The IT Management Function

The IT Management Function

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  Mario Navarro mnavarro.tsi@gmail.com IT ManagementScope Key factors of managing the IT Function 1
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  Table of Contents PURPOSE INTRODUCTION ITMANAGEMENT OVERVIEW CAPABILITIES DIMENSION MANAGEMENT LEVELS SKILL MATRIX FUNCTIONAL FRAMEWORK DESCRIPTION SCOPE IT ORGANIZATION SUMMARY 2
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  Purpose 3 The purpose ofthis document is to provide a general overview, basic concepts, terms and overall scope of the IT Management Function within business organizations.
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  Introduction 4 The Information TechnologyFunction is always in continuous evolution looking on how to satisfy the increasing business demand. The transition from a purely support and systems development area to a function capable to delivery value to organizations is the result of both, the demand of the IT Function to be recognized as a key contributor to enable organization strategy and the demand of the organization to better understand the real value of the investments in technology. This situation has generated a kind of bi-directional capabilities development in most of the organizations, requiring better management skills (without loosing technical expertise) in the case of IT professionals and enhancing technology awareness in the case of Technology users in Business Units. Even when the role of the Information Technology Function may vary depending on the Organization characteristics and how relevant or important is the technology to enable business goals, everyone recognizes that companies are more dependant on technology day after day, and this will continue growing in the future. However, different types of industry may need different level of technology capabilities. In example, the technology needed for a retail industry may not (and is not) equal to the one required in Manufacturing industry But despite the level of Technology needed by the Organization, the importance of an efficient and effective Management of the IT Function is clearly the key element to achieve the expected results and beyond. Therefore, The Management of IT should be clearly focused in achieve the mission of the department that we can simple mention as: Contribute to Business Goals through the effective deployment and use of Information Technology
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  Introduction 5 Nowadays, The ITManager faces a complex work environment with major challenges, risks and constant changes that put pressure in the race to succeed, Customer Satisfaction IT Resources Optimization High Performance Team High Technology Costs Changes in Economy Business & Organization Changes Improve Communication People Development Natural Disaster Events Service Disruptions Salaries & Benefits Speed to Answer Motivate TeamworkStretch Objectives Personal GrowthSupplier Performance
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  IT Management Overview 6 In orderto achieve the IT mission and overcome the barriers the IT Manager in any organization requires a set of management capabilities that can help him drive the Function from a current state to the desired one. The manager should have the capability to understand “Where we are” (The Current State), the understanding of the current situation in both Business and IT scenarios, “Where we need to go”, (The Desired State) the understanding of the goals we need to achieve and “How we will do it” (The Path), the actions that will drive from one point to the other. Defining the right path to succeed is not only a matter to define a plan from beginning to end, but to consider the “checkpoints” during the journey that can give us the certainty that we are still in the right path. Even when the path is properly traced from the beginning, the ability to adapt to new situations is fundamental to arrive to the desired state, the path will not be as planned and will be full of threats that can jeopardize the success but at the same time full of opportunities that IT Manager should be able to visualize and turn them into actions to straighten the way. Current State Desired StateThe Path Current State Desired State Threats Opportunities The Plan The Reality
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  IT Management Capabilities Dimensions 7 TheIT Management capabilities are not only a set of specific functional competencies, but a conjunction of abilities in the administration of resources gained through professional studies, continuous training of methods and best practices, technology tendencies awareness and the knowledge from played roles and projects participation, either technical or business. Each organization may have a proper set of management capabilities (ie. Skill Matrix or Competencies Matrix) for the different positions within each business unit. This Skill Matrix is always defined in conjunction with HR business unit due to the experience and knowledge in methods that helps to align the required skills to organization’s goals. There exist standard definitions for IT Competencies, such as SFIA (Skills Framework for the Information Age) that can be used and customized into the IT Function. This will help to simplify the process implementation. As IT Managers, we should be capable to drive the definition of the required competences for the IT Function, despite the method we select that best fits the specific Organization needs.
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  IT Management Capabilities Dimensions 8 Leadership FunctionalBusiness Thecapability to understand the business in terms of strategy and plans, vision and goals, market position, Key business process, Organizational Culture, Industry challenges & Risks, etc. The capability to understand the different business units and their strategies to achieve expected business value. The capability to understand current and future Technical capacities, methodologies, trends and innovations that can bring benefits to the Organization The capability to create Technology strategies, from conception to implementation aligned to business expectations. The capability to create and maintain solid internal and external relationship, capacity to influence others, decision making and positive behavior. Solid people management capabilities to drive people to improve performance through coaching and development tools The Following diagram shows an example of a three dimension model to identify the key management capabilities needed for a professional whom wants to reach higher positions within the IT Organization. This is an input that can be used to define a Skill Matrix , as we will see in the examples further in this presentation.
