital investments.

    1.4 Define the scope of digital.

    1.5 Identify stakeholders.

    1.6 Perform discovery interviews.

    1.7 Select two value pools to focus day 2, 3, and 4 activities.

    Outputs

    Business model canvas

    Stakeholder power map

    Discovery interview results

    Two value pools for focus throughout the workshop

    2 Design the Digital Future State Vision

    The Purpose

    Create guiding principles to help define future digital initiatives. Generate the target state with the help of strategic goals.

    Key Benefits Achieved

    Establish the basis for planning out the initiatives needed to achieve the target state from the current state.

    Activities

    2.1 Identify digital imperatives.

    2.2 Define key digital outcomes.

    2.3 Create a digital investment thesis.

    2.4 Define digital guiding principles.

    Outputs

    Corporate strategy analysis, PESTLE analysis, documented operational pain points (value streams)

    Customer needs assessment (journey maps)

    Digital investment thesis

    Digital guiding principles

    3 Define the Digital Roadmap

    The Purpose

    Understand the gap between the current and target state. Create transition options and assessment against qualitative and quantitative metrics to generate a list of initiatives the organization will pursue to reach the target state. Build a roadmap to plan out when each transition initiative will be implemented.

    Key Benefits Achieved

    Finalize the initiatives the organization will use to achieve the target digital state. Create a roadmap to plan out the timing of each initiative and generate an easy-to-present document for digital strategy approval.

    Activities

    3.1 Identify initiatives to achieve digital outcomes.

    3.2 Align in-flight initiatives to digital initiatives.

    3.3 Prioritize digital initiatives.

    3.4 Document architecturally significant requirements for high-priority initiatives.

    Outputs

    Digital outcomes and KPIs

    Investment/value pool matrix

    Digital initiative prioritization

    Architecturally significant requirements for high-priority initiatives

    4 Define the Digital Roadmap

    The Purpose

    Plan your approach to socializing the digital strategy to help facilitate the cultural changes necessary for digital transformation.

    Key Benefits Achieved

    Plant the seed of digital and innovation to start making digital a part of the organization’s DNA.

    Activities

    4.1 Review and refine Digital Strategy on a Page.

    4.2 Assess company culture.

    4.3 Define high-level cultural changes needed for successful transformation.

    4.4 Define the role of the digital transformation team.

    4.5 Establish digital transformation team membership and desired outcomes.

    Outputs

    Digital Strategy on a Page

    Strategyzer Culture Map

    Digital transformation team charter

    Consolidate Your Data Centers

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    • Parent Category Name: Data Center & Facilities Strategy
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    • Data center operating costs continue to escalate as organizations struggle with data center sprawl.
    • While data center consolidation is an attractive option to reduce cost and sprawl, the complexity of these projects makes them extremely difficulty to execute.
    • The status quo is also not an option, as budget constraints and the challenges with managing multiple data centers continues to increase.

    Our Advice

    Critical Insight

    • Despite consolidation being an effective way of addressing sprawl, it is often difficult to secure buy-in and funding from the business.
    • Many consolidation projects suffer cost overruns due to unforeseen requirements and hidden interdependencies which could have been mitigated during the planning phase.
    • Organizations that avoid consolidation projects due to their complexity are just deferring the challenge, while costs and inefficiencies continue to increase.

    Impact and Result

    • Successful data center consolidation will have an immediate impact on reducing data center sprawl. Maximize your chances of success by securing buy-in from the business.
    • Avoid cost overruns and unforeseen requirements by engaging with the business at the start of the process. Clearly define business requirements and establish common expectations.
    • While cost improvements often drive data center consolidation, successful projects will also improve scalability, operational efficiency, and data center redundancy.

    Consolidate Your Data Centers Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should perform a data center consolidation, 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. Discover

    Identify IT infrastructure systems and establish dependency bundles for the current and target sites.

    • Consolidate Your Data Centers – Phase 1: Discover
    • Data Center Consolidation Data Collection Workbook
    • Data Center Consolidation Project Planning and Prioritization Tool

    2. Plan

    Build a strong business case for data center consolidation by leveraging a TCO analysis and incorporating business requirements.

    • Consolidate Your Data Centers – Phase 2: Plan
    • Data Center Consolidation TCO Comparison Tool
    • Data Center Relocation Vendor Statement of Work Evaluation Tool

    3. Execute

    Streamline the move-day process through effective communication and clear delegation of duties.

    • Consolidate Your Data Centers – Phase 3: Execute
    • Communications Plan Template for Data Center Consolidation
    • Data Center Consolidation Executive Presentation
    • Minute-to-Minute Move Day Script (PDF)
    • Minute-to-Minute Move Day Script (Visio)
    • Data Center Relocation Minute-to-Minute Project Planning and Monitoring Tool

    4. Close

    Close the loop on the data center consolidation project by conducting an effective project retrospective.

    • Consolidate Your Data Centers – Phase 4: Close
    • Data Center Relocation QA Team Project Planning and Monitoring Tool
    • Data Center Move Issue Resolution and Change Order Template
    • Data Center Relocation Wrap-up Checklist
    [infographic]

    Understand the Difference Between Backups and Archives

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    • You don’t understand the difference between a backup and an archive or when to use one or the other.
    • Data is not constant. It is ever-changing and growing. How do you protect it?
    • You just replaced an application that was in use since day one, and even though you have a fully functional replacement, you would like to archive that original application just in case.
    • You want to save money, so you use your backup solution to archive data, but you know that is not ideal. What is the correct solution?

    Our Advice

    Critical Insight

    Keep in mind that backups are for recovery while archives are for discovery. Backups and archives are often confused but understanding the differences can result in significant savings of time and money. Backing up and archiving may be considered IT tasks, but recovery and discovery are capabilities the business wants and is willing to pay for.

    Impact and Result

    Archives and backups are not the same, and there is a use case for each. Sometimes minor adjustments may be required to make the use case work. Understanding the basics of backups and archives can lead to significant savings at a monetary and effort level.

    Understand the Difference Between Backups and Archives Research & Tools

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

    1. Understand the Difference Between Backups and Archives

    What is the difference between a backup and a data archive? When should I use one over the other? They are not the same and confusing the two concepts could be expensive.

    • Understand the Difference Between Backups and Archives Storyboard
    [infographic]

    Further reading

    Understand the Difference Between Backups and Archives

    They are not the same, and confusing the two concepts could be expensive

    Analyst Perspective

    Backups and archives are not interchangeable, but they can complement each other.

    Photo of P.J. Ryan, Research Director, Infrastructure & Operations, Info-Tech Research Group.

    Backups and archives are two very different operations that are quite often confused or misplaced. IT and business leaders are tasked with protecting corporate data from a variety of threats. They also must conform to industry, geographical, and legal compliance regulations. Backup solutions keep the data safe from destruction. If you have a backup, why do you also need an archive? Archive solutions hold data for a long period of time and can be searched. If you have an archive, why do you also need a backup solution? Backups and archives used to be the same. Remember when you would keep the DAT tape in the same room as the argon gas fire suppression system for seven years? Now that's just not feasible. Some situations require a creative approach or a combination of backups and archives.

    Understand the difference between archives and backups and you will understand why the two solutions are necessary and beneficial to the business.

    P.J. Ryan
    Research Director, Infrastructure & Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge
    • You don’t understand the difference between a backup and an archive or when to use one over the other.
    • Data is not constant. It is ever-changing and growing. How do you protect it?
    • You just replaced an application that had been in use since day one, and even though you have a fully functional replacement, you would like to archive that original application just in case.
    • You want to save money, so you use your backup solution to archive data, but you know that is not ideal. What is the correct solution?
    Common Obstacles
    • Storage costs can be expensive, as can some backup and archiving solutions.
    • Unclear requirements definition to decide between backups or archives.
    • Historically, people referred to archiving as tossing something into a box and storing it away indefinitely. Data archiving has a different meaning.
    • Executives want retired applications preserved but do not provide reasons or requirements.
    Info-Tech’s Approach
    • Spend wisely. Why spend money on an archive solution when a backup will suffice? Don’t leave money on the table.
    • Be creative and assess each backup or archive situation carefully. A custom solution may be required.
    • Backup your production data for the purpose of restoring it and adhere to the 3-2-1 rule of backups (Naviko.com).
    • Archive your older data to an alternate storge platform to save space, allow for searchability, and provide retention parameters.

    Info-Tech Insight

    Keep in mind that backups are for recovery while archives are for discovery. Backups and archives are often confused but understanding the differences can result in significant savings of time and money. Backing up and archiving may be considered IT tasks but recovery and discovery are capabilities the business wants and is willing to pay for.

    Archive

    What it IS

    A data archive is an alternate location for your older, infrequently accessed production data. It is indexed and searchable based on keywords. Archives are deleted after a specified period based on your retention policy or compliance directives.

    What it IS NOT

    Archives are not an emergency copy of your production data. They are not any type of copy of your production data. Archives will not help you if you lose your data or accidentally delete a file. Archives are not multiple copies of production data from various recovery points.

    Why use it

    Archives move older data to an alternate location. This frees up storage space for your current data. Archives are indexed and can be searched for historical purposes, compliance reasons, or in the event of a legal matter where specific data must be provided to a legal team.

    Tips & Tricks – Archiving

    • Archiving will move older data to an alternate location. This will free up storage space in the production environment.
    • Archiving solutions index the data to allow for easier searchability. This will aid in common business searches as well as assist with any potential legal searches.
    • Archiving allows companies to hold onto data for historical purposes as well as for specific retention periods in compliance with industry and regional regulations such as SOX, GDPR, FISMA, as well as others (msp360.com).

    Backup

    What it IS

    A backup is a copy of your data from a specific day and time. It is primarily used for recovery or restoration if something happens to the production copy of data. The restore will return the file or folder to the state it was in at the time of the backup.

    Backups occur frequently to ensure the most recent version of data is copied to a safe location.

    A typical backup plan makes a copy of the data every day, once a week, and once a month. The data is stored on tapes, disk, or using cloud storage.

    What it IS NOT

    Backups are not designed for searching or discovery. If you backup your email and must go to that backup in search of all email pertaining to a specific topic, you must restore the full backup and then search for that specific topic or sender. If you kept all the monthly backups for seven years, that will mean repeating that process 84 times to have a conclusive search, assuming you have adequate storage space to restore the email database 84 times.

    Backups do not free up space.

    Why use it

    Backups protect your data in the event of disaster, deletion, or accidental damage. A good backup strategy will include multiple backups on different media and offsite storage of at least one copy.

    Tips & Tricks – Backups

    • Production data should be backed up on a regular basis, ideally once a day or more frequently if possible.
    • Backups are intended to restore data when it gets deleted, over-written, or otherwise compromised. Most restore requests are from the last 24 to 48 hours, so it may be advantageous to keep a backup readily available on disk for a quick restore when needed.
    • Some vendors and industry subject matter experts advocate the use of a 3-2-1 rule when it comes to backups:
      • Keep three copies of your production data
      • In at least two separate locations (some advocate two different formats), and
      • One copy should be offsite (nakivo.com)

    Cold Storage

    • Cold storage refers to a storage option offered by some cloud vendors. In the context of the discussion between backups and archives, it can be an option for a dedicated backup solution for a specific period. Cost is low and the data is protected from destruction.
    • If an app has been replaced and all data transferred to the replacement solution but for some reason the company wishes to hold onto the data, you want a backup, not an archive. Extract the data, convert it into MongoDB or a similar solution, and drop it into cheap cloud storage (cold storage) for less than $5 per TB/month.

    Case Study

    Understanding the difference between archives and backups could save you a lot of time and money

    INDUSTRY: Manufacturing | SOURCE: Info-Tech Research

    Understanding the difference between an archive and a backup was the first step in solving their challenge.

    A leading manufacturing company found themselves in a position where they had to decide between archiving or doing nothing.

    The company had completed several acquisitions and ended up with multiple legacy applications that had been merged or migrated into replacement solutions. These legacy applications were very important to the original companies and although the data they held had been migrated to a replacement solution, executives felt they should hold onto these applications for a period of time, just in case.

    Some of the larger applications were archived using a modern archiving solution, but when it came to the smaller applications, the cost to add them to the archiving solution greatly exceeded the cost to just keep them running and maintain the associated infrastructure.

    A research advisor from Info-Tech Research Group joined a call with the manufacturing company and discussed their situation. The difference between archives and backups was explained and through the course of the conversation it was discovered that the solution was a modified backup. The application data had already been preserved through the migration, so data could be accessed in the production environment. The requirement to keep the legacy application up and running was not necessary but in compliance with the request to keep the information, the data could be exported from the legacy application into a non-sequential database, compressed, and stored in cloud-based cold storage for less than five dollars per terabyte per month. The manufacturing company’s staff realized that they could apply this same approach to several of their legacy applications and save tens of thousands of dollars in the process.

    Understand the Difference Between Backups and Archives

    Backups

    Backups are for recovery. A backup is a snapshot copy of production data at a specific point in time. If the production data is lost, destroyed, or somehow compromised, the data can be restored from the backup.

    Archives

    Archives are for discovery. It is production data that is moved to an alternate location to free up storage space, allow the data to be searchable, and still hold onto the data for historical or compliance purposes.

    Info-Tech Insight

    Archives and backups are not the same, and there is a use case for each. Sometimes minor adjustments may be required to make the use case work. Understanding the basics of backups and archives can lead to significant savings at a monetary and effort level.

    Additional Guidance

    Production data should be backed up.

    The specific backup solution is up to the business.

    Production data that is not frequently accessed should be archived.

    The specific solution to perform and manage the archiving of the data is up to the business

    • Archived data should also be backed up at least once.
    If the app has been replaced and all data transferred, you want a backup not an archive if you want to keep the data.
    • Short term – fence it off.
    • Long term – extract into Mongo then drop it into cheap cloud storage.

    Case Study

    Using tape backups as an archive solution could result in an expensive discovery and retrieval exercise.

    INDUSTRY: Healthcare | SOURCE: Zasio Enterprises Inc.

    “Do not commingle archive data with backup or disaster recovery tapes.”

    A court case in the United States District Court for the District of Nevada involving Guardiola and Renown Health in 2015 is a good example of why using a backup solution to solve an archiving challenge is a bad idea.

    Renown Health used a retention policy that declared any email older than six months of age as inactive and moved that email to a backup tape. Renown Health was ordered by the court to produce emails from a period of time in the past. Renown estimated that it would cost at least $248,000 to produce those emails, based on the effort involved to restore data from each tape and search for the email in question. Renown Health argued that this long and expensive process would result in undue costs.

    The court reviewed the situation and ruled against Renown Health and ordered them to comply with the request (Zasio.com).

    A proper archiving solution would have provided a quick and low-cost method to retrieve the emails in question.

    Backups and archives are complementary to each other

    • Archives are still production data, but the data does not change. A backup is recommended for the archived data, but the frequency of the backups can be lowered.
    • Backups protect you if a disaster strikes by providing a copy of the production data that was compromised or damaged. Archives allow you to access older data that may have just been forgotten, not destroyed or compromised. Archives could also protect you in a legal court case by providing data that is older but may prove your argument in court.

    Archives and backups are not the same.

    Backups copy your data. Archives move your data. Backups facilitate recovery. Archives facilitate discovery.

    Archive Backup
    Definition Move rarely accessed (but still production) data to separate media. Store a copy of frequently used data on a separate media to ensure timely operational recovery.
    Use Case Legal discovery, primary storage reduction, compliance requirements, and audits. Accidental deletion and/or corruption of data, hardware/software failures.
    Method Disk, cloud storage, appliance. Disk, backup appliance, snapshots, cloud.
    Data Older, rarely accessed production data. Current production data.

    Is it a backup or archive?

    • You want to preserve older data for legal and compliance reasons, so you put extra effort into keeping your tape backups safe and secure for seven years. That’s a big mistake that may cost you time and money. You want an archive solution.
    • You replace your older application and migrate all data to the new system, but you want to hold onto the old data, just in case. That’s a backup, not an archive.
    • A long serving senior executive recently left the company. You want to preserve the contents of the executive's laptop in case it is needed in the future. That’s a backup.

    Considerations When Choosing Between Solutions

    1

    Backup or archive?

    2

    What are you protecting?

    3

    Why are you protecting data?

    4

    Solution

    Backup

    Backup and/or archive.
    Additional information required.
    Column 3 may help

    Archive

    Device

    Data

    Application

    Operational Environment

    Operational recovery

    Disaster recovery

    Just in case

    Production storage space reduction

    Retention and preservation

    Governance, risk & compliance

    Backup

    Archive

    Related Info-Tech Research

    Stock image of light grids and flares. Establish an Effective Data Protection Plan

    Give data the attention it deserves by building a strategy that goes beyond backup.

    Stock image of old fuse box switches. Modernize Enterprise Storage

    Current and emerging storage technologies are disrupting the status quo – prepare your infrastructure for the exponential rise in data and its storage requirements.

    Logo for 'Software Reviews' and their information on 'Compare and Evaluate: Data Archiving.'
    Sample of Info-Tech's 'Data Archiving Policy'. Data Archiving Policy

    Bibliography

    “Backup vs. archiving: Know the difference.” Open-E. Accessed 05 Mar 2022.Web.

    G, Denis. “How to build retention policy.” MSP360, Jan 3, 2020. Accessed 10 Mar 2022.

    Ipsen, Adam. “Archive vs Backup: What’s the Difference? A Definition Guide.” BackupAssist, 28 Mar 2017. Accessed 04 Mar 2022.

    Kang, Soo. “Mitigating the expense of E-discovery; Recognizing the difference between back-ups and archived data.” Zasio Enterprises, 08 Oct 2015. Accessed 3 Mar 2022.

    Mayer, Alex. “The 3-2-1 Backup Rule – An Efficient Data Protection Strategy.” Naviko. Accessed 12 Mar 2022.

    “What is Data-Archiving?” Proofpoint. Accessed 07 Mar 2022.

    Build, Optimize, and Present a Risk-Based Security Budget

    • Buy Link or Shortcode: {j2store}371|cart{/j2store}
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    • Parent Category Name: Security Strategy & Budgeting
    • Parent Category Link: /security-strategy-and-budgeting
    • Year after year, CISOs need to develop a comprehensive security budget that is able to mitigate against threats.
    • This budget will have to be defended against many other stakeholders to ensure there is proper funding.
    • Security budgets are unlike other departmental budgets. Increases or decreases in the budget can drastically affect the organizational risk level.
    • CISOs struggle with the ability to assess the effectiveness of their security controls and where to allocate money.

    Our Advice

    Critical Insight

    • CISOs can demonstrate the value of security when they correlate mitigations to business operations and attribute future budgetary needs to business evolution.
    • To identify the critical areas and issues that must be reflected in your security budget, develop a comprehensive corporate risk analysis and mitigation effectiveness model, which will illustrate where the moving targets are in your security posture.

    Impact and Result

    • Info-Tech’s methodology moves you away from the traditional budgeting approach to building a budget that is designed to be as dynamic as the business growth model.
    • Collect your organization's requirements and build different budget options to describe how increases and decreases can affect the risk level.
    • Discuss the different budgets with the business to determine what level of funding is needed for the desired level of security.
    • Gain approval of your budget early by preshopping and presenting the budget to individual stakeholders prior to the final budget approval process.

    Build, Optimize, and Present a Risk-Based Security Budget Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build, optimize, and present a risk-based 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. Review requirements for the budget

    Collect and review the required information for your security budget.

    • Build, Optimize, and Present a Risk-Based Security Budget – Phase 1: Review Requirements for the Budget

    2. Build the budget

    Take your requirements and build a risk-based security budget.

    • Build, Optimize, and Present a Risk-Based Security Budget – Phase 2: Build the Budget
    • Security Budgeting Tool

    3. Present the budget

    Gain approval from business stakeholders by presenting the budget.

    • Build, Optimize, and Present a Risk-Based Security Budget – Phase 3: Present the Budget
    • Preshopping Security Budget Presentation Template
    • Final Security Budget Presentation Template
    [infographic]

    Workshop: Build, Optimize, and Present a Risk-Based Security 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 Review Requirements for the Budget

    The Purpose

    Understand your organization’s security requirements.

    Collect and review the requirements.

    Key Benefits Achieved

    Requirements are gathered and understood, and they will provide priorities for the security budget.

    Activities

    1.1 Define the scope and boundaries of the security budget.

    1.2 Review the security strategy.

    1.3 Review other requirements as needed, such as the mitigation effectiveness assessment or risk tolerance level.

    Outputs

    Defined scope and boundaries of the security budget

    2 Build the Budget

    The Purpose

    Map business capabilities to security controls.

    Create a budget that represents how risk can affect the organization.

    Key Benefits Achieved

    Finalized security budget that presents three different options to account for risk and mitigations.

    Activities

    2.1 Identify major business capabilities.

    2.2 Map capabilities to IT systems and security controls.

    2.3 Categorize security controls by bare minimum, standard practice, and ideal.

    2.4 Input all security controls.

    2.5 Input all other expenses related to security.

    2.6 Review the different budget options.

    2.7 Optimize the budget through defense-in-depth options.

    2.8 Finalize the budget.

    Outputs

    Identified major business capabilities, mapped to the IT systems and controls

    Completed security budget providing three different options based on risk associated

    Optimized security budget

    3 Present the Budget

    The Purpose

    Prepare a presentation to speak with stakeholders early and build support prior to budget approvals.

    Present a pilot presentation and incorporate any feedback.

    Prepare for the final budget presentation.

    Key Benefits Achieved

    Final presentations in which to present the completed budget and gain stakeholder feedback.

    Activities

    3.1 Begin developing a communication strategy.

    3.2 Build the preshopping report.

    3.3 Practice the presentation.

    3.4 Conduct preshopping discussions with stakeholders.

    3.5 Collect initial feedback and incorporate into the budget.

    3.6 Prepare for the final budget presentation.

    Outputs

    Preshopping Report

    Final Budget Presentation

    Select and Implement a Social Media Management Platform

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    • 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.).

    Resilience, It's about your business

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    January 17th, 2025 is when your ability to serve clients without interruption is legislated. At least when you are in the financial services sector, or when you supply such firms.  If you are not active in the financial arena, don’t click away. Many of these requirements can just give you an edge over your competition.

    Many firms underestimated the impact of the legislation, but let’s be honest, so did the European Union. The last pieces of the puzzle are still not delivered only two days before the law comes into effect.

    What is DORA all about again? It is the Digital Operational Resilience Act. In essence, it is about your ability to withstand adverse events that may impact your clients or the financial system.

    Aside from some nasty details, this really is just common sense. You need to be organized so that the right people know what is expected of them, from the accountable top to the staff executing the day to day operations. You need to know what to do when things go wrong. You need to know your suppliers, especially those who supply services to your critical business services. You need to test your defenses and your IT. You may want to share intelligence around cyber-attacks.

    There, all of the 45 business-relevant DORA articles and technical standards in a single paragraph. The remaining articles deal with the competent authorities and make for good reading as they provide some insights into the workings of the regulatory body. The same goes for the preamble of the law. No less than 104 “musings” that elaborate on the operating environment and intent of the law.

    If you’re firm is still in the thick of things trying to become compliant, you are not alone. I have seen at least one regulator indicating that they will be understanding of that situation, but you must have a clear roadmap to compliance in the near future. Your regulator may or may not be in line with that position. In the eastern-most countries of the EU, signals are that the regulator will take a much tougher stance.

    (This kind of negates one of the musings of the law; the need for a single view on what financial services firms must adhere to to be considered compliant and resilient. But I think this is an unavoidable byproduct of having culturally diverse member states.)

    I dare to say that firms typically have the governance in place as well as the IM processes and testing requirements. The biggest open items seem to be in the actual IT hard operational resilience, monitoring and BCM.

    Take a look at your own firm and make an honest assessment in those areas. They key resilience (DORA-related or not) is knowing how your service works and is performing from a client perspective.

    You need to know how a client achieves all their interaction goals with your company. Typically this is mapped in the client journey. Unfortunately, this usually only maps the business flow, not the technical flow. And usually you look at it from the client UX perspective. This is obviously very important, but it does not help you to understand the elements that ensure you that your clients can always complete that journey.

    The other day, I had a customer journey with an online ski-shop. I had bought two ski helmets in size M, the same size my adult son and I had. When the helmets arrived it turned out they were too small. So, ok, no worries, I start the return process online. Once we complete the initial steps, after a few days I notice that the price for only one helmet is shown on the site. This, despite the indicators that both helmets are approved to be returned. Later both helmets are shown as effectively returned. Refund still shows one helmet’s price. What gives? I give it some more time, but after ten days, I decide to enquire. The site still shows refund for one helmet.

    Then I receive an email that both helmets will be refunded as they accepted the state of the helmets (unused) and amount of the refund is now correct. Site still shows the wrong amount.

    This is obviously a small inconvenience, but it does show that the IT team does not have a full view of the entire customer journey and systems interactions. You need to fix this.

    Suppose this is not about two ski helmets, but about ski or home insurance. Or about the sale of a car or a B2B transaction involving tens or hundreds of thousands of dollars or euro, or any other currency? Does your system show the real-time correct status of the transaction? If not, I would, as a consumer, decide to change provider. Why? Because the trust is gone.

    Resilience is about withstanding events that threaten your service to your clients. Events are nit just earthquakes or floods. Events are also wrong or missing information. To protect against that, you need to know what the (value) chain is that leads to you providing that service. Additionally, you need to know if that service chain has any impediments at any moment in time. Aka, you need to know that any service request can be fulfilled at any given time. And to have the right processes and resources in place to fix whatever is not working at that time.

    And that is in my opinion the biggest task still outstanding with many companies to ensure true resilience and customer service.

    IT Asset Management (ITAM) Market Overview

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    • Parent Category Name: Asset Management
    • Parent Category Link: /asset-management
    • Data management is challenging at the best of times but managing assets that change on a daily basis are difficult without automation and a good asset tool.
    • For organizations moving beyond basic hardware inventory, knowing what to look for to prepare for future processes seems impossible.
    • Using price as the leading criteria or just as an add-on to your ITSM solution may frustrate your efforts, especially if managing complex licensing is part of your mandate.

    Our Advice

    Critical Insight

    • If the purchase is happening independent of process design or review, it’s easy to end up with a solution that doesn’t fit your environment.
    • The complexity of your environment should be a significant factor in choosing an IT asset management solution.
    • Imagining the possibilities and understanding the differences between IT asset tools will drive you to the right solution for long term gain in managing dynamic assets.

    Impact and Result

    • Regardless of whether your IT environment is on-premises, in the cloud, or a complex hybrid of the two, knowing where your asset funds are allocated is key to right-sizing costs and reducing risks of non-compliance or lost assets.
    • Choosing the right tools for the job will be key to your success.

    IT Asset Management (ITAM) Market Overview Research & Tools

    Start here: Read the Market Overview

    Read the Market Overview to understand what features and capabilities are available in ITAM tools. The right features match is key to making a data heavy and challenging process easier for your team.

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

    • IT Asset Management Market Overview

    1. Prepare your project plan and selection process

    Use the Info-Tech templates to identify and document your requirements, plan your project, and prepare to engage with vendors.

    • ITAM Project Charter Template
    • ITAM Demonstration Script Template
    • Proof of Concept Template
    • ITAM Vendor Evaluation Workbook
    [infographic]

    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.

    Build Resilience Against Ransomware Attacks

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    • Parent Category Name: Threat Intelligence & Incident Response
    • Parent Category Link: /threat-intelligence-incident-response
    • Sophisticated ransomware attacks are on the rise and evolving quickly.
    • Executives want reassurance but are not ready to write a blank check. We need to provide targeted and justified improvements.
    • Emerging strains can exfiltrate sensitive data, encrypt systems, and destroy backups in hours, which makes recovery a grueling challenge.

    Our Advice

    Critical Insight

    • Malicious agents design progressive, disruptive attacks to pressure organizations to pay a ransom.
    • Organizations misunderstand ransomware risk scenarios, which obscures the likelihood and impact of an attack.
    • Conventional approaches focus on response and recovery, which do nothing to prevent an attack and are often ineffective against sophisticated attacks.

    Impact and Result

    • Conduct a thorough assessment of your current state; identify potential gaps and assess the possible outcomes of an attack.
    • Analyze attack vectors and prioritize controls that prevent ransomware attacks, and implement ransomware protections and detection to reduce your attack surface.
    • Visualize, plan, and practice your response and recovery to reduce the potential impact of an attack.

    Build Resilience Against Ransomware Attacks Research & Tools

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

    1. Build Resilience Against Ransomware Attacks

    Use this step-by-step guide to assess your ransomware readiness and implement controls that will improve your ability to prevent incursions and defend against attacks.

    • Build Resilience Against Ransomware Attacks – Phases 1-4

    2. Ransomware Resilience Assessment – Complete the ransomware resilience assessment and establish metrics.

    Use this assessment tool to assess existing protection, detection, response, and recovery capabilities and identify potential improvements.

    • Ransomware Resilience Assessment

    3. Threat Preparedness Workbook – Improve protection and detection capabilities.

    Use this threat preparedness workbook to evaluate the threats and tactics in the ransomware kill chain using the MITRE framework and device appropriate countermeasures.

    • Enterprise Threat Preparedness Workbook

    4. Tabletop Planning Exercise and Example Results – Improve response and recovery capabilities with a tabletop exercise for your internal IT team.

    Adapt this tabletop planning session template to plan and practice the response of your internal IT team to a ransomware scenario.

    • Tabletop Exercise – Internal (Ransomware Template)
    • Ransomware Tabletop Planning Results – Example (Visio)
    • Ransomware Tabletop Planning Results – Example (PDF)

    5. Ransomware Response Runbook and Workflow – Document ransomware response steps and key stakeholders.

    Adapt these workflow and runbook templates to coordinate the actions of different stakeholders through each stage of the ransomware incident response process.

    • Ransomware Response Runbook Template
    • Ransomware Response Workflow Template (Visio)
    • Ransomware Response Workflow Template (PDF)

    6. Extended Tabletop Exercise and Leadership Guide – Run a tabletop test to plan and practice the response of your leadership team.

    Adapt this tabletop planning session template to plan leadership contributions to the ransomware response workflow. This second tabletop planning session will focus on communication strategy, business continuity plan, and deciding whether the organization should pay a ransom.

    • Tabletop Exercise – Extended (Ransomware Template)
    • Leadership Guide for Extended Ransomware

    7. Ransomware Resilience Summary Presentation – Summarize status and next steps in an executive presentation.

    Summarize your current state and present a prioritized project roadmap to improve ransomware resilience over time.

    • Ransomware Resilience Summary Presentation

    Infographic

    Workshop: Build Resilience Against Ransomware Attacks

    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 Ransomware Resilience

    The Purpose

    Set workshop goals, review ransomware trends and risk scenarios, and assess the organization’s resilience to ransomware attacks.

    Key Benefits Achieved

    Develop a solid understanding of the likelihood and impact of a ransomware attack on your organization.

    Complete a current state assessment of key security controls in a ransomware context.

    Activities

    1.1 Review incidents, challenges, and project drivers.

    1.2 Diagram critical systems and dependencies and build risk scenario.

    1.3 Assess ransomware resilience.

    Outputs

    Workshop goals

    Ransomware Risk Scenario

    Ransomware Resilience Assessment

    2 Protect and Detect

    The Purpose

    Improve your capacity to protect your organization from ransomware and detect attacks along common vectors.

    Key Benefits Achieved

    Identify targeted countermeasures that improve protection and detection capabilities.

    Activities

    2.1 Assess ransomware threat preparedness.

    2.2 Determine the impact of ransomware techniques on your environment.

    2.3 Identify countermeasures to improve protection and detection capabilities.

    Outputs

    Targeted ransomware countermeasures to improve protection and detection capabilities.

    Targeted ransomware countermeasures to improve protection and detection capabilities.

    Targeted ransomware countermeasures to improve protection and detection capabilities.

    3 Respond and Recover

    The Purpose

    · Improve your organization’s capacity to respond to ransomware attacks and recover effectively.

    Key Benefits Achieved

    Build response and recovery capabilities that reduce the potential business disruption of successful ransomware attacks.

    Activities

    3.1 Review the workflow and runbook templates.

    3.2 Update/define your threat escalation protocol.

    3.3 Define scenarios for a range of incidents.

    3.4 Run a tabletop planning exercise (IT).

    3.5 Update your ransomware response runbook.

    Outputs

    Security Incident Response Plan Assessment.

    Tabletop Planning Session (IT)

    Ransomware Workflow and Runbook.

    4 Improve Ransomware Resilience.

    The Purpose

    Identify prioritized initiatives to improve ransomware resilience.

    Key Benefits Achieved

    Identify the role of leadership in ransomware response and recovery.

    Communicate workshop outcomes and recommend initiatives to improve ransomware resilience.

    Activities

    4.1 Run a tabletop planning exercise (Leadership).

    4.2 Identify initiatives to close gaps and improve resilience.

    4.3 Review broader strategies to improve your overall security program.

    4.4 Prioritize initiatives based on factors such as effort, cost, and risk.

    4.5 Review the dashboard to fine tune your roadmap.

    4.6 Summarize status and next steps in an executive presentation.

    Outputs

    Tabletop Planning Session (Leadership)

    Ransomware Resilience Roadmap and Metrics

    Ransomware Workflow and Runbook

    Further reading

    Build Ransomware Resilience

    Prevent ransomware incursions and defend against ransomware attacks

    EXECUTIVE BRIEF

    Executive Summary

    Your Challenge

    Ransomware is a high-profile threat that demands immediate attention:

    • Sophisticated ransomware attacks are on the rise and evolving quickly.
    • Emerging strains can exfiltrate sensitive data, encrypt systems, and destroy backups in only a few hours, which makes recovery a grueling challenge.
    • Executives want reassurance but aren't ready to write a blank check. Improvements must be targeted and justified.

    Common Obstacles

    Ransomware is more complex than other security threats:

    • Malicious agents design progressive, disruptive attacks to pressure organizations to pay a ransom.
    • Organizations misunderstand ransomware risk scenarios, which obscures the likelihood and impact of an attack.
    • Conventional approaches focus on response and recovery, which do nothing to prevent an attack and are often ineffective against sophisticated attacks.

    Info-Tech's Approach

    To prevent a ransomware attack:

    • Conduct a through assessment of your current state, identify potential gaps, and assess the possible outcomes of an attack.
    • Analyze attack vectors and prioritize controls that prevent ransomware attacks, and implement ransomware protection and detection to reduce your attack surface.
    • Visualize, plan, and practice your response and recovery to reduce the potential impact of an attack.

    Info-Tech Insight

    Resilience is not a trampoline, where you're down one moment and up the next. It's more like climbing a mountain. It takes time, planning, and help from people around you to work through challenges. Focus on what is in your organization's control, and cultivate strengths that allow you to protect assets, detect incursions, respond effectively, and recovery quickly.

    Analyst Perspective

    Ransomware is an opportunity and a challenge.

    As I write, the frequency and impact of ransomware attacks continue to increase, with no end in sight. Most organizations will experience ransomware in the next 24 months, some more than once, and business leaders know it. You will never have a better chance to implement best practice security controls as you do now.

    The opportunity comes with important challenges. Hackers need to spend less time in discovery before they deploy an attack, which have become much more effective. You can't afford to rely solely on your ability to respond and recover. You need to build a resilient organization that can withstand a ransomware event and recover quickly.

    Resilient organizations are not impervious to attack, but they have tools to protect assets, detect incursions, and respond effectively. Resilience is not a trampoline, where you're down one moment and up the next. It's more like climbing a mountain. It takes time, planning, and help from people around you to overcome challenges and work through problems. But eventually you reach the top and look back at how far you've come.

    This is an image of Michael Hébert

    Michel Hébert
    Research Director, Security and Privacy
    Info-Tech Research Group

    Ransomware attacks are on the rise and evolving quickly.

    Three factors contribute to the threat:

    • The rise of ransomware-as-a-service, which facilitates attacks.
    • The rise of crypto-currency, which facilitates anonymous payment.
    • State sponsorship of cybercrime.

    Elementus maps ransomware payments made through bitcoin. Since 2019, victims made at least $2B in payments.

    A handful of criminal organizations, many of whom operate out of cybercrime hotbeds in Russia, are responsible for most of the damage. The numbers capture only the ransom paid, not the clean-up cost and economic fallout over attacks during this period.

    Total ransom money collected (2015 – 2021): USD 2,592,889,121

    This image contains a bubble plot graph showing the total ransom money collected between the years 2015 - 2021.

    The frequency and impact of ransomware attacks are increasing

    Emerging strains can exfiltrate sensitive data, encrypt systems and destroy backups in only a few hours, which makes recovery a grueling challenge.

    Sophos commissioned a vendor agnostic study of the real-world experience of 5,600 IT professionals in mid-sized organizations across 31 countries and 15 industries.

    The survey was conducted in Jan – Feb 2022 and asked about the experience of respondents over the previous year.

    66%
    Hit by ransomware in 2021
    (up from 37% in 2020)

    90%
    Ransomware attack affected their ability to operate

    $812,360 USD
    Average ransom payment

    $4.54M
    Average remediation cost (not including ransom)

    ONE MONTH
    Average recovery time

    Meanwhile, organizations continue to put their faith in ineffective ransomware defenses.

    Of the respondents whose organizations weren't hit by ransomware in 2021 and don't expect to be hit in the future, 72% cited either backups or cyberinsurance as reasons why they anticipated an attack.

    While these elements can help recover from an attack, they don't prevent it in the first place.

    Source: Sophos, State of Ransomware (2022)
    IBM, Cost of A Data Breach (2022)

    The 3-step ransomware attack playbook

    • Get in
    • Spread
    • Profit

    At each point of the playbook, malicious agents need to achieve something before they can move to the next step.

    Resilient organizations look for opportunities to:

    • Learn from incursions
    • Disrupt the playbook
    • Measure effectiveness

    Initial access

    Execution

    Privilege Escalation

    Credential Access

    Lateral Movement

    Collection

    Data Exfiltration

    Data encryption

    Deliver phishing email designed to avoid spam filter.

    Launch malware undetected.

    Identify user accounts.

    Target an admin account.

    Use brute force tactics to crack it.

    Move through the network and collect data.

    Infect as many critical systems and backups as possible to limit recovery options.

    Exfiltrate data to gain leverage.

    Encrypt data, which triggers alert.

    Deliver ransom note.

    Ransomware is more complex than other security threats

    Ransomware groups thrive through extortion tactics.

    • Traditionally, ransomware attacks focused on encrypting files as an incentive for organizations to pay up.
    • As organizations improved backup and recovery strategies, gangs began targeting, encrypting, and destroying back ups.
    • Since 2019, gangs have focused on a double-extortion strategy: exfiltrate sensitive or protected data before encrypting systems and threaten to publish them.

    Organizations misunderstand ransomware risk scenarios, which obscures the potential impact of an attack.

    Ransom is only a small part of the equation. Four process-related activities drive ransomware recovery costs:

    • Detection and Response – Activities that enable detection, containment, eradication and recovery.
    • Notification – Activities that enable reporting to data subjects, regulators, law enforcement, and third parties.
    • Lost Business – Activities that attempt to minimize the loss of customers, business disruption, and revenue.
    • Post Breach Response – Redress activities to victims and regulators, and the implementation of additional controls.

    Source: IBM, Cost of a Data Breach (2022)

    Disrupt the attack each stage of the attack workflow.

    An effective response with strong, available backups will reduce the operational impact of an attack, but it won't spare you from its reputational and regulatory impact.

    Put controls in place to disrupt each stage of the attack workflow to protect the organization from intrusion, enhance detection, respond quickly, and recover effectively.

    Shortening dwell time requires better protection and detection

    Ransomware dwell times and average encryption rates are improving dramatically.

    Hackers spend less time in your network before they attack, and their attacks are much more effective.

    Avg dwell time
    3-5 Days

    Avg encryption rate
    70 GB/h

    Avg detection time
    11 Days

    What is dwell time and why does it matter?

    Dwell time is the time between when a malicious agent gains access to your environment and when they are detected. In a ransomware attack, most organizations don't detect malicious agents until they deploy ransomware, encrypt their files, and lock them out until they pay the ransom.

    Effective time is a measure of the effectiveness of the encryption algorithm. Encryption rates vary by ransomware family. Lockbit has the fastest encryption rate, clocking in at 628 GB/h.

    Dwell times are dropping, and encryption rates are increasing.

    It's more critical than ever to build ransomware resilience. Most organizations do not detect ransomware incursions in time to prevent serious business disruption.

    References: Bleeping Computers (2022), VentureBeat, Dark Reading, ZDNet.

    Resilience depends in part on response and recovery capabilities

    This blueprint will focus on improving your ransomware resilience to:

    • Protect against ransomware.
    • Detect incursions.
    • Respond and recovery effectively.

    Response

    Recovery

    This image depicts the pathway for response and recovery from a ransomware event.

    For in-depth assistance with disaster recovery planning, refer to Info-Tech's Create a Right-Sized Disaster Recovery.

    Info-Tech's ransomware resilience framework

    Disrupt the playbooks of ransomware gangs. Put controls in place to protect, detect, respond and recover effectively.

    Prioritize protection

    Put controls in place to harden your environment, train savvy end users, and prevent incursions.

    Support recovery

    Build and test a backup strategy that meets business requirements to accelerate recovery and minimize disruption.

    Protect Detect Respond

    Recover

    Threat preparedness

    Review ransomware threat techniques and prioritize detective and mitigation measures for initial and credential access, privilege escalation, and data exfiltration.

    Awareness and training

    Develop security awareness content and provide cybersecurity and resilience training to employees, contractors and third parties.

    Perimeter security

    Identify and implement network security solutions including analytics, network and email traffic monitoring, and intrusion detection and prevention.

    Respond and recover

    Identify disruption scenarios and develop incident response, business continuity, and disaster recovery strategies.

    Access management

    Review the user access management program, policies and procedures to ensure they are ransomware-ready.

    Vulnerability management

    Develop proactive vulnerability and patch management programs that mitigate ransomware techniques and tactics.

    This image contains the thought map for Info-Tech's Blueprint: Build Resilience Against Ransomware Attacks.

    Info-Tech's ransomware resilience methodology

    Assess resilience Protect and detect Respond and recover Improve resilience
    Phase steps
    1. Build ransomware risk scenario
    2. Conduct resilience assessment
    1. Assess attack vectors
    2. Identify countermeasures
    1. Review Security Incident Management Plan
    2. Run Tabletop Test (IT)
    3. Document Workflow and Runbook
    1. Run Tabletop Test (Leadership)
    2. Prioritize Resilience Initiatives
    Phase outcomes
    • Ransomware Resilience Assessment
    • Risk Scenario
    • Targeted ransomware countermeasures to improve protection and detection capabilities
    • Security Incident Response Plan Assessment
    • Tabletop Test (IT)
    • Ransomware Workflow and Runbook
    • Tabletop Test (Leadership)
    • Ransomware Resilience Roadmap & Metrics

    Insight Summary

    Shift to a ransomware resilience model

    Resilience is not a trampoline, where you're down one moment and up the next. It's more like climbing a mountain. It takes time, planning, and help from people around you to work through challenges.

    Focus on what is in your organization's control, and cultivate strengths that allow you to protect assets, detect incursions, and respond and recover quickly

    Visualize challenges

    Build risk scenarios that describe how a ransomware attack would impact organizational goals.

    Understand possible outcomes to motivate initiatives, protect your organization, plan your response, and practice recovery.

    Prioritize protection

    Dwell times and effective times are dropping dramatically. Malicious agents spend less time in your network before they deploy an attack, and their attacks are much more effective. You can't afford to rely on your ability to respond and recover alone.

    Seize the moment

    The frequency and impact of ransomware attacks continue to increase, and business leaders know it. You will never have a better chance to implement best practice security controls than you do now.

    Measure ransomware resilience

    The anatomy of ransomware attack is relatively simple: malicious agents get in, spread, and profit. Deploy ransomware protection metrics to measure ransomware resilience at each stage.

    Key deliverable

    Ransomware resilience roadmap

    The resilience roadmap captures the key insights your work will generate, including:

    • An assessment of your current state and a list of initiatives you need to improve your ransomware resilience.
    • The lessons learned from building and testing the ransomware response workflow and runbook.
    • The controls you need to implement to measure and improve your ransomware resilience over time.

    Project deliverables

    Info-Tech supports project and workshop activities with deliverables to help you accomplish your goals and accelerate your success.

    Ransomware Resilience Assessment

    Measure ransomware resilience, identify gaps, and draft initiatives.

    Enterprise Threat Preparedness Workbook

    Analyze common ransomware techniques and develop countermeasures.

    Ransomware Response Workflow & Runbook

    Capture key process steps for ransomware response and recovery.

    Ransomware Tabletop Tests

    Run tabletops for your IT team and your leadership team to gather lessons learned.

    Ransomware Resilience Roadmap

    Capture project insights and measure resilience over time.

    Plan now or pay later

    Organizations worldwide spent on average USD 4.62M in 2021 to rectify a ransomware attack. These costs include escalation, notification, lost business and response costs, but did not include the cost of the ransom. Malicious ransomware attacks that destroyed data in destructive wiper-style attacks cost an average of USD 4.69M.

    Building better now is less expensive than incurring the same costs in addition to the clean-up and regulatory and business disruption costs associated with successful ransomware attacks.

    After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research and advisory services helped them achieve.

    Source: IBM, Cost of a Data Breach (2022)

    See what members have to say about the ransomware resilience blueprint:

    • Overall Impact: 9.8 / 10
    • Average $ Saved: $98,796
    • Average Days Saved: 17

    "Our advisor was well-versed and very polished. While the blueprint alone was a good tool to give us direction, his guidance made it significantly faster and easier to accomplish than if we had tried to tackle it on our own."

    CIO, Global Manufacturing Organization

    Blueprint benefits

    IT benefits

    Business benefits

    • Provide a structured approach for your organization to identify gaps, quantify the risk, and communicate status to drive executive buy-in.
    • Create a practical ransomware incident response plan that combines a high-level workflow with a detailed runbook to coordinate response and recovery.
    • Present an executive-friendly project roadmap with resilience metrics that summarizes your plan to address gaps and improve your security posture.
    • Enable leadership to make risk-based, informed decisions on resourcing and investments to improve ransomware readiness.
    • Quantify the potential impact of a ransomware attack on your organization to drive risk awareness.
    • Identify existing gaps so they can be addressed, whether by policy, response plans, technology, or a combination of these.

    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

    Executive brief case study

    SOURCE: Interview with CIO of large enterprise

    Organizations who "build back better" after a ransomware attack often wish they had used relevant controls sooner.

    Challenge

    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 was breached, the organization informed 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 had a copy on an unaffected server.

    Resolution

    The organization was praised for its timely and transparent response.

    The breach motivated the organization to put more protections in place, including:

    • The implementation of a deny-by-default network.
    • The elimination of remote desktop protocol and secure shell.
    • IT mandating MFA.
    • New endpoint-detection and response systems.

    Executive brief case study

    SOURCE: Info-Tech Workshop Results
    iNDUSTRY: Government

    Regional government runs an Info-Tech workshop to fast-track its ransomware incident response planning

    The organization was in the middle of developing its security program, rolling out security awareness training for end users, and investing in security solutions to protect the environment and detect incursions. Still, the staff knew they still had holes to fill. They had not yet fully configured and deployed security solutions, key security policies were missing, and they had didn't have a documented ransomware incident response plan.

    Workshop results

    Info-Tech advisors helped the organization conduct a systematic review of existing processes, policies, and technology, with an eye to identify key gaps in the organization's ransomware readiness. The impact analysis quantified the potential impact of a ransomware attack on critical systems to improve the organizational awareness ransomware risks and improve buy-in for investment in the security program.

    Info-Tech's tabletop planning exercise provided a foundation for the organization's actual response plan. The organization used the results to build a ransomware response workflow and the framework for a more detailed runbook. The workshop also helped staff identifies ways to improve the backup strategy and bridge further gaps in their ability to recover.

    The net result was a current-state response plan, appropriate capability targets aligned with business requirements, and a project roadmap to achieve the organization's desired state of ransomware readiness.

    Guided implementation

    What kind of analyst experiences do clients have when working through this blueprint?

    Scoping Call Phase 1 Phase 2 Phase 3 Phase 4

    Call #1:

    Discuss context, identify challenges, and scope project requirements.

    Identify ransomware resilience metrics.

    Call #2:

    Build ransomware risk scenario.

    Call #4:

    Review common ransomware attack vectors.

    Identify and assess mitigation controls.

    Call #5:

    Document ransomware workflow and runbook.

    Call #7:

    Run tabletop test with leadership.

    Call #3:

    Assess ransomware resilience.

    Call #6:

    Run tabletop test with IT.

    Call #8:

    Build ransomware roadmap.

    Measure ransomware resilience metrics.

    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 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

    Assess ransomware resilience

    Protect and detect

    Respond and recover

    Improve ransomware resilience

    Wrap-up (offsite and offline)

    1.1 1 Review incidents, challenges, and project drivers.

    1.1.2 Diagram critical systems and dependencies.

    1.1.3 Build ransomware risk scenario.

    2.1 1. Assess ransomware threat preparedness.

    2.2 2. Determine the impact of ransomware techniques on your environment.

    2.3 3. Identify countermeasures to improve protection and detection capabilities.

