Issuu on Google+

© 2001 Giga Information Group Copyright and Material Usage Guidelines

December 12, 2001

Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles Marla Ramirez

Giga Position Today companies are running global businesses or trying to make their businesses more global. In response, IT organizations are expected to become more global. Giga has identified two distinct types of global IT organizations: (1) centralized, in which the global CIO has direct authority over all IT resources, and (2) decentralized, in which IT resources report to local or regional business management or a global business unit and have “dotted-line” reporting to a global CIO. The different levels of CIO authority and resources require different leadership styles. In the centralized model, the global CIO retains ultimate accountability over strategy and budgets, project portfolio, staff, major suppliers and senior executive reporting. The CIO’s leadership team consists of three or four regional CIOs over whom he/she has direct control. This CIO should make the most of his/her authority and accountability by adopting an assertive leadership style and setting a global management agenda for the year, establishing a common way to justify, prioritize and approve projects and put in place a single budget structure with identical definitions and similar spending rights. In the decentralized model, the global CIO has no direct responsibility over the sometimes numerous local CIOs and their organizations. Here, the only smart way to lead is through a facilitated leadership style, with the CIO creating forums where group CIOs can come together to share best practices, debate issues and agree on common approaches. In areas where the global CIO has a clear mandate (the most commonly observed are intranet, architecture and standards, new technology research, telecommunications, worldwide deployments) he/she must respect the autonomy and accountability of the local CIOs and seek buy-in into the corporate proposals. In the decentralized global IT organization, the global CIO plays a facilitation role to identify and crystallize synergies across very autonomous and heterogeneous IT groups. CIOs in both configurations should run facilitated meetings with regional or local CIOs, as well as sponsor global working groups on different IT issues. They must also define a common process for running global projects that include the collection of local/regional requirements by a global design team.

Proof/Notes Giga has worked with and observed a number of global CIOs of European-headquartered multinational corporations that are building global IT organizations. The analysis and recommendations in this Planning Assumption are based on Giga involvement with several of these global companies, which are all leaders in their respective markets: global banking, electronics, food and apparel, dairy and cosmetics. There are several drivers behind the globalization of IT organizations, including the following: 1.

Businesses are becoming more global.

2.

Mergers and acquisitions (M&As) have created instant global organizations.

Planning Assumption ♦ Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles RPA-122001-00012 © 2001 Giga Information Group All rights reserved. Reproduction or redistribution in any form without the prior permission of Giga Information Group is expressly prohibited. This information is provided on an “as is” basis and without express or implied warranties. Although this information is believed to be accurate at the time of publication, Giga Information Group cannot and does not warrant the accuracy, completeness or suitability of this information or that the information is correct.


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

3.

The Web makes products, services and customers global.

4.

Businesses need to contain IT costs. One global IT organization has more potential to deliver economies of scale, avoid duplication, manage suppliers, build competence and share knowledge across the world than an aggregation of regional or national IT units.

5.

There is a trend toward corporate shared services as a way to “force” synergies on very autonomous business units that do little sharing on their own. IT is one of these “shared services.” (In some European-headquartered global organizations, the development of shared services is accompanied by the emergence of a strong COO who can pull rank with powerful country or business unit managers).

Senior business executives believe that globalizing IT organizations can deliver the following three main benefits: 1.

Global technology solutions with worldwide support

2.

IT cost containment

3.

Operational synergies and innovation through collaboration and knowledge sharing.

In a global organization, IT staff may also benefit from enhanced career development opportunities, with or without a requirement for geographic mobility. Comparison of the Two Global IT Organizational Models The centralized global IT organization is characterized by the hard line reporting of all IT managers into the global CIO (see Figure 1).

