How ready is your IT organization for IT strategy evaluation?

1 Current state analysis

The first step in IT strategy evaluation is to understand your current state of IT performance and maturity. This involves collecting and analyzing data on your IT resources, processes, projects, costs, risks, and outcomes. You can use various frameworks and tools to benchmark your IT capabilities against industry standards and best practices. For example, you can use the IT Capability Maturity Framework (IT-CMF) to measure your IT capability levels across four domains: managing IT like a business, managing the IT budget, managing the IT capability, and managing IT for business value.

2 Stakeholder engagement

The second step in IT strategy evaluation is to engage your key stakeholders, both internal and external, to gather their feedback and expectations. This involves conducting interviews, surveys, workshops, and focus groups with your IT staff, business leaders, customers, partners, and suppliers. You can use various techniques to elicit and prioritize their needs, preferences, pain points, and opportunities. For example, you can use the Kano model to classify their requirements into basic, performance, and excitement factors.

3 Strategy alignment

The third step in IT strategy evaluation is to align your IT strategy with your business strategy and vision. This involves defining your IT mission, goals, objectives, and value proposition. You also need to ensure that your IT strategy supports and enables your business strategy and priorities. You can use various models and frameworks to align your IT strategy with your business strategy. For example, you can use the Balanced Scorecard to translate your strategy into four perspectives: financial, customer, internal process, and learning and growth.

4 Gap analysis

The fourth step in IT strategy evaluation is to identify the gaps between your current state and your desired state of IT performance and maturity. This involves comparing your IT capabilities, resources, processes, projects, costs, risks, and outcomes with your IT strategy and stakeholder expectations. You can use various methods and tools to analyze and quantify the gaps. For example, you can use the SWOT analysis to assess your strengths, weaknesses, opportunities, and threats.

5 Action plan

The fifth step in IT strategy evaluation is to develop an action plan to close the gaps and achieve your IT strategy. This involves defining your IT initiatives, projects, programs, and portfolios. You also need to prioritize, schedule, budget, and assign responsibilities for your IT actions. You can use various techniques and tools to plan and manage your IT actions. For example, you can use the SMART criteria to set specific, measurable, achievable, relevant, and time-bound objectives.

6 Evaluation metrics

The sixth step in IT strategy evaluation is to establish and monitor the evaluation metrics that will help you track and measure the progress and impact of your IT actions. This involves selecting and defining the key performance indicators (KPIs) and targets that will reflect your IT value and outcomes. You also need to collect, analyze, and report the data on your IT performance and maturity. You can use various dashboards and tools to visualize and communicate your IT results. For example, you can use the IT Value Scorecard to measure your IT value across four dimensions: business value, user value, internal value, and future value.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?