    3.1.1 Review the workflow and runbook templates.

    3.1.2 Update/define your threat escalation protocol.

    3.2.1 Define scenarios for a range of incidents.

    3.2.2 Run a tabletop planning exercise (IT).

    3.3.1 Update your ransomware response workflow.

    4.1.1 Run a tabletop planning exercise (leadership).

    4.1.2 Identify initiatives to close gaps and improve resilience.

    4.1.3 Review broader strategies to improve your overall security program.

    4.2.1 Prioritize initiatives based on factors such as effort, cost, and risk.

    4.2.2 Review the dashboard to fine tune your roadmap.

    4.3.1 Summarize status and next steps in an executive presentation.

    5.1 Complete in-progress deliverables from previous four days.

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

    5.3 Revisit ransomware resilience metrics in three months.

    Deliverables
    1. Workshop goals
    2. Ransomware Risk Scenario
    3. Ransomware Resilience Assessment
    1. Targeted ransomware countermeasures to improve protection and detection capabilities.
    1. Security Incident Response Plan Assessment
    2. Tabletop Planning Session (IT)
    3. Ransomware Workflow and Runbook
    1. Tabletop Planning Session (Leadership)
    2. Ransomware Resilience Roadmap and Metrics
    3. Ransomware Summary Presentation
    1. Completed Ransomware Resilience Roadmap
    2. Ransomware Resilience Assessment
    3. Ransomware Resilience Summary Presentation

    Phase 1

    Assess ransomware resilience

    Phase 1 Phase 2 Phase 3 Phase 4

    1.1 Build ransomware risk scenario

    1.2 Conduct resilience assessment

    2.1 Assess attack vectors

    2.2 Identify countermeasures

    3.1 Review Security Incident Management Plan

    3.2 Run Tabletop Test (IT)

    3.3 Document Workflow and Runbook

    4.1 Run Tabletop Test (Leadership)

    4.2 Prioritize resilience initiatives

    4.3 Measure resilience metrics

    This phase will walk you through the following activities:

    • Conducting a maturity assessment.
    • Reviewing selected systems and dependencies.
    • Assessing a ransomware risk scenario.

    This phase involves the following participants:

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    Build Ransomware Resilience

    Step 1.1

    Build ransomware risk scenario

    Activities

    1.1.1 Review incidents, challenges and project drivers

    1.1.2 Diagram critical systems and dependencies

    1.1.3 Build ransomware risk scenario

    Assess ransomware resilience

    This step will guide you through the following activities:

    • Reviewing incidents, challenges, and drivers.
    • Diagraming critical systems and dependencies.
    • Building a ransomware risk scenario.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)
    • Subject-Matter Experts

    Outcomes of this step

    • Establish a repeatable process to evaluate and improve ransomware readiness across your environment.
    • Build a ransomware risk scenario to assess the likelihood and impact of an attack.

    1.1.1 Review incidents, challenges, and project drivers

    1 hour

    Brainstorm the challenges you need to address in the project. Avoid producing solutions at this stage, but certainly record suggestions for later. Use the categories below to get the brainstorming session started.

    Past incidents and other drivers

    • Past incidents (be specific):
      • Past security incidents (ransomware and other)
      • Close calls (e.g. partial breach detected before damage done)
    • Audit findings
    • Events in the news
    • Other?

    Security challenges

    • Absent or weak policies
    • Lack of security awareness
    • Budget limitations
    • Other?

    Input

    • Understanding of existing security capability and past incidents.

    Output

    • Documentation of past incidents and challenges.
    • Level-setting across the team regarding challenges and drivers.

    Materials

    • Whiteboard or flip chart (or a shared screen if staff are remote)

    Participants

    • Security Incident Response Team (SIRT)

    1.1.2 Diagram critical systems and dependencies (1)

    1 hour

    Brainstorm critical systems and their dependencies to build a ransomware risk scenario. The scenario will help you socialize ransomware risks with key stakeholders and discuss the importance of ransomware resilience.

    Focus on a few key critical systems.

    1. On a whiteboard or flip chart paper, make a list of systems to potentially include in scope. Consider:
      1. Key applications that support critical business operations.
      2. Databases that support multiple key applications.
      3. Systems that hold sensitive data (e.g. data with personally identifiable information [PII]).
    2. Select five to ten systems from the list.
      1. Select systems that support different business operations to provide a broader sampling of potential impacts and recovery challenges.
      2. Include one or two non-critical systems to show how the methodology addresses a range of criticality and context.

    Input

    • High-level understanding of critical business operations and data sets.

    Output

    • Clarify context, dependencies, and security and recovery challenges for some critical systems.

    Materials

    • Whiteboard or flip chart (or a shared screen if staff are remote)

    Participants

    • Security Incident Response Team (SIRT)
    • System SMEs (if not covered by SIRT members)

    1.1.2 Diagram critical systems and dependencies (2)

    1 hour

    1. A high-level topology or architectural diagram is an effective way to identify dependencies and communicate risks to stakeholders.

    Start with a WAN diagram, then your production data center, and then each critical
    system. Use the next three slides as your guide.

    Notes:

    • If you have existing diagrams, you can review those instead. However, if they are too detailed, draw a higher-level diagram to provide context. Even a rough sketch is a useful reference tool for participants.
    • Keep the drawings tidy and high level. Visualize the final diagram before you start to draw on the whiteboard to help with spacing and placement.
    • Collaborate with relevant SMEs to identify dependencies.

    Input

    • High-level understanding of critical business operations and data sets.

    Output

    • Clarify context, dependencies, and security and recovery challenges for some critical systems.

    Materials

    • Whiteboard or flip chart (or a shared screen if staff are remote)

    Participants

    • Security Incident Response Team (SIRT)
    • System SMEs (if not covered by SIRT members)

    For your WAN diagram, focus on data center and business locations

    Start with a high-level network diagram like this one, and then dig deeper (see following slides) to provide more context. Below is an example; of course, your sketched diagrams may be rougher.

    This image contains a nexample of a High level Network Diagram.

    Diagram your production data center to provide context for the systems in scope

    Creating a high-level diagram provides context across different IT disciplines involved in creating your DRP. If you have multiple production data centers, focus on the data center(s) relevant to the selected systems. Below is an example.

    This image contains a nexample of a high level diagram which focuses on the data centers relevent to the selected system.

    Diagram each selected system to identify specific dependencies and redundancies

    Diagram the "ecosystem" for each system, identifying server, storage, and network dependencies. There may be overlap with the production data center diagram – but aim to be specific here. Below is an example that illustrates front-end and back-end components.

    When you get to this level of detail, use this opportunity to level-set with the team. Consider the following:

    • Existing security (Are these systems protected by your existing security monitoring and threat detection tools?).
    • Security challenges (e.g. public-facing systems).
    • Recovery challenges (e.g. limited or infrequent backups).
    This is an example of a diagram of a system ecosystem.

    Note the limitations of your security, backup, and DR solutions

    Use the diagrams to assess limitations. Gaps you identify here will often apply to other aspects of your environment.

    1. Security limitations
    • Are there any known security vulnerabilities or risks, such as external access (e.g. for a customer portal)? If so, are those risks mitigated? Are existing security solutions being fully used?
  • Backup limitations
    • What steps are taken to ensure the integrity of your backups (e.g. through inline or post-backup scanning, or the use of immutable backups)? Are there multiple restore points to provide more granularity when determining how far back you need to go for a clean backup?
  • Disaster recovery limitations
    • Does your DR solution account for ransomware attacks or is it designed only for one-way failover (i.e. for a smoking hole scenario)?
  • We will review the gaps we identify through the project in phase 4.

    For now, make a note of these gaps and continue with the next step.

    Draft risk scenarios to illustrate ransomware risk

    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.

    Risk identification → Risk scenario → Risk statement

    Well-crafted risk scenarios have four components

    The slides walk through how to build a ransomware risk scenario

    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 and 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 ransomware risks.

    1.1.3 Build ransomware risk scenario (1)

    2 hours

    In a ransomware risk scenario, the threat, their motivations, and their methods are known. Malicious agents are motivated to compromise critical systems, sabotage recovery, and exfiltrate data for financial gain.

    The purpose of building the risk scenario is to highlight the assets at risk and the potential effect of a ransomware attack.

    As a group, consider critical or mission-essential systems identified in step 1.1.2. On a whiteboard, brainstorm the potential adverse effect of a loss of system availability, confidentiality or integrity.

    Consider the impact on:

    • Information systems.
    • Sensitive or regulated data.
    • Staff health and safety.
    • Critical operations and objectives.
    • Organizational finances.
    • Reputation and brand loyalty.

    Input

    • Understanding of critical systems and dependencies.

    Output

    • Ransomware risk scenario to engage guide stakeholders to make informed decisions about addressing risks.

    Materials

    • Whiteboard or flip chart (or a shared screen if staff are remote)

    Participants

    • Security Incident Response Team (SIRT)

    1.1.3 Build ransomware risk scenario (2)

    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.
    2. Bring together the critical risk elements into a single risk scenario.
    3. Distill the risk scenario into a single risk statement that captures the threat, the asset it will exploit, the method it will use, and the impact it will have on the organization.
    4. You can find a sample risk scenario and risk statement on the next slide.

    THREAT Exploits an ASSET Using a METHOD Creating an EFFECT.

    Inputs for risk scenario identification

    Risk analysis

    Critical assets

    ERP, CRM, FMS, LMS

    Operational technology

    Sensitive or regulated data

    Threat agents

    Cybercriminals

    Methods

    Compromise end user devices through social engineering attacks,. Compromise networks through external exposures and software vulnerabilities.

    Identify and crack administrative account. Escalate privileges. Move laterally.

    Collect data, destroy backups, exfiltrate data for leverage, encrypt systems,.

    Threaten to publish exfiltrated data and demand ransom.

    Adverse effect

    Serious business disruption

    Financial damage

    Reputational damage

    Potential litigation

    Average downtime: 30 Days

    Average clean-up costs: USD 1.4M

    Sample ransomware risk scenario

    Likelihood: Medium
    Impact: High

    Risk scenario

    Cyber-criminals penetrate the network, exfiltrate critical or sensitive data, encrypt critical systems, and demand a ransom to restore access.

    They threaten to publish sensitive data online to pressure the organization to pay the ransom, and reach out to partners, staff, and students directly to increase the pressure on the organization.

    Network access likely occurs through a phishing attack, credential compromise, or remote desktop protocol session.

    Risk statement

    Cybercriminals penetrate the network, compromise backups, exfiltrate and encrypt data, and disrupt computer systems for financial gain.

    Threat Actor:

    • Cybercriminals

    Assets:

    • Critical systems (ERP, FMS, CRM, LMS)
    • HRIS and payroll
    • Data warehouse
    • Office 365 ecosystem (email, Teams)

    Effect:

    • Loss of system availability
    • Lost of data confidentiality

    Methods:

    • Phishing
    • Credential compromise
    • Compromised remote desktop protocol
    • Privilege escalation
    • Lateral movement
    • Data collection
    • Data exfiltration
    • Data encryption

    Step 1.2

    Conduct resilience assessment

    Activities

    1.2.1 Complete resilience assessment

    1.2.2 Establish resilience metrics

    This step will guide you through the following activities :

    • Completing a ransomware resilience assessment
    • Establishing baseline metrics to measure ransomware resilience.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)
    • Subject-matter experts

    .Outcomes of this step

    • Current maturity, targets, and initial gap analysis

    Maturity levels in this blueprint draw on the CMMI framework

    The maturity levels are based on the Capability Maturity Model Integration framework. We outline our modifications below.

    CMMI Maturity Level – Default Descriptions:

    CMMI Maturity Level – Modified for This Assessment:

    • Level 1 – Initial: Unpredictable and reactive. Work gets completed but is often delayed and over budget.
    • Level 2 – Managed: Managed on the project level. Projects are planned, performed, measured, and controlled.
    • Level 3 – Defined: Proactive rather than reactive. Organization-wide standards provide guidance across projects, programs, and portfolios.
    • Level 4 – Quantitatively managed: Measured and controlled. Organization is data-driven, with quantitative performance improvement objectives that are predictable and align to meet the needs of internal and external stakeholders.
    • Level 5 – Optimizing: Stable and flexible. Organization is focused on continuous improvement and is built to pivot and respond to opportunity and change. The organization's stability provides a platform for agility and innovation.
    • Level 1 – Initial/ad hoc: Not well defined and ad hoc in nature.
    • Level 2 – Developing: Established but inconsistent and incomplete.
    • Level 3 – Defined: Formally established, documented, and repeatable.
    • Level 4 – Managed and measurable: Managed using qualitative and quantitative data to ensure alignment with business requirements.
    • Level 5 – Optimizing: Qualitative and quantitative data is used to continually improve.

    (Source: CMMI Institute, CMMI Levels of Capability and Performance)

    Info-Tech's ransomware resilience framework

    Disrupt the playbooks of ransomware gangs. Put controls in place to protect, detect, respond and recover effectively.

    Prioritize protection

    Put controls in place to harden your environment, train savvy end users, and prevent incursions.

    Support recovery

    Build and test a backup strategy that meets business requirements to accelerate recovery and minimize disruption.

    Protect Detect Respond

    Recover

    Threat preparedness

    Review ransomware threat techniques and prioritize detective and mitigation measures for initial and credential access, privilege escalation, and data exfiltration.

    Awareness and training

    Develop security awareness content and provide cybersecurity and resilience training to employees, contractors and third parties.

    Perimeter security

    Identify and implement network security solutions including analytics, network and email traffic monitoring, and intrusion detection and prevention.

    Respond and recover

    Identify disruption scenarios and develop incident response, business continuity, and disaster recovery strategies.

    Access management

    Review the user access management program, policies and procedures to ensure they are ransomware-ready.

    Vulnerability management

    Develop proactive vulnerability and patch management programs that mitigate ransomware techniques and tactics.

    1.2.1 Complete the resilience assessment

    2-3 hours

    Use the Ransomware Resilience Assessment Tool to assess maturity of existing controls, establish a target state, and identify an initial set of initiatives to improve ransomware resilience.

    Keep the assessment tool on hand to add gap closure initiatives as you proceed through the project.

    Download the Ransomware Resilience Assessment

    Outcomes:

    • Capture baseline resilience metrics to measure progress over time.
      • Low scores are common. Use them to make the case for security investment.
      • Clarify the breadth of security controls.
      • Security controls intersect with a number of key processes and technologies, each of which are critical to ransomware resilience.
    • Key gaps identified.
      • Allocate more time to subsections with lower scores.
      • Repeat the scorecard at least annually to clarify remaining areas to address.

    Input

    • Understanding of current security controls

    Output

    • Current maturity, targets, and gaps

    Materials

    • Ransomware Resilience Assessment Tool

    Participants

    • Security Incident Response Team (SIRT)

    This is an image of the Ransomeware Resilience Assessment Table from Info-Tech's Ransomware Resilience Assessment Blueprint.

    1.2.2 Establish resilience metrics

    Ransomware resilience metrics track your ability to disrupt a ransomware attack at each stage of its workflow.

    Measure metrics at the start of the project to establish a baseline, as the project nears completion to measure progress.

    Attack workflow Process Metric Target trend Current Goal
    GET IN Vulnerability Management % Critical patches applied Higher is better
    Vulnerability Management # of external exposures Fewer is better
    Security Awareness Training % of users tested for phishing Higher is better
    SPREAD Identity and Access Management Adm accounts / 1000 users Lower is better
    Identity and Access Management % of users enrolled for MFA Higher is better
    Security Incident Management Avg time to detect Lower is better
    PROFIT Security Incident Management Avg time to resolve Lower is better
    Backup and Disaster Recovery % critical assets with recovery test Higher is better
    Backup and Disaster Recovery % backup to immutable storage Higher is better

    Phase 2

    Improve protection and detection capabilities

    Phase 1Phase 2Phase 3Phase 4

    1.1 Build ransomware risk scenario

    1.2 Conduct resilience assessment

    2.1 Assess attack vectors

    2.2 Identify countermeasures

    3.1 Review Security Incident Management Plan

    3.2 Run Tabletop Test (IT)

    3.3 Document Workflow and Runbook

    4.1 Run Tabletop Test (Leadership)

    4.2 Prioritize resilience initiatives

    4.3 Measure resilience metrics

    This phase will walk you through the following activities:

    • Assessing common ransomware attack vectors.
    • Identifying countermeasures to improve protection and detection capabilities.

    This phase involves the following participants:

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    Build Ransomware Resilience

    Step 2.1

    Assess attack vectors

    Activities

    2.1.1 Assess ransomware threat preparedness

    2.1.2 Determine the impact of ransomware techniques on your environment

    This step involves the following activities:

    • Assessing ransomware threat preparedness.
    • Configuring the threat preparedness tool.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    Outcomes of this step

    Assess risks associated with common ransomware attack vectors.

    Improve protection and detection capabilities

    Use the MITRE attack framework to prepare

    This phase draws on MITRE to improve ransomware protection and detection capabilities

    • The activities in this phase provide guidance on how to use the MITRE attack framework to protect your organizations against common ransomware techniques and tactics, and detect incursions.
    • You will:
      • Review common ransomware tactics and techniques.
      • Assess their impact on your environment.
      • Identify relevant countermeasures.
    • The Enterprise Threat Preparedness Workbook included with the project blueprint will be set up to deal with common ransomware threats and tactics.

    Download the Enterprise Threat Preparedness Workbook

    Review ransomware tactics and techniques

    Ransomware attack workflow

    Deliver phishing email designed to avoid spam filter.

    Launch malware undetected.

    Identify user accounts.

    Target an admin account.

    Use brute force tactics to crack it.

    Move through the network. Collect data.

    Infect critical systems and backups to limit recovery options.

    Exfiltrate data to gain leverage.

    Encrypt data, which triggers alert.

    Deliver ransom note.

    Associated MITRE tactics and techniques

    • Initial access
    • Execution
    • Privilege escalation
    • Credential access
    • Lateral movement
    • Collection
    • Data Exfiltration
    • Data encryption

    Most common ransomware attack vectors

    • Phishing and social engineering
    • Exploitation of software vulnerabilities
    • Unsecured external exposures
      • e.g. remote desktop protocols
    • Malware infections
      • Email attachments
      • Web pages
      • Pop-ups
      • Removable media

    2.1.1 Assess ransomware threat preparedness

    Estimated Time: 1-4 hours

    1. Read through the instructions in the Enterprise Threat Preparedness Workbook.
    2. Select ransomware attack tactics to analyze. Use the workbook to understand:
      1. Risks associated with each attack vector.
      2. Existing controls that can help you protect the organization and detect an incursion.
    3. This initial analysis is meant to help you understand your risk before you apply additional controls.

    Once you're comfortable, follow the instructions on the following pages to configure the MITRE ransomware analysis and identify how to improve your protection and detection capabilities.

    Download the Enterprise Threat Preparedness Workbook

    Input

    • Knowledge about existing infrastructure.
    • Security protocols.
    • Information about ransomware attack tactics, techniques, and mitigation protocols.

    Output

    • Structured understanding of the risks facing the enterprise based on your current preparedness and security protocols.
    • Protective and detective measures to improve ransomware resilience.

    Materials

    • Enterprise Threat Preparedness Workbook

    Participants

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    2.1.2 Determine the impact of techniques

    Estimated Time: 1-4 hours

    1. The Enterprise Threat Preparedness Workbook included with the project blueprint is set up to deal with common ransomware use cases.

    If you would like to change the set-up, go through the following steps.

    • Review the enterprise matrix. Select the right level of granularity for your analysis. If you are new to threat preparedness exercises, the Technique Level is a good starting point.
    • As you move through each tactic, align each sheet to your chosen technique domain to ensure the granularity of your analysis is consistent.
    • Read the tactics sheet from left to right. Determine the impact of the technique on your environment. For each control, indicate current mitigation levels using the dropdown list.

    The following slides walk you through the process with screenshots from the workbook.

    Download the Enterprise Threat Preparedness Workbook

    Input

    • Knowledge about existing infrastructure.
    • Security protocols.
    • Information about ransomware attack tactics, techniques, and mitigation protocols.

    Output

    • Structured understanding of the risks facing the enterprise based on your current preparedness and security protocols.
    • Protective and detective measures to improve ransomware resilience.

    Materials

    • Enterprise Threat Preparedness Workbook

    Participants

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    Select the domain for the analysis

    • The Tactics Dashboard is a live feed of your overall preparedness for the potential attack vectors that your organization may face. These 14 tactics correspond to the Enterprise Matrix used by the MITRE ATT&CK® framework.
    • The technique domain on the right side of the sheet is split in two main groups:
    • The Technique Level
      • - High-level techniques that an attacker may use to gain entry to your network.
      • - The Technique Level is a great starting point if you are new to threat preparedness.
    • The Sub-Technique Level
      • - Individual sub-techniques found throughout the MITRE ATT&CK® Framework.
      • - More mature organizations will find the Sub-Technique Level generates a deeper and more precise understanding of their current preparedness.

    Info-Tech Insight

    Dwell times and effective times are dropping dramatically. Malicious agents spend less time in your network before they deploy an attack, and their attacks are much more effective. You can't afford to rely on your ability to respond and recover alone.

    This is the first screenshot from Info-Tech's Tactic Preparedness Assessment Dashboard.

    Keep an eye on the enterprise matrix

    As you fill out the Tactic tabs with your evaluation, the overall reading will display the average of your overall preparedness for that tactic.

    Choosing the Technique Domain level will increase the accuracy of the reporting at the cost of speed.

    The Technique level is faster but provides less specifics for each control and analyzes them as a group.

    The Sub-Technique level is much more granular, but each tactic and technique has several sub-techniques that you will need to account for.

    Check with the dashboard to see the associated risk level for each of the tactics based on the legend. Tactics that appear white have not yet been assessed or are rated as "N/A" (not applicable).

    This is the second screenshot from Info-Tech's Tactic Preparedness Assessment Dashboard.

    When you select your Technique Domain, you cannot change it again. Changing the domain mid-analysis will introduce inaccuracies in your security preparedness.

    Configure the tactics tabs

    • Each tactic has a corresponding tab at the bottom of the Excel workbook.
      Adjusting the Technique Domain level will change the number of controls shown.
    • Next, align the sheet to the domain you selected on Tab 2 before you continue. As shown in the example to the right,
      • Select "1" for Technique Level.
      • Select "2" for Sub-Technique Level.
    • This will collapse the controls to your chosen level of granularity.

    This is a screenshot showing how you can configure the tactics tab of the Ransomware Threat Preparedness Workbook

    Read tactic sheets from left to right

    This is a screenshot of the tactics tab of the Ransomware Threat Preparedness Workbook

    Technique:

    How an attacker will attempt to achieve their goals through a specific action.

    ID:

    The corresponding ID number on the MITRE ATT&CK® Matrix for quick reference.

    Impact of the Technique(s):

    If an attack of this type is successful on your network, how deep does the damage run?

    Current Mitigations:

    What security protocols do you have in place right now that can help prevent an attacker from successfully executing this attack technique? The rating is based on the CMMI scale.

    Determine the impact of the technique

    • For each control, indicate the current mitigation level using the dropdown list.
    • Only use "N/A" if you are confident that the control is not required in your organization.

    Info-Tech Insight

    We highly recommend that you write comments about your current-state security protocols. First, it's great to have documented your thought processes in the event of a threat modeling session. Second, you can speak to deficits clearly, when asked.

    This is the second screenshot from Info-Tech's Reconnaissance Tactic Analysis

    Review technique preparedness

    • If you have chosen the Technique level, the tool should resemble this image:
      • High-level controls are analyzed, and sub-controls hidden.
      • The sub-techniques under the broader technique show how a successful attack from this vector would impact your network.
    • Each sub-technique has a note for additional context:
      • Under Impact, select the overall impact for the listed controls to represent how damaging you believe the controls to be.
      • Next select your current preparedness maturity in terms of preparedness for the same techniques. Ask yourself "What do I have that contributes to blocking this technique?"

    This is the third screenshot from Info-Tech's Reconnaissance Tactic Analysis

    Info-Tech Insight

    You may discover that you have little to no mitigation actions in place to deal with one or many of these techniques. However, look at this discovery as a positive: You've learned more about the potential vectors and can actively work toward remediating them rather than hoping that a breach never happens through one of these avenues.

    Review sub-technique preparedness

    If you have chosen the Sub-Technique level, the tool should resemble this image.

    • The granular controls are being analyzed. However, the grouped controls will still appear. It is important to not fill the grouped sections, to make sure the calculations run properly.
    • The average of your sub-techniques will be calculated to show your overall preparedness level.
    • Look at the sub-techniques under the broader technique and consider how a successful attack from this vector would impact your network.

    Each sub-technique has a note for additional context and understanding about what the techniques are seeking to do and how they may impact your enterprise.

    • Because of the enhanced granularity, the final risk score is more representative of an enterprise's current mitigation capabilities.
    This is the fourth screenshot from Info-Tech's Reconnaissance Tactic Analysis

    Step 2.2

    Identify countermeasures

    Activities

    2.2.1 Identify countermeasures

    This step involves the following activities:

    • Identifying countermeasures

    This step involves the following participants:

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    Outcomes of this step

    Identification of countermeasures to common ransomware techniques, and tactics to improve protection and detection capabilities.

    Improve Protection and Detection Capabilities

    Review technique countermeasures

    As you work through the tool, your dashboard will prioritize your threat preparedness for each of the various attack techniques to give you an overall impression of your preparedness.

    For each action, the tool includes detection and remediation actions for you to consider either for implementation or as table stakes for your next threat modeling sessions.

    Note: Some sheets will have the same controls. However, the context of the attack technique may change your answers. Be sure to read the tactic and technique that you are on when responding to the controls.

    This is an image of the Privilege Escalation Tactic Analysis Table

    This is an image of the Defense Evasion Tactic Analysis Table

    Prioritize the analysis of ransomware tactics and sub-techniques identified on slide 45. If your initial analysis in Activity 2.2.1 determined that you have robust security protocols for some of the attack vectors, set these domains aside.

    2.2.1 Identify countermeasures

    Estimated Time: 1-4 hours

    1. Review the output of the Enterprise Threat Preparedness Workbook. Remediation efforts are on the right side of the sheet. These are categorized as either detection actions or mitigation actions.
      1. Detection actions:
      • What can you do before an attack occurs, and how can you block attacks? Detection actions may thwart an attack before it ever occurs.
    2. Mitigation actions:
      • If an attacker is successful through one of the attack methods, how do you lessen the impact of the technique? Mitigation actions address this function to slow and hinder the potential spread or damage of a successful attack.
  • Detection and mitigation measures are associated with each technique and sub-technique. Not all techniques will be able to be detected properly or mitigated. However, understanding their relationships can better prepare your defensive protocols.
  • Add relevant control actions to the initiative list in the Ransomware Resilience Assessment.
  • Input

    • Knowledge about existing infrastructure.
    • Security protocols.
    • Information about ransomware attack tactics, techniques, and mitigation protocols.
    • Outputs from the Threat Preparedness Workbook.

    Output

    • Structured understanding of the risks facing the enterprise based on your current preparedness and security protocols.
    • Protective and detective measures to improve ransomware resilience.

    Materials

    • Enterprise Threat Preparedness Workbook
    • Ransomware Resilience Assessment

    Participants

    • Security Incident Response Team (SIRT)
    • System subject-matter experts (SMEs)

    Phase 3

    Improve response and recovery capabilities

    Phase 1Phase 2Phase 3Phase 4

    1.1 Build ransomware risk scenario

    1.2 Conduct resilience assessment

    2.1 Assess attack vectors

    2.2 Identify countermeasures

    3.1 Review Security Incident Management Plan

    3.2 Run Tabletop Test (IT)

    3.3 Document Workflow and Runbook

    4.1 Run Tabletop Test (Leadership)

    4.2 Prioritize resilience initiatives

    4.3 Measure resilience metrics

    This phase will guide you through the following steps:

    • Documenting your threat escalation protocol.
    • Identify response steps and gaps.
    • Update your response workflow and runbook.

    This phase involves the following participants:

    • Security Incident Response Team (SIRT)

    Build Ransomware Resilience

    Step 3.1

    Review security incident management plan

    Activities

    3.1.1 Review the workflow and runbook templates

    3.1.2 Update/define your threat escalation protocol

    This step will walk you through the following activities:

    • Reviewing the example Workflow and Runbook
    • Updating and defining your threat escalation protocol.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)

    Outcomes of this step

    • Clear escalation path for critical incidents.
    • Common understanding of incident severity that will drive escalation.

    Improve response and recovery capabilities

    3.1.1 Review the workflow and runbook templates

    30 minutes

    This blueprint includes sample information in the Ransomware Response Workflow Template and Ransomware Response Runbook Template to use as a starting points for the steps in Phase 3, including documenting your threat escalation protocol.

    • The Ransomware Response Workflow Template contains an example of a high-level security incident management workflow for a ransomware attack. This provides a structure to follow for the tabletop planning exercise and a starting point for your ransomware response workflow.
      The Workflow is aimed at incident commanders and team leads. It provides an at-a-glance view of the high-level steps and interactions between stakeholders to help leaders coordinate response.
    • The Ransomware Response Runbook Template is an example of a security incident management runbook for a ransomware attack. This includes a section for a threat escalation protocol that you can use as a starting point.
      The Runbook is aimed at the teams executing the response. It provides more specific actions that need to be executed at each phase of the incident response.

    Download the Ransomware Response Workflow Template

    Download the Ransomware Response Runbook Template

    Input

    • No Input Required

    Output

    • Visualize the end goal

    Materials

    • Example workflow and runbook in this blueprint

    Participants

    • Security Incident Response Team (SIRT)

    Two overlapping screenshots are depicted, including the table of contents from the Ransomware Response Runbook.

    3.1.2 Update/define your threat escalation protocol

    1-2 hours

    Document the Threat Escalation Protocol sections in the Ransomware Response Workflow Template or review/update your existing runbook. The threat escalation protocol defines which stakeholders to involve in the incident management process, depending on impact and scope. Specifically, you will need to define the following:

    Impact and scope criteria: Impact considers factors such as the criticality of the system/data, whether PII is at risk, and whether public notification is required. Scope considers how many systems or users are impacted.

    Severity assessment: Define the severity levels based on impact and scope criteria.

    Relevant stakeholders: Identify stakeholders to notify for each severity level, which can include external stakeholders.

    If you need additional guidance, see Info-Tech's Develop and Implement a Security Incident Management Program blueprint, which takes a broader look at security incidents.

    Input

    • Current escalation process (formal or informal).

    Output

    • Define criteria for severity levels and relevant stakeholders.

    Materials

    • Ransomware Response Workflow Template

    Participants

    • Security Incident Response Team (SIRT)

    This is an image of the Threat Escalation Protocol Criteria and Stakeholders.

    Step 3.2

    Run Tabletop Test (IT)

    Activities

    3.2.1 Define scenarios for a range of incidents

    3.2.2 Run a tabletop planning exercise

    This step will guide you through the following activities:

    • Defining scenarios for a range of incidents.
    • Running a tabletop planning exercise.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)
    • Other stakeholders (as relevant)

    Outcomes of this step

    • Current-state incident response workflow, including stakeholders, steps, timeline.
    • Process and technology gaps to be addressed.

    Improve response and recovery capabilities

    3.2.1 Define scenarios for a range of incidents

    30 minutes

    As a group, collaborate to define scenarios that enable you to develop incident response details for a wide range of potential incidents. Below are example scenarios:

    • Scenario 1: An isolated attack on one key system. The database for a critical application is compromised. Assume the attack was not detected until files were encrypted, but that you can carry out a repair-in-place by wiping the server and restoring from backups.
    • Scenario 2: A site-wide impact that warrants broader disaster recovery. Several critical systems are compromised. It would take too long to repair in-place, so you need to failover to your DR environment, in addition to executing security response steps. (Note: If you don't have a DRP, see Info-Tech's Create a Right-Sized Disaster Recovery Plan.)
    • Scenario 3: A critical outsourced service or cloud service is compromised. You need to work with the vendor to determine the scope of impact and execute a response. This includes determining if your on-prem systems were also compromised.
    • Scenario 4: One or multiple end-user devices are compromised. Your response to the above scenarios would include assessing end-user devices as a possible source or secondary attack, but this scenario would provide more focus on the containing an attack on end-user devices.

    Note: The above is too much to execute in one 30-minute session, so plan a series of exercises as outlined on the next slide.

    Input

    • No input required

    Output

    • Determine the scope of your tabletop planning exercises

    Materials

    • Whiteboard or flip chart (or a shared screen if staff are remote)

    Participants

    • Security Incident Response Team (SIRT)

    Optimize the time spent by participants by running a series of focused exercises

    Not all stakeholders need to be present at every tabletop planning exercise. First, run an exercise with IT that focuses on the technical response. Run a second tabletop for non-IT stakeholders that focuses on the non-IT response, such as crisis communications, working with external stakeholders (e.g. law enforcement, cyberinsurance).

    Sample schedule:

    • Q1: Hold two sessions that run Scenarios 1 and 2 with relevant IT participants (see Activity 3.2.1). The focus for these sessions will be primarily on the technical response. For example, include notifying leadership and their role in decision making, but don't expand further on the details of their process. Similarly, don't invite non-IT participants to these sessions so you can focus first on understanding the IT response. Invite executives to the Q2 exercise, where they will have more opportunity to be involved.
    • Q2: Hold one session with the SIRT and non-IT stakeholders. Use the results of the Q1 exercises as a starting point and expand on the non-IT response steps (e.g. notifying external parties, executive decisions on response options).
    • Q3 and Q4: Run other sessions (e.g. for Scenarios 3 and 4) with relevant stakeholders. Ensure your ransomware incident response plan covers a wide range of possible scenarios.
    • Run ongoing exercises at least annually. Once you have a solid ransomware incident response plan, incorporate ransomware-based tabletop planning exercises into your overall security incident management testing and maintenance schedule.

    Info-Tech Insight

    Schedule these sessions well in advance to ensure appropriate resources are available. Document this in an annual test plan summary that outlines the scope, participants, and dates and times for the planned sessions.

    3.2.2 Run a tabletop planning exercise

    1-2 hours

    Remember that the goal is a deeper dive into how you would respond to an attack so you can clarify steps and gaps. This is not meant to just be a read-through of your plan. Follow the guidelines below:

    1. Select your scenario and invite relevant participants (see the previous slides).
    2. Guide participants through the incident and capture the steps and gaps along the way. Focus on one stakeholder at a time through each phase but be sure to get input from everyone. For example, focus on the Service Desk's steps for detection, then do the same as relevant to other stakeholders. Move on to analysis and do the same. (Tip: The distinction between phases is not always clear, and that's okay. Similarly, eradication and recovery might be the same set of steps. Focus on capturing the detail; you can clarify the relevant phase later.)
    3. Record the results (e.g. capture it in Visio) for reference purposes. (Tip: You can run the exercise directly in Visio. However, there's a risk that the tool may become a distraction. Enlist a scribe who is proficient with Visio so you don't need to wait for information to be captured and plan to save the detailed formatting and revising for later. )

    Refer to the Ransomware Tabletop Planning Results – Example as a guide for what to capture. Aim for more detail than found in your Ransomware Response Workflow (but not runbook-level detail).

    Download the Ransomware Tabletop Planning Results – Example

    Input

    • Baseline ransomware response workflow

    Output

    • Clarify your response workflow, capabilities, and gaps

    Materials

    • Whiteboard or sticky notes or index cards, or a shared screen

    Participants

    • Security Incident Response Team (SIRT)

    This is an example of a Ransomware Response Tabletop Planning Results Page.

    Step 3.3

    Document Workflow and Runbook

    Activities

    3.3.1 Update your ransomware response workflow

    3.3.2 Update your ransomware response runbook

    This step will guide you through the following activities:

    • Updating your ransomware response workflow.
    • Updating your ransomware response runbook.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)

    Outcomes of this step

    • An updated incident response workflow and runbook based on current capabilities.

    Improve response and recovery capabilities

    3.3.1 Update your ransomware response workflow

    1 hour

    Use the results from your tabletop planning exercises (Activity 3.2.2) to update and clarify your ransomware response workflow. For example:

    • Update stakeholder swim-lanes: Clarify which stakeholders need a swim lane (e.g. where interactions between groups needs to be clarified). For example, consider an SIRT swim-lane that combines the relevant technical response roles, but have separate swim-lanes for other groups that the SIRT interacts with (e.g. Service Desk, the Executive Team).
    • Update workflow steps: Use the detail from the tabletop exercises to clarify and/or add steps, as well as further define the interactions between swim-lanes.(Tip: Your workflow needs to account for a range of scenarios. It typically won't be as specific as the tabletop planning results, which focus on only one scenario.)
    • Clarify the overall the workflow: Look for and correct any remaining areas of confusion and clutter. For example, consider adding "Go To" connectors to minimize lines crossing each other, adding color-coding to highlight key related steps (e.g. any communication steps), and/or resizing swim-lanes to reduce the overall size of the workflow to make it easier to read.
    • Repeat the above after each exercise: Continue to refine the workflow as needed until you reach the stage where you just need to validate that your workflow is still accurate.

    Input

    • Results from tabletop planning exercises (Activity 3.2.2)

    Output

    • Clarify your response workflow

    Materials

    • Ransomware Response Workflow

    Participants

    • Security Incident Response Team (SIRT)

    This is a screenshot from the ransomeware response tabletop planning

    3.3.2 Update your ransomware response runbook

    1 hour

    Use the results from your tabletop planning exercises (Activity 3.2.2) to update your ransomware response runbook. For example:

    • Align stakeholder sections with the workflow: Each stakeholder swim-lane in the workflow needs its own section in the runbook.
    • Update incident response steps: Use the detail from the tabletop exercise to clarify instructions for each stakeholder. This can include outlining specific actions, defining which stakeholders to work with, and referencing relevant documentation (e.g. vendor documentation, step-by-step restore procedures). (Tip: As with the workflow, the runbook needs to account for a range of scenarios, so it will include a list of actions that might need to be taken depending on the incident, as illustrated in the example runbook.)
    • Review and update your threat escalation protocol: It's best to define your threat escalation protocol before the tabletop planning exercise to help identify participants and avoid confusion. Now use the exercise results to validate or update that documentation.
    • Repeat the above after each exercise. Continue to refine your runbook as needed until you reach the stage where you just need to validate that your runbook is still accurate.

    Input

    • Results from tabletop planning exercises (Activity 3.2.2)

    Output

    • Clarified response runbook

    Materials

    • Ransomware Response Workflow

    Participants

    • Security Incident Response Team (SIRT)

    This is a screenshot of the Ransomware Response Runbook

    Phase 4

    Improve ransomware resilience

    Phase 1Phase 2Phase 3Phase 4

    1.1 Build ransomware risk scenario

    1.2 Conduct resilience assessment

    2.1 Assess attack vectors

    2.2 Identify countermeasures

    3.1 Review Security Incident Management Plan

    3.2 Run Tabletop Test (IT)

    3.3 Document Workflow and Runbook

    4.1 Run Tabletop Test (Leadership)

    4.2 Prioritize resilience initiatives

    4.3 Measure resilience metrics

    This phase will guide you through the following steps:

    • Identifying initiatives to improve ransomware resilience.
    • Prioritizing initiatives in a project roadmap.
    • Communicating status and recommendations.

    This phase involves the following participants:

    • Security Incident Response Team (SIRT)

    Build Ransomware Resilience

    Step 4.1

    Run Tabletop Test (leadership)

    Activities

    • 4.1.1 Identify initiatives to close gaps and improve resilience
    • 4.1.2 Review broader strategies to improve your overall security program

    This step will walk you through the following activities:

    • Identifying initiatives to close gaps and improve resilience.
    • Reviewing broader strategies to improve your overall security program.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)

    Outcomes of this step

    • Specific potential initiatives based on a review of the gaps.
    • Broader potential initiatives to improve your overall security program.

    Improve ransomware resilience

    4.1.1 Identify initiatives to close gaps and improve resilience

    1 hour

    1. Use the results from the activities you have completed to identify initiatives to improve your ransomware readiness.
    2. Set up a blank spreadsheet with two columns and label them "Gaps" and "Initiatives." (It will be easier to copy the gaps and initiatives from this spreadsheet to you project roadmap, rather than use the Gap Initiative column in the Ransomware Readiness Maturity Assessment Tool.)
    3. Review your tabletop planning results:
      1. Summarize the gaps in the "Gaps" column in your spreadsheet created for this activity.
      2. For each gap, write down potential initiatives to address the gap.
      3. Where possible, combine similar gaps and initiatives. Similarly, the same initiative might address multiple gaps, so you don't need to identify a distinct initiative for every gap.
    4. Review the results of your maturity assessment completed in Phase 1 to identify additional gaps and initiatives in the spreadsheet created for this activity.

    Input

    • Tabletop planning results
    • Maturity assessment

    Output

    • Identify initiatives to improve ransomware readiness

    Materials

    • Blank spreadsheet

    Participants

    • Security Incident Response Team (SIRT)

    4.1.2 Review broader strategies to improve your overall security program

    1 hour

    1. Review the following considerations as outlined on the next few slides:
      • Implement core elements of an effective security program – strategy, operations, and policies. Leverage the work completed in this blueprint to provide context and address your immediate gaps while developing an overarching security strategy based on business requirements, risk tolerance, and overall security considerations. Security operations and policies are key to executing your overall security strategy and day to day incident management.
      • Update your backup strategy to account for ransomware attacks. Consider what your options would be today if your primary backups were infected? If those options aren't very good, your backup strategy needs a refresh.
      • Consider a zero-trust strategy. Zero trust reduces your reliance on perimeter security and moves controls to where the user accesses resources. However, it takes time to implement. Evaluate your readiness for this approach.
    2. As a team, discuss the merits of these strategies in your organization and identify potential initiatives. Depending on what you already have in place, the project may be to evaluate options (e.g. if you have not already initiated zero trust, assign a project to evaluate your options and readiness).

    Input

    • An understanding of your existing security practices and backup strategy.

    Output

    • Broader initiatives to improve ransomware readiness.

    Materials

    • Whiteboard or flip chart (or a shared screen if staff are remote)

    Participants

    • Security Incident Response Team (SIRT)

    Implement core elements of an effective security program

    There is no silver bullet. Ransomware readiness depends on foundational security best practices. Where budget allows, support that foundation with more advanced AI-based tools that identify abnormal behavior to detect an attack in progress.

    Leverage the following blueprints to implement the foundational elements of an effective security program:

    • Build an Information Security Strategy: Consider the full spectrum of information security, including people, processes, and technologies. Then base your security strategy on the risks facing your organization – not just on best practices – to ensure alignment with business goals and requirements.
    • Develop a Security Operations Strategy: Establish unified security operations that actively monitor security events and threat information, and turn that into appropriate security prevention, detection, analysis, and response processes.
    • Develop and Deploy Security Policies: Improve cybersecurity through effective policies, from acceptable use policies aimed at your end users to system configuration management policies aimed at your IT operations.

    Supplement foundational best practices with AI-based tools to counteract more sophisticated security attacks:

    • The evolution of ransomware gangs and ransomware as a service means the most sophisticated tools designed to bypass perimeter security and endpoint protection are available to a growing number of hackers.
    • Rather than activate the ransomware virus immediately, attackers will traverse the network using legitimate commands to infect as many systems as possible and exfiltrate data without generating alerts, then finally encrypt infected systems.
    • AI-based tools learn what is normal behavior and therefore can recognize unusual traffic (which could be an attack in progress) before it's too late. For example, a "user" accessing a server they've never accessed before.
    • Engage an Info-Tech analyst or consult SoftwareReviews to review products that will add this extra layer of AI-based security.

    Update your backup strategy to account for ransomware attacks

    Apply a defense-in-depth strategy. A daily disk backup that goes offsite once a week isn't good enough.

    In addition to applying your existing security practices to your backup solution (e.g. anti-malware, restricted access), consider:

    • Creating multiple restore points. Your most recent backup might be infected. Frequent backups allow you to be more granular when determining how far you need to roll back.
    • Having offsite backups and using different storage media. Reduce the risk of infected backups by using different storage media (e.g. disk, NAS, tape) and backup locations (e.g. offsite). If you can make the attackers jump through more hoops, you have a greater chance of detecting the attack before all backups are infected.
    • Investing in immutable backups. Most leading backup solutions offer options to ensure backups are immutable (cannot be altered after they are written).
    • Using the BIA you completed in Phase 2 to help decide where to prioritize investments. All the above strategies add to your backup costs and might not be feasible for all data. Use your BIA results to decide which data sets require higher levels of protection.

    This example strategy combines multiple restore points, offsite backup, different storage media, and immutable backups.

    This is an example of a backup strategy to account for ransomware attacks.

    Refer to Info-Tech's Establish an Effective Data Protection Plan blueprint for additional guidance.

    Explore zero-trust initiatives

    Zero trust is a set of principles, not a set of controls.

    Reduces reliance on perimeter security.

    Zero trust is a strategy that reduces reliance on perimeter security and moves controls to where your user accesses resources. It often consolidates security solutions, reduces operating costs, and enables business mobility.

    Zero trust must benefit the business first.

    IT security needs to determine how zero trust initiatives will affect core business processes. It's not a one-size-fits-all approach to IT security. Zero trust is the goal – but some organizations can only get so close to that ideal.

    For more information, see Build a Zero-Trust Roadmap.

    Info-Tech Insight

    A successful zero-trust strategy should evolve. Use an iterative and repeatable process to assess available zero-trust technologies and principles and secure the most relevant protect surfaces. Collaborate with stakeholders to develop a roadmap with targeted solutions and enforceable policies.

    Step 4.2

    Prioritize resilience initiatives

    Activities

    • 4.2.1 Prioritize initiatives based on factors such as effort, cost, and risk
    • 4.2.2 Review the dashboard to fine tune your roadmap

    This step will guide you through the following activities:

    • Prioritizing initiatives based on factors such as effort, cost, and risk.
    • Reviewing the dashboard to fine-tune your roadmap.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)

    Outcomes of this step

    • An executive-friendly project roadmap dashboard summarizing your initiatives.
    • A visual representation of the priority, effort, and timeline required for suggested initiatives.

    Review the Ransomware Resilience Assessment

    Tabs 2 and 3 list initiatives relevant to your ransomware readiness improvement efforts.

    • At this point in the project, the Ransomware Resilience Assessment should contain a number of initiatives to improve ransomware resilience.
    • Tab 2 is prepopulated with examples of gap closure actions to consider, which are categorized into initiatives listed on Tab 3.
    • Follow the instructions in the Ransomware Resilience Assessment to:
      • Categorize gap control actions into initiatives.
      • Prioritize initiatives based on cost, effort, and benefit.
      • Construct a roadmap for consideration.

    Download the Ransomware Resilience Assessment

    4.2.1 Prioritize initiatives based on factors such as effort, cost, and risk

    1 hour

    Prioritize initiatives in the Ransomware Resilience Assessment.

    1. The initiatives listed on Tab 3 Initiative List will be copied automatically on Tab 5 Prioritization.
    2. On Tab 1 Setup:
      1. Review the weight you want to assign to the cost and effort criteria.
      2. Update the default values for FTE and Roadmap Start as needed.
    3. Go back to Tab 5 Prioritization:
      1. Fill in the cost, effort, and benefit evaluation criteria for each initiative. Hide optional columns you don't plan to use, to avoid confusion.
      2. Use the cost and benefit scores to prioritize waves and schedule initiatives on Tab 6 Gantt Chart.

    Input

    • Gaps and initiatives identified in Step 4.1

    Output

    • Project roadmap dashboard

    Materials

    • Ransomware Resilience Assessment

    Participants

    • Security Incident Response Team (SIRT)

    4.2.2 Review the dashboard to fine-tune the roadmap

    1 hour

    Review and update the roadmap dashboard in your Ransomware Resilience Assessment.

    1. Review the Gantt chart to ensure:
      1. The timeline is realistic. Avoid scheduling many high-effort projects at the same time.
      2. Higher-priority items are scheduled sooner than low-priority items.
      3. Short-term projects include quick wins (e.g. high-priority, low-effort items).
      4. It supports the story you wish to communicate (e.g. a plan to address gaps, along with the required effort and timeline).
    2. Update the values on the 5 Prioritization and 6 Gantt Chart tabs based on your review.

    Input

    • Gaps and initiatives identified in Step 4.1

    Output

    • Project roadmap dashboard

    Materials

    • Ransomware Resilience Assessment

    Participants

    • Security Incident Response Team (SIRT)

    This is an image of a sample roadmap for the years 2022-2023

    Step 4.3

    Measure resilience metrics

    Activities

    4.3.1 Summarize status and next steps in an executive presentation

    This step will guide you through the following activities:

    • Summarizing status and next steps in an executive presentation.

    This step involves the following participants:

    • Security Incident Response Team (SIRT)

    Outcomes of this step

    • Gain stakeholder buy-in by communicating the risk of the status quo and achievable next steps to improve your organization's ransomware readiness.

    Improve ransomware resilience

    4.3.1 Summarize status and next steps in an executive presentation

    1 hour

    Gain stakeholder buy-in by communicating the risk of the status quo and recommendations to reduce that risk. Specifically, capture and present the following from this blueprint:

    • Phase 1: Maturity assessment results, indicating your organization's overall readiness as well as specific areas that need to improve.
    • Phase 2: Business impact results, which objectively quantify the potential impact of downtime and data loss.
    • Phase 3: Current incident response capabilities including steps, timeline, and gaps.
    • Phase 4: Recommended projects to close specific gaps and improve overall ransomware readiness.

    Overall key findings and next steps.

    Download the Ransomware Readiness Summary Presentation Template

    Input

    • Results of all activities in Phases 1-4

    Output

    • Executive presentation

    Materials

    • Ransomware Readiness Summary Presentation Template

    Participants

    • Security Incident Response Team (SIRT)

    This is a screenshot of level 2 of the ransomware readiness maturity tool.

    Revisit metrics

    Ransomware resilience metrics track your ability to disrupt a ransomware attack at each stage of its workflow.

    Revisit metrics as the project nears completion and compare them against your baseline to measure progress.

    Attack workflow Process Metric Target trend Current Goal
    GET IN Vulnerability Management % Critical patches applied Higher is better
    Vulnerability Management # of external exposures Fewer is better
    Security Awareness Training % of users tested for phishing Higher is better
    SPREAD Identity and Access Management Adm accounts / 1000 users Lower is better
    Identity and Access Management % of users enrolled for MFA Higher is better
    Security Incident Management Avg time to detect Lower is better
    PROFIT Security Incident Management Avg time to resolve Lower is better
    Backup and Disaster Recovery % critical assets with recovery test Higher is better
    Backup and Disaster Recovery % backup to immutable storage Higher is better

    Summary of accomplishments

    Project overview

    Project deliverables

    This blueprint helped you create a ransomware incident response plan for your organization, as well as identify ransomware prevention strategies and ransomware prevention best practices.

