Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20MIT OpenCourseWarehttp://ocw.mit.edu 15.571 Generating Business Value from Information TechnologySpring 2009 For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonDr. Cyrus (Chuck) F. GibsonSenior LecturerCenter for Information Systems Research (CISR)MIT Sloan School of Management 15.571 – Generating Business Value from ITThis research was made possible by the support of CISR sponsors and patrons. April 8, 2009Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson1I. Research and scopeII. Exercise: What is critical to success in a project? III. Forces to be managed to change behaviorIV. Diagnostic decision tree Appendix: Project forces and leadership risk assessmentCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson2 Fourteen case studies on change in the implementation of systems, and change in IT capability, 1970–2008.– Aetna, ACE Project at US Customs & Immigration, Allstate Claims, Amerix, “Cellucorp,” Cybex, Direct Energy, Dow Corning, First National City Bank, Gemstar-TV Guide, Lifeline Systems, “Regional Bank,” Southwest Airlines Survey research and publications– New Risks for MIS Managers, 1982; Pressure Testing and Changing the IT Organization, 2002; IT Enabled Business Change, 2004; CISR Sponsors’ Issues Interviews, 2007–present Consulting studies– “Insurance Operations,” US Postal Service, “Grain Division,” “Operations Consulting Firm,” “Chemical Specialty Business ERP,” “University Systems Change,” “Telco,” “Big Bank”Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson3What makes for success or failure of an IT-business change effort? (Name 2 to 4 things from your experience, observations, studies)Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson4Source: Roberto Fernandez, MIT Sloan School of ManagementCulturalNetworks of relationships with implicit assumptions,shared values, informal rules and sanctionsFormalVisible strategy, structure, systems, plans, processes, projectPoliticalCoalitions & groups with self-interests and rolesCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson5Urgency Assessment of RiskExecution OptionLeadership3 ForcesFormal, Political, CulturalHIGHLOWTOP-DOWN DIRECTIVE TOP-DOWN DIRECTIVEHIGH or LOW RISKLOW RISK4-12HIGH RISK13-20STOP!(Change Leadership)STOP!(Change Leadership)HIGH RISK28-45HIGH RISK13-20LOW RISK4-12STOP!(Change Forces, and Leadership ?) STOP!(Change Forces, and Leadership ?)EXPLORATORYEXPLORATORYHIGH RISK13-20LOW RISK9-27LOWRISK4-12TOP-DOWN DIRECTIVE or EVOLUTIONARYTOP-DOWN DIRECTIVE or EVOLUTIONARYEVOLUTIONARY or EXPLORATORY EVOLUTIONARY or EXPLORATORYCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson61. IT in relation to business change: can follow, parallel, or lead.2. The technology may be critical. Human behavior change is always critical.3. IT projects should always be business projects. Getting business value requires business responsibility and leadership for change.4. Leadership of change requires: a. Understanding and assessment of the context (esp. crisis vs not) and the three forces that influence behaviorb. Contingent execution: using the change strategy to fit the context and forces (top-down directive, evolutionary, exploratory, or stop to mitigate)4. Major change is a journey with unanticipated obstacles and opportunities – regularly assess, periodically alter strategies or leaders 5. Will you be a leader of change? How will you use IT?Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson7Score each item as a risk to the success of the next phase of your project. from 1 (low risk) to 5 (high risk)Formal Forces1. Size and complexity of the project compared to others the organization has done. (e.g., cost, technology, number of stakeholders, new working relationships required)____2. Change in stakeholder behavior required. (e.g., new skills, new knowledge, new practices)____3. Change in business and organization required.(e.g., business process change, new role & reporting, new incentives and rewards)____Total formal risk score (3–15)____Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson8Cultural Forces1. Communication and understanding of the project for relevant stakeholders at this point.____2. Emotional commitment of the stakeholders (i.e., are they eager for it, indifferent toward it, waiting to see what happens, likely to resist passively, likely to sabotage?).____3. Sustainability of work behavior changes made or upcoming (i.e., energy, commitment among stakeholders to continuing the changes).____Total cultural risk score (3-15)____Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR - GibsonCenter for Information Systems Research (CISR) © 2008 MIT Sloan CISR - Gibson9Political Forces1. Existence of potential winners and losers as a result of the project. (i.e., will departments or coalitions gain or lose power and influence?)____2. Exercise of influence to enable or to impede the project by departments, coalitions, or relationships toward project success.____3. Alignment, coordination, and adaptability of IT with business on the project (e.g., Is the project team responsive and