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chapter 2
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integrated foundations
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information technology. Specifically, this chapter discusses the interrelated relationships of architecture, IT governance and project portfolio management, and IT organizational development in terms of how their interrelated synergies create a powerful whole, greater than the sum of their parts. This chapter focuses on the key interrelationships of these three practice area disciplines and how the CIO can integrate them to guide the organization in support of enterprise strategic goals.
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integrated disciplines
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CIOs who establish a strategic IT presence at the leadership table bridge the gap between business strategy and the information and technology structure of the organization. At any given point in time, the state of information and technology may not represent what is most important to the organization. As strategic goals change, there is an inherent requirement for flexibility and agility on the part of IT and on the enterprise to adapt as detailed in 3. The requirement to rapidly adapt to change has become a critical differentiator for competitive, high-performing organizations. Building an agile, adaptive IT organization that constantly works to bridge and minimize the gap between the current-state of information technology and the optimal state required to meet the organization s strategic goals is the name of the game for the best practice CIO. A series of interrelated practices and disciplines enable the CIO to bridge this gap and directly tie the elements of business strategy to IT investments. Best practice CIOs understand and communicate the current architecture of IT infrastructure, applications, and information for their enterprise and articulate a future-state to be achieved based on the business goals, strategies, and current technological opportunities. They identify the gap between current capabilities and the future-state required to reach strategic goals, and they demonstrate the path to reach the future-state where the strategic goals can be achieved in terms of information technology, processes, and people. However, defining and communicating the current-state, future-state, and gap is only the beginning. The best practice CIO guides organizational behaviors, decision making, and capital budgeting to lead the organization to the destination. Best practice CIOs also control and influence IT investment decision making to ensure that the right investments are being made, that these
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enterprise architecture
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investments are being made at the right time and in the right order, and that these investments and solutions are being constructed correctly to support strategically aligned IT architectural standards. These discrete IT investments need to be managed in unison as a balanced portfolio that supports consciously designed enterprise milestones and targets. Business outcomes that result from a correctly aligned IT investment portfolio lead directly to the realization of business strategy. The best practice CIO delivers these results through people and the IT services delivery model, leveraging in-house staff, vendors, consultants, and outsourcers. Organizational development must align and support the specific skills and services requirements of the enterprise architecture and IT project portfolio. This organizational development requirement is equally true for departments outside the IT function or the CIO s direct control. This continuum of disciplines and processes can be viewed as a funnel that starts from the broad, overarching goals of business strategy and then moves down through a progressively narrowing set of processes, designs, and managerial disciplines leading to the right set of projects designed around the right architecture and delivered by the team with the right set of strategically aligned skills, objectives, and incentives. It is one of the fundamental skills of the CIO to be able to navigate the organization down this funnel leading to the realization of business strategy enabled by IT (see Exhibit 2.1). The funnel s path guides the CIO through the critical IT management disciplines that bridge the gap between business strategy and the realization of strategic goals.
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