Transforming an IT organisation typically requires dramatic changes to processes, structure, governance, and culture. To determine how best to do this, Forrester reviewed the results of several transformation projects and the methodologies of a number of consulting firms. We identified five steps required to successfully transform an IT organisation:
Create your business case
A business case describes the reason for the transformation and sets the project’s priority relative to other corporate initiatives. Furthermore, it is used to acquire resources, gain the commitment of stakeholders, and keep the project on track.
As problems occur, the business case can be used as a shield to remind people of the reasons for the project. A business case typically includes qualitative factors such as improvements in flexibility, customer service, or project execution, and quantitative factors such as savings, return on investment, or service-level improvements.
Develop your vision
A vision provides a picture of the future that is sufficiently detailed for people to envision where they fit into the new organisation. It provides a pull rather than a push to the future. Intuitively, it appears as if developing a vision should precede the business case, but we have found that creating the business case first results in a more focused and useful vision. Though the deliverables of this step vary more than other steps, elements of a vision often include the organisational model, required skills, key processes and sourcing alternatives.
Assess the current organisation
The vision provides a picture of the target model. By assessing the current organisation, you will identify gaps in reaching that future state. These gaps may be in areas including skills, processes, structure, or culture. Subsequent phases will attempt to fill those gaps.
Develop an organisational design
This step is the most crucial stage of the transformation process, and in some cases, it is divided into two phases. The first is the development of an operating model, and the second, an actual orgnisation chart and supporting material describing other changes.
Implement the new organisation
This is the most mechanical of the steps. It is also the potentially most disruptive as it changes people’s jobs and reporting relationships.
By Mark Cecere, principal analyst, Forrester Research.
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