Aligning your IT resources in the right structure is critical as:
- It ensures that the organization structure will support the delivery of the strategy.
- Resources can be easily developed or distributed to flex with changes in trends.
- It can eliminate gaps in service delivery to consistently meet or exceed stakeholder expectations.
- It increases the overall effectiveness of the IT team.
- It attracts and retains top IT talent.
Our Advice
Critical Insight
- Organizations that succeed in designing the right IT organizational structure do more than just moving boxes and lines on a page. They provide teams with clarity around how they will interact and collaborate to deliver on critical outcomes.
- IT organizations excelling today aren't waiting for the right person to join their IT organization. They design the right teams and develop their workforce.
- Organizations creating, driving, and succeeding in digital transformation don’t consider the organizational structure a stagnant place. They constantly refine it to evolve with the changing organization needs.
Impact and Result
Designing the right IT organization structure that:
- Sits upon an operating model foundation that dictates how IT should function.
- Ensures that functional work teams and reporting relationships are clearly defined.
- Establishes the right span of control to support the objectives of the teams and desired culture.
- Provides employees with clear ways of working to eliminate confusion and redundancy.
Member Testimonials
After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.
9.5/10
Overall Impact
$79,364
Average $ Saved
27
Average Days Saved
Client
Experience
Impact
$ Saved
Days Saved
Fidelity Investments Canada ULC
Workshop
10/10
$25,000
20
Denis is very knowledgeable and was great a guiding our thought process.
GBQ Partners
Guided Implementation
10/10
$34,250
5
Savings are difficult to measure on this one. I estimated based on work effort to get a plan. Allison gave us a huge jump in that regard. Given the... Read More
Goodwill of Central and Northern Arizona
Workshop
10/10
$34,250
50
This workshop was fantastic. This is the 2nd workshop we've done with Denis (several years apart) and he is excellent! He is so well informed, well... Read More
Waukesha County
Workshop
10/10
$102K
41
Best parts were the organized process to gather information, feedback, and input to generate the baseline results. A lot was accomplished in 4 days... Read More
Sleeman Breweries
Guided Implementation
10/10
N/A
N/A
Always great insights from Valence.
City of St. Louis
Guided Implementation
10/10
$68,500
50
Lucid USA, Inc.
Guided Implementation
10/10
N/A
5
Ucla Anderson School of Management
Guided Implementation
9/10
N/A
14
The best part was the discussions with Alison; her insight, relevant research, and practical examples related to my situation were the best. The... Read More
Enerflex Ltd.
Workshop
8/10
N/A
10
Best parts: - Strong facilitation - Good to think creatively and evaluate alternative ways to align the team - Helped set a vision for the futur... Read More
City of Eugene
Workshop
10/10
$9,590
20
Areez is an excellent facilitator, we were very happy with the process and the results (so far) of this workshop. It allows us to do a concentrated... Read More
GENESIS CANCER CARE UK LIMITED
Guided Implementation
10/10
N/A
10
Community Services Group, Inc.
Workshop
9/10
$34,250
35
Sidney was very good. He really made us think. He appropriately challenged our perspectives and was able to answer questions. He drove towards c... Read More
Christiana Care Health Services, Inc
Workshop
9/10
$274K
100
Best: Chuck's knowledge, impartiality, and facilitation. Worst: Out of Info Techs control: the hybrid virtual/in-person modality and inability to ... Read More
Town of Andover, MA
Guided Implementation
10/10
N/A
20
The material was extremely well thought out and provided a very structured framework for implementing my organizational redesign. Allison was extr... Read More
State Universities Retirement System Of Illinois
Guided Implementation
8/10
$2,740
5
A slightly different perspective on the role we are contemplating for strategy in the PMO. Will help inform a better job description.
KabaFusion
Guided Implementation
10/10
$13,700
10
ETE Reman /dba Engine & Transmission Exchange Inc.
Guided Implementation
10/10
$13,700
20
BEST: Meeting and working with Allison at LIVE 2023 WORST: Not being able to keep up with the pace of the project due to involvement in other doze... Read More
General Dynamics Mission Systems, Inc
Workshop
10/10
$137K
50
Best part: The interactive dialogue among the leadership team when discussing key areas throughout the workshop. Worst part: Defining the roles ... Read More
Corporation Of The City Of Victoria, The
Guided Implementation
10/10
$1M
120
If we get this right, this is going to save the City a lot of money and increase our efficiencies and reduce waste.
Nexus Water Group
Guided Implementation
10/10
$27,500
20
Allison was a pleasure to work with. She is very knowledgeable on the subject matter and really challenged us to think through our organizational s... Read More
County of Chesterfield, Virginia
Guided Implementation
10/10
$13,700
32
For initial call without prior introduction, we were able to leverage valuable reference materials that informed related topics of conversation wit... Read More
Correctional Service of Canada
Workshop
10/10
$100K
20
Excellent conversation. Very well facilitated. We walked away having made a few key decisions and having made a concrete plan for next steps. No wo... Read More
Mencap
Guided Implementation
9/10
$9,000
5
Excellent engagement with really helpful advice and the right level of challenge with understanding. Thanks Sidney
Hume City Council
Guided Implementation
10/10
$25,025
12
The ability to discuss views thoughts and approaches with the team and seek tangible input and advice without need to fully outsource has been real... Read More
Duquesne University
Workshop
10/10
$6,850
32
Great content, contextualized perfectly, and with expert faciliation. (Thank you, Chuck French! Also, thanks to Allison Straker for all the exper... Read More
Alabama Department of Environmental Management
Workshop
10/10
N/A
10
Hume City Council
Guided Implementation
10/10
$19,865
5
Feld Entertainment, Inc.
