We’ve been talking about technology strategy. Every tech exec running an IT shop needs to have a tech strategy. And every technology exec needs to understand what it takes to build and manage one. In this post we’ll cover steps three and four of our strategy build process.
3. Develop IT Mandate: Vision, Mission, and Objectives
We have established our IT vision, mission, and objectives. Now, let’s align and enhance our vision with the business and other IT leaders’ strategies, if applicable. In this step, we will thoroughly review the strategic plans of the organizations we support and align our direction accordingly. This process involves not only understanding the broader business goals but also identifying how technology can serve as a catalyst for achieving them. By doing so, we refine our high-level technology goals and objectives to ensure they are in harmony with the overall mission of the organization. Our aim is to solidify the IT mandate, clearly reflecting our purpose and governing our activities to drive value. Involving key leaders in this vision review is crucial for gaining consensus and buy-in across the board. Agreement at each step is vital for crafting a successful tech strategy that meets both current and future needs.
Once we have a clearly defined IT mandate, it’s important to communicate it effectively to all stakeholders. This includes our team members, employees, and customers. We want everyone to understand the purpose of our IT department and how we plan to achieve our goals. Effective communication also ensures transparency and accountability within the organization.
In addition, regularly revisiting and refining the IT mandate is essential as technology and business needs evolve over time. It’s important for us to stay agile and adaptable in order to continue supporting the organization’s growth and success through technology.
Some key questions we can ask during this process are:
- How can technology support the overall goals of the organization?
- What specific objectives do we need to achieve in order to fulfill our IT mandate?
- Are there any gaps or areas of improvement that need to be addressed?
- How can we effectively communicate and align our IT mandate with the rest of the organization?
By constantly evaluating and updating our IT mandate, we can ensure that our tech strategy remains relevant and aligned with the needs of the business. This will enable us to effectively drive value and contribute to the overall success of the organization. So, it is important for us as IT leaders to continuously review and refine our vision, mission, and objectives in order to stay ahead in today’s ever-changing technology landscape.
4. Define Critical Success Factors (rules of engagement)
How do we measure the success of our tech strategy? We define critical success factors (CSFs) that translate into high-level requirements for top management, including essential elements like budget allocations, resource requirements, and performance metrics. These CSFs provide a framework for evaluating the effectiveness of our strategy and ensuring alignment with business priorities. Specific details of success factors will be determined in subsequent steps such as governance and the implementation roadmap. This step establishes the initial baseline for successful planning and execution. Typically, three to five CSFs are defined to set the stage, providing clear metrics for success and a roadmap for achieving our strategic objectives.
In order to determine the most relevant CSFs for our organization, we can consider factors such as:
- Financial performance and budgeting: Are we effectively utilizing resources and meeting financial targets?
- Customer satisfaction: How are our technology solutions impacting the end user experience?
- Operational efficiency: Are our processes and systems optimized for maximum efficiency?
- Innovation and adaptability: Are we staying ahead of emerging technologies and able to quickly adapt to changes in the market?
It’s important to regularly review and update these critical success factors as needed, depending on changes in business priorities or advancements in technology. By consistently monitoring these factors, we can ensure that our technology strategy remains aligned with the overall goals of the organization. Furthermore, setting clear and measurable success factors also helps to keep the entire IT team focused and motivated towards achieving our goals.
To emphasize, if you don’t have a plan (or strategy) you are going to have a very difficult time managing business expectations. The Technology Strategy is a key document for any technology executive and should be the cornerstone for how you manage your organization.
Click here for steps FIVE and SIX of the technology strategy build process.