six "do's" to transform your it organization into a digitally-ready driver of...
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Six “do’s” to transform your IT organization into a digitally-ready driver of corporate growth
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
KPMG’s six tips for getting innovation IT transformation right.Many companies today are turning to digitally-oriented IT transformation to increase their competitive advantage and reduce their costs.
But many of these programs produce lackluster results, and many are outright failures – missed market opportunities, increased costs, and plummeting employee morale.
© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
To secure the necessary executive backing and action to get your IT transformation program off the ground, you need to present a bold, clear, and convincing business case.
— Unambiguously link the transformation to the business’ priorities
— Demonstrate a clear understanding of the starting point
— Describe the benefits of the change, supported by indisputable facts
— Detail the implications of continuing with business-as-usual
— Communicate urgency to promote action
– “We will not achieve our strategic objectives on our current path. Therefore we must…”
Build a compelling business case for action
Six “do’s” to transform your IT organization
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© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
To quell employees’ concerns about such widespread, disruptive change, and preemptively thwart actions that could derail the program’s success, your leadership team should proactively:
— Convey they’re fully onboard with and committed to the program, regardless of other internal orexternal disruptors (e.g., M&A)
— Provide clear direction
— Communicate expectations
— Alleviate employee apprehensions
Demonstrate executive commitment
Six “do’s” to transform your IT organization
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© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
A supportable change agenda:
— Demonstrates early successes
— Creates a sense of purpose
— Fosters camaraderie and positive morale within the organization
— Calibrates the pace of change to what can reasonably be absorbed by the organization
These are all critical to gaining and maintaining employee buy-in and achieving program success.
Present a supportable change agenda
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© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
To further alleviate employee anxieties about the disruptive changes happening in your organization, your executives should:
— Listen to and truly understand concerns, issues, and perceived losses
— Make it clear that market and business condition changes have necessitated the transformation
— Balance program activities and day-to-day priorities
— Inform and consult, rather than ask for permission
— Openly reward behavior that supports program success
Confidently manage participation
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© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
While IT and the business need to operate in sync to make the transformation program a success, the two groups have different fundamental thought processes and motivations:
— A plan and roadmap written in business terms and focused on achieving business results will be most effective for the business
— Details on IT operations and technology, and how they enable or support the business goals of the program, will resonate best with the IT organization
Align business & technology architecture
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© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
Many companies rely heavily on the strengths of key partners and vendors throughout their IT transformation journey. To make this complex component of your program a success:
—Develop a proactive strategy and plan
—Aggressively manage and adjust to the inevitable issues and risks that arise
—Implement strong governance practices to lessen and manage risks
Actively plan and manage partners
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© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 605050
Transform your IT organization
© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Marc SnyderManaging Director, CIO AdvisoryKPMG in the UST: 617-988-1146 E: [email protected]
For more information, please contact:
Launching, implementing, and sustaining an IT transformation program isn’t for the faint of heart. But for some organizations, it can be synonymous with survival.
KPMG recognizes that today’s CIOs face increasingly complex demands in becoming the strategic technology partner their businesses require. To learn more about how you can position your organization to reap the rewards of IT transformation:
- View our companion SlideShare: Five don’ts when trying to transform IT- Read the paper: 11 Lessons for IT Transformation Success
© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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