No Technology Plan Spells $$ Down the Drain

by Chuck Bower

Technology planning is a key strategic initiative of your business. How many times have you heard about companies that have reached the limits of their technology’s capacity and chosen a path they regretted later, or worse, spent large sums of money to fix it?  

Technology planning is a process, not a result. The result is the optimized use of your technology investment that supports the business and is aligned with the goals and objectives of your business plan. Let's look at the steps of developing a strategic technology plan of three years duration, which is a typical plan length. From that foundation, you can develop semi-annual or annual tactical plans and projects.

The Planning Team

To start the process, create a planning team of 3-5 members. This should include your IT leader, the CFO or controller, and a key operations leader. The CEO should act as sponsor, and enlist the support of the other key stakeholders in the development of the plan. An outside consultant or key leader in the organization should manage the team, but this will not necessarily be the IT leader. Why not the IT leader? Technology is there to support the organization and drive value and benefits. The business goals and objectives should drive the tech plan, and the IT leader may not be the best person to hold this direction. Another criteria for management of this team is that the team’s manager should have experience in developing strategic technology plans and managing the development to a firm schedule. A planning process that drags on forever is ripe for disaster.

Inventory Your Assets

Next, know where you stand and what you have in technology assets. If you don’t already have an inventory of your IT assets, then it’s time to create one, or bring it up to date. Frequently, important components get added in bits and pieces to support specific customer needs, regulations, or the desires of a key employee. If a technology plan had been developed in the past, review it. How much of it actually became reality? Was it refined as business needs changed, or was it left to collect dust? 

Gain Buy-In

To create an effective and realistic plan also involves input from key stakeholders and the executive team. In all aspects of development of a technology plan, alignment to the business plan must occur. Otherwise, you are writing a worthless document limited in objectives and outcomes, and without buy-in. Interview the key stakeholders for their anticipated needs in view of the business plan. They should not expect the technology plan to be loaded with unrealistic demands that are unachievable. They should be encouraged to ask, “Could we consider…” As this information is collected, verify the vision and anticipated needs with the executive team, and clarify the technology goals and objectives necessary to support and enable the business plan.  Calculate what returns can be achieved from business wants and needs. The outcomes must be measurable and provide a return on investment. Work with the key stakeholders to develop measurable returns. 

A common failure during strategic technology plan development is to omit a key stakeholder. This might happen, for example, because it is assumed that “Joe”, the head of sales, can’t talk about technology and/or doesn’t care. Joe doesn’t need to be a techie to help develop the technology plan. His input is necessary to describe how he would like to communicate and improve relationships with his customers, and what gaps might exist that prevent him from exploiting new markets or increasing customer retention. 

 
No Sacred Cows

Another failure during strategic technology plan development is to assume that the future must revolve around a key technology or process. “We’ve always done it that way” is the death knell to continuous improvement. Likewise, to assume that future technology must be dependent on, or have as a pre-requisite, a server, system or application that has existed for many years is also a mistake. It is always necessary to determine if current technology fits the plan objectives, not the other way around. This is not to suggest that you replace everything. Tried and tested systems are the backbone of success, but only if they continue to meet your needs.

Write the Plan

Write the key goals and objectives to be supported by the plan. Develop realistically achievable components that support the goals and objectives. A good strategic plan isn’t comprised of a single three year project. The plan should briefly describe the development process and stakeholders involved. It should relate the outcomes of each component that supports an objective. Also, identify potential risks to the plan’s objectives. Complete a draft and review it with key stakeholders and the executive team. 

Plan Architecture

Next, develop the architecture plan to support the business. What applications, systems and infrastructure are necessary to support the demands of the business? It is not necessary, nor desirable, to take this architecture plan to an extreme level of detail. Technology changes too rapidly, and the tactical plan will define what is necessary to meet the objectives. 

To Outsource or Not, That Is the Question

What components of technology should be outsourced versus provided internally? This applies to maintaining your network, servers, and infrastructure as well as the software applications required. Companies of all sizes outsource some part of their technology needs since they don’t have the resources to run their business AND become technology experts. Selecting outsourced resources is a topic that will be covered in more detail in a later newsletter.

Timelines and Priorities

Prioritize and negotiate all aspects of the plan with the executive team. Undoubtedly, all of the objectives of the plan cannot be implemented in a matter of weeks or months. Investment of limited resources demands that those projects of a strategic nature or with the best returns should be considered first. Then develop your timelines to measure progress to the plan, and establish accountability with both your technology team as well as the business team(s) associated with the plan components. Once your plan has won approval, the process of implementation begins.

Don’t let the plan collect dust. This is a working document that is refined on a periodic basis, either semi-annually or annually. Your investment in technology deserves it, and your company goals demand it!

To learn more about how to create and execute a strategic technology plan, call Hawthorne Technology Services today.