Avoiding the Alignment Trap in Information Technology

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integration standards and eliminating legacy systems. Effectiveness will bring in projects completion in a timely manner. Another alternative is to focus on increasing IT alignment only which supports the organization’s business objectives. Another alternative is to focus on governance model.

It is recommended that organizations should focus on choosing an appropriate governance model. Effective IT governance aims to keep the IT environment as simple as possible. The recommendation is that organizations should consider the Duopoly governance model, where that senior management and IT leaders jointly make decisions on IT alignment which supports the organization’s business objectives. Duopoly also creates accountability. Organizations cannot build effectiveness unless they hold IT and the business accountable for delivering expected results on time and on budget. Accountability reflects organization changes where as executives can get information they need to measure IT progress and be held accountable for their progress. Starting and completing of IT projects on time, within budget and accomplishing the business objective will increase clients approval and bring in more assets, therefore resulting growth. IT technology when aligned with business objectives and monitored continually will develop a competitive advantage by providing growth opportunities, lower costs and increased revenues.

Risk Management Plan

There are many risks that come with trying to achieve IT enabled growth. One risk is that a company may get stuck in the process of making IT more efficient as the first stage of moving to IT enabled growth. So much emphasis may be placed in lowering IT costs that the importance of aligning IT with overall strategic goals may never start. Simplifying and eliminating redundant applications, consolidating IT infrastructure in fewer locations, and “rightsourcing” may take all the focus from the overall goal. The overall goal is to make IT more efficient and bring IT in line with overall strategic company goals.

This alignment is helped by changing the governance structure of IT projects. Companies should reach the point where IT is highly effective and highly aligned, where IT spending is less than average and growth is higher than average. At this point IT is enabling growth.

The risk of implementing a new governance model of IT can affect the organization. The goal is to agreed objectives for IT, good management controls and effective monitoring of performance to keep on track and avoid unexpected outcomes. Changing model to a structure that crosses traditional business lines means there will be a spreading out of accountability and the decision making process for IT into the hands of people that are not part of the traditional IT department. This can cause friction and discomfort in the short term. Both for the traditional IT department and those in other parts of the organization who may not want to be involved with the project side of IT. It will be challenging for the entire organization to implement this change, but it is a crucial step to creating cheaper, yet more capable, IT systems.

There is also a risk of complacency. There is a risk of not recognizing maintenance processes once accountability and efficiency has achieved. IT technology is rapidly changing and therefore it is not a one-time solution. Organization should develop ways to continually monitor the IT development to ensure that it is always aligned with the business strategy. IT should also update the system to keep up with the pace of technology and maintains its competitive advantage.