The First 100 Days for a New

CIO: Using the Innovation

Value Institute IT Capability
Maturity Framework to
Define a Roadmap

Alan McSweeney
Objectives

• To describe how the IVI (Innovation Value Institute) IT CMF

(IT Capability Maturity Framework) can be used to define
an effective business oriented workplan for the first 100
days

February 6, 2011 2
Importance of the First 100 Days For a New CIO

• Important interval in the career of a newly appointed CIO

• You will find many issues and problems that were not immediately
apparent
• Create a plan for the first 100 days that establishes priorities,
approach, attitude, focus, tone, culture, standards
• Need to set the longer-term agenda and build solid foundation for
its delivery
• Need to develop a vision for both the IT function and the business
• Must not get stuck in analysis paralysis or making quick decisions
• Short timeframe to assess current situation and what has to be done
• Need to demonstrate progress quickly

February 6, 2011 3
Achieving the Correct Balance

Spend
consu ing the fi
m rs
plann ed with a t 100 days
ing na
mate activities lysis and
rial a
nd co with no Comm
result ncrete itt
long- ing to a de
s
assoc term pla tailed
ia n
and m ted organ and
roles odel with isational
a
withi nd accoun defined
n the t
first 1 abilities
00 da
ys

• Need to achieve balance between analysis paralysis and

making long-term commitments too quickly
February 6, 2011 4
Information Requirements for First 100 Days
Gain understanding of
business strategy and
linkage to IT strategy
Gain understanding of
Gain understanding of
organisation culture,
the status of IT budget
reporting lines, role of
and financial situation
and expectations from IT

Information
Gain understanding of IT
Gain understanding of Requirements for organisational structure,
in-flight projects, First 100 Days human resources, skills,
initiatives processes and
competencies

Gain understanding of IT
Gain understanding of
portfolio, landscape,
current problems and
suppliers and
issues
infrastructure

February 6, 2011 5
Objectives of First 100 Days

• Establish strong communications

• Establish relationships with business and demonstrate
understanding and that you are listening
• Develop tactical plan
• Start to create strategic plan linked to business strategy
• Define success measurement criteria
• Initiate the creation of a strategic plan
• Demonstrate clarity of thought, vision and delivery
• Define guiding principles, governance, processes and methodologies
• Define target IT function operating structure and model
• Start to address high visibility/priority issues and problems
February 6, 2011 6
Benefits of Using the IT CMF Framework to Create
100 Day Action Plan
• Gathers high-level information quickly through structured
consultative process
• Creates a high-level view of what is important and where
deficiencies exist
• Demonstrates that you are listening
• A rapid engagement that provides quick feedback
• Allows an action plan to be established to focus on mix of strategic
and day-to-day
• Establishes a measurement framework to allow progress be
evaluated
• Focuses on how IT can deliver value to the business
• Focuses on creating a business-focused IT organisation

February 6, 2011 7
Roadmap for First 100 Days

Gather Create Tactical Deliver on

Start
Information Plan Tactical Plan

Perform High
Level IT CMF
Assessment

Address High Perform

Visibility/ Optional Create Strategic
Priority Detailed IT CMF Plan for IT
Problems and Assessments
Issues

February 6, 2011 8
Business Strategy

• Business develops a business

Business Vision strategy that contains defined high
level aims and lower level
objectives
Business Strategy • Each objective will be subject to
challenges that have to be
overcome.
Business Strategic • Achievement of the strategic
Aims objectives needs to be subject to
measurements
Business Strategic
Objectives

Critical Success
Challenges Measurements
Factors
February 6, 2011 9
Business Strategy Linkage to IT Strategy

• IT strategy follows from business

Business Vision
strategy
• Ensure the organisation is making
Business Strategy
the best use of IT to deliver on its
strategy
Business Strategic Aims
• Ensure the organisation is using IT
effectively and efficiently
Business Strategic
Objectives

