IT CMF Patterns

1. © Innovation Value Institute 2013
IT Capability Maturity
Framework
Patterns and Practices:
Taking IT-CMF to the next level for best practice sharing and
organisational change.
Jim Kenneally – Intel Labs Europe – jim.kenneally@intel.com
Dr Colin Ashurst - Newcastle University Business School - colin.ashurst@newcastle.ac.uk

2. © Innovation Value Institute 2013
What are the challenges you face when trying
to share good practice from project to project
& across the organisation?
How could IT-CMF assist over-
coming these challenges?

3. © Innovation Value Institute 2013
WHAT IS THE FOCUS OF THIS
WORKSHOP?

4. © Innovation Value Institute 2013
Today’s Discussion
IT-CMF: Blueprint For Making IT Better
1) Diagnose 2) Prescribe 3) Medicate 4) Monitor
What should be done?
Assistance from:
- POMs
How could it be done?
Assistance from:
- Patterns & Practices What & how to monitor?
Assistance from:
- CC Performance Metrics
What’re symptoms
& causes? Assistance
from:
- CCs
- CBBs
- Maturity Levels
- Questions
5) Prevent

5. © Innovation Value Institute 2013
Shape Best-Practices
Print Best-Practices
Colour Best-Practices
Patterns describe the form of good solutions,
(shape, size & colours tailored by context and the
rationale)
2) Handle – Grip & hold cup
4) Saucer – catch liquid spills
3) Flat bottom – Stabilise cup
1) Concave vessel – Hold liquid
What is abstracted from practice is not so much an individual
solution but rather the form of good solutions.
Patterns & Practices

6. © Innovation Value Institute 2013
WHAT ABOUT AN IT-CMF
EXAMPLE?

7. 77
Managing IT Like a
Business
Managing the
IT Budget
Managing the
IT Capability
Managing IT for
Business Value
ITG IT Leadership & Governance FF Funding & Financing EAM
Enterprise Architecture
Management
TCO Total Cost of Ownership
BPM
Business Process
Management
BGM Budget Management TIM
Technical Infrastructure
Management
BAR
Benefits Assessment &
Realisation
BP Business Planning PPP
Portfolio Planning &
Prioritisation
PAM People Asset Management PM Portfolio Management
SP Strategic Planning BOP
Budget Oversight &
Performance Analysis
KAM
Knowledge Asset
Management
DSM
Demand & Supply
Management
RAM
Relationship Asset
Management
CFP
Capacity Forecasting &
Planning
RDE
Research, Development, &
Engineering
EIM
Enterprise Information
Management*
ISM
Information Security
Management *
RM Risk Management SD Solutions Delivery
AA Accounting & Allocation SRP Service Provisioning
ODP
Organisation Design &
Planning
UTM User Training Management
SRC Sourcing UED User Experience Design
IM Innovation Management• PPM
Program & Project
Management
SAI
Service Analytics &
Intelligence
SUM Supplier Management
SICT Sustainable ICT CAM
Capability Assessment &
Management
IT critical capability landscape
Defines maturity profiles across IT organisational capabilities to transform organizations from cost-centre to value-centres
* Under development

