But why is business and technology alignment difficult?

There are a number of reasons why this is the case. One is that the underlying technologies and platforms that businesses rely on are constantly changing and evolving. This means that IT needs to continually adapt and adjust its systems and processes to keep up.

Moreover, businesses themselves are always changing. They may be growing or downsizing, entering new markets, or expanding into new product areas. All of these changes have an impact on IT and can create alignment challenges.

In addition to that, there is the issue of organizational culture. Businesses and IT departments often have different cultures and ways of doing things. This can make it difficult for them to work together effectively.

Despite all of these challenges, there are a number of things that businesses can do to improve alignment between themselves and IT. But before that let’s understand what exactly Business-IT alignment is and its characteristics.

Business-IT alignment is the process of aligning IT strategy and initiatives with business goals and objectives. This means that businesses need to ensure that their IT plans support and enable the achievement of their business goals.

It’s important to note that alignment is not about IT doing what the business wants it to do. Rather, it’s about IT and the business working together to understand what each needs in order to be successful.

There are a number of characteristics that are common to successful Business-IT alignment models. These include:

• A clear understanding of business goals and objectives: 

The first step in achieving alignment is to ensure that there is a clear understanding of the business’s goals and objectives. This means that IT needs to be involved in the strategic planning process so that it can understand the direction the company is going in and the role that IT needs to play in supporting that direction.

• A shared vision: 

Achieving alignment requires that both business and IT have a shared vision for the future. This means they need to agree on what they want to achieve and how they’re going to get there. Without a shared vision, it will be difficult for them to work together effectively.

• A clear governance structure: 

Achieving alignment also requires a clear governance structure. This means that there needs to be a mechanism in place for making decisions about technology investments and for ensuring that those investments are aligned with the business’s goals.

• The right tools and technologies:

 In order to achieve alignment, businesses need to have the right tools and technologies in place. This includes both the hardware and software needed to support the business’s operations as well as the systems and processes needed to manage those operations.

• The right people: 

Finally, achieving alignment requires that businesses have the right people in place. This includes both IT staff who understand the business’s goals and objectives and business staff who understand how IT can help to achieve those goals.

Some key performance indicators (KPIs) that can be used to measure IT and business alignment include:

• Communication: How well do the business and IT departments communicate with each other?
• Cooperation: How well do the business and IT departments work together?
• Coordination: How well are the business and IT departments coordinated?
• Integration: How well are the business and IT departments integrated?
• Performance: How well is the company performing as a result of the alignment between the business and IT departments?
• Quality: How high is the quality of the products and services produced as a result of the alignment between the business and IT departments?
• Satisfaction: How satisfied are employees with the alignment between the business and IT departments?

Now that we’ve looked at some of the key characteristics of successful Business-IT alignment models and some of the KPIs that can be used to measure alignment, let’s take a look at some specific practices that businesses can use to improve alignment between themselves and IT.

1. Ride-alongs

Ride-alongs is an approach that can help to break down barriers between business and IT. It involves having executives and managers from the business spend time with their counterparts in IT, observing what they do and how they work.

This gives business leaders a better understanding of the IT department and its capabilities. It also allows them to see first-hand the challenges that IT faces and how it is working to address them. As a result, ride-alongs can help to build trust and improve communication between business and IT.

For example, a business executive who spends a day shadowing an IT manager may come away with a better understanding of the IT department’s budgeting process. This may help the executive to make more informed decisions about where to allocate resources within the business.,

According to the state of CIO, 20118, here are some common problems perception you should be aware of:

2. Joint planning

Joint planning is another approach that can help to improve alignment between business and IT. It involves both the business and IT working together to develop plans and strategies. This can be done on a short-term basis, for specific projects or initiatives, or on a longer-term basis, for strategic planning purposes.

Joint planning has a number of benefits. It helps to ensure that everyone is working towards common goals and objectives. It also allows different groups to share their knowledge and expertise, which can lead to more innovative and effective solutions.

One way to do joint planning is to set up cross-functional teams that include members from both the business and IT. These teams can work together to develop plans and strategies. Another option is to hold regular meetings between representatives from both sides.

3. Business/IT charters

A business/IT charter is a document that outlines the roles and responsibilities of both the business and IT. It includes a clear description of what each group is responsible for and how they will work together.

Having a charter in place can help to improve alignment between the business and IT by providing a common understanding of their respective roles. It can also help to prevent misunderstandings and miscommunications from occurring.

