IT Budget Priorities in Perspective (continued)
Strategy Revisited
"Executives who feel that they need the latest and greatest often get caught with an IT infrastructure that doesn't drive the full potential of their productivity," explains Edward E. Endicott, Account Manager of Business & Financial Services with Frost & Sullivan in Palo Alto, Calif.
However, slashing IT budgets and adopting a more cautious and even cynical approach to IT planning is not, in and of itself, a strategy for success. Forward momentum must be maintained and constantly measured.
Endicott recommends asking two questions: Will this technology or infrastructure improve our bottom line? And if so, how will it accomplish the improvement? In other words, the best IT strategy is in support of the organization's business goals. Something easier said than done in light of obstacles ranging from turf wars to budget restraints and increasing regulations.
So how can the budget get done? According to Bartels, the way to make it all happen is as follows. At the macro level, have an IT strategic plan that is prepared in conjunction with the business' strategic plan, with business strategy feeding into the IT strategic plan but also with IT's input on the business strategic plan. And at the micro level, have IT relationship managers who are part of the IT department with a solid line reporting to the CIO, but who are assigned to work with business units on a dotted line basis. The IT relationship leaders should ideally be part of the business unit's executive team, where they participate in weekly staff meetings, keep track of business unit initiatives, and monitor, if not lead, IT projects in support of the business.
It becomes clear that there should be a tight connection between the strategic plan alignment of business and IT and the day-to-day alignment between business unit and IT. And that should be done by the IT relationship leader. (article continues)
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