Describes an approach to defining the competencies and capabilities required of the IT function and to use current levels of competence and importance of competency across all activity areas of the IT function to identify those areas at which getting better will yield the greatest return, allowing for targeted investment of resources to get good at what matters

1. Investing Intelligently In The
IT Function
Alan McSweeney

2. July 17, 2013 2
• Doing – Run The Business
− Business as usual activities (BAU) related to administering and
operating production IT systems and providing service to users
• Managing The Doing – Run The Business
− Managing the BAU function and its service delivery
• Doing – Change the Business
− Implementing projects and delivering new services and systems
• Managing The Doing – Change The Business
− Managing the projects and associated changes
Activities of IT Function

3. July 17, 2013 3
• Four sets of
activities
1. Doing – Run The
Business
2. Managing The Doing –
Run The Business
3. Doing – Change the
Business
4. Managing The Doing –
Change The Business
• The “Magic
Quadrant” so
beloved of
consulting
organisations
Change The
Business
Run the
Business
Doing
Managing The
Doing
Generic Structure and Activities of IT Function

4. July 17, 2013 4
• Not all activities are of equal weight – it is not the beloved “Magic
Quadrant”
• Balance between activities and required resources and expenditure
depends on many factor:
− Maturity of IT function and organisation
− Level of change
− Historical legacy of under or over investment in IT
− Growth profile
− Market changes
• However, Run The Business will always dominate IT resources and
activities
• But Change The Business activities get disproportionately large and
undeserved attention to the detriment of Run The Business activities
Generic Structure and Activities of IT Function

5. July 17, 2013 5
Doing – Run The
Business
Doing – Change
the Business
Managing The
Change – Run
The Business Managing The
Doing – Run The
Business
Actual Average Relative Balance of Resources Across Activity Areas

6. Doing – Change the
Business
Managing The
Change – Run The
Business
July 17, 2013 6
IT’s All Too Common Version of Investment Beer Goggles

7. • IT changes are inevitable – in response to factors such as:
− Market changes
− Business changes
− Technology changes
− Regulatory changes
• But change needs to be balanced and the organisation
needs to be capable of absorbing change
July 17, 2013 7
Changes

8. Change The
Business
Run the Business
Doing
Managing The
Doing
Having An Efficient
And Effective Run
The Business
Function …
… Means The Changes Introduced By Change
The Business Activities Can Be Absorbed
More Easily and Quickly
July 17, 2013 8
Effective Run The Business Function Is An Enabler Of Change

9. Change The
Business
Run the
Business
Doing
Managing The
Doing
Change The
Business
Function Pushes
New Systems
And Processes
To The Run The
Business
Function Where
They Must Be
Supportable And
Operable
Effective Run The Business Function Is An Enabler Of Change

10. July 17, 2013 10
Change The
Business
Run the
Business
Doing
Managing The
Doing
Relative Proportions of Resources And Expenditure Across
Activity Areas

11. July 17, 2013 11
Σ{ } >> { }
Doing – Run The
Business
+
Managing The Doing –
Run The Business
Doing – Change The
Business
+
Managing The Change –
Run The Business
The IT Investment Equation

12. July 17, 2013 12
Range Of IT Investment Profiles

13. July 17, 2013 13
• Relative split of resources across activity areas can range across a spectrum
Standard profile of
organisation with balanced
level of activities across all
areas
Profile of organisation with
significant under-
investment in IT changes
Profile of organisation with
high levels of change and IT
investment in projects
Balance of Resource Allocation Across Activity Areas

14. July 17, 2013 14
Much of the focus of
the IT function is on
the areas of change
and managing change
…
Unbalanced Focus on Change-Related IT Activities

15. July 17, 2013 15
… While most of the
resources and
expenditure occurs in
Run The Business
activities
Unbalanced Focus on Change-Related IT Activities

16. July 17, 2013 16
• IT function tends to have an unbalanced focus on areas of
change and new projects, assigning them a relatively
higher priority than justified
Unbalanced Focus on Change-Related IT Activities

17. July 17, 2013 17
• Key areas where the IT function needs to maintain
significant levels of competence, skill and experience and
practise
• Not all activity areas require all the key capabilities
• Use to identify what is important for your IT function
based on your current and desired/necessary activity
profile
• Quantify gaps in your skills levels in competence areas
• Use this to define programme of improvement and
increased capability
IT Capabilities and Areas of Competence

18. July 17, 2013 18
1. IT Leadership and Governance
2. Strategic and Business Planning
3. Demand and Supply Management,
Capacity Forecasting and Planning
4. Sourcing and Supplier Management,
Acquisition, Procurement
5. Innovation
6. Accounting, Funding, Financing,
Budgeting and Planning
7. Programme Management, Portfolio
Management, Project Management
8. Relationship Management and
Business Engagement
9. Organisation Design and Planning
10. Enterprise Architecture
11. Infrastructure, Networks and
Communication
12. Business and Process Analysis
13. Solution Architecture and Design
14. Benefits Assessment and
Realisation
15. Service Provisioning, Service
Delivery and Service Management
16. Testing
17. Security, Continuity and Disaster
Recovery
18. Solution Development and Delivery
19. People Asset Management
20. Knowledge Asset Management
21. User Experience Design
22. Change and Change Management
IT Capabilities and Areas of Competence
What the IT function needs to be good at:

19. • General sets of skills required of the IT function
• Transcend specific technical and technology skills and
trends
− Technology change is a constant
• It is about having the overarching skills to handle change,
adopt suitable and appropriate new technologies and
deliver a service and value to the underlying business
July 17, 2013 19
IT Capabilities and Areas of Competence

