avoiding itstrategies and investment disasters

Avoiding IT Strategy and

Investment Disasters

Richard Moulds

Warwick London Alumni Group

2nd May 2012

Introduction

Moulds Management Consulting Ltd

Objective

To enable you to identify at least 1 lesson and 1

resource

– Publications

– Organisations & Case Studies – Organisations & Case Studies

– Methodologies

– Fellow Alumni

to act on


Agenda • Introduction

• Objective

• IT Disasters

• Identify your 1st lesson

• Findings

– Research – Research

– Lessons Learned

– Making Decisions

• Identify your 2nd lesson

• IT Management Capability

• Summary Moulds Management Consulting Ltd

Agenda

• Introduction

• Objective

• IT Disasters

• Identify your 1st lesson

• Findings

• Individuals

• Teams

Capability Focus

• Findings • Research

• Lessons Learned

• Making Decisions

• Identify your 2nd lesson

• IT Management Capability

• Summary


• IT Management

• Business

Capability Focus

IT Disasters

• 1983 Faulty Soviet early warning system nearly causes WWIII

• 1990 The AT&T network collapse

• 1996 The explosion of the Ariane 5

• 1998 Mars Climate Observer metric problem

• 1997 Siemens and the passport system 1997 Siemens and the passport system

• 1999/2000. The two-digit year-2000 problem

• 2004 EDS and the Child Support Agency

• 2006 Airbus A380 suffers from incompatible software issues

• 2006 When the laptops exploded

• 2007 LA Airport flights grounded

Moulds Management Consulting Ltd http://www.zdnet.co.uk/news/it-at-work/2007/11/22/the-top-10-it-

disasters-of-all-time-39290976/

IT Disasters - Crash

• Overambitious

• Pride

• Presumption

• Pusillanimity• Pusillanimity

• Credulity

• Consultancy

• Tailored Software

• Concealment

• Buck Passing

• Lawyers Moulds Management Consulting Ltd

Identify your 1st lesson in pairs

1. Describe a recent IT disaster

from your own experience

2. Use the handout to identify

up to 3 Sins that you feel up to 3 Sins that you feel

were relevant to this

disaster

3. Choose one of these Sins

and discuss the likely root

cause of the problem


Tony Collins in 2012

http://blogs.computerworlduk.com/the-tony-collins-blog/Moulds Management Consulting Ltd

Tony Collins & David Bicknell in 2012

Moulds Management Consulting Ltd http://ukcampaign4change.com/

Research

Top 10 Practices H% L% Diff.%

Transferral of lessons learned 73 32 41

Quantification of benefits 52 14 38

All benefits identified 56 19 37

Organisational change reviews 62 30 32

Overstating benefits 22 51 -29

Benefits delivery planning 45 19 26

Benefits review and evaluation 62 39 23

Organisational change planning 44 23 21

External reference sites used 45 24 21

External benchmarking used 35 16 19

Moulds Management Consulting Ltd Cranfield University Information Systems Research Centre

Lessons Learned • Google searchs

• Lessons learned = 39.7 million hits

• We fail to LL = 29.2 million hits

• Lessons learned = identify lesson & act on it **

• Identify lessons by assessing the:– context

event

context

– event

– causes (root causes and critical success factors)

• Act on lessons

• 6 Case studies - 5 NHS Hospital Trusts & BHF

• Published in British Journal of Healthcare Management

** Milton N (2010) The Lessons Learned Handbook

http://www.amazon.co.uk/The-Lessons-Learned-Handbook-Knowledge-Based/dp/1843345870/ref=cm_cr_pr_product_top


British Journal of Healthcare

Management Dec. 2010


5 lessons identified Business Cases

• identify a list of measurable benefits, with named owners , that

stand up to objective scrutiny in the business case

• list all major risks, issues and lessons identified from at least one

reference site visit for each option see slide 15

• ensure the mobilisation of staff in future projects includes a role

Capabilities

ensure the mobilisation of staff in future projects includes a role

model approach, led by the project sponsor on how to raise and

resolve difficult issues see slides 17 & 18

Decision Making & Governance

• establish decision-making processes for complex, innovative

projects that use a proven process see slide 16

• establish a similar approach to governance for identifying and

acting on lessons as used for corporate and patient risks.


