removing the “i” from it

Removing the “I” from IT“An outside-in look at IT as a Customer Service organization”

Keynote Speaker:

Lorenzo C. Hines, Sr.

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CIO Summit 2015

Opening An Outside-in Look At IT

November 2015 Lorenzo C. Hines, Sr.

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The CIO Role – Past and Present An Outside-in Look At IT

• Past – CIOs reported to the COO/CFO (had not meaningful power)• Was expected to just keep the lights on

• Present – CIOs are now beginning to have a seat at “the Big Table” with the other C-level executives• Expected to be innovative• Expected to increase revenue/sales/customer base• Expected to help increase market share

• This plays a significant role in the mindset of the IT team • The systems are not IT’s, they are the business• IT does not own the systems, we are just the keepers• We are partners with and consultants to the business, not the overseer of

the business


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The Numbers Don’t Lie An Outside-in Look At IT

The Numbers Don’t Lie

• $1.9B in implemented projects go unused annually• 27% of all projects are not fully utilized by the biz• 37% of business system users say IT implements

projects without consulting them/their department• 62% of business system users say they feel like IT

exists in a bubble• 57% of business system user wish IT would

communication more/better• 35% of IT executives say they do not consistently

deliver key projects on time


*Derived from PEW Research May 2015

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Food For Thought An Outside-in Look At IT


"We can't solve problems by using the same kind of thinking we used when we created them."

- Albert Einstein

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Management / IT Disconnects An Outside-in Look At IT


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• Disaffection with IT– Lack of rapid evolution to technology trends that effect the

business– Platform “pacing” problems– Awareness of outsourcing trends and shadow technology– Profitability pressures

• Renewed interest in IT– Organizational size and complexity– Competitive pressures– Regulatory influences

Definition: Inside-Out Mindset An Outside-in Look At IT

• A “We-will-tell-you-what-is-best-for-you” value

proposition

• Broadcast a message to the business that we

know best

• Subconsciously, push-based thinking


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Problems with inside-out thinking An Outside-in Look At IT

For the Business—• I (the business) have to do all the work to connect to and

with IT• I (the business) am the problem and IT is here to save me• I (the business) do not know what is best for me even

though I am the one that uses the system everydayFor the company—• Departments are not working together which causes:

• Lost opportunity to leverage company knowledge• Business units to spend less time on customers and more time on systems issues• Lost opportunity to increase revenue and customer base• Increased finger pointing when issues come up• Individuals working harder than necessary because of lack of team work • Decrease in employee moral• Take longer to get new products to market

• Waste and inefficiencies add cost to the system


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Definition: Outside-In Mindset An Outside-in Look At IT

• A “We-understand-your-concerns; lets-work-together-to-make-it-better” value proposition

• Broadcast a messages that IT is your partner, not your impediment to success

• Consciously pull-based thinking


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The Benefits of Outside-In Thinking An Outside-in Look At IT

For the business—

• IT helps me opt in or opt out (and I appreciate that)

For the company—

• Our message really stands out; people are listening

• Better quality systems and shorter development cycles

• Higher margins in solving their problems

For IT—

• More gain with less pain


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Results of Becoming Business-Driven IT Organization An Outside-in Look At IT


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Increased overall customer satisfaction scores by 20%

Increased issue resolution satisfaction rate to 95%

Reduced process defects by 40% for major account

Established a Customer Loyalty Index for Ricoh leadership

Improved customer experience based on feedback from callcenter employees

Reduced employee frustration by empowering employees tohave a voice

The Results of Ricoh’s Change in Philosophy

Source: June 15, 2014 “Study conducted by Ricoh Company Ltd”, Forrester report.

Technology Trends An Outside-in Look At IT


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Source: October 5, 2015 Gartner Group Report

2016 Technology Trends An Outside-in Look At IT


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An Outside-in Look At IT

Success in this new world will only occur when we have a change in our mindset


New Customer-Driven Technology Age

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Top 10 IT Success Drivers An Outside-in Look At IT


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Leading & Managing An Outside-in Look At IT


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Leading & Managing An Outside-in Look At IT


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IT Leadership vs. Management• Two entirely different concepts …• Leadership qualities …

– Vision– Communication & personality– Relationship building

• IT has a seat at the senior management table• Can influence the company’s ecosystem

– Cost side focus– Economy driven– Driven by thoughtful investment

• Can sell innovation and new ideas• Does NOT emphasize IT management

Leadership

Identifying change and influencing others to change

Management

Execution and control

IT Departments Must Evolve An Outside-in Look At IT


Source: October 5, 2012 “The Evolution of IT Leadership”, Forrester report.

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Grouping the Remaining 9 Drivers … An Outside-in Look At IT


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Building the Right IT Organization … An Outside-in Look At IT


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• Elimination of organization by platform, skill set, etc. • Process-based work – organizing IT resources around

cradle-to-grave business and IT processes• Adoption of strategic sourcing model …

– Not to save money– Rather, to offload select IT effort of a low strategic focus– Helps IT to be more agile & responsive to the firm

• Embed a portion of remaining IT into the Practice Groups

• Remainder of IT assumes the following roles:– Participation in Demand-Side IT functions– Management of IT processes– Liaison with sourcing and embedded resources– Primary focus on business and practice innovation

New IT Organization Trends …



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Illustration of New IT Model …

Business

Innovation

Delivering

Change

Supporting

Infrastructure

Outsourced to

External Service

ProvidersEmbedded in

the Practice

Groups

Traditional IT

Responsibil ities

Source: The Gartner Group

Communicating IT Performance … An Outside-in Look At IT


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Perception vs. Reality of Value• Two stories about value

• Who has a better grasp on value:

– The motorist or the rancher?

– The engineer or the company?

• The value of an IT-based initiative can only be effectively measured if:

1. The business case for its IT Portfolio inclusion agreed to the value measurements “up front”

2. The measurements are actually taken and assessed

3. A feedback loop is created for the IT Governance Council



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Perspectives on Value & Benefit …

• Measurements must be practical

• Plain and simply communication along three lines:

– Technical benefit (in pedestrian terms)

– Business benefit (top or bottom line oriented)

– Shareholder benefit (client business volume, profit per shareholder, etc.)



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• Two sets of IT performance indicators or scorecards

• Vetted by IT Governance Council

• Type 1: IT indicators might include:– Basic operational performance statistics

– System availability measures

– IT support performance indicators

– Service level effectiveness

– Delivered projects index (on-time, on-budget)

– IT cost ratios (function of P&L)

• Type 2: Business value indicators (tied to Business Maxims)

IT Performance Dashboard Concept …



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Summary of Action Items to Consider …

• Tune the focus of your IT leadership (vs. management)

• Take a fresh pass at understanding the firm’s business

• Initiate Business & IT maxim preparation efforts

• Identify IT initiatives where Business & IT maxims converge

• Recast your firm’s governance model

• Prepare and evolve a living IT Portfolio

• Repurpose the IT organization with above in mind

• Implement ITIL (or something like it)

• Extend risk management outside the IT boundary

• Measure and communicate the value of IT on a perpetual basis



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CUSTOMER CENTRIC TECHNOLOGY SERVICESOutside-In: Revolutionary Customer First Thinking For The Next Generation Of IT

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Lorenzo C. Hines, Sr.

[email protected]

(469) 879-0406

mailto:[email protected]