What common mistakes should you avoid in your IT strategy?

I agree AND I believe that leadership in IT strategy requires not only Collaborative relationships across the business but also creative advocacy on behalf of customer and employee perspectives. A privacy professional and a data strategist have a unique, systems wide perspective that no other business leader shares. A great leader shares these perspectives and finds ways to contribute as well as support in a business’s success.

Alignment should include discussions with senior business leaders to better understand the organization’s priorities and key initiatives over the next 12-24 months. Don’t rely on corporate strategies alone.

Lack of alignment is big issue. However, there is second issue that organizations face, especially larger siloed organizations, and that is having a common taxonomy when it comes to data. IT might meet the needs of one part of an organization, but completely miss the mark for another due to the lack of a common classification when it comes to talking about data. The CUI program of the Executive Branch of the Federal Government is a great example of an attempt at creating a common taxonomy across an organization.

In the classic view of organizations and how they work, it's the correct perspective. There is nothing more critical than alignment of top level business strategy and corresponding department's strategy - including IT which is the motor of current business transformation. However, looking from another perspective, more important than alignment can be cooperation between departments. Then reduction of silos and building of one consistent organization strategy. Example, instead of defining strategy as closer sales channels for customers, you can directly say - digital channels to make sales available on the hand. Inclusion of different perspectives is more important than alignment.

Alignment should be a two-way process: i.e. the IT strategy should influence the business strategy as well. It is a long process to achieve an "enabler" status for the IT, which is regarded as a simple cost center. So besides (or during) the discussions with senior business leaders, a CIO also has to teach them about the possibilities IT can provide for their business plans.

In me experience, one of the biggest problems with flexibility is fear of failure. As I read in a book last time, we can win or learn - when learning is the road to winning. Countless companies think about roadmap and experiments as win or lose game. They are losing on the start in this situation. They cannot invest money in ideas because they can lose. By just changing how we understand our experimentation, we will always win, and every invested coin will pay with win or lesson, opportunity to improve and test again. We need to remember that doing nothing is a way only to lose in long timeframe.

Generally the vision, mission and guiding principles should be specific and focused but able to accommodate shifts in technology and industry trends. Initiatives and specific goals should be closely aligned to the organization’s strategy and goals, and initiatives should be specific and have a tangible impact on business targets. Initiatives and goals should be reviewed quarterly as a minimum, and refreshed annually. The vision, mission and guiding principles likely do not need to be updated regularly unless the business shifts direction.

IT environments of yesteryears were often monolithic and static. However, with the rapid pace of technological advancement, having a strategy carved in stone is a recipe for obsolescence. The key isn't to predict every twist and turn but to build an adaptive strategy. A resilient IT plan is one that accepts, anticipates, and leverages change. Incorporating feedback loops, leveraging cloud infrastructures for scalability, and adopting a DevOps mindset can help foster an environment of dynamic evolution, ensuring the organization is always a step ahead.

Emphasizing flexibility means preparing for the unexpected. In today’s fast-paced digital landscape, disruptions are the norm. Your IT strategy should therefore include contingency plans for unforeseen events, like cybersecurity threats or sudden market shifts. Adopt a modular approach to technology adoption, where systems and processes can be easily adjusted or replaced. This can be seen in how cloud computing has allowed businesses to scale resources as per demand. Encourage a mindset that views challenges as opportunities for growth and innovation. For instance, how companies rapidly shifted to remote work solutions amidst the COVID-19 pandemic is a testament to the power of a flexible IT strategy.

Integration should also be a two-way process: in most of the cases it is inefficient to support old, rigid business processes with state-of-the art IT. The biggest enemy is to fear the change. "The new system should work _exactly_ as the old one, but much better!" A strong senior management support is necessary to overcome this fear. (I always envy SAP consultants the ease of making business process changes. Because a SAP deployment is not particularly cheap, senior management usually keeps close control, which is a key factor of success.)

Having witnessed the fallout of siloed systems firsthand, I can't emphasize enough the perils of a non-integrated IT strategy. It's akin to constructing a building with disconnected floors. While each floor might be impeccable in isolation, the lack of staircases or elevators cripples the structure's functionality. Deep integration across functions ensures consistent data flow, reduces redundancy, and maximizes the value derived from IT investments. Moreover, adopting an API-first approach and embracing integration platforms can smoothen the collaboration between disparate systems and functions.

Integrating IT strategy with overall organizational strategies requires embracing a holistic view. IT should not be seen as a separate entity but as a key enabler across all business functions. For instance, when IT systems are seamlessly integrated with marketing, real-time customer data can significantly enhance targeted marketing efforts. Cross-functional teams should be encouraged, where members from IT and other departments collaborate on projects, breaking down silos and fostering a unified approach. This was exemplified in a global retail company where the joint efforts of IT and supply chain teams revolutionized their inventory management system. Additionally, consider adopting enterprise architecture frameworks

It is rather controversial. To train and develop the IT team is not cheap, so be prepared for the question from senior management: "Why train IT guys, they will learn something new and will leave the company." My usual answer is: "That is a big problem. But there is even a bigger one: what if they do not learn anything and they stay?"

