VANTAGE POINT -- Business and IT Collaboration
By Steve Rosenstock, Clarkston Consulting
At a recent conference, a group of CIOs were addressing a wide range of issues that are currently impacting the consumer products industry. These issues ranged from the economic downturn and its impact on technology investments to the challenge of turning disparate data sources into actionable insights. Through all of these discussion, one point was made abundantly clear: There has never been a more exciting time to work in IT, as technology's role as an enabler of business process and its ability to add value continues to get stronger. What this requires, however, is the need for a more collaborative relationship between business and IT.
The role of the CIO, and the IT divisions overall, has evolved. CIOs are spending more time in the board room than the data center, and IT leaders throughout the organization are spending more and more time collaborating with their business partners. Last week, at Clarkston's Consumer Products Executive Exchange, attendees discussed this topic and shared best practices to foster a more collaborative relationship. Outlined below are three of the key issues that were discussed:
Common Goals: There remains a lack of understanding among business managers about how IT can help achieve corporate goals, with many still regarding IT as a necessary evil. The group discussed the need for joint business planning and a common set of goals and metrics throughout the organization. Simply, IT's project priorities must be in line with those of the business. And, conversely, the business needs to better understand all that IT does, and the related costs, to support the business.
The Rise of Shadow IT: Shadow IT is the unofficial IT group that business users have learned to depend upon to get things done. However, this causes huge problems for IT management, particularly around security, documentation, testing, standards, inefficiencies and software licensing. Again, IT's ability to understand the goals of the business community, and continually communicate over the course of the year, will ensure its ability to deliver tools that meet the needs of the business and lessen its dependence on alternative means of support.
Metrics: Are IT management and staff measured and compensated based on achievement of the same goals as the business? Often this is not the case, as IT is often measured by its ability to deliver on-time, on-spec and on-budget. I think we would all agree that IT could accomplish these goals and still not deliver any business value. IT needs to have incentives that are in line with those of the business, with common metrics around ROI and business growth.
In summary, if business and IT focused on communication, understanding and alignment, many of the challenges companies face will be greatly reduced. Communication on a more frequent basis will lead to...a better understanding of the issues that business and IT are faced with, which will lead to...Alignment of processes, metrics, goals and objectives.
The role of the CIO, and the IT divisions overall, has evolved. CIOs are spending more time in the board room than the data center, and IT leaders throughout the organization are spending more and more time collaborating with their business partners. Last week, at Clarkston's Consumer Products Executive Exchange, attendees discussed this topic and shared best practices to foster a more collaborative relationship. Outlined below are three of the key issues that were discussed:
Common Goals: There remains a lack of understanding among business managers about how IT can help achieve corporate goals, with many still regarding IT as a necessary evil. The group discussed the need for joint business planning and a common set of goals and metrics throughout the organization. Simply, IT's project priorities must be in line with those of the business. And, conversely, the business needs to better understand all that IT does, and the related costs, to support the business.
The Rise of Shadow IT: Shadow IT is the unofficial IT group that business users have learned to depend upon to get things done. However, this causes huge problems for IT management, particularly around security, documentation, testing, standards, inefficiencies and software licensing. Again, IT's ability to understand the goals of the business community, and continually communicate over the course of the year, will ensure its ability to deliver tools that meet the needs of the business and lessen its dependence on alternative means of support.
Metrics: Are IT management and staff measured and compensated based on achievement of the same goals as the business? Often this is not the case, as IT is often measured by its ability to deliver on-time, on-spec and on-budget. I think we would all agree that IT could accomplish these goals and still not deliver any business value. IT needs to have incentives that are in line with those of the business, with common metrics around ROI and business growth.
In summary, if business and IT focused on communication, understanding and alignment, many of the challenges companies face will be greatly reduced. Communication on a more frequent basis will lead to...a better understanding of the issues that business and IT are faced with, which will lead to...Alignment of processes, metrics, goals and objectives.
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Steve Rosenstock works in the Consumer Products practice of Clarkston Consulting, where he is responsible for helping leading companies throughout the industry drive value and grow their business. Prior to Clarkston, Steve served as the Publisher of Consumer Goods Technology magazine, helping develop their industry events, including the launch of their Sales & Marketing Summit and Growth & Innovation Forum. He could be reached at [email protected].