Is IT Transformation just a pseudonym for cost cutting? Is it just a big word that big consulting companies use to sell even bigger projects? That's what some of the comments on a blog post from last year in CIO Insight claim. In the blog post - and most importantly in the comments - there was a very healthy dose of skepticism thrown out there. I happened to stumble across this a year after it was posted, but found that it still represented a very valid question.
At CastlePointe, the concept of IT Transformation is central to everything we do - we even use it as part of our tag line. But what is it? Or at least, what does it mean to us? I think that's a question that deserves an answer.
To start, we definitely do not believe that IT Transformation is simply another name for cost-cutting. In truth, an IT Transformation effort exclusively or primarily focused on cost-cutting is almost certain to fail. Why? Because a successful transformation effort always begins and ends with people - and it's pretty hard to get people engaged if all you're really trying to do is take a hack at them.
IT Transformation is not a solution or a destination. The goal is not to "become transformed." We believe that IT Transformation is a process. More specifically, it's a process that seeks to alter an organization's behaviors - and sometimes the culture itself - to build organizational capabilities and align itself with its strategic needs and goals.
That means that a transformation effort is not a goal unto itself, but rather a mere means to achieving the strategic (and sometimes tactical) imperatives of the organization. While it is true that you can often assume some generalities about IT organizations that are going through a transformation process (they are generally seeking to instill process discipline, they are likely moving to a service orientation, they are seeking operational efficiency, etc.), these are only common characteristics and building blocks of a transformation effort. But the effort will fail if it is not rooted in specific and tangible business objectives.
The goal, then, of a transformation effort is to identify those behaviors or cultural elements that are inhibiting the organization from achieving its goals and to engage the whole of the organization to change them. It is about creating a vision for how the organization should function and then enlisting the organization to make that vision a reality. If this has been done effectively, you will have successfully connected the strategic with the tactical and created a customer-centered and performance-driven orientation within the organization.
So yes, the term IT Transformation can mean different things to different people. But rather than being a source of weakness, this is actually a source of strength if used properly. The openness to apply this broad concept and process to a variety of both strategic and tactical goals makes it an extremely valuable and powerful tool for the IT leader. It enables him or her to create a nimble, learning organization that knows its strengths and weaknesses, consistently seeks out gaps between where they are and where they need to be and has the capability to rapidly and dynamically transform itself to fulfill its mission.
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