IT Operating Model
Evolve your IT Operating Model. Or face the rise of Digital Dissatisfaction!
Some facts:
Recent surveys conducted by Gartner confirm compelling and important trends. 79% of CEO’s indicated that they intend to increase spend on “Digital”. 96% of the same CEOs in the same survey told that they have challenges with the realisation of their Digital strategy. So, is that good news or bad news? I think it is both.
In a separate but associated Gartner survey, 67% of CFOs say technology investment is not meeting expectations. It is fair and unfortunate to say that there is an amount of disappointment out there. A tough economy where getting a return on investment is hugely important but the ROI, value and outcomes that are committed to business cases are often hard to find.
Not on anything like the scale of Gartner, I put out a quite simple survey of my own, on LinkedIn. Asking technology leaders to name their biggest area of challenge. The largest area of concern, raised by almost half of the respondents was “delivery of technology change.”
One thing that my research, the Gartner findings and general chatter on this topic seem to agree on is that these challenges often have to do with the technology operating model. In fact, the most preferred reason that CIOs gave to Gartner in the CIO survey, when asked what causes initiatives to deliver below expectations, was “legacy ways of working.”
Introduction
Technology is constantly evolving, and so must the IT operating model. Technology leaders play a critical role in ensuring that their organisation's IT operating model aligns with its corporate strategies and technology roadmaps. This requires constant attention to the skills of their teams, the capabilities they need within their technology ecosystem, and the pace of delivery, cost of ownership, ability to support technologies, and correct use of the supply chain and outsourcing.
Without this constant attention, perfectly reasonable ways of working can become a “legacy” and a barrier before you know it.
Why is a constantly evolving IT operating model so important?
Constant attention to the operating model is hugely important. It allows organisations to adopt modern technologies and launch new products and services quickly and efficiently. It ensures that the IT operating model can support the latest technologies and that it can scale to meet the needs of the business. It allows organisations to make the correct use of the supply chain and outsourcing. It ensures that the organisation has access to the skills it needs to be successful, which is often a thing that adjusts in size and shape over time (shrinking legacy skills being just as important as growing emergent ones!).
What are the challenges?
Technology is constantly evolving, and IT operating models need to be able to keep up. This can be difficult, as it requires significant investment in time, resources, and training.
Another challenge is the need to manage change effectively. Technology teams are often so focused on delivering change for their organisation that it can be difficult for them to find the time and space to manage their own changes. This can lead to resistance to change and can make it difficult to implement new ways of working.
Leading a busy team, with multiple challenges, and initiatives aligned to corporate objectives while also trying to flex and adapt your own ways of working is a huge but important challenge. For many, that problem results in stealing time away from technology ways of working at the expense of prioritising trying to deliver those business outcomes. But as we have seen above, when it backfires, digital disappointment can ensue.
How can technology leaders overcome these challenges?
Technology leaders can overcome the challenges by:
Making IT operating model evolution a priority. Technology leaders need to make IT operating model evolution a priority for their teams. This means providing them with the time and resources they need to develop and implement new ways of working.
Communicating the benefits of change. Technology leaders need to communicate the benefits of change to their teams. This will help to reduce resistance to change and make it easier to implement new ways of working.
Providing training and development. Technology leaders need to provide their teams with the training and development they need to keep up with the latest technologies and ways of working.
Using data and analytics to drive decision-making. Technology leaders should use data and analytics to identify areas where the IT operating model can improve. This will help them to make informed decisions about how to evolve the IT operating model.
Creating a culture of learning and innovation. Technology leaders need to create a culture of learning and innovation within their teams. This will encourage their teams to experiment with new ways of working and to produce innovative ideas for how to improve the IT operating model.
Go for “less is more.” Be open and transparent with senior leaders around your organisation. A reduced portfolio of work that is set for success (and gives room for new ways of working that will fire up yet more success) is better than a loaded schedule that points towards digital disappointment.
Democratise technology delivery. A bigger cohort of “technologists” in your organisation, with a growing proportion coming from outside IT. Placing more skills and capabilities into the right places, closer to where outcomes are needed. It is well established that a higher proportion of businesspeople participating in technology initiatives increases the chance of value. If you are not already doing so, investigate product and fusion teams to fire up your new ways of working.
Conclusion:
Maintaining a constantly evolving IT operating model is essential for technology leaders who want to ensure that their organisations are successful in the digital age. By addressing the challenges of change and by making IT operating model evolution a priority, technology leaders can help their organisations to stay ahead of the curve and to achieve their goals and objectives. Or at the very least, minimise digital disappointment and achieve returns, value, and outcomes more consistently.
Additional tips for technology leaders:
Pragmatism. Do not just follow the latest trends and fads. Find what works for your organisation and your team.
Manage your teams through change at the right speed. Do not try to change everything at once. Give your team time to learn, optimize, and thrive along the way.
Make sure you have the space in your schedule to contemplate, plan, and deliver a constantly evolving operating model. This is important work, and it should not be neglected. Squeezing this work to attempt delivery of an overpacked schedule is doomed to fail – this operating model work is not optional!
Amplify can help you with these challenges. We support organisations with operating model change, technology strategy refinement and health checking of current ways of working to establish plans for maturing the approach. Drop us a line if we can assist you.