Strategic Technology Maps Foster Necessary Conversations and Analysis in Government

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1 G Strategic Technology Maps Foster Necessary Conversations and Analysis in Government Published: 2 April 2013 Analyst(s): Steve Bittinger, Rick Howard, Jerry Mechling Government CIOs can strengthen planning by using strategic technology maps. These graphic representations of actions, relationships and impacts can act as catalysts for launching strategic conversations and analysis involving diverse stakeholders. Key Challenges Technology investments are too often made as isolated point solutions rather than as a series of interrelated business capabilities. Too often, CIOs are not included in strategic conversations (see Note 1) with general managers even though IT has an increasingly critical impact on government operations. CIOs face difficulties in orchestrating the strategic conversations that are needed to meaningfully share experience and insights, particularly in cross-functional contexts or rapidly changing and less predictable environments. Recommendations Government CIOs should explore the use of strategic technology maps (see Note 2) to: Stimulate vital conversations among the diverse groups that are needed to sense and respond to strategic developments. Create a visual storyline to illustrate how technologies or practices relate to each other and impact organizational strategies. Engage the leaders and groups whose support is needed to effectively execute new strategies, and build consensus among them.

2 Introduction Given the ongoing turbulence and the threat of financial unsustainability that government organizations face today, it is critical to nurture strategic thinking and planning so that IT and business investments are carefully selected, aligned and prioritized. The accelerating pace and unpredictability of change driven by the Nexus of Forces (consumer and mobile technologies, social media, cloud computing), and the increasing strategic and pervasive nature of information (big data) mean that many public-sector organizations find their traditional approaches to strategic planning are inadequate. Strategic technology maps (STMs) are Gartner-developed aids that complement strategic planning tools such as scenario planning and Hype Cycle analysis. This research introduces STMs to government CIOs, focusing on how they can be used to foster and structure strategic conversations. For more background information and other approaches to using STMs, see "Strategic Direction and Timing in Education: Mashing Up the Strategic Technology Map and the Hype Cycle." Analysis Stimulate Vital Conversations Among the Diverse Groups That Are Needed to Sense and Respond to Strategic Developments Strategic conversations draw together people and expertise from across and even outside the organization, building the analysis and support needed for successful decisions and execution (see "Use the 'Slow Trigger, Fast Bullet' Approach for Planning That Gets Results"). These conversations are particularly helpful in situations that are contentious, cross-functional, complex, fast-changing or difficult to predict. These are settings with no "easy answers," or ones in which centralized approaches to strategy development and decision making are particularly risky. Strategic conversations help strike a better balance between "business as usual" (incremental) strategy development and at the other extreme radical change that is often pushed via "command and control" by a leader with a "change mandate." While incremental change may not keep up with turbulent demands, the "change mandate" approach can lead to risks such as a lack of buy-in and/or other unintended consequences. The strategic conversations needed to bridge such gaps are necessarily open-ended, with an initial focus on understanding context, scanning the environment, and identifying key stakeholders and perspectives. This is where STMs can be most useful as a catalyst and focal point enabling people to apply their knowledge, experience and creativity in identifying what is relevant to the strategic challenges the organization faces and how it might best respond. The STM graphic approach requires judgment calls that lead to useful explanations and conversations informally with individuals or groups, as well as in more-structured workshops. Using Figure 1 below as an example, the maps and conversations might focus on how new technologies and capabilities should be related and prioritized to revise and support a particular Page 2 of 9 Gartner, Inc. G

3 organization's strategy. Placing the technologies and capabilities on the map would encourage questions and discussions such as: What axis designations for the map would reflect the most critical, unpredictable or rapidly changing dimensions of organizational performance? What X and Y axes best support "from-to" analysis about how the organization can use new tools and capabilities to shift position on the defined dimensions? The map in Figure 1 illustrates an organization that has chosen axes that explore performance issues in terms of operational efficiency and constituent service. A discussion of why these axes are important and where the organization is now positioned should be valuable to everyone in the organization. Different axes can be "experimentally" tested in separate conversations to determine which provoke the most useful conversations and insight. What capabilities or technologies are most important for enabling new levels or dimensions of organizational performance and where should they be positioned on the STM? Again, discussions that lead to mutual understanding and repositioning should be valuable. What are the underlying assumptions, and what root causes for change can be highlighted? Could additional representational refinements lead to deeper insights, or more clearly tell a story by illustrating plausible sequencing, comparative costs or risks, interdependencies, or other relevant factors? As one possible example, the technology/capability dots in Figure 1 are coded to illustrate their position in the Hype Cycle, showing their stage of development and years to plateau. In addition, the colored "storyline" lines connecting the dots convey additional information about relationships and sequencing (as we discuss when we address the next best practice). The CIO can exercise considerable creativity in customizing the STM to maximize ease of understanding and impact within their organizational context. Refer often to the STM during day-today conversations with stakeholders, encouraging them to provide feedback and suggestions by actively engaging them in drawing on or changing the diagram. This sort of participative engagement can be a powerful way of catalyzing conversations, generating new insights and gaining buy-in. Gartner, Inc. G Page 3 of 9

