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News

Aligning Your Business and IT
 
Published Tuesday, November 24, 2009 7:00 am
by DENNIS HONAN

IT-they are two little letters that cause major frustration in many businesses. I hear repeatedly from CEOs that it seems they rarely receive the promised value from IT projects. And that's becoming more prevalent in a continually weakened economy. Inevitably, the conversation drifts to, "Frankly, I think I'll just outsource the whole [expletive deleted] department."

Technology departments are likewise discouraged. They feel businesses constantly change priorities, adjust scopes and are not held accountable to products' planned benefits. At the same time, IT resources have been severely curtailed and free-falling revenues, downsizing and to-the-bone expense cuts have forced businesses to increasingly turn to IT for mission-critical help.

Squeezed from both ends, IT executives must make sure their activities are fully in step with the business they support. The good news is there are proven strategies that will foster strong relationships between IT and business.

• Establish an Effective Steering Committee. This group should include key decision-makers from across the company and act as a board of directors for the technology group. There should be regular and honest discussions about key priorities, roadblocks and required help. It should also provide a forum for making tough decisions such as project delays, cancellations or postponements.

When I was at Sears, the CEO, along with business unit and support leaders, were members of the IT Steering Committee, which created a plan allowing customers to "buy online and pick up in-store." The committee had the influence to mobilize a $50 billion company in a way neither IT nor a single department ever could. The result: A project completed in record time that became a key differentiator in Sears' battle with pure online e-tailers.

• Focus on the Big Stuff. Too many times technology organizations spend a lot of time on small changes that generate little return. Left unchecked, these can quickly consume all available resources. In nearly all cases, it would be better to focus limited IT assets on key projects that can deliver significant return on investment and competitive advantage.

• Create a Business-Centered IT Strategy. "If you don't know where you are going, you are probably on the wrong road" (apologies to Lewis Carroll). A compelling mission, vision and strategic direction can make an organization a powerful force. The "Big Stuff" discussed above should be part of a broader strategy to guide the next two to three years. Technology is increasingly vital to most organizations' success, so it makes sense to develop an IT strategy as part of a companywide process so the IT path is in sync with the goals of the company.

• Communicate. We all know communication is essential, but in aligning business and IT, this takes on an especially vital role. Without effective and frequent messaging-be it e-mails, newsletters and/or company meetings-grumblings, rumors and apocryphal tales fill the void and become "truth."

• Hold Business and IT Jointly Accountable. Technology is not fast food; you can't place an order, wait a few minutes (or weeks, months, years!) and out pops your request. Yet, this is how some businesses operate.
At one job, I inherited a project from departed business leaders and was directed to "get this implemented." After a year and millions invested, the system was still far from implementation and was killed. Conversely, at sears.com we had a robust, cross-functional team and an active and involved business champion. Team members had shared goals, common bonus structures and were jointly accountable. As a result, Sears rapidly eclipsed its online competition, becoming the second highest trafficked retail site and exceeding their profit goals.

• Develop a Business Knowledgeable Technology Staff. The more a technology organization understands how a business operates and has "walked in their shoes," the more they will be able to identify, suggest and discuss solutions. Business experts who also know how to apply technology bring credibility, knowledge and results. When I worked at Lands' End, the entire technology staff had to answer customer calls or help ship product during the busy holiday season. That vastly increased business literacy.

• Educate the Business on Technology. Just as IT should be knowledgeable about the organization they support, business associates who understand the opportunities, challenges and risks of existing or new technologies can be extremely valuable. With their help, IT can develop strategies that lead to savings and increased revenue. Throughout my IT career, I took every opportunity to educate business leaders through programs such as technology briefings or expert guest speakers who discussed products that could enhance business performance. With this common technology understanding and shared accomplishment will come trust and a true spirit of cooperation, moving business and IT alignment to a whole new level. n

Dennis Honan is president of BRD Associates, an IT consulting firm in North Hampton. He has more than 35 years of experience in information technology and business management, including as COO at Lands' End and VP and general manager of sears.com and Sears Direct, and senior VP and general manager of distribution for Aviall, a provider of aerospace parts. He can be reached at dhonan@brdassociates.com.

 

 


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