Alignment Assessment

COGOPA

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Do you agree to take part in this survey?

Yes

Name:

Company:

Title and function:

E-mail:

Please indicate the perspective from which your facilitator has asked you to respond:

the entire corporation

a business unit (e.g., marketing, finance, manufacturing, H/R) Please specify:

After quickly reviewing the Strategic Alignment Maturity Summary (select ?), which level of strategic alignment maturity do you believe best represents your organisation today?

Level 1 Initial/ad-hoc process

Level 2 Committed process

Level 3 Established focused process

Level 4 Improved/managed process

Level 5 Optimized process

In which of the following groups do your main personal activities fit?

Business group (CEO and managers in business areas such as finance, marketing, human resources, etc)

Information Technology group (CIO and managers in IT functions such as security, network, support, software development, etc.)

Other

How would you rate the level of IT-Business planning integration in your organisation?

Independent (IT strategy formulation and business strategy formulation are separate, unrelated processes)

Sequential (IT strategy formulation follows and supports business strategy formulation)

Simultaneous (IT strategy formulation and business strategy formulation are developed together)

What is the average planning horizon in your organisation? 3 years, 5 years, etc.

years

At what organisational level does your decision making have a direct impact?

For the purpose of this questionnaire please consider four organisational levels of management.

Strategic (Decisions taken at this level affect the whole corporation)

Tactical (Decisions taken at this level are more concerned with functional units level such a production, marketing, finance, etc)

Operational (Decisions taken at this level affect the daily activities inside each functiional unit)

Project Manager (Decisions taken at this level are related to specific projects in place during its execution)

PART II: EFFECTIVENESS OF IT AND BUSINESS COMMUNICATION

To what extent does IT understand the organisation’s business environment (e.g., its customers, competitors, processes, partners/alliances):

Senior and mid-level IT managers do not understand the business.

Senior and mid-level IT managers have a limited understanding of the business.

Senior and mid-level IT managers have a good understanding of the business.

Understanding of the business by all IT members is encouraged and promoted by senior managers.

Understanding of the business is required (e.g., tied to performance appraisals) throughout the IT function.

N/A or don’t know

To what extent do the business organisations understand the IT environment (e.g., its current and potential capabilities, systems, services, processes):

Senior and mid-level business managers do not understand IT.

Senior and mid-level business managers have a limited understanding of IT.

Senior and mid-level business managers have a good understanding of IT.

Understanding of IT by all employees is encouraged and promoted by senior management.

Understanding of IT is required (e.g., tied to performance appraisals) throughout the business.

N/A or don’t know

The following statements pertain to methods (e.g., intranets, bulletin boards, education, meetings, e-mail) in place to promote organisational education/learning (e.g., of experiences, problems, objectives, critical success factors). Organisational learning occurs primarily through:

Ad-hoc/casual methods (employee observation, anecdote sharing, peer meetings, etc.)

Informal methods (newsletters, bulletin board notices, computer reports, group e-mail, fax, etc.)

Regular, clear methods (training, e-mail, phone-mail, intranet, department meetings, etc.) from mid-level management

Formal, unifying, bonding methods from senior and mid-level management

Formal, unifying, bonding methods from senior and mid-level management, with feedback measures to monitor and promote effectiveness of learning

N/A or don’t know

The following statements pertain to the extent in which there is knowledge sharing (intellectual understanding and appreciation of the problems/opportunities, tasks, roles, objectives, priorities, goals, direction, etc.) between IT and business:

Knowledge sharing is on an ad-hoc basis.

Knowledge sharing is somewhat structured and/or structure is beginning to be created.

There is structured sharing around key functional unit processes.

There is formal sharing at the functional unit level and at the corporate level.

There is formal sharing at the functional unit level, at the corporate level, and with business partners/alliances.

N/A or don’t know

The following statements pertain to the metrics and processes used to measure IT’s contribution to the business.

The metrics and processes we have in place to measure IT are primarily technical (e.g., system availability, response time).

We are equally concerned with technical and cost efficiency measures. We have limited or no formal feedback processes in place to review and take action based on the results of our measures.

We formally assess technical and cost efficiency using traditional financial measures, such as return on investment (ROI) and activity-based costing (ABC). We are starting to put formal feedback processes in place to review and take action based on the results of our measures.

We formally assess technical, cost efficiency, and cost effectiveness using traditional financial measures (e.g., ROI, ABC). We have formal feedback processes in place to review and take action based on the results of our measures.

