Six_principles_of_high_performance_IT

Six_principles_of_high_performance_IT - 164 THE McKINSEY...

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Unformatted text preview: 164 THE McKINSEY QUARTERLY 1997 NUMBER 3 INFORMATION TECHNOLOGY/SYSTEMS T HE 1990s HAVE BEEN a time of great advances in information technology. So why are companies struggling with their systems more than ever before? Many are burdened with costly and unduly complex legacy systems. Others have business and IT organizations that cant or wont talk constructively with one another. Still others are at a loss about where to invest to get the functionality they so desperately need. As Casey Stengel asked at a diferent time, in a diferent place: Cant anybody here play this game? The answer is yes some companies really can play the IT game. The results of a recent study* reveal that there are indeed a number of companies that have gained control of IT and are using it to deliver real value to their business. The 1990s have been a time of great advances in information technology So why are companies struggling with their systems? How a few are getting big payofs from IT Bob Dvorak and Bill Meehan are directors in McKinseys San Francisco ofice, Endre Holen is a principal in the Pacific Northwest ofice, and David Mark is a consultant in the Silicon Valley ofice. Copyright 1997 McKinsey & Company. All rights reserved. Industry interviews by Microsoft and McKinsey. Robert E. Dvorak, Endre Holen, David Mark, and William F. Meehan III Six principles of high-performance IT ANDERSEN The research shows that what distinguishes these companies is not technological wizardry, but the way they handle their IT activities. In fact, they manage IT in much the same way that they manage their other critical functions and processes: by getting real leadership at senior levels, by making IT speak business English, and by focusing IT work on delivering business value. Underlying the success of these companies are six basic principles shared by IT-smart organizations: Make IT a business-driven line activity, not a technology-driven staf function Make IT funding decisions like other business decisions on the basis of value Drive simplicity and flexibility throughout the technology environment Demand near-term business results from development eforts Drive constant year-to-year operational productivity improvements Build a business-smart IT organization and an IT-smart business organization. SIX PRINCIPLES OF HIGH-PERFORMANCE IT 166 THE McKINSEY QUARTERLY 1997 NUMBER 3 Exhibit 1 High-performance IT principles in practice Principle Make IT a business- driven line activity, not a technology- driven staff function Make IT funding decisions like other business decisions on the basis of value Drive simplicity and flexibility throughout the technology environment Demand near-term business results from development efforts Drive constant year- to-year operational productivity improvements Build a business-smart IT organization and an IT-smart business organization means this Line managers on the hook for...
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This note was uploaded on 05/22/2011 for the course BU 36101 taught by Professor John during the Spring '11 term at University of Liverpool.

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Six_principles_of_high_performance_IT - 164 THE McKINSEY...

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