20. July 17, 2013 20
IT Is Not About …

21. Be Careful About Jumping on Bandwagons
The Ride Can Be Uncomfortable And Unpleasant
July 17, 2013 21

22. IT Is About …
July 17, 2013 22

23. July 17, 2013 23
Capability D/RTB MTD/CTB MTD/RTB D/CTB
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning
Sourcing and Supplier Management, Acquisition, Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communications
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information, Knowledge Asset Management
User Experience Design
Change and Change Management
IT Capabilities by Activity Area

24. July 17, 2013 24
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning
Sourcing and Supplier Management, Acquisition, Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communication
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information and Knowledge Asset Management
User Experience Design
Change and Change Management
Colour Coding of Key Capabilities
Sample representation of capabilities

25. • Represents the required competencies for activity areas
July 17, 2013 25
IT Competence Skills Radar

26. July 17, 2013 26
Doing
–
Run
The
Business
M
anagingThe
Doing
–
Run
The
Business
M
anagingThe
Doing
–
Change
The
Business
Doing
–
Change
The
Business

27. July 17, 2013 27
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning
Sourcing and Supplier Management, Acquisition, Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communication
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information and Knowledge Asset Management
User Experience Design
Change and Change Management
Doing – Run The Business - Key Competencies

28. July 17, 2013 28
• Doing – Run The
Business activity area
involves keeping
operational systems
function and providing
service to users
Doing –
Run The
Business
Doing – Run The Business - Key Competencies

29. July 17, 2013 29
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning
Sourcing and Supplier Management, Acquisition, Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communication
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information and Knowledge Asset Management
User Experience Design
Change and Change Management
Managing The Doing – Run The Business - Key Competencies

30. July 17, 2013 30
• Managing The Doing –
Run The Business
activity area involves
managing the delivery
of business as usual
services, operations
Managing
The Doing
– Run The
Business
Managing The Doing – Run The Business - Key Competencies

31. July 17, 2013 31
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning
Sourcing and Supplier Management, Acquisition, Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communication
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information and Knowledge Asset Management
User Experience Design
Change and Change Management
Doing – Change The Business - Key Competencies

32. July 17, 2013 32
• Doing – Change The
Business activity area
involves implementing
new projects and the
changes they introduce
into the organisation
Doing – Change
The Business
Doing – Change The Business - Key Competencies

33. July 17, 2013 33
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning
Sourcing and Supplier Management, Acquisition, Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communication
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information and Knowledge Asset Management
User Experience Design
Change and Change Management
Managing The Doing – Change The Business - Key
Competencies

34. July 17, 2013 34
• Managing The Doing
– Change The
Business activity area
involves managing
the implementation
of new projects and
the changes they
introduce into the
organisation
Managing The
Doing – Change
The Business
Managing The Doing – Change The Business - Key
Competencies

35. July 17, 2013 35
• Where are your organisation’s skill, experience and practical
application of key competencies?
• How good are you at what is actually important rather than what is
perceived to be important?
• What do you need to get better at?
• Can you identify what improvements will generate the greatest
benefits?
Highly skilled, experienced and
consistently well applied
Poorly skilled, experienced and
consistently not well applied
Measuring Your Skills in Key Competency Areas

36. • Where is your organisation on the IT Competence Skills
radar?
July 17, 2013 36
IT Competence Skills Radar

37. July 17, 2013 37
Doing
–
Run
The
Business
M
anagingThe
Doing
–
Run
The
Business
M
anagingThe
Doing
–
Change
The
Business
Doing
–
Change
The
Business

38. July 17, 2013 38
Use current levels
of competence and
importance of
competency across
all activity areas to
identify those areas
at which getting
better will yield the
greatest return
Targeted
investment of
resources
Get good at what
matters
Get the biggest
bang for your buck

39. Current Activity Profile
Desired Or Necessary
Activity Profile
Evaluate Core Competency
Levels
Prioritised Improvement
Competency Areas
Define Improvement
Programme
Deliver Improvement
Programme
Systematic Approach To Increasing Skills In Competencies
July 17, 2013 39

40. July 17, 2013 40
The wheel is not getting
any rounder

41. July 17, 2013 41
It does not need to be
reinvented
So use existing well-
proven frameworks and
methodologies to
systematically improve
skills, experience and
practise in key
competency areas
The world does not need
new frameworks and
methodologies – it needs
existing ones well-
implemented
r
d
πd
πr2
1800
900
2700

42. Capability Sample Existing Frameworks and
Methodologies
IT Leadership and Governance COBIT, OEGC
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting and Planning COBIT, ITIL
Sourcing and Supplier Management, Acquisition, Procurement ISPL, eSCM, CMMI-ACQ
Innovation
Accounting, Funding, Financing, Budgeting and Planning Val IT
Programme Management, Portfolio Management, Project Management PMBOK, Prince2
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture TOGAF, DODAF, MODAF, NASCIO EAMM
Infrastructure, Networks and Communications
Business and Process Analysis and Design BABOK
Solution Architecture and Design ITABOK
Benefits Assessment and Realisation VMM, Val IT
Service Provisioning, Service Delivery and Service Management ITIL, ISO 20000
Testing ISTQB, AST
Security, Continuity and Disaster Recovery ISO 27002, ISO22301, ISO 22399, ISO 24762
Solution Development and Delivery CMMI, ISO 9000, ISO/15504
People Asset Management People CMM
Data, Information, Knowledge Asset Management DMBOK
User Experience Design ISO 9241, CIF, ISO/AWI 23973
Change and Change Management ITIL
Sample Frameworks And Methodologies For Competencies
July 17, 2013 42

43. July 17, 2013 43
There Is No Silver Bullet At Getting Better
Just a bunch of
regular bullets
to fire at the
problem

44. July 17, 2013 44
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
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