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QUESTION POSED ON: 23 October 2003
What do you see as best practices to ensure Business/IT alignment?
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I believe there are 3 critical success factors:
- Transparency of the IT program -- projects and infrastructure/operations. First, it is important that IT is seen to have its own house in order. Business units must be able to see what their IT service consists of and how the costs are derived. If this has not been done before you are likely to get some surprising reactions -- both positive and negative -- where peoples expectations are different from reality. In my experience, this immediately improves mutual understanding and appreciation.
- Quality of the Business Strategy. In many companies this is still poorly defined, certainly at a level which technology can address. If a strategy document does not exist -- create one!! In conjunction, as much as possible, with the business. This is a powerful statement of strategic intent and leadership -- so expect some opposition, but also a new respect and some interesting answers! Of course the ideal would be to find someone in the business who would champion the strategy and allow you to contribute to a world-class, professional project. That rarely happens!! If you do take the lead -- approach the task humbly and collaboratively and you will produce a useful working document for IT and likely initiative waves of activity far beyond.
- Clarity of IT vision. No wonder few CIOs get this far. Armed with the above, the challenge is now to produce a statement of intent for IT. In my view this needs to be a practical working document which is referenced and updated regularly. The vision should outline the major business goals and objectives and how IT will support these. It should identify the scope for technology-driven innovation and opportunities for flexible approaches to resourcing as well as targets for continually improving service and cost-effectiveness and for improving communications between IT and the business.
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