A white paper on IT Process Optimization
(Emphasis is on Change
management)
Introduction
An organization cannot accelerate its results without an
IT function that is aligned with a coherent strategy, and optimized to perform
at its highest potential. In a stable economic environment, it has been
statistically established that within IT:
- 45% of the resources are wasted on
non-productive work
- 90% of staff do not understand their own goal,
as well as business goals
- 75% of CxOs do recognize the failure of their IT
processes, but fail to streamline it; due to obstacles they face in getting
support from stakeholders.
Closing the Execution Gap
Above statistics reveal, there’s
an obvious disconnect between Investment and Performance. Between crafting the
strategy and showing results. It can be labeled as the ‘execution gap’. Reasons
vary one organization to another. But whatever the reason; at its base lie
issues relating to the process of execution: getting the right workforce and
processes to use its full potential, and to focus that potential is in the
right direction.
We are transgressing ‘eras’;
Economy crisis around the world has battered Banks to the extent that it is no
more the question of who makes profit and how much… Rather, the question of
Bank’s survival itself is in question.
Evolution of IT as Utility, not merely a Service provider
Nowadays application environments
are faster and more incremental. Nice interfaces and colorful screens are absolute.
Today, if asked to Business to choose
single word they hate most, would like to avoid at any cost. Invariably
majority will pick the word… disruption.
Disruption in banking services is big NO.
There are broader underlying
requirements from the business, something they do not articulate…i.e. Not merely the ‘continuity of service’; 2nd
and 3rd criteria below as well:
- Continuity of service
- Continuity of business processes
- Continuity of interaction
Our aim should be to design
internal Processes (development, support, operation) and SLAs
in such a way that ensures continuity. It will be the “first step” towards the
healthy alignment of “Business and IT”. This however, can potentially result in
major transformation in the way IT executes its development and operations.
In today’s world; fraught with
financial crisis, hard pressed to optimize funding… noise level to search for efficiency has grown to its highest
level. Innovative transformation of
internal IT processes is inevitable. It was long due.
This is actually a boon in
disguise; it is an opportunity to clean up fat and align IT with Business in
completely novel way. Business Process Management (BPM) will be vital in
formulating strategy and planning & achieving desired results. More than
half of the World’s top tier Banks have already completed BPM exercise.
It is my strong view that future
of IT workforce will reduce (is already becoming) to just 3 generic roles/skills:
a) Consultants: Must be a combination of Internal (permanent staff) or External (on
contract for limited duration). Individual who fall into this category
are: CxOs, Architects, IT Unit heads <of IT support, development, Infrastructure>
and Business heads who interact with IT. Essential skillset for this category:
a.
Understanding
of Business
b.
Strategic
thinking
c.
Knowledge
of Architecture
d.
Leadership
b) Project Managers: The definition has
changed. They will be actually a Delivery
Manager. Their skill-set should include following four:
a.
Able to ensure delivery dates
b. Able to understand Business language and convert
it to developers’ language. The role of Business
Analysts will merge with PM.
c.
Able to ensure that ‘delivery’ matches Service
and Quality expectations of
stakeholders
d.
Tactical in approach
c) Developers: They are ‘doers’ who carry limited programming
skills in one or more areas. They sit in front of screens to provide (or develop) all the
information required to run business. Majority will sweat behind LCD screens configuring
applications, running automated software and generating reports.
Unfortunately, our old age method
of charting hierarchy to IT workforce in an organization has created confusion
and invisible barriers. Demand for off-the-shelf services growing louder and
louder. Unintentionally, the Business is expecting its IT department to provide
services similar to that of utility.
Transforming Development Process
Strategic vision for IT Execution
should be about moving beyond automating workflows; to actually aligning,
optimizing, and accelerating workforce productivity in a way that drives
measurable business results. The role of ‘automation and monitoring software’ should
increase.
How can we in the organization
start improving IT execution? The first step is to recognize that IT execution
is a shared responsibility… no one group can do it itself. Rather, IT execution
requires involvement and collaboration from individual business heads, CIO, CTO,
Finance and HR. Business leaders need to articulate both an overall strategic
vision and the key performance indicators and metrics linked to realizing their
vision.
Remember… It is the The General
who ensures that the Battle is won, not thousands of Soldiers.
************* End of Part1 ******************