IT Vision

IT Strategy

IT Architecture

IT Implementation Plans
and Business Cases
February 6, 2011 10
Innovation Value Institute (IVI) and IT-CMF (IT
Capability Maturity Framework)
• IVI is developing an the IT-CMF as a systematic framework
for improving IT capability and identifying and prioritising
opportunities, reducing cost and optimising the business
value of IT investments (see http://ivi.nuim.ie/)
− Based on an Intel framework and initially developed as part of
Intel’s IT transformation (see Managing Information Technology
for Business Value http://www.intel.com/intelpress/sum_bv.htm)
− Reviewed and tested with 200+ CIOs
• Objectives of IT CMF
− To assess current practices
− To understand opportunity and value of increasing maturity
− To bridge structural gaps in other assessment frameworks
February 6, 2011 11
IT CMF High Level Framework

Managing IT Like a Managing

Business the
IT Budget

Managing the IT Managing IT for

Capability Business Value

• IT CMF structured into four high-level processes for value-

oriented IT management

February 6, 2011 12
IT CMF High Level Framework

Managing IT Like a Managing the IT Managing the IT Managing IT for

Business Budget Capability Business Value
Managing IT like a Managing the IT budget Managing the IT Managing IT for business
business involved using involves effective capability is concerned value involves aligning IT
solid professional financial management to with what information investments to overall
business practices and reduce costs to free funds technology and the IT business benefits.
applying them to the IT for investment in organisation can do
function and involves innovative IT solutions collectively for the
shifting the focus from that deliver better value organisation. Underlying focus areas
production and and performance. include value and benefits
technology to a focus on delivery and portfolio
customers and services. Underlying focus areas management.
Underlying focus areas include traditional IT
include budget factory functions like
Underlying focus areas management and solutions delivery and
include leadership, performance sustaining services provisioning
governance, alignment and making new
and management investments and portfolio
processes. planning.

February 6, 2011 13
IT CMF

• IT CMF is a meta-framework that identifies an IT organisation’s maturity in key

critical practices
− Comprehensive overarching framework that encompasses all relevant IT practices and
sits above implementation frameworks
− Does not mandate the use of specific implementation frameworks
• Identifies the key areas where the organisation wants or needs to improve to
deliver business value
− Identifies critical gaps in maturity that are preventing IT delivering business value
− Identifies appropriate levels of maturity for the organisation for critical IT processes
• Contains benchmarks to allow an organisation measure itself against similar
organisations
• Defines a structure to allow improvements to be measured
• Implementation of specific critical practices improvements devolved to
implementation frameworks
• Objective view of IT competency and maturity across all of IT

February 6, 2011 14
IT CMF Framework

• Contains
− Assessment approach to determine an IT organisation's maturity
− Best practices associated with outcomes and metrics for their
measurement
• Benefits
− A comprehensive and detailed framework to collect and provide
management information on critical processes within the IT
function of an organisation
− Processes designed, selected and defined as those that ensure
that IT delivers business value
− Provides a view of the level of maturity of the IT function
− Identifies areas where effort should be focussed in order to add
value
− Enable IT to be responsive to business needs
February 6, 2011 15
IT CMF Framework

• IT CMF framework
closes the loop on Managing Managing
Information IT Like a the IT
Technology Business Budget
delivering value to
the business
Closing the
Loop
Between Cost
and Value
Managing IT
for Realising Managing
and Assessing and
Value Delivering IT
Capability