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  IT Management Levels 9 Technology Expert Specifictechnology expert such as database, Network, Servers, Security software expert. Usual roles are Innovation, Research, engineering, etc Operational High level of technology knowledge focusing in support services,, system development, etc. Usual roles are System Analysts, Programmers, Field Services, Help Desk, etc. Coordination The coordination of a specific service or area within a management unit. Usual roles are infrastructure services, Asset Coordinator, Functional Project Lead, etc. Line Management The administration of IT resources allocated to serve a specific or a group of business unit. Usual roles are IT Consultancy, Service Delivery, Project Management. Specific Operations The understanding of specific operation within an area of a business unit such as sales operation, production schedule, etc. Business Processes The understanding of a full business process cycle and how the process interrelate to others. Business Unit Full understanding of specific Business Unit, its strategy, goals and projects & plans supporting business strategy Company Understand the CORE business information, the goals driving the strategy. Understand Financial Management & Market position, among other. Function Management Direct the IT Function resources, developing strategy, managing financials, developing people, etc. Usual roles are CIO, Head of IT, IT Manager. Business Sense IT Position LEADERSHIP
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  IT Management Skill Matrix 10 BriefDescription of the scope of the competence Name of the Dimension the competence belongs to Taking this 3-Dimensional model and the levels within the IT Organization, we can build a detailed IT Skill Matrix with the description of the competencies needed in each dimension and every level of the management scale. Contents of the Skill Matrix may vary depending on organizational characteristics as well as the current state or situation in the IT Function (ie. Maturity Level). The figure below explains the minimum content of a Skill Matrix. Name of the Competence Description of tangible and non- tangible abilities that have to be demonstrated to reach this level
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  IT Management Skill Matrix 11 Takingthe model we can set an example, the figure below show one competence for each Dimension.
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  Functional Framework 12 The functionalframework is the description of the different management units that compose the overall IT Function and should cover all the Information Technology areas. This definition should be driven by specific business needs in order to facilitate the enablement of the Company Strategy and goals. The IT Manager responsible for each Management Unit should be able to understand and easily explain the value of the unit and how this is helping to achieve goals. It is also very important to consider some essential elements when establishing a proper Functional Definition, such as: The Input We Get Business Strategy & Goals Focus & Priorities Customer Areas for Improvement Financial Budgetary constraints IT Delivery Model In-sourcing or Out-sourcing In-Housing Development or Packaged Solutions IT Maturity Level Starter, Beginner, Medium, Mature Status of Technology, Innovation, Process Oriented, etc. The diagram in the Next Slide shows an example of a functional framework describing some key management units with a brief list of sub functions.
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  Functional Framework 13 Business Demands Information TechnologyManagement Strategy Management People Management Relationship Management Financial Management Demand Management IT Consultancy IT Solutions Planning Request Management Delivery Management Project Management Systems Develop Request Develop Service Management Service Desk Telecommunication s Systems Support Infrastructure Compliance Management IT Security Audit Management Risk Management Technology Management Technology Delivery Capacity Planning IT Architecture IT Management Functional Scope Suppliers
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  IT Organization 14 The ITManager is responsible to manage a group of people that are organized to execute some specific functions and activities. The IT Organizational Structure is the way the Function assigns human resources to manage and/or operate a set of activities within a specific IT Management Unit The structure of the IT Organization will depend in different factors, such as Business Strategies, Business Policies and even the internal way of work called Organizational Cultures. The design of the IT Organization should follow a structured method that you will be able to see in the Organization Strategic Block. The result of the organizational design process may become into different forms of Organizational structures, some examples or these are: The Horizontal Organization allows major visibility and involvement of the IT Manager in most of the decisions in the function. This model allows a better learning process for entering IT Unit Managers in, but for Senior Managers will be seen as a lack of authority in the decision making process. Vertical Organization allows major empowerment to few IT Unit Managers in the decision making process. In this Model IT Manager is less involved in the details and more time dedicated to strategic matters.
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  Summary 15 As we mentionedat the beginning of the presentation, the IT Manager faces a complex environment and the scope of work is quite extensive. The development of the Management abilities is essential to successfully drive the IT Function. In a very broad perspective the IT Manager is the ultimate responsible to achieve expectations, understand and manage the whole environment around him. People Management Performance Management Business Understanding Functional IT Management Management Abilities Development Relationship Management
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