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 stage45.
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.