Decision Making

Risks, Issues & LessonsRisks, Issues & Lessons

Complex Decisions

Personality Types

Business Teams

Accountability & Capability

Risks, issues & lessons

Risks- what could go wrong ?

Issues- what has gone wrong ?

Identify and act on lessons


Disaster = Multiple, Major

Issues

Complex Decisions People who Are responsible for

Recommend Make a proposal, gather input, provide data and analysis to make a sensible choice in a timely fashion

Consulting with input providers-hearing and incorporating their views and winning their buy in

Agree Negotiating a modified proposal with the recommender if they have evidence based concerns about the original proposals

Escalating unresolved issues to the decider if the A and R cant resolve differencesresolve differences

Perform Executing the decision once it is made

Seeing that the decision is implemented effectively

Input Providing relevant facts to the recommender that shed light on the proposals feasibility and practical implications

Decide Serving as the single point of accountability

Bringing the decision to closure by resolving any impasses in the decision making process

Committing the organisation to implementing the decision

Moulds Management Consulting Ltd HBR Jan 2006 - Who has the D? How clear decision roles enhance organisational performance

http://www.bain.com/publications/articles/who-has-d-how-clear-decision-roles-enhance-organizational-performance.aspx

Personality Types

MYERS BRIGGS Extraversion ( E ) Introversion (I)

Sensing (S) Intuition (N)Sensing (S) Intuition (N)

Thinking (T) Feeling (F)

Judging (J) Perceiving (P)


Business Teams • IT and Project Management is still a relatively

young profession

• Engineers, Lawyers, Accountants, Doctors 1818 -1880

• IT, Project Managers 1957-1975

• Balance of Business Teams• Balance of Business Teams– What is the frequency of HR, Finance & IT agenda

items in the last 12 months?

– IT projects or Business IT projects ?

• People & project management– Includes role model leadership, conflict management,

behaviours, learning and development

Balanced business teams including IT Moulds Management Consulting Ltd

Accountability & Capability

Sponsor/SROC level sponsor on top 10 projects

Senior UserProject

Manager


5 lessons identified – capabilities eg the mobilisation of staff in future projects includes a role model

approach, led by the project sponsor on how to raise and resolve difficult

issues

Identify your 2nd lesson in pairs

1. Describe a recent IT disaster

from your own experience

2. Use the handout to identify

up to 3 Sins that you feel up to 3 Sins that you feel

were relevant to this

disaster

3. Choose one of these Sins

and discuss the likely root

cause of the problem


IT Management Capability

Developed by the Innovation Value Institute (IVI)

Developed by the Innovation Value Institute (IVI)The IT Capability Maturity FrameworkThe IT Capability Maturity Framework

Steering patronsOptimize value from IT

• Defines maturity profiles across IT domains to transform organizations from cost center to value center

• 33 Critical Capabilities, each with 5 levels of maturity

• Provides a holistic view of maturity, with ability to share amongst peers

• Non-profit, open innovation consortium with membership from leading industry IT end-users, vendors, consulting firms, government, non-profit and academic organizations

• More than 75 organizations worldwide

ability to share amongst peers

Provision of improvement roadmaps

• Assists CIOs and senior IT decision-makers evaluate their IT organization, industry benchmark trends and clearly identify next steps

Research base

• Based on a framework originally developed by Intel IT

• Refined and extended by the Innovation Value Institute (www.ivi.ie)

