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Trust and Partnership
Trust and Partnership was developed to enhance the enterprise s capabilities for exploiting IT to maximum advantage. Rather than a collection of methodologies, the book provides an overview of the mindsets, mental models, and management commitments required to develop an environment in which the potential of information technology is fully exploited by the enterprise. With hard–hitting self–assessments throughout, and a focus on putting concepts into practice, the book provides IT and business professionals the topic overview and tools required to effect change in their organizations immediately. The authors fully explore topics beyond a mere high–level overview, allowing managers to focus on areas of improvement that are specific to their organizations, including:
- The role of IT in addressing challenges facing the enterprise
- Business partnerships and trust
- The strategic importance of sourcing and execution
- Strategic IT management
- Planning and innovation to enable business transformation
- Portfolio management to make business–value investment decisions
- Management and organization to establish accountability
- Value development to produce transformation and change
- IT services and sourcing to achieve operational excellence
- Financial and performance management to provide transparency in cost and performance
- Roadmap for strategic IT management
- Strategic IT management maturity model
PREFACE xiii
Important Message to the Individual Reader xvii
A Note on Vocabulary and Cultural Differences xvii
A Note on Our Perspectives and Prior Work xxi
Notes and Acknowledgments xxii
Notes xxiv
PART ONE The Challenges 1
CHAPTER 1 Business and IT in Turbulent Times 3
Turbulence and Uncertainty Challenge Enterprises 3
This Is Not about Alignment (Entirely) 5
The Problem of Business and IT Relationships 6
Strategic IT Management Changes the Mental Models about IT in the Enterprise 20
To Whom Are We Writing? Who Is Our Audience? Whose Mental Models Are We Changing? 25
Notes 26
CHAPTER 2 The Barrier: Trust and Partnership 29
Trust and Performance Are Highly Correlated 29
Trust and Partnership Are Highly Correlated 33
Context and Performance Affect Trust and Ability to Partner 38
Trust and the Total Value Performance Model 40
Trust and Governance 42
A Case of Broken Trust 43
The Role of Executive Leadership 44
Notes 46
CHAPTER 3 A Staircase to Trust 47
What Is Trust? 47
Dimensions of Trust 48
Trust Improves Business Performance 49
Can Trust between Business and IT Be Built? 50
Personal Trust versus Organizational Trust 53
Maslow s Hierarchy of Needs and IT 53
Business Requirements for Total Value Performance 58
How Does Trust Affect IT Strategy in Turbulent Times? 59
Producing Business Outcomes An Assessment 60
References 62
Notes 62
CHAPTER 4 IT Strategy in Turbulent Environments 65
Change and Turbulence Defined 65
How Do Organizations Cope with Change and Turbulence? 70
Assessing Turbulence in the Enterprise 76
Organizational Capabilities and Environmental Turbulence 78
How Do IT and IT Management Cope with Turbulence and Change? 82
Producing Business Outcomes Despite Turbulence and Uncertainty: An Assessment 84
References 86
Notes 86
CHAPTER 5 Turbulence in Information Technology 89
History of Technology Turbulence 90
The Impact of Technology Turbulence 122
Enterprise Implications Based on Turbulence in IT 125
Technology Turbulence Assessment 127
References 128
Notes 129
CHAPTER 6 The Effects of IT Sourcing 131
The IT Services Supplier as a Strategic Concern 131
Strategic IT Outsourcing 132
The Impact of Trust and Turbulence 134
Looking Ahead 136
References 137
Notes 138
PART TWO Principles for Transforming Business in Turbulent Times 139
Strategic IT Management Principles for the Business and IT Relationship 140
A Scorecard for Strategic IT Management Principles 143
Note 144
CHAPTER 7 Requirements for Strategic IT Management 145
The Impact of Turbulence and Trust 145
The Impact of Turbulence 146
The Impact of Trust 149
Turbulence and Trust: Requirements for Business IT Partnership 150
Demand and Supply Management of IT 157
Demand and Supply Impact on Outsourcing 160
To Conclude: The Need for Relational Governance 164
Self–Assessment: IT Competencies 166
Notes 168
CHAPTER 8 The Service Relationship 171
IT Is a Service Business 172
Service Performance Is the Foundation for IT Credibility and Trust 177
IT Service Management Is Critical 181
So What? 188
Conclusion and Scorecards 190
Scorecard Evaluation 193
Notes 194
CHAPTER 9 The Partnership Relationship 197
Reasons for the Business IT Partnership 198
Defining the Business IT Partnership 202
Dealing with Culture, Behavior, and Silos 206
Implementing the Business IT Partnership 212
Engaging the Business 213
Implementing Partnerships Requires Agreement on Roles for the Partners 217
Is This a Real Problem? 220
Teaming Is the New Partnership 221
Partners Exist at Every Level 222
Summary 222
Partnership Scorecards 222
Notes 225
CHAPTER 10 The Leadership Required 227
Goal #1: Leadership Is Required for Partnership, Trust, and Common Goals 228
Goal #2: Leadership Requires Leaders and a Good Understanding of the Leadership Requirements 230
Goal #3: The Requirements for (Proactive) Transactional Leadership 231
Goal #4: The Requirements for Transformational Leadership 232
Goal #5: Leadership Is Earned through Credibility, Trust, and Culture 233
Leadership Scorecard 234
Notes 236
CHAPTER 11 Enterprise IT Capabilities 237
Connecting IT Value, IT Competence, and Enterprise IT Capabilities 239
