IT Operating Model

Goal

To define and implement an optimal IT operating model to maximise the value IT delivers to the business.

The Challenge

The business experienced inconsistent project and service delivery from IT which often relied on individuals or small teams rather than a mature set of enterprise IT services. This led to mistrust from the business with IT and a lack of willingness to work with IT as a trusted partner. In summary, there was not an agreed and enacted IT Operating Model in place.

This had a number of downstream effects:

  • Missing demand management and project governance where business strategy and requirements were not understood, and the delivery was sub optimally managed;
  • Duplication of effort and investment in a number of application areas including Asset Management and Workforce Management where specific business unit solutions would progress rather than an enterprise standard being leveraged;
  • Duplication of effort, processes and tools within IT where many Suppliers and/or sub teams in IT where operating inconsistently; and
  • Unclear accountability existed across the business, IT and Suppliers creating unnecessary conflict, confusion and duplicated work effort.

The Solution

We worked with the client to defined the IT operating model which included:

  • An overall governance model defining how IT will operate;
  • A business centric engagement model that defines how IT engage, communicate, make decisions and jointly manage outcomes with the business;
  • A set of policies and standards that IT is to operate by along with a set of IT services, IT will deliver to the business;
  • A functional model based on Plan, Build and Run with all core processes defined with an owner in each function; and
  • An IT Organisation defined down to Position Description level based on SFIA framework.

Once defined we then managed the implementation of this IT operating model by:

  • Re-assessing the Supplier landscape, renegotiating existing key contracts and sourcing a new Supplier to address the inconsistencies in the IT operation;
  • Running a HR process to affect the IT organisation re-structure to redefine each role based on new position descriptions and accountability;
  • Establishing all key forums and decision processes based on the governance model in IT.
  • Establishing all new roles, key forums and processes in the business and in IT to create alignment with the business; and
  • Implementing a SIAM model for IT operations covering Supplier governance, procedures and tools such that all Suppliers operate within the one model consistently, the mantra being IT “manages” and Suppliers “do”.

Results:

  • Top 10 business priorities understood and managed collectively with IT for success within 12 months; IT given seat at Exco.
  • 11% reduction in total IT operating costs across the group.
  • 40% reduction in internal IT FTE.
  • IT operations consolidated onto client ServiceNow instance from which SLA’s, CMDB data and processes are managed from

 

IT Operating Model Diagram:

IT Operating Model

 

 

 

Clients contact details can be provided on request.