3.5

Organization and Competence Development

The targets of Organization and Competence Development can be divided in two:

  1. Forming an organization that executes the IT operating model efficiently
  2. 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.

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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.

 

Key Roles

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.

Roles_IT_Standard_v3

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.

Key_roles_v3

Figure 3.5.3 Illustration of each key role within the main functional area.

 

Role Definitions

DEMAND

Business Relationship Manager Is responsible for the implementation of business and IT collaboration on strategical and tactical level as well as monitoring operative activities.
Business Process Owner Is responsible for the evaluation and continuous improvement of business, processes and operational activities in their own area of responsibility.
Business Analyst Business Analyst bridges the gap between IT and business stakeholders by translating business process requirements into technical specifications. Besides being an agent of change, the business analyst has a good understanding of the various business processes and requirements. They ensure the correctness of the business requirements through workshops with the relevant stakeholders. They are responsible for gathering, documenting and translating the business requirements from the various services and processes to technical specifications for implementation.

DEVELOPMENT

Project Owner Project Owner is responsible for the project’s progress and quality towards business and is usually the chairperson of the Project Steering Group. The Project Owner is also responsible for approval and endorsement of the project deliverables. Furthermore, the Project Owner carries the main responsibility for executing and tracking the realization of business benefits.
DMO /PMO DMO promotes development practices for company-wide control, visibility and consistency. It also has the mandate to classify and prioritize development initiative to be approved or rejected by the Development Portfolio Steering. PMO handles all the same tasks as the DMO, but just for projects.
Project Manager Project Manager is responsible for daily project management and ensures that the project produces the agreed deliverables at the appropriate level of quality. Moreover, the Project Manager has the responsibility of ensuring that the project is implemented on schedule and within budget. The Project Manager also handles project-related changes and escalations to the Steering Group.
Business Lead Business Lead has the authority and ability to be the project’s face towards business. The Business Lead’s main responsibility is to consult during Project Planning and to ensure that the designed and developed solution addresses the initial needs as specified by the respective line of business.

SERVICES

Service Owner Service Owner is responsible for an entire service domain and an end-to-end responsibility for the services. Service Owner has a good understanding of business needs and is in charge of developing and maintaining the service development roadmap. Service Owner defines the required service levels in operations and ensures operational performance. 
Service Manager Service Manager is responsible for developing services and plays a key role in projects as well as product releases. The primary objective of the Service Manager is to provide better services at a lower cost.
SMO SMO is responsible for assuring the quality of operations. The SMO together with the Service Desk executes Service Integration and Management (SIAM) over all services. The Service Desk is the front-end taking care of users, while SMO is the back-end function taking care of suppliers and processes.

GOVERNANCE

CIO CIO is responsible for organizing IT and ensuring that IT creates value for the business. As digitalization and agile development gain ground, it is increasingly important for CIOs to create a culture of business-minded innovation and continuous improvement. The CIO ensures that IT management is performed in line with company strategy and good governance. 
Development Manager Development Manager is responsible for developing the IT Operating Model and the related best practices and competence.
Information Security Manager Information Security Manager ensures that solutions and information are available only for intended users and user groups. The Information Security Manager defines practices and policies for information security and oversees that these instructions are followed.
Quality Manager Quality Manger is responsible for the quality of IT solutions. In a digitalized world, user experience is one of the most important measures of solution quality, so each business solution must be easy to use, provide correct information and function properly. 
Enterprise Architect Enterprise Architect defines the technology, applications and information (which together become solutions) required to execute business architecture and processes. The Enterprise Architect, together with business, defines the current and target state of architecture, and then steers the development of business capabilities towards the business strategy.
IT-Controller IT Controller s responsible for IT budgeting, financial planning and monitoring in cooperation with the company’s financial and IT management. The IT Controller also takes care of internal invoicing and pricing, ensuring IT costs are allocated accurately.

SOURCING

Supplier relationship manager Supplier Relationship Manager takes care of strategic and tactical coordination of the suppliers (or a given supplier) over several service domains. Supplier Relationship Manager ensures that the negotiated terms and conditions as well as the forecasted savings will be realized during the procurement.
Legal Counsel The Legal Counsel, together with the Sourcing Manager, ensures that contracts and sourcing principles protect the interests of the company from a legal point of view. When necessary, Legal Counsel also participates in negotiations. 
Sourcing Manager Sourcing Manager is responsible for the company’s supplier portfolio as well as sourcing strategy and category management practices. Sourcing Manager ensures that contracts and sourcing principles protect the interests of the company from both legal and financial point of view. Sourcing Manager also monitors and anticipates the trends in the market place to ensure that the company always gets the best-fit and cost-efficient deliveries.
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