The CIO organisation: how to improve your IT performance

 

One might assume that IT organisations are better positioned digitally than ever before. However, the reality is quite different: internal customers are dissatisfied, employees do not understand the purpose of many projects, external providers are unreliable, and IT management still focuses too much on technical processes and not enough on the big picture. This is largely due to the emphasis placed on innovative solutions and the need to complete operational tasks within time, cost and resource constraints.

In this 'urgency trap', people lose sight of overarching goals. Often, these goals are not precisely defined, and there is a lack of clear objectives within a well-thought-out framework. In our study about the 'High-Performance IT 2025', we found that many companies abandon their commitment to strategic KPIs halfway through, for example. This approach is inefficient and not very promising for the future, as it sacrifices resources and budgets for a manageable output.

What are the key tasks of the CIO?

In order to create a successful IT function that works effectively and generates sustainable added value, IT managers must consistently perform three key tasks:

• Define an IT strategy with clear objectives
• Create the right IT organisation (structures, roles, processes and governance)
• Establish effective IT control (IT performance management)

These three levers can be used to manage processes, service delivery and development in such a way that the IT organisation can become the driving force behind the business strategy. At the end of this process is the so-called "CIO" – the Continuously Improving Organisation.

 

 

What constitutes a good IT strategy?

An IT strategy provides guidelines on how IT can contribute to achieving the company's goals. Derived from the corporate strategy, it must clearly define how IT initiatives can best support the business in achieving its goals, establishing IT as a strategic partner. The strategy focuses on value creation, whether through cost savings, process improvements, or developing new business areas. Clear, measurable goals are essential for controlling the strategy, as KPIs and milestones make progress verifiable and create transparency. The key question for the IT organisation is: 'What role and mandate will we have in future, and what will this mean for our portfolio, processes and competencies?'

How can the right IT organisation be developed?

An effective IT organisation consists of more than just a good structural organisation — it also needs a well-thought-out process organisation. Structures, roles, processes and governance all play a part here. The IT organisation addresses the following key question: 'How do we need to organise ourselves to deliver the planned performance of our services and projects?' It should be flexible enough to respond quickly to change, yet stable enough to deliver consistent results.

What are the objectives of IT performance management?

IT performance management addresses the following key question: 'How can we continuously optimise our performance?' It controls five central dimensions and makes all IT work measurable and transparent.

1. Objective: The strategic IT objectives are achieved in full.

Approach: Regular review of target achievement and adaptation of strategy in response to changing business requirements.

2. Objective: All defined IT services are actively managed.

Approach: Introduce service portfolio management to ensure that only services that deliver real added value and can be operated efficiently are offered.

3. Objective: 100% of IT processes are actively managed.

Approach: Creating a process portfolio to analyse the maturity level of each process, define objectives, and develop action plans for process improvement.

4. Objective: All IT projects are successfully implemented.

Approach: Introduce stringent project portfolio management to manage projects according to priority, resource availability and strategic importance.

5. Objective: Ensure that all agreements with external service providers are fully met.

Approach: Introduce structured provider management with clear SLAs, KPIs and regular performance measurement. This must be taken into account when selecting providers and drafting contracts.

What are the benefits of being a continuously improving organisation?

In our projects, we have seen that the 'CIO' (continuously improving organisation) does not have to remain a vision, but can be realised. Consistent implementation means the IT organisation can fully support the company's strategic goals and demonstrate a comprehensive understanding of its own processes, services and projects. It also creates maximum transparency, both internally and with external stakeholders. This also enables it to meet partners on an equal footing. The results speak for themselves: satisfied customers, motivated employees, and maximum IT contribution to value creation.

 

If you have any questions about IT strategy or would like a free evaluation of the metrics study on High-Performance IT 2025, just send me a message.