The role of IT leaders to build a IT Business Centric Organization Helio A Silva June 2013 1
COMPANY PROFILE 2
About E C O L A B A trusted partner at more than one million customer locations, Ecolab (ECL) is the global leader in water, hygiene and energy technologies and services that protect people and vital resources. With 2012 sales of $12 billion and 44,000 associates, Ecolab delivers comprehensive solutions and on-site service to promote safe food, maintain clean environments, optimize water and energy use and improve operational efficiencies for customers in the food, healthcare, energy, hospitality, commercial laundry and industrial markets in more than 170 countries around the world. For more Ecolab news and information, visit www.ecolab.com. 3
Clean Water Water is integral to many of our customers key processes such as cleaning and sanitizing, food processing, boiler and cooler water treatment, oil and gas extraction and processing, and pulp and paper processing. With a broad suite of technologies and expertise, we help our customers manage water through conservation, recycling and reuse. 4
Safe Food The foods we eat today come from a global marketplace. And all foods no matter where or how they are produced need to be handled, prepared and stored properly to prevent the growth of harmful microorganisms that can cause illness. 5
Abundant Energy Around the world, the demand for energy is growing and meeting the demand is becoming more difficult. With innovative programs and technologies, we help energy companies extract more energy with fewer resources. 6
Healthy Environments Clean, safe, healthy environments are essential. They are essential to the health of workers, customers and suppliers, the ability to conduct business and the reputations of businesses everywhere. 7
PURPOSE OF PRESENTATION 8
The goal of this session is to share experiences about the effort of IT organization to become Business Centric. But what means, in practical terms, Business Centric? What is the role of IT leaders to build an IT Business Centric organization? According on CIO Executive Board CEB, Up to 70% of IT organizations have liaison role to serve as a primary point of contact between business partners and IT. The question is; How to turn this type of role or process into add value delivery to business? How to change some perceptions such as: IT is IT, you know We, at Ecolab, have been turning concepts around this theme into real organizational and processes changes. Once in the road we saw the complexity of this challenge. I would like to share this experience with you. Be prepared to share your thinking and to interact with your experience on that. 9
Survey at our group in LinkedIn According on CIO Executive Board CEB, Up to 70% of IT organizations have liaison role to serve as a primary point of contact between business partners and IT. Thanks for all responses (2) The conclusion is that I don t know how to get Poll results in LinkedIn. So lets keep the Up 70% as the true. 10
The Bridge Do You think we have a gap? Even dedicating so many resources and effort to face the Business? How we could cross the bridge? Lets see some Customers expert s comments.. 11
If you make customers unhappy in the physical world, they might each tell to six friends. If you make customers unhappy on the internet, they can each tell to 6,000 friends. Jeff Bezos (Book, The connected company ) Your must unhappy customers are your greatest source of Learning Bill Gates Same Book Customers?!. I think ʡʓ Ѿ ѽѻ Customers Jobs?... 12
CONCEPTS & BEST PRACTICES 13
References and Best Practices Look inside the company culture. Ecolab & Nalco relies in Customer Relationship as the base to provide its products and Services. IT business liaison as the primary point of contact between Business Functions (Units, Region, Corporate) CIO Executive Boar in Practice CEB 2010 (*) IT business leaders Skills seminar,nalco and CEB. Pursue the build of cohesive and performance team. The table Group workshop based of the book The 5 Dysfunctions of a team. Gartner reference documents and support. (*) Ex. Change the Way You Think: Lead With Value, Not Technology (ID # G00211159) Ex. The Gartner Business Value Model (ID# G00175097) (*) All Copy Rights reserved Information mentioned only for example purposes 14
PROCESS & DELIVERY MODEL 15
