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 Value = (Align + Connect)
IBAFrame: A value driven approach for IT projects and
          IT related organisational change
                                        Leon Dohmen
                                          July 2011




  Many companies and institutions perceive difficulties with the information technology (IT)
 push of the last decades. Investments in new IT solutions suffer from poor results. As a cure
  for the raised problems caused by the technology push, this article introduces IBAFrame.
IBAFrame stands for IT (or Innovation) Benefits Accelerator Framework. For value creation
IBAFrame supports alignment and connection from a result point of view and a process point
                                            of view.
Value = (Align + Connect)2

Introduction
Many companies and institutions perceive difficulties with the information technology (IT)
push of the last decades. Investments in new IT solutions suffer from poor results. Not seldom
new IT solutions are implemented via a special (temporary) work construction: an IT project.
Two main reasons can be appointed as main causes for the poor results:
1. From a result perspective: IT projects focus (too much) on technology only;
2. From a process perspective: IT projects act (too much) as an island disconnected from the
   rest of the organisation.

As a cure for the raised problems caused by the technology push, this article introduces
IBAFrame. IBAFrame stands for IT (or Innovation) Benefits Accelerator Framework.
IBAFrame is a (new) framework that provides insights and instruments that supports
organisational change driven by IT. A long-term period – over ten years – of research has
established the foundation of the framework. Many cases and projects in public and private
institutions and organisations have been analysed. Cases like mergers, setting up a shared
service centre, implementations of new IT solutions and outsourcing of IT services.

Result perspective
From a result perspective IBAFrame is supported by the TOP-concept.1 Different worlds fuse
into one is the credo of TOP and involves Technology, Organisation and People (figure 1).


                                                                       Figure 1: Context and consistency of
                                                                       technology, organisation and people
                          Technology                                   (TOP-mix)
                          • Applications
                          • Middleware
                          • Infrastructure




              People                   Organisation
              • Attitude               • Processes
              • Knowledge              • Structure
              • Skills                 • Location




Technology
This is the offering of available technology (infrastructure, middleware, applications) and its
possibilities, limitations and impossibilities. Even when limited to the domain of IT the
offering is enormous. A technology that turns several industries upside down is the Internet.
Internet has made it possible to create a virtual world (V-world) besides the physical world.
The meaning of terms like place, time and presence has drastically changed in the V-world.



1
  TOP-change for the fifth technology revolution: http://www.slideshare.net/ldohmen/topchange-for-the-fifth-
technology-revolution

                                                                                                               2
Value = (Align + Connect)2

Organisation
Organisations apply IT to support their corporate objectives. IT gives organisations almost
unlimited possibilities to reshape business processes and organisation structure (including
location). Due to the shortening of life cycles of available IT, absorbing new IT has to be a
key capability to transform and adapt quickly to changing circumstances.

People
New IT solutions change the content of work and collaboration between employees inside and
outside the own organisation. A proper attitude and stimulation of learning processes are
important to quickly build up new knowledge and skills. Learning processes have to be tuned
on individual preferences and capabilities. Related to the affinity with IT, digital natives
versus digital immigrants is a popular way to distinguish between (generations of) people.

Food for thought: Limited views
There is a permanent interaction in the context of technology, organisation and people (TOP-
mix). Each TOP-mix contains its own dynamics and unpredictability. Results are never
absolute. Here is where the most views that the various professional fields and studies have
developed go wrong. Many of these views about how change can best be carried out limit
itself to one or at most two domains of the TOP-mix. Psychologists, sociologists and
behaviour scientists point to the importance of the people factor and the developing of correct
behaviour. IT project managers restrict their project to the technology domain only. Most IT
project managers have no idea what takes place outside of this domain. Organisation scientists
especially evaluate processes and structures and explain which organisation form is most
appropriate for an organisation. Each view from a separate field of study or profession is
incomplete and without insight in the required contribution of and interaction between other
domains, only a partial solution can be offered.