Guided Implementation
10/10
N/A
N/A
We're just getting started and I didn't do my homework well enough. However, Ross was able to give me excellent guidance on InfoTech tools and res... Read More
Arizona Department of Environmental Quality
Guided Implementation
10/10
$137K
50
The best part was Monica's systematic approach to assisting me in redesigning my organization for success. In my discussions with Monica and the to... Read More
Kitsap Credit Union
Workshop
10/10
$12,330
20
The facilitation was flexible and structured it to what we needed and it gave time spent more valuable. Had it in our head what we want to do, walk... Read More
IT Organizational Design
Improve performance through a fit-for-purpose organizational design.
This course makes up part of the People & Resources Certificate.
- Course Modules: 7
- Estimated Completion Time: 1.5 hours
- Featured Analysts:
- Brittany Lutes – Research Director
Workshop: Design Your IT Organization for the Future
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Provide Teams and Roles Purpose
The Purpose
- Organize the IT capabilities into clear and purposeful team structures and identify the necessary resources to deliver on each team objective.
Key Benefits Achieved
- Alignment of the IT structure to the IT operating model and future vision.
- Employee-defined purpose statements that clearly and concisely articulate what each functional team is intended to deliver on.
- Allocation of responsibility vs. accountability for each of the IT capabilities.
Activities
Outputs
Categorize your IT capabilities within your defined functional work units.
- Capabilities organized into functional groups.
Create a mandate statement for each work unit.
- Functional work unit mandates.
Define roles inside the work units and assign accountability and responsibility.
- Roles with clear responsibilities and accountabilities.
Assign roles with task-specific activities most critical to their success.
Module 2: Build the Organizational Chart
The Purpose
- Build on each of the necessary components to define the organizational chart to have a visual and clear reporting chart.
Key Benefits Achieved
- Identify where your talent gap exists and if resources can be developed or hired to fill that gap.
- Establish the desired span of control for your organization and the culture you are striving to achieve within the IT group.
- Create an easy-to-read reporting structure in the form of an organizational chart.
Activities
Outputs
Identify the talent gap to determine resource forecasting projections.
- Forecasting of resource demand vs. availability.
Estimate the cost to buy or build the necessary roles.
- Cost to grow or develop the IT organization.
Define the desired span of control.
- Desired span of control for each team.
Allocate resources to their reporting manager and finalize the organizational chart.
- Organizational chart with reporting relationships.
Module 3: Establish Clear Ways of Working
The Purpose
- To prevent only changing on paper, provide employees with clear flow diagrams on how they will deliver value daily.
Key Benefits Achieved
- Critical processes for each of the functional areas will be defined.
- The steps employees must take to deliver on those processes will be documented.
- Employees will successfully understand when they must communicate, collaborate, or educate with different roles or teams.
Activities
Outputs
Critical processes defined and documented against each functional work unit.
- Critical process flow diagrams for employees to follow.
Process flow diagrams to highlight communication, collaboration, and education across roles and teams.
Role-specific process flow diagrams.
Module 4: Communicate Changes and Obtain Buy-In
The Purpose
- Highlight the changes that will be taking place and present these changes in easy-to-read formats for employees and stakeholders alike.
Key Benefits Achieved
- Articulate the planned changes.
- Communicate the changes to those most impacted – employees – and provide them with clear next steps on how they should behave to deliver on those changes.
- Identify and mitigate critical risks before they happen.
Activities
Outputs
Define the transition plan.
- Transition plan
Create the change communication message.
- Change communication message
Create a standard set of FAQs.
- Standard FAQs
Identify and mitigate key org. design risks.
- Risk mitigation plan
Design Your IT Organization for the Future
Deliver on your most critical objectives with a strategically aligned IT structure.
Analyst Perspective
Establishing clear ways of working will allow the organizational structure to thrive.
For many organizations, designing the right IT structure usually begins with adjusting the organizational chart. Reimagining the lines and boxes that exist. However, this is a false attempt at an organizational redesign.
True organizational design explores the ways in which employees will be expected to work daily, delivering on their role-specific value. It is founded on an operating model that can consistently articulate how IT delivers on the strategic objectives of the organization. Furthermore, it provides employees with clarity on how they get their job done. From whom they collaborate with, to critical communication opportunities, to shared knowledge across teams and practices. Employees are empowered to deliver their best work and not second-guess their responsibilities.
Moreover, this process is increasingly more effective when employees are included. From creating their team's purpose statement to documenting the processes they lead or support, actively including employees in the organizational redesign will always enable a faster adoption of the organizational structure.