4 Figure 1. Use Strategic Technology Maps to Visualize Storylines Cross-domain interoperability Cloud computing High 5-10 Mobile devices 2-5 Operational Efficiency <2 Nextgeneration analytics Big data info. management 2-5 Contextual and social user experience Medium 5-10 Years to Internet of Things YTP Plateau Hype Cycle Key Low Note: Organizational context influences the positioning of each technology trend. Constituent Service Source: Gartner (April 2013) Create a Visual Storyline to Illustrate How Technologies or Practices Relate to Each Other and Impact Organizational Strategies The STM can help visualize a storyline to illustrate how particular technologies or practices can be used in ways that are plausible and logically "coherent" (in terms of capabilities, time frames, interdependencies, etc.) and also in ways that align with organizational strategies (see "Storytelling: Tips for IT Practitioners to Persuade and Influence" and "Connecting the Dots to Gain Competitive Advantage: Articulating a Technology Ecosystem Advantage to Your Board"). Such stories help stakeholders think through complex cause-and-effect relationships. Storylines clarify how future uncertainties could be managed, thus helping to promote stakeholder buy-in. Page 4 of 9 Gartner, Inc. G

5 The example in Figure 1 combines two sources of information (technologies featured in the "Top 10 Strategic Technology Trends for Smart Government, 2013" and technology life cycle analysis from "Hype Cycle for Smart Government, 2012"). The purpose is to gain new insight for strategic planning. The initial placement of the dots on the map is a subjective exercise to spark strategic conversations among participants. (The dots shown in Figure 1 do not represent fixed or "official" Gartner positions, because each business environment is unique.) Figure 1 illustrates the STM storyline the CIO of a large metropolitan public transport organization might use in strategic conversations about how emerging technologies could support the organization's efforts to improve operational efficiency and boost usage of public transportation over the next 10 years: Building capacity in next-generation analytics (a fairly mature technology starting point) would help improve fleet management and on-time performance in the short term. The organization could then move on to leverage big data (information from a variety of internal and external sources, including real-time GPS fleet location data) to further improve performance. A natural next step would be to make fleet location data available to riders via mobile app tools, with further contextual and social engagement leading to additional improvements in the user experience, which would drive increased use of public transport. Shifting to a cloud computing platform for big data and analytics would make expanding the use of these capabilities more sustainable, while at the same time positioning the organization to benefit in the longer term from the emerging Internet of Things and the potential smartgovernment synergies made available by improved cross-domain interoperability. Engage the Leaders and Groups Whose Support Is Needed to Effectively Execute New Strategies, and Build Consensus Among Them The initial placement of entries on an STM map should be intentionally subjective in order to spark strategic conversations among diverse participants, including external stakeholders or experts. The focus should be on eliciting and understanding underlying assumptions when there are different perspectives on the positioning of map elements or how they interact. What insights emerge from exploring the apparent contradictions? The STM (and the evolving strategic analysis) should reflect both a growing consensus and the unique priorities of the organization's business context including its mission, objectives, legacy IT investments and management maturity. This alignment helps sustain commitment for the duration needed to execute a long-term strategy. When CIOs use STMs as tools to engage stakeholders, the ensuing conversations can demystify new technologies and clarify their impact on strategic objectives and capabilities (see "Strategic Business Capabilities and the Gartner Hype Cycle"). The process of facilitating analysis via STMs need not be centralized or formal. CIOs may engage in STM-fostered conversations individually and with small groups across the business, socializing the results of previous conversations and moving the analysis forward one step at a time. Typically a Gartner, Inc. G Page 5 of 9

