Business Strategy Evaluation – Circular, Circular Management, Digitalisation, IT Governance, IT Strategy Assessment, Line Planning, Response Time, Strategic Planning, Time to Market
An agile IT strategy (circular) approach will actually reduce response time to new trends – typically 3-4 months! Compare that response time to a 12-18 month response time with a typical line plan! Fast response time is a competitive advantage for the digital age – fast time-to-market!
Business Strategy Evaluation
In today’s digital society, it’s important to think back to the era before Facebook, Netflix and Spotify. How did we survive without instant access to information? I grew up in a linear and conformist society in the 1980s Our two TV channels were broadcasting between 16 and 23 and there was nothing to watch outside of that We had analog phones, radios and newspapers delivered once a day News and information were frightening and valuable In industry, we talk about lean, process, waterfall models and productivity as sources of competition. The digital revolution began with the Internet in the 1990s and rapidly led us to where we are today It is an exciting and challenging journey to redefine many industries, societies and the preconditions for living our lives. Today, we are moving from a linear society to a more circular and iterative society based on consumer demand for instant and valuable services and information. The key changes are unpredictability, market-to-market movement and changing consumer behavior – requiring new professionalisation. But when we look at how companies and IT organizations are managed, it’s like traveling back to the 1980s with linear management and planning. Why is senior management not adapting to the digital age?
Solution: Summary According To Electronic Business Strategy Evaluation
Definition: A serial number based on activity with a clear start and end date The purpose of linear planning is to create an efficient and controlled process that will produce an outcome (a fixed goal). For example, in linear strategic planning many activities (trend analysis, strategic revision, budgeting, KPI/goal setting) are structured in a sequential (clear start and end date) sequence.
Definition: Circular management is based on repeating (often rapidly) key activities that have no start or end date. Circular management aims to respond quickly to new trends and forces in the industry A prerequisite for circular management is an unpredictable and dynamic environment without fixed objectives or market conditions. For example, agile development where applications are developed in sprints based on business priorities (value creation) backlog.
“It takes about 12-18 months for an IT organization (using linear planning) to respond to new trends, as the linear planning process must be followed. How does it support business competition?
As the business environment becomes digital, companies and IT organizations need to adapt their management style to a more rounded model to respond quickly to new trends, opportunities and threats. An IT organization (using linear planning) takes about 12-18 months to respond to new trends, as a linear planning process must be followed. There is only one window to collect information (trends) and that is usually within a few weeks in the spring If there is a trend at any other time, we will have to wait until next year If I challenge a company with a linear plan, I will probably launch a new product or technology in November/December because my competitor will need 12-18 months to respond. This will give me time to work on the market! Excellent!
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A key area for circular planning is the IT strategic planning area This is the area where IT defines how business value is created and delivered – and often using linear planning. Based on experience and knowledge in IT strategy, digitalization and performance management, I have developed principles (manifesto) for an agile IT strategy to support cyclical strategic planning:
An agile IT strategy approach will reduce response time to new trends – typically 3-4 months! Compare that response time to a 12-18 month response time with a typical line plan! Fast response time is a competitive advantage for the digital age – fast time-to-market!
It is important to understand that circular management was not invented “just for fun” but is the result of a changing business environment. It is this new business imperative that drives the need for more rounded and iterative management of business and IT – not the other way around. IT is driven to support and build business competitiveness – and therefore needs to adapt to market conditions As the market moves faster (via digitization), IT needs to keep pace – or the business will boom and bust. That’s not an option!
“The more complex the environment (digitization) and the more ‘rigid’ the goals (performance), the more flexibility the control system (governance) needs to have: ‘only diversity can embrace diversity’. Failure to provide the ‘necessary diversity’ leads to instability (booms and busts) and ultimately system failure.
Strategy Statement: Competitive Advantage, Objectives, Scope
When I talk to various IT organizations, I hear from them the need for better speed and agility as they create value – time to market business ambitions. These are easy words to say, but hard to practice When I ask – “What’s your plan to improve speed and agility” – most IT executives fall silent because they’ve already given up. I often hear stories of how many times they’ve tried to change IT without success – and now they’re not sure it’s possible. Gone is the power for leadership and change If you don’t believe in change – nothing will! It is a huge challenge and requires a completely different mindset and attitude – not present in an IT organization Digitalization is essentially a mental journey of people and mindsets where we challenge our traditional linear models and ourselves.
Circular planning and management is the way to improve time-to-market and digital competitiveness In fact, 75% of business and IT managers say traditional governance (planning, budgeting and performance management) cannot cope with unexpected changes and add value to the business and customers (www.bbrt.org). At the heart of the problem are “command and control” models and long-term performance contracts that do not support the new digital prerequisites. The question I ask is – do you have the courage to challenge your conventional wisdom to drive business performance? Are you interested in speeding up time-to-market (response time) in an IT organization? Let me tell you the answer – it will change your life!
“Frankly, very few IT strategies have anything to do with change agendas or business competitiveness. At best, they are mainly lists of initiatives or clever visionary statements with little guidance on where IT is going (and why) and how IT supports business competitiveness.
We have started a new year with increased digitalization and new competitive conditions – the “new normal”. Change is occurring at a faster pace and height than ever before, challenging the culture and management of many organizations In this complex business environment, many IT departments have developed a 2015 (or beyond) IT strategy and are now planning for its implementation. But how good is this IT policy? Do they really support businesses to succeed in the “new normal”?
Evaluating Business Strategy
Let’s start with the basics – what is an IT policy? Obviously there are many definitions – here are mine:
Definition: A document outlining the change agenda in an IT organization to create business value and optimize competitiveness.
. So it follows the same “rules” as any other change management journey It’s about encouraging our employees to let go of some comfort and take the unknown step with the help of committed leaders So it’s important to describe and communicate the “burning platform” for change to get IT staff to dare to leave their comfort zone. Second, the IT strategy definition includes a “business value creation” statement that can be viewed as a key IT goal or vision. Yes, IT has only one purpose and that is to support business success – nothing else!!! IT, of course, needs to be understood based on business expectations and business competitiveness on IT How does business competitiveness affect the role of IT, governance, innovation and competence/leadership? These are important questions to ask in the strategic planning process and to formulate in policy documents
Over the years, I have come across many IT policies of varying quality and structure and have been asked to review and evaluate these documents. To be clear, IT strategy has very little to do with agendas or business competitiveness. At best, they are mainly a list of initiatives or fluff vision statements that provide little guidance on where IT is headed and how IT supports business competitiveness.
Program Strategy, Evaluation & Planning
When reviewing IT policies, I ask myself the same five questions: How good is an IT policy?