Hey there! If you've ever worked in a company, you've probably heard the phrase "IT and business alignment" thrown around a lot. But what does it mean, and why is it so important?
In a nutshell, IT and business alignment is when the goals and objectives of the business are reflected in the IT strategies and systems that support them. Basically, it's all about making sure the technology and systems a company uses are aligned with their business goals and objectives. And why is that important, you ask? Well, research shows that companies with strong IT and business alignment are:
· 3 times more likely to outperform their industry peers (Forbes)
· 2.5 times more likely to have a competitive advantage (Gartner)
· 3 times more likely to have successful IT projects (PMI)
For those companies that have their stuff together, what would those successfully aligned projects look like?
Successful IT and Business Alignment:
· A retail company introduces a new e-commerce platform, resulting in an increase in online sales and customer satisfaction (because who doesn't love shopping from the comfort of their own couch without pants on?).
· A manufacturing company implements a new ERP system, resulting in increased productivity and cost savings (If only this was the way to make Excel obsolete).
· A healthcare provider implements a new EMR system, resulting in better patient care and improved patient satisfaction (But I love sitting for hours at the doctor’s office for paperwork).
So basically, IT and business alignment is crucial for business success. But what about the opposite – what happens when IT and business are not aligned? Let's take a look at some all too painful and sometimes personal examples of failed alignment:
Failed IT and Business Alignment:
· A company introduces a new CRM system without fully understanding the needs of the business team and the sales processes. (Here’s a concept, make sure you understand the actual needs before you plow through with that implementation).
· A company implements a new financial management system without sufficient training and support for the business team (Damn it, Long Live Excel).
· A company introduces a new HR management system without fully integrating it with other systems and processes (Was “working” in the requirements?)
As you can see, a lack of alignment can lead to missed opportunities, reduced efficiency, and overall hilarity (okay, maybe not the last one). In fact, according to the Standish Group, only 29% of IT projects are successful when there is a lack of alignment between IT and business. Yikes.
What can you do?
So, how can you make sure your company's IT and business teams are aligned and working towards a common goal? Here are a few actionable steps you can take:
· Problem framing: Clearly define the business goals and necessary business outcomes that will add the value to the organization. The obvious answer may not always be the right one, including the technology-based answers.
· Innovative collaboration: Involve more people in the innovation process and make sure the IT team is included in discussions about business strategy and goals. This will help ensure that the technology and systems are aligned with the business needs.
· Accountability: Establish clear roles and responsibilities for both the IT and business teams and hold each team accountable for their contribution to the alignment process. Ensure expectations for each role are determined and committed to.
· Communications: Regular communication between the IT and business teams is essential for maintaining alignment. Have a cadence of when communications should be expected to the organization, have a communications plan.
· Inspect and adapt: Regularly monitor the alignment between IT and business and adjust as needed to ensure that the solution being developed is supporting the business goals.
· Celebrating: Don't forget to celebrate your successes! When IT and business are aligned, it's important to take the time to recognize the positive impact it has on the company, and to learn from our failures. This is a great feat and should not go unnoticed.
· Creating a culture of continual improvement: Finally, it's important to continuously strive for improvement in the alignment process. Make sure to regularly review and assess the effectiveness of your IT and business alignment efforts and adjust as needed.
By following these steps, you can ensure that your company's IT and business teams are aligned and working towards a common goal. Don't let your company fall into the 29% – make sure IT and business are aligned to achieve the best results (and avoid some seriously awkward moments).
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