6 consensus will gradually emerge which can then be further tested to drill deeper and more confidently into mission alignment, budgetary and financial implications, staffing implications, technical implications, feasibility, and so on. As STM-fostered dialogue and analysis proceeds, CIOs can enhance their credibility and authority (and gain a "seat at the table"). What's required is being an "honest broker" in leading the conversations, in engaging individual stakeholders and groups, in using shuttle diplomacy, and in bringing people together to develop a consensus. In many cases, strategies will emerge that cross many organizational boundaries where no one has full authority for decision making. In such cases, however, IT leaders can often "manufacture authority" by facilitating the process, by understanding and effectively communicating the perspectives and needs of different stakeholder groups, and by helping to resolve problems and reconcile opposing views. The brokered consensus (and its champion) can then gain legitimacy through the transparency of the conversation process, and through the support of key crossfunctional groups and individuals. Such iterative conversations and analysis take time (a "slow trigger"), but can pay off through rapid and effective execution (a "fast bullet"). Execution improves when the proposed solution is seen as legitimate and coherent, and mobilizes buy-in as stakeholders clearly understand, "What's in it for me?" In the longer term, STMs also serve as "institutional memory," making it easier to restart the strategic conversation to quickly reassess and, if necessary, refresh strategy in response to changing circumstances. Bottom Line: Use Strategic Technology Maps to Foster Effective Engagement Through Strategic Conversations The primary benefit of strategic technology maps is their ability to foster engagement between IT and business leaders and staff, facilitating strategic conversations and analysis as these parties seek to optimize outcomes and deliver sustainable public value. Strategic conversations are an important but underutilized mechanism for understanding and responding to our fast-changing world. STM-fostered conversations can pull together people who need to collaborate effectively but often don't. The relationship between STMs and strategic conversations can help stakeholders to understand critical challenges and then use their understanding to ultimately choose and commit to implementing the best solutions. The STM can serve as a key input for a business-driven strategic IT plan and technology road map. Establishing the business value, sequencing and interdependencies of IT investments or capabilities helps manage risk and ensures that the maximum value of each successive investment is obtained. Recommended Research Some documents may not be available as part of your current Gartner subscription. Page 6 of 9 Gartner, Inc. G

7 "Strategic Direction and Timing in Education: Mashing Up the Strategic Technology Map and the Hype Cycle" "Use the 'Slow Trigger, Fast Bullet' Approach for Planning That Gets Results" "Strategic Business Capabilities and the Gartner Hype Cycle" "Top 10 Strategic Technology Trends for Smart Government, 2013" "Storytelling: Tips for IT Practitioners to Persuade and Influence" "Connecting the Dots to Gain Competitive Advantage: Articulating a Technology Ecosystem Advantage to Your Board" Evidence "The Dance of Change: The Challenges to Sustaining Momentum in Learning Organizations," by Peter Senge, Art Kleiner, Charlotte Roberts, George Roth, Rick Ross, and Bryan Smith. Crown Business, (See "Strategy as Conversation," p ) "Scenarios: The Art of Strategic Conversation," by Kees van der Heijden, John Wiley & Sons, "Talk, Inc.: How Trusted Leaders Use Conversation to Power Their Organizations," Boris Groysberg and Michael Slind, Harvard Business School Press, "Gemba Walks," by Jim Womack, Lean Enterprise Institute, (See "'manufacturing authority' via strategic conversations," p. 117.) Note 1 Strategic Conversations As described in sources listed in the Evidence section, the traditional view of strategy reflects a hierarchical perspective where senior leaders are responsible for setting "strategy as direction." In contrast, "strategy as conversation" seeks to engage a wide range of employees and stakeholders in the strategy development process by nurturing strategic thinking skills and fostering ongoing "strategic conversations." Engaging a larger group brings greater diversity of experience, knowledge and creativity to the task of grappling with the organization's strategic challenges, while at the same time gradually building the consensus and commitment needed to effectively execute agreed-to actions. Note 2 Strategic Technology Map The strategic technology map (STM) is a Gartner-developed graphical aid that complements other strategic planning tools such as scenario planning and Hype Cycle analysis. The STM is presented as a set of technologies or capabilities positioned on an X/Y grid, where the axes represent important dimensions of organizational performance. The STM is used to support "from-to" analysis about the potential impact of adopting new tools and capabilities to enable desired performance changes. The STM can help visualize a storyline to illustrate how particular technologies or practices can be used in ways that are plausible and logically "coherent" (in terms of capabilities, Gartner, Inc. G Page 7 of 9

8 time frames and interdependencies) and which support the organization's mission, goals and strategies. Page 8 of 9 Gartner, Inc. G

9 GARTNER HEADQUARTERS Corporate Headquarters 56 Top Gallant Road Stamford, CT USA Regional Headquarters AUSTRALIA BRAZIL JAPAN UNITED KINGDOM For a complete list of worldwide locations, visit Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner s prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner s research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see Guiding Principles on Independence and Objectivity. Gartner, Inc. G Page 9 of 9

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