• Reviewed and tested with 300+ CIOs plus latest academic thinking


Managing IT Like a Business

Managing the IT Budget

Managing the IT Capability

Managing IT for Business Value

ITGIT Leadership & Governance FF Funding & Financing EAM

Enterprise Architecture Management TCO

Total Cost of Ownership

BPMBusiness Process Management BGM Budget Management TIM

Technical Infrastructure Management BAR

Benefits Assessment & Realization

BP Business Planning PPPPortfolio Planning & Prioritization PAM

People Asset Management PM Portfolio Management

SP Strategic Planning BOPBudget Oversight & Performance Analysis KAM

Knowledge Asset Management

DSMDemand & Supply Management RAM

Relationship Asset Management

CFPCapacity Forecasting & Planning RDE

Research, Development, & Engineering

• Each critical capability has five levels of

The Framework

RM Risk Management SD Solutions Delivery

AA Accounting & Allocation SRP Service Provisioning

ODPOrganization Design & Planning UTM

User Training Management

SRC Sourcing UEDUser Experience Design

IMInnovation Management� PPM

programme & Project Management

SAIService Analytics & Intelligence SUM Supplier Management

SICT Sustainable ICT CAMCapability Assessment & Management

five levels of maturity ranging from ‘Initial’ to ‘Optimizing’

Increasing maturity improves IT ability to deliver on key priorities


IT-CMF: Maturity of discrete Critical ProcessesDifferences in perceived current maturity by Business Area

Ad

va

nce

dA

dva

nce

dO

ptim

isin

gO

ptim

isin

g

IM&T Operations

Initia

lIn

itia

lB

asic

Ba

sic

Inte

rm-

Inte

rm-


IT-CMF: Importance of discrete Critical ProcessesDifferences in perceived importance by Business Area

4455

IM&T Operations

1122

33

Benchmark: n = 31


Summary

Individuals & teams– Lessons learned =

identify lesson and act

– Mitigate risks by acting Risks– Mitigate risks by acting on lessons to avoid issues

– Better decisions rely on evidence + ideas + objectivity + empathy


Risks

IssuesLessons

MYERS BRIGGS

Sensing Intuition

Thinking Feeling

Summary

IT & Business Management

– Accountabilities & capabilities - act on lessons &

knowledge

– Balanced business teams, including IT

– Business IT Plans & ambitions > or = or < IT – Business IT Plans & ambitions > or = or < IT

management capability

– Determine where you, your business and your IT

suppliers are/need to be in the IT capability chain


Questions & Comments

• Richard Moulds

• Moulds Management Consulting

Limited

• 28 Eggbridge Lane,

Waverton,

Chester, Chester,

CH3 7PE

• [email protected]

• http://www.linkedin.com/in/rich

ardmoulds

• M: 07834 320979


SPARE SLIDES SPARE SLIDES


4. Highly

Successful

3. Successful

Sound business cases

based on achievable

Benefit delivery:

Delivery Planning - organisational

change

& benefits.

Project selection:

Portfolio management.

Business cases –

identification of benefits.

Benefit and change reviews

Project delivery:

Business cases-

identification of costs.

Key practices

to be improved to

increase maturity

level and success

Life cycle approach

to benefit management.

Demand led with

business ownership of

benefit delivery plans and

a comprehensive review

process.

1. Unsuccessful

2. Moderately

Successful

Inadequate and inconsistent use of

proven methodologies. Unrealistic

business cases, limited business

involvement in all practices. Very

weak review processes.

Sound IT methodologies, but

ineffective portfolio management and

business cases are cost rather than

benefit based. IT methodologies

dominate with insufficient business

involvement in business cases,

implementation and review.

based on achievable

benefits but ineffective

benefit delivery and

change planning, with

insufficient business

ownership &

involvement.

identification of costs.

Technology and

process change

planning. TCQ

reviews.

Characteristics

of the 4

levels of maturityMoulds Management Consulting Ltd

avoiding itstrategies and investment disasters

Business

moulds management

future projects

business cases

issues amp

business teams

project sponsor

british journal

2nd lesson