For instance, here are some roles to consider. These roles may best characterize IT leadership at your company when it comes to Technology considerations:

• Strategic Advisor: The IT leader advises the business on how technology can be used to achieve its goals and gives recommendations
• Consultant: The IT leader provides expert advice and guidance to the business on technology-related matters.
• Risk Assessor: The IT leader assesses the risks associated with using new technologies and provides recommendations to the business on how to mitigate these risks.
• Change Agent: The IT leader helps the business to implement new technologies and change its processes to take advantage of them.

4. Service-level agreements

A service-level agreement (SLA) is a contract between the business and IT that outlines the level of service that IT will provide. It includes detailed specifications about the services to be provided, as well as metrics for measuring performance.

An SLA can help to improve alignment by ensuring that there is a clear understanding of what IT is responsible for and how it will be measured. This can help to avoid disputes and disagreements between the business and IT down the line.

Here a sample template on how to write a Service level Agreements

>> CLICK HERE FOR THE TEMPLATE <<

5. Continuous feedback

Continuous feedback is an important part of maintaining alignment between business and IT. It involves regular communication between the two groups, so that feedback can be given about how things are going. This feedback can be used to make improvements and fine-tune processes.

Continuous feedback can be done in a number of ways. One option is to hold regular meetings between representatives from both the business and IT. Another option is to set up a system where employees can give feedback anonymously.

6. Shared values

Shared values is another important aspect of alignment between business and IT. When both groups share the same values, it can help to improve communication and collaboration. It also makes it easier to find common ground when there are disagreements.

Some ways to promote shared values include having regular meetings where everyone can share their thoughts and ideas and creating a culture of openness where different viewpoints are respected.

7. Appoint a liaison

One way to improve alignment between business and IT is to appoint a liaison. This is someone who acts as a link between the two groups and helps to facilitate communication. The liaison can help to resolve issues and disagreements, and can also provide information about each group’s activities and objectives.

8. Collaborative tools

Collaborative tools are another way to improve alignment between business and IT. These are software tools that allow employees from different departments to work together on projects.

Some types of collaborative tools include:

• Document sharing tools: These tools allow employees to share documents and collaborate on them together. Some popular examples include Google Docs and Microsoft Word Online.
• Task management tools: These tools allow employees to track and manage their tasks collectively. Some popular examples include Asana and Trello.
• Team chat tools: These tools allow employees to communicate with one another in real-time. Some popular examples include Slack and HipChat.

9. Training and development

Training and development is another important way to improve alignment between business and IT. It can help employees from both groups to better understand each other’s roles and responsibilities. It can also help to promote shared values and foster a culture of collaboration.

Some ways to provide training and development for employees include:

• Organizing workshops and seminars: These can be held periodically to educate employees about different aspects of the business-IT alignment.
• Creating e-learning courses: These can be used to provide employees with an opportunity to learn at their own pace.
• Implementing mentorship programs: These can pair employees from different departments so that they can learn from each other.

10. Regular reviews

Regular reviews are another way to maintain alignment between business and IT. They involve periodically assessing how well the two groups are working together and identifying areas for improvement. Reviews can be done internally or externally and can be conducted by a third party.

Reviews can be conducted in a number of ways, but some common methods include:

• Conducting surveys: Surveys can be used to collect feedback from employees about different aspects of the business-IT alignment.
• Holding focus groups: Focus groups can be used to discuss different issues related to the business-IT alignment.
• Analyzing data: Data can be analyzed to look for trends or patterns that may indicate problems with the alignment between business and IT.

What should be the concerns of CIOs and senior IT management in adopting new paradigms to enable more efficient IT and business alignment?

The concerns of CIOs and senior IT management should be around the cost, risk, and quality of the new paradigms being adopted. They need to ensure that the benefits of the new paradigms outweigh the costs and risks involved. They also need to make sure that the new paradigms are able to meet the needs of the business.

Is there a framework for IT and business alignment for small businesses?

No, there is no one-size-fits-all framework for business-IT alignment. However, for small businesses, a good starting point is the ITIL (Information Technology Infrastructure Library). ITIL provides guidance on how to align IT with business goals and objectives and can help small businesses improve their overall efficiency and effectiveness.

Another important aspect of business-IT alignment is governance. Governance is the process by which organizations ensure that their IT investments are aligned with their business strategy. It involves setting up clear policies and procedures for decision-making, and ensuring that these decisions are made in a consistent and transparent manner.