The document discusses the importance of IT strategic planning for businesses. It explains that technology must provide a stable foundation for businesses to operate on and facilitate innovation to remain competitive. Strategic planning helps ensure business and IT are aligned, resources are focused on key priorities, and short-term solutions are avoided. The planning process involves aligning IT capabilities with business strategies, managing the IT portfolio, driving stability, and measuring performance. Factors like a company's industry, structure, and market volatility determine how often and in-depth strategic planning should occur.

1. IT Strategic
Planning

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The Role of IT in the Enterprise
Technology has no value unless
there is a business context
Technology must provide a stable
foundation upon which the
business can predictably operate
Technology must facilitate
innovation that allows enterprises
to be competitive in their market
space.
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Why do a Strategic Plan?
Expectation Setting
• Business and IT are on the same page!
Creditability
• IT consumes between 6 and 10% on average as a
percentage of total revenue*
Establishes a policy for decision making
• Priorities are set according to alignment with strategy
• Focuses resources on key priorities
IT is at risk of failure without it!!!
• Short-term, quick fix solutions become the norm
• “You are the architect of your fortune.”
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*Source: Forrester Research, Inc.

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Business and IT Alignment
As a partner/enabler to the business
• Shared strategies are key
• Objectives that align to enterprise strategies
• Shared accountability for results
• Measurable performance indicators that show
contribution to company goals
• Communication of IT objectives, strategies and
measures must be in business terms
Information Technology is a strategic asset
to the enterprise
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Aligning Capabilities with
Business Strategy
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Business
Environment
Business
Mission
Business
Identity
Business
Strategy
Determine
IT
Capabilities
To
Meet Business
Objectives
Define
IT
Needs
Develop
Requirements
For
Capabilities
IT
Strategy

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IT As a Business Operation:
Managing the IT Portfolio
Document and track costs and business
benefits
Consider both new investments ongoing
operations
Integrate technology life cycle
management
Appoint IT and business process owner
responsible for realizing planned results
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IT as a Business Operation:
Driving Stability
Considerations include:
• Architecture
• Security
• Risk (DR, Change Management, Compliance)
Standards and process methodologies are
employed
• ITIL/CobIT
• CMMI
• Six Sigma/ISO 20000
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IT as a Business Operation:
Measuring Performance
Tracking and measuring “services”
• Performance and availability
Tracking and measuring delivery
• Project milestones, quality, cost
Tracking and communicating
continuous improvement
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The Plan
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Breakthrough Planning (d)
“What are the Breakthroughs required to
achieve the results we need?”
(d)
(c)
(b)
(a)
Document
Business Enablers (b)
“What Business enablers do we
need to strengthen in order to
achieve Business Excellence”
CSFs and KPIs (c)
Critical Success Factors
“What is critical to our success in
achieving our objectives?”
Key Performance Indicators
“How will we measure our progress?”
Strategic Direction (a)
Mission Statement
“Why do we exist?”
Strategic Objectives
“How will we measure our
progress?”
Vision
“What will our future look like?”
Strategy
“How will we achieve the mission?”

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Planning Process: Micro Level
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Develop Break-through Plan /
Prioritization
Execute the Plan
Review Plan
Revise the Plan
Achieve your objective
Breakthrough Estimation
Plan Finalization
Innovation Requirements
Plan execution (metrics, G&O’s,
Ownership)
Assure the Stable Foundation
“Keeping the ship afloat”
Breakthroughs, Budgeting, Plan
Finalization
Changes
needed?
Changes
needed?
Revise the Plan
Sustain / Enhance Estimation
Develop Sustain / Enhance
Plan
Changes
needed? Revise the Plan
Review Sustaining
Initiatives
Review Breakthrough
Initiatives
Communicate the Plan
Develop a Communications Plan
“What does this mean to me?” Job
descriptions/personal performance
objectives

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Executing the Plan
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IT
Strategic
Plan
Portfolio Management
IT Governance Process
IT Investment Process
(Technology, Process, Training)

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Measuring the Results
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Record the action that will be taken to
get the item back on target
Explain why the item has deviated
from its targeted value
Status:
 = Above target
 = On target
 = Slightly below target
 = Well below target
Trend:
 = Improving
 = Declining
 = Steady
Concern:
L = Low
M = Medium
H = High

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Not a One Size Fits all Model
Characteristics that Drive Planning
• Role of Technology in Product and Service Offerings
• John Deere versus Microsoft
• Business Volatility
• Pharma versus Manufacturing
• Competitive Pressure
• Highly competitive versus stable
• Organizational Structure
• Centralized versus decentralized
• Geographic Scope
• Local versus international
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When and How Often to Plan?
When Should Strategic Planning Be Done?
• Volatile Marketplace with Rapidly Changing Products and Services
• Detailed, comprehensive plan once or twice a year
• mission, vision, values, environmental scan, issues, goals, strategies, objectives,
responsibilities, time lines, budgets, etc
• Stable Marketplace
• Planning might be carried out once a year and only certain parts of the planning process, for
example, action planning
• objectives, responsibilities, time lines, budgets, etc are updated each year
• Other Guidelines
• When an organization is just getting started. (The strategic plan is usually part of an overall
business plan, along with a marketing plan, financial plan and operational/management plan.)
• In preparation for a new major venture, for example, developing a new department, division,
major new product or line of products, etc.
• Strategic planning should also be conducted at least once a year in order to be ready for the
coming fiscal year (the financial management of an organization is usually based on a year-to-
year, or fiscal year, basis).
Copyright 2006. InteQ Corporation 14

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When to Review the Plan
Stable Marketplace
• Quarterly
Volatile Marketplace
• Monthly – or as necessary
Copyright 2006. InteQ Corporation 15

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Contact Information
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Compliance Process Partners
Phone: 888-718-1708
www.cppit.com
Valerie Arraj
valerie.arraj@cppit.com