Connecting IT Capability with IT Methodologies and Processes 240
Breaking Down the Barriers between IT and Business: Enterprise IT Capabilities 241
Enterprise IT Capability Overview 243
The Core Ideas for Enterprise IT Capabilities 247
Assessing Enterprise Performance against Requirements 249
Reviewing the Initial Enterprise IT Capability Assessments 258
IT s Capability to Change: The IT Dynamic Capability 259
Reference 261
Notes 261
PART THREE The Road to Strategic IT Management 263
Seven Fundamental Capabilities of the Enterprise 265
Good Methodologies and Processes Aren t Enough 266
The Challenge to CEOs and CIOs: What Exactly Should Be Done? 266
Strategic IT Management Applies to More than Just the Current IT Organization(s) 269
Business Outcomes Are Required 270
Notes 272
CHAPTER 12 Strategic Enterprise IT Capabilities and Competencies 273
Enterprise IT Capability: Planning & Innovation 274
Strategic IT Management: The Systemic Capabilities for Producing Outcomes for Planning & Innovation 279
Strategic IT Management: The Business Outcomes for Planning & Innovation 281
What Is the Current Status with Planning & Innovation? 284
Planning & Innovation Scorecard 284
Bottom Line: Planning & Innovation Performance 286
Notes 287
CHAPTER 13 Tactical Enterprise IT Capabilities and Competencies 289
Enterprise IT Capability: Information & Intelligence 290
Enterprise IT Capability: Development & Transformation 304
Enterprise IT Capability: Service & Resource Optimization 314
Summary: Tactical Enterprise IT Capabilities and Competencies 322
Notes 323
CHAPTER 14 Operational Enterprise IT Capabilities and Competencies 325
Enterprise IT Capability: Service & Operational Excellence 325
Enterprise IT Capability: Sourcing 339
Enterprise IT Capability: Cost & Performance 347
Summary: Operational Enterprise IT Capabilities and Competencies 356
Notes 357
CHAPTER 15 Managing Complex Business IT Relationships 359
Clear Strategic Positioning 360
Formal Organizational Arrangements 361
Trust 364
Notes 364
PART FOUR Next Steps 367
Example Enterprises 371
Example #1: Angus International 371
Example #2: Global Financial Services 380
Example #3: National Governmental Agency 384
Summary 388
CHAPTER 16 What Should Be Done? 389
Applying Frameworks to Describe the Enterprise 392
The Power of Frameworks 393
Organizational Context 395
Turbulence and Change 401
What Needs to Be Done? 405
Summary 412
Notes 413
CHAPTER 17 Requirements for CIO and IT Leadership 415
Message #1: The CIO and IT Managers Have Important To Do s on Their Lists 416
Message #2: The Business IT Partnership Requires CIO and IT Management Leadership 418
Message #3: Enterprises Need Strategic IT Management and Enterprise IT Capabilities 420
Message #4: The CIO Needs to Manage the Technology Well; This Is Necessary, but Not Sufficient 422
Message #5: Authority, Control, and Reporting to the CEO Are Not Sufficient 425
Message #6: Be Faster; Be Flexible 426
Message #7: An Active, Proactive Leadership Approach Is Required, with Clear Vision 427
Conclusions: For the CIO, What Does Strategic IT Management Offer? 432
Notes 434
CHAPTER 18 Requirements for CEO and Business Leadership 437
Message #1: The Enterprise Needs Strategic IT Management 438
Message #2: Strategic IT Management Requires CEO Leadership for Organizational Context, Culture, and Change 439
Message #3: The CEO Provides the Enterprise Leadership to Generate and Actively Communicate the Business Vision and IT 441
Message #4: The CEO Builds and Supports the Environment for Partnership, Teamwork, Collaboration 443
Message #5: The CEO Builds and Supports IT Governance as Critical to Change Management 444
Message #6: Engage the CMO, CFO, and Board in Strategic IT Management 444
Message #7: Good IT Is Necessary; Do Not Accept Poor Performance 445
Messages to Business Managers and Professionals 445
Concluding Message to the CEO 446
Self–Assessment for Business Leadership 448
Notes 449
CHAPTER 19 Reflections and Recommendations 451
Summarizing the Enterprise IT Capabilities and Their Importance 451
The Bottom Line 457
ABOUT THE AUTHORS 459
INDEX 461
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ROBERT J. BENSON is a Fellow at Cutter Consortium s Business Technology Strategies practice and Principal with The Beta Group, a technology management consulting firm. He has consulted with firms and government in the United States, Mexico, and Europe, co–authored several books on IT value and management, and written more than 100 Cutter Consortium publications on business technology strategy and value, IT governance, and IT finance. He is Professor of Information Management at Tilburg University, the Netherlands.
PIETER M. RIBBERS is Professor of Business Information Management at Tilburg University and TiasNimbas Business School (the Netherlands), where he is responsible for the development of executive education in Information Management. He has contributed to national and international journals with scientific and professional publications and co–authored several books. As a consultant he worked for global companies, especially in the field of strategic IT governance, scenario development, and information economics.
RONALD B. BLITSTEIN is Director of Cutter s Business Technology Strategies practice. His 30–year career includes extensive international leadership experience driving all facets of information management organizations including infrastructure operations, systems development, organization transformation, and business innovation. He has worked internationally with governments, IGOs, and corporations throughout North America, Europe, Africa, and Asia.
