How to Tackle the 3 Rs: Resources, Readiness, and Relevance
In-brief:
Introduction
The CIOs of today are heavily overburdened, especially in MSMEs. They are wary, crunched for resources and unsure how to pursue digital transformation initiatives, especially if it’s for the first time.?
Sure, the shift in the mindset has happened: going from “Should I?” to “I Must”. Yet, the path forward is anything but clear.
As the CIO, you are probably stuck in firefighting mode, trying to keep several balls in the air. The challenge lies in managing digital transformation while still handling day-to-day pressures, a task made even more complex by stretched resources and competing demands.
This two-part series aims to guide you through this uncertainty. Having observed many CIOs embark on digital transformation journeys with varying levels of success, I've seen which strategies consistently deliver results.?
In this article, I'll outline those approaches, offering practical insights designed to lighten the load for you and your IT teams."
This article will outline those successful strategies and frameworks with the aim of easing the cognitive and logistical load faced by you and your IT teams.
The Three Rs
We’ll begin with the 3 Rs – Resource, Readiness, and Relevance – dilemmas. Why do I call them dilemmas? Well, because these issues often give us perfectly valid reasons to not move ahead with an initiative.
Consider a situation when one needs to get moving on a new DX initiative, but the whole IT team is occupied. That’s a resource dilemma. Next, one might possess the necessary resources but remains unsure if the organization is ready for transformation – that becomes a readiness dilemma.?
Finally, you might be internally prepared but digital transformation is a big commitment of time, effort and capital – how does one choose? That is the question of relevance.
All three of these dilemmas need immediate resolution.
In anticipation of these competing needs and pressures, I have answers for the CIO to handle everything up until the actual implementation of a digital transformation project.
Regardless of your current state, I hope that by the end of this you can bring a more streamlined approach to tackling the pile of demands on your desk.?
I. Resource Strategies: Optimize Allocation
You wouldn’t turn your house upside down for renovations without having a place to eat, sleep, and unwind, would you? In the same way, running after innovation and transformation without first ensuring stable operations is not the best idea.?
Conversely, using the same analogy, one wouldn’t move out of the house when just one room needs renovation. Similarly, CIOs have to strive towards operational excellence to ensure that day-to-day tasks don’t hinder the scope for innovation.?
Forward-thinking CIOs have dedicated goals for stability and agility in order to strike this balance between streamlined operations and innovative transformation.
At the same time, resources are limited. Therefore, before you consider any transformation, you might need to restructure your IT teams to set them up for success. Consider the following.?
1) A Two-Pronged Approach:
We want dedicated resources for both stability and innovation. Use a two-pronged approach to outlining your team’s goals:
a) Prong 1: Stability and Efficiency
All around the world, CIOs are delaying IT spending, in response to an ongoing wave of pragmatism (and credit restriction) faced by the world economy.
This was highlighted succinctly by John-David Lovelock, VP Analyst at Gartner, who said that the old ‘growth at all costs’ strategy is no longer in vogue.?
Now, people are more focused on efficient growth and costs, with CEOs and CFOs hesitant to sign new IT contracts before getting the required sureties on risks and rewards.
Well, how does one get the required surety? One could work the tried and tested way two-thirds of the time, and then run smart, inexpensive, quick proof-of-concept experiments to test newer ideas before going full-steam.?
Accordingly, the IT function at Hyatt developed a simpler tech stack to improve on-property efficiency for their nearly 1,300 hotels around the world. Simultaneously, they were also working on more customized systems to drive competitive advantage and improve the guest experience.?
Centering efficiency can give the organization the stability it needs to pursue innovation projects. It makes it easier for IT team members to keep their eye on the ball, giving the board confidence that the stakes for innovation projects are not too high.
b) Prong 2: Agility and Transformation
Digital transformation is not a one-and-done project. It is a vital feature that needs to be injected into every aspect of an organization’s functioning. As CIO, your job is to get business-buy in from across the board, while simultaneously outlining a clear DX vision for teams to work on.
“What teams?”, you might ask. It’s important to note here that digital transformation cannot be an IT agenda item alone. Per my observation, this process works best when it is business-led, with the backing and scaffolding of the IT team.?
In your capacity as CIO, you must ensure that you allocate sufficient IT resources to support business teams, in order to meet new transformation demands with minimal disruption.
c) A Bonus – Agile Methodology!
The Agile Methodology is one of many ways you could achieve the balance between innovation and operational excellence.?
Companies that operate using this framework prioritize agility over bureaucracy in the way they structure their teams. The trickle-down effect of this is seen in empowered employees individually taking charge of evolving customer needs, while performing their daily tasks with higher efficiency.
For smaller IT teams that can dedicate resources and people to innovation, individual efficiency and need-based innovation is the key to executing this two-pronged strategy.
2) Strategic Division of Responsibility: Lean into Your Outsourcing Potential
I’ve often seen CIOs overestimate the skills and resources they have on hand. With the speed of change these days, this can be a costly error in judgment.?
CIOs that understand the strength of their organization can accurately judge which areas would benefit the most from outside expertise. The end result? Better scalability and adaptability of resources, ultimately aiding a quick response to business needs.
As a tech leader, you need to ask yourselves, how much time do I have to be successful? Assess the competition: if you need to complete an initiative on a short timeline (a few months), it might be worth considering outsourcing.?