Centralized Global IT Organization

Executive Management CEO or CFO

Global CIO

Regional CIO Americas

Regional CIO Europe, Middle East, Africa

Regional CIO Asia Pacific

Source: Giga Information Group

Figure 1

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 2 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

Advantages of a Centralized Model The centralized model can more easily deliver on the benefits of globalization because of the direct control over all IT resources. The global CIO of a centralized IT organization is an executive leader who: •=

Reports into global executive management (CEO or CFO)

•=

Has direct report responsibility over all IT staff

•=

Sets objectives for his/her direct reports based on the IT strategy, empowers and coaches them

•=

Retains ultimate accountability over IT budgets and operations, project portfolio, major suppliers and senior management reporting

•=

Identifies pockets of best practices across the world and works to ensure their worldwide adoption

The typical leadership team composition and other global working groups in a centralized model consists of a global CIO and regional CIOs (in Europe often titled “regional IS director”) or a global CIO and business unit CIOs. There is a lean corporate IT staff to build and manage budgets, provide human resource (HR) support, manage global suppliers, establish technology standards and architecture, run global projects and solve high-visibility technical problems. Corporate senior technical managers facilitate global architecture and infrastructure teams. Global project managers lead global project teams. These project managers are often part of the corporate IT staff but they can also be part of any of the regions. The decentralized global IT organization is characterized by a lack of regional consolidation and solid-line reporting of all local CIOs into their respective country or business unit management (see Figure 2).

Decentralized Global IT Organization CEO

Business Unit Mgr

Business Unit Mgr

Business Unit Mgr

Business Unit Mgr

Business Unit Mgr

Business Unit Mgr

US

Canada

UK

France

Singapore

Australia

CIO

CIO

CIO

CIO

CIO

CIO

Global CIO

Source: Giga Information Group

Figure 2

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 3 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

Advantages of a Decentralized Model The decentralized model is more suited for businesses that require strong local or regional autonomy or have very heterogeneous business units. This model makes it harder for the CIO to deliver on the potential benefits of IT globalization. The global CIO of a decentralized IT organization is a skilled facilitator leader who: •=

Reports into senior executive management (CEO or CFO)

•=

Has no direct responsibility over IT staff, only a dotted-line reporting relationship (with the exception of a small corporate IT team)

•=

Has a carefully scoped mandate to build a group approach in certain areas of IT: standards and security, telecommunications, global directory, global strategic projects

•=

Sponsors group CIO meetings and other initiatives to build a common approach in these areas or to identify and catalyze other synergies across IT units

The typical leadership team and other global working groups in a decentralized global IT organization is composed of the following: •=

A global CIO who has a small corporate IT staff to support the areas covered by the CIO’s mandate.

•=

A constellation of CIOs of different business units or countries/regions report to business management. They can number up to a few dozen. Each CIO has a different power base and influence level.

•=

A few corporate-sponsored working groups consisting of any mix of group CIOs or senior IT managers in the units, collaborating on areas of common interest.

Organizational Characteristics Examining the characteristics of very centralized and very decentralized global IT organizations makes it easier to contrast their differences. However, real life is seldom black or white, and we do find hybrid configurations. The most frequent hybrid is a decentralized model with a number of IT shared services or competence centers run by corporate IT in strategic locations. But in order to simplify the analysis, we will continue to examine the two “pure” models. The main difference between the centralized and decentralized models is the level of consolidation of IT management and reporting. Centralized IT organizations have already consolidated the reporting of local or business unit IT into regional reporting. A smaller and more agile leadership team can make IT-related decisions for the entire company and move more swiftly to implement them. Decentralized IT organizations, on the other hand, have a number of unit or local CIOs with no consolidated reporting levels and big differences in the relative importance and IT needs of the businesses or operating units they serve (see Table 1, click here for Table 1). Issues and Barriers Faced by CIOs The main issues for global CIOs of centralized IT organizations are: the cohesiveness of the IT global leadership team and the individual competence of its members, the level of customization required by business unit or regional business management and the real-life difficulty of embedding consistent practices worldwide despite a favorable governance structure. For global CIOs of decentralized IT organizations, the barriers to effective globalization of IT stem from the potentially conflicting business-unit driven agendas and needs of all the local CIOs, the lack of centralized governance of budgets and staff and the organizational

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 4 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

diversity across business or local units (see Table 2). Table 2: Issues and Barriers Faced by CIOs Centralized Global IT Organization