8. © Innovation Value Institute 2013
Benefits Assessment & Realisation

9. © Innovation Value Institute 2013
Maturity
Level
CBB
Category Practices Outcomes Metrics
Level 5
Benefits
Planning
Extend use of standardised BBMs, business case and benefits realisation
templates/guidance beyond the enterprise
Vendors use the enterprise's language and taxonomy for expressing
business value and benefits
% of external business partners using common BBMs,
business case and BRP templates for investments
Level 5
Benefits
Process
Mandate reuse of historical business value and other BAR data in business case,
BRP development and decision making.
Proliferate learnings to amplify investment returns and manage business
value risk profile
% of investments delivering and/or exceeding initial
business value forecasts
Level 5
Benefits
Culture
Conduct cross-enterprise review of BAR capabilities, templates, guidelines, training
and incentives
Business value culture institutionalised across extended enterprise
% YoY improvement in other BAR metrics
Participation rate across extened enterprise in BAR review
Level 4
Benefits
Planning
Mandate use of standardised BBMs, business case and benefits realisation templates
across the enterprise
Enterprise-wide approach to investment proposal development exists
% across the enterprise using common BBMs, business
case and BRP templates for investments
Level 4
Benefits
Planning
Review business case and benefits realisation templates for effectiveness at
appropriate intervals
Templates stay current with business objectives and leverage best
practices
Length of time between each review cycle
Level 4
Benefits
Process
Mandate contingency risk planning template submission for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans
Level 4
Benefits
Process
Establish procedures to accelerate, decelerate or stop in-flight funding of investments
from the perspective of enterprise scorecards
In-flight investments can react to economic changes and competitor
reactions that threaten to erode forecasted benefits
% of original investments scaled up
% of original investments scaled down
Forecasted vs realised value delta
Level 4
Benefits
Process
Track BBMs for investments at appropriate intervals beyond their initial deployment
phase i.e. throughout their full lifecycle
Understand when to end-of-life/upgrade/replace initial investments
% of investments measured against BBMs throughout their
lifecycle
Level 4
Benefits
Culture
Make business value database available to consistently capture historical investment
performance
Accurate and consistent data is available to support and influence strategic
decisions
Number of times database is interrogated for decision
making
Level 4
Benefits
Culture
Report/communicate business value data across the enterprise Confidence in BAR proramme based on enterprise scorecards.
Cumulative business value
Average business value
Forecasted vs actual business value variance
Level 3
Benefits
Planning
Evaluate and regularly update Business Benefit Metrics (BBMs) to ensure their
relevance to the enterprise's objectives and to also ensure that they align to the
business units scorecards.
The relevance of BBMs is checked to ensure they cover relevant enterprise
objectives
% of investments with BBMs that explicitly link to the
business units scorecards.
Level 3
Benefits
Planning
Standardise and agree with stakeholders Benefits Realisation Planning (BRP)
templates (including review with Finance) for all IT enabled investments
Managing benefits to fulfilment can be tracked and reported % of approved investments using approved BRP templates
Level 3
Benefits
Planning
Develop guidelines and training on completing Benefits Realisation Planning (BRP)
templates
The quality and consistency of BRP submissions is increased % of BRPs requiring rework and resubmission
Level 3
Benefits
Process
Agree with stakeholders a standardised methodology, tools and validation process to
measure impact of investments on forecasted BBMs
Consistent evaluation of forecasted BBMs against actual delivery
% of investments with pre and post BBMs measurement
Level 3
Benefits
Process
Agree with stakeholders multiple financial and non-financial business case inputs.
Holistic evaluation approach for business cases (i.e. criteria beyond
financial are considered)
Weighting attributed to financial versus non-financial inputs
when evaluating business cases
Level 3
Benefits
Process
Assign accountability for realising forecasted BBMs
Benefits have an enterprise stakeholde to troubleshoot issues and improve
delivery
% of investments with enterprise sponsor(s)
Level 3
Benefits
Process
Make available a standardised contingency risk planning template for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans
Level 3
Benefits
Process
Establish and sponsor a Business Value programme Reported forecast vs realised value for enterprise programme % of projects run within the BAR programme
Level 3
Benefits
Culture
Align investment decisions to enterprise level scorecards. Clarity of investments and business case approvals
% of cross-enterprise review of Benefit Assessment &
Realisation.
Level 3
Benefits
Culture
Establish and make accessible Benefits Assessment & Realisation (BAR) training
program
One-stop-shop umbrella training programme for staff on BAR available % of people trained on BAR programme
Level 3
Benefits
Culture
Establish business value champions and increase communication across the
enterprise
Increased breadth of adoption across the enterprise Visibility and
communication of good practice/case material
Number of projects across enterprise adopting a common
and standard approach to managing business value.
Number of examples/cases as examplars, awards
Level 2
Benefits
Planning
Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common
business value understanding
Level 2
Benefits
Planning
Agree with stakeholders a suite of Business Benefit Metrics (BBMs) i.e. operational
definitions and calculations
Investment returns are expressed using a taxonomy understood and
agreed with the enterprise
% of investment proposals using approved BBMs
Level 2
Benefits
Planning
Standardise business case templates for use with all IT enabled investments
Common format for business case submissions allowing fairer
comparisons across investment proposals
% of investments using approved business case templates
Level 2
Benefits
Planning
Develop and make accessible business case training
Formal training on business case development improves adoption of
standardised approaches and business case submission
% of people trained on business case development
Level 2
Benefits
Planning
Develop and make accessible guidelines on completing business cases Information is presented consistently within and across business cases % of business cases requiring rework and resubmission
Level 2
Benefits
Process
Define and assign roles and responsibilities for the overall delivery and running of a
Benefits Assessment & Realisation (BAR) capability to the enterprise
Management has communicated commitment to developing BAR capability
within the enterprise
% of senior managers sponsoring BAR initatives
Level 2
Benefits
Culture
Align investment decisions to business unit level scorecards. Clarity of investments and business case approvals
Number of business unit leaders involved in business case
review and approval
Level 1
Benefits
Planning
No formal Benefits Planning practices expected at this level
No formal Benefits Planning outcomes expected at this level No formal Benefits Planning metrics expected at this level
Level 1
Benefits
Process
No formal Benefits Process practices expected at this level
No formal Benefits Process outcomes expected at this level No formal Benefits Process metrics expected at this level
Level 1
Benefits
Culture
No formal Benefits Culture practices expected at this level
No formal Benefits Culture outcomes expected at this level No formal Benefits Culture metrics expected at this level
Benefits
Planning
Agree an appropriate business
value language definition with
stakeholders
Business benefit operationally
defined
% of senior executives and
managers who share a common
business value understanding
Practices Outcomes Metrics