    • Ransomware Resilience Assessment: Measure your current readiness, then identify people, policy, and technology gaps to address.
    • Ransomware Response Workflow: An at-a-glance summary of the key incident response steps across all relevant stakeholders through each phase of incident management.
    • Ransomware Response Runbook: Includes your threat escalation protocol and detailed response steps to be executed by each stakeholder.
    • Ransomware Tabletop Planning : This deep dive into a ransomware scenario will help you develop a more accurate incident management workflow and runbook, as well as identify gaps to address.
    • Ransomware Project Roadmap: This prioritized list of initiatives will address specific gaps and improve overall ransomware readiness.
    • Ransomware Readiness Summary Presentation: Your executive presentation will communicate the risk of the status quo, present recommended next steps, and drive stakeholder buy-in.

    Project phases

    Phase 1: Assess ransomware resilience

    Phase 2: Protect and detect

    Phase 3: Respond and recover

    Phase 4: Improve ransomware resilience

    Related Info-Tech Research

    Tab 3. Initiative List in the Ransomware Resilience Assessment identifies relevant Info-Tech Research to support common ransomware resilience initiatives.

    Related security blueprints:

    Related disaster recovery blueprints:

    Research Contributors and Experts

    This is an image of Jimmy Tom

    Jimmy Tom
    AVP of Information Technology and Infrastructure
    Financial Horizons

    This is an image of Dan Reisig

    Dan Reisig
    Vice President of Technology
    UV&S

    This is an image of Samuel Sutto

    Samuel Sutton
    Computer Scientist (Retired)
    FBI

    This is an image of Ali Dehghantanha

    Ali Dehghantanha
    Canada Research Chair in Cybersecurity and Threat Intelligence,
    University of Guelph

    This is an image of Gary Rietz

    Gary Rietz
    CIO
    Blommer Chocolate Company

    This is an image of Mark Roman

    Mark Roman
    CIO
    Simon Fraser University

    This is an image of Derrick Whalen

    Derrick Whalen
    Director, IT Services
    Halifax Port Authority

    This is an image of Stuart Gaslonde

    Stuart Gaslonde
    Director of IT & Digital Services
    Falmouth-Exeter Plus

    This is an image of Deborah Curtis

    Deborah Curtis
    CISO
    Placer County

    This is an image of Deuce Sapp

    Deuce Sapp
    VP of IT
    ISCO Industries

    This is an image of Trevor Ward

    Trevor Ward
    Information Security Assurance Manager
    Falmouth-Exeter Plus

    This is an image of Brian Murphy

    Brian Murphy
    IT Manager
    Placer County

    This is an image of Arturo Montalvo

    Arturo Montalvo
    CISO
    Texas General Land Office and Veterans Land Board

    No Image Available

    Mduduzi Dlamini
    IT Systems Manager
    Eswatini Railway

    No Image Available

    Mike Hare
    System Administrator
    18th Circuit Florida Courts

    No Image Available

    Linda Barratt
    Director of Enterprise architecture, IT Security, and Data Analytics, Toronto Community Housing Corporation

    This is an image of Josh Lazar

    Josh Lazar
    CIO
    18th Circuit Florida Courts

    This is an image of Douglas Williamson

    Douglas Williamson
    Director of IT
    Jamaica Civil Aviation Authority

    This is an image of Ira Goldstein

    Ira Goldstein
    Chief Operating Officer
    Herjavec Group

    This is an image of Celine Gravelines

    Celine Gravelines
    Senior Cybersecurity Analyst
    Encryptics

    This is an image of Dan Mathieson

    Dan Mathieson
    Mayor
    City of Stratford

    This is an image of Jacopo Fumagalli

    Jacopo Fumagalli
    CISO
    Omya

    This is an image of Matthew Parker

    Matthew Parker
    Program Manager
    Utah Transit Authority

    Two Additional Anonymous Contributors

    Bibliography

    2019-Data-Breach-Investigations-Report.-Verizon,-May-2019.
    2019-Midyear-Security-Roundup:-Evasive-Threats,-Persistent-Effects.-Trend-Micro,-2019.
    Abrams,-Lawrence.-"Ryuk-Ransomware-Uses-Wake-on-Lan-to-Encrypt-Offline-Devices."-Bleeping-Computer,-14-Jan.-2020.
    Abrams,-Lawrence.-"Sodinokibi-Ransomware-Publishes-Stolen-Data-for-the-First-Time."-Bleeping-Computer,-11-Jan.-2020.
    Canadian-Center-for-Cyber-Security,-"Ransomware-Playbook,"-30-November-2021.-Accessed-21-May-2022.-
    Carnegie-Endowment-for-International-Peace.-"Ransomware:-Prevention-and-Protection."-Accessed-May-2022.-
    Cawthra,-Jennifer,-Michael-Ekstrom,-Lauren-Lusty,-Julian-Sexton,-John-Sweetnam.-Special-Publication-1800-26-Data-Integrity:-Detecting-and-Responding-to-Ransomware-and-Other-Destructive-Events.-NIST,-Jan.-2020.
    Cawthra,-Jennifer,-Michael-Ekstrom,-Lauren-Lusty,-Julian-Sexton,-John-Sweetnam.-Special-Publication-1800-25-Data-Integrity:-Identifying-and-Protecting-Assets-Against-Ransomware-and-Other-Destructive-Events.-NIST,-Jan.-2020.-
    Cichonski,-P.,-T.-Millar,-T.-Grance,-and-K.-Scarfone.-"Computer-Security-Incident-Handling-Guide."-SP-800-61-Rev.-2.-NIST,-Aug.-2012.
    Cimpanu,-Catalin.-"Company-shuts-down-because-of-ransomware,-leaves-300-without-jobs-just-before-holidays."-ZDNet,-3-Jan.-2020.
    Cimpanu,-Catalin.-"Ransomware-attack-hits-major-US-data-center-provider."-ZDNet,-5-Dec.-2019.
    CISA,-"Stop-Ransomware,"-Accessed-12-May-2022.
    "CMMI-Levels-of-Capability-and-Performance."-CMMI-Institute.-Accessed-May-2022.-
    Connolly,-Lena-Yuryna,-"An-empirical-study-of-ransomware-attacks-on-organizations:-an-assessment-of-severity-and-salient-factors-affecting-vulnerability."-Journal-of-Cybersecurity,-2020,.-1-18.
    "Definitions:-Backup-vs.-Disaster-Recovery-vs.-High-Availability."-CVM-IT-&-Cloud-Services,-12-Jan.-2017.
    "Don't-Become-a-Ransomware-Target-–-Secure-Your-RDP-Access-Responsibly."-Coveware,-2019.-
    Elementus,-"Rise-of-the-Ransomware-Cartels-"(2022).-YouTube.-Accessed-May-2022.-
    Global-Security-Attitude-Survey.-CrowdStrike,-2019.
    Graham,-Andrew.-"September-Cyberattack-cost-Woodstock-nearly-$670,00:-report."-
    Global-News,-10-Dec.-2019.
    Harris,-K.-"California-2016-Data-Breach-Report."-California-Department-of-Justice,-Feb.-2016.
    Hiscox-Cyber-Readiness-Report-2019.-Hiscox-UK,-2019.
    Cost-of-A-Data-Breach-(2022).-IBM.-Accessed-June-2022.--
    Ikeda,-Scott.-"LifeLabs-Data-Breach,-the-Largest-Ever-in-Canada,-May-Cost-the-Company-Over-$1-Billion-in-Class-Action-Lawsuit."-CPO-Magazine,-2020.
    Kessem,-Limor-and-Mitch-Mayne.-"Definitive-Guide-to-Ransomware."-IBM,-May-2022.
    Krebs,-Brian.-"Ransomware-Gangs-Now-Outing-Victim-Businesses-That-Don't-Pay-Up."-Krebson-Security,-16-Dec.-2019.
    Jaquith,-Andrew-and-Barnaby-Clarke,-"Security-metrics-to-help-protect-against-ransomware."-Panaseer,-July-29,-2021,-Accessed-3-June-2022.
    "LifeLabs-pays-ransom-after-cyberattack-exposes-information-of-15-million-customers-in-B.C.-and-Ontario."-CBC-News,-17-Dec.-2019.
    Matthews,-Lee.-"Louisiana-Suffers-Another-Major-Ransomware-Attack."-Forbes,-20-Nov.-2019.
    NISTIR-8374,-"Ransomware-Risk-Management:-A-Cybersecurity-Framework-Profile."-NIST-Computer-Security-Resource-Center.-February-2022.-Accessed-May-2022.-
    "Ransomware-attack-hits-school-district-twice-in-4-months."-Associated-Press,-10-Sept.-2019.
    "Ransomware-Costs-Double-in-Q4-as-Ryuk,-Sodinokibi-Proliferate."-Coveware,-2019.
    Ransomware-Payments-Rise-as-Public-Sector-is-Targeted,-New-Variants-Enter-the-Market."-Coveware,-2019.
    Rector,-Kevin.-"Baltimore-to-purchase-$20M-in-cyber-insurance-as-it-pays-off-contractors-who-helped-city-recover-from-ransomware."-The-Baltimore-Sun,-16-Oct.-2019.
    "Report:-Average-time-to-detect-and-contain-a-breach-is-287-days."-VentureBeat,-May-25,-2022.-Accessed-June-2022.-
    "Five-Lessons-Learned-from-over-600-Ransomware-Attacks."-Riskrecon.-Mar-2022.-Accessed-May-2022.-
    Rosenberg,-Matthew,-Nicole-Perlroth,-and-David-E.-Sanger.-"-'Chaos-is-the-Point':-Russian-Hackers-and-Trolls-Grow-Stealthier-in-2020."-The-New-York-Times,-10-Jan.-2020.
    Rouse,-Margaret.-"Data-Archiving."-TechTarget,-2018.
    Siegel,-Rachel.-"Florida-city-will-pay-hackers-$600,000-to-get-its-computer-systems-back."-The-Washington-Post,-20-June-2019.
    Sheridan,-Kelly.-"Global-Dwell-Time-Drops-as-Ransomware-Attacks-Accelerate."-DarkReading,-13-April-2021.-Accessed-May-2022.-
    Smith,-Elliot.-"British-Banks-hit-by-hacking-of-foreign-exchange-firm-Travelex."-CNBC,-9-Jan.-2020.
    "The-State-of-Ransomware-2022."-Sophos.-Feb-2022.-Accessed-May-2022.-
    "The-State-of-Ransomware-in-the-U.S.:-2019-Report-for-Q1-to-Q3."-Emsisoft-Malware-Lab,-1-Oct.2019.
    "The-State-of-Ransomware-in-the-U.S.:-Report-and-Statistics-2019."-Emsisoft-Lab,-12-Dec.-2019.
    "The-State-of-Ransomware-in-2020."-Black-Fog,-Dec.-2020.
    Toulas,-Bill.-"Ten-notorious-ransomware-strains-put-to-the-encryption-speed-test."-Bleeping-Computers,-23-Mar-2022.-Accessed-May-2022.
    Tung,-Liam-"This-is-how-long-hackers-will-hide-in-your-network-before-deploying-ransomware-or-being-spotted."-zdnet.-May-19,-2021.-Accessed-June-2022.-

    Manage an IT Budget

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    • Parent Category Name: Cost & Budget Management
    • Parent Category Link: /cost-and-budget-management
    • IT is viewed as a cost center without a clear understanding of the value it provides.
    • After completing the budget, the CIO is faced with changing expectations, disruptions, new risks, and new threats.
    • IT departments often lack a reliable budget management process to keep itself on track towards its budget goals.
    • Over budgeting risks credibility if projects are not all delivered, while under budgeting risks not being able to execute important projects.

    Our Advice

    Critical Insight

    • Managing your budget is not just about numbers; it’s also about people and processes. Better relationships and a proper process leads to better management of your budget. Understand how your relationships and current processes might be leveraged to manage your budget.
    • No one likes to be over budget, but being under budget isn’t necessarily good either. Coming in under budget may mean that you are not accomplishing the initiatives that you promised you would, reflecting poor job performance.

    Impact and Result

    • Implement a formal budget management process that documents your planned budget and actual expenditures, tracks variances, and responds to those variances to stay on track towards budget goals.
    • Manage the expectations of business stakeholders by communicating the links between IT spend and business value in a way that is easily understood by the business.
    • Control for under- or overspending by using Info Tech’s budget management tool and tactics.

    Manage an IT Budget Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to understand the increasing expectations for IT departments to better manage their budgets, 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. Document

    Create a streamlined documentation process that also considers the elements of people and technology.

    • Manage an IT Budget – Phase 1: Document
    • Manage Your IT Budget Tool

    2. Track

    Track your planned budget against actual expenditures to catch areas of over- and underspending in a timely manner.

    • Manage an IT Budget – Phase 2: Track

    3. Control

    Leverage control mechanisms to manage variances in your budget.

    • Manage an IT Budget – Phase 3: Control
    [infographic]

    Workshop: Manage an 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 Document Budget

    The Purpose

    The first step of managing your IT budget is to make sure there is a properly documented budget that everyone agrees upon.

    Key Benefits Achieved

    A properly documented budget facilitates management and communication of the budget.

    Activities

    1.1 Review budget for the year.

    1.2 Document each budget in the tool.

    1.3 Review CAPEX vs. OPEX.

    1.4 Customize accounts to match your organization.

    Outputs

    Budget broken out into monthly increments and by each account.

    Budget documented in tool.

    Tool customized to reflect organization's specific accounts and terminology.

    2 Optimize Documentation Process

    The Purpose

    A proper documentation process forms the backbone for effective budget management.

    Key Benefits Achieved

    A streamlined documentation process with accurate inputs that also considers the elements of people and technology.

    Activities

    2.1 Draw out process flow of current documentation.

    2.2 Identify bottlenecks.

    2.3 Discuss and develop roadmap to solving bottlenecks.

    Outputs

    Process flow of current documentation process with identified bottlenecks.

    Plan to mitigate bottlenecks.

    3 Track and Control for Over- and Underspending

    The Purpose

    Track your planned budget against actual expenditures to catch areas of over- and underspending in a timely manner. Then, leverage control mechanisms to manage variances in your budget.

    Key Benefits Achieved

    Tracking and controlling for variances will help the IT department stay on track towards its budget goals. It will also help with communicating IT’s value to the business.

    Activities

    3.1 Walk through the “Overview Bar.”

    3.2 Document actual expenses incurred in fiscal to date.

    3.3 Review the risk of over- and underspending.

    3.4 Use the reforecast column to control for over- and underspend.

    Outputs

    Assess the “Overview Bar.”

    Document actual expenditures and committed expenses up to the current date.

    Develop a strategy and roadmap for how you will mitigate any current under- or overspends.

    Reforecast expenditures for each account for each month for the remainder of the fiscal year.

    Drive Successful Sourcing Outcomes With a Robust RFP Process

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Most IT organizations do not have standard RFP templates and tools.
    • Many RFPs lack sufficient requirements.
    • Most RFP team members are not adequately trained on RFP best practices.
    • Most IT departments underestimate the amount of time that is required to perform an effective RFP.

    Our Advice

    Critical Insight

    • Vendors generally do not like RFPs
      Vendors view RFPs as time consuming and costly to respond to and believe that the decision is already made.
    • Dont ignore the benefits of an RFI
      An RFI is too often overlooked as a tool for collecting information from vendors about their product offerings and services.
    • Leverage a pre-proposal conference to maintain an equal and level playing field
      Pre-proposal conference is a convenient and effective way to respond to vendors’ questions ensuring all vendors have the same information to provide a quality response.

    Impact and Result

    • A bad or incomplete RFP results in confusing and incomplete vendor RFP responses which consume time and resources.
    • Incomplete or misunderstood requirements add cost to your project due to the change orders required to complete the project.

    Drive Successful Sourcing Outcomes With a Robust RFP Process Research & Tools

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

    1. Storyboard – Leverage your vendor sourcing process to get better results

    Discover a proven process for your RFPs. Review Info-Tech’s process and understand how you can prevent your organization from leaking negotiation leverage while preventing vendors from taking control of your RFP. Our 7-phase process prevents a bad RFP from taking your time, money, and resources.

    • Drive Successful Sourcing Outcomes With a Robust RFP Process Storyboard

    2. Define your RFP Requirements Tool – A convenient tool to gather your requirements and align them to your negotiation strategy.

    Use this tool to assist you and your team in documenting the requirements for your RFP. Use the results of this tool to populate the requirements section of your RFP.

    • RFP Requirements Worksheet

    3. RFP Development Suite of Tools – Use Info-Tech’s RFP, pricing, and vendor response tools and templates to increase your efficiency in your RFP process.

    Configure this time-saving suite of tools to your organizational culture, needs, and most importantly the desired outcome of your RFP initiative. This suite contains four unique RFP templates. Evaluate which template is appropriate for your RFP. Also included in this suite are a response evaluation guidebook and several evaluation scoring tools along with a template to report the RFP results to stakeholders.

    • RFP Calendar and Key Date Tool
    • Vendor Pricing Tool
    • Lean RFP Template
    • Short-Form RFP Template
    • Long-Form RFP Template
    • Excel Form RFP Tool
    • RFP Evaluation Guidebook
    • RFP Evaluation Tool
    • Vendor TCO Tool
    • Consolidated Vendor RFP Response Evaluation Summary
    • Vendor Recommendation Presentation

    Infographic

    Workshop: Drive Successful Sourcing Outcomes With a Robust RFP Process

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

    1 Foundation for Creating Requirements

    The Purpose

    Problem Identification

    Key Benefits Achieved

    Current process mapped and requirements template configured

    Activities

    1.1 Overview and level-setting

    1.2 Identify needs and drivers

    1.3 Define and prioritize requirements

    1.4 Gain business authorization and ensure internal alignment

    Outputs

    Map Your Process With Gap Identification

    Requirements Template

    Map Your Process With Gap Identification

    Requirements Template

    Map Your Process With Gap Identification

    Requirements Template

    Map Your Process With Gap Identification

    Requirements Template

    2 Creating a Sourcing Process

    The Purpose

    Define Success Target

    Key Benefits Achieved

    Baseline RFP and evaluation templates

    Activities

    2.1 Create and issue RFP

    2.2 Evaluate responses/proposals and negotiate the agreement

    2.3 Purchase goods and services

    Outputs

    RFP Calendar Tool

    RFP Evaluation Guidebook

    RFP Respondent Evaluation Tool

    3 Configure Templates

    The Purpose

    Configure Templates

    Key Benefits Achieved

    Configured Templates

    Activities

    3.1 Assess and measure

    3.2 Review templates

    Outputs

    Long-Form RFP Template

    Short-Form RFP Template

    Excel-Based RFP Template

    Further reading

    Drive Successful Sourcing Outcomes With a Robust RFP Process

    Leverage your vendor sourcing process to get better results.

    EXECUTIVE BRIEF

    Drive Successful Sourcing Outcomes with a Robust RFP Process

    Lack of RFP Process Causes...
    • Stress
    • Confusion
    • Frustration
    • Directionless
    • Exhaustion
    • Uncertainty
    • Disappointment
    Solution: RFP Process
    Steps in an RFP Process, 'Identify Need', 'Define Business Requirements', 'Gain Business Authorization', 'Perform RFI/RFP', 'Negotiate Agreement', 'Purchase Good and Services', and 'Assess and Measure Performance'.
    • Best value solutions
    • Right-sized solutions
    • Competitive Negotiations
    • Better requirements that feed negotiations
    • Internal alignment on requirements and solutions
    • Vendor Management Governance Plan
    Requirements
    • Risk
    • Legal
    • Support
    • Security
    • Technical
    • Commercial
    • Operational
    • Vendor Management Governance
    Templates, Tools, Governance
    • RFP Template
    • Your Contracts
    • RFP Procedures
    • Pricing Template
    • Evaluation Guide
    • Evaluation Matrix
    Vendor Management
    • Scorecards
    • Classification
    • Business Review Meetings
    • Key Performance Indicators
    • Contract Management
    • Satisfaction Survey

    Analyst Perspective

    Consequences of a bad RFP

    Photo of Steven Jeffery, Principal Research Director, Vendor Management, Co-Author: The Art of Creating a Quality RFP, Info-Tech Research Group

    “A bad request for proposal (RFP) is the gift that keeps on taking – your time, your resources, your energy, and your ability to accomplish your goal. A bad RFP is ineffective and incomplete, it creates more questions than it answers, and, perhaps most importantly, it does not meet your organization’s expectations.”

    Steven Jeffery
    Principal Research Director, Vendor Management
    Co-Author: The Art of Creating a Quality RFP
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Most IT organizations are absent of standard RFP templates, tools, and processes.
    • Many RFPs lack sufficient requirements from across the business (Legal, Finance, Security, Risk, Procurement, VMO).
    • Most RFP team members are not adequately trained on RFP best practices.
    • Most IT departments underestimate the amount of time required to perform an effective RFP.
    • An ad hoc sourcing process is a common recipe for vendor performance failure.

    Common Obstacles

    • Lack of time
    • Lack of resources
    • Right team members not engaged
    • Poorly defined requirements
    • Too difficult to change supplier
    • Lack of a process
    • Lack of adequate tools/processes
    • Lack of a vendor communications plan that includes all business stakeholders.
    • Lack of consensus as to what the ideal result should look like.

    Info-Tech’s Approach

    • Establish a repeatable, consistent RFP process that maintains negotiation leverage and includes all key components.
    • Create reusable templates to expedite the RFP evaluation and selection process.
    • Maximize the competition by creating an equal and level playing field that encourages all the vendors to respond to your RFP.
    • Create a process that is clear and understandable for both the business unit and the vendor to follow.
    • Include Vendor Management concepts in the process.

    Info-Tech Insight

    A well planned and executed sourcing strategy that focuses on solid requirements, evaluation criteria, and vendor management will improve vendor performance.

    Executive Summary

    Your Challenge

    Your challenge is to determine the best sourcing tool to obtain vendor information on capabilities, solution(s), pricing and contracting: RFI, RFP, eRFX.

    Depending on your organization’s knowledge of the market, your available funding, and where you are in the sourcing process, there are several approaches to getting the information you need.

    An additional challenge is to answer the question “What is the purpose of our RFX?”

    If you do not have in-depth knowledge of the market, available solutions, and viable vendors, you may want to perform an RFI to provide available market information to guide your RFP strategy.

    If you have defined requirements, approved funding, and enough time, you can issue a detailed, concise RFP.

    If you have “the basics” about the solution to be acquired and are on a tight timeframe, an “enhanced RFI” may fit your needs.

    This blueprint will provide you with the tools and processes and insights to affect the best possible outcome.

    Executive Summary

    Common Obstacles

    • Lack of process/tools
    • Lack of input from stakeholders
    • Stakeholders circumventing the process to vendors
    • Vendors circumventing the process to key stakeholders
    • Lack of clear, concise, and thoroughly articulated requirements
    • Waiting until the vendor is selected to start contract negotiations
    • Waiting until the RFP responses are back to consider vendor management requirements
    • Lack of clear communication strategy to the vendor community that the team adheres to

    Many organizations underestimate the time commitment for an RFP

    70 Days is the average duration of an IT RFP.

    The average number of evaluators is 5-6

    4 Is the average number of vendor submissions, each requiring an average of two to three hours to review. (Source: Bonfire, 2019. Note: The 2019 Bonfire report on the “State of the RFP” is the most recent published.)

    “IT RFPs take the longest from posting to award and have the most evaluators. This may be because IT is regarded as a complex subject requiring complex evaluation. Certainly, of all categories, IT offers the most alternative solutions. The technology is also changing rapidly, as are the requirements of IT users – the half-life of an IT requirement is less than six months (half the requirements specified now will be invalid six months from now). And when the RFP process takes up two of those months, vendors may be unable to meet changed requirements when the time to implement arrives. This is why IT RFPs should specify the problem to be resolved rather than the solution to be provided. If the problem resolution is the goal, vendors are free to implement the latest technologies to meet that need.” (Bonfire, “2019 State of the RFP”)

    Why Vendors Don’t Like RFPs

    Vendors’ win rate

    44%

    Vendors only win an average of 44% of the RFPs they respond to (Loopio, 2022).
    High cost to respond

    3-5%

    Vendors budget 3-5% of the anticipated contract value to respond (LinkedIn, 2017, Note: LinkedIn source is the latest information available).
    Time spent writing response

    23.8 hours

    Vendors spend on average 23.8 hours to write or respond to your RFP (Marketingprofs, 2021).

    Negative effects on your organization from a lack of RFP process

    Visualization titled 'Lack of RFP Process Causes' with the following seven items listed.

    Stress, because roles and responsibilities aren’t clearly defined and communication is haphazard, resulting in strained relationships.

    Confusion, because you don’t know what the expected or desired results are.

    Directionless, because you don’t know where the team is going.

    Uncertainty, with many questions of your own and many more from other team members.

    Frustration, because of all the questions the vendors ask as a result of unclear or incomplete requirements.

    Exhaustion, because reviewing RFP responses of insufficient quality is tedious.

    Disappointment in the results your company realizes.

    (Source: The Art of Creating a Quality RFP)

    Info-Tech’s approach

    Develop an inclusive and thorough approach to the RFP Process

    Steps in an RFP Process, 'Identify Need', 'Define Business Requirements', 'Gain Business Authorization', 'Perform RFI/RFP', 'Negotiate Agreement', 'Purchase Good and Services', and 'Assess and Measure Performance'.

    The Info-Tech difference:

    1. The secret to managing an RFP is to make it as manageable and as thorough as possible. The RFP process should be like any other aspect of business – by developing a standard process. With a process in place, you are better able to handle whatever comes your way, because you know the steps you need to follow to produce a top-notch RFP.
    2. The business then identifies the need for more information about a product/service or determines that a purchase is required.
    3. A team of stakeholders from each area impacted gather all business, technical, legal, and risk requirements. What are the expectations of the vendor relationship post-RFP? How will the vendors be evaluated?
    4. Based on the predetermined requirements, either an RFI or an RFP is issued to vendors with a predetermined due date.

    Insight Summary

    Overarching insight

    Without a well defined, consistent RFP process, with input from all key stakeholders, the organization will not achieve the best possible results from its sourcing efforts.

    Phase 1 insight

    Vendors are choosing to not respond to RFPs due to their length and lack of complete requirements.

    Phase 2 insight

    Be clear and concise in stating your requirements and include, in addition to IT requirements, procurement, security, legal, and risk requirements.

    Phase 3 insight

    Consider adding vendor management requirements to manage the ongoing relationship post contract.

    Tactical insight

    Consider the RFP Evaluation Process as you draft the RFP, including weighting the RFP components. Don’t underestimate the level of effort required to effectively evaluate responses – write the RFP with this in mind.

    Tactical insight

    Provide strict, prescriptive instructions detailing how the vendor should submit their responses. Controlling vendor responses will increase your team’s efficiency in evaluations while providing ease of reference responses across multiple vendors.

    Key deliverables

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

    Key deliverables:

    Info-Tech provides you with the tools you need to go to market in the most efficient manner possible, with guidance on how to achieve your goals.

    Sample of

    Long-Form RFP Template
    For when you have complete requirements and time to develop a thorough RFP.
    Sample of the Long-Form RFP Template deliverable. Short-Form RFP Template
    When the requirements are not as extensive, time is short, and you are familiar with the market.
    Sample of the Short-Form RFP Template deliverable.
    Lean RFP Template
    When you have limited time and some knowledge of the market and wish to include only a few vendors.
    Sample of the Lean RFP Template deliverable. Excel-Form RFP Template
    When there are many requirements, many options, multiple vendors, and a broad evaluation team.
    Sample of the Excel-Form RFP Template deliverable.

    Blueprint benefits

    IT Benefits
    • Side-by-side comparison of vendor capabilities
    • Pricing alternatives
    • No surprises
    • Competitive solutions to deliver the best results
    Mutual IT and Business Benefits
    • Reduced time to implement
    • Improved alignment between IT /Business
    • Improved vendor performance
    • Improved vendor relations
    Business Benefits
    • Budget alignment, reduced cost
    • Best value
    • Risk mitigation
    • Legal and risk protections

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

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting

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

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

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

    A typical GI is seven to twelve calls over the course of four to six months.

    What does a typical GI on this topic look like?

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    Phase 5

    Phase 6

    Phase 7

    Call #1: Identify the need Call #3: Gain business authorization Call #5: Negotiate agreement strategy Call #7: Assess and measure performance
    Call #2: Define business requirements Call #4: Review and perform the RFX or RFP Call #6: Purchase goods and services

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Day 1 Day 2 Day 3
    Activities
    Answer “What problem do we need to solve?”

    1.1 Overview and level-setting

    1.2 Identify needs and drivers

    1.3 Define and prioritize requirements

    1.4 Gain business authorization and ensure internal alignment

    Define what success looks like?

    2.1 Create and issue RFP

    2.2 Evaluate responses/ proposals and negotiate the agreement.

    2.3 Purchase goods and services

    Configure Templates

    3.1 Assess and measure

    3.2 Review tools

    Deliverables
    1. Map your process with gap identification
    2. RFP Requirements Worksheet
    1. RFP Calendar and Key Date Tool
    2. RFP Evaluation Guidebook
    3. RFP Evaluation Tool
    1. Long-form RFP Template
    2. Short-form RFP Template
    3. Excel-based RFP Tool
    4. Lean RFP Template

    Phase 1

    Identify Need

    Steps

    1.1 Establish the need to either purchase goods/services (RFP) or acquire additional information from the market (RFI).

    Steps in an RFP Process with the first step, 'Identify Need', highlighted.

    This phase involves the following participants:

    • Business stakeholders
    • IT
    • Sourcing/Procurement
    • Finance

    Identify the need based on business requirements, changing technology, increasing vendor costs, expiring contracts, and changing regulatory requirements.

    Outcomes of this phase

    Agreement on the need to go to market to make a purchase (RFP) or to acquire additional information (RFI) along with a high-level agreement on requirements, rough schedule (is there time to do a full blown RFP or are you time constrained, which may result in an eRFP) and the RFP team is identified.

    Identify Need
    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Identify the Need for Your RFP

    • An RFP is issued to the market when you are certain that you intend to purchase a product/service and have identified an adequate vendor base from which to choose as a result of:

      • IT Strategy
      • Changes in technology
      • Marketplace assessment
      • Contract expiration/renewal
      • Changes in regulatory requirements
      • Changes in the business’ requirements
    • An RFI is issued to the market when you are uncertain as to available technologies or supplier capabilities and need budgetary costs for planning purposes.
    • Be sure to choose the right RFx tool for your situation!
    Stock photo of a pen circling the word 'needs' on a printed document.

    Phase 2

    Define Your RFP Requirements

    Steps

    2.1 Define and classify the technical, business, financial, legal, and support and security requirements for your business.

    Steps in an RFP Process with the second step, 'Define Business Requirements', highlighted.

    This phase involves the following participants:

    • IT
    • Legal
    • Finance
    • Risk management
    • Sourcing/Procurement
    • Business stakeholders

    Outcomes of this phase

    A detailed list of required business, technical, legal and procurement requirements classified as to absolute need(s), bargaining and concession need(s), and “nice to haves.”

    Define Business Requirements

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Define RFP Requirements

    Key things to consider when defining requirements

    • Must be inclusive of the needs of all stakeholders: business, technical, financial, and legal
    • Strive for clarity and completeness in each area of consideration.
    • Begin defining your “absolute,” “bargaining,” “concession,” and ‘”dropped/out of scope” requirements to streamline the evaluation process.
    • Keep the requirements identified as “absolute” to a minimum, because vendors that do not meet absolute requirements will be removed from consideration.
    • Do you have a standard contract that can be included or do you want to review the vendor’s contract?
    • Don’t forget Data Security!
    • Begin defining your vendor selection criteria.
    • What do you want the end result to look like?
    • How will you manage the selected vendor after the contract? Include key VM requirements.
    • Defining requirements can’t be rushed or you’ll find yourself answering many questions, which may create confusion.
    • Collect all your current spend and budget considerations regarding the needed product(s) and service(s).

    “Concentrate on the needs of the organization and not the wants of the individuals when creating requirements to avoid scope creep.” (Donna Glidden, ITRG Research Director)

    Leverage the “ABCD” approach found in our Prepare for Negotiations More Effectively blueprint:
    https://tymansgrpup.com/research/ss/prepare-for-negotiations-more-effectively

    2.1 Prioritize your requirements

    1 hr to several days

    Input: List of all requirements from IT and IT Security, Business, Sourcing/Procurement, Risk Management, and Legal

    Output: Prioritized list of RFP requirements approved by the stakeholder team

    Materials: The RFP Requirements Worksheet

    Participants: All stakeholders impacted by the RFP: IT, IT Security, the Business, Sourcing/ Procurement, Risk Management, Legal

    1. Use this tool to assist you and your team in documenting the requirements for your RFP. Leverage it to collect and categorize your requirements in preparation for negotiations. Use the results of this tool to populate the requirements section of your RFP.
    2. As a group, review each of the requirements and determine their priority as they will ultimately relate to the negotiations.
      • Prioritizing your requirements will set up your negotiation strategy and streamline the process.
      • By establishing the priority of each requirement upfront, you will save time and effort in the selection process.
    3. Review RFP requirements with stakeholders for approval.

    Download the RFP Requirements Worksheet

    Phase 3

    Gain Business Authorization

    Steps

    3.1 Obtain business authorization from the business, technology, finance and Sourcing/Procurement

    Steps in an RFP Process with the third step, 'Gain Business Authorization', highlighted.

    This phase involves the following participants:

    • Business stakeholders
    • Technology and finance (depending upon the business)
    • Sourcing/Procurement

    Outcomes of this phase

    Approval by all key stakeholders to proceed with the issuing of the RFP and to make a purchase as a result.

    Gain Business Authorization

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Gain Business Authorization

    Gain authorization for your RFP from all relevant stakeholders
    • Alignment of stakeholders
    • Agreement on final requirements
    • Financial authorization
    • Commitment of resources
    • Agreement on what constitutes vendor qualification
    • Finalization of selection criteria and their prioritization

    Obtaining cross-function alignment will clear the way for contract, SOW, and budget approvals and not waste any of your and your vendor’s resources in performing an RFP that your organization is not ready to implement or invest financial and human resources in.

    Stock photo of the word 'AUTHORIZED' stamped onto a white background with a much smaller stamp laying beside it.

    Phase 4

    Create and Issue

    Steps

    4.1 Build your RFP

    4.2 Decide RFI or not

    4.3 Create your RFP

    4.4 Receive & answer questions

    4.5 Perform Pre-Proposal Conference

    4.6 Evaluate responses

    Steps in an RFP Process with the fourth step, 'Perform RFI/RFP', highlighted.

    This phase involves the following participants:

    • The RFP owner
    • IT
    • Business SMEs/stakeholders

    Outcomes of this phase

    RFP package is issued to vendors and includes the date of the Pre-Proposal Conference, which should be held shortly after RFP release and includes all parties.

    SME’s/stakeholders participate in providing answers to RFP contact for response to vendors.

    Create and Issue Your RFP/RFI

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Build your RFP with evaluation in mind

    Easing evaluation frustrations

    At the beginning of your RFP creation process consider how your requirements will impact the vendor’s response. Concentrate on the instructions you provide the vendors and how you wish to receive their responses. View the RFP through the lens of the vendors and envision how they are going to respond to the proposal.

    Limiting the number of requirements included in the RFP will increase the evaluation team’s speed when reviewing vendors’ responses. This is accomplished by not asking questions for common features and functionality that all vendors provide. Don’t ask multiple questions within a question. Avoid “lifting” vendor-specific language to copy into the RFP as this will signal to vendors who their competition might be and may deter their participation. Concentrate your requirement questions to those areas that are unique to your solution to reduce the amount of time required to evaluate the vendors’ response.

    Things to Consider When Creating Your RFP:

    • Consistency is the foundation for ease of evaluation.
    • Provide templates, such as an Excel worksheet, for the vendor’s pricing submissions and for its responses to close-ended questions.
    • Give detailed instructions on how the vendor should organize their response.
    • Limit the number of open-ended questions requiring a long narrative response to must-have requirements.
    • Organize your requirements and objectives in a numerical outline and have the vendor respond in the same manner, such as the following:
      • 1
      • 1.1
      • 1.1.1

    Increase your response quality

    Inconsistent formatting of vendor responses prevents an apples-to-apples evaluation between vendor responses. Evaluation teams are frequently challenged and are unable to evaluate vendors’ responses equally against each other for the following reasons:

    Challenges
    • Vendor responses are submitted with different and confusing nomenclature
    • Inconsistent format in response
    • Disparate order of sections in the vendors responses
    • Different style of outlining their responses, e.g. 1.1 vs. I.(i)
    • Pricing proposal included throughout their response
    • Responses are comingled with marketing messages
    • Vendor answers to requirements or objectives are not consolidated in a uniform manner
    • Disparate descriptions for response subsections
    Prevention
    • Provide specific instructions as to how the vendor is to organize their response:
      • How to format and outline the response
      • No marketing material
      • No pricing in the body of the response
    • Provide templates for pricing, technical, operational, and legal aspects.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Perform Request for Information

    Don’t underestimate the importance of the RFI

    As the name implies, a request for information (RFI) is a tool for collecting information from vendors about the companies, their products, and their services. We find RFIs useful when faced with a lot of vendors that we don’t know much about, when we want to benchmark the marketplace for products and services, including budgetary information, and when we have identified more potential vendors than we care to commit a full RFP to.

    RFIs are simpler and less time-consuming than RFPs to prepare and evaluate, so it can make a lot of sense to start with an RFI. Eliminating unqualified vendors from further consideration will save your team from weeding through RFP responses that do not meet your objectives. For their part, your vendors will appreciate your efforts to determine up-front which of them are the best bets before asking them to spend resources and money producing a costly proposal.

    While many organizations rarely use RFIs, they can be an effective tool in the vendor manager’s toolbox when used at the right time in the right way. RFIs can be deployed in competitive targeted negotiations.

    A Lean RFP is a two-stage strategy that speeds up the typical RFP process. The first stage is like an RFI on steroids, and the second stage is targeted competitive negotiation.

    Don’t rely solely on the internet to qualify vendors; use an RFI to acquire additional information before finalizing an RFP.

    4.2.1 In a hurry? Consider a Lean RFP instead of an RFP

    Several days
    1. Create an RFI with all of the normal and customary components. Next, add a few additional RFP-like requirements (e.g. operational, technical, and legal requirements). Make sure you include a request for budgetary pricing and provide any significant features and functionality requirements so that the vendors have enough information to propose solutions. In addition, allow the vendors to ask questions through your single point of coordination and share answers with all of the vendors. Finally, notify the vendors that you will not be doing an RFP.
    2. Review the vendors’ proposals and evaluate their proposals against your requirements along with their notional or budgetary pricing.
    3. Have the evaluators utilize the Lean RFP Template to record their scores accordingly.
    4. After collecting the scores from the evaluators, consolidate the scores together to discuss which vendors – we recommend two or three – you want to present demos.
    5. Based on the vendors’ demos, the team selects at least two vendors to negotiate contract and pricing terms with intent of selecting the best-value vendor.
    6. The Lean RFP shortens the typical RFP process, maintains leverage for your organization, and works great with low- to medium-spend items (however your organization defines them). You’ll get clarification on vendors’ competencies and capabilities, obtain a fair market price, and meet your internal clients’ aggressive timelines while still taking steps to protect your organization.

    Download the Lean RFP Template

    Download the RFP Evaluation Tool

    4.2.1 In a hurry? Consider a Lean RFP instead of an RFP continued

    Input

    • List of technical, operational, business, and legal requirements
    • Budgetary pricing ask

    Output

    • A Lean RFP document that includes the primary components of an RFP
    • Lean RFP vendors response evaluation

    Materials

    • Lean RFP Template
    • RFP Evaluation Tool
    • Contracting requirements
    • Pricing

    Participants

    • IT
    • Business
    • Finance
    • Sourcing/Procurement

    Case Study

    A Lean RFP saves time
    INDUSTRY: Pharmaceutical
    SOURCE: Guided Implementation
    Challenge
    • The vendor manager (VM) was experiencing pressure to shorten the expected five-month duration to perform an RFP for software that planned, coordinated, and submitted regulatory documents to the US Food and Drug Administration.
    • The VM team was not completely familiar with the qualified vendors and their solutions.
    • The organization wanted to capitalize on this opportunity to enhance its current processes with the intent of improving efficiencies in documentation submissions.
    Solution
    • Leveraging the Lean RFP process, the team reduced the 200+ RFP questionnaire into a more manageable list of 34 significant questions to evaluate vendor responses.
    • The team issued the Lean RFP and requested the vendors’ responses in three weeks instead of the five weeks planned for the RFP process.
    • The team modified the scoring process to utilize a simple weighted-scoring methodology, using a scale of 1-5.
    Results
    • The Lean RFP scaled back the complexity of a large RFP.
    • The customer received three vendor responses ranging from 19 to 43 pages and 60-80% shorter than expected if the RFP had been used. This allowed the team to reduce the evaluation period by three weeks.
    • The duration of the RFx process was reduced by more than two months – from five months to just under three months.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    4.3.1 RFP Calendar

    1 hour

    Input: List duration in days of key activities, RFP Calendar and Key Date Tool, For all vendor-inclusive meetings, include the dates on your RFP calendar and reference them in the RFP

    Output: A timeline to complete the RFP that has the support of each stakeholder involved in the process and that allows for a complete and thorough vendor response.

    Materials: RFP Calendar and Key Date Tool

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    1. As a group, identify the key activities to be accomplished and the amount of time estimated to complete each task:
      1. Identify who is ultimately accountable for the completion of each task
      2. Determine the length of time required to complete each task
    2. Use the RFP Calendar and Key Date Tool to build the calendar specific to your needs.
    3. Include vendor-related dates in the RFP, i.e., Pre-Proposal Conference, deadline for RFP questions as well as response.

    Download the RFP Calendar and Key Date Tool

    Draft your RFP

    Create and issue your RFP, which should contain at least the following:
    • The ability for the vendors to ask clarifying questions (in writing, sent to the predetermined RFP contact)
    • Pre-Proposal/Pre-Bid Conference schedule where vendors can receive the same answer to all clarifying written questions
    • A calendar of events (block the time on stakeholder calendars – see template).
    • Instructions to potential vendors on how they should construct and return their response to enable effective and timely evaluation of each offer.
    • Requirements; for example: Functional, Operational, Technical, and Legal.
    • Specification drawings as if applicable.
    • Consider adding vendor management requirements – how do you want to manage the relationship after the deal is done?
    • A pricing template for vendors to complete that facilitates comparison across multiple vendors.
    • Contract terms required by your legal team (or your standard contract for vendors to redline as part of their response and rated/ranked accordingly).
    • Create your RFP with the evaluation process and team in mind to ensure efficiency and timeliness in the process. Be clear, concise, and complete in the document.
    • Consistency and completeness is the foundation for ease of evaluation.
    • Give vendors detailed instruction on how to structure and organize their response.
    • Limit the number of open-ended questions requiring a long narrative response.
    • Be sure to leverage Info-Tech’s proven and field-tested Short-Form, Long-Form, and Lean RFP Templates provided in this blueprint.

    Create a template for the vendors’ response

    Dictating to the vendors the format of their response will increase your evaluation efficiency
    Narrative Response:

    Create either a Word or Excel document that provides the vendor with an easy vehicle for their response. This template should include the question identifier that ties the response back to the requirement in the RFP. Instruct vendors to include the question number on any ancillary materials they wish to include.

    Pricing Response:

    Create a separate Excel template that the vendors must use to provide their financial offer. This template should include pricing for hardware, software, training, implementation, and professional services, as well as placeholders for any additional fees.

    Always be flexible in accepting alternative proposals after the vendor has responded with the information you requested in the format you require.

    Stock image of a paper checklist in front of a laptop computer's screen.

    4.3.2 Vendor Pricing Tool

    1 hour

    Input: Identify pricing components for hardware, software, training, consulting/services, support, and additional licenses (if needed)

    Output: Vendor Pricing Tool

    Materials: RFP Requirements Worksheet, Pricing template

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement, Vendor management

    1. Using a good pricing template will prevent vendors from providing pricing offers that create a strategic advantage designed to prevent you from performing an apples-to-apples comparison.
    2. Provide specific instructions as to how the vendor is to organize their pricing response, which should be submitted separate from the RFP response.
    3. Configure and tailor pricing templates that are specific to the product and/or services.
    4. Upon receipt of all the vendor’s responses, simply cut and paste their total response to your base template for an easy side-by-side pricing comparison.
    5. Do not allow vendors to submit financial proposals outside of your template.

    Download the Vendor Pricing Tool

    Three RFP Templates

    Choose the right template for the right sourcing initiative

    • Short-Form
    • Use the Short-Form RFP Template for simple, non-complex solutions that are medium to low dollar amounts that do not require numerous requirements.

    • Long-Form
    • We recommend the Long-Form RFP Template for highly technical and complex solutions that are high dollar and have long implementation duration.

    • Excel-Form
    • Leverage the Excel-Form RFP Tool for requirements that are more specific in nature to evaluate a vendor’s capability for their solution. This template is designed to be complete and inclusive of the RFP process, e.g., requirements, vendor response, and vendor response evaluation scoring.

    Like tools in a carpenters’ tool box or truck, there is no right or wrong template for any job. Take into account your organization culture, resources available, time frame, policies, and procedures to pick the right tool for the job. (Steve Jeffery, Principal Research Director, Vendor Management, Co-Author: The Art of Creating a Quality RFP, Info-Tech Research Group)

    4.3.3 Short-Form RFP Template

    1-2 hours

    Input: List of technical, legal, business, and data security requirements

    Output: Full set of requirements, prioritized, that all participants agree to

    Materials: Short-Form RFP Template, Vendor Pricing Tool, Supporting exhibits

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    • This is a less complex RFP that has relatively basic requirements and perhaps a small window in which the vendors can respond. As with the long-form RFP, exhibits are placed at the end of the RFP, an arrangement that saves both your team and the vendors time. Of course, the short-form RFP contains less-specific instructions, guidelines, and rules for vendors’ proposal submissions.
    • We find that short-form RFPs are a good choice when you need to use something more than a request for quote (RFQ) but less than an RFP running 20 or more pages. It’s ideal, for example, when you want to send an RFP to only one vendor or to acquire items such as office supplies, contingent labor, or commodity items that don’t require significant vendor risk assessment.

    Download the Short-Form RFP Template

    4.3.4 Long-Form RFP Template

    1-3 hours

    Input: List of technical, legal, business, and data security requirements

    Output: Full set of requirements, prioritized, that all stakeholders agree to

    Materials: Long-Form RFP Template, Vendor Pricing Tool, Supporting exhibits

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    • A long-form or major RFP is an excellent tool for more complex and complicated requirements. This template is for a baseline RFP.
    • It starts with best-in-class RFP terms and conditions that are essential to maintaining your control throughout the RFP process. The specific requirements for the business, functional, technical, legal, and pricing areas should be included in the exhibits at the end of the template. That makes it easier to tailor the RFP for each deal, since you and your team can quickly identify specific areas that need modification. Grouping the exhibits together also makes it convenient for both your team to review and the vendors to respond.
    • You can use this sample RFP as the basis for your template RFP, taking it all as is or picking and choosing the sections that best meet the mission and objectives of the RFP and your organization.

    Download the Long-Form RFP Template

    4.3.5 Excel-Form RFP Tool

    Several weeks

    Input: List of technical, legal, business, and data security requirements

    Output: Full set of requirements, prioritized, that all stakeholders agree to

    Materials: Excel-Form RFP Template, Vendor Pricing Tool, Supporting exhibits

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    • The Excel-Form RFP Tool is used as an alternative to the other RFP toolsets if you have multiple requirements and have multiple vendors to choose from.
    • Requirements are written as a “statement” and the vendor can select from five answers as to their ability to meet the requirements, with the ability to provide additional context and materials to augment their answers, as needed.
    • Requirements are listed separately in each tab, for example, Business, Legal, Technical, Security, Support, Professional Services, etc.

    Download the Excel-Form RFP Template

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Answer Vendor Questions

    Maintaining your equal and level playing field among vendors

    • Provide an adequate amount of time from the RFP issue date to the deadline for vendor questions. There may be multiple vendor staff/departments that need to read the RFP and then discuss their response approach and gather any clarifying questions, so we generally recommend three to five business days.
    • There should be one point of contact for all Q&A, which should be submitted in writing via email only. Be sure to plan for enough time to get the answers back from the RFP stakeholders.
    • After the deadline, collect all Q&A and begin the process of consolidating into one document.
    Large silver question mark.
    • Be sure to anonymize both vendor questions and your responses, so as not to reveal who asked or answered the question.
    • Send the document to all RFP respondents via your sourcing tool or BCC in an email to the point of contact, with read receipt requested. That way, you can track who has received and opened the correspondence.
    • Provide the answers a few days prior to the Pre-Proposal Conference to allow all respondents time to review the document and prepare any additional questions.
    • Begin the preparation for the Pre-Proposal Conference.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Conduct Pre-Proposal Conference

    Maintain an equal and level playing field

    • Consolidate all Q&A to be presented to all vendors during the Pre-Proposal Conference.
    • If the Pre-Proposal Conference is conducted via conference call, be sure to record the session and advise all participants at the beginning of the call.
    • Be sure to have key stakeholders present on the call to answer questions.
    • Read each question and answer, after which ask if there are any follow up questions. Be sure to capture them and then add them to the Q&A document.
    • Remind respondents that no further questions will be entertained during the remainder of the RFP response period.
    • Send the updated and completed document to all vendors (even if circumstances prevented their attending the Pre-Proposal Conference). Use the same process as when you sent out the initial answers: via email, blind copy the respondents and request read/receipt.