We use a multi-dimensional approach with appropriate weights given to technical, financial, operational, and human-related measures. We have formal feedback processes in place to review and take action based on the results of our measures. These measures are extended to our external partners (e.g., vendors, outsourcers, customers).

N/A or don’t know

The following statements pertain to the use of business metrics to measure contribution to the business.

We do not measure the value of our business investments, or do so on an ad-hoc basis.

We are concerned with cost efficiency measures at the functional organisation level only. We have limited or no formal feedback processes in place to review and take action based on the results of our measures.

We formally use traditional financial measures, such as return on investment (ROI) and activity-based costing (ABC), across functional organisations. We are starting to have formal feedback processes in place to review and take action based on the results of our measures.

We formally measure value based on the contribution to our customers. We have formal feedback processes in place to review and take action based on the results of our measures and to assess contributions across functional organisations.

N/A or don’t know

The following statements pertain to the use of integrated IT and business metrics to measure IT’s contribution to the business.

We do not measure the value of our IT business investments, or do so on an ad-hoc basis.

The value measurements for IT and business are not linked. We have limited or no formal feedback processes in place to review and take action based on the results of our measures.

The value measurements for IT and business are starting to be linked and formalized. We are also starting to have formal feedback processes in place to review and take action based on the results of our measures.

We formally link the value measurements of IT and business. We have formal feedback processes in place to review and take action based on the results of our measures and to assess contributions across functional organisations.

We use a multi-dimensional approach with appropriate weight given to IT and business measures. We have formal feedback processes in place to review and take action based on the results of our measures. These measures are extended to our external partners (e.g., vendors, outsourcers, customers).

N/A or don’t know

The following statements pertain to the extent of assessment and review of IT investments.

We do not formally assess and/or review.

We assess and/or review only after we have a business or IT problem (i.e., failed IT project, market share loss).

Assessments and/or reviews are becoming routine occurrences.

We routinely assess and/or review and have a formal process in place to make changes based on the results.

We routinely assess and/or review and have a formal process in place to make changes based on the results and measure the changes. Our external partners are included in the process.

N/A or don’t know

The following statements pertain to the extent to which IT-business continuous improvement practices (e.g., quality circles, quality reviews) and effectiveness measures are in place.

We do not have any continuous improvement practices in place.

We have a few continuous improvement practices in place, but no effectiveness measures are in place.

We have a few continuous improvement practices in place and the use of effectiveness measures is emerging.

We have many continuous improvement practices in place and we frequently measure their effectiveness.

We have well established continuous improvement practices and effectiveness measures in place.

N/A or don’t know

The following statements pertain to the organisation structure of the IT function. Our IT function is:

Centralized, whereby a corporate IT unit (or other central unit) has primary authority for architecture, standards, and application resource decisions.

Decentralized, whereby each functional unit within the organisation has primary authority for their IT infrastructure, standards, and application resource decisions.

Federated, whereby a corporate IT unit (or other central unit) has primary responsibility for architecture, common systems, and standards decisions, while each functional unit has primary authority for application resource decisions.

N/A or don’t know

The CIO reports to the:

The following statements pertain to IT budgeting. Our IT function is budgeted as a:

Cost center, with erratic/inconsistent/irregular/changeable spending

Cost center, by functional organisation

Cost center with some projects treated as investments

Investment center

Profit center, where IT generates revenues

N/A or don’t know

The following statements pertain to IT investment decisions. Our IT investment decisions are primarily based on IT’s ability to:

Reduce costs.

Increase productivity and efficiency as the focus.

Traditional financial reviews. IT is seen as a process enabler.

Business effectiveness is the focus. IT is seen as a process driver or business strategy enabler.

Create competitive advantage and increase profit. Our business partners see value.

N/A or don’t know

The following statements pertain to how IT projects are prioritized. Our IT project prioritization process is usually:

In reaction to a business or IT need.

Determined by the IT function.

Determined by the business function.

Mutually determined between senior and mid-level IT and business management.

Mutually determined between senior and mid-level IT and business management and with consideration of the priorities of any business partners/alliances.

