The targets of Organization and Competence Development can be divided in two:
- Forming an organization that executes the IT operating model efficiently
- Developing capabilities and competence in line with IT strategy and targets
There are many ways to organize the IT function, depending on the company’s structure, strategy, management style and business area. IT can be centralized, decentralized, or mixed. It may also be appropriate to outsource large parts of IT operations.
In all alternatives, IT is organized into four functions (see Figure 3.5.1 The Elements of the IT Organization). The IT Steering Group, CIO, CIO Office and Portfolio Steering form the Governance function. The Business IT function is operated by the Business Relationship Managers and contributes to Enterprise Development. The Development function covers project and change-based solution development, while the Services function manages and continuously improves operational IT. In a modern and lean IT organization the Governance + Business IT, Development and Services functions have roughly the same number of people, as the majority of services and solutions are sourced.
Figure 3.5.1 The Elements of the IT Organization.
IT Competence Development must be based on developing and reinforcing the competence that are crucial to the implementation of the IT Strategy through the chosen Operating Model. As change accelerates, competence virtualization becomes one of the keys to success. Competence virtualization means scaling the organization based on the current actual need using standardized procedures, so that fast training and on-boarding is possible, and on demand resources can be used to address competence gaps or other shortcomings.
Each section of the IT Standard includes the definition of the key roles that are needed for successful implementation of the goals and objectives within each IT Standard management stream.
Figure 3.5.2 Key roles in IT Standard implementation.
Figure 3.5.2 illustrates the key roles within the IT Operating Model. Although the roles have been placed in their respective management area, the actual responsibility extends beyond it. This ensures a successful implementation of the IT strategy with control, flexibility and efficiency. Other roles, such as Project Owner and Business Process Owners, are business roles with supervision responsibilities across all management areas.
Figure 3.5.3 Illustration of each key role within the main functional area.