Decentralized Global IT Organization

The degree of commitment of each regional CIO to the global strategy and management agenda

Potentially competing agendas of the different unit CIOs who represent the priorities of their business management; these priorities are not necessarily aligned across business units or countries Strong organizational heterogeneity due to the affiliation with different business units or local operating units Heterogeneous corporate cultures across units

The leadership ability of each regional CIO

The degree of customization sought by business unit or regional business management in their technology solutions and services The degree of organizational heterogeneity or differences in corporate culture left over from preglobalization and/or pre-M&A days The real-life difficulty of embedding consistent managerial and technical practices worldwide. The degree of technological diversity (technology platforms, infrastructure) The degree of localization vs. the degree of commonality in the development of new IT solutions

Technological diversity (platforms, infrastructure)

Difficulty to implement a global IT strategy Inability to set a corporate IT budget and manage a corporate project portfolio Inability to allocate IT resources across the world or to manage suppliers globally Inability to centralize the production of IT executive reports since each IT unit reports to its own business or local management Few incentives to establish or leverage competence centers anywhere in the world Few levers to foster consistent practices worldwide Difficulty to provide staff with interregional career development opportunities

Source: Giga Information Group

Risks The two types of CIOs face different risks in their jobs. We’ve observed two main risks for the CIOs of centralized organizations: (1) not going far enough in the pursuit of technical, managerial and organizational standardization, not fully leveraging their authority and thereby not achieving the full benefits of globalization, and (2) not being tightly aligned with local and regional business management, with a perceived lack of proactivity and responsiveness in meeting needs. The two main risks for the corporate CIOs of decentralized organizations we’ve observed include: (1) being too directive in their leadership style by pushing unilateral corporate strategy and decisions, which generates unnecessary push-back from unit CIOs due to the lack of open debate and (2) not being consistent, innovative or bold enough in the creation of frequent forums where all the unit CIOs can come together to work through issues. Critical Success Factors for CIOs Some challenges are shared across the centralized and the decentralized models, including the following:

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 5 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

•=

Keeping corporate headcount very light, hiring only outstanding, seasoned and multilingual professionals with excellent interpersonal and facilitation skills. Managing the team tightly is important, since most of what they do has worldwide impact.

•=

Setting aside a significant travel and meeting budget for face-to-face interaction and agreement on the mix and role of preferred virtual collaboration media (e.g., e-mail, conference calls, videoconferences, electronic bulletin boards or knowledge bases, online chat, intranet repositories).

•=

Making sure all global projects have the following characteristics: ─

A global budget with clear contribution from local units or, alternatively, clearly agreed local budgets

A global project manager with clear business unit or regional/local unit face-offs

Cross-regional design and development teams

Clear process to collect local/regional requirements, validate choices

Clear resource allocation and accountability for development and rollout

Chaos results when these rules are not applied to global projects. For example, a European-headquartered multinational corporation is deploying a corporate-driven enterprise resource planning (ERP) solution worldwide, but budgets and resources have not been clearly agreed up front with the numerous local business and manufacturing units. The project is facing significant delays until the mess can be sorted. Local CIOs are unhappy with the whole process. Critical Success Factors for the Corporate CIOs in the Centralized Model Global CIOs of centralized IT organizations will succeed if they take advantage of the centralized governance structure to achieve the full benefits of globalization. The following critical success factors are grouped by the following themes: regional IT directors, corporate staff, working with the business and senior management and the broader IT organization. Managing a team of regional IT directors: •=

Set clear objectives for the regional CIOs and corporate staff, empower and coach them, implement consistent and formalized monthly reporting.

•=

Organize frequent working sessions of the global leadership team to build intimacy and trust among the regional IT directors and between them and corporate staff. Quarterly face-to-face meetings and biweekly conference calls allow them to work through issues jointly and review progress on the shared management agenda.

•=

Jointly, with your leadership team of regional CIOs, define a global IT management agenda for the year consisting of managerial and technical tracks:

•=

The managerial track seeks to achieve global collaboration and consistency in all areas of IT management, including the yearly IT plan, the regional steering committees, project management, balanced scorecard, organizational issues, core IT process improvement, executive reporting and all HR-related issues.