Strategic Framework (example) VISION STRATEGY Be the best IT Team providing superior value to every customer, business, region and function Simple, standard solutions Solid Infrastructure Superior Service Quality OBJECTIVES ENABLERS MAJOR STEPS Leverage customer & field solutions Expand business intelligence Deploy collaboration solutions Improve operational reliability Continue integration Accelerate ERP deployment Global IT / Regional IT Corporate IT Business IT Investment Infrastructure Investment Agree on strategic Frameworks Assign executive sponsors / steering teams to each strategic Framework Prioritize investments to meet budget targets 16
Infrastructure Delivery Model Business Solutions Services Business IT Leaders Business Users 17
Cross Sector Cross Function Business Solutions ERP IT Architecture Infrastructure & Operations Integration (M&A) IT Finance & Controlling Sector Business IT Leaders : Sector 1 Sector Business IT Leaders : Sector 2 Sector Business IT Leaders: Supply Chain & Functions 18
BITL Strategy & Demand Management BITL are responsible to work with business leadership teams to develop IT Strategic Plan and associated Portfolio of Projects and also work with the IT Service Delivery Org to execute the required projects and Services BITL are the primary communication channel with Business Leaders, acting as the bridge between IT Services Org and Business. IT Business Relationship 19
Success Factors 20
How the Job looks like? Business IT Leader Operating Model: Create value to Business, Functional areas and IT via established 2-way communication Goals and Objectives are Developed with IT and Business input Accountability: IT Plan aligned with the Business Units and Functions Projects are Value Driven with benefits and metrics clearly defined Accountable for ensuring IT delivers continuous superior service and value to the business. Well defined and succinct business cases Voice of the Business input to IT solutions Scope: Alignment between IT and Business Ensuring the identification and delivery of excellent IT services and solutions Inform and Collaborate on Strategic Direction Pro-actively build and maintain relationships As a personal consultant and IT advocate to senior business leadership 21
Summary of role Why We Did It IT & Business Alignment Partnership vs. Order Taker Dialogue based on Business Values not in IT deliveries What We Did Developed IT Business Leader Team Goals & Objectives tied to Business Objectives Post Audits of Projects/Business Cases Business Analyst VOC with Business Leaders (do we have gaps?) Projects viability (e.g. Project Initiation phase leadership) Behaviors and Competencies How We Do It Became a Business Strategic partner for Business Standard Processes Roadmaps Business Cases VOC Process (Voice Of Customer) 22
Matrix Organization Global Delivery Org CIO Global Business IT Leader Regional Business IT Leader Regional Organization GEOGRAPHY Focal Point -> IT Bus Relationship Leaders Region 1 Region 2 Region 3 Region 4 Business Sector SECTOR Focal Point (Process Oriented) Business Sector Functions Ex. Supply Chain Customer Centric Business Solutions Delivery Organizations Client Services Infrastructure & Operation 23 23
RACI Model Communication the matrix relationship and respective roles and responsibility, interactions, Example and how the leadership expect the collaboration among people and teams are crucial to the success of matrix relationship and results. 24
RESULTS AND LESSONS LEARNED 25
Outstanding results IT Organizational changes to adapt the model Creating new careers opportunities Creation of Business Leadership council board to guide IT Strategy in regular basis VOC Voice of Customer as tool to maintain regular communication with business leaders IT single point of contact to business organization Consolidate Business IT leaders as strategic partners to business Leadership in common process such as Finance Business plan, budget and Project Portfolio. Partnership with Business to define IT strategy as the enabler of Business Strategy Success Implementation of new concepts and projects. (SCRUM) Improve in IT Delivery metrics and results. 26
Lessons Learned New Job Descriptions complexity Respect differences of Business and Regions VOC is not just a chat, requires techniques and discipline Business support is key Culture of You IT guys... is hard to break Matrix Organization must be understand by the individual contributor stand Point We continue to make mistakes, but we believe we get the right track 27
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Helio A Silva IT DIRECTOR, Latin America Business IT Leader ECOLAB Av.das Nações Unidas, 17.891 6º andar São Paulo - SP T 55 11 5644 6501 C 55 11 96075 5639 F 55 11 5641 7687 E hasilva@nalco.com 29