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February 3, 2012

6 Reasons That IT / Business Alignment May Be Impossible To Do

You Can't Align If You Can't Communicate

You Can't Align If You Can't Communicate

A quick quiz for you: what has been the #1 task on every CIO’s to-do list for the better part of the past 20 years? If you guessed “aligning IT with the rest of the business” then you are correct. This has been an IT goal for the past 20 years? What’s up with that? When you become CIO what are you going to do to solve this problem. Can it even be solved?

It’s All About Communication

Why has something that sounds so simple when we talk about it been so hard for CIOs to do? Tony Kontzer over at CIO Insight has taken a look at what’s been holding CIOs back and he’s come up with one answer: communication.

I’m pretty sure that we all know where this one is going. The non-IT business folks like to spend their time talking in business terms and we over on the IT side of the house seem to be only able to communicate using IT jargon. The results of this inability to communicate can be disastrous.

The Tower Of Babel — IT Style

When the business side of the house and the IT side of the house find it hard to communicate, what happens is that they simply stop communicating. When this happens, each side goes off and starts to do its own thing.

I can’t tell you how many firms that I’ve worked for where I’ve seen this happen. When communication breaks down between IT and the rest of the business is when you start to see the multiplying factor start to show up: multiple email systems, multiple ERP applications, etc.

From a CIO perspective, this is the worst thing in the world that can happen. The reason is that every IT system that gets added to the company means that there is one more system that needs to supported forever and that boosts the cost of having the IT department do work that does nothing to help the company’s bottom line.

The Big 6

When you become CIO, how will you be able to measure how well the IT department and the rest of the company are doing in trying to align themselves? Well, you’ll have to fall back on what everyone in IT loves the most: metrics. The trick is knowing what needs to be measured. Here are the top six alignment metrics as recommended by the Society for Information Management (SIM):

  1. Communication Channels: Have effective communications channels been established between the IT department and the other departments in the firm? Are these channels being used?
  2. Metrics: are metrics in place and are they being measured in order to determine where the firm stands in it’s efforts to align how the business processes operate and what the IT department spends its time working on?
  3. Governance: are there processes in place that will ensure that what IT works on lines up with what the company’s true business needs are?
  4. Partnership: is there a partnership between IT and the rest of the departments where each is taking actions to make the other more successful?
  5. HR: does the HR department understand what the company is trying to align and are they taking action to attract and retain the talent that will be needed to make this happen?
  6. Technology: are the right tools in place and available to be used in order to drive the changes that will be needed to transform how business is done once the alignment has occurred?

What All Of This Means To You

For way too long CIOs have been looking for ways to try to align what IT does with what the rest of the business needs. So far they have not been successful.

The primary stumbling block has been the simple fact that there exists an enormous two-way communications gap between the IT department and the rest of the firm. IT communicates using technical terms that nobody else knows about while the rest of the firm communicates using business terms that make no sense to the IT staff.

A first step in finally bridging this gap is to implement the six alignment process metrics that we’ve identified. When you become CIO these will provide you with a way to measure your progress in finally getting the IT department to become a meaningful part of the firm. Nobody ever said that this was going to be easy, but at least now you have a plan for how you can accomplish the impossible.

Contact Blue Elephant Consulting

Contact Blue Elephant Consulting to find out how your team can be trained to be ready for their shot at the top spot. We’ve can lay out the skills that they will need to develop. By working with Blue Elephant, your IT team can be ready for the day that they call their name to become the firm’s next CIO…!

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