The View from IT Mountain

For the first time in my life, I went mountain biking. It was exhilarating, frightening, demanding, and fun. Most of all, it provided a unique view. After a long climb to the top of the mountain we came to the edge of the first trail. I also came to the edge of a clearing where I could see everything - the adjoining mountains, the community where I live, and the remarkable path to the top of a small mountain.


While I paused to catch my breath (which was a good long time), I had a chance to think about the unique view that IT has in any organization.  Much like being at the top of a mountain, IT gets to see everything in an organization: the hills, the valleys, and the paths connecting key centres. No other group in an organization has such breadth. Marketing, finance, manufacturing, and HR have incredibly deep understanding of their own valleys. They might also have a wonderful knowledge of how their department connects with some neighbouring organizations in the adjacent valleys. But they do not see the whole connected picture.

Can anyone connect all the dots?

A truly successful IT organization can see the whole picture. Its job is to work with all facets of the organization to build integrated information flows. The role of IT puts the department in a unique position. A successful IT service transcends organizational boundaries. IT delivers service horizontally across the entire organization enabling it to see all the valleys, all the connections, all barriers, and all the opportunities.

How can organizations leverage the broad IT perspective?

To start with,  IT departments need to view themselves as holistic and systemic process improvement groups. They are not just technologists, but broad integrators who bring together people, process, projects, and technology from across many disparate units to deliver unified systemic change. If an IT organization builds trusted relationships with all its partners, it can leverage  its unique perspective through these relations into a powerful wellspring of change for everyone in the organization.

Does IT need help walking to the top of the mountain?

To succeed, organizations cannot bury the IT department at a low level in the organization. Reporting needs to be at the most senior levels in the organization. High level reporting responsibility enables IT to move customer initiatives from a technology focus to a business focus. IT applies the force of broad horizontal connectivity to topple the vertical silos of political dysfunction.

Is simply changing structure enough?

Structure does not change organizations, people do. But people cannot do it without process. IT needs models for benchmarking processes, re-engineering techniques, and process design. Typically IT departments live with these tools on a day-to-day basis and have more experience with them than any other group. The trick is for IT to leverage these tools into integrated agents of progressive change - a series of progressive changes that improves life for customers, staff, shareholders, and the community. The changes succeed when IT's partners adopt and implement processes, such as a common project management discipline, to deliver projects. The spirit of mutuality of interest leads to real success in the implementation of enterprise IT.

IT is horizontal, everyone else is vertical. 

If you keep this horizontal/vertical perspective in mind, you will realize the unique value of IT: a way of integrating enterprise-wide processes into unified and holistic processes. These processes become sustainable competitive advantages for the entire organization. 


Climbing to the top of the mountain is a lot of work. But the view is spectacular. 


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The Perfect IT Department

We spend a lot of time developing IT strategies. A typical strategy starts with a mission, vision, and purpose. I've read several IT strategic plans recently and I have come to the conclusion that organizations have become pretty good at developing these documents. Execution of the plan is tricky, but successful implementation is also becoming a more commonplace skill.

What seems to be missing from these plans is the opportunity to dream. We have become quite good at mechanically developing goals and objectives, then putting in place the processes to get them done. Results are delivered on time, on budget, and in scope. What falls through the cracks is creativity. Creativity is the spark that ignites innovation.

Sometimes we need to dream.

I recently read the actual text of one of my favourite speeches of all time. It was an eye-opener because the passion of the speaker seemed to overwhelm the actual written word. But the text is just as powerful as the delivery. A key line of the speech:

"I have a dream that one day every valley shall be exalted, and every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight;"

I don't have Martin Luther King's eloquence, but his idea is powerful. Let us dream first. The reality and implementation follow the dream. If we were to dream about the perfect IT department, what would it look like? Imagine an IT strategy where contributors were asked to close their eyes and dream of the perfect IT department. What if we could simply imagine what we want to be when we grow up?

Here's my dream IT department ...

Under ideal circumstances, the information technology department is seamlessly integrated into all processes at the organization. The department provides secure and reliable access anywhere, anytime to dependable high performance information technology services. The people who provide the service are trusted and inspire confidence in the technologies they deliver. The department generates innovative ideas supporting the purpose and mission of the organization. Similarly, continuous process improvement ideas are sourced from the information technology department in a collaborative manner.  New projects are delivered within promised timeframes and budgets. Ongoing services meet or exceed customer expectations. People in the information technology department enjoy their work and their customers enjoy working with them. The culture of the department embraces an outstanding client-centric service ethic. Clients of the department embrace technology and enthusiastically work with the department to build a better future for customers and the organization.

Would not the dream create a better mission, vision, and purpose? Once you have the dream, you have the fuel to inspire an exciting strategy. A strategy where IT really can change your world. A strategy where you can make the rough technology plain and the crooked systems straight.

