Chapter One:  Define the Goals.

Today’s Reality. 15

The Entire IT Spend -- Reducing Cost and Improving Bottom-Line Impact 17

The Strategy-to-Bottom-Line Value Chain. 19

Critical Success Factors. 22

Completing the Picture:  The New Information Economics Practices. 23

Summary of the Book. 28

Set the Goals:  Management Agenda. 29

Additional Reading for Chapter One. 30

Chapter Two:  Ask the Right Questions. 32

The Right Questions Focus On Affordability and Impact 33

Affordability Questions:  The Starting Point for the Right Actions. 35

Impact Questions: The Roadmap for the Right Actions. 37

Examples:  The Impact of Answering the Questions. 40

The Contexts for Management Questions are Planning and Budgeting Processes. 41

Why Ask Affordability and Impact Questions?. 42

Taking Action. 44

Chapter Summary. 45

Ask the Right Questions:  Management Agenda: 46

Additional Reading for Chapter Two. 46

Chapter Three:  Connect to the Bottom Line. 49

Bottom-Line Impact based on Cause-and-Effect 52

Cause-and-Effect is based on Management’s Intentions. 53

Principles of IT’s Bottom Line Impact 56

Bottom Line Principle 1: IT’s bottom-line impact is based on direct contribution to profitability. 57

Bottom-Line Principle 2: IT’s direct contribution to improved profitability is based on improving the company’s Operational and Strategic Effectiveness. 58

Bottom-Line Principle 3: IT improves Strategic and Operational Effectiveness by carrying out Management’s Strategic Intentions. 61

Summary and Additional Implications. 62

Implications for Project Business Cases. 62

Connections to Financial Performance. 62

Business Process and Operations:  A Big Opportunity. 63

The Connection to Performance Measurement 63

Connect to the Bottom Line - Management Agenda. 64

Chapter Three Additional Reading. 64

Chapter Four:  Understand Costs and Resources. 66

Introduction. 66

Origins of Portfolio Management 69

IT Portfolio Management in Prioritization. 70

Portfolios in New Information Economics (NIE) Practices. 72

Applying Portfolio Information in NIE Practices. 73

Portfolios and Asset Pools in the complete IT Spend. 74

Four  IT Portfolio Concepts. 75

Concept 1: Portfolio Management applies to the entire set of IT resources. 75

Concept 2: IT resources are divided into new investment and lights-on expenditures. 76

Concept 3: Lights-on expenditures are classified from an IT perspective, in portfolios related to technology management; 77

Concept 4: The New Investment portfolios are classified from a business perspective, similar to financial investments. 79

Portfolio Management Integrates the NIE Practices. 81

Practical Issues in applying Portfolio Management 82

Practical Problem in Lights-On:  Choosing the portfolios and line-items. 83

Practical Problem:  Working with portfolio information to make the Right Decisions. 84

Practical Problem – Maintenance of the Portfolio Information. 87

Summing Up Portfolios and Portfolio Management in Information Technology. 87

The use of Portfolios is more than Prioritization. 87

Using IT Portfolio Management to Control IT Costs. 88

Chapter Summary. 89

Portfolio Outcomes in NIE Practices. 89

Management Agenda. 90

Chapter Four Additional Reading. 91

Chapter Five: Focus on the Right Things. 93

The Goals and Principles for Right Decisions, Right Results. 94

Goal 1: Actionable, Commonly Understood Strategic Intentions. 94

Principle 1-1: Actionable Strategic Intentions. 96

Principle 1-2: Actions Tied to Strategy. 97

Principle 1-3: Common Understanding and Commitment 98

Goal 2: The Right Bottom-Line Results from IT. 100

Principle 2-1:  Business-Focused Outcomes. 100

Principle 2-2:  Impact-based Resource Allocation. 101

Goal 3: The Right Management Culture and Management Roles. 103

Principle 3-1: Role-based Culture Management: 104

Goal 4: Portfolios and Portfolio Management 105

Principle 4-1:  Impact / Portfolio-based Resource Management 106

Goal 5: Actions and Results. 107

Principle 5-1:  Responsive to Change: 107

Summary of Right Decisions, Right Results Goals and Principles. 108

Goals and Principles Applied to the Strategy-to-Bottom-Line Value Chain and NIE Practices. 109

