Trust and Partnership: Strategic IT Management for Turbulent Times


For decades, the relationship between business and IT has been tenuous. As technology paradigms shift and business strategy is continuously honed to take advantage of these advances, the partnership between IT and business units is more crucial than ever. Organizations that can improve upon this relationship, and even build it into an organizational strength, are those best positioned to achieve meaningful and lasting success.

Trust and Partnership provides unique insight into ...

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Trust and Partnership: Strategic IT Management for Turbulent Times

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For decades, the relationship between business and IT has been tenuous. As technology paradigms shift and business strategy is continuously honed to take advantage of these advances, the partnership between IT and business units is more crucial than ever. Organizations that can improve upon this relationship, and even build it into an organizational strength, are those best positioned to achieve meaningful and lasting success.

Trust and Partnership provides unique insight into this relationship and provides a comprehensive framework for IT and business managers to maximize the business value delivered by technology. Going well beyond theory, the book provides real-world advice from experts in the IT management arena, including practical examples and implementation guidance based on proven techniques that have been applied over the course of the past twenty years. Intended for CIOs, IT managers, CFOs, and other executives, this handbook provides scorecards to ascertain strengths and weaknesses and an in-depth look at the seven critical enterprise IT capabilities every business and government organization must develop.

Proper IT management provides the enterprise with an enhanced ability to cope with and capitalize on rapid technology changes and challenges related to business environments. Throughout the book, the authors maintain an intense focus on managing IT in a manner that transforms business and allows organizations to proactively address upheaval in the enterprise IT context. Divided into three parts, the book begins with challenges facing the enterprise before moving to the core competencies of strategic business management and a forward-looking, action-oriented “Next Steps” section that provides a roadmap for strategic IT management success.

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Product Details

  • ISBN-13: 9781118443934
  • Publisher: Wiley
  • Publication date: 4/28/2014
  • Series: Wiley CIO Series, #575
  • Edition number: 1
  • Pages: 479
  • Product dimensions: 8.80 (w) x 6.10 (h) x 1.70 (d)

Meet the Author

ROBERT J. BENSON is a Fellow at Cutter Consortium’s Business Technology Strategies practice and Principal with The Beta Group, a technology management consulting firm. He has consulted with firms and government in the United States, Mexico, and Europe, co-authored several books on IT value and management, and written more than 100 Cutter Consortium publications on business technology strategy and value, IT governance, and IT finance. He is Professor of Information Management at Tilburg University, the Netherlands.

PIETER M. RIBBERS is Professor of Business Information Management at Tilburg University and TiasNimbas Business School (the Netherlands), where he is responsible for the development of executive education in Information Management. He has contributed to national and international journals with scientific and professional publications and co-authored several books. As a consultant he worked for global companies, especially in the field of strategic IT governance, scenario development, and information economics.

RONALD B. BLITSTEIN is Director of Cutter’s Business Technology Strategies practice. His 30-year career includes extensive international leadership experience driving all facets of information management organizations including infrastructure operations, systems development, organization transformation, and business innovation. He has worked internationally with governments, IGOs, and corporations throughout North America, Europe, Africa, and Asia.

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Table of Contents


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



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