10. © Innovation Value Institute 2013
Business Value Dials - Practice
• System EOL
• HW / SW Avoidance
• Head Count Avoidance/Reduction
• Factory Uptime
• Unit & Other Cost Avoidance
• Head Count Turnover
• Head Count Productivity
• Materials Discounts
• Scrap/Reserve Reduction
• Days of Inventory
• Days Receivables
• Time To Market
• Optimize Existing Markets
• Open New Markets
• Cross-Selling
• Risk Avoidance/Business Continuity
• Vendor Of Choice
Bottom Line Improvements: Efficiencies,
Productivity
• Measurement is Direct and
readily “countable”
Top Line Growth
• Measurement is not Direct
• Create Competitive Advantage
Source: Intel

11. © Innovation Value Institute 2013
Value Dial Definition / Valuation
Days of Inventory Reductions in days of inventory lead to value in finished goods, work in process, or raw material
inventories.
(value of 1 day) x (days of inventory removed) x 15% (weighted average cost of capital)
Headcount Reduction
or Avoidance
Solutions the reduce human resource requirements or absorb business growth without growing
headcount. Employees can be moved to jobs with greater value.
(number of headcount reduced or avoided) x (average burden rate for location and job type)
Employee
Productivity
Gains in headcount efficiencies or effectiveness. Headcount is expected to produce more
through these gains due to the additional time efficiencies.
(number of employees affected) x (time) x (average burden rate) x (50%)
Business Value Dial - Form
Value
Dials
xxxxxx
Xxxxxx
Xxxxxx
xxxxx
Intel
Vision &
Strategies
Business
KPIs
Programme
Delivery
Major IT
Investments
Business IT

12. © Innovation Value Institute 2013
Business Value Dials - Pattern
Name
• What is the value dial
capturing?
• Concise and to the point
• As descriptive as possible
• In the customer’s language
Common Valuations
• What is it worth?
• The elements of the calculation should be standard
• Measurement and valuation are separate concepts
• IT Finance should own the basics and financial tips
Definition
• One definition
• Specific enough that
everyone understands
• It is not the metric that
occurs at the time of use
Managing IT for Business Value

13. © Innovation Value Institute 2013
How Could Patterns Add Value to IT-CMF?
• Operationalise CC/CBB concepts
for maturity improvement - based
on experience of repeated
application of practices
• Guidance on how to resolve
problems (direct) or how to
organise for solving problems
(indirect)
• Balance providing guidance and
enabling flexibility... scope for
improvisation based on the needs
of specific contexts
Reusable pattern – flexible
for differing shapes & sizes,
Cognitive amplification &
reorganisation tools

