For several years I’ve been following the Business-IT alignment movement. Alignment is necessary for fostering innovation and realizing greater profits as IT resources are used to their fullest to satisfy business goals and objectives.

But many organizations still struggle to make the connection.

Some suggest varying 3-, 5-, and 7-step approaches for better alignment. They typically consist of diving into new organizational structures, or implementing new frameworks and service models. Other sources say that the business is to blame, that IT is misunderstood and underutilized. While finally, some say it is a dead issue altogether.

I’m not convinced this is a dead issue, nor am I convinced that the business is to blame (especially nowadays). I’m also not convinced that 3-, 5-, and 7- step plans will magically work.

A few basic actions, initiated by IT, must happen first.

The Actions

Business has long ago recognized that better alignment with IT is essential. We can argue about how well they’ve understood IT and how it can best be utilized, but across the board, the recognition is there. IT, after many years of making the case for alignment, seems to be coming up short during this crucial period. I hope that the following actions, from an IT-perspective, can help:

• Understand: Learn the language of the business. Plainly put, this means you need to become more financially intelligent. All businesses exist to earn a profit, and understanding how this works is the first critical step. You must understand where the estimates and assumptions are in the numbers, when you would want to depreciate or amortize, and what constitutes a capital expenditure or operating expense. Among many things, you must understand ROI, cash conversion, and how to use profitability ratios.
• Participate: Take part in strategic and other long-term planning initiatives. IT professionals must be able to see the company’s vision and turn the vision into actionable IT initiatives. If a representative from IT is not present during steering committee and other board meetings, make this a priority. You will need to convince the business that IT is capable of playing an important role in all long-term decision making. Fortunately, businesses already realize this need, but in many cases don’t feel that IT can effectively contribute (perhaps because IT doesn’t understand the business language).
• Contribute: Provide business with the ability to make fast and accurate decisions. This means pioneering smart business intelligence initiatives that can provide decision-makers with the tools and reports — distilled — that business can utilize. You need to prove your flexibility, agility, and ability to understand what the business really needs. Much of this is tied to understanding, and extended with participation. These initiatives also include business process improvements; tighter integration of business, meta, and master data; and managing performance.

If IT can take action, better alignment can be achieved. This isn’t to say that the business can’t do more, but before the business can make IT a full partner, understanding, participation, and contributions from IT are a must.

Tags: alignment, contribute, financial, governance, innovation, language, participate, understand