February 6, 2011 16
 IT Capability Maturity Framework - Standard Framework to
Benchmark IT’s Level of Value to Business
• Five maturity levels to
assess and optimise
value of IT Managing IT Like Managing the Managing the Managing IT for
• A comprehensive and a Business IT Budget IT Capability Business Value
detailed framework to
collect and provide
management Sustainable Corporate Core
Optimising 5 Value Centre Optimised Value
information on critical Economic Model Competency
processes within the IT Options and
function of an Investment Expanded Strategic
Advanced 4 Portfolio
organisation Centre Funding Options Business Partner
Management
• Processes designed,
selected and defined as Systemic Cost Technology ROI & Business
3 Service Centre
those that ensure that IT Intermediate Reduction Expert Case
delivers business value
• Provides a view of the Predictable Technology
2 Cost Centre TCO
level of maturity of the Basic Performance Supplier
IT function
• Identifies areas where
1 Beginning
effort should be Initial
focussed in order to add
value
• Enable IT to be
One of the Tools Used to Manage
responsive to business Journey to Becoming a Value Centre
needs
February 6, 2011 17
IT CMF Detailed Structure – Comprehensive View of Core
Competencies Required of an IT Organisation
Managing IT Like a Managing the Managing the Managing IT for
Business IT Budget IT Capability Business Value
IT Leadership & Enterprise Architecture
ITG Governance FF Funding & Financing EAM Management TCO Total Cost of Ownership
Business Process BG Technical Infrastructure Benefits Assessment &
BPM Management Budget Management TIM Management BAR Realisation
M
Portfolio Planning &
BP Business Planning PPP Prioritisation PAM People Asset Management PM Portfolio Management
Budget Oversight & Knowledge Asset
SP Strategic Planning BOP Performance Analysis KAM Management
Demand & Supply Relationship Asset
DSM Management RAM Management
Capacity Forecasting & Research, Development, &
CFP Planning RDE Engineering
RM Risk Management SD Solutions Delivery
AA Accounting & Allocation SRP Service Provisioning
Organisation Design &
ODP Planning UTM User Training Management
SRC Sourcing UED User Experience Design
Program & Project
IM Innovation Management PPM Management
Service Analytics &
SAI Intelligence SUM Supplier Management
Capability Assessment &
SICT Sustainable ICT CAM Management

February 6, 2011 18
IT CMF High Level Assessment Overview
• Objective maturity assessment of IT management practices,
identifying both gaps and potential over investments
Managing Managing IT
the Managing the for business
Managing IT like a business
IT budget IT capability value
Risk of competitive
5 Risk of competitive disadvantage due to
disadvantage due to below over-investment?
below-average maturity?
4 Industry Average

3 Organisation’s
Current
Maturity Level
2

1 Core
Competency
ITG BPM BP SP DSM CFP RM AA ODP SRC REM IM PQM SAI FF BGM PPP BOP EAM TIM PAM ICM RAM RDE SD SRP UMT UED PPM SUM VCM CAM TCO BAR PM IAP
Area Within IT
Can be applied across all IT functions CMF
Framework
or in a selected set of areas
February 6, 2011 19
IT Value Contribution Increases with Maturity
Maturity Level IT Value Contribution
IT enables and drives business value creation and business
5 opportunities
High Optimising
IT is fully aligned with business strategy and anticipates business needs

4 IT focuses on business value creation

Advanced Value oriented IT management using various industry best practices
Increasing
3
IT directly contributes to business value creation in some areas contribution
Intermediate IT turns toward focusing on business value creation, but is mostly understood as to business
service provider
value as the
IT mainly provides services allowing business to create value IT
2 organisation
Basic IT focuses on delivering solutions for business needs, but not a value creator on
its own increases its
maturity
Low IT disconnected from business value creation
1
Initial IT is not an integral part of value creation

Organisation must be able to translate

IT maturity into business value contribution
February 6, 2011 20
IT CMF Provides Framework to Link Business
Strategy to IT Strategy
Business Vision

Business Strategy Business

Context
Business Strategic Aims

Business Strategic
Objectives

Managing IT Like
a Business
IT
Context
Managing IT for
Managing the IT Managing the IT
Business
Budget Capability
Value
February 6, 2011 21
Using IT CMF to Define a Business Oriented
Information Technology Strategy

Identify Gaps Where

Perform High Level Define Overall Plan
the Organisation
Current State to Achieve Planned
Wants or Needs to
Maturity Process Maturity
Improve to Deliver
Assessment Levels
Business Value

