Divergent CIO

An innovative, transformative, and digital leader experienced in Technology and Executive Leadership

Implementing a Successful Organizational Transformation

Business TransformationNo one always likes change, but change is a necessary catalyst to improve the fundamentals of any organization. Transformation requires strong, authentic leadership in order to be successful; if not, failure is a very real possibility. CIO says that in many transformation programs, sufficient checks and balances exist so that failure does not readily occur; however, if not managed well, transformation programs can be delivered late, over-budget and far off the track of the original vision. Statistics show that less than 40 percent of transformation programs are successful, due to a disconnect that exists in the goals of such programs and the reality of resources that can be devoted to it (time, money, personnel, etc.).

That's where the implementation of a Transformation Management Office (TMO) comes in. Someone has to be at the helm of the operation who not only recognizes the inherent challenges that come with implementing enterprise transformation and the work that must be done to achieve it, but who also can guarantee streamlined, spot-on execution at just the right pace with all eyes on the finish line. Combining strategy with clear-cut goals for implementation is critical for the TMO.


What Does a TMO Do?
This part of an organization is the crux of any successful transformation, with the central duty being to implement the complex task of adding value and accountability to the process. In general, the TMO will:

  • Lead the charge in coming up with creative, workable ideas designed to fuel the transformation effort and ensure it has the steam to move forward.
  • Offer a simple yet detailed approach to the process so executives and other key personnel can take those ideas and run with them.
  • Analyze how the transformation will take place and align with corporate vision.
  • Ensure the program has clear objectives.
  • Utilizes a streamlined operating model where efficiency and cost effectiveness take center stage.

The bottom line is, organizational transformation is disruptive. It's uncomfortable for many, and it takes time. That's why a TMO must be brought on board to concentrate on the specific tasks involved in orchestrating this endeavor, following it through to its completion despite such roadblocks. Putting this task on front-line staff and executives too entrenched in the organization already is a recipe for disaster. This is why a traditional project management office (PMO) is not a good choice to lead such an initiative. They deal with administration and compliance on a regular basis, and therefore would not be a good fit for the challenges that are part and parcel of a large transformation initiative.

The difference between success and failure of an organizational transformation often comes down to action. Your TMO needs to walk a fine line between strategy and clear objectives on one side but also implementation and action on the other. Anyone can sit in a board room and contemplate goals. It takes a strong leadership team to take those talking points and apply them in a value-driven way for success. Which side of the line will you be on?

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How CIOs Can Demonstrate the Value of IT

CIOs Demonstrate ValueCIOs have an inherent duty to demonstrate the value of their departments, and this is never more true than with IT. It's the same across other platforms of a business, from sales to finance to operations. With technology becoming more and more commoditized, companies are measuring the value of their IT departments, and thus services, in regards to the preservation of business value, creating benchmarks as a result of those outcomes, points out CIO. NO matter what department you're talking about, the same principles of revenue generation and top-notch operations are used to not only evaluate but also prioritize and measure various projects to boost shareholder value.


The IT department in any given company is an important cog in the output machine. Take a mobile sales platform for a healthcare EMR system, for example. If something fails at the IT level, the whole system gets hung up, resulting in the possibility of a patient not gaining access to the medication they need to be healthy. It's too easy to imagine a bunch of IT pros sitting in a back room somewhere far removed from the daily operations of a business. Not so. They have just as much impact on the organization's failure or success as anyone else.


Flexibility

Being flexible in an ever-demanding and complex environment is an important facet of an IT department, one that can make or break the operational capacity of an organization. As such, IT is required to provide more service and solutions above and beyond just "keeping the lights on." In fact, IT and its partnership with business balance both past and present collaborations to determine future successes. Because IT is most useful when projects are delivered successfully to the end consumer, its value is dependent on persuading management to measure positive value-added contributions as well as maintain a steady presence -- even despite such a complex environment. 


Business Capability
Much more than a technological-minded organism, IT offers a great value to the business capabilities of a given company, not just in the area of technology capability and contributions. IT as a cohesive unit can provide valuable input on business decisions, leading to solutions that benefit the company as a whole. So what can the CIO and IT do together to demonstrate effectiveness to the rest of the organization?

Business operates on a principle of "what's in it for me?" -- after all, this is how competition thrives. Therefore, IT needs to:

  • Realize what their pain points are
  • Identify areas of improvement, specifically in relation to IT
  • Provide a strategic advantage from a productivity perspective
  • Work on developing a partnership mentality
  • Demonstrate value instance by instance, with clear objectives

As the business strategist, the CIO needs to ensure IT's strategic value is visible to the rest of the organization. Their position of leadership enables them to execute IT strategy, goals and objectives, and ensure they are aligned with the culture of the company as a whole. Driving business process improvements, IT becomes just as important a link in the chain as every other department when it comes to solutions that align with the corporate vision.

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