    “Using a Pre-Proposal Conference allows you to reinforce that there is a level playing field for all of the vendors…that each vendor has an equal chance to earn your business. This encourages and maximizes competition, and when that happens, the customer wins.” (Phil Bode, Principal Research Director, Co-Author: The Art of Creating a Quality RFP, Info-Tech Research Group)

    Pre-Proposal Conference Agenda

    Modify this agenda for your specific organization’s culture
    1. Opening Remarks & Welcome – RFP Manager
      1. Agenda review
      2. Purpose of the Pre-Proposal Conference
    2. Review Agenda
      1. Introduction of your (customer) attendees
    3. Participating Vendor Introduction (company name)
    4. Executive or Sr. Leadership Comments (limit to five minutes)
      1. Importance of the RFP
      2. High-level business objective or definition of success
    5. Review Key Dates in the RFP

    (Source: The Art of Creating a Quality RFP, Jeffery et al., 2019)
    1. Review of any Technical Drawings or Information
      1. Key technical requirements and constraints
      2. Key infrastructure requirements and constraints
    2. Review of any complex RFP Issues
      1. Project scope/out of scope
    3. Question &Answer
      1. Vendors’ questions in alphabetical order
    4. Review of Any Specific Instructions for the Respondents
    5. Conclusion/Closing
      1. Review how to submit additional questions
      2. Remind vendors of the single point of contact

    Allow your executive or leadership sponsor to leave the Pre-Proposal Conference after they provide their comments to allow them to continue their day while demonstrating to the vendors the importance of the project.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Evaluate Responses

    Other important information

    • Consider separating the pricing component from the RFP responses before sending them to reviewers to maintain objectivity until after you have received all ratings on the proposals themselves.
    • Each reviewer should set aside focused time to carefully read each vendor’s response
    • Read the entire vendor proposal – they spent a lot time and money responding to your request, so please read everything.
    • Remind reviewers that they should route any questions to the vendor through the RFP manager.
    • Using the predetermined ranking system for each section, rate each section of the response, capturing any notes, questions, or concerns as you proceed through the document(s).
    Stock photo of a 'Rating' meter with values 'Very Bad to 'Excellent'.

    Use a proven evaluation method

    Two proven methods to reviewing vendors’ proposals are by response and by objective

    The first, by response, is when the evaluator reviews each vendor’s response in its entirety.

    The second, reviewing by objective, is when the evaluator reviews each vendor’s response to a single objective before moving on to the next.

    By Response

    Two-way arrow with '+ Pros' in green on the left and 'Cons -' in red on the right.

    By Objective

    Two-way arrow with '+ Pros' in green on the left and 'Cons -' in red on the right.

    • Each response is thoroughly read all the way through.
    • Response inconsistencies are easily noticed.
    • Evaluators obtain a good feel for the vendor's response.
    • Evaluators will lose interest as they move from one response to another.
    • Evaluation will be biased if the beginning of response is subpar, influencing the rest of the evaluation.
    • Deficiencies of the perceived favorite vendor are overlooked.
    • Evaluators concentrate on how each objective is addressed.
    • Evaluators better understand the responses, resulting in identifying the best response for the objective.
    • Evaluators are less susceptible to supplier bias.
    • Electronic format of the response hampers response review per objective.
    • If a hard copy is necessary, converting electronic responses to hard copy is costly and cumbersome.
    • Discipline is required to score each vendor's response as they go.

    Maintain evaluation objectivity by reducing response evaluation biases

    Evaluation teams can be naturally biased during their review of the vendors’ responses.

    You cannot eliminate bias completely – the best you can do is manage it by identifying these biases with the team and mitigating their influence in the evaluation process.

    Vendor

    The evaluator only trusts a certain vendor and is uncomfortable with any other vendor.
    • Evaluate the responses blind of vendor names, if possible.
    Centerpiece for this table, titled 'BIAS' and surrounding by iconized representations of the four types listed.

    Account Representatives

    Relationships extend beyond business, and an evaluator doesn't want to jeopardize them.
    • Craft RFP objectives that are vendor neutral.

    Technical

    A vendor is the only technical solution the evaluator is looking for, and they will not consider anything else.
    • Conduct fair and open solution demonstrations.

    Price

    As humans, we can justify anything at a good price.
    • Evaluate proposals without awareness of price.

    Additional insights when evaluating RFPs

    When your evaluation team includes a member of the C-suite or senior leadership, ensure you give them extra time to sufficiently review the vendor's responses. When your questions require a definitive “Yes”/“True” or “No”/“False” responses, we recommend giving the maximum score for “Yes”/“True” and the minimum score for “No”/“False”.
    Increase your efficiency and speed of evaluation by evaluating the mandatory requirements first. If a vendor's response doesn't meet the minimum requirements, save time by not reviewing the remainder of the response. Group your RFP questions with a high-level qualifying question, then the supporting detailed requirements. The evaluation team can save time by not evaluating a response that does not meet a high-level qualifying requirement.

    Establish your evaluation scoring scale

    Define your ranking scale to ensure consistency in ratings

    Within each section of your RFP are objectives, each of which should be given its own score. Our recommended approach is to award on a scale of 0 to 5. With such a scale, you need to define every level. Below are the recommended definitions for a 0 to 5 scoring scale.

    Score Criteria for Rating
    5 Outstanding – Complete understanding of current and future needs; solution addresses current and future needs
    4 Competent – Complete understanding and adequate solution
    3 Average – Average understanding and adequate solution
    2 Questionable – Average understanding; proposal questionable
    1 Poor – Minimal understanding
    0 Not acceptable – Lacks understanding
    Stock photo of judges holding up their ratings.

    Weigh the sections of your RFP on how important or critical they are to the RFP

    Obtain Alignment on Weighting the Scores of Each Section
    • There are many ways to score responses, ranging from extremely simple to highly complicated. The most important thing is that everyone responsible for completing scorecards is in total agreement about how the scoring system should work. Otherwise, the scorecards will lose their value, since different weighting and scoring templates were used to arrive at their scores.
    • You can start by weighting the scores by section, with all sections adding up to 100%.
    Example RFP Section Weights
    Pie chart of example RFP section weights, 'Operational, 20%', 'Service-Level Agreements, 20%', 'Financial, 20%', 'Legal/Contractual, 15%', 'Technical, 10%' 'Functional, 15%'.
    (Source: The Art of Creating a Quality RFP, Jeffery et al., 2019)

    Protect your negotiation leverage with these best practices

    Protect your organization's reputation within the vendor community with a fair and balanced process.
    • Unless you regularly have the evaluators on your evaluation team, always assume that the team members are not familiar nor experienced with your process and procedures.
    • Do not underestimate the amount of preparations required to ensure that your evaluation team has everything they need to evaluate vendors’ responses without bias.
    • Be very specific about the expectations and time commitment required for the evaluation team to evaluate the responses.
    • Explain to the team members the importance of evaluating responses without conflicts of interest, including the fact that information contained within the responses and all discussions within the team are considered company owned and confidential.
    • Include examples of the evaluation and scoring processes to help the evaluators understand what they should be doing.
    • Finally – don’t forget to the thank the evaluation team and their managers for their time and commitment in contributing to this essential decision.
    Stock photo of a cork board with 'best practice' spelled out by tacked bits of paper, each with a letter in a different font.

    Evaluation teams must balance commercial vs. technical requirements

    Do not alter the evaluation weights after responses are submitted.
    • Evaluation teams are always challenged by weighing the importance of price, budget, and value against the technical requirements of “must-haves” and super cool “nice-to-haves.”
    • Encouraging the evaluation team not to inadvertently convert the nice-to-haves to must-haves will prevent scope creep and budget pressure. The evaluation team must concentrate on the vendors’ responses that drive the best value when balancing both commercial and technical requirements.
    Two blocks labelled 'Commercial Requirements' and 'Technical Requirements' balancing on either end of a flat sheet, which is balancing on a silver ball.

    4.6.1 Evaluation Guidebook

    1 hour

    Input: RFP responses, Weighted Scoring Matrix, Vendor Response Scorecard

    Output: One or two finalists for which negotiations will proceed

    Materials: RFP Evaluation Guidebook

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement, Vendor management

    1. Info-Tech provides an excellent resource for your evaluation team to better understand the process of evaluating vendor response. The guidebook is designed to be configured to the specifics of your RFP, with guidance and instructions to the team.
    2. Use this guidebook to provide instruction to the evaluation team as to how best to score and rate the RFP responses.
    3. Specific definitions are provided for applying the numerical scores to the RFP objectives will ensure consistency among the appropriate numerical score.

    Download the RFP Evaluation Guidebook

    4.6.2 RFP Vendor Proposal Scoring Tool

    1-4 hours

    Input: Each vendor’s RFP response, A copy of the RFP (less pricing), A list of the weighted criteria incorporated into a vendor response scorecard

    Output: A consolidated ranked and weighted comparison of the vendor responses with pricing

    Materials: Vendor responses, RFP Evaluation Tool

    Participants: Sourcing/Procurement, Vendor management

    1. Using the RFP outline as a base, develop a scorecard to evaluate and rate each section of the vendor response, based on the criteria predetermined by the team.
    2. Provide each stakeholder with the scorecard when you provide the vendor responses for them to review and provide the team with adequate time to review each response thoroughly and completely.
    3. Do not, at this stage, provide the pricing. Allow stakeholders to review the responses based on the technical, business, operational criteria without prejudice as to pricing.
    4. Evaluators should always be reminded that they are evaluating each vendor’s response against the objectives and requirements of the RFP. The evaluators should not be evaluating each vendor’s response against one another.
    5. While the team is reviewing and scoring responses, review and consolidate the vendor pricing submissions into one document for a side-by-side comparison.

    Download the RFP Evaluation Tool

    4.6.3 Total Cost of Owners (TCO)

    1-2 hours

    Input: Consolidated vendor pricing responses, Consolidated vendor RFP responses, Current spend within your organization for the product/service, if available, Budget

    Output: A completed TCO model summarizing the financial results of the RFP showing the anticipated costs over the term of the agreement, taking into consideration the impact of renewals.

    Materials: Vendor TCO Tool, Vendor pricing responses

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement

    • Use Info-Tech’s Vendor TCO Tool to normalize each vendor’s pricing proposal and account for the lifetime cost of the product.
    • Fill in pricing information (the total of all annual costs) from each vendor's returned Pricing Proposal.
    • The tool will summarize the net present value of the TCO for each vendor proposal.
    • The tool will also provide the rank of each pricing proposal.

    Download the Vendor TCO Tool

    Conduct an evaluation team results meeting

    Follow the checklist below to ensure an effective evaluation results meeting

    • Schedule the evaluation team’s review meeting well in advance to ensure there are no scheduling conflicts.
    • Collect the evaluation team’s scores in advance.
    • Collate scores and provide an initial ranking.
    • Do not reveal the pricing evaluation results until after initial discussions and review of the scoring results.
    • Examine both high and low scores to understand why the team members scored the response as they did.
    • Allow the team to discuss, debate, and arrive at consensus on the ranking.
    • After consensus, reveal the pricing to examine if or how it changes the ranking.
    • Align the team on the next steps with the applicable vendors.

    4.6.4 Consolidated RFP Response Scoring

    1-2 hours

    Input: Vendor Response Scorecard from each stakeholder, Consolidated RFP responses and pricing, Any follow up questions or items requiring further vendor clarification.

    Output: An RFP Response Evaluation Summary that identifies the finalists based on pre-determined criteria.

    Materials: RFP Evaluation Tool from each stakeholder, Consolidated RFP responses and pricing.

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement, Vendor management

    1. Collect from the evaluation team all scorecards and any associated questions requiring further clarification from the vendor(s). Consolidate the scorecards into one for presentation to the team and key decision makers.
    2. Present the final scores to the team, with the pricing evaluation, to determine, based on your needs, two or three finalists that will move forward to the next steps of negotiations.
    3. Discuss any scores that are have large gaps, e.g., a requirement with a score of one from one evaluator and the same requirement with a score five from different evaluator.
    4. Arrive at a consensus of your top one or two potential vendors.
    5. Determine any required follow-up actions with the vendors and include them in the Evaluation Summary.

    Download the Consolidated Vender RFP Response Evaluation Summary

    4.6.5 Vendor Recommendation Presentation

    1-3 hours
    1. Use the Vendor Recommendation Presentation to present your finalist and obtain final approval to negotiate and execute any agreements.
    2. The Vendor Recommendation Presentation provides leadership with:
      1. An overview of the RFP, its primary goals, and key requirements
      2. A summary of the vendors invited to participate and why
      3. A summary of each component of the RFP
      4. A side-by-side comparison of key vendor responses to each of the key/primary requirements, with ranking/weighting results
      5. A summary of the vendor’s responses to key legal terms
      6. A consolidated summary of the vendors’ pricing, augmented by the TCO calculations for the finalist(s).
      7. The RFP team’s vendor recommendations based on its findings
      8. A summary of next steps with dates
      9. Request approval to proceed to next steps of negotiations with the primary and secondary vendor

    Download the Vendor Recommendation Presentation

    4.6.5 Vendor Recommendation Presentation

    Input

    • Consolidated RFP responses, with a focus on key RFP goals
    • Consolidated pricing responses
    • TCO Model completed, approved by Finance, stakeholders

    Output

    • Presentation deck summarizing the key findings of the RFP results, cost estimates and TCO and the recommendation for approval to move to contract negotiations with the finalists

    Materials

    • Consolidated RFP responses, including legal requirements
    • Consolidated pricing
    • TCO Model
    • Evaluators scoring results

    Participants

    • IT
    • Finance
    • Business stakeholders
    • Legal
    • Sourcing/Procurement

    Caution: Configure templates and tools to align with RFP objectives

    Templates and tools are invaluable assets to any RFP process

    • Leveraging templates and tools saves time and provides consistency to your vendors.
    • Maintain a common repository of your templates and tools with different versions and variations. Include a few sentences with instructions on how to use the template and tools for team members who might not be familiar with them.

    Templates/Tools

    RFP templates and tools are found in a variety of places, such as previous projects, your favorite search engine, or by asking a colleague.

    Sourcing

    Regardless of the source of these documents, you must take great care and consideration to sanitize any reference to another vendor, company, or name of the deal.

    Review

    Then you must carefully examine the components of the deal before creating your final documents.

    Popular RFP templates include:

    • RFP documents
    • Pricing templates
    • Evaluation and scoring templates
    • RFP requirements
    • Info-Tech research

    Phase 5

    Negotiate Agreement(s)

    Steps

    5.1 Perform negotiation process

    Steps in an RFP Process with the fifth step, 'Negotiate Agreement', highlighted.

    This phase involves the following participants:

    • Procurement
    • Vendor management
    • Legal
    • IT stakeholders
    • Finance

    Outcomes of this phase

    A negotiated agreement or agreements that are a result of competitive negotiations.

    Negotiate Agreement(s)

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Negotiate Agreement

    You should evaluate your RFP responses first to see if they are complete and the vendor followed your instructions.


    Then you should:

    • Plan negotiation(s) with one or more vendors based on your questions and opportunities identified during evaluation.
    • Select finalist(s).
    • Apply selection criteria.
    • Resolve vendors’ exceptions.

    Info-Tech Insight

    Be certain to include any commitments made in the RFP, presentations, and proposals in the agreement – dovetails to underperforming vendor.

    Centerpiece of the table, titled 'Negotiation Process'.

    Leverage Info-Tech's negotiation process research for additional information

    Negotiate before you select your vendor:
    • Negotiating with two or more vendors will maintain your competitive leverage while decreasing the time it takes to negotiate the deal.
    • Perform legal reviews as necessary.
    • Use sound competitive negotiations principles.

    Info-Tech Insight

    Providing contract terms in an RFP can dramatically reduce time for this step by understanding the vendor’s initial contractual position for negotiation.

    Phase 6

    Purchase Goods and Services

    Steps

    6.1 Purchase Goods & Services

    Steps in an RFP Process with the sixth step, 'Purchase Goods and Services', highlighted.

    This phase involves the following participants:

    • Procurement
    • Vendor management
    • IT stakeholders

    Outcomes of this phase

    A purchase order that completes the RFP process.

    The beginning of the vendor management process.

    Purchase Goods and Services

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Purchase Goods and Services

    Prepare to purchase goods and services

    Prepare to purchase goods and services by completing all items on your organization’s onboarding checklist.
    • Have the vendor complete applicable tax forms.
    • Set up the vendor in accounts payable for electronic payment (ACH) set-up.
    Then transact day-to-day business:
    • Provide purchasing forecasts.
    • Complete applicable purchase requisition and purchase orders. Be sure to reference the agreement in the PO.
    Stock image of a computer monitor with a full grocery cart shown on the screen.

    Info-Tech Insight

    As a customer, honoring your contractual obligations and commitments will ensure that your organization is not only well respected but considered a customer of choice.

    Phase 7

    Assess and Measure Performance

    Steps

    7.1 Assess and measure performance against the agreement

    Steps in an RFP Process with the seventh step, 'Assess and Measure Performance', highlighted.

    This phase involves the following participants:

    • Vendor management
    • Business stakeholders
    • Senior leadership (as needed)
    • IT stakeholders
    • Vendor representatives & senior management

    Outcomes of this phase

    A list of what went well during the period – it’s important to recognize successes

    A list of areas needing improvement that includes:

    • A timeline for each item to be completed
    • The team member(s) responsible

    Purchase Goods and Services

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Assess and Measure Performance

    Measure to manage: the job doesn’t end when the contract is signed.

    • Classify vendor
    • Assess vendor performance
    • Manage improvement
    • Conduct periodic vendor performance reviews or quarterly business reviews
    • Ensure contract compliance for both the vendor and your organization
    • Build knowledgebase for future
    • Re-evaluate and improve appropriately your RFP processes

    Info-Tech Insight

    To be an objective vendor manager, you should also assess and measure your company’s performance along with the vendor’s performance.

    Summary of Accomplishment

    Problem Solved

    Upon completion of this blueprint, guided implementation, or workshop, your team should have a comprehensive, well-defined end-to-end approach to performing a quality sourcing event. Leverage Info-Tech’s industry-proven tools and templates to provide your organization with an effective approach to maintain your negotiation leverage, improve the ease with which you evaluate vendor proposals, and reduce your risk while obtaining the best market value for your goods and services.

    Additionally, your team will have a foundation to execute your vendor management principles. These principles will assist your organization in ensuring you receive the perceived value from the vendor as a result of your competitive negotiations.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information.

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

    Final Thoughts: RFP Do’s and Don’ts

    DO

    • Leverage your team’s knowledge
    • Document and explain your RFP process to stakeholders and vendors
    • Include contract terms in your RFP
    • Consider vendor management requirements up front
    • Plan to measure and manage performance after contract award leveraging RFP objectives
    • Seek feedback from the RFP team for process improvements

    DON'T

    • Reveal your budget
    • Do an RFP in a vacuum
    • Send an RFP to a vendor your team is not willing to award the business to
    • Hold separate conversations with candidate vendors during your RFP process
    • Skimp on the requirements definition to speed the process
    • Tell the vendor they are selected before negotiating

    Bibliography

    “2022 RFP Response Trends & Benchmarks.” Loopio, 2022. Web.

    Corrigan, Tony. “How Much Does it Cost to Respond to an RFP?” LinkedIn, March 2017. Accessed 10 Dec. 2019

    “Death by RFP:7 Reasons Not to Respond.” Inc. Magazine, 2013. Web.

    Jeffery, Steven, George Bordon, and Phil Bode. The Art of Creating a Quality RFP, 3rd ed. Info-Tech Research Group, 2019.

    “RFP Benchmarks: How Much Time and Staff Firms Devote to Proposals.” MarketingProfs, 2020. Web.

    “State of the RFP 2019.” Bonfire, 2019. Web.

    “What Vendors Want (in RFPs).” Vendorful, 2020. Web.

    Related Info-Tech Research

    Stock photo of two people looking at a tablet. Prepare for Negotiations More Effectively
    • Negotiations are about allocating risk and money – how much risk is a party willing to accept at what price point?
    • Using a cross-functional/cross-insight team structure for negotiation preparation yields better results.
    • Soft skills aren’t enough and theatrical negotiation tactics aren’t effective.
    Stock photo of two people in suits shaking hands. Understand Common IT Contract Provisions to Negotiate More Effectively
    • Focus on the terms and conditions, not just the price. Too often, organizations focus on the price contained within their contracts, neglecting to address core terms and conditions that can end up costing multiples of the initial price.
    • Lawyers can’t ensure you get the best business deal. Lawyers tend to look at general terms and conditions for legal risk and may not understand IT-specific components and business needs.
    Stock photo of three people gathered around a computer. Jump Start Your Vendor Management Initiative
    • Vendor management must be an IT strategy. Solid vendor management is an imperative – IT organizations must develop capabilities to ensure that services are delivered by vendors according to service-level objectives and that risks are mitigated according to the organization's risk tolerance.
    • Visibility into your IT vendor community. Understand how much you spend with each vendor and rank their criticality and risk to focus on the vendors you should be concentrating on for innovative solutions.

    Build an ITSM Tool Implementation Plan

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    • Parent Category Name: Service Desk
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    • Over-Reliance on the Vendor to Optimize Your Tool: Yes, the vendor will typically install and set up the tool, but they will not fix your processes for you.
    • Not Preparing for Data Migration: Data migration is complex. You need to determine what data to migrate, if any, and how that data will be mapped to the new environment.
    • Insufficient IT and End-User Training: A link to the ITSM tool manual is not enough. Staff and users need training on how your processes will be executed in the new tool.

    Our Advice

    Critical Insight

    • Start with the assumption you don’t need to migrate old data.
    • ITSM tools are designed to support ITIL best practices.
    • Implement your new tool in stages to manage scope.

    Impact and Result

    • Ability to plan and scope the project to avoid or reduce last-minute chaos.
    • Opportunity to review and optimize processes as part of the ITSM tool implementation project.
    • Improved project management, and therefore, better cost and effort estimates, by identifying required tasks upfront.

    Build an ITSM Tool Implementation Plan Research & Tools

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

    1. Build an ITSM Tool Implementation Plan Deck – An implementation guide that walks you through the steps to ensure the tool delivers business value.

    There may be hundreds of parameters to define and decisions to make, so identifying the full list of tasks early is critical for the success of the implementation project.

    • Build an ITSM Tool Implementation Plan – Phases 1-3

    2. ITSM Tool Project Charter Template – A charter to document your project scope, milestones, stakeholders, risks etc. to kick-off and manage your project.

    This project charter document summarizes the Project Overview (Description, background, drivers, and objectives), Governance and Management (Project stakeholders/roles, budget, and dependencies), and Risk, Assumptions, and Constraints (Known and potential risks and mitigation strategy).

    • ITSM Tool Implementation Project Charter Template

    3. ITSM Tool Implementation Checklist – A tool to help identify the most common decisions you will need to make and prepare for your implementation project.

    The checklists in this tool identify the most common decisions and preparation you will need to make to support the implementation for the ITSM modules that we recommend are set up first: incident management and service requests; change management; and asset management. Use these checklists as a model to follow for any additional ITSM modules you plan to implement, and refer to Info-Tech's blueprints for each service management topic for additional guidance.

    • ITSM Tool Implementation Checklist

    4. ITSM Tool Deployment Plan Template – A tool to help prioritize and prepare for tool rollout plan.

    This deployment plan documents the strategy and decisions made for making the transition to the new ITSM tool, and the details to execute the cutover to a live environment, including how, when, where.

    • ITSM Tool Deployment Plan Template

    5. ITSM Tool Training Schedule – Use the tool to create your new tool training roadmap.

    This template is a guide for creating a training and communication plan as part of the implementation project for your ITSM tool. Use the template to document and plan the communications and training needs prior to deployment of the new tool.

    • ITSM Tool Training Schedule

    Infographic

    Further reading

    Build an ITSM Tool Implementation Plan

    Plan ahead with a step-by-step approach to ensure the tool delivers business value.

    EXECUTIVE BRIEF

    Analyst perspective

    Take control of the wheel or you might end up in a ditch.

    The image contains a picture of Frank Trovato.

    An ITSM tool implementation is a complex project with direct impact on IT’s ability to support the business. With that level of risk, you need to take control early on.

    Yes, your vendor will support or execute the technical implementation, but they depend on you to tell them how to configure ITSM parameters and workflows that affect user interface, the ability to manage incidents, and governance over assets and IT changes.

    If you leave the configuration completely to the vendor, at best you might get the same setup as in your old tool (and not realize the benefits that leadership is expecting). At worst you end up with default values that don’t fit your process needs, i.e., confusion and not realizing expected benefits.

    A successful implementation requires early planning from a wide range of resources including ITSM tool experts (supported by the vendor), process experts, and a project manager to methodically step through the hundreds of parameters you will need to define before implementation.

    Frank Trovato
    Research Director, Infrastructure and Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    Leadership has invested significantly in a new ITSM tool and expects to see the benefits they were promised by the vendor and the procurement team.

    The ITSM project team needs to balance leadership expectations with the direct impact this project will have on IT staff and end users.

    Implementing an ITSM tool is a large project that is often highly complex in part because it requires input from a wide range of stakeholders: IT staff, end users, senior management, and vendors.

    A new ITSM tool will change how IT staff work and how users are serviced, and change is always difficult.

    Finally, implementing the new tool requires a migration from an existing tool without a pause in IT service availability. Incidents don’t take a week off while you execute the final product rollout.

    There may be hundreds of parameters to define and decisions to make, so identifying the full list of tasks early is critical to:

    • Identify the necessary stakeholders to provide input into implementation decisions.
    • Properly define scope and timelines.
    • Take advantage of the opportunity to review and improve processes as part of defining what will need to be configured in the new ITSM tool.

    Info-Tech Insight

    As with any large project, a key step is tackling it one bite at a time – but also understanding the size of the whole meal. This is where organizations often fail with ITSM implementations: not understanding upfront the volume of work required for a successful implementation.

    Your Challenge

    Organizations implementing a new ITSM tool often face these pitfalls:

    • Selecting the Wrong Resources: You need ITSM technology and process experts, because this is not just a technology project but also a process improvement opportunity. You will need to configure ITSM parameters and workflows in the new tool – which directly affects processes. Take advantage of that opportunity to fix pain points. For example, if your existing ticket categories are not effective, implement a better categorization scheme rather than just configure the same old, ineffective scheme.
    • Over-Reliance on the Vendor to Optimize Your Tool: Yes, the vendor will typically install and set up the tool but they will not fix your processes for you. On installation day, if you are not prepared with the categories, ticket templates, and so on that you wish to configure, your vendor will just go with the default or migrate your old parameters from your old ITSM tool.
    • Not Preparing for Data Migration: Data migration is complex. You need to determine what data to migrate, if any, and how that data will be mapped to the new environment. That takes planning and must be defined well before the vendor is ready to implement your tool.
    • Insufficient IT and End-User Training: A link to the ITSM tool manual is not enough. Staff and users need training on how your processes will be executed in the new tool.

    A survey of implementation challenges for ServiceNow’s customers

    26% Resistance to change

    43% Lacked a clear roadmap

    38% Planning for resources

    Source: Acorio, 2019

    Info-Tech’s approach

    Divide the implementation project into controllable phases for an effective implementation.

    Plan

    Define the scope of your project, identify and get buy-in from your stakeholders, and establish a timeframe for the implementation.

    Design & Build

    Identify existing process challenges and design workflows and ticket management to improve processes. Make decisions on data migrations and integrations for your new tool.

    Deploy & Train

    Create a rollout plan and communicate changes and improvements to users. Plan for the new tool deployment and monitor your solution.

    STOP: Use this blueprint after you have selected an ITSM solution

    Leverage our SoftwareReviews service and related blueprints to assist with ITSM tool selection, and then use this blueprint to plan the implementation.

    1. Evaluate solutions

    2. Select and purchase

    3. Implement (use this blueprint)

    Use our SoftwareReviews resources to evaluate solutions and vendors based on criteria such as features and customer service. Below are links to our ITSM software reviews:

    Use the following resources to help you make the case for funding and execute the purchase process:

    Your ITSM vendor or systems integrator will lead the technical implementation (e.g. software install and integration).

    As a result, your implementation plan needs to focus on preparing the information needed for implementation (e.g. ticket categories, workflow requirements) and organizational change management.

    This blueprint provides a methodology, checklist, and supporting templates to prepare for the implementation.

    Info-Tech’s methodology to build an ITSM Tool Implementation Plan

    1. Identify Scope, Stakeholders, and Preliminary Timeline

    2. Prepare to Implement Incident Management and Service Request Modules

    3. Create a Deployment Plan (Communication, Training, Rollout)

    Phase Steps

    1.1 Document define scope

    1.2 Define roles and responsibilities

    1.3 Identify preliminary timeline

    2.1 Review your existing solution and challenges

    2.2 Plan ticket management and workflow implementation

    2.3 Plan data migration, knowledgebase setup, and integrations

    2.4 Plan the module rollout

    3.1 Create a communication plan (for IT, users, and business leaders)

    3.2 Create a training plan

    3.3 Plan how you will deploy, monitor, and maintain the solution

    Phase Outcomes

    • RACI chart outlining high-level accountability and responsibilities for the project
    • Documenting timeline and team for the implementation project
    • ITSM tool implementation checklist
    • Strategy and identified opportunities to implement incident and service request modules
    • Documented communications and targeted training plan
    • Completed rollout plan and prepared to monitor your success metrics

    Insight summary

    Start with the assumption you don’t need to migrate old data

    ITSM tools are designed to support ITIL best practices

    Implement your new tool in stages to manage scope

    We all love data. We love being able to run reports showing trends, measuring changes over time, and highlighting pain points – but is your data from five years ago relevant to those assessments? Can you get by with just migrating open tickets and perhaps just the last year of critical tickets?

    Be ruthless in deciding what really needs to be in your active system to support incident matching, troubleshooting, or ongoing reporting.

    If you can’t make a strong case, don’t waste your time on old data. Remember, you can still save an exported copy or report of your old data if the need arises to search historical records.

    For organizations lacking process maturity, the tool’s default settings will often provide a good starting point. For example, a good ITSM tool will typically already be configured to follow best practices such as:

    • Separating incidents from service requests
    • Assigning resolution codes to solved tickets
    • Enabling routing based on categories

    Within those defaults, you will still need to decide your specific parameters – e.g. what your categories and resolution codes should be – so don’t blindly follow default settings but use them as a starting point.

    Start with the incident management and service requests modules. Those are typically the core of IT service management operations, so that should help realize benefits from the new tool sooner. In addition, incident management and service requests processes will support other ITSM processes such as asset management and problem management.

    Once those modules are implemented successfully (from a technology and process perspective), then start to implement your next core module (e.g. asset or change management), and continue to build from there.

    Blueprint deliverables

    This blueprint includes tools and templates to help you accomplish your goals:

    ITSM Tool Implementation Checklist

    Identify the most common decisions you will need to make and prepare for your implementation project.

    ITSM Tool Project Charter Template

    Review and edit the template to suit your project requirements

    The image contains a screenshot of the ITSM Tool Project Charter Template.
    The image contains screenshots of the ITSM Tool Implementation Checklist.

    ITSM Tool Deployment Plan Template

    Prioritize and prepare tool rollout plan

    The image contains a screenshot of the ITSM Tool Deployment Plan Template.

    ITSM Tool Training Schedule

    Use the checklist to create your new tool training roadmap

    The image contains a screenshot of the ITSM Tool Training Schedule.

    Blueprint benefits

    Benefits for IT

    Benefits for the business

    • Checklists and templates to support a smoother transition to the new ITSM tool.
    • Opportunity to review and optimize processes as part of the ITSM tool implementation project. A new tool with the same old processes will not achieve expected benefits.
    • Ability to plan and scope the project to avoid or reduce last-minute chaos.
    • Better planning means better results – specifically, ensuring that the implementation takes into account targeted business benefits.
    • Improved project management, and therefore better cost and effort estimates, by identifying required tasks upfront. This also provides the opportunity to re-scope or adjust timelines based on estimated effort.
    • Higher end-user satisfaction by executing a well-organized ITSM tool implementation.

    Measured value from using this blueprint

    Use this guide as an example to calculate your total cost savings from the ITSM tool implementation project.

    Phase 1

    Identify Scope, Stakeholders, and Preliminary Timeline

    Time, value, and resources saved by using Info-Tech’s methodology to define scope and plan your project

    E.g. 2 FTEs * 6 days * $80,000/year = $4,000/-

    Phase 2

    Prepare to Implement Incident Management and Service Request Modules

    Time, value, and resources saved by using Info-Tech’s methodology to build your solution strategy and determine configurations

    E.g. 2 FTEs * 8 days * $80,000/year = $5,400/-

    Phase 3

    Create a Deployment Plan (Communication, Training, Rollout)

    Time, value, and resources saved by using Info-Tech’s methodology to establish an effective communications roadmap and deploy tool

    E.g. 2 FTEs * 6 days * $80,000/year = $4,000/-

    Total Savings

    Total Savings

    Phase 1 + Phase 2 + Phase 3 = $13,400

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

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

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    Phase 1 Phase 2 Phase 3

    Call #1: Define scope, roles, responsibilities and timeline.

    Call #2: Review your existing solution and challenges.

    Call #3: Plan ticket management and workflow implementation.

    Call #4: Plan data migration, knowledgebase setup, and integrations.

    Call #5: Plan the module rollout.

    Call #6: Create a communication plan.

    Call #7: Create a training plan.

    Call #8: Plan how you will deploy, monitor, and maintain the solution.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization. A typical GI is between 6 to 8 calls over the course of 3 to 6 months.

    Phase 1

    Identify Stakeholders, Scope, and Preliminary Timeline

    Phase 1 Phase 2 Phase 3

    Identify Stakeholders, Scope, and Preliminary Timeline

    Prepare to Implement Incident Management and Service Request Modules

    Create a Deployment Plan (Communication, Training, Rollout)

    This phase will walk you through the following steps:

    1. Define scope
    2. Define roles and responsibilities
    3. Identify preliminary timeline

    Step 1.1

    Define scope

    Activities

    1.1.1

    Use the Project Charter Template to capture project parameters

    1.1.2

    Leverage the Implementation Checklist to guide your preparation

    1.1.3

    Review goals that drove the ITSM tool purchase

    1.1.4

    Interview ITSM staff to identify current tool challenges and support organizational change management

    1.1.5

    Identify the modules and features you will plan to implement

    1.1.6

    Determine if data migration is required

    This step will walk you through the following activities:

    • Define the scope of the implementation project
    • Establish the future processes and functionalities the tool will support

    This step involves the following participants:

    • CIO
    • IT Director/Manager
    • Service Manager
    • Project Manager and the project team

    Outcomes of this step

    • Specifying the implementation project
    • Identifying the business units that are needed to support the project
    • Defining the ongoing and future service management processes the tool will support

    1.1.1 Use the Project Charter Template to capture scope, stakeholders, and timeline as outlined in Phase 1

    Follow the instructions in Phase 1 (step 1.1, 1.2, and 1.3) to gather information needed to create a project charter to define project parameters.

    Specific subsections are listed below and described in more detail in the remainder of this phase.

    1. Project Overview: Includes deliverables, scope, milestones, and success metrics.
    2. Governance and Management: Includes roles, responsibilities, and resource requirements.
    3. Project Risks, Assumptions, and Constraints: Includes risks and mitigation strategies as well as any assumptions and constraints.
    4. Project Sign-Off: Includes IT and executive sign-off (if required).

    The image contains a screenshot of the Project Charter Template.

    Download the ITSM Tool Implementation Project Charter Template

    1.1.2 Leverage the Implementation Checklist to guide your preparation

    The checklist tabs align to each phase of this blueprint.

    • Phase 1 (Tab 1) – Identify Stakeholders, Scope, and Preliminary Timeline
    • Phase 2 (Tab 2) – Prepare to Implement Incident Management and Service Request Modules
    • Phase 3 (Tabs 3+4) – Prepare to Implement Additional ITSM Modules (e.g. Change Management)
    • Phase 4 (deployment section in each tab) – Create a Deployment Plan (Communication, Training, Rollout)

    The image contains screenshots from the Implementation Checklist.

    Download the ITSM Tool Implementation Checklist

    1.1.3 Review goals that drove the ITSM tool purchase

    Identify the triggers for the selection and implementation of your new ITSM tool.

    Whether this is your first ITSM tool or a replacement for your old tool, the project was likely triggered by pain points that must be addressed by the new tool to improve your service desk. Having a clear understanding of these pain points throughout the implementation of your new tool will help to prevent them from reoccurring.

    Common ITSM pain points include:

    1. Poor communication with end users on ticket status.
    2. Lack of SLA automation to escalate issues to the appropriate channels.
    3. Poor self-service options for end users to perform simple requests on their own.
    4. Undeveloped knowledgebase for users to find answers to common issues.
    5. Lack of reporting or mistrust in reporting data.
    6. Lack of automation, including ticket templates.
    7. Overcomplicated ticket categories resulting in categories being misused.
    8. Overconfiguration prevents future upgrades.
    9. Lack of integration with other tools.

    If you haven't already selected an ITSM tool, leverage the IT Service Management Selection Guide to select the right tool.

    Download the IT Service Management Selection Guide

    1.1.4 Plan to interview staff to support organizational change management

    Identify challenges with the existing tool and processes as well as potential objections to the new tool.

    Incorporate this feedback in the implementation to drive buy-in and a successful rollout.

    Implementing a new ITSM tool will force changes in how IT staff do their work:

    • At a minimum, it means learning a new interface.
    • It could also mean leveraging features that improve IT operations but could change the process or tasks for the staff.
    • Their input on the current tool and process challenges can be critical for the project.
    • Solving at least some of their challenges can help bring them onboard to use this tool properly and follow associated process changes.

    Info-Tech Insight

    Keep management in the loop through every stage of the implementation process. They are the ones who are paying for the software, so they need to be informed throughout implementation and feel that their needs and feedback are being heard to prevent pushback further into the implementation.

    1.1.5 Identify the modules and features you will plan to implement

    Consider these factors when deciding what modules and features you want to implement:

    • Specific ITSM modules based on the recommended order and any unique business requirements
    • Key features that drove the tool purchase and address key issues
    • High-level process changes needed to address challenges and realize expected benefits from the new ITSM tool (e.g. if a key goal was automated ticket routing based on categories, then the project needs to include developing a good categorization scheme)

    Recommended order for implementation:

    1. Incident Management and Service Request
    2. This is the core of service management and typically has the highest impact on the organization. Include knowledgebase development as part of this implementation.

    3. Change Management
    4. A foundational component of service management, it allows organizations to minimize disruptions to IT services when making changes to services and critical systems.

    5. Asset Management
    6. A foundational component of service management, it allows organizations to track their assets’ locations, how they are used, and when changes are made to them.

    1.1.6 Determine if data migration is required

    If you are switching from a previous ITSM tool, carefully weigh the pros and cons as well as the necessity of migrating historical transactional data before deciding to import it into the new tool.

    Importing your old transactional data will allow you to track metrics over time, which can be valuable for data analysis and reporting purposes.

    However, ask yourself what the true value of your data is before you import it.

    You will not get value out of migrating the old data if:

    • You have incomplete or inaccurate data (a high percentage of incidents did not have tickets created in the old system).
    • The categorization of your old tickets was not useful or was used inconsistently.
    • You plan on changing the ticket categorization in the new system.

    “Don’t debate whether you can import your old data until you’ve made sure that you should.”

    – Barry Cousins, Practice Lead at Info-Tech Research Group

    Info-Tech Insight

    If you decide to migrate your data, keep in mind that it can be a complex process and proper time should be budgeted for planning, structuring the data, and importing and testing it.

    Step 1.2

    Define roles and responsibilities

    Activities

    1.2.1

    Key internal roles and responsibilities

    1.2.2

    Key external roles and responsibilities

    This step involves the following participants:

    • CIO
    • IT Director/Manager
    • Service Manager
    • Project Manager and the project team

    Outcomes of this step

    • Decision on whether to hire professional services for the implementation
    • Clearly defined roles and responsibilities for the project

    1.2.1 Identify key internal roles and responsibilities

    Review the tasks outlined in the Implementation Checklist to help you identify appropriate roles and specific staff that will be needed to execute this project.

    Project Role

    Description

    RACI

    Assigned To

    Executive Sponsor

    Liaison with the executive team (the CIO would be a good candidate for this role).

    Accountable for project completion.

    Approves resource allocation and funding.

    A, C

    Name(s)

    Project Manager

    Manages the project schedule, tasks, and budget.

    May act as a liaison between executives and the project-level team.

    R

    Name(s)

    Product Owner

    Liaison with the vendor.

    SME for the new tool.

    Provides input to tool configuration decisions.

    Manages the tool post-implementation.

    R

    Name(s)

    Process Owners

    Define current processes.

    Provide input to identifying current-state process challenges to address and potential changes as part of the new tool implementation.

    R

    Name(s)

    Service Desk Manager

    Provides input to tool configuration decisions.

    Manages and trains service desk agents to use new tool and processes.

    R

    Name(s)

    ITSM Tool Core Users (e.g. Service Desk Technicians)

    Provide input to identifying current-state process challenges to address.

    Provide input to tool configuration decisions.

    C

    Name(s)

    RACI = Responsible, Accountable, Consulted, and Informed

    Assign individuals to roles through each step of the implementation project in the governance and management chart in the Project Charter Template.

    Download the Project Charter Template

    1.2.2 Key external roles and responsibilities

    Determine whether you will engage professional services for the implementation.

    There are three main ways to implement your ITSM tool

    Implemented in-house by own staff

    Implemented using a combination of your own staff and your ITSM tool vendor

    Implemented by professional services and your ITSM tool vendor

    DIY Implementation

    Adopting a DIY implementation approach can save money but could draw out your implementation timeline and increase the likelihood of errors. Carefully consider your integration environment to determine your resourcing capabilities and maturity.

    Vendor Implementation

    In most cases, your vendor will support or execute the technical implementation based on your requirements. Use this blueprint to help you define those requirements.

    Professional Services

    Opting for professional services may result in a shorter implementation period and fewer errors but may also deny your IT staff the opportunity to develop the skills necessary to maintain and configure the solution in the future.

    Clarify the role of the professional services vendor before acquiring their services to make sure your expectations are aligned. For example, are you hiring the vendor for tool installation, tool configuration, or tool customization or for training your end users?

    Step 1.3

    Identify preliminary timeline

    Activities

    1.3.1

    Identify preliminary internal target dates

    1.3.2

    Identify target dates for vendor involvement

    This step involves the following participants:

    • CIO
    • IT Director/Manager
    • Service Manager
    • Project Manager and the project team

    Outcomes of this step

    • Specifying the target dates for the implementation project

    1.3.1 Identify preliminary internal target dates

    Identify high-level start and end dates based on the following:

    • Existing process maturity
    • Process changes required (to address process issues or to realize targeted benefits from the new tool)
    • Data migration requirements (if any)
    • Information to prepare for the implementation (review the Checklist Tool)
    • Vendor availability to support implementation
    • Executive mandates that have established specific milestone dates

    Create an initial project schedule:

    • Review the remaining phases of this blueprint for more details on the implementation planning steps.
    • Review and update the Checklist Tool to suit your implementation goals and requirements.
    • Assign task owners and target dates in the Checklist Tool.

    Note: This is a preliminary schedule. Monitor progress as well as requirement changes, and adjust the scope or schedule as needed.

    Update the columns in the Checklist Tool to plan and keep track of your implementation project.

    1.3.2 Identify target dates for vendor involvement

    Plan when you'll be ready for the vendor and identify the key points for when the vendor will come in.

    Are dates already scheduled for tool installation/configuration/customization?

    If yes:

    • Clarify vendor expectations for those target dates (i.e. what do you have to have prepared in advance?).
    • Determine options to adjust dates if needed.

    If no:

    • Defer scheduling until you have reviewed and updated the Implementation Checklist. The checklist will help you determine your readiness for vendor involvement.

    Consider if the vendor will implement the ITSM tool in one go or if they will help setup the tool in stages. Keep in mind that ITSM implementation projects typically take anywhere from 9 weeks to 16 months and plan accordingly depending on the maturity of your processes and the modules and features you plan to implement.

    Use your internal target dates to estimate when you'll be ready for the vendor to set up the tool and implement the setting that you've defined.

    Phase 2

    Prepare to Implement Incident Management and Service Request Modules

    Phase 1Phase 2Phase 3

    Identify Stakeholders, Scope, and Preliminary Timeline

    Prepare to Implement Incident Management and Service Request Modules

    Create a Deployment Plan (Communication, Training, Rollout)

    This phase will walk you through the following steps:

    • Review your existing solution and challenges
    • Plan ticket management and workflow implementation
    • Plan data migration, knowledgebase setup, and integrations
    • Plan the module rollout

    Additional Info-Tech Research

    The Implementation Checklist Tool summarizes what you need to prepare for the implementation. If you need more assistance with developing the underlying ITSM processes, use the tools, templates, and guidance in these blueprints.

    Standardize the Service Desk

    Build core elements of service desk operations, including incident management and service request workflows, ticket categorization schemes, and ticket prioritization rules.

    Optimize the Service Desk With a Shift-Left Strategy

    Implement tools such as an improved knowledgebase and self-service portal to enable lower tier support staff and end users to resolve incidents or fulfill service requests.

    Incident and Problem Management

    Develop a critical incident management workflow and create standard operating procedures for problem management.

    Step 2.1

    Review your existing solution and challenges

    Activities

    2.1.1

    Configure, don’t customize, your solution to minimize risk

    2.1.2

    Review your existing process and solution challenges for opportunities for improvement

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    2.1.1 Configure your tool, don’t customize it

    Your tool may require at least some basic configurations to align with your processes, but in most cases customization of the tool is not recommended.

    Configuration

    Customization

    • Creating settings and recording reference data in the tool within the normal functionality of the tool.
    • Does not require changes to source code.

    Documentation of configurations is key.

    Failure to document configurations and the reasons for specific configurations will lead to:

    • Difficulty diagnosing incidents and problems.
    • Difficulty reconstructing the tool in the case of disaster recovery.
    • One administrator having all of the knowledge of configurations and taking it with them if they leave the organization.
    • Configurations that become useless in the future are maintained and lead to unnecessary work if documentation is not regularly reviewed.
    • Extending the functionality of the tool beyond what it was originally intended to do.
    • Requires manual changes to source code.

    Carefully consider whether a customization is necessary.

    • Over-customization of your ITSM tool code may lock you into your current version of the software by preventing future patches and upgrades, leaving you with outdated software.
    • Over-customization becomes particularly risky when your ITSM solution is integrated with other tools, as a loss in functionality of your ITSM tool resulting from over-customization may cause disruptions across the business.
    • If your selected ITSM solution doesn’t do something you think you need it to do, carefully evaluate whether you really need that customization and if the trade-off of potentially limiting future innovation is worth it.

    Case Study

    Consider the consequences of over-customizing your solution.

    INDUSTRY: Education

    SOURCE: IT Director

    Situation

    Challenge

    Resolution

    A few years ago, the service management office at the university decided to switch ITSM tools, from Computer Associates to ServiceNow.

    They wanted the new tool to behave similarly to what they had previously, so they made a lot of customized code changes to ServiceNow during implementation.

    As a result of the customizations, much of the functionality of the tool was restricted, and the upgrades were not compatible with the solution.

    The external consultants who performed the customizations and backend work did not document their changes, leaving the service management team without an understanding of why they did what they did.

    The service management team is working with ServiceNow to slowly unravel the custom code to try to get the solution back to having out-of-the-box functionality, with the ability to be upgraded.

    It has been challenging to do this work without disrupting the functionality of the tool.

    Over-customization led to the organization paying for features they couldn’t use and spending more time and resources down the road to try to reverse the changes.

    2.1.2 Review your existing process to identify opportunities for improvement

    Documenting your existing processes is an effective method for also reviewing those processes and identifying inefficiencies. Take advantage of this project to fix your process issues.

    1. Document your existing workflows for incident management and service requests.
    2. Review your workflows to identify opportunities to optimize through process refinement (e.g. clarifying escalation guidelines) or by leveraging features in your new ITSM tool (e.g. improved workflow automation).
    3. Similarly, review the challenges identified through stakeholder interviews: is there an opportunity address those challenges through process changes or leveraging your new ITSM tool?
    4. Address those challenge and issues as you execute the tasks outlined in the Implementation Checklist Tool. For example, if inconsistent ticket routing was identified as a challenge due to a vague categorization scheme, that’s a driver to review and update your scheme rather than just carry forward your existing scheme.

    Regardless of your existing ITSM maturity, this is an opportunity to review and optimize existing processes. Even the most-mature organizations can typically find an area to improve.

    Case Study

    Reviewing and defining processes before the implementation can be a project in itself.

    INDUSTRY: Defense

    SOURCE: Anonymous

    Situation

    Challenge

    Resolution

    The organization was switching to a new ITSM tool. To prepare for the implementation, they gathered stakeholders, held steering committee meetings, and broke down key processes, teams, and owners before even meeting with the larger group.

    They used a software tool called InDesign to visibly map service requests and incidents and determine who owned each process and where the handoffs were.

    The service catalog also needed to be built out as they were performing certain services that didn’t relate to anything in the catalog.

    The goal for the implementation was to have it completed within a year, but it ended up going over, taking 15 to 16 months to complete.

    Most of the time was spent identifying processes upfront before configuring the tool. There were difficulties defining processes as well as agreeing on who owned a process or service.

    There were also difficulties agreeing upon who the valid stakeholders were for processes, as groups were siloed.

    The major obstacles to implementation were therefore people and process, not the product.

    New processes were introduced, and boundaries were placed around processes that were being done in the past that weren’t necessary.

    Once the groups were able to agree upon process owners, the tool configuration and implementation itself did not pose any major difficulties.

    After the implementation, the tool was continually improved and sharpened to adapt to processes.

    Step 2.2

    Plan ticket management and workflow implementation

    Activities

    2.2.1

    Define ticket classification values

    2.2.2

    Define ticket templates for common incident types and service requests

    2.2.3

    Plan your ticket intake channels

    2.2.4

    Design a self-service portal

    2.2.5

    Plan your knowledgebase implementation in the new tool

    2.2.6

    Design your ticket status notification processes and templates

    2.2.7

    Identify required user accounts, access levels, and skills/ service groups

    2.2.8

    Review and update your workflows and escalation rules

    2.2.9

    Identify desired reporting and relevant metrics to track

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    Outcomes of this step

    Tool is designed and configured to support service desk processes and organization needs.

    Checklist overview

    The ITSM Tool Implementation Checklist will help you estimate resources required to support demand, based on your ticket volume.

    TAB 2

    TAB 3

    TAB 4

    Incident and Service Modules Checklist

    Change Management Modules

    Asset Management Modules

    The image contains a screenshot of the ITSM Tool Implementation Checklist, tab 2. The image contains a screenshot of the ITSM Tool Implementation Checklist, tab 3. The image contains a screenshot of the ITSM Tool Implementation Checklist, tab 4.

    How to follow this section:

    The following slides contain a table that explains why each task in the module matters and what needs to be considered. Complete the checklist modules referring to this section.