Summing Up: The Eight Culture and Process Principles. 110

Management Agenda. 111

Chapter Five Additional Readings. 111

Chapter Six:  Adopt Effective Process to Produce Action.. 113

The Strategy-to-Bottom-Line Value Chain. 115

The Deliverables in the Strategy-to-Bottom-Line Value Chain. 117

Establishing the Connections with Management Processes. 120

Management Roles. 121

New Information Economics Practices. 124

New Information Economics Practices in the Value Chain. 125

NIE Practice 1: Strategic Demand/Supply Planning. 126

NIE Practice 2:  Innovation. 127

NIE Practice 3:  Prioritization. 128

NIE Practice 4:  Alignment 128

NIE Practice 5.  Performance Measurement 129

Summing Up New Information Economics Practices. 132

Summing up Chapter Six:  Adopt Effective Process to Produce Action. 133

Adopt Effective Process to Produce Action:  Management Agenda. 134

Chapter Six – Additional Reading. 135

Chapter Seven:  Tackle the Practical Problems. 137

A Practical Perspective. 137

The Practical Problems are fundamentally People. 138

Practical Problems Getting from Strategy-to-Bottom-Line Impact 139

Practical Problem 1: Process Disconnects. 140

Practical Problem 2: Legacy and Entitlement 143

Practical Problem 3: Management Roles. 144

Practical Problem 4: Company Processes. 148

Practical Problem 5: Management Expectations. 152

Practical Problem 6:  It ain’t broke. 153

Practical Problem 7:  Multiple Perspectives. 154

The Role of IT Impact Management 155

Management Agenda:  Practical Problems. 157

Chapter Eight:  Make the Right Decisions. 159

The Management Context for “Making the Right Decisions” 160

Elements of “Right Decisions” 161

The Use of Strategic Intentions. 163

The Use of Prioritization and Alignment Assessments. 164

Right Decisions:  Development and Enhancement 165

Right Decisions:  Lights-On Budgets. 167

Make the Right Decisions:  The Two New Information Economics Practices. 171

Right Decisions:  Who does the assessments?. 171

The  Prioritization Practice. 172

Process Overview.. 173

Result 175

Cultural Issues. 176

Using Factors other than Strategic Intentions. 177

Risk Assessment 178

Implications for Business Case and Project documentation. 179

Critical Success Factors:  Right Decisions, Right Results Principles in Prioritization. 179

Summary -- Prioritization Practice. 181

Alignment Practice. 182

Establishing the Portfolios and Costs for Alignment 183

Strategic Alignment: 184

Internal IT Alignment: 185

Strategic and Internal Alignment Process Overview.. 185

Summary – Strategic and Internal Alignment 190

Functional Alignment 190

Make the Right Decisions with Prioritization and Alignment 192

Chapter Summary. 194

Make the Right Decisions:  Management Agenda. 196

Make the Right Decisions:  Additional Reading. 196

Chapter Nine:  Plan for the Right Results. 198

Two planning processes. 199

The business / IT planning disconnect 200

Connecting IT and Business Planning. 201

Connecting Planning to Mission and Right Decisions. 202

The Strategic Demand/Supply Planning Practice. 203

What does a Strategic Demand/Supply Plan Look Like ?. 203

Creating the Strategic Demand/Supply Plan. 209

The Demand/Supply planning processes. 212

Management Issues. 212

Process Overview.. 213

Result 216

Critical Success Factors:  Right Decisions, Right Results Principles in Strategic Demand/Supply Planning  217

Summary – Strategic Demand/Supply Planning. 219

Innovation Planning Practice. 219

Introduction. 219

Critical Success Factors:  Right Decisions, Right Results Principles in Innovation. 225

