Post on 04-Dec-2014
description
transcript
August 2005 © 2005 Baker Robbins & Company
Successful Technology Begins Outside the Computer Room…Integrating Successful IT with its purpose
Dave Cunningham, ShareholderAlan Nathanson, Shareholder
Baker Robbins & Company
August 25, 2005
August 2005 © 2005 Baker Robbins & Company
Today’s Agenda
Management/IT disconnects
Top 10 IT Success Drivers
Defining IT value
Setting the agenda
August 2005 © 2005 Baker Robbins & Company
Management / IT Disconnects
August 2005 © 2005 Baker Robbins & Company
Legal IT Crossroads
Disaffection with IT– Rapid evolution of technology trend– Platform “pacing” problems– Awareness of outsourcing trends– Profitability pressures
Renewed interest in IT– Organizational size and complexity– Competitive pressures– Regulatory influences
August 2005 © 2005 Baker Robbins & Company
Top 10 IT Success Drivers
August 2005 © 2005 Baker Robbins & Company
Top 10 IT Success Drivers …
Derived from “The New CIO Leader”
August 2005 © 2005 Baker Robbins & Company
1. Leading & Managing
August 2005 © 2005 Baker Robbins & Company
IT Leadership vs. Management
Two entirely different concepts …
Leadership qualities …– Vision– Communication & personality– Relationship building
IT has a seat at the senior management table
Can influence the firm’s style – (three types) …– Cost side focus– Economy driven– Driven by thoughtful investment
Can sell innovation and new ideas
Does NOT emphasize IT management
Leadership
Identifying change and influencing others to change
Management
Execution and control
Leadership
Identifying change and influencing others to change
Management
Execution and control
1. Leading & Managing
August 2005 © 2005 Baker Robbins & Company
Grouping the Remaining 9 Drivers …
Demand Side IT
August 2005 © 2005 Baker Robbins & Company
2. Understanding the Business Environment …
August 2005 © 2005 Baker Robbins & Company
The Business & Practice of Law
The “why” of IT
Requires grasp of fundamental legal practice
Beyond basics - not as straightforward as we think
Focal points …– Law firm competitive landscape– Business fundamentals– Important players in your firm– Trends affecting the legal practice
2. Understanding the Business Environment …
August 2005 © 2005 Baker Robbins & Company
Law Firm Competitive Landscape
How is your firm branded? What’s it best known for? Who are the firm’s 10 largest competitors? Why?
How is the firm competitively different?
What client industries are predominant within the firm?
How does the firm’s Marketing function work?
What types of fee arrangements (beyond simple billable hour) does the firm commonly entertain?
How does practice area cross-selling occur?
2. Understanding the Business Environment …
August 2005 © 2005 Baker Robbins & Company
Legal Business Fundamentals
How is your firm “really” governed?
Which committees are important to IT?
What’s the firm’s partner compensation model?
How is origination credit calculated? Allocated?
How granular are the firm’s profitability measures?
What’s the firm’s strategic plan for growth?
How are office openings & firm mergers considered?
2. Understanding the Business Environment …
August 2005 © 2005 Baker Robbins & Company
Important Players in Your Firm
Practice groups– Practice group heads– Key rainmakers– PSLs & KM managers
Important clients
Client industries
Senior management– Firm wide Managing Partner or Chairman - first– Executive & Marketing Directors – second– Finance, HR, Recruiting, Facilities Directors - third
2. Understanding the Business Environment …
August 2005 © 2005 Baker Robbins & Company
Important Trends Affecting Legal Practice
Mergers & consolidation
Regulatory compliance & litigation readiness
Profitability reporting & strategic information delivery
Lock step compensation model
Knowledge Management concept and reality
Strategic sourcing
Matter-centric service life cycle
2. Understanding the Business Environment …
August 2005 © 2005 Baker Robbins & Company
3. Creating a Vision for IT-Based Success …
August 2005 © 2005 Baker Robbins & Company
What constitutes visionary IT activity?
