Trust and Partnership

PREFACE xiii Important Message to the Individual Reader xvii A Note on Vocabulary and Cultural Differences xvii A Note on Our Perspectives and Prior Work xxi Notes and Acknowledgments xxii Notes xxiv PART ONE--The Challenges 1 CHAPTER 1 Business and IT in Turbulent Times 3 Turbulence and Uncertainty Challenge Enterprises 3 This Is Not about Alignment (Entirely) 5 The Problem of Business and IT Relationships 6 Strategic IT Management Changes the Mental Models about IT in the Enterprise 20 To Whom Are We Writing? Who Is Our Audience? Whose Mental Models Are We Changing? 25 Notes 26 CHAPTER 2 The Barrier: Trust and Partnership 29 Trust and Performance Are Highly Correlated 29 Trust and Partnership Are Highly Correlated 33 Context and Performance Affect Trust and Ability to Partner 38 Trust and the Total Value Performance Model 40 Trust and Governance 42 A Case of Broken Trust 43 The Role of Executive Leadership 44 Notes 46 CHAPTER 3 A Staircase to Trust 47 What Is Trust? 47 Dimensions of Trust 48 Trust Improves Business Performance 49 Can Trust between Business and IT Be Built? 50 Personal Trust versus Organizational Trust 53 Maslow's Hierarchy of Needs and IT 53 Business Requirements for Total Value Performance 58 How Does Trust Affect IT Strategy in Turbulent Times? 59 Producing Business Outcomes--An Assessment 60 References 62 Notes 62 CHAPTER 4 IT Strategy in Turbulent Environments 65 Change and Turbulence Defined 65 How Do Organizations Cope with Change and Turbulence? 70 Assessing Turbulence in the Enterprise 76 Organizational Capabilities and Environmental Turbulence 78 How Do IT and IT Management Cope with Turbulence and Change? 82 Producing Business Outcomes Despite Turbulence and Uncertainty: An Assessment 84 References 86 Notes 86 CHAPTER 5 Turbulence in Information Technology 89 History of Technology Turbulence 90 The Impact of Technology Turbulence 122 Enterprise Implications Based on Turbulence in IT 125 Technology Turbulence Assessment 127 References 128 Notes 129 CHAPTER 6 The Effects of IT Sourcing 131 The IT Services Supplier as a Strategic Concern 131 Strategic IT Outsourcing 132 The Impact of Trust and Turbulence 134 Looking Ahead 136 References 137 Notes 138 PART TWO--Principles for Transforming Business in Turbulent Times 139 Strategic IT Management Principles for the Business and IT Relationship 140 A Scorecard for Strategic IT Management Principles 143 Note 144 CHAPTER 7 Requirements for Strategic IT Management 145 The Impact of Turbulence and Trust 145 The Impact of Turbulence 146 The Impact of Trust 149 Turbulence and Trust: Requirements for Business-IT Partnership 150 Demand and Supply Management of IT 157 Demand and Supply Impact on Outsourcing 160 To Conclude: The Need for Relational Governance 164 Self-Assessment: IT Competencies 166 Notes 168 CHAPTER 8 The Service Relationship 171 IT Is a Service Business 172 Service Performance Is the Foundation for IT Credibility and Trust 177 IT Service Management Is Critical 181 So What? 188 Conclusion and Scorecards 190 Scorecard Evaluation 193 Notes 194 CHAPTER 9 The Partnership Relationship 197 Reasons for the Business-IT Partnership 198 Defining the Business-IT Partnership 202 Dealing with Culture, Behavior, and Silos 206 Implementing the Business-IT Partnership 212 Engaging the Business 213 Implementing Partnerships Requires Agreement on Roles for the Partners 217 Is This a Real Problem? 220 "Teaming" Is the New Partnership 221 Partners Exist at Every Level 222 Summary 222 Partnership Scorecards 222 Notes 225 CHAPTER 10 The Leadership Required 227 Goal #1: Leadership Is Required for Partnership, Trust, and Common Goals 228 Goal #2: Leadership Requires Leaders--and a Good Understanding of the Leadership Requirements 230 Goal #3: The Requirements for (Proactive) Transactional Leadership 231 Goal #4: The Requirements for Transformational Leadership 232 Goal #5: Leadership Is Earned through Credibility, Trust, and Culture 233 Leadership Scorecard 234 Notes 236 CHAPTER 11 Enterprise IT Capabilities 237 Connecting IT Value, IT Competence, and Enterprise IT