IT Team Does Your Team

IT Team

Does your team enjoy a consensus that the two step path towards a strategic contribution by the MIS function is warranted by your observations and studies? Is so, why and if not why not?

The IT alignment 'trap' occurs when either the objectives of the business or the objectives of the IT team do not serve one another, creating an ineffective strategy. For example, the increasingly complex IT system designed for Charles Schwab resulted in confusion, in an effort to create a system that was hyper-customized to different consumers' needs. "To improve alignment, IT organizations develop best-of-breed solutions designed to serve each business' unique needs. They hold off standardization and upgrading of legacy systems. They overlay complexity on old systems, postponing infrastructure improvements and leaving significant scale benefits untapped. Costs rise; delays mount; and fragmentation undercuts coordination across business units" (Puryer, Lochan & Berz 2011). While Schwab's demands resulted in too much complexity, the opposite is also often the case -- a demand for 'sticking to the basics' results in obsolescence, if companies are unwilling to upgrade systems because of the potential costs of training workers in the new system.

IT goals must be both highly aligned with business objectives, and also be highly functional. Neither is useful in and of itself alone. An IT system can work brilliantly, but if it fails to realize the objectives of the company, it is of little use. Conversely, an IT system can serve the functions of the business, but if is not technically proficient this will result in crashes, delays, and needless expenditures. Excellence in IT is by definition a two-pronged strategy. It is not necessarily true that the top-spending organizations show the greatest gains through IT. Highly aligned and high-performing organizations in one study found that they actually "spent 6% less on IT than other respondents" (Puryer, Lochan & Berz 2011). However, communication between leadership and the IT team is essential.

One of the reasons that our team works so well is the close communication that exists between IT and other branches of the organization. Misalignment most commonly occurs when leaders are not technically literate and have an incomplete understanding of the potential of IT to serve organizational goals. They are either afraid of advancement, or expect results too quickly. However, members of the IT department must be well-versed in even the 'soft skill' attributes of the business, such as the typical demographics of customers and the overall mission of the enterprise. IT staff cannot dismiss marketing, advertising, and other aspects of the business it may need to support.

Ideally, IT can fulfill its function simply and in a manner that is aligned with the current resources of the organization. Projects should be on time and within the budget. Management must work closely with IT to ensure this is the case, and inform the staff of any changes that may affect the department's objectives. Consensus is indeed vital -- if IT prioritizes design alone and management prioritizes budgetary considerations alone, there will be a clash.