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Who Should IT Report To?

One of the perennial debates in IT is the question: whom should the IT department report to? The CEO? The finance department? The social media team? The head of research and development? The question is like asking how many angels can dance on a micron of silicon. At the risk of appearing to dodge the question, I suggest IT reports to everyone.

Tradition says IT should report into Finance. Historically IT departments evolved out of a corporate need to automate billing, payroll, and other fundamental and crucial financial transactions. Naturally it made sense for IT to report into the finance department. But times change. IT is an integral part of everything everyone does in an organization. IT is an essential part of the value proposition of any product or service. From pizza stores providing real-time delivery tracking to universities providing online degrees, the IT function affects every aspect of the business relationship.

I saw the issue first hand when I was the financial controller for a large IT department. I reported into a CIO whom I greatly admired and respected. One piece of career advice he gave regularly was "never let IT report to Finance." At the time I had a hard time understanding his reasons. Our CFO was a great guy and I worked closely with him because of my particular role in IT. The way our company was organized, both the CIO and CFO reported to the president and everything worked extraordinarily well.

Then the company was sold.

As the new buyer dissected our organization they made an interesting discovery. The single most expensive physical asset in the organization was the IT infrastructure. But instead of leveraging IT as an integrated value generation mechanism, the buyer viewed it a financial asset to divvy up among disparate interests in the new organization. Like a pirate looting plunder, the new owners did not recognize the real value of the treasures they had captured. The assets were squandered because they were only seen from a financial perspective and not a business perspective.

The acquiring company's IT group reported into the CFO and the results of the merger seemed to confirm my boss's advice about the IT reporting relationship with Finance. But in hindsight, that was not the real problem. They were an old style organization where the IT department had a weak voice. IT did not see itself as part of the business. They saw themselves as technology order-takers, not as leaders of the information systems strategy and execution.

As a CIO I've reported into the Finance side of organization and quite enjoyed the relationship. However, the organizational reporting relationship never biased the organizational decision-making process. IT decisions are investments with long term implications for organization success, but financial systems should never receive preferential or biased prioritization simply because of organization hierarchy. Strategic engagement of IT requires broad organization involvement that transcends arbitrary organization structures. A self-aware IT organization perceives itself as reporting to the entire organization, not just the sole linear strand of the hierarchical organization chart.

So how can IT report to everyone? It starts with an attitude - a collective state of mind defined by the IT departmental culture. It requires an open approach to all relationships across the organization and is manifested in a desire to collaborate and integrate and deliver. This open IT culture is rooted in a mutuality of respect among all departments. Whether it is finance, human resources, or manufacturing, the IT folks need to earn their respect by delivering on promises and meeting expectations.

Once the culture is established, relationships are continuously nurtured. You can't do that if you think you have one boss. Much like a consulting company has many customers, an IT organization has a multitude of clients. Specialized treatment of one client because of an organizational reporting relationship comes at the expense of servicing others. A nurturing and open IT culture flourishes in an environment where all clients become the centre of their universe.

Of course the official reporting relationship needs to be comfortable and supportive of the open IT culture. When IT reports to the CEO, this balanced perspective is assumed. In other reporting relationships, the need to be open may be less obvious. The CIO's role is to help everyone understand the need for an IT that meets the needs of the many, not the few.

As to the career advice from my old boss about never letting IT report to the CFO? I disagree. Sometimes IT should report to the CFO. But sometimes it shouldn't. It depends on the particular business model and the technical acumen of the leadership. What matters is that IT has a strong and respected voice throughout the organization. That can only be achieved by a open, service-oriented IT organization. One that identifies with the business and sees itself as part of the organization's bloodstream. One that sees itself as reporting to everyone.

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Your IT Department Only Needs 6 People

I have a confession to make. I am home repair retarded. I can't fix anything around the house that requires tools more complex than screwdrivers and hammers and paint. But I do know exactly what I want done, how I want it done, and what it is worth to me. So I hire experts. When I needed to build a shed I hired folks who spend their lives specializing in home construction and repair and they did a better job than I ever could have done. While they built my shed, I spent my time working on things that I'm good at. We were both productive.

Similar logic applies to IT departments. There can be an almost infinite amount of IT work in any organization. From upgrading the ERP to enabling BYOD (bring your own device), the choice of opportunities is vast. The challenge is not what to do, but what to ask someone else to do. Where does IT draw the line between internal vs. external work?

IT needs to maximize the value of existing resources on the most important activities and deliver other services through new channels and creative partnerships. They cannot do everything internally. To understand what can be divested, organizations must assess IT’s core competencies. Core competencies in an IT organization are functions that are central to supporting the mission of the organization.