14. © Innovation Value Institute 2013
THE CONTRIBUTION OF PATTERNS: A
RICHER VIEW OF PRACTICES

15. © Innovation Value Institute 2013
Pattern
• a formal way of giving good advice on how to
do something
• based on experience of repeated application
• provides rationale and context
• scope for improvisation

16. © Innovation Value Institute 2013
Mrs Beeton’s
Family Cookery
1962

17. © Innovation Value Institute 2013
Nigel Slater
Real Cooking
1997
“A recipe should be a tune
to which you can sing your
own song”
Rick Stein, chef

18. © Innovation Value Institute 2013
“Learn the patterns, then
forget ‘em”
Charlie Parker
saxophonist

19. © Innovation Value Institute 2013
Christopher Alexander A Pattern Language 1977

20. © Innovation Value Institute 2013
PATTERNS: IMPROVING
PERFORMANCE

21. © Innovation Value Institute 2013
Patterns and practices
- A practice relates to a specific approach to getting
work done in a specific context.
• A pattern is a way of sharing advice based on
experience of what works in similar situations – it
is an abstraction of a practice. It abdicates some
of the richness and uniqueness of the practice - to
identify and communicate what works.
What is abstracted from practice is not so much an individual
solution but rather the form of good solutions.

22. © Innovation Value Institute 2013
algorithmic
• if you want to achieve Y in
situation Z, then perform action X
Patterns: ‘is’ & ‘is not’
Has to be translated (by the professional in the field) to a specific problem at hand, problems
are always context related - solution concept
heuristic
• if you want to achieve Y in situation
Z, then something like X might help
Although problems and situations might be very similar, this is not a guarantee that a solution
that worked in situation A also works in situation B
The pattern approach is a way that captures and shares how things get done
while leaving scope for improvisation and adaptation (for example to reflect
different organisational contexts and rationales).

