First Step in IT Transformation? Unwind the Past

Guest blog by Rich Richardson, CIO at Spirit Aerosystems.

Throughout my career I have been involved in many IT transformations. More and more, I am asked how I organize and mobilize around a business technology transformation.

So I recently took a moment to think back through three transformation projects, the key success factors and what I learned, so that I could provide some helpful answers when asked.

I believe that, over the years, systems have burdened business operations through something I call “evolved complexity”. Basically, after installing a base set of functionality in an operation or function we continue to amend the process with workflows, process changes, new data elements and new tools to increase the information collected over time. At the time these new features are installed, the old and outdated processes should be removed or simplified, but usually are not. As this bad practice is repeated over and over again, the complexity builds, and the idea of a fix for the problem becomes too monumental to pursue.

Ignored IT Complexity Hinders Progress

Evolved complexity makes it extremely difficult for businesses to streamline processes and improve their operations. The legacy of past implementations and configurations complicates or can even prevent the adoption of new systems and functionality. Simply adding new layers of complexity or manual workarounds will only make the situation worse.

For a transformation to be successful, it is critical to start by unwinding as much of this evolved complexity as is possible. And as IT executives, our role is to lead this process.

Here are the steps I have taken to unwind complexity at the start of an IT transformation. First, you must identify where the pain lies.

Uncovering IT Complexity

1. Investigate and document the largest pain points/complaints of those who generate and consume information
   
   
2. Note any manual efforts utilized to create data and reports
   
   
3. Assess all of the company’s data for consistency (master files, duplication, etc.)
   
   
4. Inventory key applications looking at these factors:
   
   • Are there redundancies in capabilities?
   • Which systems are underutilized?
   • Which systems have low standards adherence

Once you have these basics documented, socialize the story. You don’t need 100% completeness before you begin-- your business colleagues will confirm the reality if you paint the basic picture. As you communicate this story, keep it simple and use the information and data points you have collected using the steps above to articulate the need, and the challenges that lay ahead.

Then, ask your fellow executives and the business stakeholders, “is this the way we want to operate?”

The Steps for Unwinding IT Complexity

Once the answer comes back as a resounding “No!” the work begins. How do you unwind all of the complexity baked into systems over the years and get back to basics? This is how I approach it.

1. Select the optimal starting point. Usually the best place to start is the major gaps in functionality, low utilization or a lot of necessary external data manipulation. Take the time to identify the right starting point and expand from there.

2. Empower your IT workforce. If you have hired qualified professionals, they possess the skills and experience to manage this initiative under your guidance. (see this earlier blog I wrote on transforming your IT team). Be sure to seek their inputs during your initial investigation.

3. Create your plan of attack. Begin by energizing your IT team and business partners around the effort. Break the effort up into small pieces that can demonstrate progress on a daily or weekly basis.

4. In some companies, IT can take the lead, while in others, the business drives. Be open and flexible at the start as to what arrangement will work best in your situation. But once you decide exactly which roles IT and the business will play, make that very clear to everyone, including your specific role as CIO. In all cases ensure IT is responsible for the overall technology strategy needed to meet the business outcomes.

5. Working with the business, select technology standards that focus on consistent sources of data. I apply a strategy that places all information in one consistent set of repositories (CRM, PLM, MES, ERP), with consistent document management and then expand the toolset only when it improves efficiency or the information the business operates on.

6. Communicate, communicate, communicate! You can’t do this enough. (I still am not the great at this, but I am committed to improving).

7. Open your books to the business. Be transparent about your costs and metrics and never get defensive in the face of tough questioning.

The journey of IT transformation may sound overwhelming, but with this type of focus, and a solid plan, you can unwind complexity and make significant systems improvements in a short amount of time.