Each implementation of a new IT solution impacts the alignment and connection of the
existing interplay of TOP. Approaching the implementation of the new IT solution with TOP
prevents a narrow-minded focus on e.g. technology only. This result perspective is the first
part of alignment and connection to create value: Value = Align + Connect.

Process perspective
Today’s projects build tomorrow’s organisation. Classical (project) management methods,
developed for an era in which IT was less dominant do not evolve quick enough to take on the
problems of poor results of IT projects. The professionalization of the discipline has lead to
exaggeration of the attention for instruments, milestones and time schedules without
emphasizing what is key for projects: the absorption of the project result. From a process
point of view IBAFrame arranges the alignment and connection by involving:
- changes of the IT solution itself; this could be a change of an existing IT solution or the
   implementation of a new IT solution (IT project);
- changes in the work domain of users of IT (user organisation or demand side of IT);
- changes in the work domain of IT support (IT organisation or supply side of IT).

IBAFrame involves all three subsections and their mutual influencing and dependency
therein. Continuous alignment and connection are required to have the subsections mutually
join each other perfectly well, in order to ensure that innovation or change in which IT is

                                                                                             3
Value = (Align + Connect)2

dominant becomes successful. To arrange this alignment and connection IBAFrame provides
six key principles. First two principles are positioned at organisation level, principles three
and four are linked to group level. The last two principles are on individual level.
1. Shared view and direction including insight in complexity and impact;
2. Fitting change approach tuned on the complexity;
3. Commitment and collaboration based on realistic targets and timeframes;
4. Stimulation of learning processes to support the absorption of the new IT solution;
5. Proper attitude to support a pro-active contribution;
6. Necessary competences of technology, organisation and people aspects.

The six principles arrange the alignment and connection on the different levels of
organisation, group and individual: therefore corporate objectives are linked to group and
individual objectives. The IBAFrame process perspective is the second part of alignment and
connection to create value: Value = Align + Connect.

Research and foundation
Applying TOP and IBAFrame in a proper way from a result and process point of view can be
represented by the ‘formula’: Value = (Align + Connect)2.

Applying the concepts of IBAFrame and TOP is not such a tip or trick. Necessary
competences are required to understand and to arrange an optimum in alignment and
connection for value creation. The foundation of the first concept has been in 1999. The
foundation was initiated by a case study related to a thesis for an IT auditing study. In the
years after the concept has been developed further by applying it in multiple practices. On
case level for two cases it could be concluded working according the IBAFrame principles
leads to an increased value (result) of 8% (merger and acquisition case) and 44% (shared
service centre case). Experiences, learned lessons and gained insights from different
professional fields like project management, change management, IT auditing and educational
institutions have stimulated further development and the launch of the current IBAFrame
concept in the publication ‘Regie voeren over organisatieverandering met ICT’2 (2008, Dutch
language) followed by the publication ‘Changing IT in six’ 3 (2010, English language).

A generic model
Latest insights on the IBAFrame concept are expressed in the research ‘Leading principles for
IT related organisational change’.4 In this research of 46 IT projects (and/or situations) 5 the
relation between the way of steering (change-ability) and the achieved result are expressed on
a scale from 1 (very poor) to 10 (excellent). The average score result represents the
IBAFrame result perspective. The result expresses sub-areas like:
- result is an improvement;
- result fits the objective;
- result coincides with the expectation;
- result is properly absorbed.

2
  Regie voeren over organisatieverandering met ICT: http://www.sdu.nl/catalogus/9789012125895
3
  Changing IT in six: http://www.vangorcum.nl/EN_toonBoek.asp?PublID=4552
4
  Leading principles for IT related organisational change: http://www.slideshare.net/ldohmen/iba-frame-study-
results-20100416
5
  Individual IT projects and the general performance of IT projects in an organisation were part of the study.

                                                                                                                 4
Value = (Align + Connect)2


The average score way of steering (change-ability) represents the process perspective of
IBAFrame reflecting the key principles of IBAFrame. A level of steering of 4.3 leads to a
result of 1.9. A level of steering of 5.4 leads to a result of 4.6 etcetera (figure 2). The white
                                                                      line,    representing    the
                                                                      relation between result and
                                                                      process         perspectives
                                                                      corresponds      with    the
                                                                      classical S-curve, very
                                                                      often used to visualize
                                                                      learning          processes.
                                                                      Obviously an investment
                                                                      in      development       of
                                                                      knowledge and skills is
                                                                      necessary      for    value
                                                                      creation.