    2.2.1 Define ticket classification values

    Ticket classification improves reporting, workflow automation, and problem identification.

    Review your existing ticket classification values to identify what to carry forward, drop, or change. For example, if your categorization scheme has become too complex, this is your opportunity to fix it; don’t perpetuate ineffective classification in the new tool.

    Task

    Why this matters

    Ticket Types (e.g. incident, service request, change)

    In particular, separating incidents from service requests supports appropriate ticket prioritization and resourcing; for example, an incident typically should be prioritized, and service requests can be scheduled.

    Categories (e.g. network, servers)

    An effective categorization scheme can help identify ticket assignment and escalation (e.g. network tickets would be escalated to the network team), and potentially automate ticket routing.

    Resolution Codes

    Indicates how the ticket was resolved (e.g. configuration change). Supports another layer of trends reporting and data to support problem identification.

    Status Values

    Shows what status the ticket is currently in (e.g. if the ticket has been opened or assigned to an agent, if it is in progress or has been resolved).

    2.2.2 Define ticket templates for common incident types and service requests

    Ticket templates are the backbone of automation. A common complaint is that tickets take too much time. However, a little planning can reduce the time it takes to create a ticket to less than a minute.

    Task

    Why this matters

    Identify common recurring tickets that would be good candidates for using ticket templates (e.g. common service requests and incidents).

    Some common recurring tickets such as password reset, new laptop, and login requests would be great candidates to create ticket templates for. Building a deck of standard rules to follow for common tickets saves time and reduces the number of tickets generated.

    Design ticket templates and workflows for common tickets (e.g. fields to auto-populate as well as routing and secondary tickets for onboarding requests).

    Differentiating between recurring ticket types and building pre-defined templates not just saves time but can also have major impact on how service is delivered as this will also help separate tickets. Creating these templates beforehand will also let you communicate effectively with the users at a time when all hands need to be on deck.

    2.2.3 Plan your ticket intake channels

    Consider possible ticket intake channels and evaluate their relevance to your organization.

    Task

    Why this matters

    Decide on ticket intake channels (e.g. phone, email, portal, walk-ups).

    Each standard intake channel serves its own purposes and can be extremely valuable under different circumstances. For example, walk-ins may be inefficient but necessary for critical incidents.

    If using email, identify/create the email account and appropriate permissions.

    Email works well if it automatically creates a ticket in your ticketing system, but users often don’t provide enough information in unstructured emails. Use required fields and ticket templates to ensure the ticket is properly categorized.

    If using phone, identify/create the phone number and appropriate integrations.

    Maintain the phone for users from other locations and for critical incidents but encourage users who call in to submit a ticket through the portal.

    If using a portal, determine if you will leverage the tool's portal or an existing portal.

    The web portal is the most efficient intake method, but ensure it is user friendly before promoting it.

    If using chat, determine whether you will use the tool's chat or an existing chat mechanism and whether integrations are needed.

    Another way to improve support experience for your customers is through live chat. This gives your customers an easy way to reach you at the exact moment they have questions or issues they can't fix.

    2.2.4 Design a self-service portal

    Map your processes to the tool by defining your ticket input, categories, escalations, and workflows.

    Don’t forget about the client-facing side of the solution. It is important to build a self-serve portal that has an easy-to-use interface where the user can easily find the category for the help they’re looking for. It is also necessary to educate the users on where to find the portal or how to access it.

    Task

    Why this matters

    Identify components to include (e.g. service request, incident, knowledgebase).

    Identify the categories you want the users to be able to access in the portal. Finding the right balance of components to include is very important to make it easy for your users to find all the relevant information they are looking for. This could mean fewer tickets.

    Plan the input form for service requests and incidents (e.g. mandatory fields, optional fields, drop-down lists).

    Having relevant and specific fields helps to narrow down your user’s issues and provides more information on how to allocate these tasks among the service desk resources and reduce time to further investigate the issues.

    If service catalog will be attached to the ITSM tool, define routing and workflows; if there is no existing service catalog, start a separate project to define it (e.g. services, SLAs).

    A centrally defined guide enables a uniform quality in service and clarifies the responsible tier for the ticket. Identify services that will be included in the catalog, and if the information is attached to the ITSM tool, plan for how will the routing and workflows be structured.

    Plan design requirements (e.g. company branding).

    Ensure that the portal is aligned with the company’s theme and access format. Work with the vendor to customize the branding on the tool, design requirements, images.

    2.2.5 Plan your knowledgebase (KB) implementation in the new tool

    Evaluate how onerous KB migration will be for you. Is this an opportunity to improve how the KB is organized?

    Task

    Why this matters

    Define knowledgebase categories and structure.

    Establishing knowledgebase structures or having them separated into categories makes it easy for your clients to find them (e.g. do they align with ticket categories?).

    Identify existing knowledgebase articles to add to the new tool.

    Review existing knowledgebase articles at a high level (e.g. Do you carry forward all existing articles? Take an opportunity to retire old articles?).

    Define knowledgebase article templates.

    Having standardized templates makes it an easy read and will increase its usage (e.g. all knowledgebase articles for recurring incidents will follow the same template).

    Build knowledgebase article creation, usage, and revision workflows.

    Decide how new knowledgebase articles will be built and added to the tool, how it will be accessed and used, and also any steps necessary to update the articles.

    Plan a knowledgebase feedback system.

    For example, include a comments section, like buttons, and who will get notified about feedback.

    2.2.6 Design your ticket status notification processes and templates

    Task

    Why this matters

    Identify triggers for status notifications. Balance the need for keeping users informed versus notifications being treated as spam.

    Identify when and where the users are informed to make sure you are not under or over communicating with them. Status notifications and alerts are a great way to set or reset expectations to your users on the delivery or resolution on their tickets. For example, auto-response for a new ticket, or status updates to users when the ticket is assigned, solved, and closed.

    If using email notifications, design email templates for each type of notification.

    Creating notification templates is a great way to provide standardized service to your clients and it saves time when a ticket is raised. For example, email templates for new ticket, ticket updated, or ticket closed.

    Plan how you will enable users to validate the ticket or resolve request without causing the ticket to reopen.

    For example, in the ticket solved template, provide a link to close the ticket, and ask the user to reply only if they wish to re-open the ticket (i.e. if it's not resolved). May require consulting with the ITSM tool vendor.

    Decide if customer satisfaction surveys will be sent to end users after their ticket has been closed.

    Discuss if this data would be useful to you if captured to improve/modify your service.

    If customer satisfaction surveys will be used, design the survey.

    Discuss what data would be useful to you if captured and create survey questionnaires to capture that data from your clients. For example, how many questions, types of questions, whether sent for every ticket or randomly.

    2.2.7 Identify required user accounts, access levels, and skills/service groups

    Task

    Why this matters

    Define Tier 1, 2, and 3 roles and their associated access levels.

    Having pre-established roles for different tiers and teams is a great way to boost accountability and also helps identify training requirements for each tier. For example, knowledgebase training for tier 1 & 2, reporting/analytics for IT manager.

    Identify skill groups or support teams.

    Establishing accountability for all the support practices in the service desk is important for the tickets to be effectively distributed among the functional individuals and teams. Identifying the responsibilities of groups help execute shift-left strategy.

    Identify required email permissions for each role.

    For example, define which roles get permissions to include status updates or other ticket information in their emails or to support automated notifications and other integrations with email.

    Determine how you will import users into the new tool.

    Identify the best way to migrate your users to the new tool whether it be by importing from Active Directory or the old ITSM tool, etc.

    2.2.8 Review and update your workflows and escalation rules

    Task

    Why this matters

    Document your future-state incident and service request workflows that will incorporate the above planning as well as improvements supported by the new tool.

    Document your workflows and review it to make sure it’s accurate and also to help you with communicating process expectations to all the stakeholders.

    Review the future-state workflows.

    This helps you validate that the planned changes meet your goals and identify any additional required changes.

    Update ticket classification values, templates, and ticket intake as needed based on the future-state workflows.

    Documenting your process might uncover additional requirements for classification, templates, etc. Ensure that the classification templates and related parameters align with the workflows.

    Identify opportunities to further automate workflows by leveraging the new tool.

    The process of reviewing the workflows often helps identify manual processes, labor intensive processes, very repetitive processes, etc. These can be opportunities to further automate your processes.

    2.2.9 Identify desired reporting and relevant metrics to track

    Documentation of key metrics of service desk performance and end-user satisfaction that you wish to improve through the new solution is key to evaluate the success of your implementation.

    Task

    Why this matters

    Define the metrics you will track in the new ITSM tool.

    It is critical to ensure that your tool will be able to track necessary metrics on KPIs from the start and that this data is accurate and reliable so that reporting will be relevant and meaningful to the business. Whether you use your own tool for tracking metrics or an external tool, ensure that you can get the internal data you need from the ITSM tool. This may include measures of Productivity (e.g. time to respond, time to resolve), Service (e.g. incident backlog, customer satisfaction), and Proactiveness (e.g. number of knowledgebase articles per week).

    Determine what reports you want to generate from data collected through the tool.

    It’s not enough to simply set up metrics, you have to actually use the information. Reports should be analyzed regularly and used to manage costs and productivity, improve services, and identify issues. Ensure that your service desk team contributes to the usefulness of reporting by following processes such as creating tickets for every incident and request, categorizing it properly, and closing it after it’s resolved with the proper resolution code.

    Identify the information and metrics to include in the ITSM tool's dashboards.

    A dashboard helps drive accountability across the team through greater visibility. Decide what will be reported on the dashboard. For example, average time to resolution, number of open tickets with subtotals for each priority, problem ticket aging.

    Step 2.3

    Plan data migration and integrations

    Activities

    2.3.1

    Create a data migration and archiving plan

    2.3.2

    Identify and plan required integrations

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    Outcomes of this step

    • Decisions made around data migration, integrations, automation, and reporting.
    • ITSM Tool Implementation Checklist

    2.3.1 Create a data migration and archiving plan

    Task

    Why this matters

    Document your future-state incident and service request workflows that will incorporate the above planning as well as improvements supported by the new tool.

    Document your workflows and review them to make sure they’re accurate and also to help you with communicating process expectations to all the stakeholders.

    Review the future-state workflows.

    This helps you validate that the planned changes meet your goals and identify any additional required changes.

    Update ticket classification values, templates, and ticket intake as needed based on the future-state workflows.

    Documenting your process might uncover additional requirements for classification, templates, etc. Ensure that the classification templates and related parameters align with the workflows.

    Identify opportunities to further automate workflows leveraging the new tool.

    The process of reviewing the workflows often helps identify manual processes, labor-intensive processes, very repetitive processes, etc. These can be opportunities to further automate your processes.

    2.3.2 Identify and plan required integrations

    Consider and plan for any necessary integrations with other systems.

    A major component of the implementation that should be carefully considered throughout is if and how to integrate your ITSM tool with other applications in the environment.

    Task

    Why this matters

    Identify the systems you need to integrate with your ITSM tool (e.g. asset discovery tools, reporting systems).

    Regardless of whether your solution will be configured and installed on-premises or as a SaaS, you need to consider the underlying technology to determine how you will integrate it with other tools where necessary.

    Businesses may need to integrate their ITSM tool with other systems including asset management, network monitoring, and reporting systems to make the organization more efficient.

    Determine how data will flow between systems.

    Carefully evaluate the purpose of each integration. Clients often want their ITSM tool to be integrated with all of the available data in another application when they only need a subset of that data to be integrated.

    Consider not only which systems you need to integrate with your ITSM tool but also who the owners of those systems are and which way the data needs to flow.

    Plan the development, configuration, and testing of integrations.

    As with other aspects of the implementation, configure and test the integrations before going live with the tool.

    Step 2.4

    Plan the module rollout

    Activities

    2.4.1

    Repeat the methodology for additional ITSM modules, using the Checklists as a guide

    2.4.2

    Leverage these blueprints to help you implement change and asset management modules

    This step involves the following participants:

    1. Service Manager and Service Desk Team
    2. Project Manager and Core Project Team
    3. Subject Matter Experts and Tool Administrator, if applicable

    Outcomes of this step

    Identify and plan for additional modules and features to be implemented

    2.4.1 Repeat the methodology for additional ITSM modules, using the Checklists as a guide

    The preparation completed in Phase 1 and 2 to this point provide a foundation for additional ITSM modules.

    This blueprint starts with the incident management and service request modules as those are typically implemented first since they are the most impactful to day-to-day IT service management.

    In addition, the methodology outlined in Phase 1 and 2 to this point provides a model to follow for additional ITSM modules:

    • If you did not already account for additional modules in Phase 1, then repeat the steps in Phase 1 to define scope, stakeholders, and timeline.
    • The Implementation Checklist Tool provides tabs for Change Management and Asset Management to outline the specific details for those topic areas, but they follow the same high-level steps as Phase 2 (e.g. review existing processes, design relevant workflows).
    • If you are planning to implement other modules (e.g. Problem Management), create additional tabs in the Implementation Checklist Tool as needed, using the existing tabs as a base.
    The image contains screenshots of the ITSM checklists.

    2.4.2 Leverage these blueprints to help you implement change and asset management modules

    The Implementation Checklist Tool summarizes what you need to prepare for the implementation. If you need more assistance with developing the underlying ITSM processes, use the tools, templates, and guidance in the blueprints below.

    Optimize IT Change Management

    Define change management workflows, key roles, and supporting elements such as request-for-change forms based on best practices.

    Implement Hardware Asset Management

    Create an SOP and associated process workflows to streamline and standardize hardware asset management.

    Implement Software Asset Management

    Build on a strong hardware asset management program to also properly track and manage software assets. This includes managing software licensing, finding opportunities to reduce costs, and improving your software audit readiness.

    Phase 3

    Create a Deployment Plan (Communication, Training, Rollout)

    Phase 1Phase 2Phase 3

    Identify Stakeholders, Scope, and Preliminary Timeline

    Prepare to Implement Incident Management and Service Request Modules

    Create a Deployment Plan (Communication, Training, Rollout)

    This phase will walk you through the following steps:

    1. Create a communication plan (for IT, users, and business leaders)
    2. Create a training plan
    3. Plan how you will deploy, monitor, and maintain the solution

    ITSM Tool Training Schedule

    ITSM Tool Deployment Plan Template

    Use the template to document and plan the communications and training needs prior to deployment of the new tool.

    The image contains a screenshot of the ITSM Tool Training Schedule.

    Use the deployment plan template to document the strategy and decisions made for making the transition to the new ITSM tool.

    The image contains a screenshot of the ITSM Tool Deployment Plan Template.

    Download the ITSM Tool Training Schedule

    Download the ITSM Tool Deployment Plan Template

    Step 3.1

    Create a communication plan (for IT, users, and business leaders)

    Activities

    3.1.1

    Ensure there is strong communication from management throughout the implementation and deployment

    3.1.2

    Base your communications timeline on a classic change curve to accommodate natural resistance

    3.1.3

    Communicate new processes with business leaders and end users to improve positive customer feedback

    This step involves the following participants:

    1. CIO/IT Director
    2. IT Manager
    3. Service Manager

    Outcomes of this step

    Plan for communicating the change with business executives, service desk agents, and end users.

    3.1.1 Ensure there is strong communication from management throughout the implementation and deployment

    A common contributing factor for unsuccessful implementation is a lack of communication around training, transitioning, and deploying the new tool.

    Common Pitfall:

    Organizational communication and change management should have been ongoing and tightly monitored throughout the project. However, cut-over is a time in which critical communication regarding deployment and proper user training can be derailed when last-minute preparations take priority. Not only will general user frustration increase, but unintended process workarounds will emerge, eroding system effectiveness.

    Mitigating Actions:

    Deliver training for end users that will be engaged in testing. For all other users, deliver training prior to go-live to avoid the risk of training too early (where materials may not be ready or users are likely to forget what was learned). If possible, host quick refresher training a week or two prior to go-live.

    Aim to communicate the upcoming go-live. The purpose of communication here is to reiterate expectations, complexities, and ramifications on business going forward. Alleviate performance anxiety by clearly stating that temporary drops in productivity are to be expected and that there will be appropriate assistance throughout the transition period.

    Transition: Have the project/program manager remain on the project team for some time after deployment to oversee and assure smooth transition for the organization.

    Complete training: Have a clear plan for training those users that were missed in the first round of training as well as a plan for ongoing training for those that require refresher training, for new joiners to your organization, and for any training requirements that result from subsequent upgrades.

    3.1.2 Base your communications timeline on a classic change curve

    It’s important to communicate the change ahead of the implementation, but also to reinforce that communication after implementation to recover from any resistance that occurs through the implementation itself.

    Stages in a typical change curve:

    1. Change is announced. Some people are skeptical and resistant, but others are enthusiastic. Most people are fence sitters; if they trust senior leadership, they will give the benefit of the doubt and expect change to be good.
    2. Positive sentiment declines as implementation approaches. Training and other disruptions take people’s time and energy away from their work. Project setbacks and delays take credibility away from project leaders and seem to validate the efforts of saboteurs and skeptics.
    3. Overall sentiment begins to improve as people adjust and see real progress made. Ideally, early successes or quick wins neutralize saboteurs and convert skeptics. At the very least, people will begin to accept and adapt to new realities.
    4. If the project is successful and communication is reinforced after implementation, sentiment will peak and level out over time as people move on to other projects.

    The image contains a diagram of a change curve.

    1. Honeymoon of “Uninformed Optimism”: Tentative support and enthusiasm for change before people have really felt or understood what it involves.
    2. Backlash of “Informed Pessimism” (leading to “Valley of Despair”): People realize they’ve overestimated the benefits (or how soon they’ll be achieved) and underestimated the difficulty of change.
    3. Valley of Despair and beginning of “Hopeful Realism”: Sentiment bottoms out and people begin to accept the difficulty (or inevitability) of change.
    4. Bounce of “Informed Optimism”: More optimism and support when people begin to see bright spots and early successes.
    5. Contentment of “Completion”: Change has been successfully adopted and benefits are being realized.

    3.1.3 Communicate new processes

    1. Communicate with business unit leaders and users:
    • Focus on the benefits for end users to encourage buy-in for the change.
    • Include preliminary instructions with a date for training sessions.
  • Train users:
    • Teach users how to contact the service desk and submit a ticket.
    • Set expectations for IT’s response.
    • Record all your training sessions so it can used for recursive training.
  • Enforce:
    • IT must point users toward the new process, but ad hoc requests should still be expected at first. Deal with these politely but encourage all employees to use the new service desk ticketing process, if applicable.
  • Measure success:
    • Continue to adjust communications if processes aren’t being followed to ensure SLAs can be met and improved.

    “Communicate with your end users in phase 1 to let them know what will be changing, get feedback and buy-in, and inform them that training will be happening, then ensure you train them once the tool is installed. A lot of times we’ll get our tool set up but people don’t know how to use it."

    – Director of ITSM Tools

    Info-Tech Insight

    If there is a new process for ticket input, consider using a reward system for users who submit a ticket through the proper channel ;(e.g. email or self-serve portal) instead of their old method (e.g. phone). However, if a significant cultural change is required, don’t expect it to happen right away.

    Step 3.2

    Create a training plan

    Activities

    3.2.1

    Target training session(s) to the specific needs of your service desk, service groups, IT managers

    3.3.1

    Provide training (tool/portal and process changes)

    3.4.1

    Choose an appropriate training delivery method that will focus on both process and tool

    This step involves the following participants:

    • IT Director
    • Project Manager
    • Service Desk Manager

    Outcomes of this step

    • Training modules for different users of the tool.
    • Assignment of training modules to users and schedule for completion.

    3.2.1 Target training session(s) to the specific needs of your service desk and IT staff

    Create targeted role-based training programs for your service desk analysts; they care about the portion of the solution they are responsible for, not the functionality that is irrelevant to their job.

    Create and execute a role-based training program by conducting training sessions for targeted groups of users, training them on the functions they require to perform their jobs.

    Use a table like this one to help identify which roles should be trained on which tasks within the ITSM tool.

    The image contains a table as an example of identifying which roles should be trained within the ITSM tool.

    The need for targeted training:

    • IT personnel may challenge the need for training. They may feel they don’t require training on the use of tools or that they don’t have time to dedicate to training when there is so much work to be done.
    • Providing targeted training focused on only the functions of the solution that each tier is responsible for can help to overcome that resistance.
    • Targeted training may include basic training for level 1 technicians and more advanced in-depth training for administrators, power users, or level 2/3 technicians.

    Info-Tech Insight:

    Properly trained users promote adoption and improve results. Always keep training materials updated and available. New employees, new software integration, and internal promotions create opportunities for training employees to align the ITSM tool with their roles and responsibilities.

    3.2.2 Provide training

    Training must take place before deployment to ensure that both your service desk agents and end users will use the tool in the way it was intended and improve end-user satisfaction.

    • Implementing a new ITSM tool will likely bring with it at least some degree of organizational and cultural change. It’s important to manage that change through proper training. Your training needs will vary depending on the maturity of the organization and the amount of cultural and process change being implemented.
    • If this is your first ITSM solution with many new changes for staff to take on board, it will be important to dedicate training time not only before deployment but also several months after the initial installation, to allow staff to gain more experience with the new tool and processes and formulate questions they may not think to ask during implementation.
    • A training plan should take into account not only training needs for the implementation project but also any ongoing training requirements that may be required. This may include:
      • Training for new personnel.
      • Training on any changes to the tool.
      • Training on any new processes the tool will support.
    • Better agent training will lead to better performance and improved end-user satisfaction.

    The image contains a screenshot of a graph to demonstrate training hours and first contact resolution.

    The blue graph line charts new-agent training hours against first contact resolution and the orange graph line charts the trendline for the dataset.

    Source: MetricNet, 2012

    3.2.3 Choose an appropriate training delivery method

    Training should include use cases that focus on not only how the tool’s interface works but also how the tool should be used to support process activities.

    1. Training through use cases highlights how the tool will support the user in role-based tasks.
    2. If new processes are being introduced along with the tool, training should cover both in an integrated way.
    3. Team leadership and management commitment ensures that all agents take their training seriously and are prepared for all use cases by the deployment date.

    Trainer-led sessions:

    Self-taught sessions:

    • May take the form of onsite or video training.
    • Vendor may train administrators or managers, who will later train remaining staff.
    • Allows for interaction with the trainer and greater opportunity to ask questions.
    • Difficult for large organizations with many users to be trained.
    • Delivered via computer-based training applications, typically through a web browser.
    • May include voice training sessions combined with exercises and quizzes.
    • More feasible for large, distributed organizations with less flexible schedules.

    Info-Tech Insight:

    Ensure that the training demonstrates not only how the tool should be used, but also the benefits it will provide your staff in terms of improved efficiency and productivity. Users who can clearly see the benefits the tool will provide for their daily work will accept the tool more readily and promote it across the organization.

    Step 3.3

    Plan how you will deploy, monitor, and maintain the solution

    Activities

    3.3.1

    Plan the transition from your old tool to ensure continual functionality

    3.3.2

    Choose a cut-over approach that works for you

    3.3.3

    Deploy the solution and any new processes simultaneously to ease the transition

    3.3.4

    Have a post-deployment support plan in place

    3.3.5

    Monitor success metrics defined in Phase 1

    This step involves the following participants:

    • IT Director
    • Project Manager
    • Service Desk Manager

    Outcomes of this step

    Deployment plan, including a plan for cut-over from the old tool (if applicable), release of the new tool, and post-deployment support and maintenance of the tool.

    3.3.1 Plan the transition from your old tool to ensure continual functionality

    If you will have a transitional period during which the current tool will be used alongside the new tool, develop a clear plan for the transition to ensure continued service for your end users.

    • If there will be an interim period during which only some aspects of the new ITSM tool are functional, you will need to determine how the new system and old systems will work together for that period of time. This may require creating interfaces as well as providing user documentation and/or SOPs on how the business processes will operate during the interim period.
    • Cut-over is the period during which the changeover to the new system occurs. Cut-over activities need to be tightly choreographed for a successful deployment. If improperly planned, chaos may erupt when unforeseen issues are encountered during deployment, the deployment may be jeopardized, and the organization may encounter costly interruptions to its daily operations.
    • Many organizations may leave any open tickets in the old tool until they are closed, which requires that tool run alongside the new tool for a transitional period. In this case, it is necessary to create guidelines around how long the open tickets will remain in the old system and ensure there is clear communication around these processes.

    Be prepared for the transition:

    1. Create a robust cut-over plan that includes when the old tool will be decommissioned, what activities are necessary during the cut-over, and what the contingency plan is in case of unforeseen issues.
    2. Plan for and perform mock cut-overs to establish the timeline and dependencies for all steps that need to be performed to successfully complete the changeover. Do this to avoid any surprises or delays during the true cut-over period.
    3. Establish cut-over logistics: Create a schedule for resources to work in shifts to avoid burn-out during cut-over, which can lead to lapses in judgment and easily avoidable mistakes. Allocate dedicated workspaces for cut-over activities, e.g. “war rooms” for the triage of issues.

    3.3.2 Choose a cut-over approach that works for you

    Approaches and insights from three case studies

    Case Study #1

    Case Study #2

    Case Study #3

    On day one we started recording all new incidents in the new tool, and everything that was open in the old tool remained open for about one month. At that point we transferred over some open incidents but closed old incidents with the view that if anyone really wanted something done that hadn’t been yet, they could re-submit a ticket.

    – Brett Andrews,

    Managing Director at BAPTISM Consultancy

    It made sense for us to start fresh with the new system. We left all of the old tickets in the old system and started the new system with ticket #1. We only had about a dozen open tickets in the old system so we left them there and ran the two tools side by side until those were closed.

    – CIO, Publishing

    It depends on the client and the size of their service desk as well as the complexity of their data and whether they need their old data for reporting. If there are only a dozen open tickets, they can manually move those over easily, and decide whether they want to migrate their historical data for reporting purposes.

    – Scott Walling,

    Co-Founder at Monitor 24-7 Inc.

    3.3.3 Deploy the solution and any new processes simultaneously to ease the transition

    Follow a deployment plan for introducing new processes alongside the new tool to ensure changes to both process and technology are adopted simultaneously.

    If you’re introducing new processes alongside the new tool, it’s important to maintain the link between process and tool. Typically, the processes and tool should be deployed simultaneously unless there is a strong reason not to do so.

    Deployment can be done as a big-bang or phased approach. The decision to employ a phased deployment depends on the number and size of business units the tool will support, as well as the organization’s geography and infrastructure (deployment locations).

    Before deployment, conduct readiness assessments to understand whether:

    The people are ready to accept the new system (have received the proper training and communications and understand how their jobs will change when the switch is flipped).

    The technology is ready (test results are favorable, workarounds and a plan for closure have been identified for any open defects, and the system is performing as expected).

    The data is ready (data for final conversion has been cleansed, and all conversions have been rehearsed).

    The post-deployment support model is ready (infrastructure and technical support is in place, sites are ready, knowledge transfer has been conducted with the support organization, and end users understand procedures for escalation of issues).

    3.3.4 Have a post-deployment support plan in place

    Ensure that strong internal support for the project and tool will continue after deployment.

    The stabilization period after a new software deployment can last between three and nine months, during which there may be continued training needs and fine-tuning of processes. Internal support from project leaders within your organization will be critical to recover from any dip in operational efficiency and deliver the benefits of the tool.

    Consider the following to prepare better for your support plan:

    What are the roles and responsibilities for ongoing tool administration support?

    What level of support will exist to assist service desk staff after deployment?

    How much time will project team resources devote to tackling upcoming issues and assisting with ongoing support?

    Who will be responsible for ongoing training needs and documentation?

    If your organization is spread across multiple locations, what level of support/assistance will be available at each site?

    How will new code releases or system upgrades be managed and communicated?

    Info-Tech Insight:

    Deployment is only the first step in the system lifecycle. Full benefit realization from the tool requires ongoing investment and learning to be sustained. Unless processes and training are updated on an ongoing basis, benefits gained will start to decrease over time. If your service desk efficiency stagnates at the level it was at prior to implementation, the tool has failed to serve its objective.

    Establish ongoing tool maintenance, improvement structures, and processes

    People, processes, and organizations change over time, and your ITSM tool will need to change to meet expectations.

    Develop and execute a plan for the maintenance of the solution and its infrastructure components.

    Include periodic reviews against business needs and operational requirements (e.g. patches, upgrades, and risk and security requirements).

    For maintenance updates, use the change management process and assess how an activity will impact solution design, functionality, and business processes.

    For major changes that result in significant change in current designs, functionality, and/or business processes, follow the development process used for new systems.

    Ensure that maintenance activities are periodically analyzed for abnormal trends indicating underlying quality or performance problems, cost/benefit of major upgrade, or replacement in lieu of maintenance.

    Assign responsibility for ongoing maintenance. Hold regular meetings for the following activities:

    1. Inspect data and reports.
    2. Assess whether you’re meeting SLAs.
    3. Predict any upcoming changes that may impact ticket volume (e.g. a new operating system or security patch).
    4. Create new ticket templates for recurring or upcoming issues.
    5. Create new knowledgebase articles.
    6. Determine whether ticket categories are being used correctly.
    7. Ask team if there are any problems with the tool.

    3.3.5 Monitor success metrics defined in Project Charter

    Revisit your goals for the solution and assess if they are being met by evaluating current metrics. If your goals have not yet been met, re-evaluate how to ensure the tool will deliver value.

    Sample High-Level Goals:

    1. Improved service desk efficiency
    2. Improved end-user satisfaction
    3. Improved self-service options for end users
    4. Improved data and reporting capabilities

    Sample Metric Descriptions

    Baseline Metric

    Goal

    Current Metric

    Increased ticket input through email versus phone

    50% of tickets submitted through phone

    10% of tickets submit through phone

    Reduced ticket volume (through improved self-serve capabilities)

    1,500 tickets per month

    1,200 tickets per month

    Improved first call resolution (through increased efficiency and automation)

    50% FCR

    60% FCR

    Improved ability to meet SLAs (through automated escalations and prioritization)

    5 minutes to log a ticket

    1 minute to log a ticket

    Improved time to produce reports

    3 business days

    1 business day

    Improved end-user satisfaction

    60% satisfied with services

    75% satisfied

    Related Info-Tech Research

    Optimize IT Change Management

    Define change management workflows, key roles, and supporting elements such as request-for-change forms based on best practices.

    Standardize the Service Desk

    Build core elements of service desk operations, including incident management and service request workflows, ticket categorization schemes, and ticket prioritization rules.

    Optimize the Service Desk With a Shift-Left Strategy

    Implement tools such as an improved knowledgebase and self-service portal to enable lower tier support staff and end users to resolve incidents or fulfill service requests.

    Incident and Problem Management

    Develop a critical incident management workflow and create standard operating procedures for problem management.

    IT Service Management Selection Guide

    Identify the best-of-breed solution to make the most of your investment and engage the right stakeholders to define success.

    Analyze Your Service Desk Ticket Data

    Develop a framework to track metrics, clean data, and put your data to use for pre-defined timelines.

    Bibliography

    Adiga, Siddanth. “10 Reasons Why ITSM Implementations Fail.” Could Strategy, 6 May 2015. Web.

    Hastie, Shane, and Stéphane Wojewoda. “Standish Group 2015 Chaos Report.” InfoQ, 4 October 2015. Web.

    “How to Manage Change in the Implementation of an ITSM Software.” C2, 20 April 2015. Web.

    Lockwood, Meghan. “First Look: Annual ServiceNow Insight and Vision Executive Summary [eBook].” Acorio, 31 October 2019. Web.

    Mainville, David. “7 Steps to a Successful ITSM Tool Implementation.” Navvia, 2012. Web.

    Rae, Barclay. “Preparing for ITSM Tool Implementation.” Joe the IT Guy, 24 June 2015. Web.

    Rae, Barclay. “Successful ITSM Tool Implementation.” BrightTALK, 9 May 2013. Webcast.

    Rumburg, Jeffrey. “Metric of the Month: Agent Training Hours.” MetricNet, 2012. Web.

    AI Trends 2023

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    • Parent Category Name: Business Intelligence Strategy
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    As AI technologies are constantly evolving, organizations are looking for AI trends and research developments to understand the future applications of AI in their industries.

    Our Advice

    Critical Insight

    • Understanding trends and the focus of current and future AI research helps to define how AI will drive an organization’s new strategic opportunities.
    • Understanding the potential application of AI and its promise can help plan the future investments in AI-powered technologies and systems.

    Impact and Result

    Understanding AI trends and developments enables an organization’s competitive advantage.

    AI Trends 2023 Research & Tools

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

    1. AI Trends 2023 – An overview of trends that will continue to drive AI innovation.

    • AI Trends Report 2023
    [infographic]

    Further reading

    AI Trends Report 2023

    The eight trends:

    1. Design for AI
    2. Event-Based Insights
    3. Synthetic Data
    4. Edge AI
    5. AI in Science and Engineering
    6. AI Reasoning
    7. Digital Twin
    8. Combinatorial Optimization
    Challenges that slowed the adoption of AI

    To overcome the challenges, enterprises adopted different strategies

    Data Readiness

    • Lack of unified systems and unified data
    • Data quality issues
    • Lack of the right data required for machine learning
    • Improve data management capabilities, including data governance and data initiatives
    • Create data catalogs
    • Document data and information architecture
    • Solve data-related problems including data quality, privacy, and ethics

    ML Operations Capabilities

    • Lack of tools, technologies, and methodologies to operationalize models created by data scientists
    • Increase availability of cloud platforms, tools, and capabilities
    • Develop and grow machine learning operations (MLOps) tools, platforms, and methodologies to enable model operationalizing and monitoring in production

    Understanding of AI Role and Its Business Value

    • Lack of understanding of AI use cases – how AI/ML can be applied to solve specific business problems
    • Lack of understanding how to define the business value of AI investments
    • Identify AI C-suite toolkits (for example, Empowering AI Leadership from the World Economic Forum, 2022)
    • Document industry use cases
    • Use frameworks and tools to define business value for AI investments

    Design for AI

    Sustainable AI system design needs to consider several aspects: the business application of the system, data, software and hardware, governance, privacy, and security.

    It is important to define from the beginning how AI will be used by and for the application to clearly articulate business value, manage expectations, and set goals for the implementation.

    Design for AI will change how we store and manage data and how we approach the use of data for development and operation of AI systems.

    An AI system design approach should cover all stages of AI lifecycle, from design to maintenance. It should also support and enable iterative development of an AI system.

    To take advantage of different tools and technologies for AI system development, deployment, and monitoring, the design of an AI system should consider software and hardware needs and design for seamless and efficient integrations of all components of the system and with other existing systems within the enterprise.

    AI in Science and Engineering

    AI helps sequence genomes to identify variants in a person’s DNA that indicate genetic disorders. It allows researchers to model and calculate complicated physics processes, to forecast the genesis of the universe’s structure, and to understand planet ecosystem to help advance the climate research. AI drives advances in drug discovery and can assist with molecule synthesis and molecular property identification.

    AI finds application in all areas of science and engineering. The role of AI in science will grow and allow scientists to innovate faster.

    AI will further contribute to scientific understanding by assisting scientists in deriving new insights, generating new ideas and connections, generalizing scientific concepts, and transferring them between areas of scientific research.

    Using synthetic data and combining physical and machine learning models and other advances of AI/ML – such as graphs, use of unstructured data (language models), and computer vision – will accelerate the use of AI in science and engineering.

    Event- and Scenario-Driven AI

    AI-driven signal-gathering systems analyze a continuous stream of data to generate insights and predictions that enable strategic decision modeling and scenario planning by providing understanding of how and what areas of business might be impacted by certain events.

    AI enables the scenario-based approach to drive insights through pattern identification in addition to familiar pattern recognition, helping to understand how events are related.

    A system with anticipatory capabilities requires an event-driven architecture that enables gathering and analyzing different types of data (text, video, images) across multiple channels (social media, transactional systems, news feeds, etc.) for event-driven and event-sequencing modeling.

    ML simulation-based training of the model using advanced techniques under the umbrella of Reinforcement Learning in conjunction with statistically robust Bayesian probabilistic framework will aid in setting up future trends in AI.

    AI Reasoning

    Most of the applications of machine learning and AI today is about predicting future behaviors based on historical data and past behaviors. We can predict what product the customer would most likely buy or the price of a house when it goes on sale.

    Most of the current algorithms use the correlation between different parameters to make a prediction, for example, the correlation between the event and the outcome can look like “When X occurs, we can predict that Y will occur.” This, however, does not translate into “Y occurred because of X.”

    The development of a causal AI that uses causal inference to reason and identify the root cause and the causal relationships between variables without mistaking correlation and causation is still in its early stages but rapidly evolving.

    Some of the algorithms that the researchers are working with are casual graph models and algorithms that are at the intersection of causal inference with decision making and reinforcement learning (Causal Artificial Intelligence Lab, 2022).

    Synthetic Data

    Synthetic data is artificially generated data that mimics the structure of real-life data. It should also have the same mathematical and statistical properties as the real-world data that it is created to replicate.

    Synthetic data is used to train machine learning models when there is not enough real data or the existing data does not meet specific needs. It allows users to remove contextual bias from data sets containing personal data, prevent privacy concerns, and ensure compliance with privacy laws and regulations.

    Another application of synthetic data is solving data-sharing challenges.

    Researchers learned that quite often synthetic data sets outperform real-world data. Recently, a team of researchers at MIT built a synthetic data set of 150,000 video clips capturing human actions and used that data set to train the model. The researchers found that “the synthetically trained models performed even better than models trained on real data for videos that have fewer background objects” (MIT News Office, 2022).

    Today, synthetic data is used in language systems, in training self-driving cars, in improving fraud detection, and in clinical research, just to name a few examples.

    Synthetic data opens the doors for innovation across all industries and applications of AI by enabling access to data for any scenario and technology and business needs.

    Digital Twins

    Digital twins (DT) are virtual replicas of physical objects, devices, people, places, processes, and systems. In Manufacturing, almost every product and manufacturing process can have a complete digital replica of itself thanks to IoT, streaming data, and cheap cloud storage.

    All this data has allowed for complex simulations of, for example, how a piece of equipment will perform over time to predict future failures before they happen, reducing costly maintenance and extending equipment lifetime.

    In addition to predictive maintenance, DT and AI technologies have enabled organizations to design and digitally test complex equipment such as aircraft engines, trains, offshore oil platforms, and wind turbines before physically manufacturing them. This helps to improve product and process quality, manufacturing efficiency, and costs. DT technology also finds applications in architecture, construction, energy, infrastructure industries, and even retail.

    Digital twins combined with the metaverse provide a collaborative and interactive environment with immersive experience and real-time physics capabilities (as an example, Siemens presented an Immersive Digital Twin of a Plant at the Collision 2022 conference).

    Future trends include enabling autonomous behavior of a DT. An advanced DT can replicate itself as it moves into several devices, hence requiring the autonomous property. Such autonomous behavior of the DT will in turn influence the growth and further advancement of AI.

    Edge AI

    A simple definition for edge AI: A combination of edge computing and artificial intelligence, it enables the deployment of AI applications in devices of the physical world, in the field, where the data is located, such as IoT devices, devices on the manufacturing floor, healthcare devices, or a self-driving car.

    Edge AI integrates AI into edge computing devices for quicker and improved data processing and smart automation.

    The main benefits of edge AI include:

    • Real-time data processing capabilities to reduce latency and enable near real-time analytics and insights.
    • Reduced cost and bandwidth requirements as there is no need to transfer data to the cloud for computing.
    • Increased data security as the data is processed locally, on the device, reducing the risk of loss of sensitive data.
    • Improved automation by training machines to perform automated tasks.

    Edge AI is already used in a variety of applications and use cases including computer vision, geospatial intelligence, object detection, drones, and health monitoring devices.

    Combinatorial Optimization

    “Combinatorial optimization is a subfield of mathematical optimization that consists of finding an optimal object from a finite set of objects” (Wikipedia, retrieved December 2022).

    Applications of combinatorial optimization include:

    • Supply chain optimization
    • Scheduling and logistics, for example, vehicle routing where the trucks are making stops for pickup and deliveries
    • Operations optimization

    Classical combinatorial optimization (CO) techniques were widely used in operations research and played a major role in earlier developments of AI.

    The introduction of deep learning algorithms in recent years allowed researchers to combine neural network and conventional optimization algorithms; for example, incorporating neural combinatorial optimization algorithms in the conventional optimization framework. Researchers confirmed that certain combinations of these frameworks and algorithms can provide significant performance improvements.

    The research in this space continues and we look forward to learning how machine learning and AI (backtracking algorithms, reinforcement learning, deep learning, graph attention networks, and others) will be used for solving challenging combinatorial and decision-making problems.

    References

    “AI Can Power Scenario Planning for Real-Time Strategic Insights.” The Wall Street Journal, CFO Journal, content by Deloitte, 7 June 2021. Accessed 11 Dec. 2022.
    Ali Fdal, Omar. “Synthetic Data: 4 Use Cases in Modern Enterprises.” DATAVERSITY, 5 May 2022. Accessed
    11 Dec. 2022.
    Andrews, Gerard. “What Is Synthetic Data?” NVIDIA, 8 June 2021. Accessed 11 Dec. 2022.
    Bareinboim, Elias. “Causal Reinforcement Learning.” Causal AI, 2020. Accessed 11 Dec. 2022.
    Bengio, Yoshua, Andrea Lodi, and Antoine Prouvost. “Machine learning for combinatorial optimization: A methodological tour d’horizon.” European Journal of Operational Research, vol. 290, no. 2, 2021, pp. 405-421, https://doi.org/10.1016/j.ejor.2020.07.063. Accessed 11 Dec. 2022.
    Benjamins, Richard. “Four design principles for developing sustainable AI applications.” Telefónica S.A., 10 Sept. 2018. Accessed on 11 Dec. 2022.
    Blades, Robin. “AI Generates Hypotheses Human Scientists Have Not Thought Of.” Scientific American, 28 October 2021. Accessed 11 Dec. 2022.
    “Combinatorial Optimization.” Wikipedia article, Accessed 11 Dec. 2022.
    Cronholm, Stefan, and Hannes Göbel. “Design Principles for Human-Centred Artificial Intelligence.” University of Borås, Sweden, 11 Aug. 2022. Accessed on 11 Dec. 2022
    Devaux, Elise. “Types of synthetic data and 4 real-life examples.” Statice, 29 May 2022. Accessed 11 Dec. 2022.
    Emmental, Russell. “A Guide to Causal AI.” ITBriefcase, 30 March 2022. Accessed 11 Dec. 2022.
    “Empowering AI Leadership: AI C-Suite Toolkit.” World Economic Forum, 12 Jan. 2022. Accessed 11 Dec 2022.
    Falk, Dan. “How Artificial Intelligence Is Changing Science.” Quanta Magazine, 11 March 2019. Accessed 11 Dec. 2022.
    Fritschle, Matthew J. “The Principles of Designing AI for Humans.” Aumcore, 17 Aug. 2018. Accessed 8 Dec. 2022.
    Garmendia, Andoni I., et al. Neural Combinatorial Optimization: a New Player in the Field.” IEEE, arXiv:2205.01356v1, 3 May 2022. Accessed 11 Dec. 2022.
    Gülen, Kerem. “AI Is Revolutionizing Every Field and Science is no Exception.” Dataconomy Media GmbH, 9 Nov. 9, 2022. Accessed 11 Dec. 2022
    Krenn, Mario, et al. “On scientific understanding with artificial intelligence.” Nature Reviews Physics, vol. 4, 11 Oct. 2022, pp. 761–769. https://doi.org/10.1038/s42254-022-00518-3. Accessed 11 Dec. 2022.
    Laboratory for Information and Decision Systems. “The real promise of synthetic data.” MIT News, 16 Oct. 2020. Accessed 11 Dec. 2022.
    Lecca, Paola. “Machine Learning for Causal Inference in Biological Networks: Perspectives of This Challenge.” Frontiers, 22 Sept. 2021. Accessed 11 Dec. 2022. Mirabella, Lucia. “Digital Twin x Metaverse: real and virtual made easy.” Siemens presentation at Collision 2022 conference, Toronto, Ontario. Accessed 11 Dec. 2022. Mitchum, Rob, and Louise Lerner. “How AI could change science.” University of Chicago News, 1 Oct. 2019. Accessed 11 Dec. 2022.
    Okeke, Franklin. “The benefits of edge AI.” TechRepublic, 22 Sept. 2022, Accessed 11 Dec. 2022.
    Perlmutter, Nathan. “Machine Learning and Combinatorial Optimization Problems.” Crater Labs, 31 July 31, 2019. Accessed 11 Dec. 2022.
    Sampson, Ovetta. “Design Principles for a New AI World.” UX Magazine, 6 Jan. 2022. Accessed 11 Dec. 2022.
    Sgaier, Sema K., Vincent Huang, and Grace Charles. “The Case for Causal AI.” Stanford Social Innovation Review, Summer 2020. Accessed 11 Dec. 2022.
    “Synthetic Data.” Wikipedia article, Accessed 11 Dec. 2022.
    Take, Marius, et al. “Software Design Patterns for AI-Systems.” EMISA Workshop 2021, CEUR-WS.org, Proceedings 30. Accessed 11 Dec. 2022.
    Toews, Rob. “Synthetic Data Is About To Transform Artificial Intelligence.” Forbes, 12 June 2022. Accessed
    11 Dec. 2022.
    Zewe, Adam. “In machine learning, synthetic data can offer real performance improvements.” MIT News Office, 3 Nov. 2022. Accessed 11 Dec. 2022.
    Zhang, Junzhe, and Elias Bareinboim. “Can Humans Be out of the Loop?” Technical Report, Department of Computer Science, Columbia University, NY, June 2022. Accessed 11 Dec. 2022.

    Contributors

    Irina Sedenko Anu Ganesh Amir Feizpour David Glazer Delina Ivanova

    Irina Sedenko

    Advisory Director

    Info-Tech

    Anu Ganesh

    Technical Counselor

    Info-Tech

    Amir Feizpour

    Co-Founder & CEO

    Aggregate Intellect Inc.

    David Glazer

    VP of Analytics

    Kroll

    Delina Ivanova

    Associate Director, Data & Analytics

    HelloFresh

    Usman Lakhani

    DevOps

    WeCloudData

    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
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    • 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.

    Implement Hardware Asset Management

    • Buy Link or Shortcode: {j2store}312|cart{/j2store}
    • member rating overall impact (scale of 10): 9.4/10 Overall Impact
    • member rating average dollars saved: $29,447 Average $ Saved
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    • Parent Category Name: Asset Management
    • Parent Category Link: /asset-management
    • Executives are often aware of the benefits asset management offers, but many organizations lack a defined program to manage their hardware.
    • Efforts to implement hardware asset management (HAM) are stalled because organizations feel overwhelmed navigating the process or under use the data, failing to deliver value.

    Our Advice

    Critical Insight

    • Organizations often implement an asset management program as a one-off project and let it stagnate.
    • Organizations often fail to dedicate adequate resources to the HAM process, leading to unfinished processes and inconsistent standards.
    • Hardware asset management programs yield a large amount of useful data. Unfortunately, this data is often underutilized. Departments within IT become data siloes, preventing effective use of the data.

    Impact and Result

    • As the IT environment continues to change, it is important to establish consistency in the standards around IT asset management.
    • A current state assessment of your HAM program will shed light on the steps needed to safeguard your processes.
    • Define the assets that will need to be managed to inform the scope of the ITAM program before defining processes.
    • Build and involve an ITAM team in the process from the beginning to help embed the change.
    • Define standard policies, processes, and procedures for each stage of the hardware asset lifecycle, from procurement through to disposal.

    Implement Hardware Asset Management Research & Tools

    Start here – read the Executive Brief

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

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

    1. Lay foundations

    Build the foundations for the program to succeed.

    • Implement Hardware Asset Management – Phase 1: Lay Foundations
    • HAM Standard Operating Procedures
    • HAM Maturity Assessment Tool
    • IT Asset Manager
    • IT Asset Administrator

    2. Procure & receive

    Define processes for requesting, procuring, receiving, and deploying hardware.

    • Implement Hardware Asset Management – Phase 2: Procure and Receive
    • HAM Process Workflows (Visio)
    • HAM Process Workflows (PDF)
    • Non-Standard Hardware Request Form
    • Purchasing Policy

    3. Maintain & dispose

    Define processes and policies for managing, securing, and maintaining assets then disposing or redeploying them.

    • Implement Hardware Asset Management – Phase 3: Maintain and Dispose
    • Asset Security Policy
    • Hardware Asset Disposition Policy

    4. Plan implementation

    Plan the hardware budget, then build a communication plan and roadmap to implement the project.

    • Implement Hardware Asset Management – Phase 4: Plan Implementation 
    • HAM Budgeting Tool
    • HAM Communication Plan
    • HAM Implementation Roadmap
    [infographic]

    Workshop: Implement Hardware Asset Management

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

    1 Lay Foundations

    The Purpose

    Build the foundations for the program to succeed.

    Key Benefits Achieved

    Evaluation of current challenges and maturity level

    Defined scope for HAM program

    Defined roles and responsibilities

    Identified metrics and reporting requirements

    Activities

    1.1 Outline hardware asset management challenges.

    1.2 Conduct HAM maturity assessment.

    1.3 Classify hardware assets to define scope of the program.

    1.4 Define responsibilities.

    1.5 Use a RACI chart to determine roles.

    1.6 Identify HAM metrics and reporting requirements.

    Outputs

    HAM Maturity Assessment

    Classified hardware assets

    Job description templates

    RACI Chart

    2 Procure & Receive

    The Purpose

    Define processes for requesting, procuring, receiving, and deploying hardware.

    Key Benefits Achieved

    Defined standard and non-standard requests for hardware

    Documented procurement, receiving, and deployment processes

    Standardized asset tagging method

    Activities

    2.1 Identify IT asset procurement challenges.

    2.2 Define standard hardware requests.

    2.3 Document standard hardware request procedure.

    2.4 Build a non-standard hardware request form.

    2.5 Make lease vs. buy decisions for hardware assets.

    2.6 Document procurement workflow.

    2.7 Select appropriate asset tagging method.

    2.8 Design workflow for receiving and inventorying equipment.

    2.9 Document the deployment workflow(s).

    Outputs

    Non-standard hardware request form

    Procurement workflow

    Receiving and tagging workflow

    Deployment workflow

    3 Maintain & Dispose

    The Purpose

    Define processes and policies for managing, securing, and maintaining assets then disposing or redeploying them.