Brittany Lutes
Research Director, CIO Organization Transformation Practice
Info-Tech Research Group
Executive Summary
Your Challenge | Common Obstacles | Info-Tech's Approach |
The future state of the organization requires IT to restructure and realign its resources to:
|
Designing the right IT structure is difficult to achieve because often:
|
Designing the right IT organization can be achieved by:
|
Info-Tech Insight
Organizations that succeed in designing the right IT organizational structure do more than just moving boxes and lines on a page. They provide teams with clarity around how they will interact and collaborate to deliver on critical outcomes.
Your challenge
The IT organization must redesign and restructure in order to:
- Ensure alignment with the organization's direction and business model.
- Deliver on technology and digital strategies.
- Meet or exceed the changing expectations that define what IT is responsible for.
- Realize the importance of IT's role in delivering customer expectations.
- Elevate IT from an order-taker role to a strategic business partner role.
- Provide employees with clear ways of working.
- Attract, retain, and develop critical IT talent.
'A well-executed organizational design process creates more efficient workflows, a better customer experience, and higher profit margins.'
' MasterClass, 2022
Globally, IT decision makers find the greatest skills challenge keeping up with the accelerated pace of changing technology, with 48% agreeing this is a top challenge.
Source: Equinix, '2023 Global Tech Trends Survey,' 2023.
Common obstacles
These obstacles prevent organizations from achieving the right IT structure:
- Leaders focus on the organizational chart only, forgetting other critical elements of organizational design process.
- The organizational redesign makes changes to employee's roles and teams on paper but not in practice.
- Employees were not sought for their feedback or input during the process of designing the IT structure.
- Organizational redesign was used to solve an unrelated problem.
- Despite organizations wanting and willing to grow, there is insufficient talent readily available.
- No one is held accountable if the organizational redesign efforts fail.
Poor process and limited resources make organizational design difficult
51% of organizations are completely ineffective at organizational design.
Source: Cathie Enders, 'Organization Design: The Secret to Scaling for Growth,' 2022
3.5 million
Of the 3.5 million job postings examined, there were half as many qualified people to fill that vacancy.
Source: McKinsey, 'Technology Trends Outlook 2023,' 2023.
Info-Tech's approach
By adopting these best practices your organizational design efforts will always be successful:
Treat organizational design as a critical step in the transformation process 'without it the transformation is not complete.
Ensure that employees are given the tools and skills to effectively operate in this new structure ' and reinforce those behaviors when demonstrated.
Engage employees and other stakeholders regularly to prevent rework and capture informal but critical steps in the delivering process.
Eliminate ambiguity as often as possible by ensuring that the responsibilities and accountabilities are clearly defined at team and role levels.
The Info-Tech difference:
- Provides teams with a clear purpose on how they deliver value to the organization.
- Estimates the right number of resources required to achieve demand from the organization.
- Defines the team ways of working to establish communication, collaboration, and hand-offs.
- Continues to be adjusted and updated to enable the right structure.
Organizational design defined
If your IT strategy is your map, your IT organizational structure represents the optimal path to get there.
IT organizational design refers to the process of aligning the organization's structure, processes, metrics, and talent to the organization's strategic plan to drive efficiency and effectiveness.
Why is the right IT organizational design so critical to success? | ||
---|---|---|
Adaptability is at the core of staying competitive today | Structure is not just an organizational chart | Organizational design is a never-ending process |
Digital technology and information transparency are driving organizations to reorganize around customer responsiveness. To remain relevant and competitive, your organizational design must be forward-looking and ready to adapt to rapid pivots in technology or customer demand. | The design of your organization dictates how roles function within their teams. This is usually the most difficult part in organizational design. As a result, leaders are quick to skip or loosely define (Kathi Enderes, 2022). Structure supports strategy, but strategy also follows structure. | Organization design is not a one-time project but a continuous, dynamic process of organizational self-learning and continuous improvement. Landing on the right operating model will provide a solid foundation to build upon as the organization adapts to new challenges and opportunities. |
Phases of the IT organizational design journey defined
Organizational design is the process in which the structure is intentionally aligned to the strategy. It considers how people should be arranged to deliver on critical work.
Operating Model | Organizational Structure | Organizational Chart |
---|---|---|
The operating model provides an architectural blueprint of how IT capabilities are organized to deliver value. The placement of the capabilities can alter the culture, delivery of the strategic vision, governance model, and engagement of stakeholders. | The organizational structure is the chosen way of aligning the core processes to deliver. This can be strategic, or it can be ad hoc. We recommend you take a strategic approach unless ad hoc aligns to your culture and delivery method. | The capstone of this change initiative is an easy-to-read chart that visualizes the roles and reporting structure. Most organizations use this to depict reporting relationships and role vacancies. |
Foundational & Long-Lasting | Evolving & Ever-Fluctuating | |
Typically provides a direction for the organization for the next two to three years. | Typically provides clarity on how IT roles work for the duration of an objective. | Typically provides a reporting structure based on demand and desired span of control. |