N/A or don’t know

IT is perceived by the business as:

A cost of doing business

Emerging as an asset

A fundamental enabler of future business activity

A fundamental driver of business strategy

A partner with the business that co-adapts/improvises in bringing value to the firm

N/A or don’t know

The following statements pertain to the sharing (by IT and business management) of the risks and rewards (e.g., bonuses) associated with IT-based initiatives (i.e., a project is late and over budget because of business requirement changes).

IT takes all the risks and does not receive any of the rewards.

IT takes most of the risks with little reward.

Sharing of risks and rewards is emerging.

Risks and rewards are always shared.

Risks and rewards are always shared and we have formal compensation and reward systems in place that induce managers to take risks.

N/A or don’t know

The following statements pertain to IT and business relationship and trust.

There is a sense of conflict and mistrust between IT and the business.

The association is primarily an “arm’s length” transactional style of relationship.

IT is emerging as a valued service provider.

The association is primarily a long-term partnership style of relationship.

The association is a long-term partnership and valued service provider.

N/A or don’t know

The following statements pertain to IT projects sponsors/champions. Our IT-based initiatives:

Does not have a senior level IT or business sponsor/champion.

Have a senior level IT sponsor/champion only.

Have a senior level IT and business sponsor/champion at the functional unit level.

Have a senior level IT and business sponsor/champion at the corporate level.

Have a senior level IT and the CEO as the business/sponsor champion.

N/A or don’t know

The following statements pertain to the articulation of and compliance with IT standards. Our IT standards are:

Non-existent or not enforced

Defined and enforced at the functional unit level but not across different functional units

Defined and enforced at the functional unit level with emerging coordination across functional units

Defined and enforced across functional units

Defined and enforced across functional units, and with joint coordination among our strategic business partners/alliances

N/A or don’t know

The following statements pertain to the scope of architectural integration. The components of our IT infrastructure are:

Not well integrated

Integrated at the functional unit with emerging integration across functional units

Integrated across functional units

Integrated across functional units and our strategic business partners/alliances

Evolving with our business partners

N/A or don’t know

The following statements pertain to the level of disruption caused by business and IT changes (e.g., implementation of a new technology, business process, merger/acquisition). Most of the time, a business or IT change is:

Not readily transparent (very disruptive)

Transparent at the functional level only

Transparent at the functional level and emerging across all remote, branch, and mobile locations

Transparent across the entire organisation

Transparent across the organisation and to our business partners/alliances

N/A or don’t know

The following statements pertain to the extent the organisation fosters an innovative entrepreneurial environment. Entrepreneurship is:

Discouraged

Moderately encouraged at the functional unit level

Strongly encouraged at the functional unit level

Strongly encouraged at the functional unit and corporate levels

Strongly encouraged at the functional unit, corporate level, and with business partners/alliances

N/A or don’t know

The following statements pertain to the cultural locus of power in making IT-based decisions. Our important IT decisions are made by:

Top business management or IT management at the corporate level only

Top business or IT management at corporate level with emerging functional unit level influence

Top business management at corporate and functional unit levels, with emerging shared influence from IT management

Top management (business and IT) across the organisation and emerging influence from our business partners/alliances.

Top management across the organisation with equal influence from our business partners/alliances.

N/A or don’t know

The following statements pertain to your organisation’s readiness for change.

We tend to resist change.

We recognize the need for change and change readiness programs are emerging.

Change readiness programs providing training and necessary skills to implement change are in place at the functional unit level.

Change readiness programs are in place at the corporate level.

Change readiness programs are in place at the corporate level and we are proactive and anticipate change.

N/A or don’t know

The following statements pertain to the IT organisation’s ability to attract and retain the best business and technical professionals.

There is no formal program to retain IT professionals. Recruiting demands are filled ineffectively.

IT hiring is focused on technical expertise.

IT hiring is focused equally on technical and business expertise. Retention programs are in place.

Formal programs are in place to attract and retain the best IT professionals with both technical and business skills.

Effective programs are in place to attract and retain the best IT professionals with both technical and business skills.

N/A or don’t know

The following statements pertain to strategic IT planning. The IT projects are a result of:

No formal strategic IT planning, was done on an as-needed basis.

Formal strategic IT planning at the functional unit level with slight business participation.

Formal strategic IT planning at the functional unit levels with some business participation. There was some Inter-organisational planning.

Formal strategic IT planning at the functional unit and across the enterprise with the business.

Formal strategic business planning at the functional unit, across the enterprise, and with our business partners/alliances.