    Key Benefits Achieved

    Policies and processes for hardware maintenance and asset security

    Documented workflows for hardware disposal and recovery/redeployment

    Activities

    3.1 Build a MAC policy, request form, and workflow.

    3.2 Design process and policies for hardware maintenance, warranty, and support documentation handling.

    3.3 Revise or create an asset security policy.

    3.4 Identify challenges with IT asset recovery and disposal and design hardware asset recovery and disposal workflows.

    Outputs

    User move workflow

    Asset security policy

    Asset disposition policy, recovery and disposal workflows

    4 Plan Implementation

    The Purpose

    Select tools, plan the hardware budget, then build a communication plan and roadmap to implement the project.

    Key Benefits Achieved

    Shortlist of ITAM tools

    Hardware asset budget plan

    Communication plan and HAM implementation roadmap

    Activities

    4.1 Generate a shortlist of ITAM tools that will meet requirements.

    4.2 Use Info-Tech’s HAM Budgeting Tool to plan your hardware asset budget.

    4.3 Build HAM policies.

    4.4 Develop a communication plan.

    4.5 Develop a HAM implementation roadmap.

    Outputs

    HAM budget

    Additional HAM policies

    HAM communication plan

    HAM roadmap tool

    Further reading

    Implement Hardware Asset Management

    Build IT services value on the foundation of a proactive asset management program.

    ANALYST PERSPECTIVE

    IT asset data impacts the entire organization. It’s time to harness that potential.

    "Asset management is like exercise: everyone is aware of the benefits, but many struggle to get started because the process seems daunting. Others fail to recognize the integrative potential that asset management offers once an effective program has been implemented.

    A proper hardware asset management (HAM) program will allow your organization to cut spending, eliminate wasteful hardware, and improve your organizational security. More data will lead to better business decision-making across the organization.

    As your program matures and your data gathering and utility improves, other areas of your organization will experience similar improvements. The true value of asset management comes from improved IT services built upon the foundation of a proactive asset management program." - Sandi Conrad, Practice Lead, Infrastructure & Operations Info-Tech Research Group

    Our understanding of the problem

    This Research Is Designed For:

    • Asset Managers and Service Delivery Managers tasked with developing an asset management program who need a quick start.
    • CIOs and CFOs who want to reduce or improve budgeting of hardware lifecycle costs.
    • Information Security Officers who need to mitigate the risk of sensitive data loss due to insecure assets.

    This Research Will Help You:

    • Develop a hardware asset management (HAM) standard operating procedure (SOP) that documents:
      • Process roles and responsibilities.
      • Data classification scheme.
      • Procurement standards, processes, and workflows for hardware assets.
      • Hardware deployment policies, processes, and workflows.
      • Processes and workflows for hardware asset security and disposal.
    • Identify requirements for an IT asset management (ITAM) solution to help generate a shortlist.
    • Develop a hardware asset management implementation roadmap.
    • Draft a communication plan for the initiative.

    Executive summary

    Situation

    • Executives are aware of the numerous benefits asset management offers, but many organizations lack a defined ITAM program and especially a HAM program.
    • Efforts to implement HAM are stalled because organizations cannot establish and maintain defined processes and policies.

    Complication

    • Organizations often implement an asset management program as a one- off project and let it stagnate, but asset management needs to be a dynamic, continually involving process to succeed.
    • Organizations often fail to dedicate adequate resources to the HAM process, leading to unfinished processes and inconsistent standards.
    • Hardware asset management programs yield a large amount of useful data. Unfortunately, this data is often underused. Departments within IT become data siloes, preventing effective use of the data.

    Resolution

    • As the IT environment continues to change, it is important to establish consistency in the standards around IT asset management.
    • A current state assessment of your HAM program will shed light on the steps needed to safeguard your processes.
    • Define the assets that will need to be managed to inform the scope of the ITAM program before defining processes.
    • Build and involve an ITAM team in the process from the beginning to help embed the change.
    • Define standard policies, processes, and procedures for each stage of the hardware asset lifecycle, from procurement through to disposal.
    • Pace yourself; a staged implementation will make your ITAM program a success.

    Info-Tech Insight

    1. HAM is more than just tracking inventory. A mature asset management program provides data for proactive planning and decision making to reduce operating costs and mitigate risk.
    2. ITAM is not just IT. IT leaders need to collaborate with Finance, Procurement, Security, and other business units to make informed decisions and create value across the enterprise.
    3. Treat HAM like a process, not a project. HAM is a dynamic process that must react and adapt to the needs of the business.

    Implement HAM to reduce and manage costs, gain efficiencies, and ensure regulatory compliance

    Save & Manage Money

    • Companies with effective HAM practices achieve cost savings through redeployment, reduction of lost or stolen equipment, power management, and on-time lease returns.
    • The right HAM system will enable more accurate planning and budgeting by business units.

    Improve Contract Management

    • Real-time asset tracking to vendor terms and conditions allows for more effective negotiation.

    Inform Technology Refresh

    • HAM provides accurate information on hardware capacity and compatibility to inform upgrade and capacity planning

    Gain Service Efficiencies

    • Integrating the hardware lifecycle with the service desk will enable efficiencies through Install/Moves/Adds/Changes (IMAC) processes, for larger organizations.

    Meet Regulatory Requirements

    • You can’t secure organizational assets if you don’t know where they are! Meet governance and privacy laws by knowing asset location and that data is secure.

    Prevent Risk

    • Ensure data is properly destroyed through disposal processes, track lost and stolen hardware, and monitor hardware to quickly identify and isolate vulnerabilities.

    HAM is more than just inventory; 92% of organizations say that it helps them provide better customer support

    Hardware asset management (HAM) provides a framework for managing equipment throughout its entire lifecycle. HAM is more than just keeping an inventory; it focuses on knowing where the product is, what costs are associated with it, and how to ensure auditable disposition according to best options and local environmental laws.

    Implementing a HAM practice enables integration of data and enhancement of many other IT services such as financial reporting, service management, green IT, and data and asset security.

    Cost savings and efficiency gains will vary based on the organization’s starting state and what measures are implemented, but most organizations who implement HAM benefit from it. As organizations increase in size, they will find the greatest gains operationally by becoming more efficient at handling assets and identifying costs associated with them.

    A 2015 survey by HDI of 342 technical support professionals found that 92% say that HAM has helped their teams provide better support to customers on hardware-related issues. Seventy-seven percent have improved customer satisfaction through managing hardware assets. (HDI, 2015)

    HAM delivers cost savings beyond only the procurementstage

    HAM cost savings aren’t necessarily realized through the procurement process or reduced purchase price of assets, but rather through the cost of managing the assets.

    HAM delivers cost savings in several ways:

    • Use a discovery tool to identify assets that may be retired, redeployed, or reused to cut or reallocate their costs.
    • Enforce power management policies to reduce energy consumption as well as costs associated with wasted energy.
    • Enforce policies to lock down unauthorized devices and ensure that confidential information isn’t lost (and you don’t have to waste money recovering lost data).
    • Know the location of all your assets and which are connected to the network to ensure patches are up to date and avoid costly security risks and unplanned downtime.
    • Scan assets to identify and remediate vulnerabilities that can cause expensive security attacks.
    • Improve vendor and contract management to identify areas of hardware savings.

    The ROI for HAM is significant and measurable

    Benefit Calculation Sample Annual Savings

    Reduced help desk support

    • The length of support calls should be reduced by making it easier for technicians to identify PC configuration.
    # of hardware-related support tickets per year * cost per ticket * % reduction in average call length 2,000 * $40 * 20% = $16,000

    Greater inventory efficiency

    • An ITAM solution can automate and accelerate inventory preparation and tasks.
    Hours required to complete inventory * staff required * hourly pay rate for staff * number of times a year inventory required 8 hours * 5 staff * $33 per hour * 2 times a year = $2,640

    Improved employee productivity

    • Organizations can monitor and detect unapproved programs that result in lost productivity.
    # of employees * percentage of employees who encounter productivity loss through unauthorized software * number of hours per year spent using unauthorized software * average hourly pay rate 500 employees * 10% * 156 hours * $18 = $140,400

    Improved security

    • Improved asset tracking and stronger policy enforcement will reduce lost and stolen devices and data.
    # of devices lost or stolen last year * average replacement value of device + # of devices stolen * value of data lost from device (50 * $1,000) + (50 * $5,000) = $300,000
    Total Savings: $459,040
    1. Weigh the return against the annual cost of investing in an ITAM solution to calculate the ROI.
    2. Don’t forget about the intangible benefits that are more difficult to quantify but still significant, such as increased visibility into hardware, more accurate IT planning and budgeting, improved service delivery, and streamlined operations.

    Avoid these common barriers to ITAM success

    Organizations that struggle to implement ITAM successfully usually fall victim to these barriers:

    Organizational resistance to change

    Senior-level sponsorship, engagement, and communication is necessary to achieve the desired outcomes of ITAM; without it, ITAM implementations stall and fail or lack the necessary resources to deliver the value.

    Lack of dedicated resources

    ITAM often becomes an added responsibility for resources who already have other full-time responsibilities, which can quickly cause the program to lose focus. Increase the chance of success through dedicated resources.

    Focus on tool over process

    Many organizations buy a tool thinking it will do most of the work for them, but without supporting processes to define ITAM, the data within the tool can become unreliable.

    Choosing a tool or process that doesn’t scale

    Some organizations are able to track assets through manual discovery, but as their network and user base grows, this quickly becomes impossible. Choose a tool and build processes that will support the organization as it grows.

    Using data only to respond to an audit without understanding root causes

    Often, organizations implement ITAM only to the extent necessary to achieve compliance for audits, but without investigating the underlying causes of non-compliance and thus not solving the real problems.

    To help you make quick progress, Info-Tech Research Group parses hardware asset management into essential processes

    Focus on hardware asset lifecycle management essentials:

    IT Asset Procurement:

    • Define procurement standards for new hardware along with related warranties and support options.
    • Develop processes and workflows for purchasing and work out financial implications to inform budgeting later.

    IT Asset Intake and Deployment:

    • Define policies, processes, and workflows for hardware and receiving, inventory, and tracking practices.
    • Develop processes and workflows for managing imaging, change and moves, and large-scale rollouts.

    IT Asset Security and Maintenance:

    • Develop processes, policies, and workflows for asset tracking and security.
    • Maintain contracts and agreements.

    IT Asset Disposal or Recovery:

    • Manage the employee termination and equipment recovery cycle.
    • Securely wipe and dispose of assets that have reached retirement stage.

    The image is a circular graphic, with Implement HAM written in the middle. Around the centre circle are four phrases: Recover or Dispose; Plan & Procure; Receive & Deploy; Secure & Maintain. Around that circle are six words: Retire; Plan; Request; Procure; Receive; Manage.

    Follow Info-Tech’s methodology to build a plan to implement hardware asset management

    Phase 1: Assess & Plan Phase 2: Procure & Receive Phase 3: Maintain & Dispose Phase 4: Plan Budget & Build Roadmap
    1.1 Assess current state & plan scope 2.1 Request & procure 3.1 Manage & maintain 4.1 Plan budget
    1.2 Build team & define metrics 2.2 Receive & deploy 3.2 Redeploy or dispose 4.2 Communicate & build roadmap
    Deliverables
    Standard Operating Procedure (SOP)
    HAM Maturity Assessment Procurement workflow User move workflow HAM Budgeting Tool
    Classified hardware assets Non-standard hardware request form Asset security policy HAM Communication Plan
    RACI Chart Receiving & tagging workflow Asset disposition policy HAM Roadmap Tool
    Job Descriptions Deployment workflow Asset recovery & disposal workflows Additional HAM policies

    Asset management is a key piece of Info-Tech's COBIT- inspired IT Management and Governance Framework

    The image shows a graphic which is a large grid, showing Info-Tech's research, sorted into categories.

    Cisco IT reduced costs by upwards of $50 million through implementing ITAM

    CASE STUDY

    Industry IT

    Source Cisco Systems, Inc.

    Cisco Systems, Inc.

    Cisco Systems, Inc. is the largest networking company in the world. Headquartered in San Jose, California, the company employees over 70,000 people.

    Asset Management

    As is typical with technology companies, Cisco boasted a proactive work environment that encouraged individualism amongst employees. Unfortunately, this high degree of freedom combined with the rapid mobilization of PCs and other devices created numerous headaches for asset tracking. At its peak, spending on hardware alone exceeded $100 million per year.

    Results

    Through a comprehensive ITAM implementation, the new asset management program at Cisco has been a resounding success. While employees did have to adjust to new rules, the process as a whole has been streamlined and user-satisfaction levels have risen. Centralized purchasing and a smaller number of hardware platforms have allowed Cisco to cut its hardware spend in half, according to Mark Edmondson, manager of IT services expenses for Cisco Finance.

    This case study continues in phase 1

    The image shows four bars, from bottom to top: 1. Asset Gathering; 2. Asset Distribution; 3. Asset Protection; 4. Asset Data. On the right, there is an arrow pointing upwards labelled ITAM Program Maturity.

    Info-Tech delivers: Use our tools and templates to accelerate your project to completion

    HAM Standard Operating Procedures (SOP)

    HAM Maturity Assessment

    Non-Standard Hardware Request Form

    HAM Visio Process Workflows

    HAM Policy Templates

    HAM Budgeting Tool

    HAM Communication Plan

    HAM Implementation Roadmap Tool

    Measured value for Guided Implementations (GIs)

    Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings.

    GI Measured Value
    Phase 1: Lay Foundations
    • Time, value, and resources saved by using Info-Tech’s tools and templates to assess current state and maturity, plan scope of HAM program, and define roles and metrics.
    • For example, 2 FTEs * 14 days * $80,000/year = $8,615
    Phase 2: Procure & Receive
    • Time, value, and resources saved by using Info-Tech’s tools and templates to build processes for hardware request, procurement, receiving, and deployment.
    • For example, 2 FTEs * 14 days * $80,000/year = $8,615
    Phase 3: Maintain & Dispose
    • Time, value, and resources saved by following Info-Tech’s tools and methodology to build processes and policies for managing and maintaining hardware and disposing or redeploying of equipment.
    • For example, 2 FTE * 14 days * $80,000/year = $8,615
    Phase 4: Plan Implementation
    • Time, value, and resources saved by following Info-Tech’s tools and methodology to select tools, plan the hardware budget, and build a roadmap.
    • For example, 2 FTE * 14 days * $80,000/year = $8,615
    Total savings $25,845

    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 overview

    1. Lay Foundations 2. Procure & Receive 3. Maintain & Dispose 4. Budget & Implementation
    Best-Practice Toolkit

    1.1 Assess current state & plan scope

    1.2 Build team & define metrics

    2.1 Request & procure

    2.2 Receive & deploy

    3.1 Manage & maintain

    3.2 Redeploy or dispose

    4.1 Plan budget

    4.2 Communicate & build roadmap

    Guided Implementation
    • Assess current state.
    • Define scope of HAM program.
    • Define roles and metrics.
    • Define standard and non-standard hardware.
    • Build procurement process.
    • Determine asset tagging method and build equipment receiving and deployment processing.
    • Define processes for managing and maintaining equipment.
    • Define policies for maintaining asset security.
    • Build process for redeploying or disposing of assets.
    • Discuss best practices for effectively managing a hardware budget.
    • Build communications plan and roadmap.
    Results & Outcomes
    • Evaluation of current maturity level of HAM
    • Defined scope for the HAM program including list of hardware to track as assets
    • Defined roles and responsibilities
    • Defined and documented KPIs and metrics to meet HAM reporting requirements
    • Defined standard and non- standard requests and processes
    • Defined and documented procurement workflow and purchasing policy
    • Asset tagging method and process
    • Documented equipment receiving and deployment processes
    • MAC policies and workflows
    • Policies and processes for hardware maintenance and asset security
    • Documented workflows for hardware disposal and recovery/redeployment
    • Shortlist of ITAM tools
    • Hardware asset budget plan
    • Communication plan and HAM implementation roadmap

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.comfor more information.

    Phases: Teams, Scope & Hardware Procurement Hardware Procurement and Receiving Hardware Maintenance & Disposal Budgets, Roadmap & Communications
    Duration* 1 day 1 day 1 day 1 day
    * Activities across phases may overlap to ensure a timely completion of the engagement
    Projected Activities
    • Outline hardware asset management goals
    • Review HAM maturity and anticipated milestones
    • Define scope and classify hardware assets
    • Define roles and responsibilities
    • Define metrics and reporting requirements
    • Define standard and non-standard hardware requests
    • Review and document procurement workflow
    • Discuss appropriate asset tagging method
    • Design and document workflow for receiving and inventorying equipment
    • Review/create policy for hardware procurement and receiving
    • Identify data sources and methodology for inventory and data collection
    • Define install/moves/adds/changes (MAC) policy
    • Build workflows to document user MAC processes and design request form
    • Design process and policies for hardware maintenance, warranty, and support documentation handling
    • Design hardware asset recovery and disposal workflows
    • Define budgeting process and review Info-Tech’s HAM Budgeting Tool
    • Develop a communication plan
    • Develop a HAM implementation plan
    Projected Deliverables
    • Standard operating procedures for hardware
    • Visio diagrams for all workflows
    • Workshop summary with milestones and task list
    • Budget template
    • Policy draft

    Phase 1

    Lay Foundations

    Implement Hardware Asset Management

    A centralized procurement process helped cut Cisco’s hardware spend in half

    CASE STUDY

    Industry IT

    Source Cisco Systems, Inc.

    Challenge

    Cisco Systems’ hardware spend was out of control. Peaking at $100 million per year, the technology giant needed to standardize procurement processes in its highly individualized work environment.

    Users had a variety of demands related to hardware and network availability. As a result, data was spread out amongst multiple databases and was managed by different teams.

    Solution

    The IT team at Cisco set out to solve their hardware-spend problem using a phased project approach.

    The first major step was to identify and use the data available within various departments and databases. The heavily siloed nature of these databases was a major roadblock for the asset management program.

    This information had to be centralized, then consolidated and correlated into a meaningful format.

    Results

    The centralized tracking system allowed a single point of contact (POC) for the entire lifecycle of a PC. This also created a centralized source of information about all the PC assets at the company.

    This reduced the number of PCs that were unaccounted for, reducing the chance that Cisco IT would overspend based on its hardware needs.

    There were still a few limitations to address following the first step in the project, which will be described in more detail further on in this blueprint.

    This case study continues in phase 2

    Step 1.1: Assess current state and plan scope

    Phase 1: Assess & Plan

    1.1 Assess current state & plan scope

    1.2 Build team & define metrics

    This step will walk you through the following activities:

    1.1.1 Complete MGD (optional)

    1.1.2 Outline hardware asset management challenges

    1.1.3 Conduct HAM maturity assessment

    1.1.4 Classify hardware assets to define scope of the program

    This step involves the following participants:

    • CIO/CFO
    • IT Director
    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Security (optional)
    • Operations (optional)

    Step Outcomes

    • Understand key challenges related to hardware asset management within your organization to inform program development.
    • Evaluate current maturity level of hardware asset management components and overall program to determine starting point.
    • Define scope for the ITAM program including list of hardware to track as assets.

    Complete the Management & Governance Diagnostic (MGD) to weigh the effectiveness of ITAM against other services

    1.1.1 Optional Diagnostic

    The MGD helps you get the data you need to confirm the importance of improving the effectiveness of your asset management program.

    The MGD allows you to understand the landscape of all IT processes, including asset management. Evaluate all team members’ perceptions of each process’ importance and effectiveness.

    Use the results to understand the urgency to change asset management and its relevant impact on the organization.

    Establish process owners and hold team members accountable for process improvement initiatives to ensure successful implementation and realize the benefits from more effective processes.

    To book a diagnostic, or get a copy of our questions to inform your own survey, visit Info-Tech’s Benchmarking Tools, contact your account manager, or call toll-free 1-888-670-8889 (US) or 1-844-618-3192 (CAN).

    Sketch out challenges related to hardware asset management to shape the direction of the project

    Common HAM Challenges

    Processes and Policies:

    • Existing asset management practices are labor intensive and time consuming
    • Manual spreadsheets are used, making collaboration and automation difficult
    • Lack of HAM policies and standard operating procedures
    • Asset management data is not centralized
    • Lack of clarity on roles and responsibilities for ITAM functions
    • End users don’t understand the value of asset management

    Tracking:

    • Assets move across multiple locations and are difficult to track
    • Hardware asset data comes from multiple sources, creating fragmented datasets
    • No location data is available for hardware
    • No data on ownership of assets

    Security and Risk:

    • No insight into which assets contain sensitive data
    • There is no information on risks by asset type
    • Rogue systems need to be identified as part of risk management best practices
    • No data exists for assets that contain critical/sensitive data

    Procurement:

    • No centralized procurement department
    • Multiple quotes from vendors are not currently part of the procurement process
    • A lack of formal process can create issues surrounding employee onboarding such as long lead times
    • Not all procurement standards are currently defined
    • Rogue purchases create financial risk

    Receiving:

    • No formal process exists, resulting in no assigned receiving location and no assigned receiving role
    • No automatic asset tracking system exists

    Disposal:

    • No insight into where disposed assets go
    • Formal refresh and disposal system is needed

    Contracts:

    • No central repository exists for contracts
    • No insight into contract lifecycle, hindering negotiation effectiveness and pricing optimization

    Outline hardware asset management challenges

    1.1.1 Brainstorm HAM challenges

    Participants

    • CIO/CFO
    • IT Director
    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Security
    • Operations (optional)

    A. As a group, outline the hardware asset management challenges facing the organization.

    Use the previous slide to help you get started. You can use the following headings as a guide or think of your own:

    • Processes and Policies
    • Tracking
    • Procurement
    • Receiving
    • Security and Risk
    • Disposal
    • Contracts

    B. If you get stuck, use the Hardware Asset Management Maturity Assessment Tool to get a quick view of your challenges and maturity targets and kick-start the conversation.

    To be effective with hardware asset management, understand the drivers and potential impact to the organization

    Drivers of effective HAM Results of effective HAM
    Contracts and vendor licensing programs are complex and challenging to administer without data related to assets and their environment. Improved access to accurate data on contracts, licensing, warranties, installed hardware and software for new contracts, renewals, and audit requests.
    Increased need to meet compliance requires a formal approach to tracking and managing assets, regardless of device type. Encryption, hardware tracking and discovery, software application controls, and change notifications all contribute to better asset controls and data security.
    Cost cutting is on the agenda, and management is looking to reduce overall IT spend in the organization in any possible way. Reduction of hardware spend by as much as 5% of the total budget through data for better forecasting and planning.
    Assets with sensitive data are not properly secured, go missing, or are not safely disposed of when retired. Document and enforce security policies for end users and IT staff to ensure sensitive data is properly secured, preventing costs much larger than the cost of only the device.

    Each level of HAM maturity comes with its own unique challenges

    Maturity People & Policies Processes Technology
    Chaos
    • No dedicated staff
    • No policies published
    • Procedures not documented or standardized
    • Hardware not safely secured or tagged
    • Hardware purchasing decisions not based on data
    • Minimal tracking tools in place
    Reactive
    • Semi-focused HAM manager
    • No policies published
    • Reliance on suppliers to provide reports for hardware purchases
    • Hardware standards are enforced
    • Discovery tools and spreadsheets used to manage hardware
    Controlled
    • Full-time HAM manager
    • End-user policies published
    • HAM manager involved in budgeting and planning sessions
    • Inventory tracking is in place
    • Hardware is secured and tagged
    • Discovery and inventory tools used to manage hardware
    • Compliance reports run as needed
    Proactive
    • Extended HAM team, including Help Desk, HR, Purchasing
    • Corporate hardware use policies in place and enforced
    • HAM process integrated with help desk and HR processes
    • More complex reporting and integrated financial information and contracts with asset data
    • Hardware requests are automated where possible
    • Product usage reports and alerts in place to harvest and reuse licenses
    • Compliance and usage reports used to negotiate software contracts
    Optimized
    • HAM manager trained and certified
    • Working with HR, Legal, Finance, and IT to enforce policies
    • Quarterly meetings with ITAM team to review policies, procedures, upcoming contracts, and rollouts; data is reviewed before any financial decisions made
    • Full transparency into hardware lifecycle
    • Aligned with business objectives
    • Detailed savings reports provided to executive team annually
    • Automated policy enforcement and process workflows

    Conduct a hardware maturity assessment to understand your starting point and challenges

    1.1.3 Complete HAM Maturity Assessment Tool

    Complete the Hardware Asset Management Maturity Assessment Tool to understand your organization’s overall maturity level in HAM, as well as the starting maturity level aligned with each step of the blueprint, in order to identify areas of strength and weakness to plan the project. Use this to track progress on the project.

    An effective asset management project has four essential components, with varying levels of management required

    The hardware present in your organization can be classified into four categories of ascending strategic complexity: commodity, inventory, asset, and configuration.

    Commodity items are devices that are low-cost, low-risk items, where tracking is difficult and of low value.

    Inventory is tracked primarily to identify location and original expense, which may be depreciated by Finance. Typically there will not be data on these devices and they’ll be replaced as they lose functionality.

    Assets will need the full lifecycle managed. They are identified by cost and risk. Often there is data on these devices and they are typically replaced proactively before they become unstable.

    Configuration items will generally be tracked in a configuration management database (CMDB) for the purpose of enabling the support teams to make decisions involving dependencies, configurations, and impact analysis. Some data will be duplicated between systems, but should be synchronized to improve accuracy between systems.

    See Harness Configuration Management Superpowers to learn more about building a CMDB.

    Classify your hardware assets to determine the scope and strategy of the program

    Asset: A unique device or configuration of devices that enables a user to perform productive work tasks and has a defined location and ownership attributes.

    • Hardware asset management involves tracking and managing physical components from procurement through to retirement. It provides the base for software asset management and is an important process that can lead to improved lifecycle management, service request fulfillment, security, and cost savings through harvesting and redeployment.
    • When choosing your strategy, focus on those devices that are high cost and high risk/function such as desktops, laptops, servers, and mobile devices.

    ASSET - Items of high importance and may contain data, such as PCs, mobile devices, and servers.

    INVENTORY - Items that require significant financial investment but no tracking beyond its existence, such as a projector.

    COMMODITY - Items that are often in use but are of relatively low cost, such as keyboards or mice.

    Classify your hardware assets to define the scope of the program

    1.1.4 Define the assets to be tracked within your organization

    Participants

    • Participants
    • CIO/CFO
    • IT Director
    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Security (optional)
    • Operations (optional)

    Document

    Document in the Standard Operating Procedures, Section 1 – Overview & Scope

    1. Determine value/risk threshold at which items should be tracked (e.g. over $1,000 and holding data).
    2. Divide a whiteboard or flip chart into three columns: commodity, asset, and inventory.
    3. Divide participants into groups by functional role to brainstorm devices in use within the organization. Write them down on sticky notes.
    4. Place the sticky notes in the column that best describes the role of the product in your organization.

    Align the scope of the program with business requirements

    CASE STUDY

    Industry Public Administration

    Source Client Case Study

    Situation

    A state government designed a process to track hardware worth more than $1,000. Initially, most assets consisted of end-user computing devices.

    The manual tracking process, which relied on a series of Excel documents, worked well enough to track the lifecycle of desktop and laptop assets.

    However, two changes upended the organization’s program: the cost of end-user computing devices dropped dramatically and the demand for network services led to the proliferation of expensive equipment all over the state.

    Complication

    The existing program was no longer robust enough to meet business requirements. Networking equipment was not only more expensive than end-user computing devices, but also more critical to IT services.

    What was needed was a streamlined process for procuring high-cost, high-utility equipment, tracking their location, and managing their lifecycle costs without compromising services.

    Resolution

    The organization decided to formalize, document, and automate hardware asset management processes to meet the new challenges and focus efforts on high-cost, high-utility end-user computing devices only.

    Step 1.2: Build team and define metrics

    Phase 1: Assess & Plan

    1.1 Assess current state & plan scope

    1.2 Build team and define metrics

    This step will walk you through the following activities:

    1.2.1 Define responsibilities for Asset Manager and Asset Administrator

    1.2.2 Use a RACI chart to determine roles within HAM team

    1.2.3 Further clarify HAM responsibilities for each role

    1.2.4 Identify HAM reporting requirements

    This step involves the following participants:

    • CIO/CFO
    • IT Director
    • IT Managers
    • Asset Manager
    • Asset Coordinators
    • ITAM Team
    • Service Desk
    • End-User Device Support Team

    Step Outcomes:

    • Defined responsibilities for Asset Manager and Asset Administrator
    • Documented RACI chart assigning responsibility and accountability for core HAM processes
    • Documented responsibilities for ITAM/HAM team
    • Defined and documented KPIs and metrics to meet HAM reporting requirements

    Form an asset management team to lead the project

    Asset management is an organizational change. To gain buy-in for the new processes and workflows that will be put in place, a dedicated, passionate team needs to jump-start the project.

    Delegate the following roles to team members and grow your team accordingly.

    Asset Manager

    • Responsible for setting policy and governance of process and data accuracy
    • Support budget process
    • Support asset tracking processes in the field
    • Train employees in asset tracking processes

    Asset Administrator

    • The front-lines of asset management
    • Communicates with and supports asset process implementation teams
    • Updates and contributes information to asset databases
    Service Desk, IT Operations, Applications
    • Responsible for advising asset team of changes to the IT environment, which may impact pricing or ability to locate devices
    • Works with Asset Coordinator/Manager to set standards for lifecycle stages
    • The ITAM team should visit and consult with each component of the business as well as IT.
    • Engage with leaders in each department to determine what their pain points are.
    • The needs of each department are different and their responses will assist the ITAM team when designing goals for asset management.
    • Consultations within each department also communicates the change early, which will help with the transition to the new ITAM program.

    Info-Tech Insight

    Ensure that there is diversity within the ITAM team. Assets for many organizations are diverse and the composition of your team should reflect that. Have multiple departments and experience levels represented to ensure a balanced view of the current situation.

    Define the responsibilities for core ITAM/HAM roles of Asset Manager and Asset Administrator

    1.2.1 Use Info-Tech’s job description templates to define roles

    The role of the IT Asset Manager is to oversee the daily and long-term strategic management of software and technology- related hardware within the organization. This includes:

    • Planning, monitoring, and recording software licenses and/or hardware assets to ensure compliance with vendor contracts.
    • Forming procurement strategies to optimize technology spend across the organization.
    • Developing and implementing procedures for tracking company assets to oversee quality control throughout their lifecycles.

    The role of the IT Asset Administrator is to actively manage hardware and software assets within the organization. This includes:

    • Updating and maintaining accurate asset records.
    • Planning, monitoring, and recording software licenses and/or hardware assets to ensure compliance with vendor contracts.
    • Administrative duties within procurement and inventory management.
    • Maintaining records and databases regarding warranties, service agreements, and lifecycle management.
    • Product standardization and tracking.

    Use Info-Tech’s job description templates to assist in defining the responsibilities for these roles.

    Organize your HAM team based on where they fit within the strategic, tactical, and operational components

    Typically the asset manager will answer to either the CFO or CIO. Occasionally they answer to a vendor manager executive. The hierarchy may vary based on experience and how strategic a role the asset manager will play.

    The image shows a flowchart for organizing the HAM team, structured by three components: Strategic (at the top); Tactical (in the middle); and Operational (at the bottom). The chart shows how the job roles flow together within the hierarchy.

    Determine the roles and responsibilities of the team who will support your HAM program

    1.2.2 Complete a RACI

    A RACI chart will identify who should be responsible, accountable, consulted, and informed for each key activity during the consolidation.

    Participants

    • Project Sponsor
    • IT Director, CIO
    • Project Manager
    • IT Managers and Asset Manager(s)
    • ITAM Team

    Document

    Document in the Standard Operating Procedure.

    Instructions:

    1. Write out the list of all stakeholders along the top of a whiteboard. Write out the key initiative steps for the consolidation project along the left side (use this list as a starting point).
    2. For each initiative, identify each team member’s role. Are they:
      • Responsible? The one responsible for getting the job done.
      • Accountable? Only one person can be accountable for each task.
      • Consulted? Involved through input of knowledge and information.
      • Informed? Receive information about process execution and quality.
    3. As you proceed through the initiative, continue to add tasks and assign responsibility to this RACI chart.

    A sample RACI chart is provided on the next slide

    Start with a RACI chart to determine the responsibilities

    1.2.2 Complete a RACI chart for your organization

    HAM Tasks CIO CFO HAM Manager HAM Administrator Service Desk (T1,T2, T3) IT Operations Security Procurement HR Business Unit Leaders Compliance /Legal Project Manager
    Policies and governance A I R I I C I C C I I
    Strategy A R R R R
    Data entry and quality management C I A I C C I I C C
    Risk management and asset security A R C C R C C
    Process compliance auditing A R I I I I I
    Awareness, education, and training I A I I C
    Printer contracts C A C C C R C C
    Hardware contract management A I R R I I R R I I
    Workflow review and revisions I A C C C C
    Budgeting A R C I C
    Asset acquisition A R C C C C I C C
    Asset receiving (inspection/acceptance) I A R R I
    Asset deployment A R R I I
    Asset recovery/harvesting A R R I I
    Asset disposal C A R R I I
    Asset inventory (input/validate/maintain) I I A/R R R R I I I

    Further clarify HAM responsibilities for each role

    1.2.3 Define roles and responsibilities for the HAM team

    Participants

    • Participants IT Asset Managers and Coordinators
    • ITAM Team
    • IT Managers and IT Director

    Document

    1. Discuss and finalize positions to be established within the ITAM/HAM office as well as additional roles that will be involved in HAM.
    2. Review the sample responsibilities below and revise or create responsibilities for each key position within the HAM team.
    3. Document in the HAM Standard Operating Procedures.
    Role Responsibility
    IT Manager
    • Responsible for writing policies regarding asset management and approving final documents
    • Build and revise budget, tracking actual spend vs. budget, seeking final approvals from the business
    • Process definition, communication, reporting and ensuring people are following process
    • Awareness campaign for new policy and process
    Asset Managers
    • Approval of purchases up to $10,000
    • Inventory and contract management including contract review and recommendations based on business and IT requirements
    • Liaison between business and IT regarding software and hardware
    • Monitor and improve workflows and asset related processes
    • Monitor controls, audit and recommend policies and procedures as needed
    • Validate, manage and analyze data as related to asset management
    • Provide reports as needed for decision making and reporting on risk, process effectiveness and other purposes as required
    • Asset acquisition and disposal
    Service Desk
    Desktop team
    Security
    Infrastructure teams

    Determine criteria for success: establish metrics to quantify and demonstrate the results and value of the HAM function

    HAM metrics fall in the following categories:

    HAM Metrics

    • Quantity e.g. inventory levels and need
    • Cost e.g. value of assets, budget for hardware
    • Compliance e.g. contracts, policies
    • Quality e.g. accuracy of data
    • Duration e.g. time to procure or deploy hardware

    Follow a process for establishing metrics:

    1. Identify and obtain consensus on the organization’s ITAM objectives, prioritized if possible.
    2. For each ITAM objective, select two or three metrics in the applicable categories (not all categories will apply to all objectives); be sure to select metrics that are achievable with reasonable effort.
    3. Establish a baseline measurement for each metric.
    4. Establish a method and accountability for ongoing measurement and analysis/reporting.
    5. Establish accountability for taking action on reported results.
    6. As ITAM expands and matures, change or expand the metrics as appropriate.

    Define KPIs and associated metrics

    • Identify the critical success factors (CSFs) for your hardware asset management program based on strategic goals.
    • For each success factor, identify the key performance indicators (KPIs) to measure success and specific metrics that will be tracked and reported on.
    • Sample metrics are below:
    CSF KPI Metrics
    Improve accuracy of IT budget and forecasting
    • Asset costs and value
    • Average cost of workstation
    • Total asset spending
    • Total value of assets
    • Budget vs. spend
    Identify discrepancies in IT environment
    • Unauthorized or failing assets
    • Number of unauthorized assets
    • Assets identified as cause of service failure
    Avoid over purchasing equipment
    • Number of unused and underused computers
    • Number of unaccounted-for computers
    • Money saved from harvesting equipment instead of purchasing new
    Make more-effective purchasing decisions
    • Predicted replacement time and cost of assets
    • Deprecation rate of assets
    • Average cost of maintaining an asset
    • Number of workstations in repair
    Improve accuracy of data
    • Accuracy of asset data
    • Accuracy rate of inventory data
    • Percentage improvement in accuracy of audit of assets
    Improved service delivery
    • Time to deploy new hardware
    • Mean time to purchase new hardware
    • Mean time to deploy new hardware

    Identify hardware asset reporting requirements and the data you need to collect to meet them

    1.2.4 Identify asset reporting requirements

    Participants

    • CIO/CFO
    • IT Director
    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)

    Document

    Document in the Standard Operating Procedures, Section 13: Reporting

    1. Discuss the goals and objectives of implementing or improving hardware asset management, based on challenges identified in Step 1.2.
    2. From the goals, identify the critical success factors for the HAM program
    3. For each CSF, identify one to three key performance indicators to evaluate achievement of the success factor.
    4. For each KPI, identify one to three metrics that can be tracked and reported on to measure success. Ensure that the metrics are tangible and measurable and will be useful for decision making or to take action.
    5. Determine who needs this information and the frequency of reporting.
    6. If you have existing ITAM data, record the baseline metric.
    CSF KPI Metrics Stakeholder/frequency

    Phase 1 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Lay Foundations

    Proposed Time to Completion: 4 weeks

    Step 1.1: Assess current state and plan scope

    Start with an analyst kick-off call:

    • Review challenges.
    • Assess current HAM maturity level.
    • Define scope of HAM program.

    Then complete these activities…

    • Complete MGD (optional).
    • Outline hardware asset management challenges.
    • Conduct HAM maturity assessment.
    • Classify hardware assets to define scope of the program.

    With these tools & templates:

    HAM Maturity Assessment

    Standard Operating Procedures

    Step 1.2: Build team and define metrics

    Review findings with analyst:

    • Define roles and responsibilities.
    • Assess reporting requirements.
    • Document metrics to track.

    Then complete these activities…

    • Define responsibilities for Asset Manager and Asset Administrator.
    • Use a RACI chart to determine roles within HAM team.
    • Document responsibilities for HAM roles.
    • Identify HAM reporting requirements.

    With these tools & templates:

    RACI Chart

    Asset Manager and Asset Administrator Job Descriptions

    Standard Operating Procedures

    Phase 1 Results & Insights:

    For asset management to succeed, it needs to support the business. Engage business leaders to determine needs and build your HAM program around these goals.

    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:

    1.1.4 Classify hardware assets to define scope of the program

    Determine value/risk threshold at which assets should be tracked, then divide a whiteboard into four quadrants representing four categories of assets. Participants write assets down on sticky notes and place them in the appropriate quadrant to classify assets.

    1.2.2 Build a RACI chart to determine responsibilities

    Identify all roles within the organization that will play a part in hardware asset management, then document all core HAM processes and tasks. For each task, assign each role to be responsible, accountable, consulted, or informed.

    Phase 2

    Procure and Receive

    Implement Hardware Asset Management

    Step 2.1: Request and Procure Hardware

    Phase 2: Procure & Receive

    2.1 Request & Procure

    2.2 Receive & Deploy

    This step will walk you through the following activities:

    2.1.1 Identify IT asset procurement challenges

    2.1.2 Define standard hardware requests

    2.1.3 Document standard hardware request procedure

    2.1.4 Build a non-standard hardware request form

    2.1.5 Make lease vs. buy decisions for hardware assets

    2.1.6 Document procurement workflow

    2.1.7 Build a purchasing policy

    This step involves the following participants:

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • CFO or other management representative from Finance

    Step Outcomes:

    • Definition of standard hardware requests for roles, including core vs. optional assets
    • End-user request process for standard hardware
    • Non-standard hardware request form
    • Lease vs. buy decisions for major hardware assets
    • Defined and documented procurement workflow
    • Documented purchasing policy

    California saved $40 million per year using a green procurement strategy

    CASE STUDY

    Industry Government

    Source Itassetmanagement.net

    Challenge

    Signed July 27, 2004, Executive order S-20-04, the “Green Building Initiative,” placed strict regulations on energy consumption, greenhouse gas emissions, and raw material usage and waste.

    In compliance with S-20-04, the State of California needed to adopt a new procurement strategy. Its IT department was one of the worst offenders given the intensive energy usage by the variety of assets managed under the IT umbrella.

    Solution

    A green IT initiative was enacted, which involved an extensive hardware refresh based on a combination of agent-less discovery data and market data (device age, expiry dates, power consumption, etc.).

    A hardware refresh of almost a quarter-million PCs, 9,500 servers, and 100 email systems was rolled out as a result.

    Other changes, including improved software license compliance and data center consolidation, were also enacted.

    Results

    Because of the scale of this hardware refresh, the small changes meant big savings.

    A reduction in power consumption equated to savings of over $40 million per year in electricity costs. Additionally, annual carbon emissions were trimmed by 200,000 tons.

    Improve your hardware asset procurement process to…

    Asset Procurement

    • Standardization
    • Aligned procurement processes
    • SLAs
    • TCO reduction
    • Use of centralized/ single POC

    Standardize processes: Using standard products throughout the enterprise lowers support costs by reducing the variety of parts that must be stocked for onsite repairs or for provisioning and supporting equipment.

    Align procurement processes: Procurement processes must be aligned with customers’ business requirements, which can have unique needs.

    Define SLAs: Providing accurate and timely performance metrics for all service activities allows infrastructure management based on fact rather than supposition.

    Reduce TCO: Management recognizes service infrastructure activities as actual cost drivers.

    Implement a single POC: A consolidated service desk is used where the contact understands both standards (products, processes, and practices) and the user’s business and technical environment.

    Identify procurement challenges to identify process improvement needs

    2.1.1 Identify IT asset procurement challenges

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    1. As a group, brainstorm existing challenges related to IT hardware requests and procurement.
    2. If you get stuck, consider the common challenges listed below.
    3. Use the results of the discussion to focus on which problems can be resolved and integrated into your organization as operational standards.

    Document hardware standards to speed time to procure and improve communications to users regarding options

    The first step in your procurement workflow will be to determine what is in scope for a standard request, and how non-standard requests will be handled. Questions that should be answered by this procedure include:

    • What constitutes a non-standard request?
    • Who is responsible for evaluating each type of request? Will there be one individual or will each division in IT elect a representative to handle requests specific to their scope of work?
    • What additional security measures need to be taken?
    • Are there exceptions made for specific departments or high-ranking individuals?

    If your end-user device strategy requires an overhaul, schedule time with an Info-Tech analyst to review our blueprint Build an End-User Computing Strategy.

    Once you’ve answered questions like these, you can outline your hardware standards as in the example below:

    Use Case Mobile Standard Mac Standard Mobile Power User
    Asset Lenovo ThinkPad T570 iMac Pro Lenovo ThinkPad P71
    Operating system Windows 10 Pro Mac OSX Windows 10 Pro, 64 bit
    Display 15.6" 21.5" 17.3”

    Memory

    32GB 8GB 64GB
    Processor Intel i7 – 7600U Processor 2.3GHz Xeon E3 v6 Processor
    Drive 500GB 1TB 1TB
    Warranty 3 year 1 year + 2 extended 3 year

    Info-Tech Insight

    Approach hardware standards from a continual improvement frame of mind. Asset management is a dynamic process. Hardware standards will need to adapt over time to match the needs of the business. Plan assessments at routine intervals to ensure your current hardware standards align with business needs.

    Document specifications to meet environmental, security, and manageability requirements

    Determine environmental requirements and constraints.

    Power management

    Compare equipment for power consumption and ability to remotely power down machines when not in use.

    Heat and noise

    Test equipment run to see how hot the device gets, where the heat is expelled, and how much noise is generated. This may be particularly important for users who are working in close quarters.

    Carbon footprint

    Ask what the manufacturer is doing to reduce post-consumer waste and eliminate hazardous materials and chemicals from their products.

    Ensure security requirements can be met.

    • Determine if network/wireless cards meet security requirements and if USB ports can be turned off to prevent removal of data.
    • Understand the level of security needed for mobile devices including encryption, remote shut down or wipe of hard drives, recovery software, or GPS tracking.
    • Decide if fingerprint scanners with password managers would be appropriate to enable tighter security and reduce the forgotten-password support calls.

    Review features available to enhance manageability.

    • Discuss manageability goals with your IT team to see if any can be solved with added features, for example:
      • Remote control for troubleshooting and remote management of data security settings.
      • Asset management software or tags for bar coding, radio frequency identification (RFID), or GPS, which could be used in combination with strong asset management practices to inventory, track, and manage equipment.

    If choosing refurbished equipment, avoid headaches by asking the right questions and choosing the right vendor

    • Is the equipment functional and for how long is it expected to last?
    • How long will the vendor stand behind the product and what support can be expected?
      • This is typically two to five years, but will vary from vendor to vendor.
      • Will they repair or replace machines? Many will just replace the machine.
    • How big is the inventory supply?
      • What kind of inventory does the vendor keep and for how long can you expect the vendor to keep it?
      • How does the vendor source the equipment and do they have large quantities of the same make and model for easier imaging and support?
    • How complete is the refurbishment process?
      • Do they test all components, replace as appropriate, and securely wipe or replace hard drives?
      • Are they authorized to reload MS Windows OEM?
    • Is the product Open Box or used?
      • Open Box is a new product returned back to the vendor. Even if it is not used, the product cannot be resold as a new product. Open Box comes with a manufacturer’s warranty and the latest operating system.
      • If used, how old is the product?

    "If you are looking for a product for two or three years, you can get it for less than half the price of new. I bought refurbished equipment for my call center for years and never had a problem". – Glen Collins, President, Applied Sales Group

    Info-Tech Insight

    Price differences are minimal between large and small vendors when dealing with refurbished machines. The decision to purchase should be based on ability to provide and service equipment.

    Define standard hardware requests, including core and optional assets

    2.1.2 Identify standards for hardware procurement by role

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • Representatives from all other areas of the business

    Document

    Document in the Standard Operating Procedures, Section 7: Procurement.

    1. Divide a whiteboard into columns representing all major areas of the business.
    2. List the approximate number of end users present at each tier and record these totals on the board.
    3. Distribute sticky notes. Use two different sizes: large sizes represent critically important hardware and small sizes represent optional hardware.
    4. Define core hardware assets for each division as well as optional hardware assets.
    5. Focus on the small sticky notes to determine if these optional purchases are necessary.
    6. Finalize the group decision to determine the standard hardware procurement for each role in the organization. Record results in a table similar to the example below:
    Department Core Hardware Assets Optional Hardware Assets
    IT PC, tablet, monitor Second monitor
    Sales PC, monitor Laptop
    HR PC, monitor Laptop
    Marketing PC (iMac) Tablet, laptop

    Document procedures for users to make standard hardware requests

    2.1.3 Document standard hardware request procedure

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • Representatives from all other areas of the business

    Document

    Document in the Standard Operating Procedures, Section 6: End-User Request Process.

    Discuss and document the end-user request process:

    1. In which cases can users request a primary device?
    2. In which cases can users request a secondary (optional device)?
    3. What justification is needed to approve of a secondary device?
      1. E.g. The request for a secondary device should be via email to the IS Projects and Procurements Officer. This email should outline the business case for why multiple devices are required.
    4. Will a service catalog be available and integrated with an ITAM solution for users to make standard requests? If so, can users also configure their options?
    5. Document the process in the standard operating procedure. Example:

    End-User Request Process

    • Hardware and software will be purchased through the user-facing catalog.
    • Peripherals will be ordered as needed.
    • End-user devices will be routed to business managers for approval prior to fulfillment by IT.
    • Requests for secondary devices must be accompanied by a business case.
    • Equipment replacements due to age will be managed through IT replacement processes.

    Improve the process for ordering non-standard hardware by formalizing the request process, including business needs

    2.1.4 Build a non-standard hardware request form

    • Although the goal should be to standardize as much as possible, this isn’t always possible. Ensure users who are requesting non-standard hardware have a streamlined process to follow that satisfies the justifications for increased costs to deliver.
    • Use Info-Tech’s template to build a non-standard hardware request form that may be used by departments/users requesting non-standard hardware in order to collect all necessary information for the request to be evaluated, approved, and sent to procurement.
    • Ensure that the requestor provides detailed information around the equipment requested and the reason standard equipment does not suffice and includes all required approvals.
    • Include instructions for completing and submitting the form as well as expected turnaround time for the approval process.

    Info-Tech Insight

    Include non-standard requests in continual improvement assessment. If a large portion of requests are for non-standard equipment, it’s possible the hardware doesn’t meet the recommended requirements for specialized software in use with many of your business users. Determine if new standards need to be set for all users or just “power users.”

    Identify the information you need to collect to ensure a smooth purchasing process

    Categories Peripherals Desktops/Laptops Servers
    Financial
    • Operational expenses
    • Ordered for inventory with the exceptions of monitors that will be ordered as needed
    • Equipment will be purchased through IT budget
    • Capital expenses
    • Ordered as needed…
    • Inventory kept for…
    • End-user devices will be purchased through departmental budgets
    • Capital expenses
    • Ordered as needed to meet capacity or stability requirements
    • Devices will be purchased through IT budgets
    Request authorization
    • Any user can request
    • Users who are traveling can purchase and expense peripherals as needed, with manager approvals
    • Tier 3 technicians
    Required approvals
    • Manager approvals required for monitors
    • Infrastructure and applications manager up to [$]
    • CIO over [$]
    Warranty requirements
    • None
    • Three years
    • Will be approved with project plan
    Inventory requirements
    • Minimum inventory at each location of 5 of each: mice, keyboards, cables
    • Docking stations will be ordered as needed
    • Laptops (standard): 5
    • Laptops (ultra light): 1
    • Desktops: 5
    • Inventory kept in stock as per DR plan
    Tracking requirements
    • None
    • Added to ITAM database, CMDB
    • Asset tag to be added to all equipment
    • Added to ITAM database, CMDB

    Info-Tech Best Practice

    Take into account the possibility of encountering taxation issues based on where the equipment is being delivered as well as taxes imposed or incurred in the location from which the asset was shipped or sent. This may impact purchasing decisions and shipping instructions.

