Is there still a case for IT strategic planning?

 The earth is flat in any case

Unless you’ve been asleep, in denial or on medication, you will have noticed, at some level at least, that in the last few months the key assumptions underlying our post industrial survival have been proven flat wrong.

To put that in content, the earth is not round but flat and the universe is merely mirror images of the earth reflected on a layer of slightly opaque gasses. The landing on the moon happened in a closed off section of MGM and hamburgers are good for you.

It no longer matters how much we borrow because we probably won’t be around to pay it back, only nobody will lend it of course because they are keeping it to line their pyramids with.

What’s the point in getting up?

You could easily be pardoned for asking the question and I can see some beginning to think like that.
That, in truth is what recession really is.
An end to economic growth is no big deal, we probably couldn’t survive without taking the odd breather. The bad bit is when sensible people suddenly decide that it’s not worth bothering, then we all suffer and what was a diet quickly becomes bulimia.
Read on and I will convince you that there bigger opportunities than ever, they just need a different approach

So how do you build a business case for IT investment and sell it to the board?

Realism
If you want to be taken seriously, you can’t base any investment on predictions of returning to normal in a few months or pretending the problem doesn’t exist.
You must recognise it and spell it out in terms of a clearly risk managed approach.
It’s unlikely that you are in a business where you can afford to make risky investments with long payback periods, so you need ROI fast, or even faster and you must prove that your eye is on the ball.

Prudence
Getting the financials right is critical, but that’s not the whole story by a long way, here’s a selected list of other issues in no particular order that are extra important.

· Make sure your initiative addresses the bulls eye in terms of business initiatives, not peripheral or even sort of important, but right up there.

· Make sure this is best deployment of scarce capital.  Remember it is no longer in unlimited supply.

· Time to market is very important and can easily be disguised behind impressive returns. Include timing in this calculation. Limping in a month behind your main rival is a great way to blow your big chance.

· Competitive advantage can be a critical factor that is easily missed. If all your competitors are cutting 20% off cost of sales and your initiative wipes 5% off, you might find the idea is less successful than you had hoped.

· Don’t suggest a major new 22nd century architecture if your goal can be achieved reliably with duct tape and scaffolding. This is about surviving today, not ideas or principals or fancy technology.

A little audacity goes a long way
Take a look at tiny little Porche and compare them to giant GM. Porche are busy taking over VW, to create the third biggest car manufacturer in the world and asking nobody for help, but using the downturn to make it possible.
If you are good at what you do and you can improve costs and capabilities, then watch out for all the leftovers of those overweight beasts that are shedding customers and reputation and be ready to take advantage of the opportunities that a downturn creates. In a ten horse race there are nine opportunities and one risk for the bookmaker. Don’t focus in on the risk and blind yourself to the opportunities.

Outside the box

There’s a great awkward purple elephant sitting on the board table and let’s stop pretending he’s not there.
The GAPE I’m talking about is the contradiction between thinking out of the box and following the strategy, the corporate plan and the processes, those things so beloved of civil servants and Ops directors. Let’s just say it:
How the hell can you be a process man who works to the plan and also think outside the box?

Well of course you can’t, it’s that simple, so you have to come out from behind whatever you are hiding behind and take a chance or two. Be up front about it that acceptance of your new proposal means revision of the agreed strategy and the current plan. That’s why they are there, not as straight jackets.
Delivering benefits on the cheap can upset lots of people, especially some members of the IT department, preferred suppliers and business analysts who have carved out cosy corners for themselves, but if that is the price, then accept it and pay it. Here’s a few examples:

· Be prepared to ignore the Enterprise architecture and do it the cheapest way.

· Be prepared to bypass the developers in the corner and buy something a bit scruffy and poorly documented, but supported from outside the business.

· Be prepared to find a few freelancers in Russia and get it done cheaper.

· Learn about mashups that can deliver the same result as an enterprise bus for a tiny fraction of the cost and get your show on the road.

· Get to know someone who knows about opensource solutions that are a bit ugly in places and awkward to install but are FREE and once you get them working they eat no corn.

· If you don’t know about agile methods, speak to someone who does and consider it for appropriate situations.

· Look for SaaS products that can start delivering returns in days rather than months

· This is a no brainer, but rarely done. Make sure your people know how to get the most out of the systems you already have.

So there is a new strategy after all

Yes there is a strategy for the current climate and I believe it has a valid legacy to take forward into the good times also.
Don’t stop looking for opportunities, but look harder, look outside the box and examine them more closely before committing. That usually requires an external input, but it is well worth it.
Don’t plan for a decade, but for this year, who knows what next year will be like, but this strategy will still be serving you whatever it looks like. That means dumping or revising much of the strategy and plans you are currently strangling yourself with. Do it sooner rather than later and free up your thinking and your energy.
Look for silver linings until it becomes a habit
Remember not to get complacent in the next bull market
 About the author

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.