N/A or don’t know

The following statements pertain to methods (e.g., intranets, bulletin boards, education, meetings, e-mail) in place to promote the IT projects information such as objectives, benefits, plans, etc.

Ad-hoc/casual methods (employee observation, anecdote sharing, peer meetings, etc.)

Informal methods (newsletters, bulletin board notices, computer reports, group e-mail, fax, etc.)

Regular, clear methods (training, e-mail, phone-mail, intranet, department meetings, etc.) from mid-level management

Formal, unifying, bonding methods from senior and mid-level management

Formal, unifying, bonding methods from senior and mid-level management, with feedback measures to monitor and promote effectiveness of learning

N/A or don’t know

The following statements pertain to the extent of assessment and review of the IT projects to ensure they are fully in line with the strategies they support.

We do not formally assess and/or review.

We assess and/or review only after we have a business or IT problem.

Assessments and/or reviews are becoming routine occurrences.

We routinely assess and/or review and have a formal process in place to make changes based on the results.

We routinely assess and/or review and have a formal process in place to make changes based on the results and measure the changes. Our external partners are included in the process.

N/A or don’t know

The following statements pertain to formally managing the IT/business relationship. For IT projects to what extent are there formal processes in place that focus on enhancing the partnership relationships that exist between IT and business (e.g., cross-functional teams, training, risk/reward sharing):

We don’t manage our relationships.

We manage our relationships on an ad-hoc basis.

We have defined programs to manage our relationships, but IT or the business does not always comply with them. Conflict is seen as creative rather than disruptive.

We have defined programs to manage our relationships and both IT and the business comply with them.

We have defined programs to manage our relationships, both IT and the business comply with them, and we are continuously improving them.

N/A or don’t know

The contribution of the IT projects to the accomplishment of the organisation’s strategic goals is:

Very weak

Somewhat weak

Neither weak nor strong

Somewhat strong

Very strong

N/A or don’t know

PART IX: ACHIEVING STRATEGIC ALIGNMENT OF THE IT AND BUSINESS FUNCTIONS

Please indicate to what extent the following items enable IT-business alignment in your organisation. Check one box only for each item.

	Not Enabling	Neutral	Greatly Enabling	N/A
Senior executive support for IT	Not Enabling	Neutral	Greatly Enabling	N/A

IT involved in business strategy development	Not Enabling	Neutral	Greatly Enabling	N/A

IT demonstrates strong leadership	Not Enabling	Neutral	Greatly Enabling	N/A

IT understands the firm’s business environment	Not Enabling	Neutral	Greatly Enabling	N/A

Close partnership between IT and business	Not Enabling	Neutral	Greatly Enabling	N/A

IT efforts are well prioritized	Not Enabling	Neutral	Greatly Enabling	N/A

Good IT/business communication	Not Enabling	Neutral	Greatly Enabling	N/A

Goals and vision are defined	Not Enabling	Neutral	Greatly Enabling	N/A

IT and the business have close relationship	Not Enabling	Neutral	Greatly Enabling	N/A

IT resources shared	Not Enabling	Neutral	Greatly Enabling	N/A

	Not Enabling	Neutral	Greatly Enabling	N/A
IT meets commitments	Not Enabling	Neutral	Greatly Enabling	N/A

IT achieves its strategic goals	Not Enabling	Neutral	Greatly Enabling	N/A

IT applied for competitive advantage	Not Enabling	Neutral	Greatly Enabling	N/A

IT plans linked to business plan	Not Enabling	Neutral	Greatly Enabling	N/A

Please indicate to what extent the following items inhibit IT-business alignment in your organisation. Check one box for each item.

	Not Inhibiting	Neutral	Greatly Inhibiting	N/A
IT does not understand the firm’s business environment	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

IT fails to meet its commitments	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

IT and the business lack close partnership	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

IT efforts are not well prioritized	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

Senior executives do not support IT	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

IT management lacks leadership	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

IT and business plans are not linked	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

Antiquated IT infrastructure	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

Resistance from senior executives	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

Budget and staffing problems	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

	Not Inhibiting	Neutral	Greatly Inhibiting	N/A
IT does not communicate well with the business	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

IT fails to meet strategic goals	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

Goals/vision are vague	Not Inhibiting	Neutral	Greatly Inhibiting	N/A

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Alignment Assessment

PART IX: ACHIEVING STRATEGIC ALIGNMENT OF THE IT AND BUSINESS FUNCTIONS

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