    Develop a procurement plan to get everyone in the business on the same page

    • Without an efficient and structured process around how IT purchases are budgeted and authorized, maverick spending and dark procurement can result, limiting IT’s control and visibility into purchases.
    • The challenge many IT departments face is that there is a disconnect between meeting the needs of the business and bringing in equipment according to existing policies and procedures.
    • The asset manager should demonstrate how they can bridge the gaps and improve tracking mechanisms at the same time.

    Improve procurement decisions:

    • Demonstrate how technology is a value-add.
    • Make a clear case for the budget by using the same language as the rest of the business.
    • Quantify the output of technology investments in tangible business terms to justify the cost.
    • Include the refresh cycle in the procurement plan to ensure mission- critical systems will include support and appropriate warranty.
    • Plan technology needs for the future and ensure IT technology will continue to meet changing needs.
    • Synchronize redundant organizational procurement chains in order to lower cost.

    Document the following in your procurement procedure:

    • Process for purchase requests
    • Roles and responsibilities, including requestors and approvers
    • Hardware assets to purchase and why they are needed
    • Timelines for purchase
    • Process for vendors

    Info-Tech Insight

    IT procurement teams are often heavily siloed from ITAM teams. The procurement team is typically found in the finance department. One way to bridge the gap is to implement routine, reliable reporting between departments.

    Determine if it makes sense to lease or buy your equipment; weigh the pros and cons of leasing hardware

    Pros

    • Keeps operational costs low in the short term by containing immediate cost.
    • Easy, predictable payments makes it easier to budget for equipment over long term.
    • Get the equipment you need to start doing business right away if you’re just starting out.
    • After the leasing term is up, you can continue the lease and update your hardware to the latest version.
    • Typical leases last 2 or 3 years, meaning your hardware can get upgrades when it needs it and your business is in a better position to keep up with technology.
    • Leasing directly from the vendor provides operational flexibility.
    • Focus on the business and let the vendor focus on equipment service and updates as you don’t have to pay for maintenance.
    • Costs structured as OPEX.

    Cons

    • In the long term, leasing is almost always more expensive than buying because there’s no equity in leased equipment and there may be additional fees and interest.
    • Commitment to payment through the entire lease period even if you’re not using the equipment anymore.
    • Early termination fees if you need to get out of the lease.
    • No option to sell equipment once you’re finished with it to make money back.
    • Maintenance is up to leasing company’s specifications.
    • Product availability may be limited.

    Recommended for:

    • Companies just starting out
    • Business owners with limited capital or budget
    • Organizations with equipment that needs to be upgraded relatively often

    Weigh the pros and cons of purchasing hardware

    Pros

    • Complete control over assets.
    • More flexible and straightforward procurement process.
    • Tax incentives: May be able to fully deduct the cost of some newly purchased assets or write off depreciation for computers and peripherals on taxes.
    • Preferable if your equipment will not be obsolete in the next two or three years.
    • You can resell the asset once you don’t need it anymore to recover some of the cost.
    • Customization and management of equipment is easier when not bound by terms of leasing agreement.
    • No waiting on vendor when maintenance is needed; no permission needed to make changes.

    Cons

    • High initial cost of investment with CAPEX expense model.
    • More paperwork.
    • You (as opposed to vendor) are responsible for equipment disposal in accordance with environmental regulations.
    • You are responsible for keeping up with upgrades, updates, and patches.
    • You risk ending up with out-of-date or obsolete equipment.
    • Hardware may break after terms of warranty are up.

    Recommended for:

    • Established businesses
    • Organizations needing equipment with long-term lifecycles

    Make a lease vs. buy decision for equipment purchases

    2.1.4 Decide whether to purchase or lease

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • Representatives from all other areas of the business

    Document

    Document policy decisions in the Standard Operating Procedures – Section 7: Procurement

    1. Identify hardware equipment that requires a purchase vs. lease decision.
    2. Discuss with Finance whether it makes sense to purchase or lease each major asset, considering the following:
    • Costs of equipment through each method
    • Tax deductions
    • Potential resale value
    • Potential revenue from using the equipment
    • How quickly the equipment will be outdated or require refresh
    • Size of equipment
    • Maintenance and support requirements
    • Overall costs
  • The leasing vs. buying decision should take considerable thought and evaluation to make the decision that best fits your organizational needs and situation.
  • Determine appropriate warranty and service-level agreements for your organization

    Determine acceptable response time, and weigh the cost of warranty against the value of service.

    • Standard warranties vary by manufacturer, but are typically one or three years.
    • Next-day, onsite service may be part of the standard offering or may be available as an uplift.
    • Four-hour, same-day service can also be added for high availability needs.
    • Extended warranties can be purchased beyond three years, although not many organizations take advantage of this offering.
    • Other organizations lower or remove the warranty and have reported savings of as much as $150 per machine.

    Speak to your partner to see how they can help the process of distributing machines.

    • Internal components change frequently with laptops and desktops. If purchasing product over time rather than buying in bulk, ensure the model will be available for a reasonable term to reduce imaging and support challenges.
    • Determine which services are important to your organization and request these services as part of the initial quote. If sending out a formal RFQ or RFP, document required services and use as the basis for negotiating SLAs.
    • Document details of SLA, including expectations of services for manufacturer, vendor, and internal team.
    • If partner will be providing services, request they stock an appropriate number of hot spares for frequently replaced parts.
    • If self-certifying, review resource capabilities, understand skill and certification requirements; for example, A+ certification may be a pre-requisite.
    • Understand DOA policy and negotiate a “lemon policy,” meaning if product dies within 15 or 30 days it can be classified as DOA. Seek clarity on return processes.

    Consider negotiation strategies, including how and when to engage with different partners during acquisition

    Direct Model

    • Dell’s primary sales model is direct either through a sales associate or through its e-commerce site. Promotions are regularly listed on the website, or if customization is required, desktops and laptops have some flexibility in configuration. Discounts can be negotiated with a sales rep on quantity purchases, but the discount level changes based on the model and configuration.
    • Other tier-one manufacturers typically sell direct only from their e-commerce sites, providing promotions based on stock they wish to move, and providing some configuration flexibility. They rely heavily on the channel for the majority of their business.

    Channel Model

    • Most tier one manufacturers have processes in place to manage a smaller number of partners rather than billing and shipping out to individual customers. Deviating from this process and dealing direct with end customers can create order processing issues.
    • Resellers have the ability to negotiate discounts based on quantities. Discounts will vary based on model, timing (quarter or year end), and quantity commitment.
    • Negotiations on large quantities should involve a manufacturer rep as well as the reseller to clearly designate roles and services, ensure processes are in place to fulfill your needs, and agree on pricing scheme. This will prevent misunderstandings and bring clarity to any commitments.
    • Often the channel partners are authorized to provide repair services under warranty for the manufacturer.
    • Dell also uses the channel model for distribution where customers demand additional services.

    Expect discounts to reflect quantity and method of purchase

    Transaction-based purchases will receive the smallest discounting.

    • Understand requirements to find the most appropriate make and model of equipment.
    • Prepare a forecast of expected purchases for the year and discuss discounting.
    • Typically initial discounts will be 3-5% off suggested retail price.
    • Once a history is in place, and the vendor is receiving regular orders, it may extend deeper discounts.

    Bulk purchases will receive more aggressive discounting of 5-15% off suggested retail price, depending on quantities.

    • Examine shipping options and costs to take advantage of bulk deliveries; in some cases vendors may waive shipping fees as an extension of the discounting.
    • If choosing end-of-line product, ensure appropriate quantity of a single model is available to efficiently roll out equipment.
    • Various pricing models can be used to obtain best price.

    Larger quantities rolled out over time will require commitments to the manufacturer to obtain deepest discounts.

    • Discuss all required services as part of negotiation to ensure there are no surprise charges.
    • Several pricing models can be used to obtain the best price.
      • Suggested retail price minus as much as 20%.
      • Cost plus 3% up to 10% or more.
      • Fixed price based on negotiating equipment availability with budget requirements.

    If sending out to bid, determine requirements and scoring criteria

    It’s nearly impossible to find two manufacturers with the exact same specifications, so comparisons between vendors is more art than science.

    New or upgraded components will be introduced into configurations when it makes the most sense in a production cycle. This creates a challenge in comparing products, especially in an RFP. The best way to handle this is to:

    • Define and document minimum technology requirements.
    • Define and document service needs.
    • Compare vendors to see if they’ve met the criteria or not; if yes, compare prices.
    • If the vendors have included additional offerings, see if they make sense for your organization. If they do, include that in the scoring. If not, exclude and score based on price.
    • Recognize that the complexity of the purchase will dictate the complexity of scoring.

    "The hardware is the least important part of the equation. What is important is the warranty, delivery, imaging, asset tagging, and if they cannot deliver all these aspects the hardware doesn’t matter." – Doug Stevens, Assistant Manager Contract Services, Toronto District School Board

    Document and analyze the hardware procurement workflow to streamline process

    The procurement process should balance the need to negotiate appropriate pricing with the need to quickly approve and fulfill requests. The process should include steps to follow for approving, ordering, and tracking equipment until it is ready for receipt.

    Within the process, it is particularly important to decide if this is where equipment is added into the database or if it will happen upon receipt.

    A poorly designed procurement workflow:

    • Includes many bottlenecks, stopping and starting points.
    • May impact project and service requests and requires unrealistic lead times.
    • May lead to lost productivity for users and lost credibility for the IT department.

    A well-designed hardware procurement workflow:

    • Provides reasonable lead times for project managers and service or hardware request fulfillment.
    • Provides predictability for technical resources to plan deployments.
    • Reduces bureaucracy and workload for following up on missing shipments.
    • Enables improved documentation of assets to start lifecycle management.

    Info-Tech Insight

    Where the Hardware Asset Manager is unable to affect procurement processes to reduce time to deliver, consider bringing inventory onsite or having your hardware vendor keep stock, ready to ship on demand. Projects, replacements, and new-user requests cannot be delayed in a service-focused IT organization due to bureaucratic processes.

    Document and analyze your procurement workflow to identify opportunities for improvement and communicate process

    Determine if you need one workflow for all equipment or multiples for small vs. large purchases.

    Occasionally large rollouts require significant changes from lower dollar purchases.

    Watch for:

    • Back and forth communications
    • Delays in approvals
    • Inability to get ETAs from vendors
    • Too many requests for quotes for small purchases
    • Entry into asset database

    This sample can be found in the HAM Process Workflows.

    The image shows a workflow, titled Procurement-Equipment-Small Quantity. On the left, the chart is separated into categories: IT Procurment; Tier 2 or Tier 3; IT Director; CIO.

    Design the process workflow for hardware procurement

    2.1.6 Illustrate procurement workflow with a tabletop exercise

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • CFO or other management representative from Finance

    Document

    Document in the Standard Operating Procedures, Section 7: Procurement

    1. In a group, distribute sticky notes or cue cards.
    2. Designate a space on the table/whiteboard to plot the workflow.
    3. Determine which individuals are responsible for handling non-standard requests. Establish any exceptions that may apply to your defined hardware standard.
    4. Gather input from Finance on what the threshold will be for hardware purchases that will require further approval.
    5. Map the procurement process for a standard hardware purchase.
    6. If applicable, map the procurement process for a non-standard request separately.
    7. Evaluate the workflow to identify any areas of inefficiency and make any changes necessary to improve the process.
    8. Be sure to discuss and include:
      • All necessary approvals
      • Time required for standard equipment process
      • Time required for non-standard equipment process
      • How information will be transferred to ITAM database

    Document and share an organizational purchasing policy

    2.1.7 Build a purchasing policy

    A purchasing policy helps to establish company standards, guidelines, and procedures for the purchase of all information technology hardware, software, and computer-related components as well as the purchase of all technical services.

    The policy will ensure that all purchasing processes are consistent and in alignment with company strategy. The purchasing policy is key to ensuring that corporate purchases are effective and the best value for money is obtained.

    Implement a purchasing policy to prevent or reduce:

    • Costly corporate conflict of interest cases.
    • Unauthorized purchases of non-standard, difficult to support equipment.
    • Unauthorized purchases resulting in non-traceable equipment.
    • Budget overruns due to decentralized, equipment acquisition.

    Download Info-Tech’s Purchasing Policytemplate to build your own purchasing policy.

    Step 2.2: Receive and Deploy Hardware

    Phase 2: Procure & Receive

    2.1 Request & Procure

    2.2 Receive & Deploy

    This step will walk you through the following activities:

    2.2.1 Select appropriate asset tagging method

    2.2.2 Design workflow for receiving and inventorying equipment

    2.2.3 Document the deployment workflow(s)

    This step involves the following participants:

    • Asset Manager
    • Purchasing
    • Receiver (optional)
    • Service Desk Manager
    • Operations (optional)

    Step Outcomes:

    • Understanding of the pros and cons of various asset tagging methods
    • Defined asset tagging method, process, and location by equipment type
    • Identified equipment acceptance, testing, and return procedures
    • Documented equipment receiving and inventorying workflow
    • Documented deployment workflows for desktop hardware and large-scale deployments

    Cisco implemented automation to improve its inventory and deployment system

    CASE STUDY

    Industry Networking

    Source Cisco IT

    Challenge

    Although Cisco Systems had implemented a centralized procurement location for all PCs used in the company, inventory tracking had yet to be addressed.

    Inventory tracking was still a manual process. Given the volume of PCs that are purchased each year, this is an incredibly labor-intensive process.

    Sharing information with management and end users also required the generation of reports – another manual task.

    Solution

    The team at Cisco recognized that automation was the key component holding back the success of the inventory management program.

    Rolling out an automated process across multiple offices and groups, both nationally and internationally, was deemed too difficult to accomplish in the short amount of time needed, so Cisco elected to outsource its PC management needs to an experienced vendor.

    Results

    As a result of the PC management vendor’s industry experience, the implementation of automated tracking and management functions drastically improved the inventory management situation at Cisco.

    The vendor helped determine an ideal leasing set life of 30 months for PCs, while also managing installations, maintenance, and returns.

    Even though automation helped improve inventory and deployment practices, Cisco still needed to address another key facet of asset management: security.

    This case study continues in phase 3.

    An effective equipment intake process is critical to ensure product is correct, documented, and secured

    Examine your current process for receiving assets. Typical problems include:

    Receiving inventory at multiple locations can lead to inconsistent processes. This can make invoice reconciliation challenging and result in untracked or lost equipment and delays in deployment.

    Equipment not received and secured quickly. Idle equipment tends to go missing if left unsupervised for too long. Missed opportunities to manage returns where equipment is incorrect or defective.

    Disconnect between procurement and receiving where ETAs are unknown or incorrect. This can create an issue where no one is prepared for equipment arrival and is especially problematic on large orders.

    How do you solve these problems? Create a standardized workflow that outlines clear steps for asset receiving.

    A workflow will help to answer questions such as:

    • How do you deal with damaged shipments? Incorrect shipments?
    • Did you reach an agreement with the vendor to replace damaged/incorrect shipments within a certain timeframe?
    • When does the product get tagged and entered into the system as received?
    • What information needs to get captured on the asset tag?

    Standardize the process for receiving your hardware assets

    The first step in effective hardware asset intake is establishing proper procedures for receiving and handling of assets.

    Process: Start with information from the procurement process to determine what steps need to follow to receive into appropriate systems and what processes will enable tagging to happen as soon as possible.

    People: Ensure anyone who may impact this process is aware of the importance of documenting before deployment. Having everyone who may be handling equipment on board is key to success.

    Security: Equipment will be secured at the loading dock or reception. It will need to be secured as inventory and be secured if delivering directly to the bench for imaging. Ensure all receiving activities are done before equipment is deployed.

    Tools: A centralized ERP system may already provide a place to receive and reconcile with purchasing and invoicing, but there may still be a need to receive directly into the ITAM and/or CMDB database rather than importing directly from the ERP system.

    Tagging: A variety of methods can be used to tag equipment to assist with inventory. Consider the overall lifecycle management when determining which tagging methods are best.

    Info-Tech Insight

    Decentralized receiving doesn’t have to mean multiple processes. Take advantage of enterprise solutions that will centralize the data and ensure everyone follows the same processes unless there is an uncompromising and compelling logistical reason to deviate.

    Evaluate the pros and cons of different asset tagging methods

    Method Cost Strengths Weaknesses Recommendation
    RFID with barcoding – asset tag with both a barcode and RFID solution $$$$
    • Secure, fast, and robust
    • Track assets in real time
    • Quick and efficient
    • Most expensive option, requiring purchase of barcode scanner with RFID reader and software)
    • Does not work as well in an environment with less control over assets
    • Requires management of asset database
    • Best in a controlled environment with mature processes and requirement for secure assets
    RFID only – small chip with significant data capacity $$$
    • Track assets from remote locations
    • RFID can be read through boxes so you don’t have to unpack equipment
    • Scan multiple RFID-tagged hardware simultaneously
    • Large data capacity on small chip
    • Expensive, requiring purchase of RFID reading equipment and software
    • Ideal if your environment is spread over multiple locations
    Barcoding only – adding tags with unique barcodes $$
    • Reasonable security
    • Report inventory directly to database
    • Relatively low cost
    • Only read one at a time
    • Need to purchase barcode scanners and software
    • Can be labor intensive to deploy with manual scanning of individual assets
    • Less secure
    • Can’t hold as much data
    • Not as secure as barcodes with RFID but works for environments that are more widely distributed and less controlled

    Evaluate the pros and cons of different asset tagging methods

    Method Cost Strengths Weaknesses Recommendation
    QR codes – two-dimensional codes that can store text, binary, image, or URL data $$
    • Easily scannable from many angles
    • Save and print on labels
    • Can be read by barcode scanning apps or mobile phones
    • Can encode more data than barcodes
    • QR codes need to be large enough to be usable, which can be difficult with smaller IT assets
    • Scanning on mobile devices takes longer than scanning barcodes
    • Ideal if you need to include additional data and information in labels and want workers to use smartphones to scan labels
    Manual tags – tag each asset with your own internal labels and naming system $
    • Most affordable
    • Manual
    • Tags are not durable
    • Labor intensive and time consuming
    • Leaves room for error, misunderstanding, and process variances between locations
    • As this is the most time consuming and resource intensive with a low payoff, it is ideal for low maturity organizations looking for a low-cost option for tagging assets
    Asset serial numbers – tag assets using their serial number $
    • Less expensive
    • Unique serial numbers identified by vendor
    • Serial numbers have to be added to database manually, which is labor intensive and leaves room for error
    • Serial numbers can rub off over time
    • Hard to track down already existing assets
    • Doesn’t help track location of assets after deployment
    • Potential for duplicates
    • Inconsistent formats of serial numbers by manufacturers makes this method prone to error and not ideal for asset management

    Select the appropriate method for tagging and tracking your hardware assets

    2.2.1 Select asset tagging method

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)

    Document

    Document in the Standard Operating Procedures, Section 8

    1. Define your asset tagging method. For most organizations, asset tracking is done via barcoding or QR codes, either by using one method or a combination of the two. Other methods, including RFID, may be applicable based on cost or tracking complexity. Overall, barcodes embedded with RFID are the most robust and efficient method for asset tagging, but also the most expensive. Choose the best method for your organization, taking into account affordability, labor-intensiveness, data complexity needs, and ease of deployment.
    2. Define the process for tagging assets, including how soon they should receive the tag, whose responsibility it is, and whether the tag type varies depending on the asset type.
    3. Define the location of asset tags according to equipment type. Example:
    Asset Type Asset Tag Location
    PC desktop Right upper front corner
    Laptop Right corner closest to user when laptop is closed
    Server Right upper front corner
    Printer Right upper front corner
    Modems Top side, right corner

    Inspect and test equipment before accepting it into inventory to ensure it’s working according to specifications

    Upon receipt of procured hardware, validate the equipment before accepting it into inventory.

    1. Receive - Upon taking possession of the equipment, stage them for inspection before placing them into inventory or deploying for immediate use.
    2. Inspect - The inspection process should involve at minimum examining the products that have been delivered to determine conformance to purchase specifications.
    3. Test -Depending on the type and cost of hardware, some assets may benefit from additional testing to determine if they perform at a satisfactory level before being accepted.
    4. Accept - If the products conform to the requirements of the purchase order, acknowledge receipt so the supplier may be paid. Most shipments are automatically considered as accepted and approved for payment within a specific timeframe.

    Assign responsibility and accountability for inspection and acceptance of equipment, verifying the following:

    • The products conform to purchase order requirements.
    • The quantity ordered is the same as the quantity delivered.
    • There is no damage to equipment.
    • Delivery documentation is acceptable.
    • Products are operable and perform according to specifications.
    • If required, document an acceptance testing process as a separate procedure.

    Build the RMA procedure into the receiving process to handle receipt of defective equipment

    The return merchandise authorization (RMA) process should be a standard part of the receiving process to handle the return of defective materials to the vendor for either repair or replacement.

    If there is a standard process in place for all returns in the organization, you can follow the same process for returning hardware equipment:

    • Call the vendor to receive a unique RMA number that will be attached to the equipment to be returned, then follow manufacturer specifications for returning equipment within allowable timelines according to the contract where applicable.
    • Establish a lemon policy with vendors, allowing for full returns up to 30 days after equipment is deployed if the product proves defective after initial acceptance.

    Info-Tech Insight

    Make sure you’re well aware of the stipulations in your contract or purchase order. Sometimes acceptance is assumed after 60 days or less, and oftentimes the clock starts as soon as the equipment is shipped out rather than when it is received.

    Info-Tech Best Practice

    Keep in mind that the serial number on the received assed may not be the asset that ultimately ends up on the user’s desk if the RMA process is initiated. Record the serial number after the RMA process or add a correction process to the workflow to ensure the asset is properly accounted for.

    Determine what equipment should be stocked for quick deployment where demand is high or speed is crucial

    The most important feature of your receiving and inventory process should be categorization. A well-designed inventory system should reflect not only the type of asset, but also the usage level.

    A common technique employed by asset managers is to categorize your assets using an ABC analysis. Assets are classified as either A, B, or C items. The ratings are based on the following criteria:

    A

    A items have the highest usage. Typically, 10-20% of total assets in your inventory account for upwards of 70-80% of the total asset requests.

    A items should be tightly controlled with secure storage areas and policies. Avoiding stock depletion is a top priority.

    B

    B items are assets that have a moderate usage level, with around 30% of total assets accounting for 15-25% of total requests.

    B items must be monitored; B items can transition to A or C items, especially during cycles of heavier business activity.

    C

    C items are assets that have the lowest usage, with upwards of 50% of your total inventory accounting for just 5% of total asset requests.

    C items are reordered the least frequently, and present a low demand and high risk for excessive inventory (especially if they have a short lifecycle). Many organizations look to move towards an on-demand policy to mitigate risk.

    Info-Tech Insight

    Get your vendor to keep stock of your assets. If large quantities of a certain asset are required but you lack the space to securely store them onsite, ask your vendor to keep stock for you and release as you issue purchase orders. This speeds up delivery and delays warranty activation until the item is shipped. This does require an adherence to equipment standards and understanding of demand to be effective.

    Define the process for receiving equipment into inventory

    Define the following in your receiving process:

    • When will equipment be opened once delivered?
    • Who will open and validate equipment upon receipt?
    • How will discrepancies be resolved?
    • When will equipment be tagged and identified in the tracking tool?
    • When will equipment be locked in secure storage?
    • Where will equipment go if it needs to be immediately deployed?

    The image shows a workflow chart titled Receiving and Tagging. The process is split into two sections, labelled on the left as: Desktop Support Team and Procurement.

    Design the workflow for receiving and inventorying equipment

    2.2.2 Illustrate receiving workflow with a tabletop exercise

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • CFO or other management representative from Finance

    Document

    Document in the Standard Operating Procedures, Section 8: Receiving and Equipment Inventory

    Option 1: Whiteboard

    1. Discuss the workflow and draw it on the whiteboard.
    2. Assess whether you are using the best workflow. Modify it if necessary.
    3. Use the sample workflow from this step as a guide if starting from scratch.
    4. Engage the team in refining the process workflow.
    5. Transfer data to Visio and add to the SOP.

    Option 2: Tabletop Exercise

    1. Distribute index cards to each member of the team.
    2. Have each person write a single task they perform on the index card. Be granular. Include the title or the name of the person responsible.
    3. Mark cards that are decision points. Use a card of a different color or use a marker to make a colored dot.
    4. Arrange the index cards in order, removing duplicates.
    5. Assess whether you are using the best workflow. Engage the team to refine it if necessary.
    6. Transfer data to Visio and add to the SOP.

    Improve device deployment by documenting software personas for each role

    • Improve the deployment process for new users by having a comprehensive list of software used by common roles within the organization. With large variations in roles, it may be impossible to build a complete list, but as you start to see patterns in requirements, you may find less distinct personas than anticipated.
    • Consider a survey to business units to determine what they need if this will solve some immediate problems. If this portion of the project will be deferred, use the data uncovered in the discovery process to identify which software is used by which roles.
    • Replacement equipment can have the software footprint created by what was actually utilized by the user, not necessarily what software was installed on the previous device.

    The image shows 4 bubbles, representing software usage. The ARC-GIS bubble is the largest, Auto CAD the second largest, and MS Office and Adobe CS equal in size.

    A software usage snapshot for an urban planner/engineer.

    • Once software needs are determined, use this information to review the appropriate device for each persona.
      • Ensure hardware is appropriate for the type of work the user does and supports required software.
      • If it is more appropriate for a user to have a tablet, ensure the software they use can be used on any device.
    • Review deployment methods to determine if there is any opportunity to improve the imaging or software deployment process with better tools or methodologies.
    • Document the device’s location if it will be static, or if the user may be more mobile, add location information for their primary location.
    • Think about the best place to document – if this information can be stored in Active Directory and imported to the ITAM database, you can update once and use in multiple applications. But this process is built into your add/move/change workflows.

    Maintain a lean library to simplify image management

    Simplify, simplify, simplify. Use a minimal number of desktop images and automate as much as you can.

    • Embrace minimalism. When it comes to managing your desktop image library, your ultimate goal should be to minimize the manual effort involved in provisioning new desktops.
    • Less is more. Try to maintain as few standard desktop images as possible and consider a thin gold image, which can be patched and updated on a regular basis. A thin image with efficient application deployment will improve the provisioning process.
    • Standardize and repeat. System provisioning should be a repeatable process. This means it is ripe for standardization and automation. Look at balancing the imaging process with software provisioning, using group policy and deployment tools to reduce time to provision and deliver equipment.
    • Outsource where appropriate. Imaging is one of the most employed services, where the image is built in-house and deployed by the hardware vendor. As a minimum, quarterly updates should still be provided to integrate the latest patches into the operating system.

    Document the process workflow for hardware deployment

    Define the process for deploying hardware to users.

    Include the following in your workflow:

    • How will equipment be configured and imaged before deployment?
    • Which images will be used for specific roles?
    • Which assets are assigned to specific roles?
    • How will the device status be changed in the ITAM tool once deployed?

    The image shows a workflow chart titled Hardware Deployment. It is divided into two categories, listed on the left: Desktop Support Team and Procurement.

    Large-scale deployments should be run as projects, benefitting from economies of scale in each step

    Large-scale desktop deployments or data center upgrades will likely be managed as projects.

    These projects should include project plans, including resources, timelines, and detailed procedures.

    Define the process for large-scale deployment if it will differ from the regular deployment process.

    The image is a graphic of a flowchart titled Deployment-Equipment-Large Quantity Rollout. It is divided into three categories, listed on the left: IT Procurement; Desktop Rollout Team; Asset Manager.

    Document the deployment workflow(s)

    2.2.3 Document deployment workflows for desktop and large-scale deployment

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Operations (optional)
    • CFO or other management representative from Finance

    Document

    Document in the Standard Operating Procedures, Section 9: Deployment

    Document each step in the system deployment process with notecards or on a whiteboard. Identify the challenges faced by your organization and strategize potential solutions.

    1. Outline each step in the process of desktop deployment. Be as granular as possible. On each card, describe the step as well as the individual responsible for it.
    2. When you are satisfied that each step is accurately captured, use a second color of notecard to document any challenges, inefficiencies, or pains associated with each step. Consider further documenting the time on each task.
    3. Examine each challenge or pain point. Discuss whether or not there is a clear solution to the problem. If yes, document the solution and amend the workflow. If not, engage in a broader discussion of possible solutions, taking into account people, processes, and available technology.
    4. Document separately the process for large-scale deployment if required.

    Look for opportunities to improve the request and deployment process with better communication and tools

    The biggest challenge in deploying equipment is meeting expectations of the business, and without cooperation from multiple departments, this becomes significantly more difficult.

    • Work with the procurement and the services team to ensure inventory is accessible, and regularly validate that inventory levels in the ITAM database are accurate.
    • Work with the HR department to predict (where possible) anticipated new hires. Plan for inventory ebbs and flows to match the hiring timelines where there are large variations.
    • If service catalogs will be made available for communicating options and SLAs for equipment purchases, work with the service catalog administrators to automate inventory checks and notifications. Work with the end-user device managers to set standards and reduce equipment variations to a manageable amount.
    • Where deployments are part of equipment refresh, ensure data is up to date for the services team to plan the project rollouts and know which software should be redeployed with the devices.
    • Infrastructure and security teams may have specific hardware assets relating to networking, data centers, and security, which may bypass the end-user device workflows but need to be tagged and entered into inventory early in the process. Work with these teams to have their equipment follow the same receiving and inventory processes. Deployment will vary based on equipment type and location.

    Automate hardware deployment where users are dispersed and deployment volume is high

    Self-serve kiosks (vending machines) can provide cost reductions in delivery of up to 25%. Organizations that have a high distribution rate are seeing reductions in cost of peripherals averaging 30-35% and a few extreme cases of closer to 85%.

    Benefits of using vending machines:

    • Secure equipment until deployed.
    • Equipment can be either purchased by credit card or linked to employee ID cards, enabling secure transactions and reporting.
    • Access rights can be controlled in real time, preventing terminated employees from accessing equipment or managing how many devices can be deployed to each user.
    • Vending machines can be managed through a cellular or wireless network.
    • Technology partners can be tasked with monitoring and refilling vending machines.
    • Employees are able to access technology wherever a vending machine can be located rather than needing to travel to the help desk.
    • Equipment loans and new employee packages can be managed through vending machines.

    Phase 2 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Request, Procure, Receive, and Deploy

    Proposed Time to Completion: 4 weeks

    Step 2.1: Request & Procure

    Start with an analyst kick-off call:

    • Define standard and non-standard hardware.
    • Weigh the pros and cons of leasing vs. buying.
    • Build the procurement process.

    Then complete these activities…

    • Define standard hardware requests.
    • Document standard hardware request procedure.
    • Document procurement workflow.
    • Build a purchasing policy.

    With these tools & templates:

    • Standard Operating Procedures
    • Non-Standard Hardware Request Form
    • Hardware Procurement Workflow
    • Purchasing Policy

    Step 2.2: Receive & Deploy

    Review findings with analyst:

    • Determine appropriate asset tagging method.
    • Define equipment receiving process.
    • Define equipment deployment process.

    Then complete these activities…

    • Select appropriate asset tagging method.
    • Design workflow for receiving and inventorying equipment.
    • Document the deployment workflow(s).

    With these tools & templates:

    • Standard Operating Procedures
    • Equipment Receiving & Tagging Workflow
    • Deployment Workflow

    Phase 2 Insight: Bridge the gap between IT and Finance to build a smoother request and procurement process through communication and routine reporting. If you’re unable to affect procurement processes to reduce time to deliver, consider bringing inventory onsite or having your hardware vendor keep stock, ready to ship on demand.

    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:

    2.1.2 Define standard hardware requests

    Divide whiteboard into columns representing core business areas. Define core hardware assets for end users in each division along with optional hardware assets. Discuss optional assets to narrow and define standard equipment requests.

    2.2.1 Select appropriate method for tagging and tracking assets

    Discuss the various asset tagging methods and choose the tagging method that is most appropriate for your organization. Define the process for tagging assets and document the standard asset tag location according to equipment type.

    Phase 3

    Maintain and Dispose

    Implement Hardware Asset Management

    Cisco overcame organizational resistance to change to improve asset security

    CASE STUDY

    Industry Networking

    Source Cisco IT

    Challenge

    Cisco Systems had created a dynamic work environment that prized individuality. This environment created high employee satisfaction, but it also created a great deal of risk surrounding device security.

    Cisco lacked an asset security policy; there were no standards for employees to follow. This created a surplus of not only hardware, but software to support the variety of needs amongst various teams at Cisco.

    Solution

    The ITAM team at Cisco recognized that their largest problem was the lack of standardization with respect to PCs. Variance in cost, lifecycle, and software needs/compatibility were primary issues.

    Cisco introduced a PC leasing program with the help of a PC asset management vendor to correct these issues. The primary goal was to increase on-time returns of PCs. A set life of 30 months was defined by the vendor.

    Results

    Cisco engaged employees to help contribute to improving its asset management protocols, and the approach worked.

    On-time returns increased from 60% to 80%. Costs were reduced due to active tracking and disposal of any owned assets still present.

    A reduction in hardware and software platforms has cut costs and increased security thanks to improved tracking capabilities.

    This case study continues in phase 4

    Step 3.1: Manage, Maintain, and Secure Hardware Assets

    Phase 3: Maintain & Dispose

    3.1 Manage & Maintain

    3.2 Dispose or Redeploy

    This step will walk you through the following activities:

    3.1.1 Build a MAC policy and request form

    3.1.2 Build workflows to document user MAC processes

    3.1.3 Design process and policies for hardware maintenance, warranty, and support documentation handling

    3.1.4 Revise or create an asset security policy

    This step involves the following participants:

    • Asset Manager
    • Service Desk Manager
    • Operations (optional)
    • Security Department

    Step Outcomes

    • Understanding of inventory management process best practices
    • Templates for move/add/change request policy and form
    • Documented process workflows for the user move/add/change process
    • Process and policies for hardware maintenance, warranty, and support documentation handling
    • Defined policies for maintaining asset security

    Determine methods for performing inventory audits on equipment

    Auto-discovery

    • Auto-discovery tools will be crucial to the process of understanding what equipment is connected to the network and in use.
    • The core functionality of discovery tools is to scan the environment and collect configuration data from all connected assets, but most tools can also be used to collect usage data, network monitoring, and software asset management data including software distribution, compliance, and license information.
    • These tools may not connect to peripheral devices such as monitors and external drives, will not scan devices that are turned off or disconnected from the network, may not inventory remote users, and will rarely provide location information. This often results in a need to complete physical audits as well.

    Info-Tech Insight

    One of the most common mistakes we see when it comes to asset management is to assume that the discovery tool will discovery most or all of your inventory and do all the work. It is better to assume only 80-90% coverage by the discovery tool and build ownership records to uncover the unreportable assets that are not tied into the network.

    Physical audit

    • The physical audit can be greatly improved with barcode, RFID, or QR codes, allowing items to be scanned, records opened, then updated.
    • If not everything is tagged or entered into the ITAM database, then searching closets, cabinets, and desk drawers may be required to tag and enter those devices into the database.
    • Provide the inventory team with exact instructions on what needs to be collected, verified, and recorded. Depending on the experience and thoroughness of the team, spot checks early in the process may alleviate quality issues often discovered at the end of the inventory cycle.

    Determine requirements for performing inventory audits on equipment

    Conduct an annual hardware audit to ensure hardware is still assigned to the person and location identified in your ITAM system, and assess its condition.

    Perform a quarterly review of hardware stock levels in order to ensure all equipment is relevant and usable. The table below is an example of how to organize this information.

    Item Target Stock Levels Estimated $ Value
    Desktop computers
    Standard issue laptops
    Mice
    Keyboards
    Network cables
    Phones

    Info-Tech Insight

    Don’t forget about your remotely deployed assets. Think about how you plan to inventory remotely deployed equipment. Some tools will allow data collection through an agent that will talk to the server over the internet, and some will completely ignore those assets or provide a way to manually collect the data and email back to the asset manager. Mobile device management tools may also help with this inventory process. Determine what is most appropriate based on the volume of remote workers and devices.

    Build an inventory management process to maintain an accurate view of owned hardware assets

    • Your inventory should capture which assets are on hand, where they are located, and who owns them, at minimum. Maintaining an accurate, up-to-date view of owned hardware assets allows you to see at any time the actual state of the components that make up your infrastructure across the enterprise.
    • Automated inventory practices save time and effort from doing physical inventories and also reduce the interruption to business users while improving accuracy of data.
    • If you are just starting out, define the process for conducting an inventory of deployed assets, and then define the process for regular upkeep and audit of inventory data.

    Inventory Methods

    • Electronic – captures networked asset information only and can be deployed over the network with no deskside service interaction.
    • Physical – captures environmental detail and must be performed manually by a service technician with possible disruption to users.
    • Full inventory – both physical and electronic inventory of assets.

    Internal asset information to collect electronically

    • Hardware configuration
    • Installed software
    • Operating system
    • System BIOS
    • Network configuration
    • Network drive mappings
    • Printer setups
    • System variables

    External asset information that cannot be detected electronically

    • Assigned user
    • Associated assets
    • Asset/user location
    • Usage of asset
    • Asset tag number

    IMAC (Install, Move, Add, Change) services will form the bulk of asset management work while assets are deployed

    IMAC services are usually performed at a user’s deskside by a services technician and can include:

    • Installing new desktops or peripherals
    • Installing or modifying software
    • Physically moving an end user’s equipment
    • Upgrading or adding components to a desktop

    Specific activities may include:

    Changes

    • Add new user IDs
    • Manage IDs
    • Network changes
    • Run auto-discovery scan

    Moves

    • Perform new location site survey
    • Coordinate with facilities
    • Disconnect old equipment
    • Move to new location
    • Reconnect at new location
    • Test installed asset
    • Obtain customer acceptance
    • Close request

    Installs and Adds

    • Perform site survey
    • Perform final configuration
    • Coordinate with Facilities
    • Asset tagging
    • Transfer data from old desktop
    • Wipe old desktop hard drive
    • Test installed asset
    • Initiate auto-discovery scan
    • Obtain customer acceptance
    • Close request

    A strong IMAC request process will lessen the burden on IT asset managers

    • When assets are actively in use, Asset Managers must also participate in the IMAC (Install-Move-Add-Change) process and ensure that any changes to asset characteristics or locations are updated and tracked in the asset management tool and that the value and usefulness of the asset is monitored.
    • The IMAC process should not only be reactive in response to requests, but proactive to plan for moves and relocations during any organizational change events.

    Recommendations:

    Automate. Wherever possible, use tools to automate the IMAC process.

    E-forms, help desk, ticketing, or change management software can automate the request workflow by allowing the requestor to submit a request ticket that can then be automatically assigned to a designated team member according to the established chain of command. As work is completed, the ticket can be updated, and the requestor will be able to check the status of the work at any time.

    Communicate the length of any downtime associated with execution of the IMAC request to lessen the frustration and impatience among users.

    Involve HR. When it comes to adding or removing user accounts, HR can be a valuable resource. As most new employees should be hired through HR, work with them to improve the onboarding process with enough advanced notice to set up accounts and equipment. Role changes with access rights and software modifications can benefit from improved communications. Review the termination process as well, to secure data and equipment.

    Build a MAC request policy and form for end users

    A consistent Move, Add, Change (MAC) request process is essential for lessening the burden on the IT department. MAC requests are used to address any number of tasks, including:

    • Relocation of PCs and/or peripherals.
    • New account setup.
    • Hardware or software upgrades.
    • Equipment swaps or replacements.
    • User account/access changes.
    • Document generation.
    • User acceptance testing.
    • Vendor coordination.

    Create a request form.

    If you are not using help desk or other ticketing software, create a request template that must be submitted for each MAC. The request should include:

    • The name and department of the requester.
    • The date of the request.
    • Severity of the request. For example, severity can be graded on a score of high, medium, or low where high represents a mission-critical change that could compromise business continuity if not addressed immediately, and low represents a more cosmetic change that will not negatively affect operations. The severity of the request can be determined by the service-level agreement (SLA) associated with the service.
    • Date the request must be completed by. Or at least, what would be the ideal date for completion. This will vary greatly depending on the severity of the request. For example, deleting the access of a terminated employee would be very time sensitive.
    • Item or service to be moved, added, or changed. Include location, serial number, or other designated identifier where possible.
    • If the item or service is to be moved, indicated where it is being moved.
    • It is a good idea to include a comments section where the requester can add any additional questions or details.

    Use Info-Tech’s templates to build your MAC policy and request form

    3.1.1 Build a MAC policy and request form

    Desktop Move/Add/Change Policy

    This desktop move/add/change policy should be put in place to mitigate the risk associated with unauthorized changes, minimize disruption to the business, IT department, and end users, and maintain consistent expectations.

    Move, Add, Change Request Form

    Help end users navigate the move/add/change process. Use the Move/Add/Change Request Form to increase efficiency and organization for MAC requests.

    Document the process for user equipment moves

    Include the following in your process documentation:

    • How and when will any changes to user or location information be made in the ITAM tool?
    • Will any changes in AD automatically update in the ITAM tool?
    • How should requests for equipment moves or changes be made?
    • How will resources be scheduled?

    The image shows a flowchart titled SErvice Request - User Moves. The chart of processes is split into three categories, listed on the left side of the chart: User Manager; IT Coordinator; and Tier 2 & Facilities.

    Build workflows to document user MAC processes

    3.1.2 Build MAC process workflows

    Participants

    • Asset Manager
    • Service Desk Manager
    • Operations (optional)

    Document

    Document in the Standard Operating Procedures, Section 10: Equipment Install, Adds, Moves, and Changes

    Document each step in the system deployment process using notecards or on a whiteboard. Identify the challenges faced by your organization and strategize potential solutions.

    1. Outline each step in the process of desktop deployment. Be as granular as possible. On each card, describe the step as well as the individual responsible for each step.
    2. When you are satisfied that each step is accurately captured, use a second color of notecard to document any challenges, inefficiencies, or pains associated with each step. Consider further documenting the time on each task.
    3. Examine each challenge or pain point. Discuss whether or not there is a clear solution to the problem. If so, document the solution and amend the workflow. If not, engage in a broader discussion of possible solutions, taking into account people, processes, and available technology.
    4. Document separately the process for large-scale deployment if required.

    Define a policy to ensure effective maintenance of hardware assets

    Effective maintenance and support of assets provides longer life, higher employee productivity, and increased user satisfaction.

    • Your asset management documentation and database should store equipment maintenance contract information so that it can be consulted whenever hardware service is required.
    • Record who to contact as well as how, warranty information, and any SLAs that are associated with the maintenance agreement.
    • Record all maintenance that hardware equipment receives, which will be valuable for evaluating asset and supplier performance.
    • In most cases, the Service Desk should be the central point of contact for maintenance calls to all suppliers.

    Sample equipment maintenance policy terms:

    • Maintenance and support arrangements are required for all standard and non-standard hardware.
    • All onsite hardware should be covered by onsite warranty agreements with appropriate response times to meet business continuity needs.
    • Defective items under warranty should be repaired in a timely fashion.
    • Service, maintenance, and support shall be managed through the help desk ticketing system.

    Design process and policies for hardware maintenance, warranty, and support documentation handling

    3.1.3 Design process for hardware maintenance

    Participants

    • Asset Manager
    • Purchasing
    • Service Desk Manager
    • Security
    • Operations (optional)

    Document

    Document in the Standard Operating Procedures, Section 10

    1. Discuss and document the policy for hardware maintenance, warranty, and support.
    2. Key outcomes should include:
    • Who signs off on policies?
    • What is the timeline for documentation review?
    • Where are warranty and maintenance documents stored?
    • How will equipment be assessed for condition during audits?
    • How often will deployed equipment be reimaged?
    • How will equipment repair needs be requested?
    • How will repairs for equipment outside warranty be handled?
  • Document in the Standard Operating Procedure.
  • Use your HAM program to improve security and meet regulatory requirements

    ITAM complements and strengthens security tools and processes, improving the company’s ability to protect its data and systems and reduce operational risk.

    It’s estimated that businesses worldwide lose more than $221 billion per year as a result of security breaches. HAM is one important factor in securing data, equipment investment, and meeting certain regulatory requirements.

    How does HAM help keep your organization secure?

    • Educating users on best practices for securing their devices, and providing physical security such as cable locks and tracking mechanisms.
    • Best practices for reporting lost or stolen equipment for quickly removing access and remotely wiping devices.
    • Accurate location and disposal records will enable accurate reporting for HIPAA and PCI DSS audits where movement of media or hardware containing data is a requirement. Best practices for disposal will include properly wiping drives, recording information, and ensuring equipment is disposed of according to environmental regulations.
    • Secure access to data through end-user mobile devices. Use accurate records and MDM tools to securely track, remove access, and wipe mobile devices if compromised.
    • Encrypt devices that may be difficult to track such as USB drives or secure ports to prevent data from being copied to external drives.
    • Managed hardware allows software to be managed and patched on a regular basis.

    Best Practices

    1. Educate end users about traveling with equipment. Phones and laptops are regularly stolen from cars; tablets and phones are left on planes. Encourage users to consider how they store equipment on the way home from work.
    2. Cable locks used at unsecured offsite or onsite work areas should be supplied to employees.
    3. Equipment stored in IT must be secured at all times.

    Implement mobile device management (MDM) solutions

    Organizations with a formal mobile management strategy have fewer problems with their mobile devices.

    Develop a secure MDM to:

    • Provide connection and device support when the device is fully subsidized by the organization to increase device control.
    • Have loaner devices for when traveling to limit device theft or data loss.
    • Personal devices not managed by MDM should be limited to internet access on a guest network.
    • Limit personal device access to only internet access or a limited zone for data access and a subset of applications.
    • Advanced MDM platforms provide additional capabilities including containerization.

    The benefits of a deployed MDM solution:

    • Central management of a variety of devices and platforms is the most important advantage of MDM. Administrators can gain visibility into device status and health, set policies to groups of users, and control who has access to what.
    • Security features such as enforcing passcodes and remote wipe are also essential, given the increased risk of mobile devices.
      • Remote wipe should be able to wipe either the whole device or just selected areas.
    • Separation of personal data is becoming increasingly important as BYOD becomes the norm. This is a feature that vendors are approaching radically differently.
    • Device lock: Be able to lock the device itself, its container, or its SIM. Even if the SIM is replaced, the device should still remain locked. Consider remote locking a device if retrieval is possible.

    Mobile device management is constantly evolving to incorporate new features and expand to new control areas. This is a high-growth area that warrants constant up-to-date knowledge on the latest developments.

    What can be packed into an MDM can vary and be customized in many forms for what your organization needs.

    Secure endpoint devices to protect the data you cannot control

    Endpoint Encryption

    Endpoints Average None
    Desktop 73% 4%
    Laptops 65% 9%
    Smartphones 27% 28%
    Netbooks 26% 48%
    Tablets 16% 59%
    Grand average 41%

    Benefits from endpoint encryption:

    • Reduced risk associated with mobile workers.
    • Enabled sharing of data in secured workspace.
    • Enhanced end-user accountability.
    • Reduced number of data breach incidents.
    • Reduced number of regulatory violations.

    Ways to reduce endpoint encryption costs:

    • Use multiple vendors (multiple platforms): 33%
    • Use a single vendor (one platform): 40%
    • Use a single management console: 22%
    • Outsource to managed service provider: 26%
    • Permit user self-recovery: 26%

    Remote Wiping

    • If all else fails, a device can always be erased of all its data, protecting sensitive data that may have been on it.
    • Selective wipe takes it a step further by erasing only sensitive data.

    Selective wipe is not perfect.

    It is nearly impossible to keep the types of data separate, even with a sandbox approach. Selective wipe will miss some corporate data, and even a full remote wipe can only catch some of users’ increasingly widely distributed data.

    Selective wipe can erase:

    • Corporate profiles, email, and network settings.
    • Data within a corporate container or other sandbox.
    • Apps deployed across the enterprise.

    Know when to perform a remote wipe.

    Not every violation of policy warrants a wipe. Playing Candy Crush during work hours probably does not warrant a wipe, but jail breaking or removing a master data management client can open up security holes that do warrant a wipe.

    Design an effective asset security policy to protect the business

    Data security is not simply restricted to compromised software. In fact, 70% of all data breaches in the healthcare industry since 2010 are due to device theft or loss, not hacking. (California Data Breach Report – October, 2014) ITAM is not just about tracking a device, it is also about tracking the data on the device.

    Organizations often struggle with the following with respect to IT asset security:

    • IT hardware asset removal control.
    • Personal IT hardware assets (BYOD).
    • Data removal from IT hardware assets.
    • Inventory control with respect to leased hardware and software.
    • Unused software.
    • Repetitive versions of software.
    • Unauthorized software.

    Your security policy should seek to protect IT hardware and software that:

    • Have value to the business.
    • Require ongoing maintenance and support.
    • Create potential risk in terms of financial loss, data loss, or exposure.

    These assets should be documented and controlled in order to meet security requirements.

    The asset security policy should encompass the following:

    • Involved parties.
    • Hardware removal policy/documentation procedure.
    • End-user asset security responsibilities.
    • Theft/loss reporting procedure.
    • BYOD standards, procedures, and documentation requirements.
    • Data removal.
    • Software usage.
    • Software installation.

    Info-Tech Insight

    Hardware can be pricey; data is priceless. The cost of losing a device is minimal compared to the cost of losing data contained on a device.

    Revise or create an asset security policy

    3.1.4 Develop IT asset security policy

    Participants

    • CIO or IT Director
    • Asset Manager
    • Service Desk Manager
    • Security
    • Operations (optional)

    Document

    Document in the Asset Security Policy.

    1. Identify asset security challenges within your organization. Record them in a table like the one below.
    Challenge Current Security Risk Target Policy
    Hardware removal Secure access and storage, data loss Designated and secure storage area
    BYOD No BYOD policy in place N/A → phasing out BYOD as an option
    Hardware data removal Secure data disposal Data disposal, disposal vendor
    Unused software Lack of support/patching makes software vulnerable Discovery and retirement of unused software
    Unauthorized software Harder to track, less secure Stricter stance on pirated software
    1. Brainstorm the reasons for why these challenges exist.
    2. Identify target policy details that pertain to each challenge. Record the outcomes in section(s) 5.1, 5.2, or 5.3 of the Asset Security Policy.