If your organization can’t culturally and operationally adapt to a new initiative in time, external expertise comes along with years of refined solutions and processes that can expedite things. If you worry that you’ll lose control over the solution or quality of work, maybe this article can help allay some of your fears.
Traditionally, IT functions are audited to identify activities for outsourcing.?
CIOs now have to broaden their definition of outsourcing potential, seeking innovation partners who can go above and beyond filling resource gaps. They can complement and supercharge the innovative potential of your organization using the? years of specialized industry insight they have under their belt.
II. Readiness Strategies: Assess
What if you don’t feel ready to start on digital transformation? Perhaps you think your teams and organization are not prepared enough??
Many CIOs get stuck in this version of imposter syndrome, fearing that they will not be able successfully see a transformation through.??
Well, chances are you won’t ever feel ready, and unfortunately (or fortunately), you can’t afford not to start. And neither can this start be limited to incremental improvements or a long slow-drawn overly cautious process.
A defensive position will cost you dearly.
Here are 4 strategies that can help you take the dive into action.
1) Create a robust feedback mechanism
You need to be able to identify the areas where you can have the maximum impact. In order to do that you need to have your ear to the ground; listen to what the business needs.?
Infosys’ Digital Radar 2023 report found that only 5% of enterprises currently have or are implementing a live data approach.?
2) Build internal risk appetite
The path to success isn’t just about running faster. It also helps to not have huge obstacles in your path!?
A digital transformation initiative might make sense to you as CIO, but you still need the buy-in from everyone involved. From end-users to the higher-ups with purchasing power, a positive risk appetite is necessary for creating lasting change.?
Approach it with respect for everyone’s contribution. It's my observation that people are rarely risk averse or resistant to change without a reason.?
For instance, employees might fear losing their job with the rise of new automation initiatives. They could feel resentful that their current efficiency gains will go to waste, and they’ll have to do it all over again.?
Stakeholders might fear trying something new because the organizational culture is task-focussed, and not goal oriented.?
Business teams that haven’t seen success with past DX initiatives might not see your vision for the current one, making them reluctant to support IT teams tasked with implementation.
There could be any number of reasons.? But, you are at the heart of this. As CIO, it’s up to you to demonstrate value to all of these stakeholders.?
The simplest way would be to get everyone involved in the decision-making process, collecting insight and pain points, and acting on them.??
However, having the bird’s eye view, it’s in your hands to demonstrate the goal of your vision. Performance gains tailored towards clearly outlined business objectives can clarify the purpose for everyone involved.
Granting ownership to IT and business teams and encouraging them to take risks will help build internal risk appetite and buy-in.
3) Audit your partners in the discovery phase
Once your internal teams are open to your vision, the next step is making sure your partners are up to the task.?
Greg Taffet, managing partner and CIO with Taffet Associates, insists that CIOs must evaluate the skill levels of external partners working on the transformation.?
He believes that the skills of the partner and the bandwidth of internal teams to learn the requisite skills are often overestimated by CIOs.
We need partners who are already at the level required for the transformation, and who can perfectly complement the in-house skills. This needs to be appropriately evaluated, not approximated.
This ensures that you have 100% of the requisite capabilities to execute the initiative before you even get started.
4) Start ramping up for transformation
Having finalized the roadmap for the transformation, it’s time to start ramping up for the digital transformation initiatives you have lined up. This stage involves policy changes, talent training, external expertise, and impact analysis preparation.
These changes cannot be band aid measures. They will need continuous work but it’s important that you get the wheels moving prior to the actual implementation:
CIOs should also consider involving non-IT leaders in the upskilling by building their familiarity with digital processes.
That’s why I often recommend clarifying the business objectives that each task is working towards. Making it clear why we’re spending money on each aspect of the initiative can ease the cognitive load that comes with switching tracks.
Noah Rosenstein, principal analyst at Gartner, highlights the importance of this in order to reinforce the right perspectives.
Instead of thinking of an initiative as a strategy for the IT department, teams are encouraged to frame it as a strategy for the business’ technology assets, lending a functional flavor to the conversations.?
III. Relevance Strategies: How to Choose
Choosing one digital transformation initiative comes at the cost of another. How does the CIO decide which way to go?
Often teams get sucked into wanting technology just because it’s cutting-edge. While enticing, this might not always be successful. In order to meaningfully measure the accurateness of any tech innovation, one must always hold true to the company’s purpose.?
The issue with an unaligned tech initiative is that you have a skewed way of measuring its success. You want success to be measured by the benefit brought to the business, not by whether your technology is as shiny as the neighbor’s.?
PepsiCo’s Gayatri Narayan finds it helpful when their sector CEOs agree to productivity changes or revenue changes based on the digitisation because then the solution becomes embedded in the business.?
Alignment with business objectives is the true north but there can be many conflicts too. The CIO must ask the tough questions here.
Conclusion
At least 50% of disruptions in the workplace are attributed to technology changes.?
As the leader of the IT functions, CIOs must be available to guide the entire organization – including non-tech functions – through this sea of change. In short, they are being called upon to be change agents.?
With most individual contributors in an organization being openly skeptical or completely disengaged, CIOs have their work cut out for them. It is up to them to steer the organization by inspiring, influencing, and reassuring others.?
Coming up next…
Now that you’re ready to take the plunge with digital transformation, the next question is: how do you ensure that the solution delivers operational excellence.?
The next article in this series will address exactly that. We’ll delve into the four areas you should focus on to streamline operations par excellence.