Creating the Agile IT Organisation

• 1. Creating the Agile IT OrganisationA Formicio Point of View

2. Agility is an organisational capability that can be developedor destroyed by the actions of leaders Organisational capabilities underpin anorganisations ability to succeed. Agility is a relative term: organisations canbecome more agile or less agile. IT organisations are perceived to be agile by their businesses colleagues if they areThe Oxford dictionary able to sense and respond to changing defines agility as the business conditions.ability to move quickly The lack of agility is most noticeable whenand easily; and thethe context changes, eg an acquisition, newability to think and understand quickly.regulations or new product launch.Many CIOs who have failed did so not because they did not know what todo, but because of their inability to make the changes happen quicklyenough. 2011 Copyright Formicio Limited1 3. IT organisations are more likely to be agile if they adoptagile operating principles Organisations that are more agile operateto a set of (implicit or explicit) agileoperating principles. Operating principles are conscious choices made by leaders that define how theywould like their organisation to operate. For each principle there is an equally validalternative choice. Operating principles are transferable across organisations, and theapplication of the principles in a specific context (ie within a specificorganisation) establishes practices that are fit for purpose. Operating practices are very difficult to transfer betweenorganisations as they are context-specific and the context is differentbetween organisations. 2011 Copyright Formicio Limited2 4. The three domains of operating principles that createorganisational agility....The platforms,systems andinfrastructure that collectivelyThe values, Technology comprise thebeliefs and Architectureinstalled base. competenciesheld byindividuals or The processes, groups oforganisation, people the Operating governance andMindset principal driverModelsourcing howof behaviour. work gets done. 2011 Copyright Formicio Limited 3 5. Example of how operating principles shape the extent towhich the technology architecture is agileExample: Whenever possible all future solutions will be based upon industry standard platforms and open source components,as opposed to we will continue to develop our legacy applications. Both operating principles are equally valid choices, the former is based upon contemporary thinking on service-orientated architectures. The latter principle results in systems that are highly tailored to the particular needs of the business and not dependent upon vendor upgrade development plans. 2011 Copyright Formicio Limited 4 6. Example of how an operating principle shapes the extent towhich the IT Operating Model is agile Example: Wherever possible agile approaches?? ? to software development, including?? extreme programming, scrums and daily stand-ups, should be used, as opposed toLadies and gentlemen all software development projectsthis is one of the core ISprocesses. Any questions? must comply with the System Development Life Cycle (SDLC). Both operating principles are valid. The former confers greater agility as developers work very closely with business colleagues and functionality is delivered at frequent intervals. The latter principle is more focused on following a defined series of steps in the belief that it will deliver a quality result. 2011 Copyright Formicio Limited5 7. There are operating principles for all facets of an ITorganisations Operating Model A key process is Processes the Organisationalsoftware Manage Customer RelationshipsManage Business-IT Portfolioprocesses (both Design thedevelopment where Disco verBusin Manage Enterprise ArchitectureDeliverOper ateBusinoperational and roles, structure,management) thatcompetenciesess-BusinessessITSyste Pote Solut ms a lot of advances ions ntialOperate IT Infrastructuredeliver servicesand resources. Manage IT SupplyManage IT Organisationhave been made to and solutions tomove away fromthe business. the rigid linear Governance Measurement lifecycle approach.Companies/ BUs SVPExecutiveCounwho has whatthe waydecision rights individuals andManagemcilent TeamCore Process Counciland the resultant organisational Organization Whilst agile accountabilities. performance isapproaches to measured andmanaged.software development arePartners howPremiere Service Service OptionsServices Portfoliovendors and how the Basic product set 24 x 7 hours Product Premium coverage set- Fastest response timeextension necessary, they are- Fastest repair times Mobile User Advance dService Level Quality Technolo gy Introducti on Standard Othersuppliers (outsideproduct andService Basic product set Prime hours Guaranteed coverage, e.g., - Response time - Repair time not sufficient tothe organisationalService Content Richnessservice offeringscreate the agile IT boundaries) are that meetsourced and business demandorganisation. managed.are prioritised. 2011 Copyright Formicio Limited6 8. Example of how operating principles shape peoplesmindset and thereby the extent to which they are agile Example: It is always better to try and fail quickly than to do nothing, as opposed to It is always safer around here to do nothing. If you try something and it fails there are negative consequences. If you do something quickly and there are small mistakes there are negative consequences. Mindsets are formed from a set of values, beliefs andcompetencies. They can be held by individuals, or groups of people,and become so established that they create a powerful incentive tocontinue to adopt or accept prior behaviours, choices, methods ortools. 2011 Copyright Formicio Limited7 9. The first step to developing agility as an organisationalcapability is to understand existing operating principles An Agility Assessment gives insight into theextent to which existing operating principles,within and across the three domains (impliedor explicit), create or inhibit agility. It also identifies the extent to which people particularly the leadership: Understand the impact that operating principles have on their organisations The assessment is ability to be agile; done through acombination of: Value those principles that confer agility; Interviews Apply agile operating principles. Self assessments An assessment provides insight as to what Forum discussions changes need be made to the TechnologyArchitecture, Operating Model and Mindset. Copyright Formicio Limited8 10. Our point of view on IT organisational agility revisited1. Agility is an organisational capability.2. Agility can be developed or destroyed by the actions of leaders.3. IT organisations are perceived to be agile by their businesses colleagues if they are able to sense and respond rapidly to changing business conditions.4. IT organisations are more likely to be agile if they adopt agile operating principles.5. The three domains of operating principles are: If agility creates success, then Technology Architecture adoption of the Operating Modelagile operating Mindsetprinciples confersagility.6. The first step is to understand existing operating principles. 2011 Copyrig.ht Formicio Limited9 11. We hope you found our point of view helpfulWe encourage you and your leadershipcolleagues to develop a shared point ofview on making their IT organisationagile.It will take time and you wont all agreeat the outset, but it will be of great valuein the longer term.The Formicio Team 2011 Copyright Formicio Limited 10 12. This is an Insight presentation by Formicio We are thought partners and advisers to business and technology leaders around the world. We help our clients make informed choices, build capability and deliver sustained business change. Through a combination of learning and consulting we help our clients: Build innovation and organisational capability. Succeed with the most complex transformation programmes. Equip IT organisations to meet the challenges ahead. 2011 Copyright Formicio Limited 11 13. For further information contact...David Trafford [email protected] +44 (0)20 7917 2993www.formicio.com 2011 Copyright Formicio Limited 12