Perform Optional
Detailed “Deep
Dives” Into Specific
Competency Areas,
if Required, to
Identify Detailed
Gaps and Issues

February 6, 2011 22
 IT CMF Assessment Conducted in Three Phases and
Takes Around 3-4 Weeks
Activity Beforehand Week 1 Week 2 Week 3 Week 4

0 Selection of assessment team

1 Initial kick-off meeting and preparation
Complete individual assessment
(answering questionnaire)
Collect additional data
2 (based on data already consolidated in organisation)
Analysis of collected data and questionnaires
Conduct individual interviews
(for validation of initial maturity estimate) Final
Review results and analyse findings workshop
Prepare assessment report
Identify practices to be implemented for Review initial
3
improving maturity and business value results
Workshop to share and discuss assessment
results and collect feedback on assessment
Milestones of assessment
Initial maturity Validated Final
assessment maturity results
assessment (incl. action
plan)
Today
• Assessments consist of questionnaires that gather information
• Supported by best practice documentation and database of benchmarks
February 6, 2011 23
Sample IT-CMF High Level Assessment: Purpose of
Performing Survey
• Objective was to measure the perceived importance and
perceived current level of maturity/skills and desired level
of maturity in two years in order to identify areas to focus
on to derive the greatest benefit
• Measures maturity and importance along 32 critical
processes – areas where IT should have good skills,
experience and maturity - in order to ensure that the IT
function delivers value to the business
• Allows comparison to other organisations
• Not just about measuring IT but also concerned with
measuring how those outside IT view the IT function
• Primary focus in on IT delivering value to the business

February 6, 2011 24
Sample IT-CMF High Level Assessment: IT Posture

• Summarises view of
− Technology adoption
preference
− Deployment of IT to support
business activity
− IT in relation to competitive
advantage
− IT and outsourcing
preferences
− IT and business value
management
− IT and business requirements
management
− Level of IT investment
• Average score is 60
• Organisation score is 42
• General view is that the
organisation do not view that
full advantage is not taken of
IT
− IT lags behind business needs
rather than leads the business
− Lower than average
investment in IT
− Not actively seeking
innovation
− Not using IT for business value

February 6, 2011 25
Sample IT-CMF High Level Assessment: IT Value
Performance
• Summarises the organisation’s view of the importance and actual
perceived performance responses to the following questions
− Cost Effective Use of IT
− Effective Use of IT for Business Growth
− Effective Use of IT for Asset Utilisation
− Effective Use of IT for Business Flexibility
− Aggregate view of importance is very high – 16.5 out of 20
• Aggregate view of performance is much lower – 10 out of 20
• Gap between importance and performance
Importance Performance
Cost Effective Use of IT 4.5 3.2
Effective Use of IT for Business Growth 4 2.4
Effective Use of IT for Asset Utilisation 3.7 2.2
Effective Use of IT for Business Flexibility 4.3 2.2
Total 16.5 10

February 6, 2011 26
 Sample IT-CMF High Level Assessment: High Level
Process Maturity Highest maturity in
Consistent aspiration to
cost-related
• Generally low level 2 increase maturity across all
competencies
maturity across the four competencies
groups of IT competence
areas
− Shows a low level of maturity
across all processes
• Aspiring to increase of 1-1.5
maturity levels in all areas
− Shows a consistent desire to
improve maturity across all
processes
− A consistent increase of 1-1.5
maturity levels will require a
large investment
− Need to balance the need to
improve with the resources
required
− Need to focus efforts on
those areas that will yield the
greatest benefit Low maturity in business
February 6, 2011
value competencies 27
Sample IT-CMF High Level Assessment: High Level
Process Maturity
• Shows the current and
desired maturity and
25th, 50th and 75th
percentiles of similar
measures on
benchmarked
organisations
• Shows that the
organisation is around
the 25% percentile in
terms of maturity across
all processes when
compared with other
organisations
• 75% of organisations are
currently more mature
• Stated desire is to
exceed 75% percentile of
maturity when compared
with other organisations
in two years – how
realistic is this?