Rarely involves:– infrastructure (pipes & plumbing)– “must have” baseline investments (e.g., laptops, Word)– associated user support services
Ideally involves:– New or further growth of a value proposition or ROI;– Material cost savings over a pre-existing expense; or– A qualitative (i.e., quality) improvement that can be
measured
3. Creating a Vision for IT-Based Success …
August 2005 © 2005 Baker Robbins & Company
Examples of Visionary Efforts …
Global firm “Follow the Sun” transaction documents (2001)
Integrated practice area portal (2002)
Large firm move to off-site data center & administrative services (2003)
Record retention rules integration with DMS (2004)
IP litigation defendant claim call center (2005)
August 2005 © 2005 Baker Robbins & Company
Modest VisionsCan Florish HereModest Visions
Can Florish HereGreat VisionsCan Die HereGreat VisionsCan Die Here
Emerging Technology Hype Cycle …
Source: The Gartner Group
Visibility
MaturityTechnolog
yTrigger
Peak ofInflated
Expectations
Trough ofDisillusionment
Slope ofEnlightenme
nt
Plateau ofMaturity
August 2005 © 2005 Baker Robbins & Company
Popular Theory: Pick Two … Mitigating the Hype
3. Creating a Vision for IT-Based Success …
Faster
Better Cheaper
August 2005 © 2005 Baker Robbins & Company
Budget Accompanying Impact Statements …
Description
Client Impact
Practice Group Impact
Cycle Time Impact
P&L Impact
Ranking
3. Creating a Vision for IT-Based Success …
Initiative #1
Initiative #2
Initiative #3
Initiative #4
August 2005 © 2005 Baker Robbins & Company
4. Shaping IT Constituent Expectations …
August 2005 © 2005 Baker Robbins & Company
Translating Business Strategy Into IT Strategy
IT initiative impact statements aren’t sufficient
Initiatives must be auditably tied to business strategies
Process consists of 2 steps
Step #1:– Define how (in actionable terms) a business goal will be fulfilled
based upon no more than six (6) business maxims. For example:– Pricing of legal services & economies of scale (e.g., best practices)
– Value differentiation & Client intimacy
– Flexibility & agility
– Business growth (client industries, geographies, existing vs. new client base)
– Human resource requirements
– Management requirements
4. Shaping IT Constituent Expectations …
Source: The Gartner Group
August 2005 © 2005 Baker Robbins & Company
4. Shaping IT Constituent Expectations …
Translating Business Strategy Into IT Strategy
Step #2:– For each business maxim, draft IT maxims that identify
(by way of example):
1. New or modified technologies that the business goal requires
2. How related information is to be gathered, stored, accessed and used
3. IT architecture and standards requirements tied to the business goal
4. Telecommunications requirements tied to the business goal
5. How users and clients are to be supported
6. IT asset requirements and costs
7. How IT contribution to business goal achievement may be measuredSource: The Gartner Group
August 2005 © 2005 Baker Robbins & Company
IT Maxim Examples …
IT will be used to reduce costs through elimination of duplication of effort
New matter intake workflow must ensure that risk management steps have been taken
We must centralize document management libraries across offices to ensure distance collaboration
Mobile users must have the same access to information that they have at the desktop
4. Shaping IT Constituent Expectations …
August 2005 © 2005 Baker Robbins & Company
Rules for IT Maxim Development …
Develop IT maxims in collaboration with business stakeholders – not within the IT organization
IT maxims should always be:– Formulated using explanatory sentences– Actionable (as opposed to theoretical)– Realistic, given culture and existing IT baseline– Capable of some form of measurement
4. Shaping IT Constituent Expectations …
Source: The Gartner Group
August 2005 © 2005 Baker Robbins & Company
5. Creating Effective Governance …
August 2005 © 2005 Baker Robbins & Company
What Is Governance Anyway?
The process of determining how to allocate IT dollars and resources:
– to the right business needs,– in consideration of the right priorities, and– having accounted for material risks and rewards.