Summary – Innovation Practice. 226

Chapter Summary:  Plan for the Right Results. 226

Plan for the Right Results:  Management Agenda. 228

Additional Readings for Chapter Nine. 229

Chapter Ten:  Keep Score. 231

Management Issues. 233

Frameworks and process overview.. 234

Result 239

Critical Success Factors:  Right Decisions, Right Results Principles in Performance Measurement 240

Summary – Performance Measurement Practice. 242

Keep Score – Management Agenda. 243

Chapter Eleven:  Implement Right Decisions, Right Results. 245

Part One:  The Impact of Management Culture. 246

New Management Processes alone are not sufficient 247

Effect of Culture on Management Roles:  Involvement and Commitment 247

Management Culture Limits IT. 250

Part Two:  The Need for Culture Change. 250

Part Three:  Classification of Business/IT Culture. 252

Category One:  IT’s Business Role: Culture that defines IT’s business role and impact 252

Category Two:  Business & IT Relationship: Culture that defines the organizational relationships between business and IT. 255

Category Three: Business & IT Process: Culture that defines the way IT and business managers work together 256

Part Four:  Applying Culture Management Concepts. 259

One:  Assessing the as-is and to-be management culture. 259

Two:  Assessing the maturity level of the company’s management processes. 261

Three:  Changing managers’ experiences. 261

Summary to Part Four:  Concepts of Culture Management 263

Chapter 11 Additional Readings. 264

Implement Right Decisions, Right Results -- Management Agenda. 264

Chapter Twelve:  Chart the Path to Implementation.. 267

Introduction to the Business Value Maturity ModelÔ.. 269

What does the Business Value Maturity ModelÔ cover?. 271

Maturity Model Goals. 271

Requirement for Management Action. 273

Embedding NIE Practices into Management Processes. 275

Improving Management Process Connections. 276

Maturity Model Goals – Summary. 277

Using the Business Value Maturity Model 278

Using the Business Value Maturity ModelÔ for Assessment 279

Using the Business Value Maturity ModelÔ for Process Improvement 280

Summary:  The Business Value Maturity Model 281

Chapter Twelve Appendix I:  Details of the Business Value Maturity Model 282

1.  Business Value Maturity Model – Process Area Descriptions. 283

2.  Business Value Maturity Model - Critical Success Factors. 284

3.  Business Value Maturity Model – Keys to Maturity. 285

Chapter Appendix II.  The Development of Maturity Models. 287

Chapter Thirteen:  Define What’s Next. 291

A Management Process Roadmap. 291

Roadmap based on IT Performance. 292

Roadmap based on Business Value Maturity ModelTM. 295

A Roadmap based on Practical Problems. 299

A Corporate Governance and Process Perspective to What’s Next 301

An IT Impact Management Program to implement a Roadmap. 304

A Program.. 304

Conclusion to Chapter 14 and Right Decisions, Right Results. 308

Chapter Fourteen: Answer the So What Question.. 314

Why This Trip Is Necessary. 314

First, Hit  the IT Improvement Zone. 315

The "So What" for The Company. 316

The "So What" for the CEO.. 316

The "So What" for CFO.. 317

The "So What" for Line of Business Management 317

The "So What" for IT Management 319

The "What's Next" for The Business. 319

Appendix A:  Implementation Issues. 321

One:  The Role of Enterprise Architecture in Right Decisions, Right Results. 322

Two:  Management Team Roles in Right Decisions, Right Results. 327

The challenge of multiple lines of business and global businesses. 330

Three:  The Development of Strategic Intentions, with Examples. 333

Developing Strategic Intentions. 334

A workshop approach. 335

Example Strategic Intentions. 336

Four:  Applying Strategic Intentions in Prioritization. 341

Appendix B:  The CFO Role in Right Decisions, Right Results. 344

Appendix C:  The Details of the Business Value Maturity Model 347

Strategic Demand / Supply Planning. 349

Innovation Planning. 351

Prioritization. 353

Alignment 357

Performance Measurement 359