23. © Innovation Value Institute 2013
Maturity
Level
CBB
Category Practices Outcomes Metrics
Level 5
Benefits
Planning
Extend use of standardised BBMs, business case and benefits realisation
templates/guidance beyond the enterprise
Vendors use the enterprise's language and taxonomy for expressing
business value and benefits
% of external business partners using common BBMs,
business case and BRP templates for investments
Level 5
Benefits
Process
Mandate reuse of historical business value and other BAR data in business case,
BRP development and decision making.
Proliferate learnings to amplify investment returns and manage business
value risk profile
% of investments delivering and/or exceeding initial
business value forecasts
Level 5
Benefits
Culture
Conduct cross-enterprise review of BAR capabilities, templates, guidelines, training
and incentives
Business value culture institutionalised across extended enterprise
% YoY improvement in other BAR metrics
Participation rate across extened enterprise in BAR review
Level 4
Benefits
Planning
Mandate use of standardised BBMs, business case and benefits realisation templates
across the enterprise
Enterprise-wide approach to investment proposal development exists
% across the enterprise using common BBMs, business
case and BRP templates for investments
Level 4
Benefits
Planning
Review business case and benefits realisation templates for effectiveness at
appropriate intervals
Templates stay current with business objectives and leverage best
practices
Length of time between each review cycle
Level 4
Benefits
Process
Mandate contingency risk planning template submission for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans
Level 4
Benefits
Process
Establish procedures to accelerate, decelerate or stop in-flight funding of investments
from the perspective of enterprise scorecards
In-flight investments can react to economic changes and competitor
reactions that threaten to erode forecasted benefits
% of original investments scaled up
% of original investments scaled down
Forecasted vs realised value delta
Level 4
Benefits
Process
Track BBMs for investments at appropriate intervals beyond their initial deployment
phase i.e. throughout their full lifecycle
Understand when to end-of-life/upgrade/replace initial investments
% of investments measured against BBMs throughout their
lifecycle
Level 4
Benefits
Culture
Make business value database available to consistently capture historical investment
performance
Accurate and consistent data is available to support and influence strategic
decisions
Number of times database is interrogated for decision
making
Level 4
Benefits
Culture
Report/communicate business value data across the enterprise Confidence in BAR proramme based on enterprise scorecards.
Cumulative business value
Average business value
Forecasted vs actual business value variance
Level 3
Benefits
Planning
Evaluate and regularly update Business Benefit Metrics (BBMs) to ensure their
relevance to the enterprise's objectives and to also ensure that they align to the
business units scorecards.
The relevance of BBMs is checked to ensure they cover relevant enterprise
objectives
% of investments with BBMs that explicitly link to the
business units scorecards.
Level 3
Benefits
Planning
Standardise and agree with stakeholders Benefits Realisation Planning (BRP)
templates (including review with Finance) for all IT enabled investments
Managing benefits to fulfilment can be tracked and reported % of approved investments using approved BRP templates
Level 3
Benefits
Planning
Develop guidelines and training on completing Benefits Realisation Planning (BRP)
templates
The quality and consistency of BRP submissions is increased % of BRPs requiring rework and resubmission
Level 3
Benefits
Process
Agree with stakeholders a standardised methodology, tools and validation process to
measure impact of investments on forecasted BBMs
Consistent evaluation of forecasted BBMs against actual delivery
% of investments with pre and post BBMs measurement
Level 3
Benefits
Process
Agree with stakeholders multiple financial and non-financial business case inputs.
Holistic evaluation approach for business cases (i.e. criteria beyond
financial are considered)
Weighting attributed to financial versus non-financial inputs
when evaluating business cases
Level 3
Benefits
Process
Assign accountability for realising forecasted BBMs
Benefits have an enterprise stakeholde to troubleshoot issues and improve
delivery
% of investments with enterprise sponsor(s)
Level 3
Benefits
Process
Make available a standardised contingency risk planning template for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans
Level 3
Benefits
Process
Establish and sponsor a Business Value programme Reported forecast vs realised value for enterprise programme % of projects run within the BAR programme
Level 3
Benefits
Culture
Align investment decisions to enterprise level scorecards. Clarity of investments and business case approvals
% of cross-enterprise review of Benefit Assessment &
Realisation.
Level 3
Benefits
Culture
Establish and make accessible Benefits Assessment & Realisation (BAR) training
program
One-stop-shop umbrella training programme for staff on BAR available % of people trained on BAR programme
Level 3
Benefits
Culture
Establish business value champions and increase communication across the
enterprise
Increased breadth of adoption across the enterprise Visibility and
communication of good practice/case material
Number of projects across enterprise adopting a common
and standard approach to managing business value.
Number of examples/cases as examplars, awards
Level 2
Benefits
Planning
Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common
business value understanding
Level 2
Benefits
Planning
Agree with stakeholders a suite of Business Benefit Metrics (BBMs) i.e. operational
definitions and calculations
Investment returns are expressed using a taxonomy understood and
agreed with the enterprise
% of investment proposals using approved BBMs
Level 2
Benefits
Planning
Standardise business case templates for use with all IT enabled investments
Common format for business case submissions allowing fairer
comparisons across investment proposals
% of investments using approved business case templates
Level 2
Benefits
Planning
Develop and make accessible business case training
Formal training on business case development improves adoption of
standardised approaches and business case submission
% of people trained on business case development
Level 2
Benefits
Planning
Develop and make accessible guidelines on completing business cases Information is presented consistently within and across business cases % of business cases requiring rework and resubmission
Level 2
Benefits
Process
Define and assign roles and responsibilities for the overall delivery and running of a
Benefits Assessment & Realisation (BAR) capability to the enterprise
Management has communicated commitment to developing BAR capability
within the enterprise
% of senior managers sponsoring BAR initatives
Level 2
Benefits
Culture
Align investment decisions to business unit level scorecards. Clarity of investments and business case approvals
Number of business unit leaders involved in business case
review and approval
Level 1
Benefits
Planning
No formal Benefits Planning practices expected at this level
No formal Benefits Planning outcomes expected at this level No formal Benefits Planning metrics expected at this level
Level 1
Benefits
Process
No formal Benefits Process practices expected at this level
No formal Benefits Process outcomes expected at this level No formal Benefits Process metrics expected at this level
Level 1
Benefits
Culture
No formal Benefits Culture practices expected at this level
No formal Benefits Culture outcomes expected at this level No formal Benefits Culture metrics expected at this level
Benefits
Planning
Agree an appropriate business
value language definition with
stakeholders
Business benefit operationally
defined
% of senior executives and
managers who share a common
business value understanding
Patterns – to provide greater guidance to share good practice and improve
performance