Not synonymous with IT management
Requires participation by business stakeholders
IT-only or Business Leader-only participation doesn’t work
Role traditionally (usually incorrectly) filled by a Technology Committee
5. Creating Effective Governance …
August 2005 © 2005 Baker Robbins & Company
Signs of Good IT Governance …
Not all business objectives are considered equally important; energies in fewer more important areas
Little drastic change in governance philosophy across plan years
Formal process for handling inevitable exceptions
Formal communication methods among Governance body members
Very senior management participation is evident
5. Creating Effective Governance …
August 2005 © 2005 Baker Robbins & Company
A Well Rounded Governance Council …
Chief Information Officer (chair)
Managing Partner or Chairman
Executive Director
Finance Director
Marketing Director
Practice Area Chairs (or equivalent)
Heads of KM, RM, and IT lead managers (varies)
5. Creating Effective Governance …
August 2005 © 2005 Baker Robbins & Company
6. Weaving Business & IT Strategy Together …
August 2005 © 2005 Baker Robbins & Company
How the Weaving Works …Governance body:
1. Defines initiatives with an associated business case
2. Evaluates initiatives using objective criteria based upon:• Business impact
• Financial impact
• Risk
• Architectural fit
• Delivery of benefits
3. Compiles an overall IT Portfolio across initiatives
4. Prioritizes initiatives and balances the portfolio (considerate of knockout factors)
5. Matching initiatives to resources
6. Managing the portfolio actively, following up on costs and benefits
6. Weaving Business & IT Strategy Together …
August 2005 © 2005 Baker Robbins & Company
IT Portfolio Represents:
Architecture, platforms & applications having the highest business value across the firm
Also takes into account IT-related Opportunities (ITOs) with acceptable risk
Focal point for halting low value, conflicting & redundant effort
Baseline for all IT action, subject to formally recognized changing conditions
6. Weaving Business & IT Strategy Together …
August 2005 © 2005 Baker Robbins & Company
Sources of Portfolio Funding Include …
Firm level funding (typical)
Practice Group funding (presumes PG P&L - rare)
IT funding with internal chargeback (rare)
Client funding (e.g., expense chargeback or case specific litigation support) (decreasing in popularity)
Consortium funding (e.g., 1992 financial consortium)
Funding through sale of IT services (rare)
6. Weaving Business & IT Strategy Together …
August 2005 © 2005 Baker Robbins & Company
Grouping the Remaining 9 Drivers …
Demand Side IT
August 2005 © 2005 Baker Robbins & Company
Grouping the Remaining 9 Drivers …
Demand Side IT
Supply Side IT
August 2005 © 2005 Baker Robbins & Company
7. Building the Right IT Organization …
August 2005 © 2005 Baker Robbins & Company
Repurposing Traditional IT …
IT’s charter is to deliver promises (IT Portfolio) made on the demand side
Through successful delivery, IT creates demand-side credibility by:
– Doing well what it is supposed to do– Measuring its progress and contribution to business
goals– Communicating its progress
7. Building the Right IT Organization …
August 2005 © 2005 Baker Robbins & Company
Problems With Many IT Shops …
Larger firms have both central & decentralized functions with – at times – competing interests
Organization is often based on functional silos
IT initiatives inevitably involve effort across multiple silos, creating inefficiencies in the IT delivery process
Consequently, users suffer
Occasional tinkering with org structure doesn’t help
7. Building the Right IT Organization …
August 2005 © 2005 Baker Robbins & Company
New IT Organization Trends …
Elimination of organization by platform, skill set, etc.
Process-based work – organizing IT resources around cradle-to-grave business and IT processes
Adoption of strategic sourcing model …– Not to save money– Rather, to offload select IT effort of a low strategic focus– Helps IT to be more agile & responsive to the firm
Embed a portion of remaining IT into the Practice Groups
Remainder of IT assumes the following roles:– Participation in Demand-Side IT functions– Management of IT processes– Liaison with sourcing and embedded resources– Primary focus on business and practice innovation
7. Building the Right IT Organization …
August 2005 © 2005 Baker Robbins & Company
Illustration of New IT Model …
7. Building the Right IT Organization …
BusinessInnovation
DeliveringChange
SupportingInfrastructure
Outsourced to External Service
Providers
Embedded inthe Practice
Groups
Traditional IT Responsibilities
Source: The Gartner Group
August 2005 © 2005 Baker Robbins & Company
8. Developing a High Performance IT Team …
August 2005 © 2005 Baker Robbins & Company
IT Team Performance Requires …
The right competencies, with new emphasis on:– Business needs– Leadership– Process Management
Formal training in support of the above
New tools for IT involving:– Methodology– IT process automation– Documentation
8. Developing a High Performance IT Team …
August 2005 © 2005 Baker Robbins & Company
New IT Tool – IT Infrastructure Library (ITIL)
“Best Practice” guidance for IT service management
Specifically, a framework for:– Structured IT process definition (wide ranging)– Application and security management– Improved communication both within IT and user
community– Potential IT operational cost reduction– Improved alignment with Demand-Side IT activities
8. Developing a High Performance IT Team …
August 2005 © 2005 Baker Robbins & Company
ITIL Framework
8. Developing a High Performance IT Team …
August 2005 © 2005 Baker Robbins & Company
9. Managing IT Related Risks …
August 2005 © 2005 Baker Robbins & Company
Wide Ranging Risk Focus …
Virus, spyware, spam, pop-up, etc.