    Poor asset security and data protection had costly consequences for UK Ministry of Justice

    CASE STUDY

    Industry Legal

    Source ICO

    Challenge

    The Ministry of Justice (MoJ) in the UK had a security problem: hard drives that contained sensitive prisoner data were unencrypted and largely unprotected for theft.

    These hard drives contained information related to health, history of drug use, and past links to organized crime.

    After two separate incidents of hard drive theft that resulted in data breaches, the Information Commissioner’s Office (ICO), stepped in.

    Solution

    It was determined that after the first hard drive theft in October 2011, replacement hard drives with encryption software were provisioned to prisons managed by the MoJ.

    Unfortunately, the IT security personnel employed by the MoJ were unaware that the encryption software required manual activation.

    When the second hard drive theft occurred, the digital encryption could not act as a backup to poor physical security (the hard drive was not secured in a locker as per protocol).

    Results

    The perpetrators were never found and the stolen hard drives were never recovered.

    As a result of the two data breaches, the MoJ had to implement costly security upgrades to its data protection system.

    The ICO fined the MoJ £180,000 for its repeated security breaches. This costly fine could have been avoided if more diligence was present in the MoJ’s asset management program.

    Step 3.2: Dispose or Redeploy Assets

    3.1 Manage & Maintain

    3.2 Dispose or Redeploy

    This step will walk you through the following activities:

    3.2.1 Identify challenges with IT asset recovery and disposal

    3.2.2 Design hardware asset recovery and disposal workflows

    3.2.3 Build a hardware asset disposition policy

    This step involves the following participants:

    • Infrastructure Director/Manager
    • Asset Manager
    • Service Desk Manager
    • Operations (optional)

    Step Outcomes:

    • Defined process to determine when to redeploy vs. dispose of hardware assets
    • Process for recovering and redeploying hardware equipment
    • Process for safely disposing of assets that cannot be redeployed
    • Comprehensive asset disposition policy

    Balance the effort to roll out new equipment against the cost to maintain equipment when building your lifecycle strategy

    The image shows two line graphs. The graph on the left is titled: Desktop Refresh Rate by Company Size (based on Revenue). The graph on the right is titled: Laptop Refresh Rate by Company Size (based on Revenue). Each graph has four lines, defined by a legend in the centre of the image: yellow is small ($25mm); dark blue is Mid ($25-500MM); light blue is large ( data-verified=$500MM); and orange is Overall.">

    (Info-Tech Research Group; N=96)

    Determining the optimal length of time to continue to use equipment will depend on use case and equipment type

    Budget profiles Refresh methods

    Stretched

    Average equipment age: 7+ years

    To save money, some organizations will take a cascading approach, using the most powerful machines for engineers or scientists to ensure processing power, video requirements and drives will meet the needs of their applications and storage needs; then passing systems down to departments who will require standard-use machines. The oldest and least powerful machines are either used as terminals or disposed.

    Generous

    Average equipment age: 3 years

    Organizations that do not want to risk user dissatisfaction or potential compatibility or reliability issues will take a more aggressive replacement approach. These organizations often have less people assigned to end-user device maintenance and will not repair equipment outside of warranty. There is little variation in processing power among devices, with major differences determined by mobility and operating system.

    Cautious

    Average equipment age: 4 to 5 years

    Organizations that fit between the other two profiles will look to stretch the budget beyond warranty years, but will keep a close eye on maintenance requirements. Repairs needed outside of warranty will require an eye to costs, efforts, and subsequent administrative work of loaning equipment to keep the end user productive while waiting on service.

    Recommendations to keep users happy and equipment in prime form is to check condition at the 2-3 year mark, reimage at least once to improve performance, and have backup machines, if equipment starts to become problematic.

    Build a process to determine when and how to redeploy or dispose of hardware assets at end of use

    • When equipment is no longer needed for the function or individual to whom it was assigned, the Hardware Asset Manager needs to use data to ensure the right decision is made as to what to do with the asset.
    • End of use involves evaluating options for either continuing to use the equipment in another capacity or by another individual or determining that the asset has no remaining value to the organization in any capacity and it is time to retire it.
    • If the asset is retired, it may still have capacity for continued use outside of the organization or it may be disposed.

    Redeployment

    • Deliver the asset to a new user if it is no longer needed by the original user but still has value and usability.
    • Redeployment saves money and prevents unnecessary purchases.
    • Common when employees leave the company or a merge or acquisition changes the asset pool.

    VS.

    Disposal

    • When an asset is no longer of use to the organization, it may be disposed of.
    • Need to consider potential financial and public relations considerations if disposal is not done according to environmental legislation.
    • Need to ensure proper documentation and data removal is built into disposition policy.

    Use persistent documentation and communication to improve hardware disposal and recovery

    Warning! Poor hardware disposal and recovery practices can be caused by the following:

    1. Your IT team is too busy and stretched thin. Data disposal is one of many services your IT team is likely to have to deal with, but this service requires undivided attention. By standardizing hardware refreshes, you can instill more predictability with your hardware life cycles and better manage disposal.
    2. Poor inventory management. Outdated data and poor tracking practices can result in lost assets during the disposal phase. It only takes a single lost asset to cause a disastrous data breach in your supply chain.
    3. Obliviousness to disposal regulations. Electronic disposal and electronically stored data are governed by strict regulation.

    How do you improve your hardware disposal and recovery process?

    • A specific, controlled process needs to be in place to wipe all equipment and verify that it’s been wiped properly. Otherwise, companies will continue to spend money to protect data while equipment is in use, but overlook the dangerous implications of careless IT asset disposal. Create a detailed documentation process to track your assets every step of the way to ensure that data and applications are properly disposed of. Detailed documentation can also help bolster sustainability reporting for organizations wishing to track such data.
    • Better communication should be required. Most decommissioning or refresh processes use multiple partners for manufacturing, warehousing, data destruction, product resale, and logistics. Setting up and vetting these networks can take years, and even then, managing them can be like playing a game of telephone; transparency is key.

    Address three core challenges of asset disposal and recovery

    Asset Disposal

    Data Security

    Sixty-five percent of organizations cite data security as their top concern. Many data breaches are a result of hardware theft or poor data destruction practices.

    Choosing a reputable IT disposal company or data removal software is crucial to ensuring data security with asset disposal.

    Environmental

    Electronics contain harmful heavy metals such as mercury, arsenic, and cadmium.

    Disposal of e-waste is heavily regulated, and improper disposal can result in hefty fines and bad publicity for organizations.

    Residual value

    Many obsolete IT assets are simply confined to storage at their end of life.

    This often imposes additional costs with maintenance or storage fees and leaves a lot of value on the table through assets that could be sold or re-purposed within the organization.

    Identify challenges with IT asset recovery and disposal with a triple bottom line scorecard

    3.2.1 Identify challenges with IT asset recovery and disposal

    Participants

    • Infrastructure Director/Manager
    • Asset Manager
    • Service Desk Manager
    • Operations (optional)
    1. Divide the whiteboard into three boxes: Social, Economic, and Environmental.
    2. Divide each box into columns like the one shown below:
    Economic
    Challenge Objectives Targets Initiatives
    No data capture during disposal Develop reporting standards 80% disposed assets recorded Work with Finance to develop reporting procedure
    Idle assets Find resale market/dispose of idle assets 50% of idle assets disposed of within the year Locate resale vendor and disposal service
    1. Ask participants to list challenges associated with each area.
    2. Once challenges facing recovery and disposal have been exhausted from the group, assign a significance of 1-5 (1 being the lowest and 5 being the highest) to each challenge.
    3. Discuss the most significant challenges and how they might be addressed through the next steps of building recovery & disposal processes.

    Build a process for recovery and redeployment of hardware

    • Having hardware standards in place makes redeploying easier by creating a larger pool of possible users for a standardized asset.
    • Most redeployment activities will be carried out by the Help Desk as a service request ticket, so it is important to have clear communication and guidelines with the Help Desk as to which tasks need to be carried out as part of the request.

    Ensure the following are addressed:

    • Where will equipment be stored before being redeployed?
    • Will shipping be required and are shipping costs factored into analysis?
    • Ensure equipment is cleaned before it is redeployed.
    • Do repairs and reconfigurations need to be made?
    • How will software be removed and licenses harvested and reported to Software Asset Manager?
    • How will data be securely wiped and protected?

    The image shows a work process in flowchart format titled Equipment Recovery. The chart is divided into two sections, listed on the left: Business Manager/HR and Desktop Support Team.

    Define the process for safely disposing of assets that cannot be redeployed

    Asset Disposal Checklist

    1. Review the data stored on the device.
    2. Determine if there has been any sensitive or confidential information stored.
    3. Remove all sensitive/confidential information.
    4. Determine if software licenses are transferable.
    5. Remove any non- transferable software prior to reassignment.
    6. Update the department’s inventory record to indicate new individual assigned custody.
    7. In the event of a transfer to another department, remove data and licensed software.
    8. If sensitive data has been stored, physically destroy the storage device.
    • Define the process for retiring and disposing of equipment that has reached replacement age or no longer meets minimum conditions or standards.
    • Clearly define the steps that need to be taken both before and after the involvement of an ITAD partner.

    The image shows a flowchart titled Equipment Disposal. It is divided into two sections, labelled on the left as: Desktop Support Team and Asset Manager.

    Design hardware asset recovery and disposal workflows

    3.2.2 Design hardware asset recovery and disposal policies and workflows

    Participants

    • Infrastructure Director/Manager
    • Asset Manager
    • Service Desk Manager
    • Operations (optional)

    Document

    Document in the Standard Operating Procedures, Sections 11 and 12

    Document each step in the recovery and disposal process in two separate workflows using notecards or on a whiteboard. Identify the challenges faced by your organization and strategize potential solutions.

    1. Keeping in mind current challenges around hardware asset recovery and disposal, design the target state for both the asset recovery and disposal processes.
    2. Outline each step of the process and be as granular as possible.
    3. When you are satisfied that each step is accurately captured, use a second color of notecard to document any challenges, inefficiencies, or pains associated with each step. Consider further documenting the time on each task.
    4. Examine each challenge or pain point. Discuss whether or not there is a clear solution to the problem. If so, document the solution and amend the workflow. If not, engage in a broader discussion of possible solutions, taking into account people, processes, and available technology.
    5. Review the checklists on the previous slides to ensure all critical tasks are accounted for in your process workflows.

    Add equipment disposition to asset lifecycle decisions to meet environmental regulations and mitigate risk

    Although traditionally an afterthought in asset management, IT asset disposition (ITAD) needs to be front and center. Increase focus on data security and concern surrounding environmental sustainability and develop an awareness of the cost efficiencies possible through best-practices disposition.

    Optimized ITAD solutions:

    1. Protect sensitive or valuable data
    2. Support sustainability
    3. Focus on asset value recovery

    Info-Tech Insight

    A well-thought-out asset management program mitigates risk and is typically less costly than dealing with a large-scale data loss incident or an inappropriate disposal suit. Also, it protects your company’s reputation – which is difficult to put a price on.

    Partner with an ITAD vendor to support your disposition strategy

    Maximizing returns on assets requires knowledge and skills in asset valuation, upgrading to optimize market return, supply chain management, and packaging and shipping. It’s unlikely that the return will be adequate to justify that level of investment, so partnering with a full-service ITAD vendor is a no-brainer.

    • An ITAD vendor knows the repurpose and resale space better than your organization. They know the industry and have access to more potential buyers.
    • ITAD vendors can help your organization navigate costly environmental regulations for improper disposal of IT assets.

    Disposal doesn’t mean your equipment has to go to waste.

    Additionally, your ITAD vendor can assist with a large donation of hardware to a charitable organization or a school.

    Donating equipment to schools or non-profits may provide charitable receipts that can be used as taxable benefits.

    Before donating:

    • Ensure equipment is needed and useful to the organization.
    • Be prepared for an appraisal requirement. Receipts can only be issued for fair market value.
    • Prevent compromised data by thoroughly wiping or completely replacing drives.
    • Ensure official transfer of ownership to prevent liability if improper disposal practices follow.

    Info-Tech Insight

    Government assistance grants may be available to help keep your organization’s hardware up to date, thereby providing incentives to upgrade equipment while older equipment still has a useful life.

    Protect the organization by sufficiently researching potential ITAD partners

    Research ITAD vendors as diligently as you would primary hardware vendors.

    Failure to thoroughly investigate a vendor could result in a massive data breach, fines for disposal standards violations, or a poor resale price for your disposed assets. Evaluate vendors using questions such as the following:

    • Are you a full-service vendor or are you connected to a wholesaler?
    • Who are your collectors and processors?
    • How do you handle data wiping? If you erase the data, how many passes do you perform?
    • What do you do with the e-waste? How much is reused? How much is recycled?
    • Do you have errors and omissions insurance in case data is compromised?
    • How much will it cost to recycle or dispose of worthless equipment?
    • How much will I receive for assets that still have useful life?

    ITAD vendors that focus on recycling will bundle assets to ship to an e-waste plant – leaving money on the table.

    ITAD vendors with a focus on reuse will individually package salable assets for resale – which will yield top dollars.

    Info-Tech Insight

    To judge the success of a HAM overhaul, you need to establish a baseline with which to compare final results. Be sure to take HAM “snapshots” before ITAD partnering so it’s easy to illustrate the savings later.

    Work with ITAD partner or equipment supplier to determine most cost-effective method and appropriate time for disposal

    2-4 Two-to-four year hardware refresh cycle

    • Consider selling equipment to an ITAD partner who specializes in sales of refurbished equipment.
    • Consider donating equipment to schools or non-profits, possibly using an ITAD partner who specializes in refurbishing equipment and managing the donation process.

    5-7 Five-to-seven year hardware refresh cycle

    • At this stage equipment may still have a viable life, but would not be appropriate for school or non-profit donations, due to a potentially shorter lifespan. Consider selling equipment to an ITAD partner who has customers interested in older, refurbished equipment.

    7+ Seven or more years hardware refresh cycle

    • If keeping computers until they reach end of life, harvest parts for replacement on existing machines and budget for disposal fees.
    • Ask new computer supplier about disposal services or seek out ITAD partner who will disassemble and dispose of equipment in an environmentally responsible manner.

    Info-Tech Insight

    • In all cases, ensure hard drives are cleansed of data with no option for data recovery. Many ITAD partners will provide a drive erasure at DoD levels as part of their disposal service.
    • Many ITAD partners will provide analysts to help determine the most advantageous time to refresh.

    Ensure data security and compliance by engaging in reliable data wiping before disposition

    Failure to properly dispose of data can not only result in costly data breaches, but also fines and other regulatory repercussions. Choosing an ITAD vendor or a vendor that specializes in data erasure is crucial. Depending on your needs, there are a variety of data wiping methods available.

    Certified data erasure is the only method that leaves the asset’s hard drive intact for resale or donation. Three swipes is the bare minimum, but seven is recommended for more sensitive data (and required by the US Department of Defense). Data erasure applications may be destructive or non-destructive – both methods overwrite data to make it irretrievable.

    Physical destruction must be done thoroughly, and rigorous testing must be done to verify data irretrievability. Methods such as hand drilling are proven to be unreliable.

    Degaussing uses high-powered magnets to erase hard drives and makes them unusable. This is the most expensive option; degaussing devices can be purchased or rented.

    Info-Tech Best Practice

    Data wiping can be done onsite or can be contracted to an ITAD partner. Using an ITAD partner can ensure greater security at a more affordable price.

    Make data security a primary driver of asset disposition practices

    It is estimated that 10-15% of data loss cases result from insecure asset disposal. Protect yourself by following some simple disposition rules.

    1. Reconcile your data onsite
    • Verify that bills of landing and inventory records match before assets leave. Otherwise, you must take the receiver’s word on shipment contents.
  • Wipe data at least once onsite
    • Do at least one in-house data wipe before the assets leave the site for greater data security.
  • Transport promptly after data wiping
    • Prompt shipment will minimize involvement with the assets, and therefore, cost. Also, the chance of missing assets will drop dramatically.
  • Avoid third-party transport services
    • Reputable ITAD companies maintain strict chain of custody control over assets. Using a third party introduces unnecessary risk.
  • Keep detailed disposition records
    • Records will protect you in the event of an audit, a data loss incident, or an environmental degradation claim. They could save you millions.
  • Wipe all data-carrying items
    • Don’t forget cell phones, fax machines, USB drives, scanners, and printers – they can carry sensitive information that can put the organization at risk.
  • Only partner with insured ITAD vendors
    • You are never completely out of danger with regards to liability, but partnering with an insured vendor is potent risk mitigation.
  • Work these rules into your disposition policy to mitigate data loss risk.

    Support your HAM efforts with a comprehensive disposition policy

    3.2.3 Build a Hardware Asset Disposition Policy

    Implementation of a HAM program is a waste of time if you aren’t going to maintain it. Maintenance requires the implementation of detailed policies, training, and an ongoing commitment to proper management.

    Use Info-Tech’s Hardware Asset Disposition Policy to:

    1. Establish and define clear standards, procedures, and restrictions surrounding disposition.
    2. Ensure continual compliance with applicable data security and environmental legislation.
    3. Assign specific responsibilities to individuals or groups to ensure ongoing adherence to policy standards and that costs or benefits are in line with expectations.

    Phase 3 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Maintain & Dispose

    Proposed Time to Completion: 4 weeks

    Start with an analyst kick-off call:

    • Discuss inventory management best practices.
    • Build process for moves, adds, and changes.
    • Build process for hardware maintenance.
    • Define policies for maintaining asset security.

    Then complete these activities…

    • Build a MAC policy and request form.
    • Build workflows to document user MAC processes.
    • Design processes and policies for hardware maintenance, warranty, and support documentation handling.
    • Build an asset security policy.

    With these tools & templates:

    • Standard Operating Procedures
    • Asset Security Policy

    Step 3.2: Dispose or Redeploy Assets

    Review findings with analyst:

    • Discuss when to dispose vs. redeploy assets.
    • Build process for redeploying vs. disposing of assets.
    • Review ITAD vendors.

    Then complete these activities…

    • Identify challenges with IT asset recovery and disposal.
    • Design hardware asset recovery and disposal workflows.
    • Build a hardware asset disposition policy.

    With these tools & templates:

    • Standard Operating Procedures
    • Asset Recovery Workflow
    • Asset Disposal Workflow
    • Hardware Asset Disposition Policy

    Phase 3 Insight: Not all assets are created equal. Taking a blanket approach to asset maintenance and security is time consuming and costly. Focus on the high-cost, high-use, and data-sensitive assets first.

    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:

    3.1.4 Revise or create an asset security policy

    Discuss asset security challenges within the organization; brainstorm reasons the challenges exist and process changes to address them. Document a new asset security policy.

    3.2.2 Design hardware asset recovery and disposal workflows

    Document each step in the hardware asset recovery and disposal process, including all decision points. Examine challenges and amend the workflow to address them.

    Phase 4

    Plan Budget Process and Build Roadmap

    Implement Hardware Asset Management

    Cisco deployed an enterprise-wide re-education program to implement asset management

    CASE STUDY

    Industry Networking

    Source Cisco IT

    Challenge

    Even though Cisco Systems had designed a comprehensive asset management program, implementing it across the enterprise was another story.

    An effective solution, complete with a process that could be adopted by everyone within the organization, would require extensive internal promotion of cost savings, efficiencies, and other benefits to the enterprise and end users.

    Cisco’s asset management problem was as much a cultural challenge as it was a process challenge.

    Solution

    The ITAM team at Cisco began discussions with departments that had been tracking and managing their own assets.

    These sessions were used as an educational tool, but also as opportunities to gather internal best practices to deploy across the enterprise.

    Eventually, Cisco introduced weekly meetings with global representation to encourage company-wide communication and collaboration.

    Results

    By establishing a process for managing PC assets, we have cut our hardware costs in half.” – Mark Edmonson, Manager – IT Services Expenses

    Cisco reports that although change was difficult to adopt, end-user satisfaction has never been higher. The centralized asset management approach has resulted in better contract negotiations through better data access.

    A reduced number of hardware and software platforms has streamlined tracking and support, and will only drive down costs as time goes on.

    Step 4.1: Plan Hardware Asset Budget

    Phase 4: Plan Budget & Build Roadmap

    4.1 Plan Budget

    4.2 Communicate & Build Roadmap

    This step will walk you through the following activities:

    4.1 Use Info-Tech’s HAM Budgeting Tool to plan your hardware asset budget

    This step involves the following participants:

    • IT Director
    • Asset Manager
    • Finance Department

    Step Outcomes

    • Know where to find data to budget for hardware needs accurately
    • Learn how to manage a hardware budget
    • Plan hardware asset budget with a budgeting tool

    Gain control of the budget to increase the success of HAM

    A sophisticated hardware asset management program will be able to uncover hidden costs, identify targets for downsizing, save money through redistributing equipment, and improve forecasting of equipment to help control IT spending.

    While some asset managers may not have experience managing budgets, there are several advantages to ITAM owning the hardware budget:

    • Be more involved in negotiating pricing with suppliers.
    • Build better relationships with stakeholders across the business.
    • Forecast requirements more accurately.
    • Inform benchmarks for hardware performance.
    • Gain more responsibility and have a greater influence on purchasing decisions.
    • Directly impact the reduction in IT spend.
    • Manage the asset database more easily and have a greater understanding of hardware needs.
    • Build a continuous rolling refresh.

    Use ITAM data to forecast hardware needs accurately and realistically

    Your IT budget should be realistic, accounting for business needs, routine maintenance, hardware replacement costs, unexpected equipment failures, and associated support and warranty costs. Know where to find the data you need and who to work with to forecast hardware needs as accurately as possible.

    What type of data should I take into account?

    Plan for:

    • New hardware purchases required
      • Planned refreshes based on equipment lifecycle
      • Inventory for break and fix
      • Standard equipment for new hires
      • Non-standard equipment required
      • Hardware for planned projects
      • Implementation and setup costs
      • Routine hardware implementation
      • Large hardware implementation for projects
      • Support and warranty costs

    Take into account:

    • Standard refresh cycle for each hardware asset
    • Amount of inventory to keep on hand
    • Length of time from procurement to inventory
    • Current equipment costs and equipment price increases
    • Equipment depreciation rates and resale profits

    Where do I find the information I need to budget accurately?

    • Work with HR to forecast equipment needs for new hires.
    • Work with the Infrastructure Manager to forecast devices and equipment needed for approved and planned projects.
    • Use the asset management database to forecast hardware refresh and replacement needs based on age and lifecycle.
    • Work with business stakeholders to ensure all new equipment needs are accounted for in the budget.

    Use Info-Tech’s HAM Budgeting Tool to plan your hardware asset budget

    4.1.1 Build HAM budget

    This tool is designed to assist in developing and justifying the budget for hardware assets for the upcoming year. The tool will allow you to budget for projects requiring hardware asset purchases as well as equipment requiring refresh and to adjust the budget as needed to accommodate both projects and refreshes. Follow the instructions on each tab to complete the tool.

    The hardware budget should serve as a planning and communications tool for the organization

    The most successful relationships have a common vocabulary. Thus, it is important to translate “tech speak” into everyday language and business goals and initiatives as you plan your budget.

    One of the biggest barriers that infrastructure and operations team face with regards to equipment budgeting is the lack of understanding of IT infrastructure and how it impacts the rest of the organization. The biggest challenge is to help the rest of the organization overcome this barrier.

    There are several things you can do to overcome this barrier:

    • Avoid using technical terms or jargon. Terms many would consider common knowledge, such as “WLAN,” are foreign to many.
    • Don’t assume the business knows how the technology you’re referring to will impact their day-to-day work. You will need to demonstrate it to them.
    • Help the audience understand the business impact of not implementing each initiative. What does this mean for them?
    • Discuss the options on the table in terms of the business value that the hardware can enable. Review how deferring refresh projects can impact user-facing applications, systems, and business unit operations.
    • Present options. If you can’t implement everything on the project list, present what you can do at different levels of funding.

    Info-Tech Insight

    Err on the side of inviting more discussion. Your budgeting process relies on business decision makers and receiving actionable feedback requires an ongoing exchange of information.

    Help users understand the importance of regular infrastructure refreshes

    Getting business users to support regular investments in maintenance relies on understanding and trust. Present the facts in plain language. Provide options, and clearly state the impact of each option.

    Example: Your storage environment is nearing capacity.

    Don’t:

    Explain the project exclusively in technical terms or slang.

    We’re exploring deduping technology as well as cheap solid state, SATA, and tape storage to address capacity.”

    Do:

    • Explain impact in terms that the business can understand.

    Deduplication technology can reduce our storage needs by up to 50%, allowing us to defer a new storage purchase.”

    • Be ready to present project alternatives and impacts.

    Without implementing deduplication technology, we will need to purchase additional storage by the end of the year at an estimated cost of $25,000.”

    • Connect the project to business initiatives and strategic priorities.

    This is a cost-effective technique to increase storage capacity to manage annual average data growth at around 20% per year.

    Step 4.2: Build Communication Plan and Roadmap

    Phase 4: Plan Budget & Build Roadmap

    4.1 Plan Budget

    4.2 Communicate & Build Roadmap

    This step will walk you through the following activities:

    4.2 Develop a HAM implementation roadmap

    This step involves the following participants:

    • CIO
    • IT Director
    • Asset Manager
    • Service Desk Manager

    Step Outcomes

    • Documented end-user hardware asset management policies
    • Communications plan to achieve support from end users and other business units
    • HAM implementation roadmap

    Educate end users through ITAM training to increase program success

    As part of your communication plan and overall HAM implementation, training should be provided to end users within the organization.

    All facets of the business, from management to new hires, should be provided with ITAM training to help them understand their role in the project’s success.

    ITAM solutions are complex by nature with both business process and technical knowledge required to use them correctly. Keep the message appropriate to the audience – end users don’t need to know the complete process, but will need to know policy and how to request.

    Management may have priorities that appear to clash with new processes. Engage management by making them aware of the benefits and importance of ITAM. Include the benefits and consequences of not implementing ITAM in your education approach. Encourage them to support efforts by reinforcing your messages to end users.

    New hires should have ITAM training bundled into their onboarding process. Fresh minds are easier to train and the ITAM program will be seen as an organizational standard, not merely a change.

    Policy documents can help summarize end users’ obligations and clarify processes. Consider an IT Resources Acceptable UsePolicy.

    "The lowest user is the most important user in your asset management program. New employees are your most important resource. The life cycle of the assets will go much smoother if new employees are brought on board." – Tyrell Hall, ITAM Program Coordinator

    Info-Tech Insight

    During training, you should present the material through the lens of “what’s in it for me?” Otherwise, you risk alienating end users through implementing organizational change viewed as low value.

    Include policy design and enforcement in your communication plan

    • Hardware asset management policies should define the actions to be taken to protect and preserve technology assets from failure, loss, destruction, theft, or damage.
    • Implementing asset management policies enforces the notion that the organization takes its IT assets and the management of them seriously, and will help ensure the benefits of ITAM are achieved.
    • Designing, approving, documenting, and adopting one set of standard ITAM policies for each department to follow will ensure the processes are enforced equally across the organization.
    • Good ITAM policies answer the “what, how, and why” of IT asset management, provide the means for ITAM governance, and provide a basis for strategy and decision making.

    Info-Tech Insight

    Use policy templates to jumpstart your policy development and ensure policies are comprehensive, but be sure to modify and adapt policies to suit your corporate culture or they will not gain buy-in from employees. For a policy to be successful, it must be a living document and have participation and involvement from the committees and departments to whom it will pertain.

    Use Info-Tech’s policy templates to build HAM policies

    4.2.1 Build HAM policies

    Use these HAM policy templates to get started:

    Information Technology Standards Policy

    This policy establishes standards and guidelines for a company’s information technology environment to ensure the confidentiality, integrity, and availability of company computing resources.

    Desktop Move/Add/Change Policy

    This desktop move/add/change policy is put in place for users to request to change their desktop computing environments. This policy applies configuration changes within a company.

    Purchasing Policy

    The purchasing policy helps to establish company standards, guidelines, and procedures for the purchase of all information technology hardware, software, and computer-related components as well as the purchase of all technical services.

    Hardware Asset Disposition Policy

    This policy assists in creating guidelines around disposition in the last stage of the asset lifecycle.

    Additional policy templates

    Info-Tech Insight

    Use policy templates to jumpstart your policy development and ensure policies are comprehensive, but modify and adapt them to suit your corporate culture or they will not gain buy-in from employees. For a policy to be successful, it must be a living document and have participation from the committees and departments to whom it will pertain.

    Create a communication plan to achieve end-user support and adherence to policies

    Communication is crucial to the integration and overall implementation of your ITAM program. An effective communication 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.

    Use the variety of components as part of your communication plan in order to reach the organization.

    1. Advertise successes.
    • Regularly demonstrate the value of the ITAM program with descriptive statistics focused on key financial benefits.
    • Share data with the appropriate personnel; promote success to obtain further support from senior management.
  • Report and share asset data.
    • Sharing detailed asset-related reports frequently gives decision makers useful data to aid in their strategy.
    • These reports can help your organization prepare for audits, adjust asset budgeting, and detect unauthorized assets.
  • Communicate the value of ITAM.
    • Educate management and end users about how they fit into the bigger picture.
    • Individuals need to know that their behaviors can adversely affect data quality and, ultimately, lead to better decision making.
  • Develop a communication plan to convey the right messages

    4.2.2 Develop a communication plan to convey the right messages

    Participants

    • CIO
    • IT Director
    • Asset Manager
    • Service Desk Manager

    Document

    Document in the HAM Communication Plan

    1. Identify the groups that will be affected by the HAM program as those who will require communication.
    2. For each group requiring a communication plan, identify the following:
    • Benefits of HAM for that group of individuals (e.g. better data, security).
    • The impact the change will have on them (e.g. change in the way a certain process will work).
    • Communication method (i.e. how you will communicate).
    • Timeframe (i.e. when and how often you will communicate the changes).
  • Complete this information in a table like the one below and document in the Communication Plan.
  • Group Benefits Impact Method Timeline
    Service Desk Improve end-user device support Follow new processes Email campaign 3 months
    Executives Mitigate risks, better security, more data for reporting Review and sign off on policies
    End Users Smoother request process Adhere to device security and use policies
    Infrastructure Faster access to data and one source of truth Modified processes for centralized procurement and inventory

    Implement ITAM in a phased, constructive approach

    • One of the most difficult decisions to make when implementing ITAM is: “where do we start?”
    • The pyramid to the right mirrors Maslow’s hierarchy of needs. The base is the absolute bare minimum that should be in place, and each level builds upon the previous one.
    • As you track up the pyramid, your ITAM program will become more and more mature.

    Now that your asset lifecycle environment has been constructed in full, it’s time to study it. Gather data about your assets and use the results to create reports and new solutions to continually improve the business.

    • Asset Data
    • Asset Protection: safely protect and dispose of assets once they are mass distributed throughout your organization.
    • Asset Distribution: determine standards for asset provisioning and asset inventory strategy.
    • Asset Gathering: define what assets you will procure, distribute, and track. Classifying your assets by tier will allow you to make decisions as you progress up the pyramid.

    ↑ ITAM Program Maturity

    Integrate your HAM program into the organization to assist its implementation

    The HAM program cannot perform on its own – it must be integrated with other functional areas of the organization in order to maintain its stability and support.

    • Effective IT asset management is supported by a comprehensive set of processes as part of its implementation.
    • For example, integration with the purchasing/procurement team is required to gather hardware and software purchase data to control asset costs and mitigate software license compliance risk.
    • Integration with Finance is required to support internal cost allocations and charge backs.

    To integrate your ITAM program into your organization effectively, a clear implementation roadmap needs to be designed. Prioritize “quick wins” in order to demonstrate success to the business early and gain buy-in from your team. Long-term goals should be designed that will be supported by the outcomes of the short-term gains of your ITAM program.

    Short-term goal Long-term goal
    Identify inventory classification and tool (hardware first) Hardware contract data integration (warranty, maintenance, lease)
    Create basic ITAM policies and processes Continual improvement through policy impact review and revision
    Implement ITAM auto-discovery tools Software compliance reports, internal audits

    Info-Tech Insight

    Installing an ITAM tool does not mean you have an effective asset management program. A complete solution needs to be built around your tool, but the strength of ITAM comes from processes embedded in the organization that are shaped and supported by your ITAM data.

    Develop an IT hardware asset management implementation roadmap

    4.2.3 Develop a HAM implementation roadmap

    Participants

    • CIO
    • IT Director
    • Asset Manager
    • Service Desk Manager

    Document

    Document in the IT Hardware Asset Management Implementation Roadmap

    1. Identify up to five streams to work on initiatives for the hardware asset management project.
    2. Fill out key tasks and objectives for each process. Assign responsibility for each task.
    3. Select a start date and end date for each task. See tab 1 of the tool for instructions on which letters to input for each stage of the process.
    4. Once your list is complete, open tab 3 of the tool to see your completed sunshine diagram.
    5. Keep this diagram visible for your team and use it as a guide to task completion as you work towards your future-state value stream.

    Focus on continual improvement to sustain your ITAM program

    Periodically review the ITAM program in order to achieve defined goals, objectives, and benefits.

    Act → Plan → Do → Check

    Once ITAM is in place in your organization, a focus on continual improvement creates the following benefits:

    • Remain in sync with the business: your asset management program reflects the current and desired future states of your organization at the time of its creation. But the needs of the business change. As mentioned previously, asset management is a dynamic process, so in order for your program to keep pace, a focus on continual improvement is needed.
      • For example, imagine if your organization had designed your ITAM program before cloud-based solutions were an option. What if your asset classification scheme did not include personal devices or tablets or your asset security policy lacked a section on BYOD?
    • Create funding for new projects through ITAM continual improvement: one of the goals is to save money through more efficient use of your assets by “sweating” out underused hardware and software.
      • It may be tempting to simply present the results to Finance as savings, but instead, describe the results as “available funds for other projects.” Otherwise, Finance may view the savings as a nod to restrict IT’s budget and allocate funds elsewhere. Make it clear that any saved funds are still required, albeit in a different capacity.

    Info-Tech Best Practice

    Look for new uses for ITAM data. Ask management what their goals are for the next 12-18 months. Analyze the data you are gathering and determine how your ITAM data can assist with achieving these goals.

    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.

    Step 4.1: Plan Budget

    Start with an analyst kick-off call:

    • Know where to find data to budget for hardware needs accurately.
    • Learn how to manage a hardware budget.

    Then complete these activities…

    • Plan hardware asset budget.

    With these tools & templates:

    HAM Budgeting Tool

    Step 4.2: Communicate & Roadmap

    Review findings with analyst:

    • Develop policies for end users.
    • Build communications plan.
    • Build an implementation roadmap.

    Then complete these activities…

    • Build HAM policies.
    • Develop a communication plan.
    • Develop a HAM implementation roadmap.

    With these tools & templates:

    HAM policy templates

    HAM Communication Plan

    HAM Implementation Roadmap

    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:

    4.1.1 Build a hardware asset budget

    Review upcoming hardware refresh needs and projects requiring hardware purchases. Use this data to forecast and budget equipment for the upcoming year.

    4.2.2 Develop a communication plan

    Identify groups that will be affected by the new HAM program and for each group, document a communications plan.

    Insight breakdown

    Overarching Insights

    HAM is more than just tracking inventory. A mature asset management program provides data for proactive planning and decision making to reduce operating costs and mitigate risk.

    ITAM is not just IT. IT leaders need to collaborate with Finance, Procurement, Security, and other business units to make informed decisions and create value across the enterprise.

    Treat HAM like a process, not a project. HAM is a dynamic process that must react and adapt to the needs of the business.

    Phase 1 Insight

    For asset management to succeed, it needs to support the business. Engage business leaders to determine needs and build your HAM program around these goals.

    Phase 2 Insight

    Bridge the gap between IT and Finance to build a smoother request and procurement process through communication and routine reporting. If you’re unable to affect procurement processes to reduce time to deliver, consider bringing inventory onsite or having your hardware vendor keep stock, ready to ship on demand.

    Phase 3 Insight

    Not all assets are created equal. Taking a blanket approach to asset maintenance and security is time consuming and costly. Focus on the high-cost, high-use, and data-sensitive assets first.

    Phase 4 Insight

    Deploying a fancy ITAM tool will not make hardware asset management implementation easier. Implementation is a project that requires you focus on people and process first – the technology comes after.

    Related Info-Tech research

    Implement Software Asset Management

    Build an End-User Computing Strategy

    Find the Value – and Remain Valuable – With Cloud Asset Management

    Consolidate IT Asset Management

    Harness Configuration Management Superpowers

    IT Asset Management Market Overview

    Bibliography

    Chalkley, Martin. “Should ITAM Own Budget?” The ITAM Review. 19 May 2011. Web.

    “CHAMP: Certified Hardware Asset Management Professional Manual.” International Association of Information Technology Asset Managers, Inc. 2008. Web.

    Foxen, David. “The Importance of Effective HAM (Hardware Asset Management).” The ITAM Review. 19 Feb. 2015. Web.

    Foxen, David. “Quick Guide to Hardware Asset Tagging.” The ITAM Review. 5 Sep. 2014. Web.

    Galecki, Daniel. “ITAM Lifecycle and Savings Opportunities – Mapping out the Journey.” International Association of IT Asset Managers, Inc. 16 Nov. 2014. Web.

    “How Cisco IT Reduced Costs Through PC Asset Management.” Cisco IT Case Study. 2007. Web.

    Irwin, Sherry. “ITAM Metrics.” The ITAM Review. 14 Dec. 2009. Web.

    “IT Asset and Software Management.” ECP Media LLC, 2006. Web.

    Rains, Jenny. “IT Hardware Asset Management.” HDI Research Brief. May 2015. Web.

    Riley, Nathan. “IT Asset Management and Tagging Hardware: Best Practices.” Samanage Blog. 5 March 2015. Web.

    “The IAITAM Practitioner Survey Results for 2016 – Lean Toward Ongoing Value.” International Association of IT Asset Managers, Inc. 24 May 2016. Web.

    Modernize the Network

    • Buy Link or Shortcode: {j2store}501|cart{/j2store}
    • member rating overall impact (scale of 10): 10.0/10 Overall Impact
    • member rating average dollars saved: $16,499 Average $ Saved
    • member rating average days saved: 8 Average Days Saved
    • Parent Category Name: Network Management
    • Parent Category Link: /network-management
    • Business units, functions, and processes are inextricably intertwined with less and less tolerance for downtime.
    • Business demands change rapidly but the refresh horizon for infrastructure remains 5-7 years.
    • The number of endpoint devices the network is expected to support is growing geometrically but historic capacity planning grew linearly.
    • The business is unable to clearly define requirements, paralyzing planning.

    Our Advice

    Critical Insight

    • Build for your needs. Don’t fall into the trap of assuming what works for your neighbor, your peer, or your competitor will work for you.
    • Deliver on what your business knows it needs as well as what it doesn’t yet know it needs. Business leaders have business vision, but this vision won’t directly demand the required network capabilities to enable the business. This is where you come in.
    • Modern technologies are hampered by vintage processes. New technologies demand new ways of accomplishing old tasks.

    Impact and Result

    • Use a systematic approach to document all stakeholder needs and rely on the network technical staff to translate those needs into design constraints, use cases, features, and management practices.
    • Spend only on those emerging technologies that deliver features offering direct benefits to specific business goals and IT needs.
    • Solidify the business case for your network modernization project by demonstrating and quantifying the hard dollar value it provides to the business.

    Modernize the Network Research & Tools

    Start here – read the Executive Brief

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

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

    1. Assess the network

    Identify and prioritize stakeholder and IT/networking concerns.

    • Modernize the Network – Phase 1: Assess the Network
    • Network Modernization Workbook

    2. Envision the network of the future

    Learn about emerging technologies and identify essential features of a modernized network solution.

    • Modernize the Network – Phase 2: Envision Your Future Network
    • Network Modernization Technology Assessment Tool

    3. Communicate and execute the plan

    Compose a presentation for stakeholders and prepare the RFP for vendors.

    • Modernize the Network – Phase 3: Communicate and Execute the Plan
    • Network Modernization Roadmap
    • Network Modernization Executive Presentation Template
    • Network Modernization RFP Template
    [infographic]

    Workshop: Modernize the Network

    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 Network

    The Purpose

    Understand current stakeholder and IT needs pertaining to the network.

    Key Benefits Achieved

    Prioritized lists of stakeholder and IT needs.

    Activities

    1.1 Assess and prioritize stakeholder concerns.

    1.2 Assess and prioritize design considerations.

    1.3 Assess and prioritize use cases.

    1.4 Assess and prioritize network infrastructure concerns.

    1.5 Assess and prioritize care and control concerns.

    Outputs

    Current State Register

    2 Analyze Emerging Technologies and Identify Features

    The Purpose

    Analyze emerging technologies to determine whether or not to include them in the network modernization.

    Identify and shortlist networking features that will be part of the network modernization.

    Key Benefits Achieved

    An understanding of what emerging technologies are suitable for including in your network modernization.

    A prioritized list of features, aligned with business needs, that your modernized network must or should have.

    Activities

    2.1 Analyze emerging technologies.

    2.2 Identify features to support drivers, practices, and pain points.

    Outputs

    Emerging technology assessment

    Prioritize lists of modernized network features

    3 Plan for Future Capacity

    The Purpose

    Estimate future port, bandwidth, and latency requirements for all sites on the network.

    Key Benefits Achieved

    Planning for capacity ensures the network is capable of delivering until the next refresh cycle and beyond.

    Activities

    3.1 Estimate port, bandwidth, and latency requirements.

    3.2 Group sites according to capacity requirements.

    3.3 Create standardized capacity plans for each group.

    Outputs

    A summary of capacity requirements for each site in the network

    4 Communicate and Execute the Plan

    The Purpose

    Create a presentation to pitch the project to executives.

    Compose key elements of RFP.

    Key Benefits Achieved

    Communication to executives, summarizing the elements of the modernization project that business decision makers will want to know, in order to gain approval.

    Communication to vendors detailing the network solution requirements so that proposed solutions are aligned to business and IT needs.

    Activities

    4.1 Build the executive presentation.

    4.2 Compose the scope of work.

    4.3 Compose technical requirements.

    Outputs

    Executive Presentation

    Request for Proposal/Quotation

    Build an IT Employee Engagement Program

    • Buy Link or Shortcode: {j2store}544|cart{/j2store}
    • member rating overall impact (scale of 10): 9.2/10 Overall Impact
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    • Parent Category Name: Engage
    • Parent Category Link: /engage
    • IT’s performance and stakeholder satisfaction with IT services hinge on IT’s ability to attract and retain top talent and to motivate teams to go above and beyond.
    • With the growing IT job market, turnover is a serious threat to IT’s ability to deliver seamless value and continuously drive innovation.
    • Engagement initiatives are often seen as being HR’s responsibility; however, IT leadership needs to take accountability for the retention and productivity of their employees in order to drive business value.

    Our Advice

    Critical Insight

    • Engagement is a two-way street. Initiatives must address a known need and be actively sought by employees – not handed down from management.
    • Engagement initiatives are useless unless they target the right issues. It can be tempting to focus on the latest perks and gadgets and ignore difficult issues. Use a systematic approach to uncover and tackle the real problems.
    • It’s time for IT leadership to step up. IT leaders have a much bigger impact on IT staff engagement than HR ever can. Leverage this power to lead your team to peak performance.

    Impact and Result

    • Info-Tech engagement diagnostics and accompanying tools will help you perform a deep dive into the root causes of disengagement on your team.
    • The guidance that accompanies Info-Tech’s tools will help you avoid common engagement program pitfalls and empower IT leaders to take charge of their own team’s engagement.

    Build an IT Employee Engagement Program Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to discover why engagement is critical to IT performance, review Info-Tech’s methodology, and understand how our tools will help you construct an effective employee engagement program.

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

    1. Measure employee engagement

    Use Info-Tech's Pulse or Full Engagement Surveys to measure employee engagement.

    • Improve Employee Engagement to Drive IT Performance – Phase 1: Measure Employee Engagement
    • Engagement Strategy Record
    • Engagement Communication Template

    2. Analyze results and ideate solutions

    Understand the drivers of engagement that are important for your team, and involve your staff in brainstorming engagement initiatives.

    • Improve Employee Engagement to Drive IT Performance – Phase 2: Analyze Results and Ideate Solutions
    • Engagement Survey Results Interpretation Guide
    • Full Engagement Survey Focus Group Facilitation Guide
    • Pulse Engagement Survey Focus Group Facilitation Guide
    • Focus Group Facilitation Guide Driver Definitions
    • One-on-One Manager Meeting Worksheet

    3. Select and implement engagement initiatives

    Select engagement initiatives for maximal impact, create an action plan, and establish open and ongoing communication about engagement with your team.

    • Improve Employee Engagement to Drive IT Performance – Phase 3: Select and Implement Engagement Initiatives
    • Summary of Interdepartmental Engagement Initiatives
    • Engagement Progress One-Pager
    [infographic]

    Workshop: Build an IT Employee Engagement 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 (Preparation) Run Engagement Survey

    The Purpose

    Select and run your engagement survey prior to the workshop.

    Key Benefits Achieved

    Receive an in-depth report on your team’s engagement drivers to form the basis of your engagement strategy.

    Activities

    1.1 Select engagement survey.

    1.2 Identify engagement program goals and metrics.

    1.3 Run engagement survey.

    Outputs

    Full or Pulse engagement survey report

    Engagement survey results interpretation guide

    2 Explore Engagement

    The Purpose

    To understand the current state of engagement and prepare to discuss the drivers behind it with your staff.

    Key Benefits Achieved

    Empower your leadership team to take charge of their own teams’ engagement.

    Activities

    2.1 Review engagement survey results.

    2.2 Finalize focus group agendas.

    2.3 Train managers.

    Outputs

    Customized focus group agendas

    3 Hold Focus Groups

    The Purpose

    Establish an open dialogue with your staff to understand what would improve their engagement.

    Key Benefits Achieved

    Employee-generated initiatives have the greatest chance at success.

    Activities

    3.1 Identify priority drivers.

    3.2 Identify engagement KPIs.

    3.3 Brainstorm engagement initiatives.

    3.4 Vote on initiatives within teams.

    Outputs

    Summary of focus groups results

    Identified engagement initiatives

    Identified engagement initiatives

    4 Select and Plan Initiatives

    The Purpose

    Learn the characteristics of successful engagement initiatives and build execution plans for each.

    Key Benefits Achieved

    Choose initiatives with the greatest impact on your team’s engagement, and ensure you have the necessary resources for success.

    Activities

    4.1 Select engagement initiatives with IT leadership.

    4.2 Create initiative project plans.

    4.3 Present project plans.

    4.4 Define implementation checkpoints.

    4.5 Develop communications plan.

    4.6 Define strategy for ongoing engagement monitoring.

    Outputs

    Engagement project plans

    Implementation and communication checkpoints

    Further surveys planned (optional)

    5 Additional Leadership Training

    The Purpose

    Select training modules that best address your team’s needs from Info-Tech’s modular leadership training program.

    Key Benefits Achieved

    Arm your IT leadership team with the key skills of effective leadership, tailored to their existing experience level.

    Activities

    5.1 Adopting an Integrated Leadership Mindset

    5.2 Optimizing Talent Leadership Practices

    5.3 Driving Diversity & Inclusion

    5.4 Fortifying Internal Stakeholder Relations

    5.5 Engaging Executives and the Board

    5.6 Crafting Your Leadership Brand

    5.7 Crafting and Delivering Compelling Presentations

    5.8 Communication & Difficult Conversations

    5.9 Conflict Management

    5.10 Performance Management

    5.11 Feedback & Coaching

    5.12 Creating a Culture of Personal Accountability

    Outputs

    Develop the skills to lead resourcefully in times of uncertainty

    Apply leadership behaviors across enterprise initiatives to deploy and develop talent successfully

    Develop diversity and inclusion practices that turn the IT function and leaders into transformative champions of inclusion

    Identify elements of effective partnering to maximize the impact of internal interactions

    Understand the major obstacles to CEO and board relevance and uncover the keys to elevating your internal executive profile

    Develop a leadership brand statement that demonstrates leadership competency and is aligned with the brand, mission, vision, and goals of the organization

    Identify the components of effective presentations and hone your presentation skills

    Gain the skills to confront and drive solutions from difficult situations

    Develop strategies to engage in conflict constructively and reach a resolution that benefits the team or organization

    Learn to identify the root causes of low performance and develop the skills to guide employees through the process of improvement

    Adopt a behavior-focused coaching model to help managers sustain and apply effective coaching principles

    Understand how and when to encourage autonomy and how to empower employees to take success into their own hands

    GDPR, Implemented!

    GDPR, Are You really ready?

    It is now 2020 and the GDPR has been in effect for almost 2 years. Many companies thought: been there, done that. And for a while the regulators let some time go by.

    The first warnings appeared quickly enough. Eg; in September 2018, the French regulator warned a company that they needed to get consent of their customers for getting geolocation based data.

    That same month, an airline was hacked and, on top of the reputational damage and costs to fix the IT systems, it faced the threat of a stiff fine.

    Even though we not have really noticed, fines started being imposed as early as January 2019.

    But these fines, that is when you have material breaches...

    Wrong! The fines are levied in a number of cases. And to make it difficult to estimate, there are guidelines that will shape the decision making process, but no hard and fast rules!

    The GDPR is very complex and consists of both articles and associated recitals that you need to be in compliance with. it is amuch about the letter as it is about the spirit.

    We have a clear view on what most of those cases are.
    And more importantly, when you follow our guidelines, you will be well placed to answer any questions by your clients and cooperate with the regulator in a proactive way.

    They will never come after me. I'm too small.

    And besides, I have my privacy policy and cookie notice in place

    Company size has nothing to do with it.

    While in the beginning, it seemed mostly a game for the big players (for names, you have to contact us) that is just perception.

    As early as March 2018 a €10M revenue company was fined around €120,000. 2 days later another company with operating revenues of  around €6.2M was fined close to €200.000 for failing to abide by the DSRR stipulatons.

    Don't know what these are?
    Fill out the form below and we'll let you in on the good stuff.

     

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