The three criteria for assessing whether any particular IT function is a core competency are:

• External service providers cannot perform the function more efficiently for lower cost, 
• Performing the function internally maintains appropriate control of the function in the organization, and 
• The knowledge needed to perform the function is central to the long-term success of the organization. 

Focusing the organization on core competencies requires reviewing the major activities performed by IT and deciding what to keep and what might be delivered in a new manner. Non-core competencies are often well served by partnering with a service provider whose sole specialization is the best possible delivery of that service. This approach is similar to hiring contractors to build my shed. Home construction is not my core competency, so I found someone who specializes in that line of work. Alternatively, why build a shed in the first place if my neighbour has extra space in his shed available for a cheap price?

If you were obliged to take this approach to the logical extreme, the process of assessing core competencies could lead to externalizing almost all the IT work. If an organization were to go to this extreme, what should be left? What are the ultimate core competencies of any IT department? I would suggest the minimal IT organization would consist of only six roles:

1. Chief Information Officer 
2. Enterprise Architect 
3. Project Office Director 
4. Business Administrator 
5. Security Manager 
6. Operations Director 

In this new IT world, there is still a need for a Chief Information Officer (CIO). This individual is responsible for making sure all the organization's IT needs are met. But the CIO's organization becomes a lean team of five staff. Let me describe each of the roles in the next few paragraphs.

The CIO drives IT through visionary leadership that inspires all staff and earns the confidence of clients. The CIO leads the organization's IT with strategic thinking and operational decisiveness, and is capable of bringing the entire organization through sustained periods of significant IT change. The CIO is a leader whose advice and guidance is respected for all information technology issues. These issues may not necessarily be part of the IT function, but the leader needs to be sufficiently well respected across the organization to be sought out for advice and guidance on any IT matter. The CIO ensures appropriate stewardship processes are in place and establishes information systems ethics.

If the bulk of the IT work is no longer a core competency, then the new challenge becomes how to link all the external service providers (contractors, hosted services, outsourcers, etc.) together. The Enterprise Architect (EA) owns this responsibility. The EA's first job is to understand and articulate how technologies, applications, and data interrelate. The second part of the job is to build a roadmap of where each of these functions will evolve. Defining context, setting direction, and linking external sources into a seamless information technology service is the role of the EA in this optimized organization.

With multiple service delivery providers come multiple projects. The organization needs to set non-negotiable project management processes and checkpoints to control vendor projects. Consistency of project delivery is essential to the management of expectations by IT's clients. The Project Office Director is accountable for all projects, irrespective of whether the staff are internal or external. Integrated and seamless delivery of project results are demanded and this director is responsible for ensuring everyone works together as single project team.

Since external suppliers will do most of the IT work, contract management and business relationships are essential to the success of the new IT organization. The Business Administrator manages the RFP writing, plans the operational and capital budgets, and handles the business affairs of the IT. The Business Administrator works closely with suppliers to negotiate IT services and projects required by the overall organization. The negotiations are done within the context of the enterprise architecture and the Project Office Director sets the project service delivery expectations.

The importance of IT security, data privacy, and compliance requires the presence of a full time Security Manager. The ideal IT environment would have unassailable policies, practices, and standards that are proactive, not reactive. Strong policy and enforcement is essential if external service providers are to be trusted with an organization's IT assets. The Security Manager is responsible for creating the policies and ensuring the appropriate practices are in place to enforce them as part of all contract negotiations.

The Operations Director is accountable for all production services. These operations must deliver according to service level agreements with external providers. This Director creates meaningful performance and capacity metrics. These are measures that the IT organization's clients understand. The Operations Director works closely with vendors to provide them with growth patterns for usage. Expected demand forecasts become part of the contract negotiation process and the Operations Director is responsible for meeting these needs by working with vendors.

Arguably, an IT organization could easily be larger than six people. But if you had to boil the organization down to its absolute minimum, these are the six roles you do not want to externalize. They are your fundamental core IT competencies.

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IT Governance is Dead. Long live IT Stewardship.

There was a windstorm on Vancouver Island last night - one that blows off the Pacific and seems to make the whole island shudder. There was a weird noise that seemed to be coming from inside the house. As I lay in bed, the last thing I wanted to do was wander around the house looking for the problem. So I kept telling myself it was just my imagination and everything was ok. Then BLAM! Something fell inside the house. There was no making excuse anymore. I had to leap out of bed and deal with it.

IT governance has become one of those issues. For the past ten years the holy grail of IT has been governance. But the wind has been shaking the house of governance for sometime now. Over the years I have seen a number of organizations create governance structures and governance models and governance committees. Typically these models are well planned and follow all the appropriate literature. Some processes achieve moderate success while others continue to struggle.