Denial of service
Theft of data
Web access unrelated to business
Violation of attorney privilege
Business continuity & disaster recovery
Regulatory Compliance (HIPAA, SOX, DSBNA, etc.)
Litigation readiness
9. Managing IT Related Risks …
August 2005 © 2005 Baker Robbins & Company
IT Role in Law Firm Risk Management …
Manage “above the line” IT risk-related efforts
Incorporate ITIL Security Management best practices
Address “below the line” risks through:– Establishment of a risk council or committee (including the firm’s
litigation, RM and DR functions as well as in-house counsel if existent)
– Develop formal security policy (based on COBIT / ISO17799)– Prepare and implement a comprehensive record retention policy
Prepare and execute with employees a firm policy binder covering their role in all risk-related areas
9. Managing IT Related Risks …
August 2005 © 2005 Baker Robbins & Company
10. Communicating IT Performance …
August 2005 © 2005 Baker Robbins & Company
Premise for Understanding IT Performance
Scenario #1:
A senior partner in the firm asks:
“What business value are we getting from IT?”
What is your response?
• Do you know the answer to her question from an organizational and investment dollar perspective?
• Are you prepared to articulate that answer in a meaningful way?
10. Communicating IT Performance …
August 2005 © 2005 Baker Robbins & Company
Premise for Understanding IT Performance
Scenario #2:
Your IT Governance Council asks:
“Did we achieve the value we expected from project X?”
What is your response?
• Have you established reasonable metrics for project X?
• Have those metrics been useful in assessing the project?
• Are governance decisions imminent as a result of the metrics?
• Are you prepared to articulate the above in a useful way?
10. Communicating IT Performance …
August 2005 © 2005 Baker Robbins & Company
Perception vs. Reality of Value Two stories about value
Who has a better grasp on value:– The motorist or the rancher?– The engineer or the company?
The value of an IT-based initiative can only be effectively measured if:1. The business case for its IT Portfolio inclusion agreed to the
value measurements “up front”
2. The measurements are actually taken and assessed
3. A feedback loop is created for the IT Governance Council
10. Communicating IT Performance …
No
ambiguity
August 2005 © 2005 Baker Robbins & Company
Perspectives on Value & Benefit …
Measurements must be practical
Plain and simply communication along three lines:– Technical benefit (in pedestrian terms)– Business benefit (top or bottom line oriented)– Partner benefit (client business volume, profit per
partner, etc.)
10. Communicating IT Performance …
August 2005 © 2005 Baker Robbins & Company
IT Performance Dashboard Concept …
Two sets of IT performance indicators or scorecards
Vetted by IT Governance Council
Type 1: IT indicators might include:– Basic operational performance statistics– System availability measures– IT support performance indicators– Service level effectiveness– Delivered projects index (on-time, on-budget)– IT cost ratios (function of P&L)
Type 2: Business value indicators (tied to Business Maxims)
10. Communicating IT Performance …
August 2005 © 2005 Baker Robbins & Company
Setting the IT Agenda
August 2005 © 2005 Baker Robbins & Company
Summary of Action Items to Consider …
Tune the focus of your IT leadership (vs. management)
Take a fresh pass at understanding the firm’s business
Initiate Business & IT maxim preparation efforts
Identify IT initiatives where Business & IT maxims converge
Recast your firm’s governance model
Prepare and evolve a living IT Portfolio
Repurpose the IT organization with above in mind
Implement ITIL (or something like it)
Extend risk management outside the IT boundary
Measure and communicate the value of IT on a perpetual basis
August 2005 © 2005 Baker Robbins & Company
Questions