                                                                      Figure 2:Generic model for
                                                                      application  of  IBAFrame
                                                                      principles




The results of the research ‘Leading principles for IT related organisational change’ are also
published in ‘Kampioen organisatieverandering’ 6 (2011, Dutch language). One of the main
findings of this research is that 27 of the 46 IT projects (and/or situations) – this is 59% –
achieve a result lower than 6.0. Only 3 projects (7%) come to a result of 8.0.

Food for thought: Failed IT projects
The failure of IT projects is often determined on the basis of exceeding the delivery date
and/or the available IT project budget. However, if budget and time exceeds 10% and the
result contributes to more efficient working business processes, higher turnover or higher
margins, will we then refer to the project as a failed project? This classic approach on whether
or not a project was successful leads to a high level of narrow-mindedness in which the
project appears to be the objective on itself instead of the means to contribute to the corporate
objective. IBAFrame uses a different approach. The term (change) result is the exponent with
which the result (of the change by means of IT) is expressed, instead of the budget and time.

Summary
‘Narrow streets breed narrow minds’. The limited and one-sided thinking from a technology
point of view insufficiently contributes to the success rate of organisational changes where IT
plays an important role. Only when these changes are approached from the total content of
technology, organisation and people - TOP-mix - a proper analysis of the issue is possible and
the correct steering can be chosen. For this, people are needed who have competences from
several fields of expertise or know how bring them together. The concept of IBAFrame

6
 Kampioen organisatieverandering: http://www.unibook.com/nl/Leon-Dohmen/Kampioen-
organisatieverandering

                                                                                                5
Value = (Align + Connect)2

provides insights from a result perspective and process perspective to create more value for
organisational change where IT plays an important role: Value = (Align + Connect)2.
-----------------------------------------------------------------------------------------------------------------
                    Leon Dohmen is principal management consultant at Logica. Also he teached
                    Management of Technology at the Rotterdam Business School for Master-
                    and MBA-programmes from 2003 to 2012.
                    - http://www.linkedin.com/pub/leon-dohmen/0/b24/92 -




                                                                                                               6

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IBAFrame: A value driven approach for IT projects