February 6, 2011 28
Sample IT-CMF High Level Assessment: Critical
Processes Maturity

February 6, 2011 29
Sample IT-CMF High Level Assessment: Critical
Processes Maturity
• Areas where the greatest
improvement is desired
1. Strategic Planning
2. Innovation Management
3. Enterprise Architecture
Management
4. Knowledge Management
5. Capability Assessment and
Management
6. Total Cost of Ownership
7. Benefits Assessment and
Realisation
February 6, 2011
• Perceived core competency
importance
1. Risk Management
2. Business Planning
3. Portfolio Management
4. IT Leadership and Governance
5. Solutions Delivery
6. Enterprise Architecture
Management
7. Strategic Planning
30
Sample IT-CMF High Level Assessment: Critical
Processes Ranked by Importance

February 6, 2011 31
Sample Using the IT CMF Assessment Results to
Assist in Defining an Improvement Strategy
1. Identify and focus on areas of required IT competency
classified by their perceived importance and current
maturity and prioritised by lack of balance
2. Identify and focus maturity gaps in areas of required IT
competency prioritised by importance
3. Create a mixed approach

February 6, 2011 32
Sample IT-CMF High Level Assessment: Importance
Vs Current Maturity
• Shows the IT CMF

Maturity
process areas
classified by their
perceived
importance and
current maturity
and prioritised by
lack of balance
• Classification of
current maturity
and importance
• Identify overlap
between low
current maturity
and high
importance to
recognise areas to
focus on Importance

February 6, 2011 33
Sample IT-CMF High Level Assessment: Importance
Vs Current Maturity
5.0
Maturity

4.5

PPM
4.0
BOP FF

3.5 PPP

SRP
3.0 TIM ODP SD
BGM
ITG
2.5 BP CFP RDE
PM
RMRAM
BAR PAM
UED KM
2.0 AA SUM
SRC DSM EAM
BPM
SP
1.5 CAM IM

UTM SAI TCO

1.0
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

February 6, 2011
Importance 34
Sample IT-CMF High Level Assessment: Importance
Vs Current Maturity
5.0
Maturity

4.5

PPM FF
4.0
BOP

3.5
SD

3.0 TIM ODP SRP PPP

BGM
ITG
2.5 BP PM RDE
RM
CFPRAM
PAM
SRC KM BAR
2.0 AA SUM
DSM UED EAM
BPM
SP
1.5 CAM IM

TCO SAI UTM

1.0
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Importance
February 6, 2011 35
Sample IT-CMF Matrix: Importance Vs Maturity Gap

• Shows the process maturity gap (difference between

perceived current maturity and desired future maturity)
classified by perceived importance

1. Risk Management
2. Business Planning
3. Portfolio Management
4. IT Leadership and Governance
5. Solutions Delivery
6. Enterprise Architecture Management
7. Strategic Planning

February 6, 2011 36
Sample IT-CMF Matrix: Importance Vs Maturity Gap
5.1
Biz
Bud
Cap
Val