Typically the CIO creates the governance model, chairs the meetings, sets the agenda, and drives the action. They are attempting to govern IT in the enterprise. But they are attempting to govern someone else’s assets. What gets forgotten in these models is the reason for creating IT departments in the first place. IT departments exist to support the strategic and operational goals of the business. IT was created to realize the dreams and aspirations of their stakeholders. The assets are not theirs to govern. The mistaken notion that IT can govern someone else's property is the root of the problem.

I suggest we shift our thinking from governance to stewardship. Stewardship is the responsibility to take care of something belonging to someone else. By moving from a model where IT attempts to govern someone else’s assets to a model where IT recognizes the true ownership of the assets changes everything.

In a stewardship model, the needs and concerns of IT clients actively influence the decision-making process of the IT department. The decision-making process becomes transparent to stakeholders. The clarity creates trust among the IT department’s clients.

The intention of a stewardship process is to engage clients in enterprise IT decision-making. The organization uses an open and transparent process where clients actively and regularly participate in guiding the future of technology at the organization. The role of the IT department is to facilitate the process of decision-making, not to govern the decision-making.

The purpose of a vibrant stewardship model is to engage IT stakeholders in the prioritization of work and the selection of the criteria that determines those priorities. Successful stewardship allows customers to influence and guide IT planning, policy, and priorities for the entire organization. All appropriate stakeholders discuss information systems investments in a collaborative fashion.

Stewardship is the open, honest, and responsible management of something entrusted to your care. Governance is about making decisions that set expectations, grant power, or measure performance. These are two different worlds representing significantly different mindsets. Governance can lead to IT forgetting its role in the organization and attempting to assume more responsibility than is appropriate. Stewardship is about helping the organization realize its information technology dreams and aspirations.

In case you were worried about my house, everything was okay. The wind blew open a poorly fastened door and a painting that was loaned to us by my mother-in-law was blown to the floor. I fixed the door so it will never shake loose again. Hopefully I have improved my stewardship of my mother-in-law’s painting.

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"Of Revenge"

The most unproductive urge in management is revenge. It is an irrational emotion created by a perceived injustice and it produces irrational behaviour with wasted energy. Over many years of mentoring and coaching I've seen hundreds of managers squander their leadership currency by dwelling on a grudge. 


There is no room for revenge in business. Revenge is like quicksand: the angrier you get, the faster you sink. I've always told folks that history is over, so get over it. Move on: build, create, and forgive. Of course that advice is easier said than done. So over the years I've looked for published material to help prevent folks from sinking in the revenge quicksand. 


There is a lot of well-written business material to provide guidance, but I have never found anything with much lasting impact until a few weeks ago. I was helping my son with an essay on Hamlet, a play centred around a character tortured by the need to seek revenge. In the process of researching the paper my son came across a wonderful quote from a Francis Bacon essay titled "Of Revenge": 

"Certainly, in taking revenge, a man is but even with his enemy; but in passing it over, he is superior; for it is a prince’s part to pardon."

The essay containing this quote was written over 400 years ago, yet it has enduring truth for current managers. We all feel wronged at times during the course of leading in an organization. Whether we get passed over for a promotion, cheated out of a bonus, or caught in a downsizing.  Dwelling on the event is fruitless. Focusing on the negative simply throws you into the infinite vortex of despair. 


Focus on what you are going to do next. The past may be prologue. But it has passed. The future will only start when you rise above the irrelevant self-imposed prison created by wanting revenge. The future belongs to the optimist.


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Part 16 - When going out into the Universe, remember: "Boldly go where no man has gone before!"

(This is part 16 in a series of 16 posts about IT leadership in higher education titled Everything I Need to Know about IT Management I Learned from Star Trek. See Part 0 - Introduction for the full list.)

Every episode of the original Star Trek began with the proclamation to "Boldly go where no man has gone before!" For folks working with technology, this statement is a natural assumption. But there are two caveats.

First, I’m a big believer in early to beta, late to production. What I mean is that it is good to experiment with new technologies in beta test mode. But we have an obligation to our organizations to treat production as sacred. Experiment to learn but be cautious about what you give to your clients who trust you for reliable production-ready solutions. No matter how much we like cool new toys; we must ensure they will work reliably in production.

For example, I worked at a Canadian organization where one of our peers moved some services to a foreign cloud computing service. At the time there were huge potential privacy and legislative compliance concerns about moving personal data out of the country. Although we wanted to do something similar, the legal and technical analysis was expensive and time consuming.

Pioneers have arrows in their backs, so we let them go first. They figured out the privacy issues, they sorted out legislation concerns, and they pioneered the first contract of its type in Canada. Once the first-mover problems were sorted out, the way was paved for cheaper, quicker, and less painful implementation at other similar organizations.

That was caveat #1. The second caveat is related to the time and period when the original Star Trek was aired. It was a product of the mid 1960's when political correctness was only beginning. You should boldly go where no person has gone before!

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