  • 1. 2 Value = (Align + Connect) IBAFrame: A value driven approach for IT projects and IT related organisational change Leon Dohmen July 2011 Many companies and institutions perceive difficulties with the information technology (IT) push of the last decades. Investments in new IT solutions suffer from poor results. As a cure for the raised problems caused by the technology push, this article introduces IBAFrame. IBAFrame stands for IT (or Innovation) Benefits Accelerator Framework. For value creation IBAFrame supports alignment and connection from a result point of view and a process point of view.
  • 2. Value = (Align + Connect)2 Introduction Many companies and institutions perceive difficulties with the information technology (IT) push of the last decades. Investments in new IT solutions suffer from poor results. Not seldom new IT solutions are implemented via a special (temporary) work construction: an IT project. Two main reasons can be appointed as main causes for the poor results: 1. From a result perspective: IT projects focus (too much) on technology only; 2. From a process perspective: IT projects act (too much) as an island disconnected from the rest of the organisation. As a cure for the raised problems caused by the technology push, this article introduces IBAFrame. IBAFrame stands for IT (or Innovation) Benefits Accelerator Framework. IBAFrame is a (new) framework that provides insights and instruments that supports organisational change driven by IT. A long-term period – over ten years – of research has established the foundation of the framework. Many cases and projects in public and private institutions and organisations have been analysed. Cases like mergers, setting up a shared service centre, implementations of new IT solutions and outsourcing of IT services. Result perspective From a result perspective IBAFrame is supported by the TOP-concept.1 Different worlds fuse into one is the credo of TOP and involves Technology, Organisation and People (figure 1). Figure 1: Context and consistency of technology, organisation and people Technology (TOP-mix) • Applications • Middleware • Infrastructure People Organisation • Attitude • Processes • Knowledge • Structure • Skills • Location Technology This is the offering of available technology (infrastructure, middleware, applications) and its possibilities, limitations and impossibilities. Even when limited to the domain of IT the offering is enormous. A technology that turns several industries upside down is the Internet. Internet has made it possible to create a virtual world (V-world) besides the physical world. The meaning of terms like place, time and presence has drastically changed in the V-world. 1 TOP-change for the fifth technology revolution: http://www.slideshare.net/ldohmen/topchange-for-the-fifth- technology-revolution 2
  • 3. Value = (Align + Connect)2 Organisation Organisations apply IT to support their corporate objectives. IT gives organisations almost unlimited possibilities to reshape business processes and organisation structure (including location). Due to the shortening of life cycles of available IT, absorbing new IT has to be a key capability to transform and adapt quickly to changing circumstances. People New IT solutions change the content of work and collaboration between employees inside and outside the own organisation. A proper attitude and stimulation of learning processes are important to quickly build up new knowledge and skills. Learning processes have to be tuned on individual preferences and capabilities. Related to the affinity with IT, digital natives versus digital immigrants is a popular way to distinguish between (generations of) people. Food for thought: Limited views There is a permanent interaction in the context of technology, organisation and people (TOP- mix). Each TOP-mix contains its own dynamics and unpredictability. Results are never absolute. Here is where the most views that the various professional fields and studies have developed go wrong. Many of these views about how change can best be carried out limit itself to one or at most two domains of the TOP-mix. Psychologists, sociologists and behaviour scientists point to the importance of the people factor and the developing of correct behaviour. IT project managers restrict their project to the technology domain only. Most IT project managers have no idea what takes place outside of this domain. Organisation scientists especially evaluate processes and structures and explain which organisation form is most appropriate for an organisation. Each view from a separate field of study or profession is incomplete and without insight in the required contribution of and interaction between other domains, only a partial solution can be offered. Each implementation of a new IT solution impacts the alignment and connection of the existing interplay of TOP. Approaching the implementation of the new IT solution with TOP prevents a narrow-minded focus on e.g. technology only. This result perspective is the first part of alignment and connection to create value: Value = Align + Connect. Process perspective Today’s projects build tomorrow’s organisation. Classical (project) management methods, developed for an era in which IT was less dominant do not evolve quick enough to take on the problems of poor results of IT projects. The professionalization of the discipline has lead to exaggeration of the attention for instruments, milestones and time schedules without emphasizing what is key for projects: the absorption of the project result. From a process point of view IBAFrame arranges the alignment and connection by involving: - changes of the IT solution itself; this could be a change of an existing IT solution or the implementation of a new IT solution (IT project); - changes in the work domain of users of IT (user organisation or demand side of IT); - changes in the work domain of IT support (IT organisation or supply side of IT). IBAFrame involves all three subsections and their mutual influencing and dependency therein. Continuous alignment and connection are required to have the subsections mutually join each other perfectly well, in order to ensure that innovation or change in which IT is 3
