JT Business Consultancy: CIO Strategic Objectives, KPIs and Strategic Direction Statement - Case Study Example

JT Business Consultancy: CIO Strategic Objectives, KPIs and Strategic Direction Statement Name: Tutor: Course: Date: Functional Strategic Objectives 1. To provide guidance in planning, development and investment in business systems that fully integrate technology to business processes thus creating an in infrastructure that supports business products and the need of our customers. 2. To participate as member of the executive management team, advising the team on optimal and effective technology strategy and policy development for achieving the organizations goals and objectives. 3. To assemble and maintain a suitable IT structure that supports the overall business needs, set up departmental goals, objectives, evaluation methods and procedures so as to align each department’s activities to the mission and vision of the business. 4. To ensure that the organisation is kept abreast with development in the technology by identifying and promoting adoption of current technology. 5. To monitor and maintain company information, keep system documentation, manuals, examine current processes and make relevant recommendations for improvement. 6. To provide leadership in innovation activities and ensure quality. He will supervise data processes and closely monitor processes of service delivery to the clients. Justification of the Strategic Objectives Strong leadership and effective planning will be required for all the resources to be employed toward the company goals and objectives. In order for the objective to be arrived at, the Chief Information Officer will have to mobilize, through effective administration of the human resource and the facility within the set infrastructure. It will also be prudent to harmonize the operations and the participation of management and the operations teams. The CIO will be the liaison person between the teams. As a member the management, he will guide the management decisions towards the objectives of JT while ensuring proper execution of the new policies form the management. Being in charge of overall policies and strategic development, the CIO will ensure that all department guidelines and activities neither conflict nor contradict with each other or the overall business objectives. He will involve the department heads in development guidelines and procedures for each of the department. Key Performance Indicators The following methods will be used to gauge or as performance indicators of the CIO in meeting the set functional strategic objectives: Measuring IT costs in as percentage of total actual revenue and comparing with previous periods. This will be a quarterly appraisal. Matching the actual expenditures against the budgets plans. Semi annually determining the % of current technology-oriented business initiatives i.e. the pro-activity is measured. Annually evaluating the % capital spending on technology over the total investment and comparing this proportion with the peers in the industry. Determining the financial gains from any capital investment on new products by measuring the actual result on revenue and profit of ICT investments semi annually Measuring average profitability of new products and comparing them with that of the existing products/service annually Measuring the cost resources and system maintenance as % of total spending within a specific period. Evaluating the efficiency by measuring the utilization cost of inputs against the net revenues. Determining % of improvement in customer satisfaction Justification of the KPIs The roles of the CIO revolve around four major aspects, which each will need a parameter or scorecard to determine performance level. The above-mentioned KPIs also revolve around the roles (functional strategic objectives) of the CIO as grouped according to the following roles: Executive role where he will ensure that full integration, mobilization of IT and the resources drives the business to profitability The Innovation role in which he will ensure that the technology help innovate the enterprise. The change role where the CIO will make sure the company has the right people and the right technology resources; and His operational excellence role in which he will ensure full utilization of the company resources to achieve the desired and the best results. Just Think Consultancy will follow strict corporate scrutiny in order to exhibit its efficient and effective work policies for its staff, business value to the clients and substantial return on investment to the shareholders. The CIO appraisal and Key Performance Indicators will enable the management to purposefully align the organizations operations not only with corporate and fiscal objectives, but also supervise organizational performance, and maximize the value of IT across the enterprise and in client satisfaction. If adhered to, these KPIs will enable, sustain, and, and drive Just Think Consultancy Business Strategy to execution and ultimate success. The KPIs will be presented in dashboard to give a practical snap short of the current situation with directly comparison with the past performance. Since the business processes never remain static, the KPIs also may have to revise from time to time depending any the changing roles of the CIO. For instance if department is outsourced or a new one is created, the KPI will change accordingly. Functional strategic direction statement The CIO will focus on establishing and providing strategic direction to the company every period defined by specific time lines. This involves providing Top-Down clear guidance highlighting specific objectives, priorities, assumptions and any other benchmarks for the period; to all the team within the company. Strategic direction statement for the CIO at the commencement of operations will guide the development of the same for entire Just Think Consultancy. Setting-up a formal structure of the JT Consultancy firm will be the first task that the CIO will have to confront. At the commencement of full operations, JT will be faced with the challenges common to any new business enterprise, which includes: establishment of formal structures, governance arrangements, staffing and routines; effective deployment of limited resources and task prioritization; securing a market presence and demonstrating value. The CIO together with the rest of the management team working closely in consultation with the CEO will formalize the operations through thorough induction of each department teams, defining the procedures and objectives of each to all the team members. Once the structured has been established, the CIO will then set priorities for the next business period, which could broken down into shorter-term periods. For instance, one-year target objectives can be evaluated quarterly or semi annually. As stated in the strategic objectives, the priorities will be based on these objectives. Since the company will be starting the operation for the first time, the resources will be limited with immense expected start-up cost, therefore the set priorities will enable the business make optimal decisions in financing the business needs of high importance. The CIO will then assess the capabilities and capacities of the available resources, the CIO will determine how to set priorities of the capabilities for the business to realize returns in the soonest time possible. He will then build a better guidance for the next financial/commercial year for the business based on the effectiveness and the efficiency of the current systems. References: Eden C., & Ackermann F., (2004). Making The Strategy: The Journey Of Strategic Management. Sage Publications: New Delhi. Penrod J.I., (2003). Creating a Realistic IT Vision: The Roles and Responsibilities of a Chief Information Officer. The Technology Source, March/April. Richard T., Leyland F., Pitt & Kavan C.B. (1998). Measuring Information Systems Service Quality: Lessons from Two Longitudinal Case Studies. MIS Quarterly March, 22 (1) pp. 61-79. Management Information Systems Research Centre: University of Minnesota Read More