IT Management Slideshow: CIO Guidebook for Taming ChangeBy Dennis McCafferty | Posted 07-23-2010
CIO Guidebook for Taming Change
Change is nothing newIn 1942, Harvard economist Joseph Schumpeter introduced the theory of "creative destruction," defining change as a natural consequence of our economic system.
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A model company for adapting to change?Wal-Mart, which constantly refines merchandising, pricing, location, supply, distribution to overpower former competitors like Woolworth's.
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What drives change today?Increased uncertainty. Greater need for innovation driven by reduced product/services lifespan. Need for good information on decisions in real time.
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What is "portfolio management"?It is a way to "tame change" with decision-making methods and tools that effectively use organizational assets. It provides a clear view of how individual actions fit within big picture.
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35 percent35 percent is the average increase in productivity/efficiency improvement that an organization can expect with effective portfolio management.
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Why are tech organizations/departments well-equipped to tame change?1. They serve multiple internal/external customers with virtually unlimited needs to create an opportunity-rich environment.2. They facilitate change as well as manage ongoing operations.3. They deliver primarily through the talents of their workers, who multi-tasks across range of assignments, duties.4. They operate in a dynamic environment in which strategies and priorities must adjust to pace of business.5. Iterative nature of work and technology means projects cannot be fully planned, staffed in advance.
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Step 1 for successful portfolio management:Assess current state of organization (cash flow, projected sales, etc.) and change influences (increasing competition, market trends).
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Step 2 for successful portfolio management:Define goals and evaluate them within research-supported life-cycle estimates for these goals.
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Step 3 for successful portfolio managementInventory resources (funding, equipment, tech, talent) and align with long-term strategies.
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Step 4 for successful portfolio management:Visualize elements competing for common resources and set prioritization.
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Step 5 for successful portfolio management:Compare/contrast alternative ways to invest money, use resources, prioritize and other management actions.
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Step 6 for successful portfolio managementDevelop a final, well-communicated long-term strategy throughout entire organization so ultimate goals are foremost in mind.
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Step 7 toward successful portfolio management:Assess results with consistent quantifiable measures such as financial analysis, risk assessment, idea management, capacity oversight, planning/scheduling, performance success.
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Three business benefits of portfolio management1. Transparency of goals, methods2. Discipline of systematic, quantified approach3. Trustworthiness, as each person involved with change process understands how decisions are made.