Five "don'ts" when trying to transform IT

when trying to transform IT

Five “don’ts”

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KPMG’s five mistakes to avoid when planning and implementing IT transformation.IT transformation is one of the primary levers today’s companies are pushing and pulling to increase their competitive advantage and reduce their costs.

But common mistakes can derail even the best-intentioned programs, eliminating the possibility of reward, and wreaking havoc in their wake.



Inadequate focus on challenges of change

Five “don’ts” when trying to transform IT

01


IT transformation is, by its very nature, highly disruptive to processes, technologies, culture, and sourcing and delivery models.

— Early assessment of readiness and issues

— Active and honest communication addressing specific stakeholder group concerns and needs

— Early HR involvement

— Assurance to key “A-team” employees that their interests and needs are a priority

To eliminate the multitude of success barriers resulting from employees’ fears about such wide-scale disturbance, you should develop a multi-faceted change management program encompassing:


Governance defines how decisions are made and enforced, consistent with clearly defined policies and expectations within your organization. Lack of strong governance for your IT transformation program can result in incorrect accountabilities, slowed pace of execution, and delayed time-to-benefit.

To keep your program on track, you need to clearly communicate ownership for transformational results, and decision making to achieve and reinforce those results, by:

— Early definition of an appropriate governance model and structure

— Involvement of executive leadership

— Direct, active, and ongoing participation of key stakeholders in what may well be an entirely new and different governance model

Absent or unsophisticated governance


02



Inexperienced planning and execution teams


03


A major IT transformation is a once-in-a-career experience for most executives. Expecting people who have led successful careers delivering IT systems and services to also plan and execute a transformation all too often results in adaptations of and updates to past designs.

True transformation calls for professional objectivity, and appropriate application of previous lessons learned.


Whether due to bravado, inexperience, or overly ambitious third-party provider claims, organizations often underestimate what’s needed to achieve successful IT transformation.

To avoid cost overruns, missed targets, and burned out team members, you need to:

— Honestly assess the hard dollar costs and thepeople resources needed to execute

— Fully consider the inherent challenges

— Appropriately accommodate contingences

Insufficient resourcing


04



This can quickly lead to potentially irreversible and costly errors, loss of key stakeholder confidence, and substantial business disruption.

Ways you can minimize the impact of these issues include:

— Building risk management into the process— Actively monitoring risks— Agreeing on appropriate fixes and accountabilities

By placing close attention to these don’ts and the do’s we’ve outlined in our associated SlideShare, organizations will be well positioned to pre-empt IT transformation’s many pitfalls, and instead reap its real rewards.

Inadequate risk management or monitoring


05



Marc SnyderManaging Director, CIO AdvisoryKPMG in the UST: 617-988-1146 E: [email protected]

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With IT transformation representing one of the only means of survival for some organizations, avoiding pitfalls and taking the right steps are tantamount to success.

Transform your IT organization


KPMG recognizes that today’s CIOs face increasingly complex demands in becoming the strategic technology partner their businesses require. To learn more about how you can position your organization to reap the rewards of IT transformation join us at www.kpmg.com/us/11Lessons

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http://www.kpmg.com/us/11Lessons


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Five "don'ts" when trying to transform IT