For many traditional IT organizations, BT Strategic Planning is a new approach to developing technology strategy. As such, it often raises more questions than answers. If you’d like to know how to get more answers then this blog post is for you (if not you can skip the rest).
To help you get stuck in and apply the strat planning framework in your environment, we’re scheduling a couple of webinars and a two-day workshop for this September. In the first webinar on Sept. 11, we’ll go into the best practices CIOs put in place in order to set up their teams for success in developing business technology strategy. In the second webinar on Sept. 14, we’ll explore the levers of BT value and how to successfully communicate BT value. While both webinars are connected, you don’t need to attend the first to get value from attending the second.
And if you are interested in rolling up your sleeves some more, I’m facilitating a two-day workshop on BT Strategic Planning on Sept 25th and 26th in San Francisco. This open workshop builds upon the successful custom workshops we deliver for clients looking to apply Forrester’s planning framework. Over the course of two full, mind-bending days, you will go through the entire strategy planning framework and learn how to apply it in your organization.
It's time to re-think the report card used by CIOs to report on BT performance – tomorrow’s BT CIOs must look beyond the traditional IT Balanced Scorecard (BSC).
I realize this is sacred ground for many people in IT (and some of my colleagues here at Forrester), so let me explain myself before I receive a barrage of complaints. The philosophy behind Business Technology (BT) recognizes technology as integral to every facet of every organization – as such, IT is very much an integral part of the business; we can no longer talk about “business” and “IT” as if referring to two distinct things. I’m suggesting that in the age of BT, we need a new scorecard that better reflects the impact of BT on the business.
It’s the perennial issue for many CIOs and often the No. 1 challenge for new CIOs: “How do I align IT with the business?” And while this is perhaps the most important challenge for IT groups struggling with a bad reputation across the business, it’s certainly not the most important challenge for IT groups with a solid track record of success. For these teams, the challenge is how to move beyond alignment.
In the report Beyond Alignment: BT Strategic Planning, I highlight how critical it is for IT to help formulate business strategy. The research suggests that how a firm develops and manages business strategy is pivotal to the question of how IT can move beyond alignment. Unfortunately, there are a number of challenges with this:
It's strange, but some things about the CIO role change very little from year to year -- and one of the most consistent priorities for CIOs has always been achieving better "alignment" with “the business.” But should this really be a top priority?
I can’t help it, I really dislike the term “alignment” -- it suggests to me that CIOs are trying to bring together two separate and distinct things: “the business” and “IT.” But the really successful CIOs already know this specific language sets everyone up to perceive IT as something apart from the business. And we all know that every business has technology woven intricately throughout -- to suggest technology is not a vital part of business success is simply wrong. So instead of talking about aligning IT with the rest of the business, we need to focus on ensuring the business is using technology to achieve defined goals and deliver business results.
Unfortunately, for many companies, IT appears to be in the software development business -- responding to “orders” from “internal customers” and busily delivering applications. CIOs need to ask: “what business are we in?” For most CIOs, the answer will undoubtedly NOT be the technology business. For these CIOs, the most precious skill IT can bring to the organization is business knowledge and process understanding coupled with technology know-how. By helping identify how technology can change the business dynamics and move the organization more efficiently toward its objectives, IT becomes the foundation for competitive advantage. In other words, IT needs to be in the business of helping shape business strategy.