IT-Business Alignment: Enough Already

Achieving business outcomes depends on fostering a new level of cross-departmental intimacy, not alignment.

Charles Araujo, Founder & CEO, IT Transformation Institute

September 18, 2014

4 Min Read

there's no relationship, and you and your business partners will continue doing the dance, getting more dissatisfied with each passing day.

There's another way, but developing an intimate IT-business relationship takes time and togetherness -- two things that are hard to come by in our modern corporate cultures.

A different approach
One Fortune 500 organization is launching what it calls "end-to-end service teams." These teams don't focus on IT or even an IT service. They focus on a specific "business outcome," and they include members of all the various functional organizations that are necessary to achieve that business outcome, including the IT organization.

The results thus far are promising, as these teams create an environment in which everyone is pursuing the same goal. These teams build empathy as they come to understand each other's challenges, limitations, and capabilities. They also break down the silos within IT, as teams are forced to grapple with business challenges holistically and not from the perspective of their technical domains. 

Most important, they build true, trusting, potentially intimate relationships.

Creating a business service team
There are three steps you can take to begin building your own "business service teams."

  • The first and most important step is to focus on business outcomes. I'm not talking about something squishy like "improve business flexibility." The desired business outcome must be something that's immediately tangible to almost everyone in the company and potentially to your organization's customers. 

    Although IT might require its own layer of metrics to monitor how IT is contributing to the business goal, the ultimate barometer of success will be the team's ability to achieve a business outcome. That's a galvanizing change to how things are normally done.

  • Second, recognize that your business service teams will need to progress through three distinct stages.

    When you begin, focus on stability. What's required to ensure that the process that produces the business outcome operates consistently and reliably? The main question for IT will be how it can help enhance stability in some way (perhaps by automating some manual part of the process).

    The team's focus can then shift to optimization -- how to make the process better and more efficient. Once stability and optimization are achieved, the business service team will be free to explore how it can achieve some form of differentiating innovation. The power of diversity will unlock this type of innovation. There's a strong chance that technology will power most or all of the innovative breakthroughs developed during this stage, but it will be the combined perspectives and the trusted relationships that will fuel their development.

  • The third and last step is a protective measure. For a trusted, intimate relationship to develop, all members of the team must believe that they're viewed as equals. If the business unit or units think they will be dictating how things work because they own the process, or if the IT members think it's the "business's job" to define what's required and their job is to develop and implement it, then the whole thing will break down.

    Once inside the business service team, each member must think and act like an equal party to the process of achieving the business outcome. They must see a failure as a failure of the entire team -- same for a success. Every team member will still have her job to do -- and must still be held accountable for delivering -- but there must be a belief that it is one team pursuing one business outcome together.

IT-business alignment has been near the top of the executive priority list for years now. But something's not working. Business service teams have the potential to transform the business-IT relationship from one of passivity and dysfunction to one of intimacy. It will require bold action and a willingness to step out on a limb, but the results could forever change how you operate and the impact you're able to achieve.

And hopefully, we'll never again utter the phrase "IT-business alignment."

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About the Author(s)

Charles Araujo

Founder & CEO, IT Transformation Institute

Charles Araujo, Founder and CEO of the IT Transformation Institute, is a recovering consultant and accidental author of the book The Quantum Age of IT: Why Everything You Know About IT Is About to Change. He is an internationally recognized authority on IT leadership and liberally shares his message of hope about the future of IT and what it means for all of us.  You can follow him at @charlesaraujo.

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