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Information Technology OR . . . a Change Journey Phil Pavitt 7 th December 2004

Information Technology OR . . . a Change Journey Phil Pavitt 7 th December 2004. Agenda. The principles of change The CEO view of IT Re-focusing IT to accommodate change methods IT Federalisation – increasing the partnership with business Conclusions. The Pain of IT Change.

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Information Technology OR . . . a Change Journey Phil Pavitt 7 th December 2004

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  1. Information Technology OR . . . a Change Journey Phil Pavitt 7th December 2004

  2. Agenda • The principles of change • The CEO view of IT • Re-focusing IT to accommodate change methods • IT Federalisation – increasing the partnership with business • Conclusions

  3. The Pain of IT Change • Millennium Bug • National Air Traffic Service (NATS) - Swanwick • Sainsbury’s • Department of Works and Pensions • Child Support Agency “Results in . . . stress for the business and stress for IT”

  4. The CEO View of the CIO • Gartner research indicates . . . • CEOs and CIOs view the CEO – CIO relationship differently • CEOs are looking for the right relationship for the enterprise • Recommends CIOs tailor their approach to their situation • Create an action plan based on proven practices

  5. The CEO View of the CIO • Burson Marsteller research shows . . . • 5% of the Fortune Global 500 companies have CIO skills on their board. • These 5% of companies have outperformed the industry index by 6.4% per year since the CIO skilled member was elected.* • * This claim is based on 313 companies with available information about their directors, with 15 companies having CIO experienced directors and 298 companies without CIO experienced directors.

  6. Bain and Company • IT Spend 7.4% of revenue where execs view IT as a significant enabler of growth • IT Spend 4.7% of revenue where execs view IT as an inhibitor Survey . . . ‘Is IT a Bottleneck to Growth?’ Study conducted on executives at 359 companies . . .

  7. Change – Individual Level

  8. Principles of Change

  9. Principles of Change Sound change principles lessen the depth of the pain of change

  10. Principles of Change

  11. Principles of Change

  12. Principles of Change

  13. Principles of Change

  14. Order Assure Bill Customer Experience Service Provision Business Infrastructure

  15. Order Assure Bill Customer Touch Points – Direct Contact Sales & marketing order handling Billing & collections management Customer Experience Service configuration and activation Billing and fulfilment Service Provision Customer Touch Points – Field Force Resource & infrastructure allocated for delivery Resource & infrastructure problem management & restoration Service provision data collection & analysis Business Infrastructure

  16. Order Assure Bill Sales & marketing order handling Customer problem management Billing & collections management Service configuration and activation Problem reporting & quality analysis Billing and fulfilment Issue Resource & infrastructure allocated for delivery Resource & infrastructure problem management & restoration Service provision data collection & analysis Customer Touch Points – Direct Contact Customer Experience Service Provision Customer Touch Points – Field Force Business Infrastructure

  17. Order Assure Bill People People People Customer Experience Process Process Process Service Provision People – Field Force Resource Resource Resource Business Infrastructure

  18. Applied Knowledge SPECTATOR TEAM PLAYER LIVING DEAD TERRORIST Applied Activity Refocusing IT

  19. Agree measures of success Increase the comparability Develop initial communications Strategy and planning Increase competencies Augment IT for delivery of message Create empowered culture Trouble shooting Maintain measures for success IBT, coaching, Live Coaching & reviews Framework Approach Change Arena Change Agent Arena Business Arena Cultural ‘Discovery’ audit – build ‘Burning Platform’ 1. Have a compelling reason to change Strategic Vision and Alignment Workshop Develop governance and uncover values 2. Pull a powerful team together Create a compelling future ‘Top down and bottom up’ 3. Create a compelling picture of the new world Facilitate strategy and planning 4. Change leadership modelling and development Coach change agents and deliver change tool kit 5. Ensure those armed with the change agenda are capable of delivery Communicate & Measure Develop communication strategy 6. Communicate, communicate, communicate Create ‘Your Future’ Mindset 7. Expect that obstacles will occur and be prepared to move them Action workshops 8. Deliver some early wins ‘slay sacred Cows’ 9. Maintain momentum Sustain change 10. Ensure the changes become embedded into the culture

  20. Refocusing IT • Achieve Business ownership • Systems are at the heart of businesses • IT Change often results in failure for systems to be implemented fully • Mapping business processes is essential • Scenario based learning • Linking IT to Customer and business behaviour

  21. Refocusing IT 3Cs - Communications, Consultation and Coaching • Communications – ‘No surprises’ • Consultation – ‘Get people involved, do it with them NOT to them’ • Coaching – ‘Show how the IBI solution will benefit the organisation’

  22. Mapping IT to Process Find Customer GREAT OPENING RAPPORT LISTEN 2 1 3 Good news. . . home straight “Good Morning /. Afternoon This is . . .” Review History

  23. Mapping IT to Process Enter New Incident GREAT OPENING RAPPORT LISTEN 2 1 3 Good news. . . home straight “Good Morning /. Afternoon This is . . .”

  24. Mapping IT to Process Close Call Positively ASSUME THE OUTCOME 8 YOUR COMMITMENT IMPORTANT 7 5 OBJECTION? NO CHALLENGE! Confirm Customer Need 6

  25. IT Federalisation Where is IT in the Business Process value chain and where should it aspire to be? IT Today “A Slave of the Business” IT in Dec ’05 “We Partner the Business” Value Add Value Add Toolset Toolset Dec ‘05 Business Driven IT Strategy Business Process Value Chain Business Process Value Chain TODAY Cost Cost Tool Tool “IT will become the Business Partner for ntl”

  26. IT Federalisation Typically, any debate on IT organisational structure is normally based on the appropriate level of decentralisation but ntl requires a federal model for IT. - Federal IT Model - Functional IS Leadership Enterprise perspective Centralised Model Decentralised Model TCO scale of economies Control of standards Critical mass of skills Less responsive to end users No regional ownership No regional cost control Doesn’t meet everyone’s needs Local service Lines of ownership Users control priorities Responsiveness to diverse needs Potentially more costly Variable IS competencies Wheel reinvention No synergy Pooled experience Synergy The Federal IT model leverages the advantages of scale and enterprise leadership, whilst maintaining the flexibility of local responsiveness

  27. Conclusions • IT should be the advocate of change • All change should be collaborative with the business • Senior sponsorship • Direct and measurable benefit • Equally focus on Systems, Process and People • Have strong leadership

  28. “Do IT with the people not to the people”

  29. ‘Either do or do not there is no try’ Yoda Pavitt

  30. Q & A

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