A large amount of money is spent on Information Technology each year. Organisations regularly attempt to improve IT efficiency and get a better return on the money spent. According to a January 2014 article by PWC, businesses still are unsure if they are getting the most from their IT investments. CEOs and business leaders ask, “What are we getting from our IT investment?” and “are we spending the right amount to get the outcomes?” CFOs ask, “How do we know whether we are getting the value we expected?” The CIOs struggle with answering the questions, “How do I better explain to the business what it takes to run IT?” and “how do I get the business to understand how it affects the IT budget?”. The marketplace is becoming more dynamic and competitive and product life-cycles are becoming shorter. Organisations are seeking to become more agile. Making changes to the interconnected legacy systems is complex and takes too long. When the business asks for rapid change, IT cannot deliver. Hence, IT appears to be of lower value. Continue reading “Ensuring IT Value for Money”
In a recent TED talk by BCGs Yves Morieux suggested six simple rules to manage complexity and improve agility and effectiveness. These rules are worth sharing. The world is getting increasingly complex. There are more demands from customers, shareholders and regulators. There is ever-increasing competition. The change is occurring faster and it is getting difficult to create value. Organisations typically respond by adding more rules, structures and scorecards. This, in, turn just increases complexity and makes it harder for the staff to actually do the work. Managers often spend 40% of time writing reports and the remaining time in coordination meeting of one type or another. They often have several performance criteria to meet. Boston Consulting Group (BCG) complexity index has gone sixfold since 1955. Continue reading “Six simple rules to manage complexity”
Many CIOs are often faced with the challenge of building or upgrading the PMO. There is often a temptation to go for ‘best practice’. As result, some CIOs set the goals too high. I have seen many a organisations bogged down with PMO processes that everyone detests but without any improvement in effectiveness. Before we can talk about setting or upgrading PMO, we need to know why your organisation needs a PMO? Because one type of PMO does not fit all organisations. Continue reading “PMO : one size doesn’t fit all”
Decision-making is what leaders and managers do in the business everyday. Good decisions help the organisations become successful. In the information age, despite all the resources and information available to managers, they often make poor decisions.
There are many reasons why bad decisions are made. Managers think of major decisions as choices they must make. The thinking is ‘great men make great decisions’. In making their choices, they rely on their experience, preferences and judgement. While these are necessary, they are not enough to make sure that good decisions are made time and again. There are many ‘decision traps’ that managers fall into. To avoid these traps, one needs to treat decision-making as a process and not just a choice. Like all work, when there are right people, tools and processes are brought to bear, the results can be consistently good. Continue reading “On Making Good Decisions”
IT Strategy development is not an easy process. It takes a lot of effort from IT Leaders, architects and business stakeholders. Even after a huge amount of effort, we often hear that within a short time the strategy is forgotten. In some organisations, one or two new initiatives can be triggered as a result of the strategy. But soon the rest of the strategy is put on the back burner. Continue reading “Ten Tips for an Effective IT Strategy”
Technology is becoming increasingly important to businesses. Businesses depend on technology not just for process automation or ERP (Enterprise Resource Planning). Increasingly, technology is providing new operational capabilities, opening up new markets, and providing opportunities to gain better customer insights. It is fair to say that technology is now integrated in the way businesses work. Understanding the implications of technology trends has become critical for the future success and survival of businesses. Continue reading “Enhancing Board’s Technology Agenda”