How CIOs Deliver and Show Value From the IT Operating Model

Every IT operating model needs components that define how IT enables, engages and delivers value to the enterprise.

Here’s how to align your IT and enterprise operating models

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CIOs: Ensure Your IT operating model fits into broader enterprise operations

It’s the CIO’s job to ensure the operating model for information and technology works with business unit operating models and enterprise operations, even as they evolve to support new strategic objectives.

To do so successfully:

  • Determine the relationship between operating models

  • Evolve or expand their influence over models across the enterprise

  • Collaborate with key stakeholders to influence enterprise-model changes that achieve strategic outcomes

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CIOs: Here’s how to tie your IT operating model to business value

CIOs must evolve the IT operating model to the best fit for the organization’s business needs and communicate its benefits.

How to compose an IT operating model that generates value

An IT operating model (ITOM) defines how the IT organization contributes to achieving the enterprise’s strategic objectives.

All IT organizations have an IT operating model — whether global and centralized, federated or decentralized, and whether they are agencies or business units. CIOs must methodically design and explicitly document and communicate the target operating model to ensure IT delivers the expected value.

In practice, there are three areas of focus, or outcomes, for the ITOM:

  1. Enable IT efficiency. For example, run projects and efficiently keep the business running.

  2. Enhance business performance, such as improved external customer experience, improved user productivity or cost optimization through business process automation.

  3. Transform the business by creating enterprisewide competitive advantage or growth.

These three are not mutually exclusive, but selecting any one should be a strategic decision based on the business context, model and strategy — and role of IT within the organization.

Deliberately frame all IT operating model components

Achieving target ITOM outcomes requires CIOs to take three steps:

  1. Understand the enterprise’s strategic and digital ambition. 

  2. Implement the right strategies and ITOM to achieve their ambitions. 

  3. Cohesively design all the components in the IT operating model component framework.

The Gartner framework of IT operating model incorporates components that define how IT enables, engages and delivers value to the organization:

  •  Engage. Performance, decision rights and financials —  i.e., how the IT organization engages with the rest of the enterprise, shaping how priorities are determined, funding is obtained and allocated, and success is measured.
  • Enable. Organizational structures, sourcing and alliances, and talent — i.e., the resourcing of the IT organization. 

  • Deliver. Delivery model, tools and platforms, and workplaces —  i.e., how IT will work and the methods they will use. 

Choosing the wrong operating model or misconfiguring the components could result in strategy execution failure.

How to create an effective IT operating model value story

Modernizing your IT operating model will mean selling the benefits of its evolved value proposition to business stakeholders. 

A storyboard can be an effective tool for the CIO to structure a pitch for a new ITOM and create alignment with their audience. It will help break down complex processes and prepare audiences with the insights they need to engage and make decisions. 

Storyboards are most effective when CIOs tell a clear and compelling story that stakeholders can imagine themselves participating in, inspiring them to contribute more.

Section 1: Connect with the audience via an intro and hook

The hook of the presentation should explain what, but also why. It should articulate the business goal or objective that the new operating model will help enable. Once the audience understands the value, they will be more invested in seeing the new operating model succeed. 

Section 2: Articulate key points that realize the value proposition 

With the value proposition established, move into the major components that will help achieve that new value. Explain each problem the change will address followed by an answer, summarize each insight before showing evidence and ensure alignment between the operating model change and supporting insight. 

Section 3: End with a summary and call to action 

Conclude the story with an appeal to the listener’s emotions (i.e., a sense of urgency or empathy). Restate the initial thesis as a reminder of the primary goal and summarize the key points. 

Finally, communicate the call to action or what the audience needs to do next. The story can end with a:

  • Prediction — something that will happen if something doesn’t change

  • Question — to get the audience to make their own predictions

  • Recommendation — actions that can be taken either by the audience or those responsible for the issues

  • Related quotation 

Always craft the message in a way that speaks to the audience.

Driving Transformation and Empowering Yinson’s IT Strategy

Find out how Gartner helped this CIO support the need for a quick assessment of the state of IT at the company and the development of a strategy to move it forward in line with the growing needs of the business.

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