Capabilities 239 Connecting IT Capability with IT Methodologies and Processes 240 Breaking Down the Barriers between IT and Business: Enterprise IT Capabilities 241 Enterprise IT Capability Overview 243 The Core Ideas for Enterprise IT Capabilities 247 Assessing Enterprise Performance against Requirements 249 Reviewing the Initial Enterprise IT Capability Assessments 258 IT's Capability to Change: The IT Dynamic Capability 259 Reference 261 Notes 261 PART THREE--The Road to Strategic IT Management 263 Seven Fundamental Capabilities of the Enterprise 265 Good Methodologies and Processes Aren't Enough 266 The Challenge to CEOs and CIOs: What Exactly Should Be Done? 266 Strategic IT Management Applies to More than Just the Current IT Organization(s) 269 Business Outcomes Are Required 270 Notes 272 CHAPTER 12 Strategic Enterprise IT Capabilities and Competencies 273 Enterprise IT Capability: Planning & Innovation 274 Strategic IT Management: The Systemic Capabilities for Producing Outcomes for Planning & Innovation 279 Strategic IT Management: The Business Outcomes for Planning & Innovation 281 What Is the Current Status with Planning & Innovation? 284 Planning & Innovation Scorecard 284 Bottom Line: Planning & Innovation Performance 286 Notes 287 CHAPTER 13 Tactical Enterprise IT Capabilities and Competencies 289 Enterprise IT Capability: Information & Intelligence 290 Enterprise IT Capability: Development & Transformation 304 Enterprise IT Capability: Service & Resource Optimization 314 Summary: Tactical Enterprise IT Capabilities and Competencies 322 Notes 323 CHAPTER 14 Operational Enterprise IT Capabilities and Competencies 325 Enterprise IT Capability: Service & Operational Excellence 325 Enterprise IT Capability: Sourcing 339 Enterprise IT Capability: Cost & Performance 347 Summary: Operational Enterprise IT Capabilities and Competencies 356 Notes 357 CHAPTER 15 Managing Complex Business-IT Relationships 359 Clear Strategic Positioning 360 Formal Organizational Arrangements 361 Trust 364 Notes 364 PART FOUR--Next Steps 367 Example Enterprises 371 Example #1: Angus International 371 Example #2: Global Financial Services 380 Example #3: National Governmental Agency 384 Summary 388 CHAPTER 16 What Should Be Done? 389 Applying Frameworks to Describe the Enterprise 392 The Power of Frameworks 393 Organizational Context 395 Turbulence and Change 401 What Needs to Be Done? 405 Summary 412 Notes 413 CHAPTER 17 Requirements for CIO and IT Leadership 415 Message #1: The CIO and IT Managers Have Important "To Do's" on Their Lists 416 Message #2: The Business-IT Partnership Requires CIO and IT Management Leadership 418 Message #3: Enterprises Need Strategic IT Management and Enterprise IT Capabilities 420 Message #4: The CIO Needs to Manage the Technology Well; This Is Necessary, but Not Sufficient 422 Message #5: Authority, Control, and "Reporting to the CEO" Are Not Sufficient 425 Message #6: Be Faster; Be Flexible 426 Message #7: An Active, Proactive Leadership Approach Is Required, with Clear Vision 427 Conclusions: For the CIO, What Does Strategic IT Management Offer? 432 Notes 434 CHAPTER 18 Requirements for CEO and Business Leadership 437 Message #1: The Enterprise Needs Strategic IT Management 438 Message #2: Strategic IT Management Requires CEO Leadership for Organizational Context, Culture, and Change 439 Message #3: The CEO Provides the Enterprise Leadership to Generate and Actively Communicate the Business Vision and IT 441 Message #4: The CEO Builds and Supports the Environment for Partnership, Teamwork, Collaboration 443 Message #5: The CEO Builds and Supports IT Governance as Critical to Change Management 444 Message #6: Engage the CMO, CFO, and Board in Strategic IT Management 444 Message #7: Good IT Is Necessary; Do Not Accept Poor Performance 445 Messages to Business Managers and Professionals 445 Concluding Message to the CEO 446 Self-Assessment for Business Leadership 448 Notes 449 CHAPTER 19 Reflections and Recommendations 451 Summarizing the Enterprise IT Capabilities and Their Importance 451 The Bottom Line 457 ABOUT THE AUTHORS 459 INDEX 461