The technical track addresses global projects, architecture, technology standards, new technologies and innovation, technical efficiencies, security and disaster recovery procedures. This track is led by the corporate senior technical manager and is characterized by the establishment of interregional working groups on these subjects.

Put in place a single budget structure with consistent line-item definitions, similar spending

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 6 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

approval process and common tracking of actuals and forecasts. Setting up a corporate staff: Fill the following corporate positions either as full-time equivalents (FTE) or in certain cases as half-FTEs negotiated with other corporate functions (HR, finance) or with any of the regions (particularly where corporate IT is headquartered): •=

IT financial controller to help build and manage a global and regional budgets.

•=

Project managers to lead global projects such as intranet, ERP, data warehouse (unless highly qualified resources exist in the regions, but this is seldom the case).

•=

Architects to facilitate a common architecture definition and technical directors to oversee global infrastructure and act as “hit men” in cases of high-visibility technical problems (e.g., mail or network downtime at corporate headquarters) or noncompliance with technical standards.

•=

Supplier management to establish the basis for global supplier management. Many global vendors have not aligned their pricing worldwide. The supplier manager role can achieve considerable savings simply by comparing bids from one country to another.

•=

HR management to support local HR in recruiting, career paths and development.

•=

Optionally, strategy facilitation to prepare and facilitate steering committee meetings, solicit bottom-up strategy inputs from the regions, document strategy outputs.

Working with business and senior management: •=

Visit the regions frequently (more than 50 percent of the time), bond with regional business management.

•=

Establish a standard and agreed way to justify, prioritize and approve projects worldwide (a project initiation process worldwide); use the same process and templates for request for proposal (RFP), business cases, prioritization and selection criteria. Establish a single global review body or steering committee for large projects. This is difficult but achievable. One CIO discovered large duplicated projects across the regions thanks to the existence of a global project portfolio governance (see IdeaByte, Project Initiation Process: A Guide to Getting Started, Margo Visitacion).

•=

Establish effective regional IT steering committees that are managed consistently across regions. This includes planning the general work schedule of the steering committee during the year and around obvious and ad hoc milestones, such as IT budget planning, agreeing on the next year’s project portfolio, quarterly reviews of the project portfolio, planning major technology deployments, etc. Particularly, as steering committees are initiated, it is very useful to have similar meeting agendas across the regions. The business will respect IT all the more for this consistency.

•=

Consolidate regional reporting into a global IT activity report and carefully stage manage that within the global executive team (if necessary, get consulting help to apply best practices in senior executive reporting).

Globalizing the broader IT organization: •=

Sponsor the establishment of competence centers in high-impact areas. Competence centers can be of two types: (1) operational, where critical activity is entrusted or “outsourced” to a particular region or set of regional resources (e.g., Web development) and (2) knowledge based, with the main objective of achieving consistency and sharing best practices in IT methods or technologies (e.g., project management).

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 7 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

•=

Cross-fertilize across regions by introducing interregional career paths for senior IT managers and high-potential staff. Move people across as key positions open up or unforeseen challenges call for special competencies. Plan successions for key jobs globally.

•=

Hire consulting help if a change program is required to embed consistent practices worldwide.

Critical Success Factors for Global CIOs in the Decentralized Model •=

Global CIOs of decentralized IT organizations will succeed if they adopt a facilitated leadership style, take a more incremental approach that builds on their wins and focus on relationship building with both unit CIOs and senior business management.

•=

Adopt a facilitated leadership style for the global CIO, in particular, but also for all corporate IT staff. Avoid the common mistake of adopting the executive leadership style. Facilitated leadership is the preferred leadership style when there is no direct or reporting control over people. This leadership style is characterized by the seeking of true win/win for all parties through conflict resolution, building teams with shared objectives and common approaches, open and honest debate of issues and consensus building instead of parliamentary voting as the preferred group decisionmaking model. This is the best way to build trust with the unit CIOs (see Research Digest, Focus on Facilitation for High-Level Decision-Making, Marla Ramirez).