Secondary Focus Area Primary Focus Area

5.0 More Important / Lesser Maturity Gap RM More Important / Greater Maturity Gap
4.9
PM
4.8

4.7
BP
4.6

4.5

4.4 ITG SD
PPM
FF SP EAM
4.3 SRP
Importance

SUM
4.2
BGM PAM RDE
4.1 TIM RAM BAR
IM
CFP
4.0 SAI UTM
ODP
3.9 SRC CAM
PPP
BOP UED TCO KM
3.8
BPM
3.7
DSM
3.6 AA
3.5 Tolerable Stragglers Tertiary Focus Area
Lesser Importance / Lesser Maturity Gap Lesser Importance / Greater Maturity Gap
3.4
-0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1
Average Maturity Gap
2010 – 2012 Maturity Gap
February 6, 2011 37
Sample IT-CMF High Level Assessment: Areas to
Focus On
• Areas where the greatest
improvement is desired
− Strategic Planning
− Innovation Management
− Enterprise Architecture
Management
− Knowledge Management
− Capability Assessment and
Management
− Total Cost of Ownership
− Benefits Assessment and
Realisation
February 6, 2011
• Areas of perceived importance
− Risk Management
− Business Planning
− Portfolio Management
− IT Leadership and Governance
− Solutions Delivery
− Enterprise Architecture
Management
− Strategic Planning
38
Sample IT-CMF High Level Assessment:
Recommendations for Action
• Based on the analysis the greatest benefits will be derived
from initiating projects in the following areas:
− Enterprise Architecture Management
− Total Cost of Ownership
− Benefits Assessment and Realisation
• Key building blocks to effective long-term development of
professional IT function that delivers projects that create
value
• Highest priority areas based on current skills and
competence and importance to the organisation, now and
in the future

February 6, 2011 39
Sample IT-CMF High Level Assessment: Enterprise
Architecture Management Overview
• Enterprise architecture management provides the necessary models
and practices for defining, planning and managing the business and
IT capabilities
− Models include business, data, applications and technology models and
principles that support high-level enterprise assessments and investment
trade-off decisions, as well as tactical, project-level designs and decisions
− Practices include architecture development, assessments, strategy
development, policies, standards and compliance
• Value of increasing maturity
− Managed complexity by increasing commonality and simplifying architectural
design
− Improved ROI by reducing development time and increasing speed to market
− Enhanced competitive advantage by increasing flexibility and introducing new
capabilities
− Reduced business, IT and project-level risks by better planning
− Improved architecture management practices and governance

February 6, 2011 40
Sample IT-CMF High Level Assessment: Total Cost of
Ownership Overview
• Understand how, why and from where IT is funded
− Determine the scale, scope and sources of funding for IT and assign financial resources
to IT activities
− Establish a balance between Capital expenses and Operational expenses to optimise IT
effectiveness
• Track and control direct and indirect costs associated with IT infrastructure and
systems
− Understanding of total cost of ownership better informs budgeting and portfolio
management processes
• Active, ongoing review and adjustment of the IT spending plan to systematically
ensure that allocated budgets are being spent effectively and are within budget
parameters and governance model
• Periodic offline review of IT spending vs. IT plan, which provides stimulus for re-
profiling or reprioritisation of budgets
− Ensures that budget targets are being met and improves quality of future forecasts
• Policies, processes and tools used for calculating and distributing the costs of IT
− Range of methods such as chargeback, transfer pricing, and allocation may be used to
manage the cost of IT services and to influence the demand for IT services within an
organisation

February 6, 2011 41
Sample IT-CMF High Level Assessment: Benefits
Assessment and Realisation Overview
• Establishing a common language, measurement and valuation
framework to express the potential and document the actual
business value (i.e., public and private) and business benefits
realised through IT-Enabled investments, as defined and recognised
by all stakeholders.
• Systematic, objective and consistent organisational approaches to
the following
− Benefits Planning
− Benefits Assessment
− Benefits Tracking and Measurement
− Benefit Realisation reporting
− Benefit Culture
• Enabling a business value culture where management optimises IT’s
contribution to business objectives

February 6, 2011 42
Benefits of Using the IT CMF Framework in the First
100 Days of a New CIO
• IT CMF is a comprehensive overarching framework that encompasses all relevant
IT practices
− Agnostic of specific implementation frameworks
• Covers entire landscape of IT competency
• IT CMF is business-value oriented
• Contains benchmarks to allow an organisation measure itself against similar
organisations
• Defines a structure to allow improvements to be measured
• Identifies the key areas where the organisation wants or needs to improve to
deliver business value
• Identifies critical gaps in maturity that are preventing IT delivering business value
• Identifies appropriate levels of maturity for the organisation for critical IT
processes
• Ensures the IT strategy is soundly anchored on delivering business value

February 6, 2011 43
More Information

Alan McSweeney
alan@alanmcsweeney.com

February 6, 2011 44