Addressing the skill gap in IT goes beyond traditional training. It involves creating a culture of continuous learning and curiosity. Encourage your IT team to engage in industry forums, webinars, and certifications that keep them abreast of the latest technological trends. For instance, implementing a 'learning Friday' where team members explore new technologies can spur innovation. Additionally, consider partnerships with academic institutions for access to cutting-edge research and talent. Another effective strategy is to implement mentorship programs where seasoned professionals guide newer employees. This not only helps in skill development but also aids in knowledge transfer and retention.

To effectively demonstrate IT value, align your metrics not just with IT performance but also with how they impact overall business objectives. For instance, if your IT strategy includes migrating to cloud services, measure not only the cost savings and efficiency gains but also how it enables faster product development or improved customer service. Storytelling can be a powerful tool here. Share case studies or success stories where IT innovations have led to tangible business improvements, making the value of IT investments more relatable to non-technical stakeholders. Additionally, consider implementing a dashboard that visualizes key IT metrics in real-time, providing a clear and ongoing demonstration of value.

It is important to communicate the results of your strategic planning process. Senior leadership should be briefed on the vision, mission, goals and budget for your IT strategy. Other business leaders should be aware of your vision, mission, guiding principles and goals. Your IT team needs more detail on the specific initiatives and goals for the department. Craft a message specific to each stakeholder and regularly communicate progress.

Value can be quite tricky to measure if not defined and understood upfront by management. The economy value of IT investment must be defined very clearly in the business case before acquisition and deployment. Whereas the intrinsic value can be realised sometimes by losses prevention brought about by the security system implementation. The IT leadership has to be forward looking and diligent about current affairs pertaining to technological advancement and vulnerabilities brought about by none compliance to various standards. The IT organisation has to be the pulse of the organisation, otherwise it’s value will not be realised and might be relegated to a cost centre. Line managers go on a buying spree of applications flooding the market !

Despite the critical role IT plays, its value often remains an enigma to other business units if not demonstrated explicitly. An IT strategy that doesn't articulate its business value is like a novel written in an unknown language—potentially brilliant but largely incomprehensible. Beyond the jargon of terabytes and cloud architectures, IT leaders must translate the tech narrative into tangible business outcomes. Regular business-IT alignment reviews, ROI analyses, and value realization workshops can assist in presenting IT's contributions in a language and format that resonates with business stakeholders.

One big missing point in the article is the lack of balancing between strategic work and producing near term value. Organizations do not have the luxury to stop making revenue or profits while the transformation is going on. IT strategy has to be like a rocket entering back into the atmosphere at a perfect angle. Too steep or too shallow, and it is doomed. You must take strategic and aggressive steps to set the organization for success for years to come, but failing to connect it with short/mid term outcomes is a recipe for loss of momentum, and ultimate failure of the initiative.

Common mistakes to avoid in IT strategy include failing to balance outside-in and inside-out perspectives. Going too far in either direction of focusing overly on industry trends versus current resources and operations is risky. A good strategy shows strategic intent tied to an execution plan while acknowledging risks. IT strategy must align to business direction - if business wants productivity gains and IT talks cloud migration, then communication and alignment suffers. A good strategy is always the one that demonstrates strategic intent and ties it with the execution plan while acknowledging the risks.

Digitising and build the IT strategy based on current business processes instead of imagining the potential blur sky opportunities. While historically the IT strategy was expected to support the business strategy, now the IT strategy shapes the business strategy. Recognising and being confident to lead the business strategy through technology innovations and partnering with the CMO and other growth leaders to shape the growth of the business via innovation and use of emerging tech is the core responsibility of IT leaders. It’s time for IT leaders to shape the future instead of taking strategic priorities from other “business lines”.

While it is always important to be ambitious and to lead the organisation around your strategy, you also need to be pragmatic when communicating the strategy. You need to get small wins to get the trust of the people as they will generally be very critical of any lack of progress, but small wins show progress. You need to ensure the strategy is deliverable when you consider operational requirements and distractions that users present as you help them with day to day requests. You need to take the organisation on the journey, rather than inflict your strategy on the people. No strategy is successful without effective change management. Be conscious of the costs are that they are within the budgets of the organisation. If not it will fail.

Firstly, not aligning the IT strategy with the overall business goals is a key misstep. Another mistake is insufficient cybersecurity measures, which can leave an organisation vulnerable to threats. Failing to plan for scalability and flexibility can hinder growth and adaptability. Neglecting user training and change management often leads to resistance and implementation challenges. Additionally, overlooking regular technology updates and maintenance can result in inefficiencies and security gaps. Lastly, not conducting periodic assessments and adjustments to the IT strategy can lead to obsolescence. Avoiding these errors is essential for a robust and forward-thinking IT strategy.