IT Integration & Security - Strategy & Planning

• Infrastructure
• Software Solutions
• Strategy / Planning

IT Consulting

There is no shortage of research, advice, tools and recommendations concerning IT/business alignment. A Google search will surface more than 12 million results. Yet, CIO Magazine's "The STATE of the CIO '07" revealed that alignment remains the most common top-five priority of IT leaders. So why does alignment continue to elude IT organizations? One reason may be, despite all the self-examination, most organizations do not completely grasp what IT/business alignment really means.

IT/Business Alignment Defined-Alignment has become an overused buzzword. Companies tout business and IT alignment as key to success in managing IT effectively. Failing to achieve strong alignment has been blamed for the demise of many IT leaders.

But what is IT/business alignment?

Simply put, when a company arranges, coordinates and organizes its capabilities around an agreed vision and set of priorities, it has successfully achieved alignment. Specifically for the IT organization, successful alignment means that IT is actively and directly enabling business objectives; following the same game plan as the other business functions. Ideal IT/business alignment results in a complete lack of distinction between business and IT investments and initiatives. They are the same.

At its heart, IT/business alignment is about expectations management. When a company sets business objectives, the expectation is that all functions, including IT, focus sufficient attention and resources on achieving them. In that sense, alignment applies to all business leaders. For the IT leader, it is particularly relevant due to IT's prevalence throughout all enterprise business capabilities.

Why is IT/business alignment important?

Alignment is a highly powerful concept. When a company rallies all of its resources to work together towards a common goal, it functions as a seamless unit, of one mind, optimizing its ability to perform in the marketplace. For the IT organization, alignment with the business means that the IT organization is deploying its resources and capabilities to best meet top business priorities.

The importance of IT/business alignment is easiest to see when it is missing; when IT resources appear focused on initiatives out-of-sync with business objectives. For example, if a business has a strategy to grow share but IT resources are focused on process efficiency and cost reduction, there is misalignment. When IT is leading the enterprise initiative to improve information security protection, but business heads are not engaged, there is misalignment. The absence of alignment results in misdirected resources and reduced overall value to the company shareholders.

It is IT's pervasiveness that is the source of alignment difficulties. Each business leader develops plans to optimize his or her function's contribution to business objectives. These plans invariably require IT resources and know-how. But, IT is a finite, scarce resource. The IT leader needs to find ways to manage competing demands while demonstrating that s/he is marshaling the resources of IT to achieve overall company objectives. IT leaders who fail to navigate through alignment challenges will encounter growing frustration from his/her peers and C-level executives, ultimately affecting their career.