Why did the case study organization needed a new IT strategy and IT operating model?

One key player for a successful digital transformation of organizations is the IT department. Nevertheless, many IT departments are not set-up in the best way to support the digital transformation.

I want to share a story of an organization in the life science sector – about their challenges with the IT department and how they addressed these challenges. As they defined a new operating model for their IT department, they involved the business departments (like sales & marketing, finance, operations, HR and so on) early in the strategy process.

The organization had some challenges with the IT department:

• Business and IT were not fully aligned due to unclear business expectations, lack of IT governance for prioritizing demand, and undefined capabilities, skills, and resources
• The business expected better support for their digital transformation and required latest technologies for specific areas (e.g. data insights)

Therefore, a strategic project was initiated. The main objectives of this project have been to define the future IT strategy, the future IT operating model (Details about the dimensions of an operating model can be found in this article: Link) and to develop a roadmap of strategic initiatives to get to the target state.

Why the business departments should be involved in the IT strategy creation process?

To create an IT operating model that is fit-for-purpose and that addresses the above-mentioned challenges, it is key to involve the business departments as main stakeholders and (internal) clients of the IT department. Involving the business early is crucial for several reasons:

• Better alignment with business strategy and goals
• Improved understanding of business requirements and challenges
• Better collaboration between business and IT, not only in the strategy project but beyond
• Building mutual trust
• Better budget allocation as IT understands business priorities

How to best involve the business departments in the IT strategy creation process?

Initially, it was clear that business departments needed to be involved in defining the future IT operating model. To ensure alignment, business stakeholders participated in a 3-step approach:

Step 1: Conduct a business survey

• An online questionnaire to a broad variety of business users (across different hierarchical levels and departments) has been sent out
• This questionnaire covered a broad range of topics like current business challenges, business strategy, satisfaction with IT services, gaps in IT capabilities and so on
• For these questions, a variety of question types, including single and multiple choice, rankings, and open-text responses have been utilized
• The answers have been consolidated and patterns identified

Step 2: Conduct workshops

• More than 10 workshops with representatives of the different business departments and from IT have been organized
• Every workshop lasted between 2 – 3 hours
• During the workshops, the survey findings (on business department and organizational level) have been presented
• Afterwards, during an open conversation, the pain points, challenges and detailed requirements have been understood and discussed
• At the end, the business and IT representatives jointly discussed future solutions and wishes towards the IT department

Step 3: Management discussion

• In the last step, a meeting with the top management of the organization was set-up
• During this meeting, the consolidated findings and requirements towards IT have been discussed and the viewpoint of the top management collected
• Furthermore, the requirements towards IT have been prioritized

These inputs have shaped the IT strategy and operating model. Future articles will detail the process of developing the IT strategy and the IT operating model.

What are the key topics that you should consider?

Based on the learnings of this project, it is key to take care on following topics:

• Set the right expectations to the business stakeholders in the beginning, especially that IT will not be able to fulfill all the wishes that the business departments might have
• Make sure that all relevant stakeholders are identified in the beginning and involved properly
• It is key that the different business departments have a common understanding about the overall strategic direction of the organization
• Add explanations to the online survey, limit the use of technical terms and add a glossary, if required
• Use the workshops as a starting point for a better alignment and collaboration between IT and business departments
• Create an open atmosphere in workshops and avoid blame games
• Discuss business department challenges with IT in the workshop, but highlight successes as well to get a balanced view
• Do the workshop on-site, not virtually or hybrid, whenever possible
• Make sure that the business stakeholders stay involved and informed as the IT strategy / IT operating model project progresses