•=

Create regular and frequent value-added discussion and decision forums to identify possible synergies and address shared problems. Identify barriers to adoption of group solutions and seek to work through them, respectful of local or business unit constraints and priorities.

•=

Define principles of corporate IT strategic direction and key initiatives but do your best to elaborate the strategy with the full participation of all group CIOs. The true test of success in this area is whether the strategy is implemented, that is, whether it’s reflected in their plans and budgets.

•=

Sponsor only high-impact, high-visibility initiatives within the scope of your mandate (such as worldwide rollouts, articulating a group IT strategy). An incremental approach of successful delivery of some initiatives is preferable before trying to expand the scope. This builds credibility with both business management and group CIOs. Sponsor the creation of working groups on different subjects of interest to all IT units (technology standards, security procedures, etc.).

•=

Ensure buy-in from the most powerful unit or local CIOs into IT strategic direction and corporatesponsored initiatives. The corporate CIO should cultivate this network outside the general working sessions, keeping them abreast of strategy and genuinely soliciting their input and feedback to help shape the approach. Depending on the number, the CIO can work with them on a one-on-one basis or as a “core team.”

•=

Respect the autonomy and accountability of the different unit or local CIOs and appreciate their competence and experience. Attempts to steamroll them into anything will be met with resentment and resistance.

•=

If the budget allows, host special value-added events for unit CIOs such as new technology awareness and management development seminars.

•=

Lobby business unit and country management to create awareness of the potential for IT synergies and the ensuing benefits. This will create an environment in which unit CIOs will have less difficulty collaborating with your team or other IT teams.

•=

Use consulting and facilitation help to “get it right” as the approach is deployed, some mistakes are irretrievable. A seasoned consultant, particularly one trained in change management, can help develop the right approach, design and run the right events and provide valuable communication support.

•=

Over time, after successful delivery of some key initiatives and having built some trust both within

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 8 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

senior business management and group, CIOs:

•=

Should seek to create a group IT management agenda with a set of agreed strategic statements, initiatives and resource commitments that all group CIOs can buy into and work toward.

Periodically test the readiness of executive management to centralize IT resources and reporting under the authority of the corporate CIO.

Do all of the above in a sincere spirit of service to the operating unit CIOs and any mistakes on the corporate CIO’s part will be quickly forgiven

Alternative View N/A

Findings In the centralized model, global CIOs face two main risks: (1) not achieving the full benefits of globalization by not going far enough in the pursuit of technical, managerial and organizational consistency and (2) not being responsive enough to the needs of local and regional business management. In the decentralized model, global CIOs face two main risks: (1) being too directive in their leadership style, which generates unnecessary push-back from unit CIOs, and (2) not providing frequent and regular forums where all the unit CIOs can come together to work through issues.

Recommendations There are some common approaches for success in both models, including: •=

Keep corporate headcount very light, hire only outstanding, seasoned and multilingual professionals.

•=

Set aside a significant travel and meeting budget for face-to-face interaction and agreement on the mix and role of preferred virtual collaboration media.

•=

Make sure all global projects have: ─

A global budget with clear contribution from local units or, alternatively, clearly agreed local budgets

A global project manager with clear business unit or regional/local unit face-offs

A cross-regional design and development team

A clear process to collect local/regional requirements, validate choices, clear resourcing and accountabilities for development and rollout

Global CIOs in the centralized model should take advantage of the centralized governance structure to achieve the full benefits of globalization and also consider the following: •=

Set clear objectives for the regional CIOs with full accountability and appropriate coaching; bring them together face-to-face at least quarterly.

•=

Define a global IT management agenda for the year consisting of two tracks: managerial and technical.

•=

Put in place a single budget structure with consistent line-item definitions, similar spending

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 9 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

approval process and common tracking of actuals and forecasts. •=

Build a small corporate team of multilingual heavyweights in key functions, e.g., financial controller, project managers, senior technical manager, supplier manager, HR manager.

•=

Visit the regions frequently (more than 50 percent of the time) and build strong relationships with regional business management.

