revenue, headcount, utilization rate). In general some of the following will likely be included in a strategy document:

Core values

Targets (three- to five-year financial and business target metrics)

It is then the responsibility of the CIO to interpret the firms overall strategy and determine how IT can support the company in executing the strategy. This would entail matching current initiatives to each key goal as well as recommending or evaluating new technology requests against each key goal to ensure alignment. The ultimate arbiter of alignment will be the IT steering committee, which we will discuss later in the chapter.

The CIO should annually create an IT strategy document that shows key initiatives in IT and their relationship to business key initiatives. In general, the IT strategy should consider all pieces of the business strategy and core competencies. For example, if one of the goals of the firm is to increase utilization rates from 76 to 83 percent, do any current IT projects get us there? Do any prospective projects help? Perhaps by implementing a real-time-hours reporting system we expect consultants to manage their time more closely and to gain 2 to 3 percent increase in utilization with time management. If another corporate goal is to reduce days sales outstanding from 60 to 55, perhaps a better collections system can help the company achieve this goal. Similar to corporate strategy, the IT strategy document should include the following information:

IT Department mission statement

Near-term goals/initiatives (and how they map to corporate strategy) Long-term goals/initiatives Challenges/risks

Actions required for each quarter and for the year

Key Threats Key Opportunities Key Initiatives (goals)

Architecture

Form follows function.

-Louis Henri Sullivan (1856-1924), The Tallest Office Building Artistically Considered

Technology architecture is a set of guidelines and standards used to direct IT decision making and planning. It is the part of the firms technology strategy that says how we will accomplish our objectives. Architecture:

Is broader than technology but usually handled within technology because no one else gives it much thought-but everyone must be involved.

Flows from strategy.

The Zachman Framework provides an example (see later discussion).

Can increase or decrease maintenance costs by 25 percent.

Technology architecture normally dictates how systems will be designed and implemented. It must be consistent with the enterprise architecture, which is a broader concept. An enterprise architecture describes in various levels of details how the business is designed and functions. One common approach to enterprise architecture is the Zachman Framework. Zachman divides this description into five different views, which include an ever-increasing level of detail. The scope view identifies what will be included in the architecture. The owners view describes the enterprise from how the owners understand it, without technical detail. The designers view provides detail on the relationships required for the owners view to be implemented. The builders view describes how the systems are built and implemented. Finally, the detailed subcontractors view shows the very detailed relationships.

The idea behind describing the architecture is to ensure there is one way to do each process, and each time you approach a new need, you do not create a stand-alone point solution. Rather, you leverage your existing investment. This simplifies your environment-both technology and nontechnology-and controls cost. Exhibit 17.1 shows an application architecture for a generic professional service firm. Key applications include time entry and tracking, project management, billing, financial reporting, document management, sales tracking and bid management, staffing, and intellectual capital management. Technical architecture illustrates the technical platforms that the company operates, the interfaces between these platforms, and the connections to external communication networks. Exhibit 17.2 shows all the categories of technology in an organization that will eventually make their way into the companys application and technical architecture.

Organization

The trouble with teams is that only the lead dog gets a change in scenery.

-Donald Walker, Sergeant Preston of the Yukon, from Never Try to Teach a Pig to Sing

An IT organization must reflect the business. Typically, an organizational chart starts with the chief information officer or IT director and cascades from there. An example is shown in Exhibit 17.3. This is a traditional approach and would certainly allow someone to determine whose reporting structure

Marketing communications

CRM Opportunity management

Contact management Sales orders Forecasting Telemarketing Lead sharing

Engage management

Contact management Billing detail Fee schedules Approval workflow Project date Project schedule

Task distribution MS project management

Dashboard/

Practice management

Customer support

Training requests/ Schedule

Recruiting

Candidate/ Resume management

Job orders/ Requisitions

Internal referrals

Accounting

General ledger

Accounts payable

Accounts receivable

Time and expense

Project accounting

Asset management

Payroll

Employee requisition

New hires/ Departures

CapEx equipment

Pager/Cell phone requests

Help desk tool

IT asset management

IT knowledge base

Phone/VM tracking tool

Productivity

MS Office

Word

Excel PowerPoint

Organizational

chart/ Diagramming

Visio

Project management MS project

Email server Exchange

Collaboration Netmeeting

Web browser Internet Explorer

Company address book Exchange

Reprinted with permission, Executives Guide to Information Technology.

Exhibit 17.1 Application Architecture for a Generic Professional Service Firm

any IT person fell within. Typically the organization is bifurcated by applications and the infrastructure (i.e., operations) groups. The applications management group is responsible for the performance of all the teams in the application development and support group. The application manager must have a complete understanding of the business systems used in each area of the business. The operations manager is responsible for the performance of all the teams in the IT operations group. The operations manager must have a basic understanding of the technologies used in each of the areas managed.