  • 4. Value = (Align + Connect)2 dominant becomes successful. To arrange this alignment and connection IBAFrame provides six key principles. First two principles are positioned at organisation level, principles three and four are linked to group level. The last two principles are on individual level. 1. Shared view and direction including insight in complexity and impact; 2. Fitting change approach tuned on the complexity; 3. Commitment and collaboration based on realistic targets and timeframes; 4. Stimulation of learning processes to support the absorption of the new IT solution; 5. Proper attitude to support a pro-active contribution; 6. Necessary competences of technology, organisation and people aspects. The six principles arrange the alignment and connection on the different levels of organisation, group and individual: therefore corporate objectives are linked to group and individual objectives. The IBAFrame process perspective is the second part of alignment and connection to create value: Value = Align + Connect. Research and foundation Applying TOP and IBAFrame in a proper way from a result and process point of view can be represented by the ‘formula’: Value = (Align + Connect)2. Applying the concepts of IBAFrame and TOP is not such a tip or trick. Necessary competences are required to understand and to arrange an optimum in alignment and connection for value creation. The foundation of the first concept has been in 1999. The foundation was initiated by a case study related to a thesis for an IT auditing study. In the years after the concept has been developed further by applying it in multiple practices. On case level for two cases it could be concluded working according the IBAFrame principles leads to an increased value (result) of 8% (merger and acquisition case) and 44% (shared service centre case). Experiences, learned lessons and gained insights from different professional fields like project management, change management, IT auditing and educational institutions have stimulated further development and the launch of the current IBAFrame concept in the publication ‘Regie voeren over organisatieverandering met ICT’2 (2008, Dutch language) followed by the publication ‘Changing IT in six’ 3 (2010, English language). A generic model Latest insights on the IBAFrame concept are expressed in the research ‘Leading principles for IT related organisational change’.4 In this research of 46 IT projects (and/or situations) 5 the relation between the way of steering (change-ability) and the achieved result are expressed on a scale from 1 (very poor) to 10 (excellent). The average score result represents the IBAFrame result perspective. The result expresses sub-areas like: - result is an improvement; - result fits the objective; - result coincides with the expectation; - result is properly absorbed. 2 Regie voeren over organisatieverandering met ICT: http://www.sdu.nl/catalogus/9789012125895 3 Changing IT in six: http://www.vangorcum.nl/EN_toonBoek.asp?PublID=4552 4 Leading principles for IT related organisational change: http://www.slideshare.net/ldohmen/iba-frame-study- results-20100416 5 Individual IT projects and the general performance of IT projects in an organisation were part of the study. 4
  • 5. Value = (Align + Connect)2 The average score way of steering (change-ability) represents the process perspective of IBAFrame reflecting the key principles of IBAFrame. A level of steering of 4.3 leads to a result of 1.9. A level of steering of 5.4 leads to a result of 4.6 etcetera (figure 2). The white line, representing the relation between result and process perspectives corresponds with the classical S-curve, very often used to visualize learning processes. Obviously an investment in development of knowledge and skills is necessary for value creation. Figure 2:Generic model for application of IBAFrame principles The results of the research ‘Leading principles for IT related organisational change’ are also published in ‘Kampioen organisatieverandering’ 6 (2011, Dutch language). One of the main findings of this research is that 27 of the 46 IT projects (and/or situations) – this is 59% – achieve a result lower than 6.0. Only 3 projects (7%) come to a result of 8.0. Food for thought: Failed IT projects The failure of IT projects is often determined on the basis of exceeding the delivery date and/or the available IT project budget. However, if budget and time exceeds 10% and the result contributes to more efficient working business processes, higher turnover or higher margins, will we then refer to the project as a failed project? This classic approach on whether or not a project was successful leads to a high level of narrow-mindedness in which the project appears to be the objective on itself instead of the means to contribute to the corporate objective. IBAFrame uses a different approach. The term (change) result is the exponent with which the result (of the change by means of IT) is expressed, instead of the budget and time. Summary ‘Narrow streets breed narrow minds’. The limited and one-sided thinking from a technology point of view insufficiently contributes to the success rate of organisational changes where IT plays an important role. Only when these changes are approached from the total content of technology, organisation and people - TOP-mix - a proper analysis of the issue is possible and the correct steering can be chosen. For this, people are needed who have competences from several fields of expertise or know how bring them together. The concept of IBAFrame 6 Kampioen organisatieverandering: http://www.unibook.com/nl/Leon-Dohmen/Kampioen- organisatieverandering 5
  • 6. Value = (Align + Connect)2 provides insights from a result perspective and process perspective to create more value for organisational change where IT plays an important role: Value = (Align + Connect)2. ----------------------------------------------------------------------------------------------------------------- Leon Dohmen is principal management consultant at Logica. Also he teached Management of Technology at the Rotterdam Business School for Master- and MBA-programmes from 2003 to 2012. - http://www.linkedin.com/pub/leon-dohmen/0/b24/92 - 6