Strategic Planning

The Strategic Planning (SP) capability is the ability to formulate a long-term vision and translate it into an actionable strategic plan for the IT function.

Structure

SP is made up of the following Categories and CBBs. Maturity and Planning are described at both the CC and the CBB level.

AEmbedding IT Strategic Planning in the Organization

Create the environment within which IT strategic planning can be undertaken.

A1Resourcing: Allocate and coordinate roles, responsibilities, accountabilities, and resources for the IT strategic planning function.
A2Related Planning Processes: Align and integrate IT strategic planning with relevant IT and business planning processes, such as budget and operational planning, resource allocation, business planning, and performance measurements.
A3Stakeholder Management and Communication: Communicate all aspects of IT strategic planning with stakeholders, including key individuals in the IT function, and business unit heads. Manage stakeholder expectations, engagement, and sponsorship.

BStrategy Process

Outline the planning activities involved in formulating the IT strategic plan.

B1Alignment with Business: Mutually align and integrate IT and business strategic plans. Determine the IT strategy's contribution to business objectives. Influence the formation of the business strategy regarding the use of technology-enabled solutions to overcome business challenges.
B2IT Vision and Principles: Formulate the long-term scope and objectives for IT value generation (IT vision), and create high-level guidelines for deploying technology-enabled services (IT design principles).
B3Strategic Options: Identify challenges and opportunities in the IT function and other business units, where IT can enhance performance. Identify options for action, and evaluate, prioritize, and select these options based on their potential contribution to business value.
B4Plan Development: Translate the selected strategic options into an approved strategic plan, encompassing high-level IT goals, programmes, timeframes, manpower planning, skills development, and long-range technology planning. Outline programme ownership, business goals, business value/benefits, and an outline business case at the programme level.
B5Tracking and Evaluation: Assess the extent to which strategic targets are being achieved. Review all relevant programmes using qualitative and quantitative measures (such as satisfaction surveys, programme progress, and KPIs), and generate input for strategy reviews.

Overview

Goal

The Strategic Planning (SP) capability aims to specify ways in which technology can enable and influence the business strategy.

Objectives

An effective Strategic Planning (SP) capability aims to:

Outline key strategic issues and options for how technology can support and influence the business strategy.
Clarify the purpose and goals of IT activities, thus enabling more consistent decision-making.
Align the IT function and other business units on the strategic value of technology to amplify the creation of business value.
Translate strategy and decisions into a set of programmes calculated to deliver desired objectives.
Clearly communicate strategic goals and targets to all stakeholders.
Promote more effective and efficient technology deployments.

Value

The Strategic Planning (SP) capability clarifies the purpose and goals of using technology to optimize value generation.

Relevance

IT resources must be aligned with organizational needs if they are to play a strategic role in the organization's success¹. The more closely they are aligned, the more likely it is that the resultant IT-enabled business capabilities will be valuable, rare, inimitable, and non-substitutable (VRIN)², contributing to a sustainable competitive advantage for the organization¹³. However, many organizations fail at the first stage of resource alignment — the strategic planning stage⁴ 5.

By establishing an effective Strategic Planning (SP) capability, an organization can better enable and inform its overall business strategy, using a unifying vision for the IT function to identify suitable strategic options and programmes.

Scope

Definition

The Strategic Planning (SP) capability is the ability to formulate a long-term vision and translate it into an actionable strategic plan for the IT function.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for SP at each level of maturity.

2Basic

Practice
Allocate appropriately qualified IT personnel to key IT strategic planning duties.
Outcome
Resources are allocated for the most important planning duties.
Metric
Yes/No indicator regarding adequate resourcing of key IT strategic planning duties.
Practice
Hold formal and informal forums and discussions on IT strategic planning.
Outcome
Stakeholders have a forum in which they can influence the creation of the IT strategic plan.
Metric
Breadth of stakeholders involved in discussions held on IT strategic planning.
Practice
Outline key IT design principles, and show how they relate to the IT vision.
Outcome
Decisions within the IT function begin to follow common design principles that support the IT strategy.
Metric
Number of IT design principles traceable back to the IT vision.
Practice
Develop a high-level IT strategic plan and distribute it to key stakeholders.
Outcome
A documented IT strategy exists to guide how key domains are supported by the IT strategic plan.
Metric
Number of IT and business unit employees on the strategic plan circulation list.

3Intermediate

Practice
Distribute responsibility for IT strategic planning between the IT function and some other business units as appropriate.
Outcome
Broader participation will help ensure more effective strategic planning activities.
Metric
Representation of business units formally involved in IT strategic planning activities.
Practice
Ensure the IT budget includes an allocation to support IT strategic planning.
Outcome
IT strategic planning duties receive adequate resourcing and become more effective.
Metric
Percentage of IT resources formally assigned to IT strategic planning.
Practice
Prepare a high-level business case for each programme in the IT strategic plan.
Outcome
All major assumptions underpinning the IT strategy are recorded and validated.
Metric
Percentage of the programmes in the IT strategic plan for which a business case is developed.

4Advanced

Practice
Gather stakeholder input on IT strategic planning through regular and structured reviews.
Outcome
There is increased stakeholder ownership of the IT strategy.
Metric
Number of joint review meetings held between the IT function and all other business units.
Practice
Validate an IT vision statement jointly between the IT function and all other business units, with a core focus on enabling business capabilities.
Outcome
An understanding of what constitutes IT value is shared throughout the organization.
Metric
Representation of stakeholders from the IT function and other business units involved in the validation of the IT vision.
Practice
Revisit the IT strategy for comprehensiveness at agreed intervals or conditional triggers.
Outcome
Lessons learned can inform the alignment of IT strategic planning with other relevant processes.
Metrics
- Frequency of review meetings.
- Number of programme change requests approved.
- Number of programmes terminated before completion.

5Optimized

Practice
Ensure IT strategic planning remains an integral part of wider business strategic planning.
Outcome
There is minimal risk of misalignment between IT and business planning, or of missing opportunities for the strategic use of IT.
Metric
Number of business strategic goals addressed in the IT vision.
Practice
Ensure IT management and key stakeholders, including relevant business ecosystem partners, develop a single strategic plan.
Outcome
A single, integrated strategic plan replaces separate IT and business strategic plans.
Metric
Evidence of an integrated IT and business strategic plan.
Practice
Leverage the IT vision to drive the continual identification of new business opportunities to benefit from technology in meaningful ways.
Outcome
Potentially ‘game-changing’ business opportunities are identified and acted upon.
Metric
Number of potentially ‘game-changer’ strategies directly influenced by IT.
Practice
Align the strategic intent for leveraging technology across key suppliers and business partners.
Outcome
Key alliances and relationships can enhance how the IT strategy is formed.
Metric
Number of key alliances or relevant stakeholders in the business ecosystem who provide input to the IT strategy.

Reference

History

This capability was introduced in Revision 16 as a new critical capability.