Why are CEOs worried about IT’s ability to deliver?
Recently, I presented at a company lunch and learn to give an overview of our Business Transformation Enablement Framework (BTEF). Here, I highlight what we’re seeing with clients that requires a new approach to how organizations face change, disruption, and market competition as they build capability and agility to execute their digital strategy.
FAANG is Forcing Accelerated Change
FAANG — Facebook, Amazon, Apple, Netflix, Google — has triggered a forced change across industries and organizations of all sizes. Consumers expect more!
We hear more and more that CEOs have three main concerns about their organization’s ability to execute their digital strategy and stay competitive:
- Does my organization have the required capabilities to effectively execute our strategy?
- Which capabilities need to be nurtured to ensure a good return on digital investments?
- How do I close the gap while executing the digital strategy?
Today, CEOs and CIOs need to be aligned more than ever to ensure the c-suite and board have confidence that IT has the capabilities to deliver on business objectives.
A New Model for Facing Accelerated Change Succeessfully
Traditional approaches to technology assessment and planning, that focus on maturity models instead of capabilities, are inadequate to meet the new expectations and pace of change.
Created by our Tech Transformation team, the Business Technology Enablement Framework (BTEF) is designed to provide executives with a clear view of their capabilities across 15 critical areas representing:
By making technology a part of business strategy and goal planning — not a tech-first or business-first approach — the organization can achieve its goals and become a disruptor by leading with technology.
BTEF Accelerates Future-State Goals with Capability Focus
There are numerous ways for an organization to measure how IT is doing: CMMI (Capability Maturity Model Integration), ITIL (Information Technology Infrastructure Library), and SAFe (Scaled Agile Framework) are three examples.
However, when it comes to helping an organization know whether they are equipped, prepared, and able to achieve their specific goals in their current state, maturity-based models fall short.
We want to focus on capability over maturity. Capabilities look at how effectively a company is achieving its goal. Maturity looks at if things are documented, managed, and measured properly, etc. Maturity doesn’t measure effectiveness, which is vital.
Focus on Capability vs. Maturity
BTEF asks different questions to focus on those areas that will realize the client’s goal. Assessing each area’s effectiveness and how capable that area is to achieve the desired outcome is better.
A measurement of how well something is performing with respect to desired outcomes. Capabilities are defined as the voice of the customer over the voice of the process.
- How does this enhance the business
- How does this make my job better
- How does this lead to better quality
The extent to which an organization has explicitly and consistently deployed processes that are documented, managed, measured, controlled, and continually improved.
- What tools are we using
- What are the steps we’re following
- What is the measurement of what we’re doing
- What are our plans to continually improve
BTEF Measures Effectiveness to Achieve Your Unique Objectives
BTEF provides a standardized framework to prioritize changes for an enterprise to improve alignment to its business-driven goals by focusing on effectiveness. It can achieve this so much quicker than other approaches.
The framework uses a new line of questioning, revealing if an organization is following various practices and leadership’s perceived performance versus what’s happening in reality.
BTEF Aligns Business with IT & Instills New Confidence & Collaboration
Whether an organization is pursuing a narrowly-focused initiative or an enterprise-wide initiative, BTEF provides three deliverables that can accelerate the assessment, discovery, and implementation of improvements to achieve desired outcomes.
Deliverable #1: Perception Gap Analysis
As highlighted earlier, BTEF reveals gaps that could derail or hinder progress towards the client’s goal. The Perception Gap Analysis provides greater awareness around the level of capability and where there are gaps that require improvement before success is possible.
Deliverable #2: Investment Temperature Report
Here, we combine the identified priorities from the 15 BTEF areas and the scores from areas assessed, highlighting the relative importance of where the organization should invest in improving overall capability. This is the “aha” moment where, typically, the client realizes that the main problem might not be what they had initially assumed.
Deliverable #3: Roadmap
The roadmap demonstrates what steps to take to execute prioritized improvements efficiently, enabling the organization to move faster on the initiative towards its goal. It answers what to do now and next.
Questions Deliverables Answer:
Does my organization have the required capabilities to effectively execute on the strategy?
Which capabilities need to be nurtured to ensure a good return on digital investments?
How do I close the capability gap while executing on the digital strategy?
Real World BTEF Case Study – IngMar Medical
IngMar Medical is the world leader in respiration simulation devices and software. Their strategy to pivot from an R&D firm into a device and software company required taking a hard look at their business model and goals, their software development life cycle, and organizational culture to ensure they could consistently produce and launch high-quality software and meet company growth goals.
We used the Business Technology Enablement Framework (BTEF) to create a realistic transformation roadmap that addressed typical challenges in establishing a new software development life cycle process, including timeline and production estimating, product launch readiness, SDLC governance, and visibility, as well as performance and production management.