•=

Establish a standard and agreed way to justify, prioritize and approve projects worldwide (project initiation process). Have a global review body or steering committee to approve global projects and avoid duplication.

•=

Establish effective regional IT steering committees that are managed consistently across regions.

•=

Consolidate regional reporting into a global IT activity report for the global business executive team.

•=

Sponsor the establishment of either operational or knowledge-based competence centers in highimpact areas.

•=

Introduce inter-regional career paths for senior IT managers and high-potential staff.

Global CIOs in the decentralized model should take heed of the following recommendations: •=

Adopt a facilitated leadership style and focus on relationship building with both unit CIOs and senior business management.

•=

Avoid the common mistake of adopting the executive leadership style. Facilitated leadership is the preferred leadership style when there is no direct or reporting control over people. This leadership style is characterized by the seeking of true win/win for all parties and builds consensus.

•=

Create regular and frequent value-added discussion and decision forums to identify possible synergies and shared problems. Be respectful of local or business-unit constraints and priorities.

•=

Elaborate the IT strategy with the full participation of all group CIOs. The process will be longer but you’ll be able to implement the strategy.

•=

Sponsor high-impact, high-visibility initiatives within the scope of your mandate. Deliver those successfully before trying to expand the scope. Sponsor the creation of working groups on different areas of interest to all IT units (technology standards, security procedures, etc.).

•=

Ensure buy-in from the most powerful unit or local CIOs into IT strategic direction and corporatesponsored initiatives. Lead them as a “core team.”

•=

If your budget allows, host special value-added events for unit CIOs such as new technology awareness and management development seminars.

•=

Lobby business unit and country management to create awareness of the potential for IT synergies and the ensuing benefits to create a more favorable environment for the unit CIOs.

•=

Use consulting and facilitation help to “get it right” as you deploy your approach.

•=

Once trust and credibility has been built, test the readiness of executive management to centralize IT resources and reporting under the authority of the corporate CIO.

References Related Giga Research

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 10 of 11


Building the Global IT Organization: Two Models, Two Approaches, Two CIO Leadership Styles ♦ Marla Ramirez

Planning Assumptions IT Organizational Design: Part 1 — Choosing an Organizational Model, Marc Cecere IT Organizational Models in Europe, Marla Ramirez Giga’s Framework for Project Selection and Prioritization, Margo Visitacion IdeaBytes Determining the Business Value of Global IT Standardization, Gene Leganza Funding Global Projects, Margo Visitacion Setting Up a Successful ‘Global’ Technology Standards Board, Marla Ramirez Implementing a Standard Architecture for Global IT Requires Executive Support, Gene Leganza IT Personnel in Remote Offices, Marc Cecere Table 1: Organizational Characteristics of Global IT Organizations Centralized Global IT Organization

Decentralized Global IT Organization

Usually consists of three to four regions: the Americas, Europe/Middle East/Africa (EMEA) and Asia Pacific Generally a previous centralization wave has yielded regional consolidation of IT units with consolidated reporting into a regional CIO or regional IT director The small leadership team consisting of the global and regional CIOs can agree on IT strategy and management agenda and work together toward its implementation There is some disparity across regions in organizational structure and technology platforms

Large corporations can have a large number of unit CIOs (Giga counted as many as 50 in one organization) There is usually no regional consolidation of IT units or IT reporting IT staff reports into business unit or country/regional management

There is wide disparity between the respective IT organizations in size, operational footprint, competence levels, corporate culture, management practices

In this organizational model the governance makes it possible to:

•=

Set a global IT strategy and budget

•=

Manage corporate project and supplier portfolios

•=

Allocate IT resources across the world as part of career development or in response to dayto-day skills requirements

•=

Establish or leverage competence centers anywhere in the world for design, development, support or operations

•=

Centralize the production of IT executive reports

•=

Foster consistent practices worldwide

•=

Provide staff with inter-regional career development opportunities

Source: Giga Information Group

Planning Assumption ♦ RPA-122001-00012 ♦ www.gigaweb.com © 2001 Giga Information Group Page 11 of 11


Test