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One of the central challenges of management is
ensuring that the entire organization is working towards the same
goals. The 'Management by Objectives' process seeks to
accomplish this by making the organization goals visible and
encouraging groups within the organization to formulate goals in
support of the overall organization. The goals of the department
should be directly traceable to support the overall organization
goals. This is the process of alignment. (It should be noted in
passing that failure to share goals top down can be very
destructive to both the MBO process and organization morale.)
Goal alignment and managing to achieve goals is helped through use
of a sharable planning tool.
ManagePro, a product of
Performance Solutions Technology, is superb for this purpose.
Technology Strategists has been using this as a management and
planning tool for many years. The ManagePro web site is worth
perusing for information on the use of the tool for strategic
planning and many other business uses.
Information technology is really no different from
any other business function. (There are many parties that would
like for business management to believe otherwise, and some
have been very effective in disseminating this message to their
profit.) It may be helpful to think of IT as though it
were a factory. It is, really, a factory for processing
information that is the lifeblood of the overall business.
Carrying the analogy a bit further -- factories must be equipped
with machinery suitable for the intended product and capable of
handling the needed volumes. There are often many choices of
manufacturing approach -- implementing most choices requires lead
time to engineer, buy, install and configure before becoming
productive. Hopefully, the product will still be needed by the
time everything is ready. Operation of this machinery is
ultimately performed by people who must be trained. And who fall
ill or go on vacation. Setup and operating information needs
to be written down -- especially if any custom tooling was created
to facilitate the process. Machinery wears out and must be
maintained regularly. And finally, machinery does become obsolete
as standards change and spare parts become more difficult to
obtain. It is ultimately a return on investment question -- at
what point is it no longer profitable (and competitive) to
retain the same machinery? (What does make
computer technology a bit different is that the economic life of
hardware and software can be many years -- but conscious choices
by hardware manufacturers to limit availability of spares and
tendencies by software manufacturers to add more features (bloatware)
rather than fix bugs, increasing operating requirements -- which
with marketing creates an impression of accelerated obsolescence.)
The process of aligning Information Technology (IT) to the overall
goals of the business is very similar to the process of
implementing and operating a factory. In the planning process,
business goals must be visible -- and the activities of IT must be
tightly coupled to support those goals. Unlike a factory,
the sources and sinks of information processing are intertwined
with the day to day operation of the business -- IT cannot be
considered a thing apart. (We will ignore for the time being
the potential for IT to facilitate restructuring of business
processes for improved economics and performance.) The
portfolio of applications provided by IT need to be appropriate to
the intended needs of the business -- both for function and
volume. These and the servers in which they operate are the
machines for the factory.

Knowing the relationship between business functions and supporting
information technology (or potential supporting technology) --
following the factory analogy it is knowing which processes/machines support which functions is crucial to
effective planning. The dependency relationships revealed by a
Business Impact Assessment can be helpful in making this
association -- particularly if lateral linkages across functions
has been explored. Similarly, a good capacity plan for servers,
storage and networks, has explored the relationship between
business volumes and resource requirements. Staff requirements
follow similar relationships -- especially support staff. And
changes always increase the need for support (and training). It
should be possible in many cases to project the impact of future
business plans on the IT infrastructure and staff -- which
may underscore future needs that should be fed back into the
capital spending plan and operating budget.
The net of this activity is that the business must present to
Information Technology management a prioritized hierarchy of goals
for the overall business. As goals are developed, business
management should be asking 'how can IT help achieve this goal'?
But at the very least the question 'how is IT facilitating the
achievement of this goal' should be asked by IT management.
The relationships do not always suggest themselves -- there are a
number of techniques to align IT project objectives with business
goals which may be helpful. Hopefully, a dialog will ensue that will increase mutual awareness
of needs and capabilities between business management and
Information Technology. Similarly, each activity within IT
should be reviewed to ascertain what overall business goals it
helps realize. It is understanding this reciprocal
relationship that facilitates goal alignment. The goal management
tool will not make these decisions, the relationships must be
developed by management -- the tool just makes it easier to see
the planning landscape and share status and dependency
information.
 Gradually, a network of IT-specific
goals will be compiled, entered into ManagePro and linked to
associated business goals. Key capacity factors, such as disk
storage in use, may be setup as a measure and tracked with
progress data. There may even be some virtue in establishing
key systems as pseuo-employees and assigning them to business
goals -- periodic reviews as prompted by ManagePro could help stay
on top of key resources. Project goals for new technology and
significant 'to do's also becomes part of the landscape.
Identifying appropriate levels of risk in the goal description is
very helpful. One benefit of using ManagePro for
this is the visibility afforded by the goal status board.
This provides a summary view of the rolled up status of subsidiary
goals. Alternate views expose risks identified in the goals and
the status of target dates -- this is much more powerful than
examining a pile of status reports and project diagrams. One nice
capability is the ability to drill down into the hierarchy to see
the status of lower level goals -- this information is often
distilled out with manually prepared status reports.
What is important is that a shared goal management tool enables
business and technologists to work to the same plan. This
and the shared understanding that should have developed in
aligning business and technology goals will over time enhance the
profitability of the firm. |