24. © Innovation Value Institute 2013
IDENTIFY POTENTIAL PATTERNS: GOOD
PRACTICES TO CAPTURE AND SHARE

25. © Innovation Value Institute 2013
Identify Potential Patterns
• Work in groups.
• Consider a specific Critical Capability: eg
1. Strategic Planning (SP)
2. Business Planning (BP)
3. IT Leadership & Governance (ITG)
4. Solutions Delivery (SD)
5. Service Provisioning (SRP)
• Target specific CBB(s)
• Share good practices from your organisation and develop a list of potential patterns that
you can share with other groups
• Note: keep in mind the relevant context and the rationale

26. © Innovation Value Institute 2013
Best Practice Recording
- CC:
- CBB:
- Best-practice Name:
- Objective:
- Source (if published):

27. © Innovation Value Institute 2013
Using patterns – lessons learned
• Emphasise usage (as well as writing).
• Can be shared as a book and/or as a community owned ‘living’
resource.
• Write for a specific audience (level of knowledge / maturity).
• Reflect specific assumptions / principles (eg benefits ‘mindset).
• Use an explicit template to capture and structure a pattern
• Use an implicit structure (ie formatting text cf ‘corner doors’) to
communicate and share a pattern.
• Fit with wider roles including education and advisors / coaches.

28. © Innovation Value Institute 2013
pattern language
an interconnected web of patterns which
may be assembled as advice for a task
just what patterns are used and how
determined by the user
more scope for improvisation

29. © Innovation Value Institute 2013
Conduct driver
analysis
Stakeholder
analysis
Establish
benefits
dependencies
Structure benefits
Assess project
type
Phase benefits
delivery
Plan benefits
realisation
Design business
change
governance
Create a shared
business vision
Opportunity
based design
Business
competence
based design
a pattern language
(work in progress)
benefits driven
planning for a
transformation
project

30. © Innovation Value Institute 2013
DRIVING ORGANISATIONAL
PERFORMANCE USING PATTERNS
EMBEDDED IN IT-CMF

31. © Innovation Value Institute 2013
How could we use patterns to:
• add value to current IT-CMF practices?
• to capture and share good practices?
• to help improve maturity / IT capability in your
organisation?

32. © Innovation Value Institute 2013
Today’s Discussion
IT-CMF: Blueprint For Making IT Better
1) Diagnose 2) Prescribe 3) Medicate 4) Monitor
What should be done?
Assistance from:
- POMs
How could it be done?
Assistance from:
- Patterns & Practices What & how to monitor?
Assistance from:
- CC Performance Metrics
What’re symptoms
& causes? Assistance
from:
- CCs
- CBBs
- Maturity Levels
- Questions
5) Prevent

33. © Innovation Value Institute 2013
THANK YOU
Questions & discussion welcomed

34. © Innovation Value Institute 2013
Pattern Template
Name should be brief and easily convey the subject
Context why and where does the problem arise?
Forces problems commonly arise because two or more forces conflict and must be
reconciled: the forces are described
Discussion sets out the best thinking on the problem and approaches to a solution
Solution gives the recommended course of action
New context it is unusual for a solution once applied to solve a problem completely,
rather a large part of the problem is addressed and the system is left in an
improved state, though not without its own problems, and this is described
here
See also gives links to other patterns which may also be of interest or provide further
explanation, though these references are likely to have been given in the
Discussion section

35. © Innovation Value Institute 2013
Patterns & Practices: Moving through the maturity levels
Level 1
• Adhoc
Level 2
• Standard
business
case
template
• Clear review
and sign off
process
Level 3
• Benefits
Realisation
planning
• Benefits
focus to
project
lifecycle
Level 4
• Creative,
workshop
based
approach to
benefits
planning
• Active
leadership /
user
engagement
Level 5
• Flexible
approach
adapted to
specific
project
context