IT decision makers acknowledge the importance of aligning IT with the business. Still, over 60% of mid-sized organizations continue to struggle with IT/business alignment issues. Assess the department's current state of alignment and use the five steps outlined here to increase the value of IT.

IT/Business Alignment Temperature Check

Before an IT department can attempt to improve its value proposition to the business it must establish the current level of alignment. Info-Tech has developed two methodologies for gauging an organization's degree of alignment:

1. The IT Classification Framework Tool provides a standard list of terms and definitions to help communicate the current situation of an IT department in business language to key stakeholders. By classifying an organization as an Innovator, Housekeeper, or Survivor, IT puts senior executives on the same page when evaluating IT's performance and determining future goals and objectives.
2. The IT/Business Alignment Tool scores an organization's alignment across six dimensions, including Communication Maturity, Competency/Value-Measurement Maturity, Governance Maturity, Partnership Maturity, Architecture and Technology Maturity, and Human Resources Maturity.

Building a Foundation for IT/Business Alignment

Once the organization understands its current alignment with the business, it can begin to build a foundation that will improve the current situation. The five steps outlined here provide a solid framework for improving the perceived business value of the IS organization.

1. Manage end-user expectations. Misalignment between internal customer expectations and the capabilities of IT results in end users questioning the department's credibility and business value. There are two key elements to managing end-user expectations. First, end-user expectations must be reasonable. Second, IT decision makers must communicate customers' needs in language leaders can understand. Developing and implementing internal Service Level Agreements (SLAs) is becoming a popular method of managing end-user expectations and making business leaders aware of IT's current capabilities.
2. Integrate IT strategic and tactical planning with the business plan. IT decision makers must educate themselves about the needs of each enterprise business unit. In turn, the organization must integrate with the business units to earn recognition as a valued resource and a contributor to the enterprise's success.
3. Create an effective communication plan. All communication about the organization should flow directly from IT to the business. The more open, inclusive and transparent an IT department can be, the better. Effective communication plans not only address major initiatives but also keep stakeholders informed about the day-to-day services being delivered.
4. Organize IT around delivering services to business units. Info-Tech believes that a traditional organizational structure often inhibits IT's ability to demonstrate business value. More mid-sized organizations are replacing the silo approach to IT with a service/process-based structure. Instead of dividing IT workers into technology groups, they are allocating cross-disciplinary teams to service the unique needs of each business unit.
5. Develop interpersonal relationships with business unit counterparts. When it comes to improving IT/business alignment, the significance of organizational politics cannot be underestimated. Since IT's business value is intimately linked to the perception of business leaders, improve these perceptions by becoming a management insider.

Bottom Line

An IT decision maker's ability to align IT with the business hinges on his/her ability to assess the department's current situation, manage customer expectations, integrate the department with the business, communicate effectively, and service business units.